2.20 - Appendix G - Project Coordination Procedure 170611df

Appendix G Coordination procedure
eni ZUBAIR PROJECT
APPENDIX G
PROJECT COORDINATION PROCEDURES
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TABLE OF CONTENTS 1. 1.1 1.2 1.2.1 1.2.2 1.3 1.3.1 1.3.2 2. 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.4 2.4.1 2.4.2 3. 3.1 3.2 3.2.1 3.2.2 3.3 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.6 4. 4.1 4.2 4.3 4.4 4.4.1 4.4.2 4.5 4.5.1 4.5.2 INTRODUCTION PURPOSE DEFINITIONS, ACRONYMS AND ABBREVIATIONS General Definitions Specific Terms, Acronyms and Abbreviations ROLES AND RESPONSIBILITIES COMPANY CONTRACTOR PLANNING AND SCHEDULING GENERAL Reports Format Submission Measurement and Control System Submission Short Term Plans Primavera P6 Project Management Software PLANNING AND SCHEDULING MASTER TOOL WORK TIME SCHEDULE Schedule Coding System PLANNING AND SCHEDULING SUB TOOLS Contract Execution Plan Planning of resources CTRs (Cost, Time, Resource Sheet) Risk Management Plan TOOLS ADMINISTRATION Progress Measurement Progress Reports COST CONTROL REPORTING PREAMBLE COST REPORT Cost Reporting Structure Monthly Cost Report Meeting CURRENT CONTRACT PRICE COST FORECAST Cost Forecasting Procedure Cost Forecast Supporting Documentation Cost Forecast Phasing Forecast Calculation VALUE OF WORK DONE VOWD Procedure VOWD Supporting Documentation Variance from Planned VOWD Accrual Justification Forms INVOICED ADMINISTRATION AND PAYMENT GENERAL CONTRACT MANAGEMENT KICK-OFF MEETING COMMUNICATIONS Transmittal Note Correspondence Coding and Register Submission MEETINGS Meetings Minutes Meetings Agenda
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5 5 5 5 5 6 6 7 7 7 7 7 7 8 8 8 9 10 10 10 11 11 12 12 13 16 16 16 17 17 17 17 17 17 18 18 18 18 18 19 19 19 20 20 20 20 21 21 21 22 22 23
4.5.3 4.5.4 4.5.5 4.5.6 4.5.7 4.6 4.6.1 4.6.2 4.6.3 4.6.4 4.6.5 4.6.6 4.7 4.8 4.9 4.9.1 4.9.2 4.9.3 4.9.4 4.9.5 4.9.6 4.9.7 4.9.8 4.10 5. 5.1 5.2 5.3 6. 6.1 6.2 6.3 6.4 6.5 6.6 7. 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 8. 8.1
Daily, Weekly/bi-weekly Progress Meeting Monthly Progress Meeting Procurement Plan Procedures for SUBCONTRACTORs Control and Administration Subcontracts Documentation CONTRACTOR PERSONNEL ADMINISTRATION Project Organisation Chart Key Personnel CVs Register of CONTRACTOR PERSONNEL Personnel Assignment Authorisation Form (PAAF) Timesheets Overtime SITE / COMPANY INSTRUCTIONS, VARIATION ORDER REQUESTS AND VARIATIONS CONTRACT CALL-OFFS/WORK ORDERS PAYMENT APPLICATIONS AND PAYMENT Application for Milestone Payment Application for Payment Certification and Payment by Company Format Invoiced Expenses Reimbursable Materials Rebates Final Billing COMPLETION AND CONTRACT CLOSE OUT INTERFACE MANAGEMENT INTERFACE MANAGEMENT SYSTEMS SCOPE CORE INTERFACE ISSUES PROCUREMENT, MATERIAL MANAGEMENT AND EQUIPMENT CONTROL CONTRACTORS PROCEDURES MATERIAL REQUIREMENTS PLANNING PURCHASING / CONTRACTS EXPEDITING LOGISTIC SURVEY SITE MATERIAL CONTROL ENGINEERING DESIGN ACTIVITY PLAN DESIGN CONTROL ENGINEERING EXECUTION PLAN ENGINEERING CHANGE CONTROL ENGINEERING INTERFACE CONTROL CONTRACTORS INTERNAL ENGINEERING REVIEW SOFTWARE VALIDATION, VERIFICATION AND TESTING DOCUMENT REVIEW NON-CONFORMANCE TECHNICAL QUERY PROCEDURE. NAMING AND CODING OF ENGINEERING OBJECTS CAD MANAGEMENT DOCUMENT CONTROL GENERAL
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23 23 23 23 23 24 24 24 24 24 24 25 26 26 26 26 26 27 27 27 27 28 28 28 29 29 29 30 31 31 31 31 32 32 32 33 33 33 34 34 34 35 36 36 37 37 37 37 38 38
8.2 8.3 8.3.1 8.3.2 8.3.3 8.3.4 8.3.5 8.3.6 8.3.7 8.3.8 8.4 8.5 8.6 8.7 8.7.1 8.7.2 8.7.3 8.7.4 8.7.5 8.7.6 8.7.7 8.8 8.8.1 8.8.2 9. 9.1 9.2
SUB-CONTRACTORS AND SUPPLIERS DOCUMENTATION DOCUMENT ADMINISTRATION Central Document Control (CDC) Computerized Database Document Control and Distribution Interfaces Document Transmission Document Filing and Retrieval Document Status Reporting Document Numbering DOCUMENT VERIFICATION AND APPROVAL BY CONTRACTOR DOCUMENT VERIFICATION AND APPROVAL BY COMPANY DOCUMENT SUBMISSION TO COMPANY GENERAL DOCUMENTATION REQUIREMENTS Quality Requirements Size Formats Information Units of Measurement Symbols Revisions PROJECT COMPLETION DOSSIER Supplier Dossiers Records Retention PERMITS, CONSENTS AND CERTIFICATION REPRESENTATIVES REPORTS AND PROGRESS MEETINGS
38 38 38 38 39 39 39 39 40 40 40 41 42 42 42 42 43 43 43 43 43 43 43 43 44 44 44 45 46 47 48 49 50 53 56 58 60 61 62 63 64 65
ANNEX A. TYPICAL ACTIVITY WORK BREAKDOWN STRUCTURE ANNEX B. WORK TIME SCHEDULE SAMPLE ANNEX C. PROGRESS S CURVE ANNEX D. MANPOWER HISTOGRAM ANNEX E. COST, TIME, RESOURCE SHEET (CTR) ANNEX F. REPORTS
ANNEX G. DELIVERY DATES ANNEX H. COST REPORT TEMPLATE ANNEX I. ANNEX J. COST PHASING S CURVE YEAR END ACCRUALS JUSTIFICATION FORM
ANNEX K. CORRESPONDENCE CODING ANNEX L. MINUTE OF MEETING FORMAT
ANNEX M. PERSONNEL ASSIGNMENT FORM ANNEX N. MILESTONE PAYMENT CERTIFICATE ANNEX O. PAYMENT CERTIFICATE
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1.
INTRODUCTION 1.1 PURPOSE
This Document, representing the Project Co-ordination Procedures of the CONTRACT describes the procedural requirements of COMPANY that shall be applied by CONTRACTOR for the sections that are applicable according to the WORK. CONTRACTOR shall develop a full set of procedures which covers the full scope of work set out within the contractual documents relevant to the Scope of Work. CONTRACTOR shall be solely responsible for developing all necessary procedures except for such mandatory procedures as COMPANY may supply to CONTRACTOR. CONTRACTOR shall ensure that all procedures developed by CONTRACTOR are aligned to and compatible with this Document. If CONTRACTOR takes the view that any of the procedures described in this Document do not apply in respect of the CONTRACT, CONTRACTOR shall without delay notify COMPANY in writing specifying the relevant procedures and the reasons why CONTRACTOR takes the view that such procedures should not apply. Prior to implementation, CONTRACTOR shall submit all proposed procedures to COMPANY for review and APPROVAL according to the date specified in Annex G. COMPANY may at its sole discretion request that procedures be modified or new procedures introduced to improve the administration of the CONTRACT. Following APPROVAL by COMPANY, CONTRACTOR may not alter and/or amend any procedures without the prior written consent of COMPANY. Nothing contained within COMPANY procedures shall limit or in any way dilute the overall responsibilities of the CONTRACTOR for the total performance of the WORK. Where additional procedures are identified during the course of the WORK as being necessary, the CONTRACTOR shall ensure that such procedures shall be developed and APPROVED by COMPANY prior to carrying out the WORK in accordance with the requirements of the CONTRACT. 1.2 1.2.1 DEFINITIONS, ACRONYMS AND ABBREVIATIONS General Definitions
Unless otherwise defined in this Document or the context otherwise requires, words and expressions in capital letters shall have the meanings given to them in CONTRACT General Terms and Conditions of the CONTRACT. 1.2.2 Specific Terms, Acronyms and Abbreviations
For purposes of this Document, unless the context otherwise requires the following shall have the following meanings:
Term / Acronym / Abbreviation Explanation
Bulk Material
Materials such as piping, electrical material, firefighting instruments and miscellanea necessary to make the equipment of a complex system. A Gantt chart produced by CONTRACTOR and submitted for approval to COMPANY On Approval of the submitted WORK TIME SCHEDULE, CONTRACTOR shall Baseline the Dates and Graphical reports produced from this Schedule and these shall form the Baseline Schedule, S Curves and Histograms. The Baseline Schedule is referred to as the Target Schedule and shall be used as a reference to compare Actual Performance. The Forecast Schedule shall be the result of regular updating of
WORK TIME SCHEDULE
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the original Baseline at agreed progress Cut-Off Dates. This Schedule shall indicate the latest forecast Start & Finish dates for the Scope of Work versus the Baseline dates for the Scope of Work. CTR Cost, Time & Resource ( CTR ) a method of detailing the scope into packages of WORK, identifying the associated deliverables, Budget Manhours, Schedule Timing & Cost. Whole of devices and machines such as columns, reactors, exchangers, containers, furnaces, compressors, pumps, filters, ejectors and others which have a specific function within a complex system such as oil plants. A graphical representation of planned, actual and forecast manpower/ man-hour loadings. Histograms 'Baseline' Histogram is derived from the first APPROVED WORK TIME SCHEDULE. 'Current' Histogram agreed subsequent to the 'Baseline' Histogram that reflects APPROVED changes to the Scope of Work. Milestone Certificate Payment Certificate Contract Milestone Payment Milestone payment certificate duly issued to CONTRACTOR by COMPANY. Payment certificate duly issued to CONTRACTOR by COMPANY. Contract Milestones are usually specific time related events determined by COMPANY driven to ensure the overall Contract Master Schedule objectives can be achieved on time. Plan which identifies systems, processes and procedures to be implemented for quality control when executing the Scope of Work. A graphical representation of the rate of Planned and Achieved percentage progress. 'Baseline' 'S' Curve is derived from the first Approved WORK TIME SCHEDULE. S CURVE 'Current' 'S' curve, agreed subsequent to the 'Baseline' S curve that reflects Approved changes to the Scope of WORK. Forecast S Curve is a projection of the remaining WORK (from the actual to date) to complete. The forecast curve shall be re run after every progress update. A Technical query is the term used to reference questions from CONTRACTORs, Vendors or Suppliers seeking clarification of a technical nature usually relating to a drawing, specification or other documents.
Equipment
Contract Quality Plan
TECHNICAL QUERY (TQ)
1.3
ROLES AND RESPONSIBILITIES
1.3.1
COMPANY
The COMPANY will appoint the person to act on COMPANY's behalf for all project activities and to be the interface with the CONTRACTOR as COMPANY REPRESENTATIVE. The COMPANY REPRESENTATIVE can appoint an adequate number of representatives which will be appointed in different points and aspects of the WORK in accordance with the terms of the CONTRACT.
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1.3.2
CONTRACTOR
During the execution of the CONTRACT, CONTRACTOR shall be responsible for the management of technical queries, interface requests, request of deviations (including request for exceptions, non conformity management, request for waivers) and the processing of CONTRACTOR Query, COMPANY Instructions , VARIATION ORDER REQUEST and VARIATION ORDER, according to a process (roles, responsibilities, steps) which will be defined by COMPANY. A specific tool provided by COMPANY and named SIGEP will be used to implement such processes. CONTRACTOR will be trained in using the web-based tool, and shall appoint appropriate personnel for such task. The CONTRACTOR shall submit to COMPANY the proposed organization charts, the responsibilities and authority levels applicable to CONTRACTOR's personnel for all phases of the WORK. CONTRACTOR agrees that the KEY PERSONNEL stated in the organization charts are considered Project staff and will not be changed out without prior APPROVAL of COMPANY in accordance with the requirements of the CONTRACT. CONTRACTOR shall employ sufficient experienced Contract Administration and Cost Control staff necessary to ensure that full professional, contractual and commercial control is exercised throughout the execution of the WORK.
2.
PLANNING AND SCHEDULING 2.1 GENERAL
CONTRACTOR shall be responsible for preparing and submitting to COMPANY complete and accurate information on planning, scheduling and WORK progress. COMPANY has the right to request regular (i.e. daily, weekly, bi-weekly and / or monthly) submission of reports produced by CONTRACTOR. 2.1.1 Reports Format Submission
The format for planning documentation shall be agreed with COMPANY prior to the date of signature of the CONTRACT. These are to be in accordance with Annex F. 2.1.2 Measurement and Control System Submission
CONTRACTOR shall provide a comprehensive planning, progress, measurement and control system for the execution of the CONTRACT. CONTRACTOR shall ensure that it has its own in-house detailed planning, monitoring and reporting systems e.g. document register. Sub-task man-hour control system, procurement tracking system, fabrication shop production schedules, etc, shall have the ability to aggregate progress to the Schedule activity level. CONTRACTOR shall set up these systems prior to the date of signature of the CONTRACT to COMPANYS satisfaction in order to comply with progress reporting requirements. 2.1.3 Short Term Plans
At COMPANYs request, CONTRACTOR shall support the main planning documents referenced below with COMPANY APPROVED short-term plans e.g. 3 months, 6 weeks or monthly look-ahead Gantt charts and planned/actual/forecast manpower/man-hour histograms etc. These short-term plans should be in sufficient detail to allow areas of achievement and non-achievement to be identified as WORK progresses.
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2.1.4
Primavera P6 Project Management Software
The mandatory software for producing planning documentation is Primavera P6 Version 7.0. COMPANY reserve the right to request P6 compressed files (.XER or .XML) to independently verify CONTRACTORs data. 2.2 2.2.1 PLANNING AND SCHEDULING MASTER TOOL WORK TIME SCHEDULE
CONTRACTOR shall produce as part of the overall planning requirements a schedule in the form of a Gantt chart, fully resourced (Manpower, Manhours, Materials, Equipments) to include all WORK to be performed under the CONTRACT and as identified in the Scope of Work. The WORK TIME SCHEDULE shall be broken down into principal categories of the WORK by project phase, area, department, discipline, system and (pre)-commissioning packages, in accordance with the COMPANY Work Breakdown Structure as shown in Annex A. The level of detail of the WORK TIME SCHEDULE shall be agreed by the COMPANY REPRESENTATIVE. The WORK TIME SCHEDULE shall provide a step-by-step illustration of the entire Scope of Work from the EFFECTIVE DATE through to the COMPLETION DATE, including Engineering, Procurement, Construction, Testing and (pre)-Commissioning. The WORK TIME SCHEDULE shall be produced in a logical sequence and the activities shall be linked with logical relationships (i.e. Finish-to-Start, Finish-to-Finish, Start-to-Start or Start-to-Finish where appropriate) to avoid open-ends activities and to correctly determine the WORK TIME SCHEDULE Critical Path. The use of the constraints must be kept to an absolute minimum and only used when a logical constraint is not applicable. All major Project Milestones shall be shown on the schedule as a series of key events. Additional key activities within the WORK TIME SCHEDULE shall be selected for monitoring in consultation with COMPANY REPRESENTATIVE. The Level of Schedules shall be as follows: Level 1 (Milestone Schedule) schedule showing major CONTRACT activities and milestones. This is a project control document and will serve as the basis for development of the other schedules Level 2 (Summary Schedule) schedule showing a summary of all activities detailed in the Level 3 schedule. Level 3 (CPM Control Schedule) schedule showing CONTRACT milestones, all key activities with corresponding start / completion dates and durations, and the critical path and float. It will be developed to a level of detail sufficient to ensure effective communication and control. . Level 4 (Deliverables Schedule) shall include deliverable databases (drawings & documents register, fabricated items, installed/constructed Items) Schedules at lower levels of planning shall at all times be consistent with schedules at the higher levels. The activities shall include in addition to CONTRACTORs own WORK activities, the activities of its SUBCONTRACTORS, COMPANY and THIRD PARTY interfaces such as receipt of information reviews and Approvals (COMPANY and SUBCONTRACTORS data, information etc.), tests delivery and decision points. The size and level of detail of the WORK TIME SCHEDULE activities shall be sufficient to demonstrate and confirm the achievement of Project Milestones and the impact of possible delays on the schedule. The size and level of detail of the WORK TIME SCHEDULE activities shall satisfy COMPANYS progress monitoring requirements and co-ordination of interfaces with other parties. The WORK TIME SCHEDULE activities shall have their duration estimate expressed in working days. Rev 01 17.06.2011 Page 8 of 65
In order to facilitate consistent resource aggregation all analyses of the WORK TIME SCHEDULE should use a Fixed Duration" option. The WORK TIME SCHEDULE shall be submitted to COMPANY for APPROVAL according to the date specified in Annex G. Once COMPANY has APPROVED the WORK TIME SCHEDULE, CONTRACTOR shall Baseline the WORK TIME SCHEDULE which shall be used to compare the Performance. 2.2.1.1 Allocation of Activity Man Hours Each WORK TIME SCHEDULE activity shall include an estimate of the WORK content in terms of man-hours broken down by classification/roles for each relevant activity. For Activities where man hours are inapplicable, major quantities are to be included for each relevant activity. All estimated man-hours shall be entered into the WORK TIME SCHEDULE. The WORK TIME SCHEDULE shall clearly distinguish between direct and indirect manhours. 2.2.1.2 Changes to Overall Project Schedule CONTRACTOR shall not change any or part of the baselined WORK TIME SCHEDULE without prior APPROVAL from COMPANY and/or where applicable, by the issue of a VARIATION pursuant to the provisions of the CONTRACT. On receipt of a COMPANY instruction or a SITE instruction. CONTRACTOR shall estimate the manhours necessary to do the WORK and allocate all additional man-hours to new activities which shall then be added to the WORK TIME SCHEDULE in its correct logical sequence. CONTRACTOR shall then return the result to COMPANY for APPROVAL. Data records shall be kept and maintained throughout the CONTRACT, and all previous changes shall be saved as historical data. 2.2.1.3 WORK TIME SCHEDULE Re-Baseline Where the scope of work has changed significantly from the baseline (+/- 15% of Original Scope), the WORK TIME SCHEDULE may be re-baselined. A re-baseline will only be carried out when APPROVAL has been received from the COMPANY REPRESENTATIVE. 2.2.1.4 Schedule Calendars CONTRACTOR shall develop and agree with COMPANY calendars for the different phases of the WORK. The calendars shall recognise the differing working conditions for the location where the WORK is to be executed. 2.2.2 Schedule Coding System
All WORK TIME SCHEDULE activities shall be coded as detailed below: 2.2.2.1 Intelligent Activity ID Numbering System The Activity Identification (ID) Number shall be up to a maximum of fifteen alphanumeric characters that shall identify the WBS Element code and/or CTR number where relevant. 2.2.2.2 WORK TIME SCHEDULE Activity Codes Dictionary The group and sort codes applied to the WORK TIME SCHEDULE activities shall be such as to enable the WORK TIME SCHEDULE to be divided, filtered and summarised into meaningful packages.
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2.2.2.3
WBS Codes Dictionary The WBS coding structure will be agreed by the COMPANY REPRESENTATIVE. The coding structure shall cover all phases of the Scope of Work, including engineering and procurement (including testing, certification and delivery on site) phases of the WORK. The WBS coding structure shall allow for a unique code field for each element, ,to be used by the COMPANY planning engineer. CONTRACTOR shall adhere to the Work Breakdown Coding structure (levels 0 to 3) as indicated in Annex A. Levels 4 and 5 will be proposed by the CONTRACTOR and agreed with the COMPANY. All schedule activities shall be assigned a Work Breakdown Structure (WBS) code value. CONTRACTOR shall ensure that all SUBCONTRACTORS utilise the same structure within their own plans and schedules. 2.3 PLANNING AND SCHEDULING SUB TOOLS
2.3.1
Contract Execution Plan
The CONTRACT EXECUTION PLAN shall encompass all CONTRACTOR's planning information based on the elements of WORK TIME SCHEDULE No change shall be made to the CONTRACT EXECUTION PLAN without APPROVAL by the COMPANY The CONTRACT EXECUTION PLAN shall be progressively updated throughout the WORK. The CONTRACTOR shall submit the CONTRACT EXECUTION PLAN for COMPANY APPROVAL according to the date specified in Annex G.
2.3.2 Planning of resources
2.3.2.1
Progress S Curves
CONTRACTOR shall develop for the CONTRACT a graphical representation of the rate of planned and achieved percentage progress (Progress S Curve). The CONTRACT physical progress shall be measured against a series of agreed planned Progress 'S' Curves. These Progress 'S' Curves shall be produced from the aggregation of weighting(s) over agreed periods (either weekly, two weekly or monthly) drawn from the early dates derived the time limited or resource limited schedule of the WORK TIME SCHEDULE. The cumulative value of the aggregated weighting(s) plotted against a time base calculated from the WORK TIME SCHEDULE shall form the planned Progress 'S' Curve. (refer to Annex C for example) The Progress 'S' Curve graph shall also include the cumulative planned and actual percentage progress and forecast tabulated data to a single decimal place. All Progress 'S' Curves produced after the manpower/weighting analyses have been completed will require COMPANYS APPROVAL and shall not be deviated from without COMPANYS prior APPROVAL. Typical curves to be submitted to COMPANY shall include separate phases of the CONTRACT (e.g. Discipline Activities; PO placements; Equipment/bulk Material progress; etc.) and will be agreed prior to the EFFECTIVE DATE or at such other time as may be specified in the CONTRACT or agreed between the PARTIES. Such curves could cover for example the overall CONTRACT. Direct and indirect Scopes of Work must be reported separately. Where the WORK TIME SCHEDULE has been re-baselined, both the original CONTRACT and the current baseline Progress 'S' Curve shall be shown on the same report.
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2.3.2.2
Histograms
Any manpower analysis submitted to COMPANY shall be directly extracted from the resource WORK TIME SCHEDULE and shall indicate the levels of manpower required overall and by classification at each stage of the WORK to enable the WORK TIME SCHEDULE to be achieved. The manpower analysis shall be presented in the form of a HISTOGRAM aggregated over agreed periods (either weekly, monthly or quarterly) showing manning levels throughout the CONTRACT period taking cognisance of such requirements as holiday rest periods, weather conditions, working hours per week etc. The initial submission shall be the baseline HISTOGRAM derived from the APPROVED WORK TIME SCHEDULE and indicating the planned manpower required per period to successfully achieve CONTRACT COMPLETION DATE. (refer to Annex D for example).
2.3.2.3
Man Hours Figures The periodic and cumulative aggregated manpower/man-hour figures must be shown in tabulated form on the HISTOGRAM. The Actual Equivalent Manpower can be derived from the expended manhours per period divided by the normal working hours per man per period. Direct and Indirect Scopes of Work shall be reported separately. CONTRACTOR shall maintain an up-to-date record of man-hour expenditure (where applicable) by CTR and WORK TIME SCHEDULE activity. Manpower HISTOGRAM reports showing planned, actual and forecast manning levels shall be reissued after each update period having performed a time or resource limited schedule of the WORK TIME SCHEDULE using the earliest estimated dates for aggregation purposes. This will apply to all analyses throughout the CONTRACT period. 2.3.3 CTRs (Cost, Time, Resource Sheet)
Where specific requirements in the Scope of Work are to be managed by Cost, Time & Resource sheet (CTRs), these shall be produced by CONTRACTOR for the identified WORK scope in accordance with the following guidelines: a. Input data and external interface data must be identified in the CTR b. The activity deliverable / manhours estimate must be easily identified and monitored. c. Schedule activities must be easily referred back to its CTR by a suitable coding structure. d. Schedule timing and cost must be defined in the CTR A sample CTR sheet is contained in Annex E - of this document. 2.3.4 Risk Management Plan
The following is an overview of the Risk Management process that will be carried out during the project. The Project Risk Management Plan forms an integral part of the overall Contract Execution Plan. Risk management will follow COMPANY requirements for Value Risk Management Risk management activities will be closely monitored and reviewed by the COMPANY Project Risk Management Steering Committee on an ongoing basis to ensure sufficient rigour is applied to the process.
The mandatory software for producing Risk Schedule Analysis documentation is Pertmaster Version 8.7, or newer. COMPANY reserve the right to request Pertmaster compressed files to independently verify CONTRACTORs data.
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2.4 2.4.1
TOOLS ADMINISTRATION Progress Measurement
CONTRACTOR shall submit a progress measurement and methodology procedure, demonstrating the technique employed to calculate the overall percentage complete and for each type of Activity deliverable in accordance with this Coordination Procedure. CONTRACTOR shall provide details of the proposed weighting system used for reporting progress, for COMPANY APPROVAL. The weighting system shall be used to combine the weightings by phase, by discipline, Equipment, bulks, etc. The system shall enable the roll-up of earned progress from the lowest level of planning (Level 3/4 document/drawing detail, fabricated items, installed/constructed items) and shall, thereafter, be collected and aggregated into higher levels. This shall be an auditable system of progress measurement where incremental physical benchmarks shall earn an agreed percentage figure for achieving each stage. Regular audits shall be carried out to verify CONTRACTORs claimed progress. Project Management, administration or indirect CTRs / WORK packages will not form part of the physical progress measurement system. However, where directed by COMPANY all expended man-hours shall be reported against all CTRs / WORK packages where applicable. VARIATIONS, when APPROVED by COMPANY, shall be incorporated in the plans and schedules and be included in CONTRACTORs routine reports. 2.4.1.1 Engineering Activities Planned and actual progress for engineering shall be aggregated from the individual documents by use of predefined Contract Milestone chains when applicable. Progress measurement shall be an auditable system where incremental physical benchmarks shall earn agreed percentage figures for completion of each stage throughout the production of a design document. 2.4.1.2 Procurement Activities The CONTRACTOR shall report procurement progress including purchasing activities, Equipment manufacture/delivery and Equipment documentation. CONTRACTORS proposed weighting system shall be APPROVED by COMPANY and shall combine the weighting by phase, discipline, Equipment and bulks, etc. 2.4.1.3 Earned Value Analysis CONTRACTOR shall measure and report progress based upon an analysis of Earned Value, where for each activity: Earned Value (EV) = % Complete x Budget at Completion Earned Value Technique compares planned performance to actual performance. Earned Value shall be calculated for each main discipline and area of work, and will provide a qualitative assessment of the progress in common work units. Earned Value Analysis reports shall be produced as required and in the format specified by the COMPANY. 2.4.1.4 Key Performance Indicators (KPIs) and Productivity
Within the Overall Evaluation, COMPANY will consider Productivity Key Performance Indicators in the CONTRACTOR performance, where applicable and in the format specified by the COMPANY. Examples of KPIs which may be requested from CONTRACTOR and applied are as follows; CPI = EV / AC SPI = EV / Planned Value
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ETC = (BAC EV ) / CPI

c
c c
EAC = AC + ((BAC Ev ) / CPI

c
Where according to PMBoK Guide (PMI standards): AC = actual costs to date BAC = budget at completion EV = earned value EV = cumulative Earned Value CPI = cumulative Cost Performance Index
c c
2.4.2
Progress Reports
Unless advised otherwise by COMPANY, CONTRACTOR shall produce the following regular progress reports as stipulated in the CONTRACT.
2.4.2.1
Daily, Weekly Reports The CONTRACTOR shall prepare and produce at the end of each project period (daily, weekly) separate reports on the status of the WORK for all the phases of the WORK at a frequency and in a format agreed with COMPANY. The reports shall be issued to COMPANY according to the date specified in Annex G. The cut-off shall be after completion of normal working according to the date specified in Annex G.
2.4.2.2
Monthly Reports The CONTRACTOR shall prepare and produce at the end of each month a monthly report on the status of the WORK for all phases of the WORK. The reports shall contain details of all progress and activities up to and including the cut-off date of the month. The reports shall be issued to COMPANY according to the date specified in Annex G. The cut-off date of the monthly reports shall be according to the date specified in Annex G. Prior to the preparation of the report a full analysis of the CONTRACT EXECUTION PLAN (CEP) is to be performed. The analysis will be based on remaining duration for each activity and a complete critical path analysis generated.
All progress reports issued to COMPANY shall be in accordance with the format and content indicated in Annex F. At no time shall CONTRACTOR use an unapproved version for reporting or special analysis unless so directed by COMPANY. Such reports shall also incorporate COMPANY specified coding as required.
2.4.2.3
Monthly Activity Progress Report The WORK TIME SCHEDULE shall be progressed and updated as agreed at the Kick-off meeting. CONTRACTOR shall provide electronic copies of the WORK TIME SCHEDULE progress updates to COMPANY. The progress cut-off date for the monthly updates shall be according to the date specified in Annex G. However, if this is inconsistent with CONTRACTORs monthly cut -off date, then CONTRACTOR shall advise COMPANY and a mutually acceptable day may be agreed. The monthly Contract activity progress report shall be produced according to the date specified in Annex G.
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All progress reporting to COMPANY shall be against the current APPROVED version of the WORK TIME SCHEDULE. At no time shall CONTRACTOR use an unapproved version of the WORK TIME SCHEDULE for reporting or special analysis unless so directed by COMPANY REPRESENTATIVE. Where CONTRACTOR has peripheral systems e.g. document registers, time sheet systems etc. for claiming physical progress at document or sub-activity level; these shall be summed up to CTR/Activity level. Only the activities that were planned and actually progressed during the reporting period shall be included in each report. The reports shall contain as a minimum (but not limited to) the following data for each WORK TIME SCHEDULE activity: 1. Actual Start 2. Actual Finish 3. Physical percentage progress planned versus actual achieved and cumulative to date 4. Remaining duration to complete the activity
2.4.2.4
Project Closing Report

Following completion of the project, pertinent data will be collected and assembled into the project closing report, which will serve as the record of the project.
2.4.2.5
Close Out Schedule CONTRACTOR shall produce a fully detailed close-out schedule for the Central Office and each SITE location. The Close-Out Schedule for each SITE shall be submitted for COMPANY'S APPROVAL according to the date specified in Annex G CONTRACTOR shall ensure that it retains sufficient CONTRACTOR PERSONNEL to complete the WORK activities described in the Close-Out Schedule within the times allocated.
2.4.2.6
Man Hours Update 1. Expended and Earned man-hours to date 2. Current budget hours. 3. Forecast man-hours to go based on examples of KPIs provided in Item 2.4.1.5
2.4.2.7
CONTRACT Calendar CONTRACTOR shall develop a CONTRACT calendar catering for multiple disciplines for use throughout the duration of the CONTRACT. This calendar shall be divided onto sequentially numbered CONTRACT weeks and submitted for COMPANY APPROVAL according to the date specified in Annex G. Monthly reporting cut-off and Issue dates shall be clearly identified on the Calendar as provided by the COMPANY.
2.4.2.8
Project Trends and Scope Changes Changes in the number of planned deliverables, rework of design drawings, increases in the Scope of Work, differences in man-hour or equipment pricing, or changes in project execution methods can all affect the WORK TIME SCHEDULE and established budgets. Any such change is to be identified and documented in accordance with the Trends and Scope Change Procedure. In order to control the progress of the design and the allocation of CONTRACTOR project resources, any changes in the direction or execution of the design, or Scope of Work is to be done only at the direction the COMPANY REPRESENTATIVE. Any changes to the authorized Scope of Work for CONTRACTOR shall be documented by a trend notice and submitted to COMPANY for APPROVAL. Changes to the approved man-hour / cost
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budget and schedule will be made only after approval of the trend. Project personnel shall not spend hours working on the changed scope until the trend has been APPROVED by the
COMPANY, or requested to do so by the COMPANY REPRESENTATIVE.
2.4.2.9
Action Item List An Action Item List shall be developed and maintained as action items are identified. The Action Item List shall log any action items identified in minutes of meetings, project memos, conversation records, or any other document or specific information that is needed. This list is appropriate to list specific actions or requested information from another project team member, client, vendor or third party. The Action Item List shall be maintained by a designated individual and issued on a weekly basis to meeting attendees, persons with action items, and key project personnel. The Action List shall contain the following information at a minimum: action item unique identification number name of person requesting the action date the request was made date and time when the requester needs the information description of the action being requested name of the person responsible for the resolution when the responsible person will respond (if different from requested time) actual date of resolution summary of resolution
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3.
COST CONTROL REPORTING 3.1 PREAMBLE
Cost Reporting provides the COMPANY with important information regarding the status, progress and outcome of the CONTRACT in monetary terms which is vital for the efficient management of the CONTRACT. It also forms the basis of data utilised within the COMPANY accounts and hence is subject to stringent requirements from both an accounting and auditing perspective. It is not intended that the information provided by CONTRACTOR, in connection with these cost reporting requirements, will be used for a) the APPROVAL of payments, and b) the identification of CONTRACTORs margins or profits. It is the intention that during clarification meetings or at the CONTRACT kick-off meeting these requirements will be discussed to ensure a mutual understanding and alignment of the definitions and requirements. COMPANY shall designate the top level Cost Breakdown Structure tasks that CONTRACTORs cost structure shall be tied to. CONTRACTORs cost structure shall roll up to the top level CBS tasks designated by COMPANY. The minimum information that the CONTRACTOR is required to provide in terms of reports, charts and procedures is described in detail below. 3.2 COST REPORT
The primary document that CONTRACTOR is to produce to meet these requirements is the Cost Report. An example Cost Report template is provided in Annex H. All reports should include the CONTRACT number/reference and where appropriate the COMPANY supplied W BS code or Business Unit Code. All cost reports shall be structured in accordance with COMPANY's CBS (Cost Break-down Structure). Within the accounting systems, cost data is reported using Cost Codes that may or may not directly related to the WBS, they are commonly known as the Chart of Accounts corresponding to the CBS. It is very important to relate this CBS to the Project WBS. CBS are the categories listed withinCONTRACT Compensation Schedule.
The Cost Report shall be in the same currency as the CONTRACT Currency. The format of the Cost Report must include the following column headings: Original CONTRACT PRICE COMPANY APPROVED VARIATIONS Current CONTRACT price Pending Items Forecast CONTRACT PRICE Previous Periods Forecast CONTRACT PRICE and Movement in Period Value of Work Done (VoWD) in Period and Cumulative to end of Period Invoiced cumulative to end of period Further information regarding these headings is provided under separate sections below. Through mutual agreement additional columns and headings may be included in the Cost Report if it is felt they would enhance the report by providing useful performance indicators or measures. All cost report formats, charts, reporting structures must be submitted for COMPANY APPROVAL according to the date specified in Annex G. The Cost Report will cover up to and including the date specified in Annex G. Rev 01 17.06.2011 Page 16 of 65
The Cost Report must be submitted as part of the Monthly Report to the COMPANY according to
the date specified in Annex G.

All charts and tables included within the cost reporting documents are to be made available in original live (including links and formulae) Excel format or equivalent to coincide with the issue of the Monthly Report. In addition, CONTRACTOR shall provide a copy of the Cost Report complete with all tables, charts, etc. in Adobe PDF format within 10 days of the reporting cut off date . 3.2.1 Cost Reporting Structure
The subdivision of the CONTRACT PRICE to be used for cost reporting will be agreed at the Kickoff meeting. The breakdown will largely be dictated by the Scope of Work, type and Compensation Schedule of the CONTRACT. The cost reporting structure must also address the inclusion of potential future changes to the CONTRACT. 3.2.2 Monthly Cost Report Meeting
Meetings to review the Cost Report shall be held prior to its issue. The objective of the meetings is to ensure a common understanding of the information contained with-in the Cost Report. 3.3 CURRENT CONTRACT PRICE
The value of the work that COMPANY has instructed to proceed with via a signed CONTRACT, call off, APPROVED VARIATION or other contractual document. Work for which the price is yet to be agreed is not to be included. Current CONTRACT PRICE = Original CONTRACT PRICE + APPROVED VARIATIONS 3.4 COST FORECAST
CONTRACTOR is responsible for maintaining a current forecast of the CONTRACT PRICE. The cost forecast provides the COMPANY with information regarding the anticipated final value of the CONTRACT. 3.4.1 Cost Forecasting Procedure
CONTACTOR shall produce a Cost Forecasting Procedure detailing the methods to be used in calculating the Cost Forecast and its phasing in time. The forecast is to be broken down and phased in line with the Cost Reporting Structure. This Procedure will address the treatment of both approved and unapproved changes, firm and potential changes. The CONTRACTOR shall incorporate Value of Work Done techniques in its Cost Forecasting Procedure The Cost Forecasting Procedure must be submitted for COMPANY APPROVAL according to the
date specified in Annex G)

3.4.2 Cost Forecast Supporting Documentation
CONTRACTOR will be required to support his Cost Forecast with additional documentation. This may include depending on CONTRACT type, but is not limited to: VARIATION ORDER Registers CONTRACT Amendment Register Call Off Register SITE/COMPANY Instruction Registers Productivity Calculations Purchase Order Registers Day Works Register
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Reimbursable items Register 3.4.3 Cost Forecast Phasing
CONTRACTOR is to provide tables and charts (See Annex I) showing Planned VoWD, actual VoWD to date and the future anticipated VoWD by month over the duration of the work. The Phasing is to be provided as per the Cost Reporting Structure and is to be aligned with the current Schedule.
CONTRACTOR shall prepare the first Cost Forecast Phasing based upon the Original CONTRACT PRICE and the Original WORK TIME SCHEDULE. Once APPROVED by the COMPANY this Phasing shall be referred to as the Planned VoWD and shall remain fixed unless authorised otherwise by COMPANY. As the work progresses the actual VoWD may vary from the Planned and the Cost Forecast may change. This will require the Phasing to be revised in line with the actual VoWD to date, the current schedule, and the Cost Forecast to go. 3.4.4 Forecast Calculation
Forecasts will be made based upon Earned Value techniques, however any changes in the Cost Forecast must be explained by a narrative state detailing the reasons for the change(s) and is to accompany the Cost Report. 3.5 VALUE OF WORK DONE
The Value of Work Done (VoWD) can be defined as the amount of work achieved in monetary terms at a point in time, normally month end. This is not necessarily equivalent to the invoiced amount since payments may either be made in advance of the work being done (pre-payment or advance payment) or after work has been substantially complete (milestone payments or payment on delivery/completion). From an Accounting perspective the principles of accrual based accounting apply to the calculation of VoWD. Nor is VoWD necessarily equivalent to the physical progress reported for planning purposes. This can be due to the use of milestones or weightings that do not reflect the monetary value of the work or the activities being progressed not being aligned with the Cost Reporting Structure. CONTRACTOR shall submit Preliminary data for VoWD to COMPANY according to the date specified in Annex G. This advance data is required to comply with the COMPANYs strict accounting month end close-out procedure. For VoWD it may be necessary to make estimates for the last days of the month in order to meet this deadline. This is acceptable as long as the estimates can be demonstrated to be reasonable. 3.5.1 VOWD Procedure
CONTRACTOR shall produce a Value of Work Done Procedure detailing the methods to be used in calculating the VoWD for each element of the cost reporting structure. The methods used will be dependent upon the CONTRACT type and the nature of the elements of the reporting structure. It should address issues such as retention, Value Added Tax, pre-payments, etc. The procedure should also cover the calculation of VoWD for potential future changes to the CONTRACT. The Value of Work Done Procedure must be submitted for COMPANY APPROVAL according to the date specified in Annex G. 3.5.2 VOWD Supporting Documentation
The calculation of VoWD may require additional supporting documentation (eg Manhour Reports, Engineering Deliverables Register, Purchase Order Registers, Progress Reports, Rev 01 17.06.2011 Page 18 of 65
SUBCONTRACTOR or Supplier Reports, etc). This documentation shall be available to COMPANY if so required. 3.5.3 Variance from Planned VOWD
The period and cumulative reported VoWD shall be reconciled with the Planned VoWD as described in Cost Forecast Phasing paragraph. Significant discrepancies between the planned and actual VoWD shall be explained via a narrative statement that is to accompany the Cost Report. 3.5.4 Accrual Justification Forms
As part of the COMPANYs accounting procedures the CONTRACTOR is required to complete an Accrual Justification Form at year end. The Accrual is calculated as the VoWD less Invoices paid. The Accrual can be either zero (in the case where VoWD is equal to Invoices paid), positive (where payment of Invoices is less than VoWD) or negative (where payments have been made in advance of the work being done). This requirement forms part of the COMPANYs Audit procedures and is to ensure adequate support for the entering of accruals into the COMPANYs account. An example Year End Accruals Justification Form is included in Annex J. 3.6 INVOICED
The CONTRACTOR is to include the value of the Invoices that have been submitted to the COMPANY irrespective of whether Invoices have been paid or not.
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4.
ADMINISTRATION AND PAYMENT 4.1 GENERAL
This Section describes the outline procedures that shall be used jointly by COMPANY and CONTRACTOR in the administration and control of the WORK. Responsibility for all contractual and commercial control appertaining to the CONTRACTOR's method of working and internal organization rests solely with the CONTRACTOR. Contractual and commercial interfaces between COMPANY and CONTRACTOR shall be handled in accordance with the following requirements.
4.2
CONTRACT MANAGEMENT
The CONTRACTOR REPRESENTATIVE shall appoint a Contract Administrator who shall have overall responsibility for contractual and commercial administration of the CONTRACT. Working through the reporting structure the Contract Administrator shall provide contractual and commercial contact with COMPANYs necessary management, co-ordination and direction to the various Contract Administration staff within the various phases of the WORK. Contract Administrator shall ensure that, the contractual and commercial aspects of the CONTRACT are administered to the highest professional and ethical standards and that where the value of the WORK is to be determined by whatever method is deemed appropriate then all necessary measurement, invoices, time sheets and other substantiating and supporting documentation shall be properly prepared and submitted to COMPANY for APPROVAL. CONTRACTOR shall employ sufficient experienced CONTRACT Administration staff necessary to ensure that full professional, contractual and commercial control is exercised throughout the execution of the WORK. Responsibility for all contractual and commercial control appertaining to CONTRACTOR S method of working and internal organization rests solely with the CONTRACTOR.
4.3
KICK-OFF MEETING
Upon CONTRACT award a kick-off meeting shall be held between the CONTRACTOR and COMPANY. This is arranged by the COMPANY REPRESENTATIVE and should be held as close to CONTRACT Execution as possible. The purpose of the Kick-off Meeting is to ensure that: COMPANY and CONTRACTOR have a common and unambiguous understanding of the CONTRACT objectives and deliverables, the full Scope of Work and the way in which the parties will operate; there is an agreed timetable for regular process meetings and associated deliverables; COMPANY and CONTRACTOR understand the initial timetable for CONTRACT execution; all required coordination procedures are put in place as stated in the CONTRACT;
Prior to the Kick-off Meeting it is essential that all attendees are prepared for the meeting. The Agenda for the Kick-Off Meeting may include but not be limited to the following items: Scope of the CONTRACT; CONTRACT Terms and Conditions, particularly any special CONTRACT provisions. This can avoid any misunderstandings later on, and allows the CONTRACTOR to gain a better understanding of the terms prior to performance;
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Technical and reporting requirements of the CONTRACT. It is vital that the CONTRACTOR and relevant COMPANY personnel are of one mind regarding the technical requirements; Applicable CONTRACT administration procedures, including CONTRACT monitoring and progress measurement; The rights and obligations of both parties and the Contractor Performance Evaluation Process; Potential CONTRACT problem areas and their possible solutions; Invoicing requirements and payment process. This is important if payment will be made according to milestones achieved by the CONTRACTOR; COMPANY personnel should explain the limits of their authority, and obtain the same information regarding CONTRACTOR personnel; Which ERP System will be used; SUBCONTRACTOR Management; Local content Requirements; The importance of this Coordination Procedures including the reporting requirements and reporting calendar.
COMMUNICATIONS
4.4
Except where the CONTRACT specifically states to the contrary all correspondence and communications under this CONTRACT shall be addressed and directed between CONTRACTOR REPRESENTATIVE and the COMPANY REPRESENTATIVE and bear a clear reference to: COMPANY CONTRACT Title CONTRACT No. CONTRACT Revision No. Subject: All correspondence shall be date stamped on receipt. The date stamp shall make provision for a distribution list. Oral communication of instructions or information in connection with this CONTRACT shall be confirmed in writing using formal correspondence and until confirmed shall not be binding. All technical documentation referred to or attached shall have the respective document number and revision status clearly recorded. CONTRACTOR shall maintain a numerical register of all incoming and outgoing correspondence. This register shall also contain the document number and description. 4.4.1 Transmittal Note
All reports, drawings, and other documents transmitted between CONTRACTOR and COMPANY shall be sent under cover of a transmittal note. The recipient shall sign the transmittal note and return one copy to the sender. 4.4.2 Correspondence Coding and Register Submission
Correspondence shall be coded as per instructions provided in Annex K.
CONTRACTOR shall provide to COMPANY a copy of the correspondence register according to the date specified in Annex G.
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4.5
MEETINGS
Meetings shall be held for the purpose of keeping all parties fully informed of all aspects of the WORK. Such meetings may be between COMPANY and CONTRACTOR, CONTRACTOR and SUBCONTRACTORs, CONTRACTOR and other contractors. The objectives of these meetings may include discussing technical or financial subjects, reviewing progress, and the status and scheduling of the WORK. When deemed necessary by COMPANY, CONTRACTOR's and/or SUBCONTRACTORs shall be represented at such meetings.
The venue for meetings shall be agreed by COMPANY and CONTRACTOR in advance. Attendees of COMPANY, CONTRACTOR and other personnel shall be agreed in advance. Documents requiring preparatory study prior to the meeting shall be issued by both COMPANY and CONTRACTOR in a timely manner. The CONTRACTOR shall submit to COMPANY at the end of each week a list of all meetings the CONTRACTOR intends to hold with THIRD PARTIES during the following week. COMPANY shall inform CONTRACTOR which meeting COMPANY requires to attend in whole or in part.
4.5.1 Meetings Minutes
Where meetings are held between COMPANY and CONTRACTOR, COMPANY shall chair such meetings. Unless otherwise directed by COMPANY, minutes of each meeting shall be prepared by CONTRACTOR in accordance with COMPANY's standard minute format (refer Annex L) and issued according to the date specified in Annex G. The minutes shall be signed by CONTRACTOR and COMPANY acknowledging the minutes as a true record of that meeting. CONTRACTOR shall maintain a numerical register of minutes of meetings. All minutes of meetings will include the following: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) CONTRACT title CONTRACT No. Subject Location of meeting Date of meeting Time of meeting List of attendees Name of minute secretary A number of paragraph of each item The date action required and by whom A list of outstanding actions and like activities upon them since the previous meeting Date of next meeting (if not recorded elsewhere).
Minutes of all meetings held by CONTRACTOR with THIRD PARTIES shall be available to COMPANY on request although COMPANY shall not be entitled to receive commercial information regarding lump sum agreements between CONTRACTOR and SUBCONTRACTOR(s).
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4.5.2
Meetings Agenda
Agendas for meetings shall be submitted to COMPANY by CONTRACTOR according to the date specified in Annex G or as may be agreed. COMPANY shall advise CONTRACTOR of changes to the agenda at least one full working day before the meeting. Both COMPANY and CONTRACTOR shall ensure, in accordance with their respective responsibilities, that reports, reproducible documentation, and forward planning and information relating to agenda items are issued in sufficient time to allow adequate preparatory study and evaluation as agreed between COMPANY and CONTRACTOR. In addition to technical meetings, regular discipline meetings, and miscellaneous administrative meetings, which may be required for the smooth running of the project, CONTRACTOR shall be responsible for conducting meetings as follows:
4.5.3
Daily, Weekly/bi-weekly Progress Meeting
A weekly or bi-weekly progress meeting will be conducted in the presence of CONTRACTORs project management and COMPANYS personnel at which the following topics shall be discussed: safety, progress of the WORK, manpower levels, construction/manufacture problems, Quality Control, design engineering, Materials, planning, cost control, and any other matters affecting the performance of the WORK. Items raised in the weekly or bi-weekly progress meeting should be those items which cannot be resolved at the regular discipline meetings. 4.5.4 Monthly Progress Meeting
A monthly progress meeting will be held in the presence of CONTRACTORs Project Management and COMPANY personnel to review the Monthly Report according to the date specified in Annex
G or as may be mutually agreed. Minutes shall be APPROVED by COMPANY REPRESENTATIVE.

4.5.5 Procurement Plan
CONTRACTOR shall submit to COMPANY the Procurement Plan according to the date specified in Annex G, including details of SUBCONTRACTORs that are to be utilised. The Procurement Plan shall be regularly updated for the life of the CONTRACT and submitted to COMPANY as part of CONTRACTORs reporting activities.
4.5.6 Procedures for SUBCONTRACTORs Control and Administration
CONTRACTOR shall submit detailed specific control and administration procedures applicable to its SUBCONTRACTORs. To assist CONTRACTOR, the Procedures contained in this Document shall be used as reference only, to enable CONTRACTOR to develop CONTRACTORs procedures. 4.5.7 Subcontracts Documentation
The CONTRACTOR shall invite tenders from SUBCONTRACTORs proposed in its Procurement Plan. Details of proposed SUBCONTRACTORs shall be submitted for APPROVAL by COMPANY and shall include full details including evidence of SUBCONTRACTORs assessment (e.g final report, evaluation matrix), financial status of the proposed SUBCONTRACTOR, if not already APPROVED by COMPANY and included in the Qualified Vendors List in the CONTRACT.
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4.6 4.6.1
CONTRACTOR PERSONNEL ADMINISTRATION Project Organisation Chart
CONTRACTOR shall develop a project organisation charts for itself and each SUBCONTRACTOR, indicating clearly the functional relationships of all departments. COMPANY will make available to CONTRACTOR its organisation chart at the kick-off meeting. 4.6.2 Key Personnel CVs
All KEY PERSONNEL shall be identified and their CVs provided. 4.6.3 Register of CONTRACTOR PERSONNEL
CONTRACTOR shall maintain an updated manpower register of CONTRACTOR PERSONNEL assigned to work on this CONTRACT. A copy of this register shall be updated according to the period specified in Annex G and issued to COMPANY. 4.6.4 Personnel Assignment Authorisation Form (PAAF)
CONTRACTOR shall instigate and use a personnel assignment procedure to monitor and control mobilisation and demobilisation of any CONTRACTOR PERSONNEL and who are reimbursable under the provisions of the CONTRACT. CONTRACTOR shall raise and submit a Personnel Assignment Authorisation Form (PAAF) in the format specified in Annex M and shall inform COMPANY of the following events: CONTRACTOR's PERSONNEL mobilisation (All personnel) CONTRACTOR's PERSONNEL demobilisation (All personnel). Extension in assignment dates of individual (All personnel). Reassignment within this CONTRACT (All personnel) Change in status e.g. category change. The PAAF shall be APPROVED by CONTRACTOR REPRESENTATIVE and submitted to COMPANY for APPROVAL according to the date specified in Annex G. 4.6.5 Timesheets
All CONTRACTOR PERSONNEL assigned to the WORK carried out on a reimbursable basis shall complete weekly timesheets in a format agreed by COMPANY. Worked hours shall be recorded by Work Breakdown Structure and referenced to any other breakdown requested by COMPANY (e.g. Asset, Department etc). COMPANY will not normally approve individual timesheets relating to the WORK. The CONTRACTOR REPRESENTATIVE shall utilise timesheet data to prepare a manhour report by discipline / area according to the date specified in Annex G, which shall be submitted to COMPANY for APPROVAL in hardcopy and/or electronic format, in a format to be agreed by COMPANY, according to the date specified in Annex G. However, COMPANY reserves the option to require CONTRACTOR to submit individual timesheets for COMPANY APPROVAL. In such event, CONTRACTOR's system must ensure that each employee submits only one timesheet per week to COMPANY. CONTRACTOR shall maintain a full set of timesheets for CONTRACTOR PERSONNEL at the same location as COMPANY REPRESENTATIVE. COMPANY shall have unrestricted access to these documents. CONTRACTOR shall submit to COMPANY a weekly manhour report including all timesheet information for CONTRACTOR PERSONNEL. The exact format will be agreed by COMPANY but will contain as a minimum the following information: Rev 01 17.06.2011 Page 24 of 65
Personnel No./Name Week No. PAAF No. Project Code Direct/Indirect hours Contract Rate Code CTR Package (if applicable) Milestone No. Non-chargeable worked hours Vacation/Non-attendance hours
CONTRACTOR shall ensure the following in the weekly manhour report: Hours are a correct record of time spent worked (excluding lunch breaks or any other breaks not payable by COMPANY). Only hours worked by persons listed in the register of APPROVED CONTRACTOR PERSONNEL. Only hours worked by persons for which there are PAAF's APPROVED by COMPANY. COMPANY shall review and approve the weekly manhour summary report which shall then be used as support and form a basis for invoicing. In the event that the COMPANY does not agree with the report, the CONTRACTOR shall make the required amendments and resubmit to COMPANY for APPROVAL. CONTRACTOR will be responsible for adopting and managing a time sheet system at each location. 4.6.6 Overtime
For WORK carried out on a reimbursable basis CONTRACTOR's PERSONNEL shall not work overtime without COMPANY's prior written APPROVAL. If CONTRACTOR considers that overtime is necessary to complete the Scope of Work, CONTRACTOR shall submit an overtime request in advance according to the date specified in Annex G. Each overtime request shall contain information regarding: Names of PERSONNEL Personnel Identification numbers (related to discipline) Job Titles Disciplines Categories Reason for overtime Estimated number of overtime hours per Personnel and according to the date specified in
Annex G.
Week commencing date The reason for requiring excess overtime must give sufficient information to enable assessment of justification to be made. In general no APPROVAL of overtime will be given for reduction of CONTRACTOR PERSONNEL lunch breaks. CONTRACTOR shall keep a Overtime register. Rev 01 17.06.2011 Page 25 of 65
4.7
SITE / COMPANY VARIATIONS
INSTRUCTIONS,
VARIATION
ORDER
REQUESTS
AND
It is a mandatory requirement that CONTRACTOR does not commence any item of WORK without a formal instruction to proceed, APPROVED by COMPANY. The issue and control of change within the CONTRACT shall be regulated as detailed in Contract administration procedure - Operating procedure concerning VARIATIONS to the contract. The process related to Variation Order Request, Variation Orders, and Site/Company Instructions, will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP.
4.8
CONTRACT CALL-OFFS/WORK ORDERS
Call-Off/Work Order is a formal COMPANY Instruction by which COMPANY authorises CONTRACTOR to supply services or goods under an established and valid CONTRACT. CallOff/Work Order is important as an instrument for controlling CONTRACT execution, CONTRACT cash flow and for managing CONTRACTOR risk. Call-Offs/Work Order constitutes a legally binding commitment thus should, as a minimum, fulfil the following formal requirements:
4.9
It should be specific in terms of description of work/goods to be delivered, any deliverables, total commitment value and delivery time-frame. Should be raised and issued in accordance with the WORK TIME SCHEDULE and Terms and & Conditions (T&C) of the CONTRACT. Should be APPROVED by COMPANY and acknowledged by CONTRACTOR in accordance with their respective RACIE and Manuals of Authorities (MoA). It is applicable to all CONTRACTS irrespective of type or size,.
PAYMENT APPLICATIONS AND PAYMENT
The Project Milestones, fees, lump sums rates and prices, as applicable, listed in the Compensation Schedule are fixed and are subject only to adjustment during the performance of this CONTRACT as set out in the Compensation Schedule or elsewhere in this CONTRACT. 4.9.1 Application for Milestone Payment
When CONTRACTOR considers they have satisfied the contractual requirements for completion of a CONTRACT Milestone, CONTRACTOR shall make a written application to COMPANY for a Milestone Payment Certificate. COMPANY will review and upon APPROVAL will issue a Milestone Payment Certificate (refer to Annex N) provided the criteria for completing the CONTRACT Milestone have been met. Where WORK related to VARIATIONS has been completed, CONTRACTOR may apply for both a CONTRACT Milestone and VARIATION when requesting a Milestone Payment Certificate. 4.9.2 Application for Payment
For contracts which are not governed by Milestone criteria but are generally of a reimbursable and measurable nature, CONTRACTOR shall make monthly applications for payment in the form agreed during the kick-off meeting. COMPANY shall record the date received and shall proceed to approve the application. Upon APPROVAL, COMPANY shall issue a Payment Certificate (refer to Annex O) to CONTRACTOR for the undisputed amount(s). At the same time, COMPANY shall notify CONTRACTOR in writing of any disputed amount(s) specifying the reasons for the non-Approval. In the event that a disputed amount cannot be resolved within the time available then CONTRACTOR may re-apply in the next months pro-forma application.
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4.9.3
Certification and Payment by Company
COMPANY shall confirm its agreement to CONTRACTOR'S application for payment by the issue of a Milestone Payment Certificate (or by Payment Certificate for reimbursable contracts). Following certification by COMPANY, CONTRACTOR shall submit a formal invoice for the certified value to COMPANY for payment. The invoice must contain the following attachments, where applicable: The original signed copy of the Milestone Payment Certificate / Payment Certificate The APPROVED VARIATION ORDER Form APPROVED timesheets, progress measurement and other supporting documentation in respect of reimbursable WORK 4.9.4 Format
Invoiced items shall be further separated and described according to: each of the various categories of charges set forth in the Price Schedule, applicable values of WORK ORDERs (if applicable), applicable value(s) of Milestones CONTRACTOR shall state the retention amount, as a separate item on the Invoice CONTRACTORs invoice shall record the amount previously invoiced. applicable value(s) of VARIATIONS applicable value of dayworks. Percentage surcharge on cost reimbursable items, if applicable, shall be separately stated on each invoice. 4.9.5 Invoiced Expenses
Amounts invoiced for expenses (e.g. travel, accommodation and subsistence) shall: relate to trips/visits which have been APPROVED in advance by the COMPANY be fully supported with receipts, except where a per diem allowance is applicable be submitted according to the date specified in Annex G Any invoiced expenses which do not meet the requirements above will be rejected by COMPANY. COMPANY will not reimburse CONTRACTOR for alcoholic beverages or entertainment, unless APPROVED in advance by the COMPANY REPRESENTATIVE. Each of CONTRACTOR PERSONNEL shall submit his own expenses and settle his own bills. Charging of other CONTRACTOR PERSONNEL expenses, e.g. paying of restaurant bill for group of CONTRACTORs PERSONNEL will be regarded as entertainment and, therefore, not reimbursable under this CONTRACT. 4.9.6 Reimbursable Materials
CONTRACTOR shall not purchase any reimbursable Material unless COMPANY REPRESENTATIVE has APPROVED in writing copies of the relevant applicable purchase order. All such purchase orders will give information as to the Vendors name, date of order, purchase order number, quantity of items to be purchased, unit price, cash discount, clear description of Materials involved, total value, delivery point and routing. Copies of all purchase orders for reimbursable materials shall be submitted to COMPANY REPRESENTATIVE at the time of issue. Upon receipt by CONTRACTOR of any Materials purchased under any such purchase order, CONTRACTOR's Materials Clerk will use a copy of the purchase order and will prepare a receiving Rev 01 17.06.2011 Page 27 of 65
report. The receiving report will be attached to the invoice when transmitted to COMPANY in a claim for reimbursement. 4.9.7 Rebates
CONTRACTOR will declare to COMPANY all price rebates receivable from SUBCONTRACTORS so that the invoiced cost can be adjusted accordingly. 4.9.8 Final Billing
As soon as practical following final acceptance of each discrete package of WORK, CONTRACTOR shall render a final billing which summarises all charges and credits applicable to CONTRACTOR or COMPANY which shows the balance due under this CONTRACT.
4.10
COMPLETION AND CONTRACT CLOSE OUT
The close-out of each SITE location shall occur as soon as possible after the WORK has been completed. Early close-out is essential to: minimise administrative expenditure at the CONTRACTOR'S facilities. complete final CONTRACT accountability while KEY PERSONNEL are still assigned to the PROJECT.
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5.
INTERFACE MANAGEMENT 5.1 INTERFACE MANAGEMENT SYSTEMS
CONTRACTOR shall establish and implement an Interface Management System to review, plan and co-ordinate the WORK associated with all interfaces between C OMPANY, CONTRACTOR and other CONTRACTORS. The Interface Management System shall include the following functional areas of responsibilities: Identification and recording of all interfaces Implementation and resolution of all interfaces Planning and registering of interfaces RACIE chart indicating interface and responsibilities COMPANY will prepare, issue and update an overall PROJECT Interface Management Plan. CONTRACTOR shall be responsible for managing all the interfaces related to his Scope of Work. 5.2 SCOPE
The implementation of the Interface Management Plan will assure that: Project Management (including Project & Contract Administrators, Planning and Reporting and Risk Management. Engineering Procurement Site based Management Operational Interface All physical interfaces at boundary limits are managed and controlled. An Interface Register will be developed and will cover the various issues which impact CONTRACTOR whether they are within or beyond their Scope of Work. The resolution of all interface issues is planned and implemented in order to maintain cost and schedule. It is noted and accepted that the Interface Register will be maintained and monitored by the respective Departments at a senior level from COMPANY / CONTRACTOR alike. However the Register will remain under the custodianship of a nominated COMPANY employee. To implement the Interface Management Plan CONTRACTOR shall: Ensure that each WORK package has clearly defined scope(s) and responsibilities, and that no area of scope(s) are unassigned. Identify the specific interface issues including: management, notifications, schedule, engineering definition, third party approvals etc Develop a CONTRACTOR Interface Register (using proven software) of interfaces with the various parties and assign responsibilities for management of the issues. Identify and report progress, concerns, actions to resolve problems and any impact to other areas of the development. Identify and implement any other activity that could reasonably be expected to avoid or overcome interface issues in a similar project in this environment. Ensure each interface entry will form part of an overall plan which will be scheduled with completion dates. Regularly monitor and audit the Interface Register. Rev 01 17.06.2011 Page 29 of 65
Attending as requested by COMPANY any interface meetings, also arrange through COMPANY, where appropriate, interface meetings with COMPANYs other contractors. Prepare and maintain for the duration of the CONTRACT an Interface Schedule (Terminal Point (TP) register) of all systems crossing the boundary limits. This schedule shall as a minimum contain information such as size, orientation, TP number, pressure, temperature, code, materials etc. Present summary of interface issues within Monthly Report. In support the COMPANY will: Prepare, issue and update an Interface Management Plan. Verify content, accuracy and progress of CONTRACTORs Interface Register using audits/reviews on a regular on-going basis.
5.3
CORE INTERFACE ISSUES
There may on occasion be developments in COMPANY planning or policy which will affect all CONTRACTORS across the PROJECT. Examples could include but are not limited to: Level 1 schedule and level 2 Milestones HSE factors Approval conditions (Iraqi authorities etc.) Technical standards These issues will be co-ordinated by COMPANY and advised to all of COMPANYs contractors including CONTRACTOR according to a process that will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP.
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6.
PROCUREMENT, MATERIAL MANAGEMENT AND EQUIPMENT CONTROL 6.1 CONTRACTORS PROCEDURES
The Scope of Work describes in detail the Procurement process for equipment and materials. The CONTRACTOR shall develop comprehensive procedures including expediting, inspection and acceptance for COMPANY APPROVAL detailing the Procurement and material control function of each of the categories of equipment and plant. CONTRACTOR shall issue the procedures for review according to the date specified in Annex G.
Material management activities shall include the following functional areas of responsibility: Material Requirements Planning Purchasing / Contracts Expediting and delivery to SITE Inspection (Quality Control) Logistics (Traffic Coordination) Customs Clearance Site Material Control CONTRACTOR shall deliver these functional service areas to the WORK by providing competent, proven and capable CONTRACTOR PERSONNEL in execution of these roles and responsibilities. 6.2 MATERIAL REQUIREMENTS PLANNING
CONTRACTOR shall develop a Material Management Plan that will cover, but not be limited to: Material Take-Off (MTO) and establishment of Bills of Materials (BOM) Material Responsibility Matrix Bulk Material Contingency Quantities Item Numbering and Coding System Requisition Preparation The Allocation/Prioritisation of Materials will be defined by COMPANY. Prior to implementation, the Material Management Plan must be submitted to COMPANY for APPROVAL. It is expected that CONTRACTORs Procurement and Materials representatives shall ensure compliance with the Material Management Plan. The Material Management Plan is intended to specify the CONTRACTORs areas of responsibilities and activities associated with material management responsibilities. However this procedure does not address SITE material management activities. This Material Management Plan shall apply to all Equipment and Bulk Materials that are purchased by CONTRACTOR. The specification of these Bulk Materials and Equipment may have been provided by a THIRD PARTY contractor. This Plan is typically executed at the CONTRACTORs engineering and procurement facility. 6.3 PURCHASING / CONTRACTS
Each CONTRACTOR shall procure goods and/or services based on the most economically advantageous tender using sound commercial strategy and best practice to ensure quality, delivery and fitness for purpose. The most economically advantageous, technically acceptable tender is determined by, among other things, acceptable technical solutions, quality and functional Rev 01 17.06.2011 Page 31 of 65
characteristics, the use of national material and service, delivery dates, cost effectiveness, health, safety and environmental factors. CONTRACTOR shall have in place a set of procedures that will assure the accomplishment of the requirements stated above. CONTRACTOR can use the below attached procedures as a guideline for the development of its own procedures. 6.4 EXPEDITING
In order to ensure that SUBCONTRACTORS will respect the WORK TIME SCHEDULE/schedules and deadlines set out in the Procurement and subcontracting contracts, CONTRACTOR shall have in place a dedicated set of procedures that will discipline its expediting department. 6.5 LOGISTIC SURVEY
In order to assure the optimisation on the movement of goods, CONTRACTOR shall have in place a dedicated set of procedures. This procedure is intended to describe the activities and methods for performing a logistics survey. Logistics surveys are required in order to determine the most appropriate method of moving goods from the point of origin to the point of use, so as to deliver an efficient cost effective supply route. The survey must assess whether the current infrastructure is adequate to support the intended use of the route and address resource availability along the supply chain. 6.6 SITE MATERIAL CONTROL
In order to assure SITE control management, CONTRACTOR shall have in place a dedicated set of procedures. This procedure specifies the areas of responsibilities and activities associated with the execution of SITE Material Control. The scope of this procedure shall apply to all Project Equipment, Bulk Materials and rental Equipment. These Materials and Equipment may have been provided by a THIRD PARTY contractor. The scope of this procedure shall also define document and data management in the SITE Material Control process. This procedure is typically executed at the jobsite or fabrication facility.
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7.
ENGINEERING
7.1
DESIGN ACTIVITY PLAN
The CONTRACTOR shall define a system which ensures that the design requirements stated in the COMPANYS specifications, CONTRACT, APPLICABLE LAW, Provisions, and Standards and anything further defined within this CONTRACT are correctly accounted for in any/all technical specifications, calculation reports, drawings and in any other document which must be issued. Design activities shall be carried out and documented according to the following main stages: i) Identification and control of documents containing design input data ii) Preparation and issue of the Design Activities Plan (DAP) The DAP shall be coherent with WORK TIME SCHEDULE and WBS The DAP shall specify the logical sequence of design activities and sub-activities. The DAP shall be drawn up according to an appropriate procedure which defines the responsibilities and procedures for its issue. The DAP shall contain the following minimum information for each activity: i) Identification of the parts and items which shall be designed ii) Identification of documents containing input data for the start of design activities iii) Identification of all documents which shall be issued, stating the responsibilities and relative interfaces, highlighting subsequent critical documents issue iv) Identification of all documents (calculation reports, drawings, etc.), which shall be submitted for independent review. v) Preparation and issue of the CONTRACT Document List vi) Development of design activities according to defined quality levels vii) Application of appropriate procedures for the development of each activity viii) Check of documents to ensure a control of the interfaces before final issue. ix) Independent review of CONTRACT documents by qualified personnel not directly involved in design activities, or another CONTRACT control method.
7.2 DESIGN CONTROL
CONTRACTOR shall establish and implement a system to control engineering activities in order to ensure achievement of a satisfactory level of quality and compliance with all APPLICABLE LAW and contractual requirements. CONTRACTOR's engineering control activities shall include as a minimum, but not be limited to, the following: Implementation of an agreed system for (internal) discipline checking, including the use of check lists where appropriate, to substantiate compliance with statutory requirements, industrial standards, COMPANY and CONTRACTOR applicable specifications and standards, contractual requirements, etc. Discipline checks shall be documented and traceable. Regular and systematic reviews of the technical content of the design at dedicated, multidisciplinary meetings, and report potential problems. Such internal design review meetings are to be fully documented. A systematic record, for each revision of all documents and SUBCONTRACTOR information, showing the originator, checker, name of CONTRACTOR and CONTRACTOR APPROVAL signature, and where required COMPANY APPROVAL, and incorporating comments, if any, arising during the checking and APPROVAL processes. Rev 01 17.06.2011 Page 33 of 65
Assurance that all documentation and data is accurate, correct, complete, consistent, clear and unambiguous. Assurance that there is no conflict between documents. Assurance that all documents and data meet the specified COMPANY requirements for presentation, format and quality.
7.3
ENGINEERING EXECUTION PLAN
CONTRACTOR shall develop an Engineering Execution Plan and shall maintain and execute design in accordance with it. The purpose of this plan is to set out the overall strategy for CONTRACTOR design together with the procedures, processes, WORK methods and computer systems to be used. It will form the basis of the CONTRACTORs control of design. Elements of the Engineering Execution Plan will include (but not limited to): Design References (inc Codes and Standards) Design and Engineering Processes, Systems and WORK processes Engineering Organisation, including Roles and Responsibilities Engineering Schedule Milestones Safety in Design Approach Design Quality Assurance, Verification and Checking Procedures Engineering Computer Systems Selection and WORK Practices 3D Modelling Control and WORK Practices Document (inc Drawing) and Data Conversions (inc numbering systems and formats) Design Deliverables Listings 7.4 ENGINEERING CHANGE CONTROL
CONTRACTOR shall establish and implement an engineering change control system, which shall be integrated with other CONTRACT control systems. The objectives of the change control system are as follows: To control the effects of engineering change proposals on schedules and on costs. To control changes to the engineering specifications deriving from any source (inadequacy, inaccuracy, addition, deletion, revision, etc.) and to measure the effects. To ensure that all engineering aspects (including operability, reliability, safety, certification, interface, weight, maintainability, etc.) of a proposed change are fully considered by discipline lead engineers before a change is APPROVED. The process of Engineering Change Control will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP.
7.5
ENGINEERING INTERFACE CONTROL
The CONTRACTOR shall ensure that all Engineering activities are carried out taking into account and in compliance with all the applicable interfaces. The CONTRACTOR'S Interface Control activities shall include as a minimum but not be limited to, the following: i) To co-ordinate all disciplines involved in the design execution and to identify all technical interfaces.
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ii) To establish joint responsibility for the development of interfaces and their agreement with the interfacing parties. iii) To regularly and systematically review technical interfaces at dedicated, multi-disciplinary meetings and to report potential problems. iv) To document all agreed technical interfaces as the basis for their control.
v) To arrange correct distribution of interface control documents, and ensure that agreed interfaces are considered in design validation, review and revision activities. vi) To implement a system of control over changes to agreed technical interfaces.
vii) To evaluate all change proposals for technical interface impact in association with the discipline(s) concerned, and to compile interface impact evaluation reports for relevant change proposals. To subsequently monitor APPROVED changes and incorporate the results into the interface control documents where necessary. The process of Engineering Interface Control will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP. viii) To incorporate Vendor interfaces into the control system.
7.6
CONTRACTORS INTERNAL ENGINEERING REVIEW
This section relates to CONTRACTORs internal independent verification of design. CONTRACTOR shall establish and implement an integrity management system, which shall be integrated with the design control activities and shall provide a suitable and sufficient level of integrity of all CONTRACTORs deliverables. The basic objective of a review programme is to provide assurance to COMPANY and CONTRACTOR'S management, by formalised documentation, that the engineering satisfies the Project design and technical integrity requirements. When conducting an engineering review CONTRACTOR shall follow and comply with the following requirements: CONTRACTOR shall identify the schedule of the engineering review programme and incorporate it in the Quality Plan. CONTRACTOR shall assign to competent personnel, independent of the engineering function which produced the WORK, the responsibility of reviewing the engineering. o The engineering review shall be conducted by a review board of competent engineers, each with a competency at least equal to that of the designer in his own technical speciality. The presence of a representative from the designer and / or external specialists may be required. Members of the engineering board shall be identified by CONTRACTOR at the beginning of the review programme and made available for this function whenever necessary throughout the Project engineering phase.
The engineering review process shall cover: o o Internal design integrity of both in-house work and deliverables as well as SUBCONTRACTORS work and deliverables. Internal technical integrity of both in-house work and deliverables as well as SUBCONTRACTORS work and deliverables.
Detailed objectives of the review are: o To ensure that engineering outputs meet the input requirements and comply with all regulations, codes, standards and other applicable CONTRACT requirements.
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To ensure the adequacy of established technical and functional features (chosen Materials, adopted processes, technical solutions for operating conditions and maintenance operations, etc.). To ensure the correct setting and execution of calculations, drawings, etc. To identify problems of Fabrication, Testing, Installation, Pipelines and PreCommissioning and equipment / Material Procurement. To consider the effects on performance of proposed configuration changes to evaluate the adequacy of the specifications to meet the intended operational use.
o o o
All steps of the engineering review process shall be adequately documented by CONTRACTOR and all identified non-compliances amended. CONTRACTOR shall report to COMPANY results of the above audit and review. COMPANY may also carry out THIRD PARTY reviews of design integrity as set out in the design management procedures. 7.7 SOFTWARE VALIDATION, VERIFICATION AND TESTING
Assuming that: Validation means the certification of the correctness of the software with respect to its needs and requirements. Verification means the demonstration of consistency, completeness and correctness of the software at each stage of its lifecycle. Testing means the examination of the software current behaviour by means of sample runs. CONTRACTOR shall ensure that: All software used in the WORK have been properly tested, Verified and Validated before use. The Testing, Verification and Validation status of the software used in the WORK shall be known, documented and properly recorded. The CONTRACTOR function(s) responsible for the development, testing and maintenance of the same, are clearly identified. COMPANY reserves the right to request that tests are carried out on any software used or proposed to be used in the WORK, if reasonable doubt exists on its status of Verification of its performances, or if records of Verification and Testing are not available. These Tests and Verifications shall be carried out at CONTRACTOR'S sole expense. 7.8 DOCUMENT REVIEW
All the documentation (specifications, drawings procedures etc.) required for engineering, procurement, fabrication, integration tests, pre-commissioning, commissioning, installation and operation of the system/equipment whether prepared by CONTRACTOR or by its SUBCONTRACTORS, shall be submitted to COMPANY in an electronic format. Drawings, specifications and data submitted to COMPANY for review shall be accompanied by calculations or other information sufficient to explain in its entirety the relevant structure, Equipment or system and its intended manner of use. All terms used shall be clearly defined along with justification for all assumptions made. A summary of results and interpretation of computer outputs shall be included. The sequence of submittal of all drawings, specifications and data shall be such that all information necessary for reviewing a particular submittal is available to COMPANY when the documents are received. COMPANY'S review will not constitute APPROVAL of design details, calculations, analyses, test methods, certificates, procedures or Materials developed by CONTRACTOR or in any way relieve Rev 01 17.06.2011 Page 36 of 65
CONTRACTOR from full compliance with the CONTRACT. All risks of error are assumed by CONTRACTOR, and COMPANY shall have no responsibility therefore. 7.9 NON-CONFORMANCE
If drawings, specifications or data show variations from the CONTRACT requirements, CONTRACTOR shall identify and describe such variations according to a process that will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP. If CONTRACTOR fails to identify such variations, he shall not be relieved of the responsibility for executing the WORK in accordance with the CONTRACT, even though such drawings have been reviewed by COMPANY.
7.10
TECHNICAL QUERY PROCEDURE.
Requests for clarification or guidance of all technical details contained within COMPANYs Project documents, drawings and procedures shall be formally presented by CONTRACTOR to COMPANY as a Technical Query (TQ) , according to a process that will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP. 7.11 NAMING AND CODING OF ENGINEERING OBJECTS
CONTRACTOR will utilise the COMPANY Document, Bulk and Item Coding structures when communicating with the COMPANY. CONTRACTOR and its SUBCONTRACTORS shall adopt the COMPANY Material coding systems for internal use within their systems. The COMPANY Material coding will be the identifiers used for each line of Material Take Off lists and Equipment Lists. The Material Take Off Lists and Equipment Lists will allow to identify the related purchase order and document. The consistent use of the coding systems is key to enabling COMPANY to successfully manage the execution of the project.
7.12
CAD MANAGEMENT
CONTRACTOR shall issue all the native files.
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8.
DOCUMENT CONTROL 8.1 GENERAL
A formal system shall be established and maintained by means of approved procedures by CONTRACTOR to control the issue, modification, distribution and filing of all documents produced for the WORKS. The system shall ensure that: All documents are uniquely identified; All documents are produced and updated in a controlled and orderly manner; all documents are verified and approved, as required; Only the correct (latest) revisions of the documents are available when and where the related activity is carried out; All modifications are made in a controlled and documented manner; All documents provided by CONTRACTOR, SUB-CONTRACTORS and suppliers are produced according to the requirements set out by COMPANY; All documents are properly distributed and securely filed and maintained; All documents are available to COMPANY, throughout the duration of the CONTRACT The system shall be divided into sections: Management, Technical, Health and Safety, Environment, Radiation, Vendors, SUBCONTRACTORs, etc. 8.2 SUB-CONTRACTORS AND SUPPLIERS DOCUMENTATION
CONTRACTOR shall be responsible for the quality and contents of its SUBCONTRACTORS and suppliers documents and to ensure that they satisfy all requirements and specifications set by COMPANY. 8.3 8.3.1 DOCUMENT ADMINISTRATION Central Document Control (CDC)
CONTRACTOR shall establish a dedicated central function/unit (CDC), responsible for the administration of all WORK related documentation. This function shall control and manage all documentation activities and build and maintain a 'central file' for all documentation produced in connection with the WORK. 8.3.2 Computerized Database
CONTRACTOR shall establish a dedicated computerized Database for document control purposes. The Database used throughout the CONTRACT by all CONTRACTORs functions, shall fulfil all of COMPANYS requirements for I.T. Electronic Data Management. The system shall allow for the transfer of information to and from both the central control unit and any peripheral control units; and the automatic updating of the central Database on a regular basis (at least once a week), to incorporate the latest peripheral data. CONTRACTOR shall identify and submit to COMPANY, for APPROVAL, the scope of work of the Database which shall include, as a minimum, identification and control of the following: Document number Description (title) document size Module and system references Present revision (status and date)
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Document past history (status, dates and reasons for change) document scheduled issues (revisions and forecast dates) existence of holds and PARTIES/functions responsible for release APPROVAL status (THIRD PARTY, COMPANY, CONTRACTOR) and history Comments/scratch pad facility Document distribution In addition, the computerized Document Register system shall allow to track documents movements between CONTRACTOR and COMPANY, within CONTRACTORS organization for internal review, and between CONTRACTOR and others (THIRD PARTIES, etc.). The system established by CONTRACTOR, shall allow the issue of up-to-date status reports tailored to show only the information requested by the functions receiving the reports. Advanced search/sorting and reporting facilities shall be part of the software used. COMPANY shall be allowed, on a local basis, free access to the central or any peripheral Database and use of any searching/sorting or reporting facility of the system. 8.3.3 Document Control and Distribution
'CDC' shall be responsible for the overall control of the documentation produced by or on behalf of the CONTRACTOR and the timely distribution to all concerned parties, both internal and external to the CONTRACTOR organisation. 'CDC' shall also be responsible for the circulation of the documentation requiring interface review or approval (both internal and external to CONTRACTORs organisation). 'CDC' will be responsible for any expediting required to complete review or approval cycles. 'Overdue documentation' reports shall be issued and made available to any party involved, within five working days of review/approval expiry time. 'CDC' shall verify, before any document is released for fabrication purposes, that all internal and external applicable approvals have been given. 8.3.4 Interfaces
CONTRACTOR shall ensure that all supplier and design information between design functions, fabrication sites and offshore sites, is recorded on the appropriate documentation. 8.3.5 Document Transmission
CONTRACTOR shall transmit all documentation under cover of sequentially numbered and dated transmittals. CONTRACTOR shall group documents by purpose, module, type and discipline, to facilitate processing by all parties involved. Documentation delivery shall be within normal working hours. Transmittals shall be checked on receipt to ensure that all listed documents are present and are the correct issue/revision. Replacements will be requested for any incorrect or incomplete attachments. A copy of each transmittal received shall be signed/dated and returned immediately to the originator as acknowledgement of receipt. 8.3.6 Document Filing and Retrieval
Peripheral files shall be established and maintained by the CONTRACTOR for the entire duration of the CONTRACT at each working location. A central file shall be established and maintained by 'CDC', to collate all the documents produced by or on behalf of the CONTRACTOR. This file shall facilitate retrieval to any revision of any document produced.
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CONTRACTOR shall be responsible for maintaining a complete historical file (all revisions, comments etc.) for all engineering and fabrication documents developed and issued during the CONTRACT. COMPANY shall be allowed access to this file. 8.3.7 Document Status Reporting
CONTRACTOR shall regularly issue document registers to COMPANY and circulate them within his own organisation. Document registers issued to COMPANY will have formats and contents acceptable to COMPANY. Annotation of alterations since the previous register issue (typically a flag in the right or left margin) shall be shown in a new issue of the document. The periodic standard issue for document registers shall be at least weekly until such time that the number of changes in the register no longer warrants the frequency of issue. At such a time, the CONTRACTOR shall request APPROVAL of COMPANY to a lengthening of the period between issues. The first official issue of a complete document register, broken down by module, document type and discipline shall be submitted to COMPANY according to the date specified in Annex G. 8.3.8 Document Numbering
All documents produced by the CONTRACTOR, his SUBCONTRACTORS and suppliers shall be numbered in accordance with COMPANY Procedure. CONTRACTOR shall ensure that the documents produced by him, his SUBCONTRACTORS and suppliers are numbered in a proper, rational and orderly manner. 'CDC' will co-ordinate allocation of numbers, for this purpose. The numbers of cancelled, deleted and superseded documentation shall remain on the Database (and registers) and shall not be re-used unless the cancellation or deletion decision is reversed. 8.4 DOCUMENT VERIFICATION AND APPROVAL BY CONTRACTOR
CONTRACTOR shall retain an auditable system to verify and approve its documents and those issued by SUBCONTRACTORs and suppliers. All documents produced by CONTRACTOR shall be submitted for internal review, to verify compliance with the CONTRACT requirements, Statutory requirements, good engineering practices and approved for adequacy by authorized personnel. The review cycle shall include at least the document originator(s) and the individual responsible for the part of WORK the documents refer to (Discipline Lead Engineer). The approval signature shall be by a third authorized person (Engineering Manager). All documents produced by SUBCONTRACTORS and suppliers shall undergo the same review/approval cycle within the SUBCONTRACTOR or supplier organization. In addition the documents shall be reviewed and approved by qualified and authorized personnel in the CONTRACTOR organization. Each engineering document shall be reviewed by an autonomous function within the CONTRACTORS organization, in order to ascertain adequacy of design. All fabrication drawings shall undergo a review/approval cycle and then be reviewed for compliance with the AFC design documents by qualified and authorized personnel within the originating design company. Verification and approval of each document shall be documented by signatures on the document itself. CONTRACTOR shall ensure that drawings are reviewed by the appropriate discipline engineers and that their comments are included in the documents sent to SUBCONTRACTORs, suppliers and other functions in CONTRACTORs organization.
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A 'three tier' review and approval system SUBCONTRACTORs and suppliers' drawings:
is
envisaged
for
CONTRACTORs,
'Rejected' - Affected work must not proceed. Drawings shall be modified and resubmitted. 'approved on Condition' - Affected work may proceed whilst the documents are being modified and re-submitted. 'approved' - Affected work may proceed. CONTRACTOR shall liaise with SUBCONTRACTORS, suppliers, COMPANY and any THIRD PARTIES to reach the final review level. 8.5 DOCUMENT VERIFICATION AND APPROVAL BY COMPANY
COMPANY shall review and approve documents at design stage (AFD), at construction stage (AFC), at fabrication stage and at As-Built stage. This will necessitate the COMPANY seeing the documents and being able to comment on them prior to their achieving this status. COMPANY shall approve technical documents issued by CONTRACTOR in support of purchase orders and the procedures and practices produced by CONTRACTOR. COMPANY will identify on the first official submission of the relevant document register the documents which require COMPANY APPROVAL. COMPANY may revise his requirements during the CONTRACT period and CONTRACTOR shall comply with any such revised requirements. All documents submitted to COMPANY for APPROVAL shall be complete and duly signed for verification and approval by CONTRACTOR. They, as far as CONTRACTOR is concerned, shall be final. If 'holds' exist they shall be clearly identified on the document. All documents shall be submitted in complete packages and self supporting to allow a timely and effective review. CONTRACTOR shall allow for COMPANYS review time when scheduling the CONTRACT activities so that no delay results to the WORK as a consequence of this activity. COMPANYS review/approval times are to be accounted for in accordance with the dates/times specified in Annex G. For documentation requiring COMPANY APPROVAL, CONTRACTOR shall submit to COMPANY, the original plus COMPANYS comment print/copy. COMPANY will respond to CONTRACTOR using the 'three tier' review and approval system described in the previous paragraph. CONTRACTOR shall incorporate all comments offered by COMPANY and re-submit the document if previously 'rejected' or 'approved on condition'. CONTRACTOR shall issue documentation for APPROVAL in sufficient time to allow COMPANY the designated review period and to allow CONTRACTOR time for discussion and incorporation of any comment prior to final issue. Rejection of a document, based on non compliance with the CONTRACT or Statutory requirements shall not be a reason for delays in the WORK TIME SCHEDULE or extra costs. The submission of any document by CONTRACTOR and the provision of any comment/approval thereto by COMPANY (or other THIRD PARTIES), shall in no way be construed as to relieve CONTRACTOR of any obligations, liabilities or responsibilities under the CONTRACT. In order to assist COMPANY with its review requirements, CONTRACTOR shall keep COMPANY informed of the intended issue dates for documentation. The submission of large batches of documentation at infrequent, unplanned intervals shall be avoided. CONTRACTOR is encouraged to submit preliminary draft issues for informal comment where such may serve useful purposes, prior to formal issue.
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Regardless of the actual status of the documentation (AFC, previously commented upon, issued for information, etc.) or whether fabrication work has commenced, COMPANY shall have the right to raise additional comments and CONTRACTOR is obliged to incorporate such comments (at no additional cost to COMPANY), into the WORK should they be required by the CONTRACT. 8.6 DOCUMENT SUBMISSION TO COMPANY
In addition to the CONTRACTOR and Suppliers Documentation and Manuals, CONTRACTOR is to provide copies of all CONTRACT documentation (i.e. Supplier, Engineering, Construction, etc.), either APPROVED by COMPANY or approved by CONTRACTOR or not requiring COMPANY APPROVAL, at all revisions as follows: For Review: Drawings Supplier Documents (not manuals) Multi-page Documents (inc. Procedures) Manuals/Supplier Manuals: For Approval: The original plus COMPANYS comment print/copy. For Information/Following Approval: Drawings Supplier Documents (not manuals) Multi-page Documents (inc. Procedures) Manuals/Supplier Manuals: : : : : 2 full size prints and 3 A3 copies 2 copies 2copies 3 copy : : : : 1 reproducible and 5 full size prints 2 copies 5 copies 1 copy
CONTRACTOR shall provide the above documentation to COMPANY at location(s) to be specified following CONTRACT award. COMPANY shall receive documentation issued for 'information only according to the date specified in Annex G. CONTRACTOR shall ensure that such documentation is reviewed by the applicable disciplines prior to submittal to COMPANY. The said documentation shall bear CONTRACTORS stamp/signature of approval as evidence of such coordinated review. 8.7 8.7.1 GENERAL DOCUMENTATION REQUIREMENTS Quality Requirements
The preparation of documents shall comply with the requirements provided by the COMPANY. Multi-page documents shall be produced on Microsoft word for windows, and shall be capable of clear reproduction, microfilming and electronic storage. Single-page drawings shall be capable of clear photographic, microfilming and electronic reduction to A3 size. 8.7.2 Size
CONTRACTOR shall propose the size of documents to be produced, and obtain COMPANY written APPROVAL prior to commencement of the Scope of Work.
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8.7.3
Formats
COMPANY shall provide a standard front sheet pro-forma to be used for specifications and other multi-page documents. CONTRACTOR shall propose the format of all other documents to be produced and obtain COMPANY written APPROVAL prior to commencement of the Scope of Work. The format of documents shall be unique and homogeneous throughout the duration of the CONTRACT, and used for all documents produced by or on behalf of the CONTRACTOR. 8.7.4 Information
CONTRACTOR shall propose the scope of information to be entered on documents. Particular emphasis shall be placed on drawings with regard to data tables, notes, and hold categories. The scope of information to be entered on documents shall be homogeneous throughout the CONTRACT. Each document shall, at all stages of its life, bear an identification of the (internal and external) cycle it is bound to undergo and a clear indication of those steps which have already been passed. 8.7.5 Units of Measurement
All documents shall be produced using the unique units of measurement system APPROVED by COMPANY for the CONTRACT. 8.7.6 Symbols
The symbols used in the drawings shall be in compliance with appropriate specifications and recognized standards acceptable to COMPANY. The same symbols shall be used throughout the duration of the CONTRACT. 8.7.7 Revisions
CONTRACTOR shall use revision characters 'PI' to 'P9' for preliminary issues for comment and '01' through '09' for Design issues of documents. At 'approved for construction' (AFC) level; the revision character shall be a single alpha character, commencing 'A' through 'Z'. Documents revised from previous approved levels shall have the affected areas highlighted by 'clouding' or 'side-lining' and the use of a triangle denoting the revision status. Previous revision highlighting shall be removed at subsequent issues. 8.8 PROJECT COMPLETION DOSSIER
CONTRACTOR shall compile a Project Completion Dossier, the purpose of which is to provide a record of design, fabrication, certification, installation, pre-commission and commissioning work scope for all disciplines. This dossier shall form the basis of handover requirements. 8.8.1 Supplier Dossiers
CONTRACTOR shall be responsible to provide complete supplier Dossiers with the content and format to be agreed with COMPANY. 8.8.2 Records Retention
CONTRACTOR shall be responsible to retain records of work after completion of the WORK in accordance with the terms of the CONTRACT.
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9.
PERMITS, CONSENTS AND CERTIFICATION 9.1 REPRESENTATIVES
According to the date specified in Annex G both COMPANY and CONTRACTOR will nominate representatives and their deputies to act as liaison officers for all issues related to permitting and certification. 9.2 REPORTS AND PROGRESS MEETINGS
During the kick-off meeting but according to the date specified in Annex G, CONTRACTOR and COMPANY shall agree: Frequency and content of specific progress reports and meetings. Dates for formal audits permitting and certification process. At least one such audit should be planned during the CONTRACT but according to the date specified in Annex G.
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ANNEX A.
TYPICAL ACTIVITY WORK BREAKDOWN STRUCTURE
Level 0 Project
Level 1 CONTRACT 2 char numeric
Level 2 Phase 1 char alphanumeric
Level 3 Area 3 char alphanumeric
Level 4 Discipline 2 char numeric
1 Experimental Program 1.01 CONTRACT Description 1.01.A 1.01.B 1.01.C 1.01.D 1.01.E 1.01.F 1.01.G Project Management Engineering Procurement Offsite Fabrication Construction Pre Commissioning Commissioning Assistance CONTRACTOR Codes CONTRACTOR Codes
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ANNEX B.
WORK TIME SCHEDULE SAMPLE
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ANNEX C.
PROGRESS S CURVE
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ANNEX D.
MANPOWER HISTOGRAM
Contractor Logo
10 0 % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
A ug03 P lanned (P eri od) A ctual (P eriod) F orecast (P eriod) P lanned (Cumulat ive) F orecast (Cum ulative) A ctual (Cum ulative) 0. 0% 0. 0% 0. 0% 0. 0%
KASHAG AN FIELD DEVELOPMENT - EXPERIMENTAL PROGRAM PROGRESS S CURVE - CONTRACT : . ARE A/DISCIP LINE: .
COMPANY LOGO
20%
Progress Cutoff
Planned (Period) 16% Actual (Period) Forecast (Period) 14% Planned (Cumulative) 1 2 % Forecast (Cumulative) 10% Actual (Cumulative)
8%
18%
To indicate format only
6% 4% 2% 0%
Sep03 3. 9% 6. 2%
Oct03 5. 8% 1. 9%
Nov03 3.6% 3.9%
Dec03 8.7% 6.5%
Jan04 8.1%
Feb04 12.1%
Mar04 10.1%
A pr04 9. 2%
May04 13. 8%
Jun04 9.5%
Jul04 7. 6%
Aug04 5. 3%
S ep04 2.3%
Oct04 0.0%
Nov04 0.0%
8.5% 3. 9% 9. 8% 13. 3% 22. 0% 18. 5% 6. 2% 8. 1% 12. 0% 18. 5% 30. 1% 27. 0%
15.1% 42.2% 42.1%
9. 7% 52.3% 51.8%
9. 7% 61.6% 61.5%
13. 6% 75. 4% 75. 1%
9.5% 84. 8% 84. 5%
7. 8% 92.4% 92.3%
5. 2% 97.7% 97.5%
2.4% 100.0% 100.0%
0.0% 100.0% 100.0%
0.0% 100.0% 100.0%
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ANNEX E.
COST, TIME, RESOURCE SHEET (CTR)

HEWETT GAS STORAGE PROJECT
TECHNICAL EXPERTISE SUPPORT Contract No.
COST, TIME, RESOURCE (CTR) ACTIVITY SHEET
SCOPE : CTR N : CTR TITLE : SCOPE DESCRIPTION :
DISCIPLINE :
REV.
INPUT DATA, EXTERNAL INTERFACE DATA, SUBCONTRACTOR DATA :
SPECIALIST I.T. REQUIREMENTS (SOFTWARE ETC): DELIVERABLES / TASKS :
Description
Quantity
Manhours
Total
SCHEDULE :
Activity Codes :
Duration : Predecessor Code: Successor Code:
MANHOUR / COST ESTIMATE :
ManHours 2004
Rate (/hr)
Total Cost ()
SUBTOTAL ($) TOTAL COST OF C.T.R. ()

Submitted for approval Approval to proceed Date
Completion Agreed by : Date
Completion Agreed by : Date
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ANNEX F.
REPORTS
DAILY REPORT
The CONTRACTORs Daily Report, produced at the end of each project day, shall report as a minimum:
Activity Status: summary of the key data and progress of the day and cumulative Weather report Summary Work Progress Main Activities: description of the key activities carried out during the reported day and the related status Work Schedule: list of activities scheduled for the day after Key data summary: information about quantities, consumptions, etc. Personnel: summary of the personnel involved and man-hours expenditure Safety Summary: main events occurred, indexes and prevention activities carried out
For each contract the above content has to be covered excluding agreed exceptions (where required by the subject of the contract).
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WEEKLY REPORT
The weekly report shall contain as a minimum the following sections: Progress and activities achieved during the previous week. Deviations from the planned progress. Activities planned for the following weeks.
Foreseen or potential events or risks to the programs and the CONTRACT EXECUTION PLAN and the corrective action(s) planned including the responsible person(s). A narrative section on each of the following describing any deviations to the individual schedules or philosophies or any critical or problem areas: COST AND PLANNING ENGINEERING ACTIVITIES TECHNICAL MATERIALS AND EQUIPMENT SUBCONTRACTS QA/CERTIFICATION SAFETY
For each contract the above content has to be covered excluding agreed exceptions (where required by the subject of the contract).
Rev 01 17.06.2011
Page 51 of 65
MONTHLY REPORT
This Monthly Report must contain the following sections in the following sequence:
1.
Executive Summary: Giving a brief summary of the highlights of achievement during the period and the contents of the report. HSE Report: Summarising the month's safety activities completed and what will be worked on in the next month. Including all the HSE performance indicators as applicable to the CONTRACT (e.g monthly total of accidents/incidents is required in terms of lost working days and medical treatment cases). Quality Assurance / Quality Control Activities: With details of any audits performed both internally and by external organisations. Main Report: Subdivided as necessary. Including specific information on the activities of the previous month, indication of Project Milestones achieved and delayed with reasons for any under or over achievement. and information on activities to be undertaken in the next month. Progress & Planning: Including a WORK TIME SCHEDULE and S-curves with explanations for any changes made the previous issue(s). Indication of physical percentage complete planned against actual. The bar chart shall detail activity number, activity description, original duration, remaining duration, percentage complete, early start, early finish, late start, late finish, total float and forecast completion (sorted by Work Package, phase, discipline and scheduled start). A variance report showing all critical activities variance from the WORK TIME SCHEDULE base plan. Manpower Summary: Giving an audited summary of the equivalent manpower planned and used both during the previous month and cumulatively to date. The Manpower Summary shall be accompanied by a graphical representation in the form of Histogram. Manhour Summary: Giving an audited summary of the manhours expended and forecast both during the previous month and cumulatively to date and including manhours Productivity report and Earned Value Analysis (to be agreed as necessary, for Productivity and Earned Value Analysis refer to relevant section within Progress Measurement paragraph). The Manhour Summary shall be accompanied by a graphical representation in the form of Histogram. Procurement & Material Control: Including purchasing status and reporting. Cost Report: Refer to Cost Control Reporting Section below. VARIATIONS
2.
3.
4.
5.
6.
7.
8. 9.
10. Status of VARIATIONS: Summary report detailing the status of /SITE/COMPANY instructions.
Rev 01 17.06.2011
Page 52 of 65
ANNEX G.
DELIVERY DATES
DELIVERY DATES FOR DOCUMENTS AND ACTIVITIES
ACTION Procedures submission and approval by Company WORK TIME SCHEDULE Submission to Company Contract Execution Plan for COMPANY' s Approval Daily, Weekly Reports
SECTION REF. 1.1
OBLIGATION BY
DURATION OR DATE
CONTRACTOR
Within 2 weeks of the effective date Not later than 30 days after the EFFECTIVE DATE Within 30 days from the effective date of CONTRACT Issue on Tuesdays of the following week. Cut-off: after completion of normal working on each Friday 30 calendar days prior to agreed COMPLETION DATE Within 7 days after the cut-off date Cut-off date: last Friday of each month Within 7 days after the cut-off date Cut-off date: last Friday of each month Within two weeks of the EFFECTIVE DATE Not later than 30 days after the EFFECTIVE DATE The last day of the month the reporting period Within 5 calendar days after the cut off Not later than 30 days after the EFFECTIVE DATE The first day of the month following the reporting period Not later than 30 days after the EFFECTIVE DATE Last Friday of each month Within 3 working days Within 3 working days before meeting Within 3 working days from the issue of Monthly Report
2.2.1
CONTRACTOR
2.3.1 2.4.2.1
CONTRACTOR CONTRACTOR
Close-Out Schedule for each SITE submitted for COMPANY'S APPROVAL Monthly Reports issued to COMPANY Monthly Activity Progress Report Contract Calendar for Company approval Cost report formats, charts, reporting structures must be submitted for COMPANY APPROVAL Cost Report covers up to and include Cost Report submitted as part of MONTHLY REPORT to Company Cost Forecasting Procedure submitted to Company Approval Preliminary data for VoWD to COMPANY The Value of Work Done Procedure for Company Approval Copy of Correspondence Register to Company Meetings Minutes Agendas for meetings
2.4.2.5
CONTRACTOR
2.4.2.2. 2.4.2.3. 2.4.2.7
CONTRACTOR CONTRACTOR CONTRACTOR
3.2
CONTRACTOR
3.2 3.2
3.4.1 3.5 3.5.1
CONTRACTOR CONTRACTOR CONTRACTOR
4.4.2 4.5.1 4.5.2
CONTRACTOR CONTRACTOR CONTRACTOR CONTRACTOR COMPANY
Monthly Progress Meeting
4.5.4
Rev 01 17.06.2011
Page 53 of 65
Minutes of the monthly progress meeting Procurement Plan submitted to COMPANY Copy of Register of CONTRACTOR Personnel to COMPANY PAAF Approval
4.5.4 4.5.5
Not later than 12 noon from the following working day Not later than 15 days from effective date
4.6.3
CONTRACTOR
Weekly basis
4.6.4
CONTRACTOR CONTRACTOR PERSONNEL CONTRACTOR REPRESENTATIVE COMPANY CONTRACTOR CONTRACTOR
At least 5 working days prior to the event requested on the PAAF
Timesheets
4.6.5
Weekly
Weekly manhour report Weekly manhour report approval Overtime submission Overtime Request
4.6.5 4.6.5 4.6.6 4.5.6
Weekly (on the basis of Timesheet prepared by CONTRACTOR Personnel) By Tuesday of each week No later than Friday Prior to 9.00 am or after 5.30 pm weekdays or weekends Within one calendar month of the month in which they are incurred Within two 2 weeks from CONTRACT Award and following COMPANY comments they should be issued for Approval within 6 weeks from CONTRACT Award
Invoiced Expenses submission
4.9.5
CONTRACTOR
Procurement, Material Management And Equipment Control Procedure Review Document Status Reporting: Document type and discipline submitted to COMPANY Drawings REVIEW Multi-Page Documents REVIEW Procedures REVIEW Documentation issued for information only to Company PERMITS
6.1
CONTRACTOR
8.3.7
CONTRACTOR
Within 20 calendar days from award of CONTRACT
8.5 8.5 8.5 8.6
COMPANY COMPANY COMPANY CONTRACTOR COMPANY CONTRACTOR
Review/approval times 10 working days Review/approval times 15 working days Review/approval times 20 working days At least 10 working days prior to commencement of fabrication covered by such documentation Within 4 weeks from the kick-off meeting
9.1 Representatives to be nominated Frequency and content of progress reports and meetings 9.2 Dates for audits permitting and certification process
COMPANY CONTRACTOR
Not later than 8 weeks after EFFECTIVE DATE from the kickoff meeting. At least one such audit should be planned during a CONTRACT but not more than every 6 months
Rev 01 17.06.2011
Page 54 of 65
ANNEX H.
COST REPORT TEMPLATE
Rev 01 17.06.2011
Page 56 of 65
Rev 01 17.06.2011
Page 57 of 65
ANNEX I.
COST PHASING S CURVE
VoWD - Progress Curve Contract: Title

10,000 9,000 100,000 8,000 7,000 6,000 5,000 4,000 40,000 3,000 2,000 20,000 1,000 0
Planned VoWD Monthly Actual VoWD Monthly Forecast VoWD Mothly Planned VoWD Cumulative Actual VoWD Cumulative Forecast VoWD Cumulative 500 300
120,000
60,000
Sep04 500 300
Oct04
Nov04
Dec04
Jan05
Feb05
Mar05
Apr05
May05
JunAugJul-05 05 05
Sep05
Oct05
Nov05
Dec05
Jan06
Feb06
Mar06
Apr06
May06
JunAugJul-06 06 06 320 32
Sep06 3
Oct06 0
Nov06 0
1,000 1,400 1,960 2,744 3,842 5,378 5,916 6,508 7,158 7,874 7,087 6,378 5,740 5,166 4,650 4,185 3,766 3,390 3,051 2,135 1,068 600 840 1,176 1,646 2,305 3,227 3,872 4,647 5,576 6,134 6,747 8,097
8,906 9,352 8,416 7,575 6,817 6,136 5,522 4,970 3,479 2,435 1,705
852
426
213
1,500 2,900 4,860 7,604 11,44 16,82 22,74 29,24 36,40 44,28 51,36 57,74 63,48 68,65 73,30 77,48 81,25 84,64 87,69 89,82 90,89 91,21 91,24 91,25 91,25 91,25 900 1,740 2,916 4,562 6,867 10,09 13,96 18,61 24,19 30,32 37,07 45,16 45,16 54,07 63,42 71,84 79,41 86,23 92,36 97,89 102,8 106,3 108,7 110,4 111,3 111,7 111,9
Rev 01 17.06.2011
Page 58 of 65
Cumulative VoWD k$
80,000
Monthly VoWD k$
ANNEX J.
YEAR END ACCRUALS JUSTIFICATION FORM
Justification of Accruals as at 31 Dec 2005

Contractor name: Business Unit: Title: Department: Cost Engineer:
BU Summary:
Value Of Work Done Invoiced Value* Accrual
$'000's
* compiled by Finance -
Contract No or Object Code

2005 Accruals :
JDE Doc Type/No
Accrual Justification / Method of Calculation
$'000's
Sub-total 2005 Accrual - Justified :
Grand Total Justified : Prepared by: Budget Holder: Contractor acknowledgment:
Rev 01 17.06.2011
Page 60 of 65
ANNEX K.
CORRESPONDENCE CODING
N N N N N N N N
A A
A A
A A
N N N N
(5) Sequential Number (4) Recipient Code (3) Originator Code (2) Type of correspondence (1) Contract code
Where: A = Alphabetical N = Numerical
1.
Contract Code
A four eight digit number allocated by the CONTRACTs administrators. Default to 0000 for none CONTRACT correspondence. Two character alphabetical to recognise the type of correspondence. LT (LETTER), MM (MINUTES OF MEETINGS).
2.
Type of Correspondence
In accordance with the Document Numbering Procedure to be provided by COMPANY.
3.
The Originator Code
4.
The Recipient Code The Sequential Number
5.
Four character numerical that is unique for the CONTRACT number, correspondence type, originator, and recipient.
6.
Rev 01 17.06.2011
Page 61 of 65
ANNEX L. Company Logo
MINUTE OF MEETING FORMAT
MINUTES OF MEETING PROFORMA Meeting Title:
Between (Company) & (Contractor):
Minutes Taken By:
Date / Time: Signed by (Company) .. Location:
Contract Title:
Signed by Contractor ..
Attendees:
Distribution:
Name
Position
Name
Position
Item
Description
Action
1.0
Guidelines
1.1
Each page shall be initialled by both Operator Contract Representative and Contractors Representative
1.2
Both parties are deemed to be appropriately authorised members of the organisations represented
Rev 01 17.06.2011
Page 62 of 65
ANNEX M.
PERSONNEL ASSIGNMENT FORM
Document Number To: COMPANY For the attention of:
CONFIRMATION OF ASSIGNMENT LETTER NO.
This assignment shall fall under the terms and conditions of CONTRACT No... between and .............................dated ....................20...
CONTRACT Amendment No./VARIATION ORDER No. Name: Personnel Identification Number: Job Title: Category: Permanent/Agency/CONTRACT Staff: Direct/Indirect: Hourly Rate: Start Date: Duration: Finish Date: Location: Normal WORK Day: Reporting to: CV Attached (KEY PERSONNEL): Revision No:
Submitted:
..................................................
Approved :
..................................................
(COMPANY REPRESENTATIVE/Project Engineer/Other)
Rev 01 17.06.2011
Page 63 of 65
ANNEX N.
MILESTONE PAYMENT CERTIFICATE
KASHAGAN DEVELOPMENT - EXPERIMENTAL PROGRAM
MILESTONE PAYMENT CERTIFICATE

AGIP KCO Parkview, Great West Road Brentford, Middlesex. TW8 9AA England
Date : xx October 2003
EXECUTION CONTRACTOR ADDRESS
Contract Number Current Total Contract Value Total Forecast Final Value
2003-XXX $ x 1000 XXX $ x 1000 XXXX
Milestone Certificate Number Milestone No.
$ VALUE TO DATE -ORIGINAL SCOPE VALUE TO DATE-VARIATIONS TOTAL WORK VALUE DEDUCT BACKCHARGES ADJUSTMENTS RETENTION ( % ) SUB - TOTAL LESS PREVIOUSLY CERTIFIED AMOUNT DUE (excluding vat )
COMMENTS :
(CERT NO. )
(A) (B)
(C)=(A+B)
(D)
(E)
(F)=(C-D-E*5%)
(G)=(C-D-E-F)
0 0
(H)
(I)=(G-H)
COMPANY APPROVALS
COMPANY REPRESENTATIVE CONTRACT HOLDER
SIGNED
DATE:
SIGNED
DATE
Rev 01 17.06.2011
Page 64 of 65
ANNEX O.
PAYMENT CERTIFICATE
KASHAGAN DEVELOPMENT - EXPERIMENTAL PROGRAM
PAYMENT CERTIFICATE
AGIP KCO Parkview, Great West Road Brentford, Middlesex. TW8 9AA England
Date : xx October 2003
EXECUTION CONTRACTOR ADDRESS
Contract Number Current Total Contract Value Total Forecast Final Value
2003-XXX $ x 1000 XXX $ x 1000 XXXX
Milestone Certificate Number
$ VALUE TO DATE -ORIGINAL SCOPE VALUE TO DATE-VARIATIONS TOTAL WORK VALUE DEDUCT BACKCHARGES ADJUSTMENTS RETENTION ( % ) SUB - TOTAL LESS PREVIOUSLY CERTIFIED AMOUNT DUE (excluding vat )
COMMENTS :
(CERT NO. )
(A) (B)
(C)=(A+B)
(D)
(E)
(F)=(C-D-E*5%)
(G)=(C-D-E-F)
0 0
(H)
(I)=(G-H)
COMPANY APPROVALS
COMPANY REPRESENTATIVE CONTRACT HOLDER
SIGNED
DATE:
SIGNED
DATE
Rev 01 17.06.2011
Page 65 of 65

2.20 - Appendix G - Project Coordination Procedure 170611df

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Appendix G Coordination procedure

eni ZUBAIR PROJECT

PROJECT COORDINATION PROCEDURES

Appendix G Coordination procedure

Appendix G Coordination procedure

Appendix G Coordination procedure

ANNEX K. CORRESPONDENCE CODING ANNEX L. MINUTE OF MEETING FORMAT

Appendix G Coordination procedure

INTRODUCTION 1.1 PURPOSE

WORK TIME SCHEDULE

Appendix G Coordination procedure

Contract Quality Plan

TECHNICAL QUERY (TQ)

ROLES AND RESPONSIBILITIES

Appendix G Coordination procedure

PLANNING AND SCHEDULING 2.1 GENERAL

Appendix G Coordination procedure

Primavera P6 Project Management Software

Appendix G Coordination procedure

Appendix G Coordination procedure

Contract Execution Plan

Appendix G Coordination procedure

Appendix G Coordination procedure

TOOLS ADMINISTRATION Progress Measurement

Appendix G Coordination procedure

ETC = (BAC EV ) / CPI

EAC = AC + ((BAC Ev ) / CPI

Appendix G Coordination procedure

Project Closing Report

Appendix G Coordination procedure

COMPANY, or requested to do so by the COMPANY REPRESENTATIVE.

Appendix G Coordination procedure

COST CONTROL REPORTING 3.1 PREAMBLE

Appendix G Coordination procedure

the date specified in Annex G.

date specified in Annex G)

Appendix G Coordination procedure

Reimbursable items Register 3.4.3 Cost Forecast Phasing

Appendix G Coordination procedure

Appendix G Coordination procedure

ADMINISTRATION AND PAYMENT 4.1 GENERAL

Appendix G Coordination procedure

Correspondence shall be coded as per instructions provided in Annex K.

Appendix G Coordination procedure

Appendix G Coordination procedure

Daily, Weekly/bi-weekly Progress Meeting

G or as may be mutually agreed. Minutes shall be APPROVED by COMPANY REPRESENTATIVE.

Appendix G Coordination procedure

CONTRACTOR PERSONNEL ADMINISTRATION Project Organisation Chart

Appendix G Coordination procedure

Appendix G Coordination procedure

SITE / COMPANY VARIATIONS

CONTRACT CALL-OFFS/WORK ORDERS

Appendix G Coordination procedure

Certification and Payment by Company

Appendix G Coordination procedure

COMPLETION AND CONTRACT CLOSE OUT

Appendix G Coordination procedure

INTERFACE MANAGEMENT 5.1 INTERFACE MANAGEMENT SYSTEMS

Appendix G Coordination procedure

CORE INTERFACE ISSUES

Appendix G Coordination procedure