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REPERCUSSIONS OF CHANGE ORDER

IN CONSTRUCTION INDUSTRY IN
INDIA

GUIDED BY: SUBMITTED BY:


PROF. ASHISH GOEL • MANISHA K ( PP17164)
• RAHUL BADGUJAR (PP17167)
• NIKIL S (PP17196)
• JEGATHSHREE S (PP17205)
INTRODUCTION
• Changes during construction of projects are inevitable and change orders are issued
to modify the scope of work.

• The modifications are carried out for many reasons including changes made by the
client, consultant and due to design errors.

• Most of change orders issued during the construction period are due to time and cost
overruns, disruption, and disputes.

• Change orders cause confusion and lead to detrimental effect on the environment.
OBJECTIVE

To investigating

• causes of variations

• studying their effects on the project

• identifying the benefits

• and suggesting remedies to alleviate related problems (if any).


LITERATURE REVIEW
1.CAUSES, EFFECTS, BENEFITS, AND REMEDIES OF CHANGE ORDERS ON
PUBLIC CONSTRUCTION PROJECTS IN OMAN ET AL. ALNUAIMI (2010).
• This paper discusses variations in public construction projects in Oman by
investigating causes of variations, studying their effects on the project.

• Client’s additional works and modifications to design were the most


important factors causing change orders.

• The most important effects of change orders on the project were found to
be the schedule delays, disputes, and cost overruns.

• The contractor was found to be the party most benefiting from the change
orders followed by the consultant and then the client.
2.CHANGE ORDERS AND LESSONS LEARNED: KNOWLEDGE FROM
STATISTICAL ANALYSES OF ENGINEERING CHANGE ORDERS ON KENTUCKY
HIGHWAY PROJECTS ET AL. TAYLOR1 (2012)

• Change orders on 610 Kentucky roadway construction projects from 2005–


2008 examined how the causes of change orders varied between
construction versus maintenance projects, different road types.

• The research examined the risk posed by engineering change orders by


measuring the frequency and average percentage change in project costs
for different types of change orders.

• The leading causes of change orders within the state consistently included
contract omissions, owner -induced enhancements, and contract item
overrun.
3.VARIATIONS AND CHANGE ORDERS ON CONSTRUCTION PROJECTS ET
AL. SERTYESILISIK (2010)

• An effective analysis of variations and change orders requires a


comprehensive understanding of the root causes of variations .

• To manage a variation means being able to anticipate its effects and to


control, or at least monitor, the associated cost and schedule impact.
4.QUANTITATIVE DEFINITION OF PROJECTS IMPACTED BY CHANGE
ORDERS ET AL. HANNA (2002)

• The focus of this paper is to quantify whether an electrical or mechanical


project is impacted by a change order.

• The results of this research show that percent change, type of trade,
estimated and actual peak manpower, processing time of change,
overtime, overmanning, and percent change related to design issues are
the main factors contributing to the project impact.
5.CAUSES OF VARIATION IN CONSTRUCTION PROJECT TASK
STARTING TIMES AND DURATION ET AL . WAMBEKE (2011)
• A survey was floated to workers, foremen, and project managers to identify
the most prevalent causes and magnitude of both starting time and task
duration variation.

• The research also quantitatively analyzed the underlying structure of the


causes of variation using factor analysis.

• The findings will help construction project managers and field managers
focus on the root causes of variation during planning in order to develop
effective strategies to reduce variation and improve project productivity
performance.
SUMMARY
• Important causes
 Additional works
 Modifications to design
 Contract omissions,
 Owner -induced enhancements
 Contract item overrun
 Over manning

• Important effects
 Schedule delays
 Disputes
 Cost overruns
• Important remedies
 Root causes of variation during planning
 Develop effective strategies to reduce variation and improve project
productivity performance
METHODOLOGY
• CASE STUDY

 Based on case-study.

• QUESTIONNAIRE

 Consists of 4 sections

o Section 1 & 2 deals with causes and effects

o Section 3 & 4 will sought out and suggest remedies

 A five-point ranging scale will be adopted :-

 Likert scale (1 to 5)

o 1 - (Strongly agree)

o 5 - (Strongly disagree)
REFERENCES
• Hanna, Awad S., et al. "Quantitative definition of projects impacted by
change orders." Journal of Construction Engineering and Management 128.1
(2002): 57-64.
• Wambeke, Brad W., Simon M. Hsiang, and Min Liu. "Causes of variation in
construction project task starting times and duration." Journal of construction
engineering and management 137.9 (2011): 663-677.
• Keane, Patrick, Begum Sertyesilisik, and Andrew David Ross. "Variations and
change orders on construction projects." Journal of legal affairs and dispute
resolution in engineering and construction 2.2 (2010): 89-96.
• Taylor, Timothy RB, et al. "Change orders and lessons learned: Knowledge
from statistical analyses of engineering change orders on Kentucky highway
projects." Journal of Construction Engineering and Management 138.12
(2012): 1360-1369.
• Alnuaimi, Ali S., et al. "Causes, effects, benefits, and remedies of change
orders on public construction projects in Oman." Journal of Construction
Engineering and Management 136.5 (2009): 615-622.
THANK YOU

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