SCOPE CHANGE

Scope Change

Scope Change

Introduction

Changes in project scope, be they controlled or uncontrolled, are common in the construction sector. It is not uncommon for some construction companies to bid construction works at very low or even zero margin. These companies will typically hope to make profit through changes and variations. The purpose of this research report is to evaluate the impact of scope change on construction projects.

Discussion

Generally, project managers are under pressure to meet deadlines and satisfy customers under conditions of uncertainty, without sacrificing cost or quality. Nevertheless, projects are hardly ever completed within their original forecasted timeframe. We begin by defining and clarifying some concepts (Bergeron, 2006).

The scope of a project

According to the Project Management Body of Knowledge (PMBOK Guide), the scope of a project “should include all the work required, and only the work required, for successful completion.” (Project Management Institute, 2000:51). Scope refers to the range of action that should be performed in order to execute a specific project, and it is usually presented via a Work Breakdown Structure (WBS). The WBS divides the overall project into sub-elements, known as Work Packages (WP), which are associated with the different tasks of the project. All the same, a project can be structured in various ways, depending upon factors as its duration, its work content, levels of uncertainty, organizational structure and more (Shtub, Bard & Globerson, 1994).

Scope change

Scope change is any modification to the agreed upon project scope, as defined by the approved WBS (Project Management Institute, 2000:63). Scope changes are inherent in the nature of projects; and appear due to reasons such as: (1) initial wrong diagnosis of the needs, (2) discovery of unforeseen problems, and (3) additional understanding of the circumstances gained (Ertel, 2000). Indeed, when the scope of a project is not properly defined, scope changes are more likely to be introduced. There is some evidence that scope changes have a significant impact on the cost of projects. Chick (1999) showed that the later a change occurs on a project, the more effect it will have on its cost. The cost of a scope change is correlated to its nature, e.g., adding a reactor costs 30% more than adding a pump. However, to change a pump, once installed, costs as much as double the price of changing a reactor(Brynjolfsson, 2007). Though Chick mentioned a possible impact of scope changes on project's schedule, a thorough investigation of the relationship between scope changes and project duration has not yet been conducted.

In almost any successful project management endeavour it is conceivable that some change in scope might be necessary.

The goals of the Scope Change Management Plan are to:

1. Manage the handling of gaps between institution processes and procedures and the baseline system being implemented.

2. Align efforts and institution resources to meet institutional needs.

3. Help limit modifications to the baseline system.

4. Allocate spending on 3rd party auxiliary systems.

5. Encourage process and policy change before system modifications.

6. Adhere to contractual obligations for change orders with ...