Change Management is all about management of a Change. Change here means a change in design, leading to a change of drawings and impacting time (in execution) and budget. Other changes like change of Contractor has been dealt with in Contracts management. Change of products midcourse of project execution will continue to be considered as a change of Design.
So, in a larger context, Design here means Design as in drawings, specifications of work, method statements, change of products & brands, the introduction of substitutions, change of forms and substances used in execution etc. When a piece of work is designed, drawing issued, Contract is awarded with detailing of works, technical specifications and method statement, it is construed that the work scope is defined and concluded. Any change in the above will be considered as Change from Change Management point of view.
Why does change arise? One of the most notable reason is a change introduced by the Developer to meet a client requirement emerging in the midway of project execution. The other notable reasons are;
- Site constraints
- Non-availability of a product/material
- Non-performance of a product/material
- The requirement of acceleration of Schedule
- The poor performance of vendors
- Mistakes in Design & coordinated drawings
- Outcome of RFIs
- Incomplete design data in GFCs
- The exorbitant cost increase in certain products and materials
- Failure of vendor-based design/shop drawings
- Tenant specific requirements
So, is change bad? Any change will lead to some impact on the Schedule and cost. While some changes generate additional revenue by way of client attraction, some will save cost. It would undoubtedly impact the overall carrying cost and, in some instances, additional cost and delays in Schedule due to the introduction of changes. Strengthening of slabs to accommodate client requirements in Aquila Tower A or introducing slipform to accelerate the works in Centaurus are classic examples of Changes. So, change per se is not bad. What is terrible is deciding on change without properly analysing its impact on cost and budget.
Rule 7.19
(Rule 7.19)The following process shall be followed for evaluation and approval of Change management
- For Top-Down Change Management initiation, during the course of project execution, the management (Director-Operations) can initiate a request to the PMO for possible change detailing the requirement.
- Director PMO shall initiate an exercise of assessing the change concerning cost and time by using the QS team, TISS Team, CDD team and other functional teams as may be required.
- Similarly, for Bottom-Up Change Management initiation, the GM office for reasons mentioned in the earlier section can initiate a change request, to the Director (PMO) with complete background and reasoning. Kindly follow Project Manager Instruction Flowchart enclosed herewith as Appendix 22.
- The PMO shall oversee the above process and present their findings to Group CEO and Director Operations for approval.
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The assessment note shall fall apart from other shall include the following;
- Details of the change
- Reasons for the change
- Likely impact of the change on various aspects of project execution
- The overall impact on time/Schedule
- The overall impact on the budget
- How to implement the change – steps /actions/responsibilities
- Timeline of implementation of change
- The person responsible for implementations
- Confirmation that the stakeholders are aligned for the change and the timeline
- Final recommendations
- Once the same is approved with or without modifications, the same shall be formally communicated to all stakeholders by the Director PMO.
- Should the change require any amendment to contract, contract sum, scope, EOT, and EOC etc. suitable VO shall be issued by the GM.
- The Schedule shall be amended by introducing a delay report in ERP.
- The BOQs shall be amended suitably in the ERP.
- Should the change require the issue of new Contract or amendment to existing Contract, the same shall be done following the process of issue of new Contract or amendment to contract as the case may be