<![CDATA[Change Orders (CO) represent a significant challenge in the construction industry, often leading to substantial adjustments in project budgets. COs, encompassing both scope additions and reductions, can result in discrepancies between initial budgets and final project costs, thus affecting project profitability and sustainability. To measure the impact of CO on budgets, this study employs the Change Order Ratio (COR) and its components: CORA (Change Order Ratio in Addition) for budget increases and CORS (Change Order Ratio in Subtraction) for budget reductions. This research analyzes data from 36 construction projects managed by PT XYZ in Indonesia from 2020 to 2024, with aims to (1) identify patterns in budget changes, (2) assess the statistical significance of CORA and CORS on COR, and (3) recommend contingency budgeting strategies. Findings reveal that both CORA and CORS have a significant impact on COR, with average values of 13.32% for CORA and 9.30% for CORS. Based on these findings, a contingency budget of 10-15% of the initial contract value is recommended. This study underscores the importance of effective CO management, particularly in anticipating scope additions, to maintain budget stability and enhance the accuracy of financial planning in construction projects.]]>
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