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Auditing the indirect consequences of rework in construction: a case based approach

Auditing the indirect consequences of rework in construction: a case based approach There is little known about the indirect consequences of rework in construction projects, especially the financial costs. Therefore, this paper uses examples from a case study to demonstrate the potential indirect consequences and costs that are associated with undertaking rework in building construction projects. A novel taxonomy for categorising the indirect consequences at an individual level, organisational level and project level is presented. Based on the findings from examples derived from the case study, it is suggested that the incidence of rework can have a multiplier effect of up to six times the actual (direct) cost of rectification. To reduce these costs it is concluded that design and construction organisations must improve their quality management systems by including a quality system for continuously auditing, analysing and presenting direct as well as indirect rework costs. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Auditing the indirect consequences of rework in construction: a case based approach

Peter E.D. Love
Managerial Auditing Journal , Volume 17 (3): 9 – Apr 1, 2002
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References (26)

Publisher
Emerald Publishing
Copyright
Copyright © 2002 MCB UP Ltd. All rights reserved.
ISSN
0268-6902
DOI
10.1108/02686900210419921
Publisher site
See Article on Publisher Site

Abstract

There is little known about the indirect consequences of rework in construction projects, especially the financial costs. Therefore, this paper uses examples from a case study to demonstrate the potential indirect consequences and costs that are associated with undertaking rework in building construction projects. A novel taxonomy for categorising the indirect consequences at an individual level, organisational level and project level is presented. Based on the findings from examples derived from the case study, it is suggested that the incidence of rework can have a multiplier effect of up to six times the actual (direct) cost of rectification. To reduce these costs it is concluded that design and construction organisations must improve their quality management systems by including a quality system for continuously auditing, analysing and presenting direct as well as indirect rework costs.

Journal

Managerial Auditing Journal – Emerald Publishing

Published: Apr 1, 2002

Keywords: Indirect costs; Contract; Defective premises

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