Impact of Change Orders on Decreasing Labor Productivity in Road Construction Projects (Approach using Structural Equation Modeling)

Abstract

Change order is the main factor of labor productivity decline in small scale electrical projects in the United States due to presence variables. Preliminary research on labor productivity in Malaysian infrastructure projects with six latent variables using SEM has been conducted on small projects, such as electricity and infrastructure. Therefore, this research aimed to determine the impact of change orders on large and small scale projects of labor productivity in Indonesia. Data were collected through interviews and questionnaires distribution with a return rate of 700 respondents. The collected data were processed using factor analysis and SEM. The result showed that the impact of change orders on the decline in labor productivity in Indonesia led to four latent variables with 15 indicators.