KPIs and Performance Metrics

Quality Assurance & Quality Control (QAQC) KPIs and Performance Metrics – A 360 Degree Approach

Ensuring Measurable Quality Excellence, Compliance, and Continuous Improvement in Mega Construction Projects

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1. Introduction

Key Performance Indicators and Performance Metrics in the QAQC Department at BEC Arabia ensure:

• Measurable quality assurance and compliance with Saudi Building Code, ISO 9001, and project specifications

• Effective defect prevention and non-conformance resolution

• Seamless coordination between engineering, procurement, and construction teams for quality control

• Regulatory and contractual compliance monitoring

• Data-driven decision-making to continuously improve quality standards

These KPIs are categorized into five major performance areas:

KPI Category	Focus Area
Quality Compliance and Regulatory KPIs	Ensures compliance with Saudi Building Code, ISO, and legal quality mandates
Material and Supplier Quality KPIs	Monitors material testing, supplier approvals, and technical compliance
Construction Execution and Inspection KPIs	Tracks site inspections, defect rates, and work compliance
Non-Conformance and Defect Resolution KPIs	Measures efficiency in resolving quality issues
Quality Audit and Risk Mitigation KPIs	Ensures internal and external audits verify process adherence

By leveraging digital tracking tools such as Aconex, SAP ERP, Power BI, and Primavera P6, BEC Arabia ensures proactive quality control and compliance tracking.

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2. Quality Compliance and Regulatory KPIs

2.1 Regulatory Compliance Rate

Definition: Measures the percentage of construction activities that comply with Saudi Building Code, ISO 9001, and local regulations without violations

Formula: Regulatory Compliance Rate = (Compliant QAQC Inspections / Total QAQC Inspections) x 100

Target Benchmark: Minimum of 98 percent compliance with regulatory standards

Reporting: Monthly compliance review in Power BI dashboards

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2.2 Saudi Building Code and Municipality Inspection Pass Rate

Definition: Measures the success rate of municipality and Saudi Building Code inspections without rejections

Formula: Inspection Pass Rate = (Passed Inspections / Total Inspections Conducted) x 100

Target Benchmark: Minimum of 95 percent approval rate with zero regulatory violations

Reporting: Tracked via regulatory inspection logs and compliance dashboards

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2.3 ISO Certification Compliance Rate

Definition: Measures the adherence of QAQC processes to ISO 9001, ISO 45001, and ISO 14001 standards during audits

Formula: ISO Compliance Rate = (ISO Compliant QAQC Processes / Total QAQC Processes Audited) x 100

Target Benchmark: Minimum of 99 percent ISO compliance with zero major non-conformances

Reporting: Annual internal and external ISO audits

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3. Material and Supplier Quality KPIs

3.1 Material Compliance Rate

Definition: Measures the percentage of approved materials that meet technical specifications without rejection

Formula: Material Compliance Rate = (Accepted Material Batches / Total Material Batches Inspected) x 100

Target Benchmark: Minimum of 99 percent compliance for all material approvals

Reporting: Tracked via material approval logs in SAP ERP

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3.2 Supplier Quality Performance Index

Definition: Evaluates the performance of suppliers based on material quality, delivery, and compliance

Formula: Supplier Quality Performance Index = (Compliant Deliveries + On Time Deliveries - Defective Deliveries) / Total Deliveries x 100

Target Benchmark: Minimum of 90 percent supplier compliance

Reporting: Supplier performance monitoring via procurement dashboards

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4. Construction Execution and Inspection KPIs

4.1 Site Inspection Pass Rate

Definition: Measures the percentage of construction works inspected that meet quality standards without rework

Formula: Site Inspection Pass Rate = (Approved Inspections Without Defects / Total Inspections Conducted) x 100

Target Benchmark: Minimum of 95 percent pass rate with minimal corrective actions

Reporting: Daily site inspection reports and Power BI dashboards

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4.2 Defect Rate

Definition: Measures the percentage of construction defects identified per project phase

Formula: Defect Rate = (Defective Work Items / Total Work Items Inspected) x 100

Target Benchmark: Maximum of 2 percent defect rate across all work phases

Reporting: Tracked through site inspection and punch list reports

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5. Non-Conformance and Defect Resolution KPIs

5.1 Non-Conformance Report Closure Rate

Definition: Measures the percentage of Non-Conformance Reports closed within the defined corrective action timeframe

Formula: Non-Conformance Report Closure Rate = (Closed NCRs / Total NCRs Issued) x 100

Target Benchmark: Minimum of 95 percent closure within target deadlines

Reporting: QAQC tracking through Aconex and Power BI dashboards

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5.2 Rework Due to Quality Issues

Definition: Measures the percentage of total construction work that requires rework due to quality issues

Formula: Rework Rate = (Rework Cost Due to QA Issues / Total Project Cost) x 100

Target Benchmark: Maximum of 2 percent rework cost due to quality errors

Reporting: Cost control dashboards and Primavera P6 analysis

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6. Quality Audit and Risk Mitigation KPIs

6.1 Quality Audit Pass Rate

Definition: Measures the percentage of QAQC processes that pass internal and external quality audits

Formula: Audit Pass Rate = (Successful Audit Reviews / Total Audit Reviews Conducted) x 100

Target Benchmark: Minimum of 95 percent audit compliance with no major findings

Reporting: Annual third-party audits and monthly internal reviews

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6.2 Quality Risk Mitigation Effectiveness

Definition: Measures the percentage of identified quality risks that were successfully mitigated

Formula: Quality Risk Mitigation Rate = (Resolved Quality Risks / Identified Quality Risks) x 100

Target Benchmark: Minimum of 90 percent risk mitigation effectiveness

Reporting: Monthly risk management reviews and site monitoring reports

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7. Conclusion

The QAQC KPI and Performance Monitoring Framework at BEC Arabia ensures:

• Data-driven quality control and compliance tracking for mega projects

• Minimized defects, reduced rework, and enhanced material compliance

• Regulatory and contractual adherence with structured reporting and audits

• Digitalized quality monitoring using Power BI, SAP ERP, and Aconex

By implementing structured KPI tracking and real-time analytics, BEC Arabia ensures proactive quality control, regulatory compliance, and continuous improvement.