A Study of Direct Costs, Indirect Costs, and Change Orders in Warehouse Construction

Abstract

This article examines the factors influencing changes in both direct and indirect costs, as well as analyzes the number and value of change orders in warehouse construction projects with building areas ranging from 7,000 to 20,000 square meters in the eastern region of Thailand. Data were collected from cost reports and interviews with project stakeholders. The study found that the value of change orders impacting the three projects was 11,021,315 THB, 12,412,950 THB, and 20,937,728 THB. The analysis identified key factors affecting cost changes, including material prices, rental fees, labor, unforeseen costs, cost management, and actual work quantities differing from initial estimates. Additionally, the causes of change orders were found to include expansion of usage requirements, incomplete design, legal and safety requirements, contractor management, and cost reduction efforts. The findings from this study can be applied to future planning and cost management of warehouse construction.