http://hdl.handle.net/11189/1086 Sun, 16 Aug 2026 08:30:11 GMT 2026-08-16T08:30:11Z https://digitalknowledge.cput.ac.za:443/retrieve/1994/ http://hdl.handle.net/11189/1086 http://hdl.handle.net/11189/1094 Title: Evaluating the direct and indirect costs of rework in construction Authors: Simpeh, Eric Kwame; Ndihokubwayo, Ruben; Love, Peter E.D Abstract: Purpose of this paper This paper investigates the potential for compromise in quality as a consequence of direct and indirect costs associated with undertaking rework in a construction project. Design/methodology/approach A literature review was conducted on direct and indirect cost of rework and associated waste. A quantitative approach was adopted and data was collected via a questionnaire survey targeting purposively selected construction professionals in the Cape Peninsula metropolitan area. Descriptive (mean) and inferential (One way analysis) statistics were used to analyse the data. Findings A total of 78 firms participated in this study. It was found that the mean of direct and indirect costs of rework were 2.93% and 2.20% of the contract value respectively. In addition, it was established that the majority of the respondents do not always have systems in place for tracking and recording the incidence of rework and its cost impact, especially the indirect costs. The study also revealed that there are significant differences between respondents’ estimates for direct rework costs. The study revealed no significant difference between respondents’ estimates for indirect rework cost. Originality/value of paper To reduce these costs and therefore improve overall project performance, it is posited that design and construction organisations must improve their quality management practices by introducing a tracking mechanism for continuously quantifying the direct and indirect costs of rework, so that an understanding of their magnitude can be captured and effective containment strategies implemented. Sun, 01 Jan 2012 00:00:00 GMT http://hdl.handle.net/11189/1094 2012-01-01T00:00:00Z http://hdl.handle.net/11189/1093 Title: Variation orders on construction projects: value-adding or waste? Authors: Ndihokubwayo, Ruben Abstract: Purpose – This paper establishes the nature and impact of variation orders on the overall project performance in order to take proactive measures to reduce them. Methodology/Scope – Literature was reviewed on waste associated with variation orders, their origin agents and adverse impact. Quantitative and qualitative methods were adopted consisting of closed-ended and open-ended questions respectively and case studies on construction projects. Case studies consisted of the scrutiny of site instructions in order to discover those that contributed to waste. Findings – Generally it was found that a clause permitting variation orders was an essential feature of any construction project. The client was found to be the most predominant origin agent of variation orders as a result of unclear briefing and changing requirements. Inter alia, problems encountered when dealing with variation orders included time and cost determination which often could be sources of disputes between the contractual parties. The scrutiny of site instructions revealed apparent associated waste especially those involving alterations to completed work by having complete designs before work commenced on site variation orders could be reduced. Research limitations - The analysis of site instructions was done on a limited number of construction projects under construction. Practical implications - The study stimulates the debate over building activities that give rise to non value-adding costs or waste due to the occurrence of variation orders. Value - The findings of the study will increase the awareness of the impact of variation orders on overall construction project performance and will enable the development of proactive measures to reduce them. Description: Thu, 01 Jan 2009 00:00:00 GMT http://hdl.handle.net/11189/1093 2009-01-01T00:00:00Z http://hdl.handle.net/11189/1092 Title: Theories and concepts for an increased cost adjustment (ICA) formula for optimum cost escalation recovery Authors: Ndihokubwayo, Ruben Abstract: Purpose – Rising construction input costs have an adverse impact with regard to optimum cost reimbursement to contractors where contracts allow for increased cost adjustments on some basis. This paper has a two-fold aim, namely to establish the shortcomings of increased cost adjustment methods and to introduce an alternative method. Methodology/Scope – The literature on the shortcomings of existing increased cost adjustment methods was reviewed. The ICA formula was developed based upon a set of assumptions derived from a comprehensive breakdown of contract costs. Findings – After the development of the ICA formula, an illustrative case study comparing the ICA formula over other methods was done. The adjusted amount using the ICA formula was between the amounts obtained using the traditional method and the Haylett formula, hence the optimality of the ICA formula with regard to cost recovery. Research limitations – Given that this paper solely establishes theoretical concepts of the ICA formula. No field work was done, only an illustrative case study was done. Practical implications - The study recommends the use of ICA formula as an alternative method for valuation of fluctuating contracts given its suitability within the current macroeconomic situation. Value/Originality - The study contributes to the existing body of knowledge of both practitioners and academia. It is a scientific demonstration that theoretically and practically recognises the uniqueness of each construction contract with regards to increased cost adjustment. It is anticipated that the adoption of the ICA formula as an alternative method for price adjustment will result in balanced cost recovery/reimbursement between the client and the contractor. Thu, 01 Jan 2009 00:00:00 GMT http://hdl.handle.net/11189/1092 2009-01-01T00:00:00Z http://hdl.handle.net/11189/1091 Title: Waste reduction through lean and agile thinking - the case of variation orders Authors: Ndihokubwayo, Ruben Abstract: Purpose: This study establishes how waste minimisation arising from variation orders can be achieved through lean and agile thinking. Methodology: A literature review focused on exploring the definitions of lean and agile principles and their merits vis-à-vis the reduction of waste from variation orders. Closed-ended questions were presented to a purposive sample of registered project managers in South Africa. Statistical data were analysed using the SPSS package. Findings: The study identified that lean and agile managerial principles of waste reduction were compromised. Loopholes in applying lean principles included the ambiguous briefing of the scope of works and incomplete contractual documents before construction commenced on site. Hindrances in applying agile principles included slow decision and communication to incorporate variation orders into a schedule of works. Findings suggest that the adoption of lean and agile principles would reduce waste. Research limitations/implications: The convenience sample comprised registered project managers. A stratified sample including other professional competencies in the construction industry would possibly have generated more insight on the subject matter. Practical implications: The study increases the awareness of theoretical waste reduction principles that contribute to the prevention of variation orders and their optimum administration. Originality/value: The study explores lean and agile approaches which if adopted would reduce non-value adding activities and consequently the reduction of overall construction delivery costs. Description: Fri, 01 Jan 2010 00:00:00 GMT http://hdl.handle.net/11189/1091 2010-01-01T00:00:00Z