Best Practices

Cost of rework

In a recent study rework costs (including labor, materials, equipment and subcontractors) can run from 2% to 20% of a project's total contract amount according to the Construction Industry Institute. These costs are of course eventually passed on to the customer as profitability shrinks. The questions raised by this are: What is your cost of rework? and What quality tools are you using to reduce those costs?
Nov. 30, 2012

In a recent study rework costs (including labor, materials, equipment and subcontractors) can run from 2% to 20% of a project's total contract amount according to the Construction Industry Institute. These costs are of course eventually passed on to the customer as profitability shrinks.

The questions raised by this are:

What is your cost of rework?

and

What quality tools are you using to reduce those costs?

About the Author

Denis Leonard

Denis Leonard has a degree in construction engineering an M.B.A. and a Ph.D. in quality management. Denis is a Fellow of the American Society for Quality, a Certified Quality Manager, Auditor and Six Sigma Black Belt. He has been an Examiner for the Baldrige National Quality Award Board of Examiners a Judge on the International Team Excellence Competition and a Lead Judge on the National Housing Quality Award. A former Professor of Quality at the University of Wisconsin, he has experience as a quality manager in the homebuilding industry as well as construction engineer, site manager and in training, auditing and consulting with expertise in strategic and operational quality improvement initiatives. His work has achieved national quality, environmental and safety management awards for clients.

Denis is co-author of 'The Executive Guide to Understanding and Implementing the Baldrige Criteria: Improve Revenue and Create Organizational Excellence'.

http://www.BusinessExcellenceConsulting.net

[email protected]

Full listing of blogs https://www.probuilder.com/author/denis-leonard

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