While it is widely recognized that additional costs due to rework can have an adverse effect on project performance, limited empirical research has been done to investigate the influencing factors. The research presented in this paper aims to determine the influence of different project types and procurement methods on rework costs in construction projects. Using a questionnaire survey, rework costs were obtained from 161 Australian construction projects. The direct and indirect consequences of rework are analyzed and discussed. It is shown that, contrary to expectation, rework costs do not differ relative to project type or procurement method. In addition, it was found rework contributed to 52% of a project's cost growth and that 26% of the variance in cost growth was attributable to changes due to direct rework. To reduce rework costs and therefore improve project performance, it is posited that construction organizations begin to consider and measure them, so that an understanding of their magnitude can be captured, root causes identified, and effective prevention strategies implemented.

Influence of Project Type and Procurement Method on Rework Costs in Building Construction Projects

Collaborative construction project arrangements have been the subject of many development efforts owing to the frustration felt toward the opportunism inherent in traditional contracting. Globally, three approaches have stood out: project partnering, project alliancing and integrated project delivery. These so-called relational project delivery arrangements have much in common. This study aims to clarify the similarities and differences between the arrangements by examining their key concepts and features one by one and in relation to each other; the motivation behind each is also examined. Early involvement of key parties, transparent financials, shared risk and reward, joint decision-making, and a collaborative multi-party agreement are some of the features incorporated in all the arrangements to a varying degree. Beyond the numerous details, divergent applications and constant evolution presented, the study also recognizes project alliancing as a project delivery system in its own right due to its cont...

Making sense of the multi-party contractual arrangements of project partnering, project alliancing and integrated project delivery

Effects of cooperative procurement procedures on construction project performance: A conceptual framework

A number of procurement selection systems have been developed over the last decade. The use of multi-attribute decision analysis has been considered the foremost technique for examining client needs and the weightings of preferences from experts for each procurement system in the most objective way available. However, the major difficulty of these selection models lies in the lack of consensus among the experts on the utility factor of the selection criteria. To overcome these deficiencies, a Delphi technique was adopted to develop a multi-attribute model. Four rounds of Delphi surveys were conducted. A statistically significant consensus on the weighting of the utility factors for each procurement system was obtained from eight experts. The results vividly reveal that the Delphi method is a powerful and appropriate technique for deriving objective opinions in a rather subjective area such as the multi-attribute model for the selection of procurement system.

Application of Delphi method in selection of procurement systems for construction projects

Using systems dynamics to better understand change and rework in construction project management systems

Building procurement has become a fashionable term with industry practitioners and researchers. It determines the overall framework and structure of responsibilities and authorities for participants within the building process. It is a key factor contributing to overall client satisfaction and project success. The selection of the most suitable procurement method consequently is critical for both clients and project participants, and is becoming an important and contemporary issue within the building industry. The problem, nevertheless, lies in the fact that there has been limited empirical research in this field of study. Postal questionnaire surveys of 41 clients and 35 consultants were carried out, and were used to obtain experience of and attitudes to a variety of procurement methods and the criteria used for selection. The findings indicate that a simple set of the criteria generally is adequate and sufficient for procurement path selection, and that there is a reasonable consensus on the appropriate...

George Earl

Papers

Selecting a suitable procurement method for a building project