FOR IMMEDIATE RELEASE
March 5, 2008


The Auditor Gets Audited, and Scores High Marks in First Annual ISO Review

San Diego , CA — "A third-party auditing firm has just audited the nation's leading construction auditing firm, and gave highest marks to Quality Built® during their first annual ISO review," said a company spokesperson.

Quality Built® focuses on helping builders achieve higher quality and elimination of risk, and is the only such firm in the nation to achieve the coveted international registration ISO 9001:2000, which it received in February 2007. "Our auditor was impressed by the depth of our quality processes and corrective actions, and as he dug deeper and deeper he became more impressed," said Mark Brock- Farrington, Quality Built's Director of Quality Assurance, who manages the company's internal and external auditing processes. "He found zero minor and zero major conditions, essentially giving us a perfect score."

The International Organization for Standardization (ISO) is an internationally recognized standards-setting body comprised of 158 member countries around the globe. Quality Built is the only registered QA firm in the U.S. that focuses on builder quality. Of the more than 230,000 builders in the U.S., only four builders have attained ISO registration. Companies are monitored by third-party registered auditing firms who check a company's compliance to the international standard.

Construction quality has become more popular in recent times, primarily due to the insurance industry changing its underwriting guidelines and embracing builders who can prove their quality practices. In the past, builders were grouped together and shared similar risk profiles and bad builders often received insurance similar to builders who could prove their quality systems were superior. Today, large insurers such as Zurich North American Insurance and Arch Insurance embrace and promote quality assurance metrics, which has had an impact in the industry over the past several years.

Statistics compiled by the Insurance Information Institute revealed the property-casualty insurance industry projected a $31.2 billion underwriting profit in 2007, the largest ever. Analysts believe profits were high due to a light hurricane season, but quality experts believe that the construction industry is turning itself around and producing homes with fewer defects, reminiscent of the US auto industry in the 1980's. Statistics show the insurance industry suffered losses in many other years where catastrophes were light, furthering supporting quality revolution being responsible for reduced claims.

Data released by Quality Built on 75,359 homes built in 2006 showed its client builders eliminated more than $1.73 billion in construction defect risk and residual costs, according to its published study. Quality Built collected nearly 12 million quality "checkpoints" that year, along with 2.5 million digital photos to verify quality assurance for its clients. Quality Built's system is unique in that good construction quality is measured along with anomalies. The value is calculated from the estimated cost to repair a known deficiency and includes underwriting costs typically paid in litigation. Quality Built's auditing program measures a builder or trade contractor's performance and compliance to industry standards, and ranks builders from one to five, with five being the highest achievable level. To date, only two builders have achieved the highest level, with most builders falling into the middle of the pack. Some insurance companies have refused to provide coverage to builders who have fallen below Tier III ranking, so pressure is building in the industry to promote quality with insurance costs being a significant driver, along with the widening threat of construction defect litigation.

"It's ironic that we are an auditing company that must get audited," said Stan Luhr, Quality Built's founder and CEO. "But having ISO registration as our core culture sets us apart and gives us the credibility to practice what we preach." Luhr added that Zurich is one such insurance company who has adopted ISO, with other insurers and builders likely to follow. For builders, Luhr believes it will be just a matter of time as they see how profitable it is to have a culture for quality driving their entire business.

Obtaining ISO registration was a 12-year plan for the company's President and CFO Beth Michaelis, who appointed Mark Brock-Farrington to focus the company into a process-driven model in 2005. Their next focus is to help builders become more efficient using Quality Built's methods. "I hope we can get builders to understand the importance of this registration what it does for builders and how they can truly become more efficient and profitable," said Michaelis. "We need this more than ever in today's tough builder economy."

Quality Built's services include jobsite inspection of residential and high-rise developments, utilizing three patent-pending technologies to identify problems that must be corrected to improve quality. The company also innovated a builder risk-audit program that is used by leading insurance companies to judge builder construction quality and provides a baseline from which to improve. Quality Built's field staff utilize innovative ruggedized computers to track everything from foundation rebar to finishes on a project. The electronic data and digital photographs taken during construction provide builders and their insurers with important information to improve construction and deliver higher quality homes.

"It's a new wave for the construction industry, to embrace true quality metrics and justify that it is worth it." Luhr added, "Everyone sleeps well at night when quality systems are in place, and that gives me encouragement that this is good for our industry."


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About Quality Built
Quality Built® is the largest provider of quality assurance services in the nation, operating in 28 states and serving over 170,000 units in production. More than 2,000 builders, including 17 of the 20 largest homebuilders, have relied on Quality Built for reducing construction risk. In 2006, Quality Built consultants gathered 12 million quality checkpoints and 2.27 million digital photos on 75,359 new homes. Quality Built has received publication of three U.S. patents on its processes and achieved ISO 9001:2000 registration in February—the first of its kind in the U.S. for such a firm. More information may be obtained at www.qualitybuilt.com.


For further information, please contact:
Marketing Department…….......Tel:  800-547-5125..................Email:   marketing@qualitybuilt.com

 

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