To meet the Tennessee Valley region’s growing demand for power, the Tennessee Valley Authority (TVA) is investing in existing assets and new generation. In fiscal year 2025, TVA invested more than $4.6 billion in capital investments and plans to invest $4.2 billion in fiscal year 2026. Due to potential risks to cost and schedule from rework in TVA projects, we performed an evaluation of contractor rework for Major Projects at TVA. The objectives were to evaluate TVA’s oversight of contractor rework and determine if rework was being handled in accordance with contract terms and conditions. Our scope included active projects in the implementation phase for TVA’s Major Projects organization.
We reviewed nine contracts associated with our sample of projects and identified rework was required for two. We determined the rework was handled in accordance with contract terms and conditions. Specifically, where defects were discovered, contractors took corrective actions to remedy the defects at its expense. However, we also identified a lack of guidance for oversight of rework because TVA’s project management Standard Programs and Processes do not define rework or provide any information on how rework should be documented and tracked.
