TOTAL QUALITY MANAGEMENT, VOL. 13, NO.

5, 2002, 579 - 587

Quality in construction: the situation of the

Chilean construction industry

Alfredo Serpell, Hernan de Solminihac & Claudio Figari

Department of Construction Engineering and Management, Ponti® cia Universidad CatoÂlica de
Chile, Casilla 306, Santiago, Chile

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 made to a signi® cant 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 in¯ uence that its main sub-sectors have on construction quality,
and the principal identi® ed barriers to construction quality improvement in Chile. The main
conclusion of this study is that improvement of the quality of the construction industry is possible but
is not the task of a few people. It requires the coordinated and committed participation of all
construction industry representatives.

Introduction
This work presents the results of a research project conducted in Chile to accomplish the
following speci® c objectives (Serpell, 1994; Serpell et al., 2000).
(1) To obtain the perceptions about quality from the main representatives of the
construction industry.
(2) To identify the main quality barriers that exist in this sector.
(3) To establish a general diagnosis of the current quality level and problems in the
construction industry.
The methodology used in this research consisted of the application of semi-structured
interviews made to a signi® cant number of representatives from diþ erent areas within the
construction industry (Figari, 1996). The interviewees represented the main sub-sectors
within the construction industry, according to the classi® cation and numbers shown in
Table 1.
This methodology was selected following a study carried out by Latham (1994) in the
United Kingdom for similar purposes. In addition, an extensive bibliographical review (Figari,
1996) and an analysis of foreign experiences on construction quality were performed (Bonshor
& Harrison, 1982; Vallage , 1993). Finally, consultations were made and partial results of the
research were commented upon by a permanent panel of professionals brought together

Correspondence: A. Serpell, Department of Construction Engineering and Management, Ponti® cia Universidad
CatoÂlica de Chile, Casilla 306, Santiago, Chile.

ISSN 0954-4127 print/ISSN 1360-0613 online/02/050579-09 © 2002 Taylor & Francis Ltd
DOI: 10.1080/0954412022000001992
580 A. SERPELL ET AL.

Table 1. Sample description.

Number of
Sector Activity interviews

Design Engineering 6
Architecture 1
Consultants 4
Contruction Firms Building 5
Rigging 3
Civil Works 1
Highways 1
Owners Public Housing 3
Public Works 3
City Councils 2
Private Building 3
Industrial construction 1
Suppliers Manufacturers 4
Distributors 1
Unions 3
Inspections Companies 3
Others 1
Total 45

speci® cally for the purposes of this study, whose opinions and recommendations were
incorporated with those resulting from the research team’s regular meetings.
This paper ® rst gives a brief overview of the construction industry in Chile and its
structure. Research results are presented thereafter. First, the in¯ uence of the demand aspect
on construction quality is analysed from the point of view of clients and users. Next, the
in¯ uence of the supply aspect, constituted by construction companies, subcontractors and
construction labour is reviewed. Then, the sector corresponding to the suppliers of construc-
tion resources is discussed, including both materials and design suppliers as well as other
industry-related entities such as: labour unions, external consultants and universities. A
graphical summary of the problems detected in each category is presented using cause-eþ ect
diagrams. Finally, the main barriers impeding the solution of the outlined problems are
presented, as are the existing opportunities to overcome them.

The Chilean construction industry

Previous studies have de® ned the Chilean construction industry as constituted by three
fundamental segments: supply, demand and the suppliers of construction resources (CICC,
1993). The ® rst involves construction companies and subcontractors. The second includes
public and private clients as well as individual and collective users. Finally, the suppliers of
construction resources include ® nancial institutions, manufacturers, materials dealers, and
design and engineering companies, among others.
In relation to the type of demand, this can be basically divided between building and
non-building construction. Within building construction demand, over 100 000 housings are
built every year, including public (70% of the total) and private construction. The state
fosters demand through a wide range of housing subsidy programs. In the last few years,
participation in these programs has greatly increased as they facilitate access to the home-
owning process, allowing Chilean people to ful® l their desire to be home-owners.
 QUALITY IN CONSTRUCTION 581

Concerning demand for non-building construction, investment projects for the period
1998 - 2001 will reach around US$25 billion. Among the incentives for investment in
infrastructure, is one in which the Ministry of Public Works is incorporating private resources
through a build-own-transfer method for new projects, especially in the highway construction
sector.
With respect to supply, complete information about the current number of companies
participating in the Chilean construction industry is not available, but it is estimated at about
3500 construction companies, both contractors and subcontractors. Among these companies,
16% are considered large or medium and 84% are considered small (CICC, 1993). Generally,
most of the smaller size companies are understaþ ed at the professional level and do not have
a de® ned organizational structure. New construction companies enter the market continu-
ously since, in practice, there are no barriers to newcomers entering the sector. In the last
few years the presence of foreign companies has increased and continues to do so.
Regarding materials suppliers, about 720 materials and supplies manufacturing com-
panies exist. As a rule, this sector is very segmented by product type.
When comparing the Chilean construction industry with 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 equipment. Workers’ training and
educational levels are comparatively low. Finally, research and development investment levels
are also lower in comparison with those of more advanced countries.

The in¯ uence of demand on construction quality

In construction projects, clients should assume responsibility with regard to the desired
quality of construction projects. To do this, they should be aware of three aspects: to know
their needs well and how to communicate them; to know how to request and control the
process of achieving these needs during construction; and to be prepared to assume the
eventual costs that better quality may require.
From analysis of the interviews, it can be seen that clients have some diþ erences
regarding their preparation in undertaking construction projects. These diþ erences have their
origin in the varying levels of experience accumulated 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, limited knowledge of
quality related issues, incomplete or improper de® nitions of project needs, little disposition
in assuming 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 classi® ed into three categories, determined by the
degree to which they can in¯ uence the quality of construction projects. Massive users that
make use of infrastructure in an intermittent way do not participate in the project develop-
ment, and so cannot help to improve its quality. They do not have, therefore, responsibility
in subsequent project maintenance, in spite of the fact that their needs are those that should
be satis® ed. Exclusive users, such as homeowners, can have much more in¯ uence on works
maintenance and, in fact, it is their responsibility. Their main problem is that they normally
lack the knowledge of how to do it. Finally, productive users, those that use the construction
infrastructure to develop production processes (generally of an industrial nature), have more
opportunities to act on infrastructure maintenance but their capacity is wasted because most
of the time their explicit needs are not clearly considered in the construction projects’ design
582 A. SERPELL ET AL.

Figure 1. Demand’s problems aþ ecting the quality of construction projects.

stages. Figure 1 shows an outline of the problems that the demand factor presents to achieving
project quality.

The in¯ uence of supply on construction quality

Construction companies: general contractors and subcontractors
According to the interviewees, general contractors make insuý cient investments in personnel
and equipment for quality improvement. Furthermore, construction professionals generally
have an excess of responsibilities during the construction process, which prevents them from
adequately performing the required quality control. At the organizational level, construction
companies have quite rigid and centralized decision-making structures, delaying their respon-
siveness to market needs. On the other hand, little or incorrect use of available management
tools is made at the construction projects level.
The subcontractors possess characteristics more or less similar to those of the general
contractors, posing additional relationship and competition problems amongst themselves
within each project.

Labour
Labour is recognized at all levels as a main factor within a construction activity, and a key
factor in achieving ® nished construction quality. Consequently, it is necessary that workers
have the knowledge, ability and desire to accomplish their tasks in accordance with stipulated
expectations. (Serpell, 1993).
However, according to the interviewees, workers do not have a favourable attitude with
respect to active participation in quality improvement. The main reason for this is their
perception that quality improvement will only provide concrete bene® ts for their employers,
but not for them. On the other hand, the construction workers’ insuý cient training and low
educational levels are among the critical barriers to quality improvement.
In addition to the foregoing, construction companies do not oþ er many training
incentives due to high labour rotation and the lack of training programs adapted to the
speci® c needs and characteristics of the construction activity. In Fig. 2, a summary of the
problems presented by the supply factor in achieving high construction quality is displayed.
 QUALITY IN CONSTRUCTION 583

Figure 2. Supply problems that reduce the quality of the works.

The in¯ uence of construction resources suppliers on construction quality

Materials and goods suppliers
The study revealed that materials suppliers present extremely variable product quality, partly
due to their low level of specialization. In general, within the construction industry, it is
considered that material quality is only the suppliers’ responsibility. The suppliers are,
however, faced with design requirements that specify custom elements that prevent greater
industrialization of the sector. Furthermore, due to high competition, they frequently oþ er
inferior quality products in order to reduce prices. Many contractors, always in search of the
less expensive alternative, endorse this system. Contractors end up sacri® cing quality due to
their unwillingness to pay more for better products. There is also a lack of clear regulations
with respect to construction material quality.

Designers
Designers should execute designs, both architectural and engineering, in accordance with
the corresponding speci® cations for the building of construction projects. Architects should
translate clients’ needs into structured spaces and volumes, with de® ned functional character-
istics. Engineering designers should establish technical requirements for every distinct element
of the construction project, as well as the methods needed to build them.
As shown in the research, the main problem that architects present is the poor quality
of their projects, which has a negative impact on construction quality. Most architectural
designs lack constructional feasibility and standardization of the speci® ed elements. The
cause of this can be found in the little practical knowledge the architects possess about
construction processes and how designs are built.
As far as the architects are concerned, engineering designers often produce inexact
designs lacking in consistency and standardization with respect to construction elements or
processes. As a rule, neither the architects nor the structural engineers consider the necessary
constructional feasibility of their projects, due to the lack of integration they have with the
contractors performing the actual task of construction.

Construction related standards and regulatory entities

Among standards-related problems, research results point out the confusion that exists at the
practical, application level of the diþ erent construction regulatory bodies. In many cases,
584 A. SERPELL ET AL.

regulations have limited applicability, and are very demanding and prescriptive in nature.
This makes some of the norms diý cult to comply with at the execution level. Furthermore,
the norms are incomplete, and there are areas where they are insuý cient, as in the case of
standards relating to low-income housing. Finally, many standards are quite old and the
updating process has not been widespread. This situation has been aggravated by a diý cult,
cumbersome and unstable standards development process.

Inspection
The purpose of construction inspection in Chile is to verify that other representatives
(designers, contractors, etc) actually satisfy the client’s real needs. To do so, inspection entity
representatives should be present at the site from the beginning of the project. Currently,
inspectors are encountering various diý culties in ful® lling this task. First, the extension of
construction projects with multiple, simultaneous work sites hinders eþ ective control. On the
other hand, the sporadic presence of inspection entities on the job sites and the partial
emphasis of what is inspected cause the inspected work fraction to be very small. Added to
this, the lack of inspection personnel and the disparity of criterion leave users more
unprotected, especially those with fewer resources. The generalized trend of late inspection
incorporation in a construction project reduces its eþ ectiveness in error prevention. Thus, a
general appraisal of inspection shortage and ineý ciency is dominant within the construction
sector.

Other entities
There are still other entities that exercise an in¯ uence on construction quality, without being
direct construction industry representatives. Among them are entrepreneurial unions such as
the CaÂmara Chilena de la ConstruccioÂn (Chilean Chamber of Construction), professional
associations, independent consultants and universities.
According to other industry representatives, the Chilean Chamber of Construction does
not demonstrate an adequate understanding of construction quality. In their opinion, this
institution has not created awareness and does not provide leadership among the sector’s
professionals with respect to construction quality. There is a notable lack in the widespread
diþ usion of endeavours already made to encourage participation in quality improvement
initiatives.
In relation to the professional associations of Engineers, Architects, and Civil Builders,
none has shown a very active participation in quality improvement. These associations have
little impact on their members and are not contributing to the diþ usion of important quality
topics within the industry. Furthermore, for some time, there have been problems produced
by certain voids in the de® nition and standardization of the roles and particular attributes of
each kind of professional.

External consultants
Independent quality consultants lack depth in the construction quality issue. Quality control
system implementation methods provided by these advisors are still inadequate or too basic,
and do not take into consideration the particular conditions of the construction activity and
its speci® c requirements.
 QUALITY IN CONSTRUCTION 585

Figure 3. Construction input’s problems that decrease its quality.

Universities
With respect to universities, there is a de® ciency of academic depth and expertise in quality
control issues when teaching future construction professionals. Furthermore, it is felt that
many construction programmes have little relation to construction companies and their
practical needs. Finally, the extent of their research results and achievements is very limited.
Figure 3 summarizes the problems of the diþ erent representatives that provide construc-
tion supplies, be they products or services, in an indirect or direct way.

Barriers to construction quality improvement in Chile

In addition to the above-mentioned problems, there are certain barriers that prevent
construction quality development and implementation. These barriers prevent the solution
of problems, decreasing motivation to create improvement initiatives on the part of the
diþ erent industry representatives, and sometimes forming new con¯ icts detrimental to the
achievement of quality.
Among these barriers, some originate in the construction industry itself, being sometimes
almost structural characteristics of construction, while others come from outside the industry.
Indicated below are those considered most relevant by the professionals interviewed.
The ® rst barrier inherent in construction is the lack of stability of its activity level, at the
global level as well as for each company. This reduces motivation to invest in improvement
technology and systems because of uncertainty with respect to their potential utilization.
The facility to enter and exit the Chilean construction market causes the creation
and incorporation of many construction companies solely to take advantage of particular
opportunities, but without a more long-term and permanent commitment to clients and the
quality of work oþ ered. This situation is further aggravated by unclear and insuý ciently
de® ned responsibilities with respect to construction projects’ ® nished quality. Excessive
personnel rotation prevents labour training and stops improvement projects.
Among external barriers, without doubt the most important is the dependency on the
country’s macroeconomic stability that a sector such as construction has, a dependency
produced by the large quantity of resources required to carry out any project. Finally, there
are several cultural and educational factors present in all activities at a national level. As a
586 A. SERPELL ET AL.

Figure 4. Barriers for the improvement of quality in Chilean construction.

general rule, people in the Chilean construction industry possess little motivation to improve
quality, due either to ignorance or a lack of education and training. Figure 4 shows the
diþ erent construction quality improvement barriers.

Conclusions
The main conclusions of this study, taken from research results, are as follows.
(1) The construction industry in Chile presents various quality problems, of a very
mixed nature.
(2) These problems are not the responsibility of only one person or of a few of the
diþ erent representatives that contribute directly or indirectly to project execution.
All of the problems present, in greater or lesser measures, characteristics, practices
or ways of undertaking projects that translate into the deterioration of the projects’
® nished quality.
(3) Aside from speci® c problems that have an individual responsibility, a large number
of problems are due to the lack of integration between the diþ erent industry
representatives and to the scarce cooperation and teamwork achieved in the develop-
ment of construction projects.
(4) There are, in addition to the factors that deteriorate construction quality, some
barriers to the solution of problems that hinder quality improvement. Some barriers
are inherent in the construction industry, while others are external to the industry.
 QUALITY IN CONSTRUCTION 587

Recommendations
Many recommendations have been derived from the research ® ndings of this study in order
to address the individual problems. Some of the most important are as follows.
(1) Integrate quality improvement eþ orts within the construction sector. In this regard,
the Chilean Construction Institute is the institution where all the principal players
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 impetus they can give to the development of
quality in the construction sector.
(2) Train people at the management, professional and supervisory level in the concepts
and tools of quality.
(3) Improve and extend quality issues education at universities and technical institutes,
where most of the construction personnel are trained.
(4) Improve quality regulations and better de® ne responsibilities regarding defects in
the quality of construction projects. In this respect, it is important to mention the
new Housing Quality Law that was approved 5 years ago by parliament. The impact
of this law has been a strong drive for quality awareness within construction
companies. This law has also provided users with more power to demand better
quality and better responses in the face of quality problems.

Acknowledgements
The authors gratefully acknowledge the Chilean Fund for Science and Technology,
FONDECYT, and the CorporacioÂn de InvestigacioÂn de la ConstruccioÂn (Construction
Research Corporation) for providing funding to support this research endeavour.

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