Learning to Reduce Rework in Projects: Analysis of Firm's Organizational Learning and Quality Practices

Abstract

While it is widely recognized that additional costs due to rework can have an adverse effect on firm and project performance, there has been limited empirical research investigating the influencing factors. The research presented in this paper determines if a firm's quality and learning practices influence the level of rework costs incurred in construction projects. Using a questionnaire survey, data was obtained from 161 Australian construction firms about the quality and learning practices employed by companies when delivering construction projects. The data analysis revealed that a firm's quality and learning practices did not significantly influence rework costs in projects. However, factors such as project reviews and external benchmarking were significantly correlated with project schedule growth. The size of the firm was identified as a factor that influenced the extent to which learning practices were implemented. The findings from the firms sampled indicate a low to moderate learning capability, which therefore can hinder their ability to implement best practice and work toward the reduction of rework in projects.