1.

2 Aim
The main aim of this research is to investigate the cost of non-conformance within the
construction industry.

1.2.1 Objectives
The following are the main objectives this research will strive to answer:

• Define quality and non-conformance within the construction industry 1

• Examine the main root causes of non-conformance with client’s specification and 2
building standards within the construction industry.

• Identify and asses the cost implications as a result of non-conformance 3

• Assess the effects on the contractor and sub-contractor in the result of non- 4
conformance and defective works.

• Identify possible actions that could be taken to prevent non-conformance in

projects 5

Chapter 5 – Conclusion and Recommendations

5.1 Introduction
This chapter will endeavour to draw conclusions from the research undertaken. The section
will identify the objectives of this study on the cost of non-conformance and consider
whether these have been met. Furthermore this chapter will aim to make recommendations to
the main contracting organisation and to the construction industry as a whole.

5.2 Conclusions
The research undertaken involved primary research and an in detail literature review. Primary
research was a quantitative approach which involved data extracted from a quality
management system within a large contracting organisation. The data included 5000 non-
conformance items which were collated over a two-year period on various projects.

The first objective of this dissertation was to review and establish the definition of both
quality and non-conformance within the construction industry. This was successfully
1  achieved through the extensive literature review which effectively defined both quality and
non-conformance within the construction industry.

The second objective was to examine the main root causes of non-conformance with client’s
specification and building standard within the construction industry. It is clear from the
2 research the three main root causes of non-conformance are due to design, poor workmanship
and sub-contractor related problems. From the results of the data collected the total number
of non-conformances caused by these root causes made up over half of all non-conformance
items identified. Additionally within the literature review numerous authors recognised these
three root causes as being the main drivers of the occurrence of non-conformance. This
objective was successfully achieved.
 A third objective of this dissertation was to identify and asses the cost implications as result
of non-conformance. This objective was met through both the literature review and further
3  backed up from the results of the data analysis. The results highlighted the total cost
implications of non-conformance in various different projects over the two year period. As
many as 5000 items were recorded over a two year period with costs totalling over £6
million.

Additionally a further objective of this dissertation was to assess the effects on the
contractor and sub-contractor in the result of non-conformance and defective works. This was
4  successful achieved and was identified within the results, including highlighting both the cost
and time implications of non-conformance. The data analysed included a breakdown of the
costs associated with the non-conformance items to both the contractor and sub-contractor.
The cost implications to the main contractor differed significantly to the sub-contractor, with
the latter accounting for over half of the total costs. This would suggest that sub-contractors
are the cause of many non-conformances and thus suffer serious cost implications.
Nevertheless the main contractor is also suffering the cost effects of non-conformance. Costs
directly associated to the main the main contractors were around £2 million over a two-year
period. The cost of non-conformance is substantial and in order to reduce these costs the total
number of non-conformances should be reduced.
 
The final objective of this dissertation was to identify possible actions that could be taken to
prevent non-conformance in projects. This was successfully achieved through both the
literature review and results of data analysis. The results would suggest that in order to reduce
5  the occurrence of non-conformance and improve on quality levels efforts must be made to
improve working standards, sub-contractor problems and issues at the design stage. Solutions
to these problems highlighted in the literature review included ensuring efficient and effective
working procedures and introducing training at all levels. Improved communication is
essential at all levels within the project team and greater inspection and examination is
essential at the design stage of projects. Additionally effective management skills are vital to
achieving both greater quality and cost efficiency on projects, thus resulting in client
satisfaction. Furthermore the extensive literature identified that in order to reduce the
occurrence of non-conformance, which will then reduce the associated costs, quality
management systems need to be implemented. These systems are designed to ensure
efficiency and include improved training, enhanced working procedures and specifications.
The aim is to achieve client’s requirements and eliminate inferior working practices. This will
reduce costs and enhance quality on construction projects.

From undertaking this dissertation it became apparent that non-conformance continues to be a

problem within the construction industry and shows no signs of decreasing. Client’s
requirements are often not being met and defective work continues to arise in construction
projects resulting in non-conformance. An astounding number of non-conformances were
identified over the two year period within the large contracting organisation and the costs
effects were substantial as a result. The effects of non-conformance go beyond just money
and the data results from data analysis did not take into account the effect on client
satisfaction levels and image for the company. Measures must be put in place to ensure non-
conformance does not occur on projects and to improve on the levels of quality achieved. The
aim is to achieve client’s requirements, first time every time and to avoid the occurrence of
non-conformance and the costs associated with it.
5.3 Recommendations
This section outlines recommendations to the main contracting organisation and to the
construction industry as a whole in order to reduce the cost of non-conformance.

The recommendations to the main contracting organisation are as follows:

• Greater attention needs to be paid at the design stage of projects. Over 50% of the
total costs of non-conformance to the organisation stemmed from design problems.
Substantial training at this stage is required with more in depth scrutiny and
confirmation of the design.

• Poor workmanship accounts for over 25% of the total non- conformance items
identified. More emphasis must be put on staff supervision and training to try and
improve working practices. Efficient and effective working procedures will reduce the
overall number of non-conformances occurring on projects.

• It is vital for the main contractor to reduce the amount of time taken to rectify and
resolve non-conformance items. The results showed that as much as 900 days were
being taken to close out some non-conformance items, with significant cost
implications.

The recommendations to the construction industry as a whole are as follows:

• In order to reduce the costs associated with non-conformance, design poor

workmanship and sub-contractor related problems needs to be addressed. These are
the three main causes of non-conformance and have substantial cost implication.
Levels of training, procedures and practices must be improved.

• In order to meet client’s requirements and increase the levels of quality greater
attention needs to be given to quality management systems. They need to be
implemented in all projects in order to meet required quality standards, requirements
and specifications.

5.4 Further Research

This section identifies the various areas which can be further researched in order to advance
on the conclusions drawn from within this study. The topics for further study are:

• More depth into the cost of quality to the client, main contractor and subcontractor
within the construction industry

• How does non-conformance impact upon the client within the construction industry?

• Carry out research including extract data from a number of main contracting
organisations and compare the results.

• Do the effects of non-conformance within the construction industry go beyond just

cost implications?