013 changes in construction projects
- 2. CHANGES IN CONSTRUCTION PROJECTS Managerial Technologic al Social
- 3. CHANGES IN CONSTRUCTION PROJECTS 1 • The re-work problem is often caused by poor project change management. 2 • During construction projects, many decisions have to be made under uncertain conditions.
- 4. CHANGES IN CONSTRUCTION PROJECTS 3 • Designers, engineers and other professionals have to make assumptions based on existing available information and their experience. 4 • If any assumption is proven wrong, some decisions have to be revised. • changes are often inevitable.
- 5. CHANGES IN CONSTRUCTION PROJECTS 5 • The key-how to avoid or reduce the negative impact of changes. 6 • The need for effective change management is essential for productivity improvement.
- 6. CHANGES IN CONSTRUCTION PROJECTS It can be caused by either internal or external Factors (ARE THEY AVOIDABLE?). Different changes may have different effects or consequences. A change refers to an alteration or a modification to pre-existing conditions, assumptions or requirements.
- 7. CHANGES IN CONSTRUCTION PROJECTS Plan preventive impacts & coordinate changes across the entire project. Identify changes that have already occurred. The objective of change management is to forecast possible changes.
- 8. TYPES OF CHANGE A gradual change, also known as incremental change, happens slowly over a prolonged period and its intensity is low. A change that occurs can be a “gradual change” or a “radical change”.
- 9. CHANGES IN CONSTRUCTION PROJECTS • A radical change is sudden, dramatic and has a marked effect. • Gradual Changes often occur during the design development stage, where many decisions are fine Tuned and refined progressively.
- 10. CHANGES IN CONSTRUCTION PROJECTS • Radical changes occur during construction phases. • Project changes can also be classified as “anticipated changes” and “emergent changes”. • Anticipated changes are planned in advance and occur as intended. • On the other hand, emergent changes arise spontaneously and are not originally anticipated or intended.
- 11. CHANGES IN CONSTRUCTION PROJECTS • Another way to view project change is through its necessity. • In this way, project changes can be classified as “elective changes” and “required changes”. • An elective change is where one may choose whether or not to implement; and a required change is where there is no option but to make the change.
- 12. CAUSES OF CHANGE External causes may be due to technological change (AVOIDABLE?). The causes of project change may originate from either external or internal pressures that are being applied to the project (AVOIDABLE?).
- 13. CHANGES IN CONSTRUCTION PROJECTS Changes in the economy and finally demographic changes in the society Changes in the customer expectations and tastes changes in competitor’s activities changes in government and policies
- 14. CHANGES IN CONSTRUCTION PROJECTS Or changes in organisational objectives and changes in the long-term survival strategy of the organisations involved. Internal causes may result from changes in management policy
- 15. CHANGES External causes: ■ Economic issues ■ Environmental issues ■ Technological issues ■ Regulatory issues
- 16. CHANGES Internal causes: ■ Organisational level • Organisational culture • Ineffective decision-making ■ Project level • Design Improvements
- 17. CHANGES • Inadequate skills and knowledge amongst the team • Inclement weather • Late change of client brief • Designer change of mind • Design errors • Inadequate knowledge of the site conditions
- 18. CHANGES IN CONSTRUCTION PROJECTS • Revised design parameters • Minor field-originated changes • Contract disputes • Ambiguity in project goal, scope, and resources
- 19. CHANGES IN CONSTRUCTION PROJECTS Direct effects ■ Addition of work ■ Deletion of work ■ Demolition of work already done ■ Rework ■ Specification change ■ Time lost in stopping and
- 20. CHANGES IN CONSTRUCTION PROJECTS restarting current tasks in order to make the variation ■ Revisions to project reports and documents ■ Reorganise schedule and work methods to make up lost time Indirect effects ■ Need for communicating change to all project members
- 21. CHANGES IN CONSTRUCTION PROJECTS ■ Dispute and blaming amongst project partners ■ Loss of productivity due to reprogramming; loss of rhythm, unbalanced gangs and acceleration
- 22. CHANGES IN CONSTRUCTION PROJECTS ■ Change in cash flow, financial costs, loss of earnings ■ Increased risk of co-ordination failures and errors ■ Lower morale of work force ■ Loss of float, therefore increased sensitivity to further delays