Validity issues of variation order in construction contracts

The construction contract is a set of agreement that binds the parties, either between the employer and contractor or contractor and sub contractor. Currently, there are many kinds of contract form that may be used in construction depending on the nature of construction work. Usually, the form of co...

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Main Author:	Mazahar, Norazilan
Format:	Thesis
Language:	English
Published:	2019
Subjects:	TH434-437 Quantity surveying
Online Access:	http://eprints.utm.my/id/eprint/86154/1/NorazilanMazaharMFABU2019.pdf
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id	my-utm-ep.86154
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spelling	my-utm-ep.861542020-08-30T09:04:53Z Validity issues of variation order in construction contracts 2019 Mazahar, Norazilan TH434-437 Quantity surveying The construction contract is a set of agreement that binds the parties, either between the employer and contractor or contractor and sub contractor. Currently, there are many kinds of contract form that may be used in construction depending on the nature of construction work. Usually, the form of contract is used to protect interest of the parties and will contain various elements including variation order (VO) clause. The variation order clause will usually permit the party, normally the employer, to carry out variation, modification, alteration, addition or omission to the current scope of work as stipulated in the contract provision. The process of VO need to be made in a proper manner for validity purposes and failure to do so will cause problems to the existing contract. In light of that, the objectives of this research are to determine the circumstances for variation order issued and to determine the causes of invalid variation order. The research methodology adopted was based on legal case analysis for which nine construction cases was obtained from the Lexis Nexis data base. Case law analysis is carried out to identify the issues on the validity of variation order, which may bring about an invalid variation order. The first objective shows that there are many circumstances identified that may lead or to cause the variation order (VO) to be issued in construction contracts. Some of these circumstances may be attributed to lack of detail or planning at the pre-contract stage. The second objective confirmed that a lot of invalid variation order (VO) are caused by procedurally invalid variation order. Some of these procedures were not complied with such as written instructions, omissions were not properly carried out, cardinal changes and no provision for variation was provided in the contract. In summary, it can be concluded that if the process of variation order (VO) is conducted in good manner and follow the procedure stated in the contract, the validity issues may not arise and interest of the parties are protected. 2019 Thesis http://eprints.utm.my/id/eprint/86154/ http://eprints.utm.my/id/eprint/86154/1/NorazilanMazaharMFABU2019.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:131435 masters Universiti Teknologi Malaysia, Faculty of Built Environment & Surveying Faculty of Built Environment & Surveying
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	TH434-437 Quantity surveying
spellingShingle	TH434-437 Quantity surveying Mazahar, Norazilan Validity issues of variation order in construction contracts
description	The construction contract is a set of agreement that binds the parties, either between the employer and contractor or contractor and sub contractor. Currently, there are many kinds of contract form that may be used in construction depending on the nature of construction work. Usually, the form of contract is used to protect interest of the parties and will contain various elements including variation order (VO) clause. The variation order clause will usually permit the party, normally the employer, to carry out variation, modification, alteration, addition or omission to the current scope of work as stipulated in the contract provision. The process of VO need to be made in a proper manner for validity purposes and failure to do so will cause problems to the existing contract. In light of that, the objectives of this research are to determine the circumstances for variation order issued and to determine the causes of invalid variation order. The research methodology adopted was based on legal case analysis for which nine construction cases was obtained from the Lexis Nexis data base. Case law analysis is carried out to identify the issues on the validity of variation order, which may bring about an invalid variation order. The first objective shows that there are many circumstances identified that may lead or to cause the variation order (VO) to be issued in construction contracts. Some of these circumstances may be attributed to lack of detail or planning at the pre-contract stage. The second objective confirmed that a lot of invalid variation order (VO) are caused by procedurally invalid variation order. Some of these procedures were not complied with such as written instructions, omissions were not properly carried out, cardinal changes and no provision for variation was provided in the contract. In summary, it can be concluded that if the process of variation order (VO) is conducted in good manner and follow the procedure stated in the contract, the validity issues may not arise and interest of the parties are protected.
format	Thesis
qualification_level	Master's degree
author	Mazahar, Norazilan
author_facet	Mazahar, Norazilan
author_sort	Mazahar, Norazilan
title	Validity issues of variation order in construction contracts
title_short	Validity issues of variation order in construction contracts
title_full	Validity issues of variation order in construction contracts
title_fullStr	Validity issues of variation order in construction contracts
title_full_unstemmed	Validity issues of variation order in construction contracts
title_sort	validity issues of variation order in construction contracts
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment & Surveying
granting_department	Faculty of Built Environment & Surveying
publishDate	2019
url	http://eprints.utm.my/id/eprint/86154/1/NorazilanMazaharMFABU2019.pdf
_version_	1747818497696595968

Validity issues of variation order in construction contracts

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