Variation and its valuation in design-build contract with regard to the public sector of Malaysia

Previous studies have shown that using a design-build approach may help keep costs down and avoid or significantly reduce the number of variation orders required. Despite this, there is always the possibility for variation to occur. According to the Auditor-General’s Report 2018, several design-buil...

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Main Author:	Ismail, Nazaitul Hazira
Format:	Thesis
Language:	English
Published:	2022
Subjects:	H Social Sciences (General) TH Building construction
Online Access:	http://eprints.utm.my/id/eprint/99667/1/NazaitulHaziraIsmailMFABU2022.pdf
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id	my-utm-ep.99667
record_format	uketd_dc
spelling	my-utm-ep.996672023-03-19T09:17:53Z Variation and its valuation in design-build contract with regard to the public sector of Malaysia 2022 Ismail, Nazaitul Hazira H Social Sciences (General) TH Building construction Previous studies have shown that using a design-build approach may help keep costs down and avoid or significantly reduce the number of variation orders required. Despite this, there is always the possibility for variation to occur. According to the Auditor-General’s Report 2018, several design-build projects expended an additional 20% of the contract sum due to variations and changes to the original scope of work. As a result, project costs and timelines can easily balloon out of control without adequate management. This study was carried out to identify the leading causes contributing to variations, as well as the method for valuing such variations. It focused specifically on design-build projects undertaken by public sector organisations. A total of 10 projects for building and civil engineering works completed between 2011 and 2021 using PWD Form DB 2010 were selected. The primary data were collected through semi-structured interviews with eight senior engineers and senior quantity surveyors involved in the variation administration of the selected case studies. Subsequently, a document study was undertaken to supplement the data collected during interviews. Findings indicate five causes of variation, with changes in the scope of work by the end user being the most common. These employer-related changes are most likely to occur as a result of ambiguity in the Government’s Requirements. Finding out the main causes of variation might aid contract administrators in initiating proactive measures for future design-build public projects to minimise the negative impact on cost and time. Besides that, this study discovered that four methods for valuing variation were used in the selected case studies. Variation can be valued using either Contract Sum Analysis, Contract Schedule of Rates, a fair valuation, or a daywork basis. The suitability and appropriateness of the method for valuing variation varies depending on the conditions in which the obligations and types of work are to be performed. This study would serve as the best practice recommendations for administering variation work in design-build projects, which differ from the conventional projects that most contract administrators are familiar with. 2022 Thesis http://eprints.utm.my/id/eprint/99667/ http://eprints.utm.my/id/eprint/99667/1/NazaitulHaziraIsmailMFABU2022.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:149992 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	H Social Sciences (General) TH Building construction
spellingShingle	H Social Sciences (General) TH Building construction Ismail, Nazaitul Hazira Variation and its valuation in design-build contract with regard to the public sector of Malaysia
description	Previous studies have shown that using a design-build approach may help keep costs down and avoid or significantly reduce the number of variation orders required. Despite this, there is always the possibility for variation to occur. According to the Auditor-General’s Report 2018, several design-build projects expended an additional 20% of the contract sum due to variations and changes to the original scope of work. As a result, project costs and timelines can easily balloon out of control without adequate management. This study was carried out to identify the leading causes contributing to variations, as well as the method for valuing such variations. It focused specifically on design-build projects undertaken by public sector organisations. A total of 10 projects for building and civil engineering works completed between 2011 and 2021 using PWD Form DB 2010 were selected. The primary data were collected through semi-structured interviews with eight senior engineers and senior quantity surveyors involved in the variation administration of the selected case studies. Subsequently, a document study was undertaken to supplement the data collected during interviews. Findings indicate five causes of variation, with changes in the scope of work by the end user being the most common. These employer-related changes are most likely to occur as a result of ambiguity in the Government’s Requirements. Finding out the main causes of variation might aid contract administrators in initiating proactive measures for future design-build public projects to minimise the negative impact on cost and time. Besides that, this study discovered that four methods for valuing variation were used in the selected case studies. Variation can be valued using either Contract Sum Analysis, Contract Schedule of Rates, a fair valuation, or a daywork basis. The suitability and appropriateness of the method for valuing variation varies depending on the conditions in which the obligations and types of work are to be performed. This study would serve as the best practice recommendations for administering variation work in design-build projects, which differ from the conventional projects that most contract administrators are familiar with.
format	Thesis
qualification_level	Master's degree
author	Ismail, Nazaitul Hazira
author_facet	Ismail, Nazaitul Hazira
author_sort	Ismail, Nazaitul Hazira
title	Variation and its valuation in design-build contract with regard to the public sector of Malaysia
title_short	Variation and its valuation in design-build contract with regard to the public sector of Malaysia
title_full	Variation and its valuation in design-build contract with regard to the public sector of Malaysia
title_fullStr	Variation and its valuation in design-build contract with regard to the public sector of Malaysia
title_full_unstemmed	Variation and its valuation in design-build contract with regard to the public sector of Malaysia
title_sort	variation and its valuation in design-build contract with regard to the public sector of malaysia
granting_institution	Universiti Teknologi Malaysia, Faculty of Built Environment & Surveying
granting_department	Faculty of Built Environment & Surveying
publishDate	2022
url	http://eprints.utm.my/id/eprint/99667/1/NazaitulHaziraIsmailMFABU2022.pdf
_version_	1776100632523964416

Variation and its valuation in design-build contract with regard to the public sector of Malaysia

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