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

Authors: Majed Alzara
Journal: Advances in Civil Engineering
 (2022)

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## 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.


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## Body

## 1. Introduction

A contract change order (CCO) is common in construction projects in general, whether it is a building project or an infrastructure project. The change order is a form of work improvement often mentioned in the work contract. It has a direct effect in cases of project delay or cost overruns [1]. Changes or improvements to the scope of projects are often necessary and inevitable, leading to change orders being issued.According to Luke J Farkey [2], the types of change orders in construction projects can be classified into three main types, with each type including different contractual reversals: additive change orders, deductive change orders, and partial termination. First, additive change orders are the most common change order. The contractor requests an increase in the project cost or schedule as a result of assigning him additional tasks. Second, the deductive change order leads to the deletion of a specific part of the work, which in turn leads to a reduction in the total cost or time of the project. Third, partial termination involves a significant change in the scope of work. The contractor may delete large portions of the work scope, eventually leading to the invalidity of the contract. Construction contracts usually include language to allow partial termination.Previous studies related to the classification of change orders (e.g., [3]) classified change orders into two categories: “anticipated change orders” and “emergent change orders.” Anticipated change orders can be planned in advance, whereas emerging change orders occur suddenly. The abovementioned study also stated that it is possible to classify change orders according to the necessity of changes: “required changing” indicates a necessity to implement changes in the project, and “elective changing” requires choosing between implementing or not implementing change orders. Change orders can be classified into “beneficial changing” and “detrimental change orders.” According to one study [4], if there is a need to improve work quality standards, reduce project costs, or compress the project schedule, a change order may be beneficial and may eliminate unnecessary costs. In contrast, there are some change orders that negatively affect the performance and quality of the project. Such orders are classified as “detrimental change orders.” Previous studies have shown that there are many reasons for change orders in construction projects [5, 6]. These studies categorized the causes of change orders into design-related causes, sudden changes in circumstances, and design-error-related causes. According to some studies [7–9], it is possible to classify changes on the basis of the sources of the changes, which are often represented by the contracting parties—namely the owner, the design consultant, the contractor, and other relevant parties. Some researchers [10] believe that changes in the scope of a project by the owner are the main reason for changes to the project itself. Errors in the project design are also a major reason, followed by reasons related to materials and labor. All of these can lead to the cost of the project increasing and the project schedule changes.One study [11] examined 145 change orders for some projects, concluding that the largest percentage of change orders is due to errors or omissions in the work plan. This percentage is approximately 52%. Meanwhile, 33% of change orders are due to changes in the plan by the owner, and 9% of change orders are due to unforeseen circumstances.The aim of this research is to identify the impacts of change orders in construction projects in Saudi Arabia and to suggest preventive solutions to mitigate these impacts. To achieve the goal of the study and in view of the wide scope and multiplicity of construction projects in Saudi Arabia, case studies were conducted for some selected projects in diverse universities in Saudi Arabia. These projects varied in scope from educational buildings to infrastructure projects. This study also obtained the opinions of experts in construction projects in Saudi Arabia about the impacts of change orders and their suggestions to mitigate these impacts. To expand the scope of the study and achieve its objectives, a questionnaire survey was conducted and distributed to the parties involved in the construction projects (client, consultant, and contractor). Then, an analytical study was conducted to obtain their responses.


## 2. Statement of the Problem

There is always an impact of change orders on project performance, specifically project cost and schedule, which causes multiple problems among contracting project parties, including clients, consultants, and contractors.These problems appear clearly in construction projects in Saudi Arabia, which have a large scope and involve multiple companies and contractors. These construction projects often impose a binding schedule on all project parties.


### 2.1. Research Questions

(1)
What are the impacts of change orders on the performance of construction projects in Saudi Arabia?(2)
What are the preventive solutions to mitigate the effects of change orders in construction projects in Saudi Arabia?


## 2.1. Research Questions

(1)
What are the impacts of change orders on the performance of construction projects in Saudi Arabia?(2)
What are the preventive solutions to mitigate the effects of change orders in construction projects in Saudi Arabia?


## 3. Research Objectives

The overall objective is to identify the impacts of change orders on the performance of construction projects in Saudi Arabia.The specific objectives are as follows:(i)
To identify the impacts of change orders in a sample of construction projects in diverse universities in Saudi Arabia(ii)
To analyze the impact of these change orders on construction project performance, including cost and duration of completion of the projects(iii)
To identify preventive solutions that can be taken to mitigate the effects of these change orders on these types of construction projects


## 4. Literature Review

Chen [12] conducted an analytical study of a large sample of 1,071 construction projects to examine the effect of change orders on project performance. The percentage of residential buildings in these projects was about 17%. The remaining 83% consisted of infrastructure projects. The study concluded that change orders had a clear impact on the cost of the projects. The average cost increased on an average of by 8.45% of the original cost of the project, which negatively affected the project’s performance. Ming et al. [3] explained that a change in the works of construction projects usually occurs as a result of a change in the design or aspects of the project. The latter change is due to modifications in preexisting conditions or requirements. If the number of change orders is increased in a project, this may result in a misunderstanding between the contracting parties, leading to a variation in costs or a delay in work completion. There may also be a conflict of work between the project parties, affecting the project schedule. According to Ruben [13], change orders affect overall project performance.Regarding construction projects in educational institutions such as universities, studies have specifically addressed this type of project. According to Arain and Pheng [9], changes in design are the most important reasons for change orders in 70 educational projects. Oyewobi [14] identified 14 main factors as reasons for change orders in educational projects. The effects of these change orders were felt most on cost, time, customer dissatisfaction, and rework and demolition. There were also cases of contract termination. The average cost overrun in these projects was 33.95%, and the average delay in project time was 29.45%.Researchers [14–29] have reviewed studies to determine the impact of change orders on projects. According to these authors, the various impacts of change orders were as follows: time overruns, cost overrun, increase in overhead expenses, delay in payment, quality degradation, productivity degradation, procurement delay, rework and demolition, logistics delays, safety consideration, additional payments for the contractor, and disputes among parties. Table 1 presents the effects of change orders from the reviewed studies.Table 1
The effects of change orders from reviewed studies.
[14][18][17][16][15][19][12]1Time overrun✓✓✓✓✓✓2Cost overrun✓✓✓✓✓✓3Increase in overhead expenses✓✓✓✓✓✓4Delay in payment✓✓✓5Quality degradation✓✓✓✓✓✓✓6Productivity degradation✓✓✓✓✓✓✓7Procurement delay✓✓8Rework and demolition✓✓✓✓✓✓✓9Logistics delays✓10Safety consideration✓✓11Additional payments for contractor✓✓✓✓✓✓12Disputes among parties✓✓✓✓✓From previous studies, it is clear that change orders and their repetition strongly affect the performance of a project based on various factors, some of which may be expected in advance and others may not.


## 5. Methods

The aim of the study was to identify the impacts of change orders in construction projects in Saudi Arabia. Primary data were collected through a literature review to determine the most impacted areas in construction projects. A case study was conducted on five newly completed construction projects (universities) in Saudi Arabia. Detailed information was collected, such as (weekly and monthly reports, contract value, number of change orders, project schedule, and impact of change orders on the performance of projects in time and cost). Next, interviews were conducted with experts to obtain their opinion on how change orders can affect construction projects and how to mitigate these effects. Finally, a quantitative questionnaire was administered to the project parties in Saudi Arabia to obtain the opinions of specialists about the effects of change orders on construction projects in Saudi Arabia.


## 6. Results and Discussion

In this part, the data of the studied projects will be considered and analyzed. Additionally, the results of the interviews conducted with the specialists will be discussed. Finally, the responses received from the specialists through the questionnaires will be analyzed.


### 6.1. Case Study Result

To further understand the impact of change orders on construction projects in Saudi Arabia, a case study of five projects in diverse universities in Saudi Arabia was conducted. These projects were completed in the last three years and varied from educational building projects to infrastructure projects. Table2 shows the average values of the original project cost and the actual cost, the original project time and actual time, and the number and percentage of the change orders in all projects.Table 2
Summary of the studied projects.
Project idProject nameNo. Of CO%. of COOriginal costActual costOriginal time (days)Actual timeCost deviationTime deviation (days)Project ACollege of administration and humanities project5861,342,235.4166,076,776.813569004734541.4544Project BCollege of preparatory year project24.3795,788,061.4571,042,350.39151647−24,745,711.15732Project CInfrastructure project11095,422,420104,964,6283656209,542,208255Project DTheater and ballroom project114.6976,937,679.4871,803,380.115401629−5,134,299.371089Project ECentral library, restaurants, and support services project1016.22116,590,752118,474,148.191518501,883,396.1935Projects (A) to (E) were exposed to project cost overruns of 7.72%, −25.38%, 10.00%, −6.67%, and 1.62% of the contract amount, respectively. The summary of the impacts of change orders is provided in Table3.Table 3
Extract carried out on the impacts of change orders in the studied projects.
Project AProject BProject CProject DProject ECost overrun of the projectMeeting the needs of the projectCost overrun of the projectMeeting the needs of the projectCost overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectDelay in payment to the contractorDeveloping the project specificationsDelay in payment to the contractorDeveloping the project specificationsDelay in payment to the contractorDeveloping the project specificationsDisputes among parties of the projectDeveloping the project specificationsDisputes among parties of the projectDeveloping the project specifications


### 6.2. Interview Result

The interviews were conducted with carefully selected experts on construction projects in Saudi Arabia. The aim was to determine the impacts of change orders on the performance of these projects as well as to investigate how to mitigate these impacts.The results of the interview showed that there are common effects of change orders. These effects frequently occur, whether by increasing the final cost of the project or delaying the project schedule. Some disputes between parties and some degradation in quality also occur. In some cases, a partial withdrawal of work may occur. Table4 summarizes these effects. The experts agreed on how to mitigate these effects, and their recommendations are discussed herein.Table 4
List of the interview results with the experts.
The questionThe experts’ responsesDiscussing the impacts of change orders on the performance of construction projects in Saudi universitiesThere are positive effects of change orders, such as(i) Meeting the needs of the project owner(ii) Developing specifications due to lengthy implementation or award procedures(iii) Activating value engineering during implementation, which may help to achieve savings in cost and quantityThere are negative effects of change orders, such as(i) Wrongly using change orders, leading to fraud by one of the project parties(ii) Increasing the project schedule, affecting the purpose of the project(iii) Increasing the final cost of the project.Discussing the possible solutions to reduce change orders in construction projects(i) Defining the goal and purpose of the project accurately before preparing the project designs(ii) Setting design criteria and performing clear calculations and studies for the project(iii) Requiring the designer to visit the site and the beneficiaries of the project to correctly identify the project needs(iv) Giving the designer a sufficient amount of time to study and develop appropriate, clear, and detailed specifications(v) Coordinating with the relevant authorities to determine requirements, including civil defense, electricity company, water company, Ministry of Transport, and information technology requirements(vi) Nonspecialization should not to contributes for adding some modifications that affect the progress of the project need for a supervisory department with the expertise to review designs and approve itDiscussing how to mitigate the impacts of change orders on the performance of construction projects in Saudi universities(i) All parties should study the project well and coordinate among themselves before starting the project.(ii) Periodic reviews should be conducted of the project according to need.(iii) One change order should be issued covering all aspects of the shortfall.(iv) A specialist consultant with expertise that reflects his technical capabilities should be chosen(v) Documents and standard controls should be developed to define the stages from the beginning of the project to its completion(vi) A common database system among all project parties should be developed


### 6.3. Questionnaire Survey Result

The questionnaire form was divided into three sections. The first section included general information about the respondents and their experiences, the second section was about the impact of change orders on the performance of construction projects, and the third section concerned respondents’ opinions on how to mitigate the impact of the change orders on the performance of diverse construction projects. The responses were arranged by using a Likert scale from 1 (no impact) to 5 (very high impact). As Table5 shows, 12 impacts of change orders on construction projects were identified from the literature review and expert interviews.Table 5
The final form of the questionnaire.
SectionS. N.QuestionResponsesA1The job (contractor/engineer/consultant/other)2Employer (government entity/private sector/other)3Specialization4Number of years of experience in construction projects (less than 5 years/5 to 10 years/more than 10 years)BS. N.Impact of change orders on construction projectsImpact degreeNo impactLow impactMedium impactHigh impactVery high impact1Time overrun of the project2Cost overrun of the project3Increase in overhead expenses4Delay in payment to the contractor5Quality degradation in the project6Productivity degradation in the project7Demolition and rework8Safety considerations in the project9Additional payments for the contractor10Disputes among parties of the project11Meeting the needs of the project12Developing the project specificationsOther impacts (please indicate if any)CS. N.Factors that mitigate the impacts of using change orders in projectsImportance degreeNo importanceLow importanceMedium importanceHigh importanceVery high importance1All parties should study the project well and coordinate among themselves before starting the project2Periodic reviews of project requirements should be conducted as needed3A specialized consultant with experience in the project should be present4Software should be used to share data and business developments among all project parties5The use of change orders in the project should be minimized6There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be consideredOther factors (please indicate if any)The results of the questionnaire were collected, and the respondents were divided into three main divisions: consultants, contractors, and engineers. A total of 140 questionnaires were distributed to the targeted respondents; 98 were completed and returned, indicating a 70% response rate.The results of the responses were analyzed according to the relative index method (RI) to determine which factors were more important for each of the three sections (consultant, contractor, and engineers). A higher RI value indicated an increase in urgency.(1)RI=5n5+4n4+3n3+2n2++n5n5+n4+n3+n2+n,where RI: relative index; n5, n4, n3, n4, and n5: number of responding indices.


#### 6.3.1. The Impacts of Change Orders on Construction Projects

As Table6 and Figure 1 show, the highest ranked impact of change orders according to the overall responses was “Meeting the needs of the project” (RI = 0.746), followed by “Disputes among parties of the project” (RI = 0.734) and “Developing the project specifications” (RI = 0.734). “Time overrun,” “Cost overrun,” and “Increase in overhead expenses” had the same impacts on the project (RI = 0.704). The lowest ranked impact of change orders according to the overall responses was “Safety consideration in the project” (RI = 0.5). Figures 2–4 show responses from the project parties (consultants’ responses, contractors’ responses, and engineers’ responses).Table 6
Frequency of impact of change orders on projects.
Impact of change ordersConsultant responsesContractor responsesEngineers responsesOverall responsesRIRankRIRankRIRankRIRankMeeting the needs of the project0.6210.37110.4480.751Disputes among parties of the project0.43100.4760.4570.732Developing the project specifications0.5250.4950.3990.733Time overrun of the project0.5530.4670.5510.704Cost overrun of the project0.5160.6020.5420.705Increase in overhead expenses0.5170.5040.5440.706Delay in payment to the contractor0.5540.30120.4850.707Demolition and rework0.5180.4090.4660.668Additional payments for the contractor0.4390.5330.5430.649Productivity degradation in the project0.5720.6410.38100.5910Quality degradation in the project0.38110.4680.22120.5611Safety considerations in the project0.28120.40100.35110.5012Figure 1
Frequency of impact of change orders on projects (overall responses).Figure 2
Frequency of impact of change orders on projects (consultants’ responses).Figure 3
Frequency of impact of change orders on projects (contractors’ responses).Figure 4
Frequency of impact of change orders on projects (Engineers’ responses).Based on Figures 1–4, the five most important impacts of change orders on construction projects are illustrated in Table7.Table 7
The five most important impacts of change orders.
RankConsultants’ responsesContractors’ responsesEngineers’ responses1Meeting the needs of the projectProductivity degradation in the projectTime overrun of the project2Productivity degradation in the projectCost overrun of the projectCost overrun of the project3Time overrun of the projectAdditional payments for contractorAdditional payments for contractor4Delay in payment to the contractorIncrease in overhead expensesIncrease in overhead expenses5Developing the project specificationsDeveloping the project specificationsDelay in payment to the contractor


#### 6.3.2. Factors That Mitigate the Impacts of Using Change Orders in Projects

As Table8 shows, the most important factor that mitigated the impacts of using change orders in projects was “All parties should study the project well and coordinate among themselves before starting the project” (RI = 0.967). The least ranked factor according to the overall responses was “The use of change orders in the project should be minimized” (RI = 0.779) (Figures 5–8).Table 8
The most important factors that mitigate the impacts of change orders on projects.
Impact of change ordersConsultants’ responsesContractors’ responsesEngineers’ responsesOverall responsesRIRankingRIRankingRIRankingRIRankingAll parties should study the project well and coordinate among themselves before starting the project0.95410.97110.78110.9671A specialized consultant with experience in the project should be present0.89220.90020.73320.9042Periodic reviews of project requirements should be conducted as needed0.87730.82940.65750.8423There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be considered0.850.84330.61060.8004Software should be used to share data and business developments among all project parties0.78560.72960.70530.7795The use of change orders in the project should be minimized0.83140.78650.70540.7796Figure 5
The most important factors that mitigate the impacts of change orders (consultants’ responses).Figure 6
The most important factors that mitigate the impacts of change orders (contractors’ responses).Figure 7
The most important factors that mitigate the impacts of change orders (engineers’ responses).Figure 8
The most important factors that mitigate the impacts of change orders (overall responses).Based on Figures 5–8, the three most important factors that mitigate the impacts of change orders on construction projects are illustrated in Table9.Table 9
The most important factors that mitigate the impacts of change orders on construction projects.
RankConsultants’ respondentsContractors’ respondentsEngineers’ respondents1All parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the project2A specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be present3Periodic reviews of project requirements should be conducted as neededThere should be no reliance on the specifications of similar projects, and spatial considerations for each project should be consideredSoftware should be used to share data and business developments among all project parties


## 6.1. Case Study Result

To further understand the impact of change orders on construction projects in Saudi Arabia, a case study of five projects in diverse universities in Saudi Arabia was conducted. These projects were completed in the last three years and varied from educational building projects to infrastructure projects. Table2 shows the average values of the original project cost and the actual cost, the original project time and actual time, and the number and percentage of the change orders in all projects.Table 2
Summary of the studied projects.
Project idProject nameNo. Of CO%. of COOriginal costActual costOriginal time (days)Actual timeCost deviationTime deviation (days)Project ACollege of administration and humanities project5861,342,235.4166,076,776.813569004734541.4544Project BCollege of preparatory year project24.3795,788,061.4571,042,350.39151647−24,745,711.15732Project CInfrastructure project11095,422,420104,964,6283656209,542,208255Project DTheater and ballroom project114.6976,937,679.4871,803,380.115401629−5,134,299.371089Project ECentral library, restaurants, and support services project1016.22116,590,752118,474,148.191518501,883,396.1935Projects (A) to (E) were exposed to project cost overruns of 7.72%, −25.38%, 10.00%, −6.67%, and 1.62% of the contract amount, respectively. The summary of the impacts of change orders is provided in Table3.Table 3
Extract carried out on the impacts of change orders in the studied projects.
Project AProject BProject CProject DProject ECost overrun of the projectMeeting the needs of the projectCost overrun of the projectMeeting the needs of the projectCost overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectTime overrun of the projectDelay in payment to the contractorDeveloping the project specificationsDelay in payment to the contractorDeveloping the project specificationsDelay in payment to the contractorDeveloping the project specificationsDisputes among parties of the projectDeveloping the project specificationsDisputes among parties of the projectDeveloping the project specifications


## 6.2. Interview Result

The interviews were conducted with carefully selected experts on construction projects in Saudi Arabia. The aim was to determine the impacts of change orders on the performance of these projects as well as to investigate how to mitigate these impacts.The results of the interview showed that there are common effects of change orders. These effects frequently occur, whether by increasing the final cost of the project or delaying the project schedule. Some disputes between parties and some degradation in quality also occur. In some cases, a partial withdrawal of work may occur. Table4 summarizes these effects. The experts agreed on how to mitigate these effects, and their recommendations are discussed herein.Table 4
List of the interview results with the experts.
The questionThe experts’ responsesDiscussing the impacts of change orders on the performance of construction projects in Saudi universitiesThere are positive effects of change orders, such as(i) Meeting the needs of the project owner(ii) Developing specifications due to lengthy implementation or award procedures(iii) Activating value engineering during implementation, which may help to achieve savings in cost and quantityThere are negative effects of change orders, such as(i) Wrongly using change orders, leading to fraud by one of the project parties(ii) Increasing the project schedule, affecting the purpose of the project(iii) Increasing the final cost of the project.Discussing the possible solutions to reduce change orders in construction projects(i) Defining the goal and purpose of the project accurately before preparing the project designs(ii) Setting design criteria and performing clear calculations and studies for the project(iii) Requiring the designer to visit the site and the beneficiaries of the project to correctly identify the project needs(iv) Giving the designer a sufficient amount of time to study and develop appropriate, clear, and detailed specifications(v) Coordinating with the relevant authorities to determine requirements, including civil defense, electricity company, water company, Ministry of Transport, and information technology requirements(vi) Nonspecialization should not to contributes for adding some modifications that affect the progress of the project need for a supervisory department with the expertise to review designs and approve itDiscussing how to mitigate the impacts of change orders on the performance of construction projects in Saudi universities(i) All parties should study the project well and coordinate among themselves before starting the project.(ii) Periodic reviews should be conducted of the project according to need.(iii) One change order should be issued covering all aspects of the shortfall.(iv) A specialist consultant with expertise that reflects his technical capabilities should be chosen(v) Documents and standard controls should be developed to define the stages from the beginning of the project to its completion(vi) A common database system among all project parties should be developed


## 6.3. Questionnaire Survey Result

The questionnaire form was divided into three sections. The first section included general information about the respondents and their experiences, the second section was about the impact of change orders on the performance of construction projects, and the third section concerned respondents’ opinions on how to mitigate the impact of the change orders on the performance of diverse construction projects. The responses were arranged by using a Likert scale from 1 (no impact) to 5 (very high impact). As Table5 shows, 12 impacts of change orders on construction projects were identified from the literature review and expert interviews.Table 5
The final form of the questionnaire.
SectionS. N.QuestionResponsesA1The job (contractor/engineer/consultant/other)2Employer (government entity/private sector/other)3Specialization4Number of years of experience in construction projects (less than 5 years/5 to 10 years/more than 10 years)BS. N.Impact of change orders on construction projectsImpact degreeNo impactLow impactMedium impactHigh impactVery high impact1Time overrun of the project2Cost overrun of the project3Increase in overhead expenses4Delay in payment to the contractor5Quality degradation in the project6Productivity degradation in the project7Demolition and rework8Safety considerations in the project9Additional payments for the contractor10Disputes among parties of the project11Meeting the needs of the project12Developing the project specificationsOther impacts (please indicate if any)CS. N.Factors that mitigate the impacts of using change orders in projectsImportance degreeNo importanceLow importanceMedium importanceHigh importanceVery high importance1All parties should study the project well and coordinate among themselves before starting the project2Periodic reviews of project requirements should be conducted as needed3A specialized consultant with experience in the project should be present4Software should be used to share data and business developments among all project parties5The use of change orders in the project should be minimized6There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be consideredOther factors (please indicate if any)The results of the questionnaire were collected, and the respondents were divided into three main divisions: consultants, contractors, and engineers. A total of 140 questionnaires were distributed to the targeted respondents; 98 were completed and returned, indicating a 70% response rate.The results of the responses were analyzed according to the relative index method (RI) to determine which factors were more important for each of the three sections (consultant, contractor, and engineers). A higher RI value indicated an increase in urgency.(1)RI=5n5+4n4+3n3+2n2++n5n5+n4+n3+n2+n,where RI: relative index; n5, n4, n3, n4, and n5: number of responding indices.


### 6.3.1. The Impacts of Change Orders on Construction Projects

As Table6 and Figure 1 show, the highest ranked impact of change orders according to the overall responses was “Meeting the needs of the project” (RI = 0.746), followed by “Disputes among parties of the project” (RI = 0.734) and “Developing the project specifications” (RI = 0.734). “Time overrun,” “Cost overrun,” and “Increase in overhead expenses” had the same impacts on the project (RI = 0.704). The lowest ranked impact of change orders according to the overall responses was “Safety consideration in the project” (RI = 0.5). Figures 2–4 show responses from the project parties (consultants’ responses, contractors’ responses, and engineers’ responses).Table 6
Frequency of impact of change orders on projects.
Impact of change ordersConsultant responsesContractor responsesEngineers responsesOverall responsesRIRankRIRankRIRankRIRankMeeting the needs of the project0.6210.37110.4480.751Disputes among parties of the project0.43100.4760.4570.732Developing the project specifications0.5250.4950.3990.733Time overrun of the project0.5530.4670.5510.704Cost overrun of the project0.5160.6020.5420.705Increase in overhead expenses0.5170.5040.5440.706Delay in payment to the contractor0.5540.30120.4850.707Demolition and rework0.5180.4090.4660.668Additional payments for the contractor0.4390.5330.5430.649Productivity degradation in the project0.5720.6410.38100.5910Quality degradation in the project0.38110.4680.22120.5611Safety considerations in the project0.28120.40100.35110.5012Figure 1
Frequency of impact of change orders on projects (overall responses).Figure 2
Frequency of impact of change orders on projects (consultants’ responses).Figure 3
Frequency of impact of change orders on projects (contractors’ responses).Figure 4
Frequency of impact of change orders on projects (Engineers’ responses).Based on Figures 1–4, the five most important impacts of change orders on construction projects are illustrated in Table7.Table 7
The five most important impacts of change orders.
RankConsultants’ responsesContractors’ responsesEngineers’ responses1Meeting the needs of the projectProductivity degradation in the projectTime overrun of the project2Productivity degradation in the projectCost overrun of the projectCost overrun of the project3Time overrun of the projectAdditional payments for contractorAdditional payments for contractor4Delay in payment to the contractorIncrease in overhead expensesIncrease in overhead expenses5Developing the project specificationsDeveloping the project specificationsDelay in payment to the contractor


### 6.3.2. Factors That Mitigate the Impacts of Using Change Orders in Projects

As Table8 shows, the most important factor that mitigated the impacts of using change orders in projects was “All parties should study the project well and coordinate among themselves before starting the project” (RI = 0.967). The least ranked factor according to the overall responses was “The use of change orders in the project should be minimized” (RI = 0.779) (Figures 5–8).Table 8
The most important factors that mitigate the impacts of change orders on projects.
Impact of change ordersConsultants’ responsesContractors’ responsesEngineers’ responsesOverall responsesRIRankingRIRankingRIRankingRIRankingAll parties should study the project well and coordinate among themselves before starting the project0.95410.97110.78110.9671A specialized consultant with experience in the project should be present0.89220.90020.73320.9042Periodic reviews of project requirements should be conducted as needed0.87730.82940.65750.8423There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be considered0.850.84330.61060.8004Software should be used to share data and business developments among all project parties0.78560.72960.70530.7795The use of change orders in the project should be minimized0.83140.78650.70540.7796Figure 5
The most important factors that mitigate the impacts of change orders (consultants’ responses).Figure 6
The most important factors that mitigate the impacts of change orders (contractors’ responses).Figure 7
The most important factors that mitigate the impacts of change orders (engineers’ responses).Figure 8
The most important factors that mitigate the impacts of change orders (overall responses).Based on Figures 5–8, the three most important factors that mitigate the impacts of change orders on construction projects are illustrated in Table9.Table 9
The most important factors that mitigate the impacts of change orders on construction projects.
RankConsultants’ respondentsContractors’ respondentsEngineers’ respondents1All parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the project2A specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be present3Periodic reviews of project requirements should be conducted as neededThere should be no reliance on the specifications of similar projects, and spatial considerations for each project should be consideredSoftware should be used to share data and business developments among all project parties


## 6.3.1. The Impacts of Change Orders on Construction Projects

As Table6 and Figure 1 show, the highest ranked impact of change orders according to the overall responses was “Meeting the needs of the project” (RI = 0.746), followed by “Disputes among parties of the project” (RI = 0.734) and “Developing the project specifications” (RI = 0.734). “Time overrun,” “Cost overrun,” and “Increase in overhead expenses” had the same impacts on the project (RI = 0.704). The lowest ranked impact of change orders according to the overall responses was “Safety consideration in the project” (RI = 0.5). Figures 2–4 show responses from the project parties (consultants’ responses, contractors’ responses, and engineers’ responses).Table 6
Frequency of impact of change orders on projects.
Impact of change ordersConsultant responsesContractor responsesEngineers responsesOverall responsesRIRankRIRankRIRankRIRankMeeting the needs of the project0.6210.37110.4480.751Disputes among parties of the project0.43100.4760.4570.732Developing the project specifications0.5250.4950.3990.733Time overrun of the project0.5530.4670.5510.704Cost overrun of the project0.5160.6020.5420.705Increase in overhead expenses0.5170.5040.5440.706Delay in payment to the contractor0.5540.30120.4850.707Demolition and rework0.5180.4090.4660.668Additional payments for the contractor0.4390.5330.5430.649Productivity degradation in the project0.5720.6410.38100.5910Quality degradation in the project0.38110.4680.22120.5611Safety considerations in the project0.28120.40100.35110.5012Figure 1
Frequency of impact of change orders on projects (overall responses).Figure 2
Frequency of impact of change orders on projects (consultants’ responses).Figure 3
Frequency of impact of change orders on projects (contractors’ responses).Figure 4
Frequency of impact of change orders on projects (Engineers’ responses).Based on Figures 1–4, the five most important impacts of change orders on construction projects are illustrated in Table7.Table 7
The five most important impacts of change orders.
RankConsultants’ responsesContractors’ responsesEngineers’ responses1Meeting the needs of the projectProductivity degradation in the projectTime overrun of the project2Productivity degradation in the projectCost overrun of the projectCost overrun of the project3Time overrun of the projectAdditional payments for contractorAdditional payments for contractor4Delay in payment to the contractorIncrease in overhead expensesIncrease in overhead expenses5Developing the project specificationsDeveloping the project specificationsDelay in payment to the contractor


## 6.3.2. Factors That Mitigate the Impacts of Using Change Orders in Projects

As Table8 shows, the most important factor that mitigated the impacts of using change orders in projects was “All parties should study the project well and coordinate among themselves before starting the project” (RI = 0.967). The least ranked factor according to the overall responses was “The use of change orders in the project should be minimized” (RI = 0.779) (Figures 5–8).Table 8
The most important factors that mitigate the impacts of change orders on projects.
Impact of change ordersConsultants’ responsesContractors’ responsesEngineers’ responsesOverall responsesRIRankingRIRankingRIRankingRIRankingAll parties should study the project well and coordinate among themselves before starting the project0.95410.97110.78110.9671A specialized consultant with experience in the project should be present0.89220.90020.73320.9042Periodic reviews of project requirements should be conducted as needed0.87730.82940.65750.8423There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be considered0.850.84330.61060.8004Software should be used to share data and business developments among all project parties0.78560.72960.70530.7795The use of change orders in the project should be minimized0.83140.78650.70540.7796Figure 5
The most important factors that mitigate the impacts of change orders (consultants’ responses).Figure 6
The most important factors that mitigate the impacts of change orders (contractors’ responses).Figure 7
The most important factors that mitigate the impacts of change orders (engineers’ responses).Figure 8
The most important factors that mitigate the impacts of change orders (overall responses).Based on Figures 5–8, the three most important factors that mitigate the impacts of change orders on construction projects are illustrated in Table9.Table 9
The most important factors that mitigate the impacts of change orders on construction projects.
RankConsultants’ respondentsContractors’ respondentsEngineers’ respondents1All parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the projectAll parties should study the project well and coordinate among themselves before starting the project2A specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be presentA specialized consultant with experience in the project should be present3Periodic reviews of project requirements should be conducted as neededThere should be no reliance on the specifications of similar projects, and spatial considerations for each project should be consideredSoftware should be used to share data and business developments among all project parties


## 7. Conclusions and Recommendations

This study focused on the effects of change orders on construction projects in Saudi Arabia. Analytical data were collected using four methods. Data were collected and classified based on a literature review. Then, a case study was conducted of five recently completed projects in diverse Saudi universities. Interviews were also conducted with experts to determine their opinion about how change orders can affect construction projects and how to mitigate these effects. Finally, a quantitative questionnaire was administered to parties in construction projects in Saudi Arabia to assess the opinions of specialists about the effects of change orders on construction projects in Saudi Arabia.Based on the findings of the study, the following conclusions were obtained:(i)
The most ranked impact of change orders on construction projects in Saudi Arabia was “Meeting the needs of the project” (RI = 0.746). This was followed by “Disputes among parties of the project” (RI = 0.734) and “Developing the project specifications” (RI = 0.734). “Time overrun,” “Cost overrun,” and “Increase in overhead expenses” had the same impacts on the project (RI = 0.704). The lowest ranked impact of change orders according to the overall responses was the “Safety consideration in the project” (RI = 0.5).(ii)
The most important factor that mitigated the impacts of using change orders on construction projects in Saudi Arabia was “All parties should study the project well and coordinate among themselves before starting the project” (RI = 0.967). This was followed by “A specialized consultant with experience in the project should be present” (RI = 0.904), “Periodic reviews of project requirements should be conducted as needed” (RI = 0.842), and “There should be no reliance on the specifications of similar projects, and spatial considerations for each project should be considered” (RI = 0.8). “Software should be used to share data and business developments among all project parties” and “The use of change orders in the project should be minimized” had the same impacts on the project (RI = 0.779).The following ideas are recommended to improve the management of construction projects in Saudi Arabia:(i)
All project parties must have sufficient awareness of the negative and positive impacts of change orders on the performance of construction projects.(ii)
Project parties should implement identified measures to control the impacts of change orders, such as defining the goal and purpose of the project accurately before preparing the designs for the project, setting design criteria, and performing clear calculations and studies for the project. These can be achieved by engaging competent professionals in the project team and ensuring their adequate participation.(iii)
Periodic coordination plans should be implemented among all parties to make the best use of change orders.(iv)
The client should have a clear vision of the extent of the project and be careful in selecting the consultant.(v)
The relevant authorities should coordinate to determine the requirements before starting the project, including civil defense, electricity company, water company, Ministry of Transport, and information technology requirements. The designer should visit the site as well as meet the beneficiaries of the project and correctly identify their needs. The designer should take a sufficient amount of time to study and develop appropriate, clear, and detailed specifications for the project.(vi)
A supervisory department with the expertise to review designs and approve them should be set up.



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