Reducing rework costs in construction projects

In this document the final outcomes of the analysis on rework events in construction projects of Grupo Williams (GW) are shown. The intention of the study has been formulated as: “To assess rework costs in construction projects of Grupo Williams and recommend improvements to cut back these rework costs.” The assessment was done through analysis of realized projects. Initially a financial analysis was done to ascertain the volume of rework costs GW is dealing with. Subsequently, to find the reasons behind the rework events personnel was interviewed. Based upon these analyses and information obtained from present literature recommendations and suggestions for progress were made. Failure costs are all costs which are made unnecessarily to achieve the final product. Rework costs are a good example of failure costs. Rework has been defined as: “The unnecessary effort of re-doing a process or action which was incorrectly applied the first time.” Rework might have serious consequences, such as cost overruns and time overruns. Besides these direct consequences, there may also be indirect consequences, for example stress, de-motivation or loss of future clients. Rework events can have several origins and for this study they’ve been classified into four categories; changes, errors, omissions and damages….

Contents: Reducing rework costs in construction projects

1 Problem identification
1.1 Problem description
1.2 Research objective
1.3 Research questions
1.4 Structure of report
2 Research methodology
2.1 Qualitative analysis of finished projects
2.2 Rework definition
2.3 Inventorisation of possible rework causes
2.4 Checklist/model
2.5 Interviews
2.6 Conclusions & recommendations
3 Theoretical framework
3.1 Failure costs
3.2 Rework definition
3.3 Consequences
3.3.1 Gravity of consequences from literature
3.4 Causes
3.4.1 Departments/phases
3.4.2 Categories
3.5 Scope
4 Qualitative analysis of finished projects
4.1 Analysis methodology
4.2 Projects
4.2.1 Proyecto Banco Lafise
4.2.2 Proyecto Cervezeria Hondureña
4.2.3 Proyecto Aimar
4.2.4 Proyecto Cigrah
4.2.5 Proyecto Panaderia Jerusalen
4.3 Conclusions regarding possible rework
4.4 Conclusions regarding financial project evaluation & accounting
4.4.1 Uniformity balance sheets and accounting & end result overview
4.4.2 Standardization balance sheets (and tenders)
5 Set-up quantitative analysis of finished projects
5.1 Model/Checklist
5.2 Interview strategy
5.2.1 Checklist as basis
5.2.2 In-Person interviews
5.2.3 Standardized vs. non-standardized interviews
5.2.4 Open vs. closed questions
5.2.5 Use of scaling
5.2.6 Things to avoid
5.2.7 Risks regarding interviews
6 Outcomes of quantitative analysis
6.1 Proyecto Banco Lafise
6.2 Proyecto Cerveceria Hondureña
6.3 Proyecto Aimar
6.4 Proyecto La Cigrah
6.5 Proyecto Panaderia Jerusalen
6.6 Summary
7 Reliability quantitative analysis
7.1 Ratios of confirmed indicators
7.2 Discrepancies
7.3 Alternate form reliability
8 Avoiding rework
8.1 Change orders
8.2 Lack of coordination
8.3 Late material deliveries
8.4 Construction methods
8.5 Personnel
9 Inter-project learning & project evaluation
9.1 Reporting rework events
9.2 Rework monitoring checklist
10 Conclusions & recommendations
10.1 Conclusions
10.2 Recommendations.
10.2.1 Avoiding rework
10.2.2 Reporting rework & database
10.2.3 Rework monitoring checklist
10.2.4 Financial evaluation & accountancy…

Source: University of Twente

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