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IPMA ITALY Journal of Applied Project Management
                                     Volume 1 no. 2 (July 2015)

The challenges coming from a change        the best scenario, few corrections are
order can be summarized into two           requested to be implemented in the
groups:                                    early stage of the project, giving rise to
                                           a change order of limited entity.
    a) Pertinent to the new                Less frequently, some orders are being
         requirements themselves,          issued based on a preliminary release
                                           of the project requisition, which then
    b) Brought by the context of the       undergoes an overall revision at a very
         change order.                     late stage. Cases like this one require a
                                           significant effort to the project
With the first group, we refer to the      manager and his team. With the
nature of the change and to the            project clock started, contractual
technical ability required to implement    activities and offer preparation are to
it. There are variations easily            proceed in parallel.
manageable, like a request to              In the worst case, to be compliant with
increment the quantity of an item up       the new requirements the project
to a number not impacting the              should restart, overriding in full or in part
organization capacity.                     the progress consolidated up to that
Differently, there are changes which       moment. A late request like this,
would demand the organization to           especially in case of a large set of new
have a broader technical knowledge         requirements, may constitute a serious
to evaluate feasibility and impacts. In    issue for a team not sufficiently staffed
those cases, it is up to the project       or for a small business company.
manager and his organization to            Furthermore, in some cases,
evaluate pro and cons in fulfilling the    contractual T&C already regulates the
request.                                   deadlines to submit a quotation and/or
Particularly for those companies which     the mechanism to settle the change
focus on standard products and             order. Such set of rules may facilitate
services, a change order which             the negotiation or it might even add a
requires an unprecedented solution         layer of difficulty to that, leading to
might not be worth the effort to           conflicts and tensions in between the
develop such solution.                     stakeholders.
We can think about the second group
of influencing factors as to all those     2. A real case
elements that, regardless of what
customer is specifically requiring, may    In 2009, one of the most difficult
condition the evaluation of the            challenges ever managed by GE Oil &
request, the agreement on the project      Gas LNG team came from the
impacts and the implementation of the      installation site of an important project
change.                                    located in Papua New Guinea.
As a very first example, we have the       A large equipment, including high
timing with which a change is              technology goods manufactured by
introduced: depending on when a            GE Oil & Gas, had to be shipped and
change is notified, the impacts on the     installed in a mountainous area of this
project may be well different, even if
the request is the same.                                                                         10
New requirements are often originated
by the awareness that the initial
estimations were not entirely correct. In
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