ISO 9000 in construction An examination of its application in Turkey

ARTICLE IN PRESSBuilding and Environment 41 (2006) 501–511 www.elsevier.com/locate/buildenv ISO 9000 in construction: An examination of its application in Turkey A.M. TurkÃDepartment of Civil Engineering, Istanbul Kultur University, Atakoy Yerleskesi D100 Yanyol, 34156 Bakirkoy, Istanbul, Turkey Received 15 December 2004; accepted 14 February 2005Abstract ISO 9000, the quality management system standards developed by the International Standards Organization (ISO), is widely used inthe construction industry, as it is in all industries in the world. Recently, a growing interest has been paid to the use of this system in theconstruction industry. Despite the growing interest, ISO 9000 use of construction firms has not been sufficiently studied from theperspective of developing countries. In this article, with regard to the ISO 9000 quality management system (QMS) in Turkey, thecharacteristics of contractor firms in the construction industry, the perceptions, behavior and experiences of the firms in regard to ISO9000 QMS are discussed. A field study has been executed, and a questionnaire has been carried out. In total, 138 construction firms,members of Turkish Contractors Association and representing the top-level firms operating both in Turkey and in the internationalmarket, have been selected for this study. The evaluation of the data points to the fact that the surveyed construction firms generallyhave a positive approach toward ISO 9000 QMS and that ISO 9000 QMS provides important advantages for the firms. However ISO9000 QMS cannot be made widespread and applied effectively due to certain disadvantages and difficulties in practice.r 2005 Elsevier Ltd. All rights reserved.Keywords: ISO 9000; Quality management system (QMS); Standards; Construction1. Introduction control in the construction industry. Quality assurance refers to the system controlling the provision of a In the construction industry, quality is defined as product or service for the purpose of satisfying themeeting the requirements of the designer, the contractor, customer needs [2]. Construction quality control meansthe regulatory agencies and the project owner [1]. The the specific application of the quality assurance programterm ‘‘high quality building project’’ reminds us of and its related activities [3]. In this framework, ISO 9000factors like the design being easily understandable and QMS standards have been widely used in the construc-applicable, conformity of the design with specifications, tion industry in recent years as in all industries of theeconomics of construction, ease of operation, ease of world. As a result, a growing interest has appeared inmaintenance and energy efficiency [3]. In the construc- the literature with respect to the use of ISO 9000 QMS intion industry, it is a rule that projects must be completed the construction industry. Various studies have beenwithin the planned cost, at the scheduled time and at the carried out for ISO 9000 applications in European,required quality level. Quality may sometimes be Asian and North American countries in the constructionignored in the construction industry in order to cut the industry [4–16]. In these studies, it is questioned whethercosts and/or shorten the project term. Quality assess- ISO 9000 QMS is an appropriate tool for the construc-ment is provided through quality assurance and quality tion industry, or, more specifically, for the construction firms. In the studies, the advantages and disadvantages ÃTel.: +90 212 661 94 51x2074; fax: +90 212 661 85 63. are presented on equal terms and the constraints in E-mail address: [email protected]. application are identified. However, the use of ISO 90000360-1323/$ - see front matter r 2005 Elsevier Ltd. All rights reserved.doi:10.1016/j.buildenv.2005.02.013

ARTICLE IN PRESS502 A.M. Turk / Building and Environment 41 (2006) 501–511QMS in construction firms has not been sufficiently restore their images distorted particularly due to thestudied from the perspective of developing countries. major earthquakes that occurred recently. As a matterThat is, very few studies have been produced to-date for of fact, the devastating loss of life and property in theseISO 9000 applications within the construction industry earthquakes occurring in 1999 in Turkey has adverselyusing examples from developing countries. The purpose affected the image of the construction industry as aof this article is to put forth the contractor firm whole. Nearly, 93% of Turkey is located in an activecharacteristics in the construction industry related to seismic zone. Nearly, 98% of the population lives inISO 9000 QMS in Turkey, and to find out the settlement units that involve an earthquake risk. Inperceptions and behavior of the firms and the firms’ total, 61% of dwelling losses, the highest rate ofexperiences. The contribution expected from this study dwelling loss in natural disasters, is caused by earth-are taking the guidance of the knowledge and experi- quakes. The economic losses caused directly by theences attained to make widespread the ISO 9000 QMSs earthquakes are approximately 3% of the GNP [18]. It isand use them in relevant applications in the construction a known fact that this rate amounts to 7% with theindustry at both the domestic and the international addition of the indirect losses. Despite rapid transitionlevel. and the ability to adapt to new technologies in the construction sector in Turkey, the performance of Extending and applying ISO 9000 QMS for the building inventory against natural disasters causes greatconstruction industry in Turkey is important for three concern. The concerns about the duration and cost ofaspects. The first aspect is that the construction construction may override the quality of constructionindustry, as in all other countries, is an important much of the time. Therefore, it will be constructive if theeconomic activity in the Turkish economy. It is accepted use of ISO 9000 QMS in the domestic market increases.as one of the leading industries of the Turkish economysince this industry is based largely on domestic produc- The third aspect is Turkey’s adaptation process to thetion, and has a wide employment potential, an intense European Union. In particular, the extensive use of ISOinput-output relationship with other industries, espe- 9000 QMS and standardization in the constructioncially the manufacturing industry, and brings in foreign industry in member countries of the European Unionexchange with the contractors’ projects that are carried [19] may require the use of ISO 9000 QMS especially forout abroad. The construction industry, which works contractors in the construction industry in Turkey, awith relatively labor-intense technology and plays an country aiming to be accepted to the European Union.important role in the reduction of unemployment, has a In order for Turkish contractors to have a more effective6% share on average within the total employment position in both the domestic and international con-picture [17]. It is estimated that the construction struction market, QMS should be established and usedindustry also has a 6% share on average in the GNP extensively and effectively in the construction industrygenerated in the Turkish economy with respect to as well as in all industries. This application andproduction, and this share has risen to 33% with the sustainability of QMS will increase the quality ofcontribution of other industries that operate in con- construction projects in Turkey. In addition, it willjunction with the construction industry. As the con- make it easier to adapt to the systems of developedstruction industry is directly related to fixed capital countries and may strengthen the position of theinvestments, the growth of the construction industry construction industry in the international market.affects the rate of growth in the national economy. Theconstruction investments generally constitute 60% of When all these national and international activities inthe total investment amount realized in Turkey [17]. In the Turkish construction industry are taken intothe economy, besides the construction investments consideration, the studies that probe the experiencesrealized by private and public sectors, international and opinions of the firms on the use of ISO 9000 QMScontracting services are also important. The contractors are not sufficient. In a thesis study in 1998, a surveywho undertake international construction projects do carried out on a very limited number of firms (22 firms)not only provide foreign exchange to the country in in the construction sector revealed that almost all firmsterms of profit transfer or the money earned by the have grasped the importance of having a quality system,employees of the firms, but also contribute largely to the but they do not have enough experience on how to applybalance of payments through construction materials, the system correctly, and experience problems on issuesmachinery and equipment export. It will be useful for such as documentation, communication, training andthe Turkish construction sector to apply QMS effec- process development [20].tively and widely in order to strengthen its position inthe international market, to have access to new job In the first part of the paper, a literature survey hasopportunities, and to improve its image. been performed with respect to ISO 9000 QMS applications in the construction industry. In addition, Secondly, application of QMS especially by contrac- a theoretical infrastructure has been set up in connectiontors in the domestic market will be useful in order to with ISO 9000 QMS applications and the existing situation of construction firms in Turkey. The second

ARTICLE IN PRESS 503A.M. Turk / Building and Environment 41 (2006) 501–511part of the article covers the questionnaire surveys that it will increase the competition, especially in thecarried out to provide information and collect data construction industry, and that the firm will start toabout the use of ISO 9000 QMS in the construction work more effectively, it is stated that it is hard for thefirms that are the members of the Turkish Contractors industry to meet its needs due to the diversity of theAssociation (TCA) and their relevant outcomes. The processes in construction applications and the require-results of the questionnaire are considered in four parts. ment to produce a different product/service for eachIn the first part, the characteristics of the firms are project. Similarly, in another study based on aexplained. The second part deals with the perceptions of questionnaire survey carried out with 93 firms in thethe surveyed construction firms on the importance of construction industry of Singapore, regardless ofISO 9000 QMS. In the third part, perceptions of the whether they have ISO 9000 quality certificates or not,firms related to the advantages and disadvantages of it is shown how the ISO 9000 certification has beenISO 9000 QMS are analyzed. In the third part, the reflected in its application. The results show thatexperiences of the firms related to the applications of certification does not affect quality management appli-ISO 9000 QMS are given. The third section of the article cations of the firms and the product/service qualitiesfocuses on the conclusion and recommendations. provided [5].1.1. Literature survey: ISO 9000 in the construction However, according to some studies in the literature,industry ISO 9000 QMS is an appropriate tool for construction firms. In a case study carried out by Pheng and Wee [6], ISO 9000 QMS standards have been applied in almost it is presented that the effective application of ISO 9000all industries in the world since 1987. Among the basic QMS can impede the shortcomings arising from theprinciples of the system are that it is customer-focused, application of construction projects and the preventionhas established an in-house leadership environment, has and repetition of faults. Pheng, Abeyegoonasekera [7]the participation of employees, uses a process approach has brought together the principles of ISO 9000 QMSand a systematic management approach, seeks perma- and the principles of buildability in the constructionnent improvement of the system, desires decision-taking industry by using a case study of a condominiumon a factual base, and suggests the establishment and project. It is claimed that an effective and appropriatemaintenance of relations between the sub-contractor work platform can be formed for these types of projects.and suppliers based on mutual benefits. ISO 9000 QMS In the condominium project, the buildability rate hasstandards are widely accepted in the global construction increased, effectiveness has been raised and costs haveindustry. This industry has taken its place as the largest been reduced with the use of this platform. It is put forthone in the listing of ISO 9001:2000 certificate numbers that ISO 9000 QMS will set up an appropriate platformgranted throughout the world up to the end of 2003 and to enhance the buildability of the project in both designhas approximately a 9% share overall [19]. and construction stages of the project. The products produced and the services provided in The firms in the construction industry obtain ISOthe construction industry are unique, in other words, 9000 QMS certification for different reasons. Ideally, thenot repetitive, unlike other industries. The products and construction firms should obtain ISO 9000 QMSservices provided in each project have a unique design standards in order to satisfy their customers, to optimizeand construction process, process sequence, and mod- the firm’s resources, and to manage the aimed for in-ules unique to each project. It is very common to involve house quality procedures. However, in reality, manysuppliers and sub-contractors in the process in order to construction firms attain this certification due to thekeep these processes appropriately continuing. This request of their customers or as a condition of the publicmakes it difficult to define and apply the projects and tender authorities. On the other hand, there are manyprocesses with prototype and repetitive procedures. firms that consider using ISO 9000 certification to gain aAlso, construction projects are associated with different reputation and as a tool to attract potential customers.factors. For example, local effects, environmental In another study carried out on 33 contractors fromfactors, social reactions, cost and the completion period Hong Kong certified with ISO 9000 QMS, it turns outare the effects to be planned at the design stage. All these that the main reason for the application of the firm ofhave revealed the need to study whether ISO 9000 QMS ISO 9000 QMS is especially to participate in publicwas appropriate for construction firms in the past. Some projects as an obligation of their customers [8]. Astudies in the literature put forth that ISO 9000 QMS is questionnaire survey was carried out by Ofori andnot appropriate for construction firms. For example, others among the contractors holding ISO 9000Landin [4] has put forward, as a result of interviews with certification in Singapore. The purposes for a firm’s12 construction firms holding ISO 9000 certificate in transition to ISO 9000 QMS include the followingSweden in 2000, that QMS standards are very abstract reasons respectively starting from the most importantand hard to put into practice. Although it is considered one: to provide their customers quality assurance, to improve the operation procedures of the firm, to

ARTICLE IN PRESS504 A.M. Turk / Building and Environment 41 (2006) 501–511enhance the competitive power of the firm, to improve QMS will create an effective mechanism to reduceits image, to consider that it will become obligatory in material and labor waste in procedures like productionthe future, and to reduce the operational costs [9]. and delivery, and will improve profitability, whereby the firm may increase its market share. In addition, it is It is proposed that obtaining ISO 9000 QMS acknowledged that the product or the service providedcertification by construction firms in the industry has will be presented optimally, due to the enhancementvarious advantages and disadvantages. It is identified provided at all levels of product and service with ISOthat ISO 9000 QMS certification introduces advantages 9000 certification, by which the firm’s marketingsuch as more systematic paper work and documenta- opportunities and market share will increase and thetion, bettering of in-house communication, and an firm improves its image. Likewise, advantages such asincrease in the firm’s competitive power. On the other enrichment of the firm’s operation processes, increase inhand, the increase in paper work and the addition in the productivity, improvement of the firm’s self-confidence,amount of time required of the management along with improvement of customer satisfaction, increase in thean increase in project costs have been recited as performance of suppliers and tighter controls on thedisadvantages. It is noted that there is a great similarity sub-contractors may also be perceived as an advanta-between the responses of large- and medium-scale firms geous outcome of ISO 9000 QMS. In ISO 9000 QMS,[8]. In a study carried out by Ofori and others, the beside the products and services, processes are certifi-advantages of having a QMS for the firms are, cated. The main point here is the idea that if therespectively, the strengthening of the corporate image, management of the processes is good, the products orthe development of operation procedures, an increase in the services that are provided will be good too.competitive power, an increase in output, an increase incommunication among employees of the firm, and a However, it is another finding that, unlike otherreduction of material waste [9]. In the study published industries, goods and service production, which hasby Yates and Aniftos, the results of a comprehensive unique characteristics and quality cannot be standar-questionnaire survey carried out for US construction dized in the construction industry. It is also one of thefirms have been published. As a result of the ques- findings of the studies that there is involvement of manytionnaire, the firms cited, protecting their international different processes, with large numbers of professionalsmarket shares, having the ease to include new projects, and firms into a project in the construction industry. Forand having an advantage over their competitors, as example, the existence of a large number of suppliersadvantages, and additional work loads and costs caused and sub-contractors causes a uniqueness of the productby standardization as disadvantages [10,11]. In a or service provided as well as perhaps causing difficultiesquestionnaire survey carried out in the US, it is stated in the application of ISO 9000 QMS among the firms inthat ISO 9000 QMS is an appropriate tool for US the sector and even among the counties. Therefore, theconstruction firms, and bears the advantages of devel- studies concerning the application of ISO 9000 QMS inopment of in-house management and its use as a the construction industry in different countries willmarketing tool [12]. The results of a questionnaire contribute to the literature.survey carried out among contractors in Saudi Arabiapoint to some difficulties such as the increase in the 1.2. The existing situation of the use of ISO 9000 in theamount of paper work, the difficulty in controlling the construction industry in turkeysub-contractors, the difficulty in understanding theterminology used in the standards, the additional work Despite the acknowledgement of ISO 9000 QMS byload on personnel, and the need for a full-time quality the construction industry as well as in many othermanager. The high costs of certification, reaction to the industries in Turkey, it can be seen in Table 1 that thealterations in the system at various levels within the number of ISO 9001:2000 certificates is very low whenfirm, loss of productivity in the work force during the compared to other countries such as European andrestructuring of the system, conflicts in management, Asian countries. According to the report published bylack of trained personnel, difficulty in applying QMS ISO, the total number of ISO 9001:2000 certificates indue to the distance of construction sites, communication Turkey was 2396 as of the end of 2003, approximatelyproblems caused by a multi-lingual environment arising 100 of which belong to construction firms [19].from the diverse nationality of the personnel, andcultural differences in the work force have been noted TCA is the most experienced professional organiza-as current obstacles for transition to QMS [13]. tion of the Turkish construction industry. The business volume of TCA members covers 70% of the domestic When all these studies are examined, it appears that projects and 90% of the foreign projects carried out bythere are different opinions for the reasons for having Turkish construction firms. The member firms of TCAISO 9000 QMS and the advantages and disadvantages have been operating in the international market sincebrought by its application in the construction industry. 1972, and nearly 50% of 1500 projects undertaken in 56As for other industries, it has been proven that ISO 9000 countries until the end of 2003 are projects related to

ARTICLE IN PRESS 505 A.M. Turk / Building and Environment 41 (2006) 501–511Table 1 9000 QMS certification by construction firms in Turkey.The comparison of construction sectors in different countries Literature review has been utilized for the preparationaccording to their ISO 9001:2000 certification numbers [19] of the questions on the questionnaire [9,10,12,13]. After the preparation of questionnaire, a pilot survey wasCountry ISO 9001:2000 ISO 9001:2000 Percentage of applied to 12 construction firms. According to the construction number for all construction results of this pilot survey, the questions on the industry totals sectors sector in the questionnaire were then revised. The questionnaire (percentage in country forms were sent to construction firms in July 2004 global market) along with return envelopes. A total of 138 construction firms, members of the TCA were selected to be surveyed.Italy 13095 (25.5a) 64120 20.4 These firms, registered in the TCA, represent the topJapan 11876 (23.2) 38750 30.6 category operating in both the domestic market inChina 11096 (21.6) 96715 11.4 Turkey and the international market.Spain 2578 (5.0) 22203 11.6Korea 2400 (4.6) 12846 18.6 The questionnaire was arranged in a single form toUK 9859 8.8 cover the firms regardless of whether they hold ISO 9000France 876 (1.7) 13342 6.4 QMS certification or not. The questionnaire consists ofGermany 854 (1.6) 14375 2.5 three sections. The first section covers questionsTurkey 372 (0.7) 2396 4.1 intended to reveal the corporate profiles of the firms.Singapore 100 (0.2) 1280 7.1 The second section includes the perceptions of firmsUSA 91 (0.1) 14787 0.25 about ISO 9000 certification. The third section consists 38 (0.07) of questions related to the experiences of constructionWorld total 500125 10.2 firms intended for ISO 9000 QMS applications. The 51188 questions on the form are inclusive of closed-end ones and questions on a five-point scale (varying between À2,Source: International organization for standardization. ISO survey of À1, 0, +1, and +2 values). The questions in the third group are required to be answered only by the firmsISO 9001:2000 and ISO 14001 Certificates—2003, CD-ROM, 2004, holding ISO 9000 certification.Geneva. Until the end of August 2004, 42 out of 138 aNumbers in brackets are in percentages. construction firms had returned the questionnaires. In order to increase the number of replies, one-on-oneTable 2 phone conversations were made at the beginning ofThe amount of the international construction work contracted by the September with the authorized personnel of the con-members of Turkish Contractors Association [21] struction firms that had not returned their question- naire. By the end of September, a total of 68Year Total amount of construction work (US$) questionnaires were completed giving a rate of return of 49%.1980–1989 12,310,862,1791990–1999 19,782,515,860 After the completion of survey, the data obtained2000–2003 4,502,083,060 from these questionnaires was transferred into the SPSS 8.5 program. Descriptive analysis, the w2 independenceTotal 36,595,461,099 test, and T-test statistical analysis techniques have been used in the analysis of the obtained data.Source: www.tmb.org.tr. Tu¨ rk Mu¨ teahhitler Birlig˘ i, 2004. 2.2. Analysis and resultshousing, superstructures (roads, bridges, dams, tunnels)and industrial plants. Table 2 gives the change in 2.2.1. Firm characteristicsbusiness volumes undertaken by the TCA and the The respondents of the questionnaire have themember firms in the international market on a yearlybasis [21]. Additionally, 11 Turkish contractors (Enka, following ranks: 67.6% (46) are quality departmentGama, Tekfen, Stfa, Summa, Alarko, Hazinedaroglu, managers, 10.3% (7) are CEOs, 5.9% (4) are executiveDogus, Baytur, Soyak, Limak), all members of the managers, 5.9% (4) are engineering department man-TCA, are listed among the ENR 225 Top Contractors of agers, 10.3% (7) are other personnel. A total of 86.8%2004. These firms are ranked according to construction (59) of the surveyed firms operate in the constructionrevenue generated outside of each firm’s home country services (contracting services). The scope of 4.4% (3) isin 2003 in US$ millions [22]. related to construction services and consulting services. The total amount of contracted projects in last 5 years2. Field study was US$ 0–25 million for 37.9% (25) of the surveyed firms, US$ 100–250 million for 19.7% (13), US$ 50–1002.1. Survey sample and analysis method The questionnaire survey method has been applied inorder to provide information related to the use of ISO

ARTICLE IN PRESS506 A.M. Turk / Building and Environment 41 (2006) 501–511million for 18.2% (12), US$ 25–50 million for 13.6% (9) Table 3 Number of alland over US$ 250 million for 10.6% (7). In the past 5 Characteristics of firms firmsyears, 33.3% (22) of the surveyed firms got 0–25% oftheir business volume from the international market, No Item 7 (10.3)a13.7% (9) got 25–50% from the international market, 4 (5.9)10.6% (7) derived 50–70% from the international V0 Respondent on behalf of the 46 (67.6)market, and 9.1% (6) derived 100% of their business company 4 (5.9)volume from the international market. In total, 33.3% CEO(22) of the surveyed construction firms received their Executive manager 7 (10.3)entire business volume over the same time period from Quality department managerthe domestic market. The total number of employees Engineering department 59 (86.8)working in 53% (35) of the surveyed construction firms manager 3 (4.4)is above 200, between 100–200 employees in 16.7% (11) Others 2 (2.9)of the firms, between 50 and 100 employees in 12.1% (8) 1 (1.5)of the firms, between 20 and 50 employees in 15.2% (10) V1 Scope of the company 3 (4.4)of the firms, between 10–20 employees in 1.5% (1) of the Constructionfirms, and between 1–10 employees in 1.5% (1) of the Manufacturing and supply 25 (37.9)firms. 91.2% of these firms (62) hold ISO 9000 Engineering design services 9 (13.6)certificates, and 8.8% (6) of the firms do not possess Consulting services 12 (18.2)ISO 9000 QMS certification. 89.7% of the surveyed Other 13 (19.7)firms (61) use ISO 9001:2000 standards. Six of the 7 (10.6)surveyed firms that do not possess ISO 9000 registration V2 Total amount of contractedplan to obtain the certificate in near future. Of the projects in last 5 years (in 22 (33.3)surveyed firms that have ISO 9000 QMS; 11.3% (7) have US$) 22 (33.3)been using and applying ISO 9000 QMSs for 5–10 years, 0– 25 million 9 (13.7)75.8% (47) for 1–5 years and 12.9% (8) for 0–1 year 25–50 million 7 (10.6)(Table 3). 50–100 million 6 (9.1) 100–250 million2.2.2. Perceptions of construction firms on ISO 9000 Above 250 million 1 (1.5)2.2.2.1. Perceptions related to the importance of ISO 1 (1.5)9000 QMS. In total, 83.6% (56) of the surveyed V3 Percent of total contracted 10 (15.2)construction firms consider that ISO 9000 QMS is an work taken from international 8 (12.1)appropriate tool for construction firms. According to market in last 5 years (%) 11 (16.7)89.7% (61) of these firms, ISO 9000 QMS has made a 0 35 (53)positive impact on the Turkish construction industry. 0–25Similarly, 94.1% (64) of those surveyed consider that the 25–50 6 (8.8)importance of ISO 9000 certification will increase in the 50–75 62 (91.2)near future. According to 82.4% (56) of these construc- 100tion firms, ISO 9000 QMS certification has to be mademandatory. When these perceptional questions from the V4 Total number of employees inquestionnaire are evaluated within the framework of the companydescriptive analysis, a preliminary deduction can be 1– 10made that the surveyed firms have positive opinions 10–20concerning ISO 9000 QMS. However, it is important to 20–50know how these perceptional questions are assessed 50–100within the framework of a different grouping in the 100–200sample. It may be useful to set up certain hypotheses in More than 200order to perform these assessments (Table 4). V6 Availability of ISO 9000Hypothesis 1. There is no difference between the size of QMS certificationthe firms and their perceptions about ISO 9000. Yes No Definition of the size of a firm is evaluated in twoaspects. First, the average business volume of the firm in Source: A.M. Turk (2004).last 5 years can be considered as a variable that represents aNumbers in brackets in percentages.the size of the firm. The relation between this variable andperception questions can be tested. Second, the total number of personnel employed in the firm can be perceived as a variable that represents the size of the firm. Similarly, the relation between this variable and the perception questions can be tested. In the testing of the dependence between these variables, the w2 independence test was used. The w2 test of independence is performed in order to test whether there is dependence between the predetermined characteristics of the variables, by classifi- cation of the variables in the data set in the form of a one- dimensional or multi-dimensional crosswise table within the frame of a hypothesis.

ARTICLE IN PRESS 507A.M. Turk / Building and Environment 41 (2006) 501–511Table 4 Number of all relationship between the average number of personnelPerceptions of firms about ISO 9000 QMSs firms employed in the surveyed firm and whether the importance of ISO 9000 QMS will soon increase (TheNo Item 11 (16.4a) Pearson w2: 4.028, p: 0. 045). No dependence has been 56 (83.6) identified between the total number of personnelV9 ISO 9000 QMS is an employed in the surveyed firm and the perceptions of appropriate tool for 61 (89.7) the firms with respect to the requirement of holding ISO construction industry 7 (10.3) 9000 QMS. There is independence between the two Yes variables (w2: 0.230, p: 0.632). As a result of the analysis, No 64 (94.1) the hypothesis that ‘‘there is no difference between the 4 (5.9) size of firms and the perceptions of firms with respect toV10 ISO 9000 QMS has a ISO 9000 QMS’’ is verified. positive impact on Turkish 56 (82.4) construction sector 12 (17.6) Hypothesis 2. There is no difference between whether Yes the firm has been awarded contracts in the international No market and the perceptions of the firms with respect to ISO 9000 QMS.V11 The importance of ISO 9000 QMS will increase for According to the results of w2 independence test Turkish construction sector performed to examine the hypothesis, no relation or soon dependence has been identified between whether the Yes firms have been awarded contracts in the international No market or not and whether ISO 9000 QMS is appro- priate for construction firms (The Pearson w2: 1.208, p:V12 ISO 9000 QMS has to be 0.272). Similarly, no dependence has been identified mandatory for Turkish between whether or not the surveyed firms have been construction industry awarded contracts in the international market and Yes whether ISO 9000 QMS has positive effects (The No Pearson w2: 0.080, p: 0.777). No dependence has been identified between whether the surveyed firms have beenSource: A.M. Turk (2004). awarded contracts in the international market and aNumbers in brackets in percentages. whether the importance of ISO 9000 QMS will increase soon (The Pearson w2: 0.532, p: 0.466). No dependence According to the results of w2 independence test has been identified between whether the surveyed firms have been awarded contracts in the international marketperformed to test the hypothesis, no relation or and the perceptions of the firms about whether ISO 9000 QMS are compulsory. There is independence betweendependence has been identified between the business the two variables (w2: 0.218, p: 0.640).volume undertaken in the surveyed firm and whether As a result of the analysis, the hypothesis that ‘‘there is no difference between whether the firms have beenISO 9000 QMS is appropriate for the construction firm awarded contracts in the international market or not(The Pearson w2: 2.554, p: 0.110). Similarly, no and their perceptions concerning ISO 9000 QMS’’ is verified. According to the results of the descriptivedependence has been identified between the business analysis and the w2 analysis, it is concluded that the firms have a positive opinion about ISO 9000 QMS, and thatvolume realized in the surveyed firm in the last 5 years this opinion is not dependent on the size of the firm or whether the firm has been awarded contracts in theand whether or not ISO 9000 QMS has positive effects international market.(The Pearson w2: 0.099, p: 0.753). No dependence has 2.2.2.2. Perceptions with respect to the advantages andbeen identified between the business volume realized by disadvantages of ISO 9000 QMS. In the questionnaire survey, the firms were asked about their opinions on thethe surveyed firm in the last 5 years and whether the advantages of having ISO 9000 QMS certification. The evaluations of firms on the advantages of ISO 9000importance of ISO 9000 QMS will soon increase (The QMS have been analyzed by using the T-test. The one-Pearson w2: 0.940, p: 0.332). No dependence has been sample T-test has been performed to determine whether the mean rating of a sample is significantly differentidentified between the business volume realized by thesurveyed firm in the last 5 years and the perceptions ofthe firms with respect to the requirement of holding ISO9000 certification. There is independence between bothvariables (w2: 0.194, p: 0.660). According to the results of the w2 independence testperformed to test the hypothesis, no relation ordependence has been identified between the averagenumber of personnel employed in the surveyed firm andwhether ISO 9000 QMS is appropriate for the construc-tion firms (The Pearson w2: 1.340, p: 0.247). Similarly,no dependence has been identified between the averagenumber of personnel employed in the surveyed firm andwhether ISO 9000 QMS has positive effects (ThePearson w2: 0.584, p: 0.445). There is a significant

ARTICLE IN PRESS508 A.M. Turk / Building and Environment 41 (2006) 501–511Table 5Advantages of ISO 9000 QMSAdvantages Mean Standard deviation t-Statistic p-ValueEnhances company’s image 1.4412 0.5829 20.388 0.000Improves definitions of responsibilities in the company 1.2941 0.8649 12.339 0.000Gets better communication with customers 1.0147 0.7430 11.262 0.000Improves company’s operating procedures 1.1029 0.9001 10.105 0.000Improves the control on subcontractor firms 1.0882 0.8933 10.045 0.000Improves customer satisfaction 1.1029 0.9485 9.589 0.000Improves communication among the company’s employees 1.0588 0.9285 9.403 0.000Increases productivity 1.0588 0.9756 8.950 0.000Supports fact that subcontractors seek ISO 9000 quality management system certification 0.9118 0.9421 7.980 0.000Improves communication with subcontractors 0.8529 0.9965 7.058 0.000Increases self-confidence of the company 0.8676 1.0496 6.817 0.000Increases performance of suppliers 0.7941 1.0867 6.026 0.000Improves competitiveness 0.5882 1.1748 4.129 0.000Increases profit of the company 0.3676 1.1317 2.679 0.009Increases market share of the company 0.2500 1.2017 1.716 0.091*Reduces operating costs of the company 0.2059 1.2994 1.307 0.196*N: 68.*Do not reject null hypothesis at 95% level of significance.Source: A.M. Turk (2004).Table 6Disadvantages of ISO 9000 QMSDisadvantages Mean Standard deviation t-Statistic p-ValueIncreases the documentation 0.5441 1.0138 4.426 0.000Reduces the productivity of the company À1.1471 0.6293 À15.032 0.000Restricts the unique creativity of the company À1.0882 0.8417 À10.661 0.000Increases the operating costs of the company À0.1618 1.1410 À1.169 0.242*Increases the amount of unnecessary procedures À0.1470 1.2277 À0.099 0.922*N: 68.*Do not reject null hypothesis at 95% level of significance.Source: A.M. Turk (2004).from the population mean. The variable of reduction in using the T-test. According to this test, the average ofthe operating costs of the company is not significantly ‘‘increases the unnecessary procedures’’ and ‘‘increasesdifferent from the population mean as a result of the T- the operating cost of the company’’ variables are nottest. Other variables are meaningfully different from the significantly different from the population mean. Ac-population mean. According to the results of the T-test, cording to the results of the T-test, the firms do notthe most important advantages of ISO 9000 QMS firms agree with the following claims:are, respectively:  ISO 9000 QMS reduces the productivity of the it is a tool for enhancing the company’s image, it is a tool that improves the definitions of the company, responsibilities in the company,  ISO 9000 QMS restricts the unique creativity of the it increases communication with customers, company. it improves company’s operating procedures, it improves the control on sub-contractor firms (Table However, according to the T-test results, the firms consider ‘‘ISO 9000 QMS increases documentation’’ as 5). The first three advantages determined by the firms a disadvantage in the transition to ISO 9000 QMS have obtained the highest scores in the T-test. (Table 6). In the questionnaire survey, the firms have been asked 2.2.3. Experiences of construction firms with ISO 9000about their opinions on the disadvantages of having ISO In the questionnaire, the firms were asked about the9000 QMS. The evaluations of the firms on thedisadvantages of ISO 9000 QMS have been analyzed reasons for having ISO 9000 QMS. The evaluations on the disadvantages of holding ISO 9000 certification have

ARTICLE IN PRESS 509 A.M. Turk / Building and Environment 41 (2006) 501–511Table 7Reasons for seeking ISO 9000 QMS certificationReasons Mean Standard deviation t-Statistic p-ValueCompany desires entering the international construction market 1.7258 0.5483 24.784 0.000It is compulsory for contract bidding 1.4677 0.8040 14.374 0.000ISO 9000 certification will soon be mandatory 1.1613 0.8530 10.719 0.000Certification is necessary for the betterment of the management system of the company 1.0806 0.9286 9.164 0.000Company desires positive change and improvement 0.7581 1.1262 5.300 0.000Certification improves the competitiveness in the internal market 0.6935 1.0337 5.283 0.000Customer requests the certification 0.4839 1.3274 2.870 0.006Other companies had attained or are seeking certification À0.3871 1.2849 À2.372 0.021N: 62.Source: A.M. Turk (2004).again been analyzed by using the T-test. Accordingly, Table 8the reasons why the firms acquire ISO 9000 certificate Experiences of the companies related to ISO 9000 QMS certificationhave been determined according to their order ofprecedence as: No Item Number of all firms the company intends to enter the international V51 How long did it take the construction market, company to be registered it is compulsory for bidding contracts, after official application for ISO 9000 certification will soon be mandatory, certification is necessary for the betterment of the ISO 9000? 46 (76.7a) 0– 6 months management system of the company. 6–12 months 13 (21.7) According to the T-test results, the scores obtainedfrom the first three reasons are very high. In particular, 12–24 months 1 (1.6)the score for the first reason is considerably higher thanother reasons. The firms have considered that the reason More than 24 months —‘‘other firms have attained or are seeking certification’’as not important for holding ISO 9000 certificates V52 Have you ever used any(Table 7). consulting service during In total, 76.7% (46) of the surveyed firms have stated the ISO 9000 registrationthat it takes the company between 0 and 6 months to beregistered after their official application, 21.7% (13) of process?the surveyed firms between 6 and 12 months and 1.6%(1) of the surveyed firms between 12 and 24 months after Yes 55 (90.2)their official application. 90.2% (55) of the surveyedfirms have received consulting service during the ISO No 6 (9.8)9000 registration process. In order to obtain ISO 9000registration, 90.2% (55) of the firms have spent less than V53 What was the approximateUS$ 50,000, 9.8% (6) have spent between US$ cost of obtaining ISO 900050,000–100,000. In total, 56.5% (35) of the surveyedfirms consider that ISO 9000 certification has increased registration? (including thetheir business volume. In total, 43.5% (27) of the firmsexpressed that ISO 9000 QMS has not increased the costs of consulting,company’s volume of contracts. 62.9% (39) of thesurveyed firms are not fully satisfied after the registra- registration, costs oftion of ISO 9000, whereas 37.1% (23) of the surveyedfirms are (Table 8). internal restructuring of In the questionnaire survey, the firms have been asked company)about the difficulties encountered in the process ofattaining ISO 9000 QMS. The evaluations of the firms Less than US$50,000 55 (90.2)about the difficulties encountered in transition to ISO Between US$50,000- 6 (9.8) 100,000 More than US$100,000 — V67 Have you been fully satisfied after the registration for ISO 9000? Yes 23 (37.1) No 39 (62.9) V68 Has the ISO 9000 registration increased the company’s volume of contracts? Yes 35 (56.5) No 27 (43.5) Source: A.M. Turk (2004). aNumbers in brackets in percentages. 9000 QMS have been analyzed again by using the T-test. Accordingly, it has been discovered that the mean rating of the variables, namely ‘‘company operating proce-

ARTICLE IN PRESS510 A.M. Turk / Building and Environment 41 (2006) 501–511Table 9Problems confronted during the ISO 9000 certification process and implementationProblems Mean Standard deviation t-Statistic p-ValueRegistration process is too lengthy 1.1803 0.8662 10.643 0.000ISO 9000 certification has increased the expenses 0.8226 1.0792 6.002 0.000The company management is not open to research and criticisms 0.9167 1.3186 5.385 0.000Company management procedures have changed for implementing QMS 0.5636 1.2585 3.321 0.002Lack of information about ISO 9000 QMS 0.4167 1.0938 2.951 0.005ISO 9000 QMS is not appropriate for construction firms. 0.5000 1.0000 2.876 0.007Volume of documentation and paperwork has increased 0.2561 0.8446 2.501 0.035Company employees do not appreciate the QMS À0.3710 1.0010 À2.114 0.039Qualified employees are needed during registration process 0.1148 1.3051 0.687 0.495*Difficulty in understanding ISO 9000 terminology À0.645 1.4127 À0.360 0.720*Company operating procedures have changed 0.639 1.3477 0.095 0.925*N: 60.*Do not reject null hypothesis at 95% level of significance.Source: A.M. Turk (2004).dures have changed’’, ‘‘there is a problem in under- has been awarded contracts in the international market.standing the ISO terminology’’ and ‘‘qualified employ- This shows that the surveyed construction firmsees are needed during the registration process’’, are not generally have a positive approach to ISO 9000 QMS.significantly different from the population mean. Ac-cording to T-test results, the most important difficulties Examples in the international literature indicate thatexperienced by the firms in the process of attaining ISO most of the construction firms attain this certification9000 QMS are determined as follows: either because their customers have requested it or have made it a condition. The construction firms in Turkey registration process is too lengthy, have attained ISO 9000 QMS certification for the ISO 9000 certification has increased expenses, purpose of entry into the international market, as a the company’s management is not open to research requirement for bidding on contracts and understanding that it will become obligatory in the near future. and criticism, This shows a similarity with other international exam- ples, and is linked with Turkey’s being in a transition restructuring of the personnel system is necessary in period (in the process of accession to the European Union). the firm to establish QMS (Table 9). According to the construction firms surveyed in3. Conclusions and recommendations Turkey, the advantages of having ISO 9000 QMS are: enhancement of the company’s image, better definition3.1. Conclusions of responsibilities in the company, better communica- tion with the customer, improvement in the company’s It can be observed that the number of ISO 9000 QMS operating procedures, and providing tighter controls oncertified construction firms in Turkey is low when the sub-contractors that the firms work with. In thecompared to other countries, particularly European examples of other countries, in addition to suchand Asian countries. An increase in this number will advantages, benefits such as an increase in competitiveimprove the existing position of Turkish construction power, protection of international market shares by thefirms in both the national and international market. firm, and the convenience in contracting projects have been defined. In this respect, Turkey, as an example, As stated in a survey of the literature, much research displays a discrepancy. As a matter of fact, the above-has been carried out as to whether or not ISO 9000 mentioned advantages are not considered to be extraQMS is appropriate for construction firms. Two and important advantages for the surveyed firms.different opinions have emerged as an outcome of the Additionally, nearly half of the surveyed firms haveresearch. According to the results of the questionnaire, stated that having ISO 9000 QMS certification does notmost of the construction firms in Turkey think that ISO increase their business volume.9000 QMS has a positive effect on and is appropriate forconstruction firms. It can be concluded as a result of the According to the construction firms surveyed inquestionnaire that the perceptions of the surveyed Turkey, the most important disadvantage of attainingconstruction firms regarding ISO 9000 QMS are not ISO 9000 QMS certification is the increase in documen-related to the size of the firm or as to whether the firm tation. This result is similar to other studies in the international literature.

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