🇦🇺Australia

Cost of Poor Quality

3 verified sources

Definition

Australian construction and IT installation contracts mandate detailed verification processes including Inspection and Test Plans (ITPs), hold points, witness points, independent verification, and as-built records to confirm compliance. Failure to properly verify installation quality results in non-conformances, defects requiring rework, and disputes over compliance documentation.

Key Findings

  • Financial Impact: AUD 20,000 - 100,000 per major project in rework, delays, and defect rectification; 10-20% cost overrun from poor quality verification[1][2][3]
  • Frequency: Per project milestone (design, pre-construction, execution, completion)
  • Root Cause: Manual verification processes lacking digital traceability lead to missed hold points, inadequate documentation, and undetected defects

Why This Matters

The Pitch: IT System Installation firms in Australia 🇦🇺 waste AUD 50,000+ per major project on rework and verification delays. Automation of Installation Quality Verification eliminates non-conformance risks.

Affected Stakeholders

Project Managers, Installation Supervisors, Quality Assurance Officers, Contractors

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Verification Cost Overrun

AUD 5,000-30,000 per project for IVB engagement and ITP documentation; 40+ hours per ITP matrix for complex scopes[2][3]

Capacity Loss from Verification Bottlenecks

15-25% capacity loss from idle equipment and crews at hold points; 2-4 week project delays per major verification cycle[1][2][3]

ATO Audit Failures from Poor Asset Documentation

AUD 20,000+ penalty per audit failure; 20-40 hours per manual reconciliation

Manual Inventory Reconciliation Delays

40 hours/year per facility; AUD 2,000+ labour cost at AUD 50/hour

Rework from Asset Tagging Errors

AUD 5,000/year rework costs; 10-20 hours per project fix

Fair Work Payroll Tax Risks from Untagged Assets

AUD 10,000+ penalty per breach; 2-5% overpayment on wages

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