What Is Really Causing Rework on Construction Projects?
Photo by Jakub Żerdzicki on Unsplash
Key Takeaways
Construction has an information problem. Buying more software without fixing how information flows will compound the issues, not solve them.
Treating information as critical infrastructure, with clear ownership, a single source of truth, and quality embedded into daily workflows, is what separates projects that perform from those that don't.
Technology without strategy amplifies problems rather than solving them; most firms invest heavily in digital platforms without ever capturing measurable business value.
The fastest path to protecting margin and reducing rework isn't another platform; it's fixing the information systems that sit underneath everything else.
Better Projects Start with Better Information
Construction has a technology problem. But it is not the one you think.
Work on any construction project today, and you'll find teams with every digital product imaginable: BIM software, cloud platforms, field apps, digital takeoff tools. Yet the same problems persist: decisions take forever, teams can't coordinate, and rework kills profit.
Here's why: companies keep buying software to fix information problems. Yet it is the way we collect and manage information, rather than the software we use, that is the problem. Information is spread across different systems, nobody trusts it, and teams can't share it. So every new software becomes another place to update, another version to check, another "source of truth" that isn't true.
It means more systems, more work, but with the same results.
What is causing rework and waste on construction projects?
The numbers paint a persistent picture. An Autodesk and FMI study [1] found that poor project data and miscommunication together drive 48% of rework on U.S. construction sites; 26% from poor communication and 22% from poor project data, translating to an estimated $31.3 billion in annual rework costs. More recent analysis confirms the problem hasn't improved: a 2025 report by Qualis Flow [2] found that 95% of construction deliveries contain incomplete, inconsistent, or inaccurate documentation, and 80% of contractors still lack structured systems to track delivery data.
At a global scale, Construction Dive reported [3] that bad data may have caused $1.8 trillion in losses worldwide in 2020, potentially responsible for 14% of avoidable rework (approximately $88 billion).
“For a contractor generating $1 billion in revenue, losses from bad data could reach $165 million, including up to $7.1 million in avoidable rework.” [3]
As we can see, it is a system problem rooted in how information is created, checked, shared, and used day-to-day across design, procurement, and site operations.
Why does adding more technology sometimes make things worse?
Adding software without establishing clear information standards, ownership, and workflows can actually multiply friction. Each new platform becomes another place to update, another set of versions to reconcile, and another channel through which errors can silently propagate across the project, which then compounds the very coordination problems it was meant to solve.
The evidence backs this up. Despite $50 billion invested in construction technology between 2020 and 2022, research from Klipboard [4] found that 73% of construction firms still fail to capture measurable business value from their digital transformation efforts. A key reason: software is routinely designed around generic project needs rather than the day-to-day realities shaping how contractors actually work, meaning adoption stalls before value is ever realised. Meanwhile, Deloitte's State of Digital Adoption in Construction report [5] found that a lack of digital skills remains the single biggest barrier to adoption, with 42% of businesses reporting their workforce isn't fully prepared to use the platforms they've already purchased.
The lesson: technology amplifies problems if there is no strategy behind it. Software that doesn’t embed quality into daily workflows becomes another obligation.
How should construction companies fix their information problems?
Successful organisations treat information like critical infrastructure, not a by-product of work. Here's what that looks like in practice:
Define what "good" looks like. Establish clear standards for accuracy, completeness, timeliness, and traceability. The construction professionals who always incorporate project data into decisions use strategies like standardising data collection and structuring it in a common data environment for centralised access.
Decide on a single source of truth. For each key dataset (drawings, RFIs, NCRs, programme updates, cost tracking, handover documentation, etc), establish one authoritative source and eliminate competing versions.
Embed quality into workflow. Build quality checks directly into daily processes so data quality improves as work happens, not through periodic cleanup. Example: "you can't close this RFI until the response is complete and traceable."
Focus on outcomes that matter. Target use cases that directly impact the bottom line: faster decisions, fewer RFIs, reduced rework, and cleaner handover to operations. If you can reclaim even 10% of the 14 hours per week [1] workers spend on avoidable issues, the ROI case is immediate.
What does this mean for project leaders and tech builders?
For contractors: If your projects are consistently slipping on time, struggling with coordination, or burning through margin because of rework, look upstream at information flow before buying the next platform. Fix ownership, workflows, standards, and habits first, and technology will finally start delivering the returns it promised. Organisations that implement formal data strategies stand to gain the most ROI from their technology investments.
For tech startups: The market doesn't need more features; rather, it needs better information infrastructure. The Future of Construction report [6] shows that over 70% of owners now expect real-time visibility into field progress through digital documentation, yet 62% of construction data still isn't used for decisions. That gap is your opportunity. Build products that make information reliable by default, design quality into core workflows, and become systems of record rather than just another integration.
The construction industry doesn't need more software. It needs better information systems that protect profit, reduce claims risk, keep projects moving, and finally deliver the returns that digital transformation has been promising for years.
Frequently Asked Questions
How can construction companies reduce rework?
The most effective approach is treating information as critical infrastructure. That is, establishing a single source of truth for key datasets, setting clear data quality standards, and embedding quality checks directly into daily workflows rather than relying on periodic audits or cleanup. Fixing how information flows across a project delivers faster, more measurable results than adding new software.
What is a common data environment (CDE) in construction?
A common data environment is a single, centralised platform where all project information (drawings, documents, RFIs, and programme data) is stored, accessed, and managed by all project stakeholders. Without one, teams default to parallel spreadsheets, disconnected email trails, and competing local versions; exactly the fragmented information flow that drives the coordination failures and rework costs explored in this article.
Why do construction technology investments often fail?
Because the problem they're trying to solve is rarely a software problem, but an information problem. When teams lack clear ownership of data, agreed standards, and workflows that enforce quality at the point of creation, new platforms simply become another place to update and another version to reconcile. Technology only starts delivering returns when the information infrastructure underneath it is sound.
Exelsiv Insight
At Exelsiv, we help construction businesses and technology companies build the information foundations that make projects run better. From asset data strategies to building automation and MMC configuration enablement. Better information isn't just a software problem; it's a commercial imperative.
Curious how stronger information systems could protect your margins and reduce rework risk? Get in touch with Exelsiv and let's talk about building smarter, together.
Resources:
[1] Autodesk & FMI. Construction Disconnected. Autodesk, 2018.
[2] Qualis Flow. The State of Data Quality in Construction Report. 2025.
[3] Construction Dive. Contractors Lost $1.8 Trillion Globally in 2020 Due to Bad Data. 2021.
[4] Klipboard. New Research Reveals 73% of Construction Firms Still Struggle with Digital Adoption. Construction Daily News, 2025.
[5] Deloitte. State of Digital Adoption in the Construction Industry. 2025.
[6] Raconteur. The Future of Construction Report. 2022.
