Abstract
The construction industry is one of the biggest employment generators in South Africa. However, the industry suffers delays caused by the occurrence of variation orders which are also evident in other countries worldwide. The current study evaluates the causes, effects and measures of managing or minimizing the occurrence of variation orders as well as the process of initiating and administrating variation orders in Polokwane, Limpopo Province. The information used in this study was obtained from secondary sources through a thoroughly conducted literature review as well as primary sources through a questionnaire circulated among construction professionals in Polokwane. Out of 150 circulated questionnaires, only 105 respondents reverted back which denotes a return of 70%. Findings showed that design changes, change of plans, change of scope, inadequate specification, defects in design, defects in bills of quantities, change in specification, owner’s financial difficulties, errors and omissions in design and inadequate working drawings were the leading causes of variation orders in Polokwane. The study also revealed increased project cost, time overruns, completion schedule delay, disputes between contractors and owners, increase in overhead expenses, rework and demolition, non-conformance of quality, health and safety issues or claims, procurement delay and delays in payment to contractor as the major effects of variation orders in Polokwane. Generally, advisable steps in initiating and administrating variation orders in Polokwane were initiating change or discovering or recognizing a need for change, negotiating to decide whether change is in the original scope, preparing contemplated change order notice, preparing estimate for contemplated change notice, owner reviews, negotiating change order price, preparing a change order and issuing approved change order. The study revealed the following major measures to employ in minimizing or controlling variation orders in Polokwane as a thorough review of designs, drawings and plans; adequate financial planning; full site investigation before and during construction; negotiation of change orders by knowledgeable persons; adherence to the instructions of the owners by contractors; provision of clear brief of the project; earlier implementation of changes to avoid delays; use of work breakdown structures; involvement of contractors during design phase and avoidance of miscommunication by project team. It is suggested that the project team should audit or revisit its budgets, designs or documents before issuing them in order to avoid introduction of variation orders failing which, time and cost overruns may be incurred.
M.Tech. (Construction Management)