Identification and Evaluation of Causes and Effects of Change Orders in Building Construction Projects

2011 ◽  
Vol 94-96 ◽  
pp. 2261-2264 ◽  
Author(s):  
Towhid Pourrostam ◽  
Amiruddin Ismail ◽  
Mahmood Mansournejad
Keyword(s):  
Construction Management ◽  
Construction Projects ◽  
Building Construction ◽  
Change Orders ◽  
Financial Difficulties ◽  
Management Problems ◽  
Change Order

Change orders are one of the main problems in construction projects. The objectives of this study are identification and evaluation of causes and effects of change orders as well as procedures of change orders control on building construction projects in Islamic Azad University (IAU) Shoushtar Branch in Iran. It is found that contractor's financial difficulties, previous construction delays by other contractors working on different contracts were important factors responsible for change orders in construction projects. However, there are five important factors that have been identified as having the greatest effects on change order. Finally, important methods in procedures of change orders control are recommended. Although, the research is restricted to IAU-Shoushtar Branch, the findings of construction management problems are common to other universities in their building construction projects.

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 Characteristics of Procurement Methods in Malaysia – Comparing Design-Bid-Build, Design-Build and Construction Management

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Azeanita Suratkon ◽  
◽  
Riduan Yunus ◽  
Rafikullah Deraman ◽  
◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Management ◽  
Construction Projects ◽  
Building Construction ◽  
Technical Expertise ◽  
Time Cost ◽  
Project Complexity ◽  
Design Build ◽  
Procurement Method ◽  
Design Bid Build

Design-Bid-Build (DBB) or commonly known as Traditional method is the earliest and most prevalent procurement method used in Malaysian construction industry. Design-Build (DB) and Construction Management (CM) procurement methods were later introduced in Malaysia as an endeavour to satisfy and accommodate the increase in project complexity and the need for avoiding drawbacks of the Traditional methods. Each procurement method has different nature and possesses certain characteristics. Therefore, this study was carried out to ascertain and compare the characteristics of these three procurement methods that are implemented in building construction projects in Malaysia. A questionnaire survey was conducted among architects, consultants, contractors and owners or developers to elicit their feedback on the characteristics which were categorised into time, cost, quality, complexity and flexibility, degree of involvement and responsibility allocation and technical expertise. The findings indicated that only DB method almost fulfils all the characteristics under the six categories, whereas, DBB methods garnered agreement only for certain characteristics under time, cost, complexity and flexibility and technical expertise categories. Meanwhile, the only CM method’s characteristics that satisfy agreement from the respondents are the often used of fast track approach and lack of certainty in price. This study concludes that when a procurement method is adopted for a construction project, not all the features or characteristics will turn out as expected. There are many factors that contribute and are influential on the success in procurement methods that are worth for further investigation.

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 ANALISIS KORELASI BIAYA CHANGE ORDER TERHADAP BOBOT PEKERJAAN PADA DUA PROYEK JALAN ASPAL PROVINSI BANTEN

2020 ◽  
Vol 3 (1) ◽  
pp. 175
Author(s):  
Dominicus Edwin ◽  
Mega Waty
Keyword(s):  
Correlation Analysis ◽  
Construction Projects ◽  
Pearson Correlation ◽  
Original Data ◽  
Parameter Change ◽  
Change Orders ◽  
Change Order ◽  
Degree Of Confidence ◽  
Order Change

In every project, one thing that often happens is a change order. Change order is a change of work after the contract is signed by the owner and contractor. These changes can occur at the beginning, middle, or in construction projects. To minimize change orders, a change order correlation analysis can be done using the original data, with the parameters change order ratio in addition (CORA) and change order ratio in substraction (CORS). The data used in this study uses two original change order contract data on projects in Banten Province. This study produced 4 correlation results obtained from Pearson correlation in the SPSS program. The results of the correlation of the weight of each work to CORA on project 1 did not show any correlation. The results of the correlation of weights for each work with CORA project 2 and the results of the correlation of weights with CORS project 2 showed a significant correlation at the 95% degree of confidence. The results of the correlation of the weight of each work with CORS project 1 showed a very significant correlation at the 99% degree of confidence.AbstrakDalam setiap proyek, salah satu hal yang sering terjadi ialah change order. Change order adalah perubahan pekerjaan setelah kontrak yang ditandatangani oleh pemilik dan kontraktor. Perubahan itu dapat terjadi pada awal, tengah, ataupun pada dalam proyek konstruksi. Untuk meminimalisir change order maka dapat dilakukan analisis korelasi change order menggunakan data asli, dengan parameter change order ratio in addition (CORA) dan change order ratio in substraction (CORS). Data yang digunakan pada studi ini menggunakan dua data asli kontrak change order pada proyek konstruksi jalan aspal di Provinsi Banten. Baik data proyek 1 maupun data proyek 2 memiliki data kontrak change order biaya awal dan data biaya setelah terjadinya change order. Studi ini menghasilkan 4 hasil korelasi yang di dapat dari korelasi pearson pada program SPSS. Hasil korelasi bobot tiap pekerjaan terhadap CORA pada proyek 1 tidak menunjukan adanya korelasi. Hasil korelasi bobot tiap pekerjaan dengan CORA proyek 2 dan hasil korelasi bobot dengan CORS proyek 2 menunjukan adanya korelasi yang signifikan pada tingkat derajat kepercayaan 95%. Hasil korelasi bobot tiap pekerjaan dengan CORS proyek 1 menunjukan adanya korelasi yang sangat signifikan pada tingkat derajat kepercayaan 99%.

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.

scholarly journals Quantifying the Third-Party Loss in Building Construction Sites Utilizing Claims Payouts: A Case Study in South Korea

2020 ◽  
Vol 12 (23) ◽  
pp. 10153
Author(s):  
Ji-Myong Kim ◽  
Kag-Cheon Ha ◽  
Sungjin Ahn ◽  
Seunghyun Son ◽  
Kiyoung Son
Keyword(s):  
Construction Management ◽  
Construction Projects ◽  
Building Construction ◽  
Assessment Model ◽  
Third Party ◽  
Sustainable Construction ◽  
Loss Assessment ◽  
Construction Sites ◽  
The Third ◽  
The Third Party

This study aims to quantify the losses to third-parties on construction sites by determining the loss indicators and identifying the relationship between the losses and the indicators to improve the sustainability on building construction sites. The growing size and intricacy of recent construction projects have resulted in the growth of losses, both in quantity and frequency. Notably, third-party losses are rapidly increasing owing to the urbanization of the environment and increases in construction scale. Therefore, for efficient and sustainable construction management, a financial loss assessment model is essential to mitigate and manage such loss. This study uses the third-party losses on construction sites obtained from a major South Korean insurance company to describe the difference from the material losses and to disclose the loss indicators based on actual economic losses. ANOVA analysis and multiple regression analysis are adopted to identify the variance and define the loss indicators and to make prediction models, respectively. Several groups of loss indicators are investigated, including construction information and the occurrence of natural disasters. The findings and results of this research afford an essential guide to sustainable construction management, and they can serve as a first stage loss assessment model for construction projects.

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 Causes of Change Orders in Construction Projects

2019 ◽  
Vol 9 (6) ◽  
pp. 4956-4961 ◽  
Author(s):  
W. M. A. Khalifa ◽  
I. Mahamid
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Field Survey ◽  
Change Orders ◽  
Financial Difficulties ◽  
Work Material ◽  
Public Construction

Change orders are usually issued to cover variations in the scope of work, material quantities, design errors, and unit rate changes. This study discusses variations in public construction projects in Saudi Arabia by investigating their causes, studying their effects on the project, identifying the beneficial parties, and suggesting remedies to alleviate the related problems. Tasks included conducting a field survey via a questionnaire. It was determined that the top five causes of change orders from contractors’ view are: owner’s additional works, errors, and omissions in design, lack of coordination between construction parties, defective workmanship, and owner financial difficulties.

scholarly journals Exploring the Causes of Design Changes in Building Construction Projects: An Interpretive Structural Modeling Approach

2021 ◽  
Vol 13 (17) ◽  
pp. 9578
Author(s):  
Shahab Shoar ◽  
Nicholas Chileshe
Keyword(s):  
Construction Projects ◽  
Structural Modeling ◽  
Project Managers ◽  
Building Construction ◽  
Value Engineering ◽  
Interpretive Structural Modeling ◽  
Change Orders ◽  
Construction Methods ◽  
Design Changes ◽  
New Construction

The purpose of this study is to investigate the mutual interactions between the causes of design changes using Interpretive Structural Modeling (ISM) and to classify the causes using the “Matrice d’Impacts Croisés Multiplication Appliquée à un Classement” MICMAC technique. This study further identifies and proposes strategies to mitigate design change occurrence and map them onto the identified connections between the causes. To achieve these goals, critical causes of design changes were identified through a comprehensive literature review; 23 key causes were then refined according to the opinions of relevant experts involved in the Iranian building construction sector. Stakeholders associated with each cause and the management areas from which causes arise were also considered. The factors “Unfamiliarity with new construction methods”, “Design errors”, “Value engineering”, “Scope uncertainty”, “Change orders”, and “Constructability ignored in the design phase”, which are highly influenced by other factors, emerged at the highest level of the ISM diagram, and “Clients’ attitudes and experience” as the main root cause of design changes at the bottom of the diagram. The MICMAC technique results showed that consultant-related causes significantly influence other causes, and policy and client-related causes have a feedback effect on the whole system. The findings of this study provide a better insight into how various causes of design changes are connected to one another and can ultimately assist project managers of different parties, even in other countries, to choose influential strategies to mitigate design changes in building construction projects.

scholarly journals ASSESSMENT OF CHANGE ORDER IMPACT FACTORS ON CONSTRUCTION PROJECT PERFORMANCE USING ANALYTIC HIERARCHY PROCESS (AHP)

2019 ◽  
Vol 26 (1) ◽  
pp. 71-85
Author(s):  
Murat Gunduz ◽  
Khaled Omar Mohammad
Keyword(s):  
Analytic Hierarchy Process ◽  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Important Change ◽  
Impact Factors ◽  
Analytic Hierarchy ◽  
Change Orders ◽  
Change Order ◽  
Hierarchy Process

Complexity is very high in construction project and constrained by money and time. Change orders are commonly required during the execution of construction projects. They may increase, omit or adjust tasks in the project. Change orders affect the performance of construction job because they disturb current jobs and affect their schedule. The motive behind this study is to outline a complete assessment on change orders impacts. A review on past studies was performed to capture change order factors that affect project performance. Literature review and interviews with the industry professionals were used to finalize the factors into 16 critical factors. A questionnaire was distributed to industry specialists to capture the effect of these 16 factors on project performance. Complete answers of 102 surveys were received. Analytic Hierarchy Process (AHP) and Relative Important Index (RII) were utilized to analyze the responses. This study differs from other past studies by studying change order impact factors on three different change order types namely additional, omission and substitutional works. The most important change orders impacts factors as per the analysis outcomes are increased project management efforts, increased project re-planning, loss of efficiency due to work interruption, increased reworks/demolition works and delay of payments. This paper would help construction professionals to recognize change order impacts and would assist them in taking proactive actions to limit these impacts.

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