A General Diagnosis of Construction Quality in Chile

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1 A General Diagnosis of Construction Quality in Chile A SERPELL, H DE SOLMINIHAC and C FIGARI Department of Construction Engineering and Management Pontificia Universidad Católica de Chile Casilla 306, Correo 22, Santiago, Chile Aserpell@ing.puc.cl. 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 to a significant 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 influence that its main sub-sectors have on construction quality, and the main identified barriers for construction quality improvement in Chile. The main conclusion of this study is that improvement of quality of the construction industry is possible but is not the task of a few persons. It requires the coordinated and committed participation of all construction industry agents. Keywords: construction industry, construction quality, quality barriers, quality diagnosis, quality improvement. INTRODUCTION This work presents the results of a research work conducted in Chile to accomplish the following specific objectives: To obtain the perceptions about quality from the main actors of the construction industry. To identify the main quality barriers that exist in this sector. To establish a general diagnosis of the current quality situation and problems of the construction industry. The methodology used in this research consisted in the application of semi-structured interviews to a significant number of representatives from different areas within the construction industry (Figari, 1996). The interviewees represented the main sub-sectors within the construction industry, according to the classification and numbers shown in Table 1.

2 Table 1 Number of interviews by construction industry sectors Sector Activity Number of interviews Engineering 6 DESIGN Architecture 1 Advisors 4 Building 5 CONSTRUCTION Rigging 3 FIRMS Civil Works 1 Highways 1 Housing 3 OWNERS Public Public Works 3 City Councils 2 Building 3 Private Industrial 1 construction SUPPLIERS Manufacturers 4 Distributors 1 UNIONS 3 INSPECTIONS 3 COMPANIES OTHERS 1 TOTAL: 45 This methodology was selected following a study carried out by Latham in the United Kingdom for similar purposes (Latham, 1994). Besides, a wide bibliographical review (Figari, 1996) and an analysis of foreign experiences on construction quality were accomplished (Bonshor, 1982), (Vallage, 1993). Finally, consults were carried out and partial results of the research were commented with a permanent panel of professionals specifically conformed for this research, whose opinions and recommendations were incorporated, together with the ones that came out from the regular meetings of the research team. This paper shows a short review of the construction industry in Chile and its structure. Thereinafter, research results are presented. First, the influence of the demand side on construction quality is analysed from the point of view of clients and users. Next the influence of the supply side constituted by construction companies, subcontractors and construction labour is reviewed. Then, the sector corresponding to suppliers of construction resources is discussed, including both materials and design suppliers as well as other entities related to the industry like: labour unions, external advisors and universities. A graphical summary of the problems detected for each one of the categories is presented using cause-effect diagrams. Finally, the main barriers that affect the solution of the outlined problems are presented as well as the existing opportunities to overcome them. THE CHILEAN CONSTRUCTION INDUSTRY Previous studies have characterized the Chilean construction industry as constituted by three fundamental segments: the supply, the demand and the suppliers of construction resources (CICC, 1993). The first involves the construction companies and subcontractors. The second includes public and private clients as well as individual and collective users. Finally, the suppliers of construction resources are the financial institutions, manufacturers and materials dealers, labour providers, and design and engineering companies, among others. In Figure 1 a logical plan of the interaction of all these actors is shown, for which a short description is delivered below.

3 SUPPLIERS OF CONSTRUCTION RESOURCES Financial Institutions Manufacturers and Suppliers Labour Market Dealers and Distributors SUPPLY DEMAND Construction firms Subcontractors Clients Public sector Private sector Users Individual Collective Design and Engineering firms Figure 1: Logical plan of the construction industry in Chile. (CICC, 1993). In relation to the demand, this can be basically divided between building and non-building construction. Within building construction demand, over housings are built every year, including public construction (70% of the total) as well as private construction. The state promotes demand widely through different types of subsidies for housing. In the last years the interest for these instruments has greatly increased since most of Chileans want to have their own house. Concerning demand for non-building construction, investment projects for the period will reach around US$25 billion. Among the incentives for investment in infrastructure, the Ministry of Public Works is incorporating private resources through a build-own-transfer scheme for new projects especially in the highway construction sector. With respect to the supply, there is no complete information about the current number of companies that participate in the Chilean construction industry, but it is estimated in a number of about 3,500 construction companies, both contractors and subcontractors. Among them, 16% are considered large or medium and 84% are considered small (CICC, 1993). Generally, most of the smaller size companies are understaffed at the professional level and do not have a defined organizational structure. New construction companies enter the market continuously since in practice, there are no barriers to new agents entering the sector. In the last years the presence of foreign companies has increased and continues to do so. Regarding materials suppliers about 720 materials and supplies manufacturers companies exist. As a rule this sector is very segmented by product type. When comparing the Chilean construction industry with the 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 equipments. Concerning workers training and education, levels are comparatively low. Finally, research and development investment levels are also comparatively lower than those of more advanced countries. THE INFLUENCE OF THE DEMAND ON CONSTRUCTION QUALITY In construction projects, clients should assume the leadership regarding the required quality of construction projects. To do this, they should care about three aspects: to know well their needs and how to communicate them, to know how to request and control the achievement of these needs during construction, and to be prepared to assume the eventual initial costs that a better quality could require.

4 From the analysis of interviews, it can be seen that clients have some differences regarding their preparation to undertake construction projects. These differences are originated by the various levels of accumulated experience 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, scarce knowledge of quality topics, incomplete or improper definition of project needs, low disposition to assume 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 classified in three categories determined by the degree at which they can influence the quality of construction products. Massive users that make use of infrastructure in an intermittent way do not participate absolutely in the project, and they cannot help to improve its quality. They do not have, therefore, responsibility in the subsequent maintenance, in spite of the fact that their needs are the ones that should be satisfied. Exclusive users like housing owners can have much more influence on works maintenance and in fact it is their responsibility. Their main problem is that they normally lack the knowledge on how to do it. Finally, productive users, the ones that use construction infrastructure to develop productive processes, in general of industrial character, have more opportunities to act on infrastructure maintenance but their capacity is wasted because their explicit needs are not clearly considered in the design stages of construction projects most of the times. Figure 2 shows a sketch of the problems that the demand presents for projects quality obtainment. OWNERS Short term mentality Scarce knowledge about quality Poor definition of needs Don t assume the costs Too many requirements Scarce participation Low final quality of construction work Poor communication Scarce knowledge Lower service quality PRODUCTIVE USERS OTHER USERS Figure 2: Demand s problems that affect the quality of construction works. THE INFLUENCE OF THE SUPPLY ON CONSTRUCTION QUALITY Construction companies: general contractors and subcontractors According to the interviewees, general contractors make low investments in personal and equipment to improve quality. Furthermore, construction professionals generally have an excess of responsibilities during construction that prevents them to adequately carry out the required quality control. At organizational level, construction companies have quite rigid and centralized decision structures, a fact that delays their responses to market needs. On the other hand, there is few or improper application of management tools at the construction projects level. The subcontractors, having characteristics more or less similar to those of general contractors, present relationship and competition problems among them within each project.

5 Labour Labour is recognized at all levels as a main factor within construction activity, and a key factor for achieving construction final quality. For this, it is necessary that workers want, know and can accomplish their tasks according to what is expected from them (Serpell 1993). However, according to the interviewees, workers do not have a favourable attitude to actively participate in quality improvement. The main reason of this attitude is their perception that quality improvement will not provide clear benefits for them but only for their employers. On the other hand, the scarce training and low educational levels of construction workers is one of the critical barriers for improving quality. Added to the foregoing, construction companies do not have much incentive to increase training due to the high rotation of labour and to the lack of training programs adapted to the needs and specific characteristics of the construction activity. In Figure 3 a summary of the problems presented by supply for obtaining high construction quality is displayed. Construction Manager Excess of responsibilities Competition problems Site interaction problems Subcontractors General Contractors Very rigid organizational structures Low investment in personnel Reduced investment in equipment Low educational level Scarce training Negative attitude Labour Lower quality of construction work Figure 3: Supply problems that reduce the quality of the works. THE INFLUENCE OF CONSTRUCTION RESOURCES SUPPLIERS ON CONSTRUCTION QUALITY Materials and goods suppliers The study revealed that material suppliers present a very variable quality of their products due in part to their low level of specialization. In general, within the construction industry it is considered that materials quality is only the responsibility of suppliers. However, they face design requirements that specify "tailor made" elements, which prevents a greater industrialization of the sector. Furthermore, due to high competition they often offer inferior quality products to be able to reduce prices. Many contractors that always seek for the less expensive alternative endorse this system. Because of this, contractors sacrifice the quality of what they are buying or are not willing to pay something more for better products. Also, there is a lack of clear regulations referred to construction materials. Designers They should accomplish designs, both architectural and engineering, with the corresponding specifications for the materialization of construction works. Architects should translate clients needs into structured spaces and volumes, and defined functional characteristic. Engineering designers should establish technical requirements of the different elements of the construction work, as well as the way to materialize them.

6 As found in the research, the main problem that architects present is the poor quality of their projects, which negatively impact the quality of construction. Most of the architectural designs lack constructability and standardization of the elements they specify. The cause of this would be found in the little knowledge they have about construction processes and how designs are materialized. As far as they are concerned, engineering designers often deliver designs that are inexact and with little consistency and standardization concerning construction elements or processes. As a rule, neither the architects nor the structural engineers consider the necessary constructability of their projects due to the low integration they have with the contractors that carry out the construction work. Construction related standards and regulatory entities Among standards related problems, research results emphasize the confusion that exists in the level of application of the different construction regulatory bodies. In many cases, regulations present scarce applicability, are very demanding and are prescriptive in nature. This causes that some of the normative is difficult to comply with at the execution level. Furthermore, the normative is scarce and there are areas where the normative is not sufficient as in the case of low-income housings related standards. Finally, many standards are quite old and their eventual updating has not been widely spread. A development process of standards that is difficult, cumbersome and unstable has aggravated this. Inspection The purpose of construction inspection in Chile is to check that other agents (designers, contractors, etc.) actually satisfy the client s real needs. To do this, it should be at the site since the beginning of the project. In this task, inspectors find various difficulties currently. First, the extension of construction projects with many simultaneous work fronts hinders control. On the other hand the sporadic intervention of inspection in the works and the partial emphasis of what is inspected cause the inspected work fraction to be very small. Added to this, the lack of sufficient inspection personnel and the disparity of criteria leave users more unprotected specially those with fewer resources. The generalized trend of a late incorporation of inspection into a construction project reduces its effectiveness in failure prevention. Thus, a general appraisal of shortage and inefficiency of inspections is dominant within the construction sector. Other entities There are other entities that yet, without being direct construction agents, influence its quality. Among them are entrepreneurial unions such as the Cámara Chilena de la Construcción (Chilean Construction Chamber) and professional associations, independent advisors, and universities. According to the other industry agents, the Chilean Construction Chamber does not show a sufficient understanding of construction quality. According to them, this institution has not created conscience and does not provide leadership within professionals of the sector regarding construction quality. It is noted a lack of diffusion of the efforts already accomplished to get everybody to participate in quality improvement initiatives. In relation to professional associations of Engineers, Architects, and Civil Constructors, neither one has a very active participation in quality improvement. They have little impact on their associates and are not contributing in the diffusion of important quality topics to the industry. Furthermore, from some time on there have been problems produced by some emptiness in the definition and normalization of the roles and particular attributes of each kind of professional.

7 External advisors Independent advisors on quality lack deepening in the topic of construction quality. Methods for the implementation of quality systems provided by these advisors are still inadequate or too basic, and without taking into consideration the particular conditions of the construction activity and its specific requirements. Universities With respect to universities, there is a lack of a deeper and better teaching of quality topics for professional training of those who will work in construction. Furthermore, it is felt that many construction programs have little relationship with construction companies and their practical needs. Finally, they have a very scarce diffusion of achievements and results of their research efforts. Figure 4 summarizes the problems of the different agents that provide supplies to construction activity, through products or services, in an indirect or direct way. DESIGNERS Low constructability Scarce standardization Inexact designs Scarce construction knowledge Scarce integration with contractors Confusion in levels of application Difficult development process Difficult to comply with NORMATIVE Obsolete Scarce MATERIALS SUPPLIERS Lack of normative Little specialization Product variability Extension of the works Parcial emphasis Sporadic intervention Late incorporation Scarce INSPECTION UNIVERSITIES Lack of methods for construction quality UNIONS Lack of quality leadership Lack of diffusion Reduced impact Lack of quality courses Scarce diffusion of results Little relationship with construction companies Decrease of works quality EXTERNAL ADVISORS Figure 4: Construction input s problems that decrease its quality. BARRIERS FOR CONSTRUCTION QUALITY IMPROVEMENT IN CHILE In addition to the above-mentioned problems, there are certain barriers that prevent construction quality development and implementation. Barriers act by preventing problems solutions, subtracting motivation to improvement initiatives of the different agents, and sometimes creating new conflicts that negatively influence the achievement of quality. Among these barriers, there are some originated in the construction industry itself, being sometimes almost structural characteristics of construction, while others come from outside the activity. Below are indicated those, which, according to the judgement of the professionals interviewed are the most relevant. The first barrier inherent to construction is the lack of stability of its activity level, at the global level as well as for each company. This reduces motivation to investments in technology and systems for improvement because of the uncertainty with respect to its potential utilization. The easiness of entry and exit of the Chilean construction market causes that many construction companies are created and incorporated into the activity only for taking advantage of particular opportunities but without a more permanent commitment with clients and with the quality of the work offered. This factor is increased because responsibilities with respect to construction products final quality are not clear and insufficiently defined in its scope and consequences. Personnel excessive rotation prevents labour training and stops improvement projects.

8 Among external barriers, without doubt the most important is the dependency on the country macroeconomic stability that a sector like construction has due to the high quantity of required resources to carry out any project. Finally, there are several cultural and educational factors that are present at national level and in all activities. Construction people in Chile are little motivated for quality as a general rule, either by ignorance or by lack of education and training. In Figure 5 there is a diagram of the different barriers for improvement of construction quality in the form of walls along the road to the solution of the outlined problems. Improvement of quality in construction Construction industry (Inherent barriers) Culture of poor motivation for quality Easy of entry and exit in construction market Lack of stability of work level Little clarity in responsibility Excessive rotation of personnel High dependency on macro-economic stability Construction quality problems Figure 5: Barriers for the improvement of quality in Chilean construction. CONCLUSIONS The main conclusions of this study, from what was indicated by interviewees as well as by the different consulting groups, are the following: Construction industry in Chile presents various quality problems, of very assorted nature. These problems are not the responsibility of only one person or some of the different agents that contribute direct or indirectly to the materialization of the works. All of them present, in more or less measure, characteristic, practices or ways of undertaking projects that are translated in a deterioration of works final quality. Aside from specific problems that have an individual responsibility, a large part of these are due to the lack of integration between the different agents and to the scarce cooperation and teamwork achieved in the development of construction projects.

9 There are in addition to the problems that deteriorate construction quality, some barriers for the solution of them that hinders quality improvement. Some of them are inherent to construction industry, and others are external to construction. RECOMMENDATIONS Many recommendations have derived from the research findings of this study to address the individualised problems. Some of the most important are as follows: 1. To integrate the efforts for quality improvement within the construction sector. On this regard, the Chilean Construction Institute is the institution where all the principal actors 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 impulse they can give to the development of quality in the construction sector. 2. To train people at the management, professional and supervisory level in the concepts and tools of quality. 3. To improve and extend the quality education at universities and technical institutes where most of the construction personnel is formed. 4. To improve quality regulations and define in a better way the responsibilities regarding quality failures of construction products. In this respect is important to mention the new Housing Quality Law that was approved 5 years ago by the parliament. The impact of this law has been a strong drive for quality concern within construction companies. This law has also provided users with more power to demand better quality and better responses in front of quality problems. ACKNOWLEDGMENTS The authors gratefully acknowledge the Chilean Fund for Science and Technology, FONDECYT, and the Corporación de Investigación de la Construcción (Construction Research Corporation) for providing funding to support this research effort. REFERENCES 1. 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. Ed. HMSO. U.K. 2. CICC (1993) Plan Estratégico Cámara Chilena de la Construcción (Strategic Plan of the Chilean Construction Chamber), Corporación de Investigación, Cámara Chilena de la Construcción. Chile 3. Figari, C. (1996) Diagnóstico de la calidad en la construcción chilena. (Chilean construction industry quality diagnosis) M.Sc. Thesis. Departamento de Ingeniería y Gestión de la Construcción, Pontificia Universidad Católica. Chile. 4. Latham, M. (1994) Constructing the team. Ed. HMSO. U.K. 5. Serpell, A. (1993) Administración de Operaciones de Construcción (Construction Operations Analysis. Ediciones Universidad Católica. Chile. 6. Serpell, A. (1994) Calidad de la Construcción en Chile. Proyecto Fondecyt , Santiago Chile. 7. Vallage, T. (1993) Gérer la qualité de la construction. Ed. Eyrolles. Paris, France.

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