Management of Change Orders in Infrastructure Transportation Projects
Publication: Practice Periodical on Structural Design and Construction
Volume 27, Issue 1
Abstract
The Illinois Department of Transportation (IDOT) will handle many upcoming projects due to the recent statewide infrastructure strategic plan and the fast-track efforts affecting many infrastructure projects amid COVID-19. Nevertheless, many change orders are anticipated to occur on IDOT’s projects. Thus, this paper examines the proper contractual management of changes within IDOT infrastructure transportation projects by following a research method based on the integration between a desktop analysis and a focus group analysis. The desktop analysis involved collecting information and data from existing resources, case studies, and documents related to change orders. The focus group analysis involved consulting with change order experts to verify that the outcome of each research step is useful and to validate the final outcomes of the paper. Based on 50 documented major change orders in IDOT projects and three litigated cases, two findings are provided. First, the top causes for key change orders within IDOT projects include contract administration, allowable contingencies, quantity omission or error, differing site conditions, and design changes. Second, the most critical change order related challenges within IDOT’s infrastructure projects include approval procedures, compensation considerations, and applicable laws. This paper offers flowcharts, synopsis of opportunities and risks, and a checklist to help the contracting parties better administer change orders. Ultimately, the contributions of this paper to the practice include: (1) minimizing the number and amount of change orders, (2) helping the contracting parties better understand how their individual responsibilities contribute to the proper processing and management of changes and variations, (3) offering contractors the ability to visualize the different steps involved in the approval of change orders, (4) assisting the project stakeholders in identifying change order-related areas for improvement, and (5) allowing project owners to better mitigate, manage, and administer the contractual aspects of change orders.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data used and/or generated during this study are included in the published article.
Acknowledgments
The authors thank the staff of IDOT’s Office of Project Implementation (Bureau of Construction), in particular Mr. Tim Kell and Mr. Justan Mann, for providing the input to verify and validate the different steps of the research method. Also, the authors would like to thank Mr. James Sterr and Ms. Barb Smith from IDOT’s Office of Chief Counsel for providing guidance to locate the needed litigated cases.
References
ASCE. 2018. “2018 Illinois infrastructure report card.” Accessed June 22, 2021. https://www.infrastructurereportcard.org/state-item/illinois/.
Assaad, R., and M. A. Abdul-Malak. 2020. “Legal perspective on treatment of delay liquidated damages and penalty clauses by different jurisdictions: Comparative analysis.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 04520013. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000387.
Assaad, R., and I. H. El-adaway. 2020. “Enhancing the knowledge of construction business failure: A social network analysis approach.” J. Constr. Eng. Manage. 146 (6): 04020052. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001831.
Assaad, R., I. H. El-adaway, and I. S. Abotaleb. 2020. “Predicting project performance in the construction industry.” J. Constr. Eng. Manage. 146 (5): 04020030. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001797.
Berlin, J., K. Rumore, and M. Kelly. 2019. “Will your town benefit from Illinois’ $45 billion infrastructure plan?” Accessed June 22, 2021. https://www.chicagotribune.com/news/ct-viz-illinois-infrastructure-plan-database-20191018-dti3anpgqng7bg6oh4f4yafosq-htmlstory.html.
Choi, K., H. W. Lee, J. Bae, and D. Bilbo. 2016. “Time-cost performance effect of change orders from accelerated contract provisions.” J. Constr. Eng. Manage. 142 (3): 04015085. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001071.
CST (Chicago Sun Time). 2020. “Will construction of the Jane Byrne Circle Interchange ever get done?” Accessed June 22, 2021. https://chicago.suntimes.com/2020/5/20/21265234/jane-byrne-circle-interchange-delays-construction-kennedy-dan-ryan-randolph-madison.
El-adaway, I., S. Fawzy, T. Allard, and A. Runnels. 2016. “Change order provisions under national and international standard forms of contract.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 8 (3): 03716001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000187.
Equipment Finance Advisor. 2020. “Equipment watch.” Accessed June 22, 2021. https://www.equipmentfa.com/ServiceProvidersCompanyDetail.aspx?CompanyId=73&title=equipmentwatch.
Equipment Watch. 2020. “Rental rate blue book/cost recovery.” Accessed June 22, 2021. https://equipmentwatch.com/resource-library/product-guides/cost-recovery/.
FHWA (Federal Highway Administration). 2017. “National highway system travel: Annual vehicle-miles by functional system.” Accessed June 22, 2021. www.fhwa.dot.gov/policyinformation/statistics/2017/hm44.cfm.
FHWA (Federal Highway Administration). 2019. “Freight facts and figures 2011.” Accessed June 22, 2021. https://ops.fhwa.dot.gov/freight/freight_analysis/nat_freight_stats/docs/11factsfigures/table3_9.htm.
FHWA (Federal Highway Administration). 2020. “Traffic congestion and reliability: Trends and advanced strategies for congestion mitigation.” Accessed June 22, 2021. https://ops.fhwa.dot.gov/congestion_report/chapter3.htm#3_2.
Florey, K. 2018. “Change orders in Illinois: Change orders and public owners.” Accessed June 22, 2021. www.lorman.com/resources/change-orders-in-illinois-change-orders-and-public-owners-17134.
Ibbs, W. 2012. “Construction change: Likelihood, severity, and impact on productivity.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 4 (3): 67–73. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000089.
IDOT (Illinois Department of Transportation). 2016. “Standard specifications for road and bridge construction.” Accessed June 22, 2021. http://www.idot.illinois.gov/Assets/uploads/files/Doing-Business/Manuals-Guides-&-Handbooks/Highways/Construction/Standard-Specifications/Standard%20Specifications%20for%20Road%20and%20Bridge%20Construction%202016.pdf.
IDOT (Illinois Department of Transportation). 2020a. “Construction memorandum no. 4.” Accessed June 22, 2021. http://www.idot.illinois.gov/Assets/uploads/files/Doing-Business/Memorandums-&-Letters/Highways/Construction/Construction-Manual-Memos/mem04%209-10-20.pdf.
IDOT (Illinois Department of Transportation). 2020b. “Construction overview.” Accessed June 22, 2021. https://www.janebyrneinterchange.org/projects.
IDOT (Illinois Department of Transportation). 2020c. “Featured projects.” Accessed June 22, 2021. http://idot.illinois.gov/transportation-system/transportation-management/featured-projects/index.
IDOT (Illinois Department of Transportation). 2020d. “History & overview.” Accessed June 22, 2021. https://www.janebyrneinterchange.org/about/history-overview/.
IDOT (Illinois Department of Transportation). 2020e. “Illinois construction manual.” Accessed June 22, 2021. http://idot.illinois.gov/Assets/uploads/files/Doing-Business/Manuals-Guides-&-Handbooks/Highways/Construction/Construction-Manual/Construction%20Manual.pdf.
Illinois Comptroller’s Office. 2020. “Infrastructure.” Accessed June 22, 2021. https://illinoiscomptroller.gov/financial-data/state-expenditures/Infrastructure/.
Jane Byrne Interchange Project. 2018. “Financial plan annual update.” Accessed June 19, 2021. https://www.janebyrneinterchange.org/media/e3wiegsj/jane-byrne-financial-plan-annual-update-2018.pdf.
Jane Byrne Interchange Project. 2019. “Schedule.” Accessed June 19, 2021. https://www.janebyrneinterchange.org/about/schedule/.
Karakhan, A. A., and J. A. Gambatese. 2017. “Identification, quantification, and classification of potential safety risk for sustainable construction in the United States.” J. Constr. Eng. Manage. 143 (7): 04017018. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001302.
Khalafallah, A., and Y. Shalaby. 2019. “Change orders: Automating comparative data analysis and controlling impacts in public projects.” J. Constr. Eng. Manage. 145 (11): 04019064. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001700.
Khanzadi, M., F. Nasirzadeh, and M. S. Dashti. 2018. “Fuzzy cognitive map approach to analyze causes of change orders in construction projects.” J. Constr. Eng. Manage. 144 (2): 04017111. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001430.
Kim, J. J., J. A. Miller, and S. Kim. 2020. “Cost impacts of change orders due to unforeseen existing conditions in building renovation projects.” J. Constr. Eng. Manage. 146 (8): 04020094. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001888.
KTC (Kentucky Transportation Center). 2010. “Change orders and lessons learned.” Accessed June 22, 2021. https://uknowledge.uky.edu/cgi/viewcontent.cgi?article=1034&context=ktc_researchreports.
Lamb, E. 2020. “Illinois directs $25 million to speed grants for infrastructure.” Accessed June 22, 2021. https://www.ttnews.com/articles/illinois-directs-25-million-speed-grants-infrastructure.
Moselhi, O., I. Assem, and K. El-Rayes. 2005. “Change orders impact on labor productivity.” J. Constr. Eng. Manage. 131 (3): 354–359. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:3(354).
Osman, O. 2019. “Financial plan: Sixth annual update.” Accessed June 21, 2020. https://www.janebyrneinterchange.org/media/ci3ougym/jane-byrne-financial-plan-annual-update-2019-idot-signed.pdf.
Pradhananga, P., M. ElZomor, and G. S. Kasabdji. 2021. “Disaster waste management challenges in Nepal: Health impacts and the need for safe practices.” Nat. Hazard. Rev. 22 (2): 05021001. https://doi.org/10.1061/(ASCE)NH.1527-6996.0000438.
Roeder, D. 2020. “State offers grants for public works projects.” Accessed June 22, 2021. https://chicago.suntimes.com/politics/2020/5/12/21256293/illinois-offers-grants-local-public-works-projects.
Serag, E., and A. Oloufa. 2007. “Change orders impact on project cost, AC2007–3039.” Accessed June 22, 2021. https://peer.asee.org/change-orders-impact-on-project-cost.pdf.
Serag, E., A. Oloufa, L. Malone, and E. Radwan. 2010. “Model for quantifying the impact of change orders on project cost for US roadwork construction.” J. Constr. Eng. Manage. 136 (9): 1015–1027. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000206.
Shalaby, Y., A. Khalafallah, and E. Yasmeen. 2018. “Change order disputes: Technical causes and negative effects in Kuwait.” In Proc., ASCE Construction Research Congress 2018, 315–325. Reston, VA: ASCE.
Shrestha, K. K., and P. P. Shrestha. 2019. “Change orders on road maintenance contracts: Causes and preventive measures.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 11 (3): 04519009. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000299.
Shrestha, P. P., and H. Zeleke. 2018. “Effect of change orders on cost and schedule overruns of school building renovation projects.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 10 (4): 04518018. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000271.
Sofge, E. 2008. “The 10 pieces of U.S. infrastructure we must fix now.” Accessed June 22, 2021. www.popularmechanics.com/technology/infrastructure/g85/4257814/?slide=1.
Stare, A. 2010. “Comprehensive management of project changes.” Econ. Bus. Rev. 12 (3): 195–210. https://doi.org/10.15458/2335-4216.1248.
Taylor, T. R., M. Uddin, P. M. Goodrum, A. McCoy, and Y. Shan. 2012. “Change orders and lessons learned: Knowledge from statistical analyses of engineering change orders on Kentucky highway projects.” J. Constr. Eng. Manage. 138 (12): 1360–1369. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000550.
US Census Bureau. 2021. “Value of construction put in place at a glance: April 2021.” Accessed June 19, 2021. https://www.census.gov/construction/c30/c30index.html.
Verweij, S., I. van Meerkerk, and I. A. Korthagen. 2015. “Reasons for contract changes in implementing Dutch transportation infrastructure projects: An empirical exploration.” Transport Policy 37 (Jan): 195–202. https://doi.org/10.1016/j.tranpol.2014.11.004.
WIFR (Wisconsin, Illinois, Freeport, Rockford). 2020. “$25 million coming to keep Illinois infrastructure projects, construction jobs going.” Accessed June 22, 2021. https://www.wifr.com/content/news/25-million-coming-to-keep-Illinois-infrastructure-projects-construction-jobs-going-570411371.html.
Woo, J., and J. T. O’Connor. 2021. “Mitigation strategies to prevent engineering design quality defects.” J. Manage. Eng. 37 (3): 04021007. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000898.
Information & Authors
Information
Published In
Practice Periodical on Structural Design and Construction
Volume 27 • Issue 1 • February 2022
Copyright
© 2021 American Society of Civil Engineers.
History
Received: Apr 12, 2021
Accepted: Aug 11, 2021
Published online: Oct 15, 2021
Published in print: Feb 1, 2022
Discussion open until: Mar 15, 2022
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
- Jose Guevara, Diego Rojas, Rana Khallaf, Gabriel Castelblanco, Navigating PPP Renegotiations in the Wake of COVID-19: Insights from a Toll Road Program, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-1082, 16, 1, (2024).
- Ameer A. Alraie, Asaad M. Ali Kadhum, Rana Shabbar, Causes of change orders in the cycle of construction project: A case study in Al-Najaf province, Open Engineering, 10.1515/eng-2022-0340, 12, 1, (799-807), (2022).