Impact of change orders on small labor-intensive projects

Hanna, A S and Gunduz, M (2004) Impact of change orders on small labor-intensive projects. Journal of Construction Engineering and Management, 130(5), pp. 726-733. ISSN 0733-9364

Abstract

In today's construction, small projects can be just as important if not more important than the larger projects. However, small projects are usually fast track projects, which often involve overlapping design and construction time. Subsequent modifications may be required for the sections that are already under construction. These disruptions to the ongoing project are labeled as change orders. The impact due to changes has been described as the adverse effect upon the unchanged work due to changes in the contract. For this study, 34 projects were selected to develop a statistical model that estimates the amount of labor efficiency lost due to change orders for small projects. The variables in the final model are percent design related changes, percent owner initiated changes, the ratio of actual peak labor to estimated peak labor, the ratio of actual project duration to estimated project duration, and project manager's percent time on the project. The results of this paper are of value to owners, electrical and mechanical contractors, and construction managers. The model quantifies the impact of change orders by introducing the most important variables that bring the largest disruptions.

Item Type: Article
Uncontrolled Keywords: change orders; labor; productivity; project management
Index terms: statistical model, change order, efficiency, design and construction, project management, duration, productivity, small project, owner, construction manager, estimate, project manager
Subjects: financial and cost management, production management, management, performance management, contractual arrangements, contractual condition, profession, project controls, sociology, data science, project management theory and practice
Topics: Stakeholder Management, Research Practice, Roles and Professions, Quality Management, Contract Administration, Business Strategy, Time Control, Procurement, Cost Management, Project Management
Descriptive scope: 3 PCA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here