ABSTRACT   

Variation order is a common phenomenon in construction projects. It involves an amendment of the original scope of a project as in the contract. Variation orders are caused from various factors.Variations often cause disputes and dissatisfactions among the parties involved in construction projects. Thus, it is very important to control variation orders in a construction project. According to Calibri">Arain and Pheng (2005) the effects of variation orders on institutional building projects revealed that variation orders contribute to increase in construction project cost. In view of this, the study aimed at establishing the causes and effects of variation orders on project in the Koforidua Municipality and suggests proactive measures to reduce them. Descriptive survey method was adopted. Purposive sampling technique was used to select a sample size of 55 building and construction professionals within the Koforidua Municipal Assembly. Questionnaire and interviews were the instruments used to collect the data which was analyzed using quantitative tools like tables and frequencies. The study revealed that, conflict among contract documents and design complexity are some of the causes of variations order in building project, delay in project completion, increase in project cost and low quality of work are some of the effects of variation order in construction projects. It is recommended that all the parties involved in the project especially the consultants should ensure that the design/specifications fall within the approved budget so as to avoid any inconveniences in a later date and contract documents must clearly define the task and works that needed to be done by all the parties involved in the project.