IMPACT OF BIDDING ENVIRONMENT ON CHANGE ORDERS

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Bahadir V. Barbarosoglu ◽  
David Arditi
Keyword(s):  
Construction Projects ◽  
Potential Change ◽  
Project Cost ◽  
Change Orders ◽  
Public Building ◽  
Project Duration ◽  
Project Completion ◽  
The Difference ◽  
Dollar Amount ◽  
Total Project

Change orders occur during construction, and usually increase both construction cost and project duration. This paper investigates how change orders are related to the bidding environment. The data used in this study were collected from 74 public building construction projects awarded by the Public Building Commission of Chicago in the seven-year period 2008-2015. The contract values range between $0.3-$70 million, and the total worth of the projects is a little over $1.1 billion. While delay may result in liquidated damages for contractors, increase in project cost can cause financial problems for owners. It is in the interest of owners and contractors to study similar past projects, and to observe how change orders are affected by the level of competition in bidding. Owners must budget for contingencies, and contractors must adjust their resources in anticipation of change orders. It would therefore be quite desirable for owners and contractors to be able to predict the dollar amount and duration implications of potential change orders by making use of past historical data. The prediction of the dollar amount and duration implications of potential change orders before the construction starts can alert construction owners and contractors to potential delays in total project completion time and potential overruns in total project cost. Knowledge about potential change orders creates a predictable environment and improves the relationship between owners and contractors. The results of this study indicate that contractor-driven change orders are positively related to the difference between the lowest and the second lowest bids.

scholarly journals PERCEPATAN WAKTU PELAKSANAAN PEKERJAAN KONSTRUKSI DENGAN METODE CPM DAN TCTO

2019 ◽  
Vol 11 (1) ◽  
pp. 33-40
Author(s):  
Cut Zukhrina Oktaviani ◽  
Ibnu Abbas Majid ◽  
Risdiawati Risdiawati
Keyword(s):  
Completion Time ◽  
Construction Projects ◽  
Critical Path ◽  
Minimum Cost ◽  
Time Cost ◽  
Trade Off ◽  
Project Duration ◽  
Project Completion ◽  
Project Costs ◽  
Total Project

Construction delays are a common and major concern in most construction projects. Construction project delay can indirectly affect of project performance. Delay resolve method is to schedule crashing with various methods. This crashing planning is done by combining the Critical Path Method (CPM) and Time-Cost Trade-Off (TCTO) method for the minimum cost in crash duration calculation. Project A data is used to be a case studi in crash duration calculation and costs increase. Rescheduling with CPM result project completion time 120 days and after crashing project duration becomes 94 days, there was a reduction 26 days project completion time. Crashing programme are do to 18 activities from 30 critical activies rescheduling with CPM result. Total project costs changes is Rp. 19.923.466,- due working time addition (overtime) to reduce project time with Time Cost Trade Off method. Normal condition project costs is Rp. 985,171,182.52 and after duration crash becomes Rp. 1,005,094,648, -.

scholarly journals PENGARUH CHANGE ORDER TERHADAP BIAYA, MUTU, DAN WAKTU PADA PROYEK KONSTRUKSI GEDUNG BERTINGKAT

2020 ◽  
Vol 3 (4) ◽  
pp. 1349
Author(s):  
Hendy Eka Putra ◽  
Hendrik Sulistio
Keyword(s):  
Construction Projects ◽  
Building Construction ◽  
Time Analysis ◽  
Volume Changes ◽  
Change Orders ◽  
Project Completion ◽  
Work Volume ◽  
Design Changes ◽  
Change Order ◽  
Storey Building

The implementation of the construction project caused miscommunication, this made the contract became a reference during implementation. In the implementation of construction projects, there are often changes that not according to contract, for example: work volume changes, specifications changes, type or method of work changes, schedules changes , design changes, and others. These changes are commonly known as change orders. There are several things that cause a change order, for example: incompletable contract, design does not fit in the field, unsupportive weather, and others. This research is to determine the effect of change order in the aspects of cost, quality, and time in multi-storey building construction projects. Researchers used data from the responses of respondents consisting of contractors, consultants, and owners. The questionnaire made proposes several aspects of change orders and their effects on cost, quality, and time. Analysis of research data was carried out with the help of the SmartPLS 3.0 application program. The influence of change orders on costs is the lack of costs due to the addition of work items, while on quality is the quality decrease due to additional work volume, and on time is the delay in project completion due to changes in completed work.ABSTRAKPelaksanaan proyek konstruksi menyebabkan terjadi perbedaan pendapat yang disebabkan oleh pihak yang terlibat, hal ini membuat kontrak menjadi sangat penting dan menjadi acuan selama pelaksanaan. Pada pelaksanaan proyek konstruksi sering terjadi perubahan-perubahan yang akhirnya tidak sesuai dengan kontrak sebelumnya contohnya seperti: perubahan volume pekerjaan, perubahan spesifikasi, perubahan jenis atau metode pekerjaan, perubahan jadwal, perubahan design, dan lain-lain. Perubahan ini umum sekali terjadi dalam proyek konstruksi dan lebih sering dikenal sebagai change order.  Ada beberapa hal yang menyebabkan perlunya dilakukan change order, misalnya: kontrak yang dibuat tidak lengkap, design yang ada tidak sesuai dengan kondisi lapangan, cuaca yang tidak mendukung, dan lain-lain. Penelitian ini dilakukan untuk mengetahui besar pengaruh change order dalam aspek biaya, mutu, dan waktu dalam proyek konstruksi gedung bertingkat. Peneliti menggunakan data dari hasil tanggapan responden yang terdiri dari kontraktor, konsultan, dan pemilik. Kuesioner yang dibuat mengajukan beberapa aspek mengenai change order serta pengaruhnya terhadap biaya, mutu, dan waktu. Analisis data penelitian dilakukan dengan bantuan program aplikasi SmartPLS 3.0. Pengaruh change order terhadap biaya adalah kurangnya biaya akibat penambahan item pekerjaan, sedangkan terhadap mutu adalah menurunnya kualitas bangunan akibat penambahan volume pekerjaan, dan terhadap waktu adalah terjadinya keterlambatan penyelesaian proyek akibat perubahan pekerjaan yang telah selesai.

scholarly journals A Novel Method of Developing Construction Projects Schedule under Rework Scenarios

2019 ◽  
Vol 11 (20) ◽  
pp. 5710
Author(s):  
Guofeng Ma ◽  
Shan Jiang ◽  
Tiancheng Zhu ◽  
Jianyao Jia
Keyword(s):  
Construction Projects ◽  
Development Project ◽  
Real Estate Development ◽  
Design Structure Matrix ◽  
Project Duration ◽  
Project Completion ◽  
Design Structure ◽  
Novel Method ◽  
The Impact ◽  
Critical Chain

Construction projects have faced serious schedule delays caused by rework risks. However, it appears that traditional methods are of limited value in developing applicable project schedules. This study presents an analysis on construction projects schedule development under rework scenarios by a novel method named the improved critical chain design structure matrix (CCDSM). Research data are collected from a real estate development project in China. As a result, predictions of project completion duration and probability have been made. A reliable schedule considering information interactions has been developed and visualized. Rework impact areas of activities have been examined to quantitatively record the impact on project duration. To meet different demands, the method generates two more schedules setting different rework buffers. Furthermore, these activities have the potential of causing rework and have been quantified based on the calculation of two criticalities, providing an identification of rework-intensive works that should be payed close importance to, which have not be realized by previous methods. The results proved the feasibility and effectiveness of this method in developing a schedule for construction projects disturbed by rework, helping practitioners adopt measures to avoid rework-caused schedule delays and achieve sustainable development of such projects.

CAUSES OF VARIATION ORDERS FOR MEGA CONSTRUCTION PROJECTS

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Samer Ezeldin ◽  
Amr Khaled El-Sadek
Keyword(s):  
United Kingdom ◽  
Construction Projects ◽  
Construction Project ◽  
Project Schedule ◽  
Mena Region ◽  
Project Cost ◽  
Change Orders ◽  
The United Kingdom

Variations or change orders are inevitable in any construction project. They are defined as any change that happens in the scope of the project. Change is an additional scope of work, omission, or even alteration. This paper presents the main causes of variation orders in MENA region represented by Egypt. The research investigates the causes, as identified by clients, consultants, and contractors. It classifies them into four main categories: owner related, contractor related, consultant related, and other causes. The top 10 most important causes are ranked among the opinion of each party. The study reveals that the top 3 causes are: 1) The client instruction of additional works; 2) The contractor using ambiguous areas in the contract to request variations, and 3) continuous changes in the project schedule. A comparison about causes of variations was performed between Egypt, Palestine, Malaysia, and the United Kingdom. Furthermore, a model is proposed to provide the user with a scale that predicts the effect of the events triggering variations on both project cost and time.

scholarly journals Assessment of Change Orders Attributes in Preconstruction and Construction Phase

2019 ◽  
Vol 5 (3) ◽  
pp. 616
Author(s):  
Ali Raza Khoso ◽  
Jam Shahzaib Khan ◽  
Rizwan Ullah Faiz ◽  
Muhammad Akram Akhund
Keyword(s):  
Economic Growth ◽  
Construction Industry ◽  
Construction Projects ◽  
Critical Factors ◽  
Extensive Discussion ◽  
Change Orders ◽  
Design Modification ◽  
Project Completion ◽  
Change Order ◽  
The Right

Construction projects are very complex in nature. Each activity involves multiple varying tasks. Construction industry is the main source of economic growth. When change order occur performance of projects momentously affected.  Change orders often have a serious impact on the quality, time and cost. Eventually it results in disputes, delays, and dissatisfactions among stakeholders and ultimately results in failures of projects. In past several studies have been done to evaluate the causes of change order and its effects. Attempts have been made to quantify these impacts by many researchers, but the aim of this study is to identify the causes of change order in two different phases i.e. preconstruction and construction stage. Views were taken from relevant experts over included factors after in-depth literature review from past researches. A questionnaire was made and floated with different construction players from clients, consultants and contractors side. The data was analyzed by SPSS using average index technique. The analysis of data showed that, Mistakes in specifications, Mistakes in design and Lack of experience in selecting construction team by client are the most critical factors during preconstruction phase. Whereas, Design modification by owner, change in scope at later stage and Delays in payment by client are most critical factors of construction phase, responsible for change order. The extensive discussion of these factors revealed various parameters related to Pakistan construction. This study will enable the clients, consultants and contractors to be aware of factors which causes changes in orders and their consequences on project completion. By the identification of possible reasons, the right decisions can be made to mark the project successful.

Factors influencing the level of accuracy and compromise in overhead estimation for construction projects in India: an exploratory investigation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harish Kumar Singla ◽  
Srividhya Sridharan
Keyword(s):  
Construction Projects ◽  
Goodness Of Fit ◽  
Negative Impact ◽  
Equation Modeling ◽  
Accurate Estimation ◽  
Cost Ratio ◽  
Project Cost ◽  
Content Type ◽  
Total Project Cost ◽  
Total Project

PurposePrevious studies have highlighted that overheads form a critical part of the total project cost. However, despite this knowledge, the precise estimation of overheads is often neglected in construction projects. This paper aims to examine the reasons for the lack of effort in estimation of overheads.Design/methodology/approachThe study is carried out in three stages. In stage one, an introductory survey is carried to understand the importance of overheads in total project cost. In stage two, a detailed survey is carried out to understand the factors that affect the level of accuracy and compromise made in estimation of overheads using partial least squares structural equation modeling (PLS-SEM). In the final stage, two cases are examined in form of interviews to validate the findings. The model is tested for its reliability, validity and goodness of fit.FindingsThe findings of the study suggest that the time and cost spent is a critical issue. Therefore, if the projects feel that the benefit cost ratio for time and cost spend in the process is positive, they estimate the overheads accurately, whereas if they feel that the cost benefit ratio for time and cost spend is negative, they compromise with accurate estimation. Further, there is a lot of subjectivity in defining and processing overheads that leads to a negative impact on the accuracy level in estimation of overheads. The contract type also influences the compromise in estimation.Research limitations/implicationsFirst, there is scant work that has been carried out on understanding the behavior of overheads and reasons for lack of effort in its accurate estimation in construction projects. Therefore, there are no recent citations in the study. Further, the study being exploratory in nature draws conclusions based on opinion expressed by respondents on survey and interview. Finally, the study is geographically limited as the entire respondent's work in India.Practical implicationsProjects should give due attention to accurate estimation of overheads. Accurate estimation of overheads can help in better control of project margins, thereby serving the profit-maximizing goals of organizations. A conscious effort by industry experts, academicians and researchers can bring some discipline in overhead estimation rather than leaving the critical domain only to thumb rules or experiential assumptions. The regulatory bodies and the project management bodies are advised to come up with some kind of ready reference that can quickly help estimators to arrive at accurate overhead costs.Originality/valueTo the best of knowledge, it is a rare study to exclusively focus on project overhead cost in construction industry and focus on its estimation efforts. The study also uses a robust research process, which improves the reliability and validity of its findings.

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.

scholarly journals Main Challenges to Concrete Recycling in Practice

2021 ◽  
Vol 13 (19) ◽  
pp. 11077
Author(s):  
Abdulmalek K. Badraddin ◽  
Rahimi A. Rahman ◽  
Saud Almutairi ◽  
Muneera Esa
Keyword(s):  
Construction Projects ◽  
Low Cost ◽  
Transportation Cost ◽  
Recycled Concrete ◽  
Structured Interviews ◽  
Project Cost ◽  
Main Challenge ◽  
Small Medium Enterprises ◽  
National Programs ◽  
Concrete Recycling

While concrete recycling is crucial to protecting the environment, its implementation in practice is low in many countries. This study aims to highlight challenges to concrete recycling. To achieve that aim, the study objectives are (1) to identify the main challenges to concrete recycling in construction projects; (2) to compare the main challenges between small–medium enterprises (SMEs) and large enterprises (LEs); and (3) to determine the underlying groups among the main challenges. Potential challenges were identified through a systematic literature review of journal articles and semi-structured interviews with fifteen industry practitioners. Then, the identified challenges were inserted into a questionnaire survey and distributed to industry practitioners. Eighty-nine valid responses were collected and analyzed using the mean score ranking, normalization, agreement analysis, and factor analysis techniques. The analyses show thirteen main challenges to concrete recycling. The main challenges include increased project duration, lack of national programs, lack of comprehensive rules and regulations, increased project cost, low demand for recycled concrete, low cost-effectiveness of concrete recycling, and increased transportation cost. However, there is no consensus on the criticality between SMEs and LEs. For example, increased project cost is the main challenge for SMEs but is only middlingly ranked for LEs. Finally, the main challenges can be categorized into three interrelated groups: people and technical, legal and environmental, and economic challenges. This study contributes to the literature by analyzing challenges that hinder concrete recycling in practice. The findings allow researchers and practitioners to develop strategies to reduce concrete recycling rejection.

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