In order to understand the value of a shorter construction
period, it is necessary to conduct a present value analysis
of future costs associated with longer construction
periods. While it is relatively trivial to estimate the
costs relating to labor, capital and material of a longer
project, assigning a value to the added cost of built-in
obsolescence is much harder. Built-in obsolescence itself
is a knife with two edges. The elimination of change orders
would probably result in an increase in short term re
conversion and upgrade of equipment; conversely, it has
been shown that there are significant benefits that can be
attained by shorter construction times without expensive,
time consuming change orders.