Guidelines for Mapping Rework in the Contract Conditions of Construction Projects
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 1
Abstract
This paper provides a detailed review of rework clauses in the standard form of contracts. The terms and conditions of construction contracts have a significant impact on project performance. Construction contract clauses govern the interactions between parties and may affect the completion date and final cost of projects. Depending on the complexity of a construction projects, a chain of contract clauses must be written that fits together. The main purpose of construction contracts is to create a fair situation for the parties involved to share their risks. It is more advantageous to a project if clauses are spelled out as comprehensively and as precisely as possible. Well-prepared clauses help to avoid debate over complicated provisions and may result in fewer conflicts and disputes. Contractual clauses in standard forms of a contract are referred to as general contract conditions. However, even though many aspects of contracts have been studied previously across various contract conditions, an assessment of rework in a contract’s clauses is of paramount importance. In this study, a three-step methodology was utilized to study rework in contract conditions: (1) conducting a series of professional interviews, (2) reviewing contract documents and contract provisions on the leading rework issues, and (3) comparing the outcomes to set up guidelines. Relevant clauses were identified, and a discussion of rework was prepared. This paper contributes to the body of knowledge on construction contracts by addressing rework in contract conditions. A flowchart to address gaps and issues in rework provisions across various contract clauses was developed with a checklist of items addressing to the contract parties. This study provides recommendations to improve contract conditions, which may, in turn, reduce contractual claims, disputes, and conflicts. It helps construction practitioners revise relevant clauses at the time of contract preparation.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
References
Works Cited
Abdul-Malak, M. A. U., A. H. Srour, and F. S. Demachkieh. 2020. “Decision-making governance platforms for the progression of construction claims and disputes.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (3): 04520025. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000412.
Abdul Nabi, M., I. H. El-adaway, S. Fayek, C. Howell, and J. Gambatese. 2020. “Contractual guidelines for construction safety–Related issues under design–Build standard forms of contract.” J. Constr. Eng. Manage. 146 (7): 04020074. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001855.
Apollo, M., A. Siemaszko, and A. Kristowski. 2018. “Risk sharing in the construction work contracts.” In Proc., Creative Construction Conf. 2018 (CCC 2018), edited by M. J. Skibniewski and M. Hajdu. 656–662. Budapest, Hungary: Budapest Univ. of Technology and Economics. https://doi.org/10.3311/CCC2018-087.
Asadi, R., J. O. B. Rotimi, and S. Wilkinson. 2022. “Investigating the relationship between reworks and contractual claims: The salience of contract conditions.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 14 (1): 04521046. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000519.
Asadi, R., S. Wilkinson, and J. O. B. Rotimi. 2021a. “The common causes of rework in construction contracts: A diagnostic approach.” J. Eng. Des. Technol. 4 (21): 215. https://doi.org/10.1108/JEDT-04-2021-0215.
Asadi, R., S. Wilkinson, and J. O. B. Rotimi. 2021b. “Towards contracting strategy usage for rework in construction projects: A comprehensive review.” J. Constr. Manage. Econ. 2021 (Jan): 2004609. https://doi.org/10.1080/01446193.2021.2004609.
Assaad, R., A. E. Gasser, A. M. Abdul Nabi, and I. H. El-adaway. 2020. “Back-to-back relationship under standard subcontract agreements: Comparative study.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (3): 04520020. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000406.
Badenfelt, U. 2011. “Fixing the contract after the contract is fixed: A study of incomplete contracts in IT and construction projects.” Int. J. Project Manage. 29 (Apr): 568–576. https://doi.org/10.1016/j.ijproman.2010.04.003.
Besaiso, H., P. Fenn, M. Emsley, and D. Wright. 2018. “A comparison of the suitability of FIDIC and NEC conditions of contract in Palestine.” Eng. Constr. Archit. Manage. 25 (2): 241–256. https://doi.org/10.1108/ECAM-10-2016-0235.
Broome, J. C., and R. W. Hayes. 1997. “A comparison of the clarity of traditional construction contracts and of the New Engineering contracts.” Int. J. Project Manage. 15 (4): 255–261. https://doi.org/10.1016/S0263-7863(96)00078-6.
Bubshait, A. A., and S. A. Almohawis. 1994. “Evaluating the general conditions of a construction contract.” Int. J. Project Manage. 12 (3): 133–136. https://doi.org/10.1016/0263-7863(94)90027-2.
Coleman, E., I. K. Nooni, S. K. Fianko, L. Dadzie, and E. N. Neequaye. 2020. “Assessing contract management as a strategic tool for achieving quality of work in Ghanaian construction industry.” J. Finan. Manage. Property Constr. 25 (1): 41–60. https://doi.org/10.1108/JFMPC-08-2018-0046.
Creswell, J. W. 2007. Qualitative inquiry and research design: Choosing among five approaches. 2nd ed. Thousand Oaks, CA: SAGE.
Creswell, J. W. 2009. Research design: Qualitative, quantitative, and mixed methods approaches. Thousand Oaks, CA: SAGE.
El-adaway, I. H., I. S. Abotaleb, M. S. Eid, S. May, L. Netherton, and J. Vest. 2018. “Contract administration guidelines for public infrastructure projects in the United States and Saudi Arabia: Comparative analysis approach.” J. Constr. Eng. Manage. 144 (6): 04018031. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001472.
El-adaway, I. H., S. Fawzy, T. Allard, and A. Runnels. 2016. “Change order provisions under national and international standard forms of contract.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 8 (3): 03716001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000187.
El-adaway, I. H., S. Fawzy, H. Burrell, and N. Akroush. 2017. “Studying payment provisions under national and international standard forms of contracts.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 9 (2): 04516011. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000200.
Eze, E. C., and J. E. Idiake. 2018. “Analysis of cost of rework on time and cost performance of building construction projects in Abuja, Nigeria.” Int. J. Built Environ. Sustainability 5 (1): 56–67. https://doi.org/10.11113/ijbes.v5.n1.246.
Finnie, D. 2013. “Comparison of time adjustment clauses between DZ3910, AS4000 and STCC.” Australas. J. Constr. Econ. Build. 13 (1): 66–84. https://doi.org/10.5130/AJCEB.v13i1.3071.
Forcada, N., M. Gangolells, M. Casals, and M. Macarulla. 2017. “Factors affecting rework costs in construction.” J. Constr. Eng. Manage. 143 (8): 04017032. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001324.
Hassan, F., and T. Le. 2020. “Automated requirements identification from construction contract documents using natural language processing.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 04520009. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000379.
Hayati, K., Y. Latief, and S. A. Jaka. 2019. “Risk-based contract management on the design and build construction to minimize disputes in infrastructure projects.” IOP Conf. Ser.: Mater. Sci. Eng. 506: 012047. https://doi.org/10.1088/1757-899X/506/1/012047.
Hegazy, T., M. Said, and M. Kassab. 2011. “Incorporating rework into construction schedule analysis.” Autom. Constr. 20 (8): 1051–1059. https://doi.org/10.1016/j.autcon.2011.04.006.
Hwang, B. G., S. R. Thomas, and C. T. Haas. 2009. “Measuring the impact of rework on construction cost performance.” J. Constr. Eng. Manage. 135 (3): 187–198. https://doi.org/10.1061/(ASCE)0733-9364(2009)135:3(187).
Hwang, B. G., X. Zhao, and K. J. Goh. 2014. “Investigating the client-related rework in building projects: The case of Singapore.” Int. J. Project Manage. 32 (Aug): 698–708. https://doi.org/10.1016/j.ijproman.2013.08.009.
Jelodar, M. B., P. H. Raut, and E. Saghatforoush. 2021. “Contractor-delay control in building projects: Escalation of strategy from primary proactive to secondary reactive.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 13 (2): 04521002. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000449.
Jelodar, M. B., T. W. Yiu, and S. Wilkinson. 2016. “Dispute manifestation and relationship quality in practice.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 8 (1): C4515003. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000171.
Jelodar, M. B., T. W. Yiu, and S. Wilkinson. 2022. “Empirical modeling for conflict causes and contractual relationships in construction projects.” J. Constr. Eng. Manage. 148 (5): 04022017. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002263.
Josephson, P. E., B. Larsson, and H. Li. 2002. “Illustrative benchmarking rework and rework costs in Swedish construction industry.” J. Manage. Eng. 18 (2): 76–83. https://doi.org/10.1061/(ASCE)0742-597X(2002)18:2(76).
Kisi, K. P., N. Lee, R. Kayastha, and J. Kovel. 2020. “Alternative dispute resolution practices in international road construction contracts.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 04520001. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000373.
Lee, Z. P., A. R. Rahimi, and S. I. Doh. 2020. “Critical success factors for implementing design-build: Analysing Malaysian public projects.” J. Eng. Des. and Technol. 20 (5): 1041–1056. https://doi.org/10.1108/JEDT-08-2020-0321.
Liu, Q., G. Ye, Y. Feng, C. Wang, and Y. Peng. 2020. “Case based insights into rework costs of residential building projects in China.” Int. J. Construct. Manage. 20 (4): 347–355.
Love, P. E. D., and D. J. Edwards. 2004. “Forensic project management: The underlying causes of rework in construction projects.” Civ. Eng. Environ. Syst. 21 (3): 207–228. https://doi.org/10.1080/10286600412331295955.
Love, P. E. D., G. D. Holt, L. Y. Shenb, H. Li, and Z. Irani. 2002. “Using systems dynamics to better understand change and rework in construction project management systems.” Int. J. Project Manage. 20 (Jan): 425–436. https://doi.org/10.1016/S0263-7863(01)00039-4.
Mendis, D., K. N. Hewage, and J. Wrzesniewski. 2013. “Reduction of construction wastes by improving construction contract management: A multinational evaluation.” Waste Manage. Res. 31 (10): 1062–1069. https://doi.org/10.1177/0734242X13495724.
Mendis, D., K. N. Hewage, and J. Wrzesniewski. 2015. “Contractual obligations analysis for construction waste management in Canada.” J. Civ. Eng. Manage. 21 (7): 866–880. https://doi.org/10.3846/13923730.2014.893907.
Moza, A., and V. K. Paul. 2018. “Analysis of claims in public works construction contracts in India.” J. Constr. Dev. Countries 23 (2): 7–26. https://doi.org/10.21315/jcdc2018.23.2.2.
Oyewobi, L. O., and D. R. Ogunsemi. 2010. “Factors influencing rework occurrence in construction: A study of selected building projects in Nigeria.” J. Build. Perform. 1 (1): 1–20.
Pesek, A. E., J. B. Smithwick, A. Saseendran, and K. T. Sullivan. 2019. “Information asymmetry on heavy civil projects: Deficiency identification by contractors and owners.” J. Manage. Eng. 35 (4): 04019008. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000694.
Safapour, E., and S. Kermanshachi. 2019. “Identifying early indicators of manageable rework causes and selecting mitigating best practices for construction.” J. Manage. Eng. 35 (2): 04018060. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000669.
Saseendran, A., B. F. Bigelow, Z. K. Rybkowski, and D. E. Jourdan. 2020. “Disputes in construction: Evaluation of contractual effects of consensus DOCS.” J. Leg. Aff. Dispute Resolut. Eng. Constr. 12 (2): 04520008. https://doi.org/10.1061/(ASCE)LA.1943-4170.0000377.
Seneviratne, K., and G. V. Michael. 2020. “Disputes in time bar provisions for contractors’ claims in standard form of contracts.” Int. J. Construct. Manage. 20 (4): 335–346.
Seo, W., and Y. Kang. 2020. “Performance indicators for the claim management of general contractors.” J. Manage. Eng. 36 (6): 04020070. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000835.
Sorde, M. S., and P. H. Sawant. 2015. “Analysis of contract clauses affecting the cost performance of a construction project.” J. Civ. Eng. Environ. Technol. 2 (5): 437–440.
Standards New Zealand. 2021. Scoping Report. NZS3910 conditions of contract for building and civil engineering. Wellington, New Zealand: Standards New Zealand.
Wang, C., J. B. H. Yap, L. C. Wood, and H. Abdul-Rahman. 2019. “Knowledge modelling for contract disputes and change control.” Prod. Plann. Control 30 (8): 650–664. https://doi.org/10.1080/09537287.2019.1572247.
Wright, J. N., and W. Fergusson. 2009. “Benefits of the NEC ECC form of contract: A New Zealand case study.” Int. J. Project Manage. 27 (3): 243–249. https://doi.org/10.1016/j.ijproman.2008.03.005.
Zaghloul, R., and F. Hartman. 2003. “Construction contracts the cost of mistrust.” Int. J. Project Manage. 21 (6): 419–424. https://doi.org/10.1016/S0263-7863(02)00082-0.
Zhang, D., C. T. Haas, P. M. Goodrum, C. H. Caldas, and R. Granger. 2012. “Construction small-projects rework reduction for capital facilities.” J. Constr. Eng. Manage. 138 (12): 1377–1385. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000552.
Zheng, F. 2018. “Application research on construction project management contract management.” In Proc., 4th Int. Conf. on Innovative Development of E-commerce and Logistics. Ottawa: Clausius Scientific Press. https://doi.org/10.23977/icidel.2018.063.
Information & Authors
Information
Published In
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Mar 24, 2022
Accepted: Jul 4, 2022
Published online: Oct 27, 2022
Published in print: Feb 1, 2023
Discussion open until: Mar 27, 2023
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.