Abstract:
The valuation of variation is a critical aspect in the post contract stage. The Contractor has to carry
out the works according to issued variation order or on the instructions given by the Engineer even
without having the approval. The Contractor might be paid a percentage on the submitted price until
cost proposal is certified by the Engineer. The submission and certification process is delayed on most
of the projects and this will lead the Contractor to suffer losses from the project.
The researcher attempted to review the time gap between variation submission and certification, using
a documentary survey of completed building projects. Content analysis of the documents exposed
delay in certification period of several variations, those had generated payment delay to Contractor,
and identified the loss of opportunity cost as the ultimate effect. Further, the author identified the
issues which caused delays in submission and certification of cost variations, and probable solutions
to mitigate those issues. In order to achieve above facts, interview survey was carried out with
professionals, who had experience in variation management of building construction field. The issues
of delay in variation submission and certification procedure in Sri Lankan industry, and solutions for
those issues were derived via analysis of the content of conducted interviews. Finally “Variation
Procedure Guideline” was proposed and validated with the participation of experts.
Author recommended that a proper variation procedure is required to control and certify the value of
variation according to the proposed guideline to manage the situation without conflicts. Further,
maintain the positive relationship between project stakeholders and contribution of government as the
regulatory body will be essential to overcome from mentioned issues.
