CAUSES OF CHANGE ORDERS AND THEIR IMPACT ON CONSTRUCTION COST: THE CASE OF ADDIS ABABA DESIGN AND CONSTRUCTION WORKS BUREAU.

Abstract

This research has been conducted to make assessments on causes of change orders and their effect on project cost, the case of Addis Ababa Design and Construction works Bureau. The research adopted a casual/ explanatory model on top of a descriptive research provided. Emphasis was given on the identification of the causes of change orders and 21 causes were analyzed. A closed ended questionnaire was designed and distributed to the employees and contractual stakeholders of AADCWB. Respondents were selected using a statistical formula. From the 60 questionnaires were distributed and 55 were returned with a response rate of 91.6%. The result was analyzed in SPSS version 26 using descriptive statistics and regression analysis. As a result, the most common causes of change orders were identified as; Errors and Omissions in design, Change of design, and conflict between contract documents. The study concludes that change order is a significant predictor for the performance of cost. Therefore, if there are a high number of change orders in a project, the cost overrun will be significantly higher. Finally, the theses recommend for adaptations of critical planning and prevent change order from happening by further scrutinizing design documents together with all contractual stakeholders and to involve further market studies to minimize indirect cost effects.