The impacts of change management practices on project change cost performance
YI ZOU1 and SANG-HOON LEE2*
1 2
FMC Technologies Inc., Houston, USA Department of Engineering Technology, University of Houston, 304A Technology Bldg, University of Houston, Houston 77204, USA Received 18 June 2007; accepted 15 January 2008
Change cost is one of the most sensitive aspects of construction project management, but it is also one of the most difficult to control. It has been widely recognized that construction projects that adopt change management practices generally incur lower change costs in comparison with project budgets. The relationship between change management practices and cost performance is investigated. Construction project data for this research are derived from the Construction Industry Institute Benchmarking and Metrics database. Multiple one-way ANOVA and linear regression are performed to investigate the effectiveness of individual change management practices elements and overall change management practices implementation in controlling project change cost, respectively. The data analysis results show that individual change management practices elements have different levels of leverage in helping to control project change cost and that using change management practices is truly helpful in lowering the proportion of change cost in project actual cost. Keywords: Project management, change management, performance improvement.
Introduction
Many researchers have conducted statistical analyses to reveal the correlations between project management best practices and project performance, and they have provided valuable recommendations to the industry about how to improve project performance. Among many project management best practices, change management practice is one of the most important practices (Lee et al., 2004; Zou and Lee, 2006). Further, project change cost performance is one