The construction industry is one of the most active sectors of the Egyptian economy. This industry links with other sectors such as manufacturing of steel. One of the most projects that are continuing to grow rapidly in Egypt is the repetitive residential units due to the expansion of population in Egypt. The composition of the Egyptian population is a major contributor to the booming of the repetitive residential units sector in Egypt. This is because of more than half of the Egyptian population are under the age of 25. Construction projects contain complex operations that cannot be predicted. Also it is rare to find a construction project without changes. This leads to the issue of variation order. Variation orders cause time delay, cost overrun, quality defects, and other negative impacts. Moreover, variation orders lead to uncertain flow processes and increase of non value-adding activities which reduce the output value. This research aims to study the impact of variation orders on performance of repetitive residential units in Egypt by identifying the causes, impact on project performance and the associated non value-adding activities from the point of view of owners, consultants and contractors. A compiled list was prepared regarding variation orders causes, non value-adding activities and impact of variation orders. This was done through an extensive literature review. This compiled list was concluded and adapted to the Egyptian construction industry through seven semi-structured interviews. The interviewees commented according to their experiences to the Egyptian context. Three further interviews with experts were conducted to ensure and confirm the results of the list that has been reached. Subsequently, a questionnaire survey was submitted to the participants and 76 responses were received including 23 owners, 24 consultants and 29 contractors. The data received was analyzed and the importance index was used for ranking. The analyzed data presents the result of each party independently. The degree of agreement was measured between different parties and it was noticeable that some conflicting points of view between the owner and the contractor, while good correlation was found between the owner and the consultant. The overall results indicated that the most three important causes of variation orders for the repetitive residential units in Egypt are change of plans or scope by owner, change of schedule sequence by owner and change in specifications by owner. Moreover, the most significant impacts of variation orders were time overrun, disputes between parties to the contract and professional reputation of one or more parties adversely affected. The study also found that the top five non value-adding activities with variation orders are waiting due to resources problem, rework due to varied works, waiting due to ignorance of specifications, frequent design changes and idling due to the shortage of skilled labor
Construction Engineering Department
MS in Construction Engineering
Committee Member 1
Committee Member 2
Marzouk, Mohamed Mahdy
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(2016).Impact of variation orders on performance of repetitive residential projects in Egypt [Master’s thesis, the American University in Cairo]. AUC Knowledge Fountain.
Sherif, Wael. Impact of variation orders on performance of repetitive residential projects in Egypt. 2016. American University in Cairo, Master's thesis. AUC Knowledge Fountain.