TOTAL QUALITY MANAGEMENT, VOL. 13, NO. 5, 2002, 579 - 587

Quality in construction: the situation of the Chilean construction industry Alfredo Serpell, Hernan de Solminihac & Claudio Figari Department of Construction Engineering and Management, Ponti®cia Universidad CatoÂlica de Chile, Casilla 306, Santiago, Chile

abstract This paper presents the main outcomes of a study on the general characteristics of construction quality in Chile. The methodology used for this research was based on the application of semi-structured interviews made to a signi®cant number of professionals and representatives of every construction industry sector. The information so obtained provided a complete picture of the current situation of construction quality in our country. This work presents a general summary of the Chilean construction industry structure, the in¯uence that its main sub-sectors have on construction quality, and the principal identi®ed barriers to construction quality improvement in Chile. The main conclusion of this study is that improvement of the quality of the construction industry is possible but is not the task of a few people. It requires the coordinated and committed participation of all construction industry representatives. Introduction This work presents the results of a research project conducted in Chile to accomplish the following speci®c objectives (Serpell, 1994; Serpell et al., 2000). (1) To obtain the perceptions about quality from the main representatives of the construction industry. (2) To identify the main quality barriers that exist in this sector. (3) To establish a general diagnosis of the current quality level and problems in the construction industry. The methodology used in this research consisted of the application of semi-structured interviews made to a signi®cant number of representatives from di˛erent areas within the construction industry (Figari, 1996). The interviewees represented the main sub-sectors within the construction industry, according to the classi®cation and numbers shown in Table 1. This methodology was selected following a study carried out by Latham (1994) in the United Kingdom for similar purposes. In addition, an extensive bibliographical review (Figari, 1996) and an analysis of foreign experiences on construction quality were performed (Bonshor & Harrison, 1982; Vallage , 1993). Finally, consultations were made and partial results of the research were commented upon by a permanent panel of professionals brought together Correspondence: A. Serpell, Department of Construction Engineering and Management, Ponti®cia Universidad CatoÂlica de Chile, Casilla 306, Santiago, Chile. ISSN 0954-4127 print/ISSN 1360-0613 online/02/050579-09 DOI: 10.1080/0954412022000001992

© 2002 Taylor & Francis Ltd

580

A. SERPELL ET AL.

Table 1. Sample description. Number of interviews

Sector

Activity

Design

Contruction Firms

Engineering Architecture Consultants Building Rigging Civil Works Highways

Owners

Public

Housing Public Works City Councils

3 3 2

Private

Building Industrial construction

3 1

Suppliers

Manufacturers Distributors

6 1 4 5 3 1 1

Unions

4 1 3

Inspections Companies

3

Others Total

1 45

speci®cally for the purposes of this study, whose opinions and recommendations were incorporated with those resulting from the research team’s regular meetings. This paper ®rst gives a brief overview of the construction industry in Chile and its structure. Research results are presented thereafter. First, the in¯uence of the demand aspect on construction quality is analysed from the point of view of clients and users. Next, the in¯uence of the supply aspect, constituted by construction companies, subcontractors and construction labour is reviewed. Then, the sector corresponding to the suppliers of construction resources is discussed, including both materials and design suppliers as well as other industry-related entities such as: labour unions, external consultants and universities. A graphical summary of the problems detected in each category is presented using cause-e˛ect diagrams. Finally, the main barriers impeding the solution of the outlined problems are presented, as are the existing opportunities to overcome them. The Chilean construction industry Previous studies have de®ned the Chilean construction industry as constituted by three fundamental segments: supply, demand and the suppliers of construction resources (CICC, 1993). The ®rst involves construction companies and subcontractors. The second includes public and private clients as well as individual and collective users. Finally, the suppliers of construction resources include ®nancial institutions, manufacturers, materials dealers, and design and engineering companies, among others. In relation to the type of demand, this can be basically divided between building and non-building construction. Within building construction demand, over 100 000 housings are built every year, including public (70% of the total) and private construction. The state fosters demand through a wide range of housing subsidy programs. In the last few years, participation in these programs has greatly increased as they facilitate access to the homeowning process, allowing Chilean people to ful®l their desire to be home-owners.

QUALITY IN CONSTRUCTION

581

Concerning demand for non-building construction, investment projects for the period 1998 - 2001 will reach around US$25 billion. Among the incentives for investment in infrastructure, is one in which the Ministry of Public Works is incorporating private resources through a build-own-transfer method for new projects, especially in the highway construction sector. With respect to supply, complete information about the current number of companies participating in the Chilean construction industry is not available, but it is estimated at about 3500 construction companies, both contractors and subcontractors. Among these companies, 16% are considered large or medium and 84% are considered small (CICC, 1993). Generally, most of the smaller size companies are understa˛ed at the professional level and do not have a de®ned organizational structure. New construction companies enter the market continuously since, in practice, there are no barriers to newcomers entering the sector. In the last few years the presence of foreign companies has increased and continues to do so. Regarding materials suppliers, about 720 materials and supplies manufacturing companies exist. As a rule, this sector is very segmented by product type. When comparing the Chilean construction industry with construction industries in more developed countries, the Chilean construction sector is more intensive in the use of labour and less in the use of construction machinery and equipment. Workers’ training and educational levels are comparatively low. Finally, research and development investment levels are also lower in comparison with those of more advanced countries.

The in¯uence of demand on construction quality In construction projects, clients should assume responsibility with regard to the desired quality of construction projects. To do this, they should be aware of three aspects: to know their needs well and how to communicate them; to know how to request and control the process of achieving these needs during construction; and to be prepared to assume the eventual costs that better quality may require. From analysis of the interviews, it can be seen that clients have some di˛erences regarding their preparation in undertaking construction projects. These di˛erences have their origin in the varying levels of experience accumulated in carrying out construction projects. Some clients carry out construction projects regularly, while others do it sporadically. However, all of them present similar problems: short-term vision, limited knowledge of quality related issues, incomplete or improper de®nitions of project needs, little disposition in assuming the costs that increased standard levels imply and too many requirements for contractors considering the available resources. All these problems hinder the achievement of the desired quality. In reference to users, they have been classi®ed into three categories, determined by the degree to which they can in¯uence the quality of construction projects. Massive users that make use of infrastructure in an intermittent way do not participate in the project development, and so cannot help to improve its quality. They do not have, therefore, responsibility in subsequent project maintenance, in spite of the fact that their needs are those that should be satis®ed. Exclusive users, such as homeowners, can have much more in¯uence on works maintenance and, in fact, it is their responsibility. Their main problem is that they normally lack the knowledge of how to do it. Finally, productive users, those that use the construction infrastructure to develop production processes (generally of an industrial nature), have more opportunities to act on infrastructure maintenance but their capacity is wasted because most of the time their explicit needs are not clearly considered in the construction projects’ design

582

A. SERPELL ET AL.

Figure 1. Demand’s problems a˛ecting the quality of construction projects.

stages. Figure 1 shows an outline of the problems that the demand factor presents to achieving project quality.

The in¯uence of supply on construction quality Construction companies: general contractors and subcontractors According to the interviewees, general contractors make insu˝cient investments in personnel and equipment for quality improvement. Furthermore, construction professionals generally have an excess of responsibilities during the construction process, which prevents them from adequately performing the required quality control. At the organizational level, construction companies have quite rigid and centralized decision-making structures, delaying their responsiveness to market needs. On the other hand, little or incorrect use of available management tools is made at the construction projects level. The subcontractors possess characteristics more or less similar to those of the general contractors, posing additional relationship and competition problems amongst themselves within each project.

Labour Labour is recognized at all levels as a main factor within a construction activity, and a key factor in achieving ®nished construction quality. Consequently, it is necessary that workers have the knowledge, ability and desire to accomplish their tasks in accordance with stipulated expectations. (Serpell, 1993). However, according to the interviewees, workers do not have a favourable attitude with respect to active participation in quality improvement. The main reason for this is their perception that quality improvement will only provide concrete bene®ts for their employers, but not for them. On the other hand, the construction workers’ insu˝cient training and low educational levels are among the critical barriers to quality improvement. In addition to the foregoing, construction companies do not o˛er many training incentives due to high labour rotation and the lack of training programs adapted to the speci®c needs and characteristics of the construction activity. In Fig. 2, a summary of the problems presented by the supply factor in achieving high construction quality is displayed.

QUALITY IN CONSTRUCTION

583

Figure 2. Supply problems that reduce the quality of the works.

The in¯uence of construction resources suppliers on construction quality Materials and goods suppliers The study revealed that materials suppliers present extremely variable product quality, partly due to their low level of specialization. In general, within the construction industry, it is considered that material quality is only the suppliers’ responsibility. The suppliers are, however, faced with design requirements that specify custom elements that prevent greater industrialization of the sector. Furthermore, due to high competition, they frequently o˛er inferior quality products in order to reduce prices. Many contractors, always in search of the less expensive alternative, endorse this system. Contractors end up sacri®cing quality due to their unwillingness to pay more for better products. There is also a lack of clear regulations with respect to construction material quality.

Designers Designers should execute designs, both architectural and engineering, in accordance with the corresponding speci®cations for the building of construction projects. Architects should translate clients’ needs into structured spaces and volumes, with de®ned functional characteristics. Engineering designers should establish technical requirements for every distinct element of the construction project, as well as the methods needed to build them. As shown in the research, the main problem that architects present is the poor quality of their projects, which has a negative impact on construction quality. Most architectural designs lack constructional feasibility and standardization of the speci®ed elements. The cause of this can be found in the little practical knowledge the architects possess about construction processes and how designs are built. As far as the architects are concerned, engineering designers often produce inexact designs lacking in consistency and standardization with respect to construction elements or processes. As a rule, neither the architects nor the structural engineers consider the necessary constructional feasibility of their projects, due to the lack of integration they have with the contractors performing the actual task of construction.

Construction related standards and regulatory entities Among standards-related problems, research results point out the confusion that exists at the practical, application level of the di˛erent construction regulatory bodies. In many cases,

584

A. SERPELL ET AL.

regulations have limited applicability, and are very demanding and prescriptive in nature. This makes some of the norms di˝cult to comply with at the execution level. Furthermore, the norms are incomplete, and there are areas where they are insu˝cient, as in the case of standards relating to low-income housing. Finally, many standards are quite old and the updating process has not been widespread. This situation has been aggravated by a di˝cult, cumbersome and unstable standards development process.

Inspection The purpose of construction inspection in Chile is to verify that other representatives (designers, contractors, etc) actually satisfy the client’s real needs. To do so, inspection entity representatives should be present at the site from the beginning of the project. Currently, inspectors are encountering various di˝culties in ful®lling this task. First, the extension of construction projects with multiple, simultaneous work sites hinders e˛ective control. On the other hand, the sporadic presence of inspection entities on the job sites and the partial emphasis of what is inspected cause the inspected work fraction to be very small. Added to this, the lack of inspection personnel and the disparity of criterion leave users more unprotected, especially those with fewer resources. The generalized trend of late inspection incorporation in a construction project reduces its e˛ectiveness in error prevention. Thus, a general appraisal of inspection shortage and ine˝ciency is dominant within the construction sector.

Other entities There are still other entities that exercise an in¯uence on construction quality, without being direct construction industry representatives. Among them are entrepreneurial unions such as the CaÂmara Chilena de la ConstruccioÂn (Chilean Chamber of Construction), professional associations, independent consultants and universities. According to other industry representatives, the Chilean Chamber of Construction does not demonstrate an adequate understanding of construction quality. In their opinion, this institution has not created awareness and does not provide leadership among the sector’s professionals with respect to construction quality. There is a notable lack in the widespread di˛usion of endeavours already made to encourage participation in quality improvement initiatives. In relation to the professional associations of Engineers, Architects, and Civil Builders, none has shown a very active participation in quality improvement. These associations have little impact on their members and are not contributing to the di˛usion of important quality topics within the industry. Furthermore, for some time, there have been problems produced by certain voids in the de®nition and standardization of the roles and particular attributes of each kind of professional.

External consultants Independent quality consultants lack depth in the construction quality issue. Quality control system implementation methods provided by these advisors are still inadequate or too basic, and do not take into consideration the particular conditions of the construction activity and its speci®c requirements.

QUALITY IN CONSTRUCTION

585

Figure 3. Construction input’s problems that decrease its quality.

Universities With respect to universities, there is a de®ciency of academic depth and expertise in quality control issues when teaching future construction professionals. Furthermore, it is felt that many construction programmes have little relation to construction companies and their practical needs. Finally, the extent of their research results and achievements is very limited. Figure 3 summarizes the problems of the di˛erent representatives that provide construction supplies, be they products or services, in an indirect or direct way.

Barriers to construction quality improvement in Chile In addition to the above-mentioned problems, there are certain barriers that prevent construction quality development and implementation. These barriers prevent the solution of problems, decreasing motivation to create improvement initiatives on the part of the di˛erent industry representatives, and sometimes forming new con¯icts detrimental to the achievement of quality. Among these barriers, some originate in the construction industry itself, being sometimes almost structural characteristics of construction, while others come from outside the industry. Indicated below are those considered most relevant by the professionals interviewed. The ®rst barrier inherent in construction is the lack of stability of its activity level, at the global level as well as for each company. This reduces motivation to invest in improvement technology and systems because of uncertainty with respect to their potential utilization. The facility to enter and exit the Chilean construction market causes the creation and incorporation of many construction companies solely to take advantage of particular opportunities, but without a more long-term and permanent commitment to clients and the quality of work o˛ered. This situation is further aggravated by unclear and insu˝ciently de®ned responsibilities with respect to construction projects’ ®nished quality. Excessive personnel rotation prevents labour training and stops improvement projects. Among external barriers, without doubt the most important is the dependency on the country’s macroeconomic stability that a sector such as construction has, a dependency produced by the large quantity of resources required to carry out any project. Finally, there are several cultural and educational factors present in all activities at a national level. As a

586

A. SERPELL ET AL.

Figure 4. Barriers for the improvement of quality in Chilean construction.

general rule, people in the Chilean construction industry possess little motivation to improve quality, due either to ignorance or a lack of education and training. Figure 4 shows the di˛erent construction quality improvement barriers. Conclusions The main conclusions of this study, taken from research results, are as follows. (1) The construction industry in Chile presents various quality problems, of a very mixed nature. (2) These problems are not the responsibility of only one person or of a few of the di˛erent representatives that contribute directly or indirectly to project execution. All of the problems present, in greater or lesser measures, characteristics, practices or ways of undertaking projects that translate into the deterioration of the projects’ ®nished quality. (3) Aside from speci®c problems that have an individual responsibility, a large number of problems are due to the lack of integration between the di˛erent industry representatives and to the scarce cooperation and teamwork achieved in the development of construction projects. (4) There are, in addition to the factors that deteriorate construction quality, some barriers to the solution of problems that hinder quality improvement. Some barriers are inherent in the construction industry, while others are external to the industry.

QUALITY IN CONSTRUCTION

587

Recommendations Many recommendations have been derived from the research ®ndings of this study in order to address the individual problems. Some of the most important are as follows. (1) Integrate quality improvement e˛orts within the construction sector. In this regard, the Chilean Construction Institute is the institution where all the principal players of the construction sector are working together to address the main challenges of the construction industry. Particularly important is the participation of clients in this institution; given the important impetus they can give to the development of quality in the construction sector. (2) Train people at the management, professional and supervisory level in the concepts and tools of quality. (3) Improve and extend quality issues education at universities and technical institutes, where most of the construction personnel are trained. (4) Improve quality regulations and better de®ne responsibilities regarding defects in the quality of construction projects. In this respect, it is important to mention the new Housing Quality Law that was approved 5 years ago by parliament. The impact of this law has been a strong drive for quality awareness within construction companies. This law has also provided users with more power to demand better quality and better responses in the face of quality problems. Acknowledgements The authors gratefully acknowledge the Chilean Fund for Science and Technology, FONDECYT, and the CorporacioÂn de InvestigacioÂn de la ConstruccioÂn (Construction Research Corporation) for providing funding to support this research endeavour. References Bonshor, R.B. & Harrison, H.W. (1982) Quality in Traditional Housing. Vol 1: An Investigation into Faults and their Avoidance, Building Research Establishment Report. Department of the Environment (UK, HMSO). CICC (1993) Plan EstrateÂgico CaÂmara Chilena de la ConstruccioÂn (Strategic Plan of the Chilean Construction Chamber), CorporacioÂn de InvestigacioÂn, CaÂmara Chilena de la ConstruccioÂn. Chile. Figari, C. (1996) DiagnoÂstico de la calidad en la construccioÂn chilena. (Chilean construction industry quality diagnosis). MSc Thesis, Departamento de IngenierõÂa y GestioÂn de la ConstruccioÂn, Ponti®cia Universidad CatoÂlica, Chile. Latham, M. (1994) Constructing the Team (UK, HMSO). Serpell, A. (1993) AdministracioÂn de Operaciones de ConstruccioÂn (Construction Operations AnaÂlisis) (Chile, Ediciones Universidad CatoÂlica). Serpell, A. (1994) Calidad de la ConstruccioÂn en Chile (Construction Quality in Chile). Proyecto Fondecyt 1940609, Santiago Chile. Serpell, A., de Solminihac, H. & Figari, C. (2000) A general diagnosis of construction quality in Chile, Proceedings of the Second International Conference of the CIB Task Group on Construction in Developing Countries, Gaborone, Botswana, 15- 17 November, pp. 105- 112. Vallage, T. (1993) GeÂrer la qualite de la construction, Eyrolles (Ed.) (Paris, France).