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variation orders and claims are generated due to lack of what?
This happens in a Lumpsum EPC Contract because of lacuna in Front end engineering stage and also because the needs and expectations of stakeholders were not factored in
Employer related Variations
Consultants related Variations
Contractors related Variations
Change of plans or scope by Employer
Change in design by Consultants
Lack of Contractor's involvement in design
Change of schedule by Employer
Errors and omissions in design
Unavailability of equipment
Employer's financial problem
Conflict between contract documents
Unavailability of skills
Inadequate project objective
Inadequate scope of work for contractor
Contractor's financial difficulties
Replacement of materials/procedure
Technology change
Contractor's desired profitability
Impediment in prompt decision making process
Value engineering
Differing site conditions
Obstinate nature of Employer
Lack of coordination
Defective workmanship
Change in specifications by Employer
Design complexity
Unfamiliarity with local conditions
Inadequate working drawing details
Lack of specialized construction manager
Inadequate shop drawing details
Fast track construction
Consultant lack of judgment and experience
Poor procurement process
Lack of consultant's knowledge of available materials and equipment
Lack of communication
Honest wrong belief of consultant
Contractor's lack of judgement &experience
Consultant's lack of required data
Long lead procurement
Obstinate nature of consultant
Honest wrong belief of contractor
Ambiguous design details
Complex design and technology
Design discrepancies (inadequate design)
Lack of strategic planning
Non-compliance design with govt. regulation
Contractor's lack of required data
Non-compliance design with owner's requirement
Contractor's obstinate nature
Change in specifications by Consultant
Improper understanding of specifications at the planning stage or inept execution in execution stage.
Delivery gaps created due tto llack of expertise, change of personnel while execution and unforeseen delays also contribute to this.
VO's are majorly caused because of unavailability of equipment, poor workmanship, and design complexity
Also, improved design and avoiding frequent design changes will be very effective in controlling the problem of variations.
