UIJRT » United International Journal for Research & Technology

Risk Evaluation Causes of Contract Change Order to Improve Cost Performance on Railway Construction Project

Total Views / Downloads: 204 

Cite ➜

Setiawan, I. and Riantini, L.S., 2021. Risk Evaluation Causes of Contract Change Order to Improve Cost Performance on Railway Construction Project. United International Journal for Research & Technology (UIJRT), 2(9), pp.10-14.

Abstract

In the railway construction project, there are potential risks that cause Contract Change Orders and has an impact on project cost performance. Risk factors can be seen from three aspects that consist of technical, legal, and environmental aspects. Therefore, the purpose of this study is to analyze the factors causing CCO that have an impact on costs, and determine the steps for managing CCO risk. This study uses a questionnaire to the experts which has experience on railway projects. From the research results, 29 risk variables that affect CCO are grouped into technical, legal and environmental aspects. The factors of design changes, changes in the scope of work and acceleration of the implementation schedule are one of the dominant factors causing CCO in this study. Furthermore, the identified risk factors can be used for the next step, which is to respond to the risk as a risk control strategy. This strategy is expected to improve the cost performance of railway projects.

Keywords: Contract Change Order, Railway project, Risk analysis.

References

  1. Wena, Made., Suparno, “Manajemen Risiko Dalam Proyek Konstruksi”. Jurnal Bangunan, Vol.20, No.1, pp 1-12, 2015.
  2. Hanna, A., Camlic, R., Peterson, P. and Nordheim E, “Quantitative Definition of Projects Impacted by Change Orders’”. Journal of Construction Engineering and Management, ASCE, 128(1), 57–64, 2002.
  3. Alaryan et al.,”Causes and Effects of Change Orders on Construction Projects in Kuwait. Int. Journal of Engineering Research and Applications, ISSN : 2248-9622, Vol. 4, Issue 7( Version 2), July 2014, pp.01-08, 2014.
  4. Gumelar, Galih, “  CCO  (ContractChange  Order),  Adendum,Perubahan/Amandemen Kontrak.”, 2014.
  5. Desai, Jaydeep & Pitroda, Dr. Jayeshkumar & Bhavsar, Prof., “A Review On Change Order And Assessingcauses Affecting Change Order In Construction. Journal Of International Academic Research For Multidisciplinary Impact Factor 1.625, Issn: 2320-5083. 2. 152-162, 2015.
  6. Ndihokubwayo, Ruben & Haupt, Theo. (2009). Variation Orders on Construction Projects: Value-adding or Waste?. Ruben Ndihokubwayo. 1.
  7. Ibbs, C. W., “Change’s impact on construction productivity”. J. Constr. Eng. Manage., 123(1), 89–97. 1997.
  8. Presidential Regulation Number 2128 of 2018. National Railway Master PlanStrategic Projects.
  9. Sugiyono, Prof. Dr. 2003. Statistics for research in the fifth edition. Bandung: CV Alfabeta.

For Conference & Paper Publication​

UIJRT Publication - International Journal