Faculty of Postgraduate Studies and Scientific Research German University in Cairo Modeling to Reduce Variation Order in Construction Projects in Egypt Omar Magdy Hassan Fadl Supervised by Dr. Ayman H. Nassar 29th July 2017

Content Introduction Methodology Data Collection and Analysis Results VORS Model Conclusion

Introduction Research Problem Statement Variation order is a common phenomena among construction projects and leads to : Failure of achieving quality and requirements of the project within the planned time and budget. Affect negatively on the project life cycle. Results in claim between parties due to extra time and cost.

Introduction Research Objectives To develop a model to help in reducing variation order in construction projects in Egypt through: Determine and analyze the main factors that derive time delay and cost overrun. Find and evaluate solutions and alternatives to limit the effect of variation.

Introduction What is Variation Order ? Time Delay The variation order in construction projects is usually linked to the performance of time and cost. Time Delay Accepted delay with compensation Accepted delay without compensation Non-accepted delay Cost Overrun Variable/Fixed Cost Direct/Indirect Cost

Methodology

Data Collection and Analysis Survey General Information The questionnaire was divided into 3 sections. 100 questionnaires were collected 68% Males, 32% Females 85% Engineers, 15% Non-engineers 55% Contractor Companies, 18% consultant companies, 16% Owner Companies, 11% Others.

Data Collection and Analysis Methods of Analyzing Data Descartes Equation SPSS Software Mean Median Standard deviation

Results

Owner’s Factors Factor Weight (%) Mean Owner's financial problems 70.4 3.8261 Late in taking decisions 69.2   3.760870 Change of scope 69 3.75 Change in specifications by the owner 64.8 3.5217 Inadequate project objectives 63.8 3.4674 Interference of employer 59.6 3.2391 Replacement of materials or procedures Obstinate nature of owner 58.8 3.1957 Poor communication and coordination by owner and other parties 58.2 3.163 Unrealistic contract duration 53.8 2.9239

Consultant’s Factors Factor Weight (%) Mean Delays in approving shop drawings 68.4 3.7174 Delays in producing design documents. 68 3.6957 Errors and omissions in design 67.4 3.663 Conflicts among contract documents Change in design by the consultant 67.2 3.6522 Inadequate design Change in specification by the consultant 64.6 3.5109 Inadequate working drawing details Quality assurance/control. 64.4 3.5 Delay in performing inspection and testing by consultant 64.2 3.4891 Poor knowledge of available materials and equipment 61.6 3.3478 Un-use of advanced engineering design software 58.4 3.1739 Design complexity 55.8 3.0326

Contractor’s Factors Factor Weight (%) Mean Rework due to errors during construction 71.6 3.8913 Difficulties in financing project by contractor 71.4 3.8804 Poor site management and supervision 69.6 3.7826 Unavailability of skills 65.8 3.5761 Poor workmanship 64.6 3.5109 Shortage of material 64 3.4783 Delay in site mobilization due to unfamiliarity with local conditions 63.8 3.4674 Frequent change of sub-contractors because of their inefficient work 63 3.4239 Unqualified workforce 62.4 3.3913 Shortage of labors 60.8 3.3043 Differing site conditions Unavailability of equipment 60.2 3.2717 High cost of skilled labor 57.4 3.1196 Complex design and technology 55.8 3.0326

VORS Model Point of Comparison Website Model Software Model Independency YES NO Availability Integrity Be Updated Easily What is VORS ? VORS stands for Variation Order Reducing by Solutions. URL link www.variationorder.com

How to Use the VORS ? First Step: www.variationorder.com

How to Use the VORS ? Second Step:

How to Use the VORS ? Third Step:

How to Use the VORS ? Fourth Step:

How to Use the VORS ? Fifth Step:

Case Study Companies who used VORS: The model was accurate in determining the top factors deriving time and cost variation. Easily accessible and user friendly. If widely adopted, it will have a huge impact on construction projects and will reduce conflicts between involved parties.

Conclusion The Top Three Factors and Solutions: Owner’s financial problems Should have a good budget planner and cost control department Delays in approving shop drawings Should be carefully observed and managed to limit time delays, and additional cost. Rework due to errors during construction A correction action should be made as if crashing of project schedule

Recommendations For Future Studies Improve the VORS model through collecting more data to generalize and validate VORS solutions More research on specific type of construction projects in different regions to allow VORS to support guidelines and solutions for each type of projects, such as: Highways, Dams and Hospitals. Adopt VORS on a wide scale to be used as reference for solving claims and disputes between different parties.

Thank You Any Question ?