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Government of Nepal has been planning to develop modern cities through land pooling programs as per the Town Development Act 2045. The study is conducted in Ichangu Narayan (Raniban) Land Pooling Project phase II and the status of variation orders, their origin, causes and impacts in project cost and completion time is analyzed to develop preventing measures which can be beneficial in upcoming similar projects. The objective of the research was to identify the types of variations and the origin and rank, to assess the impact of variation orders regarding cost and duration and to explore the preventive measures to minimize the variation orders. Primary data were collected from the questionnaire survey, key informant interview and field study. The secondary data were collected by means of desk study, relevant literature and text books review, maps and drawings and internet sources. From the study, main cause of variation orders impacting project completion time is known to be conflict between the contract documents and is originated from Consultant. Similarly, main cause of variation orders impacting project cost is additional work. 26.50% (Rs 45,700,255.02) cost above the contract cost has been incurred directly at the completion of the project. 12.40% (Rs 21,380,129.70) of contract cost has been paid for price escalation only. Similarly, 16.96% cost for the successive contract of the project has been increased by the extension of the contract duration. The appropriate recommendation has been given to the concerning parties involved in the construction work.

Impact of Variation Orders on Construction Project Cost: A case study of Land Pooling Project at Kathmandu of Ichangu Narayan, Nepal