Effect of change orders on rework in highway projects in Palestine

Purpose This study aims at identifying the main causes of change orders in highway construction projects, determining the factors that affect rework in highway construction projects, examining the relationship between change orders and rework and at developing a predictive model that will determine the impact of change orders on rework in highway construction projects in Palestine. Design/methodology/approach A questionnaire survey was used to identify the main change order causes and rework causes from the perspectives of contractors and consultants. The questionnaire contained 16 causes of change orders and 19 causes of rework which had been identified from the literature reviewed. The study also identifies the impact of change orders on rework based on data comprising 22 highway construction projects implemented in Palestine. Both descriptive and inferential statistics were used in analyzing the data. Findings The study concluded that the five most common causes of change orders can be identified as: change of project scope by owner (additional – enhancement), lack of coordination between construction parties; owner’s financial difficulties, change in materials, and errors and omissions in design. The study has also established that among the various factors that causes rework, non-conformance with specification requirements, scope changes, late design changes, lack of labor experience, lack of labor skills and improper subcontractor selection top the list. Using regression analysis, the results reveal a significant relationship between change orders and rework cost in highway construction projects in Palestine. Practical implications By ranking the various change orders causes and rework causes from the perspectives of consultants and contractors, the study provides a fresh perspective on an old chronic problem in the construction sector. This study has provided evidence on the most significant change orders causes and rework causes in the Palestinian highway construction, as well as the impact of change orders or rework on constructions sites. Finally, although this study is specific to the country of Palestine, its results can be applicable to other developing countries facing similar problems in their public construction sectors. Originality/value The results address the common causes of change orders and reworks in highway construction projects in Palestine. The results also address the relation between change orders and rework cost based on data collected from highway construction projects implemented in the West Bank in Palestine. This study is the first study conducted in the West Bank in Palestine to identify the change orders and reworks causes in highway construction projects.