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Journal cover: Managerial Auditing Journal

Managerial Auditing Journal

ISSN: 0268-6902

Online from: 1986

Subject Area: Accounting and Finance

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Auditing the indirect consequences of rework in construction: a case based approach

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Title:Auditing the indirect consequences of rework in construction: a case based approach
Author(s):Peter E.D. Love, (Department of Information Systems, Edith Cowan University, Churchlands, Perth, Australia)
Citation:Peter E.D. Love, (2002) "Auditing the indirect consequences of rework in construction: a case based approach", Managerial Auditing Journal, Vol. 17 Iss: 3, pp.138 - 146
Keywords:Construction industry, Contract, Defective premises, Indirect costs
Article type:Case study
DOI:10.1108/02686900210419921 (Permanent URL)
Publisher:MCB UP Ltd
Abstract:There is little known about the indirect consequences of rework in construction projects, especially the financial costs. Therefore, this paper uses examples from a case study to demonstrate the potential indirect consequences and costs that are associated with undertaking rework in building construction projects. A novel taxonomy for categorising the indirect consequences at an individual level, organisational level and project level is presented. Based on the findings from examples derived from the case study, it is suggested that the incidence of rework can have a multiplier effect of up to six times the actual (direct) cost of rectification. To reduce these costs it is concluded that design and construction organisations must improve their quality management systems by including a quality system for continuously auditing, analysing and presenting direct as well as indirect rework costs.

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