Abstract

Rework in construction development projects can significantly degrade project cost and schedule performance. Previous research has shown that in a typical construction development project, rework in the construction phase could increase construction cost by up to 12.4% of the contract price. In large, complex projects, undiscovered rework in the design phase can induce rework in the construction phase, thus increasing project cost. The time when rework is discovered during the project development process affects the magnitude of the impact of rework on overall project performance. However, available knowledge is not always successful in improving project managers’ understanding of the feedback mechanisms that drive undiscovered rework impacts on project performance, specifically the interaction between different phases during the developing process. The current work uses a system dynamics model of a two-phase project development cycle to identify high leverage points for minimizing the impacts of rework and ripple effects on project development performance. The work contributes to the existing body of knowledge by providing a structured feedback description of how design undiscovered rework combines with ripple effects to impact project performance in both the design and construction phases, as well as evaluating possible solutions to the problem. Model analysis suggests that failing to discover rework near its creation in the project development process can magnify the impact of rework on project performance.

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