QC Procedure - Non-Conformance Reporting and Corrective Action
Qaremy Construction - NSW Solar Farm Project
Document Control
- Document No: QAR-QCP-002
- Revision: A
- Date: October 2025
1. Purpose
This procedure establishes the process for identifying, documenting, investigating, and resolving non-conformances to prevent recurrence and drive continuous improvement.
2. Scope
This procedure applies to all non-conformances identified during the NSW Solar Farm project, including:
- Material non-conformances (defective, damaged, or incorrect materials)
- Installation non-conformances (workmanship defects, incorrect installation)
- Testing non-conformances (failed tests, out-of-tolerance results)
- Documentation non-conformances (missing records, incorrect documentation)
- Process non-conformances (procedure violations)
3. Definitions
Non-Conformance (NC): A deviation from specified requirements, standards, procedures, or approved documentation.
Non-Conformance Report (NCR): A formal document that records the details of a non-conformance and tracks its resolution.
Corrective Action: Action taken to eliminate the cause of a detected non-conformance to prevent recurrence.
Preventive Action: Action taken to eliminate the cause of a potential non-conformance to prevent occurrence.
Root Cause Analysis: Systematic investigation to identify the fundamental reason a non-conformance occurred.
4. Non-Conformance Categories
4.1 Classification by Severity
| Category | Description | Examples | Impact |
|---|---|---|---|
| Critical | Significant safety risk or major specification violation | - Electrical safety violation - Structural defect - Missing critical certification | Work must stop immediately in affected area |
| Major | Significant quality issue affecting performance or compliance | - Failed insulation test - Installation out of tolerance - Incorrect material used | Work in affected area cannot proceed |
| Minor | Quality issue with limited impact, can be easily corrected | - Missing label - Minor cosmetic damage - Documentation error | May continue with approved concession |
4.2 Classification by Type
| Type | Description |
|---|---|
| Material NC | Defective, damaged, or non-compliant materials |
| Installation NC | Workmanship defects or incorrect installation methods |
| Testing NC | Failed tests or out-of-specification results |
| Documentation NC | Missing, incorrect, or incomplete records |
| Process NC | Failure to follow approved procedures or plans |
5. Responsibilities
| Role | Responsibility |
|---|---|
| Anyone on Site | Can identify and report non-conformances |
| QC Inspector | Identify, document, and issue NCRs; verify corrective actions |
| QA Manager | Review and approve NCRs; approve corrective actions; trend analysis |
| Construction Manager | Investigate root cause; propose corrective actions; implement corrections |
| Engineer's Representative | Review and approve critical NCRs and proposed corrective actions |
| Subcontractors | Respond to NCRs; implement corrective actions; prevent recurrence |
6. Procedure
6.1 Identification and Reporting
Step 1: Identify Non-Conformance
Non-conformances may be identified through:
- Routine inspections and QC checks
- Testing and commissioning activities
- Material receiving inspections
- Internal audits
- Client observations
- Self-reporting by workers or subcontractors
- Third-party inspections
Step 2: Immediate Actions
Upon identifying a non-conformance:
✓ Stop affected work (if critical or major)
✓ Isolate non-conforming work/materials (mark with tags or barriers)
✓ Notify QC Inspector immediately (within 4 hours for critical, 24 hours for others)
✓ Take photos (clear evidence of the non-conformance)
✓ Secure the area (prevent further work or contamination)
Step 3: Initial Notification
For critical non-conformances:
- Notify QA Manager immediately
- Notify Construction Manager
- Notify Engineer's Representative (if required by contract)
- Issue verbal notification followed by written NCR within 4 hours
6.2 Documentation
Step 1: Complete Non-Conformance Report (NCR Form QF-002)
The QC Inspector completes the NCR with the following information:
Section A: NCR Details
- NCR Number: QAR-NCR-[Sequential Number]
- Date Raised
- Raised By (Name and company)
- Location (specific site location)
- Discipline (Civil/Electrical/Mechanical)
Section B: Non-Conformance Description
- Category (Critical/Major/Minor)
- Type (Material/Installation/Testing/Documentation/Process)
- Detailed description of non-conformance
- Reference documents (ITP, specification, drawing number)
- Requirement (what should have been done)
- Actual condition (what was found)
- Photos attached (photo reference numbers)
- Quantity affected (e.g., "5 trackers," "50m of cable")
Section C: Responsible Party
- Subcontractor/Supplier name
- Representative name and contact
Step 2: Distribution
Distribute NCR within 24 hours to:
- QA Manager
- Construction Manager
- Responsible subcontractor
- Engineer's Representative (for critical and major NCRs)
- Document Controller (for filing)
Step 3: Log NCR
Document Controller logs NCR in NCR Register:
- NCR number
- Date raised
- Category and type
- Responsible party
- Status (Open/In Progress/Closed)
- Target closure date
6.3 Investigation and Root Cause Analysis
Step 1: Investigate
Construction Manager and responsible subcontractor investigate:
- How did the non-conformance occur?
- When was it introduced?
- How many units/locations are affected?
- Why was it not caught earlier?
- What are the potential impacts?
Step 2: Root Cause Analysis
For critical and major NCRs, perform root cause analysis using "5 Whys" technique:
Example:
- Problem: String insulation resistance test failed (reading 0.2 MΩ, required >1 MΩ)
- Why 1: Why did the test fail? Water ingress in connector
- Why 2: Why was there water ingress? Connector not properly sealed
- Why 3: Why was connector not sealed? Installer did not push connector fully home
- Why 4: Why didn't installer push fully? Not aware of correct installation technique
- Why 5: Why not aware? Insufficient training on connector installation
- Root Cause: Lack of training on proper DC connector installation
Step 3: Document Findings
Complete Section D of NCR Form:
- Investigation findings
- Root cause determination
- Extent of non-conformance (how many similar instances exist?)
6.4 Corrective Action Plan
Step 1: Propose Corrective Action
Responsible party proposes corrective action:
| Option | Description | When Used |
|---|---|---|
| Repair | Fix the non-conforming work to meet requirements | Most common for installation defects |
| Rework | Remove and redo the work | When repair is not feasible |
| Replace | Replace non-conforming materials | For defective materials |
| Concession | Accept non-conformance with approved deviation | Only if performance not affected (requires Engineer approval) |
| Reject | Return materials or demolish work | When correction not possible or economical |
Step 2: Document Corrective Action
Complete Section E of NCR Form:
- Proposed corrective action method
- Procedure/method statement for correction
- Responsible person
- Target completion date
- Resources required
- Testing/verification method after correction
Step 3: Approval
| NCR Category | Approval Required |
|---|---|
| Critical | QA Manager AND Engineer's Representative |
| Major | QA Manager |
| Minor | QC Inspector |
Note: Any concession (accept-as-is) requires Engineer's Representative approval regardless of category.
6.5 Implementation of Corrective Action
Step 1: Execute Correction
Responsible party implements approved corrective action:
- Follow approved method statement
- Use qualified personnel
- Maintain safety standards
- Document the correction process with photos
Step 2: Notify QC for Verification
Upon completion, responsible party notifies QC Inspector that correction is complete and ready for verification.
Step 3: Verification Inspection
QC Inspector verifies corrective action:
- Inspect corrected work against original requirements
- Conduct any required re-testing
- Take photos of corrected work
- Complete Section F of NCR Form (Verification)
Verification Results:
- ✅ Accepted: Corrective action effective, non-conformance resolved
- ❌ Rejected: Corrective action ineffective, further action required (NCR remains open)
6.6 Preventive Action
Step 1: Identify Preventive Measures
To prevent recurrence, identify preventive actions:
Examples:
- Additional training for workforce
- Update work instructions or procedures
- Improve inspection methods
- Change material supplier
- Implement additional checks or controls
- Modify construction sequencing
Step 2: Document and Implement
Complete Section G of NCR Form:
- Preventive action description
- Responsible person
- Implementation date
- Verification method
Step 3: Verify Effectiveness
QA Manager verifies preventive actions are implemented and monitors for recurrence.
6.7 NCR Closure
Step 1: Closure Approval
Once corrective action verified and preventive actions implemented:
| NCR Category | Closure Approval |
|---|---|
| Critical | QA Manager AND Engineer's Representative |
| Major | QA Manager |
| Minor | QC Inspector |
Step 2: Update NCR Register
Document Controller updates NCR Register:
- Status changed to "Closed"
- Closure date recorded
- Closure approval noted
Step 3: File Documentation
File complete NCR package including:
- Original NCR form
- Investigation notes
- Photos (before and after)
- Test results (if applicable)
- Approvals
- Corrective action records
Target Closure Times:
- Critical NCR: Within 7 days
- Major NCR: Within 30 days
- Minor NCR: Within 14 days
7. NCR Tracking and Reporting
7.1 NCR Register
Document Controller maintains NCR Register with:
- NCR number and date
- Category and type
- Description (brief)
- Responsible party
- Status (Open/In Progress/Closed)
- Date closed
- Days open
7.2 Monthly Reporting
QA Manager provides monthly NCR report to Project Manager including:
- Total NCRs raised (by category and type)
- NCRs closed during period
- Open NCRs (status update)
- Overdue NCRs (action required)
- Trend analysis (are NCRs increasing/decreasing?)
- Common themes (systemic issues)
- Recommendations
7.3 Trend Analysis
QA Manager analyzes NCR data to identify:
- Recurring issues (same non-conformance repeated)
- Problematic subcontractors (high NCR rates)
- Problem areas (specific discipline or activity)
- Effectiveness of preventive actions
Trends are reviewed in monthly quality meetings and corrective actions implemented.
8. Special Cases
8.1 Client-Issued NCRs
When client issues an NCR to contractor:
- Treat as critical (unless stated otherwise)
- Response required within 48 hours
- Corrective action plan within 5 days
- Regular status updates to client
- Formal closure approval from client required
8.2 Systemic Non-Conformances
When multiple similar NCRs occur (3 or more of same type):
- Escalate to QA Manager and Construction Manager
- Conduct comprehensive root cause analysis
- Implement systemic corrective actions
- May require procedure revision or re-training
- Increased inspection frequency until resolved
8.3 Repeated Non-Conformances
When same non-conformance recurs after corrective action:
- Indicates ineffective corrective action
- Re-open investigation
- Consider alternative corrective approach
- May require subcontractor performance review
- Escalate to Project Manager
9. Non-Conformance Examples (Learning Reference)
Example 1: Material Non-Conformance
NCR-045: PV Modules with Cell Cracks
- Description: During receiving inspection, 15 modules found with hairline cell cracks (5% of delivery)
- Category: Major
- Root Cause: Inadequate packaging for transport
- Corrective Action: Rejected and returned to supplier, replacement delivery with improved packaging
- Preventive Action: Updated receiving inspection to check 10% sample (increased from 5%), supplier to use reinforced packaging
Example 2: Installation Non-Conformance
NCR-078: Tracker Foundation Piles Below Minimum Depth
- Description: 12 piles in Row 15 installed to 1.2m depth (specification requires minimum 1.5m)
- Category: Critical (structural integrity)
- Root Cause: Installer did not verify depth measurement, assumed torque alone was sufficient
- Corrective Action: Extract and reinstall all affected piles to correct depth, re-test torque
- Preventive Action: Mandatory depth measurement for every pile (100%), daily toolbox talk on pile installation requirements
Example 3: Testing Non-Conformance
NCR-102: String Insulation Resistance Below Minimum
- Description: String S-045 insulation resistance = 0.3 MΩ (requirement ≥1 MΩ)
- Category: Major
- Root Cause: Moisture ingress in one DC connector due to improper mating
- Corrective Action: Identified faulty connector, replaced, re-tested (result: 150 MΩ - pass)
- Preventive Action: Re-training on DC connector installation, implement "click test" verification (pull test after connection)
Example 4: Documentation Non-Conformance
NCR-125: Missing Material Certificates
- Description: HV cable installed without required continuous length certificates
- Category: Major
- Root Cause: Cable drum delivered without certificates, installer proceeded without verification
- Corrective Action: Obtain certificates from supplier (verified cable drum was continuous length), retroactively approved
- Preventive Action: Updated procedure - no cable installation without certificates present on site
10. Forms and Templates
10.1 Required Forms
- Form QF-002: Non-Conformance Report (NCR)
- NCR Register Template: Excel tracking spreadsheet
- Monthly NCR Summary Report Template
10.2 NCR Numbering System
Format: QAR-NCR-[Year]-[Sequential Number]
Example: QAR-NCR-2025-045
- QAR = Qaremy Construction
- NCR = Non-Conformance Report
- 2025 = Year
- 045 = 45th NCR of the year
11. Training Requirements
All project personnel must receive training on:
- How to identify non-conformances
- How to report non-conformances
- Immediate actions when NC identified
- NCR process and responsibilities
- Importance of corrective and preventive action
Training recorded in project training register.
12. References
- AS/NZS ISO 9001:2016 - Quality Management Systems (Clause 10: Improvement)
- QAR-QMP-001 - Quality Management Plan
- All Inspection and Test Plans (ITPs)
- Project specifications and standards
13. Appendices
- Appendix A: Form QF-002 - Non-Conformance Report
- Appendix B: NCR Register Template
- Appendix C: Root Cause Analysis Tools (5 Whys, Fishbone Diagram)
- Appendix D: Monthly NCR Report Template
14. Revision History
| Revision | Date | Description | Prepared By | Approved By |
|---|---|---|---|---|
| A | Oct 2025 | Initial Issue | QA Manager | Project Manager |
END OF DOCUMENT