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JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999 / 41
PEER-REVIEWED PAPER
ISO 9000 Q
UALITY
S
TANDARDS IN
C
ONSTRUCTION
By Abdulaziz A. Bubshait,
1
Member, ASCE, and Tawfiq H. Al-Atiq
2
A
BSTRACT
:There is risk involved in any construction project. Acontractor’s quality assur-
ance system is essential in preventing problems and the reoccurrence of problems.This system
ensures consistent quality for the contractor’s clients. An evaluation of the quality systems of
15 construction contractors in Saudi Arabia is discussed here. The evaluation was performed
against the ISO 9000 standard. The contractors’ quality systems vary in complexity, ranging
from an informal inspection and test system to a comprehensive system. The ISO9000 clauses
most often complied with are those dealing with (1) inspection and test status; (2) inspection
and testing; (3) control of nonconformance product; and (4) handling, storage, and preser-
vation. The clauses least complied with concern (1) design control; (2) internal auditing; (3)
training; and (4) statistical techniques. Documentation of a quality system is scarce for the
majority of the contractors.
INTRODUCTION
Quality assurance is important in the engineering and
construction industry because of the risk involved in any
project. The risk involved in not completing the project
on time is high, because many external factors will affect
the performance of the project. It is vital that a built-in
quality assurance system is developed to avoid any in-
efficiency that could result in poor quality of products
and service being delivered to the customer. Everyone
involved in the engineering and construction business
has, in different ways, benefited from a common ap-
proach to quality work. Systematic quality work reduces
the costs of failure in one’s own work and in the final
product. The standards can make quality work more ef-
ficient by creating uniformity. A contractor’s in-house
quality assurance system is of utmost importance; it pre-
vents problems and their reoccurrence and allows his or
her clients to relax. One of these quality system stan-
dards is the ISO 9000 standard, which has been adopted
by a large number of countries around the world and is
applied in various industries including engineering and
construction.
Quality systems involve internal and external aspects.
1
Assoc. Prof., Dept. of Constr. Engrg. and Mgmt., King Fahd Univ.
of Petr. and Minerals, Dhahran 31261, SaudiArabia.E-mail:bushait@
kfupm.edu.sa
2
Mech. Engr. and Quality Lead Assessor, Inspection Dept., Saudi
Aramco, Dhahran 31311, Saudi Arabia.
Note. Discussion open until May 1, 2000. To extend the closing
date one month, a written request must be filed with the ASCE Man-
ager of Journals. The manuscript for this paper was submitted for
review and possible publication on September 23, 1997. This paper
is part of the Journal of Management in Engineering, Vol. 15, No.
6, November/December, 1999. 䉷ASCE, ISSN 0742-597X/99/0006-
0041–0046/$8.00 ⫹$.50 per page. Paper No. 16624.
An internal quality system covers activities aimed at pro-
viding confidence to the management of an organization
that the intended quality is being achieved. This is called
a ‘‘quality management system.’’ Successful implemen-
tation of quality management systems can contribute to
an increase in product quality, improvements in work-
manship and efficiency, a decrease in wastage, and in-
creased profit. An external quality system covers activ-
ities aimed at inspiring confidence in the client that the
supplier’s quality system will provide a product or ser-
vice that will satisfy the client’s quality requirements.
This is called a ‘‘quality assurance system.’’ The quality
system can work effectively only when the top executive
responsible for engineering or production takes full re-
sponsibility for interpretation and implementation of the
quality assurance program. A contractor’s quality assur-
ance system is very important to her/his clients, who will
gain confidence that ‘‘getting it right the first time’’ will
be the contractor’s norm.
In Saudi Arabia, the large volume of constructionproj-
ects, in term of numbers and size, has led giant, multi-
national construction contractors to the local market and
created intensive competition. Although quality systems
are relatively new in Saudi Arabia, especially in the con-
struction industry, the concept is receiving the utmost
attention from large construction companies who seek a
competitive edge.
The quality systems of 15 major construction contrac-
tors in Saudi Arabia were assessed using the ISO 9001
standard requirements. This paper reports the findings of
the assessment. The level of implementation and con-
tractors’ perceptions are also discussed.
BACKGROUND
ISO 9000 is an international standard intended to pro-
vide the generic core of a quality system standard ap-
42 / JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999
TABLE 1. Contractors’ Background Information
Contractor
number
(1)
Years in
business
(2)
Number of
employees
(3) Construction type
(4)
Position of
contacted person
(5)
1 4 700 electrical, piping, piping mechanical, structural steel General Manager
2 35 6,346 civil, structural steel, piping mechanical, electrical QA Manager
3 34 1,000 mechanical, electrical civil QA/QC Engineer
4 23 80 reinforced concrete and steel work Projects Manager
5 40 4,000 petrochemical, refining, desalination, process control QA/QC Manager
6 49 1,000 roads and civil Business Manager
7 16 2,100 buildings, mechanical, electrical, and HVAC QA Manager
8 25 1,000 mechanical, electrical, and instrumentation QC Manager
9 5 450 mechanical, piping, and tanks Business Manager
10 35 1,500 buildings (schools) Operations Engineer
11 17 475 building, civil Projects Manager
12 20 600 mechanical, electrical, civil Projects Managers
13 8 3,000 buildings, structural steel QC Manager
14 40⫹2,500 mechanical, electrical, civil Procurement Manager
15 29 425 roads, sewer Projects Manager
plicable to a broad range of industries and economic
sectors. It outlines how a supplier can establish an ef-
fective quality system that will demonstrate commitment
to quality and ability to meet customer requirements.
ISO 9000 is based on, and is almost identical to, the
American National Standards Institute/American Society
of Mechanical Engineers (ANSI/ASME) NQA-1, Qual-
ity Assurance Program Requirements for Nuclear Facil-
ities, 1989 (Reedy 1994).
The acceptance of ISO 9000 standards in the construc-
tion industries is not as wide as in other industries, such
as manufacturing. There are special features in the con-
struction industry that limit the implementation of the
ISO 9000 standard. The following are some of these fea-
tures (Phenol 1994; ‘‘Quality’’ 1992):
• A construction project is usually a unique collec-
tion of people, equipment, and materials brought
together at a unique location under unique weather
conditions, while most manufacturing is a system
of mass production wherein all of these factors are
consistent with producing typical products over
and over again.
• Performance testing in construction is generally not
feasible as a basis for acceptance.
• It is common to have separate contracts for design
and construction.
• It is not feasible to reject the whole constructed
project after completion while attached to the pur-
chaser’s land.
• Decisions to reject a defective part of a constructed
project need to be taken promptly before succeed-
ing parts are constructed or installed.
• The number of parties involved in the constructed
project’s procurement are more than those involved
in manufacturing procurement. Achieving quality
construction requires effort from all parties. This
makes the interface and responsibilities of the var-
ious individuals and organizations more compli-
cated than in manufacturing.
• The organizational structure of a construction com-
pany varies depending on the nature of the project,
while the same structure in a manufacturing com-
pany is almost unchanging. This affects the
smoothness of communication and interface be-
tween the responsible individuals.
• Turnover of manpower in construction is higher
than in manufacturing, which affecting the preci-
sion of long-term plans.
• Construction projects are very complicated and
their execution may take years.
The generic nature of the standards often leads to dif-
ferences in interpretations. In turn the implementation,
use, and impact of ISO 9000 standards can vary from
company to company and from country to country. The
concept of ISO 9000 has been viewed in various ways;
as a means of improving the overall quality of opera-
tions; as the requirements of customers to be complied
with; as a necessary response to competition; as a way
to reduce cost; as a means to improve the flow of activ-
ities and coordination in the organization; as a strategy
to have better sales through an improved quality image;
as a way to maintain competitive edge in the industry,
etc. (Bhuian and Al-Zamil 1996; Lamprecht 1992). Thus,
the impact of ISO 9000 standards may vary depending
on how it is perceived by companies.
Case Study
With the help of the Chamber of Commerce, 34 major
construction contractors—located in the Eastern Prov-
ince of Saudi Arabia—were identified for the study. The
selected contractors were contacted and introduced to the
scope of the study. Only 15 contractors agreed to partic-
ipate in the study, since each has some form of a quality
system. The acute sampling problems in Saudi Arabia
compel researchers to adopt nonprobabilistic sampling
methods in most of the surveys (Al-Meer 1989). Because
this study is adopting a nonprobabilistic sample, the
sampling of 15 contractors was judged sufficient for an
exploratory study. Table 1 lists the contractor numbers,
years of experience, number of employees, specialty, and
position of the contacted person. The annual construction
volume data is not listed in the table, since some con-
JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999 / 43
TABLE 3. Contractors’Compliance with ISO 9001 Clauses
TABLE 2. ISO 9001 Clauses
Clause
number
(1) Title of clause
(2) Remarks
(3)
4.1 Management Responsibility
4.2 Quality system
4.3 Contract review
4.4 Design control
4.5 Document and data control
4.6 Purchasing
4.7 Purchaser supplied product
4.8 Product identification and traceability
4.9 Process control
4.10 Inspection and testing
4.11 Inspection measuring and test equip-
ment
4.12 Inspection and test status
4.13 Control of nonconforming product
4.14 Corrective and preventive action
4.15 Handling, storage, packaging, and de-
livery
4.16 Quality records
4.17 Internal audits
4.18 Training
4.19 Servicing Not included
4.20 Statistical techniques
tractors feel it is preparatory information. All ofthe com-
panies are Saudi-owned companies with Westerner man-
agement staffs.
The assessment consisted of personal structured inter-
views with key representatives and inspection of docu-
ments. Each interview took between 2 and 4 hours. A
questionnaire form was used as a checklist. The ques-
tionnaire consists of two parts, the first part being gen-
eral and intended to get information about the contrac-
tors general interest in and perception towards the ISO
9000 standards. The second part asks specific questions
about the ISO 9000 clauses (Table 2 lists the clauses).
Contractors were asked if they have a means in their
quality system that satisfies each ISO 9001 clause, and
whether these means are documented and implemented.
Contractors’ input was evaluated and rated according to
the following criteria:
• A contractor who has a system that fully complies
with the respective clauses of the ISO 9001 stan-
dard was rated ‘‘Y’’ and given a value of 1.0 point.
• A contractor who has a system that partially com-
plies with the respective clauses of the ISO 9001
standard was rated ‘‘NF’’ and given a value of 0.5
points.
• A contractor’s system that did notmeet the require-
ment of the ISO 9001 standard was rated ‘‘N.’’ It
was given a value of 0 points.
For each clause, the three aspects (i.e., ‘‘existing,’’
‘‘documented,’’ and ‘‘implemented’’) were totaled based
on the above rating system. The term ‘‘existing’’ indi-
cates the presence of the clause in the organization sys-
tem either documented and/or implemented or not. The
term ‘‘documented’’ indicates the knowledge and proper
procedural documentation of that cause irrespective of
whether it is implemented. The term ‘‘implemented’’ in-
dicates the knowledge and practice of that clause even
though it may not be documented. For example, in the
case of clause 4.17 of ISO 9001 (internal quality audit),
if a contractor has a system of scheduling and perform-
ing internal quality audits, it was rated ‘‘Y’’ and a value
given equal to 1. If it was found that the contractor does
not have any documented procedure for internal audits,
it was rated ‘‘N’’ and given a value of zero. Finally, if
the contractor performed some of the scheduled internal
quality audit and did not document the audit findings, it
was rated as ‘‘NF’’ and given a value of 0.5. The rating
of the clauses is shown in Table 3. Then the percentage
of the companies complying with the ISO 9000 clauses
was determined. A company was deemed to be comply-
ing with that particular clause if it had received a rating
of ‘‘Y’’ in both the ‘‘documented’’ and ‘‘implemented’’
aspects of the clause. Table 4 lists the most-used and
least-used clauses. As examples, the following sections
given more information regarding clauses 4.3, 4.10,
4.12, 4.13, and 4.15.
Contract Review (Clause 4.3)
The standard requires that the organization has docu-
mented procedures for contract review and for the co-
ordination of activities. Before the acceptance of the
contract with the customer, the organization must review
the proposed contract to ensure that (1) all requirements
are adequately defined; (2) all verbal requirements are
44 / JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999
TABLE 4. Most Complied with and Least Complied with
ISO 9000 Clauses
documented; (3) all differences are resolved; and (4) the
organization is capable of meeting all contract require-
ments. One-third of the interviewed contractors reported
that they had encountered a problem (during the exe-
cution of the projects) due to improper initial reviews of
the project contracts. This inadequate contract review
caused financial losses because of underestimated or
overestimated bidding, and delayed project completion
due to the contract’s inability to plan for meeting con-
tract requirements.
Inspection and Testing (Clause 4.10)
The main objective of the contractor’s inspection and
testing is to provide objective evidence that the con-
structed project and related components meet contract
requirements. The top-ranked contractors indicated that
inspection and testing activities are performed during all
phases of the project—receipt, storage, field fabrication,
erection, and upon completion prior to handing over to
the client. The inspection and testing procedures specify
the quantitative and qualitative acceptance criteria for
construction workmanship and materials.
Inspection and Testing Status (Clause 4.12)
The top-ranked contractors have well-documented
procedures to identify the acceptability of construction
items with regard to inspection and tests performed
throughout the construction process. This requirement
covers all inspection and testing of materials, equipment,
or construction work. The contractors use tags, marks,
or routing cards to distinguish between inspected and
uninspected construction items. Such procedural practice
safeguards against the use of unacceptable materials and
against shoddy workmanship.
Control of Nonconforming Product (Clause 4.13)
This clause is one of the most difficult aspects of the
quality system because it requires the contractor’s per-
sonnel to admit openly and in writing that they have
done something wrong. This may cause the contractor
not to notify the customer. Some of the contractors ad-
mitted that the nonconformance reports issued by the
quality control personnel are either ignored or overruled
by project engineers. This is due to the lack of authority
given to the quality control personnel (ISO 9001, clause
4.1.2). Few stated that the nonconformances are undoc-
umented.
One contractor relates the cost of quality to the non-
conformance. Whenever a Nonconformance Report
(NCR) is issued and the disposition is agreed upon, the
value of the problem (i.e., the cost of rework, replace-
ment, project delay, etc.) is calculated and documented
on the NCR. Documenting the nonconformance not only
serves as a tool to track the problem areas from begin-
ning to end—it also helps in taking corrective measures
to prevent reoccurrence of these problems in the future.
The historical data developed through documenting the
nonconformance occurring during projects can be used
to reduce the costs of future projects.
Handling and Storage (Clause 4.15)
All contractors agreed that the packaging, preserva-
tion, and delivery required by clause 4.15 applies to
products not for construction work. The top-ranked con-
tractors showed evidence that the procured project ma-
terials and equipment, when received at the site or during
construction, are handled properly and in such a way that
their quality will not be degraded because of inappro-
priate handling, lifting, and rigging. Also, that materials
and equipment are properly stored to ensure that they
JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999 / 45
are preserved safely prior to their use or installation in
the project.
Assessment Findings
Quality Systems
The quality systems of the contractors vary in com-
plexity, ranging from an informal inspectionand test sys-
tem to a comprehensive system where inspection and
testing is only one element among many others. Four
contractors have comprehensive, corporate, documented
quality systems. The systems of these four contractors
are documented in quality manuals and procedures. Ten
out of the 15 contractors have limited, project-wide qual-
ity control systems. In other words, the quality system
in these companies covers only the activities associated
with certain projects at the job site. This type of limited
quality system concentrates heavily on inspection and
testing. One contractor, however, has no formal system.
Registration
Of the 15 contractors, two are registered to the ISO
9002-1994 standard, four are planning to be registered
in the near future, and three have hired external con-
sultants to assist in the process of establishing formal
quality systems and preparing for registration. The other
four contractors are interested in being registered but not
in the near future.
The registered contractors and the ones pursuing reg-
istration mentioned that the reasons for registration are
top management’s interest in the standard’s potential to
improve the quality of their projects, and the current or
expected demand from customers. They believed that it
is going to be compulsory in the future for public and
private contracts. They wanted to be ahead of others
when registration becomes a prerequisite for acceptance
of bids. Some construction managers indicated that cur-
rently there are several international agents, working in
Saudi Arabia, that administer registration of companies
for ISO 9000. It is possible to ‘‘shop around’’ to find
the certifying organization that offers the ‘‘best deal.’’
As a result, not all ISO 9000–registered companies are
following the same requirements and the cost of imple-
menting the program can very tremendously.
Applicability and Benefits
The majority of contractors believe that the ISO 9000
standards are applicable to the construction industry and
will be beneficial to their companies. These contractors
made no exception to any of the clauses of the standards.
Two contractors have some reservations about whether
or not the standards add value to the quality of construc-
tion projects.
Processes, rather than products or services, are ISO
certified. The rationale is that if process management is
good, then resultant products or services will also be
good. It is important to recognize that some process steps
add value, while other activities add cost but provide no
value relative to the output of the process. These non-
value-added activities include all delays in processing,
temporary or permanent storage, inspections, and any
rework necessary to meet customer requirements or en-
gineering design specifications. In general, value is
added in a process whenever all three of the following
conditions are simultaneously met: (1) A desired physi-
cal change noticeable by the customer occurs; (2) given
a chance, the customer would pay for the activity to be
performed; and (3) the activity is done right the first time
(Gamsby et al. 1996).
Difficulties Surrounding ISO 9000 Requirements
Six contractors reported that the ISO 9000 standards
are not difficult to implement, while other six contractors
reported the following difficulties:
• Voluminous amounts of required paper work as-
sociated with the documentation of the quality sys-
tem and its implementation
• Difficulty in controlling the subcontractors
• Difficulty in full implementation of all the require-
ments, and the possibility of occasional deviation
• Difficulty in understanding the terminology of the
standards
• Difficulty in sparing company personnel to under-
take an additional workload in order to establish
quality system and its requirements
• Lack in ability to afford full-time quality managers
and specialists
Obstacles to Implementation
The contractors have identified various obstacles that
discourage successful implementation of the ISO 9000
standard in their companies. These are
• High cost, especially initial cost
• Resistance to change at various levels in the or-
ganization
• Loss of productivity of the workforce due to the
effort exerted in learning the new system and im-
plementation, besides their regular duties
• Management interference
• Limited ability of personnel
• Remote job sites, making it hard to control and
track the quality system implementation in all sites
• Communication problems between personnel be-
cause of language differences
• Cultural differences within the workforce
Remarks
There are several observations regarding contractor
quality systems. These are highlighted below:
• There is a misconception about the objective of the
ISO 9000 standards. They believe that it requires
only a documented consistent level of quality,
whether low or high—i.e., ‘‘write what you do and
do what you write.’’ This misconception must be
replaced by the correct concept, the ‘‘plan-do-
check-act,’’ where the quality system is continu-
ously monitored and updated to make sure that
46 / JOURNAL OF MANAGEMENT IN ENGINEERING / NOVEMBER/DECEMBER 1999
continuous improvement is achieved and the or-
ganization’s quality policy objectives are met.
• The contractors who have just started developing
quality systems in their companies do not consider
setting up priorities in developing the various ele-
ments of the quality system.
• Most contractors confuse the understanding and
implementation of clause 4.13 (nonconformance)
and clause 4.14 (disposition and corrective action).
To explain the difference, whenever a nonconform-
ing work is constructed or wrong equipment is in-
stalled in the job site, and a decision is made to
correct the problem, this is ‘‘disposition.’’ When
measures are taken to prevent reoccurrence of the
nonconformance in the future, this is ‘‘corrective
action.’’
• Procedure effectiveness evaluations are lacking in
the contractors’ quality system. The objective of
internal quality audits (according to ISO 9000 stan-
dards) is to verify implementation and to evaluate
effectiveness. In other words, the auditor must not
only check if the quality procedures are adhered to
but must also check whether the procedures are
adequate and effective in achieving quality and
quality assurance.
• Setting up priorities is another area of concern, es-
pecially for those who have just gotten started with
their new quality systems. They should consider
their company operations and make a list of pri-
orities, starting with areas needing immediate im-
provement. It was observed that ISO 9000 con-
sultants look at all quality elements in the same
way. It is the role of the contractor’s management
to identify the priorities for the consultants, and
improvement progress should be followed up.
SUMMARY AND CONCLUSIONS
The quality systems of 15 construction contractors
were evaluated. The quality system complexity varies
from an informal inspection and test system to a regis-
tered ISO 9002 quality system. The most appealing rea-
sons for registration are top managements interest in im-
proving project quality and current or expected demand
from customers. The ISO 9000 clauses most often com-
plied with are (1) inspection and test status; (2) inspec-
tion and testing; (3) control of nonconformance product;
and (4) handling, storage, and preservation. Misunder-
standings were observed regarding the quality system
documentation, method of implementation, and the dif-
ference between disposition of nonconformances and
corrective actions. Setting up priorities for improvement
is another area that contractors are not performing.
ACKNOWLEDGMENTS
The writers appreciate the support of King Fahd Uni-
versity of Petroleum and Minerals during the course of
the study. Thanks is also extended to the construction
companies who participated in the study.
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