Choi, Kunhee; Lee, Hyun Woo; Bae, Junseo; Bilbo, David. (2016). Time-Cost Performance Effect of Change Orders from Accelerated Contract Provisions. Journal Of Construction Engineering And Management, 142(3).
Abstract
Accelerated contract provisions (ACPs) such as cost-plus-time (A+B) and incentives/disincentives (I/D) are increasingly common, yet very little is known about their pure time-cost performance effects on change orders. To fill this large knowledge gap, a two-stage research methodology drawing on 1,372 highway improvement projects completed in California was adopted for this study. The Stage I study investigated the marginal change-order impacts of two ACPs, pure A+B and I/D combined with A+B. How ACP change orders affect projects' time-cost performance was numerically modeled and successfully validated over the Stage II study. The results clearly showed that both ACPs led to more schedule-change and cost-change orders than conventionally contracted projects, whereas I/D combined with A+B performed significantly better than pure A+B in terms of the magnitude of schedule-change orders. This conveys an important recommendation to state transportation agencies (STAs) that A+B be used with an I/D provision. The results and numerical models of this study would help STAs better assess and justify the impact of change orders on the duration and cost of projects, enabling them to more effectively use contingency amounts. Use of the models can also benefit contractors requesting a change order because the models can provide them with advanced knowledge of the probable time-cost growth rates specifically for the pursued ACP. (C) 2015 American Society of Civil Engineers.
Keywords
Construction Industry; Contracts; Costing; Incentive Schemes; Numerical Analysis; Order Processing; Performance Evaluation; Roads; Scheduling; Time Management; Transportation; Projects Time-cost Performance Effect; Cost-change Order; Accelerated Contract Provision; Knowledge Gap; California; Acp; Schedule-change Order; State Transportation Agency; Numerical Model; Sta; Incentive; Highway Improvement Project; Labor Productivity; Construction; Impact; Model; Projects; Change Order; Highway Rehabilitation; Decision Modeling; Regression; Validation; Contracting