Abstract In construction, rework (redoing previously completed work) has a considerable impact on pro‐ject performance. As a result, construction managers often avoid rework on problematic tasks by modifying the design and specification of downstream tasks (“change”). Such a managerial action, however, can disturb the construction sequence by triggering non‐value‐adding change iterations among construction processes, which often contributes to unanticipated schedule delays and cost overruns. In order to address this challenging issue, different characteristics and behavior patterns of construction changes are identified, and compared to those of construction rework. Change impact on project performance is analyzed according to change characteristics, and to discovery status and time. All research findings are then incorporated into a cohesive dynamic project model. An application example of the project model demonstrates how model‐based change management can enhance project performance in a real‐world setting by providing effective management plans and policy guidelines. Finally, it is concluded that the model‐based approach can be more effective, when combined with other managerial efforts such as reducing the process time and increasing the level of coordination among project functions. Copyright © 2003 John Wiley & Sons, Ltd.
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