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16. June 2025

The true costs of construction defects for your company

Inefficient defect management is a significant financial burden for the entire construction industry. In 2021 alone, the damage sum caused by construction defects in Germany amounted to around 16.5 billion euros. This figure highlights that these are not isolated incidents, but rather a systemic problem. For your company, these defects mean direct costs for corrections that diminish profits. Often, the costs for defect rectification exceed the original expenditure by two to three times. Additionally, there are indirect costs due to project delays, contractual penalties, and the high administrative effort required for coordination. A study shows that the share of error costs in industry turnover averages 11.4%. A professional digital defect management is therefore not a luxury but an economic necessity to secure your profitability.

Guarantee legal certainty according to VOB/B and BGB

A seamless and traceable documentation is the foundation for the legal protection of your construction projects. Both the Civil Code (BGB) and the Award and Contract Regulations for Construction Services (VOB/B) set clear requirements for reporting and rectifying defects. An informal defect notification via call or text message often does not meet these requirements. In the absence of a court-admissible proof, warranty claims may expire or be difficult to enforce. The warranty period for buildings according to VOB is generally 4 years. During this time, you must be able to accurately substantiate every defect report. A digital system ensures that all relevant information is stored unchangeably. Learn more about the requirements for a defect report. Digital recording secures the necessary evidence and protects you from unjustified claims.

From paper chaos to a centralized information platform

The reality on many construction sites consists of a mix of sticky notes, Excel spreadsheets, emails, and countless WhatsApp photos. This fragmented communication inevitably leads to information loss and misunderstandings. A digital construction documentation centralizes all data and makes it immediately available to all stakeholders. This reduces error sources caused by illegible handwriting or outdated plan versions. The transition to a central platform offers the following advantages:

  • Immediate availability: All data is synchronized in real-time in the office and on the construction site.
  • No media breaks: Information no longer needs to be manually transferred from one system to another.
  • Clear assignment: Every task and every defect is clearly assigned to a responsible person with a deadline.
  • Seamless history: Every change and every communication is automatically logged and can be traced at any time.

This structure creates a “Single Source of Truth” that can increase the efficiency of defect tracking by up to 70%. This lays the foundation for smooth collaboration.

Core functions for effective digital defect management

A powerful software for digital defect recording must do more than just store photos. It should represent the entire process from recording to clearance. Mobile recording directly on site is just the first step. Crucially, it must include features that minimize administrative effort and accelerate processes. These include:

  1. Mobile recording with photo documentation: Record defects on-site with photos, notes, and exact plan location in less than 60 seconds.
  2. Automated assignment: Immediately assign defects to the responsible subcontractor along with a deadline for rectification.
  3. Status tracking in real-time: Transparent tracking of the processing status of each defect, from “open” to “resolved”.
  4. Automated logs: Export legally secure defect logs and construction site reports as PDF at the push of a button.
  5. Deadline monitoring: Automatic reminders for open defects and expiring deadlines prevent delays.

This automation can reduce processing time for defects by an average of 12 days. This not only accelerates acceptance but also improves collaboration with all project partners.

Acceptance on the construction site: The key to success

The best software is useless if it is not accepted by the workers on site. Complex applications with long training periods often lead to frustration and rejection. Studies show that 94 percent of users observe an improvement in quality control when the software is easy to use. Valoon therefore relies on an interface that everyone already knows and uses: WhatsApp. No installation of a new app or training effort for on-site staff is required. This simplicity results in an acceptance rate of over 90%. The integrated live translation also effortlessly overcomes language barriers in international teams. A simple mobile defect management is the decisive factor for a successful digitization of your construction site.

Conclusion: Your advantage with Valoon

A professional digital defect management is a crucial lever for increasing the efficiency and minimizing the risks of your construction projects. It is about solving problems before they become costly. With Valoon, you rely on a solution specifically designed for the needs of the construction industry that stands out for its maximum simplicity. You benefit from time savings by capturing data in under a minute, legal certainty through seamless, VOB-compliant documentation and efficiency through accelerated processes and reduced costs. Say goodbye to communication chaos and secure the profitability of your projects. Book your free demo now and convince yourself of the benefits.

More Links

BSB e.V. provides detailed analyses and studies on construction damage in its Construction Damage Report Update 2022.

Central Association of the German Construction Industry (ZDB) presents its positions on digitization in the construction industry.

Fraunhofer Institute for Building Physics IBP provides information on digitization and Building Information Modeling (BIM).

PwC highlights the challenges faced by the construction industry in the digital and ESG areas, particularly bureaucracy and skilled labor shortages, in a press release.

Roland Berger offers a study on digitization in the construction industry.

BG Bau informs in an article about the future of construction and the path to digital construction.

TU Wien offers a master’s thesis addressing defect management, the structuring of construction defects, and their impacts.

Fraunhofer IESE has published a study on digitization in the construction industry.

FAQ

How does defect recording work with Valoon?

Your employees on the construction site simply send a photo or a voice message of the defect via WhatsApp to a project-specific number. Our AI analyzes the data, captures the defect in the system, and automatically assigns it to the correct project and trade. In the office, you can then edit the defect on the PC, assign it to a subcontractor, and track the rectification.

Is documentation with Valoon legally secure?

Yes. All transmitted data, including photos, comments, timestamps, and communication histories, are stored unchangeably and securely in the digital construction file. The generated PDF logs meet the requirements for legally secure documentation according to VOB/B and BGB.

Do my subcontractors have to use Valoon as well?

No, this is one of the major advantages. You can send defect reports and tasks directly from Valoon as PDF via email to your subcontractors. They do not need their own access and do not have to learn new software, which significantly simplifies collaboration.

What costs are incurred for use on the construction site?

For employees on the construction site who report defects via WhatsApp, the use is completely free. Our pricing model is based on the number of users in the office (e.g., project and construction managers) who manage and control the data. This lowers the entry barrier and promotes acceptance.

Can Valoon do more than just defect management?

Yes. The platform is designed for all construction documentation. You can also create construction site reports, conduct time tracking, document measurements, and consolidate all project communication in one central place.

How quickly can I start with Valoon?

The setup is straightforward and only takes a few minutes. After a short online introduction for office staff, you can start immediately. Since the employees on the construction site do not need a new app, a lengthy implementation and training phase is not required.

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