Cost Management in Construction Projects: Rework and Its Effects

Abstract

In Iran, a lot of money spent annually on construction projects, in the form of construction and non-construction projects. One of the serious shortcomings of the management construction in the country, is absence of a specified system for recording the actual costs of various activities. Project cost management is an activity which deals forecasting, planning, control, cost finding, analysis and assessment. When you realize cost management performance tangibly, as a result of mismanagement, lack of financial resources appears in all the components of project. In this situation, managers can be effective support to keep track of rework events and play an important role on the performance and efficiency of projects. Rework has opposite effect on the cost and timing of projects and satisfaction of people. Numerous studies have been carried out to quantify the cost of rework projects. Among the causes of reworking we can mention the factors related to customers, factors related to the design and factors related to subcontractors. This paper examines the construction cost management and the role of rework. Basic topics in management costs are presented and rework factors discussed in detail and finally refer to the appropriate methods for identifying and managing rework to reduce the total cost of construction projects.

DOI: 10.5901/mjss.2015.v6n6s6p209