Share:


Assessment of change order impact factors on construction project performance using analytic hierarchy process (AHP)

    Murat Gunduz Affiliation
    ; Khaled Omar Mohammad Affiliation

Abstract

Complexity is very high in construction project and constrained by money and time. Change orders are commonly required during the execution of construction projects. They may increase, omit or adjust tasks in the project. Change orders affect the performance of construction job because they disturb current jobs and affect their schedule. The motive behind this study is to outline a complete assessment on change orders impacts. A review on past studies was performed to capture change order factors that affect project performance. Literature review and interviews with the industry professionals were used to finalize the factors into 16 critical factors. A questionnaire was distributed to industry specialists to capture the effect of these 16 factors on project performance. Complete answers of 102 surveys were received. Analytic Hierarchy Process (AHP) and Relative Important Index (RII) were utilized to analyze the responses. This study differs from other past studies by studying change order impact factors on three different change order types namely additional, omission and substitutional works. The most important change orders impacts factors as per the analysis outcomes are increased project management efforts, increased project re-planning, loss of efficiency due to work interruption, increased reworks/demolition works and delay of payments. This paper would help construction professionals to recognize change order impacts and would assist them in taking proactive actions to limit these impacts.


First published online 19 November 2019

Keyword : change orders, construction industry, analytic hierarchy process, relative importance index

How to Cite
Gunduz, M., & Mohammad, K. O. (2020). Assessment of change order impact factors on construction project performance using analytic hierarchy process (AHP). Technological and Economic Development of Economy, 26(1), 71-85. https://doi.org/10.3846/tede.2019.11262
Published in Issue
Jan 2, 2020
Abstract Views
2392
PDF Downloads
1427
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Aghdaie, M. H. (2017). Data mining group decision-making with FAHP: An application in supplier evaluation and segmentation. In Fuzzy analytic hierarchy process (pp. 99-124). Chapman and Hall/ CRC. https://doi.org/10.1016/0038-0121(79)90015-6

Aghdaie, M. H., & Alimardani, M. (2015). Target market selection based on market segment evaluation: a multiple attribute decision making approach. International Journal of Operational Research, 24(3), 262-278. https://doi.org/10.1504/IJOR.2015.072231

Alnuaimi, A. S., Taha, R. A., Al Mohsin, M., & Al-Harthi, A. S. (2010). Causes, effects, benefits, and remedies of change orders on public construction projects in Oman. Journal of Construction Engineering and Management, 136(5), 615-622. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000154

Beltrão, L. M. P., & Carvalho, M. T. M. (2019). Prioritizing construction risks using fuzzy AHP in Brazilian public enterprises. Journal of Construction Engineering and Management, 145(2), 05018018. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001606

Cheng, M.-Y., Wibowo, D. K., Prayogo, D., & Roy, A. F. V. (2015). Predicting productivity loss caused by change orders using the evolutionary fuzzy support vector machine inference model. Journal of Civil Engineering and Management, 21(7), 881-892. https://doi.org/10.3846/13923730.2014.893922

Choi, K., Lee, H. W., Bae, J., & Bilbo, D. (2016). Time-cost performance effect of change orders from accelerated contract provisions. Journal of Construction Engineering and Management, 142(3), 04015085. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001071

Doloi, H. (2008). Application of AHP in improving construction productivity from a management perspective. Construction Management and Economics, 26(8), 839-852. https://doi.org/10.1080/01446190802244789

Du, J., El-Gafy, M., & Zhao, D. (2016). Optimization of change order management process with objectoriented discrete event simulation: case study. Journal of Construction Engineering and Management, 142(4), 05015018. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001092

Gunduz, M., & Hanna, A. S. (2005). Benchmarking change order impacts on productivity for electrical and mechanical projects. Building and Environment, 40(8), 1068-1075. https://doi.org/10.1016/j.buildenv.2004.10.004

Hadidi, L. A., & Khater, M. A. (2015). Loss prevention in turnaround maintenance projects by selecting contractors based on safety criteria using the analytic hierarchy process (AHP). Journal of Loss Prevention in the Process Industries, 34, 115-126. https://doi.org/10.1016/j.jlp.2015.01.028

Hanna, A. S., & Iskandar, K. A. (2017). Quantifying and modeling the cumulative impact of change orders. Journal of Construction Engineering and Management, 143(10), 04017076. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001385

Ho, W., & Ma, X. (2018). The state-of-the-art integrations and applications of the analytic hierarchy process. European Journal of Operational Research, 267(2), 399-414. https://doi.org/10.1016/j.ejor.2017.09.007

Ismail, A., Pourrostam, T., Soleymanzadeh, A., & Ghouyounchizad, M. (2012). Factors causing variation orders and their effects in roadway construction projects. Research Journal of Applied Sciences, Engineering and Technology, 4(23), 4969-4972.

Jain, V., Sangaiah, A. K., Sakhuja, S., Thoduka, N., & Aggarwal, R. (2018). Supplier selection using fuzzy AHP and TOPSIS: a case study in the Indian automotive industry. Neural Computing and Applications, 29(7), 555-564. https://doi.org/10.1007/s00521-016-2533-z

Keane, P., Sertyesilisik, B., & Ross, A. D. (2010). Variations and change orders on construction projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 2(2), 89-96. https://doi.org/10.1061/%28ASCE%29LA.1943-4170.0000016

Khanzadi, M., Nasirzadeh, F., & Dashti, M. S. (2018). Fuzzy cognitive map approach to analyze causes of change orders in construction projects. Journal of Construction Engineering and Management, 144(2), 04017111. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001430

Kim, S.-Y., & Nguyen, V. T. (2018). An AHP framework for evaluating construction supply chain relationships. KSCE Journal of Civil Engineering, 22(5), 1544-1556. https://doi.org/10.1007/s12205-017-1546-1

Lee, S., Tae, S., Jee, N., & Shin, S. (2015). LDA-based model for measuring impact of change orders in apartment projects and its application for prerisk assessment and postevaluation. Journal of Construction Engineering and Management, 141(7), 4015011. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000971

Love, P. E. D., Irani, Z., Smith, J., Regan, M., & Liu, J. (2017). Cost performance of public infrastructure projects: the nemesis and nirvana of change-orders. Production Planning and Control, 28(13), 10811092. https://doi.org/10.1080/09537287.2017.1333647

Ma, J., Ma, Z., & Li, J. (2017). An IPD-based incentive mechanism to eliminate change orders in construction projects in China. KSCE Journal of Civil Engineering, 21(7), 2538-2550. https://doi.org/10.1007/s12205-017-0957-3

Moselhi, O., Assem, I., & El-Rayes, K. (2005). Change orders impact on labor productivity. Journal of Construction Engineering and Management, 131(3), 354-359. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:3(354)

O’Brien, J. J. (1998). Construction change orders: impact, avoidance, and documentation. New York: McGraw-Hill Professional.

Saaty, T. L., & Vargas, L. G. (1979). Estimating technological coefficients by the analytic hierarchy process. Socio-Economic Planning Sciences, 13(6), 333-336. https://doi.org/10.1016/0038-0121(79)90015-6

Senouci, A., Alsarraj, A., Gunduz, M., & Eldin, N. (2017). Analysis of change orders in Qatari construction projects. International Journal of Construction Management, 17(4), 280-292. https://doi.org/10.1080/15623599.2016.1211973

Shrestha, P. P., & Maharjan, R. (2018). Effects of change orders on cost growth, schedule growth, and construction intensity of large highway projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10(3), 04518012. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000264

Staiti, M., Othman, M., & Jaaron, A. A. M. (2016, March 8-10). Impact of change orders in construction sector in the West Bank. In Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 1690-1698), Kuala Lumpur, Malaysia.

Sunday, O. A. (2010, September 6-8). Impact of variation orders on public construction projects. In Egbu, C. (Ed.), Proceedings of the 26th Annual ARCOM Conference (pp. 101-110), Leeds, UK, Association of Researchers in Construction Management.

Taylor, T. R. B., Uddin, M., Goodrum, P. M., McCoy, A., & Shan, Y. (2012). 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), 1360-1369. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000550