Causes of change orders and its impact on road maintenance contracts

Shrestha, K K (2016) Causes of change orders and its impact on road maintenance contracts. PhD thesis, University of Nevada, Las Vegas, USA.

Abstract

Change orders (CO) commonly generate cost-growth, schedule-growth or both, in construction as well as in maintenance contracts. Literature reviews revealed that the causes and impact of CO on new construction contracts had been comprehensively studied, but the causes and impact of CO in maintenance contracts remained neglected. This study collected CO data on road maintenance contracts to determine the amount of CO and the most frequent and high-risk road maintenance activities that had CO. A Delphi study was conducted with 33 maintenance engineers from the state Department of Transportations (DOTs) to identify causes of CO and its impact on cost and schedule of road maintenance contracts. The results showed that the three important reasons of CO on the maintenance contracts were: changes in work scope, errors in the estimate, and failure to verify work site conditions before signing a contract. To reduce these CO, three most important preventive measures agreed by participants were: reviewing specifications, preparing accurate estimates, and reviewing the design drawing before bid solicitation. In this study, the CO contingency estimation tool was prepared using an artificial neural network (ANN) and a linear regression method. Historical CO data was used to predict the contingency cost for maintenance contracts. In order to reduce the negative impact on the schedule-growth, a schedule-crashing optimization tool was also developed. Hence, the primary contributions of this research to the body of knowledge are the quantification of the CO, the identification of the causes and preventive measures of CO, and the development of the tools to manage cost and schedule growth in road maintenance contracts.

Item Type: Thesis (Doctoral)
Thesis advisor: Shrestha, P P
Uncontrolled Keywords: failure; optimization; contingency; specifications; artificial neural network; maintenance contract; neural network; quantification
Index terms: schedule growth, construction contract, estimate, quantification, Delphi method, change order, estimation, engineer, design drawing, body of knowledge, specification, maintenance contract, artificial neural network, crashing, literature review, neural network
Subjects: artificial intelligence, data analysis and analytics, financial and cost management, technical documentation, modelling and simulation, data collection methods, profession, project controls, measurement and scaling, contractual condition, knowledge management, contract type, maintenance engineering
Topics: Procurement, Contract Administration, Time Control, Design Practice, Digital Applications, Roles and Professions, Cost Management, Business Strategy, Research Practice, Information Management
Descriptive scope: 4 PCEA

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