Assessment Of Causes and Cost Impact of Change Order on Road Projects in Ehtiopia
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Date
2005
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Addis Ababa University
Abstract
This research makes assessment on the causes and cost impacts of change orders on road projects in Ethiopia. Emphasis is given to the identification of the root causes of change order categories from seventeen road project with a total of 123 reasons of causes of change order. As a result the most common reasons of causes of change order are categorized as: design errors and omissions, scope change, unforeseen conditions, value engineering, force majeure and others. Of the total reasons of causes of changes orders included in the study, 40.8% were caused by design errors and omissions, 29.3% by change of scope by owner, 15.8% resulted from other causes, 7.5% were caused by unforeseen conditions, 5.8% by value engineering and 0.8% due to force majeure.
In addition to identifying the major categories of change orders, the consequential cost impacts of these change orders were analyzed. As a result, those reasons of change order categorized under value engineering have a decrement cost impact which saves an amount of birr 23,861,361.94. The reasons of change orders in this category have positive cost impact on the total project cost as they are a saving to the project owner. However, the rest categories of causes of change order have increment or negative cost impacts with a total change order amount of birr 410,596,232.76. From this total cost increment 52.4% is caused by change of scope; 38.6% by design errors and omissions, and 7.6% contributed other causes. Though they are minor, 1.2% and 0.2%, the rest are contributed by unforeseen conditions and force majeure respectively in descending manner of their contribution.
Spearman rank order correlation analysis was used to evaluate whether consensus of opinions exists between groups of respondents. From the analysis of the results it can be concluded that the correlation between the attitudes of the respondents in all the three
Assessment of Causes and Cost Impact of Change Orders on Road Projects in Ethiopia
AAU, School of Civil and Environmental Engineering
Construction Technology and Management 9
groups is relatively weak. This is so, because two third of the groups assure the absence of significant consensus.
Key words: change, change order, change order categories, cost impacts of change order.
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Keywords
Change order, Change order categories, Cost impacts of change order, Change