Contractors interviewed in 15 studies allowed Navigant Consulting researchers to estimate the direct cost of construction rework at almost 6% of the total contract amount, with indirect costs of 5.5%. Fortunately, contractors are in a good position to improve profitability by reducing or eliminating rework.
The seeds of rework typically hide in construction processes. Incomplete or delayed requests for proposal leave people working without the right information or specifications; inadequate resources encourage people to cut corners; poor scheduling ensures work sequencing gets out of whack; poor design and engineering not only raise safety concerns, but also guarantee people will be making changes on the fly.
Poor Communication, Rework, Bad Data Management Cost Construction Industry $177B Annually
ConstructionBusinessOwners.com says to truly tame rework, you have to start at the beginning:
- Understand the project’s scope
- Analyze the schedule
- Enforce specifications
- Formalize quality control
- Analyze and document rework
(find out how these steps reduce construction rework . . . )
