Developing management policies and analyzing impact of change orders on labor productivity in construction projects

Purpose: The inevitable change orders in construction projects have either direct or indirect impacts on a project’s duration. Reduced productivity is one of the indirect consequences that lead to major delays in the completion of the project. The purpose of this study is to develop a model that could quantify the impact of change orders on labor productivity and result in the establishment of policies to lessen their effects. Design/methodology/approach: A model was developed to analyze the effects of change orders on labor productivity, then policies for managing their impacts on productivity and project duration were established. A water treatment case study was selected to serve as the scenario in which to implement and evaluate the model and policies. Findings: The results of this study indicated that pressure to adhere to a schedule initially leads to an increase in labor productivity, but it is often followed by a significant drop that is a result of employee frustration. It was concluded that the pressure can be positive if it is applied for a short period of time; however, it continues for a significant length of time, the duration of the project will increase appreciably. Originality/value: The proposed model can be implemented to identify the factors that affect labor productivity in a construction project. Its utilization will also help project managers assess when change orders occur and determine, which policies will be most effective in optimizing labor productivity.