Evaluating the Causes and Impact of Change Orders on Construction Projects Performance in Oman

Abstract

Purpose of the study: The purpose of the study was to investigate the factors causing the change orders in construction projects and to assess their impact on the projects’ performance in Oman.

Design/Methodology/Approach: The study was conducted using a random sampling technique. The questionnaire was used to collect data from 215 contracting companies located in Muscat Governorate, Oman. Statistical analyses such as the chi-square test, Kolmogorov-Smirnov, and linear regression tests were used.

Findings: The result of the study showed that the variations have more impacts on the project and the change orders harm the project most. It was also revealed that ‘Change in specifications’, ‘Alterations in design and drawing’ and ‘Time lag in the project implementation’ were considered to be the primary causes of change orders, and ‘Change of scope’, ‘Errors and omissions in design’ and ‘Insufficient Logistics’ were the primary causes of variations affecting the construction projects in Oman. 

Research Implications: It was suggested to plan for a strategy to avoid the time lag and to take up adequate financial pre-planning to maximize the profit. 

Social Implications: The findings of the study help the companies to take proactive measures to eliminate or reduce unnecessary variations and change orders to accomplish the prime objectives of such projects.

Originality/value:  This is the first study of its kind in bringing out the issues related to change orders and variations in the construction projects of Muscat Governorate, Oman.