APPENDIX C

SURVEY QUESIONNAIRE

Dear respondents,

The undersigned is currently taking his Master in Business Administration program on his
degree and is conducting study on “Impacts of Variation Orders on the Financial and
Operational Performance of Thaison Builder and Developer Inc.” As an important player in
the industry, your participation is very much wanted to make his study meaningful and beneficial.

Please answer the attached questionnaires faithfully and completely and rest assured
that all information will be treated with strictest confidentiality

PART I: RESPONDENT’S PROFILE

Please check appropriate box for your answer.

I. Current Designation

AM / PM / PIC / Dept / Site Head

Site Officer / Office Engineer/Site Architect

Head office Staff

Laborers / Workers

II. Working Experience in Construction Industry

Below 5 years

5-10 years

11-15 years

Above 15 years

III. Years of stay in Thaison Builders

Below 5 years

Below 5 years

5-10 years

11-15 years

Above 15 years
PART II: QUESTIONNAIRE ON PREVALENCE OF VARIATION ORDER

Following criteria are types of variation orders that normally occur during construction phase on
the building or project.

1. Addition: any construction that increases a building's size or activities by adding to its
structure. For example, adding another room or story to a house would be considered an addition

2. Omission: occurs when something required to complete the building or comply with the
building codes is not shown on the plans and or in the specifications. For example, a sidewalk
between two buildings is required for pedestrian traffic, but this is not shown on the plans.

3. Substitution: changes in products, materials, equipment, and methods of construction from

those required by the Contract Documents and proposed by Contractor

4. Others: not classifiable as addition, omission and substitution

Rating Description
4 Very Frequent (VF)
3 Frequent (F)
2 Seldom (S)
1 Never (N)

INSTRUCTION: Following deals with the employees perceived prevalence of variation order.
Please evaluate each item using 4-point Likert Scale indicated below by checking the number that
best corresponds your answer.

1.1 From your personal experience, what types of Variation

4. VF

1. N
2. S
3. F
Orders occurred in Construction projects?

1. Additional Works

2. Omission from Works

3. Substitution of Works

4. Others, please specify

1.2 Relative to your personal experience, how frequently are

4. VF
the following types of site Instructions encountered on

1. N
2. S
3. F
construction projects?

1. To vary the design, quality or quantity of the works

2. To resolve discrepancies (e.g. rectify errors, omissions)

3. To reiterate or enforce contractual provisions (e.g.

instruction to remove from site goods that do not
conform to original specifications)

4. To deal with monetary allowance (e.g. instruction

indicating how to spend money budgeted under prime
costs)

5. To protect the client's interest (e.g. instruction to remove

from site camp a worker who constitutes a nuisance)
Rating Description
4 Strongly Agree (SA)
3 Agree (A)
2 Disagree (D)
1 Strongly Disagree (SDA)

1.3 To what extent do you agree with the following

1. SDA
4. SA

2. D
3. A
statements?

1. A clause permitting variation orders is an essential

feature of any construction contract

2. Most variation orders can be avoided

3. A variation order clause is provided because

construction projects involve complex operations which
cannot be accurately determined in advance

4. The existence of a variation order clause is an aspect

that tends to encourage clients/consultants to change
their minds during the course of a contract

5. All clients are fully aware that there could be

unnecessary costs that accrue due to a variation order

6. The excessive occurrence of variation orders increases

the possibility of unethical practices

PART III: QUESTIONNAIRE ON CAUSES OF VARIATION ORDERS

(Adapted from Arain & Pheng, 2006 – origins and causes of variation orders)

INSTRUCTION: Following deals with the employees perceived causes of variation order. Please
evaluate each item using 4-point Likert Scale indicated below by checking the number that best
describe your answer Where, Very Frequent (VF) =4, Frequent (FR) =3, Seldom (SE) =2, Never
(NE) =1

2.1 Frequency of occurrence the following causes of

1. NE
2. SE
3. FR
4. VF
variation on below statements :

CLIENT:

1. Change in scope

2. Change in design

3. Change in project schedule

4. Owner’s Financial concerns

5. Late payment of billing or completed works

6. Inadequacy on project objectives

7. Replacement of materials

8. Change in specifications

9. Obstinate nature of the client

CONSULTANT:

1. Change in design

2. Errors and omission on design

3. Conflict between contract documents

4. Adequacy on scope of work for contractor

5. Design complexity

6. Shop drawing details

7. Consultant’s knowledge of available materials and

equipment
2.1 Frequency of occurrence the following causes of

1. NE
2. SE
3. FR
4. VF
variation on below statements :Continuation

CONTRACTOR:

1. Contractor’s involvement on design

2. Availability of Equipment

3. Contractor’s Financial difficulties

4. Defective workmanship

5. Poor procurement process

Misunderstanding of tender documents during

6.
cost estimate stage

OTHERS:

1. Change in government regulations

2. Weather Changes

3. Change in economic conditions

4. Unforeseen conditions

5. Others, please specify

PART IV: QUESTIONNAIRE ON IMPACTS OF VARIATION ORDERS

INSTRUCTION: Following deals with the employees perceived impacts/effects of variation order.
Please evaluate each item using 4-point Likert Scale indicated below by checking the number that
best describe your answer where, Severe (SE) =4, Major (MJ) =3, Minor (MI) =2, Insignificant
(IS)=1

3.1 To what extent the impacts of variation orders based on :

3. MJ

1. IS
2. MI
4. SE
FINANCIAL IMPACT:

Excessive variation orders will result in incurring

1.
unnecessary Costs

2. The reduction of the occurrence of variation orders can

optimally lower construction delivery costs
Time compression in construction operations can
3.
contribute to significant reduction of unnecessary costs
The reduction of variability in construction operations
4.
can contribute to significant reduction of unnecessary
costs

No matter how carefully a variation order is

5.
administrated, indirect costs accrue on it
The occurrence of variation orders is the major factor of
6.
delay in delivery of construction projects

7. Variation orders will result on the decrease in

productivity

8. Variation orders will result Increase in overhead

expenses

9. Time and material charges related to immediately

affected tasks.

10. Inflation affects cash flow and loss of earnings

11. Recalculation of network increased time-related

charges and overheads
3.1 To what extent the impacts of variation orders based on :

3. MJ

1. IS
2. MI
4. SE
OPERATIONAL IMPACT:

Delay completion schedule

1.

2. Dispute between owner/consultant and contractor

Delay of materials and tools

3.

Work on hold
4.

Demolition and rework

5.

6. Degradation of health & safety

7. Additional health & safety equipment/measure

8. Professional reputation of one or more parties adversely

Affected

9. Complaints of one or more of the parties to the contact

10. Degradation of quality standards

11. Additional special equipment needed

*Your time and cooperation are highly appreciated. Please check the questionnaire to ensure that
you have not skipped any questions. Thank you.

(Signed/Date)