Effects of delivery systems on change order size and frequency in mechanical construction

Riley, D R; Diller, B E and Kerr, D (2005) Effects of delivery systems on change order size and frequency in mechanical construction. Journal of Construction Engineering and Management, 131(9), pp. 953-962. ISSN 0733-9364

Abstract

Change orders represent one of the largest sources of cost growth on building construction projects. Field generated, or "unforeseen" change orders can also be highly disruptive to field productivity. Design-build delivery methods can potentially help minimize change orders on construction projects. This study was performed to closely examine the effects of delivery methods on the frequency and magnitude of change orders in mechanical construction, and how design-build business practices can be used to minimize the frequency of field generated chance orders. In a study of 598 change orders occurring on 120 construction projects performed by the same contractor, the total number of change orders was found to be close to the same on design-build and design-bid-build projects, however an 87% decrease in the average number of unforeseen change orders was observed on design-build projects versus design-bid-build projects. In addition, the average size of unforeseen change orders was 86% smaller on design-build projects. A detailed and qualified presentation of the research methodology and resulting data is provided. Key attributes and business practices leading to the results are discussed and practical applications of this research for owners and contractors are provided.

Item Type: Article
Uncontrolled Keywords: change orders; cost control; design/build; mechanical systems
Index terms: cost control, construction project, building construction, key attribute, mechanical system, research methodology, design-bid-build, change order, design-build delivery, delivery method, productivity, owner
Subjects: delivery method, building construction, sociology, management, production management, contractual condition, contractual arrangements, financial and cost management, risk assessment, mechanical systems, research design and methodology
Topics: Stakeholder Management, Risk Management, Procurement, Construction Technology, Cost Management, Business Strategy, Engineering Principles, Project Management, Research Practice, Contract Administration
Descriptive scope: 2 PC

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