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Organisational & Project Quality A FIDIC report

September 2026

Contents Foreword______________________________________________________________________________________________ 4 Glossary______________________________________________________________________________________________ 5 1 – QMS in the Consulting Firm_________________________________________________________________________ 10 Guiding principles of quality management................................................................................................................. 11 Why and when to implement a quality management system?................................................................................... 12 How to recognise an ISO-certified organisation?...................................................................................................... 12 Quality of management............................................................................................................................................. 13 Elements of a Quality Management System.............................................................................................................. 13 System scope & outsourcing.................................................................................................................................... 14 Management controls............................................................................................................................................... 14 Internal audits........................................................................................................................................................... 15 Combination with other standards............................................................................................................................ 15 Pros & Cons of 3rd party certification....................................................................................................................... 16 Beyond ISO 9001..................................................................................................................................................... 17 2 – The Project Coalition_______________________________________________________________________________ 18 Project parties.......................................................................................................................................................... 19 Temporary or permanent teaming?........................................................................................................................... 19 Governance of joint ventures.................................................................................................................................... 20 General Planner and Integrated Project Delivery (IPD)............................................................................................... 20 Design and Build (D&B) contractor or consortium..................................................................................................... 21 Engineering – Procurement – Construction (EPC and EPCM)................................................................................... 22 Project alliances and collaborative contracts............................................................................................................. 22 3 – Project & Risk Management_________________________________________________________________________ 23 Quality in project management................................................................................................................................. 24 What is the project management process?............................................................................................................... 24 Particularities of the construction sector................................................................................................................... 25 The project life cycle................................................................................................................................................. 25 Risk Management.................................................................................................................................................... 26 Project handbook and/or project management plan?............................................................................................... 27 Configuration and change management................................................................................................................... 27 Project reviews and auditing..................................................................................................................................... 28 Project controlling and reporting............................................................................................................................... 28

Organisational & Project Quality: A FIDIC report

Contents 4 – Small Business, Small Projects______________________________________________________________________ 29 The art of tailoring..................................................................................................................................................... 30 Everything must be documented, right?................................................................................................................... 30 Small business......................................................................................................................................................... 31 Small projects........................................................................................................................................................... 31 Disproportionate overhead and liability..................................................................................................................... 32 Mini QMS a good idea?............................................................................................................................................ 32 5 – Failure and Learning Culture________________________________________________________________________ 33 What is a failure?...................................................................................................................................................... 34 Reporting culture and root-cause analysis................................................................................................................ 35 Solution-orientation and no-fear culture.................................................................................................................... 36 The spirit of venturing............................................................................................................................................... 37 Capability-Maturity Models (CMM)............................................................................................................................ 37 Intercultural factors................................................................................................................................................... 38 Acknowledgements___________________________________________________________________________________ 39 Endnotes_____________________________________________________________________________________________ 39 Reading List__________________________________________________________________________________________ 40 About FIDIC__________________________________________________________________________________________ 43

Organisational & Project Quality: A FIDIC report

Foreword FIDIC’s three key values are Quality, Integrity and Sustainability (FIDIC | Our Values | International Federation of Consulting Engineers). FIDIC has long advocated for quality in the consulting engineering industry and has over the past three decades developed various best practice guidance notes for the industry about Quality. This guidance note focuses on best quality assurance practices in design management and construction supervision. The five areas covered include: § Quality Management (QM) systems in a consulting firm § QM collaboration among project parties § relationship between QM, project and risk management § challenge of tailoring QM to small firms and small projects § importance of developing an underlying culture of learning from failures. This report was prepared by a Quality Task Group of FIDIC’s Business Practice Leadership Committee.

Organisational & Project Quality: A FIDIC report

Glossary

TERM

DEFINITION

1st / 2nd / 3rd party

Characterises the degree of proximity to an organisation, which is the 1st party (1st party audit being an internal audit). 2nd party to a supplier is their customer, 3rd party an independent body.

8D Report

The structured problem-solving process used for quality improvement with 8 stages of problem resolution. Often in in the context of supply chains, where the supplier promises rework on the current lot, root-cause analysis and corrective action to avoid recurrence of the problem.

Accepted Quality Levels (AQL)

AQL is a statistical approach utilized across industries to determine the maximum number of defective units allowed in a particular sample size from a larger batch of products. Used as critical threashold for rejecting externally supplied goods.

AEC

Inclusive abbreviation for the archictectural, engineering and construction community constituing the construction sector.

Alliance Contract

An "Alliance Contract" is the special version of partnering to do repeated business together, usually in a hierarchical relationship between client and a general contractor (design & build), particularly for innovative solutions with sharing gain and pain in open-book accounting.

Audit

Originally the hearing of the defendant in court, the term is applied to all impartial interrogations to ascertain (non-)conformity and/or to find opportunities for improvement. The audit focus can be a management system, a process, a project or a product and must be defined beforehand. An auditee should simply be treated as informant with a first-hand opinion (root cause).

Balanced Score Card (BSC)

A system of Key Performance Indicators (KPI's) applied to the four perspectives of financial results (share holder perspective), client satisfaction, process maturity and resources, witch are inter-connected in a causal chain.

Capability Maturity Models

Used first in the defence and software Industry, the Capability Maturity Model (CMM) is a 5-step methodology for advancing the level of process control from ad-hoc (or heroic) via managed, defined and measured to optimised.

CCPM

Stands for "Critical Chain Project Management" and denotes the application of Goldratt’s Theory of Constraints (developed to handle bottleneck production steps) identifying and protecting the critical path in parallel activities (such as in concurrent engineering, fast-tracking).

Concession

The acceptance of substandards products, which are nevertheless acceptable for the envisaged purpose (perhaps due to exaggerated requirements) or tolerated because of time constraints. Often linked to a prolonged guarantee period or reduced compensation.

Configuration management

Ensuring the compatibility of design or product components across various stages of development and between new releases or updates by means of predefined compatible configurations. Each design change has to be checked for compatibility in the respective configuration (life cycle).

CRM

Stands for Customer Relationship Management, often in form of a database archiving all customer preferences, the entire business theirtory, and customer rating, usually with the goal of customer-specific solutions leading to increased business.

Design & Build (D&B)

A method of project delivery in which one entity works under a single contract with the project owner to provide both design and construction services, whether in-house or subcontracted back-to-back (i.e. to the same conditions as the D&B contractor has).

Organisational & Project Quality: A FIDIC report

Glossary

TERM

DEFINITION

Design-bid-build

The traditional project delivery method where one entity (the design firm) completes the design phase and tenders for bidding by several trades for the construction phase. In this way the client keeps full control of the project realisation and can inact late changes.

Design management

The governance of engineering design activities, usually involving various disciplines working in parallel over several design phases (called integration management in projects).

Design thinking

A method to develop valid design solutions with best value to the customer by observation and understanding the way of working and testing possible solutions by prototyping. Somewhat similar is the "house of quality" approach, in which features are developed representing quality from the customer’s point of view.

DMAIC

The Six Sigma version of the PDCA cycle with a strong data-driven implementation control. The acronym stands for Define, Measure, Analyse, Improve, and Control.

EFQM

Denotes the European Foundation for Quality Management, a not-for-profit oganisation based in Brussels, which launched an assessment model for excellence (similar to the Baldrige Award), focussing on enabling factors and measurable results.

End-to-end process

In contrast to work-place related instructions, the entire chain of activities necessary to deliver a product or service from start to finish, encompassing all functions, interactions, and transitions along the way with undevided responsibility of a single process owner, instead of thinking in departmental "silos".

EPC/EPCM

Stands for engineering-procurement-construction (management) as a version of design-bid-built contract entrusted to an agent who is not the engineer or the building contractor but the representative of the client/investor delegating to and supervising various (sub)-contractors.

Event tree

A graphical representation used in risk analysis and decision-making processes to assess and Analyse the potential outcomes of various events or scenarios. In the so-called Bow-Tie Diagram a central undesirable event is analysed backwards as to likely failure paths leading to this event, and forward to the feasible actions to mitigate the consequences (consequence tree).

Failure Mode and A systematic, proactive method for evaluating a process or product to identify where and Effects Analysis (FMEA) how it might fail, to assess the relative impact of different failures, and to identify the parts that are most in need of change for risk mitigation. Detectabiliy of immanent failure is an important factor.

Fishbone/ Ishikawa diagram

An abstracted event tree depicting the various origins of problems leading to defects or other undesirable events such as accidents. Also named after Kaoro Ishikawa, a chemist working for Nissan corporation.

Force field analysis

Based on the concept of an equilibrium state under the action of external forces (stabilising and disturbing ones), the method evolved into assessing stakeholders for their potential to avail or obstruct a project.

HACCP

Stands for "Hazard analysis and critical control points" and was developed in the food industry to identify and prevent hygiene problems by controlling critical parameters (e.g. temperature). The technique can be generalised in other sectors to focus on process steps which are vital to the quality of the outcome.

Integrated Management System (IMS)

An "Integrated Management System" combines all aspects of an organisation's systems, processes, and standards (such as quality, environment, and safety) into one coherent framework rather then simply adding separate environmental and ESHS procedures to an existing QMS.

Organisational & Project Quality: A FIDIC report

Glossary

TERM

DEFINITION

Integrated Project Delivery (IPD)

Refers to a Systems Engineering approach in complex projects with a holistic design of the building, the technical equipment and the user processes (e.g. for hospitals or airports) in a multi-disciplinary effort. The close collaboration is expected to enhance efficiency and innovation.

Kaizen

The original japanese approach to TQM with strong employee participation in quality circles ("kaizen boards”), optimisation of work places (6S), reduction all kinds of inefficiency ("muda” = waste), production and delivery according to immediate needs (just-in-time, pull principle = "kanban") and immediate detection of deficiencies before further processing ("poka-yoke").

KPI

Key Performance Indicators are aggregated quantitative figures for controlling processes and attaining strategic objectives. A KPI dashboard enables quick oversight to senior management and in a green/amber/red flagging the focus on issues.

Lean Construction

The application of Lean Management to construction, including just-in-time (JIT) and the pull principle, in which the building contractor as "last planner" steers the design process according to their needs.

Letter of Intent (LOI)

A document expressing the preliminary commitment of one party to do business with another. The letter outlines the main aspects of the deal to be negotiated and is often the first step to a formal contracts.

Life cycle

Usually the life of a product from cradle to grave (or "cradle to cradle" in re-use / "second life"), an engineering project usually ends with commissioning and hand-over to the facility owner. Hence the project life cycle does not usually include operation and maintenance.

Method statement

A description of a certain construction process, usually in the tendering phase, with pertinent quality, health & safety and environmental controls.

(Non)-conformity

The accordance with (or deviation from) defined and agreed standards or norms, as represented by verbal specifications or comparison with specimens (e.g. executed trial samples).

OPM3 model

The Organisational Project Management Maturity Model (OPM3) is a globally recognised excellence standard by the Project Management Institute (PMI) related best practices (PMBoK).

Partnering

Joining of forces between different project parties, either horizontally, or vertically between client and mandatee or between main contractor and sub-contractors. The aim being trustfull cooperation/co-development with delegation of risk mitigation for efficient repeating business.

PDCA / PDSA cycle

A four-stage model for continual improvement of products, services, and processes (upwards spiral) with the stages of planning, doing (i.e. pilot implementation), checking/studying of results and action for optimising the direction of improvement.

PM Triangle

The Project Management Triangle illustrates the constraints of project management: scope, time, and cost. These three key factors should be in balance for project success or, if in conflict to each other, be discussed as deliberate ranking of priorities.

PM/CM consultants

Project and Construction Management consultants are professionals engaged to provide expert advice, planning, design, and supervisory services in areas related to managing engineering and construction projects.

Project Management Plan (PMP)

The application of the project management process to setting project parties and activities. Starting with the project charter (as normative policy), the PMP contains commercial and technical procedures, including communication, accountabillty and issue management. The PMP is a key document that requires to be approved.

Organisational & Project Quality: A FIDIC report

Glossary

TERM

DEFINITION

Review

Either a document study or a meeting of concerned parties to examine closely a certain state of design or intermediate result, usually at a quality gate at a hand-over point, with decision to proceed to the next stage/phase or not (i.e. acceptance for further processing). An after-action ("post mortem" review is a lesson learnt workshop.

Root cause

The true origin of a problem, even though more than one factor might have contributed (fish-bone diagram). Finding the root cause is the prerequisit for effective correction and preventing recurrence, implying that the root cause is usually not where the problem surfaced.

Quality

Attributes describing the fulfilment of specified (or expected) properties of a product or service. This is independent of the quality class, i.e. also low requirements can be attained with high quality.

Quality Assurance Plans (QAP)

The tailoring of quality management to the specific customer order or project with roles and responsibilities, criteria for acceptance, inspection plans, and preformulated rework actions in case of defects.

Quality Management System (QMS)

The set of policies, processes, and procedures required for planning and execution of organisational activities, covering leadership, core business, back-office and feedback/ learning. Compliance with various regulations and stakeholder orientation are the baseline.

Research & Development (R&D)

R&D is used synonymously with engineering and production readiness, usually tested in a pilot fabrication of prototypes with roll-out to serial production. In the construction sector (AEC) most buildings are considered prototypes ("one-of”, unique). Considering the development of every new service (with associated market research etc.) as R&D is but a trivalised degeneration.

Risk

A risk is an uncertainty potentially affecting goals and can be positive (opportunities) or negative (threats). Collateral threats may eminate when pursuing an opportunity. Mathematically risks are defined as product of likelyhood and impact, to be maximized when an opportunity and minimized when a threat.

Risk Management (RM) Risk management is a repetitive process used for detecting, analysing, and prioritizing risks to control, limit or eliminate their negative influence on the project or business.

Risk mitigation

The reduction of threats by either reducing the likelyhood or coping with the consequences by means of contingency measures. Either way necessitates preventive action.

Risk strategy

The handling of recognised risks, from designing out, passing to a different part, to assurance or acceptance to be born at one’s own expense.

Six Sigma

Originating from statistical process control (SPC), the variance of process outcomes is reduced to such an extend that the probability of tolerances being exceeded falls below 6 times the standard deviation from the mean value, i.e. virtually to zero defect.

Scope creep

Refers to the gradual deviation of the required work from previously defined specification and must be addressed explicitely in terms of costs and time extension and other consequences (project change request), refer to the PM triangle.

SPOC

Also called "one face to the customer" the acronym stands for Single Point of Contact and means a policy, in which a single person (or department) is designated as the communication hub for specific issues or queries, ensuring that information is channelized and responses are consistent.

Organisational & Project Quality: A FIDIC report

Glossary

TERM

DEFINITION

Stakeholder

In moving from shareholders to all interested parties, whether contractual or non-contractual, managing stakeholders extends from communication and recognition of their interests to proactively influencing their expectations, incl. public authorities and NGOs (force field analysis).

Standard operating procedures (SOPs)

"Standard Operating Procedures" are documented processes established as a reference guide for operations. SOPs provide step-by-step instructions to workers on how to perform routine tasks consistently and efficiently while ensuring compliance with industry regulations.

Swiss cheese model

A model for explaining the influence of tolerated latent malpractises which may align to allow a major failure to pass through a set quality assurance filters (like holes in slices of Emmentaler Cheese rearranged to form continuous voids).

System theory

Was developed for the holistic design of complex systems or products in an interdisciplinary design approach to adequately address interdependencies of features.

Total Quality Management (TQM)

The western adoption of Kaizen as a holistic quality management approach with a strong bottom-up component, activating the daily experience of the inhouse workforce and of subcon-tractors to improve production steps in quality circles. Part of the philosophy is that of the internal customer to please as recipient of output of a preceding processing step.

Traceability

An advanced form of document control, in which the theirtory of decisions and actions can be traced back if needed, demanded for particularly crucial (safety-critical) components or steps.

Value engineering

Denotes a review process with focus on value for money and is often associated with cost cutting; but it can equally be used to enhance the project value with minor additional expenditure.

Value Stream Mapping

Value Stream Mapping is a method through which a team maps out the flow of value for repeating processes, forcing the team members to analyse where value is being added and where it is not.

Validation

Refers to "doing the right thing" and is linked (in terms of products) to fitness for purpose. It includes validating hypotheses and models, hidden assumptions and implied expectations against the proof of worth in practical use.

Verification

Refers to "doing things right" in the sense of fulfilling explicit specifications, which are requirements derived from needs. If the needs are not translated accurately by requirements engineering, the product, although verified, may fail to fulfil the expectations (validation).

Zero defect culture

Postulation of complete avoidance of scrap in a production line (or service delivery process) by virtue of narrowly controlled processes, usually with a high degree of standardisation and process maturity (Six Sigma). Thereby quality is expected to be attained free.

Organisational & Project Quality: A FIDIC report

1 – QMS in the Consulting Firm

1 – QMS in the Consulting Firm Guiding principles of quality management Quality management is rooted in sound business principles. Consider for instance, that one should not make more promises than can reasonably be kept (i.e. contract management), or that one should avoid importing risks (i.e. selection of subcontractors). It can be simply put as “say what you do and do what you say’’. Based on pioneering work by William E. Deming and Joseph M. Juran in the USA in the last century, the basic principle is the systematic improvement of an organisation’s performance in the repetitive cycle of Plan, Do, Check, Act (PDCA), where the checking step may become a thorough study of why outcomes deviate from the initial plan (root-cause analysis). Juran’s statement: “Quality cannot be tested into products” already points to another principle, that is that quality of products and services are the outcome of controlled processes – and not just the detection and segregation of scrap.

Quality is if the customer comes back and not the product Leadership emphasises the importance of establishing unity of purpose and direction, creating conditions for people to engage in achieving the organisation’s quality objectives.2 Customer touch points: How a client perceives a consultant, may depend on minor, perhaps superficial impressions, such as: § Personal contacts § Timely offering § Unbiased advice § Intensity of communication § Ethical behaviour

Say what you do and do what you say

§ Responsiveness to issues § Caring for the client’s reputation § Transparency of invoices

The 7 Principles of ISO 9001:

§ After-sales services

§ Customer focus § Leadership § Engagement of people § Process approach § Continuous improvement § Evidence-based decision making § Relationship management There are 7 principles of ISO 9001, which are explained and interpreted in the FIDIC Guide to ISO 9001:2015 for the Consulting Industry1. The customer focus ensures that organisations understand and strive to meet customer needs, achieve customer satisfaction and loyalty. (“Quality is if the customer comes back and not the product”). While in the beginning the contractual relationship with clients and suppliers was in the foreground, nowadays all stakeholders are to be addressed, including legislators and regulation bodies, but also wider society, the natural environment, and future generations.

Organisational & Project Quality: A FIDIC report

1 – QMS in the Consulting Firm ISO 9001 addresses the effectiveness of quality management ("doing the right thing"), whereas the efficiency (“doing things right”) is not an obligation to the customer but in the self-interest of the organisation (ISO 9004). The desire for efficiency (“zero defects”) is a strong intrinsic motivation and to be preferred to the extrinsic motivation by market pressure. In view of different quality classes, product quality must conform to specifications (i.e. as good as the customer is willing to pay for), whereas process quality must be as good as possible.

The effectiveness of quality management

Doing the right thing

Self-interest of the organisation

Doing things right

The desire for efficiency

Zero defects

The PDCA cycle is a somewhat mechanistic improvement model and requires a sort of steady state economy. In the present “VUCA” times (volatile, uncertain, complex, ambiguous) with disruptive changes, the alternative concept by Philip B. Crosby of a strong quality culture as prerequisite to the “rough” (robust) organisation regains attention. This is further explored in chapter A5 on failure & learning culture.

Why and when to implement a quality management system? The decision to implement a Quality Management System (QMS) is influenced by the organisation's specific needs and goals, and by the right timing. This may be the start of a new business, entering a more anonymous market (beyond the radius of immediate reputation) with pre-qualification requirements or contractual obligations; a new customer with exceptionally high demands; or a project with significant risks, where certain endorsements are required, e.g. by professional indemnity insurance or membership requirements of engineering associations. A traditional motive is also the desire for organisational transparency, e.g. in handover of the company from the senior principals to their successors. This can include striving for a participative leadership style to attract and retain a new generation of employees by: § Providing purpose § Promoting information sharing § Setting understandable goals § Appreciating their commitment Finally, the growth of an organisation may require upgrading organisational measures and controls. In conjunction with efficiency, a QMS can help preserve and disseminate knowledge when key personnel are about to retire, or responsibilities are transferred.

Organisational & Project Quality: A FIDIC report

How to recognise an ISO-certified organisation? Some of the typical characteristics of an ISO certified company are: § Smooth execution of projects with consistent quality, § Prioritisation of customer needs and feedback § Process and not person centric, transparency in communication § Clear responsibilities and accountability § Built-in arrangements to handle disturbed processes and mitigating risks § Active pursuit of value adding opportunities § Conflict resolution with respect for all stakeholders The positive image and benefits associated with the above ultimately are earned every day, Better fees may not result, but the cost of failures should be lower and the trust of clients higher. To ensure the hard work behind making such gains is not lost, behaviours such as poor attitude or approach, hidden agendas, instance on your point of view and lack of consilience undermines trust.

1 – QMS in the Consulting Firm

Quality of management It is essential that senior management demonstrates leadership in various aspects of business functions and activity. Above all, top management should encourage the establishment of a working environment where employees feel safe to report quality issues without fear and view admitting uncertainties as a virtue, not a weakness. § Analyse and respect expectations of all stakeholders § Formulate business policies guiding day-to-day operation § Clearly define roles and responsibilities § Manage risks (both opportunities and threats) § Base decisions on facts § Set “smart” goals (specific, measurable, achievable, relevant, and time-bound) § Ensure sufficient resources § Remove obstacles to motivate employees § Provide a platform that encourages feedback and promotes continuous improvement and innovation

Elements of a Quality Management System The simplest way of setting up a QMS is to describe the processes as currently lived, and to explore further improvements later. When processes are explicitly documented, they can be analysed and modified more easily than tacit and implied processes. If implemented top-down, QMS is likely to result in a poor outcome and does not embrace the concept of QMS as documenting processes from the ground up. That is why ISO 9001 stipulates process ownership by middle management, which is involved in the actual delivery of day-to-day processes. On the highest level a process map is expected to give a bird’s eye view of all processes needed for governance, resource allocation, value-adding core activities and business support (including outsourced processes). When looking at the level of the individual processes there are many mapping and design methodologies, from detailed procedures to value stream mapping and workflow simulation software.

With what? Resources

Inputs From whom/ where How done? Methods/ Documentation

With who? Personnel Process (specific value added activities)

Outputs To whom/ where

What results? Performance indicators

The Turtle Diagram3 is a visual tool used in quality management to map out the elements of a process. End-to-end processes are to be preferred, in order to avoid organisational silos. A so-called swim-lane representation, in which the handovers between different process actors become visible, is useful to discuss the empowerment of employees needed to gain efficiency. Today cloud based, sharable and connected computer platforms, a SPOC policy (Single Point of Contact, akin “one face to the customer”) can be achieved more easily than ever before. Similarly, the advantages can be gained in collaboration with project partners, as discussed in chapter A2 on the project coalition. More about actual processes in the Architecture, Engineering and Construction sector (AEC) can be found in the aforementioned FIDIC Guide to ISO 9001:2015.

A firm is entirely free how to organise their processes; however, a cross-reference matrix to the structure of ISO 9001 is expedient for quick recognition and docking between QM systems of project partners. The granularity of process descriptions, branching off in Standard Operating Procedures (SOPs), checklists and other means of knowledge repository, is at the discretion of the organisation. ISO 9001 just demands that instructions are required where their absence might lead to substantial quality problems. These can also be documented process outputs, e-learning videos, a conference flipchart, or an automated workflow. The degree of formality is a matter of culture and maturity. ISO 9001 explicitly lists where written documentation is required, either as specification or for verification.

Organisational & Project Quality: A FIDIC report

1 – QMS in the Consulting Firm System scope & outsourcing Consulting engineering services are regarded as creative intellectual service, while drawing design plans and supervising their execution are seen as being closer to production activities. The scope of the ISO 9001 system must encompass the main business processes, covering the provision of both products (work owed) and services (best effort). This inclusion ensures customer confidence and meets the expectations of insurance companies providing professional liability and public indemnity insurance. For many firms, the QMS will apply to all services provided. Some firms, however, might initially choose to exclude certain services, whether by service type or geographic area with plans to expand the scope later. The scope must be maintained as documented information. The standard imposes stringent requirements on justifying any exclusions; exclusions are only acceptable if they do not compromise the organisation's ability to ensure the conformity of its products and services. It is highly recommended that consulting firms comply with all requirements and avoid seeking exclusions. Special attention is needed when outsourcing aspects of design or production. The organisation has the responsibility for externally procured products or services and must control them through specifications and supervision. ISO 9001 also requires organisations to seek external expertise, if they lack the necessary knowledge to assess the products or services procured. While this requirement technically applies only to sub-consultants, assisting the client in selecting a building contractor may involve similar duties.

Management controls The overall promise of a QMS is to achieve improvements through fact-based decision making. What is not measured, is deemed less important, therefore, it is vital to gather data on achieving quality goals. The measurement activities as a minimum should encompass client satisfaction, the performance of products and the quality of services (for example hours of rework, number of deliverables with errors, professional indemnity claims, complaints). How these Key Performance Indicators (KPIs) are defined, retrieved, and evaluated, needs to be defined by the organisation. For instance, the organisation may decide, that conducting interviews with key customers in a qualitative manner is more helpful than anonymous satisfaction surveys to feed statistics. True statistical process control, as in the Six Sigma philosophy4, is alien to the “one-off” nature of the construction sector.

Organisational & Project Quality: A FIDIC report

Finance

Customers Four Perspectives

Processes

Resources

Another useful concept is the balanced scorecard which encompasses the four perspectives of finance, customers, processes and resources. In each perspective smart objectives and pertinent KPIs can be defined across various layers of the organisation’s hierarchy, i.e. on the department level with later aggregation to the top management cockpit. The benefit of this concept is the inherent causal relationship and business chain where tomorrow’s revenues are linked to the current customer base, whose satisfaction depends on the process capability trained yesterday and these in turn on the resources recruited before yesterday. The comparison of objectives attained to those planned, delays due to scarce resources and perhaps obsolete goals are to be declared in a periodical “management review”. Such reviews do not need to follow an annual cycle but could be linked to the 3 or 5 year strategic plan of the organisation. Larger reviews are conducted to provide input for strategy sessions, while smaller updates in intermediate years monitor the progress and incite minor adjustments. More frequent reviews can be integrated into other meetings and may be more impactful, but the extent of such controls should reflect the reporting cycle of the organisation and the dynamics of the business activities and associated risks. Specific topics and items of focus should be covered, and this can be done by reference to other documentation than in the review document itself.

1 – QMS in the Consulting Firm

Documentation of effectiveness The documentation can include, but is not limited to: § Client satisfaction § Quality objectives and progress § Non-conformities § Corrective actions to address root causes § Monitoring and measurement performance § Audit results § Quality of external providers It should be ensured that any decisions and actions are formally documented and anchored in the objectives of the next period.

Audit findings must pass the “three sieves of Socrates”, i.e. they are to be true, relevant and benevolent. It is good practise to let the auditee review the audit report before passing it on to top management. Auditors must be competent and independent, i.e. head of departments should not audit their own staff. Consequently, auditors must familiarise themselves with the audit environment and be well-prepared, for instance by reading specifications, project plans, minutes of meetings, etc.

Combination with other standards Besides the QMS standard ISO 9001, other management system standards have the same harmonised structure. It is, therefore, possible to combine several specific standards into one holistic or Integrated Management System (IMS). For example, including Health & Safety (ISO 45001) and Environment (ISO 14001) can be very practical, since clients may place certain demands and selection criteria also on these capabilities. Other standards on Information Security (ISO 27001) or Business Continuity (ISO 22301) may be advantageous as well, depending on the exposure of the consultancy. Such additional system requirements should not be add-ons but integrated on process level.5

Health & Safety ISO 45001

Environment ISO 14001

Information Security ISO 27001

Business Continuity ISO 22301

Internal audits Internal audits have two intentions: to assess compliance with exsiting defined processes and to help identify areas for improvements. Thus, system and process audits are also valuable, when the QMS is still in the making or under reconsideration. Product or project audits, on the other hand, shall ascertain the compliance with contractual specifications and the adherence to project plans. Although they may serve for fact finding and analysing event trees, quality audits are not to be confused with financial internal audits and do not intend to identify culpable conduct. The auditees are merely interviewed as process users, giving information on the capability of processes and ideas for improvement. Auditing can well be woven into other practises of knowledge management such as project reviews.

Organisational & Project Quality: A FIDIC report

1 – QMS in the Consulting Firm Pros & Cons of 3rd party certification Third-party ISO certification offers significant benefits, including enhanced credibility, improved market reputation, pressure to continually improve and maintain processes, and regulatory compliance. Specifically, from the client's perspective, project-specific quality requirements hold primary importance. Nevertheless, the client may also take an interest in the governance of the consulting firm and its methods for ensuring business continuity. Hence, even in the absence of a specific request for an accredited ISO 9001 certification, clients may inquire about the firm's back-office procedures and management controls, including systems for project reviews and internal audits. Third-party certification helps to ensure the continuous upkeep of all quality management processes, but the annual audits by the certification body do not dispense from internal auditing. ISO standards are designed to be broadly applicable across different industries and organisations. However, this universality can sometimes lead to misalignment with the specific needs, culture, and strategic goals of an individual organisation. Organisations may find themselves constrained by generic requirements that do not fully address their specific operational or strategic needs. This is where the FIDIC Guide to ISO 9001:2015 can assist as an argumentation tool.

Organisational & Project Quality: A FIDIC report

It also presents challenges such as costs, resource demands, stifling of innovation and flexibility due to perceived difficulty and risk of altering certified processes. It is important that auditors provide value beyond the certificate on the wall. If this is not the case, companies should be bold in asking the certification body for replacement auditors, study their CVs and invite the best suited to your premises to familiarise them with your business. The credibility of an audit is only as good as the process and skill under which it is conducted. Some organisations may argue that ISO certification adds costs without providing tangible benefits or effectively preventing design errors, but this prompts concern of whether these organisations have ceased conducting internal audits (“1st party audits”), which are crucial for delivering actual value and improvement. Companies should weigh these pros and cons carefully to determine if third-party ISO certification aligns with their strategic goals and operational capacities. Companies may also consider implementing quality management system without applying for 3rd party certification. However, in pre-qualification they may be asked to prove the effective installation of their QMS by means of internal audit reports. Trust can also be built by inviting the customer to conduct a project audit.

1 – QMS in the Consulting Firm

Critical Chain Project Management (CCPM) Critical Chain Project Management (CCPM) is a project management application of E.M. Goldratt’s Theory of Constraints6, focusing on identifying and managing resource bottlenecks and eliminating buffer times, thereby reducing project durations.

Six Sigma Six Sigma focuses on reducing product variability through rigorous statistical process control7. Even though there are some processes, such as site logistics of mega projects, where process are repetitive enough to be amenable to statistics, this method is rarely advocated in the construction sector.

Beyond ISO 9001 ISO 9001 is regarded as the initial step to more advanced QMS philosophies which are briefly mentioned here.

Total Quality Management (TQM)

Lean Construction Lean Construction is a project management approach that applies lean principles to construction projects, aiming to enhance overall project delivery by emphassing value and continuous improvement8. It adopts some concepts of Kaizen, in particular the pull principle with the idea that on-site construction activities are on the critical path and that the Contractor as “last planner” is in the best position to tell the designer what is needed just in time.

Total Quality Management (TQM) focusses on continuous improvement by involving all employees through empowerment with a high emphasis on training. It is favoured in Design and Build companies to enhance the feedback from construction workers to design and to stimulate suggestions for improvements in a culture embracing learning. The original Kaizen, meaning “change to the better”9, focuses on eliminating "muda" (waste) in all its forms, incl. unnecessary stockpiling through Just-In-Time (JIT) or pull production (Kanban). Its “5S methodology” is a systematic approach to workplace organisation, health & safety, and efficiency: Sort, Straighten, Shine, Standardise, and Sustain. Kaizen boards are a form of quality circles for continuous improvement on all levels. In production “Poka Yoke” is a particularly clever system to prevent errors from propagation through physical means in the subsequent production step (e.g. a clamping device).

Organisational & Project Quality: A FIDIC report

2 – The Project Coalition

r) esto v n r/i ne w

Team formation impacts quality management arrangements through cultural differences and more pronounced team dynamics, which are crucial for effective QMS implementation. Functional teams with diverse expertise and good communication can drive quality improvement, while newly formed teams may hinder progress.

De sig ne r

or d/ an

ineer eng

Cli en t( o

Project parties

“Project parties” key stakeholders

Private clients frequently establish long-term partnerships with a select group of architects and engineers, forged through a shared vision and trust, which can significantly enhance project quality and financial outcomes. These teams streamline processes, aim to achieve cost savings via economies of scale, and mitigate risks inherent in new collaborations.

Temporary or permanent teaming?

tr ns

In the context of project delivery, the term “project parties” generally refers to the key stakeholders involved in a project, which typically include the client (owner/investor), designer and/or engineer, building contractor, subcontractors, and suppliers. The client’s team should include facility beneficiaries and perhaps external consultants. Other stakeholders may be involved for project approval but are generally not part of the project coalition. Horizontal collaborations are also referred to as (extended) project teams, whereas vertical collaborations between design and execution parties are better described as groups. Project teams of same technical disciplines from different companies can through collaboration benefit from resource sharing, flexibility, enhanced innovation and professional development. Vertical groups, in contrast, offer a hierarchy and clearer decision-making process, which can lead to more efficient project execution and accountability, but there can be an imbalance in power, liabilities, securities and insurance cover. As in politics, coalition may be ad hoc and opportunistic for instance seeking supplementary skills and resources for a single project only, or long-term and strategic with commitment to repeated business. In general, the more long-term oriented the collaboration, the better the coordination is expected to be by virtue of mutual trust and personal relationships which develop between project parties.

Their deep understanding of client preferences and project specifics enable them to optimise and create an efficient use of resources and increase the chances of high-quality results, driving the economic success of their projects. Over reliance, however, on the same partners can lead to complacency and groupthink, stifling innovation. Therefore, it is essential to maintain a balance between the reliability of established teams and the infusion of new perspectives and flexibility to drive successful project delivery.

Organisational & Project Quality: A FIDIC report

2 – The Project Coalition Public procurement, which generally across the globe aims to remain impartial to all market participants and ensure a level playing field under competition laws, usually favours temporary teaming to ensure impartiality and innovation through competitive bidding. Preferring or utilising the same provider repeatedly without reason may give rise to various appeals be they at regulators or courts. Conversely, the formation of “oversize” teams or frameworks among competitors may be suspected of collusion and constricting the bidder market. Public procurement significantly influences project team dynamics, necessitating temporary collaborations to share the workload, combine expertise, and meet the need for recent project references. Relationships among project parties remain transient, with coalitions formed and dissolved based on the specific requirements of each procurement cycle. Small specialist design firms often operate as subcontractors, providing expertise on short notice to the main contractor. A Letter of Intent (LOI) facilitates this agile relationship, allowing for flexibility as project scopes evolve. The LOI ensures a mutual understanding of roles and expectations, fostering a responsive and dynamic partnership.

Governance of Joint Ventures

The disadvantages and risks of joint ventures are usually an imbalance in ownership, uneven investment in the project and sometimes hidden agendas leading to poor decision making and difficult resolution of issues. Therefore, strong governance is imperative, with a joint steering committee of top management representatives of all partners. Quite often the lead partner or strongest party generally takes the technical lead, whereas other partners are responsible or report to the lead partner. If partner A falls behind schedule with their deliverables, partner B may step in with their resources, but will usually concede some other work package to Partner A to maintain the original share allocation. A joint and high-ranking steering committee is imperative to develop a shared vision of the quality objectives and to elaborate a joint project management plan (PMP). The PMP, which the quality plan is a part of, outlines roles and responsibilities for project management, Quality Assurance (QA) and inspection, safety management, site supervision, and more. The consortium of designers collaboratively manages the design and construction risks as a team. Responsibilities and authority are defined in role descriptions, including deputy positions. Human resources are seconded from parent companies to bring specialised skills and knowledge, enhancing the QMS by aligning it with the parent company’s standards and practices. Equipment may be procured specifically for the joint venture and should be done with consideration of the QMS, ensuring that the equipment meets quality requirements and supports the joint venture’s objectives in terms of technical specification, safety features and industry regulations.

General Planner and Integrated Project Delivery (IPD)

In Joint Ventures (JV) each party contributes resources to a temporary business, in which the parties collaborate and define fixed portions of work in a JV contract. Each party usually has an expertise or need which is central to the development and success of the fully integrated JV, whereas “faux” JVs subdivide just the project into lots of essentially the same kind of work, keep their resources separate, and try to limit the liability to their own lot. This holds true in internal relation, even though vis-à-vis the client a joint liability cannot be avoided. Generally, for the same reason, JVs cannot be dissolved without the client’s consent.

Organisational & Project Quality: A FIDIC report

General planning integrates multidisciplinary project aspects for efficiency and has been common for large infrastructure projects for decades. For complex buildings like hospitals or airports, and with the emergence and increasing usage of digital tools like Building Information Modelling (BIM) and Virtual Design & Construction (VDC), architects and engineers “re-invented” this IPD with the aim of a systems approach and dynamic optimisation with early contractor involvement. The IPD team does not have direct contractual relationship with outside parties, only with the client. Depending on client requirements, the IPD may also be responsible for the basic design specifications, codes of practise, homologation, and insurance requirements. Lifecycle costs, i.e. including operations and maintenance expenditures, are an important

2 – The Project Coalition design criterion, which may be broken down to specific project cost targets in alignment with the owner’s project goals (value-stream mapping). This takes place in intensive early stage workshops before a multi-party agreement is signed, binding the IPD team to complete the project together and to meet the clients’ requirements.

Quality benefits due to: § Collaboration from the onset of the project § Shared objectives and alignment of quality standards § Continuous communication with immediate resolution of design issues (clash detection) § Incentives for overall optimisation and cost savings § Lean construction principles to streamline the transition from design to execution In IPD contracts, the Quality Management Plan (QMP) is established during the project’s initial conceptualisation and criteria development phase. A general contractor may be part of the team from the beginning in turn-key delivery. In the multi-party agreement, every team member is contractually bound to complete the project and to meet the client’s requirements. Open-book accounting with shared savings due to project optimisation are often part of the agreement. A variant are design contests of mixed teams of designers and contractors who submit together a detailed design with an optimised construction method. This can be a particular bridge erection method under traffic (e.g. sliding in place) or a mechanised tunnel excavation concept with optimised logistics and multiple attack points. If the contest is won, the team of designers and lead contractor executes the project together, hiring subcontractors as needed.

Design and Build (D&B) contractor or consortium Design and Build contracts typically involve a single entity responsible for both design and construction, where the contractor is responsible for Quality Assurance and Control (QA/QC) processes. The client has only a single point of contact and often receives guarantees regarding price and schedule in contract with incentive/penalty clauses. Accordingly, the D&B contractor has a high interest in smooth processes, minimising change requests from the client, and a tendency to claim reimbursement for disturbed processes. Depending on the project phase after which the D&B concept is invoked, an independent designer is responsible for the basic design and the associated functional specifications, in which the D&B contractor is given room for proprietary construction solutions. The initial designer can then either be mandated by the client to supervise the detail design by the D&B contractor, or they become subconsultant to the D&B contractor. To mitigate risk, clear expectations, roles and responsibilities for the project QA/QC programme should be set out in the tendering documentation. The request for proposals generally requires the D&B contractor to review and submit against the employer’s specific project QA/QC requirements. Certain tender documents may require the contractor to provide examples of quality management tools, risk management methodologies and submit their Quality Assurance Plans (QAP) for review. If the contractor fails to comply, the client can impose their own inspection programme, which the contractor normally incurs the cost of if their production is found to be deficient. It is common for the D&B contractor to utilise subcontracts for a large part of work, which generally focus on the price element to reduce costs. The subcontracts are “back-to-back”, meaning that the subcontractor is bound by the same time frame and conditions as the D&B contractor has in their contract with the client. Involving subcontractors and suppliers in an integral quality management process with back-to-back quality requirements has the potential of identifying areas for improvement. To avoid chaotic sub-subcontracting, the tender documents may specify a certain percentage of work which the D&B contractor must execute or that the appointment of key subcontractors (e.g. for corrosion protection) needs to be authorised by the client. Moreover, for critical construction processes the client can demand prior method statements (incl. health & safety precautions) and trial executions (e.g. of geotechnical methods like soil injections) to be approved by a neutral party.

Organisational & Project Quality: A FIDIC report

2 – The Project Coalition D&B contractors with an inhouse design team often implement Total Quality Management (TQM) for holistic improvement and long-term success. Workers and foremen are rewarded for suggested process or product improvements, with an underlying data base of precise work instructions for best practise.

Engineering – Procurement – Construction (EPC and EPCM) If a D&B contractor is free to subcontract design there is a considerable temptation to target the minimum compliance standards to maximise profit margins, especially since the contractor bears the financial risks associated with cost overruns. To potentially mitigate this risk, a strategic approach involving two-stage contracting and long lead procurement can be used. This strategy facilitates early contractor involvement, allowing for more thorough risk identification and management.

supervision, it is crucial that this consultant is independent from the EPC/EPCM contract and reports directly to the client.

Project alliances and collaborative contracts Partnering as a long-term commitment of working together may be a successful strategy between main building contractors and selected subcontractors, but also as standing cooperation with an engineering partner, for instance to develop alternative design solutions when allowed in the call for tender. Gaining a competitive edge and allocating risks to a particularly knowledgeable partner are usually the prime motivation between such arrangements.

Additionally, selecting contractors with a proven track record of delivering high quality projects is crucial. It ensures that the project’s quality standards are upheld throughout its execution. The implementation of performance incentives and disincentives can effectively align the contractor’s interests with the desired project outcomes. This does, however, not mean that there will not be a risk for the client that the EPC contractor is not diligent enough about production details by its subcontractors or speculates with low-cost solutions. Furthermore, there is still substantial claim potential for unforeseeable complications in the risk sphere of the client, such as geological site conditions. Clients try to counter their strategy by giving the contractor the opportunity to conduct additional ground explorations and execute trial fields for optimising machine parameters; after that the contractor is responsible for the successful and conforming execution of works whatever the ground conditions are. EPCM contracts, in which the lead enterprise is not the building contractor but a construction manager, offer a more flexible approach, allowing the client to retain control over the project while benefiting from the construction manager’s expertise in managing and coordinating the construction process. This arrangement may allow the owner to stay actively involved in decision-making and to negotiate individual contracts, potentially leading to cost savings. The construction manager acts as an advisor, providing professional services for the project’s success while minimising risks for the owner. If the client employs an external consultant for design review and construction

Organisational & Project Quality: A FIDIC report

Alliancing links the ethos of partnering as a contractual requirement and uses a clearly deﬁned risk/reward allocation as a commercial mechanism to achieve project goals. Alliance contracts require a collaborative and integrated team, which is often collocated to foster mutual accountability and create an atmosphere of project flow. Private clients may become part of the alliance contract and assign part of their authority to the alliance board as governing institution. Because sharing of losses and profits (“pain & gain”) is an integral part of alliance contracts, the use of Key Performance Indicators (KPIs) to track progress and quality compliance is developed to a higher level than in other collaboration formats.

3 – Project & Risk Management

3 – Project & Risk Management Quality in project management Traditional project management, which developed parallel to quality management, distinguishes the three conflicting goals, the so-called PM triangle10: cost, time, and scope – where “scope” is sometimes substituted by “quality”. While scope refers to the holistic requirements defining size and complexity of the project, the replacement by “quality” fails to recognise that quite often the client wants more for the same price, within the same deadline and with unimpaired quality, this is referred to as scope creep. The PM triangle necessitates a political decision about prioritising what comes first, when challenges arise.

SCOPE

Sometimes the project management processes are split from the product-oriented processes such as design, tendering, etc. Some engineering companies differentiate instead between technical and commercial project processes, postulating that the economic constraints must not create a serious risk of engineers taking shortcuts.

The ISO 10006 guideline was published for mapping the PM body of knowledge on a process landscape of project-oriented organisations.

TIME

For instance, if a project delay exceeds a certain window of opportunity (e.g. weather conditions for hauling of offshore platforms) and faces heavy punitive damages (for loss of business income), the time constraint becomes paramount and may warrant a temporary concession on quality objectives. Similar to the Quality Policy as yardstick in QMS, the so-called project charter should provide guidance for decision making (in view of must-have and need-have criteria) and not be just a feel-good team exercise. Putting quality on par with cost & time in the PM triangle is misleading in so far as project quality management as a process has the objective to control also adherence to cost, time and other constraints. It is about quality of PM and not quality in PM.

The project management process is defined in ISO 10006 as “the planning, organising, monitoring, controlling and reporting of all aspects of a project and the motivation of all those involved in it to achieve the project objectives.”

Generally, in small projects the project manager is in charge of both the economical and the technical aspects; in large projects requiring the project approval on corporate level, usually a separate proposal manager from the sales department is involved, which after contract awarding will either hand over the project to the technical project manager or stay stand-by to resolve client issues and claims, and to supervise the commissioning.

QUALITY

COST

What is the project management process?

Organisational & Project Quality: A FIDIC report

This was not entirely successful, creating several subprocesses in HR, communication etc., although such management and resource processes already exist in the organisation elsewhere. Rather, the project in question should borrow and apply over-arching practises to the project but not create a full-blown QMS subsystem – unless several processes are outsourced to support functions in the organisation and need be readjusted for the specific interfaces (e.g. change and budget requests). Several PM tasks like stakeholder management, communication, sourcing, scheduling, controlling, etc., should be defined as procedures for certain activities, but not treated as parallel subprocesses. For instance, project integration management consists of the development and execution of the project plan (with status reports and project controlling) as well as the overall change control incl. configuration management (regarding the compatibility of changes throughout a specific version of the project solution). Quality management in the narrow sense of a PM knowledge area means classical Quality Assurance (QA), i.e. inspection and test programmes, deliverables checking and approval, project reviews and audits.

3 – Project & Risk Management

The 10 PMI knowledge areas:

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Resource Management

Communications Management

Risk Management

Procurement Management

Stakeholder Management

Particularities of the construction sector The main distinction of the construction sector is the fragmented nature of the facility life cycle in which engineering design, production, and operation & maintenance may be located in different legal entities/ geographies. Built structures are considered a dual product. Initially, they exist solely as design plans created by an engineering consultant; later the design is executed by a building contractor. The engineering design consultant, though usually only responsible for preparing a design, bears responsibility for the quality of the built structure as well, whether due to overlooking user requirements, challenges in constructability, or deficiencies in site supervision and quality inspection. Some clients prefer to terminate the engineering contract after or even before setting up the bill of quantities, with the idea that an independent construction manager might have a more neutral look at the design and identify constructability flaws. Arising from the contractual requirements that demand a built structure to adhere to the specifications, design flaws or inadequate site supervision may legally be deemed as non-compliant with the contract, even if the technical aspects of the outcome remain acceptable. In construction practice, this issue is typically resolved through concessions, where the client accepts the building as suitable for the intended use but deducts a specified amount from the

remuneration. Attention is advised in dispensing the engineering consultant entirely from supervision of the construction, because some contractors may offer “less conservative” execution variants which run into problems.

The project life cycle Every project goes through and should be considered against a holistic project lifecycle. There are several stages to this and several versions with different terminology but essentially every project from conception through financing, procurement, design, construction, operation & maintenance and decommissioning or reuse will follow the same path. This is particularly crucial when addressing global challenges such as climate change and achieving net zero emissions, which require holistic approaches and life-cycle costing to meet these objectives. Focusing on the earlier stages in this cycle, between kick-off meeting, where a common understanding of the project and the project planning are presented to the team, and the close-out with acknowledgements and learnings, a typical construction design project is split into feasibility study, preliminary design, basic design, and the legal approval process. Also, the consultant’s role in construction supervision and taking-over depends on the nature of the contract with the client. As stated previously some clients prefer to create a clean break after design, whereas others keep the designer

Organisational & Project Quality: A FIDIC report

3 – Project & Risk Management during the project execution phase as guardian of the design intent and for the verification of design assumptions during execution (e.g. condition of existing structural substance or geology during excavation). On the other hand, some design contracts may even contain an optional clause for the optimisation of operation processes after start-up (e.g. for a sewage plants). Monitoring and maintenance plans may also be part of the engineering scope.

Risk Management is thus foremost an exercise in thinking out-of-the-box, in talking about uncertainties and comparing views, which uncertainties really matter and should be addressed, because they either endanger the project goals or may be an opportunity for adding project value. This intensified communication is one of the primary benefits. ISO 9001 replaced the term “preventive measure” by risk mitigation, which should be complemented by preparations to grasp opportunities if they come along. Likewise, certain risk mitigation may entail undesirable side effects, which also need be considered. The party most likely affected by a negative outcome or profiting from an opportunity is called the risk owner, whereas the party in the best position to detect and adequately treat the risk, is called the action owner. Often the best strategy for the client is to retain (and perhaps insure) a certain risk rather than trying to transfer the risk to a party which is not in the position to handle it. Be aware that the mitigation of some risks may trigger considerable initial investments, whereas others may require an alarm organisation and devoted exercises.

Large public clients like road authorities or railway infrastructure operators may have their own project phase definitions, including, for instance, a homologation step regarding Reliability, Availability, Maintainability, and Safety (RAMS) features. Refurbishment projects are slightly different, in that the feasibility study entails an assessment of the existing structure with the decision of whether to refurbish/ upgrade or to demolish and rebuild. If the structure can be preserved, the various design phases are compressed to the refurbishment/upgrade measures.

Risk Management In view of sometimes very optimistic project plans effective risk management is vital; this means accepting both the potential upside risks as well as recognising potential downside risks. It is important to admit and record uncertainties with opportunities (positive/upstream risk) and also threats (negative/downstream risk). Within these risks, behaviours between parties also need to be recognised: real or suspected hidden agendas of project parties may cause an antagonistic project climate instead of collaborating trustfully on anticipating and solving problems that are likely to occur within the risk or reward trajectory.

Organisational & Project Quality: A FIDIC report

Good risk management consists in identifying the best suited action owner, i.e. the one with the highest leverage on the situation, and to reward him accordingly. Risk management strategies: § avoid by altering the project § retain as risk owner § share among parties § transfer to a mandatee § insure paying a premium Risk mitigation should follow the "TOP" priority ranking, where technical solutions are to be favoured (designing the risk out), followed by subsidiary organisational measures and personal protection. Not all anticipated risks will emerge during the project. Risk identification and analysis are therefore periodic tasks, as much as monitoring defined actions and revising them if ineffective.

3 – Project & Risk Management Often it is easier to agree on the impact of a risk than to estimate its likelihood, the risk being the product of both. Reducing the likelihood is prevention, reducing the consequences is contingency or emergency planning. Response actions must be exercised to be effective when suddenly needed. “Residual risks” thus contain accepted risks, not anticipated risks, and failing response actions.

Operational risks in construction industry: § Cost overruns § Delays in completion § Incompetent or inexperienced stakeholders § Environmental risks § Design errors § variations or adjustments § Safety hazards § Labour shortages § External risks (unexceptional events, lack of permits, socio-political unrest) Working on the likelihood of an event should be kept separate from mitigating the consequences, i.e. the risk as the product of both factors should be represented in a matrix (typically 4 by 4). The consequences may be graded from losing just the project revenue to jeopardising the entire business (catastrophic); the likelihood of occurrence from several months period to less than e.g. 1/1000 of the project duration.

Project handbook and/or project management plan? The Project Management Plan (PMP) is the overarching document defining the application and adaptation of existing project management processes to the project under consideration and defining the interfaces to the processes of other project parties. The PMP should reflect the Work Breakdown Structure (WBS) and the phasing of the project; for instance, the PMP may first concentrate on the design phase and later be modified according to procurement strategy and construction lots. Design management plans, method statements (incl. ESHS and environment) and testing & inspection plans are a specific part of the PMP. Some clients may impose their own format, sometimes imposing their standard project handbook. Regarding the project documentation format, becoming part of the client’s facility management tool, this is to be accepted, whereas operational procedures should be negotiated to reflect the actual project. The development of a PMP involves resources and knowledge which are more likely to be available in large projects. The challenge is that the PMP must be ready before commencing critical work items (e.g. special foundations) and continuously updated for large projects. For small scale projects or projects with reduced complexity, however, it is advisable to develop and use a project management plan adapted and tailored to the scale of the project. For such projects, the PMP should at least be developed to the level of a quality plan as defined by ISO 10005.

Configuration and change management A very important aspect is the handling of project changes and their implications on compatibility of interconnected design and performance features. The classical change request form is used to discuss the implication of design changes, whether imposed by changing circumstances (incl. technical standards), amended project scope, schedule or project budget, and commercial or technical risks.

In this way also natural hazards like flooding of the construction site can be translated. Typically risks with medium-size consequences but rather high likelihood of occurrence are the ones to be watched most. In this philosophy, quality management is the “flip side” of risk management in that it is there to assure effective risk mitigation.

The aim is to ensure the client is well informed to authorise the changes with full awareness of the consequences. If deadlines are to be kept, the party should be prepared to pay for acceleration measures. Changes may also be initiated by the building contractor offering alternative products or construction methods and such changes should be treated with the same level of detail and by the original engineer familiar with the design intent.

Organisational & Project Quality: A FIDIC report

3 – Project & Risk Management

Measures project performance:

Schedule

Cost

Risk

Resources

In more complex projects, e.g. when rapid changing industrial features like software or operational processes are concerned, a professional configuration management may be required. Guidance can be found in ISO 10007. Full traceability of products may be requested for safety or environmental reasons. Good practise is traceability/ transparency of decisions made and of imposed conditions resulting from concessions or building permits (compliance management).

Project reviews and auditing Although every project meeting with the client can be regarded as a kind of project review (in the sense of ISO 9001 clause 8.3), the usual understanding is that of an independent peer review. Its focus can be on design (basic assumptions, legal constraints, design solution, constructability), on economy (value engineering), sustainability (CO2 footprint), or project management (milestone drift, change management). In joint ventures the reviewer may be a senior engineer in-house or from a project partner, or the client solicits a second opinion from an independent consultancy. Project audits may be likewise technical (akin a product audit), “relational” with focus on process interfaces and communication or address the quality of risk management. Possible baselines of project audits are the project or design management plan, the client-approved basic design, legal aspects (incl. health & safety, environmental protection and QM procedures). While project reviews are either based on paperwork or presentations, audits go deeper and address awareness, instructions, craftsmanship, etc. Reviews usually proceed project audits or are themselves subject of an audit. Certain project insurers may require project audits or conduct them themselves to verify quality standards and risk mitigation measures, which were foreseen as condition in underwriting. The client is either informed about the results of project audits or may even be invited as witness.

Organisational & Project Quality: A FIDIC report

Changes

Quality

Environmental

Project controlling and reporting Implementing a project control system is of critical importance to the project wellbeing and is one of the most complex project management challenges. It requires specialised resources, coordinated information, integration, and interpretation of data from all project stages and activities, comparing actual performance with planned performance and initiating necessary corrective action. While some companies have universal control systems that are applied across every project (dashboards), each project should be evaluated separately for the necessary level of control desired by the stakeholders. Project reporting is integrated in project control and is a vital mechanism that provides stakeholders with insights into project progress, performance, and compliance. It enables proactive risk management by identifying potential issues early, allowing for timely interventions. Reporting methods include dashboards for real-time data visualisation and detailed reports for in-depth analysis. The frequency of reporting varies based on project needs, with contractual requirements dictating minimum standards. Internal reporting, however, remains crucial for swift action and finalising contractual reports, driving accuracy and completeness. Effective reporting fosters transparency, accountability, and informed decision-making throughout the project lifecycle. To be efficient, a reporting system should be reliable, synthesize the essential information from a large volume of data, and satisfy both internal and contracted or regulatory requirements. Data must be comparable in a portfolio perspective of the value at risk, to enable setting the priorities right in terms of resources, key personnel and client relation management. It must be forward and issue oriented. Tools reach from classical Excel sheets with conditional formatting, via monitoring of construction progress and field inspection results in building information models, up to neural networks interpreting construction machine data and detecting anomalies.

4 – Small Business, Small Projects

4 – Small Business, Small Projects The art of tailoring Tailoring refers to cutting something to measure, which can also apply to quality management systems which are “oversized” compared to the general needs of the consulting business or for the individual project. The important part is to achieve balance but to ensure an efficient and intended outcome.

Design, development or production? Theirtorically dedicated standards: § ISO 9001:1994 inkl. R&D of products § ISO 9002:1994 inkl. production § ISO 9003:1994 only servicing Misinterpretation that creating a new service is already an research & development activity. The general needs are determined by the business model: § construction management services § building construction without design (neither project nor product development or novel construction methods) § design activities with substantial engineering content Smaller firms, e.g. in the heating, ventilation, and air conditioning (HVAC) sector, could for instance argue that their design is limited to configuring off-the-shelf components with the help of design charts not developed inhouse. The assembly is then considered to be production without design. However, consulting engineers generally contribute intellectual professional services in delivering unique design solutions; occasionally, they may also have research and development capabilities. The same holds true for D&B contractors, unless the architect or engineer, which does the design, is directly paid by the client.

Organisational & Project Quality: A FIDIC report

The key document for a QMS overview is the so-called process map. Some requirements of ISO 9001 can be waived, e.g. after-sales, or warranties (in case the product is merely temporary). In the case of consulting firms, it very much depends on their business model with respect to the project life cycle: Is just basic design performed or also detail design? Or just secondary opinion provided? Are procurement assistance and contract management offered? What about site supervision, commissioning services, and performance monitoring/optimisation during start-up of operation?

Everything must be documented, right? It is a common misconception that ISO 9001 requires that every possible process must be described, and that evidence must be retained for every task completed. Understandably, this misconception deters particularly smaller firms from setting up a quality management system. ISO itself once issued a guidance document for small organisations pointing out that the need of prescribing in detail every single activity depends very much on the level of education and training.

Detailed procedures are only needed if their absence might cause a quality problem. The present version ISO 9001:2015 requires but a handful of documented evidence for process control and leaves it open whether to write a procedure or to document the conformity of the process outcome. Training videos, measurement records, etc. are also considered documented evidence. If a process is programmed as an automatic workflow, the process capability needs to be verified, but obviously no separate programme description is needed. For example, today’s digital tools (e.g. output generated by static analysis software) produce sufficient evidence without classical work instructions. Rather, the capability assessment of authorised users should be documented, e.g. in a skill matrix.

4 – Small Business, Small Projects Small business

Small projects

In principle a small consultancy can be expected to have the same process categories as larger ones, except that administration is simpler. If the consulting firm consists of the principal providing the contract management or site supervision service personally, there may be no need for an HR process at all. Several functions will collapse to very few people in charge and can be described in a single administration process without need for elaborated job descriptions.

It may be expedient to distinguish in the company-wide quality management systems different QM variants according to the type and complexity of projects. According to the project risk analysis conducted at the kick-off meeting and approved by the project supervisory committee of the management board, the appropriate project QM class will then be selected, under the reservation of a periodic re-assessment of risks.

Instead of spending extensive time and effort in describing internal process interfaces, the primary focus will be on external stakeholders and integration of the consulting service into their processes. Thus, the quality management is per se project oriented. In hiring the service of a small specialist firm, its reputation is often more directly dependent on a limited number of services and expertise, and less on management practises. The trust is rooted in the person of the lead consultant and their experience, rather than the instruction and supervision of employees. The flip side, in variance with QMS principles, is the accepted dependence on a single key person with little or no backup. To facilitate the emergence and growth of a local work force, building clients may choose to pay a renowed consultant from abroad to train and supervise local firms that may have a more limited degree or range of experience (referred as “minimum local content” in international tenders). In such cases the quality management framework is provided by the external “mentor”. Also, for the supervision of the construction site, quick response to any issues arising, and for communication with local authorities in their language, small consultancies are in high demand as “front end” of large international engineering companies.

Without predefined variants, a project quality plan needs be set up in the kick-off phase, specifying which procedures are to be applied (or might be omitted) for the project in question. Parameters for project classes: § Consulting fee § Duration § No. of people involved § Prior similar projects § Client relationship § Liability stipulations (uncapped) § Geopolitical conditions The tailoring can be assisted by a matrix showing necessary and optional documentation and checking requirements according to project class or category, flagging out activities with high priority like decision making and record keeping. Some criteria may have legal and strategic character, and it is strongly recommended that the organisation’s core values, vision, business case, relevant legislative and regulatory requirements as well as the overall risk exposure and risk appetite are considered when determining these parameters.

Organisational & Project Quality: A FIDIC report

4 – Small Business, Small Projects A project can start small and evolve into something bigger, either because of underestimated complexity or design changes, for instance building a new bridge after realising that refurbishment is not cost-effective. This may entail additional project steps, as a 1:1 replacement (mono-project) may evolve into a more comprehensive and multi-disciplinary project. Another scenario to consider is where there is a convoy of projects or programme rollout, where a sequence of similar small projects constitutes a larger programme and so can be part of a framework contract. This permits a certain standardisation of project management and quality gates with overarching controlling in a portfolio perspective. A great plus is the possibility to learn during the rollout and improve efficiency, perhaps with optimisation of the client interface, assuming there is sufficient replicability on project deliverables and outcomes. Some caution is therefore required in addressing particularities of local circumstances (e.g. geotechnical and environmental conditions), neighbourhood, etc. Also, resource allocation may become a challenge in that overlap of several constituing small projects is underestimated, or due to delayed commissioning, etc. If interconnected technically or through limited access, small projects, which are individually not very demanding, may suddenly be on the critical path of an overall programme, for instance one of several underpass structures in a long road construction project.

Disproportionate overhead and liability One may think that selecting a consultant on the basis of reference projects will ensure the aptitude and capacity to handle a certain project size. Some caution, however, is needed regarding the disparity between the budget

Organisational & Project Quality: A FIDIC report

for consulting services and the responsibilities attached. Projects which look straight forward in the beginning may exhibit increasing complexity with time. Furthermore, entering similar but distinct contracts with one or more clients generates distinct liabilities related to client reporting, performance and insurance bonds, contract management, stakeholder management, etc. Thus, proper evaluations should be made at the tender stage regarding the resources necessary to fulfil all contractual obligations. Sound risk management, careful documentation of decision making, a back-up plan for bringing in additional resources, and sufficient cover by professional liability insurance are mandatory and more important than the best QM system.

Are mini QMS a good idea? In order to enable startup companies to enter the market, prequalification requirements are sometimes relaxed, and small projects directly awarded after a restricted tendering. Instead of demanding a certified quality management system, the first steps in implementing one are often accepted as demonstration, in conjunction with the documented education and some experience of key personnel (for instance a CEng or PE degree). The selection of the consultant may then be based on a provisional project risk analysis and a draft project quality plan, which should offer internal project audits. Support processes like document control and data management may also be described. Sometimes it is stipulated that the contract volume must not exceed one third of the annual fee income, such that either tendering as a joint venture becomes advisable, or alternatively, other external resources like experts should be integrated in the project organisation chart. To strengthen trust is such an ad-hoc team, the appointment of an external QM advisor which is nominated and charged with an internal audit, using the project as nucleus for the QMS.

5 – Failure and Learning Culture

5 – Failure and Learning Culture What is a failure? Colloquially said, “a failure is an error which reaches the customer”, which is only half true, since it does not explore differences to similar expressions like defect, flaw, deficiency, non-conformity etc.

In civil engineering it is more customary to speak of failure in terms of violating accepted codes of practise, either regarding serviceability (i.e. not fit for purpose) or stability (ultimate limit state of collapse). A defect is a less critical shortcoming or impairment without breakdown of the functioning.

Software engineering even distinguishes between: Fault

Error

Failure

as a defect/bug that may or may not have an effect

as discrepancy between actual and intended system behaviour

with system behaviour contrary to specifications

A violation of contractual specifications is usually called a defect, which may be stated, although a structure complies with the code of practice and is fit for purpose. This can be the case, for instance, if a concrete quality had been specified in excess of what is actually needed. In such a case, ISO 9001 recognises the “concession” which is an accepted derogation compared to a stipulated quality

feature but entitles the client to reduce the fee due to potentially reduced longevity or prematurely consumed strength reserves. Internally an organisation is, of course, free to define already inefficiencies or violation of procedures (e.g. waiving a quality check) as non-compliance, even though the final output meets the specifications.

In ISO certification the typical categories are:

Recommendation

Observation

Minor defect

Major defect

to increase efficiency

of a shortcoming that might cause infringement of an ISO 9001 clause

if several noted shortcomings are related, or if the practise is okay but deviates from the defined process

if not just the process description but also the practise is violating the ISO 9001 standard (e.g. complete neglection of an ISO 9001 clause, missing management leadership, or disregarding agreed contractual conditions)

Organisational & Project Quality: A FIDIC report

5 – Failure and Learning Culture Reporting culture and root-cause analysis

analyse the chain of events to focus on the process and not on human error, to avoid finger-pointing and jumping to wrong conclusions.

ISO 9001 only demands that non-conforming products are detected and retained or, if too late, that the recipient is informed about the deficient product (Clause 8.7). For instance, faulty construction plans may be declared invalid and are replaced by a corrected version. Beyond their immediate rework the organisation must assess whether corrective action (on processes) is needed to avoid recurrence of the same deficiency (Clause 10.2). Often the location where the deficiency was detected is not where it originated.

This is why Kaoru Ishikawa11 promoted the so-called fishbone diagram, which in a mind-mapping style depicts the contributing factors, similar to a chart of a river with several creeks which carry the water leading to a flooding event further downstream.

Moreover, “the” root-cause may be a mixture of contributing effects such that one of the causative subevents alone might not have produced the deficiency. Thus, it is imperative to

Some of these contributing factors may be tolerated malpractises, visualised as moving perforated barriers which may under unfortunate circumstances align themselves such that they can no longer prevent the incident from happening. This insight stems from health & safety practise, where the reporting of “near misses” is advocated to detect and timely eliminate such subliminal problems.

Common Fishbone Diagrams:

Material

Machine

Method

The 6 M

sometimes measurement and money are added as separate factors

Mankind Management

Milieu

Design

Equipment Procedure

Depose

Environment Operator

Supplies/ material

Organisational & Project Quality: A FIDIC report

5 – Failure and Learning Culture

Describe the problem (“5W2H”: who, what, where, when, why, how, how many)

Develop and verify interim containment of the problem (immediate action)

Identify the root causes and missed opportunities for detection (“escape points”)

Choose and verify permanent correction of the problem

Implement and validate corrective actions to the underlying process

Take measures on system level to prevent similar problems (risk mitigation)

Fun

Car

Congratulate the team

Organisational & Project Quality: A FIDIC report

Nourish

rts

lem

b Pro

Suc ces s

ing

Six Sigma uses the acronym of DMAIC for Define, Measure, Analyse, Improve, Control, which is generally considered better than the traditional PDCA cycle (or PDSA with studying instead of simply checking). DMAIC emphasises the quantitative component and the final verification of whether the improvement is effective and sustained.

tici

Cri

Reteaming in Ben Furman’s Twin Star Concept:

cks

Select a team with product/process knowledge

tba

Root-cause analysis bears a considerable risk of a toxic blaming culture, in which failures of others are reported while one’s own are passed over with silence. People easily become defensive if involved in failure investigations, whereas they would be much more willing to share their experience if asked about potential risks and preventive actions. This is the motivation for quality circles and Kaizen, seeking proactive improvements of processes and product design to arrive at a more robust business practise, and the cultural background of empowering employees in Total Quality Management (TQM).

Plan for solving the problem

Solution-orientation and no-fear culture

tion

A proven tool, often used in industrial supply chains is the 8D report with the following 8 Dimensions:

The reduction of different parts to avoid mix-up, the allowance of larger tolerances to simplify fittings, design for ease of testing and improved detectability as “escape points” are all helpful precautions, noted in the Failure Mode and Effects Analysis (FMEA). Some recommendations for further reading are given in the Reading list.

App reci a

Any failure or defect should be documented, and the subsequent steps of rectification be defined in written manner. For the close-out of a failure report, the acceptance of the reworked product must also be documented, preferably with the client's consent if the full compliance with specifications cannot be achieved. Moreover, the effectiveness of the corrective action to prevent recurrence must be ascertained (e.g. in the next internal audit).

Address

5 – Failure and Learning Culture When reporting the client’s dissatisfaction or other bad news to the team, the project manager must decompress emotions for the sake of creating a “safe space”, in which reasons and a constructive way forward can be discussed. The TQM notion of internal supplier-customer relationship and commitment to fellow team members helps to assure a dedicated work to reach the common project goals.

Creativity methods like Design Thinking or the Double Diamond, combined with certain practises to avoid groupthink and to change perspectives – like De Bono’s “Six Thinking Hats12”, for example – help to maintain enthusiasm in a cyclic rhythm of freezing and unfreezing design variants, first on conceptual level, then on detailing level.

Periodic project review workshops in a learning environment allow the team to clarify tasks, to discuss the team atmosphere (milieu) on metalevel and to celebrate milestones. Sometimes the ritual may be more important (for motivation) than the actual lessons learnt. Also success stories are welcome and may lead to identfied succes factors, which might be fed into a client relationship management (CRM) tool. How learnings are identified and managed, e.g. in a risk repository, a sharepoint wiki or a simple project reference list with issues and the names of persons who experienced them, depends on the size and culture of the organisation.

At the project start, stakeholder requirements and project constraints can be challenged in so-called Force-Field Analysis, which is a listing of favourable and unfavourable forces affecting the project (in connection with a stakeholder analysis, for instance). Knowledge repositories like CRM or databases with similar projects should be consulted and in-house experts be identified. Blindly copying project solution from the past may be risky if their constraints and assumptions are unknown. To avoid inefficiency in the design process, the contractual scope of work must always be clear, with a proactive search for loopholes and omissions, which later fall on your feet.

The spirit of venturing When Crosby promoted their zero-defect culture, this was opposing the common thinking in Accepted Quality Levels (AQL) and was intended to strive for process excellence instead. In creative intellectual work such as design, however, certain detours may be needed to explore the solution space. Likewise, engineering may start from a conservative design and use iterative optimisation. Management should encourage the search for new solutions, allowing for “intelligent mistakes” on the route to understanding complexity.

Capability Maturity Models (CMM) Capability Maturity Models originated in the software industry and attempted to build into Sisyphus’ slope of continuous improvement discrete steps, as used in some quality award concepts (e.g. EFQM, Baldrige). The lowest or “step 0” is called naïve/sporadic or heroic – think, for instance, of an experienced project manager who leads a project to success simply through their personal virtues.

Risk maturity growth

§ § § § § §

heroic sporadic unstructured unreflected reactive no learning

§ § § § § §

piloting experimental little support ineffective inconsistent qualitative

§ § § § § §

formalised systematic budgeted tool set metrics suppliers

§ § § § § §

everywhere proactive leadership quantitative improvement partnering

‘natural’ ‘normalised’ ‘novice’

‘naive’

Organisational & Project Quality: A FIDIC report

5 – Failure and Learning Culture The following higher steps are structured or defined, then organised, then measured or managed, and ultimately predicted or optimised. A high process maturity implies well-trained process users and the measurement of key performance indicators (KPIs) and thus a certain rigidity in process management, under which adaptability and agility may suffer.

from society. They show up e.g. between branch offices in international corporations, as empirically observed and analysed in 4, later in 6 scales by Geert Hofstede and often used in Health & Safety culture:

A straightforward example is the CMM for HR management, where on-boarding and off-boarding processes can easily be defined and their effect be measured (fluctuation rate, retention time, age pyramid, etc.). The 5-step model OPM3 by PMI for project management maturity is more complicated, as it strives to assess the ability of an organisation to implement its high-level strategic planning through managing programmes and individual projects. The above risk maturity model is easier to understand but not trivial either, because several aspects leading to good risk management practise are involved, which must be equally developed.

§ Individualism, describing the influence of group pressure (collectivism)

Crosby once said ironically about failure management: step 0 is “we don’t make mistakes” and step 1 “we make mistakes but don’t know where”. More seriously formulated, he distinguishes the steps of uncertainty, regression/ complacency, awakening, enlightenment, and certainty. Awakening and enlightenment describe the learning about the organisation’s costs of non-conformance and how these can be reduced.

Comparing Sweden to Switzerland for example, Switzerland has a higher trust in authorities (larger power distance), is more but not extremely “macho”, risk-averse, disciplined (smaller indulgence) and long-term oriented, whereas both countries equally value individualism.

Intercultural factors If a design is developed in geographical distance from the place of implementation, or if the execution work force is recruited locally, additional thoughts need to be given to language problems but also to different mindsets due to education, personal beliefs and tradition, or pressures

Organisational & Project Quality: A FIDIC report

§ Power distance, as attitude toward social inequality and authority

§ Masculinity, as scale between assertiveness and modesty § Uncertainty avoidance, referring to tolerating ambiguity § Long-term orientation, as thinking in past or future (delayed gratification) § Indulgence, spanning from expressiveness to discipline.

Remembering Abraham Maslow’s hierarchy of needs, it is hardly surprising that African countries are particularly short-term oriented. Development organisations have hence a different concept of project success, stressing the need for a sustainable technology and low-tech maintenance efforts. Cultural influences are shaped by theirtory, political governance, procurement strategies, a tradition of litigation instead of mediation, etc. People are shaped by their surrounding and do what makes sense to them under the prevailing circumstances.

Acknowledgements This Report was prepared by the following individuals from the Quality Task Group of FIDIC’s Business Practice Leadership Committee. Alberto Battois, Malaysia Charu Burmann, India Sonja De Klerk, South Africa Stefan Gondosh, Romania Dr Jorg Martin Hohberg, Switzerland Lars Ostenfeld Riemann, Denmark Athena Sooklall, UK This paper was peer reviewed by Nita Rabadia, UK

Endnotes 1.

ISO 9001_2015 Interpretation Guide 1st Edition (2017) (click here)

In the 2015 edition of ISO 9001, risk management has gained importance, cf. chapter A3.

GLSS, Goleansixsigma, value added flow analysis, (click here)

Pyzdek, T., & Keller, P. A. (2014). The Six Sigma Handbook: A Complete Guide for Green Belts, Black Belts, and Managers at All Levels. New York, NY: McGraw-Hill Education.

Note that the Guide on Risk Management (ISO 31000) is not a certifiable standard to be used in contractual situations. But the other management standards listed above already include elements of risk management, as discussed in chapter A3. Note further that violation of contractual obligations regarding H&S or environmental stipulations in a project may constitute non-conformance already under ISO 9001, without certification to ISO 45001 or ISO 14001.

Goldratt, E. M. (1984). The Goal: A Process of Ongoing Improvement. North River Press.

Pyzdek, T., & Keller, P. A. (2014). The Six Sigma Handbook: A Complete Guide for Green Belts, Black Belts, and Managers at All Levels. New York, NY: McGraw-Hill Education.

Forbes, L. H., & Ahmed, S. M. (2010). Lean Project Delivery and Integrated Practices in Modern Construction. CRC Press.

Maurer, R. (2012). The Spirit of Kaizen: Creating Lasting Excellence One Small Step at a Time. McGraw-Hill Education.

10. http://wiki.doing-projects.org/index.php/File:IronTriangle1.png 11. Ishikawa, K. (1990). Introduction to Quality Control. Translated by J. H. Loftus. 448 pages. 12. De Bono, E. (1985). Six Thinking Hats. London: Penguin Books.

Organisational & Project Quality: A FIDIC report

Appendix American Society of Civil Engineers (Ed.): ASCE Guide – Quality in the Constructed Project. Revised 3rd edition, MOP Series No. 73. ASCE, Virginia 2012. Detailed guidance on QM and QA/QC in all phases of construction projects. Bartlett, John; Chapman, Chris; et al.: Project Risk Analysis and Management Guide. 2nd edition, APM Publishing 2004. Useful compendium of risk management by the British Association of Project Management. Chapman, Chris; Ward, Stephen: Project Risk Management – Processes, Techniques and Insights. 2nd edition, John Wiley 2003. Advanced reading material on RM process implementation and quantitative risk management. Cooper, Dale; Grey, Stephen; Raymond, Geoffrey; Walker, Phil: Managing Risk in Large Projects and Complex Procurements. Wiley 2005. Practise-oriented risk management explained from examples for mining and infrastructure projects. Crosby, Philip B.: Quality is Still Free – Making Quality Certain in Uncertain Times. McGraw-Hill 1996. From the author of the zero defect concept and the quality maturity model as an update of their previous famous books Quality is Free (1976) and Quality without Tears (1984). De Bono, Edward: Lateral Thinking – A Textbook of Creativity. Penguin Life 2016 The latest book of the celebrated author of the Six Thinking Hats. Community https://www.debono.com DeMarco, Tom; Lister, Timothy: Waltzing with Bears – Managing Risks of Software Projects. Dorset House 2013. An entertaining introduction to risk management, not only for software projects. Deming, W. Edwards: Out of the Crisis. MIT Press 2018 (reprint from 1982/1986) The probably most influential book with the 14 points of transformational leadership, the PDCA improvement cycle and statistical process control. Community https://deming.org Fischer, Martin; Ashcraft, Howard; Reed, Dean; Khanzode, Atul: Integrated Project Delivery. Wiley 2017. Compendium of project alliances for multidisciplinary engineering of complex buildings (hospitals, airports) with strong client and contractor involvement. Community https://leanconstruction.org Hammer, Michael; Champy, James: Reengineering the Corporation – A Manifesto for Business Revolution. Collins Business Essentials 2003 Revised edition of the standard work The Reengineering Revolution by Hammer & Stanton (1995) Hart, Roger D.: Quality Handbook for the Architectural, Engineering and Construction Commun-ity. ASQC Quality Press 1994. Application of quality assurance and control to various types of products and services in the construction sector Hilson, David: Effective Opportunity Management for Projects. Marcel Dekker 2004. The book by the acclaimed Risk Doctor introducing an approach to exploiting positive risk. Community https://risk-doctor.com Hofstede, Geert; Hofstede, Gert Jan; Minkov, Michael: Cultures and Organisations – Software of the Mind. McGraw-Hill 2010. 3rd edition of the standard work on intercultural management. Community https://geerthofstede.com International Standards Organisation: ISO 9001:2015 for Small Enterprises – What to do? Advice from ISO/TC 176. 4th edition, ISO 2016. The official guidance for tayloring QM Systems to SME businesses.

Organisational & Project Quality: A FIDIC report

Appendix Kaplan, Robert S.; Norton David P.: Balanced Scorecard – Translating Strategy into Action. Harvard Business Review Press 1996. The original book on the key performance indicators in four perspectives for different management levels. Kerth, Norman L.: Project Retrospectives – A Handbook for Team Reviews. Dorset House, 2013. Good instructions for lessons learnt workshops and team rituals. Kossiakoff, Alexander; Sweet, William N.; Seymour, Samuel J.; Biemer, Steven M.: Systems Engineering – Principles and Practise. 2nd edition, Wiley Student 2011. Textbook based on the Master Programme of the John Hopkinson University. Community https//:www.incose.org Laroche, Lionel; Yang, Caroline: Danger and Opportunity – Bridging Cultural Diversity for Competitive Advantage. Routledge 2014. About international collaboration, offshoring, diversity and intercultural teams. Morris, Peter W.G.; Pinto, Jeffrey K. (Edts.): The Wiley Guide to Managing Projects. Wiley 2004. An encyclopedic collection of contributions by the who-s-who in the project management community. Murray-Webster, Ruth (Ed.) : APM Body of Knowledge. 7th edition, Association for Project Manage-ment, Buckinghampshire 2019 A valid alternative to the PMBoK of PMI, amalgamated with some IPMA thinking. Community: https://www.apm.org.uk Peters, Tom: Thriving on Chaos – Handbook for a Management Revolution. Excel 1987. An introduction to TQM principles from a strategic point of view. PMI: A Guide to the Project Management Body of Knowledge (PMBoK Guide) and the Standard for Project Management. 7th edition, Project Management Institute, 2021. The standard textbook for all aspects of project management and PMP certification. Community: https://www.pmi.org Pryke, Stephen; Smyth, Hedley (Edts.): The Management of Complex Projects – A Relationship Approach. Blackwell 2006. An enlightening book on the importance of creating trust in project coalitions. Sashkin, Marshall; Kiser, Kenneth J.: Putting Total Quality Management to Work – What TQM Means, How to Use it and How to Sustain it Over the Long Run. Barrett-Koehler 1993. Classical text written by an organisation psychologist. Scheinkopf, Lisa J.: Thinking for a Change – Putting the TOC Thinking Process to Use. APICS Series of Constraints Management, St. Lucie Press 1999. Application booklet of Goldratt’s Theory of Constraints Community https://www.ascm.org Senge, Peter M.: The Fifth Discipline – The Art and Practise of the Learning Organisation. 2nd edition. Random House 2006. The famous standard work for learning organisation. Tommelein, Iris et al.: The Last Planner Production System Workbook – Improving Reliability in Planning and Work Flow. 2nd edition, Lean Construction Institute 2007. The authoritative explanation from the UC Berkeley Team. Community https://www.leanconstruction.org Turner, J. Rodney: The Handbook of Project-Based Management – Leading Strategic Change in Organisations. McGraw-Hill Professional 2008. Revision of the 2nd edition (1999) of this standard book on PM implementation.

Organisational & Project Quality: A FIDIC report

Appendix Wideman, R. Max (Ed.): Project and Program Risk Management – A Guide to Managing Project Risks & Opportunities. Project Management Institute, Pennsylvania, 1992. Introduction to risk management for project-oriented organisations. Community: PMI RiskSIG no langer active, but https://www.apm.org.uk/community/risk-interest-network/ as alternative Winch, Graham M.: Managing Construction Projects – an Information Processing Approach. Blackwell 2002. How to overcome cost overruns in projects by collaboration and information flow; a good introduction to partnering, only the chapter on ICT use is outdated. Womack, James P.; Jones, Daniel T.: Lean Thinking – Banish Waste and Create Wealth in Your Corporation. Simon & Schuster, 2003. Classical introductory book to value stream analysis and the pull principle.

Organisational & Project Quality: A FIDIC report

About FIDIC FIDIC, the International Federation of Consulting Engineers, is the global representative body for national associations of consulting engineers and represents over one million engineering professionals and 40,000 firms in around 100 countries worldwide. Founded in 1913, FIDIC is charged with promoting and implementing the consulting engineering industry’s strategic goals on behalf of its member associations and to disseminate information and resources of interest to its members. FIDIC member associations operate in around 100 countries with a combined population in excess of 6.5bn people and a combined GDP in excess of USD30tn. The global industry, including construction, is estimated to be worth over USD22tn. This means that FIDIC member associations across the various countries are worth over USD8.5tn.

Disclaimer This document was produced by FIDIC and is provided for informative purposes only. The contents of this document are general in nature and therefore should not be applied to the specific circumstances of individuals. Whilst we undertake every effort to ensure that the information within this document is complete and up to date, it should not be relied upon as the basis for investment, commercial, professional or legal decisions. FIDIC accepts no liability in respect to any direct, implied, statutory and/or consequential loss arising from the use of this document or its contents. No part of this report may be copied either in whole or in part without the express permission of the authors in writing.