VARIATION ORDERS IN UNIVERSITI TEKNOLOGI MALAYSIA
(UTM) CONSTRUCTION PROJECTS
NOR HAYATI BINTI IBRAHIM
Laporan projek ini dikemukakan sebagai memenuhi
sebahagian daripada syarat penganugerahan
Ijazah Sarjana Sains
(Pengurusan Pembinaan)
Fakulti Kejuruteraan Awam
Universiti Teknologi Malaysia
NOVEMBER, 2006
DEDICATION
For my beloved parents,
my family,
my lecturers,
my friends
and
to all Muslims,
**********
“And do not stretch your eyes after that with
which We have provided different classes of them,
(of) the splendour of this world’s life,
that We may thereby try them,
and the sustenance (given) by your Lord
is better and more abiding”
[Surah Ta-Ha, verse 131]
ACKNOWLEDGEMENT
Firstly, I desire to state my truthful gratitude to my supervisor Associate
Professor Aziruddin Ressang for the guidance and motivation.
The participating respondents from Harta Bina UTM, Consultants and
Construction firms which involved in the survey and individual, which contributed,
and supporting me in undertaking this research. I am thankful with the support.
As a final point, appreciation to all friends and colleagues for their kindness.
May Allah bless all of you.
ABSTRACT
The project holder have to believe that no construction method or for that matter the
project, is free of variation and it’s afterward activity of claims. A document review
was done for 18 numbers of construction contract documentation projects in
Universiti Teknologi Malaysia (UTM) during the period of the Seventh Malaysian
Plan from 1996 to 2000 with the total value of all projects in the excess RM100
million. The client, consultant and contractor become the main respondent target. In
general, UTM’s construction projects of building works, renovation works and
infrastructure works during Seventh Malaysian Plan are not impervious to variation
orders. Every project of building works an average of RM 2.08 million is expend on
variation orders and about RM 0.31 million is spent for every variation orders
occurred in renovation and infrastructure works. All these have impacted the cost and
the completion time of projects. This study has concluded the most numerous cause of
variation orders in UTM construction projects which is inadequate consideration of
design. Meanwhile, the top five of the effects of these variation orders are listed as
followed; increase in project cost; delay in payment; procurement delay; logistic
delay; completion schedule delay. The findings of this study also points out that the
involvement of profession in the design phase and continuous coordination and direct
communication are the two most considered factors to minimizing the happening of
variation orders.
ABSTRAK
Industri pembinaan seolah-olah sudah tidak mampu mengelak dari terlibat dengan
sebarang perubahan kerja terutamanya ketika berlangsungnya projek yang
kemudiannya disusuli pula oleh pelbagai tuntutan. Ulangkaji dokumentasi pembinaan
telah dilaksanakan terhadap 18 buah dokumen kontrak pembinaan Universiti
Teknologi Malaysia (UTM) di dalam tempoh Rancangan Malaysia Ketujuh iaitu dari
tahun 1996 hingga 2000 yang melebihi nilai RM 100 juta. Sasaran responden utama
adalah terdiri dari klien, kontraktor dan perunding. Umumnya, keseluruhan projek
pembinaan UTM ketika tempoh Rancangan Malaysia Ketujuh samada kerja-kerja
yang melibatkan kerja-kerja bangunan, kerja ubahsuai dan kerja infrastruktur
semuanya ada perubahan kerja. Mengikut anggaran, sebanyak RM2.05 juta akan
dibelanjakan bagi perubahan kerja yang terlibat di setiap kerja bangunan, manakala
lebih kurang RM0.31 juta pula dibelanjakan setiap kali perubahan kerja pada kerjakerja ubahsuai dan infrastruktur. Semua ini sudah tentu menjejaskan kos dan tempoh
siap kerja bagi setiap projek yang terlibat. Kajian yang dilakukan telah menunjukkan
punca utama yang mendorong berlakunya perubahan kerja adalah kerana
pertimbangan yang kurang jitu ketika fasa rekabentuk. Sementara itu, lima (5) kesan
besar yang timbul setelah berlakunya perubahan kerja disenaraikan sebagaimana
berikut; meningkatnya kos projek; melambatkan proses bayaran; melambatkan
pelaksanaan; mlambatkan logistik; dan melambatkan/menjejaskan jadual pelaksanaan.
Dua (2) langkah telah dikenalpasti di dalam kajian ini yang mana berkemungkinan
mampu untuk mengurangkan berlaku perubahan kerja di dalam sesebuah projek iaitu;
penglibatlan semua profesion ketika fasa rekabentuk dan penyelenggaraan yang
berterusan dan komunikasi langsung antara pihak yang terlibat.
LIST OF CONTENT
Title
i
Declaration
ii
Dedication
iii
Acknowledgement
iv
Abstract
v
Abstrak
vi
List of Figures
x
List of Tables
xi
CHAPTER I: INTRODUCTION
1.1
Introduction
1
1.2
Background of the problem
3
1.3
Objective of study
5
1.4
Scope of study
6
1.5
Significance of study
6
1.6
Research methodology
7
CHAPTER II: VARIATION ORDER – CAUSES AND EFFECTS
2.1
Introduction
9
2.2
Definition of variation order
10
2.3
Causes of Variation Orders
15
2.4
Effects of Variation Orders
19
2.5
Variation Claims Procedures under the PWD Standard Form 203
23
Summary
CHAPTER III: RESEARCH DESIGN
3.1
Introduction
28
3.2
Research Design
28
3.3
Research Procedure
30
3.4
Data Gathering Process and Instrumentation
35
3.4.1
Document Study Design
37
3.4.2
Questionnaire Survey Design
40
3.4.3
Structured Interview Research Design
43
3.4.4
Summary
46
CHAPTER IV: RESEARCH ANALYSIS AND FINDINGS
4.1
Introduction
47
4.2
Respondent and primary source of information
48
4.3
Limitation of study
50
4.4
Data Analysis
50
4.4.1
1st Method: Frequency Analysis
50
4.4.2
2nd Method: Relative Index Analysis
51
4.4.3
3rd Method: Document Study Analysis
52
4.5
Research analysis of the construction contract document study
53
4.6
Research Findings of the Construction Contract Document Study
53
4.7
Research Analysis of the Respondent for Questionnaire
and Interview
4.8
Research Findings of the Respondent for Questionnaire Survey and
Interview
4.9
64
Research Findings of Effects of Variation Orders for Questionnaire Survey
and Interview
4.13
59
Research Analysis of Effects of Variation Orders for Questionnaire Survey
and Interview
4.12
59
Research Findings of Contribution Factors of Variation Orders for
Questionnaire Survey and Interview
4.11
57
Research Analysis of Contribution Factors of Variation Orders for
Questionnaire Survey and Interview
4.10
56
65
Research Analysis of Proposed Strategies to Minimize the
Adverse Effects of Variation Orders for Questionnaire Survey
and Interview
4.14
68
Research Findings of Proposed Strategies to Minimize the
Adverse Effects of Variation Orders for Questionnaire
4.15
Survey and Interview
69
Summary
71
CHAPTER V: CONCLUSION
5.1
Introduction
72
5.2
1st Objective; To identify contribution factors of variation orders
72
5.3
2nd Objective; To study the effects of variation orders in construction
Projects
5.4
74
3rd Objective; To propose strategies to minimize the adverse effects
of variation orders
77
Bibliography
79
Appendix
87
LIST OF FIGURES
Figure 1.1: Research methodology
8
Figure 2.1: Some of the events where the supervising officer shall issue
instruction
13
Figure 2.2: Some of the events where the supervising officer is deemed to
have given instructions
14
Figure 2.3: Some of the events where the supervising officer may issue
instructions
14
Figure 2.4: Process from inception to site operations
16
Figure 2.5: Origin of variation
18
Figure 2.6: Variation order process
24
Figure 3.1: Research design
29
Figure 3.2: General research procedure
31
Figure 3.3: Research methodology phase 1
32
Figure 3.4: Research methodology phase 2
33
Figure 3.5: Research methodology phase 3
34
Figure 3.6: Research design procedure
35
Figure 4.1: Respondents categories
48
Figure 4.2: Types of contract document
54
Figure 4.3: Variation order value according to types of contract
54
Figure 4.4: Variation order value according to types of contract for every project 55
Figure 4.5: Respondent organization for questionnaire survey
57
Figure 4.6: Respondent profession for questionnaire survey
58
Figure 4.7: Reasons for providing a variation clause in a building contract
60
Figure 4.8: Reasons for claims by contractors
62
Figure 4.9: Greatest problem in contract management
63
Figure 4.10: Effects of variation orders
66
Figure 4.11: Strategies to minimize adverse effects of variation orders
70
Figure 5.1: Summaries of proposed strategy
78
LIST OF TABLES
Table 1.1: The summaries of government allocation and expenditure for such
development within Seventh Malaysian Plan, 1996-2000
7
Table 3.1: Instruments in data gathering process
36
Table 3.2: Principles of qualitative research
37
Table 3.3: Validity in qualitative research
38
Table 3.4: Procedure of document study
40
Table 3.5: Steps to design and manage questionnaire
41
Table 3.6: Questionnaire research design
41
Table 3.7: Questionnaire survey section
42
Table 3.8: Types of interview
44
Table 3.9: Do and Don’t during interview
45
Table 3.10: Structured interview design
46
Table 4.1: UTM construction projects during Seventh Malaysian Plan
49
Table 4.2: Document study general information tabulation
53
Table 4.3: Variation order value according to types of contract
54
Table 4.4: Causes of variation order used in questionnaire
56
Table 4.5: Reasons for providing a variation clause in a building contract
59
Table 4.6: Contribution factors of variation orders
61
Table 4.7: Reasons for claims by contractor
62
Table 4.8: Effects of variation orders
64
Table 4.9: Findings of effects of variation orders
65
Table 4.10: Best five overall score in effects of variation orders
66
Table 5.1: Contribution factors of variation orders
73
Table 5.2: Effects of variation orders
75
Table 5.3: Overall score in effects of variation orders
76
CHAPTER I
INTRODUCTION
1.1
Introduction
The construction industry has been consistently criticized for poor
performance in attaining its client’s requirements. Time and cost overruns were
predominately common and were well documented. The incidence and magnitude of
variations was identified as a major cause and a focus of much of the criticism.
Variation issued during the construction period are time consuming and costly. Thus
accepted as an inevitable part of construction, variations are a major cause of
disruption, delay and disputes and generate significant cost impact (Ibbs et al, 2001).
Delay is generally acknowledged as the most common, costly, complex and
risky problem encountered in Malaysian construction projects. Many of the problems
were originated from the lack of knowledge and skills needed (Azhan, 2004). Most of
the construction projects are often plagued with delays and cost overruns, revealing
this shows that most of the construction of Government School Projects initiated by
Ministry of Educations especially for the School Computer Laboratory Projects, were
totally delays and Housing Quarters for Teachers only 412 units completed out of
1900 units targeted in the Seventh Malaysian’s Plan from 1996-2000 (Berita, March
2002). Yet no empirical method or tool, quantitative or otherwise, is available for
managing or controlling them.
By that, the conventional approach is to include a percentage of the project
cost as contingency in the pre-contract budget for their occurrences. The allocated
contingency based on this method is largely judgmental and arbitrarily allocated.
However, construction projects are unique; as they may have distinctive set of
objectives, require the application of new technology or technical approaches to
achieve the required result, or even duplicate a given set of results in an entirely
different environment. This uniqueness makes the conventional method based wholly
on the project manager/supervisors' experience and intuition in danger of overly
simplistic and unrealistic. The objectives of the contingency allocation are to ensure
that the budget set aside for the project is realistic and sufficient enough to contain the
risk of unforeseen cost increases. Therefore any realistic contingency must serves as a
basis for decision making concerning financial viability of the variations, and a
baseline for their control. The problem could become worse when there is a series of
variations, when the programmed is affected and when the time spent by the
contractor’s head office staff becomes totally disproportionate to the value of the
contract.
There are many reasons why variations occur. They may be due to extra work
caused by subsurface conditions, errors in contract documents, additional quantities of
works or materials, reduction of work, or lack of proper communication between the
parties. There is room for improvement in present practices for keeping track of
variations. Therefore, proposing some strategies to minimize the variation orders can
be valuable.
1.2
Background of the problem
Variations are inevitable in any construction project (Ibbs et al, 2001). Needs
of the owner may change in the course of design or construction, market conditions
may impose changes to the parameters of the project, and technological developments
may alter the design and the choice of the engineer. The engineer's review of the
design may bring about changes to improve or optimize the design and hence the
operations of the project. Furthermore, errors and omissions in engineering or
construction may force a change. All these factors and many others necessitate
changes that are costly and generally un-welcomed by all parties.
Variations in drawings and contract documents usually lead to a change in
contract price or contract schedule. Variations also increase the possibility of
contractual disputes (O’Brien, 1998). Typically, variations present problems to all the
parties involved in the construction process. Variations can be originated from
numerous factors pertinent to the construction projects. Development in the education
sector and the new modes of teaching and learning advanced the need for renovation
or extension of existing academic institutions. The change of space in academic
institutions is required to cater for the new technology used. The construction of an
institutional building poses risks common to any other large projects (Faizal, 2005)
The construction process can be influenced by highly changing variables and
unpredictable factors that could result from different sources. These sources include
the performance of construction parties, availability of resources, environmental
conditions, involvement of other parties and contractual relations. As a consequence
of these sources, the construction of projects may face variations that could cause
delay in the project completion time (Clough and Sears, 1994).
Kumaraswamy et al (1998) studied claims for extension of time due to
excusable delays in Hong Kong's civil engineering projects. Their findings suggested
that 15-20 percent time over run was caused mainly by inclement weather. A total of
50 percent of the projects surveyed were delayed because of variations. The
institutional projects would also experience similar delays due to variations and
inclement weather as Malaysia is in the tropical zone.
Kaming et al (1997) studied the factors influencing construction time and cost
over runs for high-rise projects in Indonesia where 31 project managers working in
high-rise buildings were surveyed. Kaming et al (1997) pointed out that the major
factors influencing cost over run were material cost increase due to inflation,
inaccurate material estimating and the degree of project complexity. In the case of
time over run, the most important factors that caused delays were design changes,
poor labour productivity, inadequate planning, and resource shortage.
The magnitude of average schedule slippage due to variations was reported as
18 percent (CII, 1990; Zeitoun and Oberlender, 1993). The deviation (variation) cost
amounted to an average of 14 percent of the total cost of the project. Although there
have been cases where variation cost accounted for as high as 100 percent of the
budgeted funds, the industry norm was about 10 percent. The impact of variations
varies from one project to another. However, it is generally accepted that variations
can affect construction projects with unpalatable consequences in time and cost
(Hester et all, 1991; Ibbs et al, 2001).
Variations are of two types, namely beneficial variations and detrimental
variations. Beneficial variations are those that actually help to improve quality, reduce
cost, schedule, or degree of difficulty in the project. Detrimental variations are those
that reduce owner value or have a negative impact on a project. The project team
should be able to take advantage of beneficial variations when the opportunity arises.
The need to make changes on a construction project is a matter of practical reality.
Even the most thoughtfully planned project may necessitate changes due to various
factors. The variations can be minimized when the problem is studied collectively as
early as possible, since the problems can be identified and beneficial variations can be
made (CII, 1994).
Variations are familiar in all types of construction projects. Variations in
construction projects can cause substantial adjustment to the contract duration, total
direct and indirect cost, or both. The variations and variation orders can be deleterious
in any project, if not considered collectively by all participants. Most of University
Teknologi Malaysia (UTM) construction projects were delayed with certain amount
of variation order increasing from the original value of the contract sum. The focus of
this study would be on the total value of all projects in the excess RM100 million with
18 numbers of projects received during the period of the Seventh Malaysian’s Plan
from 1996-2000. Due to general background of the problems in the construction
industry and the specific problems within the UTM construction scope, there is a
cause for a study to be made on causes and effects of variation orders in UTM
construction projects.
1.3
Objective of study
The aim of this study is to identify and analyze the potential effects of
variation orders in Malaysian construction projects. To achieve the above aim, the
following objectives have been identified.
1.
To identify contribution factors of variation orders.
2.
To study the effects of variation orders in construction projects.
3.
To propose strategies to minimize the adverse impact of variation orders.
1.4
Scope of study
The scope of the study is focused on government projects. The imperative of
the study would be reflected on the total value of all projects in the excess RM100
million with the projects reviewed during the time of the Seventh Malaysian Plan
from 1996-2000, where most of the UTM construction projects were implemented
during this period.
1.5
Significance of study
As variation orders can have numerous negative effects to projects cost and
schedule, this study is carried out to identified the major causes those contribute to
variation orders and to study the effects of variation orders during the implementation
of construction projects, which will be supportive for construction professionals in
assessing and taking proactive measures for reducing the adverse impact of that.
Noted that the Government had allocated for the five (5) years development about
RM103.56billion, and RM 20.19billion from that amount were for education and
training sector development. From RM145million that had been allotted to UTM
construction projects, about RM108million had been laid out from RM105million
(original contract). This amendment occurred because of variation order. Reflecting to
variation order, almost RM3million could be saved if variation order can be
controlled and this was one of the adverse effects that rise from variation order. The
summaries of these situations are shown in Table 1.1.
Table 1.1: The Summaries of Government Allocation and Expenditure for Such
Development within Seventh Malaysian Plan, 1996-2000.
Subject
Allocation (RM)
Expenditure (RM)
By Sector : Education And Training
20.19 Billion
19.72 Billion
UTM
145 Million
108 Million
(Source: Harta Bina, UTM; RMK7, 1996-2000)
1.7
Research methodology
The method used in conducting this study started with literature review. This
followed with the document study, that are study, review and analyze of contract
documents and final accounts that is related to variation orders. The document
contract are treated as forbidden document and restricted therefore digital photo study
are required to be employed where the document are not to be brought out from the
particular area. The digital photo study of the contract document will be prepared
similarly to the document study. Vital aspects of variation orders in the contract
document will be identified and tabulated accordingly to their considerable.
The focus of the research mainly concentrated at the client organization as the
primary respondent where the contract document originated. Structured interviews are
to be conducted with the professionals in the client organization who are involved in
the construction process and contract administration. This will reveal the facts for the
second objective that is the effects of variation orders in construction projects. In
order to strengthen the data for the secondary respondent, telephone interview with
the contractor and the consultant parties will be conducted. After the telephone
interview, if the secondary respondents are cooperative and supportive, postal
questionnaire will be sent to them for a better detailed exploration. Further structured
interviews are deliberate for the secondary respondent where possible.
Finally, matching methods were in use as in preceding step by performing
structured interview and questionnaire in the client organization and telephone survey
with the consultants and contractor to recognize strategies to minimize the adverse
effects of variation orders. Advance analysis and synthesis of the documents will be
prepared to identify the strategies that can be done. The proposed strategies to
minimize the adverse impact of variation orders expose as a result.
The summaries of research methodology are shown in figure below.
Methodology Phase 1
Methodology Phase 2
Methodology Phase 3
Figure 1.1: Research Methodology
CHAPTER II
VARIATION ORDER – CAUSES AND EFFECTS
2.1
Introduction
Variation orders are among the most significant sources of cost growth and
disruptions to field productivity on construction projects. Two sources of variation
orders exist on construction projects. Owner-generated variation orders are issued
when an amendment to the project scope, design, or detailing is requested by the
owner, and a change to the original contract agreement is required. Field- generated
variations orders come up when problems and conflicts are detected in the field that
requires a redesign or reconfiguration of the design. In both cases, variation orders
can have numerous negative effects to projects cost and schedule. These negative
effects are augmented depending on the timing of the variation order; with risky
effects increasing the further the project progresses. Often called “unforeseen,” field
generated variation orders are often highly disruptive to labour productivity, as one or
more trades are strained to disrupt planned work sequences, and at times, complete
rework. While owner generated variation orders are often predictable, field- generated
variations orders often happen from design errors or a lack or coordination in contract
documents, and are usually preventable.
2.3
Definition of variation order
There is no one definition of what is a variation. Each standard form of
building contract has its own definition but clearly ‘variation’, in generic sense, refers
to any alteration to the basis upon which the contract was let. This means the term
embraces not only changes to the work or matters appertaining to the work in
accordance with the provisions of contract, but also changes to the contract conditions
themselves.
A variation can be taken to be any, a combination of any or all of the following:
i.
Variation in building projects may mean ‘the alteration or modification of the
design, quality or quantity of the works, as shown upon the contract drawings
and described by or referred to in the contract bills, and includes the addition,
omission or substitution of any work, the alteration of the kind or standard of
any of the materials as goods to be used in the works, and the removal from
the site of any work materials or goods executed or brought thereon by the
contractor for the purposes of the works other than work or material or goods
which are not in accordance with the contract’
(Clause 24(a): JKR 203)
ii.
Variations in building projects together with instructions regarding the
expenditure of provisional sums, prime cost sums and instructions concerning
the nature of the work which are not specifically termed a variation in the
contract documents.
iii.
Variation of contract in law, i.e. if both parties alter a contract document by
agreement after execution of the original contract this is a variation of the
contract terms or conditions.
iv.
Variation of price clause which enables the contract sum to be adjusted for
rises and falls in the cost of labour or materials.
It is clear that variations are directly attributed to matters not being as stated or
as required in the contract documents. This happen either because circumstances
actually change or because circumstances upon which the contract documents were
based were misconstrued.
The former is a matter which can easily appreciate and comprehend;
nevertheless, it still has two distinct aspects. Firstly, circumstances may change in
such a way, over which can have no control, that the documentation can now be seen
to be defective. Alternatively, circumstances may require that the client determines a
choice of action, with the resulting choice creating a variation.
That documentation is erroneous because of misinterpretation, lack of skill or
whatever, is more difficult to accept. Nevertheless, this problem exists and is often a
direct result of how and when the design developed. For example, if a detail was
believed to be complete it would be quantified and described accordingly, but the
belief that it was complete might well be erroneous. Likewise, a detail known to be
incomplete would on many occasions be assumed, quantified and described.
Occasionally such items are identifiable and are marked as provisional, but frequently
they are not, and there are instances where whole projects are documented on
incomplete details and without any indication of that fact save the drawings
themselves.
Building and civil engineering contracts generally have within them express
provisions enabling the supervising officer to issue instructions. It is accepted that
building and civil engineering contracts have an implied term that the supervising
officer shall issue instructions to the contractor whenever such instructions are
required. This is an obligation upon the supervising officer and not a right. Clearly,
the supervising officer must supply all drawings and information necessary for the
execution of the works, but it is submitted that such drawings and information cannot
change the obligations undertaken by the contractor, unless express provision is made
within the contract or the contractor gives his consent. If this submission is correct
then no implied term can give the supervising officer a general right to issue
instructions.
However, a term will be implied which compels the supervising officer to
issue instructions whenever they are necessary for the proper performance and
execution of the works. Failure of the supervising officer to give timely instructions
may well give rise to a breach of an implied term. A distinction between a right and
an obligation is necessary as it is of contractual significance. A term to the effect that
the supervising officer will issue necessary instructions for the due performance will
be implied in the absence of an express provision.
It is necessary to consider what constitutes an instruction and to distinguish
between the types of instructions from a supervising officer because whether an
instruction exists is contractually significant, as is the type and form of the instruction.
The contractor requires to receive the information in due time, and as long as
he does he is not adversely affected by its issue. Thus the supervising officer is
required to fulfill his obligation of providing sufficient details to enable the contractor
to comply with his obligations.
The use of the word ‘instruction’ in the express provision of PWD Standard
Forms of Contract approximately equates to the ordinary definition given in The
Concise Oxford Dictionary: a direction or order. However, it should be noted that not
all directions are considered to be instructions – see clause 5 of PWD Standard Form
203.
Instructions are often confused with variations or variation orders. An
instruction may constitute a variation, and express authority to issue instructions
requiring a variation is contained in all the PWD contracts under consideration.
However, not all instructions will be variations. Many instructions are patently not
variations yet contractors generally view a supervising officer’s instruction as a
variation with the potential that offers for additional remuneration and/or extension of
time. Figures 2.1 to 2.3 show some events which enable supervising officers to issue
instructions with regard to stated issues. In some instances the issue of such
instructions is discretionary, that is the supervising officer may, in other instances he
shall issue instructions, and on other occasions he is deemed to have given an
instruction.
-Where the expenditure of provisional
sums included either in the main contract
or subcontract is required
S.O. shall
issue
instruction
-Notification by the
contractor of a default by the
original nominated
subcontractor.
-Nomination of nominated
supplier.
-Where the subcontractor validly
determines his own employment.
-Notification by the contractor of a discrepancy in or divergence between
or within documents, including instructions (except where the instruction
constitute a variation) any drawings or documents issued.
-Where there is a divergence between the
Statutory Requirement and other related
documents and/or instruction requiring a
variation.
-Notification by the contractor of the existence of antiquities.
-Failure of proposed nomination to proceed to contract.
-Determination of subcontractors’ employment as a consequence of
their own default.
- Nomination of proposed subcontractor where an
alternative method of nomination is adopted.
-Determination of subcontractors’
employment arising from bankruptcy,
insolvency and the like.
Figure 2.1: Some of the events where the supervising officer shall issue instruction
(Source : Peter R. Hibberd, 1986)
-Where an error or omission in description or quantity
exists.
S.O. is deemed to
have given
instructions
-Compliance with emergency conditions
-Where the removal and disposal of debris or
damaged work and other specified items
occurring as a result of war damage has taken
place.
Figure 2.2: Some of the events where the supervising officer is deemed to have given
instructions
(Source : Peter R. Hibberd, 1986)
-Removal and disposal of debris occasioned
by an insurable peril.
-Removal and disposal of debris or damage, protective work,
as a consequence of the works sustaining war damage.
S.O. may issue
instructions
-Postponement of any work.
-Where documents
necessary for the purposes
of compiling the final
account are to be sent to
the quantity surveyor
-Error in setting out
where cost is not to be
borne by contractor.
-Exclusion of persons employed on the site.
-Making good of defects, shrinkage or
other faults which appear within the
defects liability period.
-Removal of work, materials or
goods not in accordance with the
contract.
-Opening up for inspection or for arranging tests.
Figure 2..3: Some of the events where the supervising officer may issue instructions
(Source : Peter R. Hibberd, 1986)
2.3
Causes of Variation Orders
Before a decision is made to build new or alter existing building clients must
consider their needs carefully. In the first instance they must ask themselves why it is
necessary to incur expenses, and usually alternative ways round the problem would be
sought. Figure 2.4 shows the process from inception to site operations. The client’s
objectives are considered by the design team and a continuous process of design takes
place until no further modifications can be incorporated, even when considered,
because constraints of time and cost finally draw the line. The point at which this
happens is extremely variable, being partly dependent upon the make up and nature of
the design team and partly upon their relationship with the client body.
The fundamental issue is not, however whether the design is conclude before
or after commencement of the works, but whether the contractual arrangement chosen
is compatible with the extent and timing of such design. In other words, some
contracts accommodate degrees of change more readily than others because they
accept that change is part of the design process which continues after the contract is
made. It is therefore essential that the professional advisers select the appropriate
level of design and adopt the contractual arrangement to suit.
The appropriate level of pre contract design is dependent upon the priorities
that the client establishes (e.g. time, cost, and aesthetics), and the design team should
always discuss these priorities fully with the client. Even where the design team
concludes their design, it can be argued that the design process itself is still not
complete because the contractor (not a member of the design team in traditional
procedures) is responsible for the last level of design in many, if not all, instances.
The level of design by the contractor may be a conscious decision.
4. What type of building
4. Preliminaries
1. It is necessary to build
5. Appointment
of consultants
1. Outline planning
5. Report
2. Architect appointment
INCEPTION
2. Can it be done?
6. Decision to
continue with
project
3. The brief
FEASIBILITY
3. Site visit
[BRIEFING]
3. Construct a Model
1. Detailed
4. Alternative proposals
2. Brief
specifications
SCHEME
DESIGN
[SKETCH PLAN]
1. Layout of building
2. Structural design
OUTLINE
PROPOSAL
3. Services requirement
5. Estimated
costs
4. Cost checks
1. Production drawings
4. Contract particulars
1. Detail drawing for
building control
2. Schedules
PRODUCTION
INFORMATION
5. NS/NSC
2. Structural
calculations by
i
3. Drawings by services
3. Specifications
3. Bill
4. Final client’s
DETAIL
DESIGN
4. Appointment of
contractor
1. Tender list
prepared
BQ
2. Invitation to tender
TENDER
ACTION
[WORKING DRAWINGS]
3. Programme of
work
3. Contractor takes
possession of site
PROJECT
PLANNING
COMPLETION
1. Practical
completion
arrangement
OPERATION
ON SITE
1. Supervision
of work
3. Bill
Figure 2.4: Process from inception to site operations
1. Analyze
final costs
2. Final
inspections of
works &
certify
3. Handover to
client
2. Working up
and checking
[SITE OPERATIONS]
(Source: Forster, G. 1986)
2. Working up an
checking
2. Finalize programe
of work
4. Commencement
of work on site
1. Project
meeting
1. Take off from
drawings etc.
2. Record for
future
FEEDBACK
It may also be involuntary and determined by the expertise of the operatives
employed, with the end product not necessarily achieving and absolute standard but
failing within and acceptable tolerance.
This element of design is generally limited but is still significant because the
contractor will often suggest that if the supervising officer requires the work to be
carried out in a way different from his assumption then this constitutes an instruction
which causes a variation to the basis upon which the contract is let, therefore financial
adjustment in favour of the contractor is required on the basis that the contractor’s
assumption will always be the least expensive.
It is evident that many changes to the works occur even though the clients’
brief remains the same; however, the client must be able to amend his brief as
necessary. The amendment to the design brief will frequently result in a change to the
work, and many practioners believe this latter point is why a variation clause exists.
Matters of design in the widest sense are the major cause of variations but
there are in addition matters which appertain to the works but do not affect its design.
For instance, the area of site and its access, the sequence of operations, restrictions on
working time and the like. These are issues that may require a variation because
circumstances are not as they were when the contract documents were prepared or
because they were not full appreciated at that time and were thus inaccurately
recorded.
It is possible for the client to avoid the consequences of some of these changes
but he cannot where he warrants a particular situation or the law implies such a
situation. In these circumstances the client will be considered in default and must have
a means of overcoming the problem of his default and express provisions, permitting
variations of this nature exist within the standard forms of contract.
Variations arise for a variety of reasons. Some are foreseeable, others are not.
Some result from a genuine change of circumstances and others from the design
team’s own inadequacies. Figure 2.5 shows the origin of variations. It is regrettable
that what evidence there is seems to suggest that the design teams are the main cause
of the involuntary variation.
2.4
Effects of Variation Orders
Effects of variation orders were observed by many researchers (CII, 1986: CII,
1990: Clough and Sears, 1994: CII, 1994: Thomas and Napolitan, 1995: Fisk, 1997:
Ibbs et. al., 1998). The 16 effects identified from the literature review are discussed
below;
Variations during the project may affect the project progress and quality (CII,
1994, Assaf et al, 1995). Time has an equivalent money value even if the professional
team tries its best to keep the project completion schedule intact. However, only
major variations during the project may affect the project completion time. The
contractor would usually try to accommodate the variations by utilizing the free floats
in the construction schedules. Hence, the variations affect the progress but without
any delay in the project completion.
The most common effect of variations, during the construction phase, is the
increase in project cost (CII, 1990). Any major additions or alterations in the design
may eventually increase the project cost (Clough and Sears, 1994). In every
construction project, a contingency sum is usually allocated to cater for possible
variations in the project, while keeping the overall project cost intact.
Variations are frequent in complex technological projects (CII, 1995).
Specialized manpower is one of the integral resources required for complex
technological projects (Fisk, 1997). Depending on the nature, occasionally, the
variations may require hiring new professionals or change in the entire project team.
The project progress was expected to be greatly affected in cases where the new
professionals were not readily available.
Variations require processing procedures, paper work and reviews before they
can even be implemented (O’Brien, 1998). The process and implementation of
variations in construction projects would increase the overhead expenses for all the
participants concerned. Normally these overhead charges are provided for from the
contingency fund allocated for the construction project.
Delay in payment occurred frequently due to variations in construction
projects (CII, 1990. Variations may hinder the project progress, leading to delays in
achieving the targeted milestones during construction (CII, 1995. Eventually, this may
affect payment to the contractors. Occasionally this delay may cause severe problems
that end up in delays in payment to the subcontractors; this is because main
contractors may not be able to pay the subcontractors unless they get paid by the
owner first.
Variations, if frequent, may affect the quality of work adversely (Fisk, 1997).
According to CII (1995), the quality of work was usually poor because of frequent
variations because contractors tended to compensate for the losses by cutting corners.
Interruption, delays and redirection of work that are associated with variation
orders have a negative impact on labor productivity. These in turn can be translated
into labor cost or dollar value (Ibbs, 1997). Hester et al (1991) argued that the
productivity of workers was expected to be greatly affected in cases where they were
required to work overtime for prolonged periods to compensate for schedule delays.
Thomas and Napolitan (1995) concluded that variations normally led to disruptions
and these disruptions were responsible for labor productivity degradation. The most
significant types of disruptions were due to the lack of materials and information as
well as the work out of sequence. Lack of material was reported as the most serious
disruption. Hence, to manage variation, one needed to manage these disruptions.
However, the disruptive effects could not be avoided in many instances.
Variations which are imposed when construction is underway, may require
revised procurement requests (O’Brien, 1998). Procurement delays can be frequent
due to variations that require new materials and specialised equipment. Hester et al
(1991) observed that procurement delays were common effects of variations related to
new resources for construction projects.
Rework and demolition are frequent occurrences due to variations in
construction projects (Clough and Sears, 1994). Variations that are imposed when
construction is underway or even completed, usually lead to reworks and delays in
project completion (CII, 1994). Rework and demolition are potential effects of
variations in construction, depending on the timing of the occurrence of the variations.
These effects are to be expected due to variations during the construction phase. This
is because the variations during the design phase do not require any rework or
demolition on construction sites.
Logistics delays may occur due to variations requiring new materials and
equipment (Fisk, 1997). Hester et al (1991) observed that logistics delays were
significant effects of variations in construction projects. Logistics delays were
experienced in construction projects where variations in the construction phase
required new materials, tools and equipments.
Variations are referred to as a major source of construction claims and
disputes (Fisk, 1997; Kumaraswamy et al, 1998). The claims and disputes may affect
the firm's reputation adversely, leading to insolvency in severe cases. Variations also
increase the possibility of professional disputes. Conventionally, variations present
problems to all the parties involved in the construction process.
Variations may affect the safety conditions in construction projects (O’Brien,
1998: Arain et. Al., 2004). This is because variations in construction methods,
materials and equipment may require additional safety measures during the
construction phase.
Construction changes are a major source of construction dispute (Fisk, 1997).
Eventually, variations may affect professional relations, leading to disputes. Clear
procedures that are presented in the contract and fair allocation of risks can help in
resolving disputes through negotiation rather than litigation (CII,1986: Arain et. Al.,
2004).
Additional payments for the contractor can be a potential effect of variations
in construction projects. This is because variations are considered to be a common
source of additional works for the contractor (O’Brien, 1998). Due to additional
payments, the contractor looks forward to variations in the construction project.
Like poor professional relations, disputes among professionals are also
potential effects of frequent variations in construction projects. The disputes over
variation orders and claims are inevitable and the variation clauses are often the
source of project disputes (CII, 1986). Clear procedures presented in the contract and
fair allocation of risks can help in resolving disputes through negotiation rather than
litigation (CII, 1986). Frequent communication and strong coordination can assist in
eliminating the disputes between professionals.
Completion schedule delay is a frequent result of variations in construction
projects (Ibbs, 1997). The magnitude of the schedule being delayed due to variations
was reported by Zeitoun and Oberlender (1993) to be 9 percent of the original
schedule for 71 fixed price projects studied. Kumaraswamy et. al. (1998) studied
claims for extension of time due to excusable delays in Hong Kong's civil engineering
projects. Their findings suggested that 50 percent of the projects surveyed were
delayed because of variations
2.5
Variation Claims Procedures under the PWD Standard Form 203
Most standard forms of contract include a clause under which the employer or
his representative is able to issue an instruction to the contractor to vary the works
which are described in the contract. A change in shape of the scheme, the introduction
of different materials, revised timing and sequence are all usually provided for by the
variations clause. It will also usually include a mechanism for evaluating the financial
effect of the variation and there is normally provision for adjusting the completion
date. In the absence of such a clause the employer could be in a difficulty should a
variation to the works be required. The contractor could either refuse to carry out the
work or undertake the work or insist upon payment on a quantum merit or fair
valuation basis. Calculation of the price for the extra work applying this method could
involve payment well in excess of the contract rates.
Even where a contract includes the usual variations clause there may be
circumstances which could lead to additions or changes introduced by the employer
which falls outside the variations clause. Contractors who find themselves with
unattractive contract prices would find it to their advantage to be able to argue that a
change introduced by the employer fell outside the variations clause thus leaving the
way open to argue that payment for the change should be on a quantum merit or fair
valuation basis. Figure 2.6 shows the variation orders process.
Figure 2.6: Variation Order Process
(Source: Baharuddin, 2005)
Based on the Public Work Department (PWD) Standard Form 203, variation
claims procedures should include;
ü All work requiring work to be varied must be in writing.
ü Oral instructions must be confirmed by the contractor within seven days.
ü Where provisions of the contract empowers the S.O. to vary the work, he must
comply with treasury instruction which stipulates that prior approval of the
relevant authority must be obtained before an instruction requiring work to be
varied may be issued.
ü Treasury instruction also makes distinctions between variations form claims
by the contractor and amendment of contract sums. Claims from contractor
and adjustment of contract sum are exempted from prior approval need.
Variations which result in reduction of contract sum are also exempted.
ü The following are exempted from need for prior approval;
§
Claims by the contractor for loss and/or expense arising from;
compliance with S.O. instruction, delay caused by the
Government, discrepancies in or between documents of the
contract document.
§
Claims by the contractor for fees and charges for permanent
connection to public sewers and water and electricity mains.
§
Other claims expressed permitted under the contract.
§
Adjustment of contract sum for or due to; adjustment of P.C.
and provisional sum, remeasured of work measured provisional,
fluctuation of prices.
§
Variations which result in reduction of contract sums.
ü Prior approval for variation work must be obtained from the relevant authority
as follows;
§
State Head or Head of Special Unit of engineering department in
committee: If the contract sum does not exceed RM5.0m and the
proposed variation does not exceed 20% of the contract sum, or
RM1.0m, whichever is lower.
§
Branch Director of engineering department in committee: If the
contract sum does not exceed RM7.5m and the proposed variation
does not exceed 20% of the contract sum, or RM1.5m, whichever is
lower.
§
Deputy Director General of engineering department in
committee:If the contract sum does not exceed RM10.0m and the
proposed variation does not exceed 30% of the contract sum, or
RM3.0m, whichever is lower.
§
Director General of engineering department in committee: If the
contract sum does not exceed RM20.0m and the proposed variation
does not exceed 30% of the contract sum, or RM6.0m, whichever is
lower.
§
Secretary General of Minister of Finance: All other cases
ü
The treasury circular also required approval to be granted by committees
rather than individual officers.
ü
Application for work to be varied before instruction can be issued must be
submitted to the secretariat at the various states of other levels of JKR in four
copies using standard application forms. Rules for variations in the standard
conditions must be observed.
ü
Once approved, the instruction can be issued and work executed accordingly.
However, before any certificate can be made, the measurement of the work
must be made and a certificate of variation works prepared. This certificate
must be signed by the S.O. and among the particulars required are the
justification for the works, the S.O.’s instruction and details of the
measurement.
ü
Adjustment of the contract sum is then made so that the contractor can be paid
accordingly. This certificate of adjustment must be prepared whenever the
contract sum need adjustment, i.e. after every variation issued.
2.6
Summary
References have already been made to the causes and effects of variation
orders. Any other change can only take place where there is agreement between the
parties. It is possible for the parties to a contract to vary the terms of the contract, so
long as they agree and so long as the variation is not legally invalid. Even where a
variation is legally invalid it may still be honoured by the parties, the fact that it is not
valid in law meaning only that the variation is not enforceable.
There are a number of reasons why a variation may be invalid, for instance, if
the essentials of a valid contract do not exist then the variation is invalid in law. The
most commonly encountered reason for a variation of contract not to be valid is lack
of consideration. A variation of contract must generally have some consideration, and
where this does not exist a deed of variation would need to be executed in order for
the variation to be enforced in law. A deed of variation overcomes lack of
consideration because the law accepts that a deed, which is a contract under seal, does
not require consideration for the contract to be valid.
CHAPTER III
RESEARCH DESIGN
3.3
Introduction
Research design ties up all of the aspects in a research project jointly. A
design is a plan for constructing the research structure using a succinct notation, that
recapitulate a multifarious design structure proficiently, to show how all of the most
important parts of the research project collaborate to attempt to address the central
research objective. The structural approach to research design in this chapter will
make clear to the detail process of the research procedural where the research
methodology elucidates the common modus operandi of the research.
3.4
Research Design
The compass of the research design is to generate some new knowledge. This,
in theory, can take three main appearances;
1. Investigative
Research Design
2. Constructive
Research Design
3. Pragmatic
Research Design
- a new problem can be
structured and identified.
-a new solution to a problem
can be developed.
- Empirical proof on the
practicability of an existing
solution to a problem can be
provided.
Figure 3.1: Research Design
(Stoner J.A.F.& Freeman R.E. 1992)
Producing a competent research design is one of most problematical and
highly constructive tasks that facilitate to simplify principles of design logic. The
research design must be exact and greatly flexible. The design must be extroverted
enough to adapt these very complexities while still pointing towards relevant data in
the epistemological orientation. None of the above scope can cater the planned
research in its category therefore, following discussion the focal arrangement of the
research.
The initiation was with the document study followed by research
questionnaire, and structured interview that has driven the design of the study. It is
implicit that the researcher’s personal qualities needed for flexible research design are
commonly regarded as skills central to the combination of qualitative and quantitative
research design procedure. Skills such as having an open and enquiring mind, being
good listener, general sensitivity and responsiveness to contradictory evidence are
relevant to the role of qualitative research analysis.
In quantitative research analysis, it is a systematic scientific investigation to
develop and employ mathematical models, theories and hypothesis pertaining to
research design. The process of measurement is central to quantitative research
because it provides the fundamental connection between empirical observation and
mathematical expression of quantitative relationships. In the research design
procedure, flexibility exists between both qualitative and quantitative approach where
the employment of rating scale and proposed model reflect quantitative. The
qualitative values are shown in document study and structured interview.
Quantitative methods are efficient, but qualitative methods were used to get
information that cannot obtain well with quantitative methods. Qualitative methods
are used to study the construction contract document and human interaction behavior
in interviews. Complex, understanding and opinions are not well captured by
quantitative techniques.
Qualitative methods study the variations of complex. By connecting
quantitative data to qualitative methods, the flexibility enriches the results with
people’s words and opinion. The usage of qualitative analysis techniques is therefore
both inductive and interactive in flexibility with the usage of quantitative definite with
mathematical models.
3.3
Research Procedure
Research procedure is a systematic development of investigation planned to
realize, infer and improve facts. This intellectual investigation procedure produces a
greater understanding of problems or hypothesis and makes practical applications
through theories, questioning and reasoning to achieve the research objectives hoping
to produce some new knowledge.
Generally, research procedure is understood to follow a certain structural
process. Though step order may vary depending on the subject matter and researcher,
the following steps are usually part of most formal research;
Formation
of the topic
Hypothesis
Conceptual
definitions
Operational
definitions
Conclusion
Analysis of
data
Gathering
data
Operational
definitions
Figure 3.2: General Research Procedure
(Stoner J.A.F.& Freeman R.E. 1992)
Succeeding the reference provided these research procedures were further
detailed to stipulate the intended method to accomplish specific objective stated. The
initial research procedure started with the formulation of the research topic that is
clearly explained in the first chapter of introduction. Following that, is background of
the problems discuss construction industry problems and ending with UTM
construction project taken as the scope of study.
The research objectives were specifically design where it is systematically
divided in three (3) stages in consecutive sequence. The first research objective is
related to second and continuously interconnected to the third objective. Data obtain
in the first objective is used in second objective and finally to justify the third
objective. The designs were in continuous consecutive sequence.
The first stage is to perform a document study. It is an aggregate in depth
study of review, analyze and synthesis of the final account document content. In the
various sections of the document the contribution factors of variation orders will be
identified. The variety range of the factors will then be organize and assemble in
tabulation form according to their important rating. The contribution factors of
variation orders are to be further classified into their scale of important. The highly
important factors are selected to be promoted and used in the next stage.
The method used in conducting this research started with literature exploration
of the electronic and hard copy media in answering the research objectives. This is
followed with the document study; that are study, review, analyze of construction
contract and final account document content that is related to contribution factors of
variation orders. The documents are treated as controlled document and limited
consequently digital photo study are required to be employed where the documents
are not to be brought out from the specified area. The digital photo study of the
contract document will be prepared similarly to the document study. Imperative
aspects of contribution factors of variation orders in the documents will be identified
and tabulated accordingly to their significant.
The summaries of research methodology phase 1 are shown in figure below.
7th Malaysian
Plan
1996-2000
[DOCUMENT STUDY]
Review
OBJECTIVE 1
Analysis
Contribution Factors of Variation
Orders
Synthesis
18 Documents
RM100Million
METHODOLOGY PHASE 1
Figure 3.3: Research Methodology Phase 1
The promoted, highly important contribution factors of variation orders are
then put to test in their effects of variation orders. This is simply to identify the effects
of variation orders within the studied document. Structured interview and
questionnaire will be employed within the client organization primarily and consultant
and contractor organization secondarily to discover the effects of variation orders.
Where face to face structured interview were not possible, to further reinforced the
data, telephone interview with selected relevant contractor and the consultant will be
conducted. The highly related and significant sections of the documents are then
exposed to the next stage.
The focus of the research mainly concentrated at the client organization as the
primarily respondent where the contract and final account documents originated.
Structured interviews and questionnaire (5 Scale Likert) are to be conducted with the
professionals in the client organization who are involved in the construction process
and contract administration. This will reveal the facts for the second objective that is
the effects of variation orders. In order to strengthen the data for the secondary
respondent, telephone interview with the contractor and the consultant parties will be
conducted. After the telephone interviews, if the secondary respondents are
accommodating and supportive, postal questionnaire will be sent to them for a better
specific investigation. Further structured interviews are intended for the secondary
respondent where possible.
The summaries of research methodology phase 2 are shown in figure below.
PRIMARY
RESPONDENT
[Harta Bina]
STRUCTURED
INTERVIEW
OBJECTIVE 2
Effects of Variation Orders
QUESTIONNAIRE
(5 Scale Likert)
SECONDARY
RESPONDENTS
[Contractor
Consultant]
METHODOLOGY PHASE 2
Figure 3.4: Research Methodology Phase 2
The final stage of the study is to propose strategies to minimize the adverse
effect of variation orders. Similar methods were employed as in previous stage by
conducting structured interview and questionnaire within the client organization and
the telephone survey with the consultants and contractors organization. The proposal
of the strategies minimizes the adverse effect of variation orders will be made
accordingly.
Finally, the research identifies the possible of strategies in order to minimize
the adverse effects of variation orders. Matching methods were employed as in
previous step by performing structured interview and questionnaire in the client
organization and telephone survey with the consultants and contractors. Further
analysis and synthesis of the strategies to minimize the adverse effects of variation
orders will be prepared to distinguish the strategies that can be done. The proposed
strategies to minimize the adverse effects of variation orders unveil consequently.
The summaries of research methodology phase 3 are shown in figure below.
PRIMARY
RESPONDENT
[Harta Bina]
OBJECTIVE 3
Proposed strategies to minimize
variation orders.
SECONDARY
RESPONDENTS
[Contractor
Consultant]
STRUCTURED
INTERVIEW
QUESTIONNAIRE
(5 Scale Likert)
ANALYSIS
METHODOLOGY PHASE 3
Figure 3.5: Research Methodology Phase 3.
The data gathering process and instrumentation will detailed in the following
sub topic. The whole discussions of research design procedure are represented
graphically in the following figure.
Methodology Phase 1
Methodology Phase 2
Methodology Phase 3
Figure 3.6: Research Design Procedure
3.4
Data Gathering Process and Instrumentation
Instrumentation and process of gathering data is the most arduous and
exclusive phase in a research design and it be worthy of cautiously planned as shown
in above figure. All the other processes were evidently clarify and discussed in
various chapter in this write up. For this research design chapter, the focus will only
be concentrated on data gathering instrumentation and process.
In many manners, the data gathering instrumentation and process were related
with operations that come before and after it in the research design shown. If there are
weaknesses in the preceding operations, it heralds difficulties in answering the
research questions and the objective, thus, the need for redesign of the data gathering
instrumentation, and if data collecting is haphazard, there will be problems in the later
research analysis.
To address sufficiently the research design a variety of data collection
methods and instruments can be use. These methods and instruments are not specific
to any one design but provide data that when used in combinations will address the
research questions.
Examples of each of these instruments, for the purpose of data gathering
process, which are commonly used by scholars.
Action Research
Case Study
Classification
Experience And
Intuition
Mathematical
Experiments
Interviews
Map Making
Models And
Simulation
Participant
Physical Traces
Observation
Analysis
Statistical Surveys
Table 3.1: Instruments in Data Gathering Process
(Stoner J.A.F, 1992)
Etc.
3.4.5
Document Study Design
All research is interpretive, guide by a set of beliefs and feelings about the
world and how it should be understood and studied (Denzin & Lincoln, 1994).
Document study is qualitative research that is defined as a process used to expand the
perception of complex documentation in ways that cannot be understood with
numbers. An analysis without numbers bluntly explained. Qualitative research has
many features, each with its own theoretical and epistemological orientation, each
exploring different issues and positing different kinds of concept.
Qualitative researchers recognize that knowledge and understanding are
contextually and historically grounded as well as linguistically constituted including
phrase and verses. Many genres of qualitative research have become linked to issue of
social change as scholars experiment with the boundaries of interpretation and
sometime gather in a scope to be represented by key words.
Qualitative researchers are guided by highly abstract principles which integrate the
belief about;
Ontology
The philosophical study of existence and the nature of
reality.
The branch of philosophy dealing with the origin,
Epistemology
nature and limits of human knowledge. Any specific
theory of the nature of human knowledge.
Methodology
The processes we use to develop our knowledge.
Table 3.2: Principles of qualitative research.
(Denzin & Lincoln, 1994)
As the qualitative researchers are guided by highly abstract principles, the
validity of the findings was arbitrary. Argument in various points of view can be
posted arguing the flaws of the findings and leading it to astray. However, the
following tables were generally accepted to be the common method of validation of
the process. The table will be used for the purpose of validation in this research
design.
Descriptive
The factual accuracy of the account as reported by the
qualitative researcher.
The degree to which the participants’ viewpoints,
Interpretive
thoughts, intentions, and experiences are accurately
understood and reported by the qualitative researcher.
The degree to which a theory or theoretical explanation
Theoretical
developed from a research study fits the data and is,
therefore, credible and defensible.
The degree to which a researcher is justified in
concluding that an observed relationship is causal.
Internal
More often, qualitative researchers are concerned with
studying and understanding a process rather than
identifying possible cause and effect relationships.
External validity is important when the researcher
wants to generalize from a set of research findings to
External
other people, settings and times. Typically,
generalizability is not the major purpose of qualitative
research.
Table 3.3: Validity in Qualitative Research.
(Denzin & Lincoln, 1994)
The object of a document study is to learn from a primary source of the
principal task of historical study to recover and interpret the physical remains of the
past. It is a qualitative analysis process that originator to quantitative, statistical work,
a process to make the tacit foundations of an issue explicit, a process to deepen the
understanding of verses and phrase that cannot be understood with numbers, a process
that figure out what to count and what to compute.
There are 18 numbers documents study of UTM construction contract
document between the periods from 1996-200 of the Seventh Malaysian Plan with a
total cost in the excess RM100 million as shown in Appendix 1. The objects of the
document study are to identify the contribution factors of variation orders.
The construction contract documents were informative and massive weighing
not less than 4kg. Having 18 numbers of the document is enormously abundant to
conduct a proper document study without the right procedure to approach the
situation. Even handling the document around during studying process required huge
table area a strenuous action when moving them from places. The following are the
steps design to approach the document study procedure. The processes are similar to
the research methodology phase 1 in figure 3.3.
Procedure of Document Study;
Step 1: Review
It is a strategic grouping of the 18 contract document with
their similarity of content and types of construction. Where
the documents are control and limited digital photograph of
the document were taken to study the content. As the
document were collected and arrange accordingly on a huge
table area the process of analyzing can begin.
Step 2: Analysis
Analyzing procedure is to open up each and every document
to construed and interpreted verses and phrase in order to
identify the contribution orders of variation orders. It is time
consuming process to read the documents in similar manner
to a proof reading process. Further evaluations were made
following the marked pages for the chosen verses and
phrase, the citation were meticulously done word by word to
ensure their relatedness to the contribution factors of
variation orders. After that the following procedure were to
select the related verses an phrase and typed in Microsoft
Word to proceed to next step.
Step 3: Synthesis Where the selected verses and phrase are yet to type in
Microsoft Word the highlighting procedure to identify key
word related to the planning and control function were done
in the contract document. The final procedures are the
reevaluation and selection of the definitive key word to be
used in the questionnaire survey. The questionnaire survey
using the selected key word will validate and verify the
research procedure in the document study accordingly to
validity process as shown in table 3.1.
Table 3.4: Procedure of Document Study
3.4.6
Questionnaire Survey Design
Questionnaires are the simplest method to collect data from a huge number of
respondents. A well-designed questionnaire that is used effectively can gather
information on both the overall performance of the test system as well as information
on specific components of the system. If the questionnaire includes demographic
questions on the participants, they can be used to correlate performance and
satisfaction with the test system among different grouped of users.
It is important to remember that a questionnaire should be viewed as a multistage process beginning with definition of the aspects to be examined and ending with
interpretation of the results. Every step needs to be designed carefully because the
final results are only as good as the weakest link in the questionnaire process.
The steps required to design and manage a questionnaire include;
a. Defining the objective of the survey
b. Determining the sampling group
c. Writing the questionnaire
d. Administering the questionnaire
e. Interpretation of the results
Table 3.5: Steps to design and manage questionnaire
Questionnaire research design proceeds in an orderly and specific manner.
Each item in the flow chart depends upon the successful completion of all the
previous items
A. Define Goals And Objective
B. Design Methodology
C. Determine Feasibility
D. Develop Instrument
E. Select Sample
F. Conduct Pilot Test
G. Revise Instruments
H. Conduct Research
I. Analyze Data
J. Prepare Report
Table 3.6: Questionnaire research design
This discussion will concentrate on how to formulate the questionnaire design
for the research based on the above mention general guide lines.
The questionnaire survey design were intended to be as simple as possible but
to be massive in information gathering in two pages single piece of paper. This will
camouflage the complicated nature of the questionnaire as it is done in a single piece
of paper. There is no fill in the blanks method of questions, but all are the rating scale
technique where mathematical formulation leads to specific conclusion comparing to
the opinion study of fill in the blank methods. All questions are directed to answer the
objectives.
The questionnaire survey was divided in 5 sections.
a. General statement.
b. Respondent general information.
c. Objective 1: Contribution factors of variation orders.
d. Objective 2: Effects of variation orders.
e. Objective 3: Strategies to minimize the adverse effects of variation orders.
Table 3.7: Questionnaire survey
The responses to the questionnaire is based on Likert’s scale of five ordinal
measures which is from one (1) to five (5) according to the level of effects of
variation orders attributed to the question.
Ordinal scale of 1 to 5
1
2
3
4
5
Increasing degree of effects of variation orders
Figure 3.7: Five ordinal measures of agreement by Likert Scale
5= Highly effected
4= High effected
3= Medium effected
2= Low effected
1= Least effected
Responses to the questionnaire were then analyzed. The analysis included
ranking the factors in terms of degree of effecting. The main approach used to analyze
the data is by using the Relative Index (RI) technique (Azhan, 2004). In the
computation of the Relative Index the following formula was used;
RI = ( 5n5 + 4n4 + 3n3 + 2n2 + n )
5 (n5 + n4 + n3 + n2 + n )
Where;
RI
= relative Index
n5, n4, n3 … = number of responding indices.
The computation of the RI using this formula will yield the value of RI
ranging from 0.2 to 1.0. The values 0.2 represent the lowest strength and the value 1.0
representing the maximum strength.
3.4.7
Structured Interview Research Design
Interviewing is a common significant method to obtain comprehensive
information from a single respondent or groups of respondent. It is very valuable to
achieve expert opinions on the subject or talk to someone knowledgeable about a
topic.
There are several different types of interviews based on the technology
available for interaction as follows (Arsham H, 2002);
Face to face, interviews are to sit down and talk with
someone. They are beneficial because the adaptation of
Face To Face
questions to the answer of the person being interview.
Recording equipment may be required for the interview and
it is highly recommended to bring two recording devices in
case one fails.
Phone interview can be used when to interview someone
who is geographically far away, who is too busy to meet and
Phone
to talk with, or who does not want to use internet technology.
A special recording device may be required to be use with
most phone systems.
Email interviews are less personal than face-to-face or phone
interviews, but highly convenient for most individuals. Not
much information can be obtained from someone in an email
Email
interview because it is not feasible to ask follow up questions
or play off the interviewee’s responses. However, email
interviews are useful because they are already in a digital
format.
It is also possible to interview someone via an instant
messaging service such as MSN Messenger, ICQ or AOL
Instant Messenger. These interviews allow a person to talk to
Chat/Messaging
people at great distances and give the benefit of adapting the
questioning based on the responses receive. Where
researcher and/or respondent are not fluent at typing,
however the information obtain may not get as lengthy
responses from this option.
Table 3.8: Types of interview
Arsham H (2002) also clarify the Do’s and Don’t during interview session;
DO
-be careful of the types of question ask.
DON’T
-pester or push the person in a
interview. If the person does not want
to talk about an issue, respect the
desire.
-start the interview with some small talk
-stick to the questions rigidly. If an
to give both the researcher and the
interesting subject comes up that
person to be interview a chance to get
relates to the research, ask additional
comfortable.
questions about it.
-bring redundant recording equipment in
-allow the person that being interview
case something happens to one of the
to continually get off topic. If the
recording devices
conversation drifts, ask follow up
questions to redirect the conversation
to the subject at hand.
-pay attention to what is being said
during the interview and follow up
responses that sound interesting.
-come to the interview prepared. Learn
as much as possible about the person
that are going to interview takes place
so that the questions can be tailored to
them.
Table 3.9: DO and DON’T during interview
According to the general guideline provided and the previously discussed
questionnaire survey design, the structured interview design was basically similar in
format.
The structured interview design was divided in 5 sections; all of the
questions were open ended with some question having proposed multiple choice
answers;
a. General statement.
b. Respondent general information.
c. Objective 1: Contribution factors of variation orders.
d. Objective 2: Effects of variation orders.
e. Objective 3: Strategies to minimize the adverse effects of variation orders.
Table 3.10: Structured interview design
3.4.8
Summary
Research design is a long process that demands careful attention. The research
design initially started from the first chapter in bits and pieces explain in the design
that goes right though this chapter in describing means and ways in the creation of the
whole research. The entire research designs were comprehensively describes in the
research design procedure. Every research design topic started with a short literature
review that continues with a precise step by step design interconnected directly to this
research. Document study, questionnaire design, and structured interview were
elaborated in immense aspect. By this clarification, it is easier to understand the
proceeding chapter.
CHAPTER IV
RESEARCH ANALYSIS AND FINDINGS
4.2
Introduction
This chapter analyses the data collected from the document study,
questionnaires and structured interviews. The methods used are Frequency Analysis
and Relative Index Analysis. The collected data from the questionnaires were
tabulated and analyzed according to their ranking on relative index. Bar charts and pie
charts created from their rating scale shown to represent their ranking. Interviews
from respondents are presented, together with relationship with document study and
questionnaires. The objective of this chapter is to identify the highest ranked factors
for discussion and to find correlations with findings from the document study,
structured interviews and proposed
4.2
Respondent and primary source of information
The targeted respondents were divided into two categories as shown in Figure 4.1;
Primary
Respondent
(1) Client;
Harta Bina UTM
Secondary
Respondent
(2) Consultant and
(3) Contractor
Figure 4.1: Respondents categories
Primary respondents are personnel from Harta Bina Structural Organization. 3
personal identified related to the research mainly from the Contract Unit where the
construction contract document were prepared, all of them participate in the
questionnaire survey and structured interview for the purpose to acquire expert
knowledge and opinion.
Secondary respondents are consultant and contractors in the construction
industry in general and some of them were related to the construction contract case
study in minor parts. The total number of respondent from both categories counted 24
numbers.
The primary source of information were 18 numbers of UTM Construction
Contract Document between the periods from 1996 to 2000 of the Seventh Malaysian
Plan with a total cost in the excess RM100 million as shown in Table 4.1;
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Project’s Name
Bangunan Tambahan Fakulti Kejuruteraan
Kimia dan Sumber Asli
Bangunan Tambahan Fakulti Sains Komputer
dan Sistem Maklumat
Bangunan Tambahan Fakulti Kejuruteraan
Awam
Bangunan Tambahan Fakulti Kejuruteraan
Mekanikal
Bangunan Tambahn Fakulti Kejuruteraan
Elektrik
Institut Ibnu Sina dan Tanah Runtuh Ibnu
Sina
Bangunan Palapes
Bangunan Makmal Kaji Terbang Fakulti
Kejuruteraan Mekanikal
Sistem Bekalan Air
G.I.S.
Intra Elektrik
Infra Telefon
Bangunan Pusat Pengajian Siswazah (Baki
Kerja)
Pusat Komupter (D07)
Bangunan Tambahan Fakulti Alam Bina
Ubahsuai Fakulti Sains (C08)
Ubahsuai Fakulti Ukur (B08)
Bangunan Stor Pusat
Total
Contract
Amount (RM)
Contract
Amount after
Adjustment
(RM)
V.O Value
(RM)
3,405,401.30
3,724,027.95
318,626.65
10,689,000.00
11,205,508.92
516,508.92
10,347,454.47
11,137,770.66
790,316.19
6,980,000.00
8,142,732.61
1,162,732.61
2,398,929.43
2,545,821.93
146,892.50
6,075,586.84
7,095,759.22
1,020,172.38
1,467,923.20
1,477,418.91
9,495.71
30,969,915.64
30,761,562.44
(208,353.20)
4,861,606.60
4,969,636.00
108,029.40
6,600,000.00
6,287,754.70
(312,245.30)
2,400,000.00
2,733,984.80
333,984.80
1,003,123.80
1,169,609.97
166,486.17
5,395,537.30
4,704,485.92
(691,051.38)
2,512,106.96
2,139,620.46
(372,486.50)
5,931,600.00
5,273,863.42
(657,736.58)
1,528,513.50
1,981,318.73
452,805.23
1,787,756.10
1,653,423.83
(134,332.27)
1,297,305.45
1,331,193.10
33,887.65
105,651,760.59
108,335,493.57
2,683,732.98
Table 4.1: UTM construction projects during Seventh Malaysian Plan
4.3
Limitation of study
The research is limited to the Document Study of the 18 numbers of UTM
construction contract document mentioned, the questionnaire and the structural
interview conducted.
4.5
Data Analysis
The collected data from the questionnaires were analyzed in two methods.
These are Frequency Analysis and Relative Index Analysis. Frequency analysis is
used as preliminary analysis. This method will show the frequency and the
percentage. The frequencies are represented in the form of tables, pie charts and bar
chart. In order to generate the result, the researcher used Microsoft Excel.
4.5.1
1st Method: Frequency Analysis
Frequency analysis is a method to decompose a function, wave, or signal into
its frequency components so that it is possible to have a frequency spectrum
(Aminudin, 2006). The frequency analysis is used to represent results of data analysis
of the number of frequency of response that the respondents give to different variables
in the questionnaire survey and structural interview. The result has been tabulated in
the form of frequency number and percentage according to total respondents. For
graphic result presentation, pie chart and bar chart have been used as the summary.
4.5.2
2nd Method: Relative Index Analysis
In Relative Index Analysis, the results are further summarized to attain the
level of importance in evaluating the effects of variation orders. The respondents were
requested to judge and weigh up the effects of variation orders accordingly to their
experience and generally to Malaysian construction industry scenario. The evaluations
were based on five-point scale starting with 1 for least effected to 5 for very highly
effected.
The data collected on the degree of effected of variation orders were tabulated
based on the number of responses for each category of degree of effected of variation
order. Based on the frequency analysis the relative index was then calculated to
determine the ranking of each effects of variation orders being considered.
The relative index analysis for variable is calculated by using the formula below
(Azhan, 2004);
RI = ( 5n5 + 4n4 + 3n3 + 2n2 + n )
5 (n5 + n4 + n3 + n2 + n )
Where;
RI
= relative Index
n5, n4, n3 … = number of responding indices.
The computation of the Relative Index using this formula will yield the value
of RI ranging from 0.2 to 1.0. The values 0.2 represent the lowest strength and the
value 1.0 representing the maximum strength.
4.4.3
3rd Method: Document Study Analysis
The general definition of a document study is to learn from a primary source
of the principal task of historical study to recover and interpret the physical remains of
the past. The objects of the document study analysis here are to identify the
contributing factors of variation orders within its content.
Procedure of Document Study
Step 1;
[Review]
- Strategic grouping
- Similarity of content
- Digital photograph study (due to control and limited
document)
Step 2;
[Analysis]
- Construed and deduced words to identify the
contribution factors of variation orders.
- Evaluate word by word related to the contributing factors
of variation orders.
- Select the related factors.
Step 3;
[Synthesis]
- Elimination of duplication, similarity and same meaning.
- Summary and counting factors
- Reevaluation and selection for key word to be used in
the questionnaire.
Figure 4.1: Procedure of Document Study
4.6
Research analysis of the construction contract document study
The document study analysis were applied to 18 numbers documents study of
UTM construction contract document between the period from 1996-2000 of the
Seventh Malaysian Plan with a total cost in the excess RM100 million.
The construction contract documents were immense with data, information,
contract, bill and drawings. The documents studied were the original document,
signed and stamped and were a legal original copy document at law. The documents
were strict, limited and controlled document that need to be handle with care. Apart
from that, certain data were private and confidential and not to become public
information. The above document study procedure must be followed to manage the
substantial information and size of the 18 numbers of the contract document properly.
4.6
Research Findings of the Construction Contract Document Study
Below is the document study findings of the general important summary for the 18
construction contract document and the details were shown in Table 4.1.
UTM Construction Contract Document during 7th Malaysian Plan
Contract document (nos)
Building works (nos)
Renovation works (nos)
Infrastructure works (nos)
Contract amount (RM million)
V.O. Value (RM million)
Total Contract Amount (RM million)
Total Contract Amount-after adjustment (RM million)
Total Variation Amount (RM million)
Contract duration (week)
18
12
2
4
1.00 – 31.00
33k - 1.20
105.65
108.34
2.69
10-95
Table 4.2: Document study general information tabulation
The construction contract document shown to be well rounded consisting
mainly new buildings work at 67% and the other contract document are reference to
be compared to the buildings work contract document.
Infrastructure
works (nos),
4, 22%
Renovation
works (nos),
2, 11%
Building
works (nos),
12, 67%
Figure 4.2: Types of contract document
Below is the document study of the variation orders value according to types
of contract identified within 18 contract documents.
RM (million)
Contract Amount
Contract amount
after adjustment
V.O. Value
87.47
89.55
2.08
Renovation works
3.32
3.63
0.31
Infrastructure works
14.86
15.16
0.3
105.65
108.34
2.69
Types of contract
Building works
Total
Table 4.3: Variation order value according to types of contract
2.5
2.08
2
1.5
RM (million)
1
0.5
0.31
0.3
Renovation works
Infrastructure works
0
Building works
Types of Work
Figure 4.3: Variation order value
according to types of contract
Below is the document study of the variation orders value according to types
of contract for every UTM’s projects identified within 18 contract documents.
Infrastructure
works, 0.08,
20%
Building
works , 0.17,
41%
Renovation
works, 0.16,
39%
Figure 4.4: Variation order value according to types of contract for
every project
The variation order value shown to be well rounded consisting mainly new
buildings work at 41% (RM0.17 million) for every UTM construction projects and the
other variation order values are reference to be compared to the variation order value
of buildings work.
Below is the document study of the causes of variation order identified within 18
contract document shown in Table 4.1.
1
2
3
4
5
6
7
8
9
10
Causes of Variation Order
Client - forced
Client - choice
Designer
Contractor
Inadequate consideration of design
Defects in documentation
Incorrect assessment of brief
Defects in design
Unnecessary
Management
Unforeseen
Table 4.4: Causes of variation order used in questionnaire
The document study findings show that ten (10) causes of variation orders in
answering the first objective. Due to the causes, it is further synthesis to ten (10)
selected causes of variation orders that are to be used in questionnaire for the
verification and validation process to evaluate their degree of important.
4.7
Research Analysis of the Respondent for Questionnaire and Interview
Questionnaires were start on to primary respondent (client; Harta Bina UTM)
and secondary respondent (consultants and contractors). Personals identified in
contract unit, where the construction contract documents were prepared and all of
participates in the questionnaire survey meaning 100% feedback obtained from
primary respondents.
A set questionnaire was sent at random to more than 92 firms and construction
organization around Johore and Kuala Lumpur of various sizes. About 21 or 23% (all
fully answered) of the questionnaires sent were returned. The analysis was based on
the 21 set of answered questionnaires sent were returned. Though the sample size is
too small to be considered representative, times constraint left the researcher with no
option but to use it. Most of the secondary respondents were quantity surveyors
followed by engineers where others are supplementary.
The respondents in both categories are well knowledge. The total numbers of
all respondents are 24. The respondents are needed to tick at the appropriate rating
scale within the specific contributing factors and effects of variation orders.
4.8
Research Findings of the Respondent for Questionnaire Survey and
Interview
Research findings of the respondents for questionnaire survey will be spilt in
two main categories; (1) Respondent Organization, and (2) Respondent Profession.
1. By Organization
Client
13%
Organization Frequency Percentage
Consultant
Contractor
15
6
62
25
Client
3
13
24
100
Contractor
25%
Figure 4.5: Respondent organization for questionnaire survey
Consultant
62%
The representatives distribution of the respondents by organization are quite
realistic showing the largest amount are the consultant 62%, followed by contractor
25% and the client 13%. The consultant of a standard building construction project
would be architect, the engineer and the quantity surveyor. By that the allotment of
the respondents by organization is assume to be delegate and applicable for the
analysis.
2. By Profession
Profession
Project
Manager
Engineer
Quantity
Surveyor
Project
Manager
8%
Frequency Percentage
2
6
8
25
16
67
24
100
Engineer
25%
Quantity
Surveyor
67%
Figure 4.6: Respondent profession for questionnaire survey
Changeable profession represent by the questionnaire survey where the
uppermost were quantity surveyor 67% the large numbers were inevitable because the
profession who produce the contract document were the quantity surveyor. The
quantity surveyors were the most requires and accessible profession as they obviously
realize the questionnaire survey and talented to answer without much enquiry to the
researcher.
The following largest respondents by profession were the engineer, 25%,
because of their understandable perceptive of variation order comparatively to
quantity surveyor. Their lack of understanding to the content of the construction
contract document obstructs their willingness to contribute in the questionnaire
survey.
4.16
Research Analysis of Contribution Factors of Variation Orders for
Questionnaire Survey and Interview
To identify contributing factors of variation orders in contract documents
where research procedure was done during the document study process discovered ten
(10) factors to be used in the questionnaire as explain before and shown in Table 4.4.
4.17
Research Findings of Contribution Factors of Variation Orders for
Questionnaire Survey and Interview
The amendment to the design brief will frequently result in a change to the
work, and many practitioners believe this latter point is why a variation clause exists.
The table and figure below summarize answers to the question: What is the most
significant reason for a variation clause?
Percentage
Contractual safeguard to contractors
Client changing mind – choice
Client changing mind - forced
Defects in design
Inadequate consideration – competence
Designer’s choice
Design team’s inability to define problem
Design team’s inability to decide solution
Unforeseen event
Constraint of pre contract time
4
21
8
8
17
13
4
8
4
13
100
Table 4.5: Reasons for providing a variation clause in a building
contract
Reasons for providing a variation clause
Constraint of pre
contract time
13%
Contractual safeguard
to contractors
4%
Client changing
mind – choice
21%
Unforeseen event
4%
Design team’s inability
to decide solution
8%
Design team’s inability
to define problem
4%
Client changing mind forced
8%
Designer’s choice
13%
Defects in design
8%
Inadequate
consideration –
competence
17%
Figure 4.7: Reasons for providing a variation clause in a building
contract
Interestingly, the reasons given do not seem to stand up in practice and Table
4.6 indicates the actual reasons why variations were occurring on a range of projects
which used contract based upon complete design.
Contribution Factors
Document Review
Frequency
Percentage
Yes No
Total
Questionnaire
Frequency
Percentage
Client - forced
7
11
18
6
1
4
Client - choice
16
2
18
13
2
8
Designer
17
1
18
14
5
21
Contractor
10
8
18
8
1
4
Inadequate consideration
of design
18
0
18
15
6
25
17
1
18
14
4
17
6
12
18
5
1
4
Defects in design
16
2
18
13
2
8
Unnecessary
6
12
18
5
1
4
Unforeseen
8
10
18
7
1
4
123
57
100
24
100
Defects in
documentation
Incorrect assessment of
brief
Table 4.6: Contributing factors of variation orders
The table above shows that the highest score for contribution factors of
variation order either by document review or questionnaire is in adequate
consideration of design, closely followed by designer, and then followed by defects in
documentation.
Both these tables and figure show that while the design team believes the
client predominantly creates variations, the facts suggest otherwise. The design team
must therefore examine their activities critically and ensure that they do not mislead
or misinform the client in an attempt to cover their own inadequacies, indirectly
created by the client. The client may give insufficient pre-contract time for complete
design and in these circumstances the designer should either inform the client that
complete design is not practicable or, alternatively, suggest commencement of the
project with an incomplete design solution and using the appropriate contractual
arrangement.
Response by (percentage)
Reason
Quantity
Surveyors
Others
All
Delay caused by design team
19
12.5
17
Variation order
25
37.5
29
Nomination; subcontractor/supplier
6
0
4
Errors in documentation
0
12.5
4
Unforeseen events
25
25
25
Commercial/tendering process
19
12.5
17
Other
6
0
4
100
100
100
Table 4.7: Reasons for claims by contractors
Commercial /
tendering process
17%
Unforeseen events
25%
Errors in
documentation
4%
Other Nomination
4%
4%
Figure 4.8: Reasons for claims by contractors
Delay caused by
design team
17%
Variation
29%
Response by (percentage)
Reason
Quantity
Surveyors
Others
31.25
25
29
Claim
12.5
25
17
Delay
18.75
25
21
12.5
12.5
12
18.75
12.5
17
6.25
0
4
100
100
100
Variation
Nomination
Personalitites
Other
Other
4%
All
Variation
29%
Personalitites
17%
Nomination
12%
Delay
21%
Claim
17%
Figure 4.9: Greatest problem in contract management
Max Abrahamson states in his book Engineering Law that most of the
employment given to the legal profession by engineering work is to do with disputes
about variations. Presumably this is an opinion gained from personal experience but
there is some indirect support for the view in Table 4.7, Figure 4.8 and 4.9.
Table 4.7 and Figure 4.8 give the responses from a cross-section of the
industry and clients, with the responses from quantity surveyor and others given as
separate groupings. This table shows that variations are clearly thought to be a major
cause of claims by contractors. The table also shows the actual reasons given and that
the respondents distinguished between variations, errors in documentation and
unforeseen events. Taking the usual definition incorporated in the various standard
forms of contract, however, the majority of the responses appearing in the table as
errors in documentation and many of the items appearing as unforeseen events would
in fact be considered as variations. If one takes these into consideration, it is evident
that the other causes of claim are relatively small in number. It is therefore not
surprising that Figure 4.9 shows the greatest problem in contract management to be
variations.
If the majority of claims by contractors and the greatest problem in contract
management are both caused by variations, then either variations must be reduced or
eliminated, or a better legal and practical framework must be created so that they can
be dealt with more effectively and presumably, equitably.
4.18
Research Analysis of Effects of Variation Orders for Questionnaire
Survey and Interview
To identify effects of variation orders in contract documents where research
procedure was done during the document study process discovered sixteen (16)
effects to be used in the questionnaire as shown in table below.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Effects description
Progress is affected but without any delay
Increase in project cost.
Hiring new professionals
Increase in overhead expenses
Delay in payment.
Quality degradation.
Productivity degradation
Procurement delay.
Rework and demolition.
Logistics delays.
Damage to firm's reputation
Poor safety conditions.
Poor professional relations
Additional payments for contractor.
Disputes among professionals.
Completion schedule delay.
Table 4.8: Effects of variation orders
4.19
Research Findings of Effects of Variation Orders for Questionnaire
Survey and Interview
The table below shows the findings of effects of variation orders accordingly to their
degree of important.
Frequency Analysis (FA)
1
2
3
4
5
Total
Least
Low
Medium
High
Extreme
FA
effect
effect
Effect
Effect
effect
delay
10
6
6
1
1
24
0.408333
Increase in project cost.
0
0
0
4
20
24
0.966667
Hiring new professionals
5
2
9
8
0
24
0.566667
Increase in overhead expenses
3
3
7
6
5
24
0.658333
Delay in payment.
0
0
0
11
13
24
0.908333
Quality degradation.
10
7
4
1
2
24
0.416667
Productivity degradation
5
10
9
0
0
24
0.433333
Procurement delay.
0
0
3
12
9
24
0.850000
Rework and demolition.
0
5
0
14
5
24
0.758333
Logistics delays.
0
0
5
12
7
24
0.816667
Damage to firm's reputation
4
3
5
7
5
24
0.650000
Poor safety conditions.
11
8
4
0
1
24
0.366667
Poor professional relations
0
0
23
1
0
24
0.608333
Additional payments for contractor.
1
1
1
20
1
24
0.758333
Disputes among professionals.
3
1
3
17
0
24
0.683333
Completion schedule delay.
0
5
3
4
12
24
0.791667
Effects description
RI
Progress is affected but without any
Table 4.9: Effects of variation orders
0.7917
Completion schedule delay.
0.6833
Disputes among professionals.
0.7583
Additional payments for contractor.
0.6083
Poor professional relations
Effect description
Poor safety conditions.
0.3667
0.65
Damage to firm's reputation
Logistics delays.
0.8167
0.7583
Rework and demolition.
0.85
Procurement delay.
0.4333
Productivity degradation
0.4167
Quality degradation.
0.9083
Delay in payment.
0.6583
Increase in overhead expenses
Hiring new professionals
0.5667
0.9667
Increase in project cost.
Progress is affected but without any delay
0.4083
0
0.2
0.4
0.6
0.8
1
Relative Index (RI)
Figure 4.10: Effects of variation orders
Referring to bar chart Figure 4.10 the highest degree of important rated is
increase in project cost (RI=0.9667), closely followed by delay in payment
(RI=0.9083). The 3rd ranked by procurement delay with RI: 0.8500.
Effect Description
Scoring
Increase in project cost
0.9667
1st rank
Delay in payment
0.9083
2nd rank
Procurement delay
0.8500
3rd rank
Logistics delay
0.8167
4th rank
Completion schedule delay
0.7917
5th rank
Table 4.10: Best five (5) overall score in effects of variation orders
1.2
Table above shows the top five (5) score in determining the most frequently
occurred of effects of variation orders; those are;
1st rank; Increase in project cost is the most common effect of variations,
during the construction phase. Any major additions or alterations in the design may
eventually increase the project cost. In every construction project, a contingency sum
is usually allocated to cater for possible variations in the project, while keeping the
overall project cost intact.
According to the survey findings, the most frequent effect of variation orders
was the increase in project cost. It was not unexpected for the project cost to increase
due to frequent variations in the project. This was because the variation orders may
affect the project's total direct and indirect costs. Therefore, any major addition or
alteration in the design may eventually increase the project cost. In every construction
project, a contingency sum is usually allocated to cater for possible variations in the
project, while keeping the overall project cost intact. However, frequent major
variations may lead to cost overrun in the contingency sum.
2nd rank; Delay in payment occasionally may cause severe problems that end
up in delays in payment to the subcontractors; this is because main contractors may
not be able to pay the subcontractors unless they get paid by the owner first.
3rd rank; Procurement delays can be frequent due to variations that require new
materials and specialized equipment. Procurement delays were common effects of
variations related to new resources for construction projects.
4th rank; Logistics delays were significant effects of variations in construction
projects. Logistics delays were experienced in construction projects where variations
in the construction phase required new materials, tools and equipments.
5th rank; Completion schedule delay is a frequent result of variations in
construction projects. The magnitude of the schedule being delayed due to variations
was reported by many construction industry practitioners.
The fifth most frequent effect of variation orders was the completion schedule
delay. Major variations may affect the project adversely, leading to delays in the
project completion. Furthermore, frequent minor variations can also affect the project
adversely depending on the timing of the occurrence of the variations. This is because
the impact of a variation in design during the construction phase can be more severe
than in the design phase.
4.20
Research Analysis of Proposed Strategies to Minimize the Adverse Effects
of Variation Orders for Questionnaire Survey and Interview
The respondents are required to fill in a blank of an open question with
appropriate answer and suitable opinion of strategy in order to decrease the adverse
effects of variation orders based on their experiences and awareness.
In face-to-face interviews the respondents has been asked about their views
with regard to their expectation for the understanding of contract documents and the
main point are the strategies to reduce the adverse effect of variation orders.
When the interviews are to sit down and talk with someone about their
knowledge and expert opinion, it is highly favourable because the modification of
questions to the answer of the person being interview with reference to their
understanding of the subject matter. Due to the private and confidential nature of the
interview, recording equipment is not used but all obligatory notes were taken on a
prepared structured interview form.
4.21
Research Findings of Proposed Strategies to Minimize the Adverse
Effects of Variation Orders for Questionnaire Survey and Interview
Proposed strategies are suggested based on the findings of the research;
·
The involvement of the professionals in the design phase would assist in
clarifying the project objectives and in identifying the noncompliance with
their requirements at the early stage. Eventually, this may help in eliminating
the occurrence of variations, arising from errors and design discrepancies,
during the construction stage where the impact of the variations can be severe.
·
Continuous coordination and direct communication will not only eliminate
design discrepancies and errors as well as omissions in design but also provide
an opportunity for professionals to review the contract documents thoroughly
that would help in eliminating the variations arising because of conflicts in
contract documents.
·
The controls for the frequent change in design by consultant, and inadequate
working drawing details would be through systematic detailing of design. This
will provide an opportunity for the consultant to review and finalize the design
during the design phase. This would assist in reducing the variation
occurrences during the construction phase where the impact of variations can
be severe.
·
Clear and thorough project brief would assist in eliminating variations arising
because of the unclear scope of work for the contractor. This was because a
clear and thorough project brief can eliminate variations that may arise due to
unclear project objectives. Eventually, this may assist in developing a clear
scope of work for the professionals.
·
Fair allocation of risks can help in resolving disputes through negotiation
rather than litigation since construction changes were a major source of
construction dispute.
In summary, these five most popular suggested strategies by both categories of
respondents (primary respondents and secondary respondents) in order to decrease the
adverse effects of variation order are shown in figure below.
Fair
allocation
of risks
Clear and thorough
project brief
Systematic detailing
of design
Continuous coordination and direct
communication
Involvement of the professionals in the design phase
Figure 4.11: Strategies to minimize adverse impacts of variation order
4.22
Summary
Research analysis and findings are established with source of data and
respondent to create the limitation of study. The general method of the analysis of
data such as frequency analysis, relative index analysis, and the usage of Microsoft
Excel were described. Document study procedures are explained, continuing with
structured interview including the last of research analysis and findings are the
proposed strategies of reducing adverse effects of variation orders.
Sequences of explanation are exclusively described within each research
analysis and research findings sections. The clarity of elaboration is further enhanced
by the diagrammatic illustration of bar chart, pie chart and tables. The findings data in
this chapter are then brought forward to the next chapter of discussion and conclusion.
CHAPTER V
CONCLUSION
5.1
Introduction
The discussion and conclusion will merge and summarize all central part
subjects in various segments of this master project write up, where the ideas initially
generate in the background problems that induce the conjectural structure formation
which in turn generate the hypothesis and research question. Research methodology
was successively arranged in three (3) stages to counter the objective presented in the
research analysis and findings. Discussion and conclusion are to recapitulate all the
above topics earlier discussed.
5.5
1st Objective; To identify contribution factors of variation orders
The first phase of research methodology is as shown in Chapter III; Figure 3.3,
applied to achieve the 1st objective is document study where the findings shows that
18 contract document studied has identified ten (10) factors that contribute to
variation orders as shown in table below. These all factors are then used in the
questionnaire survey. The surveys verify all the selected factors when the respondents
evaluate their degree of important and the findings show that all the factors were
considered to be important by the respondents, revealed as summary of contribution
factors of variation orders where the highest score is inadequate consideration of
design.
Contribution Factors of Variation Order
1
Client - forced
2
Client - choice
3
Designer
4
Contractor
5
Inadequate consideration of design
6
Defects in documentation
7
Incorrect assessment of brief
8
Defects in design
9
Unnecessary
10
Unforeseen
Management
Table 5.1: Contribution factors of variation order
The factors determined are also supported by the document study and the
interviews with experienced personnel from the client, consultant and contractor.
Their views have supported the responses that inadequate consideration of design is a
significant factor.
The design team believes the client predominantly creates variations, the facts
suggest otherwise as proved in chapter IV. The design team must therefore examine
their activities in detail and ensure that they do not mislead or misinform the client in
an attempt to cover their own inadequacies, indirectly created by the client. The client
may give insufficient pre-contract time to complete design and in these circumstances
the designer should either inform the client that complete design is not practicable or,
alternatively, suggest commencement of the project with an incomplete design
solution and using the appropriate contractual arrangement.
Chapter IV (Table 4.7 and Figure 4.8) gives the responses from a cross-section
of the industry and clients, with the responses from quantity surveyor and others given
as separate groupings. This table shows that variations are clearly thought to be a
major cause of claims by contractors. The table also shows the actual reasons given
and that the respondents distinguished between variations, errors in documentation
and unforeseen events. Taking the usual definition incorporated in the various
standard forms of contract, however, the majority of the responses appearing in the
table as errors in documentation and many of the items appearing as unforeseen
events would in fact be considered as variations. If one takes these into consideration,
it is evident that the other causes of claim are relatively small in number. It is
therefore not surprising that those findings in preceding chapter show the greatest
problem in contract management to be variation orders.
If the majority of claims by contractors and the greatest problem in contract
management are both caused by variations, then either variations must be reduced or
eliminated, or a better legal and practical framework must be created so that they can
be dealt with more effectively and presumably, equitably.
5.6
2nd Objective; To study the effects of variation orders in construction
projects
With reference to the second phase of the research methodology (Chapter III;
Figure 3.4) to accomplish the above objective, the following discussion and
conclusion were mainly based on questionnaire survey and secondly on structured
interviews continuing the essential facts found in the Document Study process.
To identify the effects of variation orders in construction projects where
research procedure was done during the document study process, discovered sixteen
(16) effects to be used in the questionnaire as shown in table below.
Effects description
1
Progress is affected but without any delay
2
Increase in project cost.
3
Hiring new professionals
4
Increase in overhead expenses
5
Delay in payment.
6
Quality degradation.
7
Productivity degradation
8
Procurement delay.
9
Rework and demolition.
10
Logistics delays.
11
Damage to firm's reputation
12
Poor safety conditions.
13
Poor professional relations
14
Additional payments for contractor.
15
Disputes among professionals.
16
Completion schedule delay.
Table 5.2: Effects of variation orders
Referring to bar chart in Chapter IV; Figure 4.10 the highest degree of
important rated is increase in project cost with Relative Index (RI) 0.9667, closely
followed by delay in payment (RI=0.9083).
Table below shows the top five (5) overall score in effects of variation orders
voted by respondents.
Effect Description
Scoring
Increase in project cost
0.9667
1st rank
Delay in payment
0.9083
2nd rank
Procurement delay
0.8500
3rd rank
Logistics delay
0.8167
4th rank
Completion schedule delay
0.7917
5th rank
Table 5.3: Best five (5) overall score in effects of variation orders
Increase in project cost is the most frequent effect of variations, during the
construction phase. Any major additions or alterations in the design may eventually
increase the project cost. In every construction project, a contingency sum is usually
allocated to cater for possible variations in the project, while keeping the overall
project cost integral.
According to the survey findings, the most recurrent effect of variation orders
was the increase in project cost. It was not surprising for the project cost to increase
due to numerous variations in the project. This was because the variation orders may
affect the project's total direct and indirect costs. For that reason, any major addition
or alteration in the design may ultimately increase the project cost. In every
construction project, a contingency sum is usually allocated to accommodate for
possible variations in the project, while keeping the overall project cost intact. On the
other hand, frequent major variations may lead to cost overrun in the contingency
sum.
5.7
3rd Objective; To propose strategies to minimize the adverse effects of
variation orders
Finally, the third phase of research methodology is the ultimate strategy
(Chapter III; Figure 3.5) to cater the stated objective, the strategy is the combination
of all method demonstrated. The research analysis process done has make known ten
(10) contribution factors of variation orders and sixteen (16) effects of variation
orders in construction projects. However, the discussion and conclusion were
profoundly based on the questionnaire survey and structured interview, supported by
document study to be able to propose strategy to reduce adverse effects of variation
orders.
Variation orders can be minimize if all the parties involve in the projects are
aware that preliminary work before tendering is carried out, for example detailed site
and soil investigations. It cannot be more stressing that more time is needed to carry
out detailed project scooping and a longer lead time is required.
As a final point, the findings of the research proposed five (5) approaches to
deduce the undesirable effects of variation orders in construction projects are
publicized as below;
(1)
The participation of the professionals in the design phase would assist in
clarifying the project objectives and in identifying the noncompliance with their
requirements at the early stage. Eventually, this may aid in eliminating the occurrence
of variations, arising from errors and design discrepancies, during the construction
stage where the impact of the variations can be severe.
(2)
Constant coordination and direct communication will not only abolish design
discrepancies and errors as well as omissions in design but also provide an
opportunity for professionals to review the contract documents thoroughly that would
help in eliminating the variations arising because of conflicts in contract documents.
(3)
The controls for the recurrent change in design by consultant, and inadequate
working drawing details would be through systematic detailing of design. This will
provide an opportunity for the consultant to review and finalize the design during the
design phase. This would assist in reducing the variation occurrences during the
construction phase where the impact of variations can be severe.
(4)
Clear and thorough project brief would assist in eliminating variations arising
because of unclear scope of work for the contractor. This was because a clear and
thorough project brief can eliminate variations that may arise due to unclear project
brief. Eventually, this may assist in developing a clear scope of work for the
consultants.
(5)
Fair allocation of risks can help in resolving disputes through negotiation
rather than litigation since construction changes were a major source of construction
dispute.
All these described points simplify view in figure below. On the whole, this study has
achieved all its objectives.
Fair
allocation
of risks
Clear and
thorough project
brief
Systematic
detailing
of design
Continuous
coordination and
direct
communication
Involvement of
the professionals
in the design
phase
Figure 5.1: Strategies to minimize adverse
impacts of variation order
6.0
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NEDO (1991) “ Partnering : Contract Without Conflict”. National Economical
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No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
1
YONG DAN MOHAMAD
FAIZ SDN BHD
03-22828838
03-22831836
ymfkl@tm.net.my
Kuala Lumpur
2
JURUKUR BAHAN
BERSATU
03-79812566
03-79818567
jubb@tm.net.my
Kuala Lumpur
3
JUB BERSATU SDN
BHD
03-79812566
03-79818567
jubb@tm.net.my
Kuala Lumpur
4
PCM KOS PERUNDING
03-6329969
03-6369969
pcmkos@yahoo.com
Kuala Lumpur
5
PERUNDING AZATECH
SDN BHD
03-91713550
03-91713544
azatech@pc.jaring.my
Kuala Lumpur
6
FPS KONSULTANT
03-91318787
03-91318759
jubfqs@jubtps.po.my
Kuala Lumpur
7
CS PERUNDING
JURUKUR BAHAN
03-91316918
03-91306918
cskee@tm.net.my
Kuala Lumpur
8
UKUR BAHAN KELANA
03-91715033
03-91715033
ubk34@hotmail.com
Kuala Lumpur
9
TZA ASSOCIATEA SDN.
BHD.
03-92836253
02-92833255
tza_qs@tm.net.my
Kuala Lumpur
10
JUB SEGAR
03-92811210
03-92823207
jubsegar@tm.net.my
Kuala Lumpur
11
EFCT KONSULT
03-9811210
03-9823207
-
Kuala Lumpur
12
MSA ASSOCIATES
03-42707020
03-42707021
msmn60@hotmail.co,
Kuala Lumpur
13
THL CONSULTANTS
03-40238289
03-40211289
th199@tm.net.my
Kuala Lumpur
14
RK PARTNERSHIP
03-41433763
03-41494239
rkpartnership@pd.jaring.my
Kuala Lumpur
15
RAK ASSOCIATES
03-4142300
03-41421311
rosliak@yahoo.com
Kuala Lumpur
16
MM QUANTITY
SURVEYORS
03-41438963
03-41088963
-
Kuala Lumpur
17
JURUKUR BAHAN
PENDITA
03-41438268
03-41438276
JUBPO1@tm.net.my
Kuala Lumpur
18
ICS INTEGRATED COST
SURVEYORS
03-41427876
03-41487188
-
Kuala Lumpur
19
HAH ASSOCIATES
03-41497110
03-41481678
hahqs@tm.net.my
Kuala Lumpur
20
ABD RAHIM KADIR &
ASSOCIATES
03-41494082
03-41494239
-
Kuala Lumpur
21
PERUNDING SHS
012-3762998
03-40124789
pshs@pd.jaring.my
Kuala Lumpur
22
ZAIM AZIZ CONSULT
03-61886814
03-61886814
-
Kuala Lumpur
23
O & Z ASSOCIATES
03-41052404
03-41071970
onzqs@hotmail.com
Kuala Lumpur
No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
24
MN ASSOCIATES
03-41052404
03-40171970
mdrhk@tm.net.my
Kuala Lumpur
25
JUB CONTRACT
CONSULTANCY S/B
03-41085018
03-41085018
-
Kuala Lumpur
26
HMR & ASSOCIATES
03-40229644
03-40229644
hmr8470@pd.jaring.my
Kuala Lumpur
27
HALIM ASSOCIATES
03-40229644
03-40244794
abhaabra@tm.net.my
Kuala Lumpur
28
EDDIE JASMIN
CONSULTING
03-410963267
03-41071524
wej@pd.faring.my
Kuala Lumpur
29
ARH JURUKUR BAHAN
SDN BHD
03-41068192
03-41068190
arh@tm.net.my
Kuala Lumpur
30
AIA ASSOCIATES
03-41077961
03-41078962
-
Kuala Lumpur
31
KOS KONSORTIUM SDN
BHD
03-4231932
03-4231933
kkqs@tm.net.my
Kuala Lumpur
32
JURUKUR BAHAN
PROJEK
03-40211775
03-40233453
shchai@pc.jaring.my
Kuala Lumpur
33
PERUNDING BE SDN
BHD
03-62802450
03-62801450
perundingpe@yahoo.com
Kuala Lumpur
34
KUMPULAN SEPAKAT
KONSULT
03-62729975
03-63722027
sepakat@maxis.net.my
Kuala Lumpur
35
KH ALLIANCE
QUANTITY
SURVEYORS
019-8187444
03-40228231
-
Kuala Lumpur
36
A.M. DEWAN
ASSOCIATES
03-78743792
03-78743792
-
Kuala Lumpur
37
TS ASSOCIATES
03-90804399
03-9075245
tsimdak@tm.net.my
Kuala Lumpur
38
MAA ASSOCIATES
019-6435166
-
-
Kuala Lumpur
39
A&CO JURU UKUR
BAHAN
03-40454070
03-40454060
acqsxxi@hotmail.com
Kuala Lumpur
40
AMER & ASSOCIATES
03-20951200
03-20955652
amer-jb@consultant.com
Kuala Lumpur
41
C.G. LEE &
ASSOCIATES
03-62015816
03-62015816
-
Kuala Lumpur
42
VM CONSULTANT
03-21612063
03-21617530
vmcon@tm.net.my
Kuala Lumpur
43
PHANG YUEN LOONG
& RAKAN
03-27152723
03-27152713
echpmsb@po.jaring.my
Kuala Lumpur
44
JUBC SDN BHD
03-27102660
03-27102671
-
Kuala Lumpur
45
ASP ASSOCIATES
03-2452033
03-2422716
siewpinghung@hotmail.com
Kuala Lumpur
46
JURUKUR BAHAN H&A
03-41433354
03-41435355
hnaqs@pd.jaring.my
Kuala Lumpur
47
HASHIM & LIM SDN
03-40428664
03-40428689
-
Kuala Lumpur
48
GABUNGAN JURUKUR
BAHAN
03-41075970
03-41073044
-
Kuala Lumpur
No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
49
JURUKUR BAHAN FPS
SDN BHD
03-91318787
03-91318759
jubfps@jubfps.po.my
Kuala Lumpur
50
EL PERUNDING
JURUKUR BAHAN
03-79820362
03-79820316
-
Kuala Lumpur
51
ALPHA-OMEGA
MATRIX
03-62759880
03-62721008
-
Kuala Lumpur
52
DAINNA BAHARUDDIN
CONSULTANCY
03-92214335
03-92230746
dbc_qs@tm.net.my
Kuala Lumpur
53
JUB SEKUTU SDN
03-92845533
03-92832201
-
Kuala Lumpur
54
JUB PADU SDN BHD
03-21612063
03-21622085
jubsb@tm.net.my
Kuala Lumpur
55
C.N.H JURUKUR
BAHAN
03-92237412
03-92237415
alchchia@pd.jaring.my
Kuala Lumpur
56
IHSAN DCWC SDN BHD
03-42806659
03-42806657
idcwc@po.jaring.my
Kuala Lumpur
57
INTRACOST CONSULT
03-7725581
03-77257228
intracost@hotmail.com
Kuala Lumpur
58
Y.S CHAN &
ASSOCIATES
03-62776133
03-62779133
ysca@fishnet.net.my
Kuala Lumpur
59
CPK ASSOCIATES
03-79815864
03-79848081
edicon@pd.jaring.my
Kuala Lumpur
60
PERUNDING KOS CSS
03-62769823
03-62733673
pkcss2001@yahoo.com
Kuala Lumpur
61
BAHARUDDIN ALI &
LOW SDN BHD
03-92853744
03-92855452
balow@balow.po.my
Kuala Lumpur
62
AZMAN & TAY
ASSOCIATES SDN BHD
03-62010117
-
-
Kuala Lumpur
63
UKUR BAHAN
KONSULT
03-77298100
03-77271636
-
Kuala Lumpur
64
JURUKUR BAHAN AAR
03-41088933
03-41083770
qsaar@po.jaring.my
Kuala Lumpur
65
ASA-CM JURUKUR
BAHAN
03-41085823
03-41085834
-
Kuala Lumpur
66
PERUNDING KOS
PUTRA
03-41490971
03-41490976
pkputra@tm.net.my
Kuala Lumpur
67
DESIGN COST
CONSULTANT
03-41079722
03-41079685
-
Kuala Lumpur
68
ZAKARIA-LEE &
PARTNERS SDN BHD
03-9173471
03-91739199
zaklee@tm.net.my
Kuala Lumpur
69
PERUNDING BE
03-62802450
03-62801450
haneeta@tm.net.my
Kuala Lumpur
70
MEGA QS
03-77262985
03-77261572
-
Kuala Lumpur
No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
71
AT ASSOCIATES
03-40414798
03-40414779
-
Kuala Lumpur
72
KPK QUANTITY
SURVEYORS SDN BHD
03-21668000
03-21668228
kpk@popl.jaring.my
Kuala Lumpur
73
PERUNDING UNIKON
03-40416991
03-40414837
unikon@streamyk.my
Kuala Lumpur
74
SAFIAN IBRAHIM
BERSEKUTU
03-62776133
03-62779133
-
Kuala Lumpur
75
FAR CONSULTANT
03-41057366
03-41071631
farconsultant@hotmail.com
Kuala Lumpur
76
RM ASSOCIATES
03-40241906
03-40242963
-
Kuala Lumpur
77
JUB PRIMA
03-23002398
03-23009398
kotaprima@maxis.net.my
Kuala Lumpur
78
HR ASSOCIATES
03-2219971
03-2220658
-
Kuala Lumpur
79
CKP NIZARUDDIN
JURUKUR BAHAN
03-41083302
03-41083317
ckpnkk@tm.net.my
Kuala Lumpur
80
JURUKUR BAHAN L&T
03-79819648
03-79810856
-
Kuala Lumpur
81
PERUNDING C&T
MANAGEMENT
03-21635848
03-21641537
hhkwan@pc.jaring.my
Kuala Lumpur
82
KCL QS KONSULT
03-62722023
03-62722027
kclqs@tm.net.my
Kuala Lumpur
83
PERUNDING KOS T&K
SDN. BHD.
03-62035113
03-62035112
pkt@pc.jaring.my
Kuala Lumpur
84
JUB CENTRAL SDN.
BHD.
03-21635848
03-21641537
pctm@po.jaring.my
Kuala Lumpur
85
KRISTAL PADU
KONSULT
-
-
konsult@tm.net.my
Kuala Lumpur
86
AAH ASSOCIATES
03-61878213
03-61879213
-
Kuala Lumpur
87
PHAN KIM SWEE &
ASSOCIATES
03-20954284
03-20954284
-
Kuala Lumpur
88
KUMPULAN
PERUNDING IHSAN
03-41052404
03-41073971
-
Kuala Lumpur
89
O & C JURUKUR
BAHAN
03-21672588
-
-
Kuala Lumpur
90
FENDI CONSULT
03-90565866
03-90565766
-
Kuala Lumpur
91
QS ASSOCIATES
03-77289955
03-77288779
-
Kuala Lumpur
92
PERUNDING NFL SDN.
BHD.
03-22833503
03-22826075
pnfl@po.jaring.my
Kuala Lumpur
93
JUB WAJA
03-62772977
03-62756355
kcngoo@qsinfo.com.my
Kuala Lumpur
No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
94
JURUKUR BAHAN
UTAMA
03-4089882
03-4078385
jbukl@pd.jaring.my
Kuala Lumpur
95
SUKAT BAHAN M'SIA,
SBM HOUSE
03-22744211
03-22744108
sbmsb@po.jaring.my
Kuala Lumpur
96
Q-TECH
03-41492255
03-41496108
qtech@tm.net.my
Kuala Lumpur
97
PAKATAN
INTERNATIONAL
03-42563733
03-42568122
pakatan@tm.net.my
Kuala Lumpur
98
YING & MOHD FAIZ
SDN.
03-22828838
03-22831863
ymfkl@tm.net.my
Kuala Lumpur
99
AMD ASSOCIATES
03-77292582
03-77287159
-
Kuala Lumpur
100
MEOR ASSOCIATES
03-42522657
03-42576760
-
Kuala Lumpur
101
PERUNDING DMA
03-77263800
03-77267800
-
Kuala Lumpur
102
PERUNDING PQS
03-40424132
03-40414299
pqssb@maxis.net.my
Kuala Lumpur
103
Q & C JURUKUR
PERUNDING
03-92828899
03-92816040
qnc@pd.jaring.my
Kuala Lumpur
104
LIM TENG HOOI & CO.
03-42563629
03-42514118
pom@tm.net.my
Kuala Lumpur
105
M. H. PERUNDING
JURUKUR BAHAN
03-92227861
03-92228786
-
Kuala Lumpur
106
JURUKUR BAHAN
CONSULT
03-27102660
03-27102671
jubc@po.jaring.my
Kuala Lumpur
107
KOS KONSORTIUM
03-40231932
03-40231933
-
Kuala Lumpur
108
QS-BINA CONSULTANT
07-2415652
07-2415659
-
Johor
109
KHAFFEE PERUNDING
07-2383481
07-2320780
-
Johor
110
JY COST PLAN
CONSULTANTS
07-5203949
07-5203950
jyjb@tm.net.my
Johor
111
KONSULT MQS
07-3518731
07-3518731
-
Johor
112
K-QS SERVICES
07-3331411
07-3329368
kqss@pd.jaring.my
Johor
113
MY JURU UKUR
BAHAN PERUNDING
07-55444550
07-5544550
emwhy2000@hotmail.com
Johor
114
JB BERGABUNG
07-3322006
07-3325255
jbb@pd.jaring.mu
Johor
115
KUMPULAN QS
SERVICES
07-3338793
07-3329368
annkiat@pc.jaring.my
Johor
116
MCSK QUANTITY
SURVEYORS
07-3512377
-
-
Johor
117
JURUKUR CEM
07-881789
-
-
Johor
118
HAIKAL JURUTERA
PERUNDING SDN. BHD.
07-5568910
-
-
Johor
119
LING & WONG
PERUNDING SDN. BHD.
07-3887708
07-3887706
-
Johor
No.
COMPANY
PHONE
FAX NO
EMAIL
STATE
120
MUHIBBAH
ENGINEERING (M) SDN.
BHD
07-5073829
07-5073796
-
Johor
121
PERUNDING AMIN
SDN. BHD.
07-5591524
07-5565899
-
Johor
122
PERUNDING MMT
07-5545200
07-5546200
-
Johor
123
PERUNDING SEJATI
SDN. BHD.
07-3538033
07-3539033
-
Johor
124
PERUNDING UEP
07-5572987
07-5572987
-
Johor
125
REKANAN JURUTERA
PERUNDING
07-3332145
07-3338548
-
Johor
126
T.P. TAY JURUTERA
PERUNDING
07-4335832
-
-
Johor
127
ADDING BUILDERS
SDN. BHD.
Johor
128
AFICO HOLDINGS (M)
SDN. BHD.
Johor
129
AGAR SINAR SDN.
BHD.
Johor
130
ALAF JITU SDN. BHD.
Johor
131
ANTARA BESTARI
CONSTRUCTION SD.
BHD.
Johor
132
ANTARA KOH (M) SDN.
BHD.
Johor
133
ANTARA TERBAIK
SDN. BHD.
Johor
VO
Sebab VO
Tebang pokok sediada di tapak
kedudukannya terlalu hampir dengan
bangunan, melebarkan jln masuk ke
pencawang elektrik kpd 5.50m dan
perubahan laluan longkang sediada.
a) Tambahan bilik PABX dan setor aras tanah
Works to be carried out as per
Construction drawing.
b) Tambah 3 unit r.c. platform
Works to be carried out as per
Construction drawing.
c) Tambah 8 unit bilik rangkaian komputer, 2 bilik di setiap aras.
Works to be carried out as per
Construction drawing.
b) Ganti semua bingkai kayu yang akan dipasang pada dinding gypsum
board kepada bingkai kayu aluminium
tidak sesuai digunakan pada dinding
gypsum kerana kekuatan bhn gypsum
board yg lemah utk digandingkan dgn
h.w. frame. Kesan kemasan juga kurang
menarik.
c) Tukar gypsum board partition di bahagian hadapan 14 unit bilik
pensyarah aras tanah kepada dinding bata.
sebahagian dinding terdedah kepada
cahaya
d) Pinda ruang bilik pensyarah dengan keluasan asal 13.081m2 kepada 9
bilik 17.62m2, 9 bilik 21.62m2.
a) Tambah 3 point paip bekalan air di makmal sains bangunan, makmal alam
sekitar dan makmal senibina lanskap.
pertukaran status bilik pensyarah
kepada PM dan prof; naik pangkat
Works to be carried out as per
Construction drawing.
b) Tambah 3 point floor trap and plumping pipe di makmal alam sekitar dan
makmal senibina lanskap.
Works to be carried out as per
Construction drawing.
a) Ganti gypsum board partition dengan dinding bata di bilik pensyarah
c) Batalkan 3 pintu di makmal sains bangunan dan makmal sains alam
sekitar, dan 2 pintu di ruang laluan.
d) Tambah 8 pintu di makmal sains bangunan, makmal pengangkutan,
makmal teknologi maklumat, makmal perbandaran, makmal sains alam
sekitar dan makmal senibina lanskap.
Works to be carried out as per
Construction drawing.
e) Tambah dinding bata di makmal teknologi maklumat dan makmal
senibina lanskap.
Works to be carried out as per
Construction drawing.
f) Tambah gypsum board partition dan 1200mm high fixed glass window
dan aluminium frame double leaf door di makmal sians bangunan, makmal
pengangkutan, makmal teknologi maklumat, makmal perbandaran, makmal
sains alam sekitar. 4.f
Works to be carried out as per
Construction drawing.
a) Batalkan 1 unit aluminium frame sliding window di makmal sains
bangunan.
pasang aircond
b) Batalkan 2 unit aluminium frame sliding window di makmal
pengangkutan.
pasang aircond
c) Batalkan 2 unit aluminium frame sliding window di makmal perbandaran.
pasang aircond
d) Batalkan 1 unit aluminium frame sliding window di makmal sains alam
sekitar.
pasang aircond
e) Tambah 2 unit aluminium frame sliding window di makmal teknologi
maklumat.
Works to be carried out as per
Construction drawing.
f) Tambah 2 unit aluminium frame sliding window di makmal tsenibina
lanskap.
Works to be carried out as per
Construction drawing.
a) Pasang waterproofing greenseal B-2 di lantai simen tandas bagi
menggantikan dampproof.
ganti damproof dgn waterproofing
b) Tambah r.c. gutterdi atas riser.
Works to be carried out as per
Construction drawing.
Batalkan 4 unit urinal di tandas lelaki dan menganjakkan concrete bench ke
tepi dinding.
Tambah bil. bilik air
a) Tambahan kerja bagi rasuk, tiang dan papak di aras berikut; ground beam,
1st floor beam, 2nd floor beam, 3rd floor beam dan lower roof beam.
Works to be carried out as per
Construction drawing.
b) Perubahan rasuk pada ground beam 8.b
Ubah rasuk
a) Perubahan terhadap piawaian struktur bagi keperluan laluan air
conditioning di aras 1 floor beam dan 2nd floor beam.
Ubah piawaian bg keperluan laluan air
conditioning
a) Pertambahan perincian lintol 9.6m.
b) Perubahan dan pertambahan rasuk serta papak di aras 2nd floor beam.
a) Pembatalan rasuk.
b) Perubahan bagi kedudukan rasuk bumbung.
a) Penambahan dan perubahan rasuk di lower roof beam key plan (3).
b) Perubahan rasuk dan tiang di roof beam key plan.
c) Perubahan rasuk di lower roof beam key plan (4).
tukar jenis pintu
tukar jenis pintu
a) Pinda piawaian struktur rasuk di aras 2 dan tambah papak konkrit.
tukar piawaian rasuk
b) Tambah 6 unit r.c. plinth dan tambah 4 unit rasuk sediada untuk
menyokong tangki air.
Works to be carried out as per
Construction drawing.
c) Menutup lourved pada ruang makmal yang berhawa dingin dengan boral
boars.
Penebukan slab di bahagian atas flat slab kawasan bilik stor dan bilik
betworking yang mesti dilengkapi dengan penutup m.s. plate, m.s. cat
ladder, sepanjang 600mm dan concrete slab
disebabkan keperluan bagi laluan
masuk ke tangki air di aras lambung.
a) Bina concrete bench, lab sing.
Works to be carried out as per
Construction drawing.
b) Tambah railing pada tingkap kaca penuh 1 tingkap.
Works to be carried out as per
Construction drawing.
c) Pasang siling gantung gypsum board pada 2 bilik mesyuarat pada aras
tanah.
Pasang air cond
d) Pasang concrete slab pada setiap riser yang dilindungi oleh pintu
rintangan api.
Works to be carried out as per
Construction drawing.
a) Batalkan sebahagian bumbung
Tukar kepada r.c. flat roof
b) Pindaan terhadap piawaian struktur trench dan asas banguan bagi
pencawang elektrik UTM
kerana pindaan lukisan susnatur untuk
pencawang elektrik.
Kerja cerucuk
remeasurement of quantites
WBLFF
remeasurement of quantites
Kerja-kerja luar
remeasurement of quantites
* Site preparation and earthwork
remeasurement of quantites
* Turfing and softlanscaping
remeasurement of quantites
* Road, hardstanding, Pavement.
remeasurement of quantites
* Fencing and gate.
remeasurement of quantites
* Surface water drainange.
remeasurement of quantites
Sewerage
remeasurement of quantites
* External Water Supply
remeasurement of quantites
Peninggalan kerja supply and fix approved natural anodized aluminium
frame fix lourves.
remeasurement of quantites
Pelarasan wang peruntukan sementara dan wang kos prima.
remeasurement of quantites
Perubahan kerja untuk kerja-kerja mekanikal.
remeasurement of quantites
Perubahan kerja untuk kerja-kerja elektrik.
remeasurement of quantites
Pelarasan turun naik harga.
remeasurement of quantites
Pelarasan keuntungan kepada kontraktor utama.
remeasurement of quantites
PPJHK-1
PPK
APK
APP
1
Tebang pokok sediada di tapak
2
a) Tambahan bilik PABX dan setor aras tanah
2.a
b) Tambah 3 unit r.c. platform
2.b
c) Tambah 8 unit bilik rangkaian komputer, 2 bilik di setiap aras.
2.c
3
4
5
a) Ganti gypsum board partition dengan dinding bata di bilik
pensyarah
b) Ganti semua bingkai kayu yang akan dipasang pada dinding
gypsum board kepada bingkai kayu aluminium
c) Tukar gypsum board partition di bahagian hadapan 14 unit bilik
pensyarah aras tanah kepada dinding bata.
d) Pinda ruang bilik pensyarah dengan keluasan asal 13.081m2
kepada 9 bilik 17.62m2, 9 bilik 21.62m2.
a) Tambah 3 point paip bekalan air di makmal sains bangunan,
makmal alam sekitar dan makmal senibina lanskap.
b) Tambah 3 point floor trap and plumping pipe di makmal alam
sekitar dan makmal senibina lanskap.
1
3.a
3.b
3.c
3.d
4.a
4.b
c) Batalkan 3 pintu di makmal sains bangunan dan makmal sains
alam sekitar, dan 2 pintu di ruang laluan.
4.c
d) Tambah 8 pintu di makmal sains bangunan, makmal
pengangkutan, makmal teknologi maklumat, makmal perbandaran,
makmal sains alam sekitar dan makmal senibina lanskap.
4.d
e) Tambah dinding bata di makmal teknologi maklumat dan makmal
senibina lanskap.
4.e
f) Tambah gypsum board partition dan 1200mm high fixed glass
window dan aluminium frame double leaf door di makmal sians
bangunan, makmal pengangkutan, makmal teknologi maklumat,
makmal perbandaran, makmal sains alam sekitar. 4.f
4.f
a) Batalkan 1 unit aluminium frame sliding window di makmal sains
bangunan.
b) Batalkan 2 unit aluminium frame sliding window di makmal
pengangkutan.
5.a
5.b
TOLAK
TAMBAH
(RM)
JUMLAH
-
4,916.25
4,916.25
139.56
4,228.96
4,089.40
-
1,969.88
1,969.88
-
6,000.00
6,000.00
3,536.00
2,966.60
(569.40)
7,984.00
20,908.10
12,924.10
7,686.70
4,770.90
(2,915.80)
7,326.10
-
(7,326.10)
-
315.00
315.00
-
742.00
742.00
2,010.40
-
(2,010.40)
3,285.00
2,642.60
(642.40)
-
3,214.80
3,214.80
-
16,377.40
16,377.40
-
-
-
-
-
-
c) Batalkan 2 unit aluminium frame sliding window di makmal
perbandaran.
d) Batalkan 1 unit aluminium frame sliding window di makmal
sains alam sekitar.
6
e) Tambah 2 unit aluminium frame sliding window di makmal
teknologi maklumat.
f) Tambah 2 unit aluminium frame sliding window di makmal
tsenibina lanskap.
a) Pasang waterproofing greenseal B-2 di lantai simen tandas bagi
menggantikan dampproof.
b) Tambah r.c. gutterdi atas riser.
5.c
5.d
5.e
5.f
7
8
a) Tambahan kerja bagi rasuk, tiang dan papak di aras berikut;
ground beam, 1st floor beam, 2nd floor beam, 3rd floor beam dan
lower roof beam.
8.a
b) Perubahan rasuk pada ground beam 8.b
8.b
9
a) Perubahan terhadap piawaian struktur bagi keperluan laluan air
conditioning di aras 1 floor beam dan 2nd floor beam.
9.a
10
a) Pertambahan perincian lintol 9.6m.
10.a
b) Perubahan dan pertambahan rasuk serta papak di aras 2nd floor
beam.
10.b
a) Pembatalan rasuk.
12.a
b) Perubahan bagi kedudukan rasuk bumbung.
12.b
a) Penambahan dan perubahan rasuk di lower roof beam key plan
(3).
13.a
b) Perubahan rasuk dan tiang di roof beam key plan.
13.b
c) Perubahan rasuk di lower roof beam key plan (4).
13.c
Tukar jenis pintu
14.a
11
12
13
14
a) Pinda piawaian struktur rasuk di aras 2 dan tambah papak
konkrit.
b) Tambah 6 unit r.c. plinth dan tambah 4 unit rasuk sediada untuk
menyokong tangki air.
c) Menutup lourved pada ruang makmal yang berhawa dingin
dengan boral boars.
16.a
16.b
16.c
-
-
-
-
1,095.00
815.00
280.00
1,095.00
815.00
-
3,288.00
3,288.00
-
1,741.11
1,741.11
3,484.52
-
(3,484.52)
5,026.99
9,358.55
4,331.56
32.64
50.56
17.92
84,358.30
87,235.91
2,877.61
450.00
450.00
10,235.40
10,679.50
444.10
2,343.84
-
(2,343.84)
4,007.60
3,958.08
(49.52)
4,984.17
6,649.88
1,665.71
27,699.41
29,940.06
2,240.65
11,127.15
11,598.28
471.13
5,286.00
2,078.60
(3,207.40)
1,863.30
3,085.20
1,221.90
-
1,121.06
1,121.06
-
1,508.00
1,508.00
6.b
7
-
280.00
6.a
Batalkan 4 unit urinal di tandas lelaki dan menganjakkan concrete
bench ke tepi dinding.
-
-
15
16
18
Penebukan slab di bahagian atas flat slab kawasan bilik stor
dan bilik betworking yang mesti dilengkapi dengan penutup
m.s. plate, m.s. cat ladder, sepanjang 600mm dan concrete slab
disebabkan keperluan bagi laluan masuk ke tangki air di aras
lambung.
17.a
a) Bina concrete bench, lab sing.
19.a
b) Tambah railing pada tingkap kaca penuh 1 tingkap.
19.b
c) Pasang siling gantung gypsum board pada 2 bilik mesyuarat
pada aras tanah.
19.c
d) Pasang concrete slab pada setiap riser yang dilindungi oleh
pintu rintangan api.
19.d
a) Batalkan sebahagian bumbung dan tambah r.c. flat roof.
20.a
b) Pindaan terhadap piawaian struktur trench dan asas banguan
bagi pencawang elektrik UTM kerana pindaan lukisan
susnatur utntuk pencawang elektrik.
20.b
-
1,174.22
2,204.60
1,174.22
(2,204.60)
-
1,472.00
1,472.00
331.20
3,715.20
3,384.00
530.85
530.85
2,022.78
1,349.53
(673.25)
4,068.47
7,556.97
3,488.50
-
PPJHK-2
PPK
-
APK
APP
POTONGAN
TAMBAHAN
(RM)
JUMLAH
-
Pengukuran semula
Kerja cerucuk
303,714.10
WBLFF
274,673.00
(29,041.10)
45,093.77
47,712.65
2,618.88
-
51,264.30
52,887.50
1,623.20
8,348.90
16,568.90
8,220.00
85,905.78
80,447.88
(5,457.90)
10,506.50
9,130.60
(1,375.90)
18,252.30
22,531.50
4,279.20
33,245.50
51,747.30
18,501.80
36,334.00
40,955.82
4,621.82
Kerja-kerja luar
* Site preparation and earthwork
* Turfing and softlanscaping
* Road, hardstanding, Pavement.
* Fencing and gate.
* Surface water drainange.
Sewerage
* External Water Supply
PPJHK-3
PPK
APK
Peninggalan kerja supply and fix approved natural
anodized aluminium frame fix lourves.
APP
POTONGAN
57,984.00
TAMBAHAN
(RM)
-
JUMLAH
(57,984.00)
PPJHK-4
PPK
APK
APP
Pelarasan wang peruntukan sementara dan wang kos
prima.
POTONGAN
TAMBAHAN
(RM)
2,003,820.00
1,363,588.15
POTONGAN
TAMBAHAN
(RM)
JUMLAH
(640,231.85)
PPJHK-5
PPK
APK
APP
Perubahan kerja untuk kerja-kerja mekanikal.
-
14,380.00
JUMLAH
14,380.00
PPJHK-6
PPK
APK
APP
Perubahan kerja untuk kerja-kerja elektrik.
POTONGAN
121,049.00
TAMBAHAN
(RM)
-
JUMLAH
(121,049.00)
PPJHK-7
PPK
APK
APP
Pelarasan turun naik harga.
POTONGAN
-
TAMBAHAN
(RM)
81,635.86
JUMLAH
81,635.86
PPJHK-8
PPK
APK
Pelarasan keuntungan kepada kontraktor utama.
APP
POTONGAN
1,210.49
TAMBAHAN
(RM)
143.80
JUMLAH
(1,066.69)