An Exploratory Study on Causes and Impacts of Variation Orders in Public-Private Partnership Projects

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2022-2

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Ejder, Kıvanç Umut

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Variation is an inevitable and inherent factor in public-private partnerships (PPP) projects which are a result of the extensive contract duration and the dynamic environment together with a large number of stakeholders. It is common in all kinds of PPP projects and determines the time limits and projected budget of the projects. For the social and financial viability of the project, it is important to be aware of these variations and their consequences that occur during the project life cycle. One of the most important items that affect the success of PPP projects is variation orders. It is anticipated that the identification of the causes of variation orders may lead to improvement in overall performance of PPP projects. This thesis aims to determine the causes and impacts of variation orders in PPP projects together with recommendations to minimize them. It is based on a literature review on the causes of variation orders in PPP projects, investigation of real PPP projects and interviews conducted with domain experts. The most important causes can be summarized as change of scope, inadequate design and project objectives, change in specifications, differing site conditions and unforeseen problems whereas the most important impacts are increase in project cost, schedule delay, disruption of continuity of services, rework and demolition, and interruption in credit payments. A conceptual model to manage variation orders in PPP projects is developed as an output of the thesis.

Subject Keywords

PPP, Public Private Partnership, Change Order, Variation Order, Conceptual Model

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https://hdl.handle.net/11511/96318

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Graduate School of Natural and Applied Sciences, Thesis

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Citation Formats

K. U. Ejder, “An Exploratory Study on Causes and Impacts of Variation Orders in Public-Private Partnership Projects,” M.S. - Master of Science, Middle East Technical University, 2022.