Failure costs

Within construction projects there can be many unforeseen costs and failure to quantify them or even recognise them can have unfortunate results which are clearly avoidable. This is a recognition of the downside of poor construction of a feasibility study and lack of attention to detail. There are likely to be downsides to parts of a project but by carefully including those possibilities and making allowance the negative effect can be anticipated and allowed for.

Typical reasons for failure includes;

  • Inefficient running of a building project;
  • Failure to monitor progress against targets;
  • Failure to meet the quality and time schedules;
  • Needless repair and replacement due to poor planning or management

The cost of failure is needlessly expensive and can increase costs in indirect ways. Contractors can see that unnecessary expense will be made and of course allow for them by including them in their contract price. Parties that can reduce and control these potential failure costs have a major advantage compared to their competition.

Understanding failure cost reduction

Failure costs are something that need to be controlled throughout an entire organization. This is not only in the implementation phase or design phase but the costs and benefits need to be quantified right through from the first design stages.  IGG has developed an ingenious methodology for reducing and preventing failure costs a process which is aimed at creating a better alignment between the different parties (supply chain management) and ensures effective, tangible and quantifiable  results.
This may seem almost obvious  but smart cooperation and coordination offers opportunities and even new technologies such as BIM options utilised correctly are making it increasingly possible to reduce failure. By encouraging this cooperation using the knowledge and experience of all parties within the team an active interplay between the parties ensures an optimisation of the process. By bringing together the right people structured the right way can hi-lite  potential failure and set in place measures to deal with the problem.
Would you like to reduce failure costs? We have a scheme for simply creating an overview to guide and hi-light potential areas for concern. Please contact our IGG team.



IGG Bointon de Groot

Adres : Prinses Catharina Amaliastraat 32
2496 XD Den Haag
Post : Postbus 85767
2508 CL Den Haag
Tel : 070 514 54 20
Fax : 070 514 32 31
E-mail :

Our partners

IGG Bointon de Groot is an active partner in the built environment. IGG follows
al trends and developments. Some of our important partners: