The cost of quality is the total amount spent on making sure that a completed project meets the required quality standards. It includes the cost of preventing defects, detecting defects, and correcting defects identified during or after construction.
The cost of quality is an important aspect of construction project management, as it can affect the project’s programme, budget and overall success. It can be broken down into four categories:
- Prevention costs: the costs of activities undertaken to stop defects occurring in the first place. Examples of prevention costs in construction include quality planning, design reviews, training and process control.
- Appraisal costs: the costs of activities undertaken to detect defects during or after construction. Examples of appraisal costs in construction include testing, inspection and auditing.
- Internal failure costs: the costs of defects that are identified and corrected before the completed project is handed over to the client. Examples of internal failure costs in construction include rework, wasted materials and corrective action.
- External failure costs: the costs of defects that are identified after the completed project has been handed over to the client. Examples of external failure costs in construction include warranty claims, complaints and legal fees.
By managing the cost of quality, project stakeholders can make sure that the completed project meets the required quality standards and is delivered on time and within budget. This in turn helps to reduce the risk of rework, delays and disputes, and increases the overall success of the project.
