Reducing rework in electric utility projects to protect your margins

Margins are tight in construction and rework costs are a serious issue for firms of all sizes. Research published in PBC Today shows that the average cost of rework can range from 5% to 20% of a project’s contract value. Even at the lower end, that’s an extra £50,000 of cost for every £1m of value.[1]

Utilities infrastructure is no exception. We understand this and have put processes and workflows in place to minimise rework and its costs – protecting your cash flow, margins and project viability.

Common causes of rework and failures on utility projects

Rework and failures on a utility project create obvious costs like extra labour and materials, but there are also indirect costs like repeated inspections and idle equipment. Then there’s the impact on the programme. If tasks are being repeated, it pushes other work back because everything is interconnected.

That’s especially true for utilities like electric networks which are the foundation on which the entire project turns. Get it wrong and delays can spiral. Rework can be due to:

• Poorly defined workflows
• Inconsistent quality of work
• Administrative delays
• Permitting delays
• Unreliable data
• Inaccurate reporting and inspections

There are always times when rework is unavoidable. Site conditions can change, plans can be tweaked – but many of the issues can be solved with processes and operations which eliminate those main causes.

Using digital systems and automations to prevent errors

We operate a standardised, integrated operational system which runs the entire project on a single digital platform – from the initial quote to the final energisation. All of our designs, document control, construction programming, procurement, sub-contractor management and everything else is done in one place.

Collating workflows enables us to automate large areas of our system, removing obstacles and human failure points. It also allows us to standardise our procedures on every job so there are no questions or debates around:

• What kind of systems we are going to use
• Who is going to implement which parts of the process
• Who takes the lead on the design and build elements
• What points we need to request information
• When fees are due, and what the fees are for
• How data is stored

The process is completely transparent and we will merge our project timeline with yours so you know exactly what is required and when.

Doubt and grey areas are where rework comes from when designing and building utilities infrastructure. If you do it separately, different parties will do things on their own time and in their own way.

Before you know it, you’re working with multiple construction programmes and different quality standards. Rework is the inevitable result – and it costs real time and money.  

Guaranteeing ‘first time’ quality in utilities infrastructure

The result of our approach is an absolute focus on getting as much as possible right first time. That approach to quality runs through our own operations and is also the standard we demand from our contractors.

Practical steps we take to ensure first-time quality include:

• Digital project management system to eliminate data loss, confusion, duplicated work and administrative delays.
• True consultation with clients at every stage to ensure what we are doing matches their plans and commercial goals.
• Regular meetings and site visits to monitor progress and make corrections as they are needed, rather than letting them become a larger problem.
• Giving clients access to our programme so they you understand what we are doing, when we are doing it and are able to arrange complementary works.
• Strong relationships with legal teams, local authorities and other parties involved in securing permits in a timely fashion.
• Trusted relationship with DNOs/IDNOs to speed up connection arrangements and negotiations, further reducing a potential source of delays.

All of the above help to limit rework and keep additional costs to a minimum on your project.

[1] https://www.pbctoday.co.uk/news/planning-construction-news/true-cost-of-construction-rework-why-getting-it-right-first-time-matters/166018/