Primary Author: Mr Jason M. Dougherty
Co-author(s): Mr Nigel Hughes; Mr James G Zack Jr CFCC
Audience Focus: Intermediate
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: The authors were challenged to research and provide an estimate of the “average cost of rework on construction projects”. Rework in the construction industry is frequent and well known. It is a drain on productivity, profitability and timeliness of project delivery for both contractors and owners. Additionally, the need for rework can have spinoff or downstream impacts for all project stakeholders. The causes of rework are, likewise, very well known: design and construction changes; errors and omissions; project enhancements; operability changes; fabrication changes and errors, etc. While rework is common, the impact has not been thoroughly assessed, studied or discussed. This paper, based on a broad literature review, assesses and identifies the typical cost of rework on a wide range of project types. It shows how the cost of rework is frequently understated and provides an estimate of the true “average cost” of rework. The paper also identifies the average impact of rework on project duration in terms of time as well as unrecoverable extended overheads and the cost of liquidated damages.
Finally, the paper identifies a number of practical methods that can be employed by owners and contractors to substantially reduce both the cost and time impact of rework.
Co-author(s): Mr Nigel Hughes; Mr James G Zack Jr CFCC
Audience Focus: Intermediate
Application Type: Research
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA
Abstract: The authors were challenged to research and provide an estimate of the “average cost of rework on construction projects”. Rework in the construction industry is frequent and well known. It is a drain on productivity, profitability and timeliness of project delivery for both contractors and owners. Additionally, the need for rework can have spinoff or downstream impacts for all project stakeholders. The causes of rework are, likewise, very well known: design and construction changes; errors and omissions; project enhancements; operability changes; fabrication changes and errors, etc. While rework is common, the impact has not been thoroughly assessed, studied or discussed. This paper, based on a broad literature review, assesses and identifies the typical cost of rework on a wide range of project types. It shows how the cost of rework is frequently understated and provides an estimate of the true “average cost” of rework. The paper also identifies the average impact of rework on project duration in terms of time as well as unrecoverable extended overheads and the cost of liquidated damages.
Finally, the paper identifies a number of practical methods that can be employed by owners and contractors to substantially reduce both the cost and time impact of rework.