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1.

Project Management Philosophy The following philosophy is the basis which forms the Bidders project management plan:
Ensure that Bidders staffs are aligned towards achievement of a set of common project goals through a cooperative effort in a spirit of teamwork Maximize the use of local resources in Vietnam Maximize Employers satisfaction with the performance, operability, maintainability, safety and quality of the facilities handed over Ensure that the project execution process meets the highest standards for safety, quality and efficiency of performance

Project Management plan will conform to the Quality Policy which is in compliance
with the requirements of the International Standard ISO 9001:2008. Project QA Manager to manage, monitor and maintain the Project quality management system by preparing the Project Quality Plan, conducting quality induction training of the project personnel and planning and conducting project quality audits. The Project Quality Plan provides the basis to guide, direct and instruct the Project Team in execution of their work to achieving the required quality for its services and products. Soon after Contract Award, the Project QA Manager will issue the project specific quality plan addressing the quality requirements for the full scope of work for project management and control, engineering, procurement, and construction work. Project personnel are responsible for implementing this plan, which as a minimum, specifies the following: Quality objectives and quality requirements for the project Organization and responsibilities Work processes, documentation, and resources Review, verification and validation process for Engineering phase, Monitoring and Inspection for Procurement and Construction phase Records needed to provide evidence that the processes and resulting product meet requirements

All vendor and subcontractor quality manuals will be reviewed by Bidder to ensure their QMS are established according to ISO 9001, or an equivalent standard. After contract award, vendors and subcontractors shall submit their quality plan to Bidder to ensure conformance with the project established QA/QC procedures. 2.

Engineering Execution Philosophy Bidders objective will be to execute engineering effectively to produce a plant that satisfies the Employer requirements outlined in the Employer documents. The execution plan will achieve safety, quality, reliability, availability, constructability,

operability and maintainability with no adverse environmental impacts within the agreed cost and schedule criteria. Bidders engineering execution philosophy will be based on the following: Draw upon Bidders and Employers experience gained, and lessons learned, from similar projects already completed or under implementation. Meet the Project requirements for safety, quality, reliability, constructability, operability, maintainability, environmental impacts within the agreed cost and schedule goals. Quick start and proper performance of design and safety reviews, documentation, and resolution of outstanding items. Develop a construction and start-up driven schedule utilizing proven designs and promoting constructability. Ensure that design reviews are properly performed, documented, and implemented, including plot plan review and P&ID review. Ensure consultation, participation and involvement of the local authorities in the identification of local regulations, and getting applicable local approvals and permits related to design aspects. Encourage vendor to maximize vendors standards and international codes to obtain the best proven design. Ensure open communication and effective coordination with Employer representatives. Ensure an effective communication and coordination with subcontractors and vendors. Conduct early activities to identify and set the critical front-end activities. Align engineering progress such as Engineering Required Date (ERD) to achieve the planned construction progress such as Construction Required Date (CRD).

3.

Procurement Execution Philosophy Bidders procurement execution philosophy is to purchase equipment and materials; in conformance with the required schedule, project specifications, quality, Project requirements; and from the project vendor list approved by Employer. Bidders extensive international procurement experience ensures the highest ethical standards are adhered to during all procurement activities and that product quality and performance meet Project requirements. Sourcing will be on a worldwide basis, unless agreed otherwise, and in accordance with the Employer Approved Project Vendor List. This list is a live document and will be continuously updated through the life of the project with new sources submitted for Employer review.

Bidder will limit the number of vendors, thus minimizing investment for stock of spare parts, especially for similar types and groups of equipment, Bidders engineering team will develop technical requisition requirements that ensure alignment and commonality of equipment to the maximum extent practical. Purchasing will be performed on a fast track basis. In particular, the purchasing of long lead items and critical items, such as Jet-A1 Tank, Water Tank, Pump, MOV and Cathodic Protection System will start as soon as possible after Contract Award in order to supply the engineering group with certified vendor data to allow the development of detailed engineering.
4.

Construction Execution Philosophy Bidder recognizes that the ultimate deliverable to the Employer is the timely and efficient handover of the facilities at mechanical completion to suit the commissioning needs. To achieve this, the planning of commissioning and start-up will commence in the engineering phase and continue through procurement into the construction phase. To cope with this plan, Bidder will focus on priority and sequence of the work to complete systems and sub-system in a manner that supports the planned handover schedule. Construction activities are completed and aligned to ensure a smooth transition from an area execution to a system completion method if required. To achieve this, the entire focus of construction will be the safe and timely mechanical and commissioning completion of the plant, in accordance with all the project requirements. 4.1. Home Office Construction Management

Construction planning and constructability studies will be managed by Construction Manager. A construction group will be mobilized in Hanoi office to participate in the overall project planning and conduct the construction activities in conjunction with the engineering and procurement groups. The construction group will also lead finalization of the Construction Master Schedule in line with the Project Master Schedule (PMS) to define the shortest and most efficient path for construction. Home Office Construction Management team will define Construction Required Dates (CRDs) that will set the priorities for the engineering deliverables and delivery of equipment/materials. In particular, they will coordinate their planning with the commissioning group to support the commissioning schedule to ensure the earliest possible hand over of the plant. The construction group will begin, at this stage, the selection of the subcontractors, who must be mobilized in time to participate in the detailed construction planning.

The construction group will also begin the planning of the temporary facilities such as site office, camp accommodation, etc., as required that must be completed very early in the project to support site activities. The other activities associated with Home Office Construction Management will include the following: Finalize the field organization structure and nominate personnel for each position and develop a mobilization plan Review resource loading of construction work force and construction equipment to achieve planned Construction Master Schedule Coordinate with commissioning group and Employer to finalize the handover sequence, the system and sub-system target dates, the commissioning schedule, and acceptance procedures Develop detail of temporary facilities plan to meet project requirements Implement the subcontract plan, inquirers, bidding, selection and qualification of subcontracts required for construction work Provide constructability input Participate in the development of the Project Master Schedule to include Construction Required Dates(CRDs) for engineering deliverables and delivery of equipment/materials Develop field HSE program and procedures Develop field QA/QC program and procedure Develop and implement heavy lift plan and procedures Prepare project specific construction procedures 4.2. Site Operation Management

Construction management will be led by the Site Manager. The Site Manager is responsible for establishing and maintaining a safe work environment for all employees and providing the necessary tools, resources and guidance to complete the project as designed. The main activities associated with the Site Operation Management will be as follows: Lead all construction activities performed on site Implement HSE program to achieve safety goals Avoid adverse health and environmental issues Implement field QA/QC program to achieve quality policy Achieve schedule requirements Manage subcontractors efficiently Coordinate the handover activities Coordinate the systems completion to support commissioning Identify and control interfaces among related parties on construction site Maintain communications with all parties


5.

Pre-commissioning and Commissioning Pre-commissioning, commissioning and performance testing will comply with local safety regulations, Employers safety rules and Bidders safety programs. Experienced engineers will be assigned to the pre-commissioning and commissioning team and they will prepare the pre-commissioning and commissioning procedures carefully to complete the activities safely.

5.2.1

Scope of Work for Pre-commissioning and Commissioning A brief description of Bidders scope of work during pre-commissioning and commissioning is as follows:

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Engineering Stage (1) Preliminary Activities Commissioning engineers will develop the following: (a) Schedule Commissioning engineers will issue a pre-commissioning and commissioning schedule to be incorporated in the overall schedule. (b) Procedures Commissioning engineers will issue the following procedures: Pre-commissioning & Commissioning procedure Performance Test Procedure (c) Operating Manuals Process engineers will prepare the Operating Manuals and commissioning engineers will review and comment on them. (2) Reviewing Engineering Deliverables Commissioning engineers will review the following engineering deliverables with regard to pre-commissioning and commissioning. Process and Utility Flow Diagrams Piping and Instrument Diagrams

Cause and Effect Diagrams Plot Plan Vendor Instruction Sheets Piping Layouts and Plant Model
2.

At Site (1) Preparation Activities Commissioning engineers will prepare the following at site: Detailed pre-commissioning and commissioning procedures, check lists and test sheets Punch list Pre-commissioning and commissioning report formats (2) Execution Activities Commissioning engineers will carry out the following: Mechanical completion witness, such as: Closing up of vessels and drums and tank Non-operational pipe cleaning done by the construction group Line checking before hydrostatic testing Pre-commissioning activities Commissioning activities Performance testing

5.2.2

Pre-commissioning Pre-commissioning comprises those activities carried out to prove that equipment and facilities within a unit or system have been properly installed and tested. Pre-commissioning activities are checks and tests, typically including: Operational cleaning of piping and equipment where necessary Motor solo run

Mechanical run in of machinery Alignment of rotating equipment Lubrication of motors, pumps and gearboxes Control system site acceptance tests (SAT) Instrument loop checking Instrument functional test Flushing of fuel oil line

Especially, the fuel oil line shall be paid attention to be clean during the construction and the flushing work shall be started after the piping inside is confirmed to be clean. A system is Ready for Commissioning (RFC) when all pre-commissioning activities on that system are complete.
5.2.3

Commissioning Commissioning comprises those activities carried out subsequent to RFC and prior to Start-up, which are necessary to prepare equipment and facilities for the first introduction of hydrocarbons. As soon as a portion or the whole of the facilities have been commissioned, Bidder will submit commissioning reports to the Employer for approval.

5.2.4

Handover to the Employer Bidder will apply in writing to the Employer for Certificate of Completion and Provisional Acceptance for any particular portion or the whole of the facilities as appropriate when: Pre-commissioning of complete system Commissioning of complete system Carrying out a successful Performance Test

5.3

Training

5.3.1

General This section presents the criteria based on which Bidder will prepare the Training Program in accordance with Employers requirement. Bidder will provide all training materials, professionals and specialists required for the training. The terms of the training courses will be agreed upon with Employer, at least two (2) months before the beginning of Precommissioning at the Site.

5.3.2

Objectives and Scope of Training Bidder proposes the training program as on-the job training by Vendor specialist during the Commissioning stage. The following training by Vendor specialist will be planned and the trainee assignment will be planned preliminary as shown in Table 5.7-1. Automation System (DCS) Leak Detection System Radar Tank Gauging System Unloading Meter Diesel Engine Generator Switchgear and MCC Access Control System(ACS) Intruder Detection System CCTV System Laboratory equipment Fire Fighting System Coordination of Training Engineering Manager will be responsible for planning, coordinating and supervising the training program fully satisfying the Employers requirements cooperating with Discipline engineer. The Engineering Manager will develop the training program in consultation with the other project groups, such as Construction Groups to ensure integration of schedules and availability of site facilities, and to avoid any interference with site work Precommissioning and Commissioning Groups to ensure coordination of schedules

5.3.3

The Engineering Manager will plan and coordinate the training at a location in site when Vendor specialist comes to site during Precommissioning and Commissioning work.