The construction industry in Ethiopia is the major sector where public and private stakeholders are investing a huge amount of fund and it has a fundamental role in the socio-economic development of the country. The Ethiopian construction industry faces different challenges such as time delay, cost overrun and poor-quality construction. According to previous researches, rework is one of the primary factors contributing to these challenges. Hence, identifying the root causes and determining the possible measures of rework is mandatory to improve the cost and time performance of construction projects. Therefore, this research aims to identify the causes of rework, determine the impacts of rework on the performance of projects in terms of time and cost, and finally identify measures to minimize the occurrence of rework. A thorough literature review was done to identify the most important causes of rework and its impacts on project performance. Questionnaire surveys, case studies, and semi-structured interviews were used to collect the required data from the main stakeholders. The research revealed that electrical installation work, blockwork, sanitary work, finishing work, and plastering and painting work are the most frequented work categories that rework was experienced. Late material delivery, workmanship errors, design errors and omissions, late design changes by the client and the lack of skilled labors are the top five causes of rework in 40/60 condominium construction projects. Based on the two case studies, it was found that the rework occurred in different work categories increased the project cost by 0.95% and 1.42% of the total project cost to date and delayed the two projects by 109 and 64 days. The study also revealed that hiring qualified contractors and consulting firms, effective planning and scheduling, effective leadership/ management, preparing clear drawings and specifications, and effective material handling are the most important measures to minimize the occurrences of rework. Based on the findings of the study, it is recommended that all major parties should undertake a thorough review of documents and making critical supervision on each item of works. Also, the governmental bodies should take a huge responsibility in creating fully skilled manpower in the field through training and capacity building programs.