Title:
Factors and Impacts of Variation Orders on Building Construction Project Performance in Malaysia

Authors:
Hafnidar A. Rani, Tamalkhani Syammaun, Nur Hadirah Amfazi, Afizah Ayob, Nur Soleha Abdul Rahim, Mohammad Harith Amlus, Indonesia

Abstract:

Variation orders are a common challenge in construction projects, often leading to project delays and affecting overall project performance. This study identifies the key factors contributing to variation orders and analyses their impacts on the performance of building construction projects in the Southern States of Malaysia. Specifically, the research addresses factors driving variation orders, including economic conditions and site location discrepancies, as well as their impacts on time overruns, cost overruns, work quality, and professional relationships. A survey was conducted among Grade 7 contractors registered with the Construction Industry Development Board (CIDB) of Malaysia, and the data were analysed using descriptive statistics, multivariate regression, and Spearman's rho correlation analysis. Findings revealed that variation orders significantly impact project performance metrics, including time overruns (90.2%), cost overruns (96.7%), and work quality and professional relations (95.4%), while health and safety were minimally affected. Additionally, a strong correlation (0.958) was found between construction phases and overall project performance. These results underscore the importance of addressing variation order factors early in the planning phase to minimise negative impacts on project outcome.

DOI: http://dx.doi.org/10.51505/ijaemr.2025.1309