Wednesday, July 17, 2024

Variation Order, The Causal Or The Resolver Of Claims And Disputes In The Construction Projects

AER vol 14

Variation Order is the things that always happen in every construction project, which in some studies found as one of the causal factor of claims. The variation orders always have a cost and time implication, whatever the variations are there will be a risk that even in the omission of the works, where there are reducti on of the original volume in the Contract, there are risk on additional cost should be take into consideration. The variations in the works, if not handling properly, surely will become the main causal factor of the claims submitted by the contractor. The parties should also be aware that they should pay attention to the clauses related
with the variations in the conditions of contract, since misinterpretation and/or different interpretation may lead to dispute. As what Adriaanse [1] said that “A variety of factors makes a construction contract different from most other types of contracts. These include the length of the project, its complexity, its size and the fact that the price agreed and the amount of work done may change as it proceeds”. In the construction contract the most important goal is to complete the project and the premises could be operated without any disputes which are costly and time consuming, it also may hamper the operation which will cause another financial loss
to the Employer. The variation orders have many forms, it vary from the Engineer Instruction until the approval of the working drawings which will be used for construction at site. This study concludes that the variation order is the most effective tool for resolving the claim.

Keywords: variation order, claim, dispute, causal factor, resolver.

Download: IJAER v11 n 14 2016 

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