A study on cause and value creation of variation order in construction project : Case study of a residential building project in Bangkok
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Abstract
The variation orders in construction projects often lead to cost overrun and project delay. However, it may create value to the project in various cases. This research aims to investigate causes of variation order as well as relationship between causes and project value creation. A high-rise residential building in Bangkok with the total of 401 variation orders is selected as a case study. Structure interview with questionnaire was conducted to identify cause and value creation of variation orders from the experts involved during project construction. Factor analysis revealed 7 groups of factors. Owner’s directive changes is the main cause of variation orders in the project. The study further found that regardless of the causes of variation orders, it gives the opportunity to add value to the project in terms of cost reduction, enhance safety, efficiency during operation and maintenance and also compliance to the law and regulations.
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