Policies and Procedures
Project Control Policies and Procedures – A 360° Approach
Ensuring Standardized, Data-Driven, and Risk-Controlled Project Execution at BEC Arabia
1. Introduction
The Project Control Policies and Procedures at BEC Arabia establish a structured, data-driven, and risk-mitigated framework for managing mega construction projects. These policies ensure that projects are delivered on time, within budget, and with full regulatory and contractual compliance, aligning with:
PMBOK (Project Management Body of Knowledge) Standards
AACE Recommended Practices for Cost & Schedule Control
FIDIC and NEC Contractual Frameworks
ISO 9001 (Quality), ISO 45001 (HSE), and ISO 14001 (Environmental Compliance)
Saudi Contractors Authority (SCA) & KSA Regulatory Requirements
A 360° approach integrates cost control, scheduling, risk management, change control, and compliance to ensure seamless collaboration across departments such as Engineering, Procurement, Contracts, Finance, and Site Execution.
2. Project Control Governance Framework
BEC Arabia follows a structured governance framework that ensures alignment across all project phases and stakeholders.
2.1 Project Control Hierarchy and Responsibilities
Level
Responsibility
Key Focus Areas
Executive Management
Strategic oversight
Compliance, high-level risk management, financial governance
Project Control Leadership
Policy enforcement
Budget approvals, schedule baseline adherence, risk mitigation
Cost Control Team
Financial monitoring
Cost tracking, forecasting, earned value management
Planning & Scheduling Team
Schedule adherence
Primavera P6 scheduling, critical path monitoring
Risk & Change Control Team
Risk mitigation
Change order evaluation, claims management
Site Control & Execution Team
On-site performance
Productivity tracking, real-time progress reporting
All Project Control activities are documented, monitored, and audited using integrated systems such as Aconex (Document Control), Primavera P6 (Scheduling), SAP/ERP (Cost Control), and Power BI (Performance Reporting).
3. Cost Control and Budgeting Policies
3.1 Budget Development and Approval
Project budgets are established based on detailed cost estimation methodologies (bottom-up estimation, parametric modeling, analogous estimation).
Cost Breakdown Structure (CBS) is developed in alignment with the Work Breakdown Structure (WBS).
Budget approvals follow a four-stage validation process (Project Control → Finance → Executive Management → Client Approval).
3.2 Cost Monitoring and Forecasting
Real-time cost tracking is conducted through an integrated ERP-based cost control system.
Earned Value Management (EVM) is used for tracking cost performance indices (CPI).
Financial forecasts are updated monthly based on actual expenditures vs. budgeted costs.
3.3 Cost Variance and Budget Adjustments
Variance thresholds are established:
Minor variances (<5%) – Addressed within the Project Control team.
Medium variances (5-10%) – Requires executive review and potential reallocation.
Major variances (>10%) – Requires formal budget revision and stakeholder approval.
4. Scheduling and Planning Policies
4.1 Project Baseline Development
Baseline schedules are developed in Primavera P6 using Critical Path Method (CPM) and resource leveling techniques.
Schedule risk analysis is conducted using Monte Carlo simulations to predict potential delays.
4.2 Progress Monitoring and Performance Tracking
Daily, weekly, and monthly progress tracking is mandatory, with:
Planned vs. actual progress analysis.
Resource utilization efficiency tracking.
Look-ahead schedules (2-week and 3-month forecasting).
4.3 Schedule Change Control
Formal change request process is required for any schedule deviations exceeding 3% impact on project duration.
Delay analysis is conducted using forensic scheduling methods to assess Extension of Time (EOT) claims.
5. Change Management and Variation Control Policies
5.1 Change Order Approval and Documentation
All changes require a formal Change Request (CR) submission.
Financial and schedule impact assessments must be conducted before approval.
Variation Order (VO) documentation must be aligned with contractual terms.
5.2 Claims Management and Extension of Time (EOT) Procedures
Claims assessment includes Time Impact Analysis (TIA) and Cost Impact Analysis (CIA).
All EOT claims require substantiated justification, including delay event logs and forensic schedule analysis.
6. Risk Management and Mitigation Policies
Effective risk management in mega construction projects ensures proactive identification, mitigation, and control of potential project risks that could impact cost, schedule, safety, or quality. The Project Control Department follows a structured risk framework, integrating:
ISO 31000 (Risk Management Standard)
PMBOK Risk Management Framework
Saudi Contractors Authority (SCA) Compliance Requirements
FIDIC and NEC Contractual Risk Provisions
6.1 Risk Identification and Classification
All identified risks are classified using a structured matrix:
Risk Type
Examples
Risk Impact Category
Mitigation Approach
Schedule Risks
Delays in material delivery, contractor delays
High
Buffer time allocation, vendor management
Cost Risks
Fluctuations in material costs, inaccurate estimates
High
Dynamic cost forecasting, price escalation clauses
Regulatory Risks
Permitting delays, labor law non-compliance
Medium
Pre-approvals, compliance audits
HSE Risks
Site accidents, environmental hazards
Critical
Safety training, emergency response planning
6.2 Risk Monitoring and Response Planning
Risk registers are updated monthly with likelihood-impact assessments.
Mitigation strategies are implemented using preventive vs. reactive approaches.
Critical risks (>15% cost/schedule impact) require executive-level decision-making.
6.3 Risk Contingency and Response Mechanisms
Allocated Contingency Budget: A fixed percentage of project budget is earmarked for risk mitigation.
Scenario-Based Planning: Alternative execution plans are developed for high-impact risks.
Force Majeure Handling: Risks related to natural disasters, supply chain failures, or geopolitical changes follow force majeure contract clauses.
7. Compliance and Regulatory Policies
The Project Control Department ensures adherence to:
KSA Labor Laws & Workforce Compliance Regulations (MHRSD, Nitaqat, WPS)
Saudi Building Code & Local Municipality Approvals
FIDIC Contractual Framework for Claims, Variations & EOT Requests
ISO Certifications (9001 for Quality, 45001 for HSE, 14001 for Environmental Compliance)
7.1 Contractual Compliance
All contracts are reviewed for adherence to payment terms, scope definitions, and risk allocation.
Contract deviation logs are maintained for tracking variations and disputes.
All contractual obligations are mapped in the Cost Breakdown Structure (CBS) for financial alignment.
7.2 Regulatory Compliance Audits
Quarterly regulatory audits are conducted across all project sites.
Non-compliance penalties and risk registers are tracked in Power BI dashboards.
All compliance documentation is digitally archived in Aconex for audit trail purposes.
8. Quality Control and Assurance Policies
Quality control is integrated into project control procedures to ensure compliance with:
ISO 9001 (Quality Management Systems)
Project-Specific QA/QC Checklists for Deliverables
Saudi Aramco, NEOM, and PIF Mega Project Quality Standards
8.1 Material and Workmanship Compliance
All materials used in construction must comply with Saudi Building Code & Project Specifications.
Procurement quality assurance is managed through vendor prequalification programs.
Inspection and Test Plans (ITPs) are enforced for key construction milestones.
8.2 Non-Conformance Reporting (NCR) and Corrective Actions
All NCRs are logged in Aconex and tracked until resolution.
Quality deviations must be rectified within contractual rectification periods.
Root Cause Analysis (RCA) is conducted for repeated quality failures.
9. Project Closeout and Handover Policies
The Project Control Department oversees the closeout phase, ensuring all contractual, financial, and regulatory obligations are met before final project handover.
9.1 Closeout Documentation and Final Inspections
Completion Certificates: Issued only after contractual compliance is verified.
As-Built Drawings & O&M Manuals: Finalized and handed over to the client.
Defect Liability Period (DLP) Monitoring: Ensures any post-handover defects are addressed within contractually defined periods.
9.2 Financial Reconciliation and Contractual Closeout
Final cost reports are reconciled against approved budgets.
All retention payments and performance bonds are processed.
Final audit and compliance reports are submitted to regulatory bodies.
10. Project Control System Integration
BEC Arabia integrates multiple project control tools and software to ensure streamlined project governance:
System
Functionality
Integration
Primavera P6
Project scheduling & critical path monitoring
Planning, Execution
Aconex
Document control & compliance tracking
Regulatory & Contracts
SAP ERP
Cost control & financial forecasting
Finance, Procurement
Power BI
Performance analytics & KPI tracking
Risk, Reporting
FIDIC Compliance Logs
Variation & claims management
Contract Administration
11. Conclusion
The Project Control Policies and Procedures at BEC Arabia provide a comprehensive, data-driven, and risk-managed framework to ensure:
Regulatory compliance with KSA construction laws, FIDIC, and ISO standards.
Seamless cost, schedule, and quality control through industry best practices.
A structured governance model that integrates all project stakeholders for optimized execution.
This structured 360° Project Control framework enables BEC Arabia to deliver mega projects with operational excellence, financial efficiency, and contractual adherence.
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