Impact of change orders on construction productivity

1991 ◽  
Vol 18 (3) ◽  
pp. 484-492 ◽  
Author(s):  
Osama Moselhi ◽  
Charles Leonard ◽  
Paul Fazio
Keyword(s):  
Construction Projects ◽  
Labour Force ◽  
Productivity Loss ◽  
Field Investigation ◽  
Productivity Change ◽  
Change Orders ◽  
Construction Productivity ◽  
Productivity Losses ◽  
Quantitative Results ◽  
The Cost

In construction projects it is virtually certain that there will be changes made during the course of the work, and that the owner (or design professional) and the contractor will seldom agree on the cost and schedule impact of the changes. This is particularly so on fast track construction, where design and construction are overlapped to accelerate the delivery of projects. Without a doubt, the most contentious area of impact of change orders is their effect on the productivity of the contractor's labour force. This paper presents the quantitative results of a comprehensive field investigation using 90 cases drawn from 57 different construction projects to identify the effects of change orders on productivity. The results indicate a significant direct correlation between the labour component of change orders and the loss of productivity, for both civil/architectural and electrical/mechanical works. These losses are exacerbated by the added presence of other major causes of productivity losses such as acceleration and inadequate scheduling and coordination. Regression models are developed for the direct estimation of productivity losses due to change orders, incurred both independently and in conjunction with other major causes of productivity loss. Key words: construction, productivity, change orders, contemplated changes, impact cost, quantitative models.

scholarly journals Delay and cost overrun in road construction projects in Jordan

2015 ◽  
Vol 4 (2) ◽  
pp. 288 ◽  
Author(s):  
Nabil Al-Hazim ◽  
Zaydoun Abusalem
Keyword(s):  
Construction Projects ◽  
Road Construction ◽  
Weather Conditions ◽  
Public Works ◽  
Fiscal Year ◽  
Cost Overrun ◽  
Construction Time ◽  
Change Orders ◽  
Critical Problems ◽  
The Cost

This study aims to identify the most important factors that cause delay in road construction projects in Jordan, which results in cost and time overrun allocated for this type of engineering projects and cause critical problems for both the developer and the contractor. The gap between the cost at completion and that originally estimated, known as cost overrun, can be regarded as one of the most important parameters reflecting the success of projects. In the public sector, money spent on project change orders results in increased construction time which in return reduces the number and size of the projects that can be completed during any given fiscal year. To achieve this goal, the documents and the final reports for several sample projects implemented over the years 2000 to 2008 were analyzed. All the projects were administered by the same organization taken from Jordan Ministry of Rural and Public Works. The results of this study can assist highway officials in their design, planning, scheduling and projects completions so that necessary actions can be taken to control these overruns in future projects. The study showed that 19 factors might cause delays of road construction projects as defined through a detailed literature review. The analysis of the study indicated that the top causes affecting time and cost overrun in road construction projects in Jordan are Terrain and Weather conditions.

A dynamic Modelling of Labor Productivity Impacts Arising from Change Orders in Road Projects

2021 ◽  
Author(s):  
Zain Ghazi Al-Kofahi ◽  
Amirsaman Mahdavian ◽  
Amr Oloufa
Keyword(s):  
Labor Productivity ◽  
Construction Projects ◽  
Productivity Loss ◽  
Dynamic Modelling ◽  
Change Orders ◽  
Factors Affecting ◽  
Road Projects ◽  
Change Order ◽  
The Impact ◽  
Sd Model

It is vital to investigate the system dynamics (SD) between the change orders and labor productivity to identify the causes of the productivity loss of the construction projects. Most productivity loss studies were financed from the contractor’s part and rely on the contractor’s data. This research highlighted the problem of productivity loss resulting from issuance of a change order by utilizing a previously developed SD model. It conducted a sensitivity analysis to evaluate the impact of overtime, overmanning, temperature and learning on the behavior of the SD model quantifying change orders' impact on labor productivity. Based on the results, SD provides more reliable results comparing with the measured mile analysis (MMA) approach for the compensation request, considering the leading factors affecting the productivity loss other than the change order. The model developed in this study can accept or reject the responsibility of a change order for occurrence of productivity loss.

scholarly journals IDENTIFIKASI RISIKO CHANGE ORDER PROYEK KONSTRUKSI JALAN

2021 ◽  
Vol 5 (1) ◽  
pp. 225
Author(s):  
Mega Waty ◽  
Hendrik Sulistio
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Road Construction ◽  
Real Data ◽  
Intermediate Frequency ◽  
Risk Identification ◽  
Construction Work ◽  
Change Orders ◽  
Change Order ◽  
The Cost

A Change Order is a written and legal work order that changes the scope of the original contract, with compensation that has been agreed upon by the owner and the contractor. Changes can be in the form of adding or reducing the scope of work, changing materials, or changing schedules. Change Order causes the cost of contract items to swell, planning errors and negligence as well as changes in scope that can be reduced by sharpening planning results. The scope of research on road construction in Indonesia, especially in DKI Jakarta and Banten provinces. This study aims to determine the identification of change orders in road construction projects. Data obtained from real data on road construction projects from 2013-2018 on 16 road construction project packages in the form of road construction project addendum contracts. Based on the addendum contract, added work, less work, addition of new items and removal of work items are determined. The identification of change order risk is seen from three aspects, namely the addition and reduction of work items, the removal of items and the addition of new items and the wishes of the owner, thereby increasing the cost of the change order contract. This study found 732 changes in construction work items. Risk identification is obtained from the frequency of changes above 35% which is an intermediate frequency that tends to increase the occurrence of change orders. The results of risk identification were obtained for 31 construction work items, the highest percentage was for Thermoplastic Road Marking work, followed by 30 other construction work items. Keywords: risk identification; change orders; road construction projects  AbstrakChange Order adalah perintah kerja tertulis dan sah  yang mengubah lingkup kontrak semula, dengan kompensasi  yang sudah disetujui oleh pemilik dan  kontraktor.  Perubahan dapat berupa penambahan atau pengurangan lingkup pekerjaan, perubahan material, atau perubahan jadwal. Change Order menyebabkan biaya  item kontrak membengkak, kesalahan perencanaan dan kelalaian serta perubahan ruang lingkup yang dapat dikurangi dengan mempertajam hasil perencanaan.. Lingkup penelitian pada konstruksi jalan di Indonesia khususnya  provinsi DKI Jakarta dan Banten. Penelitian  bertujuan untuk  mengetahui  identifikasi change order proyek konstruksi jalan. Data didapat dari data riil proyek konstruksi jalan dari tahun 2013- 2018 pada 16 paket proyek konstruksi jalan berupa kontrak addendum proyek konstruksi jalan. Berdasarkan kontrak addendum maka ditentukan pekerjaan tambah, pekerjaan kurang, penambahan item baru dan penghilangan item pekerjaan. Identifikasi risiko change order dilihat dari tiga aspek yakni penambahan dan pengurangan item pekerjaan, penghilangan item dan penambahan item baru dan keinginan dari pihak owner sehingga meningkatkan biaya kontrak change order.  Penelitian ini mendapatkan 732 perubahan  item pekerjaan konstruksi.  Identifikasi risiko didapat dari  frekuensi perubahan diatas 35% yang merupakan frekuensi menengah yang cenderung meningkatkan terjadinya change order. Hasil identifikasi risiko didapat pada  31 item pekerjaan konstruksi, yang tertinggi persentase pada pekerjaan  Marka Jalan Termoplastik, diikuti 30 item pekerjaan konstruksi lainnya.

Carpentry workers issues and efficiencies related to construction productivity in commercial construction projects in Alberta

2006 ◽  
Vol 33 (8) ◽  
pp. 1075-1089 ◽  
Author(s):  
Kasun N Hewage ◽  
Janaka Y Ruwanpura
Keyword(s):  
Construction Projects ◽  
Oil And Gas ◽  
Labour Force ◽  
Construction Workers ◽  
Geographical Differences ◽  
Construction Productivity ◽  
Human Management ◽  
Weather Changes ◽  
And Performance ◽  
Oil And Gas Sector

For decades, many researchers have reported the decline in construction productivity, but it is impossible to generalize the productivity problems due to issues such as geographical differences, weather changes, skill level differences in the labour force, and workload demand. There are currently approximately 160 000 construction workers in Alberta, and the value of ongoing and future projects in the oil and gas sector alone is over Can$200 billion. Because of the high demand and necessity for a comprehensive research study for Alberta to improve construction productivity, a 2 year study commenced with the collaboration of four eminent contractors to investigate human, management, and external issues. Under human issues, 101 construction workers in the carpentry trade were observed, interviewed, and surveyed by questionnaire. This paper discusses the research method, results, and recommendations of the productivity research specific to the human issues. These recommendations were communicated to the contractors for improving the human issues by developing and analyzing a new expectancy model considering construction workers' effort and performance and the tool times observed to mitigate the reasons for non-tool time.Key words: construction productivity, worker motivation, expectancy theory, tool time, construction workers.

Incremental Costs for Psoriasis and Psoriatic Arthritis in a Population-based Cohort in Southern Sweden: Is It All Psoriasis-attributable Morbidity?

2016 ◽  
Vol 43 (3) ◽  
pp. 640-647 ◽  
Author(s):  
Sofia Löfvendahl ◽  
Ingemar F. Petersson ◽  
Elke Theander ◽  
Åke Svensson ◽  
Caddie Zhou ◽  
...  
Keyword(s):  
Psoriatic Arthritis ◽  
Productivity Loss ◽  
International Classification Of Diseases ◽  
Population Based ◽  
Drug Costs ◽  
Productivity Losses ◽  
Classification Of Diseases ◽  
A Minor ◽  
The Cost

Objective.To estimate incremental costs for patients with psoriasis/psoriatic arthritis (PsO/PsA) compared to population-based referents free from PsO/PsA and estimate costs attributable specifically to PsO/PsA.Methods.Patients were identified by International Classification of Diseases, 10th ed., codes for PsO/PsA using information from 1998 to 2007 in the Skåne Healthcare Register, covering healthcare use for the population of the Skåne region of Sweden. For each patient, 3 population-based referents were selected. Data were retrieved from Swedish registers on healthcare, drugs, and productivity loss. The human capital method was used to value productivity losses. Mean annual costs for 2008 to 2011 were assessed from a societal perspective.Results.We identified 15,283 patients fulfilling the inclusion criteria for PsO [n = 12,562, 50% women, mean age (SD) 52 (21) yrs] or PsA [n = 2721, 56% women, mean age 54 (16) yrs] and included 45,849 referents. Mean annual cost per patient with PsO/PsA was 55% higher compared to referents: €10,500 vs €6700. The cost was 97% higher for PsA compared to PsO. Costs due to productivity losses represented the largest share of total costs, ranging from 52% for PsO to 60% for PsA. Biological drug costs represented 10% of the costs for PsA and 1.6% for PsO. The proportion of cost identified as attributable to PsO/PsA problems was greatest among the patients with PsA (drug costs 71% and healthcare costs 31%).Conclusion.Annual mean incremental societal cost per patient was highest for PsA, mainly because of productivity losses and biological treatment. A minor fraction of the costs were identified as attributable to PsO/PsA specifically, indicating an increased morbidity in these patients that needs to be further investigated.

scholarly journals DAMPAK CHANGE ORDER PADA PROYEK PERKERASAN JALAN

2020 ◽  
Vol 3 (1) ◽  
pp. 199
Author(s):  
Alexander Junius ◽  
Mega Waty
Keyword(s):  
Construction Projects ◽  
Road Construction ◽  
Relative Importance ◽  
Validity And Reliability ◽  
Change Orders ◽  
Importance Index ◽  
Change Order ◽  
Order Change ◽  
The Cost ◽  
The Impact

In a construction project, changes during the construction period are common. This change can be in the form of an increase or decrease in volume and type of work, changes in work specifications, or changes in the schedule for implementation. Changes in projects are often known as change orders. Change orders must be approved by all parties in a project namely, contractors, owners, and consultants. Change orders are caused by several factors such as changes in design, delays in procurement of goods, differences in field conditions, and others. The impact of this change order is felt by all parties involved in a project, but the change order has a different impact on each party involved. This study aims to determine the biggest impact of change orders from the contractor. In the questionnaire submitted the impact of change order is divided into several variables namely, the cost of quality, time, organization, and others. From the responses of respondents regarding the impact of change orders on road construction projects, an analysis was performed with the calculation of the Relative Importance Index (RII), and the biggest impact was obtained. Before the data is processed with RII, the validity and reliability tests are performed first. The biggest impact of change orders caused by change orders is that change orders increase the budget for contractors, change orders increase overhead costs, increase project duration, cause project costs overruns, and change orders cause a decrease in project profits. AbstrakPada suatu proyek konstruksi, perubahan selama masa konstruksi merupakan hal yang umum terjadi. Perubahan ini bisa berupa penambahan atau pengurangan volume dan jenis pekerjaan, perubahan spesifikasi pekerjaan, maupun perubahan jadwal pelakasnaan. Perubahan dalam proyek sering dikenal change order. Change order harus disetujui oleh semua pihak yang ada dalam suatu proyek, yaitu kontraktor, pemilik, dan konsultan. Change order disebabkan oleh beberapa faktor seperti perubahan desain, keterlambatan pengadaan barang, perbedaan kondisi lapangan, dan lain-lain. Dampak dari change order ini dirasakan seluruh pihak yang terlibat dalam suatu proyek, namun change order menimbulkan dampak yang berbeda pada tiap pihak yang terlibat. Penelitian ini bertujuan untuk mengetahui dampak change order terbesar dari pihak kontraktor. Dalam kuesioner yang diajukan dampak change order dibagi menjadi beberapa variabel yaitu, biaya mutu, waktu, organisasi, dan lainnya. Dari hasil tanggapan responden mengenai dampak change order pada proyek konstruksi jalan, dilakukan analisis dengan perhitungan Relative Importance Index (RII), dan didapat dampak terbesar. Sebelum data diolah dengan RII dilakukan uji validitas dan uji reliabilitas terlebih dahulu. Dampak change order terbesar yang ditimbulkan oleh change order adalah change order menambah anggaran untuk kontraktor, change order meningkatkan biaya overhead, menambah durasi proyek, menyebabkan biaya proyek membengkak, dan change order menyebabkan penurunan keuntungan proyek.

scholarly journals PREDICTING PRODUCTIVITY LOSS CAUSED BY CHANGE ORDERS USING THE EVOLUTIONARY FUZZY SUPPORT VECTOR MACHINE INFERENCE MODEL

2015 ◽  
Vol 21 (7) ◽  
pp. 881-892 ◽  
Author(s):  
Min-Yuan Cheng ◽  
Dedy Kurniawan Wibowo ◽  
Doddy Prayogo ◽  
Andreas F. V. Roy
Keyword(s):  
Support Vector Machine ◽  
Construction Projects ◽  
Productivity Loss ◽  
Support Vector ◽  
Model Parameters ◽  
Inference Model ◽  
Fuzzy Support Vector Machine ◽  
Change Orders ◽  
Artificial Neural Network Ann ◽  
The Impact

Change orders in construction projects are very common and result in negative impacts on various project facets. The impact of change orders on labor productivity is particularly difficult to quantify. Traditional approaches are inadequate to calculate the complex input-output relationship necessary to measure the effect of change orders. This study develops the Evolutionary Fuzzy Support Vector Machines Inference Model (EFSIM) to more accurately predict change-order-related productivity losses. The EFSIM is an AI-based tool that combines fuzzy logic (FL), support vector machine (SVM), and fast messy genetic algorithm (fmGA). The SVM is utilized as a supervised learning technique to solve classification and regression problems; the FL is used to quantify vagueness and uncertainty; and the fmGA is applied to optimize model parameters. A case study is presented to demonstrate and validate EFSIM performance. Simulation results and our validation against previous studies demonstrate that the EFSIM predicts the impact of change orders significantly better than other AI-based tools including the artificial neural network (ANN), support vector machine (SVM), and evolutionary support vector machine inference model (ESIM).

scholarly journals THE INFLUENCE OF CHANGES IN CONSTRUCTION PRODUCTIVITY: A STATE OF THE ART REVIEW

2021 ◽  
Author(s):  
Felipe Araya ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Opportunity To Learn ◽  
Construction Sector ◽  
Productivity Improvement ◽  
Future Studies ◽  
Construction Productivity ◽  
Productivity Losses ◽  
Data Collection Process ◽  
The Impact

Multiple studies have found that productivity in Chilean construction has been stagnated during recent decades; thus, creating the need to understand better what factors have led to these results in the construction sector. In the international literature, studies have found that changes are the leading cause of productivity losses in construction projects; however, limited studies have been done in Chile in this regard. This context is understood as an opportunity to learn from the existing literature about the impact of changes in construction productivity, more importantly, such learning can contribute to the discussion of productivity improvement in the Chilean construction sector. This study recommends that more studies are necessary to be done in Chile regarding the impact of changes in construction projects. Namely, future studies should be based on an extensive database of projects so that generalization can be drawn for the construction industry. Additionally, the data collection process of changes in construction should be improved, paying specific attention to the size of changes, the timing of changes, and the scale of assessment—namely activity, project, and industry levels. Ultimately, this study aims to contribute to the discussion about productivity improvement in Chilean construction as this remains one of the main challenges in the industry

Productivity losses due to diabetes in urban and rural China

2021 ◽  
Author(s):  
Hongying Hao ◽  
Lizheng Xu ◽  
Anli Leng ◽  
Jingjie Sun ◽  
Nicholas Stephen ◽  
...  
Keyword(s):  
Labor Force ◽  
Rural Areas ◽  
Diabetes Management ◽  
Labour Force ◽  
Productivity Loss ◽  
Premature Death ◽  
Years Of Life Lost ◽  
Rural Regions ◽  
Productivity Losses ◽  
Urban And Rural Areas

Abstract Objective: To provide the first estimates of the cost of productivity losses attributed to diabetes age 20-69 years old in urban and rural areas of China. Methods: Construct through life table modelling, expectancy life of diabetes sufferers, including the years of potential life lost and working years of life lost. Using the human capital approach, we measured the productivity losses attributed to absenteeism, presenteeism, labor force dropout and premature deaths due to diabetes of the population aged 20-69 years in urban and rural areas in China. Results: In 2017, we estimated that there were 100.46 million diabetes lost hours, with the total cost of productivity losses US$613.60 billion, comprising US$326.40 billion from labor force dropout, US$186.34 billion from premature death, US$97.71 billion from absenteeism, and US$27.04 billion from presenteeism. Productivity loss was greater in urban (US$490.79 billion) than rural areas (US$122.81 billion), with urban presenteeism (US$2.54 billion) greater than rural presenteeism (US$608.55 million); urban absenteeism (US$79.10 billion) greater than rural absenteeism (US$18.61 billion); urban labour force dropout (US$261.24 billion) greater than rural labour force dropout (US$65.15 billion) and urban premature death (US$147.90 billion) greater than rural premature death (US$38.44 billion). Conclusions: Diabetes had a large and significant negatively impact on productivity in urban and rural in China, with a significant gap in the level of diabetes management in urban compared to rural regions. Productivity loss was significantly higher in urban than rural regions. Further investment is required in the prevention, diagnosis and control of diabetes in under-resourced health services in rural locations and also in urban areas, where most diabetes cases reside. Specifically, targeted and effective diabetes prevention and management actions are urgently required.

scholarly journals Change Orders in Iraqi Construction Projects

2018 ◽  
Vol 12 (1) ◽  
pp. 458-467
Author(s):  
Hafeth I. Naji ◽  
Wadhah Amer Hatem ◽  
Baydaa Hussain Maula
Keyword(s):  
Data Mining ◽  
Literature Review ◽  
Construction Projects ◽  
Good Faith ◽  
Behavior Changes ◽  
Change Orders ◽  
Data Mining Techniques ◽  
Change Order ◽  
Using Data ◽  
The Cost

Introduction: Change orders in construction are considered to be one of the greatest controversial problems that must be handled and also considered to be difficult for project management to reasonably resolve as any variation leads to claims. Any construction contract is agreed under the concept of “good faith,” which include that the parties will have to trust each other in order to work on agreeing on a contract and that contract is considered to be reasonable when there is no purpose of taking benefit of the parties throughout the contract life. However, as soon as the contract wants to be changed by generating a change order, the parties behavior changes in relation to the initial “good faith” environment Objective: The aim of the paper is to find the causes of the change order and its effect on the projects and then analyze the causes using data mining techniques. Methods: The methodology of the paper includes the following steps. Several factors that lead to change orders were gathered from the literature review. A questionnaire was formed and then distributed to the managers, owners, contractors and engineers. A review of the project's documents was conducted to find the number of change orders in the project and analysis of the causes of the change orders was done using data mining techniques. Results and Conclusion: The change orders have a harmful impact on the cost and it must be minimized, the change order was analyzed using Adda Boost technique and the accuracy was about 95 which is considered a very good result.

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