A leading property developer announced a 76% loss of their profits due to re-work in 2022!

How much does re-work cost your business?

After signing the government’s Building Safety Pledge, Crest Nicholson had to change the cladding on their properties, losing 3/4 of their pre-tax profits.

Often, the repairs and defects on a project will not come to light until after completion.
Whether the site manager or customer points out the issues, they will need rectifying to a high standard, at a cost for you in materials, wages and time.

Although it is hard to plan for repairs and re-work, there are ways to help avoid these:

❇️Gather clear and concise instructions from your customer and have them fully approve plans before starting the project.

❇️ Ensure your team know what you expect from them from the beginning.

❇️ If any materials are even slightly damaged, do not use them (although this is a cost to you, it saves waste on re-work)

❇️Allow your customer to check work throughout the project to ensure any issues are picked up sooner rather than later.

What have you found is the most common re-work on your projects?

#construction #repairs #managementaccounting