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Abstract.The maximum project performance would be achieved if the work invariably flows smoothly within time limits and anticipated budget. Variation orders result in time delay, cost overrun, quality defects, and other negative impacts. This is common in construction projects in Gaza Strip. The main objective of this study was to analyze the causes of variation orders in construction projects in Gaza Strip. The causes of variation orders in construction process in Gaza Strip were investigated through questionnaire survey of 36 classified construction companies, 25 consultants and 15 owners. 64 causes of variation orders were identified from literature review. The study results identified the top ten most important factors that include lack of materials and equipment spare parts due to closure, change in design by consultant, lack of consultant's knowledge of available materials, errors and omission in design, conflicts between contract documents, owner's financial problems, lack of coordination among project parties, using inadequate specification for local markets by international consultant, internal politics, and change is specification by owners. In general, the study shows an agreement among owners, consultants and contractors regarding the ranking of the 64 factors causing variation orders. The results also reveal that factors related to consultant are the most important causes of variation orders followed by the factors related to owner. An understanding of the causes of variation orders would be helpful for building professionals in assessing variation orders. Furthermore, the study would also assist professionals in taking proactive measures for reducing variation orders in construction projects. The findings from this study would also be valuable for all construction professionals in general.

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Purpose -Subcontractors play a significant role in the Palestinian construction industry as about 90 per cent of the work is performed by subcontractors. The main objective of this paper is to identify and analyse the major problems which exist between the contractors and subcontractors in the construction industry in the Gaza Strip. Design/methodology/approach -A questionnaire was designed to elicit contractors' and subcontractors' viewpoints regarding the most important causes of problems that affect the relationship between them. A total of 53 problems were identified based on a literature review, a pilot study was considered in this study and was listed under five groups. A total of 150 questionnaires were randomly sent to contractors and subcontractors. The respondents had extensive experience in the construction industry with average working experience of 20 years. The questionnaire was validated by the criterion-related reliability test that measures the correlation coefficients between the factors selected for in each group and for all groups as one entity, and structure validity test (Spearman test). Findings -The result of the survey indicated that, assigning part of the works to new subcontractor without informing the original subcontractor, contractor's financial problems, delay in contract progress payments, non-adherence to the conditions of the contract, non-adherence of the subcontractor to the time schedule, and lack of construction quality work were the most important causes of interface problems, while involvement in several projects with the contractor at the same time, weather conditions, and geological problems on site were considered as trivial causes of potential interface problems. Spearman's rank correlation tests showed that there are no differences in the viewpoints between contractors and subcontractors. Originality/value -The research findings might assist practitioners to focus on major problems which have existed between the contractors and subcontractors in the construction industry in their present and future projects. By eliminating or minimizing these problems, subcontractors are encouraged to contribute significantly to the capital risk, resources, managerial effort, and business expertise supporting the largest industry in Palestine. The paper would be valuable for all academics and industry professionals involved in construction business in general.

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