Exploring the Impacts of Change Orders on Performance of Construction Projects in Saudi Arabia

Abstract

The construction industry is one of the most complex industries, and it involves numerous change orders. Change orders often occur in all or some phases of industrial construction work and have a significant impact on the success of the project, its on‐time completion, or ultimately, an increase in the estimated cost of the project. Change orders are one of the most frequently common problems facing construction projects in Saudi Arabia. The purpose of this study is to examine the impacts of change orders on construction projects in Saudi Arabia and identify preventive solutions to mitigate these impacts. To achieve this objective, the effects of change orders on construction projects in general were identified through a comprehensive literature review. Then, an analytical study was conducted on five construction projects in diverse universities in Saudi Arabia. Following that, interviews were conducted with some experts in these projects. Finally, a survey was conducted by distributing questionnaires to the parties involved in the projects, and the responses were analyzed by using the relative index method. A triangulation technique involving collecting data from the analytical study, the interviews, and the survey was used to improve the validity of the findings. The results showed that the major impacts of change orders on construction projects in Saudi Arabia were on meeting the needs of the project, disputes among parties of the project, and the development of project specifications. A set of preventive solutions were suggested to mitigate these impacts, such as having all parties study the project and coordinate between them before starting the project and hiring a specialized consultant with experience in similar projects.