Abstract:
Construction projects are intricate and manifold in nature therefore achieving higher
quality standards has long been a problem. Several quality management techniques exist
in the literature to overcome this problem, cost of quality (COQ) is one of the emerging
technique adopted from manufacturing industry. For implementation of COQ in
construction, several studies have attempted to quantify different components of quality
cost using various methods but their main focus lies in visible failure cost i.e. tip of ice
berg. This research carries out a complete quantitative study of each component of
visible and as well the hidden quality costs, or the base of iceberg, in the construction
industry of Pakistan by applying the modified prevention appraisal and failure (PAF)
model on primary data collected from 25 building projects. The findings of the research
highlight the unfamiliarity and passive attitude of local construction firms towards
quality management systems, incurring higher failure cost as a result. Most part of this
cost remains hidden and unknown to the higher management, despite its severe impact
on project performance, customer satisfaction and organization reputation in a highly
competitive market place. Therefore, these costs must be eliminated. This is first of its
nature study in the context of local construction industry and recommends the
management strategies to knock out the failure cost.
