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