scholarly journals Change Order Management Factors in Building Projects in Northern Nigeria

2015 ◽  
Vol 12 (1) ◽  
pp. 223
Author(s):  
Richard A. Kolawole ◽  
Kamau K. Peter ◽  
Munala Gerryshom

<p>A change is an amendment or addition with respect to the original plans, specification or other contract documents and vital factor in construction project management. A change order is an instruction from an employer approving a change. Construction projects in Nigeria have suffered deleteriously as a consequence of extensive change orders, which has manifested in cost and time overruns, disputes, arbitration, litigation and even the abandonment of projects and this negatively impacts on the efficiency of the Nigerian construction industry.This paper explore the extent change order management strategies correlate with overall building project in Nigeria. Thirty strategies for managing change order were identified through intensive literature search. Twenty -one factors peculiar to the Nigerian construction industry were used to develop a questionnaire. A total of 323 questionnaires were administered through stratified random sampling to respondents in the cities of Abuja, Kano and Bauchi. The study targeted construction Consultants namely Architects, Quantity Surveyors Building Engineers, Service Engineer (Electrical &amp; Mechanical), Contractor and Building owners in three sub-study cities. The study recorded an overall response rate of 80.8 %. Using SPSS version 22, the questionnaire was subjected to reliability test. Statistical analysis was used using average index; spearman correlation coefficient; factor analysis and multiple regression were used to analysis data from survey questionnaire. The study reveal that change orders are better manage at the design stage and that clear and thorough project brief, better initial planning and thorough detailing of design are the three topmost management strategies. The study established that overall project success is impacted by change order management with a R<sup>2</sup> of 0.252, meaning that change order management at the design stage accounts for 25.2% of the variation in building project outcomes. The Spearman's (rho) also show strong agreement among respondents. The study concluded that proper adoption and use of project implementation phase principles by project sponsor, increased effort at the design stage of projects by project participant and allocation of adequate resources to project requirement will help minimize change orders in project delivery in Northern Nigeria.</p>

2020 ◽  
Vol 3 (4) ◽  
pp. 1349
Author(s):  
Hendy Eka Putra ◽  
Hendrik Sulistio

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.


Author(s):  
Zain Ghazi Al-Kofahi ◽  
Amirsaman Mahdavian ◽  
Amr Oloufa

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.


2020 ◽  
Vol 3 (1) ◽  
pp. 175
Author(s):  
Dominicus Edwin ◽  
Mega Waty

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%.


Author(s):  
Mega Waty ◽  
Hendrik Sulistio

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.


2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Bon-Gang Hwang ◽  
Xiaopeng Deng ◽  
Xianbo Zhao

International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.


2011 ◽  
Vol 94-96 ◽  
pp. 2261-2264 ◽  
Author(s):  
Towhid Pourrostam ◽  
Amiruddin Ismail ◽  
Mahmood Mansournejad

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.


2020 ◽  
Vol 3 (1) ◽  
pp. 199
Author(s):  
Alexander Junius ◽  
Mega Waty

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.


2019 ◽  
Vol 26 (1) ◽  
pp. 71-85
Author(s):  
Murat Gunduz ◽  
Khaled Omar Mohammad

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.


2020 ◽  
Vol 3 (3) ◽  
pp. 511
Author(s):  
Adi Ananias Ardine ◽  
Hendrik Sulistio

The number of high rise building construction projects in Jabodetabek area continues to grow. The main reason is increasing population of the region, so that development in the vertical direction becomes a solution. There are three important criteria in every construction project, namely cost, quality, and time. These criteria must be agreed upon and regulated in the form of a contract. Based on prior research, change orders cannot be avoided in every construction project. Change order can give complex impact and able to harm related parties. To minimize and anticipate the occurrence of change orders, it is necessary to know the factors that can cause changes in a contract. The factors that have been determined from the results of the literature study are compiled into a questionnaire to find out the main causes of change orders. The questionnaire was distributed to owners, contractors and consultants in high rise building projects in Jabodetabek area. PLS-SEM is used as a method for analyzing data in this study with the help of the smartPLS 3.0 program. From the results of the analysis carried out, obtained two factors that have a significant influence on the change order, namely construction factors and administrative factors.  ABSTRAKJumlah proyek konstruksi gedung bertingkat di wilayah Jabodetabek terus bertumbuh. Alasan utama karena kondisi wilayah yang semakin padat, sehingga pengembangan pembangunan ke arah vertikal menjadi solusi. Terdapat tiga kriteria penting yang menjadi fokus dalam setiap proyek konstruksi, yaitu biaya, mutu, dan waktu. Kriteria-kriteria tersebut harus disepakati dan diatur oleh pihak-pihak yang terlibat sesuai dengan ketentuan peraturan yang berlaku dalam bentuk kontrak. Berdasarkan penelitian terdahulu, perubahan atau change order merupakan hal yang umum dan tidak dapat dihindari dalam setiap proyek konstruksi. Change order memberikan dampak yang kompleks, sehingga sangat berpengaruh terhadap kinerja suatu proyek konstruksi dan dapat merugikan pihak-pihak yang terlibat di dalamnya. Untuk meminimalisir serta mengantisipasi terjadinya change order, maka perlu untuk mengetahui faktor-faktor yang dapat menyebabkan perubahan dalam suatu kontrak pada proyek konstruksi gedung bertingkat. Faktor-faktor yang sudah ditentukan dari hasil studi literatur disusun menjadi sebuah kuesioner untuk mengetahui penyebab utama dari change order. Penyebaran kuesioner tersebut dilakukan terhadap owner, kontraktor, dan konsultan pada proyek gedung bertingkat di wilayah Jabodetabek. PLS-SEM digunakan sebagai metode untuk menganalisis data pada penelitian ini dengan bantuan program smartPLS 3.0. Dari hasil analisis yang dilakukan, didapat dua faktor yang memiliki nilai pengaruh signifikan terhadap change order, yaitu faktor konstruksi dan faktor administrasi.


2019 ◽  
Vol 4 (2) ◽  
pp. 14 ◽  
Author(s):  
Mohammadreza Habibi ◽  
Sharareh Kermanshachi ◽  
Behzad Rouhanizadeh

Delay and cost overrun in construction projects are two widespread problems that arouse practitioners’ and scholars’ concern. Therefore, the objective of this study was to identify Key Performance Indicators (KPIs) in each of Engineering, Procurement and Construction (EPC) phases separately and then calculate the weight impact that is associated with each of identified KPIs. Additionally, this study aimed to find the most appropriate Best Practices (BPs) for the identified phase-based indicators. Through a review of existing literature, a survey was developed to collect data from the completed construction projects. Various statistical methods, including two sample T-test and Kruskal-Wallis test, were utilized to analyze the data. Subsequently, Epsilon-Squared effect size method was applied to prioritize the identified KPIs. Since the lack of communication and slowness in decision making were found as the primary schedule Performance Indicators, schedule performance was identified to be highly affected by managerial approaches and actions. In addition, clients play a decisive role, because owner-driven change orders were found as the most crucial cost performance indicator affecting the performance of the engineering and construction phases. The outcome of this study helps practitioners and scholars to understand the phase-based cost and schedule KPIs, and appropriate mitigating strategies to improve the construction performance in EPC phases and save time and money.


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