Effective framework for change order management in construction industry

Abstract

Construction is a multi-trillion-dollar industry with a very complex nature involving a balanced combination of many human, non-human and other factors. The change orders are a practical reality of the construction industry irrespective of the magnitude, type or nature of the projects. The purpose of this project is to propose a framework for the change order management in the construction industry by studying and analyzing the various causes of change orders and their impacts on the duration, cost, and quality of the projects. The data for this project was gathered by a survey among construction industry professionals which was analyzed through statistical techniques of RII and Spearman‟s Correlation coefficient as well as multiple-objectives decision modeling technique of AHP. The results indicated that due to differences in relative importance of project objectives from one project to other, the rankings for the causes of change orders are different as well. The top three causes of change orders with highest cumulative impact on project duration, cost and quality were, “Change in specifications by the owner”, “Change of plans or scope by the owner”, and “Poor project planning by the contractor”. This research project possesses special significance for the international and local construction industry where massive infrastructure and stadium projects are underway to serve the goals and vision of nations.