Abstract
Construction industry is one of the major industries in the economic growth of development countries especially in Egypt. It characterized by complex elements, interdependences, and inefficiency on its operations.Previous studies revealed that designs errors, omissions, poor quality material, are the causes of delay in projects and cost overrun. This paper will discuss the problem of poor project management in Egypt using literature and data from a set of interviews with expert construction managers. The main reasons for the poor quality of projects, delays in schedule, and cost overrun have been established from the outcomes of a survey undertaken and a series of interviews of experts. Also, these results used with system dynamics model to solve the rework problemdue to changes in construction phase,by application of VENSIM software. This model takes into account the impact of rework on customer satisfaction and the feedback on productivity. Also, quality and productivity are both vary along the project. In addition, the effect of moral, fatigue, overtime, and learning effect on both productivity and quality are considered. The model is validated with Rodrigues, Dharmaraj et al. model for base case. Results show good agreement with the Rodrigues model results for the base case. Also, results show that changes less than 50% of scope could be eliminated and get project to its rout. On the other hand, results revealed for changes more than 50% of scopethat project could not be finished at the planed schedule even after applying strategies to overcome these changes, and it`s better to terminate the project rather than struggle in delays and financial wastes.