10015-G01-JG0000-1002 (1)

J3 PROGRAM JAMNAGAR, INDIA

DOCUMENT TITLE: PROJECT EXECUTION PLAN VOLUME 2 of 2

DOCUMENT NUMBER: 10015-G01-JG0000-1002

Client:

Reliance Industries Limited

Location:

Jamnagar, India

Reliance Job No.:

10015

Bechtel Job No.:

25795

Confidential © 2013 2013 Bechtel Limited. Prepared Prepared under c ontract with Reliance Reliance Industries Lim ited. This This do cum ent contains confid ential inform ation and may not be disclos ed reproduced, or used in whole or in part withou t prior written permission from Reliance Industr Industr ies Limited or Bechtel Limited. All rights reserved.

2

24 Jul 2013

Re-issued for Implementation

DJM

DM/MR

MA

1

4 Jan 2013

Issued for Implementation

DJM

SW

MA

Rev

Date

Revision

Prepared By

Checked By

Approved By

Reliance Industries Limited J3 Program

Revision History All previous previous issues are hereby hereby superseded and and are to be destroyed. destroyed. NOTES: Revisions after Rev. 1 are denoted as follows: By a vertical line in the right-hand margin adjacent to the revised text. OR By a triangle symbol for graphics, the revision number being denoted within the symbol positioned adjacent to the revision. Rev.

Date

Revision Details

1

4 Jan 2013

2

24 July 2013

Issued for Implementation Implementation Re-issued for Implementation Implementation with the following changes: Intellectual property statement updated on cover and in page footers Third tier headings removed from table of contents Section 1 “Abbreviations” added and all subsequent sections renumbered (ie previous section 3.2 is now section 4.2) Section 4.1.1: Text deleted and reference made to PEP Volume 1 Sections: 4.2, 4.4, 4.4.1, 4.4.2: Text amended where indicated Sections: 4.12.2, 4.12.3, 4.12.4, 4.13.1, 4.13.2, 4.13.3, 4.13.4, 4.14.3, 4.14.4, 4.14.5, 4.15.1, 4.15.3, 4.15.4, 4.15.5, 4.16.1, 4.16.2, 4.16.3, 4.16.5, 4.17.1, 4.17.3, 4.17.4, 4.17.5, 4.18.2, 4.18.3, 4.18.5, 4.19.1, 4.19.3, 4.19.4, 4.19.5, 4.20.1, 4.20.2, 4.20.2.1, 4.20.2.2, 4.20.2.3, 4.20.2.4, 4.20.3, 4.20.4, 4.20.6, 4.20.7, 4.20.8, 4.21.5, 4.22.5, 5.2.2: Text amended updating discipline write-ups as indicated and references generally added to PWI and Project Automation Plan

Doc. No. 10015-G01-JG0 000-1002 Rev 2 Confidential © 2013 2013 Bechtel Limited. A ll rights reserved

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Table of Contents 1.

Abbreviations ............................................................. .............................................................................................................................. ................................................................... .. 6

2.

Environmental, Safety and an d Health (ES&H) Plan ......................................................................... ......................................................................... 9

3.

4

2.1

Overview/ Work Plan.......................................................... .................................................................................................................. ........................................................ 9

2.2

Policy 111: E nvironmental, Safety & Health .............................................................................. 9

2.3

ES&H Management System ...................................................................................................... ...................................................................................................... 9

2.4

Matrix Organisation – Organisation – Project and Functional Fu nctional ............................................................... .......................................................................... ........... 17

2.5

Procedures (ES&H Core Processes) ....................................................... ....................................................................................... ................................ 17

2.6

Project and Functional Metrics ....................................................... ................................................................................................. .......................................... 17

Quality M anagement Plan .......................................................................................................... .......................................................................................................... 18 3.1

Quality Execution and Objectives ............................................................................................ ............................................................................................ 18

3.2

Bechtel Quality Management System ................................................................... ...................................................................................... ................... 18

3.3

Continuous Im provement and Best Practices ............................................................... .......................................................................... ........... 20

3.4

Project Quality Management System ....................................................... ....................................................................................... ................................ 24

3.5

Project Organisation f or Quality ............................................................................................... ............................................................................................... 25

3.6

Quality Control Programme ........................................................... ..................................................................................................... .......................................... 26

Engineering Plan ......................................................................................................................... ......................................................................................................................... 29 4.1

Overview/ Work Plan.......................................................... ................................................................................................................ ...................................................... 29

4.2

Organisation – Organisation – Project and Functional .................................................................. ..................................................................................... ................... 31

4.3

Procedures ............................................................................................................................... ............................................................................................................................... 31

4.4

Functional Oversight ................................................................................................................ ................................................................................................................ 32

4.5

Scope Baseline and Control .......................................................... .................................................................................................... .......................................... 33

4.6

Schedule Establishment and Tracking .................................................................. ..................................................................................... ................... 34

4.7

Functional Metrics .................................................................................................................... .................................................................................................................... 34

4.8

Best Practices Programme ...................................................................................................... 35

4.9

Quality Programme .................................................................................................................. 35

4.10

Quantity Development and Tracking ................................................................................... ................................................................................... 36

4.11

Value Engineering Programme................................................................................. Programme............................................................................................ ........... 36

4.12

Engineering Management .................................................................... .................................................................................................... ................................ 37

4.13

Project Engineering ....................................................... ............................................................................................................. ...................................................... 38

4.14

Process Engineering ............................................................................ ............................................................................................................ ................................ 41

4.15

Process Safety ..................................................................................... ..................................................................................................................... ................................ 43

4.16

Environmental ...................................................................................................................... 46

4.17

Mechanical Engineering ............................................................ ...................................................................................................... .......................................... 49

4.18

Materials Engineering E ngineering Technology ...................................................................................... 52

4.19

Civil, Structural and Architectural ........................................................ ........................................................................................ ................................ 54

4.20

Plant Design and Piping ...................................................................................................... ...................................................................................................... 57

4.21

Control Systems and Instrumentation Instrum entation ................................................................................. 60

4.22

Electrical and Telecommunications ..................................................................................... ..................................................................................... 64


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4.23 5

Document Management ...................................................................................................... 70

Procurement Plan ....................................................................................................................... 72 5.1

Overview/ Work Plan................................................................................................................ 72

5.2

Matrix Organisation .................................................................................................................. 73

5.3

Procedures ............................................................................................................................... 83

5.4

Functional Oversight ................................................................................................................ 85

5.5

Scope Baseline and Control .................................................................................................... 85

5.6

Schedule Establishment and Tracking ..................................................................................... 86

5.7

Functional Metrics .................................................................................................................... 86

5.8

Best Practices Programme ...................................................................................................... 87

5.9

Quality Programme .................................................................................................................. 88

5.10 6

Material Assignment Schedule (MAS) and Division of Responsibility (DOR) ..................... 89

Contract Management Plan ........................................................................................................ 91 6.1

Summary .................................................................................................................................. 91

6.2

Scope Baseline and Control .................................................................................................... 92

6.3

Commercial Awareness ........................................................................................................... 92

6.4

Contract Management Files ..................................................................................................... 93

6.5

Correspondence Control .......................................................................................................... 93

6.6

Contract Closeout .................................................................................................................... 93

6.7

Contracts Assignment Schedule .............................................................................................. 94

7

Construction ................................................................................................................................ 94 7.1

Construction Overview & W ork Plan ........................................................................................ 94

7.2

Organisation............................................................................................................................. 95

8

Start-up and Commissioning ..................................................................................................... 95 8.1

9


Project Controls Plan .................................................................................................................. 96 9.1


9.2

Matrix Organisation – Project and Functional .......................................................................... 97

9.3

Procedures ............................................................................................................................... 99

9.4

Functional Oversight ................................................................................................................ 99

9.5

Project Controls Software Applications .................................................................................. 101

9.6

Schedule Tools/ Programme ................................................................................................. 103

9.7

Cost Tools / Programme ........................................................................................................ 106

9.8

Change Control ...................................................................................................................... 109

9.9

Project Controls Systems Integration ..................................................................................... 111

9.10

Best Practices Programme ................................................................................................ 117

9.11

Quality Programme ............................................................................................................ 117

9.12

On Project Reporting/ Reviews.......................................................................................... 117

10

Information and Systems Technology (IS&T) ........................................................................ 118

10.1

IS&T Organisation ............................................................................................................. 118

Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

Page 4 of 129


10.2

Project IT Manager within the Project Organisation .......................................................... 118

10.3

Project Services Network (PSN) ........................................................................................ 119

10.4

Project Phases ................................................................................................................... 120

10.5

Procedures......................................................................................................................... 125

11

Project Administration Plan ..................................................................................................... 125

11.1

General .............................................................................................................................. 125

11.2

Communication .................................................................................................................. 126

12

Project Closeout Plan ............................................................................................................... 126

12.1

General .............................................................................................................................. 126

12.2

Engineering Project Closeout Plan .................................................................................... 127

12.3

Procurement Project Closeout Plan .................................................................................. 127

12.4

Contracts............................................................................................................................ 129

12.5

Final Acceptance ............................................................................................................... 129


Page 5 of 129


1.

Abbreviations APE

Area Project Engineer

BEC

Bid Evaluate Commit

BoD

Basis of Design

BPS

Bechtel Procurement System

BSAP

Bechtel Standard Application Program

C&E

Cause & Effects

CAD

Computer Aided Design

CAR

Corrective Action Report

CAS

Contracts Assignment schedule

CCS

Compressor Controls System

CDU

Crude Distillation Unit

CE

Chief Engineer

CES

Centrally Engineered Systems

CFD

Computational Fluid Dynamics

CFP

Clean Fuels Project

CP

Core Process

CPP

Captive Power Plant

CSA

Civil/Structural/Architectural

DCC

Document Control Centre

DCCL

Design Control Check List

DCN

Design Change Notice

DCS

Distributed Control System

DOR

Division of Responsibility

DRN

Design Review Notice

DTA

Domestic Tariff Area

E&I

Electrical & Instrumentation

EDMS

Electronic Document Management System

EDPI

Engineering Department Procedure Instruction

EGS

Engineering Group Supervisor

EIA

Environmental Impact Assessment

EMS

Energy Management System

ENVID

Environmental Hazard Identification

EP

Engineering & Procurement

EPC

Engineering, Procurement & Construction

EPPR

Engineering Progress & Performance Report


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ES&H

Environmental, Safety & Health

FAT

Factory Acceptance Test

F&G

Fire & Gas

FCC

Fluid Catalytic Cracking

FEED

Front End Engineering Design

GBU

Global Business Unit

GEC

Global Execution Centre

HAZID

Hazard Identification

HAZOP

Hazard & Operability Study

HPIB

High Purity Isobutylene

HSE

Health, Safety & Environmental

HVAC

Heating Ventilating & Air Conditioning

IFC

Issued for Construction

IFH

Issued for HAZOP

IIR

Isobutylene Isoprene Rubber

IS&T

Information Systems & Technology

ISO

International Organisation for Standardisation

IT

Information Technology

ITP

Inspection & Test Plan

IW

InfoWorks

JERP

Jamnagar Export Refinery Project

KASE

Key Activities for Successful Execution

KPI

Key Performance Indicator

LAN

Local Area Network

LDT

Line Designation Table

LOEU

London Execution Unit

LOPA

Level of Protection Analysis

MAS

Material Assignment Schedule

MCMC

Machine Conditioning Monitoring System

MEC

Mumbai Execution Centre

MET

Materials Engineering Technology

MoE

Manager of Engineering

MoM

Minutes of Meeting

MR

Material Requisition

MRP

Material Requisition for Purchase

MRQ

Material Requisition for Quotation

MTO

Material Take Off


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O&M

Operations & Maintenance

OG&C

Oil Gas & Chemicals

ORRT

Operational Readiness Review Team

Os & Us

Offsites and Utilities

PD&P

Plant Design & Piping

PEM

Project Engineering Manager

PEP

Project Execution Plan

PFD

Process Flow Diagram

P&ID

Piping & Instrument Diagram

PIP

Process Improvement Project

PITM

Project IT Manager

PM

Project Manager

PMC

Project Management Consultant

PMS

Power Management System

PMT

Reliance / PMC

PO

Purchase Order

PPM

Project Procurement Manager

PQAM

Project Quality Assurance Manager

PQP

Project Quality Plan

PSN

Project Services Network

PSQS

Project Supplier Quality Supervisor

PWI

Project Work Instruction

QA

Quality Assurance

QC

Quality Control

QRA

Quantitative Risk Analysis

RAM

Responsibility Assignment Matrix

RDB

Reference Database

RE

Responsible Engineer

SEZ

Special Economic Zone

SGA

Strategic Gap Analysis

SIL

Safety Integrity Level

SQS

Supplier Quality Surveillance

SRU

Sulphur Recovery Unit

TIC

Total Installed Cost

UPS

Uninterruptible Power Supply

VAM

Vinyl Acetate Monomer

VMP

Value Maximisation Project


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2.

WAN

Wide Area Network

WBS

Work Breakdown Structure

Environmental, Safety and Health (ES&H) Plan 2.1

Overview / Work Plan

“Bechtel is committed to protecting the health and safety of individuals affected by our operations as well as the environment in which we live and work. Our commitment extends to improving the standard of living and quality of life in the communities where we do business. This commitment means adhering to the highest ethical standards, standing behind everything we do, and insisting on strict safety, health, and environmental procedures to protect our workers and their families.” - Riley Bechtel Chairman and Chief Executive Officer As emphasised above, Bechtel recognises the importance of achieving world-class performance with respect to protection of safety, health, and the environment on all projects. Achieving and sustaining zero accident performance is a key Bechtel objective and important company value. Accordingly, the purpose of this plan is to provide a high level overview of the ES&H policy, management system and supporting programs that guide us toward achieving our zero accident goals.

2.2

Policy 111: Environmental, Safety & Health

Bechtel maintains Bechtel Policy 111 (Environmental, Safety & Health) (ES&H Policy), which stems from Bechtel Vision and Values statement contained within our Corporate Manual. The ES&H Policy reflects management’s commitment to protect the health and safety of our employees, partners’, contractors, customers, communities where we work and the environment. Management Instruction 111.01 (Environmental, Safety and Health) provides guidance for implementing the ES&H Policy and requires the implementation of an integrated ES&H Management System. Our ES&H policy is implemented through programs and documents described our integrated ES&H Management System.

2.3

ES&H Management System

Bechtel understands that a systematic approach to management is necessary to achieve excellence in ES&H execution on the project. Accordingly , Bechtel’s ES&H Management System was established to assure consistency in governance, uniform application of standards (such as the Bechtel Core Processes), and common approaches to ES&H risk management over the full life cycle of project development and execution. The ES&H Management System clearly shows the company’s commitment to the ES&H Policy and is designed to integrate worker protection, prevention of illness and injury, environmental protection, pollution prevention, and continual improvement into work planning and execution.


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The ES&H Management System programme addresses the core elements of International Organisation for Standardisation (ISO) 14001:2004 (Environmental management systems – Requirements with guidance for use) and Occupational Health and Safety Advisory Services (OHSAS) 18001:2007 (Occupational health and safety management systems - Requirements.) The ES&H Management System is divided into ten primary elements. These ten elements and the basic principles and requirements associated with each element of the ES&H Management System are summarised in the following subsections. 2.3.1

Element 1 – Leadership and Commitment

Bechtel recognises that personnel holding management responsibilities have direct influence over employee perception of t he project’s safety goals, mission and values. It is imperative that personnel in leadership roles are held accountable for the safety culture and performance within their areas of responsibility. Bechtel’s ES&H line management (e.g., from senior project manager through craft supervisor) will demonstrate active engagement in the project’s ES&H pr ogramme and will team with Reliance to provide a supportive and nurturing environment in order to grow the project’s ES&H culture. Project management will cascade ownership of the ES&H programme and culture through all levels of leadership. Employees at all levels will have active ownership of the ES&H culture. Principles

Requirements





Senior management demonstrates visible commitment to the ES&H Management System.



Project Management promotes excellence in ES&H.



Employees participate in and are committed to the ES&H Management System.



Leadership, employees and contractors are held accountable for the success of the ES&H Management System.

Top-down commitment and enabling Bechtel culture are essential to the success of the ES&H Management System on the project.

2.3.2

and

rewards

Element 2 – Strategies and Objectives

Clearly stated strategies and objectives, requirements and standards with respect to ES&H are developed, communicated, supported, and regularly reviewed to assure integration into Bechtel’s businesses. Bechtel is committed to “Zero Accidents,” and strives to achieve and sustain this degree of ES&H performance throughout all levels of the company during the development and execution of work. The Zero Accident philosophy establishes the corporate level ES&H objective and target. To implement this value, Bechtel maintains several procedures to describe the methods for establishing, implementing, and maintaining objectives and targets, as well as the programs necessary to achieve established objectives and targets, at all relevant levels of the company (i.e., corporate, Global Business Unit (GBU), and project). Key Performance Indicators (KPIs) are developed and monitored to ensure alignment with key business objectives. As part of its ES&H management review function, Bechtel ES&H management reviews the status of ES&H objectives, targets, and programs whenever new developments, or new and/ or modified activities or services commence to guide any modifications and direction for future objectives and targets. The status of objectives and targets are tracked on a regular basis (at least quarterly Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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or as otherwise appropriate). When appropriate, objectives and/ or targets are modified to adjust to circumstances such as modification in strategic direction, operations, or funding. Principles

Requirements





The ES&H policy is communicated, updated and supported.



ES&H strategies are identified, supported, and updated.



ES&H objectives, goals and targets are established for the project.



ES&H (KPI) are developed for the project.

Clearly stated strategies and objectives, requirements and standards with respect to ES&H are developed, communicated, supported, and regularly reviewed to assure integration into project execution.

2.3.3

Element 3 – Organisation and Resources

The ES&H Support Functions organisation is responsible for coordinating actions required to develop, maintain, and continuously improve the ES&H Management System. Project ES&H managers and managers of support organisations are responsible for implementing and ensuring ES&H requirements are met during the course of conducting business. Refer to section 1.4 for additional information regarding organisational resources. Principles

Requirements





ES&H roles and responsibilities are communicated, and documented.



Managers coordinate and implement the ES&H Management System within their areas.



Process exists to communicate the importance of the ES&H Management System and its requirements.



A system exists to manage ES&H documentation.

People, resources and documents are organised to assure excellent ES&H performance.

2.3.4

defined,

Element 4 – ES&H Risk Management

Systematic identification of hazards and on-going management of ES&H risks are critical to minimise incidents and liabilities. Bechtel maintains several procedures that relate to risk assessment and implementation of controls, such as Project Development and Planning Process (PDPP); Safety Task Analysis and Risk Reduction Talk (STARRT); Job Hazard Analysis (JHA) and Readiness Risk Assessment (RRA) that describe the standard readiness risk assessment planning process and provides a tool for improving the state of readiness for project construction, including the reduction of risk to the customer’s business or the potential for adverse impacts.


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During detail engineering Bechtel will conduct constructability reviews, incorporate safety in design and perform hazard studies including integrated hazard identification (HAZID). The general objective of the HAZID is to identify and record potential health, safety and environmental hazards associated with the design of a facility. Each study is wide ranging and considers future project phases. Commercial issues (e.g. costs) are not an objective of the HAZID process and are specifically excluded. Within Bechtel, the HAZID is a function of process safety engineering who reports to the PEM and coordinates with the ES&H manager to ensure that the process safety, fire protection, and fire and gas detection aspects are identified during the detailed design phase of the project. Principles

Requirements





System(s) exists to identify ES&H hazards and manage risks.



Process exist evaluate project ES&H risks and identify required resources.



A standardised risk matrix is applied.



Procedures exist for selection and implementation of measures to prevent ES&H incidents and mitigate hazards.



Hazards and their mitigation are communicated and documented.



Work place exposures are systematically identified and managed.



Qualified personnel are used in risk assessments.



Risk assessments are updated.

Identification of hazards and on-going management of ES&H risks associated with business activities and operations are critical to minimise incidents and liabilities.

2.3.5

Element 5 – Planning

Proper planning is the foundation for achieving Bechtel’s vision, values, ES&H Policy, and the requirements of the management system. The elements of the ES&H Management System address the entire planning workflow for projects from invitation to bid to closeout and turnover to the customer as well as the operational and maintenance services we provide to customers. Each work activity with the potential to significantly impact human health or the environment or are associated with identified hazards are planned to control the specific ES&H concerns. Controls may include procedures or other controlled documents, control equipment, engineering design, or other controls during planning. For those activities that have a potential for a new significant impact or new identified hazard, separate operational control procedures may need to be developed. In addition to pre-job planning, Bechtel maintains a procedure to describe the actions personnel should take in an emergency situation and provides direction on how and when to appropriately activate notification and emergency procedures. These actions, when followed, will minimise personnel exposure to potentially dangerous situations and minimise property damage. Principles

Requirements





Proper planning is the

Plans to achieve ES&H objectives are developed


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foundation for achieving Bechtel’s vision, values, ES&H Policy, and the requirements of the management system.

2.3.6

and maintained. 

Internal and external ES&H requirements are identified and communicated.



ES&H standards, practices, procedures and/or work instructions are developed and maintained for project use.



A system is developed to assure the integrity of ES&H critical assets.



A system is developed to manage all permanent and temporary changes.



A system exists to prepare for potential emergency situations.



Communications plans are maintained to respond to internal and external stakeholder comments.

Element 6 – Employee Competency and Management of Behaviour

Proper selection, placement, development (including training) and assessment of employees are necessary for maintaining and improving ES&H performance. Bechtel maintains a Core Process document (Orientation, Training and Development) which establishes a mechanism for projects to ensure that initial ES&H training needs are provided to Bechtel employees and subcontractors on the ES&H plan. This process provides for the identification and fulfilment of ES&H training needs, including continuing education, awareness of the importance of conforming to the ES&H Plan and potential consequences of departure from specified procedures. As a subset of the ES&H plan, Bechtel will develop an ES&H training plan which identifies training and education requirements for the project. It will specify training requirements for all personnel assigned to work on the project. The plan will be based on the project’s natural progression focusing training efforts where and when needed. The plan will identify the courses, workshops, instructors and other similar items necessary to execute the plan. A project-specific training matrix will be developed to address site specific training requirements (i.e., project orientation, working at heights, confined space entry, selfcontained breathing apparatus training, etc.) and training requirements for each level of line organisation (i.e., training for site managers, line supervision and employees). Records of onsite employees who have undertaken training, designation of competent persons and competence assurance methods will be documented onsite and within a project ES&H training plan. Principles

Requirements





ES&H competency programs and procedures are established and maintained.



A system is in place to train employees for jobspecific requirements.



People Based Safety (PBS) programme and procedure developed and implemented.

Selection, placement, development (including training), and assessment of employees are necessary for maintaining and improving ES&H performance.


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2.3.7

Element 7 – Working with Customers

Bechtel is committed to communicating ES&H information and f ully disclosing issues to the customer as well as to the appropriate regulatory agencies. Other external relationships, including communities, regulators, visitors, and other stakeholders are also important to safe, healthy, and environmentally sound operations and must be considered in procedures, programs, and systems. Bechtel will partner with Reliance throughout all stages of the project in order to create an integrated project culture (Reliance, Bechtel and any other 3 rd party contractors) that is protective of the health, security and safety of the project workforce and the environment in which project operations occur. Bechtel will conduct alignment workshops with Reliance in order to fully understand the similarities and differences between Bechtel’s ES&H system , those of any 3rd party contractors and Reliance’s approach to ES&H management. The alignment workshops will help to ensure that the project’s zero accident culture is established early in the project life cycle in order to achieve maximum effectiveness. These workshops will serve to identify ES&H system, process and procedural gaps between Bechtel, Reliance, any 3 rd parties and local regulatory requirements. Principles

Requirements





Conduct alignment of ES&H cultures, programs, and procedures.



Pre-bid evaluation of inherent ES&H risks.



Definition of ES&H interfaces between Bechtel and the customer to assure communication of risks and expectations.



Customer participation in ES&H planning sessions and major project milestones.



Open sharing and exchange of ES&H information and technology exists between the customer and Bechtel.



Close out meetings to transfer ES&H materials.

Customers are fundamental to Bechtel’s success in managing ES&H performance, as they establish their set of expectations for performance, and control the conditions under which we work.

2.3.8

Element 8 – Working with Contractors and Others

Because of the control they hold over delegated work, subcontractors must be evaluated, selected and held to the same ES&H standards and expectations as Bechtel units and employees. Bechtel has a documented process for selection of main subcontractors who are committed to ES&H and can safely deliver an environmentally sound, quality job on time and within budget. To address subcontractor management related to ES&H requirements, Bechtel maintains a Core Process (Subcontractor Evaluation, Selection and Monitoring) to define the ES&H criteria and process to be applied to subcontractors. In order to achieve effective subcontractor control, Bechtel will implement Bechtel’s comprehensive subcontractor qualification and control process to ensure that subcontractors are aware of and comply with Client, project and regulatory requirements. Bechtel views subcontractor controls as a three-phase process, specifically pre-contract, active contract and post-contract.


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During subcontractor selection and in accordance with established procedures, Bechtel will formally pre-qualify each proposed bidder from an ES&H perspective to ensure that only those contractors capable of meeting the project’s ES&H expectations are invited to bid. Evaluations will focus on past performance, the strength of their management system, competency of ES&H candidates, how the contractor verifies and maintains employee competence and reference checks. In addition to the typical reactive measures (total recordable and lost time frequency rates, etc.), Bechtel will monitor contractor performance and compliance through scheduled worksite inspections and scheduled audits. In some situations, the selected subcontractor may further subcontract work to other contractors. In these cases, Bechtel’s subcontractor is required to follow the Bechtel screening process and classify their subcontractors accordingly.

Principles

Requirements





Implement programme to evaluate and select services and suppliers using ES&H risk and competency.



Contractor evaluation and selection criteria include assessment of ES&H performance records, capabilities, and adequacy of ES&H Management System.



Procedures exist to inform contractors of known ES&H hazards and risk mitigation.



Procedures exist to assure that contractor’s work aligns with Bechtel’s ES&H Management System.



Interface procedures exist between Bechtel and its contractors.



Critical vendors and contractors are audited and assessed.



Feedback from contractors.



A system exists to recognise and respond to stakeholder expectations.



Visitors are given orientation on risks.



Contractors must be evaluated, selected, and held to the same ES&H standards and expectations as Bechtel units and employees. External relationships are important to sound operations and must be considered in procedures, programs, and systems.

2.3.9

assessments is

shared with

Element 9 – Implementation and Monitoring

Bechtel uses an assessment process for gathering reliable data through inspection, observation and inquiry to identify programme strengths as well as opportunities for improvement. The assessment process is a proactive measure of performance that monitors conformance with the ES&H programs, processes and controls. Documented processes are in place which delineates requirements for supervisors, project representatives, and site managers relative to assessing the work processes within their respective area for unsafe conditions, practices and at risk behaviour at periodic and specified frequencies. Bechtel monitors ES&H performance through the tracking of incidents (injuries, illnesses, environmental incidents, near misses, property damage, utility hits/ service


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interruptions and government actions) on Bechtel projects world-wide using WebSDS, an in-house developed web-based incident tracking database. Principles

Requirements





A process exists to assure activities are conducted according to internal and external requirements.



Management assures activities are performed in accordance with relevant procedures, work instructions, and other requirements.



ES&H performance is monitored and documented.



Procedures exist for recording accidents, and reporting of ES&H incidents and near misses.



Processes for design, construction, operation, and maintenance of facilities and projects are documented.

Effective performance, regular monitoring, and self-assessment of project activities are fundamental to protection of people and the environment.

2.3.10

Element 10 – Auditing and Reviewing

Bechtel will conduct regularly scheduled ES&H assessments and inspections that address compliance with applicable regulations and other requirements such as Bechtel and project specific procedures. Results of these inspections will be recorded and detailed and summary reports. Bechtel Corporate also performs special, or focused, assessments. These assessments may be conducted as a full assessment of the project’s entire ES&H programme. In addition to planned assessments, assessment may be conducted as a result of poor project ES&H performance, exceptional project ES&H performance, increasing level of risk associated with project work, or other reasons, as may be determined. Items/activities that exhibit exemplary compliance or an innovative approach to ES&H processes will also be identified during the assessment process. Principles

Requirements





A process exists to assess the effectiveness of the project’s ES&H programme.



Frequency and scope of ES&H audits are determined by risk, complexity of the activity, and historical performance.



A system exists that documents and resolves audit and assessment findings.



Senior management regularly reviews and improves upon the project’s ES&H programs, plans, and procedures.



Processes exist for ES&H monitoring data to be regularly reported.

Regular assessment of the management system for effectiveness and suitability assures improvement and ability to meet Bechtel’s needs and those of its stakeholders.


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2.4

Matrix Organisation – Project and Functional

Within Bechtel, ES&H is a line management responsibility and the senior project manager delegates authority to the project leadership team to execute the work, ensuring that people and the environment are protected. Accordingly, the ES&H champion is the senior project manager, who has the ultimate responsibility for ES&H and is charged with providing the leadership, commitment, management system endorsement and financial resources to make ES&H success a reality. To ensure the clear unobstructed flow of information to the executive management, the project ES&H manager reports directly to the senior project manager with a functional reporting line back to the business unit ES&H manager. The project ES&H manager will support the effort by developing and coordinating the implementation of the ES&H management plan, which establishes the overall ES&H direction that the project will take. The ES&H management plan and subordinate plans and procedures will meet Bechtel, Client and regulatory requirements. This plan will be cascaded to all subcontractors in order to align their ES&H culture with that of the project. The project’s ES&H philosophy, policy, plans and procedures will guide Reliance, Bechtel and 3 rd party contractor partnerships in achieving world class results through implementation of world-class methods. The project ES&H manager supports the project by serving as an advisor to the construction manager, auditing compliance to Bechtel ES&H plan and other projectspecific ES&H plans, analysing performance results and identifying actions that will strengthen project HSSE processes.

2.5

Procedures (ES&H Core Processes)

To address operational ES&H requirements, Bechtel has developed a comprehensive ES&H manual, which is comprised of a series of documents identified as the Bechtel ES&H Core Processes. The Core Processes are the corner stone for the establishment of a world class project and have been developed as a best in class set of instructions that represent numerous years of development and are consistent with internationally recognised best practices. The Core Process documents specify the minimum acceptable requirements to be followed on Bechtel Projects worldwide, regardless of country of operation and/or Global Business Unit. The ES&H Core Processes are in place to assist Project Management in the safe execution of the work to be performed. The Core Processes are divided into four series of documents, each focusing on a different ES&H area or discipline. Series 100 has the ES&H Policies and Programs. Series 200 is Safety Regulations and Standards. Series 300 has Medical, Health, and Hygiene Requirements, and Series 400 has Environmental Regulations and Standards. These CP’s are continually reviewed, maintained and updated to capture lessons learned.

2.6

Project and Functional Metrics

Each project is required to develop a project ES&H dashboard of project-specific metrics identified as key performance indicators (KPIs). These indicators align with those of the OG&C GBU to allow rollup of these indicators. Among the KPIs for each project are leading indicators such as behavioural data, supervisory engagement, closure of ES&H actions, and health metrics. These coupled with incident frequency rates form the basis for performance monitoring.


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KPIs are identified and maintained for each project phase and results are shared with project stakeholders. Project metrics support delivery of client and Bechtel corporate objectives. Bechtel tracks ES&H performance for the company as a whole and includes contractor performance in its project and corporate statistics.

3.

Quality Management Plan 3.1

Quality Execution and Objectives

The objective of the Bechtel OG&C quality management system is to put in place the necessary controls, to ensure that reliable and efficient quality products and services that meet specified requirements are provided, and to maximise the delivered value to the client. The quality management system implemented by Bechtel OG&C complies with internationally recognised standards and is based on proven industry working practices and processes for the execution of engineering, procurement and construction projects. The quality execution strategy for the project will be centred on the unambiguous definition and effective communication of the quality assurance and quality control philosophy and requirements through the quality management system for the project at the commencement of activities and the verification of effective implementation and compliance with the stated requirements. The project quality objectives are to efficiently satisfy project and contract requirements and statutory regulations and requirements with regard to safety, fitness for use, performance, and reliability of the facilities. In supporting the execution strategy and quality objectives, the project quality management system will comprise the work procedures, instructions, work processes, and activities to be implemented across the project throughout engineering, procurement, and construction to ensure compliance with the stated requirements and will be defined in the project quality plan.

3.2

Bechtel Quality Management System

The Bechtel OG&C quality management system has been certified by Det Norske Veritas (DNV) in accordance with DNV accreditations from the ANSI-ASQ National Accreditation Board (ANAB) to meet the requirements of the International Organisation for Standardisation (ISO) Standard 9001 Quality management systems – Requirements. The scope of the certification includes worldwide project management, engineering, procurement, construction, and commissioning services. The requirements of the quality management system apply to all personnel who manage, perform, and verify work affecting quality, whether employed directly or indirectly by Bechtel OG&C. Bechtel OG&C has the responsibility of ensuring that organisations performing work on behalf of Bechtel OG&C have a quality system that meets the requirements of the Bechtel OG&C quality management system, applicable to the scope of services being provided. The Bechtel OG&C Quality Management System Manual contains the quality policies and defines Bechtel OG&C commitment to ISO 9001 and the overall structure of the quality management system. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The structure of the documented quality management system is shown overleaf and is a three-tier system comprised of the following: Quality Management System Manual – Level 1 The Quality Management System Manual contains the quality policies and defines Bechtel’s commitment to ISO 9001 and the overall structure of the quality management system. Integrated Execution Procedures – Level 2 The integrated execution procedures identify the “who” and the “what” regarding how the policy commitments will be met and the division of responsibility for the implementation of the quality management system. Work Instructions – Level 3 (Corporate, GBU, Office, Project-specific) The work instructions identify the “how”, describing the various standard work practices and procedures utilised to execute work activities for the overall quality management system. Specific Project Work Instructions (PWIs) may be developed using Bechtel’s existing proven, standard procedures and instructions and incorporating any contract-specific requirements. The applicability of the quality management system to the project will be defined in the project quality plan and implemented by the applicable office- and project-specific procedures and work instructions. Specific contractual requirements between Bechtel and the client will be incorporated in the project quality plan. Project Quality Plan The project quality plan will be developed and issued for use on the project early in the opening phase. The plan will provide an outline of the overall framework of the project quality management system, project-specific requirements, project organisation, and division of responsibilities for the implementation of the Bechtel OG&C Quality Management System Manual policies. The project quality plan will apply to activities performed by Bechtel in the management and control of products and services provided in support of the project and will be revised as necessary to reflect the transition through the phases of the project. The applicable requirements of the plan shall be passed on to Bechtel suppliers and subcontractors, to the extent required, to ensure the quality of products and services provided.


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Bechtel Quality Management System

ISO 9001

Level 1

Level 2

Level 3

3.3

QUALITY MANAGEMENT SYSTEM MANUAL

INTEGRATED EXECUTION PROCEDURES

WORK INSTRUCTIONS

Corporate procedures Department manuals Department procedures

Continuous Improvement and Best Practices

Tools contained in the Bechtel OG&C ISO 9001 quality management system that contribute to quality management system measurement, analysis, and improvement include: 

Results of internal audits and assessments



Output from management reviews



Customer surveys



Inspections and tests



Corrective and preventive action

Bechtel has fully embraced the Six Sigma methodology to drive work process improvement and ensure continued process stability and long-term sustainability. The Six Sigma approach drives the use of the following methodologies to address the various issues that impact Bechtel’s performance: 

Preventing the causes of performance problems



Proactive behaviour



Data-based decision making



Long-term planning



Mandated training



Benchmarking and metrics


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In addition, best practices from previous projects are captured and recorded in a database for future reference. The review and incorporation of best practices from previous projects will be an integral part of front-end planning effort on projects. 3.3.1

Six Sigma 3.3.1.1

General

The OG&C GBUs Six Sigma execution strategy is f ormulated specifically to attain the goals and objectives delineated in the OG&C GBUs Strategic Gap Analysis. In the OG&C GBU, functions own all core processes. Each function is responsible for ensuring that its core and supporting work processes are properly documented and maintained, and that all projects implement the applicable core work processes during project execution. Each function is accountable for the capabilities of its core work processes and subsequent continuous improvements. Projects are accountable for the effective and efficient execution of work processes applicable to the scope of work. The applicable core process shall be identified in the quality management system for the project and will be subject to compliance audits. Projects are also responsible for identifying potential improvement opportunities through the identification and development of new process improvement projects (PIPs). Projects will measure process effectiveness by reporting operational data resulting from implemented process improvements. The Six Sigma programme provides a framework for both functions and projects to analyse, improve and monitor work process capabilities. This document describes OG&Cs overall Six Sigma execution strategy which is composed of, but not limited to, the following topics: 

Strategic Gap Analysis



Six Sigma Execution Strategy 3.3.1.2

Project Strategic Gap Analysis (SGA)

The Project Six Sigma execution strategy begins with identifying and prioritizing opportunities early in the FEED listed in the project strategic gap analysis (SGA). The SGA is performed by the Project Management Team (PMT), including our customer, and supported by other off-project expertise as required. The SGA is revisited and updated as necessary throughout the life of the project.


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The SGA integrates client and Bechtel processes to leverage institutional knowledge. On-project Champions and Yellow Belts, together with Functional process owners, will frame business cases around the areas of opportunity identified through the SGA. Implementation of these business cases will result in work process and execution improvements, which will help to drive down project costs. 3.3.1.3

Execution with Six Sigma

The Six Sigma methodology and tools will be used to synergize cultures and close project gaps using data-driven rational decisions to ensure operational gains. The Project Management Team (PMT) has the responsibility for initiating and managing Six Sigma on the project and is held accountable for the bottom line results. Following completion of the SGA, the identified synergies are captured in project procedures, work process flow charts and/or Best Practices. These requirements are then communicated to the project team through Level I training and orientation sessions. Similarly, identified gaps are evaluated and steps taken to close them, but closing gaps may require one or more of the following: 

Where the solution is obvious and requires no further evaluation or analysis, Project Manager and Direct Reports

Champion or Assigned Manager

Process Owner, Process Manager, or Yellow Belt

Identify the issues and Performance Areas (Step 1)

Prioritize the issues (Step 2)

Select the Metric (Step 3)

Measure the Gaps (Step 4)

LInk processes to issues (Step 5)

Select the Action to Resolve the Issue (Step 6)

Six Sigma

Develop Business Cases to Address Gaps (Step 8)

Non Six Sigma

Develop an Action Plan to Resolve Issues (Step 7)

Periodically Review Performance (Step 10)

Implement the Actions to Resolve Issues and Close Gaps (Step 9)

Monitor the Resolution of Issues and Closure of Performance Gaps (Step 10)


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the team will “just do it”. 





Where good information is available, but further evaluation and analysis is required, a Six Sigma Black Belt will be assigned to perform the required analysis and recommend improvements. Where new work processes or further development of any existing work process or additional data is required, a Process Improvement Project (PIP) Team will be formed, led by an on-project Yellow Belt and supported by the project Black Belt and Functional groups as necessary. Where improvements are identified by off-project Functional PIPs, or PIPs on other projects, those improvements will be incorporated on the project, caveat always that technology and intellectual property issues are protected.

In all of the above situations, improvements are captured in procedures, work process flow charts and/ or Best Practices. 3.3.1.4

Process Improvement Project (PIP) Teams

PIP teams are on-project groups of selected people assigned to tackle the high risk or critical areas identified through the strategic gap analysis. The teams are sponsored by a certified Champion, usually a member of the Project Management Team, and are led by certified Yellow Belts. Black Belt and Functional support is available as required. When necessary, third parties such as suppliers are asked to participate as well when the gap involves external interfaces. Client personnel are included on the teams at every opportunity. The PIP teams will develop a clear problem statement and objective. The teams’ ultimate objectives will be to implement solutions that will reduce costs, mitigate risk, and improve EPC performance and execution. The most senior Bechtel Project Manager, on the project, is accountable for following through on all Six Sigma activities and accounting for project savings. These savings are reported internally in Bechtel and are captured on the project through the project trend programme. 3.3.1.5

On-Project Six Sigma Training

The project will enable personnel by investing in appropriate training to enhance knowledge, establish capability and ensure a result-driven application of the Six Sigma methodology. Due to the training already completed in Bechtel, a significant number of personnel assigned to the project will already be trained or certified Champions and/or Yellow Belts. Additional training will be provided as follows: 







PMT members will be (or will become during the course of the project) Champions and they will act as the on-project sponsors of the PIPs and other Six Sigma activities. Other Lead personnel in the Functions or Engineering Disciplines will be Yellow Belts and will lead the on-project PIP teams. Other team personnel are oriented on the project-specific Six Sigma requirements through Level I training and/or orientation sessions. Client personnel are welcome to attend these sessions.

Training is on-going throughout the life of the project and personnel are nominated for Yellow Belt and Champion training as required to support project objectives. Candidates are a broad range of project staff from DCC through to construction supervisors. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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3.4

Project Quality Management System

The quality management system for the project, as shown in the diagram overleaf, will provide an effective means of ensuring that services and products provided by Bechtel conform to contract requirements. The project quality management system will place a heavy emphasis on the prevention of problems rather than a dependence on detection once problems have arisen. Key to this proactive approach will be the orientation of project personnel in the requirements and the implementation of the project quality management system, supplemented by specific and pinpointed training. Following contract award, Bechtel OG&C will prepare the project quality plan covering the initial phase of the project. The project quality plan will apply to activities performed by Bechtel in the management and control of products and services provided in support of the project and as specified in the contract, see 10015-G69-JG0000-1301 – Project Quality Plan. This plan will be evolved as the project transitions from phase to phase. The plan will provide an outline of the overall framework of the quality management system, project-specific requirements, project organisation, and division of responsibilities for the implementation of the Quality Management System Manual policies. The applicable requirements of the plan shall be passed on to Bechtel suppliers and subcontractors, to the extent required, to ensure the quality of products and services provided. Project procedures and instructions will be identified and developed to address the scope of services and activities performed. The project quality plan, along with associated project and discipline work procedures and instructions, will form the documented quality management system of the project. The project quality management system will draw upon the best practices and standard work processes of all parties to create a fully integrated system of procedures and work instructions for controlling the products and services being provided under the scope of the contract. Project Quality Management System

CONTRACT REQUIREMENTS ISO 9001

QMS MANUAL (LEVEL 1)

PROJECT QUALITY PLAN

INTEGRATED EXECUTION PROCEDURES (LEVEL 2)

WORK INSTRUCTIONS (LEVEL 3)

WORK INSTRUCTIONS (FABRICATORS) PROJECT WORK INSTRUCTIONS WORK INSTRUCTIONS (SUBCONTRACTORS) PROJECT QUALITY MANAGEMENT SYSTEM DOCUMENTATION


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Potential project procedures and instructions will be identified and developed to address the scope of services and activities performed. These procedures and instructions will be identified in a matrix contained in the project quality plan and provide a road map to how the requirements of the project quality management system will be satisfied. Procedures issued to satisfy the project quality management system requirements will be reviewed by project QA for compliance with commitments. The overall focus of the project quality management system will be to ensure that the codes, policies, standards, and procedures are properly adhered to and implemented in the execution of the project. The controls exercised will vary to some degree depending of the phase of the project. The effective implementation of the project quality management system will be verified and reported at all levels throughout the engineering, procurement, and construction phases of the project. In addition it will include all execution locations.

3.5

Project Organisation for Quality

The Bechtel OG&C project organisation for quality, associated with the review and verification of quality activities, is a matrix group comprised of Quality Assurance (QA), Engineering, Procurement, Contracts, and Construction. The overall project quality organisation is defined in the project quality plan. The following is a summary of the responsibilities and inter-relations of these functions. Project QA has the overall responsibility for assuring project activities are performed and accomplished in accordance with the project’s approved policies, procedures, and instructions. This may be accomplished through the performance of reviews, monitoring, surveillances, and quality audits of activities, including suppliers and subcontractors. Engineering is responsible for assuring engineering and design activities performed by Bechtel OG&C, suppliers, and subcontractors are in accordance with the project procedures and/or specifications. This is accomplished through participation in the review, checking, design verification, and/or approval cycles for documents issued for use on the project as defined in the project quality plan. Procurement is responsible for assuring purchased items, materials, and services are in compliance with the project, client, and procurement document requirements. This is accomplished through participation in supplier shop qualifications and attendance at approved witness and hold-points and for final inspection, including factory acceptance tests, and release of materials for shipment. Contracts, in close coordination with Engineering, Construction, and project QA, is responsible for assuring services provided by subcontractors are managed in compliance with the project and contract requirements. This is accomplished through implementation of contract formation and administration requirements. The project QA organisation will be under the leadership of the project quality assurance manager (PQAM) who will report to the senior project manager. The PQAM will be responsible for the overall management and oversight of quality functions and activities on the project. Reporting to the PQAM will be a team of experienced quality professionals located, or by visit, in execution locations, including the project office, construction site, and Global Engineering Centres (GECs), which form the core of the project QA organisation. The project QA organisation is defined in the project quality plan.


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Members of the Bechtel project QA organisation are independent from any respective project team that they are responsible for auditing and are responsible for the coverage of engineering, design, and procurement activities in the execution locations, and construction and construction management activities at the construction site and module yards. Quality audits will be conducted to verify the project’s effective implementation and compliance to approved policies, procedures, and instructions and to identify opportunities for improvement in the implementation of the project quality management system. The audits will be conducted on activities performed at all execution locations, construction site, fabrication facilities, and on subcontractors. The audits will be conducted on a schedule commensurate with the activities being performed and early enough to ensure that adequate controls have been planned and implemented. A master audit schedule will be developed to identify the project activities to be included in the audit programme and will be maintained throughout the phases of the project. A key ingredient of the project quality management system is that it places a strong emphasis on the prevention of problems and the effective implementation of a proactive quality verification programme. To this end, quality audits will be supplemented, as necessary, by the implementation of a quality surveillance programme. This proactive portion of the quality verification programme will be initiated early in the project with special attention given to processes and activities that are critical to the success of this phase of the project. The scheduling of quality surveillance activities is performed to respond to project conditions, changes in the project scope, changes in the schedule of activities, or to accommodate the importance of specific activities. A surveillance schedule will be developed to identify the project activities to be included in the surveillance programme. The surveillance schedule will be maintained throughout the phases of the project. Non compliances may be identified as a result of quality audit, quality surveillance, review of other key quality documents and records, or based on formal or informal communications to project QA from other personnel. Non compliances, in addition to the controls established by cognisant organisations, shall be documented in the body of the quality audit or surveillance report and on a corrective action report (CAR). Initiated CARs will be reviewed with responsible personnel from the organisation subject to audit or surveillance, required corrective action and response due dates agreed to, and verification of corrective action completion performed by project QA. Non compliances shall be tracked to identify status of completion, and shall be periodically reported to the project management team, identifying the status of the items being tracked; person assigned responsibility for action; date each item was identified; and projected completion date of required corrective action. The periodic reporting will also include an analysis of the trends from non-compliances and audit data and identify any additional corrective and/or preventive actions for project management team approval.

3.6

Quality Control Programme

Bechtel OG&C has successfully deployed the philosophy and strategy for Quality Assurance and Quality Control (QC) in multiple locations and on multiple projects. The approach defined in this section is an integral part of the Bechtel OG&C quality management system and incorporated in our work processes.


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Bechtel OG&C is organised as a matrix organisation. The Bechtel OG&C project functions report to Bechtel OG&C project managers as well as to their respective functional management within Bechtel OG&C as depicted by blue dotted lines in the QA and QC functional organisation chart overleaf. Additionally, the project functions have an indirect reporting relationship, dashed red lines, to the project quality assurance manager (PQAM) function to ensure alignment of project objectives and the project quality management system and verification programs. The Bechtel OG&C project QA function, at the construction site and any remote fabrication facilities performs independent quality audits and quality surveillances of construction activities, including subcontractors where determined necessary, to verify compliance to the project quality management system, associated procedures and project requirements.

Typical QA and QC Functional Organisation Chart

Bechtel OG&C Functional Managers

Sr. Project Manager

Engineering Manager

Mod Yard(s) Construction Manager

Procurement Manager

Engineers / Resident Engineers

Supplier Quality Supervisor

Shop Inspectors

Mod Yard Pro ject Field Eng (PFE)

Field Engineers/ Quality Control Engineers Project F ield Procurement

Construction Manager

Project Field Eng (PFE)

Field Engineers/ Quality Control Engineers Project Field Procurement

QA Manager

Con struction/ Site QA Manager

QA Engin eers

Module Yard (s) QA Manager/ QA Engineers

Interface with respect to Quality Functional Reporting Line and Oversight

Division of Responsibility (DOR) The division of responsibility for QA and QC is as follows: 





Responsibility for the project quality management system and verification thereof is the responsibility of the PQAM and the QA organisation such as remote fabrication facility QA manager, site QA manager, GEC QA, etc. This includes QA verification, oversight, and coordination activities of selected critical suppliers and subcontractors; verification is performed through quality audits and surveillances. Project QA provide quality assurance interface with the client. Responsibility for inspection at suppliers (applies to purchase orders only) rests with the procurement manager and the supplier quality organisation.


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Inspection may be self-performed and/or executed via contracted inspection services. 

Construction Field Engineers are responsible for inspection activities for direct hire works (construction site and module yards) and monitoring of subcontractors’ inspection activities. The construction site and module yards Construction Field Engineering function is shown in the chart above.

Bechtel OG&C quality functions operate in accordance with the matrix organisation described in Bechtel standard work processes that cannot be deviated from without Functional Management approvals. These standard practices define roles and responsibly (division of responsibility) and govern the inspection and verification activities during project execution. A summary description of the typical responsibilities for QC on projects is described below. These descriptions are not all encompassing since the information extracted and shown below only pertains to QA and QC activities. The various interfaces between the functions with responsibility to perform verification (inspection) are shown in the organisation chart. Implementation of the QC system for all Bechtel OG&C project purchase orders, subcontracts and direct hire construction is managed by the respective project functions, as outlined below.

Procurement Quality Control Procurement is responsible for assuring that purchased items (purchase orders), materials, and services are in compliance with project requirements. This is accomplished through the following: 



Coordinating bid reviews and supplier selection. Reviewing material requisition packages with engineering, to establish the necessary level of supplier surveillance to identify supplier inspection and test record requirements.



Supplier quality to perform shop inspection.



Coordinate supplier shop qualifications with the respective inspection agency.







Participating in supplier shop qualifications and attendance at prescribed witness and hold-points inspections and final inspection and release of materials for shipment. Coordinate with engineering to ensure engineers participate in critical inspection and test activities as identified in the approved Inspection and Test Plans (ITPs). Interface with supplier quality team and provide notification of Client required inspection points and FATs identified and agreed in the contract.

The Field Procurement group is responsible for verifying that purchased items and materials arriving at the construction site and module yards are in compliance with the project and the purchase documents requirements. Field Procurement is also responsible for field purchasing using field material requisitions and the management of all materials onsite and in the module yards.


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4 Engineering Plan 4.1

Overview/ Work Plan

This document defines how Bechtel will perform engineering at the different execution locations. The plan also defines discipline specific engineering roles and responsibilities during various stages of the project and as required to fully define the plant and to facilitate the procurement of equipment and materials and enable the Construction and Commissioning of the plant. This PEP will be updated as necessary during the course of Project development to reflect any fundamental changes to the plan, or simply the changing focus of the execution plan as the project develops. In addition to the various documents highlighted throughout the text of this section, reference should also be made to the following project specific documents: 

PEP, Volume 1



Division of Responsibility (included in contract).



Project Work Instructions (if required)

4.1.1

General Work Plan and Organisational Interfaces

Refer to PEP Volume 1 section 2.1 “General Project Information” and section 4.1 “Scope of Work and Services”.

4.1.2

Project Execution and Responsibilities

Basic Engineering for the Offsites and Utilities will initially be performed in Bechtel’s London office, as the project progresses engineering and procurement will shift to the Mumbai Execution Centre (MEC) and also to a third party engineering contractor also based in Mumbai as shown in table below. The basic engineering deliverables will be supplied transfer to MEC and the third party engineering contractor to support the project schedule. Detailed engineering for the non-process buildings will be performed by another specialist third party engineering contractor based in Mumbai. Basic Engineering for the Marine Facilities will initially be by Bechtel’s London office. The EPC scope will be executed under a subcontract let by Reliance and supervised by a joint PMT/Reliance team. Basic engineering for the CPP will be performed in Bechtel’s Frederick office, as the project progresses engineering and procurement will shift to the Bechtel’ s New Delhi office. Initially overall reporting relationships and responsibility for Offsites and Utilities and Marine Facilities will be with the London office management team. However as basic engineering is completed and work transfers to the Mumbai Execution Centre (MEC) and the third party engineering contractor overall responsibility will shift to the Mumbai Execution Centre (MEC) management team. The point of change-over is expected to be approximately 8 to 12 months after the start of t he project. Overall responsibility for the CPP will remain with Bechtel’s Frederick office management team, even though engineering and procurement will shift to Bechtel’s New Delhi office.


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All Bechtel execution units employed on the project will use the same procedures, work processes and tools to provide a seamless execution and unified design, satisfying the contract scope and ensuring consistency and integrity in design. Safety, consistency and integrity of design are vital to the achieving a smooth and trouble free start-up and as well as long term successful operation of t he facility. The engineering team will follow Bechtel’s overall Work Process for execution of engineering on projects. The Engineering teams in all locations will operate on a task force basis where all members of the task force are located in close proximity to each other including all engineering disciplines and other functions, e.g. Procurement, Project Controls and Construction etc. The Project Engineering Management teams and the Lead Engine er’s in the London, Frederick New Delhi and MEC offices will be the main Engineering interface with Reliance. 4.1.3

Interfacing with PMT, Third Party Contractors & Design Subcontractors

Bechtel will develop and issue procedures for communications and coordination to address the requirements of each party. These procedures will include requirements for regular teleconferences, video conferencing and face to face coordination. The frequency of such interface meetings will be set to meet the needs of the project. All Communication and Coordination will be through nominated point-to-point contacts. A DOR matrix forms part of the contract and defines the work scope to be undertaken by each of the contributing entities. Where work is to be transferred from one location to another, a control point will be shown in EPPR at the point where responsibility for individual deliverables is transferred. The IS&T requirements for the project will be included within the overall automation plan which will also describe the software to be employed by each discipline group and the interaction of software between locations and stakeholders (where interfaces are required). Engineering software will be common between execution locations, where possible and shall be based on the tools used by MEC on the earlier Jamnagar Export Refinery Project. Where intellectual property issues arise, for example where Bechtel tools/software is available that supersedes that used within MEC, then the remote execution location will retain their present software/tools. If specific tools are desired by Reliance then they shall be reviewed on a case-by-case basis considering any project benefit from adopting the latest Bechtel tools at MEC issues and intellectual property rights and/or commercial compensation. In addition, third party engineering contractors and Sub-contractors must be able to interface with the IT systems and tools established by Bechtel. Electronic document transfer via eRoom will be employed to transfer documents to the third party engineering contractors. It is likely that all Vendors will operate slightly different document management systems. However, Bechtel will ensure that all documentation can be received and comments returned electronically through the use of compatible systems.


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4.2

Organisation – Project and Functional

The organisation charts for London and the MEC are provided in the PEP Volume 1. The organisation charts show the organisation while London is the primary execution centre and the organisation for the MEC and London offices during and after the transition of engineering management control to MEC. It is expected that this transition will occur 8 to 12 months after the start of the project. The London office OFFSITES AND UTILITIES and MARINE FACILITIES engineering teams will be organised separately. For OFFSITES AND UTILITIES scope of work key area are headed by an APE responsible for all technical, quality and scheduling aspects of the work. In addition to the on project Engineering Management team, the following discipline engineering groups will operate in a matrix organisation as shown in the PEP Volume 1 with direct line reporting to the PEM’s: 

Process



Project Engineering

Environmental



Mechanical



Process Safety



Materials Engineering Technology



Control Systems & Instrumentation



Plant Design and Piping



Electrical & Telecommunications



Civil, Structural and Architectural



Bechtel’s off -project Engineering organisation is based around a structure of Chief Discipline Engineers and Technical Specialists, who report to GBU Managers of Engineering, who in turn report to the corporate Manager of Engineering. This off project organisation will support the project.

4.3

Procedures

Corporate, GBU and Project Procedures, together with the Division of Responsibility document will ensure that work performed in the London, Frederick, New Delhi, MEC and any 3rd party execution locations is seamless and meets Bechtel’s quality and performance standards. Bechtel’s Engineering Procedur es are “eEngineering” Bechtel internal website.

published

and

controlled

using

the

Engineering Procedures to be used by the Engineering disciplines are listed in the discipline sections below. These are the default procedures which are mandatory unless the project identifies otherwise in Volume 1 of the PEP and in the Project Specific Project Work Instruction. Generally Engineering will be completed using the JERP project basis, supplemented by the following documents issued by PMT:


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A. Project Standards, Specifications and Procedures; B. Design basis, design philosophies and design guidelines; C. Quality Assurance “QA”/ Quality Control “QC” plan; D. HSE plan; and E. Project automation plan

4.4

Functional Oversight

In addition to the on-project responsibilities to the PEM, Lead Engineers regardless of location are technically responsible to their Manager of Engineering (MoE) and their Functional Chief Engineer (CE) respectively who are at all times responsible for the technical integrity of the work performed by discipline personnel assigned to the Project. In addition CE’s are responsible to provide the necessary staff to meet the needs of the Project. The MoE and CEs will provide functional oversight for engineering activities on the project. This consists of the following activities: 

Reviewing scope of work, Engineering Baseline and Basis of Design



Overview and review of Engineering Scheduling and Reporting.





Reviewing and predicting Engineering Performance based on reporting tools (EPPR), and initiating action to ensure continued good performance Reviewing staffing and ensuring sufficient and suitably experience staff are provided to the project in a timely manner.



Performing off project design review (see below)



Performing project technical auditing (see below)







Providing a focal point for technical issues and coordination with Bechtel technical specialists and other locations/ GBUs as required to support the project execution. Dissemination of Best Practice and Lessons Learned Providing current instructions, training materials and training for the discipline standard work methods



Providing technical support for automation tools utilised by the discipline



Reviewing and approving deviations from standard work processes



Ensuring that the project is aligned with current codes and standards.

Regular coordination meetings between the on project PEM/ Lead Engineer and off project MoE/ CE will be scheduled with the purpose of providing a forum for project technical and non-technical engineering issues to be raised, with the emphasis on pre-emptive action to ensure good performance, non-reactive engagement to fix problems.


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4.4.1

Design Control Check Lists (DCCL)

At the start of the project, the respective CE and Lead Engineer will establish a project discipline-specific DCCL. This document specifies the deliverables and activities which are subject to off-project design review, and is an evergreen document throughout the life of the project. Off-project design review and the DCCL process is described in EDPI No: 3DP-G04D-00034. 4.4.2

Engineering Audits

In addition to the DCCL process, the CE will also conduct Engineering Audits on the project at specified times during the project’s lifetime. These audits will focus on the discipline’s technical performance, quality of deliverables and interfaces and are intended to pre-empt any technical issues that may cause schedule or cost impacts to the project. The Engineering Audit process is currently being updated and will shortly be described in EDPI No: 3DP-G04D-00039.

4.5

Scope Baseline and Control

Engineering will work with the Project Management, Project Controls and other functions as required to develop the Engineering scope and baseline for the project. Execution strategies developed during the early stages of the project lifecycle or during the proposal are to be considered in the development of the overall baseline and scope of the project. Technical scope for the project is distributed to the Engineering team by project management via the following documents: 

Proposal and Tender Bulletins/ Clarifications from Client



MoM with client during proposal or earlier stages of the project



Prime contract, or relevant sections thereof Other client scope definition documents. licensor scope documentation).



(e.g. Preliminary Equipment list,



PEP Volume 1



Senior Management Technical Review Package

In addition, scope clarification meetings may be held internally or with the customer to further define areas of scope within the project. From the above sources of information, Engineering will develop its baseline scope, using the Bechtel standard work processes and tools. Typically Engineering Scope definition will include the following activities and deliverables: 

Development or update of equipment list



Review and input to the WBS developed by Project Controls



Development of man-hour estimates (or validation of man-hours estimated during the proposal)



Input to project schedules



Preparation of input to the EPPR



Input to procurement Material Assignment Schedule



Input to Sub contracts schedule and list of Sub Contracts


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During the life of the project, engineering will monitor and adjust the baseline scope of the project as required. The primary method of notifying stakeholders of changes to the baseline is via the project Trend Programme. Every engineer assigned to the project has responsibility to participate in the trend programme and raise potential trends to their Lead Engineer and PEM. Trends are to be initiated per the project trend programme as required to manage changes in scope before any work is done or funds committed.

4.6

Schedule Establishment and Tracking

Engineering will contribute to the development of the overall project Milestone (Level 0) and Project Summary schedules (Level 1). Typically this is done during preparation of the proposal and feeds the subsequent development of Level 2 and Level 3 schedules, to which the PEM and Lead Engineer for each discipline have a significant contribution early on in the project. Engineering will develop, in conjunction with Project Controls, the EPPR (Level IV) schedule for the project. This details Engineering’s schedule and work plan down to deliverable (or group of deliverables) and task / activity level and are Engineering’s primary tool to monitor, track and control work and performance. EPPR is used as a tool by the Lead Engineer to plan the work of the discipline, with the ability to use look-aheads to plan and resource upcoming work. The EPPR will be set-up and managed in accordance with EDPI No. 3DP-G03D0006 Engineering Progress and Performance Report. A single EPPR database shall be used for the entire project. EPPR has the facility for definition of the division of responsibility by milestone for each individual deliverable and task. EPPR can then provide progress and performance information for the total project and for each execution location.

4.7

Functional Metrics

Engineering deliverables and tasks will recognise the overall project WBS and this work breakdown will be incorporated in the way Engineering is organised, the numbering and issue of documents, progress measurement, control points and reporting. This will be set-up as defined in Exhibit G of the EPPR EDPI 3DP-G03D00006. EPPR will be the main tool use by Engineering to track performance. measured for performance tracking are as follows:

Metrics



Schedule Performance (Actual % vs Scheduled % complete)



Productivity Factor (No. hours ‘Earned progress’ / No. hours booked)

In addition, quality metrics are tracked. These data are derived from the DCCL and Engineering Audit processes as described in Section 3.4 and include such items as: 

No. of DRNs accepted without comment



No. of DRNs accepted with comments



Number of DRNs not approved



Audit findings



CARs


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During the vendor print review stage of a project, if required by the MoE and CE, it is possible to track the type and number of comments on Vendor Prints, using the Intellistamp tool. This system provides an electronic means of collecting Vendor Print approval code status and thus it is possible to see trends in Vendor performance with respect to timely and correct addressing of comments on their documentation. Refer to 3DP-G06D-00004. Vendor Print review metrics and status are tracked by Engineering using data from the EDMS system, InfoWorks. Project/Six Sigma dashboards will also be used to track various performance metrics. Refer to 3DI-M01D-00002 Project Quality Metrics.

4.8

Best Practices Programme

The Six Sigma programme is one aspect of Bechtel’s approach to implementing Best Practice. See Section 2.3.1 for details of the Six Sigma programme. Within Engineering, the PEM, Lead Engineer and CEs are responsible for implementing the results of Six Sigma PIPs on the project. They work with Black Belt process improvement specialists to ensure effective implementation of applicable PIPs, and also to develop PIPs where opportunities are seen for potential improvements. Typically each Engineering discipline will also have one or more Six Sigma Yellow Belts assigned responsible for implementing and tracking the results of PIPs. In addition to the Six Sigma programme, Bechtel operates a “Lessons Learned” programme, which captures technical and non-technical lessons from other projects. At the start of the project, a review of previous lessons learned will be conducted, and their applicability for the project assessed. Engineering will take the necessary steps to ensure lessons are incorporated at the appropriate time of the project to ensure that best practice is carried forward throughout the lifetime of the project. The OG&C Lessons Learned system is defined in EPDI No. 3DP-G01D-00003. To ensure best practice in the design with respect to Designing for Safe Construction, a project Design for Safe Construction programme will be implemented in accordance with the requirements of 3DI-G04D-00013 Design for Safe Construction.

4.9

Quality Programme

Achieving a high quality, compliant fit for purpose project requires clear definition of the minimum quality standards required, competent staff, and good work processes and procedures. The minimum quality standards are defined through the contract and Bechtel’s own quality standards. The contract will typically make reference to the codes and standards applicable to the project. Bechtel also has its own standards which can be applied when client/project standards are not available or applicable. Refer to volume 1 of the PEP for references to the contractual requirements. Bechtel achieves quality through the application of its standard work processes and procedures. All Engineering documents are subject to a minimum process of checking by both an independent Engineer (i.e. not the originator) and the LEAD ENGINEER prior to issue. Many documents are also subject to interdisciplinary review, and APE or PEM review and approval prior to issue, a further subset of documents as defined in the DCCL is subject to off project review by the CE. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The PEM or CE will also schedule, or request at any time, Engineering audits to address specific or general issues of concern or opportunities for improvement. Ultimately, the quality of the job depends on the individuals assigned to the project. It is the CE’s responsibility to ensure that suitably qualified and experienced staff are assigned to the project.

4.10 Quantity Development and Tracking Project services estimates are based on as-sold equipment counts. Changes in these quantities are to be tracked and t rended against the as sold values and revised quantity estimates generated on a set schedule as determined by the project, so that the significant changes in quantities are anticipated and reported well in advance of the project reforecasts. Each Engineering discipline is responsible for developing the quantities required for the project. It is only in the feasibility and early study phases of the project where estimating may independently develop the quantities using historical factors and metrics. Even at this stage Engineering shall still review and verify the quantities estimated. Ownership of quantities rests with Engineering. Design quantities will be developed and used to track and monitor progress and support the TIC estimates. As such, Engineering will work closely with the estimating group to develop quantity estimates for bulk materials and equipment. As the project develops, Engineering and Estimating functions will hold alignment meetings to agree the scope and basis of the quantity estimates, together with the required level of accuracy and thus the extent of data required and amount of work to provide this data. An estimating plan will be produced to which Engineering will have a significant contribution. Through the development of the design, Engineering shall remain responsible for the quantification of the design, and in particular the neat quantities. Allowances to be added for other reasons, e.g. cut and waste, delivery lead time mitigation, shall be developed by a cross functional group. During the development of the design, emphasis will be placed on laying and designing the plant to ensure the optimum configuration and layout to give the most efficient use of bulk materials. To support this process, regular plant design reviews will be carried out via the 3D model.

4.11 Value Engineering Programme Bechtel understands the importance of performing Value Engineering undertaking it in a timely manner to maximise the benefit to the project.

and

Bechtel is committed to the use of Six Sigma along with other value improving practices to improve project outcomes. Experience with similar programs is that one half to two-thirds of the savings are achieved during the front end of a project, with the remaining savings generated during the detailed design, procurement and construction. Although the initial configuration and BoD development is a key input to value improvement, there are significant opportunities in the basic engineering work to reduce operating costs, reduce investment, or to improve the economics of the plant. A series of value improving practices will be proposed during the early stages of the project, typically including: 

Constructability checks to set the maximum feasible equipment size.


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



Evaluating the cost of implementing alternative site layouts in terms of interconnecting pipe rack lengths, piping and other site development costs; Value engineering to audit the proposed unit layout and plant design (to be agreed with client before commencing.

A Value Engineering facilitator will manage the programme. Where appropriate, licensors will be invited to participate, together with engineers and other key individuals having relevant experience who are not directly involved in the project. All ideas and potential opportunities will be collected, classified and ranked. Where required by clients, the life cycle cost impact of high-potential ideas will be evaluated and a justification prepared. All accepted ideas would then be incorporated in the appropriate documentation.

4.12 Engineering Management 4.12.1

Introduction

This section describes the role of Engineering Management on project in the management, oversight and leading of the Engineering disciplines. 4.12.2

Organisation

The PEM’s functionally reporting to the MoE will be assigned to the engineering team in the London office to manage and co-ordinate the key areas of the OFFSITES AND UTILITIES and MARINE FACILITIES engineering work. As engineering activities progress the management team and control will transfer to the MEC. This will be after approximately 8 to 12 months. Organisation charts are included in volume 1 of the PEP. The PEM’s functionally reporting to the MoE will be assigned to the engineering team in the Frederick and New Delhi offices, to manage and co-ordinate the CPP engineering work. The PEM in the MEC will co-ordinate and direct work in the Office. He will report to the PEM in Frederick The PEMs will be fully supported by Area Project Engineers (APEs), Discipline Lead Engineers, Engineers and Specialists. The PEM’s will be responsible for ensuring that the issue of deliverables supports the procurement and construction schedules, are complete, timely and of high quality. 4.12.3

Procedures and Design Guides

The procedures which govern Engineering execution are summarised in the OG&C GBU Project Work Instruction (PWI) 10015-G69-JG0000-1200. This document is not applicable to work executed by the POWER GBU for the CPP. For which a separate PWI will be produced. 4.12.4

Activities and Deliverables

Specific responsibilities of the Engineering Managers are: 

Provide the primary interface for Reliance’s Engineering Management team



Co-ordinate project scope development



Provide direction to and co-ordinate the work activities of the Discipline Lead Engineers


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





Management of interfaces, including those between Engineering and Procurement / Construction, with Reliance, 3 rd Party Contractors, vendors/ Subcontractors and existing facilities. Co-ordination with vendors and Subcontractors including ensuring the timely provision of information for the procurement process to proceed at each major stage, ensure that vendor information is received to support detailed engineering and that responsible discipline engineers are processing the review of vendor prints in a timely and effective manner to ensure no impact to vendor delivery schedule. Engineering Managers will also ensure that scope of work documents and take off schedules are prepared by the engineering discipline groups to enable the preparation of subcontract packages and support the award process as required Co-ordinate major reviews, including P&ID, HAZOP, Design for Safe Construction, Plot Plans and 3D Model



Assist with Co-ordination of Reliance’s design input and reviews



Co-ordinate design development



Ensure compliance with project standards, specifications, and procedures



Input to the preparation of plant data books operating manuals and other final documentation



Ensure scheduled delivery of Equipment / Materials is achieved



Ensure the work under their supervision meets project schedules and budgets



Oversee and ensure the Maintenance of quality in Engineering deliverables



Ensure safety standards are achieved.



Support regulatory approval

In addition to the above, Project Engineering Management is responsible for ensuring production of deliverables which are a requirement of EDP 3DP-G04-00047 Engineering Deliverables to Procurement, Construction and Start-up. 4.12.5

Automation Tools

The Engineering Management group does not have any automation tools which are specific only to the group, but has overall responsibility for the implementation and execution of Engineering automation tools on the project.

4.13 Project Engineering 4.13.1

Introduction

Project Engineering provides the knowledge and skills that are applied to analyse and define integrated OG&C facility processes using mathematical methods, computer tools, and design coordination. The OG&C Project Engineer seeks to develop an overall facility design and operating philosophy that will achieve desired steady-state and dynamic behaviours, including safety, consistent product quality and high return on investment.


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4.13.2

Organisation

The Project Engineering group is task-forced based with teams of engineers assigned to the project on a full-time basis. Project Engineering activities on each project will be under the direction of a Project Lead Engineer who will assume single point responsibility and accountability for all the Project Engineeeing design activities. 4.13.3


The Project Engineering discipline manual within procedure 10015-G69-JG00001200 the project’s OG&C GBU PWI lists the standard instructions, design guides and other documents which are used by the Project Engineering group. All projects utilise these instructions unless there is an overriding client instruction that meets the same technical standard as the Bechtel instruction. 4.13.4


Project Engineering has responsibility of the following deliverables: 

Piping and Instrumentation Diagrams (3DI-M04D-T0001)



Line Data Management (3DI-M04D-T0003)



Equipment List (3DJ-M04D-T0016)



Cause and Effects



Pump / Compressor Pressure Profiles



Design pressure and temperature diagrams



SP Item Datasheets



SP Item Lists

Project Engineering is also responsible for supporting the following key tasks: 

3D Model review comment close out



HAZOP / SIL review and model close out



Quantities for their respective areas / systems

The Project Engineering group will develop the P&ID to an IFR revision which will be distributed internally to all the Bechtel engineering disciplines for review. Once comments are received the Area Project Engineer for Front End Design will organise and run an internal P&ID reviews to discuss and agree comments. Once comments are agreed the P&ID is further developed to the Issue f or Approval (IFA) stage where it is presented to the client for comment. The P&ID Engineering Instruction 3DIM04D-T0001 specifies the required data that is to be presented on the IFA P&ID and what deliverables are to accompany the P&ID at this revision. It is the responsibility of the Area Project Engineer during this meeting to record minutes of meetings, actions that arise out of the meeting and maintain the client comment tracking sheet. On completion of the client meeting the P&IDs are developed further by incorporating client comments and information from other engineering groups. The P&IDs are then issued for HAZOP (IFH) where they are presented in front the HAZOP review team to complete the Hazard and Operability study.


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On completion of the HAZOP the project engineering group has the responsibility for HAZOP action item resolution and follow-up. All changes to the P&ID post HAZOP are managed and organised by the project engineering group. The Engineering leads will ensure an up to date project red line master mark-up of each P&ID to record and track changes between issues is being maintained by his group. It is also his responsibility to communicate revisions to the design disciplines and others so that they are aware of any and all changes. Once sufficient vendor information is available to be incorporated into the P&ID the P&ID is issued for design (IFD). After the IFD revision of the P&IDs, Design Change Notices (DCNs) will be used to approve significant changes before they are marked on the P&ID master. The Project Engineering Lead Engineer is responsible for writing and proper approval of DCNs before the master is marked. The APE and PEM will sign DCNs before they are implemented. DCNs will not be issued for minor changes such as: I.

Cosmetic changes, such as typos or spelling errors

II.

Addition/deletion of drain/vent valves less than two inches and not affecting a vessel nozzle

III.

Revision of continuation references between drawings

IV.

Revision of notes to clarify meaning when PD&P alone is affected

V.

Addition of tie-in details to P&IDs

VI.

Addition of information such as actuator types, instrument connection details, or relief valve settings

The Project Engineer will be a key participant in the 3D model review and will ensure that specific design information that exists on the P&ID has been incorporated into the physical piping model. After the 3D model review has been completed, the associated P&IDs will be modified as required and issued for construction (IFC). Subsequent issues will only be made when deemed appropriate or necessary. The main tools generally used by the project engineering group are identified below (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by Project Engineering on the project):

Application

Deliverable

Description

Pressure Profile Suite

Reference/Calculation only

Hydraulic calculator, line size, line designation table management

PipeNet

Reference/Calculation only

Network tool

Management of change tool

DCNs

Managing revision lists and Design Change Notices (DCNs)


hydraulic

analysis

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4.14 Process Engineering 4.14.1

Introduction

This section describes the function and organisation of the Process Engineering group. The principal functions of the Process Engineering Group are to: 







4.14.2

Determine the sequence of operations and the selection of equipment and operating conditions required. Generate input for other disciplines such as Process Flow Diagrams, Heat & Material Balances and Process Datasheets. Be responsible for the Relief System design. Provide support to other disciplines to make sure that the process design intent is maintained throughout the work of the downstream design disciplines. Organisation

The Process Engineering group is task forced based with teams of engineers assigned to the project on a full time basis. Process design activities on each project will be under the direction of a Process Manager who will assume single point responsibility and accountability for all the process design activities. 4.14.3


Procedure 10015-G69-JG0000-1200 the project’s OG&C GBU PWI lists the standard instructions, guide instructions that are used by the Process group. Of particular importance is the instruction 3DJ B04F 001, major project execution process design execution methodology which identifies the Process Engineering activities and deliverables involved in the execution of major projects. This document is to be used as the standard reference methodology for all Process design work. 4.14.4


The specific responsibilities of a process engineer are to: 

Prepare Process Design Basis



Prepare Heat and Material Balances/ stream properties



Process Flow Diagrams



Process Datasheets for all major equipment



Process datasheet for selection of relief valves



Prepare preliminary utility balance summaries



Estimate catalyst and chemical requirements



Write process descriptions of the process units



Provide information for inclusion in the operating manuals



Review Piping and Instrumentation Diagram (P&ID) for operability and safety



Review vendor drawings



Review process design work provided by licensors or suppliers



Prepare procedures for performance testing


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

Write process guarantees for the project



Prepare effluent summary information

Key activities for process engineering are identified below: Alternate Design Condition s Consideration. The normal operating design case of the units are shown on the PFDs and supplemental design information is provided on material balance tables. However, other operating cases, which were determined during the early stage, will be used to determine the design of particular items of equipment and verify their impact on the reliability, safety, or economics of the plant. These alternate-operating conditions (e.g., excursions in temperature, pressure, or flow) are the result of seasonal operation, blocked operation, start-up, shutdown, plant upset, or special operations (regeneration, purging, depressurising, chemical cleaning, etc.) This data may be presented either on the PFDs or in alternate case material balances. Major Equipm ent Design Temperature and Pressure Input. Equipment design temperature and design pressure will be finalised to accommodate normal operating conditions, alternate operating conditions, and upset conditions without compromising the integrity of the system. E q u i p m e n t D e s i g n S u p p o r t . As detailed engineering for equipment progresses, some support from process will be required to assist other disciplines in resolving areas of conflict or clarification. Examples of this may be interference between tray internals and support steel, location of instrument connections or thermowells related to platform access and process requirement, or hydraulics and pipe layout clarification based on stress analysis.

When mechanical layout/ designs are developed, process will ensure that these documents are consistent with the process data and intent. Vendor Print Review. Selected vendor prints will be reviewed to verify that process requirements have been adequately met for key equipment items. For example, it is important to review tower internals to ensure that vendor design, mechanical design, and process design are consistent with regard to dimensions, layout, orientation, etc. Relief System Design. Process will issue the design specification for the relief system that will document the overpressure protection philosophy and flare system design basis. Process Con trol Narrative. A description of the process control concepts and logic for operation, start-up, and shutdown will be updated and reissued for design. A control narrative is typically required when the design involves complex or unusual control schemes that cannot be completely described by the PFD symbols alone. Utility Summ ary. The utility summary will be developed and issued depicting the final utility consumption and/or production by major equipment item for each utility commodity.

The issued list of all chemical reagents, Catalyst and Chemical Summary. additives, and catalysts required to start-up and operate the plant. The list will include both discrete and continuous demands pertaining to initial fill and operating requirements. The anticipated rate of consumption and storage requirements will also be included.


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Instrument Data Sheet Review. The control systems group will issue a datasheet for every instrument purchased on the project. Process will review this data to ensure that process design data utilised is accurate and appropriate set points or ranges have been selected. In most cases, the control systems group will request pre-alarm, alarm, shutdown, and set-point confirmation from process engineering.

4.14.5

Automation Tools

The main tools generally used by the process engineering group are identified below (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by Process on the project): Application

Deliverable

Description

API Technical Databook

Reference / Calculation only

Technical database

Aspen Flare System Analyser


PREVIOUSLY FLARENET; Tool for modelling flare and vent piping hydraulics.

FlareSim


Tool used to determine radiation levels emitted by Flare tips under different conditions.

FlowMaster


Documentation of Hydraulic Calculations

HYSYS


Process simulation package

PES Pro II/Provision


Process simulation package

V-Calc


Vessel Sizing Spread sheet Tool

Microstation

PFD’s

4.14.6

Design Subcontractors

Generally, the process department only utilises subcontractors for specialist services such as CFD analysis or dynamic simulation that cannot be completed by Bechtel specialists.

4.15 Process Safety 4.15.1

Introduction

The process safety engineering discipline will have an overall responsibility within engineering for all safety aspects during the various phases of the project. Process safety engineers will review and influence the work of all other disciplines where safety considerations are applicable and they will liaise closely with the project ES&H manager to ensure all agreed ES&H requirements are fully implemented by the engineering team. Process safety will also be responsible for the specifications and design of fire protection and safety systems. The objective of Process Safety management activities are to: 

Minimise the potential for hazardous occurrences;



Minimise the risk and consequences of hazardous events;



Provide a safe working environment for facility personnel;


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



Maximise the benefits of protection measures against hazardous events by considering equipment layout and spacing; Provide sufficient safety devices and redundancy to isolate and minimise uncontrolled release of hazardous liquids and gases;



Minimise potential for pollution through accidental releases;



Design fire protection system;



Design of fire and gas system

4.15.2

Organisation

Process Safety activities on each project will be under the direction of a Process Safety Lead Engineer who will assume single point responsibility and accountability for all the process process safety design activities. activities. The Process Safety Safety lead reports to the PEM. 4.15.3


The main document is the Engineering Engineering Department Procedure Instruction for Process Safety, 3DP-U04D-00001 which defines all deliverables and processes used by the Process Safety Group and provide reference to other relevant OG&C procedures, guides and instructions. instructions. This document contains contains the list of activities and other design guides used by Process Safety engineers during the various phases of t he project. In addition to Process Safety department specific procedures and instructions, the Process Safety group makes extensive of other departments’ procedures and instructions: 

2HA-H13D-00001 2HA-H13D-00001

HAZID and ENVID Studies (ES&H)



2HA-H14D-00001 2HA-H14D-0000 1

Action Tracking and Hazard & Risk Register (ES&H)



3DG-E610-00001 3DG-E610- 00001

Electrical Electric al Area Classification Classific ation (Electrical (Electric al Engineering Dept.)



3DG-J41-00003

Engineering Engineering Design Guide Safety Instrumented Systems



3DI-M04D-T0001 3DI-M04D-T 0001

Standard Engineering Instruction Instruct ion for Piping and Instrument Diagrams



3DJ-B04-00044

Guide Engineering Engineering Instructions For Electrical Area Classification Input (Process Engineering Dept)



3DJ-B04F-00001

Process Design Execution Methodologies Methodologies for Major Projects

4.15.4


The Process Safety Design Philosophy describes how the project safety objectives will be implemented during during the engineering engineering phase phase of the project. The Process Safety discipline will review the philosophy document issued by PMT. This philosophy will contain a number of dedicated sections addressing legislation, codes & standards, hazard reviews, principles of plant layout, fireproofing, area classification, classification, fire & gas detection, fire protection and general personnel safety.


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The main hazard and safety reviews are managed by Process Safety engineers in collaboration collaboratio n with Project Engineering. All recommendations recommendat ions generated by the hazard and safety reviews (e.g., HAZID, ENVID, HAZOP, SIL, LOPA) need to be resolved. In order to ensure that all actions are addressed and resolved, resolved, the Process Safety discipline will input recommendations recommendations to the Hazard / Risk register, held by the project ES&H Manager. Manager. This register identifies identifies and records records all foreseeable foreseeable health, safety, security and environmental hazards/ risks associated with the project and assigns responsibility responsibility for resolving resolving them. The register will will remain a live live document throughout all phases of the project and will be monitored by the ES&H manager to ensure all actions are assigned and resolved. Fire hazard analysis, explosion hazard analysis, computational fluid dynamics modelling of explosion overpressure and quantitative risk assessment are usually performed by a third party consultant. For the offsites and utilities the outcome of this modelling will be reviewed by Process Safety engineers who will ensure recommendations will be implemented in the design. The process safety team will also work closely with Plant Design & Piping group and Process Engineering disciplines to determine safe and practical layouts for equipment, with due consideration given to: 

Human factors engineering engineering



Location of manned buildings



Flare location



Segregation of process areas



Escape routes



Means of evacuation



Laydown areas



Maintenance access



Segregation of hazards

A firewater demand study will determine the largest fire f ire water demand required for f or one major fire scenario and will include hydraulic calculations and physical routing of the main pipe pipe runs. Input from these studies is given given to Project Engineering Engineering to prepare the fire water P&IDs and LDTs. The Process Safety design deliverables will include, as a minimum: 

Review of the Process Safety Philosophy issued by PMT



Project Procedures for HAZOP and SIL



Review of Project Specifications issued by PMT for Fire Protection Systems and Safety Equipment



Process hazard analysis (HAZOP) reports



SIL and LOPA reports



Support PMT RAM study report



Support PMT QRA study



Support Fire hazard analysis and explosion hazard analysis reports



Human factor engineering philosophy



Fire protection and safety equipment layouts


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

Fire water Utility Flow Diagrams



Safety equipment equipment specifications and data sheets



Fire water demand schedule



Firewater hydraulic calculations



Hazardous area classification classification schedule



Fire and gas cause and effect charts



Fire proofing layout drawings and schedule.

4.15.5

Automation Tools

Process Safety Engineers have the following tools to perform some of their activities as described in the table below (refer to the Project Automation Plan 10015-G05JG0000-1001 for the actual list of tools used by Process Safety on the project): Application

Deliverable

Description

Canary by Quest

-

Consequence modelling software to estimate flammable and toxic gas dispersion in case of release, Jet Fire heat radiations, pool fire heat radiations and explosion blast pressure

PHAWorks

HAZOP Reporting

Process Hazard Analysis recording especially used for HAZOP reviews

RAMP

RAM

Reliability, Studies

Availability

and

Firewater software

hydraulic

design

PipeNet

Firewater System Hydraulic Analysis

tool,

Maintainability calculation

4.16 Environmental 4.16.1

Introduction

The Environmental discipline will have overall responsibility within engineering for ensuring the project’s environmental compliance. Responsibilities include preparation of emissions inventories, including aqueous, solid and gaseous, and the waste management management plan. plan. The discipline discipline has responsibility responsibility for the design of of mitigations systems including wastewater treatment prior to discharge to the environment. environment . Environmental engineers will review and influence the work work of all other disciplines and ensure that the project will be performed in accordance with project environmental design basis and Bechtel’s ISO 14001 accreditation and Best Available Available Techniques (BAT) guidance. guidance. 4.16.2

Organisation

Environmental Engineering activities on each project will be under the direction of an Environmental Lead Engineer who will assume single point responsibility and accountability accountability for all the activities. Because of the specialist nature nature of of the Doc. No. 10015-G01-JG0 000-1002 Rev 2 Confidential © 2013 2013 Bechtel Limited. A ll rights reserved

Page 46 of 129


Environmental department, it tends to have only a small number of staff, and thus, the Lead will also take on a significant portion of the technical work. 4.16.3


Generally Engineering will be completed using the JERP project basis, supplemented by the following documents issued by PMT: A.

Project Standards, Specifications and Procedures;

B. Design basis, design philosophies and design guidelines In the absence of PMT project specific documents Bechtel’s own procedures and instructions will be applied. Design guides and instructions are available from the e-Environmental website which covers all GBUs. Those applicable to OG&C projects are as follows: 

Preparation of Environmental Design Criteria, 3DG-H01-00018



Noise Control, 3DG-N81-00001



Industrial Wastewater Treatment System, 3DG-H01-00002



Design Guide Drainage Design, 3DG-H01-00020



Air Dispersion Modeling and Engineering Design, 3DG-H01-00001



Waste Management Guide, 3DG-V01-00003



Permit Planning and Acquisition, 3DG-V01-00010

The Environmental discipline manual within procedure 10015-G69-JG0000-1200 the project’s OG&C GBU PWI lists the standard instructions, design guides and other applicable documents. Refer to the EDP for Environmental Engineering, 3DP-G04-00010 for the framework of Environmental Engineering’s role. The environmental management process consists of environmental design review, establishing standards and design basis and forming a focal point for permits & other regulatory material. Reference may also be made to the General Work Process Diagram – EPC Phase, 3SD-H01-20000. 4.16.4


Environmental Engineering will assist with and participate as required, in the HAZID / ENVID (Hazard and Environmental Hazard Identification) studies for the OFFSITES & UTILITIES, MARINE FACILITIES and CPP and action outcomes as necessary as defined in the OG&C ES&H Management Process 2HA-H13D-0001. Provide assistance to PMT with the development of a construction environmental plan control plan (CECP). Environmental group will ensure the project meets the requirements of ISO 14001, where required by the project, as per project environmental management quality assurance procedure, 2QP-Q01D-E0001. Environmental Engineering will provide technical input to assist Reliance / PMT with the Environmental Impact Assessment (EIA) work.


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The Environmental Engineering discipline will develop the drainage design philosophy in co-ordination with Civil Engineering. Environmental Engineering will carry out the process design for wastewater and drainage pump stations, and wastewater treatment facilities (ETP). The design procedures and guides for these facilities shall be as per process engineering design process. MR generation and Vendor Print review vendor prints for environmental packages will be carried out by the Mechanical Group in conjunction with Environmental Engineering (see Section 3.18.4). The Environmental deliverables:

Engineering

discipline

is

responsible

for

the

following

Environmental Design Criteria summarizing the applicable legislation for use by the project





Wastewater/ Drainage design basis



Wastewater/ Drainage utility flow diagrams



Wastewater/ Drainage material balances



Wastewater/ Drainage equipment process datasheets



Wastewater/ Drainage catalyst & chemical Lists



Wastewater/ treatment studies.



Emissions inventory summarising all emissions to land, water and air



Waste management plan Noise modeling report (this will be carried out by 3 rd Party, Environmental will review report)



Air dispersion study (this will be carried out by 3 rd Party, Environmental will review report)



Codes and Standards Refer to Volume 1 of the PEP and/ or the Project Environment Design Criteria 4.16.5

Automation tools

Below is a list of the tools typically used by environmental engineering on both FEED and EPC projects (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by Environmental on the project): Application

Deliverable

BREEZE ISC

Preliminary report

AERMOD-

Description air

dispersion Air Quality Analysis

CadnaA

Noise Study Report

Assessment of environmental noise

TANKS

Tank Emissions Calculations

US EPA storage emissions calculation


tank

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4.16.6

Design Subcontractors rd

It is expected that the noise modelling will be performed by a 3 party design

subcontractor Where part of the scope is passed to a subcontractor, a service requisition shall be raised in accordance to engineering procedure ‘Contracts, Subcontracts and Service Requisitions’, 3DP-G06-00002. The environmental lead is responsible for providing input to the subcontract scope document. 4.16.7

Requirements for Customer / Agent Reviews and Approvals

Reliance will coordinate with the statutory authorities and obtain the necessary statutory approvals. The environmental lead will prepare the technical documents required and also provide assistance to Reliance as part of the statutory approval process. Reliance / PMT will appoint a consultant to perform the EIA. Environmental Engineering will assist in the management of the subcontractor and review of their deliverables.

4.17 Mechanical Engineering 4.17.1

Introduction

The mechanical engineering discipline is involved in the complete project lifecycle of all items of mechanical equipment and is responsible for the engineering of this equipment. This equipment includes: 

Compressors and drivers



Pumps and drivers



Generators and drivers



Fired equipment



Pressure vessels



Storage tanks



Heat transfer equipment



HVAC



Packaged equipment



Mechanical and materials handling equipment



Major HSE equipment e.g. firewater pumps and dosing skids

The lifecycle includes identification of the need, definition of requirements, selection of solution, detailed specifications and t echnical requirements, technical evaluation of supplier proposals, conformation of specifications and requirements, post-order management and document review, support to inspection and testing and support to construction, commissioning and start-up. The sourcing strategy for equipment items, including strategy for standardisation of items and extent of packaging and modularisation, is developed through the Materials Assignment Schedule (MAS) in conjunction with Reliance and the Procurement and Contracts functions. Mechanical coordinates scope between the Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

Page 49 of 129


different engineering disciplines and ensures that scope boundaries are clearly defined on discipline design documents. The schedule for procurement of equipment will be developed to meet construction needs so typically mechanical will focus on the longest lead equipment first and then move on to the balance of equipment. Mechanical however does pay attention to the design data needs of the disciplines which can influence the schedule. 4.17.2

Organisation

The Mechanical group will be a project task force dedicated to a given project and usually split into individual commodity groups reflecting the main equipment commodities identified above. Where required the mechanical discipline will consult off-project technical specialists. 4.17.3

Work Processes and Procedures



B. Design basis, design philosophies and design guidelines In the absence of PMT project specific documents Bechtel’s own procedures and instructions will be applied. The Mechanical discipline manual within procedure 10015-G69-JG0000-1200 the project’s OG&C GBU PWI lists the standard instructions, design guides and other documents which are used by the Mechanical group. 4.17.4


The Mechanical group will produce/ undertake the following deliverables/activities in order to meet the specific requirements of the project: 











Development of sourcing strategy for equipment items including strategy for standardization of items. This is developed through the Materials Assignment Schedule (MAS) in conjunction with Reliance and the Procurement and Contracts functions. Undertake studies where required to take specific technical decisions and input to studies of other disciplines. Support to other engineering disciplines including development of preliminary data to facilitate early progress of plant design, e.g. early equipment layout data, preliminary power user summary data etc. Production of mechanical datasheets for all mechanical equipment including auxiliaries where appropriate. Datasheet production includes preliminary thermal and mechanical design calculations for sizing of shell and tube and air cooled exchangers. Purchasing philosophy is that complex and long lead items will be procured by Bechtel’s London office. For equipment items ultimately in MEC scope the datasheets, material requisition for quotation, technical bid evaluation and material requisition for purchase will be performed by Bechtel’s London office.


Page 50 of 129


























For equipment items in C2 complex where detailed design is to be performed by the Third Party Engineering contractor the Bechtel London office will complete work until the technical bid evaluation. The material requisition for purchase will be by the Third Party Engineering contractor. Any change to this philosophy shall be approved by Mechanical EGS and Project Management. Preparation of Material Requisitions for enquiry for all equipment in accordance with above philosophy. Requisitions are conformed and issued for purchase where applicable once the technical and commercial evaluations have been completed and a notice of award issued. Preparation of Material Requisitions for enquiry for all equipment. Requisitions are conformed and issued for purchase once the technical and commercial evaluations have been completed and a notice of award issued. Preparation of technical bid evaluations to evaluate supplier quotations against specified requirements and chairing bid evaluation meetings. Preparation of technical scope and requirements for contractors/subcontracts for services and materials acquired by contracts rather than purchase orders. Attendance at supplier and contractor kick-off meetings. Review of supplier and contractor documentation and coordination of review process with other disciplines and functions. Coordination of equipment interfaces and management of equipment handover to MEC engineering office and Third Party Engineering contractors. Update equipment list complete with final vendor data Coordination with Process discipline and compressor suppliers for completion of dynamic simulation predicting compressor system surge and settle out characteristics. Support of HAZOP reviews with respect to mechanical equipment and packages. Participation in 30, 60 and 90% model reviews with respect to mechanical equipment and packages



Prepare consolidated lubrication list.



Review of supplier’s spare parts and interchangeability data.



Development of typical HVAC designs for Process Plant buildings













Development of schedule of quantities and engineering drawings for refractory materials, anchors and associated materials. Review of supplier manufacturing record books and installation and operating manuals. Attendance at relevant supplier inspection points manufacture to support supplier quality inspectors.

during equipment

Witnessing of applicable equipment tests at suppliers works. Review of equipment test certificates / reports and other documentation to confirm that equipment is project compliant Review and coordination of identified close out actions following equipment testing


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Support to site personnel during installation and commissioning.



4.17.5

Automation Tools

Activities and deliverables will be undertaken using software and automation tools approved for use in the OG&C GBU and in accordance with the project approved automation plan. The principal tools used by the Mechanical Group are generally as follows (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by Mechanical on the project): Application

Deliverable

Description

Compress

Pressure Vessel data sheets

ASME pressure vessel design software

HTRI

Heat exchanger datasheets

Heat transfer equipment thermal design software

Aspen Shell & Tube Mechanical

Heat exchanger datasheets

Shell & tube exchanger mechanical design software

FRNC-5

Fired equipment datasheets

Fired equipment thermal design software

Trace

Calculations

HVAC calculations

eTank

Tank data sheets / MTO

Tank design software

4.18 Materials Engineering Technology 4.18.1

Introduction

Materials Engineering Technology (MET) provides support to project on Materials Engineering from concept evaluation to completion of commissioning. The group covers a number of specialist areas including metallic materials, non-metallic materials, welding, coatings, cathodic protection (CP), corrosion management, nondestructive examination (NDE), insulation, passive fire protection coatings and refractories. 4.18.2

Organisation

The MET team based in London will make use of central resources in MET Houston for specialist support in automated NDE, refractories and specialist coatings. The group will be led by the MET Lead Engineer whose job function is to ensure that the materials philosophy is aligned with Project requirements and that the MET activities follow the philosophy. The MET Lead will have a working knowledge of all MET specialist areas and will serve as the focal point for contact with the off-project MET specialists. 4.18.3

Work Processes and Procedures




Page 52 of 129


B. Design basis, design philosophies and design guidelines In the absence of PMT project specific documents Bechtel’s own procedures and instructions will be applied. The MET discipline manual within procedure 10015-G69JG0000-1200 the project’s OG&C GBU PWI lists the standard instructions, design guides and other documents which are used by the MET group. 4.18.4


The MET Group will be responsible for the following activities, as applicable to the project: 

Verification of Selection or verification of PMT project specific documents and revisions as required.



Materials of construction to meet specified site conditions and process conditions (including non-normal operating conditions) for the project design life. This will result in the production of Material Selection Guides (MSGs) detailing the rationale behind the selection of materials and Material Selection Diagrams (MSDs) defining the materials, associated design limitations and the corrosion mitigation measures.



Review of other disciplines specifications for materials and fabrication consistency and compliance. To ensure that the requirements associated with MET activities are adequately covered, MET review P&IDs, LDTs and Mechanical datasheets. MET also work with REs to ensure that the required MET documents listed in materials requisitions



Metallurgical engineering consultancy to engineering disciplines and project functions, including support to HAZOP and to SIL evaluation.



Developing corrosion management practices that include chemical treatment (e.g. corrosion inhibitors), coatings / linings, corrosion monitoring, cathodic protection design and commissioning.



CP design philosophy.



Prepare calculations for CP and thermal insulation.



Prepare CP datasheets defining the requirements for CP hardware



Preparation of technical scope and requirements for CP site survey, insulation, passive fireproofing and painting.



Developing guidelines and standard details for insulation and for passive fire protection. These to include standard drawings for insulation and fireproofing supports designed to minimise the risk of corrosion under insulation (CUI) and corrosion under fireproofing (CUF).



Provide metallurgical support to the preparation of technical scope of work for fabrication subcontracts.



Preparation of MTOs for insulation, coatings, fireproofing and CP materials and equipment in accordance with cost estimation and acquisition strategy requirements.



Vendor data reviews related to materials, welding, NDE, insulation, fire protection, coatings and cathodic protection.



Provide technical support to construction and subcontracts for MET technologies. This will include response to site queries.


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4.18.5

Automation Tools

Activities and deliverables will be undertaken using software and automation tools approved for use in the OG&C GBU and in accordance with the project approved automation plan. The principal tools used by the MET group are as follows (refer to Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by MET on the project): Application

Deliverable

Description

3EPlus

Insulation Calculations

Insulation Calculation Software

ECE

Material Selection Calculations

Electronics corrosion engineering

4.19 Civil, Structural and Architectural 4.19.1

Introduction

The CSA Lead Engineer is responsible for the execution of the Civil, Structural and Architectural engineering scope of work for the project. At the commencement of the project the CSA Lead shall read the contract, tender bulletins, clarifications and bid narratives in order to achieve familiarity with the CSA scope for the project. Then the CSA Lead will participate in the preparation of the overall project schedule in addition to the CSA schedule and the engineering execution plan. Decisions required for the CSA group that need to be addressed by the CSA engineering execution plan include: 









Structural steel standard sections sizes list in accordance with the current mill programme in India and international markets. Technical analysis and life cycle costing followed by recommendations for precast or cast in-situ reinforced concrete. Laying down principles for pre-assembly design or full modularization of structures when project wide decision is taken to standardize and carry on modular concept of structural design. Then modularization would have to involve all other engineering disciplines in an attempt to integrate the design, control of weight and centre of gravity of the proposed modules for lifting, transport and in-place conditions. Bechtel in-house engineering instruction shall apply: 3DI-G04D-00005 Modularization Implementation Guide, together with 3DI-G04D-00016 Weight and Center of Gravity Management for Module Program (FEED and EPC). After completion of scope definition (with client assistance), scheduling, budgets and staff planning the initial activities normally consist of preparation or revision of the CSA design bases, material and construction specifications along with standard detail drawings as might be required to supplement the design bases, specifications and standards have issued for the project by PMT. Initial design data gathering methodology which will comprise local topography and hydrology, geotechnical and climatic conditions. In general it


Page 54 of 129


has been reasonably assumed that interpolation of the existing data will be justified in order to arrive at acceptable design parameters and to conclude on assessment of the local conditions. However there will be instances when more specific and actual engineering judgment has to be made e.g. soil conditions at compressors and building locations, supplementary topographical survey, or local information on streams and watercourses. In such cases supplementary site investigations will be recommended in order to support front end engineering design. 4.19.2

Organization

The CSA group is typically organised as a project task force dedicated to a given project and usually split into Civil, Structural and Architectural sub groups to service the requirements of the work scope as defined above. Each sub group is led by a specialist engineer who reports to the overall CSA Lead Engineer. Where required the CSA discipline will consult off-project technical specialists (e.g. Bechtel’s computational fluid dynamics, blast analysis, or geotechnical, seismic and hydraulic services groups) and liaise with other disciplines. 4.19.3




B. Design basis, design philosophies and design guidelines In the absence of PMT project specific documents Bechtel’s own procedures and instructions will be applied in accordance with Project Work Instruction 10015-G69JG0000-1200 to be issued by Project Engineering. 4.19.4


EDP-3DP-G04-00047 Engineering Deliverables to Procurement, Construction and Start-up in its Exhibit A provides a list of CSA standard deliverables which will be issued for procurement and construction following reviews and approvals. These are: 

3D models



Bulk material bills and schedules

EPPR





Material Requisitions MR (but only for specialized materials and/or building components)



Engineering and construction specifications if not provided by PMT



Architectural standard details if not provided by PMT



Architectural specifications, drawings, plans, schedules and details



Civil and Structural standard details if not provided by PMT



Civil and Structural calculations, specifications, drawings, profiles, plans, schedules and details


Page 55 of 129


CSA design work shall be co-ordinated with other design disciplines, vendors and construction as follows: 





Plant Design & Piping group – ground elevations, location of buildings, roads, fences, ponds, tank bunds etc.; location and size of all structural members and foundations; location and size of above and below ground pipes. Electrical group – size of substations, transformer bays, cable tray routing and electrical rooms. Control Systems group – size of control rooms, instrument equipment shelters; location and size of cable trenches.



Process Group – underground utilities



Mechanical group – equipment data and HVAC room requirements.







Process Safety group – hazardous area classifications for blast loads and fireproofing, fire water system and human factors design. MET group – specification of fireproofing system, grouts, waterproofing etc. Environmental group – Waste water treatment facilities, geotechnical and bathymetrical survey requirements.

Vendors – equipment data, fabrication drawings.

Construction – constructability, equipment and module transportation method and route, construction sequence.









Reliance Plant Operation Departments at Jamnagar – method of working within existing facilities, access, work permits, site measurements and in-situ structural testing if required to assess structural integrity of existing structures or foundations. There will be instances in which an extensive site measurements and sometimes detection of existing underground services have to be carried out in the absence of construction as-built documents. Site visit findings shall then be recorded and site survey reports issued as appropriate.

Where design work is subcontracted to a third party t he Lead Engineer is responsible for the preparation of bid documents, technical reviews and supervision of the third party and verification of the design deliverables. 4.19.5

Automation Tools

The following is a list of the BSAPs typically used by CSA (refer to Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by CSA on the project): Application

Deliverable

Description

Founds PDS 3D SmartPlant Review FrameWorks GTStrudl InRoads MATHCAD STAAD.Pro Tekla Structures

Foundation design 3D Model 3D graphics Structural 3D Model Structural Calculations Civil Drawings General calculations Structural Calculations Structural steel design

Foundation analysis and design 3D modelling tool 3D graphics viewer 3D modelling and steel drawings Structural analysis and design Grading and drainage Design calculations Structural analysis and design Structural design, view, and


Page 56 of 129


Application

Deliverable

Description

WinDes Microstation

and detailing Drainage Calculations 2D CAD

detailing Drainage design software

Limcon

Structural Calculations

Steelwork Connection Design

General arrangement and detail drawings

4.20 Plant Design and Piping 4.20.1

Introduction

This section outlines PD&Ps organisation, responsibilities and deliverables. PD&P is responsible for the plant layout, taking into consideration safety, escape routes, operation, maintainability, accessibility, economics, and constructability. Other areas of responsibility also include producing a piping material take-off to be used by Estimating in preparing the required cost estimate, or for purchase of bulk materials. The London PD&P team is predominantly responsible for Front End deliverable production whilst MEC are responsible for Detailed Design. 4.20.2

Organisation and Areas of work

The discipline is organised into a task force based team under the control of the PD&P Lead Engineer both in London, MEC and Third Parties, as indicated in the DOR. The group is split into a number of sub groups which have responsibility for various areas of work which are described in the sections below. 4.20.2.1

Plant Layo ut

The PD&P Lead Engineer shall be responsible for the execution of the Plant Design and Piping scope of work for the project. Development will start as soon as possible after project commencement with the aim of providing the basic geometry of the facilities to all design groups. The development work shall progress in line with the Plant Design work process diagram In addition the PD&P Lead is responsible for the preparation and issue of Vessel Orientation and elevation sketches for all pressure vessels which require development input from PD&P. These sketches may be issued directly to vendors, subject to APE / PEM approval, and shall be prepared in accordance with the following Engineering Instruction. 4.20.2.2

Pipin g Materials

In London and MEC, the Piping Materials Lead Engineer shall be responsible to the PD&P Lead for the development of the piping material service class index, piping class detail and stock code index. Piping classes are detailed to allow the use of the piping commodities database throughout the project. Component materials shall be selected in accordance with the project Material Selection Diagrams prepared by the project MET group. The wall thickness of all piping components shall be calculated in accordance with the ‘Procedure for Supplementary Wall Thickness’ to ensure economical and correct materials are specified and incorporated into t he physical design. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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4.20.2.3

Piping Material Contro l

The MEC Piping Material Control Lead Engineer shall be responsible to the MEC PD&P Lead for the schedule and coordination of all piping material control activities in accordance with engineering instruction ‘Piping Material Control’ and the ‘Material Control’ work process diagram. This activity will be performed by MEC as part of the Detail Design. These shall be used to identify, monitor and quantify all piping material bulk quantities, whilst minimising the impact of both internal and external (client) changes on TIC, thereby minimising piping material surpluses and eliminating piping material shortages. Consolidation of overall J3 piping commodities will be covered by PMT and purchased centrally by PMT. Preparation review, approval and control of material requisitions for the procurement of materials shall follow the Engineering Instruction ‘Material Requisitions and Purchase Memorandum’. A matrix of responsibility will be created and issued by PMT to identify which components will be requisitioned by MEC or PMT. To allow for cut waste and damage, additional bulk allowances shall be considered, over and above the neat MTO quantities when purchasing materials and shall follow the engineering instruction ‘Bulk Material Allowance Guidelines’. Allowances will be determined by PMT with input from the MEC piping team. According to the responsibility matrix, bids received for piping materials shall be technically reviewed by the appropriate Piping Materials Lead Engineer and a bid tabulation prepared, as required by engineering procedure ‘Technical Bid Evaluation’ (by PMT). If the project schedule dictates that piping materials require to be purchased, prior to the design being Issued for Construction (IFC), The management instruction and Plant Design Guide for pre-buy and approval of piping bulk materials shall be followed. This may be necessary due to market conditions such as long lead times, project schedule, and material cost escalation etc. (by PMT). 4.20.2.4

Pipin g Stress and Supp orts

The Lead Engineer for Piping Stress and Support shall be responsible to the PD&P Lead for the preparation of the stress critical line list that will form the basis of the project stress analysis activity. The stress and pipe support work shall progress in line with the stress analysis and pipe support design work process diagram Pipe stress analysis will be performed to ensure that piping flexibility, supports, and layout are in compliance with all applicable codes and project requirements. Piping stress loads imposed on equipment nozzles (especially pumps and compressors) will be checked and compared to maximum allowable and submitted to the mechanical group for review and approval where necessary. Load sketches shall be used to transmit structural loading information to the CSA engineering group. These sketches are initiated by the Area Designer and passed to the PSS engineer for load data input. These are then reviewed and signed off by PD&P and CSA Leads and issued into the project document management system The Piping Stress Engineers will prepare, check, approve, revise, file, retain, and release calculations


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4.20.3


The Plant Design and Piping Groups in London and MEC are responsible for the following deliverables: 

Overall Site Plan (London)



Unit and Offsite Plot Plan Key Plan (MEC)



Unit and Offsite Plot Plans (MEC)



Piping Material Service Class Index (London / MEC)



Piping Material Class Detail (London / MEC)



Piping Material Stock Code Index (by PMT)



Piping Material Requisitions (by PMT)



Pipe-rack ‘Loading’ Drawings (MEC)



Area Piping Plans (MEC)



Fabrication Isometrics (MEC)



Engineered Pipe Support Datasheets ( Springs, struts dampers etc.) (MEC)

4.20.4




B. Design basis, design philosophies and design guidelines In the absence of PMT project specific documents Bechtel’s own procedures and instructions (refer to 10015-G69-JG0000-1200) will be applied. For example: 

Master Indices - OG&C



Work Process Diagrams - OG&C



Instructions - OG&C



Design Guides - OG&C



Standard Details - OG&C



Specifications - OG&C



Forms & Templates - OG&C



Other Information - OG&C

Where an EDP has been modified to incorporate OG&C requirements, this EDP will be issued as an EDPI (Engineering Department Procedure Instruction) and should be incorporated into the work process accordingly. Appendix 4 - 3DP-G01-01004-002 Matrix for Implementation of EDPs on Oil, Gas and Chemicals (OG&C) Global Business Unit (GBU) Projects


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4.20.5

Contracts, Subcontractor and Service Requisitions

Where part of the design scope is passed to an engineering subcontractor, the PD&P Lead is responsible for providing input to the subcontract scope document, as well as providing the list of specifications and technical requirements. 4.20.6

PD&P Automation Tools

Refer to the Project Automation Plan 10015-G05-JG0000-1001 for the list of tools used by PD&P on the project. 4.20.7

3D CAD Model

The MEC piping group will deploy the PMT standard set up of the 3D CAD model i.e. PDS and ensure that the model is developed in line with the Plant Design work process diagram, and the milestone phases as set out in the contract documents and 3D Model Review Instruction. PMT are responsible for developing and deploying a standard step-up and configuration file (SEED) structured to meet project requirements. This shall then be used by each execution centre. In addition PMT are responsible for maintaining the Piping Reference Database (RDB) to reflect project pipe classes required throughout each execution, any updates and maintenance of the central RDB will be by PMT and subsequently reissued to each execution centre. Continual input and approval (both internal and from the client), by means of scheduled model reviews, as appropriate, will be obtained from all other engineering disciplines as development progresses. Throughout the design of the project, the Plant Layout and Piping group will retain overall ownership of the 3D CAD model for those areas within the O’s and U’s, Marine and CPP scope, and will be responsible for the space management within it. 4.20.8

Constructability and Design for Safe Construction

Assessment on plant constructability shall be based on interdisciplinary reviews organised by the Construction Coordinator (CC), performed periodically during the design phase. Home office engineers participate in the plant and units overall and individual constructability reviews with the other concerned discipline leaders in order to incorporate experience of safety, start-up, engineering, and construction in the facilities design and provide safe and easy construction and start-up of the overall plant and units. The Plant Layout and Piping lead shall be responsible for the incorporation of any agreed constructability actions affecting the plant layout and piping scope of work. Refer to document 10015-G69-JG0000-1294 “Design for Safe Construction” and its attachments.

4.21 Control Systems and Instrumentation 4.21.1

Introduction

The Control Systems and Instrumentation group forms part of the Project Task Force and is responsible for all issues relating to the specification and design of all control systems and field instrumentation on the project.


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4.21.2

Organisation

The Control Systems and Instrumentation engineering and design will be managed by a dedicated Lead Engineer with knowledge of design and equipment application suitable for the project scope and design conditions. The team shall comprise a number of experienced specialist engineers and designers reporting to the Lead. The Lead will participate in preparing the engineering execution plan for the project. The Lead will also be responsible for quality, correctness, scheduling and progress of the discipline deliverables on the project. The Control Systems team shall be responsible for the execution of the control system and instrumentation scope of work. The team shall be organised to provide the following major technical capabilities to meet the overall Project Staffing Plan developed to support the Project objectives as applicable: 

Centrally Engineered Systems 

Distributed Control System (DCS)



Emergency Shutdown System (ESD)



Fire and Gas System (F&G)



Compressor Controls System (CCS)



Machine Condition Monitoring System (MCMS)



Analyser Systems



Auto Tank Gauging (ATG)



Fiscal Metering Systems



General field instrumentation



Actuated valves including Control Valves, On-Off Valves etc.



Mechanical packages



Physical design and layout



SPI and data validation

4.21.3

Procedures and Design guides

Generally engineering will be completed using the JERP project basis, all specifications, philosophies and standard drawings will be reviewed, revised (as necessary) and issued for the J3 Project. A number of Project Standards, Specifications, Procedures and Philosophies etc. may also be issued by PMT. 4.21.4


The Control Systems team shall be responsible for the following key activities: 



Interfacing with the Client PMT, suppliers and internal disciplines Conducting site surveys / studies of existing systems for integration of Centrally Engineered Systems



Defining project scope and deliverables



Prepare staffing plans, job-hour forecasts and schedules


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

Monitoring, controlling and reporting engineering progress and performance



Approving drawings, specifications, Material Requisitions (MR) etc.



Review of bids and preparation of Technical Bid Evaluations (CES)



Ensuring all deliverables meet the minimum quality standard





Ensuring the design and selection of instrumentation and control systems is in accordance with applicable design codes and relevant industry local and international standards. Validation of all data required to be exchanged with system vendors, this will require the cooperation of all contractors



Interfacing with the Bechtel Project Management Team



Developing and administering the DCCL and DRNs



Establishing DOR between execution centres



Review of vendor documentation

4.21.4.1

Contr ol Syst ems Deliverables

The Control Systems team will produce the following deliverables: 

Studies



Instrument Datasheets



Instrument Index



SPI Database



Level Coordination Sketches



System I/O List/database



System Block Diagrams



Complex Loop / Logic Narratives



Alarm Set Point Schedules



Interconnection Diagrams



Loop/Segment Diagrams



Instrument Installation Details



Instrument Location Drawings



Cable Block Diagrams



Control Room & PIB Layouts



Standard/Typical Drawings



Bulk MTOs



Material Requisitions



Technical Bid Evaluations



Miscellaneous Schedules

4.21.4.2

Inter Discip line Interfaces

The Control Systems team shall interface with the following disciplines for key deliverables and activities: Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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

Project Engineering (P&IDs, C&Es, Process data for instruments and valves)



Plant Design & Layout (Plot plan requirements for analyser shelters and PIBs)



Mechanical (Packaged and rotating mechanical equipment)



Electrical (UPS / auxiliary power supply requirements, instrument cable routing and motor control)



Civil (Control Room layout and PIB requirements)



Safety (Fire and Gas C&E, input to location plans, HAZOP and SIL)



Metallurgy (painting, welding and material certification)

4.21.4.3

Requirem ents for Client Reviews and Ap pro vals

Client approval will be required for the following key documents: 

System Block Diagrams



Standard Drawings



Specifications / Standards



Control Room & Instrument Equipment Room Layouts

Client review will be required for the following documents: 

Instrument Datasheets



Instrument Index



Instrument Layouts



Cable Block Diagrams



Loop Diagrams



Segment Diagrams



Interconnection Diagrams



Alarm and Trip Schedule

4.21.5

Automation Tools

The Control Systems team generally use the following Bechtel Standard Application Programmes (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by Control Systems on the project): Application

Deliverables

Application Description

Flowel Infomaker

Calculations SPI Reports

Smartplant Instrumentation (SPI)

Instrument index, data sheets, loop diagrams, wiring, installation details and bulk MTO’s Cable, Raceway and Wiring System

Flow element sizing calculation software Reporting tool required for use with Intergraph’s SPI application Instrumentation design

SETROUTE

MicroStation

2D CAD

Integrated with SPI to provide cable source and destination details for cable routing Location / Diagrams

Layout


drawings

and

Block

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4.21.6


Subcontractors selected for the project will be required to follow the project standards, specifications and utilise

4.22 Electrical and Telecommunications 4.22.1

Introduction

The following provides an overview of the Project Execution plan for the Electrical and Telecommunications discipline for the O&U and Marine Facilities scope of work on Reliance J3 project and focuses on the design process, deliverables and team organisation. 4.22.2

Organisation

The Electrical and Telecommunications team shall be part of the Project Task force and will be managed by a dedicated Lead Electrical Engineer with knowledge of design and equipment application suitable for the project scope and design conditions. The team shall comprise a number of experienced specialist engineers and designers reporting to the Lead. The Electrical and Telecommunication team shall be responsible for the execution of the Electrical and Telecommunication scope of work. The Lead will participate in preparing the engineering execution plan for the project. The Lead will also be responsible for quality, correctness, scheduling and progress of the Electrical and Telecommunication deliverables on the project in accordance with agreed budgets and schedule. The Telecommunications discipline is a sub-discipline of the Electrical Group. See Section 5.23.4.2 for further details. The FEED and basic engineering shall be executed in Bechtel- London and the work shall be transferred to the Mumbai Engineering Centre (MEC)/Third party contractor for detail engineering. MEC/Third party contractor shall have dedicated engineering teams with their own lead engineers. 4.22.3


Generally, Engineering will be completed using the supplemented by the following documents issued by PMT: A.

JERP

project

basis,


B. Design basis, design philosophies and design guidelines

In the absence of PMT project specific documents, Bechtel’s own procedures and instructions will be used. For example: 

Master Indices - OG&C



Work Process Diagrams - Multi-GBU



Instructions - OG&C



Design Guides - OG&C


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

Standard Details - OG&C



Specifications - OG&C



Data Sheets - OG&C



Appendix 4-3DP-G01-01004-002 (Matrix for implementation of EDPs on Oil, Gas and Chemicals (OG&C) Global Business Unit (GBU) Projects).



3DP-G03-00006 Engineering Progress and Performance Report (EPPR)



3DP-G04-00008 Engineering Constructability

4.22.4


The Electrical and Telecommunications team shall be responsible for the following key activities: 

Interfacing with the Client, PMT, suppliers and internal disciplines



Site surveys to establish / understand interfaces with existing facilities



Defining project scope and deliverables



Definition of applicable Codes and Standards.



Prepare staffing plans, job-hour forecasts and schedules



Monitoring, controlling and reporting engineering progress and performance



Approving drawings, specifications, Material Requisitions (MR) etc.



Ensuring all deliverables meet the minimum quality standard.





Ensuring the design and selection of Electrical and Telecommunication systems is in accordance with applicable design codes and relevant industry local and international standards. Managing engineering and procurement technical services for Centrally Engineered systems (electrical and telecommunication packages)



Interfacing with the Project Management Team.



Developing and administering the DCCL and DRNs



Establishing DOR with other locations (e.g. MEC.)

4.22.4.1

Electrical Engi neering

The following basic documents will be issued for design following review and approval as required: 

Load summary



Overall single line diagram



Typical Metering and Protection single line diagrams



Data sheets



Block diagrams, e.g. for – Power Management System (PMS)



Preliminary Substation equipment layout drawings Preliminary main cable routing layout drawings


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MRQs for the major electrical equipment will be prepared and issued at the earliest opportunity in the project consistent with supporting documents required to fully define their requirements (updated specifications, drawings and data sheets). Calculations will be prepared including: 

Power system analysis using ETAP (load flow, transformer tap settings, voltage profiles, fault levels, motor starting, transient stability studies, harmonic analysis, etc.)



Equipment ratings



Cable sizing



Earthing studies

Co-ordination with other disciplines will continue throughout the design phase to ensure interfaces are fully engineered, for example: 











Civil / Structural group – underground trench & duct locations, space allocation on pipe tracks for cable r acks, equipment supports, etc. Control systems group – motor control requirements, instrument power supplies, spacing of power and instrument cables, interfacing PMS with DCS, etc. Mechanical group – power supplies to electrically driven rotating equipment, auxiliary power supplies, physical locations of equipment requiring power supplies, etc. Plant Design & piping group –Size, location of substations, outdoor equipment, 3D model, Underground Direct Buried Cable Routes, etc. Process Safety group – area classification drawings, etc. Process group – motor loads requiring re-acceleration following power failure, process loads and trace heating requirements, etc.

Coordination will be carried out with engineering contractors/third-party agencies for design and engineering of centrally engineered systems like Power Management System, Motor Control and Management systems, CCTV and Telecommunication systems. In addition, coordination will be carried out with engineering contractors/third-party agencies nominated by client to identify all interface requirements. Physical design will commence with substation equipment layouts, main cable routes space allocation and area classification drawings. On receipt of major equipment quotations, technical and commercial bid evaluations will be carried out and recommendations for vendor selection made. In addition “frame agreements” will also be set up as necessary to support the project standardisation plan. These frame agreements would be passed to the suppliers of Mechanical equipment/ packages to supply selected material commodities from these nominated suppliers, for example LV/HV motors where appropriate. Placement of orders will be based on technical acceptability, ability to meet schedule and compliance with document requirements. Detail design will be developed up to IFC status and will include: 

Single line diagrams



Area classifications


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

Standard installation drawings



Substation equipment and power layouts



Cable trench, rack and duct layouts



Cable schedules using SETROUTE for cable control



Earthing layouts



Lighting and small power layouts



Power layouts



Distribution board schedules



Interconnection diagrams



Direct Buried Cable routes.



Material Take-off (MTO)

The load summary will be updated on an on-going basis to reflect confirmed motor and auxiliary load ratings. Bulk material requisitions will be prepared, issued for quotation, bids evaluated and issued for purchase based on design quantities. Vendor documentation will be received, reviewed (where necessary commented upon), and issued Bechtel code 1 when approved (manufacturing may proceed). Necessary coordination shall be carried out with the vendors to ensure smooth execution of the order from equipment drawing review stage to the factory testing and dispatch stage. The design will be progressed to incorporate vendor information as applicable. The power system study will be updated to incorporate actual equipment parameters relevant to the study. Relay coordination and setting studies will be carried (utilising ETAP “Star” module) and setting schedules produced indicating relay configuration and calculated settings. Motor re-acceleration studies will be carried out, if required, and schedules produced listing motors requiring re-acceleration, re-acceleration groups and time settings. Engineering will participate in the witnessing of testing, at vendors works, of major electrical equipment. Engineering will support the regulatory and other authorities with necessary inputs and vendor documentation to ensure timely approval and issue of certificates and work permits. As construction progresses, engineering support will be provided to ensure successful, on schedule completion of the electrical installation. 4.22.4.2

Telecom mu nic ations Engin eering

The telecommunications engineering scope will be managed by a specialist Telecommunications Engineer reporting to the Lead Electrical Engineer.


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The implementation and procurement philosophy will include an appropriate level of packaging of systems to obtain benefits of systems integration and economies of scale balanced with vendor capabilities and the most cost effective approach. It is envisaged that a single Telecommunications Integrator will be appointed to be responsible for the detailed design, supply, factory testing, installation oversight and commissioning of all industrial telecommunication systems, IT networks & data services, and site security facilities. The purchase of optical fibre and other telecommunication cable is foreseen to be carried out separately, as will the supply of bulk materials for telecommunication systems. The Telecommunication sub-group will prepare scope of work statements for inclusion within an E&I Installation Subcontract scope as well as for Building Subcontract(s) as appropriate. Commissioning of the various systems will be carried out with support from the Telecommunication Integrator, its sub-vendors and manufacturers as required. The following Telecommunications work will be carried out in advance of placing orders with the Telecommunications Integrator and material supply vendors: 

Produce system designs and data sheets.



Prepare conceptual system block diagrams.



Conduct necessary telecom studies



Prepare preliminary typical external equipment location and typical main cable routing layouts.



Prepare preliminary MTOs and equipment lists.



Prepare preliminary typical telecommunication building layouts.



Prepare ITB enquiry packages.



Send out ITB to selected bidders for the Telecommunication Integration package.



Issue RFQs to potential material vendors.



Carry out technical bid reviews and award recommendations.

The design work that will be executed on award of the Telecommunication Integrator package is as follows: 



Input and control of inter-discipline interfaces. Review the Telecommunication Integration subcontract / purchase order package with respect to project, international and national standards and specifications.



Review the individual design criteria for the various sub-systems.



Review all Integrator and other vendor documentation and data.



Review vendor factory acceptance test procedures and test reports/records



Review all sub-system studies e.g. radio propagation and PA system coverage, optical link budgets, UPS load schedules, HVAC heat gain estimates, etc.



Co-ordinate IP addressing and telephone numbering plans



Review equipment tag numbering schedules



Monitor the installation, testing and commissioning of all sub-systems.


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It will be the function of the Telecommunications sub-group to control and to monitor the Telecommunication Integrator’s and Telecom material vendors’ performance and progress and to ensure that the proposed design is fully compliant with Client specifications, and to oversee that the appropriate approvals / acceptances are obtained from the relevant in-country organisations. The Telecommunication system design will make provision for a data centre suitably equipped for accommodating all the Client’s servers and related equipment. Necessary interfaces with the Client’s Wide Area Networking (WAN) facilitie s will also be incorporated in the design so as to achieve integration between plant telecommunications and Client’s IT and other communication systems. Facilities for entire site security management including access control, intrusion detection and CCTV surveillance will be specified as necessary and incorporated into the Telecommunication Integrator’s scope. Key design deliverables produced will include: 

A consolidated design criteria document.



Functional Design Specifications



System & Equipment data sheets



Conceptual system block diagrams.



Procurement specifications and data sheets



Interface Schedules



Equipment location layouts



Main telecommunication cable routing layouts



Equipment and material schedules.



Tag numbering lists



Operation manuals and documentation (by Integrator).



Cable schedule



Interconnection diagrams (by Integrator, as appropriate) .



Installation documentation

4.22.5

Automation Tools

Following is a list of the tools typically used by the Electrical and Telecom discipline (refer to the Project Automation Plan 10015-G05-JG0000-1001 for the actual list of tools used by PD&P on the project.

Application Name

Application Description

ETAP PowerStation

Electrical Transient Analysis Programme

ETAPStar

Programme to aid in protective relay coordination

PDS 3D Raceway)

(EE

3D modelling tool for electrical raceways (cable tray, conduits, duct banks, channels, etc.) Modelling of electrical equipment, junction boxes and off-


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line instruments. SETROUTE

Cable and raceway tracking system

AGI32 (lighting)

Lighting design programme

4.22.6


Where part of the design scope is passed to an engineering subcontractor, the Electrical/Telecom Lead will be responsible for providing input to the subcontract scope document as well as providing the list of procedures and design guides that shall be used, copies of which shall be made available to the subcontractor with the service requisition enquiry.

4.23 Document Management 4.23.1

Introduction

This section describes the responsibilities of the Document Management Group, which is primarily responsible for the control and dissemination of information throughout the project. This includes implementation of the document management system for the control, maintenance, retention, and turnover of all project information including correspondence, drawings, documents, hard copy records, etc. Document management functions for the project will be based on related projectspecific policies and procedures. Those procedures will define work processes for document control, correspondence, e-mail protocol and control, action tracking, document distribution, standard numbering and/or file naming conventions, hard copy filing, etc. Integrity of project records is a primary concern, and, in accordance with standard project QA/ QC and Engineering procedures, scheduled internal audits will ensure that documented procedures and work instructions reflect actual work processes and that document management activities support configuration management requirements. InfoWorks, a Documentum-based EDMS, will be used as the records management tool for the project. All project personnel will be granted access to the docbase, providing them with the ability to search for and retrieve documents as needed. To protect confidential information, access to documents in the docbase will be limited and controlled by assigned permission levels. eRoom will be used as a collaborative tool to provide a secure platform for exchanging information with the Client, participating suppliers and subcontractors. External suppliers, vendors, and subcontractors shall upload documents into eRoom to submit to the project for review and approval and to download them after the review process completion. The document management group has overall responsibility for: 





Management of all project documents (e.g., general correspondence, reports, plans, drawings, change documents, specifications, calculations, subcontracts, supplier documents, manuals, etc.). Implementation of an electronic document management system. Development and implementation of procedures to meet the requirements of the project team, functional guidance, and contractual prerequisites.


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





Establishment of a document management system to maintain electronic files and/or hard copy files that will meet corporate, legal, and customer requirements. Preparation and implementation of a records retention and turnover plan (RRTP). Coordination and staffing of document control support for the project and field locations.



Technical support for InfoWorks and electronic mark-up



Provide training in usage of tools to the project personnel

4.23.2

Organisation

The document management group is comprised of personnel at both clerical and professional levels that provide document control (life-cycle) support to project personnel. The document management supervisor leads the group and is responsible for: 





all document management related activities at all project locations budgeting, staffing, procedure development, and training of all personnel in the work processes coordination with the customer, partner, external groups, and vendors regarding document management functions.

Within the group, individuals will be designated to process various document types such as design documents, supplier document, change documentation, and other documents in InfoWorks. They will be responsible for logging, scanning, reproducing, distributing, and maintaining records. Equipment will be acquired to allow copying, binding, and scanning to be performed in-house as part of the routine work process of document control. Services from outside vendors will be required to meet high volume production, project schedules, and reprographic functions. With support from document management group, the administrative staff will prepare correspondence, reports, meeting minutes, and other general documents using InfoWorks to manage the process. The same staff will update and maintain the status of open action items generated by correspondence in the InfoWorks. 4.23.3

Tools and Methods

InfoWorks will be the programme used for document control and records management by Bechtel. It allows for electronic management and control of the project-related documents generated and received by the project. The InfoWorks docbase will be used to manage a document’s life -cycle from creation, distribution, use, and maintenance to eventual archiving. InfoWorks functions as a secure repository for project records, including contract and subcontract documents, correspondence, design documents, reports, manuals, plans, reference documents, third party documents, etc.


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Documents not available electronically will be scanned and entered into InfoWorks by document management personnel according to applicable project procedures. Documents that are available in their native format will be entered as such into InfoWorks as part of the work process. If documents are generated and issued from locations other than the project office, the project document management supervisor will establish the required remote access to the docbase and provide training in InfoWorks and document management procedures/processes to appropriate staff. Document management supervisor will prepare a Records Retention and Turnover Plan (RRTP) and will identify the various information types and their disposition at project closeout. The RRTP will be coordinated with functional management, project management, and the customer. All documentation officially received or released by the project team will be processed through document management, which will register, process, reproduce, distribute, file, and retain the incoming or outgoing project documents. Document management will regularly distribute reports or establish virtual queries in InfoWorks to assist project personnel in reviewing the status and expediting actions on required responses to communications, incorporation of approved changes into controlled design documents, review of subcontractor submittals, and similar processes. Based on criteria established in the document management procedure, e-mail recipients or originators are responsible for determining if a specific e-mail message should be part of the project record, at which time they will submit it to document management for processing through the use of an established Outlook mail address. 4.23.4

Project Closeout

Based on review of the contract and discussions with the customer, functional management, and project management, the RRTP will identify the various information types, turnover media, and disposition requirements for hard copy and electronic records. The plan will identify documents to be retained by Bechtel as business records and identify those documents required for turnover to the customer. The plan will indicate custodial requirements for project retention and the media for retention. See Section 12 for more details of project close out activities.

5 Procurement Plan 5.1

Overview/ Work Plan

The Project Procurement Execution Plan will provide details of p rocurement’s scope and execution strategy for the project consistent with the scope and goals outlined in the proposal implementation strategy and the Prime Contract. This will include any pre-award or pre-notice-to-proceed activities and associated deliverables and any customer deliverables that support or affect the procurement effort. The plan will address key areas including: 



Shop expediting and shop supplier quality surveillance, prime contract and financing requirements affecting performance, control and support office responsibilities, project procurement deliverables, organization and special customer, joint venture or consortium arrangements. Identify any other project requirements or other issues which have the potential to significantly impact cost, schedule or quality on the project.


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The PPM will also review the Prime Contract to identify any specific, financing institution geographic limitations on bidders, documentation requirements, host country applicable law and restrictions, approved vendor list. This will include identifying any Customer Procurement approvals, local content requirements, ES&H and QA requirements The Material Assignment Schedule (MAS) and Division of Responsibility (DOR) (see section 4.10) will be developed in collaboration with engineering, contracts and construction identifying the roles and responsibilities of the various project execution centres. Regular oversight will be provided by the GBU functional management team to monitor and ensure quality and schedule performance.

5.2

Matrix Organisation

The Project Procurement Manager (PPM) will identify the staffing requirements for the project procurement positions, defining the procurement objectives in support of the project goals and manage the procurement work to meet the cost, schedule and quality objectives established by the Prime Contract. The PPM will develop the procurement strategies, specific job procedures, execution plans, budgets, staffing plans, execute the work and maintain effective working relationships with customer personnel. The PPM will continuously monitor quality, schedule, cost and customer satisfaction and ensure that action is promptly taken to resolve any problems. The PPM will manage the individual functions of the Bechtel Procurement functions, Purchasing, Expediting, Supplier Quality and Traffic and Logistics into an efficient running operational Project Procurement team. The PPM will ensure that the project Procurement team fully understand the project goals, is dedicated to the success of the Project, and fully support a team approach that encourages identification of issues before they become problems and offer solutions before they become critical. The following chart shows a typical project procurement team matrix organisation.


Page 73 of 129



Page 74 of 129


Procurement is made up of various functions as identified on the above organisation chart. These functions have specific roles and responsibilities as detailed in the following process flow chart.

A detailed description of these roles and responsibilities are detailed overleaf.


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5.2.1

Purchasing

The Project Purchasing Supervisor (PPS) report to the Project Procurement Manager (PPM) for all Project execution activities. The specific duties and responsibilities will include: 











Supervise assigned personnel in the orderly performance and completion of project procurement commitments. Post award administration of identified project purchases to ensure, in conjunction with other functional department, performance of each order in accordance with the contracted terms and conditions and project requirements. Train newly assigned purchasing personnel in the requirements and procedures of the GBU, project and customer. Supervise preparation of recommended bidders list for inclusion in to project vendor lists, ensuring input is received from all procurement functions, engineering and other operational groups. Develop project purchasing procedure(s), operating procedures for review and approval as required by corporate procedures and inclusion into the project procurement procedures. Coordinates purchasing operations in both the project’s control office and support offices to assure compliance with project requirements.

Project Buyers will report to the PPS for project execution and direction. In the absence of a PPS, the project buyers will report to the PPM for project direction and the Purchasing Manager for functional direction. Specific duties and responsibilities will include: 

Preparing bidders lists



Issuing bid requests



Coordinating vendors’ questions



Receiving bids

After the purchase order is issued, the buyer administers assigned purchase orders by: 











Establishing files and controls for all outgoing and incoming correspondence on each assigned order Monitoring supplier performance for conformance to commercial terms Monitoring activities by engineering and other in-house functions to ensure compliance with the order terms Initiating follow-up actions with the vendor or in-house functional group to ensure performance in accordance with contract terms and conditions Informing or working with other project procurement personnel as assigned to the administration of the order. Initiate closeout of purchase order files.


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5.2.2

Expediting

Proactive expediting that encourages identification of issues before they become problems and offer solutions before they become critical will be essential to the success of the project. Bechtel will carry out expediting activities for the project, using both home office and area (shop) expediting personnel (if required by Reliance on a cost reimbursable basis), with the support of other Bechtel offices as appropriate. Expediting will interface with all project disciplines including purchasing, engineering, and scheduling to ensure schedule requirements are met. The Project Expediting Supervisor (PES) will report operationally to the Project Procurement Manager (PPM) and to the GBU Expediting Manager for functional and technical direction. The PES will supervise and manage project expediting (PEX) personnel who will be responsible for ensuring that vendor drawings and data are submitted per the agreed to schedule to support detailed engineering design development and material and equipment are shipped by vendors in accordance with established purchase order terms and conditions in sufficient time to support the project construction schedule. The PES will develop the project expediting plan which details the planned expediting activities for each material requisition/purchase order. The plan is developed based on a number of factors including the commodity purchased, criticality of the material to the project schedule, material complexity, schedule float, previous knowledge of the vendor, the vendor’s workload, etc. Specific duties and responsibilities include: 





















Develop Project specific expediting procedures for PPM and functional concurrence. Expedite suppliers and sub-suppliers for the timely submittal of drawings and data. Expedite suppliers and sub-suppliers for the timely delivery of material and equipment Obtain copies of major suborders and complete bill of material Review of area expediting reports of visits performed by PMT in accordance with project procedures. Notify the Project Procurement Manager (PPM) and other responsible project personnel of significant problems and initiate timely follow-up. Record reported vendor performance anomalies in the Supplier Quality and Expediting Application Suite (SQEAS). Maintain accurate and up-to-date project related expediting information in the Bechtel Procurement System (BPS) database. Maintain expediting metrics. As requested, provide the Project Procurement Manager (PPM) with detailed reports of material and equipment delivery progress on all purchase orders that have been identified in the Project Expediting Plan. Monitor and manage expediting job hour and monetary budget versus actual spend.



Initiate trend notices, as required.



Perform closeout of assigned purchase orders.


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Particular emphasis will be placed on the supplier’s ability to achieve future milestones and deliverables rather than confirmation that preceding ones have been achieved, except as a verification of completed work. If problems are discovered, the PPM/ Expediting Supervisor, together with the vendor and other members of the project team, will work with the supplier to develop and implement recovery plans. These plans will be closely monitored to ensure that they are achieved In order for detailed design to advance as scheduled, it is imperative that vendor drawings and data be received at the earliest possible date. Therefore expediting vendors for the timely submittal of required drawings and data is a high priority of the Project Expediting group, Just as timely submittal of vendor drawings and data is important, the Expediting group will drive the prompt turnaround of these documents which is vitally important to ensure both timely purchase of materials, and the start (and uninterrupted progress) of shop fabrication. For this reason, great emphasis will be placed on stringent control of the flow of vendor documents. Types of vendor drawings and other document data required for submittal will be specified by engineering and these drawing requirements will be set forth in the specification and the purchase order. The Project Expediter will continue to follow and report vendor’s progress on the submittal of drawings with the purpose of maintaining an acceptable schedule. On major equipment or packaged units, the Project Expeditor will obtain copies of major suborders and a complete bill of material for expediting purposes. Expediting will also be responsible for assuring timely submittal of final certified drawings and/ or technical data by the vendor. In addition to the drawing requirements, the Project Expediters will be responsible for the submission of other documents for approval and/ or record purposes. These documents will include: 

Material test report



Welding procedures



Manufacturing production schedules



Copies of suborders



Recommended spare parts list



Spare parts quotations



Vendor’s progress reports



Certificates of compliance



Raw material progress reports



Baseline thickness measurement data



Positive material identification document.

Information relative to the progress of the material to final delivery and associated documentation will be processed via BPS into the Purchase Order Status Report (buck sheet). This activity will be reviewed by the Expeditor who will be responsible for the quality of the information and for the maintenance of the buck sheet. The Buck Sheet will be distributed on an agreed regular basis to all disciplines in addition to other milestone status reports which will be used to track progress of procurement activities. An example of the buck sheet is shown below.


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The Buck Sheet

5.2.3

Supplier Quality

The assigned Project Supplier Quality Supervisor (PSQS) will report operationally to the Project Procurement Manager (PPM) and to the GBU Supplier Quality Manager for functional and technical direction. The PSQS will be responsible for development and execution of the Project Supplier Quality Surveillance Plan. PSQS will provide direction for the execution of source quality surveillance activities. PSQS will be supported by office and field based Supplier Quality Representatives (SQR) where applicable. Supplier Quality (SQ) will plan, comply with and monitor quality of equipment and materials at vendor shops prior to shipment. The PSQS will work closely with engineering to develop the Project Supplier Quality Surveillance Plan which details the planned supplier quality surveillance activities for each material requisition/ purchase order. The plan is developed based on a number of factors including the commodity purchased, specification requirements for witness and hold points, criticality of the equipment or material, material complexity, previous quality experience and lessons learned on the equipment/ materials or with the supplier/ sub-supplier. Based on these factors the surveillance plan will be given a quality surveillance level. The levels of surveillance that may be assigned are: 

Level 1: As directed, initial visit and final quality surveillance prior to shipment. This level includes the initial visit when directed by the PSQS/ PSQR and final quality surveillance(s) prior to release of material or equipment. The number of visits necessary for final quality surveillance will


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vary with the amount of material or equipment on order as well as the lot size the vendor presents for final quality surveillance. 





Level 2: Limited scope quality surveillance. This level includes routine coverage of witness and hold points at the frequency prescribed in the QSP, progressive reviews of quality documentation, and final quality surveillance witnessing prior to shipment. The instructions for Level 1 apply. Subsequent visits will be made to verify witness and hold points. The numbers of visits necessary will vary with the amount and frequency of witness and hold points as well as the number of final quality surveillances. Level 3: Full scope quality surveillance. This level includes the progressive quality surveillance witnessing of Level 2 plus increased monitoring of various manufacturing operations and progressive reviews of the vendor’s quality programme implementation as directed by the PSQS/ PSQR. The instructions for Level 2 apply; however, additional visits will be made periodically for the purpose of performing quality surveillance activities required by the QSP or special instructions. If not established by the QSP, the quality history of the vendor may be used to determine the frequency of quality surveillance visits. Level 4: Resident Quality Surveillance. This level entails the assignment of a Supplier Quality Representative on a full-time basis. The scope of quality surveillance witnessing activities will be as directed by the PSQS/ PSQR. This is a full-time residency status for a specific assignment. Specific activities to be accomplished in residency status will be outlined in the QSP. It will be the SQRs responsibility to maintain sufficient contact with the vendor to assure completion of all quality surveillance activities required by the QSP or other special instructions.

Prior to obtaining quotations from potential vendors, the scope of quality surveillance will be defined for respective commodities, concurrent with material requisition development. For each purchase order that requires inspection, the PSQS will work with engineering to develop the Quality Surveillance Plan (QSP) as a part of material requisition. The QSP will identify the key surveillance points that have been identified as the minimum surveillance required by the project and/or Reliance in order to monitor the quality of the equipment and materials being provided by the vendor. Each activity on this plan will be identified as a hold, witness, or in-process surveillance point and will be combined with an overall quality surveillance level from 1 to 4, the potential vendor, manufacturing location, and the past historical data for the supplier. The QSP will include a pre-established summary level instruction for implementation by the local SQR and vendor, discrete points requiring notification by the vendor to the local SQR, and direction relative to PMT imposed participation in the quality surveillance programme. The vendor will be required to take the information from the QSP and work with their manufacturing procedure, the project specifications, and their internal QA and QC requirements to produce an Inspection and Test Plan (ITP) for project review prior to commencing manufacture. ITP will also incorporate the surveillance points from the QSP to provide a complete step-by-step guide to the manufacture of the equipment and materials. Project and/or Reliance witness/hold/review points will be marked on ITPs and returned to vendors for compliance, notification and monitoring.


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All quality surveillance reports will be initially received by the PSQS for review, editing as necessary and loggin g of vendor deficiencies into Bechtel’s Supplier Quality and Expediting Application Suite (supplier performance) database (SQEAS). In this manner, communications will be maintained as current as the events being reported. This medium will be used for report routing, reporting of deficiencies, and routine correspondence related to quality surveillance. In any instance of issues related to product quality or schedule impact, immediate notification to the PSQS will be required by verbal or electronic correspondence, with formal and detailed follow up by quality surveillance report preparation and distribution. The certified inspection/test reports will be verified by SQR and vendor will submit them in the form of a compiled Manufacturing Record Book (MRB). Such MRBs will be reviewed and coded by the responsible engineer and will be available to construction. Interfacing with 3rd Party Inspection Agency PSQS will identify PMT witness/ hold points as agreed and will prepare a monthly look ahead schedule for all upcoming witness/ hold points. A specific notification will be issued to PMT or to their nominated third party inspection agency (TPIA) for invitation to witness in advance. Contractual hold point stages will be released after confirmation from PMT. PSQS will co-ordinate nominated third party agency in the same way as with BSQE. Any correspondence with the agency will be copied to PMT for information. Pre-Inspection Meeting SQRs may conduct initial visits (pre-inspection meetings) at the vendor facility in compliance with the requirements of relevant QSP. These visits will be conducted in accordance with the Bechtel Supplier Quality Manual procedures and special instructions contained in the transmittal of the QSP. For critical packages, The Project responsible Engineer and PSQS may elect to attend the meeting. Bechtel’s SQ manual provides a procedure with details for the handling of nonconformances. Unless deviations requested by the vendor are approved by the responsible discipline engineer, the TPIA Supplier Quality representatives will not authorise the issuance of an inspection release for material shipment. There will be three types of Quality Surveillance Reports as per the Supplier Quality Manual procedures: 

Quality surveillance initial visit (pre-inspection meeting)



Progressive quality surveillance



Final quality surveillance

The TPIA SQRs will submit a written report. For critical packages, PSQS may attend the initial visit (pre-inspection meeting) and other critical surveillance activities such as Factory Acceptance Testing (FAT). All inspection/test results, records or certificates will be compiled by the vendor into the Manufacturing Record Book. The Supplier Quality and Expediting Application Suite (SQEAS) is a Bechtel proprietary web tool wherein the surveillance assignment tracking supplier and supplier anomalies of various quality surveillance reports are recorded. Upon successful final inspection the TPIA will issue an Inspection Release for PMT to proceed with shipment of released items from vendor shop. . Bechtel Procurement System (BPS) Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The Bechtel Procurement System (BPS) is Procurement’s standard automation tool used for Project work. BPS is comprised of several modules that integrate together for a fully functional supply chain and materials management system.

A procurement systems specialist, BPS coordinator, will be assigned to the project procurement team in the project offices. The BPS coordinator(s) will report directly to the PPM and functionally Procurement Systems Manager. The BPS coordinator will be responsible initial configuration and on-going administration of the Procurement Systems, BPS, for use by the project. The Project Procurement Automation Plan prepared by the BPS coordinator and approved by the PPM.

to the for the mainly will be

Considering that BPS suite of applications is designed for use throughout the life of a project for the procurement of engineered equipment and construction materials the project BPS coordinator will interact with all the areas within the project such as: procurement, engineering, project controls, and management. Procurement Systems is a fully integrated suite of applications composed of: 

Bechtel Procurement System (BPS)



Set of e-Procurement applications, and



Global procurement knowledge base.

The BPS coordinator main activities in the project office will include: 





Provide the PPM with assistance in developing the project procurement automation plan Set up BPS in line with the project specific requirements as listed in Volume I Customise project procurement and project engineering templates and other project-specific information



Develop systems integration procedures



Train procurement and engineering personnel as required


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5.3



Help maintain the BPS system and data.



Generate project metrics to support project management.

Procedures

The following chart shows the core process identification for typical procurement activities on a project.

Bechtel procurement procedures are organised for the key supply chain processes: Purchasing, Expediting and Supplier Quality, The project procurement team will use these procedures and adjust them to the project requirements as detailed in Volume I. Standard procurement procedures cover the procurement functions. To manage the procurement work in accordance with these procedures, standard procurement reports will be produced for each element of the work. The first report is the Purchasing Milestone Status Report which is to plan, track and record the status of purchasing activities against specific milestone dates throughout the purchase order formation phase. This is accomplished by recording current forecast and actual activity completion dates against scheduled milestone activity dates. During the planning or kick-off phase of a project, the PPM will work with the project team to identify what milestones will be included within all the status reports for the project. A standard list of milestones will be available from within BPS. These milestones will track engineering progress towards issuance of material requisitions depending upon the project size, complexity, scope and location, the number of milestones to be tracked will vary. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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Following is a typical list of purchasing milestones for the project: 

Start material requisition



Requisition received by procurement



Request for proposal issued



Proposals received



Technical evaluation complete



Requisition for purchase received



Award date



Purchase order issued

The scheduled dates for completion of each milestone will be developed based on the project schedule and agreed durations for each activity. Entries for all activities will be made and maintained until completion of the procurement action. Purchasing will conduct periodic review meetings with the project team to discuss progress. Milestone status reports will be the basis for review and discussion during these meetings. During the peak acquisition phase, such meetings will be held on a weekly basis. The milestone status report will also be used to monitor development and completion of the MR packages due from engineering. When implemented on a project, the Engineering Progress Performance Report (EPPR) will also provide status on MR progress, including specification and drawing progress that may be associated to an MR. Various BPS formats are available for use and will be considered based on project and PMT requirements. The second report is the Expediting Milestone Status Report or buck sheet which is used to plan, track and record the status of key project and supplier activities against specific milestone dates throughout the manufacturing cycle. This is accomplished by recording current forecast and actual activity completion dates against scheduled or contractual milestone activity dates. Following is a typical list of expediting milestones for the project: 

Award date



Purchase order issued



Receipt of initial drawings and data



Receipt of major components at manufactures plant



Fabrication start



Fabrication finish



First ex works



Last ex works



First delivery



Last delivery



All drawings received



All drawings approved to appropriate code


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Expediting will conduct periodic review meetings with the project team to discuss expediting progress. The Expediting Milestone Status Report will be the basis for review and discussion during these meetings. The meeting will cover drawings and data from vendors, timely review and return of vendor IFR drawings by engineering, current forecast delivery dates for equipment and materials and significant issues which need to be resolved to maintain both Bechtel and vendors engineering and fabrication schedules.

5.4


Functional Oversight will be performed by the GBU Procurement Functional Management team who will review and assess compliance with established procurement procedures, best practices and strategic initiatives on the project. The reviews also ensure that appropriate control processes have been implemented to successfully execute and manage all procurement aspects of the project. Functional reviews provide a mechanism for identification of successful project performance and identification of any weaknesses and development of corrective actions. The first review typically occurs within eight weeks of project initiation to provide early identification of any problems that might otherwise cause concerns throughout the life cycle of the project and develop plans to address such problems. At this time all procurement procedures will be reviewed to ensure they have incorporated all project specific requirements and that plans are in place to ensure that these are followed to ensure successful execution. Functional procurement oversight of the project is an on-going process and generally includes monthly reviews, quarterly GBU reviews and KASE gate reviews. Each individual procurement discipline will also conduct a detailed functional oversight review one to two times per year depending on the status of the project. Detailed functional review should also cover any individual areas of concern identified by the Project Manager, or Senior Management. Functional oversight reviews will be documented with a report, as necessary, to the Project Manager, indicating areas of success, as well as any areas of deficiency and recommended corrective measures to be implemented by the project or others to resolve the deficiencies. Procurement Functional Management will use the various check lists from the corporate project procurement manuals as the tool for the functional oversight reviews.

5.5


The initial review of the prime contract begins the process of clarification and documentation of agreement on Bechtel’s interpretation and plans for ach ieving the requirements of the contract, and is the basis for the establishment of the project execution baseline. Specific requirements may be satisfied in methods that differ from the letter of the contract, but are acceptable to both parties. The Project Procurement Manager (PPM) will have primary responsibility for the portions of the contract that directly affect procurement’s scope, and it is essential that the PPM reviews the entire contract to become familiar with its overall scope and requirements. Items that might have a significant impact on procurement may also be found in other sections of the prime contract, such as the technical plans, specifications, quality assurance, etc.


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A procurement prime contract review summary will be completed by the PPM as part of the prime contract review during the organisational phase of the project. This review summary will be discussed with members of the project management team to ensure thorough understanding of the requirements prior to developing specific flowdown requirements (prime contract flow-down matrix) and commercial pro forma documents where applicable

The format for the prime contract flow-down matrix is shown below:

Article Reference

Rev/ Date

Prime Contract Wording

Deviations for Approval Client or Bechtel Legal

Flow-down Requirement

The Project Procurement Manager’s (PPMs) role will also include part icipation in the project’s management, control and documentation of chang e and to identify the areas on project where the likelihood of change is high. An expediting plan is developed that lists all material requisitions/purchase orders and the planned expediting activities on the basis of previous knowledge of the vendor, the vendor’s workload, crit icality of the material to the project schedule, material complexity and the schedule float, thereby ensuring effective cost control of area resources. The expediting plan is revised periodically to reflect changes in any of the factors on which the plan is based.

5.6

Schedule Establishment and Tracking

The overall Project schedule will be produced by Project Controls in collaboration with engineering, procurement and construction, and will be disseminated to all groups for inclusion in their respective systems and control t ools. Schedule dates for specific activities such as: issue of MRQ, technical bid evaluations and MRP will be downloaded from engineering’s EPPR system into procurements BPS and additional procurement activities will be added to produce a set of milestones to track procurement progress. BPS will be used by all the procurement functions to report and monitor the progress of the procurement activity from development of vendor list inquiry, technical bid evaluation, award and drawing and equipment/ materials delivery. Regular meetings will be held between all departments to track progress and updated information will be included in BPS, which is then submitted to project controls for continued update of the project status against the schedule.

5.7

Functional Metrics

One of the main challenges for procurement will be to establish measurements for the supply chain which can effectively and accurately measure procurement’s performance on a project.


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Accurate, timely, and readily available performance data is a prerequisite for measuring performance. To facilitate the collection and processing of performance data, Bechtel procurement has created a repository referred to as the Bechtel Procurement Metrics (BPM) database which obtains its primary information from data that is collected through project execution and the use of the BPS application on all projects. BPM is a consolidation of project procurement data including, but not limited to, purchasing, expediting, and supplier quality and this data will be used in support of the metrics outlined in this plan. Procurement control tools that will be used are: 

Project procurement milestone report



Buck-sheet



Procurement monthly progress report



Critical items report



Supplier quality and expediting application suite (SQEAS)

Project procurement reporting will use the project budget, baseline schedule and execution plan as the baselines for the status reports that indicate where corrective action is required and will use the BPS reports, monitoring and control techniques, to collect and analyse data to determine overall procurement performance.

5.8

Best Practices Programme

Lessons Learned Bechtel has developed a proprietary tool that manages the lessons learned from past projects to develop solutions and reinforce the use of good practices to deploy on present and future projects. This customised system is built around an Oracle database that manages project lessons learned and has been in use for over ten years. Six Sigma In addition to our lessons learned programme, Bechtel has a statistics-based programme called Six Sigma that uses hard data and systematic approach to understand how processes perform, understand causes of under-performance, and help develop solutions that result in better performance and capability. Bechtel uses Six Sigma tools designed to produce a dramatic improvement in work quality, delivery and cycle times, profitability, employee and customer satisfaction. Using these Six Sigma tools has been proven to improve process performance and leading to improved bottom line results.

Supplier Warnings/ Advisories Because of the wide geographical separation of Bechtel projects, poorly performing or financially unsound vendors may be known to one element of Bechtel, but not to others. It is important Procurement personnel are kept informed of problems or information concerning vendors that may potentially impact a p roject’s performance. Dissemination of this information is by issue of Supplier Warnings or Supplier Advisories through the BPS Global Supplier Information System (GSIS) database. 

Supplier Warning – A notification to Procurement personnel of vendors who are performing unsatisfactorily or who are not recommended for future work


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until the condition or issue that brought about the warning is resolved to Bechtel’s satisfaction. Warnings are the most serious classification. Performance failures that result in a breach of the order or significant damages to the project should be the basis for a warning. 

5.9

Supplier Advisory – A Notification to Procurement personnel of vendors who should be monitored due to performance, finance or organizational issues of a less serious nature than those reported in Supplier Warnings. Advisories are intended to advise projects of either current or potential risks. Projects should take measures to mitigate these risks. Events resulting in an Advisory should be documented in GSIS with performance evaluations.

Quality Programme

The quality of Procurement deliverables will be monitored on a continuous basis as a part of GBUs Quality Programme. Quality of project procurement deliverables will be monitored at project level through a Project Procurement Execution plan and a Project Quality Plan. The Procurement Quality programme will be based upon the following objectives:





Implementing Bechtel’s established procurement procedures, work processes and tools to achieve consistency and quality across all areas of procurement Continuous improvement in all procurement functions through best practices such as lessons learnt and six sigma activities.

The quality execution strategy for procurement is centred on the unambiguous definition and effective communication of the Quality Assurance and Quality Control philosophy and requirements through the Quality Management System for the proj ect at the commencement of the project activities and the verification of effective implementation and compliance with the stated requirements. The Procurement Quality programme will place a heavy emphasis on the prevention of problems rather than a dependence on detection once problems have arisen. Key to this proactive approach will be the orientation of project personnel in the requirements and the implementation of the Quality Programme, supplemented by specific training. The Quality Programme will draw upon the best practices and standard work processes of all parties to create a fully integrated system of procedures and work instructions for controlling the products and services being provided under the scope of the contract. The Quality Programme will be driven by systems, procedures as well as by data for and objective review and analysis. The responsibility of Quality Programme implementation will be with the Manager of Procurement supported by Procurement Functional Managers and Project Procurement Managers for their respective projects. The Functional Procurement Management maintains and monitors quality, and reports to GBU Procurement using monthly reports, metrics, dashboards and weekly functional and Project Procurement Management teleconferences. The Procurement Management is also responsible to ensure internal/ external quality audits are carried out and audit findings if any are resolved. Training/development needs and compliance reports are also prepared and sent to GBU Procurement Management on a regular basis. Supplier Warnings and Advisories are prepared and issued per procedures developed and published in real time basis in order to prevent inadvertent enquiries sent to a poorly performing vendor. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The PPM will be responsible for reporting project related quality metrics such as, % on time shipment, % defective materials/ equipment received at jobsite, number of lessons learned and implemented. The Purchasing Supervisor will be responsible for reporting the purchasing related quality metrics such as receipt of correct and complete material requisitions, % compliance of BEC cycle times, supplier data in BPS etc. The Expediting Supervisor will be responsible for ensuring quality of expediting assignments, expediting reports, summary reports to management, overdue vendor prints and overdue deliveries of materials and equipment if any. Heckle sheets for pre-award and Buck sheets for post-award are developed using BPS and reviewed for ensuring delays are identified, reported and mitigations are implemented. The PSQS will be responsible for ensuring quality of equipment/materials delivered prior to shipment from vendor shops. PSQS ensures the material requisition include correct inspection levels and provides, monthly open assignments, supplier deficiencies by purchase orders, summary of quality surveillance visit reports, SDDRs, Inspection Release Notes and client co-ordination reports to GBU procurement management. A proprietary database SQEAS is used for reporting vendor quality and expediting related reports at project/ office/ GBU levels. The BPS Coordinator will ensure quality of data in BPS by interrogating the system for any missing or past dates but it is the individual supervisor’s responsibilities to ensure data integrity among various procurement systems. The BPS reports are also generated for all other procurement functions and reported to procurement management. The GBU and corporate functional procurement management develop applicable quality performance metrics. Each procurement office and project field procurement office prepares and consolidates functional and project monthly reports using BPS and SQEAS for review at GBU level. This quality programme ensures that various quality performance indicators are reviewed and actions are taken for continuous improvement.

5.10 Material Assignment Schedule (MAS) and Division of Responsibility (DOR) The MAS and the DOR are tools that communicate what permanent plant equipment and materials will be acquired, what the departmental responsibilities are for the procurement process, and the philosophy that will be used on the project. To complete the MAS and DOR, input will be required from Engineering, Construction, Contracts, Start-up, and the Project Procurement Team. The Project Management Team will approve the final draft. The MAS and DOR plans developed during the FEED or proposal stage will be refined during the organisational phase of project execution. The PPM will meet with each engineering discipline to determine all commodities of material and equipment that make up the project scope. The scope book and equipment lists are tools that aid in the identification process. Most importantly, the Material Requisition Schedule produced by engineering, will provide the basis for the MAS. All commodities will be grouped by engineering discipline, i.e., mechanical equipment, electrical equipment, civil/structural/architectural, mechanical bulk, specialty items, electrical bulks, and project control system instruments and instrument bulks. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The MAS may include, but is not limited to the following: 

MR number



General commodity description



Schedule/forecast date of MR issue



Commodity code



Responsibility to furnish these materials (i.e. Bechtel, subcontractor or Client)





Bechtel office (control, field, or support office) responsible to generate the requisition and who will purchase the material/equipment Type of agreements to be used to acquire the commodities (purchase order, technical service agreement, O&M subcontract, bare rental agreement, blanket or open agreement, MPA agreement.) etc.



Planned bid, evaluate, and award cycle (weeks)



Quality surveillance level



Expediting level



Quality assurance programme level (I.e. safety related Q-list material)



Identification of critical packages



Lead times



Transit time



Total order duration



Requirement for site technical advisory representatives



Vendor classifications such as SMWVBE for U.S.; local, financing country, or global

The Project Management Team may add other categories to this document for convenience or to best fit the strategy for project specific needs. The PPM retains ownership and maintenance of the MAS throughout the execution phase of the project. Although the MAS is a key part of the Project Procurement Execution Plan, other project departments develop a significant part of the information being reported. Engineering will provide the list of MRs, dates of issue, and description of equipment and materials for the project. Project Controls will provide, in conjunction with the Customer, site need dates and requirements for service representatives. The PPM will coordinate with these various groups and disciplines to obtain the data required. In addition to the responsibility to coordinate the input to the MAS by all functions, the PPM will be responsible to formally issue the MAS for review and approval to appropriate functions, including Engineering, Procurement and Project Controls. Specifically, changes to the MAS will be appropriately coordinated and reviewed between all functions, prior to the revised MAS being issued, so there remains an opportunity to react to activities affecting existing work, or consideration given to work assigned to the field that may be better executed in the project office. The DOR matrix will be used to define specific duties and responsibilities between on-project and off-project groups and support offices. The DOR will define what activities each function will perform based on input obtained from the MAS.


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The project team will use established standard work processes for each material discipline. By integrating the project requirements identified in the MAS, the project team develops the project-specific DOR. This team will define the technical scope of the project, deliverables, key milestones, project unique requirements, and customer expectations. The PPM will establish the procurement, expediting, and supplier quality, scope and plan. Once completed, the Project DOR will indicate the responsible organisation and discipline for these supply chain activities, and considers the following: 

Performing engineering calculations required for sizing equipment, valves, etc.



Generating engineering specifications and data sheets



Develop standard installation details







Generate (or obtain from suppliers) equipment physical data and dimensional drawings Develop inspection plans in conjunction with project quality surveillance supervisor Develop material requisitions in accordance with project purchasing plan and issue for bid and/or purchase



Solicit bids



Perform technical bid evaluations   

    

Expedite in accordance with project procurement plan Review and approve vendor drawings Review and approve Supplier Deviation Disposition Requests (SDDR), as necessary Monitor quantities and alert project of unusual trends Maintain BPS Monitor and track vendor performance and progress Coordinate vendor meetings Support definite cost estimates

6 Contract Management Plan 6.1

Summary

The role of the Contract function on the J3 project will be to support the implementation of the contractual obligations Bechtel and Reliance have to each other. Bechtel have successfully placed contract representatives on the previous Jamnagar projects with Reliance and the contracts personnel have worked productively to good effect in the interests of the project and Reliance alike. Given the scope of the J3 project for Bechtel, it is planned to assign only one senior individual from the contracts function to the J3 project full time to deal primarily with the activities described within this section. However, should Reliance or indeed the PMT require support with any third party commitments, terms and conditions and any related subcontract matters, then the individual will have sufficient experience to provide such support. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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6.2


The Contracts Manager together with Project Management team will establish the original project baseline, which shall include: scope, schedule, budget, Project Execution Plan and commercial terms and conditions, which are vital to the on-going management of the Prime Contract and any subsequent changes. This benefits Reliance and Bechtel alike. After the original contract baseline is established all formal changes to any of the baseline documents shall be tracked using the Bechtel established system ‘Pending Items’ Procedure working in conjunction with the trend program. Project Contracts Manager and all project team members will thoroughly read the Prime Contract and understand the current contract baseline which will be the key to the success of the implementation of above systems. Bechtel’s Pending Item (PI) procedure will be used to ensure Prime Contract notice requirements are fully met and will focus primarily on changes that impact the contractual relationship between Bechtel and Reliance. This procedure prompts project management to provide the required notice to Reliance and also assists in tracking any necessary follow-up activities, including date of receipt of R eliance’s response, submission of documentation, and ultimate disposition by Reliance. This system provides Reliance with an adequate early warning system of trends and deviations from scope which can impact the outturn cost and potentially schedule impact to Reliance. The Pending Items procedure and the Project Controls trend programme are key elements of a successful change management programme. These programs will work together to identify changes and track cost and schedule impacts. Each programme will address a different aspect of the change management programme. The Pending Items procedure focuses primarily on changes that impact the contractual relationship between Bechtel and Reliance. The Trend Programme focuses on identifying and managing cost and schedule implications of change from whatever source. Cross-functional cooperation and active involvement of the entire project team are needed for maximum success of t he change management effort. The Contracts Manager will be responsible for implementation of this procedure and will have specific responsibility for commercial review of all PI ’s prior to issuance to Reliance, coordinating preparation of any proposals required, negotiation of commercial resolution of PIs, administration of the PI log, and maintenance of the PI files. The PCA is also responsible for all subcontractor interfaces related to PI’s that affect or are caused by subcontractors. The Project Controls Manager, or designee, will be responsible for implementation of the trend programme and has specific responsibility for review of all trends prior to issuance to Reliance.

6.3

Commercial Awareness

In accordance with Bechtel’s policies and procedures, Commercial Awareness sessions will be required at the inception of the project and periodically thereafter to keep the project team, especially newly assigned personnel, aware of Bechtel’s contractual obligations to Reliance, changes to those obligations and the project team’s role in contract/change management. The initial commercial awareness session will be conducted within one month of contract signature.


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The Project Manager will assure that every member of the project team attends the commercial awareness sessions and understands his or her role in fulfilling the requirements of the contract during project execution.

6.4

Contract Management Files

The Contract Management Files shall contain all pertinent original electronic and hard copy contract data and documents and be organised to allow for efficient storage, identification and retrieval. The files will be integrated into the project's document control programme. A complete contract file set shall be maintained for each contract that Reliance may place associated with the Offsites and Utilities scope. At the conclusion of a project, all closed contract files shall be dispositioned in accordance with project procedures. The Contract Management Files shall conform to approved project document control procedures and utilise the approved project document control computer-based tracking programme.

6.5

Correspondence Control

The overall philosophy and methodology for formal correspondence between the major parties is stipulated in the contract. This will include specifying team members that may issue internal and external correspondence and receive incoming correspondence on behalf of the team. A document control system and maintenance of correspondence files will be in place which is an absolute necessity for effective prime contract administration, regardless of the tool used for document management. Correspondence between Bechtel and Reliance shall be sequentially numbered. All outgoing and incoming correspondence shall be logged, action / reply responsibility assigned, and replied recorded. Correspondence control logs shall be checked weekly to ensure that all open items are addressed and to provide follow-up. Original documents shall be retained in the contract management files and only copies will be circulated. No notations or marks of any kind should be made on the original documents. Email, while an attractive convenience, is not to be used for contract correspondence unless each transmittal is serially numbered, logged and controlled in the same manner as hard copy correspondence. All supervisors, including the Project Manager, and discipline supervisors (or designated representatives) will be responsible for ensuring that all personnel on the project adhere to the Project Correspondence Control procedure. This includes ensuring that the Originator has prepared correspondence in the correct format and has addressed it in the correct manner including the identification of the document number and has carried out their tasks and assigned attributes in accordance with instruction.

6.6

Contract Closeout

At the end of the project Bechtel’s Contract Manager will initiate a Contract Closeout Checklist and provide notification to Reliance that the work is complete and ready for final inspection. Designated personnel from Reliance shall perform an inspection of the work. When all check items on the Contract Closeout Checklist are complete, Bechtel shall send formal notification to Reliance who shall then complete and issue a Certificate of Final Acceptance. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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6.7

Contracts Assignment Schedule

Based on the J3 scope for Bechtel, it is not envisioned that Bechtel will need to put in place its standard operating procedures for subcontracts. However the activities below describe how Bechtel would respond to any required and instructed third party contracting. Projects define their contracts work implementation strategy through use of a Contracts Assignment Schedule (CAS) and their purchasing work implementation strategy through the use of a Material Assignment Schedule (MAS). The CAS establishes the estimated number of project commitments by type (contract type, direct hire, etc.) and duration (formation to work completion). The method of payment (e.g., unit rate, lump sum, etc.) and other attributes associated with each contract commitment projected and listed on the CAS are also identified to develop job-hour budget requirements. The contracts and associated payment method identified in the CAS becomes the basis for the Contracting Plan, one section within a Project Execution Plan. A preliminary CAS is developed during the bidding stage and updated periodically on an as-needed basis. At the start of the project the project contracting schedule is formalised from the CAS. The CAS is a project responsibility under the direction of the Project Manager with Contracts having responsibility for its development and maintenance. Contracts are responsible for developing the CAS in coordination with procurement, engineering, construction and project controls to ensure the project requirements are met and not duplicated.

7 Construction 7.1

Construction Overview & Work Plan

7.1.1

Construction Supervision Services

Reliance/PMT will manage the construction of the plant by the construction contractors appointed by Reliance. Reliance/PMT shall: supervise the construction activities, QA/QC and HSE during construction; monitor and report progress, make sure that equipment is available for construction contractors and certify the executed / installed field work. PMT will monitor the overall construction programme for the J3 Program and will manage the infrastructure and central construction facilities. Bechtel will provide the following as a part of its London office and MEC activities: a) Provide construction related inputs for development of overall project schedule. b) Participate in constructability study and carryout rigging studies for critical lifts during detailed engineering.


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7.1.2

Construction Technical Services

Bechtel will provide technical assistance associated with the construction of the Offsites and Utilities, CPP and Marine Facilities and related facilities on Reliance request (Optional SERVICES) Refer to the PEP Vol 1 for details. 7.1.3

Field Engineering

Bechtel will complete all engineering activities from the London and MEC offices. Where any additional engineering is required and / or any field changes warrant engineering activities, such engineering may be carried out at the Site Field Engineering Offices with approval from Reliance (Optional SERVICES). Refer to the PEP Vol 1 for details.

7.2

Organisation

A construction manager will be provided on the project to complete the agreed scope of work and to support Reliance and PMT.

8 Start-up and Commissioning 8.1

Overview/ Work Plan

8.1.1

Pre-commissioning, Commissioning and start-up Assistance

Reliance/PMT will plan, manage and execute a phased mechanical completion to facilitate sequential pre-commissioning activities culminating in a logical commissioning programme for the Offsites and Utilities, CPP and Marine Facilities. A joint team of Reliance and PMT will conduct audits to verify and validate mechanical completion of the Offsites and Utilities, CPP and Marine Facilities. Bechtel will expedite the engineering resolution of the punch list items. A joint team consisting of Reliance and PMT shall be assigned to develop, monitor and execute the pre-commissioning, commissioning, start-up and performance tests. Bechtel Commissioning support is defined as an optional service within the contract and shall be defined by PMT should this option require to be selected.


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9 Project Controls Plan 9.1

Overview/ Work Plan

Bechtel’s project controls group facilitates the development, understanding and ownership of the baseline cost and schedule documents and performs continuous monitoring of performance against the contract baseline. Project controls activities lay the ground work for successful project execution. To achieve this goal, project controls will implement and administer effective systems and procedures for the project. The systems and procedures to be implemented are broken down into three main integrated categories as follows: Schedule Control, Cost Control and Management Reporting. Bechtel’s Project Controls programme, systems, and procedures to be implemented are specifically tailored to the project’s needs in conformance with Bechtel’s standard procedures and work processes as detailed in the deliverables matrices included within the Schedule Control, Cost Control and Management Reporting sections of the Project Controls execution plan and will incorporate the following essential elements: 







A project plan, including schedule and cost budgets. A continuous monitoring system that uses modular, inter-related cost and schedule management tools to measure schedule and cost performance against the plans. A reporting system that analyses trends to identify emerging or potential deviations from the plans and provides options for action. A continuous system to monitor contract changes for cost, schedule and performance impacts. This system facilitates the understanding and ownership of the project baseline and promote proactive participation by the project team. Design options and decisions are evaluated with all project team members working with the project trend engineer to evaluate any cost and schedule deviations from the base plan.

Responsibility and Accountability The project controls team, led by the project controls manager, will be responsible for: 











Development of the project controls plan for the scope of services to be performed. Set-up, implementation and maintenance of Bechtel’s standard project controls tools and work processes to measure progress and performance against the baseline for all phases of work as well as consolidating reporting across all work locations. Leading the development of the baseline schedule and providing planning / scheduling control for EP activities performed in their respective locations. Leading the conversion of the as-sold estimate to the control budget. Implementing and communicating a project-wide trend programme to track deviations from the baseline plan, assess the impact of such deviations on the baseline cost and contract schedule in a timely manner t o allow mitigating measures to be taken. Performing cost control activities for all project phases


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Off-project specialist assistance will be made available to support the project teams as required. This typically includes functional oversight and audits of the tools and systems in place on the project, specialist estimating support for trend estimates/ cost re-forecasts, and systems set-up and support. Early in the project, the project controls team will establish and maintain forward looking controls for the project work scope encompassing project planning and scheduling, progress measurement and reporting, cost monitoring and control, estimating as well as change management (trending) functions. Bechtel’s proven methodologies, procedures and systems, coupled with the use of industry leader and proprietary software tools ensure a proactive project controls system that will provide timely and accurate information to the project team for decision making. Bechtel’s emphasis is on providing an “early warning system” rather than “after the event reporting”. Bechtel’s project controls work processes are structured around the classical project control cycle as demonstrated in the f igure below. Project Control Cycle SCOPE DEFINI TION

Physical Scope Division of Responsibility Estimate / Contract Value Baseline Schedule

   

EXECUTION PLAN   

PROJECT CONTROL SYSTEM

CORRECTIVE ACTION   

Methods / Procedures Responsibilities Tools / Reporting

Mitigation Measures Method adjustment Incorporate agreed Changes

MONITORING THE PLAN   

Cost Tracking Progress & Performance Reporting

DEVIATIONS   

9.2

Identification Trending / Forecasting Impact Assessment

Matrix Organisation – Project and Functional

The standard project controls organisation, including both on and off-project teams, are portrayed in the following organisation charts. The project specific organisation is reflected in Volume I of the PEP.


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OG&C GBU Functional Organisation

Typical On-Project Project Controls Organisation

Functional Project Controls Management

Project Controls Manager

Project Controls Manager New Delhi

Planning Manager

Lead Cost Engineer

Field Project Controls Manager

Planning Engineer

Planning Engineers

Trend Engineer

Trend Engineer

Cost Engineers

EPPR Co-ordinator

Cost Engineers

Lead Construction Planner

Lead Construction Planner

Reports Engineer

Estimating Support

Area Schedulers

EPPR Co-ordinator

Lead Cost Engineer

Cost Engineers

Legend: Direct Reporting Functional reporting Home Office (Houston/London) New Delhi (Dependent Upon Execution Strategy, could be Shanghai for example). Field/Construction

Lead Quantity Surveyor


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9.3

Procedures

The following provides a typical listing of project controls procedures which will be provided by the team for the project: General Project Controls Plan Cost Estimating Project Controls Quality Assessment Cost Control Budget Control Scope Change Control Materials & Subcontract Cost Control Trend Programme Forecasting Quantity Tracking Standard Project Code of Accounts (Sub)Contract Monitoring Planning & Scheduling Management Schedules Control Schedule Engineering Implementation Schedule Progress and Performance Curves Subcontractor Schedules Schedule Impact Report Guideline Reporting Progress Reports

9.4


This section provides guidelines for the functional review of Project Controls (including estimating) compliance with established procedures, best practices and strategic initiatives on individual individual projects. This section defines the requirements and responsibilities for Project Controls Functional Oversight and shall apply to all projects executed with OG&C where Bechtel is responsible for Project Controls. Process Functional management review of Project Controls operations on projects is necessary to ensure that the projects are following the appropriate procedures and execution plans as defined by the business unit and any applicable joint venture agreements. Doc. No. 10015-G01-JG0 000-1002 Rev 2 Confidential © 2013 2013 Bechtel Limited. A ll rights reserved

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Functional oversight also ensures that: 



The project controls team is communicating communicating well with the rest of the project The project team has the information required to make sound commercial commercial decisions



Project cost forecasts and schedules are reasonable reasonable and accurate



Disseminate Disseminat e lessons learnt and best practices from other projects



Assess the morale of the project controls group and to identify and support employee development needs within the group

Functional oversight also serves the important purpose of communicating lessons learned from project to project and t he refinement of ‘best practices’. Instructions At the start of a project, the t he Project Controls Manager Manager will prepare a section within the Project Management Execution Plan and DOR in line with the original or modified proposal execution execution plan (See Volume 1). 1). This plan is a part of the Project Execution Plan and specifically identifies the Project Controls process elements and/or components to be applied applied during the project execution. execution. Once approved approved by the Project Controls Manager, and issued with the Project Manager’s signature, this plan defines the scope for the project controls programme on the project and includes systems to be used, deliverables to be produced and meetings required. To assist the Project Controls team in the fulfilment of this commitment, periodic oversight reviews of the project operations shall be performed by experienced (offproject) Project Controls Department personnel (see Section 8.2) , appointed by the Manager of Project Controls. These reviews will be performed using Bechtel Corporate review checklists to provide an unbiased view of the plan versus implementation. implementat ion. The Manager of Project Controls will establish a schedule to provide timely oversight oversight reviews for each active project. project. Generally, projects projects will be reviewed reviewed on an annual basis (depending on project duration), with the first review to occur within six to twelve weeks of project initiation, or as soon as practicable thereafter, with on-going oversight during project execution. Responsibilities Manager of Project Controls: 



Appoints off-project review personnel Prepare and implement project oversight and review plans to provide timely reviews of all active projects



Review and approve all project oversight reports



Provide analysis of oversight reviews and advise significant corrective actions



Monitor project implementation implementati on of corrective actions and provide periodic informal reviews to ensure any reoccurrence of corrected deficiencies does not occur.

Project Oversight Review team members: 



Perform the project oversight review with the co-operation of the project team Prepare the project oversight report with recommendations recommendations and forward to the Manager of Project Controls for review

Project Controls Manager: 

Prepares the Project Controls Execution Plan and DOR


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

9.5

Address actions arising from project oversight reviews

Project Controls Software Applications

Bechtel will use the following three main software packages for project controls applications applications to control and monitor the project. Primavera Version 6 (P6) Bechtel (P6) Bechtel will utilise Primavera TM 6 as the primary tool for detailed planning for the EPC control schedules (Level 2/ Level 3). For Level 1 schedules Milestone Professional TM software is typically used. Bechtel will use Primavera 6 in its enterprise environment with the database located on a central server with individual user locations accessing the database via a Citrix TM connection. All planning engineers in all locations will have access to the database. Additionally, Additionally, the Lead Planning Engineer (or their designee) will have ‘super ‘super -user’ access to maintain the database database including including control of all WBS/ user codes. codes. This will ensure consistent application application of activity/ user codes across all work locations. ePCWorks is Bechtel’s proprietary software application for budgeting, monitoring, and controlling controlling all aspects of cost for projects. This application application has been designed to facilitate cost control and progress measurement functions by the project controls department. The application application provides provides the ability ability to create create summary as well as detailed reports. The different modules within ePCWorks are: 







Budget module – module – This This establishes project scope, resources, and time frame. This module is organised organised around around the standard standard code of accounts. accounts. It provides the basis for: 

Determining actual progress and performance



Identifying deviations from baseline

Professional Services (PServ) module – module – This This module is used for reporting of actual expended expended work work hours utilising utilising the project project code of of accounts. The module interfaces with the timesheet/ payroll systems as well as the Budget module for reporting of actual work hours against agreed budgets. Cost and Commitment Commitment (COCO) module – – This module is organised around the standard code of of accounts. It provides the structure for monitoring monitoring and control of commitments and expenditures expenditures for contracts and materials Engineering Progress and Performance Performa nce Reporting (EPPR) module – – This module provides the platform for monitoring and control of engineering deliverables and tasks. It measures and reports engineering progress against plan and forecast dates and provides actual job hour performance.


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ePCWorks is a proven tool which has been successfully used on many recent Bechtel projects worldwide. The figure below shows the various modules within ePCWorks and its interfaces with other Bechtel standard applications. The software is deployed in its enterprise form and is hosted on a central database which users can access via Citrix in real time. This plays a major role in ensuring consistency across all work locations and saves a significant amount of effort which is typically required in integration of data from various global locations.

Email Software

HRMS

As-Sold Estimate BETK / EPIC

Historical Cost System (OLAP)

Bechtel Procurement System

CRS/AP/ SAM

Site Payroll System

Future

Security

Trend Management

Analysis

ePCWorks

Setup

Spend Plan

Management Reporting

Treasury

PC Codes

Budget

Engineering Performance

Scheduling Tool

Electronic Data Transfer Interface

InfoWorks

Commitments

Professional Services

Contract Monitoring

P.O. Monitoring

Government Reporting

Quantitie s

Construction

Forecasting

Quantity Reporting System (TeamWorks, Setroute)

Text Files / Spreadsheets

eTrack

Manual Input

Bechtel Procurement System (BPS) is Bechtel’s proprietary software application providing integrated automation tools for supply chain optimisation and materials management. The functionality of BPS spans from materials requirements planning through the issuance of materials to construction in the field. The BPS suite of applications is designed for use throughout the life of a project for both office and site procurement of engineered equipment and construction materials. BPS functionality is further described in detail in the procurement section of this execution plan. The project controls teams in all locations will use BPS to monitor the status of procured items of major equipment and bulk materials which in turn will be used to determine Procurement progress. Similarly, commitment data from BPS for equipment and bulk purchase orders is used in maintaining the cost and commitment reporting programmes, likewise, procurement/ fabrication and delivery data from BPS is used for updating the detailed project schedules. In addition to the three main software applications listed above, Project Controls teams typically use data/ information from the following applications maintained by other functions: Global Bechtel Electronic Time Record (gBETR) – Electronic Timesheet systems/ Web based time record and management system captures and provides work hour expenditure data.


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e-Sub: e-Sub is Bechtel’s standard application package used by the sub -contacts group for management of contracts/ sub-contracts. Commitment data for subcontracts is obtained from the eSub application. InfoWorks: is Bechtel’s standard Electronic Document Management System (EDMS). It is deployed on projects to facilitate management of record/ controlled content and Bechtel work processes. InfoWorks is built upon EMCs Documentum Content Server platform but includes Bechtel specific customisations to extend the functionality beyond that of the base Documentum product. INTools: The SmartPlant INtools instrumentation design and engineering software suite includes integrated modules for instrument indexes, specifications, process data, calculation, wiring, loop drawings, hook-ups, calibration, and maintenance. SetRoute: is Bechtel’s proprietary software application for designing cable, raceway and wiring systems. The system acts as a design tool for cable and raceway and compiles this information into construction documentation for installation. It allows the tracking and statusing of the following components throughout every phase of the project: cable, cable routing, cable terminations, electrical equipment, raceway and jumpers.

9.6

Schedule Tools/ Programme

The planning/ schedule control function is led by the lead planning engineer or the planning manager reporting to the project controls manager. Individual planning engineers are assigned to specific units or areas of the project in all work locations. Until the project scheduling tools are developed, approved and implemented as the project baseline, an initial starter schedule (90 day plan) will be developed to ensure the project begins in a direction that supports the critical activities and decision milestones. Overall integrated planning and scheduling controls will be implemented on a hierarchical basis consisting of the following levels with each succeeding level supporting the milestones/ date envelopes established in the higher levels of schedules: 

Level 0 - Project Milestone Schedule



Level 1 - Project Summary Schedule



Level 2 - Project Master Schedule



Level 3 - Project Control Schedule



Level 4 - Detailed deliverable schedules

Level 0 Project Milestone schedule - will list all critical project milestones and will define the date envelopes for all other schedules. Level 1 – Project Summary schedule - will expand the Level 0 schedule in a time scaled bar chart format showing planned start and finish dates for key activities / tasks. Level 2 Project Master Schedule - will be a logic-linked bar chart reflecting the total project scope by major phase of work, area and key activities. This schedule will show overall scope of work in sufficient detail to highlight the major issues, completions and interfaces to meet the project objectives. All major milestones agreed with the client will also be reflected on the master schedule. This schedule will be used for management level reporting. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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Level 3 Control EP Schedule - will be prepared using the precedence diagramming method and will consist of detailed discipline deliverables based upon the duration envelopes for major activities / tasks identified in the Level 1 milestone schedule and Level 2 summary schedule. The Level 3 schedule will typically list engineering deliverables at a summary level, list all material requisitions for major equipment and bulk material and show construction activities by commodity. The schedule will initially be grouped by unit consistent with the W BS. The Level 3 EP schedule, once approved by the client, will become the control schedule for the project and will form the baseline against which all changes to the schedule will be monitored. Progress updates made to the schedule will be incorporated into the overall project schedule and impact on the overall critical path will be determined. The baseline plan will not be changed without an approved Schedule Change Notice. The Level 3 schedule will be updated monthly for actual progress and will reflect any changes in logic to suit any project developments. The Level 3 schedule will be used for critical path determination and analysis and preparation of the Schedule Impact Report (SIR).

Level 4 Detailed Deliverable Schedules - The Level 4 area schedules are working level schedules providing a lower level of detail for specific work tasks. These consist of deliverable registers maintained for home office engineering and procurement activities and form the basis for the progress measurement system. Generally, a one-to-many relationship exists between summary level activities listed in the Level 3 schedule and individual deliverables/ tasks listed in the Level 4. In other words, the Level 3 schedule provides the date envelopes for individual deliverables in the Level 4 schedule.

Level 4 Detailed Schedules for Engineering Activities – Engineering Progress Measurement and Performance Monitoring. The Engineering Progress and Performance Report (EPPR) forms the Level 4 schedule for the detailed engineering phases and essentially comprises the engineering deliverables register and provides a quantified, man-hour weighted system for progress measurement (earned value system). Schedule requirement dates, based on the Level 3 control schedule, will be incorporated for each document, by discipline. Bechtel’s proprietary ePCWorks Engineering Progress and Perf ormance (EPP) module will be used to maintain the Engineering Level 4 schedule. The Level 4 schedule will list the individual drawings, studies, tasks, specifications, calculations, requisitions etc. Depending on their type, the deliverables will be grouped in unique logs. Physical progress for each deliverable will be measured against discrete pre-determined control points from “Start” through ‘Issued for Design’ (IFD) and ‘Issued for Construction’ (IFC) for each log. This will facilitate objective determination of progress as these control points are achieved. The actual calculation for progress will be made by assessing the per cent complete of each deliverable in terms of earned value as established by set control points, and then multiplying this percentage by the weighted per cent of the total. To monitor progress over the duration of the each phase, a planned per cent-complete curve will be established by evaluating the planned development and completion dates for each deliverable as identified in the baseline schedule. The planned earned value over the agreed duration will provide the data for the planned progress curve against Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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which actual per cent complete progress will be plotted each month based upon completion of physical deliverables. ePCWorks will be deployed on the project in its enterprise version where it will be hosted on a common server and will be accessible in real time to all project locations via CitrixTM. Deliverable control points for each deliverable/ task will be assigned for specific work locations in order to manage work and collate progress and performance from multiple global work locations. The EPP module will interface with the Bechtel’s Electronic Document Management System (InfoWorks) for document issue status data and the man-hour reporting (timesheet) system to obtain work hours expended. The EPP module fully supports Bechtel’s standard multi-centre execution approach for engineering. Actual work hours worked will be charged to electronic timesheets by the engineering personnel working on the project. A comparison of work hours earned with the expended work hours will provide an indication of the performance by each location/ discipline. At the end of each reporting period, all progress and performance metrics by work location and discipline are summarised and compared against the plan. Look-aheads and exception reporting will be produced as needed. Critical action items will be identified, monitored, and discussed in the weekly progress review meetings. Control tools will be updated to incorporate any approved trends/ changes. EPPR will be discontinued when Engineering is approximately 90% complete and the project will switch to a completion checklist. Bulk Commodity Release Curves Commodity release and installation curves, comparing planned to actual quantities released by engineering and installed by construction will be prepared and updated regularly for all major commodities. These curves will be set-up in MS Excel and will be generated for concrete, structural steel, above ground pipe (large bore and small bore), underground pipe, cable tray and E&I cables. Commodity curves will be discontinued when installation for individual commodities reaches 90%. Level 4 Detailed Schedules for Procurement Activities Procurement progress will be determined using the detailed schedule information supplied by Bechtel Procurement System (BPS) and will be maintained in MS Excel or an alternative database based system. Procurement progress will include all equipment and direct materials to be procured. A system of progress control points and associated weighting based on purchase order estimated values will be used for the measurement of procurement progress. The progress measurement procedure will include a listing of requisitions/ purchase orders within the procurement progress measurement system with their corresponding weightings and control points. The allocation of the weighting for individual requisitions/ purchase orders will be based on the budgetary value of the materials covered by the requisition/ purchase order. Progress data will be aggregated to produce the overall planned and actual progress figures for Procurement. The progress measurement system will allow for reporting separate planned and actual values per Bechtel’s standard commodity summaries. Other Schedules: The typical schedules identified above may be supplemented during project execution by micro-schedules to focus on specific problem areas during project execution. Schedule Integration/ Consistency: The Level 3 EPC control schedule will identify all internal interfaces within different units and all external interfaces. Critical interface milestones will be identified as a part of the schedule development. Doc. No. 10015-G01-JG0000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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The Level 3 EPC control schedule will be updated monthly. Consistent with the agreed reporting calendar, planning engineers in all locations will interface with engineering, procurement and other functional leads to obtain progress information to update the schedule. Progress data from the Level 4 detailed schedules for engineering and procurement will be summarised at an appropriate level for statusing the Level 3 schedule. Individual planning engineers in all locations will update the progress for their responsible areas within the schedule. Once the progress update tasks are completed, the planning manager will run the scheduling update function in Primavera to assess the impact, if any, on the schedule. Minor logic changes, if required, will be incorporated at this stage. The planning manager will analyse the critical paths and sub-critical paths and compare the updated schedule to the original baseline. The impacts of any changes during the month as well as any cumulative impacts resulting from an aggregation of small delays on the schedule will be captured through the Schedule Impact Report (SIR). The SIR is not just an ‘after the event’ reporting of schedule impacts but looks at the underlying reasons behind any schedule impact and more importantly, identifies corrective action and/ or mitigation measures. A series of schedule review meetings will be scheduled each month including meetings with the client management team, where the main critical paths, subcritical paths and the SIR will be presented. Corrective actions will be jointly agreed. Any major schedule logic changes and work-arounds agreed as a result of the corrective actions will then be incorporated into the schedule. Consistency between different levels of schedules will be maintained by ensuring that changes to subsequent levels of the schedule will be reflected in the higher levels of the schedule.

9.7

Cost Tools / Programme

Project Controls will employ ePCWorks as the primary cost control tool for the project. The ePCWorks system allows for specific modules to be selected to facilitate effective control of specific elements of the project. These modules are integrated to allow focus on commitments and budgets, allocate and plan budget requirements, monitor and identify variations to these plans, assess the projected outcome of actual performance, and facilitate the development of timely work-around corrections to guarantee project success. The elements of the cost control system will include: 

Budget Control



Scope Change Control



Home Office Non-manual Control



Staffing Charts (Histograms and Curves)



Material and Subcontract Control



Trend Programme



Forecasting


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The cost control programme is defined to a level that facilitates realistic control while addressing addressing the significant elements elements of the project which require control (i.e., cost and performance, performance, subcontract and material cost). Emphasis will be placed on monitoring monitoring and controlling actual costs against detailed budgets in order to manage the risk of increasing costs.

Budget Control A Project Code of Accounts will be developed based on established corporate standards as well well as specific specific project requirements. requirements. The Project Code Code of Accounts Revision 6 for the OG&C GBU will will form the framework framework for the project budget. budget. A deviation request will be submitted for GBU approval, if required, to establish a new (or modify an existing) Commodity Group to address a project specific needs. The Project Team will review the proposal estimate/ target price and, based upon the latest refinements in the Project Code of Accounts, Material Assignment Schedule (MAS), and the Project Project Execution Execution Plan, recast it as the Project Budget. The Project Budget will be loaded into the ePCWorks Project Cost Budget Module and will be t he project baseline budget. ePCWorks Budget Module Interface I nterface Diagram

Home Office Control and Staffing Curves Home Office labour job hours and costs will be budgeted and scheduled over time by department. Actual and forecast hours and and costs will will be reported against against these budgets and schedules and included in routine reports as applicable. Engineering performance and progress will be monitored and reported on a monthly basis as described in earlier in the scheduling deliverables section of this execution plan. Job hour and schedule performance will be displayed in summary by discipline.


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Material and Subcontract Control Project Controls will coordinate with Engineering, Procurement and Contracts on all major packages from the pre-bid phase, through the BEA cycle to award, and post award on change management. Budget and forecast forec ast values, scope of of supply, schedule, commercial implications, and potential trends are all areas that are being continually evaluated by Project Controls during the entire acquisition process. Material requisitions (MRs), Service Requisitions (SR’s), Pr ocurement Pr ocurement Commitment Authorisations (CAs), Bid Tab, Contract Commitment Authorisations (CCAs), and Extra Charge Approval Requests (ECARs) will be routed to Project Controls for sign off and acknowledgement. acknowledgement . This will enable Project Controls’ continuous in volvement in identification of any cost and schedule impacts associated with purchase orders and subcontract subcontract packages. packages. Project commitments commitments and costs costs for materials and subcontracts will be loaded, recorded, and reported using the ePCWorks Cost and Commitment (COCO) (COCO) module. module. The COCO report report will be produced by the project lead cost engineer in the home office until responsibility moves to the field.

Project Forecasts A project forecast is a periodic periodic reassessment reassessment of a project's scope, cost and schedule. Project forecasting forecasting is an integral part of Bechtel's Bechtel's project control system. The extent of the forecasting effort is dependent on project size, complexity, and scope. Typically forecasts are completed annually or at key project milestones dependent upon complexity complexity of the project. Requirements Requirements and frequency of of project forecasting forecasting are specified in Volume 1 of the PEP. The objective of the Project Forecast is to provide: 







The best current evaluation of the total cost and schedule information necessary to complete the project for the specified scope of work. Determine critical items for management management review and action Provide a sound basis for future project control - the project forecast provides a consistent baseline for the project team to measure the status of the project relative to its budgeted goals. Following a Forecast, the project team should be able to take appropriate appropriate actions to maintain the most cost-effective methods for completing the assigned scope.

For major forecasts the estimate will be compiled based on an established process within Bechtel’s OG&C organisation utilising standard tools across all its business offices. It will be structured with clear division division of responsibility responsibility between between project project partners and functions with close liaison between b etween estimating, engineering disciplines and procurement to ensure accurate interpretation of engineering requirements, material quantities quantities and an appropriate level level of vendor support. The thorough review review process within Bechtel pays particular attention to engineering scope and quantities on a discipline by discipline basis and this is followed by project, functional and management management reviews of the t he individual elements of the Estimate (Forecast). An Estimate Plan will be developed developed at the start of the forecast schedule which will clearly indicate indicate a logical structure structure to the process process for generating the estimate. The plan will detail the quality level of inputs required from Engineering and other departments providing data to the estimate to ensure the required accuracy is met and their timely delivery in line with with the overall schedule. The extent of vendor and subcontract pricing support will also be determined and shown in the plan to achieve this level of accuracy. The Estimate Plan Plan is reviewed reviewed in detail by the Project Doc. No. 10015-G01-JG0 000-1002 Rev 2 Confidential © 2013 2013 Bechtel Limited. A ll rights reserved

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Management team and distributed widely to the project team and its key messages reinforced during during an estimate/ estimate/ forecast kick-off meeting with with the Project. A similar work process is adopted for developing FEED estimates.

9.8

Change Control

Bechtel will implement a robust two-phased Trend Programme with full participation of the client. Bechtel’s trend/ trend/ change management management programme programme provides an an “early warning system” for rapid identification of potential changes to the baseline scope of work with its resulting impact on the Total Installed Cost/ contract value as well as on the contract schedule. The intent of early identification of potential changes is to provide the project team the opportunity to facilitate resolution/ mitigation/ cancellation of potential trends and/or to take advantage of opportunities which could result in cost/ schedule savings. All project team members members are encouraged encouraged to flag potential potential issues which which could result in cost/ schedule impacts. Identified trends with their order of magnitude (OOM) cost estimates and schedule impact assessments are reviewed at regular trend meetings to assess potential severity of impact. impact. The focus at this stage stage is to develop develop an OOM cost estimate/ estimate/ schedule impact assessment using best available information rather than accuracy of estimates. Joint review meetings meetings between between Bechtel and client client management management will be used to facilitate resolution of trends with an emphasis on identification of cost/ schedule mitigation mitigation measures. measures. If the client and and Bechtel agree agree that the trend is merited, the second phase of the programme will be initiated, which involves a more thorough evaluation evaluation of the t he cost and schedule impact of the change. For approved trends, Bechtel will prepare the necessary documentation as per approved procedures for variation requests covering any changes in scope. This will include cost estimate/ schedule impact assessment for all such variation requests along with with necessary support documentation. documentation. Once a change change is approved, approved, the baseline control tools comprising the total installed cost or the lump sum contract value as well as the t he contract schedule will be updated. Up-to-date registers documenting status of trends will be maintained as per the approved procedure and will be includes as a part of the monthly report. The following figure depicts the trending/ change management management process.


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RESPONSIBILITY

WORK PROCESS

Project Controls team along with Client / Bechtel Project Management

Define Cost / Schedule baseline Target Price / Contract Price Contract Schedule

Any Project Team Member

Identify deviation from cost / schedule baseline

Trend Engr with assistance from team

Develop OOM Cost and Schedule Impact

Bechtel / Client Project Management

Review Potential Trend Identify cost / schedule mitigation measures

Potential Trend approved?


e l u d e h c S t c a r t n o C r o / d n a

No

Trend Cancelled Do not proceed with trended work

No

Trend Cancelled Do not proceed with trended work

Yes Trend Engr with assistance from team

Develop detailed Cost and Schedule impact. Yes

Client Management

Final approval & sign off?

Bechtel

Change Order issued to Client for approval


Change Order Approved

e c i r P t c a r t n o C / e c i r p t e g r a T e t a d p U

No Agree revisions scope and amend

Yes Bechtel Project Controls

Incorporate Change into Cost / Schedule baseline


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9.9

Project Controls Systems Integration

Bechtel employs time tested Project Controls work processes to monitor progress, measure performance and report costs in all work locations against the agreed project baseline. Bechtel’s standard work processes are structured to provide normal checks and balances on reported figures for progress, performance and costs. In addition to the normal in-built checks, additional analysis and sanity checks are carried out by the Project Controls team to ensure progress, performance and costs are reported correctly. The following Integration diagram overleaf indicates how the different Project Controls systems interact with each other as well as systems/ work processes managed by other functions/ departments.


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Project Controls Systems Integration Diagram

Contract / Specification of Services / Project Control Requirements

Work Breakdown Structure (WBS) Services Estimate (by CTR)

Class 3 Estimate BETK

Budget Split by Code of Accounts

Infoworks (Document Control)

Gbetr Timekeeping & Payroll Systems

Project Milestone Schedule (Level 0) Project Summary Schedule (Level 1)

FinancialSystems

Actual Manhours &Costs

Overall S Curve

HO Manpower schedules EngineeringServices

s e g n a h C / s d n e r T f o t c a p m i e l u d e h c s e d u l c n i o t s e l u d e h c S t s u j d A

Engineering

Procurement Services Sub-contract Services Equipment / Pkgs

Procurement

Bulks

l e c x E

Construction

Start-up

Project Risk Register

Schedule Impact Reporting

e l u d e h c S 1 . t n o C b u S



Commissioning by sys

Manhour and Services Cost reporting

/ R P P E

DeliverableStatusListing Exception Reporting

Progress Computation S Curves

S P B

Manufacturing & Delivery Progress by discipline for Ept, Bulks and Op. Spares

Progress Computation

OperatingSpares Construction by area Pre-Commissioning by sys

a r e v e m i r P

S Curves

Progress Computation

Level 4 / 5 schedules Sub-Contractor Progress Computation / Invoices

s e i t i t n a u q d e l l a t s n I f o n o i t a d i l a V

Approve Sub-Contractor Progress Invoices

Services Man-hours & Costs for FEED, EP and CM phases

Commitments

Field ODC's

Bechtel Procurement System (BPS)

Top-ups + Misc Purchases Construction Contracts

eSub

Oracle 11i s t n e m t i m m o C

Construction and Commissioning Costs

Other Costs (Contingency, Client Costs etc)

Commitments

(Accounts

Payable and General Ledger) s t s o C l a u t c A

ePCWorks COCO Module Tracking of Budgets, Commitments and Incurred Costs

Teamworks Piping / Mech Qtys

s r u o h n a M t e g d u B

Equipment, Bulks and Operating Spares Costs

s l a u t c A & s t n e m t i m m o C s ' C D O / r u o b a L M N

Manpower deployment schedule Eqpt deployment schedu le Quantity based progress rpt

BudgetMan-hours&Costs

Weekly / Monthly Progress Reports

S Curves

s e l r b a o r t e c v i a l r t e n d o g C n - i b l u u d S e h c S

Monthly Services Invoice

Overall Progress 90 day front end schedule

Master Schedule (Level 2)

) a r e v e m i r P ( e l u d e h c S 3 l e v e L

Actual Manhours and costs

Actual Manhours

s e u l b t a a t r e S v e i l e u s s D I

FinancialAssetRegister (Project Completion)

s d n e r t d e v o r p p a f o t c a p m i t c e l f e R o t s t e g d u B t s u j d A

Project Trend Program Trend Baseline

Civil / Structural Qtys

Setroute - Electrical / Instrumentation Qty

Trend development

InTools Tagged Instruments Qty

Scope Changes incl schedule impact

Trend Approval (Client)

Contract Trend Notice to Client

Schedule Impact approved by Client (Change Orders)

Doc. No 25795-G01-JG000-1002 Rev 2

Trends approved by Client (Change Orders)

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Project Controls Integration with other System Input/ Outputs Work Process/ Task Progress Measurement

Inputs from other Systems/ Applications

System/ Application Engineering Progress – ePCWorks (EPP Module) EPPR calculates physical progress for each of the deliverables according to a set of weighted values allocated to each deliverable based on level of effort (man-hours). The actual progress of deliverables is determined by assessing the present complete of each deliverable in terms of earned value against pre-determined control points.

Procurement Progress

Level 3 Primavera schedules provide the date envelopes for different deliverables in the EPPR (Level 4)





InfoWorks – Actual issue status and dates for deliverables used for updating actual progress of deliverables in the earned value measurement system



BPS – Planned and Actual dates against predetermined control points in the life cycle of a Material Requisition / Purchase Order for Tagged items or Bulk commodities.

Procurement progress is determined by using the detailed schedule information supplied by the Bechtel Procurement System (BPS). 

Cost Reporting

FEED / EP CM Services Manhours and Costs



Input Data Interchange/ Frequency / Remarks 





The Level 3 Primavera schedule dates are used as a guideline by Planning Engineers and Discipline Leads to set the baseline forecast dates for deliverables.

Weekly – Data transferred manually.







Updated Forecast dates in EPPR provide input to Planning Engineers for updating Level 3 Primavera schedules

Output Data Interchange/ Frequency/ Remarks 

Forecast dates and intermediate milestone earnings in EPPR are updated bi-weekly based on hard-copy mark-ups by Discipline Leads and transferred manually to EPPR by EPPR Coordinators on a bi-weekly basis.

Export data to Excel for development of progress curves etc.

Weekly / Monthly – Data can be transferred electronically for progress computation. Occasional manual intervention required for checking and correction of MR / PO number mismatch etc.



Approved Issue of EPPR/ CTRs will form the original budget for the reporting of man-hours and costs.

Outputs to other Systems/ Applications



Frequency of Timesheet systems typically coincide with the payroll systems depending on the country of assignment.

Doc. No 25795-G01-JG000-1002 Rev 2





Actual Man-hour expended data by location / function / discipline for Engineering performance computation in ePCWorks (EPP Module).



Man-hour data is summarised and reported on a bi-weekly basis. Actual man-hours expended are loaded into ePCWorks EPP module via an Excel batch file.


Reliance Industries Limited J3 Program Work Process/ Task


System/ Application 





TIC Costs (excluding Cost of FEED / EP CM Services)



ePCWorks Cost and Commitment (COCO) Module will be used to track and report the budgets, commitments, actuals and forecast costs by Code of Accounts 





Input Data Interchange/ Frequency / Remarks


Output Data Interchange/ Frequency/ Remarks

Actual man-hours expended are tracked in Bechtel’s gBETR system on a biweekly / monthly basis. Costs can be captured by WBS / CTR etc. depending on an agreed structure for man-hour / cost reporting. Actual man-hours loaded electronically to the payroll systems / financial systems. Actual salary data from payroll along with agreed percentages / rates for payroll burdens, overheads etc. The approved estimate from BETK in terms of quantities and costs (by Code of Accounts) will form the original budget.

BPS provides commitments for purchase orders split by Code of Accounts. Contains currency information.





Estimate from BETK can be extracted and then loaded electronically in to ePCWorks COCO via Excel batch load file at the start of the project.

BPS/ eSUB data is typically extracted and loaded into ePCWorks COCO via an Excel batch load file.

eSUB provides commitments for subcontractors. Actual invoiced to-date or Actual paid to-date information is extracted from the Accounts payable system (Oracle) for Bechtel placed orders.







Trend Programme / Change Management System: The original budget in terms of quantities, man-hours and costs for the Trend Baseline. Any changes from this baseline are trended via the Trend Programme. Commitment and Actual payment data by currency from the COCO system forms the basis for updating the currency cash flow





Trends identified on an ongoing basis.

Currency cash flow typically updated monthly. Commitment and Actual paid data can be extracted from ePCWorks COCO via Excel spreadsheet.

For Bechtel placed orders, this data can be extracted electronically from the Accounts payable system and loaded into ePCWorks COCO module by means of a batch load spreadsheet.

Doc. No 25795-G01-JG000-1002 Rev 2


Reliance Industries Limited J3 Program Work Process/ Task Scheduling


System/ Application Level 0, Level 1, Level 2 , Level 3 and Level 4 schedules



Level 2/ 3 schedules are typically maintained in Primavera and provide the logical sequencing of project activities and provide the critical path through the network 





Schedule Hierarchy Each successive levels of the schedules provide summary data for the schedule immediately above it in the hierarchy. Different functions / disciplines provide status update for the level 3 schedule which in turn is used to roll up progress to higher level schedules. Different modules within BPS provide the status of procurement activities including placement of orders, manufacturing and sub-ordering and delivery to site. Sub-Contractor schedules / Implementation contractor / vendor schedules










Level 4 schedules are typically updated weekly or bi-weekly while Levels 0-3 are typically updated on a monthly basis. Data is rolled up manually by Planning Engineers for updating the schedules.









Project Risk Register Schedule Impact Report detailing the impact of various changes / potential changes on the project critical path and mitigation plans Level 4 schedules – The Level 3 schedules provide the date envelopes for different deliverables / tasks in the level 4 schedules.

Status from BPS is rolled up manually by Planning Engineers for updating the schedules.

Data from sub-contractor schedules is rolled up to provide input to higher level schedules. In some cases, sub-contractor or vendor schedules could be imported into the master schedule and linked to the master schedule via critical interface milestones.

Doc. No 25795-G01-JG000-1002 Rev 2


Reliance Industries Limited J3 Program Work Process/ Task Performance Measurement


System/ Application Engineering performance measurement (ePCWorks EPP Module) The ePCWorks EPP system measures Engineering Performance Factor as a ratio of Actual Expended man-hours divided by Actual Earned Manhours (derived from the physical progress measurement described above)



Actual Man-hours expended by location / function / discipline from Financial Systems / Timesheet system






Data can be uploaded from timesheet systems via an Excel batch load file on a biweekly basis.

Doc. No 25795-G01-JG000-1002 Rev 2



9.10 Best Practices Programme Bechtel maintains a comprehensive Lessons Learned database as well as a Six Sigma process improvement database. On completion of a project lessons learned/ Six Sigma data is captured and entered into such databases for use on new projects. During the start-up of a new project each discipline will review such databases and implement lessons learned/ Six Sigma improvements processes where appropriate.

9.11 Quality Programme A project controls quality assessment is a comprehensive review of a project’s compliance to the Project Controls Department Procedures (PCDP), which will be conducted at various stages throughout the life of the project. During this assessment, the project’s cost, trend and scheduling operations will be systematically assessed to determine if the programme components have been implemented as described in the PCDPs and the Project Controls Plan. As a result of the assessment, an action plan will be developed for the project to become compliant in any areas that are found to be noncompliant and/ or ineffective. This action plan should contain not only the fixes required and the timing of their implementation, but should also provide a plan for monitoring and post-implementation assessment. The timing of the audits will follow the schedule as determined by the OG&C GBU Project Controls Department.

9.12 On Project Reporting/ Reviews Weekly (if applicable) and monthly reports will be prepared and issued to provide succinct information to Bechtel and Client project management for decision making and keep off-project senior management informed of project status. A project reporting calendar (schedule of reporting cut-off and report issue dates) will be established and agreed with the Client at the beginning of the project. The reporting calendar, inter alia, will show: 

The different reports/ deliverables required to be produced as per the contract



The reporting frequency and publishing dates desired by the Client



The agreed cut-off dates for each location to support the final publishing date allowing for adequate review of data for consistency and accuracy (taking into account the individual working weeks, weekends, public holidays at different locations etc.). This will ensure consistency in reporting across all work locations.

The key to set up of a robust reporting system would be, as far as is practicable, to utilise enterprise reporting systems wherein different work locations input their data into a centrally located database thereby significantly cutting data consolidation effort and time for overall reporting. Bechtel will employ this approach for engineering progress, procurement progress, overall schedules etc. as detailed above. All work locations would be required to complete their input by the agreed time on the agreed cut-off date. The data will then be consolidated and summarised in a single location. Where the use of an enterprise wide solution is not practicable (or applicable), the project would develop standardised reporting templates. Again, all work locations would be required to provide their data electronically by the agreed cut-off time. Bechtel will flow down the requirements of the project reporting calendar to 3rd party

Doc. No 25795-G01-JG000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

Page 117 of 129


vendors and construction sub-contractors so that latest data is available for overall reporting.

10 Information and Systems Technology (IS&T) 10.1 IS&T Organisation IS&T provides the strategic capability and resources (technology, systems, expertise, and support) that support Bechtel projects. IS&T provides this services capability via the development, management, maintenance and support of an integrated network of computing resources in order to provide the management of data and information processing services to its authorised users, the organisation, and the projects being executed. IS&T implements its established Bechtel policies and procedures on each project ensuing consistency of execution which include lessons learned from previous projects and application of best practices. Project IT - Bechtel has a specific team of IS&T professionals, called Project IT, that work directly on projects that provide a central point of contact to address the specific automation and information management requirements throughout the project lifecycle working with corporate IS&T services, interfacing with customers, the project management team, subcontractors and suppliers. The Project IT Manager (PITM) is responsible for the following through the phases of the project: 







Planning and managing the timely delivery of the appropriate IS&T goods and services from the IS&T portfolio. Identifying project automation opportunities and risks. Defining and managing the strategies to realise or mitigate the project's contractual obligations. Facilitating the EPC data validation, integration, and handover as defined by the project's contract.

10.2 Project IT Manager within the Project Organisation The following chart shows the how the Project IT manager would operate on a project, coordinating the BSAP Support and IT/ IS Service delivery.

Project Manager

BSAP Support provided by the functions

Project IT Manager

IS&T Infrastructure / Voice / Data / LAN / WAN EPC Corporate Services

Procurment Manager

Engineering Manager

Project Controls Manager

Etc

Project IT Manager Coordinates Automation and IT service delivery to the project


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Tabled below is a summary of support DOR between various IS&T functions, EPC Systems, Home Office (HO) and Global Execution Centre (GEC) and functional super users.

) M I O / H ( T I r t e c g e a j n o r a P M

Description

d a e L ) T C I t E c G e ( j o r P

t n e m s y n o o i l p t e a r D e l p a O c o L

t r n o o p i p t u a s S i l n a a b g o r l O G

/ r e s t U r r o e p p p u u S S U B G

/ r r e o s t u a n r i e d p r u o S o t C c e D j A o r C P

M P U

Deliver / Fix Hardware Bechtel Standard

C

C

R

A

A

A

Deliver BSAPs (Local)

C

C

R

A

A

A

Deliver BSAPs (PSN)

C

C

A

R

A

A

Configure GBU BSAPs

C

C

A

R

A

A

R

A

R

A

A

Define project use of BSAPs Support Office Automation

C/A

C/A

R R

Support BSAPS / EPC Systems Client Automation

R / C

C

Project Security

R / C

C

A

R - Responsible

Responsible groups will deliver the services they are responsible for. This will include helping to define the best solution for the project, agreeing how and when it will be delivered.

C - Co-ordinate

People who coordinate are responsible for identifying the requirements and managing delivery of the services to the project. This includes reporting and escalation of progress and issues.

A - Assist

People who assist provide direction on requirements and actively support the support and delivery groups.

10.3 Project Services Network (PSN) Bechtel has developed a new global infrastructure, called the Project Services Network (PSN), combining the best technology available to provide fast, secure access to applications and allowing them to be deployed quickly and globally. Through the PSN Portal, project participants have secure access to what they need to accomplish their work. Data is maintained within the PSN environment and the policy-based security model offers easier access and minimised risk to intellectual property. Global availability will be provided via the PSN, which has the following features: 







It is a high bandwidth global resilient network, which allows for unforeseen network connectivity outages. Local access points allowing access onto the PSN backbone for local or remote offices via internet portals or direct connections. Performance is enhanced using application and data compression as well as engineered internet routing. Bechtel servers have consolidated into regional data center’s with virtual server farms.


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





Applications are delivered using Web or Citrix technology. Access to applications can be from within the Bechtel network or externally from suppliers, contractors, JV partners or client. PSN technology is supported 24/7 by the Global Helpdesk and Network Operations Centre.

10.4 Project Phases


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10.4.1

Project Award Phase

The PITM is assigned to the project once the project is awarded and project management team is assembled. The award phase is considered the basis for establishing the IT execution strategy which may or may not have been fully formulated during the proposal phase prior to award. The IT Strategy must be consistent with Bechtel’s contractual obligations. Efforts in this phase minimise problems during the execution and closeout phase. The PITM shall: 







Request the copy of the contract documents and addendums (the commercial copy is preferable). Deliverables - a list of Client requirements as per the contract. Review the JV/ Partnering contract (if applicable). Deliverables - a list of JV / partnering requirement including work sharing, hardware and software requirements Identify any Sub-Contract requirements, such as provision of data, data formats or use of Bechtel systems, and work with Contracts and Procurement to implement Review the IT proposal automation plan for: 





IT Deliverables - a list of the proposed IT solutions that form the basis for the IT prices in the contract. Project Deliverables - Customers typically issue functional specifications for handover of EPC deliverables. The functional specifications can make binding contractual obligations on Bechtel for both the formats of the data and documents as well as the level of detail and degree to which data and documents are integrated. Such functional specifications may also specify software licenses that must be provided at the time of turnover. It is the responsibility of the Project IT Manager to read all functional specifications and inform other members of the project management team of requirements that are inconsistent with the project execution approach and approved budgets.

Agree the Project Execution strategy with the Project Management Team.

ORRT - The PITM will hold a functional review via the ORRT (Operational Readiness Review Team) of the project immediately after the project kick-off: 



10.4.2

The intent of the ORRTs is to offer the project, sponsoring GBU and identified PITM a timely, technical assessment of the viability of leveraging the PSN environment based on first-hand information provided. Preliminary project execution scenarios and contractual requirements such as schedules, potential J/V partnering, work sharing, location staffing, BSAP usage will be analyzed from a PSN perspective, identified gaps will be communicated with the TAT (Technical Advisory Team) to ensure readiness. Review of ORRT on a project should be done at each significant phase of the project. Project Development Phase

The Development Phase is a major phase for completing the IT deliverables on the project.


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The PITM shall create the following plans and documents as applicable for the type of contract.

The Project Execution Plan (PEP). A summarized version of the automation plan is an integral part of the PEP Volume 1. Not all details in the automation plan are included in the project execution plan.

The Project Automation Plan: The main IT deliverable on the project that incorporates the IT solutions and methodologies and the lists the deliverables on the project. The Project Automation Plan is expected to be issued within two months of the project award.















Discipline staffing plans and IT execution schedule – It is important to maintain an updated staffing plan at all times. Project staffing plan helps PITM estimate the IT costs and helps IS&T schedule resources. The PITM shall requests updated staffing plan from the Project Controls every quarter. The PITM shall updated staffing plan in the IT current forecast or projection budget. IT Milestone/ implementation schedule – The PITM shall develop and maintain an updated project IT milestones plan. The IT milestones plan is the IT commitment to deliver IT solution on the project. Special Software requirements (Specialist Simulation, Client requested, etc.) – The PITM shall ensure that these are identified and documented as appropriate. Client access and security policy Joint Venture Access and security policy – In case the GEC is a JV or subcontractor to Bechtel, a JV access and security policy is developed to identify the access and security limitations to the JV personnel and JV office.

Information Management 





Information Management (IM) is defined as the collection, validation, packaging and transfer of all data and documents generated on an OG&C project. This includes but is not limited to data, databases and documents that are transferred internally between disciplines and functions as well as data, databases and documents transferred between the EPC contractor, partners, suppliers, subcontractors and clients. If there is a requirement for IM on a project then a Project Information Manager will be appointed to create an Information Automation Plan to manage the Information Management component on the project. The Project Information Manager is a member on the Project Management Team and ensures engagement from all functions and disciplines as well as to highlight issues and opportunities which can materially impact the execution of the project.

Project Logs 





CHANGE Log. The PITM will create an IT Change Control log at the start of the project, and maintain it through the life of the project. This will be used to manage the impact on cost to changes to the as sold contract Risk Log. The PITM will create an IT Risk log at the start of the project, and maintain it through the life of the project. ISSUE Log. The PITM will create an IT Issue log at the start of the project, and maintain it through the life of the project to track open issues to be


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reviewed with the Project Manager on a weekly basis. This allows urgent issues to be tracked and escalated. Bechtel Standard Application (BSAP) 

OG&C Bechtel Standard Applications Programs (latest versions). The GBU implements a standard set of application tools across the world and deviations from this standard must be approved by GBU senior management. Bechtel will use its standard portfolio of integrated Bechtel standard applications to support its standard work processes. Implementation of these tools shall be reviewed and confirmed prior to use, for example they may be subject to intellectual property restrictions when used in partner/ 3rd party execution centres. The PITM shall maintain a list of all BSAP applications and version used on the project. The list is maintained either in the automation plan. The PITM will ensure that any deviations will need to be approved and documented in the project Automation plan.





Establish and create a BSAP Implementation Plan and Schedule. The PITM will create a Project IT milestones plan which shall include a BSAP implementation plan to estimate when each BSAP application will be deployed on the project along with a list of BSAP super users and support contacts. Software Application Release Management/ Document The PITM will ensure that the project will control and manage any changes to the software portfolio to be used on the project. Software applications shall not be deployed for production use in the OG&C GBU without first obtaining the necessary approvals.



Management of Non-Standard Software The PITM will ensure that the project complies with IDP Management of NonStandard Software. This procedure defines the management steps to be followed for requisition, approval, acquisition, installation, retrieval, storage, and reuse of non-standard software in the London Execution Unit.

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OG&C PSN BSAP Certification Process The PITM will ensure that the project complies with the OG&C PSN BSAP Certification Process. The purpose of this document is to describe a standard OG&C process for certification and approval of applications listed in the OG&C application portfolio before they are deployed in PSN for OG&C projects. The certification process consists of testing by the OG&C BSAP or application owner to ensure that the application and its dependencies will work in the PSN environment for OG&C.

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Procedure for OG&C Data Integration BSAP Integration diagrams (level 1, 2 and 3) – The BSAP Integration diagrams are developed in cooperation with PITM and discipline leads. The integration diagrams are included as attachment in the automation plan or in the Project Data Integration Plan. Applications will be integrated in line with the standard OG&C integration diagrams:  

Level 1 – Cross Functional Level 2 – Function/ Discipline


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Level 3 – Attribute

During the preparation of the automation plan, the PITM will develop of the BSAP integration diagrams, by meeting with each discipline to discuss the work process and integration with other disciplines. Infrastructure (Voice and Data) LAN/ WAN Network diagrams – The PITM will develop an overall telecommunication diagram to depict the LAN/WAN at each execution location. The diagram is maintained in the automation plan.

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10.4.3 

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Project Execution Phase Vacation Schedule and coverage plans – Where assigned dedicated Project IT staff is required, the PITM will maintain and updated vacation plan for all the IT staff on the project including Jobsite and GECs. Bi-weekly Project Automation Progress Report – On bi-weekly basis, the PITM will issue a project IT report for the status of the project using the biweekly project template. Three areas are to be considered; the work completed in the previous two weeks, the planned work on the upcoming two weeks, and any issues that require Project Management attention. The biweekly report is also the vehicle to raise concerns (if any) that may requires IS&T management intervention and support. Participation in KASE and Project Reviews – The OG&C GBU emphasises the execution of KASE Charts on all future projects. The KASE charts are separated into two distinct phases, the FEED Phase and the detailed execution of EPC Phase. Within each phase, there are a number of quality gates identified which serve as management review checkpoints. Each PITM should review the KASE chart at each stage of the project and review the IT role at this stage. Project Staff meetings – The PITM shall attend the weekly project staff meeting. Automation issues and concerns are highlighter on the meeting. The staff meeting is also an opportunity for the PITM to understand how the project is progressing and identify threats, concerns and opportunities. Review/ development of Technical sections for Sub-contracts pertinent to IS&T. This is particularly important when establishing a WAN connectivity through subcontractor. It is also important when using subcontractor to lay down fiber cables and LAN cabling for jobsite and JV offices. Auditing and change management around user and group access - The PITM will review on regular basis the users/ groups accessing project shares and advise the file share owners and/ or folder designees of the folder permissions. The PITM will arrange for or make modification as necessary to the folder structure and/ or access rights. The tools for monitoring are either Active Directory or FSMT. Monitoring - The PITM will ensure that monitoring of the project IT resources is in place.

10.4.4 Project Turnover and Closeout Phase 

Functional Specification Requirements (Customer specific handover requirements) - The PITM shall review the contract for specific handover


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requirements (data warehousing, handover on website, etc.) and agree with the client on the final handover deliverables, phases and timing of Turnover. 

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Project Closeout Procedures - At the early stages of the project, the PITM shall develop closeout project plan. Document Control Centre (DCC) plan and procedures - (all sites) contributor - Each jobsite shall include a DCC. Careful consideration is given to the design of the DCC as it is considered critical for documentation workflow on the project. Automation and media requirements – These requirements can be specified in the Contract. Typical media are CD ROM/ DVD or similar backup. It may also be acceptable to deliver the turnover on an external hard disk. Client knowledge transfer requirements - The PITM should read the contract for any knowledge transfer requirements related to the IT and develop and plan for implementation. The plan has to be approved by the client.

10.5 Procedures The IT Manager will deploy and ensure compliance with the applicable IS&T procedures. 10.5.1

Security

The PITM will refer to the ISO 27001 Information Security Management System (ISMS) Procedures. 10.5.2

Project Procedures

Any specific project procedures will be created on a project as necessary. 

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Quality Plan - The Project IT Manager will develop the Project IT Services Quality procedure for the project. IT Safety Plan - Bechtel targets zero accidents. This requires careful consideration on safety in every aspect of the project execution. IT is no exception.

11 Project Administration Plan 11.1 General Project Administration controls and disseminates information throughout the project. This includes implementing the records management system (ROMS) f or controlling, maintaining, and retaining all project information, records, correspondence, and documentation. Project specific procedures have been prepared and will be implemented to create a communication route that supports timely communication and also an accessible and reliable records storage and recovery process.


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11.2 Communication Communication will be project specific and described in Volume 1 of the PEP which includes: 

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The preferred communication modes available to the project team members (both on and off project). The necessity of contract adherence in operations and procedures and the importance of confidentiality in project business matters. Direction on letterhead usage, correspondence numbering, handling of meeting notes, phone calls, e-mail, and the project master distribution schedule. The focal point for establishing and maintaining the electronic, hard copy, and verbal interfaces developed to ensure effective and consistent record and information sharing among project groups and with the customer. Specify that Project Administration performs the official distribution of all project information in accordance with established interfaces and lines of communication protocol as outlined in the communication procedure. Standards for using and controlling e-mail and the normal modes of contact between parties. Consideration to who can send what to outside contacts and what types of information and commitments must be followed up with formal project documentation. State the means of transmitting written communications when urgent.

12 Project Closeout Plan 12.1 General It is important to address project closeout at the beginning of the project. Customer requirements must be established and communicated at the beginning of the project to ensure proper planning and budget allocation to permit efficient and timely closeout. This section contains the OG&C GBU standard approach to job closeout. To close a project, the following are examples of activities that must be completed: 

Complete all work within scope.

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Close all purchase orders and (sub)contracts (settle all claims/disputes)

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Complete final billings

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Receive and record all “as-built” information

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Compile and transmit project history

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Prepare and archive Bechtel-retained files

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Prepare and transmit customer files

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Prepare property asset records

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Turn over as-built drawings to customer

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Turn over customer training records

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Transmit calculations to customer (if required)


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Prepare project historical report

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Turn over electronic data to customer (if required)

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Document best practices/lessons learned

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Prepare PC hardware and software release schedule

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Release CADD terminals and software licenses; remove on-line storage

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Remove telephones, phone cards, faxes, etc.

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Close all work releases

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Provide project best practices/ lessons learned to the department best practices/lessons learned processes

The following sections should provide the standard activities/approach required to complete the project.

12.2 Engineering Project Closeout Plan The Engineering close out of the project will be addressed in the early stages to ensure that customer and project requirements are incorporated in the production of deliverables and set-up of project systems and procedures from the early days of the project. It is vital to ensure that specific close-out requirements are so addressed in order to avoid re-work during the later stages of the project. Engineering shall prepare a project procedure related to project close out. The procedure shall address specific aspects of project close out as it relates to engineering and specific deliverables prepared during the life cycle of the project. The procedure shall incorporate any requirements which are set out in the contract and the following specific areas. Roles and responsibilities for each team member as it related to project close out. DOR covering close activities. Project documentation turnover specifically: 

Format of drawings and documentation

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Format of electronic data bases

As built documentation specifically: 

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The receipt and recording of as built information The documentation which is required to be provided incorporating as built data/ information. A specific list of deliverables shall be agreed with the client as included in the contract.

Final coding of vendor documentation. Final coding of MRBs and OMMs.

12.3 Procurement Project Closeout Plan At the conclusion of a Project, Purchase Order files will be retained and archived in accordance with Project Procedures and Records Management Instruction G3I000M-00001 titled “Records Retention and Disposition”. The Records Management Instruction defines the requirements for retention and disposition of records generated or received by the Project in the conduct of its business including the minimum required retention period. Doc. No 25795-G01-JG000-1002 Rev 2 Confidential © 2013 Bechtel Limited. A ll rights reserved

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Early in the EP phase of a project, at the same time the other Procurement Procedures are being developed, the Procurement Project Close Out Plan shall also be issued. The procedure details the process and procedures for closing out Procurement activities and documents on the project. It is critical for this procedure to be issued early so all Procurement team members are aware of the requirements and can begin closeout with the issuance of the first RFQs and Purchase Orders by filing the required documents in the correct format and correct location. A sample checklist is included in the Corporate Purchasing Manual that aids in file closeout. Due to the unique nature of many Bechtel Projects, the checklist should be reviewed and tailored for the specific Project – this project shall be no exception. The checklist should become an integral part of the Procurement file as evidence that the audit was performed. This activity should be completed on each file when Project Procurement actions are over and the equipment is delivered and received without exception. Items typically covered in the Procurement Project Closeout Procedure include: General topics: Document retention requirements: 

Bechtel standard requirements

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Customer requirements

Purchasing: 

Approved Bidders list and/or sole source justification in InfoWorks

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Confidentiality Agreement, if applicable, in InfoWorks

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Restricted parties screening in InfoWorks

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Purchase Memorandums in InfoWorks

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RFQ / bid request letter in InfoWorks

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Approved commercial bid tab in InfoWorks

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Successful bid in InfoWorks

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Credit review (if required) of successful bidder in InfoWorks

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Approved technical bid tab in InfoWorks

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Key Electronic Pre/Post-Award and internal correspondence in InfoWorks

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Letter Of Award, Purchase Order, Purchase Order Revisions including Terms and Conditions in InfoWorks

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Signed acknowledgements of LOAs, P.O.s, P.O. Revs in InfoWorks

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P.O. releases and supplier acknowledgments in InfoWorks

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All ECARS complete, signed and in InfoWorks

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Verify that last P.O. value matches the commitment value on BPS

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Verify that outstanding P.O. Balances are reconciled and closed out properly

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Verify that purchasing supplier performance is entered into BPS

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Warranty Information and contacts have been communicated to jobsite representatives.


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10015-G01-JG0000-1002 (1)

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