£7m is the Cost of Poor Quality for Bovis Homes

A classic example here of the potential costs from allowing the standard of customer service and product quality to fall way below expected standards.

Bovis Homes has agreed to fund remedial work of at least £7m after customers in its new-build homes joined together on Facebook to express anger at high-pressure sales techniques and shoddy workmanship.

Intense pressure to meet sales targets for 2016 meant that homebuyers who were close to legally completing their move into a new Bovis Home were put under undue influence to complete the legal process and move in - well before their new home were ready.

Bovis Homes is one of the UK's largest housebuilders, building around 4,000 new properties each year. Over 1,400 customers joined a Facebook group to share and publicise their horror-stories of faulty plumbing and half-finished tiling.

Bovis Homes say it has formed a "Customer Service Task Force" to solve the issues and investigate changes required to the housebuilding and marketing processes in the firm.

Shareholders were just just as unhappy as customers - the Bovis Homes share price dropped 8% on news of the additional costs involved.