Loading...

Contract Modifications for Controlling Unnecessary Work Scope Changes in Public Construction Projects in Iran

Ghods, Peyman | 2012

869 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: English
  3. Document No: 43264 (54)
  4. University: Sharif University of Technology, International Campus, Kish Island
  5. Department: Management and Economics
  6. Advisor(s): Eslami, Hossein
  7. Abstract:
  8. Variation in value and initial cost of construction contracts in many cases lead to considerably increasing the finalized price. These increases are sometimes so big enough that the 25 percent of limitation which could be added to contracts couldn't make them to be finalized and exploitable, so the necessity of a new contract sometimes up to 100 percent or even up to 200 percent of initial cost for completing the same project is inevitable. Although in some specific and rare cases we couldn't avoidance from these changes, but observing the growth of these changes in public construction projects of Iran increase the requirement of special attention in order to find the main causes, prevention manners and controlling these types of changes. Variation in values and initial cost of construction contracts are usually due to factors such as: a) Inaccuracy in cost estimation by responsible part. b) Inaccuracy in plans, details and documents of contract. c) Modification in objectives and expectations of stakeholder. d) Changing the work condition and context. Since the accuracy in cost estimation of projects for allocating the finance and budget of the projects is so important, on the other hand pricing and signing construction contracts could not be ignored. Inaccuracy and failure in estimations that mentioned in (a) and (b) could damage this kind of decision making. Furthermore if the next two items (c) and (d) not managed properly, may leading to the formation of a concept which called "Scope Creep" that may cause to increasing unnecessary cost of construction projects. This study was to find the main causes and percentage of cost variation between initial and finalized cost of different sample of construction projects and prioritize and highlight the main important causes and suggest the controlling avoidance manners that judge upon by experts. The mentioned solutions prepared regarding the percentages of each part between consultant, owner, contractor, beneficiary and stakeholder which are responsible for that variations. In this set of material for increasing the responsibility of consultant in accuracy of their estimations, preparing details, plans, their supervisions and controlling the changes and increasing the responsibility of contractors and owners the modifications for construction contracts and notifying new provisions have presented.

  9. Keywords:
  10. Construction Industry Projects ; Construction Projects ; Contract Modifications ; Scope Creep Project ; Public Projects ; Unnecessary Changes

 Digital Object List

 Bookmark

No TOC