FACULTY OF ENGINEERING, BUILT ENVIRONMENT &

INFORMATION TECHNOLOGY
BACHELOR OF CIVIL ENGINEERING

ECV3223 CONSTRUCTION PROJECT MANAGEMENT

TOPIC : CONSTRUCTION DELAYS

DATE ASSIGNED : 21/09/2023

DATE OF SUBMISSION : 30/10/2023

LECTURER : MR. CHAN JOO AIK

NO GROUP MEMBERS STUDENT ID

1. Introduction 2

2. Objective 3

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INTRODUCTION

Construction projects demand meticulous planning and execution for success, but delays can prove
persistent despite careful preparations. Variations and change orders are significant sources of such
delays, altering original project plans with wide-reaching impacts on both timelines and budgets. In
this overview, we delve into the realm of variations and change orders in construction delays,
exploring their meaning, origins, and profound effects on construction projects.

Variations and change orders are integral to construction management, representing requested or
mandated adjustments to project scope, specifications, design, or materials. Various stakeholders,
including project owners, architects, engineers, and regulators, can initiate these modifications,
underscoring their importance in effective project management.

These changes can emerge from diverse sources, such as evolving project requirements, design issues,
unforeseen site conditions, shifting regulations, or cost-saving attempts through value engineering.
Recognizing these diverse triggers is vital to effectively address and manage them.

The immediate consequence of variations and change orders is their potential to disrupt construction
schedules. As they necessitate plan alterations, material procurement, and possible reevaluations, they
can cause schedule extensions by disturbing the meticulously sequenced activities of a construction
project. Understanding and managing their impact on project timelines is essential for project success.

Moreover, these changes can substantially affect project finances, leading to additional costs for
materials, labor, equipment, and longer project durations. Handling these expenses typically follows
procedures outlined in the construction contract, governing change approval, cost management, and
budget maintenance. Balancing financial considerations with contractual obligations is a pivotal
element of effective variation and change order management.

In the dynamic construction realm, comprehending and addressing the influence of variations and
change orders on project delays is paramount for successful project completion. This introduction sets
the stage for a deeper exploration of strategies, challenges, and best practices to navigate these
disruptions in construction projects.

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OBJECTIVE
Case Study Report: Construction Delays Due to Variations/Change Orders
Introduction: ABC Construction Company embarked on a complex commercial construction project
with an initial timeline of 18 months and a contract value of $50 million. However, as the project
progressed, a series of variations and change orders significantly impacted both the timeline and
budget. This case study explores the causes, consequences, and solutions to address these delays.
Background:
● Project Description: The project involved constructing a 10-story commercial complex with
office spaces, retail outlets, and an underground parking facility.
Timeline and Contract:
● Original Timeline: 18 months
● Original Contract Value: $50 million
Causes of Variations/Change Orders:
Client-Requested Modifications: The client, envisioning increased revenue, requested numerous
design changes, including the addition of extra retail spaces and parking levels.
Unforeseen Site Conditions: Unexpected soil instability issues were discovered during excavation,
necessitating changes to the foundation design.
Regulatory Changes: Midway through the project, local building regulations underwent revisions,
requiring compliance modifications.
Impact on Project:
Timeline Delays: The cumulative effect of variations and change orders added six months to the
project timeline. Instead of completing it in 18 months, it took 24 months.
Budget Overruns: The cost of materials, labor, and design modifications resulted in a budget
overrun of $10 million. The final project cost was $60 million.
Consequences:
Financial Strain: ABC Construction Company faced financial strain due to increased costs.
Additional financing had to be secured, incurring interest expenses.
Contractual Disputes: Disputes between the construction company and the client arose concerning
responsibility for the delays and additional costs.
Solutions Implemented:
Streamlined Communication: To prevent future misunderstandings, ABC Construction Company
established a streamlined communication process with the client for change orders. A
dedicated change order manager was assigned.
Early Risk Assessment: A thorough risk assessment was conducted at the project's outset,
considering potential variations. A contingency fund was established to handle unexpected
changes.
Regular Regulatory Checks: Regular monitoring of local regulations ensured that any changes
were anticipated and addressed promptly.
Outcomes:
Timely Completion: Subsequent projects benefitted from improved change order management,
resulting in fewer delays.
Strengthened Client Relations: Clear communication and transparent change order processes
improved relations with clients.
Conclusion: The ABC Construction Company case study underscores the substantial impact that
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variations and change orders can have on construction projects. By proactively implementing
strategies to manage and mitigate these issues, construction companies can minimize delays and
financial burdens, ultimately delivering successful projects.
This case study illuminates the real-world challenges faced by construction firms and emphasizes the
critical role of effective change order management in mitigating delays and disputes.

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Case Study Report: Construction Delays Due to Variations/Change Orders
Introduction XYZ Construction, a well-established construction firm, undertook a high-profile project
to build a luxury residential complex. The project was initially slated for a 24-month timeline, with a
contract value of $80 million. However, as the project unfolded, a series of variations and change
orders began to take their toll, leading to significant delays and budget overruns.
Background
The project involved the construction of a 15-story luxury residential complex, featuring high-end
apartments, amenities, and underground parking.
Timeline and Contract
The original timeline for the project was set at 24 months, with an agreed contract value of $80
million.
Causes of Variations/Change Orders
The delays primarily originated from three main causes. Firstly, the client requested extensive design
modifications, including changes to apartment layouts and the addition of a rooftop garden. Secondly,
unforeseen geological issues were encountered during excavation, necessitating adjustments to the
foundation design. Thirdly, evolving environmental regulations mandated the installation of advanced
energy-efficient systems, leading to substantial changes in the construction plans.
Impact on Project
These variations and change orders had a substantial impact on the project. The initial 24-month
timeline extended by an additional 10 months, resulting in a total project duration of 34 months.
Budget-wise, the increased costs incurred by the modifications and delays caused an overrun of $15
million, with the final project cost reaching $95 million.
Consequences
The financial implications were significant. XYZ Construction faced financial strain due to the
escalated costs, requiring the securing of additional financing and incurring substantial interest
expenses. Additionally, disputes between the construction firm and the client arose over the allocation
of responsibility for the delays and additional costs.
Solutions Implemented
To address these challenges, XYZ Construction implemented several strategic measures. Firstly, they
established a robust change order management system, ensuring that client-requested modifications
were thoroughly reviewed and their impacts on the timeline and budget were well-documented.
Secondly, the company conducted a comprehensive risk assessment at the project's outset, identifying
potential variations and allocating contingency funds to handle unforeseen changes. Lastly, proactive
monitoring of environmental regulations became a standard practice to anticipate and incorporate
required modifications promptly.
Outcomes
As a result of these measures, XYZ Construction saw improvements in subsequent projects. The
implementation of a stringent change order management system led to fewer misunderstandings and
disputes related to variations. This, in turn, reduced delays and minimized the financial burden
associated with change orders. Furthermore, improved communication with clients enhanced
relationships, fostering a collaborative project environment.
Conclusion
The case of XYZ Construction Company highlights the considerable impact that variations and
change orders can have on construction projects. By proactively implementing strategies to manage
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and mitigate these issues, construction companies can minimize delays and financial burdens,
ultimately delivering successful projects. This case study serves as a practical example of the
challenges faced by construction firms and underscores the importance of effective change order
management in mitigating delays and disputes.

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REFERENCES

Neenu, S. K. (2023). Specific Gravity of Soil By Pycnometer Method-Procedure and Calculations.