Home » Quality management is essential, yet uneven standards reduce profits

Quality management is essential, yet uneven standards reduce profits

by Simon Foulds

New industry research has shed light on a growing contradiction within construction quality management. While most firms view quality assurance and quality control (QA/QC) as mission-critical, inconsistent standards are quietly undermining profitability.

A new study by PlanRadar, a platform for digital documentation, communication and reporting across construction, facility management and real estate projects, reveals that although more than 70% of construction companies initiate QA/QC from day one, the majority (77%) still face inconsistent documentation across projects, sites and trades. The result is a widespread and costly fragmentation of quality processes, one that pushes costs into the shadows and leaves projects exposed to cascading disruption, rework, and disputes.

Inconsistent QA/QC is eroding margins across construction

The PlanRadar Construction QA/QC Impact Report outlines how variable standards translate directly into reduced visibility and lower profitability. Over half (56%) of respondents identified “different standards across sites and trades” as the biggest challenge, while 55% admitted they lack enforceable QA/QC processes. Without a common framework, cost visibility quickly evaporates, and companies without defined QA/QC systems are nearly twice as likely to lack visibility of rework costs (43% vs 22%).

This lack of visibility doesn’t just obscure financial data; it prevents proactive decision-making. When documentation formats, approval procedures and evidence capture vary by site or subcontractor, quality control becomes reactive rather than preventive. In such environments, small oversights can escalate into schedule overruns or client disputes before they are even detected.

Conversely, companies that standardise QA/QC reap measurable financial benefits. Those applying consistent, systematic quality processes are 28% more likely to achieve margins above 3% (60% vs 47%) and significantly more likely to keep rework below 5% of total budget (56% vs 37%). The link is clear: consistent QA/QC standards not only ensure quality compliance but also create defensibility and foresight, preventing minor errors from becoming month-long setbacks.

Quality failures drive rework, delays and disputes

Quality issues rarely remain isolated. The study found that two in three firms (67%) connect QA/QC failures to project delays. Among those able to quantify schedule impacts, nearly six in ten report that quality-related delays add more than two weeks on average, while almost one in four face extensions of over a month.

The financial exposure extends beyond direct rework. Firms lacking consistent QA/QC standards are over 50% more likely to face warranty risks (54% vs 35%) and 23% more likely to encounter subcontractor disputes (43% vs 35%). Each of these factors compounds risk across the project lifecycle, from reduced productivity and overtime costs to strained client relationships and reputational damage.

As the report notes, fragmented QA/QC practices amplify every challenge construction firms already face: tight margins, supply chain volatility, and workforce shortages. In a sector where profitability can hinge on single-digit percentages, these inefficiencies have become an industry-wide drain on performance.

A global and regional view: 13 markets under the microscope

The PlanRadar Construction QA/QC Impact Report draws on insights from 811 professionals across Europe, the Middle East and Asia-Pacific, including project consultants, general contractors, specialist trades, architects, developers and asset owners in 13 countries.

While the survey highlights global commonalities, particularly around documentation inconsistency and lack of enforceable standards, it also uncovers regional variations.

A UK perspective: quality as a client and compliance challenge

UK firms stand out for framing quality challenges in more client-centric and relationship-based terms. Among UK respondents, 78% agreed that improved QA/QC would enhance profit margins, and 36% cited reducing rework and costs as their top priority.

When quality issues do arise, 75% of UK firms said the main impact is project delays and lost time, compared with a global average where the focus is on avoidable rework (71%). Moreover, 72% of UK respondents said such delays damage client relationships, whereas globally, the top concern is additional labour and overtime costs (76%).

This suggests that the UK construction industry views QA/QC as a cornerstone of client trust and compliance, rather than purely a cost-control mechanism. British firms are acutely aware that quality failures erode confidence and can jeopardise long-term business relationships.

However, the gap between recognition and execution remains significant. 61% of UK companies cannot ensure their teams follow QA/QC plans consistently, and only 22% achieve uniform documentation standards.

“These findings reflect what we’re seeing across UK construction sites daily,” said Rob Norton, UK Director at PlanRadar. “The industry recognises that consistent QA/QC is fundamental to profitability, yet most firms struggle with practical execution. The real cost of inconsistency isn’t just rework, it’s damaged client trust and reduced competitiveness. The solution lies in moving beyond paper-based processes to unified digital standards that teams can follow across every site and trade.”

Digital transformation as the path forward

The data makes a compelling case for digital quality management systems as the foundation of consistent QA/QC.

This digital consistency provides both defensibility and foresight, creating clear audit trails, minimising disputes, and allowing managers to analyse trends before they impact performance.

“QA/QC is a top priority in the construction industry,” noted Sander van de Rijdt, PlanRadar Co-Founder and CEO. “The challenge is making it consistent. When every site and trade follows a different playbook, quality outcomes become chance, and costs become unpredictable. The path forward is clear: unified, enforceable QA/QC standards that create visibility, reduce disputes and protect margins.”

The bottom line

In today’s increasingly complex construction landscape, quality management consistency has become a defining factor of profitability. The evidence is unequivocal: firms that standardise and digitise their QA/QC practices achieve stronger margins, fewer delays, and greater client satisfaction.

As the industry continues its digital transformation, the leaders will be those who treat QA/QC not as an administrative task, but as a strategic driver of value, efficiency and trust.


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