Cost Risk Management for Variation Orders in Road Projects in Iraq

Abstract

This paper aims to develop appropriate solutions for each of the causes for the change orders, which help to manage the cost risk in road projects in Iraq. The literature was reviewed in detail, and the objectives were implemented by using a questionnaire that was distributed to specialists in the public sector to survey all possible causes for exceeding the cost of road projects. As a result, 35 causes were identified for a large number of change orders in road projects and their classification into four axes: design, implementation, financial, and other causes. The results of the questionnaire were analyzed using the relative importance index (RII). As a result, the main causes of the change orders were the variations in design and the quantities of work. The main effect was found to be an increase in the cost of the project. Finally, solutions were collected for each of the factors causing the change order through personal interviews with professionals and consultants.

Keywords

• change order
• variation order
• cost risk management
• road projects