Failure costs in construction is not something the industry likes to dwell on. Nevertheless, it is an issue that gives many a business owner a headache. These additional expenses gnaw away at the profit margins of construction companies, making almost every project less profitable than expected. So the key is to reduce these failure costs to the maximum extent possible.
What are Failure Costs?
Failure costs are unnecessary costs that usually only become apparent during execution. However, their cause can often be found in the preliminary process: during the design, development and planning phases of a construction project.
How do failure costs occur in construction?
Failure costs are costs incurred by such things as:
Mistakes made in:
het ontwerp,
de constructietekeningen,
de planning,
de inkoop,
de leveringen,
Inadequate materials management,
Inadequate inventory management,
Delayed deliveries,
