Impact of Change Orders on Decreasing Labor Productivity in Road Construction Projects (Approach using Structural Equation Modeling)
DOI:
https://doi.org/10.24425/mper.2024.153114Abstract
Change order is the main factor of labor productivity decline in small scale electrical projects in the United States due to presence variables. Preliminary research on labor productivity in Malaysian infrastructure projects with six latent variables using SEM has been conducted on small projects, such as electricity and infrastructure. Therefore, this research aimed to determine the impact of change orders on large and small scale projects of labor productivity in Indonesia. Data were collected through interviews and questionnaires distribution with a return rate of 700 respondents. The collected data were processed using factor analysis and SEM. The result showed that the impact of change orders on the decline in labor productivity in Indonesia led to four latent variables with 15 indicators.References
Abdul Nabi, M., & El-adaway, I.H. (2021). Understanding the Key Risks Affecting Cost and Schedule Performance of Modular Construction Projects. Journal of Management in Engineering, 37(4), 1–14. DOI: 10.1061/(asce)me.1943-5479.0000917
Al-Kofahi, Z.G., Mahdavian, A., & Oloufa, A. (2022a). A dynamic modelling of labor productivity impacts arising from change orders in road projects. In Canadian Journal of Civil Engineering (Vol. 49, Issue 2). DOI: 10.1139/cjce-2020-0456
Al-Kofahi, Z.G., Mahdavian, A., & Oloufa, A. (2022b). System dynamics modeling approach to quantify change orders impact on labor productivity 1: principles and model development comparative study. International Journal of Construction Management, 22(7), 1355–1366. DOI: 10.1080/15623599.2020.1711494
Ali, S., Yan, Q., Irfan, M., & Chen, Z. (2022). Evaluating Barriers on Biogas Technology Adoption in China: The Moderating Role of Awareness and Technology Understanding. 10(July), 1–16. DOI: 10.3389/fenvs.2022.887084
Alshihri, S., & Al-gahtani, K. (2022). Risk Factors That Lead to Time and Cost Overruns of Building.
Alzraiee, H. (2022). Quantifying labour impact cost due to change orders. International Journal of Construction Management, 24(4), 464–475. DOI: 10.1080/15623599.2022.2123631
Assaad, R.H., Ahmed, M.O., El-adaway, I.H., & Shrestha, P.P. (2022). Management of Change Orders in Infrastructure Transportation Projects. Practice Periodical on Structural Design and Construction, 27(1). DOI: 10.1061/(asce)sc.1943-5576.0000640
Bröchner, J., & Badenfelt, U. (2011). Changes and change management in construction and IT projects. Automation in Construction, 20(7), 767–775. DOI: 10.1016/j.autcon.2011.01.001
Chin, W.W. (1998). The partial least squares approach to structural equation modeling. Modern Methods for Business Research, 295(2), 295–336.
Dai, J., Goodrum, P.M., Maloney, W.F., & Srinivasan, C. (2009). Latent Structures of the Factors Affecting Construction Labor Productivity. Journal of Construction Engineering and Management, 135(5), 397–406. DOI: 10.1061/(asce)0733-9364(2009)135:5(397)
Durdyev S, Ismail S,A.B.N. (2013). Construction productivity in Turkmenistan: survey of the constraining factors. Int. J. E-Educ. e-Bus e-Manage e-Learn., 3, 18–23.
Durdyev, S., & Ismail, S. (2016). On-site construction productivity in Malaysian infrastructure projects. Structural Survey, 34(4–5), 446–462. DOI: 10.1108/SS-12-2015-0058
Durdyev, S., Ismail, S., & Bakar, N.A. (2013). Construction Productivity in Turkmenistan: Survey of the Constraining Factors. International Journal of EEducation, e-Business, e-Management and e-Learning, 3(1). DOI: 10.7763/ijeeee.2013.v3.186
Durdyev, S., Ismail, S., & Kandymov, N. (2018). Structural Equation Model of the Factors Affecting Construction Labor Productivity. Journal of Construction Engineering and Management, 144(4). DOI: 10.1061/(asce)co.1943-7862.0001452
Durdyev, S., & Mbachu, J. (2011). On-site labour productivity of New Zealand construction industry: Key constraints and improvement measures. Australasian Journal of Construction Economics and Building, 11(3), 18–33. DOI: 10.5130/ajceb.v11i3.2120
Durdyev, S., & Mbachu, J. (2018). Key constraints to labour productivity in residential building projects: evidence from Cambodia. International Journal of Construction Management, 18(5), 385–393. DOI: 10.1080/15623599.2017.1326301
Fisk, E., & Reynolds, W.D. (2014). Construction Project Management (X th). Pearson.
Ghoddousi, P., & Hosseini, M. R. (2012). A survey of the factors affecting the productivity of construction projects in Iran. Technological and Economic Development of Economy, 18(1), 99–116. DOI: 10.3846/20294913.2012.661203
Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program SmartPLS 3.0 untuk penelitian empiris. Badan Penerbit Universitas Diponegoro.
Hamza, M., Shahid, S., Bin Hainin, M.R., & Nashwan, M.S. (2022). Construction labour productivity: review of factors identified. International Journal of Construction Management, 22(3), 413–425. DOI: 10.1080/15623599.2019.1627503
Hanna, A.S., Asce, M., Taylor, C.S., & Sullivan, K.T. (2005). Impact of Extended Overtime on Construction Labor Productivity. 131(June), 734–739. DOI: 10.1061/(ASCE)0733-9364(2005)131
Hanna, A.S., Chang, C.-K., Sullivan, K.T., & Lackney, J.A. (2008). Impact of Shift Work on Labor Productivity for Labor Intensive Contractor. Journal of Construction Engineering and Management, 134(3), 197–204. DOI: 10.1061/(asce)0733-9364(2008)134:3(197)
Hanna, A.S., & Gunduz, M. (2004). Impact of Change Orders on Small Labor-Intensive Projects. Journal of Construction Engineering and Management, 130(5), 726–733. DOI: 10.1061/(asce)0733-9364(2004)130:5(726)
Hanna, A.S., & Iskandar, K.A. (2017). Quantifying and Modeling the Cumulative Impact of Change Orders. Journal of Construction Engineering and Management, 143(10), 1–10. DOI: 10.1061/(asce)co.1943-7862.0001385
Hanna, A.S., Russell, J.S., Nordheim, E.V, Bruggink, M.J., & Member, A. (1999). Impact of change orders on labor efficiency for electrical construction. Journal of Construction Engineering and Management, 125(4), 224–232.
Horner R.M.W., Talhouni B.T., Thomas H.R. (1989). Preliminary results of major labour productivity monitoring programme. In Proceedings of the 3rd Yugoslavian symposium on construction management, Cavtat, pp. 18–28.
Ibbs, W., Nguyen, L.D., & Lee, S. (2007). Quantified impacts of project change. Journal of Professional Issues in Engineering Education and Practice, 133(1), 45–52. DOI: 10.1061/(ASCE)1052-3928(2007)133:1(45)
Jang, H., Kim, K., Kim, J., & Kim, J. (2011). Labour productivity model for reinforced concrete construction projects. Construction Innovation, 11(1), 92–113. DOI: 10.1108/14714171111104655
Jarkas, A.M., & Bitar, C.G. (2012). Factors Affecting Construction Labor Productivity in Kuwait. Journal of Construction Engineering and Management, 138(7), 811–820. DOI: 10.1061/(asce)co.1943-7862.0000501
Jones, R.M. (2001). Lost Productivity: Claims for the Cumulative Impact of Multiple Change Orders. Pub. Cont. LJ, 31.
Kamal, A., Abas, M., Khan, D., & Azfar, R.W. (2022). Risk factors influencing the building projects in Pakistan: from perspective of contractors, clients and consultants. International Journal of Construction Management, 22(6), 1141–1157. DOI: 10.1080/15623599.2019.1683693
Kazaz, A., Manisali, E., & Ulubeyli, S. (2008). Effect of basic motivational factors on construction workforce productivity in Turkey. Journal of Civil Engineering and Management, 14(2), 95–106. DOI: 10.3846/1392- 3730.2008.14.4
Kermanshachi, S., Thakur, R., & Govan, P. (2018). Discovering the Impact of Late Change Orders and Rework on Labor Productivity: A Water Treatment Case Study Analysis Using System Dynamics Modeling Sharareh. Construction Research Congress 2018 Downloaded, 691–701.
Khalafallah, A., & Shalaby, Y. (2019). Change Orders: Automating Comparative Data Analysis and Controlling Impacts in Public Projects. Journal of Construction Engineering and Management, 145(11), 04019064. DOI: 10.1061/(asce)co.1943-7862.0001700
Lee, M.-J., Hanna, A.S., & Loh, W.-Y. (2004). Decision Tree Approach to Classify and Quantify Cumulative Impact of Change Orders on Productivity. Journal of Computing in Civil Engineering, 18(2), 132–144. DOI: 10.1061/(asce)0887-3801(2004)18:2(132)
Moselhi, O., Assem, I., & El-Rayes, K. (2005). Change Orders Impact on Labor Productivity. Journal of Construction Engineering and Management, 131(3), 354– 359. DOI: 10.1061/(asce)0733-9364(2005)131:3(354)
Muhwezi, L., Acai, J., & Otim, G. (2014). An assessment of the factors causing delays on building construction projects in Uganda. Construction Engineering and Management, 3(1), 13–23. DOI: 10.5923/j.ijcem.2014 0301.02
Olomolaiye, P.O., Wahab, K.A., & Price, A.D.F. (1987). Problems influencing craftsmen’s productivity in Nigeria. Building and Environment, 22(4), 317–323. DOI: 10.1016/0360-1323(87)90024-2
Page, I. (2010). Construction industry productivity. BRANZ.
Qi, K., Owusu, E.K., Francis Siu, M.F., & Albert Chan, P.C. (2024). A systematic review of construction labor productivity studies: Clustering and analysis through hierarchical latent dirichlet allocation. Ain Shams Engineering Journal, 15(9). DOI: 10.1016/ j.asej.2024.102896
Rivas, R.A., Borcherding, J.D., González, V., & Alarcón, L.F. (2011). Analysis of Factors Influencing Productivity Using Craftsmen Questionnaires: Case Study in a Chilean Construction Company. Journal of Construction Engineering and Management, 137(4), 312–320. DOI: 10.1061/(asce)co.1943-7862.0000274
Rovine, M.J., & Molenaar, P.C.M. (2000). A structural modeling approach to a multilevel random coefficients model. Multivariate Behavioral Research, 35(1), 51–88
Sarstedt, M., Hair, J.F., Pick, M., Liengaard, B.D., Radomir, L., & Ringle, C.M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology and Marketing, 39(5), 1035–1064. DOI: 10.1002/mar.21640
Singh, S.K., Del Giudice, M., Chiappetta Jabbour, C.J., Latan, H., & Sohal, A.S. (2022). Stakeholder pressure, green innovation, and performance in small and medium-sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31(1), 500–514. DOI: 10.1002/bse.2906
Tariq, J., & Shujaa Safdar Gardezi, S. (2022). Study the delays and conflicts for construction projects and their mutual relationship: A review. Ain Shams Engineering Journal, 14(1), 101815. DOI: 10.1016/j.asej.2022.101815
Vacanas, Y., & Danezis, C. (2021). Determination of Effective Delay-Avoidance Practices in Construction Projects. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 13(1), 04520039. DOI: 10.1061/(asce)la.1943-4170.0000438
Waty, M., & Sulistio, H. (2022). Impact of Change Orders on Road Construction Project: Consultans’ Perspective. Journal of Applied Engineering Science, 20(3), 736–744. DOI: 10.5937/jaes0-35894
Yi, W., & Chan, A.P.C. (2014). Critical Review of Labor Productivity Research in Construction Journals. Journal of Management in Engineering, 30(2), 214
