Changes in construction projects , Client /Engineer/ contractor/ External factors, Changes results in claims , Disputes

1. Mohamed Abdalla Hassan Hamed
Msc,MBA,PMP,PQP
Projects Manager
Changes “Variations“ in
Construction Projects .

2. I am more than glad
to be your speaker for
the next 45 minutes

3.  MOHAMED ABDALLA
 Projects Manager, Public Speaker
 MSC,MBA, PMP,PQP
 +971508143450
 pm@ace.ae

4. The construction industry is one of the most
important sectors in United Arab Emirates, So
it is essential to know the ingredients for
success of construction projects in UAE. While
construction project is unique, projects differ
in objectives, size, budget, timeline and
complexity, but we may find some common
features such as changes and risks concerns.

5. In Construction Field
How many projects we completed without changes?

6. Agenda
 What is a Change
 Why change occur
 Causes of change
 How PM should lead the change

7. Change is good or bad ?

8. Changes
Changes in construction projects can be
defined as any additions or deduction to
project objectives or project scope are
considered to be unplanned changes, whether
they have positive or negative impact on the
project parameters ; cost, time or quality

9. Why we Focus on changes ?

10. 1- Client / Engineer / Contractor Direct Change ‘’ Variations’’
2- Constructive Changes ‘’ Variations’’
3- Differing Site Conditions
4- Directed Suspension of Work
5- Constructive Suspension of Work
6- Force Majeure
7- Delays
8- Directed Acceleration
9- Constructive Acceleration
10- Termination for Convenience
11- Termination for Default
The most common reasons of Claims / Disputes

11. Scope
It is the project manager’s duty to balance and
achieve these three often-competing goals.
The Triple Constraint of
Project Management

12. Scope
The Triple Constraint of
Project Management

13. When changes can occur ?
During the
planning

15. Project Lifecycle

16. Project Lifecycle & Cost of change
Change VS Cost

17. Change VS Cost

18. The nature of construction projects is very
complex due to many variables ,Human and
nonhuman factors, as well as construction
project need a long time for execution ,some
of them continue to a several years
Why changes occur ?

19. Just one
more thing
We still needCan
we add
one
more
thing
But we
need this
We still
need
But we need
this too

21. Support or Resist changes ?

22. How to avoid scope creep as a project manager ?

23. 2 3 41
Successful project Manager
How to avoid scope creep as a project manager ?

24. 4
Successful project Manager
How to avoid scope creep as a project manager ?
Say NO if the change is Optional

25. Change
OptionalMandatory
Stakeholder needsNew regulations

26. Causes of changes (Variations)
Client Engineer Contractor External
Factors

27. Causes of changes (Variations)
• inadequate requirements , Funding problems, insufficient project objectives
Client Engineer Contractor External
Factors

28. Causes of changes (Variations)
Errors or missing in the design , conflict among contract documents , Delay in material or shop drawings approval
Client Engineer Contractor
External
Factors

29. Causes of changes (Variations)
Poor procurement plan for long lead items, Financial problems
Client Engineer Contractor
External
Factors

30. Causes of changes (Variations)
Client Engineer Contractor
External
Factors
Changes in Marketplace , Changes in weather conditions

31. How PM Lead a change
No
Change

32. Look at the impact of changes
a) Assess the change.
b) Look for options.
c) Change is approved or rejected.
d) Update the status of the change in the change control
system.
2. Identify changes.
7. Manage stakeholder’s expectations by communicating the change
4. Create change request
3. Look at the impact of the change.
1. Prevent the root cause of change. +
+
+
-
+
+
6. Adjust the project management plan, Project Documents, Baselines.
5. Perform Integrated change control
+
-
Steps of the project changes

33. Change lifecycle
CCB = Change Control Board

35. Change Goals
● Realistic
● Measurable
● Specific
● Time bound
Smart Goals
● Agreed upon

36. Changes results in
 Time Variations. (Extension of Time) (EoT)
 Cost Variation. (Additional Cost)
Extension of time Additional Cost

37. The Flow of Variation resolution
Negotiation DABNegotiation
DAB= Dispute Adjudication Board
See
you
in

38. Typical sequence of Dispute Events envisaged in
Clause 20
DAB: the persons so named in the contract or other persons appointed
under sub-clause (appointment of the dispute adjudication board)

40. A
C
E
B
D
Float
Who own The Float ?

41. 6.5 Develop Schedule
One of the most common Dispute ?
6.5.2.2 Critical Path Method (CPM)
Free
Float
Total
Float
A
B
C
D

42. Client Contractor The project
Who own The Float ?

43. THANK YOU
FOR ATTENDING THE PRESENTATION
Please don't forget to collect your CPD certificate during
the event from the CPD collection area.