Quality Management in Offshore Construction Project

University essay from Högskolan i Jönköping/JTH, Industriell organisation och produktion

Abstract: Companies have a need to internationalize and locate all over the world to gain advantages against competition. However, when companies internationalize, they face difficulties. One of the major difficulties is how they can reach the same high quality around the world in their business facilities. Over one third of all construction projects reporting major defects. The purpose of this thesis is to research how companies implement Quality Management in offshore construction projects, what are the common challenges related to the subject and how to overcome these challenges. The theoretical framework for the study is gathered from academic literature. The thesis uses a qualitative research approach. The primary data is gathered through interviews and observations that are conducted on an offshore construction site. The case study in this thesis researches how a multinational company handles Quality Management in an offshore construction project.  The company’s Quality Management guidelines and practices have been established in Europe, whereas the location and context of this study is in Southeast-Asia. The difference in business context and cultures causes additional challenges in implementing Quality Management in the project. After analyzing the data, the company’s Quality Management practices are compared to suggested practices in the academic literature. These suggestions can be valid for other multinational companies that are expanding to different continents. The results show that when companies do offshoring decisions, relationship quality with contractors and partnership credibility should be central attributes, even if it means doing business with higher priced companies. Many companies do not focus enough on the quality aspect in the contractor tendering phase. Instead they tend to base decisions solely on cost and speed even though bad quality work results in increased costs and delays in construction projects.

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