This paper introduces a method to capture
labor performance loss due to project scope changes. It addresses the
impact of scope change on the direct labor performance during the
construction phase of projects. Generally, such indirect effect of
changes is difficult to capture when estimating the cost of the added
scope and poses challenges to the project management team in convincing
project owners of the legitimacy of such added cost. Therefore,
contractors end up absorbing this cost or filing claims to recover
financial losses. The procedures for calculating the performance factor
loss due to changes involves integrating baseline schedule, earned
value management system, measured mile analysis, and project actual
data. The developed method was applied to a construction project in
northern Alberta. The site data pertinent to electrical trades was
collected over a period of nine months to calculate the difference
between labor performance indices of original scope and changes. The
calculations were performed cumulatively to account for the ripple
effect of the introduced scope changes. Analysis of the results
generated reveals a negative correlation between the intensity of
changes and labor performance. Changes that are not properly documented
and managed can severely affect the project schedule and its total cost.
Therefore, the authors recommend proactive management procedure to
limit the adverse primary and secondary effects of project scope
changes.