DEPARTMENT OF QUANTITY SURVEYING
VARIATION CONTROL AFFECTING CONSTRUCTION WORKS FOR LEMBAGA
KEMAJUAN TANAH PERSEKUTUAN(FELDA)
NURUL UYUN BT MOHD YUNUS
A report project submitted in partial fulfilment of the
requirements for the award of the degree of Master of Science
(Construction Management)
Faculty of Civil Engineering
University Teknologi Malaysia
MAY,2007
ii
Final Pr
ct I declare that this Project Report entitled “Variation Control Affecting
Construction Work For Lembaga Kemajuan Tanah Persekutuan(FELDA)” is the
result of my own research except as cited in the references. This report has not been
accepted for any degree and is not concurrently submitted in candidature of any
degree.
Signature
:
……………………………..
Name
:
Nurul Uyun Bt Mohd Yunus
Date
:
……………………………..
fulfillment
iii
Specially Dedicated To
My Parents
My Beloved Mother
“You have done all the best for my live”
Beloved Husband
Ahmad Fairuz B. Dato’ Ahmad Shamli
“Thank you for your love and support”
My Children
“You’re the heart of my life’
iv
ACKNOWLEDGEMENT
With high gratitude to Allah S.W.T. who gave me the ideas and physical
strength in preparing this final project. I wish to express my gratitude to the persons
and all parties who responded to the survey and also offered their invaluable
contributions in carrying out this final project.
First of all, I would like to express my appreciation to my Supervisor for his
guidance throughout the preparation of this thesis.
Special thanks to those who agreed to be interviewed, formally and informally,
because gave me the benefit of their knowledge, views and experience. I would like
also to extend my sincere and deepest gratitude to all my friends who have helped me
directly or indirectly.
Finally, I would like to express my deepest love and appreciation to my family
especially to my husband for his support. Thank you for all understanding given to me
when I really need it. I am hoping this thesis will be a reward for all efforts of every
contributing individual. Thank you.
v
ABSTRACT
Variation means alteration, change or modification of design, quality
or quantity of work omission, addition or substitution of the work including
the alteration of the kind or standard of any of the materials or goods to be
used in the work, and the removal from site of any work, materials or goods
which are not in accordance in the contract. The aim is of this study research is
to covering the initial planning, while works is in progress and until the
completion of works to minimize the need for variation works right from the
start . The method of this study involved literature review, interview and based
on the case study and the analysis by qualitative method. The process of data
collection involved obtaining primary data from the literature review and the
secondary data was generated from the case study. From the analysis of this
study type and factors influence to variation; problem that influence and the
implication to variation; and the strategy action can be taken to minimize the
variation were identified. In conclusion, the strategy action that can be taken
were identified to minimize or control the variation works during planning
stage until construction stage.
vi
ABSTRAK
Perubahan kerja didefinasikan sebagai ubahsuai, perubahan rekabentuk,
pembatalan dari kuantiti atau kualiti kerja, penambahan kerja termasuk perubahan
terhadap spesifikasi bahan yang digunakan di dalam sesuatu kerja dan juga
pembatalan kerja ditapak termasuk bahan yang tidak mengikut di dalam kontrak.
Ianya terdapat di dalam kebanyakan di dalam kerja-kerja bangunan. Tujuan kajian ini
adalah merangkumi peringkat awal semasa kerja di dalam kemajuan sehingga siap
kerja untuk mengurangkan perubahan kerja bermula peringkat awal kerja lagi.
Kaedah yang terlibat di dalam kajian ini adalah merangkumi kajian litaratur,
temuduga dan juga kajian kes dan dinalisa melalui kaedah kualitatif. Proses
mengumpulkan data diperolehi dari kajian litaratur dan dari kajian kes. Hasil daripada
analisis yang dijalankan jenis-jenis perubahan kerja dan faktor-faktor yang
mempengaruhi
perubahan
keja
telah
dikenalpasti;
masalah-masalah
yang
mempengaruhi perubahan kerja dan kesan nya; dan akhir sekali tindakan yang boleh
diambil bagi mengurangkan perubahan kerja
juga telah dikenalpasti. Oleh yang
demikian, kesimpulan dari kajian ini terdapat strategi tindakan boleh dilakukan bagi
mengurangkan perubahan kerja bermula dari peringkat awal perancangan hingga ke
peringkat pembinaan.
vii
TABLE OF CONTENTS
CHAPTER
1
2
TITLE
PAGES
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xii
LIST OF FIGURES
xiii
LIST OF ABBREVIATIONS
xiv
INTRODUCTION
1.1
Introduction
1
1.2
Problem Statement
2
1.3
Aim And The Objective Of Study
3
1.4
The Scope And Limitation of Study
3
1.5
Research Methodology
4
1.6
Summary
6
TYPES AND FACTORS INFLUENCE
VARIATION ORDER
2.1
Intoduction
7
2.2
Definition
7
2.3
Types Of Variation
9
2.3.1 Identity of the Initiator
10
viii
2.4
2.3.2 Nature of the Variation
10
2.3.3 Consequences/ Effect of Variation
11
Factors Influencing The Variation
11
2.4.1
Site Condition
12
2.4.2
Design
12
2.4.3
Client Requirement
13
2.4.4
Changes Of End User’s Management
13
2.4.5
Discrepancies Between The Works And
14
Statutory Requirement
2.5
3
2.4.6
Poor Management
14
2.4.7
Requested By The Contractor
15
Summary
15
PROBLEMS AND IMPLICATION
OF VARIATION ORDER
3.1
Introduction
17
3.2
Development Outlines Invovle in
17
Pre-Contract Stage
3.3
3.2.1
Inception Stage
18
3.2.2
Feasibility Study
19
3.2.3
Outline Proposal
20
3.2.4
Scheme Design
21
3.2.5
Detail Design
21
3.2.6
Production Information
22
3.2.7
Bills Of Quantities
22
3.2.8
Tender Action
23
The Problems in Variation
24
3.3.1
Determining the rates to be used
24
3.3.2
Issuing instruction by S.O
25
3.3.3
Determining the quantities in variation
25
3.3.4
Design Changes
26
3.3.5
Communication
26
ix
3.4
3.5
4
3.3.6
Client
27
3.3.7
Consultant
27
3.3.8
Contractor
28
The Implications of Variations
28
3.4.1 Delays
28
3.4.2
Cost
29
3.4.2.1 The additional expenses
29
3.4.2.2 Financial charges and interest
30
3.4.2.3 Cost of site overheads
30
3.4.3
Quality of Works
30
3.4.4
Works Programmed and Activities
31
3.4.5
Inconveniences
31
3.4.6
Unsatisfied
32
Summary
32
STRATEGY ACTION ON MINIMIZING
VARIATION ORDER
4.1
Introduction
33
4.2
Pre Contracr stage
33
4.2.1
Clear and Thorough Project Brief
34
4.2.2
Detailing Of Design
34
4.2.3
Adequate Time in Preparation of Documentation
35
4.2.4
Management Procurement Strategy
35
4.2.5
Detail and Adequate Investigation
36
4.2.6
Provision of Complete Documentation
36
4.3
4.4
Pre Construction Stage
37
4.3.1
Contractor’s Efficiency
37
4.3.2
Keeping Systematic Site Record
37
4.3.3 Daily Check
38
4.3.4 Fully Inspection
38
4.3.5
38
Comply With All Requirement
Summary
39
x
5
6
7
RESEARCH METHODOLOGY
5.1
Introduction
40
5.2
Stage 1 : Literature Review
41
5.3
Stage 2 : Interview and Case Study
42
5.4
Stage 3 : Recommendation
43
5.5
Summary
43
DATA AND ANALYSIS
6.1
Introduction
44
6.2
Case Study 1
45
6.3
Case Study 2
50
6.4
Case Study 3
55
6.5
Result and Analysis
60
6.6
Findings and discussion
66
6.7
Summary
75
CONCLUSION AND RECOMMENDATION
7.1
Introduction
76
7.2
Conclusion
76
7.3
Recommendation
82
REFERENCES
83
xi
LIST OF TABLES
TABLE
TITLE
PAGE
6.1
List of variation works for case study 1
46
6.2
List of variation works for case study 2
51
6.3
List of variation works for case study 3
56
6.4
Types of variations
60
6.5
Factors that influence to the variations
61
6.6
Problem that influence to variations
62
6.7
The implication of variation – Cost Overrun
63
6.8
The implication of variation – Delay
64
6.9
Strategy action can be taken to minimise or control variation
66
6.10
The factors that influence the variations(%)
68
6.11
Cost Overrun for Case Study 1
71
6.12
Cost Overrun for Case Study 2
71
6.13
Cost Overrun for Case Study 3
72
6.14
Delay
72
xii
LIST OF FIGURES
FIGURE
TITLE
PAGE
1.1
The Methodology Flow Chart
5
3.1
Development Outline at Pre-Contract Stage
18
6.1
Percentage factors that influence to variations
61
6.2
Percentage the implication of variation – Cost Overrun
64
6.3
The implication of variation – Delay
65
xiii
LIST OF ABBREVIATIONS
S.O
-
Superintending Officer
PWD 203 (10/83)
-
Standard Form of Contract to be used where Bills of
Quantities Form Part of the Contract (Revised 10/83)
IEM.CE 1/89
-
Standard Form of Contract to be used where Bills of
Quantities Form Part of the Contract of Civil
Engineering Construction
V.O
-
Variation Order
BQ
-
Bills of Quantities
M & E-
Mechanical and Electrical
TNB -
Tenaga Nasional Berhad
JBA
-
Jabatan Bekalan Air
JKR
-
Jabatan Kerja Raya
CHAPTER 1
INTRODUCTION
1.1
Introduction
Today, small projects can be just as important if not more important than the
larger projects. When unforeseen situations occur on site, it is important to first
understand the situation and come up with suitable solutions and forecasts the
probable consequences. One of the occurrences that make projects less profitable is
the variation in the original works, leading to re-planning of the ongoing work. As
clients are always known for their tall demands, they sometimes change their minds
by varying the works while in progress. Changes are usually the major factors causing
the delay on projects. The impact due to changes has been described as the adverse
effect upon the unchanged work due to changes in the contract.
Even though there are provisions on variation orders in a building contract, the
variations works sometimes did not satisfy both of parties who felt disappointed to
carry on the works. It will give impact on the cost of the project extend the
completion period and it will bring inconveniences to all the parties involved in
construction industry, which are client, consultants and also contractor. Besides that it
also brings inconvenience for the end user. No matter how much effort to reduce the
variation order in construction industry, it still happens and the final accounts
remained unresolved after the building was occupied.
These variations are directly attributable to matters not being as stated or as
required in the contract documents. This is because circumstances actually change or
because of misinterpreted in the contract documents. Other than that, it also occurs
because of client’s choice thus will result creating a variation.
For this, some strategies are needed to anticipate starting from the planning
stage, so that as the project commences and programmed on site, they will be no
variations or at least they can be minimized. Therefore, all parties involved should
cooperate to assure that the efficiency of construction and thus will minimize the
variation orders in construction industry.
1.2
Problem Statement
Many program for development are being carried out rapidly for Lembaga
Kemajuan Tanah(FELDA) to develop FELDA land. Therefore 5 years back many of
building and infrastructure works been carried out which awarding the project to the
experience and class A contractor but the problem of variation work is still occurring
while construction in progress. Varies order from client and authority requirement
makes the variations increased easily. Changes in the contract and misinterpreted in
document contract will caused of additional cost and the impact of this variation and
will impact on the completion of project.
Most of the variation occurs when major changesT in the contract during
construction and additional works. Variation can also occur when unexpected
3
condition such as climate changes which can causes damages project site as example
flooded during construction in progress. While unforeseen condition and due to lack
of supervision and poor in managing and planning the project can also causes of
variation.
1.3
Aim and The Objective of Study
. To achieve the aim, several objectives are defined, they are as follows:-
1)
To identify the types of variation works commonly occur in
construction projects and the factor influencing these.
2)
To identify the problem that influence to variation and the implication
of variation to the construction..
3)
To identify the strategy action that can be taken to minimize variations
starting from planning stage until the construction are being carried
out.
1.4
The Scope and Limitation of Study
The scope of this study is focused Research starts from Pre-Contract practice
on managing the design development process in construction. Study on the strategy
action to be taken starting from planning stage until the Post Contract stage and its
effectiveness in minimize the variations. The area of work of the study focused on the
building construction works of Lembaga Kemajuan Tanah Persekutuan (FELDA)
project and also interviews from professionals who are relevant to the topics.
4
1.5
Research Methodology
The methodology is essential to enable the compilation of data and
information from various sources. Thus, it involved three main stages starting from
collection of data, analysis of data, conclusion and recommendation related to the
topic. The study can be broadly divided into three stages.
(i)
The first stage include literature review which based on the primary
data collected through reading and searching from related books,
magazines, articles, web site and others.
(ii)
The second stage is including interview with relevant professional by
face to face interview. Analysis of data by using qualitative methods is
done through the collected reading materials and secondary data
generated from the case study of FELDA’s projects.
(iii)
The final stage of this study is to define the conclusion and
recommendation with reference to the objective, subsequent to the
analysis from the case study and interviews.
The process of research methodology can be summarized as Figure 1.1 below.
This Figure 1.1 shows the process of research methodology starts from the literature
review until to the conclusion and recommendation.
5
Literature review
Collection of Information and data from related
books, magazines, articles, Internet and others
First Stage
Collection of Data
Case Study
Second Stage
Third Stage
Interview
Analysis of Data
(based on qualitative method)
Conclusion and Recommendation
Figure 1.1: The Methodology Flow Chart
6
1.6
Summary
This study provides some valuable insights in to the relative
importance of to minimize or control the variation starts from the planning
stage until the construction stage. The study consists of seven chapters. The
first chapter is to introduction of the research, which includes the statement
problem, the aim and objective of the study, the scope and limitation of the
study, and research methodology. The second chapter is on literature review,
focus on the identification the types of variation and the factor influence this.;
Third chapter continue with the literature review on the problem in variation
and its implication to the construction; Fourth chapter focus on the strategy
action that can be taken to minimize or to control variation work in the
construction. The fifth chapter is the research chapter that discusses the
method of research. The data and analysis is discussed in chapter six and lastly
the conclusion and recommendation is highlight in chapter seven.
CHAPTER 2
TYPES AND FACTORS INFLUENCE VARIATION ORDER
2.1
Introduction
This chapter identifies the types and the factors that influence the variation
order, establish the definition of variation and classification of variation from the
literature review. The factors that influence the variation order to be discussed in
which related from the pre contract stage until construction stage.
2.2
Definition
Variation order means the alteration, change or modification of design, quality
or quantity of work omission, addition or substitution of the work. It is also including
the alteration of the kind or standard of any of the materials or goods to be used in the
work, and the removal from site of any work, materials or goods which are not in
accordance in the contract.
8
In most form of contract used today for building work provision must be made
for possible variations. At the same time when tenders are invited the employer and
his architect and engineer should have crystallized all their ideas into a set of contract
documents.
According Standard Form Of Contract (IEM.CE 1/89, clause 23(a)), state that
the term ‘variation’ means “increase or decrease the quantity of any works include in
the contract; omit any such work; change the character or quality or kind of any such
work; change the levels line position and dimensions of any part of the works; execute
additional works of any kind necessary for the completion of the works.
While according to Standard Form Of Contract (PWD 203 (10/83), clause
24(b)), state that the term of ‘variation’ means “the alteration or modification of the
design, quality or quantity of the works as shown upon the Contract Drawings, Bills
of Quantities and/or Specification, and includes the addition, omission or substitution
of any work, the alteration of the kind of standard or any of the materials or goods to
be used in the works and the removal from the site of any work, materials or good
executed or brought thereon by the Contractor for the purpose of the works other than
work, materials or goods which are not in accordance with this Contract.”
Variation can be classified into two categories, which are active variations and
passive variations (Hj. Hashim Sikan, 2003). Active variations come indirectly as a
result of the issue of instructions. So much the instruction it become a norm that there
is no variation without instruction. Instruction here refers to those instructions issued
by the contract administrator for example Superintending Officer’s (S.O) instruction
in the standard form of contract(PWD Form 203A and IEM.CE 1/89).
Another aspect of variation deals with statutory regulations (clause 11(d)
PWD Form 203A, and IEM.CE 1/89) requires the contractor to inform the S.O in
writing of any change or amendment in statutory regulation and bye-laws taking
effect after the Date of Tender which necessitated any variation to the works and
apply for and S.O’s instruction before the S.O could issue the instruction.
9
The passive variation could be accepted as those that do not require the
instructions to be issued directly to the contractor. For example re-measurement and
valuation of those quantities of the work, which are stated as ‘provisional’ in the bills
of quantity. Other than that the variations also comes in the form of the adjustment of
items having Prime Cost or Provisional Sums in the contract.
The variation work of these items shall be prepared and agreed by the
contractor and the client in which to facilitate the finalization of accounts in the
contract. After the both parties agreed with items and the rates that involve in
variation works, then it should be prepared in the final account accordingly to the
Variation Order format.
2.3
TYPES OF VARIATION
According to Ir Harbans Singh K.S (2002), generally there are three types of
variations. The types of variation can be classified according to their criteria, which
are as list as follows:
(i)
The identity of the initiator.
(ii)
The nature of the variation.
(iii)
The consequences or effect of the variation.
10
2.3.1 Identity of the initiator
Classification per identity of initiator is a change made by any one or more
principal parties. This can be described as employer, contractor, nominated subcontractors, nominated suppliers, and also contract administrator.
Employer is a person on behalf of the users, future occupants, and etc., while
the contractor can make change on his own volition or behalf of sub-contractors,
suppliers, etc. Nominated sub-contractors/ suppliers are in relation to their respective
sub-contract; and contract administrator; on his own volition, on behalf of the
employer, the designers, statutory bodies, third parties and etc.
It is an undeniable fact that the bulk of the variations are initiated by the
employer. The principal reasons for the employer to initiate variations are changes in
the employer’s requirements post contract award, for example owing to a rethinking
of the needs, change in the nature and use of the anticipated or future utilization of the
finished works. Besides that, the changes are also in review or reassessment of the
design by the designers due to issues such as safety, build ability, and correction of
deficiencies or errors. While the contract administrator with the power is then
implemented the provision of the contract unless the employer has retained such
powers under the contract.
2.3.2
Nature of the variation
The nature of the variation means changes according to the nature of the work
itself. This means it not only changes to the work or matters appertaining to the work
in accordance with the provisions of the contract, but also changes in the contract
11
condition itself. It is includes addition of the work, omission and also combination of
both.
2.3.3
Consequences/ Effect of Variation
Variations can also be classified by the consequences or effects of the change
undertaken in labeling it by the financial consideration, or time implication. It is not
considering the nature of the variation and the initiator. The financial consideration
involved the monetary for example an adjustment in the Contract Sum, while the time
implication is the flowing from a particular change being undertaken, (Ir Harbans
Singh K.S)
A variation may arise in construction contract in various ways. It arises more
often during the progress of the work and seldom before the commencement of the
work, but it will not be allowed at any cost after the practical completion has been
certified.
2.4
Factors Influencing the Variation
There are many factors that influenced the variations. It may come at the precontract stage and post-contract stage. The factors that influence the variation are due
to the site condition; any design changes; client’s requirement; change of end user’s;
discrepancies between the works and statutory requirement; poor management; and
request by the contractor.
12
2.4.1
Site Condition
The real conditions are not shown in the drawings and specifications and
cannot be determined during preliminary investigation and therefore it is beyond
expectation. If the Contractor finds any difference in soil condition such as old
underground structure, hole underground, etc, he must inform to the S.O immediately
in writing. This enables the S.O to give the appropriate instruction as described in the
Form of Contract, (clause 8(b) of PWD Form 203A and IEM.CE 1/89). This clause
provides the S.O’s instruction, which is considered to be a variation for unforeseen
condition, and the Contractor is entitled to claim for the cost incurred and looses.
2.4.2
Design
Only when a site is chosen, it will continue with the design stage. In this stage
the client’s brief must be clear. A sophisticated client will already have seen to this
stage. But a building employer may frequently be dissatisfied with the design of the
project, and the seriousness of allegation of bad design can range from the little to the
serious. Design problem may cause structural failure leading to personal injury or
even loss of life.
Producing a quality design is highly dependent upon effective coordination
among the diverse discipline involved in the process. The consequences of most
design coordination problems are not discovered until during construction, (Tarek
Hegazy, Essam Zaneldin, Donald Grierson, 2001).
13
2.4.3
Client Requirement
A client is an owner of the building. Clients are divided into three categories
which are some clients have knowledge and experience in construction industry, have
money but not have experienced in construction field and have money and have a
little experienced in construction industry. The major factors that influenced the
instruction of variation made come from the client itself. The client’s requirement
always changes time to time. Usually only when the building has been constructed
the client gets his sense of desire. The bulk of additional work is occasioned by
revisions in the requirements of the employer during the course of contract, (Ir
Harbans Singh K.S (2002)).
The changes client’s requirement will affect the design. For example, an
employer may require lift for the project thus the design team should redesigned the
structure in order to fulfill the client’s requirement. In this case, whether the
contractor should be entitled to compensation for loss of profit and loss of
productivity will depend on the variation work either cause a delay to the project as a
whole or any rate prevent the optimal deployment of plant and manpower resources
on the site. Other than that, there are some situations where the Client do not even
sure about his requirements and will follow the suggestion from the Architect. This
situation always happens during construction stage and even after construction stage.
Therefore it is sometimes very difficult to determine or to predict the needs of client
requirement.
2.4.4
Changes of End User’s Management
Construction project is lengthy thus a construction project may take one or two
years time depending on the size of the construction. During that time, the
14
management of end user may have changed which will subsequently change the
function and size of a department. In this situation variation is unavoidable.
2.4.5 Discrepancies Between The Works And Statutory Requirement
The discrepancies between the works and statutory requirement are one of the
factors of influenced of instruction of variations. There is a provision in the contract
that allows the Contractor to make variation to comply with the requirement of the
law and local authorities. In the case of compliance with a statutory requirement, there
is the possibility of the S.O securing a waiver and thus reducing the cost, or of a
measure of re-designing that achieves the same objective, (Turner, 1985)
2.4.6
Poor Management
Planning is concerned with only the future. It is obvious that the past becomes
history with the relentless passage of time. When construct a building, the
optimistically expect the project to be successful, with the perhaps only one or two
challenging surprises. It needs for proper planning and management of construction
can never be over emphasized. But poor management will caused the unsatisfied
result.
15
2.4.7
Requested by the Contractor
It is uncommon for the contractor to request instructions in respect of works
they wish to vary, (Hibbert, 1986). The variation that requested by the contractor is
always happen during the construction stage. The reasons why the contractor request
the variation is include:
a)
The Contractor finds that there is another construction method that is
more convenient and advantageous to the contracting parties.
b)
Proposing for a more suitable design for material.
c)
The work priced is not practical and therefore applies it to be
examined.
From the above, it is necessary for the contractor to request approval in
writing and propose the variation. The S.O’s that approves the variation also must
give in writing. Then the contractor should execute the variation work as per
requested and approved by the S.O’s.
2.5
Summary
There are three types of variation, from the literature research that have
been made by the author which were identified as identity of the initiator;
nature of the variation; and consequences/ effect of variation. The initiator was
identified such as employer, consultants, contractor and etc. The nature of
variation was identified as omission, addition and combination of both. Lastly
the consequences/effect of variation was identified as financial consideration
or time implication.
16
There are also many factors that influence the variation order, from the
literature research that have been made by the author. Some of the factor that
influence the variation order were identified as site condition; client
requirement;
discrepancies
design
changes;
between
the
changes
works
and
management; and requested by the contractor.
of
end
statutory
user’s
management;
requirement;
poor
CHAPTER 3
PROBLEMS AND IMPLICATION TO VARIATION ORDER
3.1
Introduction
This chapter discusses on the development outline involve in pre-contract
stage which explained the process of the pre-contract stage in a building project. The
important of this chapter is discussed on the problems that influence to variation and
the implication of variation works to the construction.
3.2
Development Outlines Invovle in Pre-Contract Stage
Development outlines involve in pre-contract stage based on the RIBA Plan of
Work which is sequential progression through the stages of design and construction of
a building project. This development outlines involve in pre-contract which involved
in eight(8) stages, which are inception; feasibility study; outline proposals; scheme
design; detail design; production information; bill of quantities; and tender action.
18
Inception
Feasibility study
Outline proposals
Scheme design
Detail design
Production
information
Bills of quantities
Tender action
Figure 3.1 : Development Outline at Pre-Contract Stage
This development process can be summarized in the Figure 3.1 above. The
development outlines involve in pre-contract which involved in eight(8) stages, which
are described as follows :
3.2.1
Inception Stage
The main purpose of the inception stage is to prepare general outline of
requirements and plan future actions. The difficulties inherent in establishing the
19
client’s brief are often substantial. The main problem is identifying the client’s needs
and then reconciling these against a background of financial, technological and
legislative constrains, the client’s personal requirements, and also a number of design
variables including structural form, aesthetic and environment, (Ivor H. Seeley, 1982)
In inception stage, the architect will start his work after the client decides what
he wants. The architect will require as much information as possible from the client in
order to avoid variation order in the future. It is important that the client should keep
well informed of the various decisions as they are made. The basic details need by the
architect are the nature, size and function of the proposed building, the time and
financial limits relating to the project, information relating to ownership of the site,
boundaries, and other related matters, current position with regard to any planning
application, and other members of the design team to be appointed. The client’s
requirement normally will reflect the design.
3.2.2
Feasibility Study
The main objective at this stage is to examine all the technical, functional and
financial aspects of the project and to advise the client as to its feasibility. The
feasibility study stage comes after the inception where the general outline of
requirement has been prepared. Normally the design team will meet and discuss to in
detail regarding the client’s requirements and to make their recommendations thereon
for submission to the client and established the design brief.
The feasibility study will take into account a detail survey of the site and any
adjoining building and capacity of the various services including gas, water,
electricity, sewers and telephones. Consultation will take place with the Local
20
Authority and any relevant bodies. Any restriction on the use of the site must be
investigated and their effect on the proposed development determined.
The feasibility study normally will be based on the previous project with
similar uses and similar specification to investigate the requirement and facilities. The
quantity surveyor will calculate based on the findings and recommendations either the
proposed development is feasible to build or not.
The report must effectively assess the overall feasibility of the scheme having
regard to all relevant factors, so as to give the client all the information he needs to
make decision whether to proceed with the scheme or not. This report will be
supported by conceptual designs and estimates of cost.
3.2.3
Outline Proposal
At this stage alternative schemes are prepared and compared in order to
determine the general approach to the layout, design and construction. This involved
very close collaboration between all members of the design team and the client. At
this stage all design team plays their important role to make sure the work carried out
smoothly. The architect will be particularly concerned with functional and aesthetic
aspect, the structural engineer with different structural forms and the services engineer
with alternative services layouts. The quantity surveyor will maintain close contact
with all the other professionals in order to determine the cost implications of the
alternative proposals as they are prepared.
21
3.2.4 Scheme Design
The main purpose at this stage is to critically examine the wider issues of
appearance, method of construction, outline specification and the preparation of a cost
plan, showing the proposed distribution of costs over the elements or components of
the building. All the relevant design information is collated and a detailed report on
the design and full cost implications can be supplied to the client before the scheme
design is developed. The cost estimates will be provided by the quantity surveyor,
desirably incorporating both initial and future cost.
3.2.5
Detail Design
At this stage, the design will be in depth with the final decisions being taken in
respect of all individual components which together make up the complete building.
All members of the design team also will continue to work very closely together to
secure an integrated and efficient scheme. The various ideas from the various
professional will have contributed greatly to the final outcome.
As the design moves into greater detail and hopefully towards finality, cost
checks should be carried out to see that particular cost elements are not being
distorted, or that, if they are, the resulting redistribution within the budget is
acceptable, and if there are any changes in the design, it will result in abortive work
and almost certainly in additional cost.
22
3.2.6
Production Information
At production information process, the architect, engineers and any other
specialists will now proceed with the preparation of the final drawings and schedules,
and supporting specifications.
Besides that, at this stage also to determine the preliminary tendering
procedures and to prepare a list of potential main contractors, enquiries to subcontractors and suppliers, invitations to tender, and information to tender documents.
3.2.7
Bills Of Quantities
At this stage, the bill of quantities and all other tendering documentation are
finalized. It is important that the drawings, schedules, and specification particulars
should be checked and steps taken to ensure all the particulars are in correct.
If there are any discrepancies between the specification and drawings, then the
query list will submitted to the architect in order to the architects to clarify these
points and amend the documentation prior to tender stage.
The bills of quantities are designed primarily as a tendering document, but it
also provides a valuable aid to the pricing of variations and computation of valuations
for interim certificates. It provides a good basic for cost planning and help in
identification of work.
23
The bills of quantities contain preliminaries, preambles or description of
material and workmanship, and the measured work. The preliminaries define the
scope and nature of work; contain details of the contract condition, list of drawings
and any special instructions to the contractor on pricing. In the bills of quantities also
will be inserted the Prime Cost Sums and Provisional Sums. Preparation of bills of
quantities must be in detailed in order to avoid any discrepancies and also variation
works. One of the causes of variation is the discrepancies in the bills of quantities.
3.2.8
Tender Action
Tendering procedures cover the various methods that may be used by the
client and his advisers to obtain offers. There are some procedures in obtaining the
tender which are open and selected tendering.
This open tendering procedure is to advertise through the press, inviting any
firm that wishes to do so to submit a tender. The advertisement will give outline
details of the type of work, the programmed and other key features. The open
tendering provides the longed for opening for some relatively unknown but capable
firm.
The selected tendering procedure is to call the selected qualified contractor
based on the financial background and other features and asking them whether they
wish to tender. If they do so, they must fill in the document and submit the contract
document. Selected tenderers normally are approached about one month before the
tender document is circulated. The purpose of the tender action is to select the suitable
contractor to carry out the work diligently and competently.
24
3.3
The Problem in Variation
There are some problems arising when there is a variation work in the
construction. These problems might sometimes cannot be avoid but it can be managed
in order to reduce the problems occur in the future. The common problems that occur
in variation work can be categories as follows:-
3.3.1
Determining the rates to be used.
Although in construction contract there is a provision in determining the rates
when there is a variation work in the contract rate, agreed rate or day work rates, but
in practice there is a problem in determining which rates are to be used. When there is
variation work, the quantity surveyor needs to divide the rate to be used in pricing the
variation work. If the work is similar nature and executed under the similar conditions
then the contract rate is used. Where the work is not of a similar nature and executed
under similar conditions in the contract, then the pro-rata rates is used. But if the work
is totally different from anything contained in the contract, then the agreed rate or day
work rate will be used. The problem is where the work is totally different with the
contract, the contractor’s rate normally high because from that, he can get the profit.
So it is hard to get the reasonable rate and it takes time to decide and solve this
problems.
25
3.3.2
Issuing instruction by S.O
Another problem is issuing of the S.O’s instruction sometimes in verbal and
not confirmed in writing. The condition of contract states, instruction is not valid and
the contractor has to confirm back with the S.O within the stipulated time in the
contract. Normally in practice, whether the instruction is in verbal, the contractor still
carried out the work as instructed by the S.O. The problem is at the end of
construction, if the contractor carried out the work that instructed by the S.O in
verbal, the work is not accepted because there is no evidence to proof the work and
not including in the contract. Hence, the contractor not entitles to claim for the works.
The S.O has a choice to accept the work or to reject the work. If the S.O chooses to
accept the work, he may issue the written notice to the contractor for the variation
works.
If the S.O chooses to reject the work, the contractor must demolish the work at
his own cost. To avoid this problem, any instruction issued by the S.O must in
writing. If there is an instruction in verbal, the contractor must take an action to
confirm with the S.O and the confirmation must be in writing.
3.3.3
Determining the quantities in variation
Besides that, there is also a problem in determining the quantities in the
variation works especially in Lump Sum Contract based on Drawings and
Specification. For the lump sum contract, it only required contract document without
the quantities, specifications and drawings. All the quantities are subject to remeasurement. The problems arise in determine the exact quantities in which the client
may spend the extra cost by using this type of contract. This because, all items in the
contract to be executed by the contractor which is lump sum is payable. The actual
26
quantities of the work executed by the contractor which exceed the quantities shown
against in the contract, therefore it may constitute a variation and the client should pay
for the work done by the contractor.
3.3.4
Design Changes
Problem in bad design of the project always occur especially when there is
poor communication between the client and the consultant. The client dissatisfied
with the design made by the designer. For example, the client dissatisfied with the
layout of the electrical fitting because it can cause the personal injury or even loss of
life. If this problem occurs, the design must redesign the layout to modify and that is
costly. Basically these problems will only discover until during construction.
3.3.5
Communication
Communication is one of the problems in variations. If the communication
failed, it will lead the bad performance and could cause variation. Communication is
important to start from briefing stage until the completion of the work. In variation
work, the communication problem between the S.O and the contractor is important,
for example in issuing the instruction. If the contractor not understands the instruction
and carries out the work then it fails to satisfactory the S.O, the work may accept or
reject by the S.O. If the S.O rejects the work, then the contractor could rectify the
works and it is costly to the contractor. This communication can lead the both parties
feel unsatisfied for the works.
27
3.3.6
Client
If there is a variation works, the client must bear the cost incurred in the
works. In other words, the client’s budget has increase because there is a variation
works especially for the contract based on the bills of quantities. Besides that, if there
is any variation work and time of the construction has extend, the client loss of the
profit because late in occupy the building. For example the construction for bungalow
houses, building should complete at the end of the year as stated in the contract. If
there is no variation works, the client may be can occupy the building, operate the
building, and make the profit from the building; but when there are a variation works,
the client cannot occupy the building and cannot make profit from the building. The
client bears the loss of the operation of the building.
3.3.7
Consultant
If the client request for the variation works, the Architect must produce the
new design in order to meet the new requirement of the client. Sometimes the
variation will affect the design, for example effect on the architecture view. It may
lead the designer feel unhappy because their work has been disturbed by the numbers
of variation. The quantity surveyor also has a problem when there is a variation work.
For example, the quantity surveyor should produce the new bills of quantities if the
new works not similar with the work in the original contract.
28
3.3.8 Contractor
The other problem in the variations is on the contractor’s side. The contractor
is difficult to claim for extra works or variations especially under the lump sum
contract. According to Ir. Harbans Singh K.S (2003), it is difficult for the contractor
to claim an extra/variation works unless the contractor satisfy the onerous burden of
establishing a clear cut charge in the scope of work as originally contracted for.
Besides that, when there are a numbers of variations, it may lead the contractor
feeling unmotivated and this will result in poor quality of works. The contractor also
faced the problem when there are variation works in the construction, the problem is
the contractor should reschedule the work program and it will affect the activities in
site.
3.4
The Implication Of Variations Order
Variations in construction industry will lead the impact to all the parties
involved in this sector. The main implication of variations is in term of time overrun
and cost.
3.4.1
Delay
Delay refers to the time taken in complete the work. There are in fact two
types of delay, which must be taken into account when valuing the effect of variation.
(Powell-Smith, 1990).
29
(i)
Delay to a critical path of the work, which will affect the general of the
work, thus the contractor retaining his general site overheads for the longer
period.
(ii)
Delays to part of the work that will not affect the overall completion but
the contractor still retain some particular item of plant on site longer than
planned.
(iii)
Loss and expense flowing directly from the execution of the varied work.
Standard Form Of Contract, (PWD Form 203 Rev. 10/83) provides a special
provision for delay to ensures that if variation instructions are late and cause delay to
the contractor then the client is entitled to grant of extension of time and enable the
contractor to claim for loss and expense, thus avoiding putting time at large and
unable to recover any liquidated and ascertain damages.
3.4.2
Cost
Variation also will give the effect in terms of cost. This cost that can be
identified such as additional expenses; financial charges and interest; and cost of site
overhead.
3.4.2.1 The additional expenses, which are:
a)
Transportation expenses – the cost arising out of the moving and
transporting materials and machinery, for example crane that has
already been used and stores is transferred back to the site for
additional works.
30
b)
Cost of variation works preparation – the cost arises when some work
elements have to be demolished including cost of removing materials
and rectifying defects.
c)
Other cancellation expenses – is the cost of canceling orders. This is
because the Contractor may have committed for certain charges
making the order.
3.4.2.2 Financial charges and interest
The cost incurred when the contractor wants to extend the project for a certain
period of time due to massive and complex variation work. It involved a large amount
of additional capital. Furthermore, the Contractor has to resort financial assistance
from banks or other financial institutions whereby interests or charges encumbered
upon the secured loan. (Chow Kok Fong, 1993)
3.4.2.3 Cost of site overheads
The cost involved a large amount of additional cost for example the cost of
supervision, machinery and equipment, site safety and other facilities that are needed
to pay during extended time.
3.4.3
Quality of Works
The quality of the work will be at risk. The question is either the quality of
works achieves the standard requirement as per contract or not? If there are too many
instruction changes by the Architect or S.O, it may lead the contractor feeling
31
unmotivated and afraid for the possibility of changes in completed works and this will
result in poor quality of work and low productivity of the contractor.
3.4.4
Works Programmed and Activities
Reprogramming and restructuring of the disrupted works will have to be done
which will include demand for additional labour, overtime and additional machinery.
Loss of productivity occurred where the labour resources must have been available
and able to be used profitable. Besides that, variation also effect on the plant
utilization because it will give the additional cost to contractor due to relocation of
plant on or off site, the need of additional plant, additional tools, alterations of
scaffolding and also standing time.
3.4.5
Inconveniences
Variations will be bring inconveniences to all the parties involved in the
construction project which are client, contractor and also design team. If there are
variations, the design team will redo the work and it will cause inconveniences for
example the Architect will redesign the drawings as the client’s requirement while the
Contractor should pay extra cost for the delay caused by redesigning the work.
32
3.4.6
Unsatisfied
Having variations may become unsatisfied or hassle among the parties
involved in the construction project. For example, for the Client, the possibility of
increasing budget for that particular project may cause high to restructure financing
for the project. As for the Contractor, his work program will be disrupted, a new
construction program needs to be submitted to the client and the relationships with
relevant suppliers and subcontractors will need to be revised. For the design team, a
new set of design may need to be submitted to the Client. The whole process of
redesigning and re-measurement will be time consuming.
3.5
Summary
From the literature research, therefore the outline of development in
construction can be summarized as eight stages which are as follows, inception Stage;
feasibility study; outline proposals; scheme design; detail design; production
information; bills of quantities and tender. Problems that occur in variation can be
identified as determining the rate to be used; issuing instruction by S.O’s; determining
the quantities in variation; design changes; client; consultant; and contractor. The
implication of variation from the literature research also can be summarized as delay;
cost; quality of work; work program and activities; inconvenience; and unsatisfied.
CHAPTER 4
STRATEGY ACTION ON MINIMIZING VARIATION ORDER
4.1
Introduction
This chapter highlights the strategy action that can be taken in order to
minimise or controlling the variation during pre-contract stage and post-contract
stage. This chapter discussed on how the strategy action can be taken during precontract stage and post-contract in order to minimize variation order occur through
out in the construction period.
4.2
Pre-Contract Stgae
Variations can be avoided if there is prevention at the earlier stage of contract.
The following are some strategy actions that can be taken in order to minimise the
variation in pre-contract stage.
34
4.2.1
Clear and Thorough Project Brief
Project brief is important at the initial stage because it represent the client’s
needs and the objectives. At the inception stage, the communication is important
between the client and the design team in order to avoid the poor contract
performance later. The consultant must totally understand the client’s requirement and
the client should clear their needs so that it will help to reduce the miscommunications
between the parties. It is also to minimize the changes arise in the future as well as
variations.
4.2.2
Detailing Of Design
The important stage in the pre-contract is detail design because it is contain a
full design of every part and component of the building by collaboration of all
concerned. The detail design important normally for contract based on the drawings
and specifications in order to avoid any dispute and claim arise in future.
Furthermore, detail design also important in controlling the cost because it
may affect cost of the future if not well prepared. The design team must work together
and clear all the client’s requirement and needs in order to avoid any changes future.
Any further change in location, size, shape, or cost after this time will result in
abortive work.
35
4.2.3
Adequate Time In Preparation Of Documentation
During preparation of the tender document, Quantity Surveying will prepare
provisional item for the certain item that cannot measure accurately before the works
being carried out. For example piling and plumbing installation. The Quantity
Surveying need to make any assumption for the items that is not state in the drawing.
These items are included under the provisional item and will be re-measuring during
the construction. So, the Quantity Surveyor needs an adequate time in measurement of
the works and also preparation of documentation. Thus through the detail design and
adequate time for the Quantity Surveying to prepare the document, the total number
of variations could be reduced.
4.2.4
Management Procurement Strategy
The selection of the management procurement are important in order to ensure
that the construction is running smooth and less variation occur during construction.
Basically there are two procurement methods which are mostly used in Malaysia
construction project are conventional method and design and build method.
According the conventional method, the detail design can be prepare during the
design stage.
The client and designer will discuss together, so that there will be minimal
changes during the construction stage. Compare to the design and build, all the design
was prepared by the contractor based on the client’s brief. So the possibilities of
increasing the number of variation works are high. Even though these both methods
have their own pros and cons, this will depend on the client to select the best method
which is suitable to apply for the project.
36
4.2.5 Detail And Adequate Investigation
The detail in investigation is important even though it costly because it will
help in the completion of the project within the budget and time specified. It will
costly at the earlier stage but will reduce the cost at the construction stage.
If the investigation is not adequate, it will result in additional cost future. This
is because if the investigation is not done adequately, it will have problems at
construction stage later when the site turns out to be not good as expected. This will
involve an additional cost and also involve a variation works in the future. The
investigation involves are a topographical survey and geotechnical investigation. In
order to avoid variation works, the investigations must be in detail and adequate. This
is one good way of reducing the variation claims.
4.2.6
Provision of Complete Documentation
In order to minimize the variations, the provision of complete documentation
must take into consideration before the parties enter into contract. It is important to
make sure all the information in the document is complete. For example, for the
contract based on the drawing and specification, the consultants must ensure that the
document contract must completely attach the entire relevant document. The detail
specifications are required for the lump sum contract.
37
4.3
Post Contract Stage
The common issue arises in the construction and cannot be avoided is a
variation works. Therefore there are some strategy actions that can be taken at post
contract stage in order to minimize the variation works in construction.
4.3.1
Contractor’s Efficiency
One of the causes of variation is contractor’s inefficiency in doing the job. In
order to minimize the variations, the contractor must carry out the work with
efficiency as stated in the condition of contract which is carry out the work regularly
and diligently. Any instruction by the S.O’s which related to variation work, the
contractor must follow the S.O’s instruction and if he fails to do so he will be
considered breach the contract. The contractor shall proceed to carry out the work and
not be delay and pending in doing the work to grant the extension of time for
completion the work.
4.3.2
Keeping Systematic Site Record
Site record is important as an evidence of the work. If there is a systematic site
report, the work can be done properly without any disturbance. For example piling
works, the record must be properly managed in order to avoid problems in future.
Besides that, piling works is a provisional quantities and subject to re-measurement,
so it important to keep a systematic record.
38
4.3.3
Daily Check
Daily check is one of the actions to control the variation at post contract stage.
It is important because if there is a daily check on the site, the variation arise from the
contractor’s mistake can be reduced. The checking can be done by the S.O or S.O’s
representative. The contractor should give a fully cooperation to them at this stage and
a good communication is needed.
4.3.3
Fully Inspection
Every works by the contractor must be inspected by the S.O or S.O’s
representative. If the work is not inspecting by the S.O, the work may result a
variation in future. Fully inspection also be done before the construction start and
after the work completed before issuing the Certificate of Completion. Investigation
before the construction includes the site investigation and also soil investigation,
while investigation after work complete is inspection done by the all parties involved
including Local Authority. This investigation is important to prevent the variations. If
there is no investigation, it might be changes in work future.
4.3.4
Comply With All Requirement
The contractor and the consultants must comply with all Local Authority’s
requirement. All the works carried out by the contractor must according to the
specifications by the Local Authority and the contract, for example requirements from
Fire and Rescue Department, Drainage and Irrigation Department (JPS) and others. It
39
is important to comply with all requirements in order to control the variation work. If
the works not follow the requirement, the work might be rectified or demolished and
must reconstruct according to the specification. This will result variation works.
4.4
Summary
From the literature review research above, therefore the strategy action that
can be taken in order to minimize the variation can be summarized as two categories
which during pre-contract stage such as clear and thoroughly project brief; detailing
of design; adequate time in preparation of documentation; management procurement
Strategy; detail and adequate investigation; and provision of complete documentation.
While during post contract stage can be summarized as contractor’s efficiency; daily
check; fully inspection; and comply with all requirement.
CHAPTER 5
RESEARCH METHODOLOGY
5.1
Introduction
The research methodology is essential in guiding the researcher to achieve the
aim and the objectives of the study. This chapter will describe the methodology
procedure was to ensure that the information obtained for this study was relevant and
capable of qualitative evaluation. The necessary data for the analysis could not be
found from the literature review. Therefore data collection had been carried out.
The data collection based on the literature review could be collected in several
ways. Buckley et all (1976) grouped the methodology of data collection under four
headings; namely opinion research, empirical research, archival research and
analytical research. Each method has its own strengths and limitations, and none
could be considered superior that the others. The decision as to which methods to use
must be based on the survey objectives, the nature of the information required and the
resources available (Jobber, 1991).
41
The types of variation and the factors that influence the variation have been
discussed in the previous chapter which covers the primary input of Variation Order.
It has completing the objective to study what are the meaning of variation and and
type of variation that cause of variation order.
The development outline involve in pre-contract stage which is the sequence
of progress through the stages of design and construction of a building project and
problem in variation and the implication of variation identified through various sources
such as reference book, journal, seminar’s paper, magazine and other sources by way of
using internet. The question which need to be clarified is whether the theoretical practice
and what is practicing by the parties which involve in the construction such as client,
consultant and the contractor. This phenomenon will be determined through this research.
5.2
Stage 1 : Literature Review
There are three sections under the literature review where the first section
explained and discussed the types of variation and the factors influence the variation
which begin with the definition of variation order. The second section describe the
problem in variation order and the implication of variation order. And the third
section described the strategy action that can be taken to control or minimize the
variation order in the construction. The source of data is obtained from the reading
materials and such as books, articles and seminar’s paper and other published
information supporting the topic of variation order.
42
5.3
Stage 2 : Interview and Case Study
The second stage consists of preparing and collecting of primary data through
interview session and based on the case study. Generally the data is collected directly
from the professional parties which are relevant to the topic and also from the
professional parties whom directly involve in the case study. Analysis of data by
using qualitative methods is required to determine the factors that influence the
variation and the strategy action to be taken in order to control or minimize the
variation start from pre-contract stage until post-contract stage. The case study were
selected which the development of the project are similar and by using the same
procurement method which is traditional method. The data collected from the case
study and interview are gathered and analyzed by using percentage analysis and the
qualitative method by comparing the three case studies in project background, project
details and the list of variation occur in final contract in which to identify the major
factors that influence variation, the problem in variation and the implication that
related to variation order during pre-contract stage and post contract stage.
The interviewing session is done to the personnel of the department who
completely deal with refurbishment project and related case study is taken into
account to gather facts about the problem related to refurbishment project. Set of
questions is formulated during the interviewing session to highlight the process of
refurbishment project as whole. All data will then be analysed and evaluated. The
differences of refurbishment process by each organization will be summarized into
table which it would be an effective ways to differentiate the data clearly.
43
5.4
Stage 3 : Recommendation
In this stage is the final stage of the research methodology. The final stage of
this study is to define the conclusion and recommendation with reference to the
objective, subsequent to the analysis from the case study and interviews.
5.5
Summary
For the conclusion, this chapter is discussing about the methods of collecting
all data and analysis of the result from the interviews and case study. The data is
analyzed by using qualitative methods to complete the requirement of the research.
CHAPTER 6
DATA ANALYSIS AND RESULT
6.1
Introduction
This chapter will look at the some project that involved the variation works.
There are three (3) case study that have been selected in order to fully understand on
the factors that influence to variation, the problems that influence to variation and the
implication of variations work, and also to find out what are the strategy action taken
in order to control or minimize the variations in the construction.
All of three case study using the same procurement strategy, which are
Standard Form of IEM.CE 1/89 and have completed with the final account. The
completed project with final account has been choose in order to know the amount of
variation works involved and how far the cost of variation works affected the cost of
the original contract sum. The three case studies are as follows:
(i)
Case Study 1 : Cadangan Pembangunan Feldajaya Mempaga, Mukim Sabai
Daerah Bentong, Pahang Darul Makmur.
(ii)
Case Study 2 : Cadangan Pembangunan Feldajaya Serting Negeri Sembilan.
(iii)
Case Study 3 : Cadangan Pembangunan Feldajaya Trolak Perak Darul
Ridzuan.
45
6.2
Case Study 1
The case study 1 which summaries the background of the Project of
Cadangan Pembangunan Feldajaya Mempaga, Mukim Sabai, Pahang Darul Makmur.
The parties involved are the client which is Lembaga Kemajuan Tanah
Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and
Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer,
the architecht are W&W Architect and Bauran Bina Sdn. Bhd. as the contractor.
The contract no of this project is contract 100000445. The original contract
sum
is
value
at
RM
32,747,987.00
and
adjustment
to
Contract
Sum
RM16, 621,218.60 which made the final contract sum to RM 49,369,205.60. The
contract period for this project is 72 weeks and the date of site possession is on
9thJune 2003 which the original of completion date on 15th March 2005, but the actual
completion date is on 30th October 2006 with the defect Liability Period which on
30thApril 2007.
List of the variation works as shown in Table 6.1 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are forty four (44) variation works involved including
re-measurement works.
Table 6.1 : List of variation works for case study 1
V.O
NO
TOTAL(RM)
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Outside Drain
To comply JPS requirement
2,705,545.00
2.
Paip Retikulasi Kumbahan
To comply JPP requirement
280,000.00
3.
Side Drain
Site Condition
294,765.00
4.
To build Road & Car Porch
To comply JKR requirement
1,889,946.00
5.
Upgrading laluan masuk utama
To comply JKR requirement
1,062,600.00
6.
To prepare Road to Water tank
To comply JBA requirement
860,000.00
7.
Kolam takungan
To comply JPS requirement
1,064,000.00
8.
Changes Jajaran Paip Retikulasi
To comply JPP requirement
Kumbahan
9.
Planting grass for awaken the slope
(Behind Bungalow & TNB 3)
93,250.00
To comply Majlis Daerah requirement
1,378,545.00
OMISSION
10.
Strengthening Bungalow Structure
Site Condition
50,000.00
11.
Changes Jubin at Car porch
Error in BQ
80,000.00
Bungalow House
12.
Dewan Makan Kolej KINI
13.
Additional Tandas at Academic
Changes on design
450,000.00
Changes on design
240,000.00
Kolej KINI
Changes on design
651,260.00
15.
Changes Rumah Kedai
Error in BQ
353,000.00
16.
Changes Building Tadika/Pusat IT.
Error in BQ
148,600.00
17.
Road crossing TNB
To comply TNB requirement
12,348.00
18.
Bungalows main entrance
To comply TNB requirement
102,900.00
19.
Bungalows driveway with crushed
To comply TNB requirement
55,000.00
To comply TNB requirement
9,000.00
Block Kolej Kini (2 Unit)
14.
Changes structure building design
run & premix.
20.
Portion of main road with crushed
run and premix
21.
Grouting ( Prelim, Medan selera,
Site condition
347,807.00
Bungalow 6B,37C,72A)
22.
Additional Tingkap pintu, Frosted
Error in BQ
glass (Bungalow A)
39,000.00
15,000.00
23.
Changes lockset
Client’s request
24.
Additional Pintu D2 Kitchen
Error in BQ
24,000.00
1,303,797.80
Bungalow
25.
Changes Pipe HDPE to MS
To comply JBA requirement
26.
Preliminary Hoarding
Remesurement
27.
Ancillary Building (TNB, Dewan &
Remesurement
35,375.00
146,000.00
60,000.00
41,000.00
Pasar)
28
Water Reticulation
Remesurement
343,000.00
29.
Electrical Works (Pasar, Dewan,
Remesurement
107,536.00
Remesurement
330,783.52
Kolej & Tadika)
30.
Additional Dewan & Pasar-M&E
works
31.
Prime Cost ( STP, Meru Tanda,
Client’s request
30,000.00
959,971.30
Landscape Works, Playground
Equipment)
32.
Piling works
Site Condition
33.
TCT rolform
Error in BQ
55,800.00
34.
R.C concrete sump
Error in BQ
21,000.00
35.
Gutter and Flashing
Error in BQ
150,000.00
36.
Railing
Error in BQ
301,000.00
37.
Box culvert
To comply JKR requirement
845,000.00
38.
Change location of Kilang Bata
Client’s request
39.
Water proofing (banglow & building) Error in BQ
40.
Change thk of crusher run
To comply JKR requirement
41.
Additional building- tandas awam
Client’s request
82,000.00
42.
Change size of surau
Client’s request
280,000.00
43.
Access car porch
Client’s request
345,000.00
44.
Perasmian Hari Peneroka
Client’s request
426,478.00
18,000.00
71,000.00
1,000,000.00
Total
18,155,613.10
Net total
16,621,218.60
1,533,694.50
6.3
Case Study 2
The case study 2 which summaries the background of the Project of
Cadangan Pembagunan Fasa 1 Feldajaya Selatan. Mukim Serting Daerah Jempol,
Negeri Sembilan, Darul Khusus. The parties involved are the client which is Lembaga
Kemajuan Tanah Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as
Project Manager and Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural
and M&E Engineer, the architect is W&W Architect and Prinseptek Sdn. Bhd. as the
contractor.
The contract no of this project is contract 100000464. The original contract
sum is value at RM 45,000,000.00 and adjustment to Contract Sum RM12,983,300.00
which made the final contract sum to RM 57,983,300.00. The contract period for this
project is 72 weeks and the date of site possession is on 23thJune 2003 which the
original of completion date on 20th December 2004, but the actual completion date is
on 4th September 2006 with the defect Liability Period which on 4thApril 2008.
List of the variation works as shown in Table 6.2 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are forty seven (47) variation works involved including remeasurement works.
Table 6.2 : List of variation works for case study 2
V.O
TOTAL(RM)
NO
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Supply & lay UPVC
Error in BQ
222,464.90
2.
Construction & completion of Mercu Tanda
Error in BQ
68,000.00
3.
Excavation, Backfilling Sand & Crusher runs.
Error in BQ
( Laluan A1,A2 & A3)
74,400.00
4.
Road crossing Works ( Laluan B1)
Error in BQ
5.
Road Crossing Works ( Laluan Sesalur
Error in BQ
6.
Telekom)
7.
Sand & Bricks ( Bungalow A, B, C, D, & E)
Error in BQ
119,214.00
8.
60A 3 Phase Kiosk meter
Error in BQ
57,200.00
9.
Labour, tools & transportation for installation,
90,000.00
158,000.00
OMISSION
excavation & other works.
Error in BQ
73,920.00
10.
Additional Pillar Board & Telephone Works
Error in BQ
59,900.00
11.
Relocate TNB & Telephone pit at ‘Hentian Bas’
To comply TNB requirement
Block Drains
To comply JPS requirement
12.
Hose Reel Tank & Pump House at Tadika
Error in BQ
67,814.21
13.
Additional for Air (Kolej)
Error in BQ
138,980.00
14.
Main Switch Board (MSB) and Cable
Error in BQ
392,750.00
15.
Slope Trimming & Hydro seeding Works
Error in BQ
81,143.05
16.
Road Crossing for TNB
To comply TNB requirement
20,477.60
17.
Additional for 3 phase at Rumah Kedai
Error in BQ
20,000.00
18.
Paint Road Kerb using emulsion paint type
Error in BQ
54,560.00
2,000.00
136,512.00
weather.
19.
Banglow House ( A,B,C,D,E)
Change in design
626,287.78
20.
Tandas Kolej
Client’s request
198,130.80
21.
Medan Selera
Remesurement
27,987.87
22.
Pasar
Change in design
54,926.76
23.
Perhentian Bas & Teksi
Change in design
19,173.35
24.
Tadika/ IT Centre/Library
S.O instruction, site condition
25.
Surau
Change in design
158,200.00
26.
Kolej Intergrasi Ilmu
Change in design
211,038.75
27.
Dewan – TCT rolform
Error in BQ
294,962.19
28.
TNB Sub Station ( 44’ x 20’ & 44’ x 18’)
To comply TNB requirement
225,000.00
29.
External Works ( Precast Concrete Block Drain,
Remesurement
61631.89
Brick wall to Drain/Rubble
Wall, Box Culverts, Sewerage Pipe, Sewerage
Manhole & Excavation)
30.
JPS Upgrading
To comply JPS requirement
31.
Water Reticulation
Remesurement
398,064.80
32.
Elevated Water Tank & Fencing
Remesurement
917,853.90
33.
Suction Tank
Remesurement
599,397.96
34.
Pilling ( Dewan Makan)
Remesurement
110,000.00
35.
Junction ( Clearing, Drainage, Shoulder, Road
Remesurement
6,609.00
Marking, Electrical Works)
8,342,637.67
763,891.08
36.
Pilling Works
Remesurement, Site condition
37.
R.C Piles
Remesurement
436,406.00
38.
Transport, Handle, Pitch and Drive
Remesurement
117.463.50
39.
Extension Joints
Remesurement
15,769.10
40.
Cut-Off Piles
Remesurement
32,752.00
41.
Load Testing
Remesurement
17,600,00
42.
Static Load Test
Remesurement
7,000.00
43.
Subsequent Static Load Test and Drive
Remesurement
6,000.00
44.
Piling Record
Remesurement
2,400.00
45.
Mackintosh Probes
Remesurement
9,000.00
46.
Tandas Hentian Bas
Remesurement
57,982.00
47.
Dewan Makan Kolej
Remesurement
48,556.00
10,000.00
Total
12,983,381.04
Net total
12,983,381.04
6.4
Case Study 3
The case study 3 which summaries the background of the Project of
Cadangan Pembagunan Fasa 1 Feldajaya Utara, Felda Trolak, Mukim Sungkai Perak.
The parties involved are the client which is Lembaga Kemajuan Tanah Persekutuan
(FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and Quantity
Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer, the architect
is W&W Architect and Aruz Zaman Sdn. Bhd. as the contractor.
The contract no of this project is contract 100000464. The original contract
sum is value at RM 38,000,000.00 and adjustment to Contract Sum RM15,820,340.00
which made the final contract sum to RM 53,820,340.00. The contract period for this
project is 72 weeks and the date of site possession is on 23thJune 2003 which the
original of completion date on 20th December 2004, but the actual completion date is
on 15th August 2006 with the defect Liability Period which on 15th March 2008.
List of the variation works as shown in Table 6.2 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are thirty five (35) variation works involved including remeasurement works.
Table 6.3 : List of variation works for case study 3
V.O
TOTAL (RM)
NO
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Gutter & Flashing (for Banglow type
Error in BQ
130,954.50
A,B,C,D,E, Surau)
2.
Diversion Main Drain (Section A,B, & C)
To comply JPS requirement, changes
in design, & Error in BQ
3.
2,053,206.00
TCT Rolform (for Dewan, Rumah Kedai,
Kolej Kini, Tadika, Pasar, Tandas Awam,
Asrama, Medan Selera, Perhentian Bas &
Teksi & Dewan Makan)
Error in BQ
656,554.48
4.
Additional Unit Rumah Kedai
Client’s request
209,950.00
5.
Additional Tandas Kolej Kini (Pile cap
Client’s request , changes in design
design)
74,700.90
OMISSION
6.
Additional Kolej Kini ( Pipe Footing Pad)
Client’s request, changes in design
77,461.32
7.
Additional Tandas Awam
Client’s request
47,888.10
8.
Additional Building Dewan Makan
Client’s request
327,317.70
9.
Additional Building IKS
Client’s request
2,992,400.00
10.
Additional Rock Excavation
Suite site condition
11.
Plate Bearing Test
Client’s request
12.
Additional Lampu isyarat for Persimpangan
To comply JKR requirement
Besout
593,396.00
13,800.00
2,000,000.00
13.
Additional Jalan susur keluar
To comply JKR requirement
1,200,000
14.
Changes of design of road
To comply JKR requirement
754,960.00
15.
Additional Pilling Works
Remesurement , site condition
1,250,00.00
16.
Additional Earthwork at Suction Tank
Remesurement
14,473.20
17.
External Works
Remesurement
2,300,750.00
18.
Changes Pipe HDPE to MS
To comply JBA requirement
8,140,000.00
19.
Preliminary Hoarding
Remesurement
43,000.00
20.
Ancillary Building (TNB, Dewan & Pasar)
Remesurement
585,000.00
Water Reticulation
Remesurement
45,000.00
21.
Electrical Works (Pasar, Dewan, Kolej &
Remesurement
415,000.00
Tadika)
22.
Additional Dewan & Pasar-M&E works
Remesurement
150,000.00
23.
Prime Cost ( STP, Meru Tanda, Landscape
Client’s request
100,000.00
Works, Playground Equipment)
24.
R.C concrete sump
Error in BQ
48,528.00
25.
Hose Reel Tank & Pump House at Tadika
Error in BQ
65,000.00
26.
Additional for Air-condition (Kolej)
Error in BQ
100,000.00
27.
Main Switch Board (MSB) and Cable
Error in BQ
300,000.00
28.
Slope Trimming & Hydro seeding Works
Error in BQ
50,000.00
29.
Additional for 3 phase at Rumah Kedai
Error in BQ
20,000.00
30.
Paint Road Kerb using emulsion paint type
Error in BQ
50,000.00
weather.
31.
Additional Tingkap pintu, Frosted glass
Error in BQ
20,000.00
32.
Water proofing (banglow & building)
Error in BQ
70,000.00
33.
Changes Jubin at Car porch Bungalow
Error in BQ
80,000.00
34.
House
35.
Railing
Error in BQ
200,000.00
Total
Net total
15,820,340.00
60
6.5
Result and Analysis
a.
The result of the types of variation and the factors that influence to the
variation
From the three case studies above, the analysis and the result of the types of
variations were tabulated in the Table 6.4. While the factors that influence the
variation can be shown in the 6.5. Based on the Table 6.5 the percentage of the factors
that influence the variation have been summaries in the Figure 6.1
Table 6.4 : Types of variations
Item
1.
2.
3.
Types of variation
Example
According to identity of the
Client, consultant, authority
initiator
and contractor etc.
According to nature of
Addition, omission and
variation
combination of both.
The consequence or effect of
Financial consideration or time
variation
implication (adjustment in the
contract sum)
61
Table 6.5 : Factors that influence to variations
Item
Factors influence the
No. of variations
variations
Case
Case
Case
Study 1
Study 2
Study 3
Total
1
Client’s request
7
1
5
13
2
Change in design
3
5
3
11
3
Errors in Bills of
10
16
14
40
15
5
4
24
Quantities
4
Change due to Local
Authority requirement
5
S.O’s instruction
-
1
-
1
6
Remeasurement
5
18
8
31
7
Suit site condition
4
1
1
6
5%
25%
Client’s request
10%
9%
Change in design
Errors in Bills of Quantities
1%
19%
32%
Change due to Local
Authority requirement
S.O’s instruction
Remeasurement
Suit site condition
Figure 6.1 : Percentage factors that influence to variations
62
b.
The result of the problems that influence and the implication to the
variation
From the three case studies above, many problems that influence to variation
works. The variation works also give an implication to the construction itself. The
result of the problem that influence to the variation was identified in two categories
which during planning stage and construction stage as shown in Table 6.6.
Table 6.6 : Problem that influence to variations
List of problem that influence to variation
Item
1.
Planning Stage
Construction Stage
No feasibilities study of the
No survey work
project
2.
No proper project brief
No proper soil investigation
3.
Time constraint for preparing
Misunderstanding in communication
design and contract
between project team
documentation
4.
Lack of checking on detailing
Unexpected condition during
design and drawing
construction such as climate changes
such as heavy rain and lightening can
cause damage to the site of
construction.
5.
Lack of checking on quality
Unforeseen condition such as found
tender documentation
rock under ground level, high water
table and fossil
63
The major implication was identified as cost overrun as shown in Table 6.7
and the percentage that summarized the cost overrun shows in Figure 6.2. While the
delays of the construction work was identified as shown in Table 6.8. The percentage
of implication to the variation was shown in the Figure 6.3 which the result shows the
case study 1 was delay more than 51% compared to two case studies above.
Table 6.7 : The implication of variation – Cost Overrun
Bil
Case
Implication of variations
Study
Cost Overrun
Original
Final
Variation
Percent
Contract
Contract
order
(%) of
Amount
Amount
total
variation
1
Case
32,747,987.00
49,369,205.60
16,621,218.60
51%
45,000,000.00
57,983,300.00
12,983,300.00
42%
38,000,000.00
53,820,340.00
15,820,340.00
29%
115,747,987.00
161,172,845.60
45,424,858.60
Study 1
2
Case
Study 2
3
Case
Study 3
Total
64
42%
51%
Case study 1
Case study 2
Case study 3
29%
Figure 6.2 : Percentage implication to variation – Cost Overrun
Table 6.8 : The implication of variation – Delay
Bil
1
Case
Implication of variations
Study
Delay
Case
Original
Final
Delay
Percent
Contract
Contract
(days)
(%) of
Period
Period
504
700
196
39%
504
1,008
504
100%
504
952
448
89%
1,512
2660
1,148
total delay
Study 1
2
Case
Study 2
3
Case
Study 3
Total
65
39%
89%
Case Study 1
Case Study 2
Case Study 3
100%
Figure 6.3 :The implication of variation – Delay
c.
The result of the strategy action that can be taken to minimize variation
The last section of the case study is to identify the strategy action that can be
taken to minimize or control the variation work. The result can be tabulated in table
6.9 as shown below.
66
Table 6.9 : Strategy action can be taken to minimise or control variation
Item
Strategy action can be taken to minimise or control
variation
Planning Stage
1.
Construction Stage
Proper feasibilities study of the Proper survey work
project
2.
Clear and thorough project
Proper soil investigation
brief
3.
Appropriate use of
all day check at site
procurement strategy
4.
More thorough detailing of
fully investigate.
design.
5.
6.6
Quality contract
comply with all authority
documentation
requirement
Finding s and Discussion
This section discussed the findings of this study. The results of the study are
analysed and discussed in the following sequence to answer the objectives mentioned
in Chapter 1. The analysis sequence is organized and presented the data in some
meaningful and logical order. After the data have been organized and presented into
description manner, it is then analyses them in order to draw inference about the data
obtained. The discussion are included the factor that influence the variation, the
problems that can cause the problem and then followed by the implication of variation
work. Finally, discuss on the strategy action that can be taken to minimize or control
variation work. Discussion on the finding will be based on the case study and
interview responding to the objectives.
67
a.
First Objective : To identify the types of variation and the factor that
influences the variation.
This section will discuss the finding based on the results obtained from the
interview and the case study in which the types of variation and the factors of
variation were identified. Table 6.4 shows the result types of variation and the factors
that influence this.
Table 6.4 : Types of variation
Item
1.
Types of variation
Example
The identity of the initiator
client, consultant, authority and
contractor
2.
The nature of variation
Nature of the work, changes in
the condition of contract and
included omission and addition
and combination of both
3.
The consequence or effect of Financial consideration or time
variation
implication (adjustment in the
contract sum)
From the Table 6.4, it can be concluded that, there are three types of variation
that can be categorized by the identity of initiator which can be change to one another
such as client or employer, consultant such as architect or engineer, the authority
requirement and also the contractor. The nature of variation such as the nature of
work such as site condition or weather, any changes in the condition of contract and
the variation by the omission or addition work during construction. The third type of
variation shows that the financial consequence or effect of variation such as financial
consideration or time implication such as adjustment in the contract sum during
construction in progress.
68
Table 6.10 : The Factors that influence the variations(%)
Item Factors influence the variations
(%)
1
Client’s request
10
2
Change in design
9
3
Errors in Bills of Quantities
32
4
Change due to Local Authority
19
requirement
5
S.O’s instruction
1
6
Remeasurement
25
7
Suit site condition
5
From the Table 6.10, it can be concluded that, the major factor that influence
the variation work is comes from the Error in Bill of Quantities. From the table 6.10
above, it shows that 32% of the variation works comes from the Error in Bill of
Quantities. Almost every project has a variation from Error in Bill of Quantities.
Besides that, the re-measurements of the work also contribute to the variation
of works. From the Table 6.10 , it can see that the re-measurement contribute 25%
and follow by Local Authority’s requirement which from the case studies above, it
shows that the Local authority contribute 19% to variation works. It is important to
follow the regulation from the Local Authority because if the requirement not
properly followed, it may cause the variation works. From example from the case
study above, variation works arise where the thick of the crusher-run of road used in
the project not according to the specification from the JKR. Therefore the changes
have to follow as the authority requirement.
Beside that, the client request also contribute to the variation works which
from the Table 6.10 shows 10%, and followed by the variation works which is
69
changes in design which is 9%, suit the site condition is 5%, and also from the case
studies above, it shows that there is only 1% of S.O’s instruction that contribute to the
variation works.
b.
Second Objective : To identify the problems and the implication to the
variation of the construction starts from planning until construction
stage.
From the factor above, the problem that influence of variation has been
identified which can be divided into two stages. The first stage was during planning
stage and the second was during construction stage. The major problem that
influences variation during planning stage and construction stage were identified as
shown in table 6.5.
Uncorrected planning during early stage of the project implementation will
give implication to the construction especially in the variation work. No proper
feasibility studies carried out during early stage of the projects. This problem occur
when the client insist the project will be completed in certain dates due to sometimes
political issues. This will influence to the variation. Therefore it is important that the
feasibility studies of the project should be done in proper manner to minimize or
control the variation to the construction. Besides that, no proper project brief can
influence to the variation, followed by the time constraint for preparing design and
contract document which can cause mistake and error in the drawing and
documentation. The lacking of checking on detail design and drawing which also
contribute to the variation and finally, the lacking of checking on the quality of tender
document also can influence to the variation.
70
Table 6.6 : Problem that influence to variations
List of problem that can cause of variation
Item
1.
Planning Stage
Construction Stage
No feasibilities study of the
No survey work
project
2.
No proper project brief
No proper soil investigation
3.
Time constraint for preparing
Misunderstanding in
design and contract
communication between project
documentation
team
Lack of checking on detailing
Unexpected condition during
design and drawing
construction such as climate
4.
changes such as heavy rain and
lightening can cause damage to
the site of construction.
5.
Lack of checking on quality
Unforeseen condition such as
tender documentation
found rock under ground level,
high water table and fossil
While the implication of variation from the three case studies above, it can be
seen that the variation works give an implication to the construction itself. The
obvious implication of the variations is show in the Table 6.11 which cost overruns
that carried by the contractor should be paid as extra work or variation.
71
Table 6.11 : Cost Overrun for Case Study 1
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
32,747,987.00
16,6218.60
16,6218.00
Final Contract Amount
49,369,205.60
From the case study 1, it can be concluded that the total net of cost for
variation works is RM 16,621,218.00 to the contract sum. This means that the
contract sum must be added for amount of RM16,621,218.00 which increase 51%
form the original contract amount. The final contract amount is RM49,369,205.60.
The summary of this result show in the Table 6.11 above.
Table 6.12 : Cost Overrun for Case Study 2
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
45,000,000.00
12,983,300.00
12,983,300.00
Final Contract Amount
57,983,300.00
From the case study 2, have same implication which is cost overrun because of
the
variation
works.
The
original
contract
amount
increase
42%
from
RM45,000,000.00 to RM 57,983,300.00 which the total net of variation works are
RM 12,983,300.00. The summary of this result shows in the Table 6.12.
72
Table 6.13 : Cost Overrun for Case Study 3
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
38,000,000.00
15,820,340.00
15,820,340.00
Final Contract Amount
53,820,340.00
From the case study 3, it can be concluded that the variation works involved
only in net additional works which cost of RM 15,820,340.00 to be added to the
original contract amount. The original contract amount increase 29% from RM
38,000,000.00 to RM 53,820,340.00. The summary of this result shows in the Table
6.13.
The other implication to the variation is delay of the project. From three case
studies show that almost all the project was delay due to the variation order. Table
6.14 shown delay in the construction period due to the variation works.
Table 6.14 : Delay
Bil
Case Study
Implication of variations
Delay
Original
Final
Delay
(%) of
Contract
Contract
(days)
total delay
Period
Period
1
Case Study 1
504
700
196
39%
2
Case Study 2
504
1,008
504
100%
3
Case Study 3
504
952
448
89%
73
From the Table 6.14 above, shows that the case study 2 was delay 100% of the
original contract period which contribute about 1,008 days compare of cased study 3
which contribute 89% of delay about 952 days, then followed by the case study 1
which contribute 39% of delay about 700 days. This result shows that the case study 2
was delay the most in the construction work compared the other two case studies.
c.
Third Objective : To identify the strategy action that can be taken to
minimize or control the variation.
This section discussed the finding based on the result obtained from the cased
study and interview to identify the strategy action that can be taken to minimize or
control the variation works. The strategy action can be taken as early in planning
stage and also construction stage there are identified as:
Comprehensive site investigation; based on the case study above, there are a
numbers of the variation occur caused due to suit the site condition. It is clear that
before the construction start, it need a comprehensive site investigation. For example
of site investigation is topographical survey and geotechnical investigation. Although
the cost incurred in the site investigation is usually a small fraction of the total project,
but the clients or related parties do not appreciate the importance of the survey and no
investigation is carried out, the construction may turns out to be not good, if survey is
properly done, the variation works might be reduced and cost is under control.
Quality contract documentation; quality in contract documentation is
important because it will influence the eventual outcome of the contract. The
document must be complete in order to avoid problems in future. It must clearly
define the task and works that need to be done by the contractor especially in bills of
quantities. From the case studies above, the errors in bills of quantities contribute to
the variation works. Poorly prepared documents will result in uncertainty future.
74
Besides that, if there is variation works, the contractor must ensure that he has
clearly defined procedures for identifying variations and that he must conforms to full
requirements of the contract. Hence the contract must be clearly presented. The
implication if the contract document prepared is incomplete, it will be the causes of
cost overruns.
More thorough detailing in design; detail design can reduce variation in future.
The design developed in depth at the pre-contract stage with the cooperation must be
developed in order to avoid the claims and dispute. Any changes later will result in
abortive works and almost certainly in additional cost. From the case studies above,
changes in design will result the variation works. In order to control the variations, the
design team must properly design with take all the consideration including site
condition and requirement by the Local Authority into the design.
Compliance with local authority’s requirement; Local authority involved in
the construction such as Fire and Resque Department (BOMBA), Telecom, Tenaga
Nasional Berhad (TNB), Jabatan Bekalan Air (JBA) and others. All these authority
have their own regulation that must be followed during the construction. Most of the
variation works are caused by the changes in Local Authority’s requirement. For
example, in the case studies above, there are twenty four (24) variation works are
caused by the Local Authority’s requirement. If the works are properly done and
followed the entire requirement stated by the Local authority it will reduce the
numbers of variation of works.
75
6.7
Summary
The final result of the analysis was listed. According to the result analysis it
shows that there are three types of variation and the most factor that influence the
variation is Error in Bill of Quantities. And there are five problems that can cause
variation during planning stage and construction stage. Therefore the implication of
variation it shows that the cost overruns of the project and the delay in the
construction period were the most implication of variation. Lastly, the strategy action
that can be taken to minimize or control the variation is focusing during planning
stage and also construction stage.
45
6.2
Case Study 1
The case study 1 which summaries the background of the Project of
Cadangan Pembangunan Feldajaya Mempaga, Mukim Sabai, Pahang Darul Makmur.
The parties involved are the client which is Lembaga Kemajuan Tanah
Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and
Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer,
the architecht are W&W Architect and Bauran Bina Sdn. Bhd. as the contractor.
The contract no of this project is contract 100000445. The original contract
sum
is
value
at
RM
32,747,987.00
and
adjustment
to
Contract
Sum
RM16, 621,218.60 which made the final contract sum to RM 49,369,205.60. The
contract period for this project is 72 weeks and the date of site possession is on
9thJune 2003 which the original of completion date on 15th March 2005, but the actual
completion date is on 30th October 2006 with the defect Liability Period which on
30thApril 2007.
List of the variation works as shown in Table 6.1 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are forty four (44) variation works involved including
re-measurement works.
Table 6.1 : List of variation works for case study 1
V.O
NO
TOTAL(RM)
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Outside Drain
To comply JPS requirement
2,705,545.00
2.
Paip Retikulasi Kumbahan
To comply JPP requirement
280,000.00
3.
Side Drain
Site Condition
294,765.00
4.
To build Road & Car Porch
To comply JKR requirement
1,889,946.00
5.
Upgrading laluan masuk utama
To comply JKR requirement
1,062,600.00
6.
To prepare Road to Water tank
To comply JBA requirement
860,000.00
7.
Kolam takungan
To comply JPS requirement
1,064,000.00
8.
Changes Jajaran Paip Retikulasi
To comply JPP requirement
Kumbahan
9.
Planting grass for awaken the slope
(Behind Bungalow & TNB 3)
93,250.00
To comply Majlis Daerah requirement
1,378,545.00
OMISSION
10.
Strengthening Bungalow Structure
Site Condition
50,000.00
11.
Changes Jubin at Car porch
Error in BQ
80,000.00
Bungalow House
12.
Dewan Makan Kolej KINI
13.
Additional Tandas at Academic
Changes on design
450,000.00
Changes on design
240,000.00
Kolej KINI
Changes on design
651,260.00
15.
Changes Rumah Kedai
Error in BQ
353,000.00
16.
Changes Building Tadika/Pusat IT.
Error in BQ
148,600.00
17.
Road crossing TNB
To comply TNB requirement
12,348.00
18.
Bungalows main entrance
To comply TNB requirement
102,900.00
19.
Bungalows driveway with crushed
To comply TNB requirement
55,000.00
To comply TNB requirement
9,000.00
Block Kolej Kini (2 Unit)
14.
Changes structure building design
run & premix.
20.
Portion of main road with crushed
run and premix
21.
Grouting ( Prelim, Medan selera,
Site condition
347,807.00
Bungalow 6B,37C,72A)
22.
Additional Tingkap pintu, Frosted
Error in BQ
glass (Bungalow A)
39,000.00
15,000.00
23.
Changes lockset
Client’s request
24.
Additional Pintu D2 Kitchen
Error in BQ
24,000.00
1,303,797.80
Bungalow
25.
Changes Pipe HDPE to MS
To comply JBA requirement
26.
Preliminary Hoarding
Remesurement
27.
Ancillary Building (TNB, Dewan &
Remesurement
35,375.00
146,000.00
60,000.00
41,000.00
Pasar)
28
Water Reticulation
Remesurement
343,000.00
29.
Electrical Works (Pasar, Dewan,
Remesurement
107,536.00
Remesurement
330,783.52
Kolej & Tadika)
30.
Additional Dewan & Pasar-M&E
works
31.
Prime Cost ( STP, Meru Tanda,
Client’s request
30,000.00
959,971.30
Landscape Works, Playground
Equipment)
32.
Piling works
Site Condition
33.
TCT rolform
Error in BQ
55,800.00
34.
R.C concrete sump
Error in BQ
21,000.00
35.
Gutter and Flashing
Error in BQ
150,000.00
36.
Railing
Error in BQ
301,000.00
37.
Box culvert
To comply JKR requirement
845,000.00
38.
Change location of Kilang Bata
Client’s request
39.
Water proofing (banglow & building) Error in BQ
40.
Change thk of crusher run
To comply JKR requirement
41.
Additional building- tandas awam
Client’s request
82,000.00
42.
Change size of surau
Client’s request
280,000.00
43.
Access car porch
Client’s request
345,000.00
44.
Perasmian Hari Peneroka
Client’s request
426,478.00
18,000.00
71,000.00
1,000,000.00
Total
18,155,613.10
Net total
16,621,218.60
1,533,694.50
6.3
Case Study 2
The case study 2 which summaries the background of the Project of
Cadangan Pembagunan Fasa 1 Feldajaya Selatan. Mukim Serting Daerah Jempol,
Negeri Sembilan, Darul Khusus. The parties involved are the client which is Lembaga
Kemajuan Tanah Persekutuan(FELDA), Felda Engineering Services Sdn. Bhd. as
Project Manager and Quantity Surveyor, Arup Jururunding Sdn. Bhd. As Structural
and M&E Engineer, the architect is W&W Architect and Prinseptek Sdn. Bhd. as the
contractor.
The contract no of this project is contract 100000464. The original contract
sum is value at RM 45,000,000.00 and adjustment to Contract Sum RM12,983,300.00
which made the final contract sum to RM 57,983,300.00. The contract period for this
project is 72 weeks and the date of site possession is on 23thJune 2003 which the
original of completion date on 20th December 2004, but the actual completion date is
on 4th September 2006 with the defect Liability Period which on 4thApril 2008.
List of the variation works as shown in Table 6.2 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are forty seven (47) variation works involved including remeasurement works.
Table 6.2 : List of variation works for case study 2
V.O
TOTAL(RM)
NO
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Supply & lay UPVC
Error in BQ
222,464.90
2.
Construction & completion of Mercu Tanda
Error in BQ
68,000.00
3.
Excavation, Backfilling Sand & Crusher runs.
Error in BQ
( Laluan A1,A2 & A3)
74,400.00
4.
Road crossing Works ( Laluan B1)
Error in BQ
5.
Road Crossing Works ( Laluan Sesalur
Error in BQ
6.
Telekom)
7.
Sand & Bricks ( Bungalow A, B, C, D, & E)
Error in BQ
119,214.00
8.
60A 3 Phase Kiosk meter
Error in BQ
57,200.00
9.
Labour, tools & transportation for installation,
90,000.00
158,000.00
OMISSION
excavation & other works.
Error in BQ
73,920.00
10.
Additional Pillar Board & Telephone Works
Error in BQ
59,900.00
11.
Relocate TNB & Telephone pit at ‘Hentian Bas’
To comply TNB requirement
Block Drains
To comply JPS requirement
12.
Hose Reel Tank & Pump House at Tadika
Error in BQ
67,814.21
13.
Additional for Air (Kolej)
Error in BQ
138,980.00
14.
Main Switch Board (MSB) and Cable
Error in BQ
392,750.00
15.
Slope Trimming & Hydro seeding Works
Error in BQ
81,143.05
16.
Road Crossing for TNB
To comply TNB requirement
20,477.60
17.
Additional for 3 phase at Rumah Kedai
Error in BQ
20,000.00
18.
Paint Road Kerb using emulsion paint type
Error in BQ
54,560.00
2,000.00
136,512.00
weather.
19.
Banglow House ( A,B,C,D,E)
Change in design
626,287.78
20.
Tandas Kolej
Client’s request
198,130.80
21.
Medan Selera
Remesurement
27,987.87
22.
Pasar
Change in design
54,926.76
23.
Perhentian Bas & Teksi
Change in design
19,173.35
24.
Tadika/ IT Centre/Library
S.O instruction, site condition
25.
Surau
Change in design
158,200.00
26.
Kolej Intergrasi Ilmu
Change in design
211,038.75
27.
Dewan – TCT rolform
Error in BQ
294,962.19
28.
TNB Sub Station ( 44’ x 20’ & 44’ x 18’)
To comply TNB requirement
225,000.00
29.
External Works ( Precast Concrete Block Drain,
Remesurement
61631.89
Brick wall to Drain/Rubble
Wall, Box Culverts, Sewerage Pipe, Sewerage
Manhole & Excavation)
30.
JPS Upgrading
To comply JPS requirement
31.
Water Reticulation
Remesurement
398,064.80
32.
Elevated Water Tank & Fencing
Remesurement
917,853.90
33.
Suction Tank
Remesurement
599,397.96
34.
Pilling ( Dewan Makan)
Remesurement
110,000.00
35.
Junction ( Clearing, Drainage, Shoulder, Road
Remesurement
6,609.00
Marking, Electrical Works)
8,342,637.67
763,891.08
36.
Pilling Works
Remesurement, Site condition
37.
R.C Piles
Remesurement
436,406.00
38.
Transport, Handle, Pitch and Drive
Remesurement
117.463.50
39.
Extension Joints
Remesurement
15,769.10
40.
Cut-Off Piles
Remesurement
32,752.00
41.
Load Testing
Remesurement
17,600,00
42.
Static Load Test
Remesurement
7,000.00
43.
Subsequent Static Load Test and Drive
Remesurement
6,000.00
44.
Piling Record
Remesurement
2,400.00
45.
Mackintosh Probes
Remesurement
9,000.00
46.
Tandas Hentian Bas
Remesurement
57,982.00
47.
Dewan Makan Kolej
Remesurement
48,556.00
10,000.00
Total
12,983,381.04
Net total
12,983,381.04
6.4
Case Study 3
The case study 3 which summaries the background of the Project of
Cadangan Pembagunan Fasa 1 Feldajaya Utara, Felda Trolak, Mukim Sungkai Perak.
The parties involved are the client which is Lembaga Kemajuan Tanah Persekutuan
(FELDA), Felda Engineering Services Sdn. Bhd. as Project Manager and Quantity
Surveyor, Arup Jururunding Sdn. Bhd. As Structural and M&E Engineer, the architect
is W&W Architect and Aruz Zaman Sdn. Bhd. as the contractor.
The contract no of this project is contract 100000464. The original contract
sum is value at RM 38,000,000.00 and adjustment to Contract Sum RM15,820,340.00
which made the final contract sum to RM 53,820,340.00. The contract period for this
project is 72 weeks and the date of site possession is on 23thJune 2003 which the
original of completion date on 20th December 2004, but the actual completion date is
on 15th August 2006 with the defect Liability Period which on 15th March 2008.
List of the variation works as shown in Table 6.2 shows the factor that
influence to the variation works and also the cost incurred for each variation work.
For this project, there are thirty five (35) variation works involved including remeasurement works.
Table 6.3 : List of variation works for case study 3
V.O
TOTAL (RM)
NO
DESCRIPTION
FACTORS INFLUENCE V.O
ADDITION
VARIATION WORKS
1.
Gutter & Flashing (for Banglow type
Error in BQ
130,954.50
A,B,C,D,E, Surau)
2.
Diversion Main Drain (Section A,B, & C)
To comply JPS requirement, changes
in design, & Error in BQ
3.
2,053,206.00
TCT Rolform (for Dewan, Rumah Kedai,
Kolej Kini, Tadika, Pasar, Tandas Awam,
Asrama, Medan Selera, Perhentian Bas &
Teksi & Dewan Makan)
Error in BQ
656,554.48
4.
Additional Unit Rumah Kedai
Client’s request
209,950.00
5.
Additional Tandas Kolej Kini (Pile cap
Client’s request , changes in design
design)
74,700.90
OMISSION
6.
Additional Kolej Kini ( Pipe Footing Pad)
Client’s request, changes in design
77,461.32
7.
Additional Tandas Awam
Client’s request
47,888.10
8.
Additional Building Dewan Makan
Client’s request
327,317.70
9.
Additional Building IKS
Client’s request
2,992,400.00
10.
Additional Rock Excavation
Suite site condition
11.
Plate Bearing Test
Client’s request
12.
Additional Lampu isyarat for Persimpangan
To comply JKR requirement
Besout
593,396.00
13,800.00
2,000,000.00
13.
Additional Jalan susur keluar
To comply JKR requirement
1,200,000
14.
Changes of design of road
To comply JKR requirement
754,960.00
15.
Additional Pilling Works
Remesurement , site condition
1,250,00.00
16.
Additional Earthwork at Suction Tank
Remesurement
14,473.20
17.
External Works
Remesurement
2,300,750.00
18.
Changes Pipe HDPE to MS
To comply JBA requirement
8,140,000.00
19.
Preliminary Hoarding
Remesurement
43,000.00
20.
Ancillary Building (TNB, Dewan & Pasar)
Remesurement
585,000.00
Water Reticulation
Remesurement
45,000.00
21.
Electrical Works (Pasar, Dewan, Kolej &
Remesurement
415,000.00
Tadika)
22.
Additional Dewan & Pasar-M&E works
Remesurement
150,000.00
23.
Prime Cost ( STP, Meru Tanda, Landscape
Client’s request
100,000.00
Works, Playground Equipment)
24.
R.C concrete sump
Error in BQ
48,528.00
25.
Hose Reel Tank & Pump House at Tadika
Error in BQ
65,000.00
26.
Additional for Air-condition (Kolej)
Error in BQ
100,000.00
27.
Main Switch Board (MSB) and Cable
Error in BQ
300,000.00
28.
Slope Trimming & Hydro seeding Works
Error in BQ
50,000.00
29.
Additional for 3 phase at Rumah Kedai
Error in BQ
20,000.00
30.
Paint Road Kerb using emulsion paint type
Error in BQ
50,000.00
weather.
31.
Additional Tingkap pintu, Frosted glass
Error in BQ
20,000.00
32.
Water proofing (banglow & building)
Error in BQ
70,000.00
33.
Changes Jubin at Car porch Bungalow
Error in BQ
80,000.00
34.
House
35.
Railing
Error in BQ
200,000.00
Total
Net total
15,820,340.00
60
6.5
Result and Analysis
a.
The result of the types of variation and the factors that influence to the
variation
From the three case studies above, the analysis and the result of the types of
variations were tabulated in the Table 6.4. While the factors that influence the
variation can be shown in the 6.5. Based on the Table 6.5 the percentage of the factors
that influence the variation have been summaries in the Figure 6.1
Table 6.4 : Types of variations
Item
1.
2.
3.
Types of variation
Example
According to identity of the
Client, consultant, authority
initiator
and contractor etc.
According to nature of
Addition, omission and
variation
combination of both.
The consequence or effect of
Financial consideration or time
variation
implication (adjustment in the
contract sum)
61
Table 6.5 : Factors that influence to variations
Item
Factors influence the
No. of variations
variations
Case
Case
Case
Study 1
Study 2
Study 3
Total
1
Client’s request
7
1
5
13
2
Change in design
3
5
3
11
3
Errors in Bills of
10
16
14
40
15
5
4
24
Quantities
4
Change due to Local
Authority requirement
5
S.O’s instruction
-
1
-
1
6
Remeasurement
5
18
8
31
7
Suit site condition
4
1
1
6
5%
25%
10%
Client’s request
9%
Change in design
Errors in Bills of Quantities
1%
19%
32%
Change due to Local
Authority requirement
S.O’s instruction
Remeasurement
Suit site condition
Figure 6.1 : Percentage factors that influence to variations
62
b.
The result of the problems that influence and the implication to the
variation
From the three case studies above, many problems that influence to variation
works. The variation works also give an implication to the construction itself. The
result of the problem that influence to the variation was identified in two categories
which during planning stage and construction stage as shown in Table 6.6.
Table 6.6 : Problem that influence to variations
List of problem that influence to variation
Item
1.
Planning Stage
Construction Stage
No feasibilities study of the
No survey work
project
2.
No proper project brief
No proper soil investigation
3.
Time constraint for preparing
Misunderstanding in communication
design and contract
between project team
documentation
4.
Lack of checking on detailing
Unexpected condition during
design and drawing
construction such as climate changes
such as heavy rain and lightening can
cause damage to the site of
construction.
5.
Lack of checking on quality
Unforeseen condition such as found
tender documentation
rock under ground level, high water
table and fossil
63
The major implication was identified as cost overrun as shown in Table 6.7
and the percentage that summarized the cost overrun shows in Figure 6.2. While the
delays of the construction work was identified as shown in Table 6.8. The percentage
of implication to the variation was shown in the Figure 6.3 which the result shows the
case study 1 was delay more than 51% compared to two case studies above.
Table 6.7 : The implication of variation – Cost Overrun
Bil
Case
Implication of variations
Study
Cost Overrun
Original
Final
Variation
Percent
Contract
Contract
order
(%) of
Amount
Amount
total
variation
1
Case
32,747,987.00
49,369,205.60
16,621,218.60
51%
45,000,000.00
57,983,300.00
12,983,300.00
42%
38,000,000.00
53,820,340.00
15,820,340.00
29%
115,747,987.00
161,172,845.60
45,424,858.60
Study 1
2
Case
Study 2
3
Case
Study 3
Total
64
42%
51%
Case study 1
Case study 2
Case study 3
29%
Figure 6.2 : Percentage implication to variation – Cost Overrun
Table 6.8 : The implication of variation – Delay
Bil
1
Case
Implication of variations
Study
Delay
Case
Original
Final
Delay
Percent
Contract
Contract
(days)
(%) of
Period
Period
504
700
196
39%
504
1,008
504
100%
504
952
448
89%
1,512
2660
1,148
total delay
Study 1
2
Case
Study 2
3
Case
Study 3
Total
65
39%
89%
Case Study 1
Case Study 2
Case Study 3
100%
Figure 6.3 :The implication of variation – Delay
c.
The result of the strategy action that can be taken to minimize variation
The last section of the case study is to identify the strategy action that can be
taken to minimize or control the variation work. The result can be tabulated in table
6.9 as shown below.
66
Table 6.9 : Strategy action can be taken to minimise or control variation
Item
Strategy action can be taken to minimise or control
variation
Planning Stage
1.
Construction Stage
Proper feasibilities study of the Proper survey work
project
2.
Clear and thorough project
Proper soil investigation
brief
3.
Appropriate use of
all day check at site
procurement strategy
4.
More thorough detailing of
fully investigate.
design.
5.
6.6
Quality contract
comply with all authority
documentation
requirement
Finding s and Discussion
This section discussed the findings of this study. The results of the study are
analysed and discussed in the following sequence to answer the objectives mentioned
in Chapter 1. The analysis sequence is organized and presented the data in some
meaningful and logical order. After the data have been organized and presented into
description manner, it is then analyses them in order to draw inference about the data
obtained. The discussion are included the factor that influence the variation, the
problems that can cause the problem and then followed by the implication of variation
work. Finally, discuss on the strategy action that can be taken to minimize or control
variation work. Discussion on the finding will be based on the case study and
interview responding to the objectives.
67
a.
First Objective : To identify the types of variation and the factor that
influences the variation.
This section will discuss the finding based on the results obtained from the
interview and the case study in which the types of variation and the factors of
variation were identified. Table 6.4 shows the result types of variation and the factors
that influence this.
Table 6.4 : Types of variation
Item
1.
Types of variation
Example
The identity of the initiator
client, consultant, authority and
contractor
2.
The nature of variation
Nature of the work, changes in
the condition of contract and
included omission and addition
and combination of both
3.
The consequence or effect of Financial consideration or time
variation
implication (adjustment in the
contract sum)
From the Table 6.4, it can be concluded that, there are three types of variation
that can be categorized by the identity of initiator which can be change to one another
such as client or employer, consultant such as architect or engineer, the authority
requirement and also the contractor. The nature of variation such as the nature of
work such as site condition or weather, any changes in the condition of contract and
the variation by the omission or addition work during construction. The third type of
variation shows that the financial consequence or effect of variation such as financial
consideration or time implication such as adjustment in the contract sum during
construction in progress.
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Table 6.10 : The Factors that influence the variations(%)
Item Factors influence the variations
(%)
1
Client’s request
10
2
Change in design
9
3
Errors in Bills of Quantities
32
4
Change due to Local Authority
19
requirement
5
S.O’s instruction
1
6
Remeasurement
25
7
Suit site condition
5
From the Table 6.10, it can be concluded that, the major factor that influence
the variation work is comes from the Error in Bill of Quantities. From the table 6.10
above, it shows that 32% of the variation works comes from the Error in Bill of
Quantities. Almost every project has a variation from Error in Bill of Quantities.
Besides that, the re-measurements of the work also contribute to the variation
of works. From the Table 6.10 , it can see that the re-measurement contribute 25%
and follow by Local Authority’s requirement which from the case studies above, it
shows that the Local authority contribute 19% to variation works. It is important to
follow the regulation from the Local Authority because if the requirement not
properly followed, it may cause the variation works. From example from the case
study above, variation works arise where the thick of the crusher-run of road used in
the project not according to the specification from the JKR. Therefore the changes
have to follow as the authority requirement.
Beside that, the client request also contribute to the variation works which
from the Table 6.10 shows 10%, and followed by the variation works which is
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changes in design which is 9%, suit the site condition is 5%, and also from the case
studies above, it shows that there is only 1% of S.O’s instruction that contribute to the
variation works.
b.
Second Objective : To identify the problems and the implication to the
variation of the construction starts from planning until construction
stage.
From the factor above, the problem that influence of variation has been
identified which can be divided into two stages. The first stage was during planning
stage and the second was during construction stage. The major problem that
influences variation during planning stage and construction stage were identified as
shown in table 6.5.
Uncorrected planning during early stage of the project implementation will
give implication to the construction especially in the variation work. No proper
feasibility studies carried out during early stage of the projects. This problem occur
when the client insist the project will be completed in certain dates due to sometimes
political issues. This will influence to the variation. Therefore it is important that the
feasibility studies of the project should be done in proper manner to minimize or
control the variation to the construction. Besides that, no proper project brief can
influence to the variation, followed by the time constraint for preparing design and
contract document which can cause mistake and error in the drawing and
documentation. The lacking of checking on detail design and drawing which also
contribute to the variation and finally, the lacking of checking on the quality of tender
document also can influence to the variation.
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Table 6.6 : Problem that influence to variations
List of problem that can cause of variation
Item
1.
Planning Stage
Construction Stage
No feasibilities study of the
No survey work
project
2.
No proper project brief
No proper soil investigation
3.
Time constraint for preparing
Misunderstanding in
design and contract
communication between project
documentation
team
Lack of checking on detailing
Unexpected condition during
design and drawing
construction such as climate
4.
changes such as heavy rain and
lightening can cause damage to
the site of construction.
5.
Lack of checking on quality
Unforeseen condition such as
tender documentation
found rock under ground level,
high water table and fossil
While the implication of variation from the three case studies above, it can be
seen that the variation works give an implication to the construction itself. The
obvious implication of the variations is show in the Table 6.11 which cost overruns
that carried by the contractor should be paid as extra work or variation.
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Table 6.11 : Cost Overrun for Case Study 1
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
32,747,987.00
16,6218.60
16,6218.00
Final Contract Amount
49,369,205.60
From the case study 1, it can be concluded that the total net of cost for
variation works is RM 16,621,218.00 to the contract sum. This means that the
contract sum must be added for amount of RM16,621,218.00 which increase 51%
form the original contract amount. The final contract amount is RM49,369,205.60.
The summary of this result show in the Table 6.11 above.
Table 6.12 : Cost Overrun for Case Study 2
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
45,000,000.00
12,983,300.00
12,983,300.00
Final Contract Amount
57,983,300.00
From the case study 2, have same implication which is cost overrun because of
the
variation
works.
The
original
contract
amount
increase
42%
from
RM45,000,000.00 to RM 57,983,300.00 which the total net of variation works are
RM 12,983,300.00. The summary of this result shows in the Table 6.12.
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Table 6.13 : Cost Overrun for Case Study 3
ITEM
DESCRIPTION
OMISSION
1.
Original contract Amount
2.
Net Addition
ADDITION
38,000,000.00
15,820,340.00
15,820,340.00
Final Contract Amount
53,820,340.00
From the case study 3, it can be concluded that the variation works involved
only in net additional works which cost of RM 15,820,340.00 to be added to the
original contract amount. The original contract amount increase 29% from RM
38,000,000.00 to RM 53,820,340.00. The summary of this result shows in the Table
6.13.
The other implication to the variation is delay of the project. From three case
studies show that almost all the project was delay due to the variation order. Table
6.14 shown delay in the construction period due to the variation works.
Table 6.14 : Delay
Bil
Case Study
Implication of variations
Delay
Original
Final
Delay
(%) of
Contract
Contract
(days)
total delay
Period
Period
1
Case Study 1
504
700
196
39%
2
Case Study 2
504
1,008
504
100%
3
Case Study 3
504
952
448
89%
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From the Table 6.14 above, shows that the case study 2 was delay 100% of the
original contract period which contribute about 1,008 days compare of cased study 3
which contribute 89% of delay about 952 days, then followed by the case study 1
which contribute 39% of delay about 700 days. This result shows that the case study 2
was delay the most in the construction work compared the other two case studies.
c.
Third Objective : To identify the strategy action that can be taken to
minimize or control the variation.
This section discussed the finding based on the result obtained from the cased
study and interview to identify the strategy action that can be taken to minimize or
control the variation works. The strategy action can be taken as early in planning
stage and also construction stage there are identified as:
Comprehensive site investigation; based on the case study above, there are a
numbers of the variation occur caused due to suit the site condition. It is clear that
before the construction start, it need a comprehensive site investigation. For example
of site investigation is topographical survey and geotechnical investigation. Although
the cost incurred in the site investigation is usually a small fraction of the total project,
but the clients or related parties do not appreciate the importance of the survey and no
investigation is carried out, the construction may turns out to be not good, if survey is
properly done, the variation works might be reduced and cost is under control.
Quality contract documentation; quality in contract documentation is
important because it will influence the eventual outcome of the contract. The
document must be complete in order to avoid problems in future. It must clearly
define the task and works that need to be done by the contractor especially in bills of
quantities. From the case studies above, the errors in bills of quantities contribute to
the variation works. Poorly prepared documents will result in uncertainty future.
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Besides that, if there is variation works, the contractor must ensure that he has
clearly defined procedures for identifying variations and that he must conforms to full
requirements of the contract. Hence the contract must be clearly presented. The
implication if the contract document prepared is incomplete, it will be the causes of
cost overruns.
More thorough detailing in design; detail design can reduce variation in future.
The design developed in depth at the pre-contract stage with the cooperation must be
developed in order to avoid the claims and dispute. Any changes later will result in
abortive works and almost certainly in additional cost. From the case studies above,
changes in design will result the variation works. In order to control the variations, the
design team must properly design with take all the consideration including site
condition and requirement by the Local Authority into the design.
Compliance with local authority’s requirement; Local authority involved in
the construction such as Fire and Resque Department (BOMBA), Telecom, Tenaga
Nasional Berhad (TNB), Jabatan Bekalan Air (JBA) and others. All these authority
have their own regulation that must be followed during the construction. Most of the
variation works are caused by the changes in Local Authority’s requirement. For
example, in the case studies above, there are twenty four (24) variation works are
caused by the Local Authority’s requirement. If the works are properly done and
followed the entire requirement stated by the Local authority it will reduce the
numbers of variation of works.
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6.7
Summary
The final result of the analysis was listed. According to the result analysis it
shows that there are three types of variation and the most factor that influence the
variation is Error in Bill of Quantities. And there are five problems that can cause
variation during planning stage and construction stage. Therefore the implication of
variation it shows that the cost overruns of the project and the delay in the
construction period were the most implication of variation. Lastly, the strategy action
that can be taken to minimize or control the variation is focusing during planning
stage and also construction stage.
CHAPTER 7
CONCLUSION AND RECOMMENDATION
7.1
Introduction
This chapter concludes the study by listing and summarized the result of the
analysis. Based on the literature reviews, interview and the case study and result
analysis, the three main objectives of this project report have been achieved.
7.2
Conclusions
As a conclusion based on the study on variations control affecting the
construction works, the study has identified and fulfill the three objectives that set out
in Chapter 1 of this report.
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First Objective :
To identify the types of variation and the factor that
influence the variation
There are three types of variation that can be categorized by the identity of
initiator which can be change to one another such as client or employer, consultant
such as architect or engineer, by the authority requirement and also the contractor.
The by the nature of variation such as the nature of work such as site condition or
weather, any changes in the condition of contract and the variation by the omission or
addition work during construction. The third type of variation shows that the financial
consequence or effect of variation such as financial consideration or time implication
such as adjustment in the contract sum during construction in progress. Based on the
case studies in Chapter 6 on this project report, the factor that influence the variation
has been identified which are as follows:
1.
Client’s request;
2.
Change in design;
3.
Error in Bill of Quantity;
4.
Change in Local Authority’s requirement;
5.
S.O’s instruction;
6.
Reameasurement; and
7.
Suite site condition.
78
Second Objective :
To identify the problems and the implication to variation of
the construction starts from planning until construction
stage
The problem that was identified was during planning stage. It can be listed
below which are:
1.
No feasibility studies of the project;
2.
No proper project brief;
3.
The time constraint for preparing design and contract document;
4.
Lack of checking on detail design and drawing; and
5.
lack of checking on the quality of tender document
While the problems during construction stage that influence to the variation
was identified as:
1.
No survey work
2.
No proper soil investigation
3.
Misunderstanding in communication between project team
4.
Unexpected condition during construction
5.
Unforeseen condition such as found rock under ground level, high
water table and fossil
The obvious implication of the variation is cost overrun. The works carried out
by the contractor should be paid for an extra works or variation. This will result of
cost overrun. Based on the case studies, all of the three project has increment on cost
more that 30% of the original contract amount. The cost includes the additional
expenses, which are transportation expenses, cost of variation works preparation,
other cancellation expenses, financial charges and also cost of site overheads.
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The common implication when there is variations work is delay in completion
of the project, the case studies in Chapter 6, it shows that, all the three project
complete the project due to variations. It can be concluded that, the variation also can
cause or creates delay; it can be complete on time if it is managed in a proper manner,
unless it is issued to critical tasks.
Third Objective :
To identify the strategy action that can be taken to
minimize or control the variation.
Based on the analysis and result above, it can be concluded that,the strategy
action that can be taken to minimize or control variations during planning stage. This
can be listed as below.
1.
Clear project brief
2.
Detailing in design
3.
Adequate time in preparation of documentation
4.
Management in procurement strategy
5.
Provision of complete documentation
Project brief is important at the initial stage because it represents the client’s
needs and clear project brief will avoid the poor contract performance in future. It is
also to minimize the changes arise in the future.
Detail design is important to control and reduce variation because it is contain
a full design of every part and component of the building. The design will developed
80
in depth at the pre-contract stage in order to avoid the claims and dispute later and any
changes later will result changes of works and additional cost.
Adequate time is important in measurement of the works and preparation of
documentation. If there is adequate time in preparation of documentation, the total
number of variations could be reduced. The selection of the management procurement
are also important in order to ensure that the construction is running smooth and less
variation occur during construction.
Based on the analysis and result above, it can be concluded that strategy action
also can be taken in order to minimize variation was during construction stage. The
strategy action that cab be taken can be listed below.
1.
Contractor efficiency’s
2.
Keeping systematic site record
3.
All day check before issue to contractor
4.
Detail and adequate investigation
5.
Comply with all requirements by statutory authority
Variation works can be controlled by having a daily check and systematic site
record on the works. The works carried out by the contractor must be check to make
sure it is according to specification. If there is a systematic site record, it is indirectly
can control the variation works and it depends on the technique of keeping the record
and the management on the site.
All day check before issue to the contractor is a checking made before the S.O
issue the any instruction to the contractor consist of variation works. This is including
checking for the originality of the works and the contractor’s scope of works either
according to the contract or not in order to avoid the variation.
81
The detail in investigation is important because most of the variation caused
by the work not suit to site condition. If the investigation is not adequate, it will result
in additional cost and also involve a variation works in the future. So to control
variation works, the investigations must be in detail and adequate.
Complete documentation is important to make sure all the information in the
document is complete in order to avoid problems in future. It must clearly define the
task and works that need to be done by the contractor especially in bills of quantities.
Poorly preparation of documents will result in uncertainty future such as cost overruns
due to the variation works.
Based on the case studies on Chapter 6, most of the variation works arise
caused by the changes in Local Authority’s requirement. In order to reduce the
variation works, the S.O must make sure that the design and specification of the
works according to the requirement stated by the Local Authority. Besides that, the
contractor should also carry out the work according to the specification given. If the
works are properly done and followed all the requirement stated by the Local
authority it will reduce the numbers of variation of works
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7.3
Recommendation
The recommendation has been made in controlling the variation works so as to
achieve satisfaction to parties involved in construction project. Base on the previous
chapter, the majority of the variation order is due to the Error in Bill of Quantity. It is
important that during planning stage the strategy action could be taken is properly
checking tender document in order to reduce mistake or error during preparing the
documentation for the project. Therefore the strategy action that can be taken in order
to minimize the variation were already discussed above could be recommended for
general procedure that may need to be resolved in a typical variation process in actual
practice.
83
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