Variation Orders in Construction Projects - Revision history

Ozgenurbastug: /* Content of a Variation Order */

2021-02-25T20:24:14Z

Content of a Variation Order

← Older revision		Revision as of 20:24, 25 February 2021
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	=== Content of a Variation Order ===		=== Content of a Variation Order ===

	[[File:Variation Order Form Example.png \|thumb \|~~150px~~\|Variation Order Form Example]]		[[File:Variation Order Form Example.png \|thumb \|125px\|Variation Order Form Example]]

	Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :		Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :

Ozgenurbastug: /* Content of a Variation Order */

2021-02-25T20:23:59Z

Content of a Variation Order

← Older revision		Revision as of 20:23, 25 February 2021
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	=== Content of a Variation Order ===		=== Content of a Variation Order ===

	[[File:Variation Order Form Example.png \|thumb \|~~100px~~\|Variation Order Form Example]]		[[File:Variation Order Form Example.png \|thumb \|150px\|Variation Order Form Example]]

	Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :		Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :

Ozgenurbastug: /* Variation Order: Definition & Content */

2021-02-25T20:23:45Z

Variation Order: Definition & Content

← Older revision		Revision as of 20:23, 25 February 2021
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	=== Content of a Variation Order ===		=== Content of a Variation Order ===

	[[File:Variation Order Form Example.png \|thumb \|~~1000px~~\|Variation Order Form Example]]		[[File:Variation Order Form Example.png \|thumb \|100px\|Variation Order Form Example]]

	Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :		Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :

Ozgenurbastug: /* Content of a Variation Order */

2021-02-25T20:23:28Z

Content of a Variation Order

← Older revision		Revision as of 20:23, 25 February 2021
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	=== Content of a Variation Order ===		=== Content of a Variation Order ===

			[[File:Variation Order Form Example.png \|thumb \|1000px\|Variation Order Form Example]]

	Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :		Since variation orders are many times the reason for a conflict between the agreed parties a variation order must be clear, it should involve no discrepancies. It should involve the work to be done, where and when the work should be executed, the payment method and time, changes in the duration, etc. Therefore, preparation stage of the variation order should be handled very carefully. Variation orders should particularly involve below mentioned information in order not to be the source of conflict/dispute later on between the agreeing parties <ref name="fisk" /> :

Ozgenurbastug: /* Conclusion */

2021-02-21T20:44:12Z

Conclusion

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	A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time, and material. They may be issued for addition or omission of work, change in plans, design, schedule, or scope. Due to dynamic and complex structure of the construction industry it is almost impossible to complete a project without issuing a variation order.		A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time, and material. They may be issued for addition or omission of work, change in plans, design, schedule, or scope. Due to dynamic and complex structure of the construction industry it is almost impossible to complete a project without issuing a variation order.

	Variation orders may be used as powerful tools to modify the project according to the needs of the client and to maximize the efficiency of the project. However, if the variation orders are not prepared carefully and in detail, then they might cause many issues between the involved parties and in the end may cause the project cost ~~to increase~~ and the completion time ~~to be extended~~.		Variation orders may be used as powerful tools to modify the project according to the needs of the client and to maximize the efficiency of the project. However, if the variation orders are not prepared carefully and in detail, then they might cause many issues between the involved parties and in the end may cause increase in the project cost and delays in the project completion time.

	== Annotated Bibliography ==		== Annotated Bibliography ==

Ozgenurbastug: /* Conclusion */

2021-02-21T20:43:35Z

Conclusion

← Older revision		Revision as of 20:43, 21 February 2021
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	A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time, and material. They may be issued for addition or omission of work, change in plans, design, schedule, or scope. Due to dynamic and complex structure of the construction industry it is almost impossible to complete a project without issuing a variation order.		A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time, and material. They may be issued for addition or omission of work, change in plans, design, schedule, or scope. Due to dynamic and complex structure of the construction industry it is almost impossible to complete a project without issuing a variation order.

	Variation orders may be used as powerful tools to modify the project according to the needs of the client and to maximize the efficiency of the project~~; however~~, if the variation orders are not prepared carefully and in detail, then they might cause many issues between the parties and in the end may cause the project cost and the completion time to be extended.		Variation orders may be used as powerful tools to modify the project according to the needs of the client and to maximize the efficiency of the project. However, if the variation orders are not prepared carefully and in detail, then they might cause many issues between the involved parties and in the end may cause the project cost to increase and the completion time to be extended.

	== Annotated Bibliography ==		== Annotated Bibliography ==

Ozgenurbastug at 20:42, 21 February 2021

2021-02-21T20:42:38Z

← Older revision		Revision as of 20:42, 21 February 2021
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	:*Time spent due to loss of productivity,		:*Time spent due to loss of productivity,
	:*Loss of time due to delayed material delivery for the extra works.		:*Loss of time due to delayed material delivery for the extra works.

			== Conclusion ==

			A variation order is a written agreement to change the work from that agreed in the contract. In general, variation orders may involve change in scope, time, and material. They may be issued for addition or omission of work, change in plans, design, schedule, or scope. Due to dynamic and complex structure of the construction industry it is almost impossible to complete a project without issuing a variation order.

			Variation orders may be used as powerful tools to modify the project according to the needs of the client and to maximize the efficiency of the project; however, if the variation orders are not prepared carefully and in detail, then they might cause many issues between the parties and in the end may cause the project cost and the completion time to be extended.

	== Annotated Bibliography ==		== Annotated Bibliography ==

Ozgenurbastug: /* Detrimental Variations */

2021-02-21T20:31:44Z

Detrimental Variations

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	As a common conclusion of the research made on the impacts of the variation order, it has been found that the most common impact of the variation orders is the cost overrun followed by time overrun:		As a common conclusion of the research made on the impacts of the variation order, it has been found that the most common impact of the variation orders is the cost overrun followed by time overrun:

	:'''Cost ~~Overruns~~'''		:'''Cost Overrun'''

	:Variation orders are generally prepared for the additional works; therefore, they will cause the increase in the cost due to:		:Variation orders are generally prepared for the additional works; therefore, they will cause the increase in the cost due to:
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	:*Change in cash flow due to inflation.		:*Change in cash flow due to inflation.

	:'''Time ~~Overruns~~'''		:'''Time Overrun'''

	:Variation orders might affect the project completion time adversely due to:		:Variation orders might affect the project completion time adversely due to:

Ozgenurbastug: /* Detrimental Variations */

2021-02-21T20:30:44Z

Detrimental Variations

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	:*Change in cash flow due to inflation.		:*Change in cash flow due to inflation.

	'''Time Overruns'''		:'''Time Overruns'''

	Variation orders might affect the project completion time adversely due to:		:Variation orders might affect the project completion time adversely due to:
	*Time spent during the preparation, negotiation and approval of the variation order,		:*Time spent during the preparation, negotiation and approval of the variation order,
	*Extra time needed for the additional works in the variation order,		:*Extra time needed for the additional works in the variation order,
	*Time spent due to loss of productivity,		:*Time spent due to loss of productivity,
	*Loss of time due to delayed material delivery for the extra works.		:*Loss of time due to delayed material delivery for the extra works.

	== Annotated Bibliography ==		== Annotated Bibliography ==

Ozgenurbastug: /* Impacts of Variation Orders */

2021-02-21T20:29:47Z

Impacts of Variation Orders

← Older revision		Revision as of 20:29, 21 February 2021
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	Construction projects involve complex operations which cannot be accurately determined in advance. <ref name="Ruben"/> Variation orders can be considered as escape points from the contract when the changes are required to the contract. These changes which are executed via variation orders, may satisfy the needs of the client for the overall project, correct the problems faced during the construction phase and to be able to complete the project with maximum efficiency. <ref name="potential"/> On the other hand, variation orders may cause significant problems throughout the course of the project if they are not handled carefully.		Construction projects involve complex operations which cannot be accurately determined in advance. <ref name="Ruben"/> Variation orders can be considered as escape points from the contract when the changes are required to the contract. These changes which are executed via variation orders, may satisfy the needs of the client for the overall project, correct the problems faced during the construction phase and to be able to complete the project with maximum efficiency. <ref name="potential"/> On the other hand, variation orders may cause significant problems throughout the course of the project if they are not handled carefully.

	Variations can be divided into two as beneficial and detrimental variations.		Variations can be divided into two as beneficial and detrimental variations:

	=== Beneficial Variations ===		=== Beneficial Variations ===

	'''''Beneficial variations''''' are the type of variations which are good for the project. They provide positive impact to the project; therefore, they are welcomed by the management of the project. <ref name="Ibbs"/>These impacts can be:		'''''Beneficial variations''''' are the type of variations which are good for the project. They provide positive impact to the project; therefore, they are welcomed by the management of the project. <ref name="Ibbs"/>These impacts can be:
	*Reduction in cost		*Reduction in cost,
	*Reduction in time		*Reduction in time,
	*Improvement of the quality standards		*Improvement of the quality standards,
	*Omission of the errors		*Omission of the errors,
	*Reduction in the degree of difficulty in the project		*Reduction in the degree of difficulty in the project.

	=== Detrimental Variations ===		=== Detrimental Variations ===

	'''''Detrimental variations''''' are the type of variations that reduce owner value and have a negative impact on a project. They should be minimized as much as possible to avoid the problems. It must be also noted that the detrimental variations may not seem detrimental in the first place but due to their timing they might be considered as detrimental. They may have to be applied due to lack of any other alternative available at that moment of the project. <ref name="Ibbs"/> Potential impacts of the detrimental variations can be:		'''''Detrimental variations''''' are the type of variations that reduce owner value and have a negative impact on a project. They should be minimized as much as possible to avoid the problems. It must be also noted that the detrimental variations may not seem detrimental in the first place but due to their timing they might be considered as detrimental. They may have to be applied due to lack of any other alternative available at that moment of the project. <ref name="Ibbs"/> Potential impacts of the detrimental variations can be:
	*Cost overruns		*Cost overruns,
	*Time overruns		*Time overruns,
	*Disputes between the parties of the contract		*Disputes between the parties of the contract,
	*Adverse effect on the professional reputation of one or more parties		*Adverse effect on the professional reputation of one or more parties,
	*Additional specialist equipment/personnel		*Additional specialist equipment/personnel,
	*Additional health & safety equipment/measure		*Additional health & safety equipment/measure,
	*Degradation of health & safety		*Degradation of health & safety,
	*Degradation of quality		*Degradation of quality.

	As a common conclusion of the research made on the impacts of the variation order, it has been found that the most common impact of the variation orders is the cost overrun followed by time overrun.		As a common conclusion of the research made on the impacts of the variation order, it has been found that the most common impact of the variation orders is the cost overrun followed by time overrun:

	'''Cost Overruns'''		:'''Cost Overruns'''

	Variation orders are generally prepared for the additional works; therefore, they will cause the increase in the cost due to:		:Variation orders are generally prepared for the additional works; therefore, they will cause the increase in the cost due to:
	*Time and material charges,		:*Time and material charges,
	*Overheads,		:*Overheads,
	*Rework and stand by time,		:*Rework and stand by time,
	*Loss of productivity,		:*Loss of productivity,
	*Change in cash flow due to inflation.		:*Change in cash flow due to inflation.

	'''Time Overruns'''		'''Time Overruns'''