The construction sector in the GCC is undergoing rapid transformation, driven by large-scale infrastructure, real estate and commercial projects.
And with billions of dollars invested in smart cities, transport networks, and urban developments, efficiency and cost control are more critical than ever.
Yet, one of the most significant but often overlooked challenges is construction rework—the need to redo or correct work due to defects, errors, or poor planning, according to Ibrahim Imam, the Co-Founder of PlanRadar, a leading construction and real estate management software company, with operations in over 75 markets across the globe.
Headquartered in Vienna, Austria, PlanRadar is an award-winning digital SaaS platform for documentation, task management and communication in construction and real estate projects.
On Rework, Imam said it is not just a minor setback; it is a major factor that inflates project costs, extends timelines, and disrupts productivity. In an industry where time and financial resources are tightly managed, understanding the extent of this issue is key to ensuring long-term project success, he stated.
The Financial Impact of Rework in the GCC
Construction rework is a multi-billion-dollar problem globally, and the GCC is no exception. Studies suggest that rework can contribute to 5-15% of total project costs, leading to annual losses worth billions of dollars in the region.
According to a report by the Construction Industry Institute (CII), rework accounts for approximately 9% of total project costs, with indirect costs further compounding financial losses.
For mega-projects in the GCC, even a 5% rework rate on a $1 billion project translates to $50 million in unnecessary expenses. In a region investing heavily in infrastructure, these losses have a far-reaching impact - reducing profitability for contractors, increasing financial risks for developers, and potentially delaying government-backed initiatives, stated Imam, who is also the group's CEO for Mena and Asia Pacific region.
Causes of Construction Rework
Several factors contribute to rework, many of which stem from inefficiencies in project planning and execution.
Inadequate design co-ordination often results in errors that must be corrected during later project stages, adding both time and cost, he noted.
Miscommunication among stakeholders - including developers, contractors, and subcontractors - leads to discrepancies that require extensive revisions. The use of substandard materials or poor workmanship can also necessitate costly replacements or modifications.
A lack of real-time data and inefficient documentation processes exacerbate the issue, as errors are often discovered too late to be rectified without significant rework.
According to Imam, manual processes that rely on paper-based reporting increase the likelihood of misinterpretation and oversight, leading to mistakes that could have been prevented with better oversight and data-driven decision-making.
Regulatory non-compliance is another key factor, as failure to meet building codes or safety standards often results in enforced corrections that contribute to cost overruns.
Case Studies and Real-World Examples
Across the GCC, several high-profile projects have suffered significant delays and cost overruns due to rework. While specific project details are often undisclosed, industry reports highlight cases where rework contributed to schedule delays of 10-20% and cost escalations of up to 25%.
The financial and operational consequences of rework extend beyond direct costs. Delays in construction schedules impact cash flow and return on investment for developers.
For contractors, additional labour and material costs strain profit margins. Supply chain disruptions can also arise when rework requires new materials or adjustments to already scheduled deliveries. In large-scale developments, these factors create a domino effect that affects multiple stakeholders, increasing overall project complexity.
The Role of Digitalization in Reducing Rework
One of the most effective ways to mitigate the impact of construction rework is through digitalization. The adoption of digital solutions enables real-time project tracking, automated defect identification, and improved collaboration among all stakeholders. By shifting away from traditional manual processes, construction firms can reduce the possibility of errors, enhance transparency, and optimize resource management.
Real-time data capture and digital documentation play a crucial role in identifying potential issues before they escalate into costly rework. Automated workflows allow project teams to streamline defect management, ensuring that issues are resolved at earlier stages. Digital collaboration platforms also improve communication, reducing the risks associated with misinterpretation and information silos.
With an increasing number of construction firms in the GCC embracing digital transformation, many have reported significant reductions in rework-related costs.
Digital defect tracking
Studies suggest that digital defect tracking, and quality control solutions can lead to a 30-50% decrease in rework, highlighting the financial and operational benefits of adopting modern construction technologies.
On the way forward, Imam said: "To address the growing issue of construction rework, the industry must embrace a proactive approach to quality control and efficiency. Early-stage project planning and better design coordination are essential to minimising scope changes that often lead to errors."
"The use of digital tools for defect tracking, documentation, and quality management can help streamline processes and reduce reliance on manual oversight," he explained.
Training and upskilling construction teams to follow best practices in quality control will further minimize errors, he noted.
Encouraging greater collaboration between contractors, consultants, and developers is also crucial in ensuring that all parties have access to the most up-to-date project data. A culture of transparency and accountability, supported by data-driven decision-making, will allow construction firms to mitigate risks and reduce unnecessary costs, he added.
According to Imam, the hidden cost of construction rework in the GCC is a growing financial burden that threatens project efficiency and profitability.
However, by embracing digital solutions, improving collaboration, and prioritizing proactive quality management, the industry can significantly reduce unnecessary expenses and ensure smoother project delivery, he stated.
As the region continues its rapid development, leveraging digital tools and adopting smarter construction management practices will be critical to achieving long-term sustainability.
By addressing the root causes of rework and implementing data-driven solutions, construction firms can enhance efficiency, improve project outcomes, and safeguard their investments in an increasingly competitive landscape, he added.
