Quality management guidelines for construction
Scope
These guidelines are aligned to AS/NZS ISO 9001:2016 Quality management systems – Requirements.
They are specific to construction procurement and apply to all project and contract activities for NSW Government construction projects, including those involving private sector investment or financing.
Project and contract activities may include:
- detailing project requirements
- project management
- option and concept development
- design and construct
- asset maintenance and operation
- decommissioning.
The guidelines should be read and applied in conjunction with NSW Government Procurement Policy Framework which includes:
- Environmental management guidelines
- Work Health & Safety management guidelines.
These guidelines are published by the NSW Department of Planning, Industry and Environment (document number DOC/19/1282980).
Purpose
Contractors should use these guidelines when planning and implementing their quality management system (QMS), and when preparing site-specific quality management plans (QMPs) which include inspection and test plans (ITPs). The purpose is to:
- specify the minimum quality standards required for all government construction projects
- provide a consistent approach to plan and implement quality systems
- increase productivity and efficiency
- facilitate processes for continuous improvement
- demonstrate compliance with applicable quality standards.
Application
When bidding for government construction contracts valued over $1 million, contractors must have an independently certified quality management system that is compliant with AS/NZS ISO 9001:2016 Quality management systems – Requirements.
All contractors working on NSW Government construction projects must commit to a systematic approach to quality management and demonstrate acceptable standards of quality. Table 1 shows the minimum quality documentation requirements.
| Contract type | Contract value | Quality documentation requirements |
|---|---|---|
Construction | Under $1 million | QMP and ITPs |
$1 million or more | Certified QMS, QMP and ITPs | |
Design and engineering | $250,000 or more | Certified QMS and QMP |
Under $250,000 | QMP | |
Project and contract management | $1 million or more | Certified QMS and QMP |
Under $1 million | QMP | |
Construction-related product supply | Under $50,000 | ITPs and/or certificates of product conformity |
$50,000 or more | Certified QMS and QMP/ITPs |
The application of this guideline outlined in table 1 may be modified by an agency subject to a detailed analysis of specific project or contract related quality risks.
The risk assessment should be undertaken using processes that align with NSW Treasury’s Internal Audit and Risk Management Policy for the NSW Public Sector (TPP15-03).
Agencies may reduce or remove requirements for a QMS/QMP for project and contract management service providers if works are conducted under an agency's QMS and QMP. This is primarily applicable to secondment and client-side engagements of individual contractors/personnel.
Specifying requirements
To ensure prospective contractors are aware of all project-specific requirements, including the extent of monitoring and auditing activities, agencies must include all known quality management requirements:
- as part of the request for tender and tender documentation
- in special clauses of the contract between the agency, the contractor and related suppliers.
Tenders
Requirements, as shown in the Application section, are to be specified in the request for tender and contract documents
For contracts requiring a certified QMS, tenderers should select contractors from a prequalification scheme, procurement list or panel of contractors who have already provided evidence of current certification.
To verify the suitability of the QMS during the tender process, potential contractors may be required to provide:
- evidence of current certification (if not already provided for prequalification)
- a description of their QMS
- other documentation to demonstrate their ability to meet relevant conditions.
Where needed, the requirements for consultant QMPs should be adapted to suit the service to be provided.
Contract requirements
The contract conditions would normally include, as a minimum:
- preparation of a QMP or ITPs by the contractor or its suppliers, and the certification of their conformity before applicable work commences
- reviewing and updating the QMP or ITPs
- planning and conducting its reviews, audits, inspections, witnessing and surveillance of the implementation of the QMS (where applicable), QMP or ITPs
- controlling non-conforming services or products and undertaking appropriate corrective and preventive actions
- providing evidence of conformity with requirements for payment claims
- establishing, and maintaining quality records
- providing access to the worksites, information, documentation, records, explanations, personnel and accommodation necessary for any second-party audits or reviews.
Appendices B, C and D provide further guidance regarding the documentation requirements for QMPs.
Quality management system (QMS)
Compliance
A QMS provides a structure for documentation and processes and enables product and service delivery to be controlled and managed to meet the specified requirements consistently.
The extent and detail of the documentation and processes included in a contractor’s QMS would be determined by:
- the products and services
- practices and characteristics of the contractor
- its customers’ requirements
- the needs of its personnel and its own contractors.
Planning and implementing a QMS involves:
- identifying the areas and assessing the level (likelihood and impact) of risk of products and services not conforming with the specified requirements
- developing processes, plans and procedures to manage risks and opportunities
- identifying and providing resources and allocating responsibilities to suit the plans and procedures
- implementing the plans and procedures
- monitoring, auditing and improving the implementation of plans and procedures
- regularly reviewing and improving the QMS.
Evidence of acceptability
QMS documentation must comply with requirements of AS/NZS ISO 9001:2016 Quality management systems – Requirements.
Where required, the contractor must provide formal JAS- ANZ certification of their quality system (or equivalent) as evidence of compliance.
Quality management plan (QMP)
Compliance
A QMP is a project- or contract-specific plan developed by the contractor.
Applying appropriate quality management processes to plan and deliver the project ensures conformity with the requirements for the contract and manages the quality risks.
The QMP is used and updated regularly during the life of the project or contract.
A QMP should typically include clearly defined:
- project or contract objectives and scope of works
- project and contract schedule/timeframes
- resources, including management structure/personnel and their relevant training
- personnel responsibilities and authorities
- process controls to be used to deal with construction and design risk
- quality procedures, ITPs and associated checklists related deliverables.
It would also include methods for:
- measurement and analysis of outputs and inputs into the construction and design works
- implementation of monitoring and auditing processes
- control processes purchased products and sub-contract works
- identifying non-conformities, and implementing corrective and preventive actions
- document control and records management.
Evaluation criteria
A potential contractor’s quality management capability would be assessed using the identified tender evaluation criteria. Possible criteria include:
- the status of the QMS
- quality management implemented on current and/or recent comparable contracts
- assessment of past QMPs or ITPs.
Consideration of QMPs, design plans or ITPs may not be required in a tender process if:
- the relative abilities of the potential contractors are known, or
- it is assessed that they will not affect the tender evaluation outcome (such as with low-risk contracts).
The agency may accept a contractor with alternative, adequate and relevant process control in place where:
- there is a limited number of potential contractors with a QMS
- having a QMS is assessed as unnecessary for the risks involved with the type and nature of the proposed contract
- appropriate product test certificates from an appropriate test facility for products are provided, or
- an appropriate QMP covering the service delivery for consultant services is provided.
Contractor performance
The contractor’s QMP or ITP should be reviewed for conformity with the requirements at the commencement of the contract.
Subsequent reviews, audits, inspections, and witness and surveillance activities to monitor adequately the QMS, QMP and ITP implementation would also be planned, resourced and undertaken.
To assess the need for second-party reviews and audits, the following should be considered:
- the level of risk involved with the contract
- the performance of the contractor
- the results of any first-party reviews and audits.
To assess the outcome of an audit or review:
- consider any comment obtained from the contractor
- verify that the appropriate corrective action has been taken by the contractor.
If this assessment indicates that implementation of a QMS or QMP or ITP was not satisfactory, undertake further auditing/reviewing and other such activities to verify conformity.
Confirmation of the satisfactory completion of audits, reviews, inspections and tests (and the corrective action undertaken to meet contract requirements) is to be obtained from the contractor and assessed progressively when making progress payments for completed work.
The performance of the contractor in meeting quality requirements should be evaluated and included in regular performance reports prepared for and addressed under the contract.
Documents and records
Agencies must maintain records of the quality performance of their service providers. Records should include:
- QMP
- QMS review reports
- QMP review and performance reports
- comments by contractors on review and performance assessment findings
- related registers.
Further information about the types of documents and records to be maintained is included in:
- Work Health and Safety management guidelines
- Environmental management guidelines.
Appendix A – Terms and definitions
The terms defined in the current AS/NZS ISO 9000 Quality management systems – Fundamentals and vocabulary apply to these guidelines.
The following definitions also apply and take precedence:
| Term | Definition |
|---|---|
Agency | A NSW Government department, authority, corporation or other entity established by an Act of the NSW Parliament, excluding (for the purposes of the guidelines) state-owned corporations. The terms government agency, agency or agencies may be used interchangeably. Agencies may also be customers. |
Audit | An examination of a random or discrete sample of processes to determine if correct plans/procedures are being followed and includes a document review or an examination of activities or an examination of documents and activities, to assess their conformity with requirements. |
Certification | The attestation by certificate that the QMS meets certain defined provisions of the current AS/NZS ISO 9001 Quality management systems – Requirements for use for a certain scope of activities. Usually, this would be provided following a third-party certification audit by an organisation accredited under a Joint Accreditation System of Australia and New Zealand (JAS-ANZ) recognised product certification scheme or another scheme acceptable to the relevant agency. |
Client | The owner of the asset to be procured or project product, and representative of the end users of the asset. |
Construction | Services relating to construction of buildings or works, including:
|
Contractor | A consultant or supplier that contract with a customer to carry out asset construction, provide other products (including goods) or provide services. It has the same meaning as service provider or organisation, as defined in AS/NZS ISO 9000 Quality management systems – Requirements) |
Customer | An entity calling for tenders and awarding a contract, including a customer as defined in the current AS/NZS ISO 9000 Quality management systems – Requirements. Each contract involves a customer (or agency) and a service provider. |
ITP | Inspection and Test Plan |
QMP | Quality Management Plan (including design plan) |
QMS | Quality Management System |
Management | Planning and interactive controlling of human and material resources to achieve time, cost, quality, performance, functional and scope requirements. It involves the anticipation of changes due to changing circumstances and the making of other changes to minimise adverse effects. |
Principal | The Minister for a departmental agency, or the agency where it is a state-owned corporation or authority, which awards and enters a contract as the customer, and for whom the contract work is done under s of a contract (and whose agent invites, receives and processes tenders). |
Procurement | The collection of activities performed by and for an agency to acquire services and products, including assets, beginning with the identification/detailing of service requirements and concluding with the acceptance (and where applicable, disposal) of the services and products. |
Project | An undertaking with a defined beginning and objective by which completion is identified. Project delivery may be completed using one contract or more contracts. |
Subcontractor | An organisation that contracts with a contractor as the customer to carry out construction and related services, and/or provide other products. |
Supplier | An organisation that contracts with a contractor/principal to supply a product or service. |
Appendix B – Typical contract and tender clauses and schedule
Agencies will develop their own clauses to suit their requirements. Typical clauses, as samples of what may be included in conditions of tendering and contracts, are shown below:
In the conditions of tendering
For contracts using the GC21 General Conditions of Contract and valued at or over $1 million with a high risk of quality non-conformity, as determined by the agency:
Quality management
The Principal may elect to pass over a tender if the Tenderer has not obtained a certified corporate Quality Management System as complying with the NSW Government Quality Management Guidelines.
Refer to General Conditions of Contract, Contract clause ‘Quality management’ and Specification clause ‘Quality management requirements’.
Submit, when requested, one of the following:
- evidence of current certification of the Tenderer’s Quality Management System as meeting the current AS/NZS ISO 9001 Quality management systems – Requirements, by a certifying body registered with the Joint Accreditation System - Australia and New Zealand (JAS-ANZ), or
- a successfully implemented Quality Management Plans and associated Inspection and Test Plans complying with the Quality Management Guidelines on works comparable (in value and type) to the Works in the last twelve months.
For contracts using the GC21 General Conditions of Contract and valued at or over $1 million with a low risk of quality non-conformity, and contracts valued at under $1 million with the definite possibility of quality non-conformity, as determined by the agency.
Quality management
Tenderers must demonstrate their capacity to systematically plan and manage the quality of work, and to implement an effective Quality Management Plan and Inspection and Test Plans in accordance with the NSW Government Quality Management Guidelines.
Refer to General Conditions of Contract clause ‘Quality management’ and Specification clause ‘Quality management requirements’.
Submit with the tender a Quality Management Plan and associated Inspection and Test Plans successfully implemented on a previous comparable contract.
In the contract conditions
For contracts using the GC21 General Conditions of Contract and valued at or over $1 million with a high risk of quality non-conformity, as determined by the agency:
Quality management requirements
1 Refer to General Conditions of Contract clause ‘Quality management’ regarding quality management requirements. Maintain the Contractor’s Quality Management System as meeting the current AS/NZS ISO 9001 Quality management systems – Requirements, or equivalent requirements. Develop, document and implement a Quality Management Plan and Inspection and Test Plans (ITPs) for the Contract that are in accordance with; the NSW Government Quality Management Guidelines.
2 Obtain evidence from proposed Subcontractors and certify that Subcontractors’ quality management systems meet the requirements of the Contractor’s Quality Management System.
2A Submit the Quality Management Plan within 28 days of the Date of Contract, covering the relevant elements of the Contractor’s Quality Management System. Include an index of the Contractor’s quality procedures proposed Inspection and Test Plans (with associated checklists) and a schedule of proposed internal audits for the Contract.
2B Submit certification that each Subcontractor’s/Consultant’s quality management plan and/or ITPs meet requirements no later than 14 days before work for which they apply commences. Do not start that work before the certification is submitted.
For contracts using the GC21 General Conditions of Contract and valued at or over $1 million with a low risk of quality non-conformity, and contracts valued at under $1 million with the definite possibility of quality non-conformity, as determined by the agency:
Quality management requirements
1 Develop, document and implement a Quality Management Plan and Inspection and Test Plans (ITPs) for the Contract that are in accordance with the NSW Government Quality Management Guidelines.
2 Submit the Quality Management Plan and ITPs (for activities nominated in the Contract and certification of compliance for other activities), and certification of the compliance of Subcontractors’/Consultants’ plans and ITPs, no later than 14 days before work for which they apply commences. Do not start that work before the documentation is submitted.
For all contracts add:
3 As part of the Quality Management Plan, prior to commencing design work, prepare and implement a Design Plan for the design work under the Contract, covering each phase of the design and the key activities for each phase.
4 The Principal will undertake surveillance (monitoring) of all work associated with the Contract. The Principal may inspect work at nominated ‘Witness’ points, but this work may proceed without endorsement. Do not proceed beyond a nominated ‘Hold’ and without the endorsement of the Principal. Endorsement by the Principal at ‘Hold’ point ‘Witness’ points will not release the Contractor from its obligation to achieve the specified requirements of the Contract. Give at least 24 hours’ notice prior to reaching such points.
5 Submit Inspection and Test Plans, plus any necessary associated checklists, for the following particular activities to the Principal at least 14 days prior to commencing work on that activity. Incorporate the listed Hold and Witness points which require attendance by the Principal.
Activity requiring ITP
Stage of work requiring inspection or test
H or W point (for attendance by Principal)
As identified elsewhere in the contract
As identified elsewhere in the contract
As identified elsewhere in the contract
6 Submit copies of conformity records as specified, including:
Product/Service Conformity Records
Time Records Required
Completed Inspection & Test Plans and associated checklists (including inspection and certification of formwork and scaffolding)
With each Payment Claim as specified, and when otherwise required by the Principal
Test results obtained from testing laboratories and the like
With each Payment Claim as specified, and when otherwise required by the Principal
Quality or test records obtained from manufacturers and suppliers
With each Payment Claim as specified, and when otherwise required by the Principal
Contractor’s certification of quality conformity and performance
With each Payment Claim and when otherwise required by the Contract
Work as executed documents (including operation and maintenance manuals/work as executed drawings)
Progressively and prior to Completion
Register of product and service conformity records
Progressively and prior to Completion
7 If at any time the Contractor fails to comply with the requirements of this clause ‘Quality management requirements’, the Principal may implement such inspections and tests as the Principal determines and the cost incurred by the Principal will be a debt due from the Contractor.
In the GC21 General Conditions of Contract
17 Quality management
17.1 The Contractor must systematically manage its processes in accordance with the Quality Management Systems, Plans, standards and codes specified in the Contract.
17.2 The Contractor must:
- submit documentation required by the Contract by the time or times specified in the Contract;
- review and update the Contractor’s quality management procedures and documentation so they remain adequate at all times to manage and ensure the quality of the Works complies with the requirements of the Contract;
- control non-conforming services and/or products and undertake corrective and preventative action as and when necessary;
- establish, maintain and keep records of all activities related to the management of quality; and
- provide sufficient access to the workplace, and to information, records and other relevant documentation, resources (including personnel), and all other things necessary to allow the Principal to carry out reviews, surveillance and audit of the Contractor’s procedures and conformance with the contractual quality management requirements.
17.3 The Contractor must demonstrate to the Principal, whenever requested, that it has met and is meeting at all times its obligations under clauses 17.1 to 17.3.
Appendix C – Quality management plan assessment checklist
Download the quality management plan assessment checklist DOCX, 98.55 KB
Appendix D – Inspection and test plans (ITPs) guidelines and checklist
Download the inspection and test plans guidelines and checklist DOCX, 488.74 KB
Appendix E – Typical audit arrangements
For a contract requiring inspection and test plans (ITPs) only
1. Review of process
- frequency: ongoing daily inspection
- scope: ensure that
- inspection and tests are carried out
- attendance as noted in ITP
- records of inspections and tests are maintained
- work is acceptable or corrective action taken.
- by: service provider’s authorised person or delegate, for example site foreman
2. Compliance audit/review of implementation
- frequency: as per contract needs and procedures (typically every month)
- scope: same as 1
- by: auditor or project manager/officer
1. Surveillance and monitoring at hold and witness points
- frequency: at hold and witness points
- scope: specified in contract documents
- by: customer's authorised person or delegate
2. Sighting initially and review with claims for payment
- frequency: at provision and claims for payment (typically monthly)
- scope: satisfactory ITP provision/implementation
- by: customer's authorised person or delegate
3. Compliance audit/review of implementation
- frequency: as necessary in accordance with the assessed risk of non-conformity
- scope: ITP being applied in accordance with procedures and records maintained
- by: customer audit/review personnel
For a contract requiring inspection and test plans (ITPs) and a quality management plan (QMP)
1. Review of process
- frequency: ongoing daily inspection
- scope: ensure that
- inspection and tests are carried out
- attendance as noted in ITP
- records of inspections and tests are maintained
- work is acceptable or corrective action taken.
- by: service provider’s authorised person or delegate, for example site foreman
2. Compliance audit/review of implementation
- frequency: as per contract needs and procedures (typically every month)
- scope: same as 1
- by: auditor or project manager/officer
1. Surveillance and monitoring at hold and witness points
- frequency: at hold and witness points
- scope: specified in contract documents
- by: customer's authorised person or delegate
2. Sighting initially and review with claims for payment
- frequency: at provision and claims for payment (typically monthly)
- scope: satisfactory ITP provision/implementation
- by: customer's authorised person or delegate
3. Compliance audit/review of implementation
- frequency: as necessary in accordance with the assessed risk of non-conformity
- scope: ITP being applied in accordance with procedures and records maintained
- by: customer audit/review personnel
1. Review and update of plan
- frequency: as per contract and procedures (typically every 4 months)
- scope: ensure plan is current and meets requirements of the contract
- by: service provider’s authorised person or delegate
2. Compliance audit of implementation
- frequency: as per contract and procedures (typically every 4 months)
- Scope: ensure plan is being implemented
- by: auditor or audit/review personnel
1. Review of plan
- frequency: as per contract and customer requirements and procedures (typically at commencement of contract and as determined by the performance of the service provider)
- scope: verify service provider is maintaining and implementing the plan
- by: customer's authorised person or delegate
2. Compliance audit of implementation
- frequency: As necessary in accordance with the assessed risk of non-conformity (typically review for each phase of the contract)
- scope: examine processes in accordance with the assessed risk of non-conformity
- by: auditor or audit/review personnel
For a contract requiring an accredited quality management system (QMS)
1. Review of process
- frequency: ongoing daily inspection
- scope: ensure that
- inspection and tests are carried out
- attendance as noted in ITP
- records of inspections and tests are maintained
- work is acceptable or corrective action taken.
- by: service provider’s authorised person or delegate, for example site foreman
2. Compliance audit/review of implementation
- frequency: as per contract needs and procedures (typically every month)
- scope: same as 1
- by: auditor or project manager/officer
1. Surveillance and monitoring at hold and witness points
- frequency: at hold and witness points
- scope: specified in contract documents
- by: customer's authorised person or delegate
2. Sighting initially and review with claims for payment
- frequency: at provision and claims for payment (typically monthly)
- scope: satisfactory ITP provision/implementation
- by: customer's authorised person or delegate
3. Compliance audit/review of implementation
- frequency: as necessary in accordance with the assessed risk of non-conformity
- scope: ITP being applied in accordance with procedures and records maintained
- by: customer audit/review personnel
1. Check compliance with system procedures
- frequency: as part of certification audit for conformity/non-conformity with system procedures
- scope: to meet the requirement of the system procedures
- by: organisation and auditor acceptable to the customer
1. Review and update of plan
- frequency: as per contract and procedures (typically every 4 months)
- scope: ensure plan is current and meets requirements of the contract
- by: service provider’s authorised person or delegate
2. Compliance audit of implementation
- frequency: as per contract and procedures (typically every 4 months)
- Scope: ensure plan is being implemented
- by: auditor or audit/review personnel
1. Review of plan
- frequency: as per contract and customer requirements and procedures (typically at commencement of contract and as determined by the performance of the service provider)
- scope: verify service provider is maintaining and implementing the plan
- by: customer's authorised person or delegate
2. Compliance audit of implementation
- frequency: As necessary in accordance with the assessed risk of non-conformity (typically review for each phase of the contract)
- scope: examine processes in accordance with the assessed risk of non-conformity
- by: auditor or audit/review personnel
1. Check compliance with system procedures
- frequency: as part of certification audit for conformity/non-conformity with system procedures
- scope: to meet the requirement of the system procedures
- by: organisation and auditor acceptable to the customer
1. Review of system
- frequency: as described in system procedures to meet the requirements of the standard (typically every 12 months)
- scope: ensure system suitability, adequacy and effectiveness
- by: top management
2. Compliance and system audit
- frequency: as described in system procedures to meet the requirements of the standard (typically on a 12 monthly program)
- scope: ensure system
- meets requirements of standard and of the agency
- is effectively implemented and maintained
- by: auditor or audit/review personnel
1. Compliance audit/review of system
- Frequency:
- at pre-registration/prequalification
- at tender (for some contracts)
- during contract (in accordance with the risk of non-conformity)
- scope: verify system meets requirements of the agency
- by: auditor or audit/review personnel
1. System and compliance audit (re-certification)
- frequency: as required for certification or by agency
- scope: requirement specified by certification organisation to meet JAS-ANZ requirements or alternative acceptable to the agency
- by: certifying organisation auditor or alternative acceptable to the agency
2. System and compliance audit of critical aspects
- frequency: typically every 6 months
- scope: requirement of the system procedures or specified by the customer
- by: organisation and auditor acceptable to the customer
Related resources
Find more resources on the construction category page.