Change Order In Construction

1882 Words8 Pages
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
…show more content…
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
…show more content…
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
Open Document