Time-Cost Performance Effect of Change Orders from Accelerated Contract Provisions
Publication: Journal of Construction Engineering and Management
Volume 142, Issue 3
Abstract
Accelerated contract provisions (ACPs) such as cost-plus-time () and incentives/disincentives (I/D) are increasingly common, yet very little is known about their pure time-cost performance effects on change orders. To fill this large knowledge gap, a two-stage research methodology drawing on 1,372 highway improvement projects completed in California was adopted for this study. The Stage I study investigated the marginal change-order impacts of two ACPs, pure and I/D combined with . How ACP change orders affect projects’ time-cost performance was numerically modeled and successfully validated over the Stage II study. The results clearly showed that both ACPs led to more schedule-change and cost-change orders than conventionally contracted projects, whereas I/D combined with performed significantly better than pure in terms of the magnitude of schedule-change orders. This conveys an important recommendation to state transportation agencies (STAs) that be used with an I/D provision. The results and numerical models of this study would help STAs better assess and justify the impact of change orders on the duration and cost of projects, enabling them to more effectively use contingency amounts. Use of the models can also benefit contractors requesting a change order because the models can provide them with advanced knowledge of the probable time-cost growth rates specifically for the pursued ACP.
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Acknowledgments
The research study was funded by the California Department of Transportation (Caltrans) and the authors would like to sincerely acknowledge the assistance and cooperation of Caltrans in obtaining project data, especially to Mr. Anthony Perry and Mr. John Kung at the Division of Construction and the Office of Project Engineers for their contributions to the project data collection. Their assistance was crucial to the successful completion of this research paper. Opinions expressed are those of the authors and are not necessarily those of Caltrans.
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Information & Authors
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Published In
Journal of Construction Engineering and Management
Volume 142 • Issue 3 • March 2016
Copyright
© 2015 American Society of Civil Engineers.
History
Received: Feb 19, 2015
Accepted: Aug 11, 2015
Published online: Oct 19, 2015
Published in print: Mar 1, 2016
Discussion open until: Mar 19, 2016
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