Influence of Geotechnical Investigation and Subsurface Conditions on Claims, Change Orders, and Overruns (2016) / Chapter Skim
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From page 12... ...
13 chapter three SURVEY RESULTS A three-part survey was administered to 55 agencies, including state transportation agencies for all 50 states, Puerto Rico, and the District of Columbia, as well as the three divisions of the Office of Federal Lands Highway. The complete survey questionnaire is provided in Appendix A, and complete survey results are presented in Appendix B
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14 FIGURE 2 Survey agencies. Response Number Percent My agency experiences relatively few design, construction, and performance problems resulting from subsurface conditions 17 33 My agency experiences a modest number of design, construction, and performance problems resulting from subsurface conditions 32 63 My agency experiences frequent design, construction, and performance problems resulting from subsurface conditions 2 4 51 responses.
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15 As shown in Table 3, minimum or suggested minimum subsurface investigation requirements for all projects are formally specified for most of the responding agencies (44, 86%)
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16 reported maintaining a paper database indicated that the historic records can be accessed when needed; the other three indicated accessing the historical records is difficult. NATURE OF CLAIMS, CHANGE ORDERS, AND COST OVERRUNS Parts Two and Three of the survey contained questions regarding the nature of claims, change orders, and cost overruns, including how problematic they are, how they've changed in the past 10 years, and how they are affected by project delivery mechanism.
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17 of collecting and interpreting quantitative information regarding claims, change orders, and cost overruns was discussed in chapter one; the results from qualitative and quantitative questions are presented respectively in the first two sections. A third section synthesizes the information from both sets of questions to address the extent of claims, change orders, and cost overruns that can be attributed to subsurface conditions.
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18 split between such claims being a recognized problem but not a priority concern and being a recognized problem and a priority concern. None of the respondents indicated claims, change orders, and cost overruns resulting from subsurface conditions are one of his or her agency's most significant problems.
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19 asked to explain the effect. The responses are included with the short answers in Appendix B
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20 TABLE 10 AVERAGE COST PER OCCURRENCE OF CLAIMS, CHANGE ORDERS, AND OVERRUNS All Causes Subsurface Conditions Only Claims $169,000 $120,000 Change Orders $22,000 $74,000 Overruns $279,000 $55,000 TABLE 11 AVERAGE ANNUAL BUDGET FOR NEW CONSTRUCTION FOR ALL AGENCIES PROVIDING ANY RESPONSES TO PART 3 Agency A ve ra ge A nn ua l Co ns tru ct io n B ud ge t Arkansas $526* Eastern Federal Lands $132*
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21 TABLE 13 AVERAGE ANNUAL DATA REGARDING CHANGE ORDERS FROM ALL SOURCES FOR DATA FROM 2009 TO 2013 Agency N um be r A nn ua l C os t A ve ra ge C os t Co st as S ha re o f A ge nc y Co ns tru ct io n Bu dg et To ta l C on tra ct C os ts fo r Pr oje cts w ith C ha ng e O rd er s A ve ra ge C ha ng e O rd er Co st as S ha re o f P ro jec t B ud ge t Arkansas 1,028 $26*
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22 one agency to the next, when considering all causes as well as only those attributed to subsurface conditions. The average values are reported in Table 10.
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23 from all causes and from subsurface conditions are plotted side by side in Figure 10. More agencies have seen no significant change than have observed a change, and the number of agencies that have observed an increase is approximately equal to the number that has observed a decrease.
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24 overruns that can be attributed to subsurface conditions or site characterization practices. The responses are presented in Table 18.
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25 of claims, change orders, and cost overruns; 5% by number and 7% by cost. On the other hand, several measures of the total cost of subsurface conditions indicate that their cost is substantial.
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26 a b c FIGURE 13 Annual cost of (a) claims, (b)
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27 Table 20. Nearly one-quarter of respondents whose agencies had an updated site characterization practice indicated a marginal decrease in the occurrence of claims, change orders, and overruns, and two agencies (11%)
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28 • Change orders attributed to subsurface conditions are significantly more frequent than claims or cost overruns. The same trend was observed among claims, change orders, and cost overruns resulting from all causes.
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