Analyzing Underlying Factors of Rework in Generating Contractual Claims in Construction Projects

Abstract

Claim management plays an essential role in the success of construction contracts. The enhancement of the contractual claim process in construction projects improves the relationship between parties and impacts conflicts and disputes. Previous studies related to contractual claims focused primarily on general causes with relatively little attention paid to reasons associated with reworking. Rework in construction contracts generates cost overruns and delays, resulting in claims, conflicts, and disputes. Given the causal relations of rework, contractual claims, and disputes in construction projects, the necessity to implement rework management has become more critical. Although construction reworks lead to claims and disputes, a quantitative approach has not been undertaken to analyze the relationship between rework causes and contractual claims. This study aims to identify the key causes of rework that affect construction contracts and categorize them as rework factors in generating contractual claims by apprising the correlative rework causes and contractual claims. A quantitative approach is considered an appropriate method for data collection. Based on a review of the literature, a questionnaire including a comprehensive list of rework causes was developed, and the collected data were then analyzed using the exploratory factor analysis method. The results provided evidence of categorizing the causes of rework under four underlying factors: process, management and planning, material and equipment, and human resources. This study bridges the knowledge gap of dimensionality between rework and contractual claims, which can create measures to address rework causes in generating contractual claims. The paper suggests that effective rework management could reduce contractual claims through attention to the causes of rework at the early stages of contracting.