POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Open University System

Institute on Open and Distance Education
Master of Science in Construction Management

REACTION PAPER #02: VARIATION ORDER

MODULE 2

In partial fulfillment of the requirements for the subject

MSCM 601: Contract and Legal Aspects in Construction Management

Submitted by:

CHRIS ALMER D. RAMOS

2024-21434-MN-0
MSCM-LOC-1-1A
MSCM 601 - Contract and Legal Aspects in Construction Management
Assignment 2

Reaction Paper on Module 3: Variation Order

A variation order (VO) is a formal written request to make changes to the original building
contract. These changes usually have to do with the work to be done, the cost, or the schedule.
These differences can be caused by unplanned events, changes to the design, or changes to
the materials and tools used. The goal of this reaction paper is to reflect about what I learnt and
how I felt as a technical facilitator at DSWD dealing with change orders on small scale
infrastructure projects, and to relate what I learnt at work to what I learnt in the module about
variation order.
One of the most important things to learn from this presentation is that variation orders are
necessary and difficult in construction tasks, as a technical facilitator (civil engineer) at DSWD,
it’s quite challenging in facilitating variation order since there has a timeline to target in the
project, but at the same time it is necessary because it will help to fully accomplished the whole
scope of work of the project. These changes will happen no matter what design changes, site
conditions, or client wants. To manage them well, you need to follow a structured process and
make sure that all changes are recorded, accepted, and put into action quickly. During the
lecture, it was also talked about how architects handle variation orders, including finding
changes and starting them, as well as communicating and coordinating with everyone involved.
Another important thing is that proper documentation is very important when placing a variation
order. As the presentation made clear, keeping detailed records of the costs, time, and reasons
for the modifications makes things more open and reduces disagreements between contractors,
customers, and consultants. In my experience, I checked the cost analysis where I can check
the availability of funds to request for release. I also checked the project's target timeline to see
if the facilitation of variation order may affect the construction timeline, and I checked the
reasons of contractor if the acceptable or considerable to proceed in facilitating variation order.
I have a personal experience with variation orders as a Technical Facilitator on building projects.
One example happened during a project is when unexpected soil conditions were found in
excavation works, in the program of works I assumed the soil to be excavated is loose soil, but
in actual construction, workers excavated a hard soil and lots of rocks. This meant that a
variation order had to be made to change the design of estimated cost in excavation works
which raised costs and a possibility to expand the work timeline.
In this example, the start-up procedure included checking over the site and talking to
stakeholders to figure out what improvements needed to be made. To make the VO proposal,
they had to figure out how much more it would cost and what adjustments needed to be made
to the project's timetable. I attended series of client meetings to assist them in facilitation of
variation order and to discussed what are their plans and as a technical facilitator, I tell them the
documents that are expecting from me to comply for completeness of variation order
documents. The evaluation step, where the contractor and client looked over the suggested
change, was very important to make sure everyone was on the same page.
In my opinion, the hardest part of authorizing variation orders is finding a balance between the
time and money costs and the requirement to accomplish project goals. As a technical facilitator,
our role is to monitor if there was a risk in compromising the work accomplishment to tell the
contractor that they need to request a variation order as early as possible. The additional
excavation work expenses in the scenario above were high, and it took longer than expected to
secure the client's permission, which caused delays. Also, because the variation required
changes to the structure, there was a higher danger that the work would not be as good as it
might be, which had to be carefully monitored.
The paperwork and documents are another problem. Every time you make a change to an
order, you need to write down what you did, figure out how it will affect things, and acquire the
go-ahead from clients, contractors, and sometimes even lawyers. This process can be very
complicated, especially when there are a lot of changes that happen during a project. In our
process, the contractor requests the variation order. Then as a technical facilitator, I assisted the
client in assessing the variation order request. It will submitted review by Municipal Engineer as
recommending approval then noted by Regional Project Management Officer. Imagine the time
elapsed only for reviewing and approval of variation order to the client and other stakeholders.
So as soon as possible, if the contractor identified the possible risk in delaying projects, request
a variation order early to prevent suffering construction timeline.
As the presentation made apparent, one of the best ways to handle variation orders is to keep
clear and detailed records. This way, all modifications are recorded, and any extra expenses or
time changes are clear. Another crucial thing to do is to plan everything out well before
construction starts. It means being ready for any changes ahead of time and having a plan on
how to deal with them.
Managing variant orders also requires good communication. Keeping everyone involved up to
date on the changes, especially why they are happening, helps reduce confusion. As part of my
job, I make sure that clients are always aware of any changes, how much they will cost, and
how they can influence the project's schedule.
Lastly, the evaluation of the effects on cost and time must be done very carefully. For instance,
when I manage changes, I always make sure to tell the customer exactly how the changes
would affect their schedule and finances before I make any adjustments.
What we learnt based on what I've seen, I know that proactive planning is needed to handle
variation orders well. Anticipating possible changes and having a clear plan for how to deal with
them can help keep things running smoothly. One important lesson is that everyone needs to be
able to talk to each other openly. Everyone must know why changes are being made and how
they will be dealt with.
Also, it is very important to approve things and make decisions on time. If variant orders aren't
approved right away, the project timeline can get pushed back even more, which can slow down
overall progress. So, it's important to set up a simple approval process.
Lastly, I've learnt that variation orders can be hard, but they can also make the end project
better. Sometimes, VOs can help improve the design or use better materials or procedures,
which is good for the customer and the overall quality of the construction. In my experience as
technical facilitator, there are also an advantage of requesting VO. If there were fund savings
from procurement activities, the client requested a change order for additional works for more
functionality of project.
In conclusion, variation orders are an important part of managing a construction project. To
make sure that modifications are made correctly, they need to be thought through carefully,
written down clearly, and communicated well. As a technical facilitator, I've learnt how important
it is to manage VOs so that they don't have a detrimental effect on the project's cost, schedule,
or quality. There are a lot of problems that come up with variant orders, but using best practices
can help the project go more smoothly and make everyone happy with the results.

Prepared by

CHRIS ALMER D. RAMOS

MSCM-LOC 1-1A