EFFECT OF DESIGN CHANGE ON PROJECT DELIVERY TO TIME AND BUDGET AND SUGGESTED WAYS OF AVOIDING OR MINIMISING CHANGE AND ITS EFFECT

Introduction

Budget?of a project is very important in terms of its delivery as well as in terms of financial implications. Keeping?budget under control is very important for all stakeholders associated with the?project throughout the?project life. Budget of a project is estimated?based on inputs available from pre-construction information, design studies and inputs after contractor are mobilised. However, there are several circumstances where budget goes out of control due to?wrong design inputs and inaccurate design management including improper risk management. This not only increase the delivery period but also effect budget which is linked to taxpayers’ money.?Proper design studies prior to release of tender by Client along with correct Geotechnical Baseline Report with all risks identified should be a part of Tender package released by Client. Also, procurement of experienced Designer along with Early Involvement of Contractor benefits a lot.

Reasons for out of budget & delivery period (associated with Design Changes)

Main reasons associated that are linked to Preliminary Design Studies and their further changes, based on my past experience,

?????Lack of Preconstruction information in terms of Topography Survey, Geological survey, Hydrological Survey , Cost analysis, Risk Assessment?records – Basic input parameters not available for Design which increases the chances of change in design in future

?????No proper Design Studies carried out by Client prior to award of project – All risks associated with the project not identified and post award all risks increases the cost and time of delivery due to extensive studies to be carried further. This is a part of design changes during execution.

?????Mismatch in all basic data after award of project – Designer’s all basic assumptions go wrong and chances of change in design occurs.

?????Risk associated with lower side ground information’s not accepted by Client – Question comes how contractor or designer tackle the risk within the project budget within their own limits

?????In-experienced Designer on board based on Least Cost Tender selection – Low cost attracts poor designer to be onboard and producing efficient design on time, so changes go on repeating and Principal Designer can’t approve

?????Designer past credentials not checked properly – This is very important in selection of an efficient designer who has handled same type of job in past.

?????Designer design not feasible in terms of construction and cost benefits – Change proposal might arrive from Contractor and Client

?????Approvals on designs carried by Contractors in Design & Build?Contract not provided in time which increases the time for execution by contractor and associated with idle costs of machineries involved.

?????Quality Assurance Process not followed in Design to minimise errors

?Impact of Design Changes to time & cost

Following are the main impacts to the project delivery & project schedule due to design changes in the project,

?????Initial Execution Schedule and Design Deliverables Schedule would not be interlinked which force the project to be executed a later date if a Design & Build Contract is in place.

?????Due to changes in design “Good for Construction” design are not available, Contractor procurement in terms of materials, labour, equipment is not on critical path. Contractor would count on its idle charges which adds to project budget.

?????Design not to the mark in terms of build, economy, feasibility force the designer to change the full design concept during evaluation by Contractor. This brings a chance to increase the design period and impact to project schedule.

?????Improper design can procure wrong materials and low-capacity equipment which can impact the project cost & deliverable time.

?????Improper risks management not done during design can attract more risks during execution and increase the possibilities of repeated design to cater the risks. This has an effect on time & cost of the project.

?????Repeated design changes would make the designer to feel depressed due to time spent and question would come on his efficiency which impacts the quality of deliverables. This has an impact on project schedule and budget considered.

?????Bill of Quantities of individual materials changes compared to original estimation

?????Project Cash Flow Statement is on negative side as no billing is raised by Contractor.

?Ways to Mitigate

?????Experienced Designer on board to take care of all possible changes during project execution phase.

?????Design team credentials to be validated based on experience of same value & risk associated projects in past. Previous client credentials to be verified before bringing on board.

?????Proper Geotechnical Baseline Report highlighting all ground associated risks to be available with Client

?????All information’s related to topography, utilities, geology, local bodies to be interacted should be updated so that time wastage can be minimised

?????Client should be in position to share all project associated risks and collaborative approach should work between Client, Designer & Contractor.

?????Design approvals process should be simplified and streamlined. This would save time on repeating the work.

?????Quality checks on design should be as per QAP to minimise errors. A dedicated Proof Checking team to be on board and Design Check Certificate to be issued along with each design.

?????Early mobilisation of contractor saves time on construction planning and provides inputs to designer. This way repetition on design works can be avoided.

?????Designer to be based at project site throughout the project execution life to minimise daily changes suggested from execution team. Also, designer inputs to be taken at all stages of construction.

?????Any changes raised by execution team during execution period to be validated by designer in terms of its safety, buildability, changes can occur prior to design. This would reduce the time of any fresh design designer intends to take which has an impact on cost & time to the project.

?????A proper risk assessment in terms of unavoidable risks to be identified during design stage and notified by separate risk assessment document. Risks that couldn’t be mitigated during design to be notified in drawings available in site.

Conclusion

For the sake of project to save time & keep project within the budget estimated a collaborative process of working should take place between Client, Designer, Contractor and other Stakeholders. Each and every one inputs are important to the execution and controlling risks in project. As Design is the basis and backbone of the project and work to be carried out, it should be full proof from designer side as well it should be accepted by Client with minimum changes proposed. A proper study prior to award of project should be undertaken by Client for the designer to identify the available information associated with the project. Client should also understand the design provided and whether all risks are covered within the same. Delays in approvals not only force the design period to be extended also it has an impact to the project Master Schedule & Budget carried out.

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