Risk Management
Quality Assurance & Quality Control (QAQC) Risk Management – A 360 Degree Approach
Ensuring Proactive Identification, Mitigation, and Compliance for Quality Risks in Mega Construction Projects
1. Introduction
The QAQC Department at BEC Arabia plays a critical role in risk management by ensuring design accuracy, construction quality, regulatory compliance, and defect prevention. Risks in quality management can lead to:
Cost overruns due to rework and defective materials
Project delays caused by non-conformance and regulatory non-compliance
Legal and financial penalties resulting from regulatory violations
Safety risks associated with poor construction quality
A 360-degree risk management framework integrates:
Risk Identification and Classification – Detecting potential risks early in the project lifecycle
Risk Analysis and Mitigation Strategies – Preventing cost, schedule, and compliance failures
Technical Coordination and Regulatory Risk Control – Ensuring alignment with Saudi Building Code, FIDIC, and ISO standards
Digital Monitoring and Reporting – Tracking risks using Aconex, Primavera P6, SAP ERP, and Power BI dashboards
This proactive approach minimizes quality-related failures, contractual disputes, and project disruptions, ensuring seamless project execution and high compliance standards.
2. QAQC Risk Governance and Responsibility Matrix
2.1 Quality Risk Management Structure
Risk Level
Responsible Stakeholders
Key Risk Oversight Areas
Strategic Risks
CEO, Directors, Risk Management Team
Regulatory compliance, financial risk, contractual obligations
Technical and Execution Risks
QAQC Managers, Engineers, Consultants
Construction quality, material defects, non-conformance
Regulatory and Compliance Risks
Regulatory Affairs, HSE, Auditors
Saudi Building Code compliance, ISO adherence, legal regulations
Project-Level Risks
Site Engineers, Technical Office, Document Controllers
RFI resolution, change management, subcontractor quality control
Benchmark: All high-impact quality risks must be reported within 24 hours and addressed within 72 hours.
3. Risk Identification and Classification in QAQC
3.1 Key Risk Categories in QAQC
Risk Type
Potential Threats
Impact Area
Mitigation Strategies
Design Risks
Errors in drawings, late approvals, incorrect assumptions
Cost, Rework, Schedule
Multi-tiered design review, BIM clash detection
Regulatory Risks
Non-compliance with Saudi Building Code, ISO violations, permit issues
Compliance, Legal
Pre-approval processes, regulatory audits
Construction Risks
Poor workmanship, deviations from specifications, site safety violations
Quality, Safety, Rework
Quality training, strict supervision, QAQC inspections
Schedule Risks
Delays in quality inspections, late RFI responses
Project Timeline
Primavera P6 tracking, milestone approvals
Material Risks
Use of non-compliant materials, supply chain disruptions
Construction Delays
SAP ERP integration, third-party material testing
Supplier and Subcontractor Risks
Non-adherence to quality standards, delays in approvals
Rework, Cost Overruns
Pre-qualification of vendors, structured quality audits
Benchmark: All QAQC risks must be categorized by severity and probability, with documented mitigation plans.
4. Risk Analysis and Mitigation Strategies
4.1 Risk Probability and Impact Analysis
BEC Arabia follows qualitative and quantitative risk analysis methods to assess QAQC risks:
Probability-Impact Matrix (PIM) – Categorizes risks into Low, Medium, High, and Critical based on financial and schedule impact
Monte Carlo Simulations – Forecasts the probability of cost and schedule overruns based on historical project data
Failure Mode and Effect Analysis (FMEA) – Used to assess quality risks in construction execution
Benchmark: All high-impact risks (above 10 percent budget or schedule impact) require executive-level review and mitigation approval.
4.2 QAQC Risk Response Strategies
Mitigation Type
Strategy
Application in QAQC
Avoidance
Prevent risk occurrence
Conduct early feasibility and clash detection
Reduction
Minimize risk impact
Use BIM 360 for real-time design coordination
Transfer
Shift risk responsibility
Use contractual clauses for defective materials
Acceptance
Plan for risk occurrence
Allocate contingency budget and time buffers
Benchmark: 80 percent of risks must be addressed through preventive strategies, reducing last-minute emergency responses.
5. Regulatory and Compliance Risk Control
5.1 Compliance with Saudi Building Code and Municipality Requirements
All QAQC activities must pass regulatory audits before construction execution
Permit risks must be identified early to prevent project shutdowns
Environmental Impact Assessments must be integrated into quality plans
Key Compliance Risks:
Unapproved materials leading to regulatory penalties
Failure to secure permits causing construction delays
Non-compliance with seismic or fire safety codes
Mitigation: Implement pre-approval checklists and compliance tracking in Aconex.
Benchmark: 100 percent regulatory compliance with zero permit-related delays.
5.2 Contractual Risk Mitigation (FIDIC, NEC)
All QAQC deliverables must meet contract-defined quality specifications
Changes to work methods must be formally documented and approved
Any dispute regarding defective work must follow FIDIC Dispute Avoidance Procedures
Key Contractual Risks:
Failure to meet contractual quality deliverables
Material deviations leading to cost overruns and legal disputes
Non-compliance with consultant-approved Inspection and Test Plans
Mitigation: Digital contract compliance tracking and dispute resolution protocols.
Benchmark: Zero contractual disputes related to QAQC deliverables.
6. Digital Risk Monitoring and Control
6.1 QAQC Risk Tracking and Automation
Technology
Functionality
Risk Control Area
Aconex
Document Control, Non-Conformance Tracking
Prevents quality violations and project delays
BIM 360
Clash Detection, Model Coordination
Reduces construction rework and engineering errors
SAP ERP
Material Compliance, Procurement Risk
Prevents supply chain disruptions and defective material use
Primavera P6
Quality Schedule Risk Analysis
Ensures on-time completion of quality inspections
Power BI Dashboards
Real-Time Risk Analytics
Tracks NCR closure rates and compliance failures
Benchmark: 100 percent real-time risk monitoring for early intervention.
7. QAQC Risk-Based KPI Performance Monitoring
KPI Name
Definition
Target Benchmark
Risk Mitigation Success Rate
Percentage of identified risks successfully mitigated
Minimum 85 percent
Risk Impact on Cost Variance
Variance between risk-adjusted and forecasted costs
Maximum 3 percent
Non-Conformance Closure Rate
Percentage of NCRs closed within agreed timeframe
Minimum 95 percent
Construction Delay Due to Quality Issues
Percentage of delays caused by unresolved QAQC issues
Maximum 5 percent
Benchmark: All high-impact risk incidents must be closed within 30 days of identification.
8. Conclusion
The QAQC Risk Management Framework at BEC Arabia ensures:
Proactive risk identification and digital tracking for quality control
Integration of risk control measures with engineering, contracts, and regulatory teams
Minimized impact of defective work, material non-conformance, and regulatory violations
Data-driven decision-making using real-time risk analytics
By embedding structured risk mitigation strategies into QAQC workflows, BEC Arabia ensures high-quality, defect-free, and fully compliant construction projects.
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