The nature of construction projects is complex where many of factors and variables play significant roles. So, when change orders occurs all projects performance strongly affected. This research aims to investigate the impact of change orders on project performance in the West Bank, in order to take proactive measures to minimize changes during construction. The main objectives of the paper are to identify the main causes of changes occur in construction projects in the West Bank; highlight the potential effects of change orders on the Palestinian construction industry. In addition, to assess the current practices of change orders management within the construction companies in the West Bank. Results from the study shows that change orders in construction industry occurred more frequently for adding new items and works. Also results shows that the main source of changes in construction projects is the owner; It was found that project owners initiated change orders due to financial problems, changing in mind or non-compliant design with owners' requirements. Consultant initiated change orders due to errors and omissions in designs, specifications or due to conflict in contract documents. Cost and time overrun are the two main effects being noted for change orders; the disputes between parties and degradation of labor productivity are a major concern. The results also assure that the current situation of change order management in the West Bank needs to be improved; change orders can be minimized if proper planning took place before works start on site, adequate time and budget allocation, clear scope, close coordination and communication all of the times specially during the design stage.
Sixth International Conference on Industrial Engineering and Operations Management Kuala Lumpur, Malaysia