The Impact of Variation Orders on the Cost of Government Projects in Perak, Malaysia: A Case Study

Mohd Nazri Abdullah; Syed Abdul Haris Syed Mustapa; Mohammad Nasharudine Shuib; Zaiwanizar Zainal Abidin; Mohd Firdaus Zainuddin; Mohd Esham Mamat

Mohd Nazri Abdullah
Syed Abdul Haris Syed Mustapa
Mohammad Nasharudine Shuib
Zaiwanizar Zainal Abidin
Mohd Firdaus Zainuddin
Mohd Esham Mamat

Abstract

This research investigates the impact on costing from variation order of ten (10) various government project in Perak, Malaysia derived from different stakeholders. Variation order were treated variedly according to the conditions of contract of the particular construction. This study focused on government project as per Public Work Department condition of contract which is Public Work Department Form of Contract PWD203a 2010 with quantity and Public Work Department Form of Contract PWD203 2010 with drawings and specifications. Both of the article of agreement partakes different approach on variation order calculation specifically on cost incurred. This paper aims to determine the impact of variation order towards the costing of government construction project in Perak, Malaysia and identify the cost distribution among the stakeholders of the constructions project in Perak, Malaysia. Employing analytical research that adopted qualitative method of case study and document review, a total of 10 various government project were analysed in Perak, Malaysia. From the study, it was revealed that the total variation order cost for the ten (10) projects is RM417,479.79. Some variations are either beneficial and detrimental to the overall contract sum. The order of ranks of stakeholders contributing to variation order cost starting from the highest contributor to the lowest contributor are civil engineering, mechanical and electrical engineering, client, architect, contractor, quantity surveyor and lastly government authorities.

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