FAILURE COSTS

High failure costs are a problem for the entire construction industry. Yet there is among different parties in the construction a disagreement about the origins of failure costs. According to the developers it is created mainly by errors in the design and preparation. Solutions are being sought by all parties to better communication.

The big advantage of Carlisle Construction Materials is that we are present from design to realisation in the construction process and we can contribute at all levels.

DEFINITION AND CAUSES

Failure costs occur in all phases of the construction project, from architects to contractors. Yet the focus for contractors and subcontractors is especially in the implementation phase, however preparation in both the design and delivery phase is crucial in reducing costs.

When defining the amount of these costs, a distinction must be made between the actual costs and prevention costs. Contractors have relatively low costs of failure (5.3%) but high prevention costs (6.2%), total of 11.5% of failure costs. In this sub-total grade 8.3%.

TOP 3 CAUSES IN THE NETHERLANDS (source: BouwKennis June 2012)

DESIGN	INPLEMENTATION	PURCHASE
Lack of clarity in design (45%)	Poor work planning/scheduling errors (62%)	Incomplete delivery (41%)
Errors in design (36%)	Time constraints (41%)	Late delivery (40%)
Complexity of design (31%)	Demonstrable errors by site staff (35%)	Wrong delivery (38%)

There is drawn a top 3 about the causes (source: BouwKennis June 2012)

ADDED VALUE HERTALAN®

HERTALAN® as a manufacturer has valuable knowledge of the construction market and as part of an international company has access to resources which remain closed for other companies. We are present in the building chain, from design to implementation. Therefore we are able to promote integration and link parties together to assist in reducing potential failure costs.

Almost 60% of the contractor B & U indicates that working with regular partners is one of the solutions for dealing with failure costs. Furthermore, reliable suppliers considered to be essential: at purchasing, supply problem are mainly causing the failure costs.

Take our challenge and involve HERTALAN® early in the construction process.