Variation Order (VO) is a common issue that always occurred in the construction projects and it involves an amendment of the original scope of work as in the contract. It is a written agreement between the contracting parties that represent the additions, omissions, alterations and substitution in term of quality, quantity and schedule of works. It may change the contract document due to the variety of causes in both on the private or public projects but there are four main origin agents as of why the variation order is occurred. These includes client, consultant, contractors and others.
Client
The client is the project initiator and plays an important role in their project from the beginning until the project is completed. They also have
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Firstly, the client must know their cost of their finished construction project . Variation orders can have both direct and indirect effect on cost. For direct effect’s example, time and material charges related to immediately affected task while for indirect effect is changing in cash flow due to effect on inflation and financial charges. Secondly, variation orders in the construction project also can results in rework and demolition of the structure of the building if it is occurred during construction. This effect is usually during construction phase while variations during the design phase do not require to demolition or rework on construction site. Thirdly, the impact of variation to the construction project is quality of project. Variations affect the quality of work adversely, it is because the contractors have to compensate for losses by cutting corners and so on. Next, variations usually hinder the project progress, leading to delay in achieving the targeted significant events during construction. Mostly, variations will give huge impact on the delay of completion of the construction project. Lastly, increase in project cost is also one of the impact of variation to the construction project. It is mean that when occurred any alteration or addition in the design phase during the execution of the project, it may result in demolition or rework of the project component and eventually increase the project
The two role that shared responsibilities are the project executive sponsor and the project leader. In the sponsor role, the stages initiating, planning, executing, and closing are performed or overseen by the project as well. They share responsibilities in numerous ways. The sponsor is ultimately accountable for the success or failure of the project. The sponsor has to ensure the project is focused on achieving its business objectives and delivering the forecast benefits. They also have to ensure that the project gives value for money and adopts a cost effective approach which balances the demands of the business, users, and suppliers. This role includes securing budgets and ensuring appropriate financial controls are in place. Appointing the project manager and its team including members of the project board. They also advocate the project both eternally and internally. Sponsors also support the project manager to successfully deliver the project and they sign off on project deliverables. (Kilmoski,
an active instead of a passive role in his relationship with the client. Due to budget constraints, the
A Client is someone who comes into a human service system with complicated things going on in their lives this can include psychological, cultural, financial, social, spiritual, and educational problems.
client on a one to one basis and these may be that the client is so
that time if it is possible and if possible arrange with a person who has similarities with the client ,
Time-phased project work is the basis for project cost control. Work package duration is used to develop the project network. Further, the time-phased budgets for work packages are timetabled to establish fiscal measures for each phase throughout the project. The time-phased budgets are to emulate the real cash needs of the budget, which will be used for project cost control. This information is useful to estimate cash outflows. The project manager's attention is on when the costs are to occur, when the budgeted cost is earned, and when the actual cost materializes. This information is made up to measure project schedule and cost variances (Gray & Larson, 2005). The following are typical types of costs found in a project:
Design, implement and coordinate complex projects that deliver effective business unit outcomes and meet client service delivery needs by using project management methodologies to ensure consistent quality outcomes.
One of the main advantages of VE is that building an approved and confident work environment in which all parties and project team members are engaged in the project and working as the owner from initial stage of civil engineering projects. Also, VE is more focusing on value improvement and not just savings of cost. Additionally, Value engineering enhances the client’s satisfaction by knowing their exact needs and expectation (DBIA, 2010).Moreover, it strengths the collaboration between the client and the contractors therefore the contractor will participate by been proactive in any likelihood of risk by giving advice to mitigate risks.
When changes are made to the original work scope, these modifications must be written, this usually increases the contract price. (a350397)
However, there are some disadvantages in the processes. First, it is very consume time in the pre contract process due to the strategy is sequential and construction cannot be started before the completion of design. Also, the contractor is not appointed in the design stage, so the contractor and supply chain are no input into the design or planning of the project. Mo...
Furthermore, providing evidence of your commitment will help convey to the client trust. Also, tackling the professional proposal key elements enhancing the overall understanding of what the client expect from the contract. Implementing realistic expectations with the client would help connect the company on a broader negotiation factors. Moreover, bringing realistic guidelines and showing evidence that it has been done previously will help get the proposal message across.
Estimates form the basis of tender comparison, so it should be as accurate as possible, if deficient the award settlement becomes arduous (Odusami & Onukwube, 2008). Accurate cost estimate for projects are tremendously essential to both the clients and the contractor. It provides the basis for the contractor to submit the tender and allows the parties to highlight the final cost of the project at an early stage. Essentially it is used for planning the entire project and helps during the execution phase (Akintoye and Fitzgerald, 2000). It has been pointed out that the building cost of the project usually differs from the estimated final cost and this is due to the variations (Oberlender and Trost,
The entering and contracting step is extremely significant because it constitutes the initial activities of the OD process. It sets the parameters for the phases of planned changed that follow: diagnosing, planning and implementing change and evaluating and institutionalizing it. Developing the OD contract focuses on making sound decisions that establish the groundwork for the future success of the project.
what you can help them achieve. You will also encounter those clients that are there
A Large proportion of the construction cost is materials, so it may obtain great economic benefit if the material cost could be reduced by optimizing. Therefore it is necessary to control the main material cost of construction projects strictly. The main materials means that the material is less in variety while large quantity funds needed, such as steel bar, cement, fine aggregate and coarse aggregate and higher-value equipment etc, which generally account for total funds at 60% to 80%. Especially the steel material in construction has a so high price and great demand that optimization is worth and in need.