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Controlling capital costs and cost overruns due to construction field change orders (FCOs) is essential for the electric power industry to provide affordable energy services. Conversion from overhead to underground systems due to security and climate change factors will increase the risk of FCOs due to site conditions. The failure in collaboration by front-end planning (FEP) teams can increase risk of FCOs due to missing scopes, errors in design, lack of existing field condition evaluation, constraints on the project schedule, or unexpected field conditions, among other causes. This study involved development of a quality control process that enables members of the FEP team to vote their confidence levels about risk control of FCOs before proceeding to final design. The proposed process utilized Analytical Hierarchy Process (AHP) methodologies to distribute the weights of stakeholder votes based on responsibilities for each category of FCOs to obtain an integrated metric of FEP team confidence. Data from an operational electric power utility was used to provide a case scenario approach and to illustrate the method. Three actual projects were analyzed to assess how well the process would have worked for them. The novelty of the proposed model is to enhance the effectiveness of collaborative working relationships across teams during the FEP process and to provide a quality control metric to capture risk of FCOs in the early phase to minimize cost overruns in the project execution phase. [ABSTRACT FROM AUTHOR]

The electric power industry provides most of the energy for global commerce, and controlling its construction costs is important to provide affordable energy. Controlling original contract costs and any added costs due to change orders requires effective planning and design of projects. While cost overruns due to change orders occur in other industries, the electric power utility industry faces technical complexity, poor understanding of field conditions, lack of jobsite visits, and poor collaboration among stakeholders during design and planning. Although published data exist for costs of change orders in other industries, almost none are available for the electric power sector. To mitigate these problems, project managers must understand these risks, provide better cost forecasts, and take other measures to avoid change orders. Using a descriptive statistical analysis of the project database of an electric utility company, this study addresses the data gap by analyzing the magnitude, frequency, and causes of field change orders of both overhead and underground electrical construction. The results identified nine causes of field change orders (FCOs) during construction. The percentage increases in the electrical construction contract costs appear to be higher than in other industries, which is an alarming finding considering the tendency to bury transmission lines due to fire hazards. The result showed that FCOs with added scopes occurred more frequently in underground projects than in overhead projects. The analysis indicated that most causes of field change orders could be managed during planning and design and through the construction phase. The findings of this study can be used by electric utilities when they convert from overhead to underground systems due to security and climate change factors. [ABSTRACT FROM AUTHOR]