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Variations in government contract in Malaysia

Jaspal Singh Nachatar, Abdul Aziz Hussin and Abdelnaser Omran

Manager Journal, 2010, vol. 12, issue 1, 40-53

Abstract: The complexity of construction works means that it is hardly possible to complete a project without changes to the plans or the construction process itself. There can only be a minority of contracts of any size in which the subject matter when completed is identical in every respect with what was contemplated at the outset. As such, variations are inevitable in even the best-planned contracts. This study is attempted to examine the ways a variation was formed in law and project, in finding out whether the Standard Form of Contract used in Malaysia particularly the government Public Works Department (PWD) form has been utilized to the best level in variation cases. Additionally, this study examined the benefits of variations to parties in contract and also provides suggestions and assumptions in an effort to contribute solutions to issues and problem detected. The research methodology used in this study was an extensive review of relevant literature, case study, empirical questionnaires and structured interviews and general observations based on experience and surroundings. The academic study approach incorporated stages such as initial understanding, data and information gathering, analysis of data, findings and conclusion and general suggestions in the study. The major findings of this study, among others, revealed that the existences of variations are common in projects. The main cause of variations was due to client request because of inadequate project objectives for the designer to develop comprehensive design. Besides, the analysis pointed out that the government form of contract the Public Works Department (PWD) 203/203A can help in overcoming projects with variation because of the clear defined procedure. This study also found that proper planning and coordination at tender stage can minimize the risk of ‘unwanted’ variations. In conclusion, this study recommended that future research should be done in design and build based contract as such new information sharing can lead to an expansion to the body of knowledge of the construction industry in Malaysia

Keywords: Variation; governament contract; variation order; Penang; Malaysia. (search for similar items in EconPapers)
Date: 2010
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