The Evaluation of Variation Orders on Road Construction Project in Rural Nepal

Variation orders (VOs) contribute to time and cost overruns in Nepalese road projects and often trigger disputes. This mixed-methods study examined the causes of VOs on rural roads in Karnali Province using a targeted literature review, field observations, document review, case studies of 11 client–contractor–consultant projects (located for geographic spread, contractor size, and presence/absence of consultant oversight), and a closed-ended census survey of industry professionals across the three stakeholder groups. Quantitative analysis used the Relative Importance Index (RII) and descriptive statistics to compare stakeholder perceptions; qualitative evidence from site observations and documents triangulated the results. The findings identified variations in scope of work (additions, omissions, and alterations in employer requirements) as the primary cause (RII clients = 812; RII consultants = 780; RII contractors = 791). Secondary causes vary by stakeholder: clients and contractors rank “change in design and drawings by consultant” highly (RII 0.800), while consultants and contractors emphasize “errors and omissions in design” (RII consultants = 933; RII contractors = 864). Other contributors include inadequate site investigation, adverse site conditions, government intervention, and client-initiated changes. Stakeholders differ on causes but largely agree on effects and mitigation strategies. The study’s originality is its stakeholder‑comparative mixed-methods focus on Karnali rural roads, producing empirically grounded, actionable mitigation measures. Improving scope definition, completing designs, and strengthening early site investigation can substantially reduce VOs. The paper recommends coordinated national research led by academic and professional bodies, in partnership with government and industry, to develop standardized guidance and capacity-building.