Quantitative Definition of Projects Impacted by Change Orders
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VIEW THE REPLYPublication: Journal of Construction Engineering and Management
Volume 128, Issue 1
Abstract
Change, defined as any event that results in a modification of the original scope, execution time, or cost of work, is inevitable on most construction projects due to the uniqueness of each project and the limited resources of time and money available for planning. Change may occur on a project for a number of reasons, such as design errors, design changes, additions to the scope, or unknown conditions. For each change, contractors are entitled to an equitable adjustment to the base contract price and schedule for all productivity impacts associated with the change. Changes may or may not have an impact on labor productivity. Existing literature uses subjective evaluation to determine whether the project is impacted. Projects impacted by change cause the contractor to achieve a lower productivity level than planned. The focus of this paper is to quantify whether an electrical or mechanical project is impacted by a change order. Through statistical hypothesis testing, groups of factors that correlate with whether a project is impacted by change orders were identified and used to develop a quantitative definition of impact. Logistic regression techniques were used to develop models that predict the probability of a project being impacted. The results of this research show that percent change, type of trade, estimated and actual peak manpower, processing time of change, overtime, overmanning, and percent change related to design issues are the main factors contributing to the project impact.
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References
Hanna, A. S., Russell, J. S., and Gotzion, T. W. (1997). “An investigation into the impacts of change orders on labor efficiency in the mechanical construction industry: Phase II.” Technical Report to the Mechanical Contracting Foundation and the Sheetmetal and Air Conditioning National Association.
Hanna, A. S., Russell, J. S., Gotzion, T. W., and Nordheim, E. V.(1999a). “Impact of change orders on labor efficiency for mechanical construction.” J. Constr. Eng. Manage., 125(3), 176–184.
Hanna, A. S., Russell, J. S., Nordheim, E. V., and Bruggink, M. J.(1999b). “Impact of change orders on labor efficiency for electrical construction.” J. Constr. Eng. Manage., 125(4), 224–232.
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Copyright © 2002 American Society of Civil Engineers.
History
Received: Oct 13, 2000
Accepted: Jan 29, 2001
Published online: Feb 1, 2002
Published in print: Feb 2002
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