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Capturing rework costs in projects

Capturing rework costs in projects 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Capturing rework costs in projects

Peter E.D Love; Amrik S. Sohal
Managerial Auditing Journal , Volume 18 (4): 11 – Jun 1, 2003
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References (28)

Publisher
Emerald Publishing
Copyright
Copyright © 2003 MCB UP Ltd. All rights reserved.
ISSN
0268-6902
DOI
10.1108/02686900310474343
Publisher site
See Article on Publisher Site

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.

Journal

Managerial Auditing Journal – Emerald Publishing

Published: Jun 1, 2003

Keywords: Cost of quality; Cost reduction; Contracts; Quality management

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