ANALYSIS OF CONTRACT CHANGE ORDER (CCO) COSTS IN BUILDING CONSTRUCTION PROJECTS

Abstract

In every project implementation, one of the things that often occurs is change orders, namely changes to work that occur after the contract is signed by the work owner and implementing contractor. Most change orders occur due to the desire to change the design or related to budget adjustments by the work owner. The change order proposed by the contractor was due to differences between the design plan and the bill of quantities, the design lacked detail, the design did not suit field conditions, changes in implementation methods because the design was difficult to carry out, and difficulties in mobilizing materials according to technical specifications. Change orders that are not handled properly can potentially cause additional costs, additional time and decreased contractor performance. To minimize change orders, change order correlation analysis can be carried out using original data, with the parameters change order ratio (COR), change order ratio in addition (CORA) and change order ratio in subtraction (CORS). The data used in this study uses six original change order contract data on building construction projects which have initial contract data and cost data after the change order occurs. The results of COR, CORA, and CORS calculations are analyzed and described according to project conditions This study produced three conclusions, the average Index Change Order Ratio (COR) for the six research study object projects was 26%. This means that the 6 study object projects experienced a proportion change of 26% from the original contract value. The average Change Order Ratio in Addition (CORA) index for the six research study object projects is 16%. This means that of the 6 study object projects experiencing change orders, 16% were due to additional work from the original contract value. The average Change Order Ratio in Subtraction (CORS) index for the six research study object projects is 10%. This means that of the 6 research study object projects that experienced change orders, 10% were due to the work being less than the original contract value.