Introduction
At SARP, throughout our long experience in the construction industry, it has become clear how important high quality products are for a project, hence we strive to provide the market leading products to our clients.
The role of material quality in construction projects is critical, determining the overall project outcomes including build quality, project timelines, safety standards, and cost implications.
Despite this importance, there is a tendency for construction companies to opt for cheaper materials. A widespread mindset exists within the industry that price is the predominant factor, leading many buyers to select the lowest cost offering, even if it fails to meet their needs.
This article explores the motivations for such decisions, the potential implications, and the advantages associated with choosing high-quality products. It concludes with recommendations for encouraging the selection of high-quality products in the construction industry.
1. Rationale Behind the Selection of Low Quality Products
The selection of cheaper products for large-scale projects is often underpinned by multiple factors. Primarily, budget constraints dictate the range of products a company can afford. In the face of high competition, companies are motivated to reduce costs to remain competitive. Moreover, the prevailing short-term profit mindset often prioritises immediate cost savings over long-term quality, durability, and maintenance costs. Lastly, there is a prevalent misconception regarding the cost-quality relationship in construction materials; higher quality is often erroneously equated with prohibitively high costs. Two main factors we have identified as the predominant ones are the following:
1.1. Economic Considerations
In the backdrop of financial constraints and lean operational budgets, construction companies often gravitate towards cheaper products. The relentless pressure of maintaining profitability, especially in a competitive market with slim profit margins, makes low-cost materials an attractive option. Consequently, the decision to choose cheaper products is, in many cases, a financially motivated decision, driven by the need to keep the project within budget and to deliver a cost-effective product to the client. However, it should be noted that this leads to false economies.
1.2. Market Competition
In highly competitive markets, where companies are vying for contracts, one strategy is to reduce the estimated cost of projects to make bids more attractive. This often involves choosing cheaper construction products and materials, which in the short-term can result in a successful bid but may lead to compromised project outcomes.
2. Adverse Consequences of Low Quality Products: Case Study from Albania
The focus on cost-cutting, however, often results in significant issues during the construction process. According to a study by the American Society of Civil Engineers, around 40% of structures fail during the construction stage, with many of these failures linked to the use of poor-quality materials.
As SARP operates predominantly in Albania we have witnessed first-hand the detrimental consequences of using cheaper construction materials. In 2019, an earthquake struck Durres, Albania.
Following the earthquake, civil engineers from the European Union, the United States, and local experts assessed the structural integrity of buildings. They identified buildings that were structurally sound, those that were unsafe and required demolition, and those that merely needed replastering. Damaged structures deemed unsafe began to be demolished, some through remote control explosions by the Albanian army, with more to follow suit in the future
The ensuing building inspections revealed that poor quality of construction materials and lack of adherence to building codes were significant contributors to the substantial damage observed, which also led to arrests. This incident demonstrated the latent risks and potential long-term costs associated with using cheaper construction materials.
It became clear that initial cost savings from cheap materials can be offset by subsequent repair and maintenance costs, and in extreme cases, costs associated with disasters.
3. Perception of High Costs Associated with High-Quality Products
The perception that high-quality products lead to escalated project costs largely stems from the initial purchase price. High-quality materials typically carry a higher price tag than their cheaper counterparts, which can deter companies operating under tight budgets. However, this view is myopic as it fails to consider the long-term savings associated with lower maintenance costs, extended lifespan, and greater resilience to environmental stresses. Over the project lifecycle, high-quality materials can provide more value and prove more cost-effective.
4. Advantages of High-Quality Construction Products
Based on our experience at SARP, the use of high-quality construction products offers several benefits. These include a longer lifespan, improved safety, and increased project success. High-quality materials can also enhance a company’s reputation and reduce the likelihood of issues arising during the project’s life cycle.
Amongst the many benefits some have been elaborated below:
4.1 Durability
High-quality materials are typically characterised by superior durability, which directly translates to longer structural lifespan. This reduces the frequency of repairs and replacements, thereby minimising disruptions to usage and associated costs.
4.2 Reduced Maintenance Costs
Higher quality materials generally demand less maintenance, leading to significant cost savings over the long term. This is particularly relevant in large projects, where maintenance can constitute a sizeable proportion of the total lifecycle costs.
4.3 Enhanced Safety
The use of high-quality materials can enhance the safety profile of the constructed structures, lowering the likelihood of accidents or structural failures. This not only protects users but also shields the construction company from potential legal and reputation implications.
4.4 Increased Property Value
Structures erected using high-quality materials typically command higher property values. This can make the projects more appealing to potential buyers and result in higher returns for developers.
4.5 Environmental Sustainability
High-quality products often embody lower environmental impacts over their lifecycle in terms of energy use, waste production, and carbon emissions. In an era of increasing environmental consciousness, this attribute of high-quality products can be a significant advantage.
5. Encouraging the Selection of High-Quality Products: Recommendations for Construction Companies
In light of the potential benefits, it is imperative to foster the selection of high-quality products in construction projects.
At SARP, we work closely with our clients, on a daily basis and fully understand and appreciate their constraints. Mindful of that we ensure to instil a culture in the Albanian construction industry that encapsulates the full project lifecycle and does not focus only on aspect of the project. Hence, we share the following recommendations to them
5.1 Life-Cycle Cost Analysis
Construction companies should consider adopting a life-cycle cost analysis approach, which accounts for not only the initial costs but also the future costs including maintenance, repair, and replacement costs. This shift in focus from short-term costs to long-term value can yield a more accurate representation of the cost implications of materials.
5.2 Quality Assurance Mechanisms
Companies should leverage quality assurance mechanisms such as third-party certifications, laboratory tests, and supplier reputation to verify the quality of the products. This can help in making informed decisions and ensuring that the chosen materials meet the required standards.
5.3 Training and Awareness
Creating awareness about the benefits of high-quality materials and providing training on their proper use can enhance the likelihood of their selection. This can also empower employees and subcontractors to make better decisions in their respective roles.
5.4 Comprehensive Cost-Benefit Analysis
In addition to a life-cycle cost analysis, a comprehensive cost-benefit analysis should be conducted. This should account for factors like durability, maintenance, potential resale value, and environmental implications. Such a holistic evaluation can highlight the multifaceted advantages of high-quality materials.
5.5 Sustainable Sourcing
Construction companies should prioritise suppliers that provide high-quality, sustainable materials. This can contribute to both the quality and the environmental sustainability of the projects.
Conclusion
Although high-quality construction products might entail a higher upfront cost, the long-term benefits they offer in terms of durability, safety, sustainability, and reduced maintenance costs can outweigh these initial expenditures.
Shifting the focus from short-term costs to long-term value can optimise the decision-making processes within construction companies, leading to more successful and profitable projects.
High-quality construction materials can be pivotal in not only reducing project completion time but also enhancing business reputations and client satisfaction.
The advantages of high-quality materials are manifold and their selection should be actively encouraged in the construction industry.
