Analysis of modification types in Navy Construction Contracts
By: William J. Prout
Publisher: Available from National Technical Information Service
Published: 1998
Place of publication: Springfield, Va
Language: eng
Number of pages: 34
Description: Modifications, or change orders, in Navy construction contracts are a seemingly inevitable fact of life. In this      report I analyzed nearly 8400 modifications in over 2200 completed Navy construction contracts from      Southern Division of the Naval Facilities Engineering Command to identify the most frequent and expensive      categories. Using the modification reason code, the modifications were divided into 20 categories and the      effect of each of these categories was determined quantitatively. The data, which I found was not normally      distributed, was run three ways: (1) Unadjusted; (2) Adjusted for planned or expected modifications; (3)      Adjusted for planned or expected modifications and terminated contracts. The third way is the most      representative of a "typical" contract and the modifications with the largest effect on contract price are: (1)      Unforeseen Conditions, 2.65% increase over the total of all contract prices; (2) Design Changes, 1.82%      increase; (3) Customer Requested Changes, 1.64% increase. Overall, modifications increased the average      contract price by 7.78%, justifying the customary practice of including a 10% contingency in funding      estimates. I also report on several problems in the use of modification reason codes that effect the analysis,      though not significantly.
Notes: "Summer 1998."

Thesis (Master of Engineering) University of Florida, Summer 1998.

Includes bibliographical references (p.  34)

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dk/dk cc:9116 8/13/98.