Change order
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== Change orders in the construction industry == | == Change orders in the construction industry == | ||
| − | Change orders is a common thing in the construction industry and almost every project will at one time or another experience a change in the original project plan. It can be in terms of changes in the design, like the materials used in the building, the placement of walls if the usage of the building changes and in general the overall design of the building. The request for changes like this will can come from the building owner, which through the project has changed his or hers mind about the design or their economic change throughout the project. Another reason the design might need changes is if a new regulation is launched, which the building then need to live up to. This can make changes in the design in terms of new requirements for the fire safety which might change some part of the building. | + | Change orders is a common thing in the construction industry and almost every project will at one time or another experience a change in the original project plan. It can be in terms of changes in the design, like the materials used in the building, the placement of walls if the usage of the building changes and in general the overall design of the building. The request for changes like this will can come from the building owner, which through the project has changed his or hers mind about the design or their economic change throughout the project. Another reason the design might need changes is if a new regulation is launched, which the building then need to live up to. This can make changes in the design in terms of new requirements for the fire safety which might change some part of the building. |
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| + | Change of the project can happen both in the design phase of the project but also when the actual construction has begun as some problems might not the seen before the construction has begun. This can be placement of different system within the building as there might be a collision between these if this has not been checked before the construction is started. Another problem might be bad soil condition which was not foreseen before, which then might lead to a need for a different and maybe more expensive foundation for the building. | ||
== Why is change orders a problem == | == Why is change orders a problem == | ||
Revision as of 10:23, 22 September 2017
Change orders is a common problem within the construction industry. A change order is a change within the original plan for the project which might cause changes in terms of delaying the project and add to the original budget so the project becomes more expensive than first estimated, it is therefore desirable to reduce the amount of change orders within a project. A change order might occur both in the design and construction phase of a project. A change order can be a change in the placement of pipes and the free height in the building. If there are pipes which are placed at the same place, the free height might not live up to the requirements from the building owner, and therefore there has to be a change in the design. Another change could be that the building owner want to make changes to the design of the building as it did not live up to his or hers expectation. The earlier the change the better as the changes are more easily integrated in the project and therefor it reduces the risk of delays and exceed projects.
There are several ways one might be able to reduce the amount of change orders. For instance BIM and virtual reality will make the building owner able to see the building before it is built and thereby make sure it looks like what he or she wants it to.
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Change orders in the construction industry
Change orders is a common thing in the construction industry and almost every project will at one time or another experience a change in the original project plan. It can be in terms of changes in the design, like the materials used in the building, the placement of walls if the usage of the building changes and in general the overall design of the building. The request for changes like this will can come from the building owner, which through the project has changed his or hers mind about the design or their economic change throughout the project. Another reason the design might need changes is if a new regulation is launched, which the building then need to live up to. This can make changes in the design in terms of new requirements for the fire safety which might change some part of the building.
Change of the project can happen both in the design phase of the project but also when the actual construction has begun as some problems might not the seen before the construction has begun. This can be placement of different system within the building as there might be a collision between these if this has not been checked before the construction is started. Another problem might be bad soil condition which was not foreseen before, which then might lead to a need for a different and maybe more expensive foundation for the building.
Why is change orders a problem
Change orders is a problem as it might up the cost of a project and therefore the budget might exceed what it is suppose to be. It is normal that the cost of change order will be around 10-15% more than if the change has been included in the original bid on the project (indsæt note). Which Changes in the orginal plan might also reduce the overall cost of the project. This can for instance be of there is a change in the materials used in the construction, though changes like this might have to be done before the construction has begun as the contractors have to buy the materials in order to build.
Another problem with change orders is that it might prolong the project as it takes time to make changes in the design of the building especially if the change first is made when construction has started. A change that might occur after the construction phase is stated is fixing already built things, like a damaged installation, which then need to be changed for a new one, which will cost more as there need a new part and then there is the added cost of man hours to remove the old and install the new.There often are a compensation to the contractors if the project is delayed which then again result in a higher cost of the project than firstly estimated.
Confusion within the project and the plan for this can also be a problem in terms of change orders. This will most likely only become a problem if there are a made a lot of changes without good communication to all involved in the project. When this happens more errors might happen and then this result in more changes to the project.
How to reduce change orders
References
- Cooper, A., “Common causes of change orders”, Electrical construction and maintenance, 2015 volume 114, issue 4.
- O'Leary, A., (2009), “Coping With Change Orders. Keeping Confusion Under Control and Limiting Disputes” [ONLINE] available at: http://www.dcd.com/oleary/oleary_ja_2002.html
