The impact of change orders on mechanical construction labour efficiency

Hanna, A S; Russell, J S and Vandenberg, P J (1999) The impact of change orders on mechanical construction labour efficiency. Construction Management and Economics, 17(6), pp. 721-730. ISSN 01446193

Abstract

Change orders impact many areas of a construction project. However, the impacts that change orders have on labour efficiency are much harder to quantify than other impacts and therefore are a significant risk to contractors. Little research has been completed in the past quantifying these impacts, so disputes are common between owners and contractors regarding the actual cost of change. This study used data from 43 projects to develop a linear regression model that predicts the impact of change orders on labour efficiency. The input factors needed for the model are (1) total actual project hours, (2) total estimated change hours, (3) impact classification, and (4) timing of change. The model calculates the labour loss in efficiency for a particular project so that owners and contractors will better understand the true impact of change on labour efficiency. The research is limited to the mechanical trade, but does include specific work in plumbing, HVAC, process piping, and fire protection.

Item Type: Article
Uncontrolled Keywords: change orders; impacts; labour efficiency; mechanical contractors; productivity
Index terms: actual cost, construction project, efficiency, regression model, productivity, owner, dispute, change order, construction labour, plumbing
Subjects: statistical analysis, sociology, production management, contractual condition, management, performance management, financial and cost management, dispute resolution, mechanical systems
Topics: Site Management, Contract Administration, Legal Issues, Design Practice, Quality Management, Stakeholder Management, Business Strategy, Cost Management, Project Management, Research Practice
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