Quick Summary
- Industry research shows 5–15% of construction project cost is lost to rework
- 52% of rework is caused by poor project data and miscommunication (Autodesk/FMI)
- Design errors and coordination issues are the #1 cause of delays and cost overruns
- AI-powered plan review catches these issues before construction begins
When construction professionals talk about project costs, they often focus on labor, materials, and equipment. But there's a hidden cost that drains billions from the industry every year: rework. Multiple authoritative industry studies have quantified this problem, and the numbers are staggering.
What the Research Says: 5–15% of Project Cost Lost to Rework
The claim that 5–15% of construction project cost is lost to rework isn't anecdotal—it's backed by rigorous research from the industry's most respected institutions. Here's what the data shows:
Construction Industry Institute (CII)
CII is the gold standard in construction productivity research. Their landmark study on field rework found that rework averages 5% of total construction cost, with some projects experiencing up to 12–15%.
McKinsey Global Institute
McKinsey's major 2017 report "Reinventing Construction: A Route to Higher Productivity" found that rework accounts for up to 30% of construction tasks, typically equating to 5–15% of total project cost depending on project type and complexity.
Autodesk + FMI Report: "Construction Disconnected"
One of the most widely cited industry reports, this 2018 study found that 52% of rework is caused by poor project data and miscommunication. Rework costs averaged ~5% of construction spend across surveyed firms.
HKA CRUX Insight Report (2020–2023)
This global claims analysis examined over 1,400 projects worth $1 trillion+. It found that rework, design errors, and coordination issues are leading causes of delays and cost overruns, often adding 5–12% cost impact.
Ernst & Young (EY) Construction Analysis
EY's analysis on digital solutions for construction productivity found that rework costs commonly reach 10–15% of total project budgets, with significant opportunity for reduction through better technology adoption.
The Bottom Line
On a $50 million project, rework costs between $2.5M and $7.5M based on the 5–15% industry benchmark. That's money that could be profit—or reinvested in quality—instead of wasted on fixing preventable errors.
What Causes All This Rework?
The Autodesk/FMI study provides perhaps the most actionable insight: 52% of rework is caused by poor project data and miscommunication. This isn't about workers making mistakes in the field—it's about problems that exist in the documents before construction even begins.
Coordination Issues
When disciplines don't align—MEP vs structural, architectural vs civil—conflicts become field problems that require expensive rework.
Design Errors
Dimension conflicts, code violations, missing details, and specification mismatches that should have been caught during design review.
Poor Communication
Information that doesn't flow properly between stakeholders—design changes not communicated, RFI responses not implemented, revision confusion.
Other Causes
Material issues, craft skill gaps, scope changes, and unforeseen conditions account for the remaining rework.
The critical insight here is that the majority of rework—over 50%—is preventable through better document review and coordination. These aren't problems that require more skilled labor or better materials. They require catching issues in the drawings before they become field problems.
The Real Dollar Impact
Let's translate these percentages into real project dollars:
Rework Cost by Project Size
| Project Value | Low (5%) | Average (10%) | High (15%) |
|---|---|---|---|
| $10M | $500K | $1M | $1.5M |
| $25M | $1.25M | $2.5M | $3.75M |
| $50M | $2.5M | $5M | $7.5M |
| $100M | $5M | $10M | $15M |
| $250M | $12.5M | $25M | $37.5M |
Based on industry benchmarks from CII, McKinsey, Autodesk/FMI, HKA, and EY research.
Beyond Dollars: The Schedule Impact
The HKA CRUX research highlights another critical dimension: rework doesn't just cost money—it costs time. And in construction, time is money.
Schedule delays compound the direct rework costs with financing costs, lost revenue (for owners), liquidated damages (for contractors), and reputation damage (for everyone).
How AI-Powered Plan Review Prevents Rework
If 52% of rework stems from poor project data and miscommunication—and another 27% from design errors—then the solution is catching these issues before construction begins. This is exactly what AI-powered plan review does.
Cross-Discipline Coordination
AI reviews all disciplines simultaneously—architectural, structural, MEP, civil—identifying conflicts that would become field rework.
Dimension Consistency
Automatically checks that dimensions match across sheets, details, and schedules—eliminating a major source of field confusion.
Spec vs Drawing Validation
Catches mismatches between specifications and drawings before they become material issues or change orders.
Code Compliance
Identifies code violations before permit review—eliminating costly resubmittals and field corrections.
Calculating Your Rework Prevention ROI
Here's a simple framework to estimate what catching rework-causing issues could save on your next project:
Rework Prevention ROI Calculator
Example: $50M × 7.5% = $3.75M rework cost × 52% = $1.95M in preventable rework. Even catching 30% of that ($585K) represents massive ROI vs. AI plan review costs.
Taking Action on Your Next Project
The research is clear: rework is one of the largest preventable costs in construction. And the majority of that rework stems from issues that exist in the documents before construction begins.
The question isn't whether rework is costing your projects money—it is, guaranteed. The question is whether you're going to catch the document-level issues that cause it before they become field problems.
See What AI Would Catch on Your Next Project
Get a comprehensive review showing the coordination issues, code violations, and conflicts that would become rework if not caught now.
Conclusion
The 5–15% rework cost benchmark isn't a theoretical number—it's the documented reality of construction projects worldwide, validated by the industry's most respected research institutions. On a $50M project, that's $2.5M to $7.5M walking out the door.
The good news? More than half of that rework is preventable. By catching coordination issues, design errors, and document conflicts before construction begins, you can dramatically reduce rework costs and protect project margins.
The teams that invest in thorough pre-construction document review—especially AI-augmented review that catches issues humans miss—will have a significant competitive advantage in delivering projects on budget and on schedule.