Capturing rework costs in projects

Abstract

Rework has become an endemic feature of the procurement process in construction, which invariably leads to time and cost overruns in projects. Thus, in order to improve the performance of projects it is necessary to identify the causes and costs of rework. The research presented in this paper quantifies the causes, magnitude and costs of rework experienced in two Australian construction projects procured using different contractual arrangements. The causes and costs of rework projects are analyzed and discussed. The case study projects’ rework costs were found to be 3.15 per cent and 2.4 per cent of their contract value. Changes initiated by the client and end‐user, as well as errors and omissions in contract documentation, were found to be the primary causes of rework. Recommends that construction companies and consultant firms, particularly design consultants, implement quality management practices as well as place greater attention on the design development process, to prevent rework emerging during the project’s later stages.

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