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A methodology was developed to measure cost of quality failures in two major road projects, largely based upon a work‐shadowing method. Shows how the initial data were collected and categorised into definable groups and how the costs were estimated for each of these categories. The findings suggest that, if the projects examined are typical, the cost of failures may be a significant percentage of total costs, and that conventional means of identifying them may not be reliable. Moreover, the costs will not be easy to eradicate without widespread changes in attitudes and norms of behaviour within the industry and improved managerial co‐ordination of activities throughout the supply chain.

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