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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