Research Studies: The Many Costs of Construction Rework

Much research has been done around the world on the cost of rework in construction. Rework has been referred to as “the unnecessary effort of redoing a process or activity that was incorrectly implemented in the first instance”or otherwise stated as “not building it right the first time.” Studies have shown a direct relationship between poor quality and higher craft/tradeincident/injury rates on projects.

As the construction industry has proven, tailgate/crew weekly safety meetings are one of the most effective tools used to reduce craft/trade injuries. By applying the same tool and having Foremen lead weekly quality meetings reinforcing quality construction techniques, we will reduce rework and achieve many benefits such as: reduce schedule impacts; reduce time and material costs; reduce conflict between specialty contractors, general contractors, and owners; reduce Completed Operations Claims; reduce warranty disputes; and ultimately deliver quality built projects to our Owners.

Below are a few research studies of construction rework and the impact on the construction industry. Relevant statements from the studies have been copied to demonstrate the cost of rework financially, as well as to the project schedule. Additional studies have identified prevention recommendations including employee quality training. For a full list of related rework studies and how rework has affected the construction industry, please reference the QST website at www.qualitysafetytimes.com.

1. Publication title: Rethinking Construction
   • P. 15, #25-#26, The Scope for Improvement
   • 54315_RETHINKING CONST3 (constructingexcellence.org.uk)(Egan, 1998).
   • Previous studies identified that rework could add around 10% of the total project’s costs where it is mostly unnecessary and avoidable.
     • Recent studies in the USA show up to 30 percent of construction is related to rework, labor is used at only 40-60% of potential efficiency, and accidents account for 3-6% of total project costs.
2. Publication title: Effects of Field Rework, Research Topic Summary
   • RS-153-1, P.15
   • https://www.construction-institute.org/resources/knowledgebase/knowledge-areas/quality-management/topics/rt-153(CII, 2001).
     • US based Construction Industry Institute (CII) has the Field Rework Index (FRI) as a simple tool that helps projects identify causes of rework. They conclude that >4% of rework is ≥ average of 8% cost growth and <4% of rework is ≥ average -1.5% of cost growth.
3. Publication title: Defects and Rework in South African Construction Projects. Proceedings of the First CIBD Post Graduate Conference
   • 2003 Oct 12-14; Port Elizabeth, South Africa.
   • (PDF) A rework probability model: A quantitative assessment of rework occurrence in construction projects (researchgate.net) (Rhodes and Smallwood 2003).
   • Research conducted by the Associated General Contractors of America found that the average cost of rework (from nine industrial projects) was 12.4% of the project cost.
4. Publication title: Reducing Rework to Enhance Project Performance Levels
   • P.5.7 and the Listed are strategies for Zero Rework…
   • (PDF) Reducing rework to enhance project performance levels (researchgate.net) (E. Palaneeswaran, 2006).
     • Avoiding defects, errors, omissions, non-conformances, and other quality deviations (e.g., through appropriate supervision and quality management systems).
     • Reducing changes and adversarial conflicts (e.g., through enhanced stakeholder interactions and early involvements, improved scope definitions including freezing from further changes, etc.)
     • Enhancing systematization including improved documentation, information, and communication arrangements.
     • Reinforcing relationships and enabling better supply chain integrations.
     • Learning and craft arrangements (e.g., through lessons learned frameworks, success and failure stories.
5. Publication title: Reducing Rework to Enhance Project Performance Levels
   • P. 5.3-5.5
   • (PDF) Reducing rework to enhance project performance levels (researchgate.net) (E. Palaneeswaran, 2006).
   • A sampled private building project (new construction works for $290 million), the direct costs of rework was found to be 3.5% of original contract value and the corresponding indirect costs was 1.7%. The rework costs were shared by the client, contractor, and subcontractors.
     • Clients –2% direct costs and 1% indirect costs.
     • Main contractor –1% direct costs and 0.5% indirect costs.
     • Subcontractors –0.5% of direct costs and 0.2% of indirect costs.
     • The time overrun in this project was 2 months, for which the original period was 24 months.
6. Publication title: Measuring and Classifying Construction Field Rework: A Pilot Study
   • P. 52-55.
   • Measuring and Classifying Construction Field Rework: A Pilot Study -PDF Free Download (docplayer.net) (Fayek et al. (2003).
     • From the 108 field rework incidences in a Canada based study, a total cost contribution summary:
     • Engineering & Reviews –61.65%.
     • Human Resource Capability –20.49%.
     • Materials & Equipment Supply –14.81%.
     • Construction Planning & Scheduling –2.61%.
     • Leadership & Communication –0.45%.
7. Publication title: Building Excellence: The Benefits of Cross-Training your Craft Professional Workforce
   •  P.1-2
   • https://constructioncitizen.com/blog/building-excellence-benefits-cross-training-your-craft-professional-workforce/2310261#:~:text=Having%20a%20cross%2Dtrained%20workforce,addressing%20issues%20promptly%20and%20effectively(A. Taylor (Oct 2023)
     • Training of craft employees and cross-training them is one of the prevention measures of rework that leads to significant cost savings of reducing delays and addressing issues promptly and effectively.

Published by: Michael Andler, MSET, CHST, CIT, CRIS–Senior Lecturer at Central Washington University, Department of Engineering Technologies, Safety, and Construction

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