Quality failure could be costing the construction industry £2 billion every year

An in-depth report on the cost of quality in the UK’s construction industry could highlight the billions of pounds being lost to failures of governance, assurance and improvement.

The CQI Cost of Quality working group are producing the report. Chair of the group Daniel Keeling explains why the report is critical for the £100bn construction industry:

“There is very little analysis done on costs and failure, yet you are talking projects that are big money. The UK construction industry is worth £100bn each year, and if you take just a conservative estimate of 1-2% as a failure cost, you are talking of around £1bn to £2bn in the UK.”

For the next phase the CQI (Chartered Quality Institute) will be working closely with University College London (UCL) to analyse the cost implications. But there are other hurdles to tackle in the meantime. Confidentiality is an issue, as no organisation wishes to be ‘named and shamed’. Therefore harvesting data and making it non-attributable is important. Keeling added:

“This is the biggest issue. There is a lot of work done on defects, and the cost of defects, but when you talk to the contractors, many of whom are members of the working group, we found they were not going to be too open about it being publicised.”

Despite these challenges Keeling remains positive, highlighting the crucial outcomes for the industry:

“We think this will be of phenomenal interest to clients worldwide: a comprehensive report which can benefit all construction clients across the world.”