Causes, Impacts, and Prevention of Variation Orders in Public Building Construction Projects: A Case Study of Pokhara Metropolitan City, Nepal

Purpose – The purpose of this paper is to highlight the causes, sources, effects, and management of variation orders in public building construction projects within Pokhara Metropolitan City, Nepal. The research will enlighten the government agencies and the public works department on how to prevent variations and the problems that are associated with them. Design/methodology/approach—The researcher employed a mixed research method to analyze ten completed construction projects, five of which involved variation orders. The researcher gathered data from 41 construction professionals, which gave the researcher a 100% response rate. The researcher analyzed the gathered data with the help of Kendall’s coefficient, relative importance index, and Cronbach’s alpha (0.918), which involved both qualitative and quantitative data for the study. Findings—The results showed time overruns in all projects, ranging from 19% to 116%, with 60% also facing cost overruns between 3.95% and 9.09%. Consultants were the main source of variation orders (54.73%), followed by clients (24.20%), external factors (18.71%), and contractors (2.36%). The primary causes of variation orders were differing site conditions (31.98%) and design errors/omissions (25.99%). Indirect monetary losses were estimated at NRs. 2.42 million for clients and NRs. 4.49 million for contractors across four projects. Originality/value – This paper contributes to the existing body of knowledge on variation orders by identifying the major causes of delays and cost overruns in construction projects in Nepal. It also emphasizes the significance of pre-construction planning, including obligatory site investigations, design review, and approvals, as effective means of reducing variation orders.