The larger the project, the wider the scope, the more factors will be affected, and the greater the variability. Whether it is a change in the design drawing, or a change in the quantity of the project, or a change in the construction schedule, it will more or less cause changes in the project cost.
The main reason for engineering changes.
Reasons for the project: (1) The employer unilaterally proposes a change in the construction time or plan;
2) Temporarily increase or decrease some projects or construction volume.
Design reasons: (1) The original design is defective and urgently needs to be modified;
2) If the design plan is different from the actual construction situation, the design plan shall be modified or the construction plan shall be changed.
Material reasons: (1) The procurement of materials and equipment fluctuates, affecting procurement or expenditure;
2) Supplier's own factors, ** there is a fault;
3) There are quality problems in materials or equipment, forcing the project to be postponed or suspended.
Special reasons: (1) Damage or delay caused by force majeure such as floods;
2) Policy adjustments;
3) Other issues such as changes in the production environment or personnel.
The impact of engineering changes on the cost of construction.
The ultimate purpose of the project is to make the cost of investment in exchange for the maximum economic benefits. Therefore, no matter what kind of engineering change, there will basically be a cost change, which will affect the cost.
Typically, the scope of engineering changes is proportional to the cost of construction. That is, the larger the scope of change, the greater the degree, the greater the proportion, the greater the change in funds, and the cost is also to produce a large number of changes, and the control of the cost of the entire project will lose its original role, and vice versa.
In terms of change time, the earlier the stage of engineering change, the smaller the scope of impact on all aspects of the project, the smaller the cost resources consumed, the greater the space for the subsequent process, and the less the cost needs to be changed. Conversely, the closer the change is to completion, the greater the impact on the project cost, and even the loss of control.
Cost strategies for responding to engineering changes.
Prevention stage: (1) overall planning, comprehensive consideration of possible changes in construction, to do a good job of forward-looking analysis, the construction of the project to carry out a reasonable **, effectively prevent the occurrence of engineering change events, to prevent the project cost from getting out of control;
2) Grasp the source of project changes, control project risks, strictly review the process, communicate with all parties, carefully check, and monitor key projects.
Change stage: (1) Strictly control the approval of project changes, and carefully divide the changeable and non-changeable items. For projects that can be changed or unchanged, the cost and duration should be comprehensively considered, and within the scope of implementation, the same should usually be maintained
2) Based on the contract "Bill of Quantities". If the change items exist in the List, the List shall prevail. If the change item is not applicable to the List, or the actual situation exceeds or falls too much beyond the scope of the List, the project contracting and contracting parties shall be negotiated to re-determine the content of the change.
3) Record all kinds of engineering changes, accumulate and summarize positive and negative experience, improve cost management capabilities, and build a scientific, reasonable, advanced and efficient systematic process system for engineering changes.