Change order causes and control in the oil and gas construction projects

Abstract

Despite of many articles and many discussions in practice and academic literature, there is limited information about change order in the Oil and Gas Projects .This study means to evaluate the change order causes in the Oil and Gas Projects. Study relatively will investigate proper methods and strategies to treat this problem to prevent and mitigate its consequences. Besides, proceeding on evaluating the status of the existing change management system and change order clause in the oil and gas construction contracts of Iran and Malaysia. Data gathering carried out by doing literature review, applying a questionnaire survey and making related interviews through contractor, client and consultants company’s experts. According to the study three main categories of causes have been identified namely 1) design related causes 2) construction related causes and 3) poor administration related causes. Also, few change controlling strategies have been determined including detailing in design, clear project brief, contractor efficiency and keeping systematic site records.