The hidden costs of failed building inspections
The tens of millions of dollars in avoidable costs caused by failed building inspections is money that could fund and build thousands of new homes, a construction industry consultant says.
The construction industry faces significant financial repercussions due to failed building inspections, according to Mark Kirby, a construction industry consultant. His research reveals that over 20,000 inspections fail annually, resulting in tens of millions of dollars in avoidable costs. Kirby surveyed more than 100 professionals in residential construction, including general managers, construction managers, and subcontractors, to uncover the systemic culture that accepts these failures as part of the normal building process.
In Auckland, about 160,000 inspections occur yearly, with nearly 800 happening daily, and up to 37 percent fail the initial inspection. Common reasons for these failures include plumbing and carpentry framing issues. Kirby attributes this problem to a policy shift in the mid-1980s that emphasized cost and speed over quality, leading to the infamous "build now, fix later" mindset.
This mindset has resulted in a $2.5 billion annual cost due to defects and rework. He argues that the root of the issue lies in the industry culture, rather than the actual defects, and that quality is the key driver of productivity. Kirby suggests that self-certification could help reform the system, emphasizing that the problem lies in the lack of a quality culture throughout the industry.
By focusing on quality from the beginning, the industry could fund and build an additional 13,000 homes, leading to increased productivity, economic growth, and societal benefits. Ultimately, the responsibility for ensuring quality inspections rests on the industry's shoulders, not the councils.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
