Understanding the Impact of Change Orders with Dr. Hanna

 

As part of our efforts toward creating a fulfilling partnership, we provide learning opportunities to help you succeed in your industry. With the help of our co-sponsor Viega, our customers gained valuable insights into the magnitude of the impact that change orders have on their project success at our recent comprehensive training session with Dr. Awad Hanna from the University of Wisconsin-Madison.

Change orders, even the most insignificant, can be highly disruptive to the sequence of scheduled activities and are generally more expensive to perform than an equivalent amount of work in the basic contract. In his session, Dr. Hanna discussed the factors involved, methods to quantify cumulative impact and tips for prompt recovery from change orders through topics including:

 

  • Recoverable Cost: Direct costs, overhead costs and impact cost methods to quantify the cumulative impact of change orders
    • Total Cost Method
    • Modified Total Cost
    • Measured Mile Method
    • Hanna Method
  • Factor Approach
    • Overtime
    • Over Manning
    • Second Shift
  • Tips for prompt recovery of change order costs
  • Tracking change order costs by using manpower loading charts

 

Porter Pipe customers were represented by 14 different companies at Dr. Hanna’s session and we were thrilled to be able to provide the resources our customers need to excel. Armed with Dr. Hanna’s knowledge, there’s no doubt our customers have the tools to minimize and manage change orders.

As arguably the leading researcher, practitioner and consultant on construction craft productivity in North America, Dr. Hanna has been in the industry for nearly 25 years, authored more than 100 journal articles and 15 major books on construction-related productivity, with a special emphasis on construction methods, the cumulative impact of change orders and construction risk management.

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