Love, PED, Ika, LA, Ahiaga-Dagbui, DD et al. (2 more authors) (2019) Make-or-break during production: shedding light on change-orders, rework and contractors margin in construction. Production Planning and Control, 30 (4). pp. 285-298. ISSN 0953-7287
Abstract
A considerable amount of research has examined the cost performance of construction projects, yet there has been a paucity of studies that have examined the impact that client initiated change-orders and rework have on contractors. This paper seeks to add further clarity to this issue by replicating previous empirically-based research to establish the validity and reliability of the key issues influencing a contractor's cost performance. A total of 98 projects were used to examine the value of rework and change-orders and their influence on a contractor's margin. Only 65% of projects experienced a cost increase, though a mean rework cost of 0.39% of the contracted value was incurred. The difference between approved client change-orders and those by the contractor for subcontractors was 0.5% of the total costs incurred, which adversely impacted the organisation's profit. Margin losses may well have been higher as rework is seldom formally documented and reported.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Informa UK Limited, trading as Taylor & Francis Group.This is an author produced version of a paper published in Production Planning and Control. Uploaded in accordance with the publisher's self-archiving policy |
Keywords: | Construction, change-orders, contractor’s margin, rework |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Engineering & Physical Sciences (Leeds) > School of Civil Engineering (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 31 Oct 2018 13:28 |
Last Modified: | 29 Jan 2020 01:38 |
Status: | Published |
Publisher: | Taylor & Francis |
Identification Number: | 10.1080/09537287.2018.1535675 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:138021 |