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Deficiency & Rework Management

Document Type: Procedure
Version: 1.0
Last Updated: February 2026
Distribute To: Superintendents, QC, Project Managers


Purpose

Establish procedures for identifying, tracking, and resolving construction deficiencies to minimize rework and protect quality.


What is a Deficiency?

Work that does not conform to:

  • Contract documents
  • Approved submittals
  • Industry standards
  • Building codes
  • Quality expectations

Cost of Rework

Direct Costs:

  • Labor to remove and redo
  • Replacement materials
  • Equipment time
  • Supervision

Indirect Costs:

  • Schedule delay
  • Disruption to other work
  • Management time
  • Relationship damage
  • Potential claims

Industry Data:

  • Rework typically 5-15% of project cost
  • Best-in-class: < 2%
  • Goal: < 1%

Deficiency Categories

By Severity:

CategoryDefinitionAction
CriticalSafety or structuralStop work, immediate fix
MajorSignificant non-conformanceFix before covering
MinorCosmetic or minorFix before completion

By Source:

SourceExamples
DesignErrors, omissions, conflicts
MaterialDefective, wrong, damaged
WorkmanshipPoor quality, wrong method
CoordinationConflicts, interference
CommunicationMisunderstood requirements

Deficiency Identification

Sources:

Proactive (Preferred):

  • Self-inspections
  • Supervisor walkthrough
  • QC inspections
  • Pre-pour/pre-cover checks

Reactive:

  • Owner/architect inspection
  • Third-party inspection
  • Testing failure
  • Complaints

Self-Inspection Process:

Before inspections by others:

  1. Foreman checks own work
  2. Superintendent spot checks
  3. Pre-inspection walkthrough
  4. Correct issues found
  5. Then request formal inspection

Deficiency Tracking

Deficiency Log:

================================================================
DEFICIENCY LOG
================================================================

Project: ___________________________________________________

================================================================

| ID | Date | Location | Description | Cause | Assigned | Due | Status |
|----|------|----------|-------------|-------|----------|-----|--------|
| D-001 | | | | | | | |
| D-002 | | | | | | | |
| D-003 | | | | | | | |

================================================================

STATUS CODES:
O = Open
IP = In Progress
C = Corrected
V = Verified
CL = Closed

================================================================

Deficiency Report

Non-Conformance Report (NCR):

================================================================
NON-CONFORMANCE REPORT
================================================================

NCR #: ____________ Date: ____________ Project: ____________

================================================================

IDENTIFICATION:

Location: __________________________________________________

Specification Reference: ____________________________________

Drawing Reference: _________________________________________

Discovered By: _____________________________________________

Description of Non-Conformance:
___________________________________________________________
___________________________________________________________

Photos Attached: ☐ Yes ☐ No

================================================================

CAUSE ANALYSIS:

Category:
☐ Design issue ☐ Material issue
☐ Workmanship ☐ Coordination
☐ Communication ☐ Other: _____________

Root Cause:
___________________________________________________________

Responsible Party:
☐ Self-performed ☐ Subcontractor: ________________________
☐ Supplier ☐ Design team
☐ Owner ☐ Other: _____________

================================================================

DISPOSITION:

☐ Rework (remove and replace)
☐ Repair (fix in place)
☐ Accept as-is (document justification)
☐ Reject/replace material

Corrective Action Required:
___________________________________________________________
___________________________________________________________

Assigned To: _______________________ Due Date: _____________

================================================================

VERIFICATION:

Corrective Action Complete: ☐ Yes ☐ No Date: _____________

Verified By: ________________________ Date: _______________

☐ Conforms to requirements
☐ Does not conform (additional action required)

================================================================

APPROVAL:

PM Signature: ________________________ Date: _______________

================================================================

Correction Process

Step 1: Identify and Document

  • Photograph condition
  • Document location
  • Note specification requirement
  • Determine cause

Step 2: Determine Disposition

  • Can it be repaired?
  • Must it be removed?
  • Is accept-as-is appropriate?
  • Who is responsible?

Step 3: Plan Correction

  • Scope of correction
  • Method to use
  • Resources needed
  • Timeline

Step 4: Execute Correction

  • Perform work properly
  • Use proper materials
  • Follow correct method
  • Document process

Step 5: Verify Correction

  • Inspect corrected work
  • Meets requirements?
  • Document acceptance
  • Close NCR

Subcontractor Deficiencies

Process:

  1. Document deficiency
  2. Notify subcontractor (writing)
  3. Allow time to correct
  4. Reinspect
  5. If not corrected:
    • Correct ourselves
    • Back-charge subcontractor
    • Document all costs

Back-Charge Documentation:

  • Original deficiency notice
  • Time allowed for correction
  • Evidence of non-correction
  • Cost of correction
  • Supporting receipts/records

Preventing Deficiencies

Proactive Measures:

MeasureImpact
Pre-installation meetingsClarify expectations
Mockups/samplesEstablish standards
First-work inspectionsCatch early
TrainingBuild capability
Clear communicationAvoid misunderstanding
Quality submittalsEnsure right materials

Quality Culture:

  • Set expectations
  • Reward quality
  • Address issues immediately
  • Learn from deficiencies
  • Continuous improvement

Rework Tracking

Track Rework Costs:

MonthRework CostTotal CostRework %
Jan
Feb
...
YTD

Analyze Patterns:

  • By cause category
  • By trade/subcontractor
  • By project phase
  • By specification section

Improvement Actions:

  • Address systemic issues
  • Training where needed
  • Process improvements
  • Vendor/sub evaluation

  • Inspection Procedures
  • Quality Plan
  • Punch List Management
  • Backcharge Procedure

Software Integration

BLDR Pro:

  • Deficiency tracking
  • Photo documentation
  • Assignment and follow-up
  • Reporting

Template provided by support.construction. Catch it early, fix it once.