Poor, sub-standard construction quality can do more damage that just what the eye can see.
What do we mean by Cost of Poor Quality in construction?
It is the cost incurred when poor quality work in buildings has to be rectified to a satisfactory level. So, it is the financial loss that a contractor or developer has to bear due to construction failure, repair or rework and subpar work. It can range from 15%-40% of the business cost.
Why are we saying that Cost of Poor Quality is very high?
From structural defects that require the structure to be brought to the ground to smaller issues that need rectifying and rework, not paying attention to quality in the first place lead to serious consequences for you if you are a Developer.
Some Startling Figures that Illustrate Our Point –
- 6-15% of costs wasted on rework of defects detected late during construction.
- 5% of costs wasted on rework of defects detected during maintenance.
- 20-40% of all site defects happen due to errors during construction.
- 54% defects are due to human factors like poor workmanship or insufficient supervision.
- 12% defects are based on material and system failures.
Source – Cost of poor Quality in Construction, IOSR Journal of Mechanical and Civil Engineering
What are these issues that add up to the Cost of Poor Quality in construction?
Contaminated and low grade concrete, major cracks in walls and beams, bulging floor tiles, improper slopes on terraces – you must have heard of such construction problems.
Deficiencies in structural design, detailing, construction, material and maintenance, all these are major reasons that affect quality. There have been numerous instances where construction defects have cropped up even before the owners could settle in their new homes.
Loss of Reputation – Serious Fallout of Poor Quality
Construction defects can cost developers their precious clients and investors as they lose faith in the brand. Also, getting new customers interested in a building that has been repaired or rectified is an uphill task. Loss of customer confidence, investors trust and damaged reputation are all the intangible issues the company will have to address. Irate customers even take to social media to put out their negative reviews in public.
Tilted Building – Can it get any worse?
Imagine your residential building developing a tilt over the years to the point that it’s dangerous to live there anymore. This is the plight of the residents of one such 5 storied building in Kolkata that has received a notice from the corporation to either demolish or repair the structure. With the builder shirking all responsibility, saying it was lack of maintenance and not faulty construction, and the repair costs slated to be substantial, the residents are in a quandary.
Source – The Times of India
As degree of quality control increase, construction cost decreases as maintenance and rework cost, and time decreases.
Source – Paper on Analysis of Quality on Construction and Construction Cost, International Journal of Scientific Research and Engineering Development
Thus it’s proven that Construction Quality control is the answer to reining in costs arising due to poor quality. But quality adherence generally ranks low on the list of must- dos with construction companies, especially getting quality audited at every stage from Third Party Agencies.
RERA is Taking Quality Seriously
The Real Estate (Regulations and Development) Act 2016, (RERA) has taken this into consideration making it obligatory for Developers to make good the defects that arise within five years, free of cost. Maharashtra RERA is taking construction quality very seriously and has proposed a phase wise inspection of projects, including at the time of finishing before handing over possession to homebuyers, by Third Party Agencies. In April2024, it proposed that Developers should provide an annual self-declaration of quality assurance based on structural design, stability, testing, quality of input material, workmanship, and fire safety measures etc.
Here’s How You Can Stay Away from Cost of Poor Quality
With such proposals that could become mandatory in the near future, it is the time to be proactive about quality control as a Developer. Stringent quality audits by Third Party Agencies like CQRA can help you as a Developer mitigate all risks that come with compromised construction quality.
Rework costs, material wastage, damage to machinery, tools and structure due to poor workmanship, increased overheads, customer compensation and legal costs; all this is what poor quality costs. Add to this the loss of reputation, negative word of mouth among customers, reduced productivity, damaged investor confidence and you get the picture of what the real cost of poor quality is.
With CQRA as your trusted partner on your quality journey, you are assured of handholding at every stage of construction, making sure your team delivers the best in construction quality.
