Deviation clauses in construction contracts followed by various departments of Government of India are regarded as sources of disputes. This paper identifies and presents a study on problem areas pertaining to deviations such as nature of clauses, their improper application, financial hindrances to contractors and time delay in completion of project due to deviation. The study was conduected on CPWD and MES forms of contracts. A questionnaire survey was conducted and responses were received from 147 professionals (92 senior Government officials, 44 contractors and 11 consultants). Student's t-test was performed to analyse various mean values of responses. The study revealed that the deviation limit clause is ambiguous in its current form and professionals prefer that it should be replaced by a simpler clause based on certain percentage of quantities of individual items of deviations. However, a few professionals have expressed a different opinion. The study also concluded that time delay in finalising rates of items of deviations and ordering deviation towards completion of work are other critical issues which should be avoided.