Identifying the Key Causes and Impacts of Variation Orders in Iraqi Construction Projects

Abstract

Variation Orders is often a reason for construction projects exceeding projects budget and delays; it is a global problem, particularly intensive in the case of a recession of the local economy and stagnation. In Iraq, all the projects have delays in completion, and the cost affects because of the variation orders, which are not well managed. The objective of this study was to identify the key causes responsible for the variation order in construction projects in Iraq using the system dynamic. System's dynamics is the discipline of academics and rooted initially been in management and the engineering sciences. The data relating to the performance of construction projects from 27 projects adopted by Diyala University were collected. Personal interviews and questionnaires survey to the selected projects of specialized engineers were done. The results revealed that the size of variation orders in Iraqi construction projects was high, and 13 key causative factors led to variation orders. The variation in cost was the most influential factor effecting the construction project in Iraq.  When variation orders in a cost increased, the owner's opinion decreased. When the external factors increased, cost variation orders increased. It was concluded that minimizing the variation orders was very important to realize the cost in the construction projects. Therefore, the authority management and project managers must make a plan to address these key causes in future projects to ensure their success.

Conclusions

Based on the investigations done in this study, the following conclusion can be drawn:

1. It was found that most of the variation orders were of the malicious type increased the cost due to the owner's requirements, and a little of it was used to improve quality.
2. From the questionnaires, 43 causes of variation orders and ten impacts from the closed questionnaire. There was a negative impact on variation orders in large proportions in Iraqi construction projects.
3. The owner interferes, especially in adding new items and works or modifying the plans and the specifications, whether (dimensions - levels - places - materials) were among the main reasons issued the implementation of variation orders that increase the cost of the original project. It indicated the owner was poorly informed and closely involved in the design stage of the project, and a lack of perception and appreciation of the party owing to the negative effects of variation orders, especially those related to a long time involved delays the completion of the project in the required time.
4. Minimizing the variation orders was very important to realize the cost in the construction projects.