The Effect of Change-Order Management Factors on Construction Project Success: A Structural Equation Modeling Approach

Naji, Khalid Kamal; Gunduz, Murat; Naser, Ayman F.

doi:10.1061/(asce)co.1943-7862.0002350

Cited by 14 publications

(8 citation statements)

References 59 publications

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“…The nature of variation could have serious consequences for both cost and time (Kermanshachi and Pamidimukkala, 2023;Alkhalifah et al, 2023;Naji et al, 2022;Altaf et al, 2020;Asamoah and Offei-Nyako, 2013). The study of Asamoah and Offei-Nyako (2013) concluded that the most debilitating effect of variations on construction projects in Ghana was cost overrun.…”

Section: Discussionmentioning

confidence: 99%

Variations in Building Construction Projects in Ghana: A Public Organisational Perspective

Akomah,

Mustapha,

Mensah

et al. 2023

Baltic Journal of Real Estate Economics and Construction Management

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The occurrence of variations in building construction contracts is a subject that needs some attention in public sector projects. They are, almost all the time, detrimental rather than beneficial variations. The paper aimed to identify the nature of variations in government-initiated building projects over fourteen years, from 2000 to 2014, in the Central Region and their impacts. Preliminary counts of documents revealed that a total of 348 projects were executed over the period. The data collection process started by first sorting out files, contract documents, and payment certificates for the period under consideration. These documents were scrutinised one after the other to detect possible variations. The inclusion criterion for selecting a project was if a project had any form of variation(s) recorded. After thoroughly examining these 348 project documents, 84 were found to have variations. The study identified additional works and substitutions as the most inherent variations in public building projects in the Central Region. About 85 % of the variations found in the 84 projects with various forms of variations were additional works and substitutions. It was revealed that the cost of multiple variations was higher than single variations. Projects with multiple variations had high percentage variation and durations than others. Percentage variation in some instances was 400 %. The study identified that multiple variations were more costly than single variations. The highest variation cost identified was (USD 211 864.41 or EUR 183 150.18) for one project. The study identified the nature of variations that usually occurred in government building projects and their association with both cost and time. The study asserts that the presence of multiple change orders has substantial financial significance and should be diligently avoided through efficient project initiation and planning.

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Section: Discussionmentioning

confidence: 99%

Variations in Building Construction Projects in Ghana: A Public Organisational Perspective

Akomah,

Mustapha,

Mensah

et al. 2023

Baltic Journal of Real Estate Economics and Construction Management

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“…The third type is beneficial variation orders to improve the quality standard and manipulate cost, schedule overrun, and optimize the client's benefits against the resource. The fourth type is compensation for negative impacts from international and local crises on enhancing the client's project value, performance, and degree of project control difficulty [8,[16][17][18][19]. The purposes served by variation orders include changing contract plans and contract specifications, administrative purposes of establishing extra work, contract unit price adjustments, proposals for cost reduction incentives from value engineering method, payment after settlement of claims, payment changes, and modifications to the contract schedule, item quantities, design mistakes, and unit prices [20].…”

Section: Variation Order Typesmentioning

confidence: 99%

“…The procedures of the sequence of change variations when the value exceeds a specified rate of the total contract start by submitting a claim from the contractor to re-study the rates and takes place from the project start date until the primary handover, as defined in items (3)(4)(5)(6)(7)(8)(9)(10)(11)(12)(13) from the FIDIC of the general conditions for FIDIC contracts. Before issuing the primary handover certificate, the engineer can change the work through the instructions he issues or request that the contractor submit a proposal [35,[53][54][55][56].…”

Section: Variation Order Proceduresmentioning

confidence: 99%

“…The implementation of change orders after the engineer issues instructions according to his approval of any item of work may include changes in quantities, quality, characteristics, standards, cancellation, addition, providing machines/materials/services, tests, and sequences [26,57]. The variation orders implementation must adhere to submitting an immediate notice supported by data and information [8,14,34]. This includes specifying a new price for a new item in the bill of quantities.…”

Section: Variation Order Proceduresmentioning

confidence: 99%

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A Proposed Model for Variation Order Management in Construction Projects

Ismaeil,

Sobaih

2024

Buildings

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This study aims to identify the causes of excessive change orders and their impact on public construction projects in Saudi Arabia. This should support the organizations working in the construction industry to improve variation order management (VOM) as a preventive action by dealing proactively with variation order causes. Therefore, a new methodology was proposed to minimize change orders and their impact on the successful completion of projects as well as cost during the project lifecycle. The methodology involved ten selected turnkey building projects at King Faisal University (KFU) campus, Saudi Arabia. Statistical analyses were conducted to predict the cost overrun in project size and contract value. The findings showed the most significant causes leading to variation order in public construction projects. These include the combined effect of the designer and owner technical committee, designer document, and owner stakeholder committee. Hence, a new model for VOM was developed as a best practice approach, including three stages. The first stage is the initiation process, which includes seven procedures, seven tools, and key responsibilities. The second stage deals with the course of change orders based on a certain number of procedures and weight for each parameter assigned to this phase. It supports decision processes based on a certain average ratio of weights calculation. The third stage is the decision to support decision makers in proceeding or not proceeding with the variation order. Although the present study was conducted in Saudi Arabia’s public building construction project, it is envisaged that these research results are widely applicable to other developing countries. The paper presents a direction for further research to enhance the impact of cost overrun in public sector construction projects in developing countries, i.e., Saudi Arabia.

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“…Naji et al, 2021;K. K. Naji, Gunduz, and Hamaidi, 2022;K. K. Naji, Gunduz, and Naser, 2022;Nawaz et al, 2020;Othman et al, 2022;Patidar et al, n.d.;Patil and Javalagi, 2020;Patrao et al, 2020;Perroni et al, 2020;Pignatelli et al, 2023;Pribicevic and Delibasic, 2021;Radovanovic et al, 2020;Rahman et al, 2022;Romeni et al, 2020;Schipper et al, 2021;Sun and Ertz, 2021;Torabizadeh et al, 2020;Voukkali et al, 2021;Walkiewicz et al, 2021;Yilan et al, 2022;Zaripov et al, 2021) SBT 26(Ayoub et al, 2020;Bendig et al, 2022;Bjorn et al, 2017Bjorn et al, , 2019Bjorn et al, , 2021Bjorn, Tilsted, et al, 2022;Bringezu, 2019;Chang et al, 2022;de Silva et al, 2019;Ermgassen et al, 2022;Faria and Labutong, 2020;Feleki and Moussiopoulos, 2021;Gibassier et al, 2020;Giesekam et al, 2018Giesekam et al, , 2021Hadziosmanovic et al, 2022;Hart et al, 2020;Immink et al, 2022;Kuo and Chang, 2021;O'Flynn et al, 2021;Reavis...…”

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Science Based Targets and the factors contributing to the sustainable development of an organisation from a Literature review to a conceptual model

Sá,

Carvalho,

Fonseca

et al. 2023

Production Engineering Archives

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Sustainable development is a subject of intense discussion, mainly due to climate change, pollution, and increased waste, among other factors. The governments of various countries worldwide have been setting environmental targets for emissions and consumption to combat climate change and improve the state of our planet. Therefore, it is necessary to have an environmental policy with stakeholder engagement. The literature review method, bibliometric analysis, and visual mappings were applied to understand how these sustainable targets are formulated and used by companies to comply with the limits proposed by governments. The Web of Science platform allowed data collection about Lean and Green, Key Performance Indicators (KPI), and Science-Based Targets (SBT). The carried analyses identified the most relevant papers using the PRISMA method, including their authors, their temporal distribution, and a correlation map using the VOSviewer tool. Hence, mapping the current state of the art concerning the SBT topic. Furthermore, a novel conceptual model is proposed to integrate lean and green and create new KPI applied to the definition of SBT to give companies a path and tools to achieve the climate targets efficiently. Future research should focus on the implementation of the conceptual model in several companies to understand its impact to correct and improve the conceptual model proposed.

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The Effect of Change-Order Management Factors on Construction Project Success: A Structural Equation Modeling Approach

Cited by 14 publications

References 59 publications

Variations in Building Construction Projects in Ghana: A Public Organisational Perspective

Variations in Building Construction Projects in Ghana: A Public Organisational Perspective

A Proposed Model for Variation Order Management in Construction Projects

Science Based Targets and the factors contributing to the sustainable development of an organisation from a Literature review to a conceptual model

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