Change orders in construction projects in Saudi Arabia

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Al-Dubaisi, Abdulghafoor Habib
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Saudi Digital Library
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This thesis presents results of a study on causes, effects and controls of change orders in large building construction in Saudi Arabia. To achieve the study objective, the researcher carried a literature review of the subject covering periodicals, dissertations, previous research studies and books written on the subject of change orders. In light of the literature study the researcher developed a survey questionnaire. The questionnaire was distributed to all building contractors, grade 1 and 2 registered with the Eastern Province Chamber of Commerce as well as building consultants. The survey questionnaire included four areas of study. The first included questions on the general market characteristics and general trends. The second included questions on the possible causes of change orders. The third included questions on the possible outcomes of changes. The fourth included questions on the management control tools utilized for minimizing the problems of change orders. Responses from 34 consultants and contractors working in the field of large building construction were analyzed. Analysis of data indicated that cost overruns due to change orders were in the magnitude of 6 to 10% of the original contract value. Schedule overrun was reported less than 10% of the original contract duration. The study also concluded that the owner is the major source of changes and that most changes are architectural. Change of plans, and material substitution are first causes of change orders in large buildings. The study also concluded that responses from contractors and consultants agree about the causes, effects and controls of change orders and recommended to include the owner in future studies to verify the reasons behind changes made by the owners.
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