Policies & Procedures
Project Management Policies & Procedures – A 360° Approach
Ensuring Standardized, Data-Driven, and Risk-Controlled Execution for Mega Construction Projects at BEC Arabia
1. Introduction
At BEC Arabia, Project Management Policies & Procedures ensure the structured execution, governance, and compliance of mega construction projects. These policies provide a clear operational framework, ensuring that projects are:
✅ Delivered on time, within budget, and at the highest quality standards. ✅ Compliant with Saudi regulatory requirements, international best practices, and contractual obligations. ✅ Efficiently managed using digital project management tools (Primavera P6, Aconex, SAP ERP, Power BI).
Applicable Global & KSA Standards:
PMBOK (Project Management Body of Knowledge) – PMI Standards
FIDIC & NEC Contract Administration Frameworks
ISO 9001 (Quality), ISO 45001 (HSE), ISO 14001 (Environmental)
Saudi Contractors Authority (SCA) Regulations & Giga Project Requirements
These policies and procedures form the foundation for seamless project execution and stakeholder collaboration.
2. Project Governance & Approval Hierarchy
2.1 Project Management Authority & Responsibility
Level
Governance Role
Key Responsibilities
Executive Management
CEO, Board, Directors
Strategic oversight, financial approvals, risk mitigation
Project Control & Management Teams
Project Directors, Managers
Cost, schedule, risk, and compliance control
Site Execution & Engineering Teams
Construction Managers, Engineers
On-site implementation, quality assurance
Finance, Contracts & Procurement
Finance Managers, Legal
Budget compliance, contract administration
All decision-making follows a structured approval matrix, ensuring that project approvals are based on data-driven insights and contractual compliance.
3. Project Planning & Scheduling Policies
3.1 Project Initiation & Scope Definition
✅ Project Charters & Feasibility Studies must be approved before execution. ✅ Scope Baselines are defined in alignment with contractual deliverables. ✅ Work Breakdown Structure (WBS) is created for activity-based tracking.
3.2 Schedule Development & Baseline Management
✅ Baseline Schedules are developed in Primavera P6 with Critical Path Analysis (CPM). ✅ Milestone Tracking & Float Management ensures schedule integrity. ✅ Schedule Risk Assessments identify potential timeline disruptions.
📌 Benchmark: Baseline must be approved before execution, with changes tracked in a formal Schedule Change Request (SCR) Log.
4. Cost Control & Financial Policies
4.1 Budgeting & Cost Breakdown Structure (CBS)
✅ Project Budget Approvals are required before mobilization. ✅ Cost Breakdown Structures (CBS) are integrated with Primavera P6 & SAP ERP. ✅ Value Engineering Reviews optimize cost efficiency.
📌 Benchmark: Budget cannot exceed ±5% variance without executive approval.
4.2 Cost Tracking & Variance Control
✅ Earned Value Management (EVM) is used for real-time cost analysis. ✅ All cost overruns (>5%) require Finance & PMO approval. ✅ Contingency Reserves must be allocated for high-risk cost elements.
📌 Reporting Frequency: Weekly financial reports & monthly executive cost reviews.
5. Risk Management & Change Control Policies
5.1 Risk Identification & Classification
✅ Project Risk Registers must be maintained with mitigation plans. ✅ Monte Carlo Simulations & Risk Matrices are used for impact assessment. ✅ Force Majeure & Legal Risks must have contingency contracts in place.
📌 Risk Ownership: Each risk must have a designated Risk Owner for tracking & resolution.
5.2 Change Order Management & Variation Control
✅ Change Orders (CO) & Extension of Time (EOT) requests require formal approvals. ✅ Financial & Schedule Impact Assessments must be conducted for all variations. ✅ All contract amendments are logged in Aconex for audit purposes.
📌 Benchmark: Change Orders must not exceed 15% of the original contract value without legal approval.
6. Contract Administration & Legal Compliance Policies
6.1 Contract Compliance & Claims Management
✅ FIDIC-based contract terms govern project execution & obligations. ✅ Dispute Resolution Mechanisms (DAB, Arbitration) are pre-defined in contracts. ✅ Liquidated Damages (LD) clauses apply for delays beyond contractual allowances.
📌 Benchmark: All contracts must be legally vetted before execution.
6.2 Procurement & Vendor Compliance
✅ All suppliers must be prequalified & assessed for compliance risks. ✅ Material & Equipment Deliveries must align with project milestones. ✅ Subcontractor Performance Reviews are conducted quarterly.
📌 Reporting Frequency: Procurement & Contracts must provide monthly compliance audits.
7. Health, Safety & Environmental (HSE) Compliance
7.1 Safety Management (ISO 45001)
✅ All construction activities require a pre-approved Method Statement & Risk Assessment. ✅ Permit-to-Work (PTW) system is mandatory for high-risk activities. ✅ HSE Audits & Toolbox Talks must be conducted weekly.
📌 Benchmark: Zero LTI (Lost Time Injury) goal per project site.
7.2 Environmental Compliance (ISO 14001)
✅ Waste Management Plans & Environmental Impact Assessments (EIA) are mandatory. ✅ Sustainable Construction & Energy Efficiency Plans must be integrated. ✅ Air & Noise Pollution Controls must be documented & monitored.
📌 Benchmark: 98% compliance with Saudi Environmental Regulations.
8. Quality Assurance & Inspection Policies
8.1 Quality Control & ISO 9001 Compliance
✅ All materials & workmanship must pass predefined quality inspections. ✅ Non-Conformance Reports (NCR) must be rectified within contractual timelines. ✅ Inspection Test Plans (ITP) & Quality Control Checklists are mandatory.
📌 Benchmark: ≥ 98% defect-free work compliance.
8.2 Project Closeout & Handover Procedures
✅ Final Project Handover requires a Completion Certificate & As-Built Drawings. ✅ Defect Liability Period (DLP) Tracking ensures warranty commitments. ✅ All closeout documentation is archived in Aconex.
📌 Benchmark: 100% closeout compliance for all deliverables.
9. Digital Project Management & Reporting
9.1 Data-Driven Decision-Making
✅ Power BI Dashboards provide real-time project analytics. ✅ All site reports, financial reports, and HSE logs are digitized in Aconex. ✅ Project Control Teams conduct weekly KPI Performance Reviews.
📌 Benchmark: 100% digital compliance & cloud-based reporting.
10. Conclusion
The Project Management Policies & Procedures at BEC Arabia provide: ✅ A structured governance model ensuring seamless project execution. ✅ Full compliance with Saudi regulatory frameworks & global standards. ✅ Optimized risk management, cost control, and schedule adherence. ✅ Data-driven project monitoring & digital collaboration for efficiency.
By integrating real-time compliance tracking, digital reporting, and standardized workflows, BEC Arabia ensures consistent project success, financial stability, and operational excellence.
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