Investigating variation orders observance in UNRWA construction contracts : case study

Author

al-Kurayri, Ala A.

Source

المؤتمر الدولي الهندسي الرابع : “نحو هندسة القرن الحادي و العشرين” : الذي نظمته كلية الهندسة بالجامعة الإسلامية-غزة يومي الاثنين و الثلاثاء الخامس عشر و السادس عشر من تشرين أول / أكتوبر 2012.

Publisher

Islamic University of Gaza Faculty of Engineering

Publication Date

2012-10-31

Country of Publication

Palestine (Gaza Strip)

No. of Pages

17

Main Subjects

Engineering & Technology Sciences (Multidisciplinary)

English Abstract

Variation orders (V.O) are considered one of the main challenges that face all stakeholders in construction projects.

United Nations Relief and Works Agency (UNRWA) is one of the largest UN sister Organizations that implements hundreds of construction projects in Palestine and especially in the Gaza strip.

Variation orders in UNRWA construction projects usually create negative impact on project sustainability and progress.

This study aims to investigate the causes of variation orders in UNRWA construction projects and to introduce how UNRWA contract conditions manage the observance of these variation orders.

Three research methodologies were used to achieve these objectives by ; reviewing the researches that discussed the causes of V.O and approaches to manage them, introducing how UNRWA contract clauses manage variation orders in construction projects and analyzing three cases (case studies) showing the causes of V.O and how they were managed.

The results showed that the majority of the recorded variation orders in UNRWA construction projects were related to client’s (UNRWA) amendments, design changes, non availability of certain types of construction materials due to the siege and closure imposed on Gaza strip and to the weather conditions which forms one of the reasons for variation orders in UNRWA projects specially in the infrastructure works.

Variation orders in construction projects could result from increasing contract value by more than 25 %, adding new item that did not exist in the original contract, changing specifications of original contracted items due to unforeseen conditions or the need to change the scope of work.

The results also revealed that variation orders were managed through various approaches such as Article 7 (Variations) in UNRWA contract conditions which include seven sub-clauses, considering budget margin as contingencies and direct monitoring, evaluation and review of tender and contract documents.

It can be concluded that in general, variation orders in UNRWA projects are related to the top management requirements / changes (client’s needs) after starting the works.

Besides, it can be concluded that more attention should be given and more approaches should be used to control the V.O in UNRWA projects.

The study recommends the professionals to exert more efforts and pay more attention in defining the scope of projects, allocating sufficient time for design development and improving design by adding more risk factors during the itemization process.

The study introduced valuable recommendations to decision makers in construction industry to hold training programmers in construction variation management and to analyze the potential causes of the previous variations to benefit from the lessons learned in managing any future variations in construction projects.

Data Type

Conference Papers

Record ID

BIM-777077

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