EFFECTS OF CHANGE ORDER ON PERFORMANCE OF BUILDING CONSTRUCTION PROJECTS

Purpose - Changes tend to occur in some aspects of building construction projects with varying effects on performance indicators. The study, determines the effects of change order on building construction projects with the aim of boosting performance.

Design/methodology/approach – A quantitative design approach adopting descriptive and survey research methods was used in determining the effects of change order on performance of building projects. Data extracted from 104 structured questionnaires were analysed using descriptive and inferential statistics.

Findings – Results reveal the following performance indicators as being affected by the effect of change order: cost overrun; quality standard enhanced; time overrun; additional money for contractor overhead; and work-on-hold.

Research Limitations - The study is limited by non-willingness of some respondents to attend to research instrument-questionnaires. Also, inability to ascertain the actual number of building construction participants in the study area hampers the coverage sought after.

Practical implications - Knowledge of the effect of change order on performance and its attendant benefit or otherwise would help to channel the construction administrative process towards maximising the benefits. Proper understanding of the effect of change order would be helpful for construction professionals and participants in managing change/variation orders.

Originality/Value - The study concludes that having effective procedure for the administrative process of change order is key to smooth project delivery with little or no disputes. The process will checkmate negative consequences while maximising the benefit of desirous ones. Government ministries, departmental agencies, private developers and infrastructure providers among others are enjoined to put in place a mechanism for managing changes and change orders to remove all shadiness and bottlenecks that usually accompany contract execution.