Identifying key sources of rework affecting construction cost performance

Abstract

Construction projects often experience cost and schedule overruns, and rework is one of the factors that directly contribute to these overruns. Considering that the direct costs caused by rework average 5% of total construction costs, rework must be a significant factor affecting project cost performance in the construction industry. Analyzing the data obtained from 359 construction projects in the Construction Industry Institute database, this study assesses the impacts of different sources of rework on construction cost performance. Furthermore, it identifies sources of rework having the most impact, permitting further analyses, and the development of rework reduction initiatives. The results of this study establish that the impact of rework differs by source, but sources having the greatest impact are not significantly different among different project types. The recognition of the different impacts of rework and documentation of its sources can be a starting point for reducing rework, thereby improving project cost performance. © RICS.