Causes, Effects, and Mitigations Framework of Contract Change Orders: Lessons Learned from GBK Aquatic Stadium Project

Abstract

Contract change orders (CCOs) are an interesting topic in the discipline of construction contract management. CCOs are changes in construction work or scope that alter the original contract amount and/or completion date. There are several common causes of CCOs, including design changes, scope changes, and force majeures. If not managed carefully, CCOs may result in poor project performance or contract termination. However, no previous qualitative research that has examined the causes and effects of CCOs in Indonesia. The objective of this study was to identify the causes and effects of CCOs from an actual project as a case study. Data was collected using multiple qualitative approaches, including study of literature, site visits, document examination, and semistructured expert interviews. The project examined was a major renovation project in Jakarta, Indonesia, that is, the Gelora Bung Karno (GBK) Aquatic Stadium project. Four expert interviews were conducted in order to achieve the aforementioned objectives. The study revealed six causes and one effect of CCOs occurring in the project. Based on these findings and coupled with a systematic approach this study also provides a framework for minimizing the effects of CCOs. This framework is useful for improving contract management practices and could be applied by other countries experiencing similar challenges.