External Failure Cost in Construction Supply Chains

The effective measurement of cost of quality has an important role to play in driving quality. A handful of studies on the implementation of cost of quality in the construction industry have been undertaken with a good deal more published in other sectors. Cost of quality definitions, methods, and models are reviewed. The aim of this research is to understand how the complex interrelationships of construction supply chain members may influence the existence of external failure cost. A new study that focuses on the measurement of external failure cost during the posthandover stage of construction is proposed. An expert workshop and a trial questionnaire involving construction industry experts (both owners and their supply chains) show the various categorisations of external failure quality cost elements and the involved and compound nature of their measurement through the construction supply chain. Further research is proposed to appraise, quantify and align incentives and ultimately reduce the occurrences of failure.