The other day, I was talking with a company that had around 20% rework on a project, which I thought was outrageous. But I later learned that construction rework often accounts for 10% to 20% profit loss on a project.
Rework in construction is not just a minor setback; it can be a significant drain on resources and profitability. Rework slows the schedule and disrupts the sequence and timing of the project. Plus, it damages your reputation, losing potential new customers or repeat business.
Some companies are resigned to the fact that rework is just part of the construction industry, but it certainly doesn’t have to be!
The Real Costs of Rework
Construction rework isn’t just a hassle – it’s expensive. And the numbers paint a grim picture. Recent studies have shown that rework can consume up to 20% of a project’s budget. Think about that for a moment: if you’re managing a $10 million project, that’s potentially $2 million wasted on fixing mistakes.
This isn’t a hypothetical issue – construction rework puts real financial pressure on companies, impacting their bottom line, overall project success and reputation.
5 Common Culprits of Construction Rework (and How to Fix Them)
Like a domino effect, rework often starts as something small that, left untreated, spirals into something much bigger. Here are 7 common causes of construction rework:
#1 Miscommunication
Recent studies show that workers spend about 35% of their time on “non-optimal activities” like searching for information and fixing mistakes. In construction, every team member must be on the same page regarding design changes, project requirements, and timelines with regular updates and consistent communication. Muddled or delayed information equals significant delays and costly rework.
Solution
Deliver clear, consistent messages to ALL employees regardless of location instantaneously through the Tyfoom platform. Managers have full visibility into who has received, read and acknowledged the message, so you can spend less time wondering and more time building your brand.
With hundreds of employees throughout Utah, Wheeler Machinery Co. faced significant communication challenges. “The employees in the branch stores always felt like they weren’t part of the bigger picture,” said Michelle McDermaid, DOT Compliance Manager. “They felt disconnected because they were the last to hear updates and alerts. Now everyone gets the exact same information at the exact same time. That’s an ability we didn’t have before.”
Whether you have 5 or 50,000+ employees, Tyfoom takes away the pain and hassle in effectively communicating with your people. No more watered-down or muddled communication from leadership!
#2 Human Error
Mistakes happen, but they shouldn’t be a regular occurrence. In construction, errors from a lack of training can quickly rack up costly rework charges. Investing in ongoing training and development for your team is essential.
Documenting standard operating procedures and thoroughly training employees on organization best practices significantly reduces the number of errors. Companies that prioritize continuous learning and provide employees with access to refresher training not only significantly reduce errors, but also stay ahead of the competition.
Solution
Tyfoom uses video-based microlearning techniques to help managers more effectively train their teams. Bite-sized chunks of content make it easy for learners to consume new concepts and Tyfoom allows managers to curate content playlists based on individual roles.
For example, rather than providing one service, Jones Paint & Glass specializes in multiple areas including windows and doors, window coverings, paint products and, of course, glass (bathroom glass, mirrors, decorative glass, and automotive glass). As a result, a “one-size-fits-all” training was wildly ineffective.
“Our business is very diversified from paint sales to contract glazing, but Tyfoom makes it easy for every supervisor to manage content at a local level. Training is tailored to individual jobs so employees receive relevant, specialized learning,” said David Jones, CEO.
With the Tyfoom app at their fingertips, employees can access their personalized daily learning anytime, anywhere, saving everyone time and money.
#3 Ineffective Quality Improvement Processes
Without a system to learn from past mistakes, the same issues can pop up again and again leading to rework. To boost quality and efficiency, both managers and employees need a solid plan for identifying, documenting, and putting corrective actions in place to prevent errors from reoccurring.
Solution
Tyfoom’s mobile-first platform provides flexibility, convenience and real-time accessibility to quickly address issues and prevent them from reoccurring. Managers can create content in minutes or select from ready-to-go videos from Tyfoom’s Library.
Before Tyfoom, safety training approval and creation were cumbersome for Wheeler Machinery Co. Technicians emailed quality control suggestions to the department, which were then reviewed and discussed in committee meetings. “It used to be a time intensive process,” McDermaid explained. “But now the employees can film a short video, send it in for approval and share it.”
Tyfoom allows employees to record and submit their own videos. “For instance, our warehouse folks recognized that we had a lot of people from the office wandering around the area,” said Troy Worthen, Safety Manager. “Our warehouse is an active environment. They took it upon themselves to make their own video on standard operating procedures. They sent it to us ready to roll.”
#4 Incomplete Records
Incomplete or outdated records guarantee costly construction rework. When teams scramble to fix things, it not only wastes time and money, it can also lead to even more mistakes. Having complete and accurate records from the get-go helps everyone stay on track and cuts down on the need for fixes and rework because things are done right the first time.
Plus, regulatory entities or certain clients may require documentation of your quality assurance and quality control program and processes.
Solution
Create custom digital forms in minutes using Tyfoom’s simple drag-and-drop builder. With Tyfoom, managers can distribute forms directly to their on-the-go workforce through the mobile app. Managers can also simplify form management by automating the delivery of mandatory reports and inspections.
To keep quality a priority, Geiger Ready Mix developed a paper form to help identify and resolve potential hazards, but the process proved cumbersome.
“Before we started using Tyfoom, the sales team and managers had to remember to complete the paper form, make sure they had the forms on them to do it, fill them out and then keep track of them until they got back to plant and could scan them and send them to me,” said Bob Wilhelmi, Safety Director.
With Tyfoom, the sales team can submit these forms digitally from their mobile devices in the flow of work, minimizing disruption.
“Before we started using Tyfoom that requires daily submissions, sometimes the sales team would forget and then send in two or three months’ worth of forms all at once,” said Wilhelmi.
Tyfoom documents company standard operating procedures and best practices within the app, boosting quality control and minimizing rework. And with offline mode, you never miss collecting crucial information no matter how remote the location.
#5 Poor Quality Materials / Dated Tools
Subpar materials and outdated tools are a recipe for disaster. Ensuring that all materials meet high standards before they’re used in a project can prevent the need for rework down the line. This includes thorough inspections and quality checks at every stage of the project.
Solution
Tyfoom ensures all employees know what materials, tools and equipment are approved. Workers can also inspect and document processes for quality assurance through the app.
Not only can companies easily digitize and collect inspections and quality checks through the Form Builder in Tyfoom, managers can also create QR codes to share essential information with employees.
QR codes can be generated and placed on equipment or at worksite locations. Users then simply scan the QR code from their mobile device to access this information, increasing compliance and making communication more efficient.
With Tyfoom, employees can quickly flag and notify managers of faulty or outdated equipment. Employees can also learn how to use new equipment through short videos by scanning the equipment’s QR code.
Flagging issues and learning proper use of equipment not only saves the company money on repair and replacement costs, but also creates a safer work environment, boosting employee morale and productivity.
Beat Construction Rework with Tyfoom
Construction rework can be a significant drain on any budget, but it doesn’t have to be inevitable. Rework in the construction industry is preventable. By tackling common issues like miscommunication, human error and incomplete records, companies can drastically reduce the need for costly rework.
Tyfoom makes it easy by streamlining communication, enhancing training, and improving record-keeping. With Tyfoom, employers can identify, document and put corrective actions in place to prevent error reoccurrence, boosting project efficiency.
Stop wasting time and money on rework. Strengthen your reputation as a quality builder and improve your bottom line by scheduling a call to speak with a Tyfoom training consultant today.