ABSTRACT
Recent research in the United States had shown that inefficient management practices in projects in the construction industry amounted to extra costs of 16 billion dollars per year representing between 3 to 4% of the total turnover of the industry. Similar research carried out in the Netherlands has produced similar pattern. These extra and often unnecessary costs are normally referred to as failure costs. In 2008 the total estimated failure costs in the Netherlands was 11.4% of the industry’s turnover compared to 7.7% seven years earlier. Failure costs can be the consequence of rework as a result of failure to conform to the product requirements and specifications or due to inefficient processes and bad management practices.
