THE STUDY OF FACTORS THAT CAUSE CHANGES IN WORK AFFECTING REAL ESTATE DEVELOPMENT COSTS : CASE STUDY OF HIGH RISE BUILDING CONSTRUCTION

Abstract

Currently, there is a high competition in the real estate development business. Entrepreneurs must consider the important thing is the cost, which is the cost of real estate development is divided into 3 main groups which are land cost, construction cost, project development cost. The development of many real estate projects found that the change in work caused the construction budget to exceed the limit which caused the company's profits to be affected. This research examined the factors which led to change orders and affected construction costs of high-rise condominiums. After that, guidelines for improvement of work processes proposed to reduce the effects. The researcher compiled data on 24 condominium projects and analyzed for factors that cause changes in real estate development costs. The results of the study found that change orders during the construction have impacts on the total costs of 24 projects at an average of 2.9% of the total project values. Next, the factors of the completeness of the model, the material, the purchasing materials themselves and the management of construction projects were the main factors that led to the most change orders respectively. Finally, the researcher proposed risk management guidelines to reduce the impact of the project change