MSc Dissertation: Rework Analysis on Construction Projects, May-2014

This dissertation investigates the causes and effects of rework in a construction project, specifically focusing on a pipeline project in Libya. The research analyzed non-conformance reports, financial data, and conducted interviews to identify root causes of rework, including issues related to people, processes, technology, communication, materials, and equipment. The study found that inadequate supervision, erroneous workmanship, and poor training contributed to rework, leading to increased project costs and potential delays. The findings indicate a 4.7% increase in the total cost of the project due to rework. The research recommends improving communication, training, supervision, and material selection to reduce rework and its adverse impacts. The study also analyzes the impact of rework on project performance and cost, providing valuable insights for project managers to minimize rework in similar construction projects.

Project Management: An Analysis of Causes and Effects of
Rework on Construction Project
Prepared By
Student ID 129920
Dissertation submitted in partial fulfillment
for the requirements of a degree in Master of Science in Project
Management Faculty of Business
Dissertation Supervisor
May-2014

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Student Name Student ID Programme Date
Title
Project Management: An Analysis of Causes and Effects of Rework
on Construction Project
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MSc Dissertation for 129920 Page 2

Abstract
The significance of construction projects to any nation or society cannot be over emphasized.
However, various challenges affect the successful completion of construction projects. In this
research, the main causes of rework and the effects on project performance have been studied.
This research was carried out on an ongoing pipeline construction project situated in Libya and
data was collected from three main areas: 50 samples of non-conformance report (NCR);
financial information; interviews with the key staff working directly on the pipeline project.
After the identification of the project categories, the analysis of the interviews was conducted
using qualitative coding as the method for identifying the root causes of the rework on the
pipeline project. The financial information of the project that was obtained from the financial
head was used to substantiate the outcomes of rework impact on the pipeline project based on the
overall project performance.
The research findings indicated that the main causes of the rework on the project were closely
related to: people; process; technology; communication; materials; machines and equipment.
Moreover, it was found that the inadequate supervision; erroneous workmanship; lack of job
experience; poor training-culture of the organization; machines delivered with defects;
complication of the machines; language barriers and poor work procedures among other minor
faults are the root causes of the rework.
These causes triggered consequential effects on the project performance such as: fatigue and
stress among others. The average rework calculated for the project categories identified in the
pipeline project revealed that there was 4.7% increase in the total cost of the project.
Recommendations are also made so that the cost of rework may be reduced considerably at the
end of the project by: ensuring effective communication among the staff; improving the training
of the staff; increasing the amount of supervision; usage of right materials and ensuring the
usability and functionalities of the machinery and equipment.
Keywords: Rework, Rework Index, Project Performance
MSc Dissertation for 129920 Page 3

:ملخص البحث
تعتبر مشاريع اإلنشاءات ذات أهمية بالغةة يةأ أمجتمةع أ
مسسةة
ةمةع ذلةا هاةاد العنيةن مةي التلةنيات التةأ تةس ر
.على إنهاء هذه المشاريع باجاح يأ هذا البلث تمت دراسة األسباب الرئيةية إلعادة تافيذ العمة(Reworkآ ارهةا
على أداء المشر.ع
.أجرى هذا البلةث علةى مشةر ع تلةت التافيةذ إةاا بخنشةاء إة أنابيةو ميةاه بن لةة ليبيةا تةتجميةع البيانةات الةا
ة
ة
بالبلث مي:ال ة مال ر رئيةية هأ05عياة مي تقارير عنم المطابقة لبعض أعمال المشرع(NCR، المعلومةات
المالية، مقابالت شةصية مع بعض العامليي يأ المشر.ع بعن تلنين المراحاألساسية يأ المشرع تتلليةبيانةات
المقةةابالت الشةصةةية باسةةتةنام الترميةةا االةةوعأ واسةةلوب لتلنيةةن األسةةباب الجذريةةة التةةأ أدت إلةةى إعةةادة تافيةةذ العمةة(Reworkبهذا المشر.ع
وذال تةاسةتةنام المعلومةات الماليةة التةأ تةاللصةول عليهةا مةي اإلدارة الماليةة بالمشةرع لنراسةة تةف ير إعةادة تافيةذ
األعمال(Reworkعلى األداء العام للمشر.ع
مي إالل نتائج البلث اتضةأ األسةباب الرئيةةية إلعةادة التافيةذ العمة
وو (Reworkمرتبطةة ارتبااةا:يقةا األيةراد،
إطةوات العمةالتافيذيةة، التالولوجيةا، المةواد، االت.المعةنات إلةى جانةو ذلةا، يقةن تبةيي أعةنم وفايةة اإلشةةرا،
أإطاء األيراد، نقص الةبرة يأ الوظائف، عنمجةود برنةامج تةنريبأ، تةةليالمشةرع االت بهةا عيةوب، اللةواجا
اللغويةةة، فةةعف يةةأ إطةةوات العمةةالتافيذيةةة هةةذا إلةةى جانةةو بعةةض اأإلطةةاء البةةةيطة اأإلةةرىجميعهةةا تعتبةةر مةةي
.وةةذال األسةباب الجذريةة إلعةادة تافيةذ األعمةالتتمعة:تتابعةات تةف ير هةذه األسةةباب علةى العةامليي يةأ ااتةأ التعةةو
اإلجهادفغ. العم
مي إالل احتةاب متوسقيمة األعمال التأ تإعادة تافيذها يتضة أنةةبتها%7.4هةذه االةةبة تعتبةر ديةادة يةأ
.اجمةاأل تللفةة المشةر ع تمةت التوةةية بفنةأ يملةي أيةتتةفةيض تللفةةة إعةادة تافيةذ األعمةال(Reworkيةأ نهايةةة
المشةةر ع:ذلةةا يةةأ الترويةةا علةةى ااتةةأ تفعيةةالتواةةالجنيةةن بةةيي العةةامليي بالمشةةرع، تلةةةيي برنةةامج التةةنريبأ
للعامليي، تلةيي الشرا، استةنام المواد المااسبة، فماسهولة استةنام االت.المعنات
:الكلمات الرئيسة إعادة تنفيذ األعمال(Rework)، مؤشر إعادة تنفيذ العمل، إدارة المشروع

MSc Dissertation for 129920Page 4

Acknowledgement
The completion of this dissertation would not have been possible without the support of the staff
of the construction company, particularly the financial head and other relevant departments of
the company. Their immense help has enabled me to collect the relevant data needed to
accomplish this dissertation. It is with great delight that I wish to thank my supervisor, Dr Arun
Bajracharya, for his assistance throughout the duration of the dissertation. I wish also to
acknowledge Professor Muhammad Dulaimi and Professor Paul Gardiner for making the project
management programme such a worthwhile one. Finally, I also thank all university staff for their
support and encouragement extended.
MSc Dissertation for 129920 Page 5

Dedication
I dedicate this dissertation to my wife and children for their patience, understanding and support
in making this dissertation an accomplishment. My regards also go to the entire staff working in
my company for easing my task especially, when the going got tough.
MSc Dissertation for 129920 Page 6

Table of Contents
Abstract..........................................................................................................................................................3
Acknowledgement.........................................................................................................................................5
Dedication......................................................................................................................................................6
List of Figures.............................................................................................................................................10
List of Table................................................................................................................................................11
Chapter 1.0 Introduction..............................................................................................................................13
1.1 Background.......................................................................................................................................13
1.2 Project Description............................................................................................................................14
1.3 Problem Definition............................................................................................................................15
1.7 Aim of research.................................................................................................................................15
1.0 Objectives..........................................................................................................................................15
1.6 Research Hypotheses.........................................................................................................................16
1.7 Research Rationale............................................................................................................................16
1.8 Scope of research study.....................................................................................................................17
1.9 Research Structure.............................................................................................................................17
Chapter 2.0 Literature Review....................................................................................................................20
2. 1 Definition of Rework........................................................................................................................20
2.2 Origin of Rework...............................................................................................................................21
2.2.1 Client Related.............................................................................................................................21
2.2.2 Design Related...........................................................................................................................21
2.2.3 Constructor Related....................................................................................................................22
2.2.4 Vendor Related...........................................................................................................................22
2.2.5 Transporter Related.................................................................................................................22
2.3 Multiple Causes of Rework...............................................................................................................23
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2.4 Classification of Rework...................................................................................................................25
2.5 Impact of Rework..............................................................................................................................29
2.5.1 Overview of Cost of Rework......................................................................................................30
2.5.2 Impact of Rework on Quality Cost.............................................................................................31
2.5.3 Impact of Rework on the Project Cost Performance..................................................................33
2.5.4 Disruption of cordial relationship...............................................................................................36
2. 6 Rework Model Analysis.......................................................................................................................36
Chapter 3.0 Methodology............................................................................................................................40
3.1 Research Design................................................................................................................................40
3.2 Qualitative Research..........................................................................................................................41
3.2.1 Coding in qualitative research....................................................................................................42
3.2.2 Importance of coding..................................................................................................................43
3.3 Research Participants........................................................................................................................43
3.4 Data Collection Methods...................................................................................................................44
3.4.1 Interviews...................................................................................................................................45
3.4.2 Observation and review of NCR................................................................................................45
3.4.3 Financial Data.............................................................................................................................46
3.5 Data Analysis....................................................................................................................................46
Chapter 4.0 Research Discussion and Analysis..........................................................................................50
4.1. Introduction......................................................................................................................................50
4.2 Data Discussion.................................................................................................................................50
4.2.1Non-Conformance Report (NCR)...............................................................................................50
4.2.2 Interviews...................................................................................................................................55
4.2.3 Financial Data.............................................................................................................................64
4.3 Data Analysis....................................................................................................................................68
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4.3.1 Root Cause of Rework...............................................................................................................68
4.3.2 Classification of Rework............................................................................................................71
4.3.3 Cost Impact of Rework...............................................................................................................74
Chapter 5.0 Research Result and Discussion..............................................................................................77
5.1 Rework Prevailing Factors................................................................................................................77
5.2 Causes of the Rework........................................................................................................................79
5.3 Impact of Rework on Project Performance.......................................................................................79
5.3.1 Indirect Impact of Rework.........................................................................................................80
5.3.2 Cost Impact of Rework...............................................................................................................80
Chapter 6.0: Recommendation and Conclusion..........................................................................................83
6.1 Recommendations.............................................................................................................................83
6.2 Conclusion.........................................................................................................................................86
References...................................................................................................................................................87
APPENDIX I...............................................................................................................................................93
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List of Figures
Figure 1: Generic cause and effect rework diagram (Love et al., 1997).....................................................23
Figure 2: Interactions among the three sub-systems of a project (Love et al., 1999a)................................24
Figure 3: Rework Categories (Wasfy, 2010)...............................................................................................25
Figure 4: Rework Classification (fishbone) (Ruwanpura et al. 2003)........................................................29
Figure 5: Quality Cost: Cost of Control and Failure (Feigenbaum, 1991)..................................................32
Figure 6: Taxonomy of the Indirect Consequences of Rework (Cooper, 1993).........................................36
Figure 7: Pilot Study on Field Rework Tracking (Fayek et al. 2003).........................................................38
Figure 8: Project Categories with the Project Percentage...........................................................................66
Figure 9: Project Categories with the Project Values..................................................................................66
Figure 10: Project Categories with the Percentage of Rework...................................................................67
Figure 11: Project Categories Plotted Against Planned and Actual Cost of Project...................................68
Figure 12: Causes of Rework and their Contributions to Overall Rework Costs.......................................73
Figure 13: Shows the Project Categories and the Percentage Rework Index..................................................72
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List of Table
Table 1: Shows the project profile..............................................................................................................14
Table 2: Definitions of Origin of Rework...................................................................................................23
Table 3: Rework Classification System (Burati et al. 1992).......................................................................27
Table 4: Amounts of Rework in Projects adapted from (Love & Edwards, 2004).....................................31
Table 5: Showing the process of coding in an inductive analysis...............................................................47
Table 6: Shows the non-conformance descriptions for haul road...............................................................51
Table 7: Shows the non-conformance descriptions for excavation.............................................................51
Table 8: Shows the non-conformance descriptions for pipe transportation................................................51
Table 9: Shows the non-conformance descriptions for pipe installation....................................................51
Table 10: Shows the non-conformance descriptions for back fill...............................................................52
Table 11: Shows the non-conformance descriptions for concrete work.....................................................52
Table 12: Shows Categories by Rework Frequency...................................................................................54
Table 13: Shows the numbers of participants and their position................................................................63
Table 14: Shows the 1st and 2nd Tie Categories with their Symbols.........................................................63
Table 15: Project Categories with the Project Values.................................................................................65
Table 16: Project progress percentage represented with total project value and percentage of rework (50
samples).......................................................................................................................................................67
Table 17: Showing Project Categorization and Root Causes......................................................................70
Table 18: Percentage Categorization of Theme Formation.........................................................................72
Table 19: Cost Impact of Project Categories on Rework Index..................................................................74
Table 20: Shows the relationship of the main rework causes with the project categories..........................78
MSc Dissertation for 129920 Page 11