This study considers reliability growth management as the excellent method for construction equipment development with the effect on decreasing COPQ(Cost of Poor Quality Cost) of new products. MIL-HDBK-189A(1981) and RADC-TR-84-20(1984) standards provide a general concept of reliability growth management including to reliability growth test, models and FRACAS(Failure Reporting and Corrective Action System). There is no study how to apply reliability growth management to construction equipment(or machine) development. This paper propose the method to apply it to construction equipment development process from the reliability target setting for developing products to launching them at market. It is expecially showing how to set target reliability for new developing equipment and the development risk to reach the reliability target in detail.