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Quantifying the cost of quality in construction projects: an insight into the base of the iceberg

Author

Listed:
  • Nouman Khadim

    (University of Campania “Luigi Vanvitelli”)

  • Muhammad Jamaluddin Thaheem

    (Deakin University)

  • Fahim Ullah

    (University of Southern Queensland)

  • Muhammad Nateque Mahmood

    (Deakin University)

Abstract

Construction projects are complex endeavors where achieving higher quality standards is challenging due to the intrinsic difficulties and dynamic quality management processes. Several quality management techniques exist to overcome quality concerns, such as the cost of quality (COQ). However, implementing COQ in building construction is challenging due to the absence of a comprehensive quality cost-capturing system. Several studies have tried to quantify different quality costs but are mainly focused on visible failure cost—the tip of the iceberg while the base of the iceberg has rarely been explored. This study develops and quantifies each component of the visible and hidden quality costs—the base of the iceberg. Accordingly, a modified prevention, appraisal, and failure model is developed and applied to the primary data of 25 building projects. The findings highlight the unfamiliarity and passive attitude of the involved construction firms towards quality, thus, incurring higher failure costs amounting to over 12% of the total project cost. Most of this cost remains hidden as traditional accounting systems cannot capture it. Such costs must be eliminated by implementing COQ systems as utilized in the current study. Further, a quality costing framework is established for building projects and applied to the local construction industry to reduce construction failures and improve the quality performance of building projects.

Suggested Citation

  • Nouman Khadim & Muhammad Jamaluddin Thaheem & Fahim Ullah & Muhammad Nateque Mahmood, 2023. "Quantifying the cost of quality in construction projects: an insight into the base of the iceberg," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(6), pages 5403-5429, December.
    • Handle: RePEc:spr:qualqt:v:57:y:2023:i:6:d:10.1007_s11135-022-01574-8
    DOI: 10.1007/s11135-022-01574-8
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    References listed on IDEAS

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    1. Tiong Kung Leong & Norhayati Zakuan & Muhamad Zameri Mat Saman, 2014. "Review of quality management system research in construction industry," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 13(1), pages 105-123.
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    3. Peter Love & Heng Li, 2000. "Quantifying the causes and costs of rework in construction," Construction Management and Economics, Taylor & Francis Journals, vol. 18(4), pages 479-490.
    4. Yehiel Rosenfeld, 2009. "Cost of quality versus cost of non-quality in construction: the crucial balance," Construction Management and Economics, Taylor & Francis Journals, vol. 27(2), pages 107-117.
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