Developing management policies and analyzing impact of change orders on labor productivity in construction projects

Abstract

Purpose The inevitable change orders in construction projects have either direct or indirect impacts on a project’s duration. Reduced productivity is one of the indirect consequences that lead to major delays in the completion of the project. The purpose of this study is to develop a model that could quantify the impact of change orders on labor productivity and result in the establishment of policies to lessen their effects. Design/methodology/approach A model was developed to analyze the effects of change orders on labor productivity, then policies for managing their impacts on productivity and project duration were established. A water treatment case study was selected to serve as the scenario in which to implement and evaluate the model and policies. Findings The results of this study indicated that pressure to adhere to a schedule initially leads to an increase in labor productivity, but it is often followed by a significant drop that is a result of employee frustration. It was concluded that the pressure can be positive if it is applied for a short period of time; however, it continues for a significant length of time, the duration of the project will increase appreciably. Originality/value The proposed model can be implemented to identify the factors that affect labor productivity in a construction project. Its utilization will also help project managers assess when change orders occur and determine, which policies will be most effective in optimizing labor productivity.