LITERATURE REVIEW
2.1 Introduction:
“What is a change order? A change order is a written agreement between the owner and the general contractor to change a building or other construction contract. Change orders add to, delete from, or otherwise alter the work set forth in the contract documents at the time that the construction contract was made. As the legal means for changing contracts, change orders are standard in the construction industry. A change can occur at any stage of a construction project. According to Thomas and Napolitano [2] and Ibbs [3], causes for change orders vary greatly, thus making the task of change management difficult for most clients. (Leonard et al).
2.2 Basic of change
“A change is defined in literature as
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The impact of this on the project will be translated into labor cost or dollar value.
Studies about productivity index and frequency of change compared to each other concluded:
- Productivity drops rapidly with an increased frequency of interruptions. .
Workers’ productivity is also expected to be effected negatively when they are required to do overtime work for long periods of time to compensate when there is delay in the schedule assigned for the project.
A study by Thomas and Napolitano showed that changes do not lead to efficiency loss. Instead, the cause of other disruptive influences to be activated is the construction change. They concluded that it is possible for the wzorkers to do the work without losing the efficiency or affecting the labor efficiency in a negative way.
2.5.2 Cost of delay
The delay caused by making a change in a process effects the project’s cost. It usually results in placing a hold on the work and waiting for new instructions and directions to come. Materials and other stuff might change when there is a change in the project. There might be a need for renting new resources, equipments, and materials, which will affect a delay on the project and the cost of resources, may be substantial. In case the delays were prolonged, the cost will be very
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Hence, the total cost increases as the labor cost increases.
2- Delay in completing the scheduled:
Some changes in an order may result in a time extension. However, the owner might want to compensate the responsible contractor of the project to accelerate the work in order to keep up with the original schedule, forgetting that additional time means more cost (money). Due to the delay in completion the schedule can be very costly.
3- Decrease in quality:
Workers aim to work less when changes happen in a project which leads to a lower level of workmanship.
A mismatch with other items is created by workers which affects the overall quality of the work.
Other effects include:
4- An increase in total project cost :
5- Additional money for the project’s contractor:
6- Delay in both tools and material
7- Work on hold:
8- Increase in overhead expenses
9- A delay in payment:
10- Re-work :
2.7.3
If the time to complete a project is decreased, then some of the requirements in the scope may not be completed or
This feature can also minimize material waste for each project. Now we can accurately price every project and we can also accurately budget for each project. This also us to give our customers the most competitive price and our project managers a precise budget for each
- working with working staff to set up strategies, models and frameworks. - Setting client administration measures & assuring that the current standards satisfy the customers & helps retaining them. • Coordinating with the workers themselves can help effectively in setting appropriate models for the procedures & systems because they are the ones who interact directly with raw materials and producing the products, so they would know better if anything in manufacturing needs improvement or so. • It is important to satisfy the current customers in different possible ways in order to retain them which eventually leads in attracting more customers as well.
There are many scenarios that can occur that will interrupt our everyday procedures. It 's not about the amount of time in the day but the quality and completion of work that gets done. This helps not only ourselves but our co-workers keep a smooth and positive environment for
Other problems develop such as workers being killed from construction, strikes from workers, and the
Poor Change Control management. Failure to understanding impact changes and changes are constraint in Projects. Denver should have had a proper change management process that is robust enough to control changes. This could have eliminated the complexity introduced by various changes that took place on project 4. Why did United Airlines decided to act as the project manger for the baggage handling system on Concourse B?
Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly
Address any variances in budget reporting from previous reporting period. Include: (1) Estimated Total Project Budget, (2) Estimated Construction Budget, and (3) Dollars Expended to Date. If there is a Financing Agreement for this project, provide an update. If none, indicate that. Section 5 – Project Scope and/or Quality Items Indicate any adjustments or considerations that impact or change the project scope or quality (such as pending change orders, standards waivers, etc.)
There is a risk of delaying the game's launch, which may result from various factors: erroneous estimation of the work schedule, underestimation of production costs and limited access to financing. The postponement of the premiere may also be due to technical problems at the level of the programming layer. The above affects the rate of return that can be achieved from the implementation of a given
Techs need to focus on finishing one job in order to start the next. If a tech does not plan time productively and work efficiently, the tech will not complete all work calls. This could stimulate a loss in jobs and respectability from
Any modification to a construction contract after a contract award is called a change order. Contractors will receive the package of the contract in the form of drawings, plans, equipments lists and various other documents. Then, the contractor should be able to calculate the labor cost, material cost, and schedule based on the original package that they received. Changes can be initiated by all parties in the construction process. All changes, however, must be approved by the owner before implementation.
Another conflict with the solution of expansion would be the matter of parking during the reconstruction period, and the wait to access a parking
Employees’ output is subpar and does not conform to the expected or stipulated levels. This has adverse effects on downstream automakers because they must contend with delays in the supply of side mirrors. It also results in missed deadlines, which erodes customers’ confidence in the organization. Sluggishness among employees also results in a general rise in overheads (Beer & Collins, 2008). For example, the organization must airlift completed parts to customers to shorten delivery times in the face of production delays.
What is Foxconn’s unethical issue? In mid 2010, Foxconn Technology Group (Foxconn) was facing a crisis of having its workers held protests and riots against the company in Shenzhen, China. Being the world’s largest contract electronics manufacturer (Pun, 2010), the company exploited its migrant workers by providing them with exceptionally low pay and allowing unacceptable number of overtime working hours in the manufacturing site. Such method of raising workers’ efficiency is unethical in the eyes of many.
Unexpected impact Follow-up sometimes reveals unexpected impacts related to a project. Unexpected impacts are ones which were not anticipated or dealt with in the EIR. They may be positive or negative; but because they are unexpected there are unlikely to be mitigation measures in place to deal with them (Lawrence, 2003). The follow-up process therefore needs to be adaptive enough to cope with this The purpose of an EIA is to present information, so that it can inform the decision-making process (Canter, 1996).