STAKEHOLDERS’ PERCEPTION OF THE CAUSES AND EFFECTS OF VARIATION ORDERS IN PUBLIC CONSTRUCTION PROJECTS IN SOUTH-SOUTH ZONE OF NIGERIA

Purpose: The construction process is a complex and risky endeavour often associated with unexpected changes which can occur at any stage of the project and may eventually lead to issuance of variation orders. Variation orders are subject to numerous factors which have significant effects on project performance. The study examines the causes and effects of variation orders in construction projects within the South-South geopolitical zone of Nigeria. The choice of the study area is determined by its socio-economic importance to the nation. Design/methodology/approach: The study adopts the exploratory survey design approach in order to obtain the perception of professionals in the building construction industry on the causes and effects of variation order on construction projects. 241 valid questionnaires were used giving a response rate of 62.27%. Data obtained are analysed using mean score method, and Kruskal Wallis tests. Findings: The findings reveal that change of scope of work, errors and omissions in design, change in specifications by client, client`s financial difficulties and inadequate project objectives were the dominant causes of variation orders. In addition, the major effects of variation orders include the increase in overall project duration, increase in project cost, disputes, schedule delays, and rework. The conclusion is that, there is no difference in the perception of clients, consultants and contractors concerning the causes and effects of variation orders on the performance of construction projects. Practical implication: Professionals in the building construction industry should find the results of this research useful in enhancing their knowledge on effective project delivery and understanding the nature of causes and effects of variation order. Originality/value: Findings reveal that all the key stakeholders in the building construction industry; clients, consultants and contractors exhibit similar perceptions of the causes and effects of variation order in construction project delivery. This attests to the fact that variation is inevitable in construction projects.