Impacts of change management on risk and cost management of a construction projects

Mohamed Ibrahim Khalifa Halou · Razali Samin · Mushtaq Ahmad

34 citations0/0 files storedJournal of Project Management

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Construction Project Management and Performance BIM and Construction Integration Value Engineering and Management

Abstract

Construction projects are always problematic and difficult to manage in certain stages.Management in construction industry has been characterized as being weak, insufficient, nebulous, backward and slow to react against changing conditions.This study aims to identify risk and cost managed in the change management of the construction projects.Quantitative study is organized and questionnaire as an instrument is used to collect the information from the construction experts in Klang Valley, Malaysia.Random sampling techniques is used to collect the data, 105 questionnaires are distributed and 90 ones are returned.The correlation analysis shows significant relationship between cost, risk and change management.The reliability test indicates satisfactory result to continue the questionnaire where Cronbach coefficient alpha value exceeds the level of 0.70.The study finds that design changes, client and contractor related changes are mostly occurred in change management of construction projects.Tendering on the basis of an incomplete design, which then changes during the course of the construction has been found as the key reason of the changes.Through a paper based exercise, site memorandums (SM), quoted rates (QR), variation orders (VO) and monthly payment certificates (MPC) are the activities managed by the engineers.Proper planning is the most leading change management in the risk management.Implementation of risk management was found the applied risk management in practice to hindrances.Since this is very vast debated subject, the study has recommended further investigation to include consultant firms for better understanding of the design changes leading to the cost and risk associated.

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References

1999The need for new paradigms for complex projects 2004Large construction projects in developing countries: a case study from Vietnam 2015The Relationship between Project Success and Project Efficiency 2003Project Delivery Systems and Project Change: Quantitative Analysis 2017Project Management Success Factors 2006An integrated system for change management in construction 2003Dynamic change management for construction: introducing the change cycle into model‐based project management 2016Project change stakeholder communication

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