Changes “Variations”in Construction Projects...Mohamed Abdalla Msc,MBA,PMP,PQP Changes...
Transcript of Changes “Variations”in Construction Projects...Mohamed Abdalla Msc,MBA,PMP,PQP Changes...
Mohamed Abdalla Msc,MBA,PMP,PQP
Changes “Variations”in Construction Projects .
• Theconstruc,onindustryisoneofthemostimportantsectorsinUnitedArabEmirates,660billiondirham,thevalueofconstruc,onprojectsintheUAEin2013,Soitisessen,altoknowtheingredientsforsuccessofconstruc,onprojectsinUAE.Whileconstruc,onprojectisunique,projectsdifferinobjec,ves,size,budget,,melineandcomplexity,butwemayfindsomecommonfeaturessuchaschangesandrisksconcerns.
Agenda
¨ What is a Change
¨ Why change occur
¨ Causes of change
¨ How PM should lead the change
Change is good or bad ?
Construction in UAE
ProjectLifecycle
Change VS Cost
Change lifecycle
Stakeholders
1.1 Definition of changes in construction projects.
• Achangeisanydevia,onfromthecontractualagreement,forinstancechangeincost,scheduleorwell-definedscopeofworks(Fisk1997;O’Brien1998).
Change
• Also,Changesinconstruc,onprojectscanbedefinedasanyaddi,onsordeduc,ontoprojectobjec,vesorscopeareconsideredtobeunplannedchanges,whethertheyhaveposi,veornega,veimpactontheprojectparameters;cost,,meorquality
Change Request
why changes occur?
• Causesofchanges(Varia1ons).• Thenatureofconstruc,onprojectsisverycomplexduetomanyvariables,Humanandnonhumanfactors,aswellasconstruc,onprojectneedalong,meforexecu,on,someofthemcon,nuetoaseveralyears
Causes of changes (Variations)
Change Causes
1. Client
2. Consultant
3. Contractor
4. External factors
Changes related to the client
• Changesrelatedtotheclientmayincludebutnotlimitedtothefollowing:
• inadequaterequirements• Fundingproblems• Changeinbusinesscase• insufficientprojectobjec,ves
changes related to the engineer
• Errorsormissinginthedesign,poordesigndetails• conflictamongcontractdocuments• Delayinmaterialorshopdrawingsapproval• valueengineeringforbuildingswithoverdesign• Poorspecifica,ons,specifyunavailablematerial.• Poorcoordina,on• Technologychanges• Poorknowledgeofcityregula,onsandrequirements
Changes related to the contractor
• Unavailabilityofmaterialorequipment• Poorprocurementplanforlongleaditemsandsearchingforalterna,ves
• Poorcommunica,onplan• Lackofprojectmanagerexperience• Poorprojectmanagementplan• Financialproblems• PoorQualityandreworkorscrapworks
External factors
• ChangesinMarketplace• ChangesinEconomicorcrises• Changesinweathercondi,ons• Socialorculturalfactors
Impacts of change
• ImpactsofchangeorderCost-relatedImpacts;• Projectoverheadsmaybeincreased• Addi,onalcostmaybepaidtothesubcontractorsduetoSchedulecrushingorfasttracking
• inadequaterequirements• Liquidateddamages
How PM Lead a change
Change Goals
Change Negotiations
What is (ADR)
Types of Variations
§ TimeVaria,ons.§ CostVaria,on.
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