A methodology to identify and categorize costs of quality deviations in design and construction

Farrington, J J (1987) A methodology to identify and categorize costs of quality deviations in design and construction. PhD thesis, Clemson University, USA.

Abstract

To identify the cost of quality and quality problems, the construction industry must follow the lead of the manufacturing industry and develop a specific database suitable for analysis. It was a major objective of this effort to demonstrate that historical data can be used to identify the cost of quality problems in industrial construction projects. Fifty-five Construction Industry Institute (CII) member firms were surveyed with regard to project availability. Thirteen of the 48 offered projects were selected for initial review. The nine projects selected for final analysis were all fast track industrial construction projects with a different designer and constructor. The projects were all completed through construction within the last two years and had a Total Installed Project Cost (TIPC) of at least $5 million. Each project was also one of three types of construction: new, retro-fit or upgrade. A methodology was developed to categorize changes and deviations on the final nine projects. Using the methodology, analyses of all of the data revealed that an average of 12. 4% of the TIPC could be attributed to rework (including re-design), repair or replacement. Furthermore, design changes, errors and omissions averaged 78% of the total number of deviations and 79% of the total deviation costs, while construction deviations averaged 16% of the total number of deviations and 17% of the total deviation costs. Piping deviations were the most frequent in the nine-project averages, accounting for 25% of the total number of deviations, 24% of the total deviation costs and 3. 1% of the TIPC. Mechanical deviations were the second most frequently occurring deviations, with, on the average, 14% of the total number of deviations, 15% of the total deviation costs and 2. 0% of the TIPC. These averages supply a valid and conservative indication of the areas that caused the greatest number of deviations and had the greatest cost impact for different types of industrial construction projects. The results of the analyses performed as a part of this effort demonstrate that a methodology to categorize historical data can be used to identify the type, number and cost of correcting quality problems in industrial construction projects. (Abstract shortened with permission of author. )

Item Type: Thesis (Doctoral)
Thesis advisor: Burati, J L
Uncontrolled Keywords: designer; manufacturing; project cost; replacement
Index terms: accounting, repair, replacement, methodology, design change, manufacturing industry, rework, project cost, industrial construction, construction industry, design and construction, quality deviation, deviation, database, designer, Construction Industry Institute
Subjects: economics, industry analysis, data management, profession, financial and cost management, research methods, maintenance engineering, quality assurance, building construction, materials science, research organizations, economic analysis, contractual arrangements, operations management
Topics: Research Practice, Cost Management, Business Strategy, Roles and Professions, Digital Applications, Project Management, Engineering Principles, Procurement, Quality Management
Descriptive scope: 3 PCT

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