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Purpose – The purpose of this paper is to examine how effectively the cost appraisal system proposed measures the cost of poor quality (COPQ) in a construction project. The paper first formulates how COPQ can be measured and later clarifies the relationship between COPQ, labor productivity, and profitability. Design/methodology/approach – In order to measure COPQ, the researchers prepared data entry forms for recording COPQ items on a daily basis and formulated the cost contribution of lost material, lost man-hours, lost machinery hours, and lost overhead on the overall COPQ for the project. The proposed method was then applied in a case study. Findings – The results showed that, for the 60-days study period, COPQ decreased by about 24 percent while labor productivity and profitability increased by about 17 and 11 percent, respectively, after the implementation of COPQ measuring system. This study further supports the use of the COPQ system in construction projects as a mechanism to facilitate continuous improvement. Originality/value – COPQ is a major cost that is often ignored in construction projects due to the difficulty of measuring it. This paper presents a COPQ measuring and recording system capable of identifying COPQ. The implementation of the system is shown to increase productivity and profitability as demonstrated by the project used for the case study.

Construction organizations are constantly seeking ways to avoid failure and contain risks early on in the project life-cycle. One such approach to handle risks is through the allocation of 'suitable' contingency or reserve. However, when it comes to determining this suitable contingency fund, project personnel often face difficulty. In order to provide a logical basis upon which to allocate contingency to projects, a methodology that incorporates risk assessment is presented. Based on subjective judgment sought from the project personnel regarding the likelihood and severity of risks in their project, the degree of risk of the project is determined. Contingency funds are then allocated based on this quantified degree of risk. The developed methodology was applied to a hydropower project to check the adequacy of the contingency fund allocated. All the construction risks were identified for these projects. Their effects were quantified by determining the probability and severity using the Analytical Hierarchy Process (AHP). Ranging was also performed on Bill of Quantity items. An Activity=Risk factor matrix was developed, which was then used as an input to the Monte Carlo simulation to combine the risk distributions of various BOQ items. This resulted in a risk adjusted cost from which the contingency was determined.

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McKinsey Global Institute (2017) in its report states that construction-related spending accounts for 13% of the world’s GDP, but the sector’s annual productivity has only increased 1% over the past 20 years. As with all other industries, as years pass innovation is intended to increase and introduce much higher productivity levels and safer work environments. It has been more than a decade of BIM utilization in construction jobsites. The introduction of three-dimensional modeling was supposed to serve as the turning point regarding technology in construction, but have we truly seen the effective utilization of BIM in construction process? So, what are the roadblocks to a smoother transition from paper-based 2-D to electronic 3-D Models in construction job sites? Utilizing both a questionnaire survey and an in-depth interview technique, this study explored the reasons behind the slow adoption and apprehensions in adopting 3-D Models in construction projects. Ineffective and lack of training in BIM was found to be one of the reasons for less than slower adoption of the BIM in construction job sites.