Non Value-Adding Activities in Building Projects: A Preliminary Categorization

Per-Erik Josephson1 & Lasse Saukkoriipi2

1Associate Professor, Building Economics and Management, Chalmers University of Technology, Göteborg, Sweden, per-erik.josephson@bem.chalmers.se
2Master of Science, Building Economics and Management, Chalmers University of Technology, Göteborg, Sweden, lasse.saukkoriipi@bem.chalmers.se

Abstract

There is a general opinion and common agreement within the building and construction industry that the costs are too high, but a disagreement on which cost elements and what reasons are lying behind this situation. The Swedish Construction Federation states that the burden of taxation on new houses in Sweden is 65%. Other groups of actors mean that the production is inefficient or that material prices are too high. An alternative way to tackle the problem is to identify activities, which do not add value to the customer. This paper gives examples of non value-adding activities and discusses their costs and causes. A preliminary action-oriented categorization, related to when action should be taken, who should act and how to act to avoid non value-adding activities, is presented and discussed.

Keywords

Non value-adding activities, poor quality costs, building project, categorization.

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Reference

Josephson, P. & Saukkoriipi, L. 2003, 'Non Value-Adding Activities in Building Projects: A Preliminary Categorization ' In:, 11th Annual Conference of the International Group for Lean Construction. Virginia, USA, 1-.

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