The Evaluation of Variation Orders on Road Construction Project in Rural Nepal Variation Orders on Road Construction Project
Main Article Content
Abstract
Variation orders (VOs) contribute to time and cost overruns in Nepalese road projects and often trigger disputes. This mixed-methods study examined the causes of VOs on rural roads in Karnali Province using a targeted literature review, field observations, document review, case studies of 11 client–contractor–consultant projects (located for geographic spread, contractor size, and presence/absence of consultant oversight), and a closed-ended census survey of industry professionals across the three stakeholder groups. Quantitative analysis used the Relative Importance Index (RII) and descriptive statistics to compare stakeholder perceptions; qualitative evidence from site observations and documents triangulated the results. The findings identified variations in scope of work (additions, omissions, and alterations in employer requirements) as the primary cause (RII clients = 812; RII consultants = 780; RII contractors = 791). Secondary causes vary by stakeholder: clients and contractors rank “change in design and drawings by consultant” highly (RII 0.800), while consultants and contractors emphasize “errors and omissions in design” (RII consultants = 933; RII contractors = 864). Other contributors include inadequate site investigation, adverse site conditions, government intervention, and client-initiated changes. Stakeholders differ on causes but largely agree on effects and mitigation strategies. The study’s originality is its stakeholder‑comparative mixed-methods focus on Karnali rural roads, producing empirically grounded, actionable mitigation measures. Improving scope definition, completing designs, and strengthening early site investigation can substantially reduce VOs. The paper recommends coordinated national research led by academic and professional bodies, in partnership with government and industry, to develop standardized guidance and capacity-building.
Article Details
Section

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
a) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share and adapt the work with an acknowledgement of the work's authorship and initial publication in this journal.
b) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
c) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Open Access Citation Advantage Service). Where authors include such a work in an institutional repository or on their website (ie. a copy of a work which has been published in a UTS ePRESS journal, or a pre-print or post-print version of that work), we request that they include a statement that acknowledges the UTS ePRESS publication including the name of the journal, the volume number and a web-link to the journal item.
d) Authors should be aware that the Creative Commons Attribution (CC-BY) License permits readers to share (copy and redistribute the work in any medium or format) and adapt (remix, transform, and build upon the work) for any purpose, even commercially, provided they also give appropriate credit to the work, provide a link to the license, and indicate if changes were made. They may do these things in any reasonable manner, but not in any way that suggests you or your publisher endorses their use.
How to Cite
References
Alshihri, S., Al‐gahtani, K. and Almohsen, A. (2022) ‘Risk Factors That Lead to Time and Cost Overruns of Building Projects in Saudi Arabia’, Buildings 2022, Vol. 12, Page 902, 12(7), p. 902. Available at: https://doi.org/10.3390/BUILDINGS12070902.
Alzubi, K.M., Alkhateeb, A.M. and Hiyassat, M.A. (2023) ‘Factors affecting the job satisfaction of construction engineers: evidence from Jordan’, International Journal of Construction Management, 23(2), pp. 319–328. Available at: https://doi.org/10.1080/15623599.2020.1867945.
Arain, F.M. and Pheng, L.S. (2005) ‘How Design Consultants Perceive Potential Causes of Variation Orders for Institutional Buildings in Singapore’, Architectural Engineering and Design Management, 1(3), pp. 181–196. Available at: https://doi.org/10.1080/17452007.2005.9684592.
Arain, F.M. and Pheng, L.S. (2006) ‘Developers’ Views of Potential Causes of Variation Orders for Institutional Buildings in Singapore’, Architectural Science Review, 49(1), pp. 59–74. Available at: https://doi.org/10.3763/ASRE.2006.4908.
Aziz, R.F. and Abdel-Hakam, A.A. (2016a) ‘Exploring delay causes of road construction projects in Egypt’, Alexandria Engineering Journal, 55(2), pp. 1515–1539. Available at: https://doi.org/10.1016/J.AEJ.2016.03.006.
Aziz, R.F. and Abdel-Hakam, A.A. (2016b) ‘Exploring delay causes of road construction projects in Egypt’, Alexandria Engineering Journal, 55(2), pp. 1515–1539. Available at: https://doi.org/10.1016/J.AEJ.2016.03.006.
Corominas, J. et al. (2014) ‘Recommendations for the quantitative analysis of landslide risk’, Bulletin of Engineering Geology and the Environment, 73(2), pp. 209–263. Available at: https://doi.org/10.1007/S10064-013-0538-8/FIGURES/5.
Daoud, A.O., El Hefnawy, M. and Wefki, H. (2023) ‘Investigation of critical factors affecting cost overruns and delays in Egyptian mega construction projects’, Alexandria Engineering Journal, 83, pp. 326–334. Available at: https://doi.org/10.1016/J.AEJ.2023.10.052.
Doloi, H. et al. (2012) ‘Analysing factors affecting delays in Indian construction projects’, International Journal of Project Management, 30(4), pp. 479–489. Available at: https://doi.org/10.1016/J.IJPROMAN.2011.10.004.
Doloi, H.K. (2011) ‘Understanding stakeholders’ perspective of cost estimation in project management’, International Journal of Project Management, 29(5), pp. 622–636. Available at: https://doi.org/10.1016/J.IJPROMAN.2010.06.001.
Dosumu, O.S. and Aigbavboa, C.O. (2017) ‘Impact of Design Errors on Variation Cost of Selected Building Project in Nigeria’, Procedia Engineering, 196, pp. 847–856. Available at: https://doi.org/10.1016/J.PROENG.2017.08.016.
Enshassi, A., Arain, F. and Al-Raee, S. (2011) ‘Journal of Civil Engineering and Management Causes of variation orders in construction projects in the Gaza Strip CAUSES OF VARIATION ORDERS IN CONSTRUCTION PROJECTS IN THE GAZA STRIP’. Available at: https://doi.org/10.3846/jcem.2010.60.
Evaluating the efficacy of a dedicated last planner system facilitator to enhance construction productivity | Construction Economics and Building (no date). Available at: https://search.informit.org/doi/abs/10.3316/informit.146076827100606 (Accessed: 27 April 2025).
Francis, M., Ramachandra, T. and Perera, S. (2022) ‘Disputes in Construction Projects: A Perspective of Project Characteristics’, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 14(2), p. 04522007. Available at: https://doi.org/10.1061/(ASCE)LA.1943-4170.0000535.
Ghorasainee, S. (2019) ‘Contextualizing alternative development perspectives in local governance systems and communities of Nepal’, Journal of Advances in Humanities and Social Sciences, 5(6), pp. 277–288. Available at: https://doi.org/10.20474/JAHSS-5.6.5.
Halwatura, R.U. and Ranasinghe, N.P.N.P. (2013) ‘Causes of Variation Orders in Road Construction Projects in Sri Lanka’, International Scholarly Research Notices, 2013(1), p. 381670. Available at: https://doi.org/10.1155/2013/381670.
Harrison, F. and Lock, D. (2017) ‘Advanced project management: A structured approach’, Advanced Project Management: A Structured Approach, pp. 1–332. Available at: https://doi.org/10.4324/9781315263328/ADVANCED-PROJECT-MANAGEMENT-FREDERICK-HARRISON-DENNIS-LOCK/RIGHTS-AND-PERMISSIONS.
Heyns, A.M. and Banick, R. (2024) ‘Optimisation of rural roads planning based on multi-modal travel: a multi-service accessibility study in Nepal’s remote Karnali Province’, Transportation, 51(2), pp. 567–613. Available at: https://doi.org/10.1007/S11116-022-10343-3/TABLES/4.
Keane, P., Sertyesilisik, B. and Ross, A.D. (2010) ‘Variations and Change Orders on Construction Projects’, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2(2), pp. 89–96. Available at: https://doi.org/10.1061/(ASCE)LA.1943-4170.0000016.
Koirala, M.P. and Shahi, R.S. (2024) ‘Examining the causes and effects of time overruns in construction projects promoted by rural municipalities in Nepal’, Evaluation and Program Planning, 105, p. 102436. Available at: https://doi.org/10.1016/J.EVALPROGPLAN.2024.102436.
Kometa, S.T., Olomolaiye, P.O. and Harris, F.C. (1994) ‘Attributes of UK construction clients influencing project consultants’ performance’, Construction Management and Economics, 12(5), pp. 433–443. Available at: https://doi.org/10.1080/01446199400000053.
Maqbool, R. and Rashid, Y. (2017) ‘Detrimental changes and construction projects: Need for comprehensive controls’, International Journal of Project Organisation and Management, 9(2), pp. 154–170. Available at: https://doi.org/10.1504/IJPOM.2017.085291.
Meacham, B. et al. (2005) ‘Performance-based building regulation: Current situation and future needs’, Building Research and Information, 33(2), pp. 91–106. Available at: https://doi.org/10.1080/0961321042000322780;REQUESTEDJOURNAL:JOURNAL:RBRI20;WGROUP:STRING:PUBLICATION.
Meacham, B.J. and van Straalen, I.J. (2018) ‘A socio-technical system framework for risk-informed performance-based building regulation’, Building Research & Information, 46(4), pp. 444–462. Available at: https://doi.org/10.1080/09613218.2017.1299525.
Mukherjee, M. et al. (2023) ‘Extent and evaluation of critical infrastructure, the status of resilience and its future dimensions in South Asia’, Progress in Disaster Science, 17, p. 100275. Available at: https://doi.org/10.1016/J.PDISAS.2023.100275.
Nguyen, F.B.T., Grigg, N. and Valdes-Vasquez, R. (2023) ‘Electric utility construction: Causes and types of field change orders’, The Electricity Journal, 36(8), p. 107332. Available at: https://doi.org/10.1016/J.TEJ.2023.107332.
Noruwa, B.I., Arewa, A.O. and Merschbrock, C. (2022) ‘Effects of emerging technologies in minimising variations in construction projects in the UK’, International Journal of Construction Management, 22(11), pp. 2199–2206. Available at: https://doi.org/10.1080/15623599.2020.1772530.
Oloo, N. et al. (2014) ‘Factors contributing to variation orders: A survey of civil engineering construction projects in Kenya’, ijsse.orgDD Oloo, G Munala, W GithaeInternational Journal of Social Sciences and Entrepreneurship, 2014•ijsse.org, 1(12). Available at: http://ijsse.org/articles/ijsse_v1_i12_696_709.pdf (Accessed: 27 April 2025).
Performance of performance specifications in design-build highway projects | Construction Economics and Building (no date). Available at: https://search.informit.org/doi/abs/10.3316/INFORMIT.896139824042796 (Accessed: 27 April 2025).
Pillai, A.S., Joshi, A. and Rao, K.S. (2002) ‘Performance measurement of R&D projects in a multi-project, concurrent engineering environment’, International Journal of Project Management, 20(2), pp. 165–177. Available at: https://doi.org/10.1016/S0263-7863(00)00056-9.
Rahman, I.A. et al. (2022) ‘Structural Relationship of Causes and Effects of Construction Changes: Case of UAE Construction’, Sustainability 2022, Vol. 14, Page 596, 14(2), p. 596. Available at: https://doi.org/10.3390/SU14020596.
Sambasivan, M. and Soon, Y.W. (2007) ‘Causes and effects of delays in Malaysian construction industry’, International Journal of Project Management, 25(5), pp. 517–526. Available at: https://doi.org/10.1016/J.IJPROMAN.2006.11.007.
Schoenmaker, R. and de Bruijn, H. (2016) ‘Embracing complexity in performance-based contracts for road maintenance’, International Journal of Productivity and Performance Management, 65(1), pp. 4–24. Available at: https://doi.org/10.1108/IJPPM-02-2014-0034/FULL/XML.
Sewell, S.J. et al. (2019) ‘A comparative study of community perceptions regarding the role of roads as a poverty alleviation strategy in rural areas’, Journal of Rural Studies, 71, pp. 73–84. Available at: https://doi.org/10.1016/J.JRURSTUD.2019.09.001.
Shugran, A.A. and Ghazali, F.E.M. (2024) ‘Understanding the effects of variation orders on construction project success: insights from the Jordanian context’, International Journal of Construction Management [Preprint]. Available at: https://doi.org/10.1080/15623599.2024.2337238.
Sobaih, A.M.H.; E.E. et al. (2024) ‘A Proposed Model for Variation Order Management in Construction Projects’, Buildings 2024, Vol. 14, Page 726, 14(3), p. 726. Available at: https://doi.org/10.3390/BUILDINGS14030726.
Sun, M. and Meng, X. (2009) ‘Taxonomy for change causes and effects in construction projects’, International Journal of Project Management, 27(6), pp. 560–572. Available at: https://doi.org/10.1016/J.IJPROMAN.2008.10.005.
Villiers, R.R. de and Fouché, J.P. (2015) ‘Philosophical Paradigms and Other Underpinnings of the Qualitative and Quantitative Research Methods: An Accounting Education Perspective’, Journal of Social Sciences, 43(2), pp. 125–142. Available at: https://doi.org/10.1080/09718923.2015.11893430.
Wang, B. et al. (2024) ‘QUANTIFYING THE IMPACT OF SOCIAL AND POLITICAL INSTABILITY ON SUPPLY CHAIN OPERATIONS: A RISK ASSESSMENT FRAMEWORK’, Operational Research in Engineering Sciences: Theory and Applications, 7(1), pp. 2620–1747. Available at: https://doi.org/10.31181/ORESTA190101S.
Weingast, B.R. (2009) ‘Second generation fiscal federalism: The implications of fiscal incentives’, Journal of Urban Economics, 65(3), pp. 279–293. Available at: https://doi.org/10.1016/J.JUE.2008.12.005.
Williams, T. et al. (2019) ‘The front-end of projects: a systematic literature review and structuring’, Production Planning and Control, 30(14), pp. 1137–1169. Available at: https://doi.org/10.1080/09537287.2019.1594429;PAGE:STRING:ARTICLE/CHAPTER.
Yarnold, P. (2014) ‘UniODA vs. Kendall’s Coefficient of Concordance (W): Multiple Rankings of Multiple Movies Optimal Data Analysis LLC’. Available at: https://www.researchgate.net/publication/268649222 (Accessed: 10 June 2024).