In current competitive environment of the construction industry, continuous quality improvement is becoming a need of the day. One important tool for continuous quality improvement is PDCA cycle (plan, do, check, and act) which can be effectively used for quality improvement and subsequently improvement in the performance by the construction firms. The objectives of the study were to identify the extent to which the firms are utilizing the PDCA cycle, and its effects on the firm performance in the context of small scale construction firms in the Kingdom of Saudi Arabia. Measure were adapted from previous sources to develop a survey questionnaire and through convenience sampling, responses were generated from staff from 20 selected small scale construction firms (n=157). Descriptive statistics indicate that the level of utilization of PDCA cycle among the sample firm is moderate level. Further, the three stages of PDCA cycle including plan, do, and act is having positive and significant effects on the firm performance. Based on the findings, it is recommended that small scale construction firms should focus on greater utilization of the PDCA cycle.