The Cost of Quality

Talking about the cost of quality typically makes people think about the pricetag associated with getting exactly what you want out of a new home build. There is, however, a whole other side to this train of thought: What is the cost of NOT building a quality product? What are the repercussions to taking shortcuts and paying less up front? Are they severe? Take into consideration a few key points drawn from a study performed by the Integrated Building and Construction Solutions organization:

Cost of quality can account for 8% - 15% of total construction loss

The cost of correcting deviations from a specification was 12% of a construction project's total cost

The cost of rework in commercial construction is 12.4% of total contract cost, and it’s 4.1% in residential construction

The cost of quality management is 1% - 5% of total construction cost