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

Abstract

Article history: Received: October 2 2018 Received in revised format: November 19 2018 Accepted: January 12 2019 Available online: January 14 2019 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.