New subscriber and I love it, although it appears primarily commercial construction? I am in the homebuilding world but it appears so many of the issues are the same. There have not been good studies of rework in new home construction and I am in the process of putting together one with a strong University construction program. One thing I have studied a great deal and have nearly 5,000 data point on is "Wasted (or what should have been unnecessary) Trip Cost." We know that averages close to $15K per house very conservatively, and all-in including builder overhead and indirect is more like $20K. With construction hard cost averaging around $200K per unit these days (on a $400K home) that is 10%, So my question is, does your 9% number include the cost of extra trips to sites to do this work? I realize that on large commercial sites, many of the trades are there most days so on the surface it is not as big a deal, but since rework delays completion, by definition there are more trips. Please advise!
Yeah, my career has been solely in the commercial world so that is my primary focus. Although I am sure there are quite a few parallels to the residential world. I would be very interested to see what your residential rework study shows once you are complete.
As for your question on if the 9% covers extra trips, you are correct that on large commercial projects your plumber, for instance, could be onsite for a year. Obviously doing rework stops him from doing work "new" work. This in turn leads to longer schedule, working OT, or having to increase manpower to maintain schedule. One of the studies said that rework also results in about 9.8% schedule growth.
Obviously schedule growth has its own costs, including added overhead. That same study breaks down the total added costs into about half and half coming from direct and indirect costs.
New subscriber and I love it, although it appears primarily commercial construction? I am in the homebuilding world but it appears so many of the issues are the same. There have not been good studies of rework in new home construction and I am in the process of putting together one with a strong University construction program. One thing I have studied a great deal and have nearly 5,000 data point on is "Wasted (or what should have been unnecessary) Trip Cost." We know that averages close to $15K per house very conservatively, and all-in including builder overhead and indirect is more like $20K. With construction hard cost averaging around $200K per unit these days (on a $400K home) that is 10%, So my question is, does your 9% number include the cost of extra trips to sites to do this work? I realize that on large commercial sites, many of the trades are there most days so on the surface it is not as big a deal, but since rework delays completion, by definition there are more trips. Please advise!
First off, thank you and Welcome!
Yeah, my career has been solely in the commercial world so that is my primary focus. Although I am sure there are quite a few parallels to the residential world. I would be very interested to see what your residential rework study shows once you are complete.
As for your question on if the 9% covers extra trips, you are correct that on large commercial projects your plumber, for instance, could be onsite for a year. Obviously doing rework stops him from doing work "new" work. This in turn leads to longer schedule, working OT, or having to increase manpower to maintain schedule. One of the studies said that rework also results in about 9.8% schedule growth.
Obviously schedule growth has its own costs, including added overhead. That same study breaks down the total added costs into about half and half coming from direct and indirect costs.
Hopefully this answers your question.