Property Australia

Top six rework offenders killing your margins

PROPERTY AUSTRALIA July 9, 2019

The size and scale of projects today means rework is often hard to avoid. But cloud-based technology firm has strategies to deal with the top six offenders.

Countless projects every year extend beyond their scheduled deadlines. Recent research has found rework can often be as high as five per cent of the contract value of a project – while earlier studies suggest around 30 per cent of the work performed by construction companies is rework.

How can you avoid the top six offenders?

  1. Working from outdated drawings

A lot of project rework begins with inaccuracies in the initial architectural drawings, a failure to provide stakeholders with up-to-the-minute drawings and discrepancies between builders and architects. But on a cloud-based platform, drawings can be updated and distributed more easily. Teams can review digital drawings on any device, make mark ups and share changes in real time with all collaborators.

  1. Communication failures

Poor communication can lead to costly project delays as well as devastating construction defects. Email communication and separate software solutions limit access to information and create silos of activity. On a cloud-based platform, everyone has access to project information in real time.

  1. Undefined scope of work

Poor quality construction documents is another culprit. Owners may go out to bid with a 90 per cent complete set of drawings, believing they can account for variations after the contractors are signed up. How do you ensure the project scope is clear? Perform a constructability review and craft a thorough set of instructions to bidders, Procore advises.

  1. Variations

Variations are unavoidable; but if you’re managing the variations process with spreadsheets and email, you risk a serious lack of visibility and accountability. By using a collaborative all-in-one platform, however, every potential variation is tracked and the logs are automatically updated. The result? More visibility and accountability, and a faster turnaround time.

  1. Unskilled craftsmen

Data from 2018 revealed skilled candidate availability in the construction sector had fallen by 15.5 per cent over the year. Understaffed construction firms may be forced to propose slower schedules or hire underqualified workers – increasing the risk of poor-quality projects, injury and of course, rework. The right technology can help you attract “digital natives” and fill labour gaps.

  1. Ineffective or non-existent quality control

A quality control program can help drive the success of construction projects by ensuring contract and safety requirements are met and work is done right the first time. But the only way to identify issues before they happen is to have a system in place to track, report and improve upon them.

Whether it’s a variation that doesn’t make the rounds, or poor quality control, most errors can be remedied with better communication and more data sharing with the help of technology.

These are just some of the insights in Procore’s report: Top six rework offenders killing your margins. Download your copy today.