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Commodity Imports and Sourcing

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SDI Claims Observations

Breakdown of Losses by Trade Scope

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SFAA Direct Loss Ratio History

2007-2022 Analysis by Work Category

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SDI Claims Observations

Primary Cause of Default - % of All Notices by Reported Year

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Challenges extend beyond just cash flow strain…

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Unhealthy Growth

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Most Frequent Causes of Rework

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Rework and conflict resolution cost the US construction industry over $177 billion annually

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  • Direct Costs: Rework can account for 9% to 20% of a project's total cost
  • Extended Timelines: Approximately 30% of work at construction sites is rework, leading to substantial time extensions
  • Material Waste: Rework necessitates spending more on redundant materials
  • Profitability Impact: Rework can cause up to 300% productivity losses, reducing project profitability
  • Reputational Damage: Excessive rework can delay projects by nearly 10%, lowering customer satisfaction and damaging reputation
  • Safety Risks: Rework increases safety risks and construction injuries as crews rush to complete tasks within the revised timeline

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Financial Impact of Construction Rework

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1. Use digital solutions

2. Invest in integrated design

3. Spend more in preconstruction

4. Use quality subcontractors

5. Employ BIM during the design process, and beyond

6. Improve field-office communication

7. Set standards for work and processes

8. Invest in employee development

9. Constructability review

10. In-depth project planning

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10 Ways to Reduce Construction Rework

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