Construction project change: Investigating cost and benefits

Cost overrun of projects is common in the construction industry. Changes to the original design and to the scope of works during the design development and construction phases contribute significantly to overall cost overrun of construction projects. However, scholars argue that change is inevitable, and some changes add value to the project. Therefore, it can be argued that the overrun of the initial construction cost through the changes made to the project may be insignificant compared to the reductions in life-cycle cost and whole life value of resultant built environments. Early research is presented here of a wider project seeking to evaluate the costs and value of proactive changes made during the construction phase with the intention to add value to the whole life of the project. Change control accounts and other related documentary evidence of two construction projects were investigated to identify changes made to the projects during the construction phase, and cost of those changes. Semi-structured interviews with quantity surveyors and project managers involved in those projects were conducted to enrich this documentary data. Analysis explored the contribution of proactive changes made with the intention to increase whole-life value to the overall cost overrun of construction projects, and clients’ understanding and willingness to pay for such changes. The next phase of this research will investigate the whole life value gained by the clients from these changes. Ultimately, this research aims to increase both clients and project managers understanding of cost and value of changes during the construction phase, with due consideration of the whole life cycle of construction projects.