INDOT Project Change Orders: Root Causes and Recommendations
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2024-03-01
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Corporate Contributors:Indiana Department of Transportation ; United States. Department of Transportation. Federal Highway Administration ; United States. Department of Transportation. University Transportation Centers (UTC) Program ; United States. Department of Transportation. Office of the Assistant Secretary for Research and Technology
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Edition:Final Report
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Abstract:This study analyzed the historical trends in change orders (COs) associated with the Indiana Department of Transportation (INDOT) highway contracts. It also investigated correlations between COs and base factors (district, project type, contract type, award amount, geographical area (rural vs. urban)), and sought to understand the effect of the root causes but not to predict CO based on root causes. Unlike the base factors, the root causes are unknown prior to construction. The study developed models that forecasted CO characteristics—CO likelihood, CO frequency (count), and CO severity (magnitude) and CO impacts (cost overrun and schedule delay). To address these research questions, the study used INDOT’s 2010–2020 highway contract data involving approximately 5,000 contracts worth just over $10B. The CO trends and patterns (including root causes) were analyzed for five project types at the six highway administrative districts in Indiana. The study identified the base factors that generally have higher propensity to experience more frequent and severe COs and analyzed CO impacts on cost and schedule overruns.
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