2.20_Appendix G -Project Coordination Procedure 170611df

Appendix G – Coordination procedure

Rev 01 17.06.2011 Page 1 of 65

eni ZUBAIR PROJECT

APPENDIX G

PROJECT COORDINATION PROCEDURES


Rev 01 17.06.2011 Page 2 of 65

TABLE OF CONTENTS

1. INTRODUCTION 5

1.1 PURPOSE 5

1.2 DEFINITIONS, ACRONYMS AND ABBREVIATIONS 5 1.2.1 General Definitions 5 1.2.2 Specific Terms, Acronyms and Abbreviations 5

1.3 ROLES AND RESPONSIBILITIES 6 1.3.1 COMPANY 6 1.3.2 CONTRACTOR 7

2. PLANNING AND SCHEDULING 7

2.1 GENERAL 7 2.1.1 Reports Format Submission 7 2.1.2 Measurement and Control System Submission 7 2.1.3 Short Term Plans 7 2.1.4 Primavera P6 Project Management Software 8

2.2 PLANNING AND SCHEDULING MASTER TOOL 8 2.2.1 WORK TIME SCHEDULE 8 2.2.2 Schedule Coding System 9

2.3 PLANNING AND SCHEDULING SUB TOOLS 10 2.3.1 Contract Execution Plan 10 2.3.2 Planning of resources 10 2.3.3 CTRs (Cost, Time, Resource Sheet) 11 2.3.4 Risk Management Plan 11

2.4 TOOLS ADMINISTRATION 12 2.4.1 Progress Measurement 12 2.4.2 Progress Reports 13

3. COST CONTROL REPORTING 16

3.1 PREAMBLE 16

3.2 COST REPORT 16 3.2.1 Cost Reporting Structure 17 3.2.2 Monthly Cost Report Meeting 17

3.3 CURRENT CONTRACT PRICE 17

3.4 COST FORECAST 17 3.4.1 Cost Forecasting Procedure 17 3.4.2 Cost Forecast Supporting Documentation 17 3.4.3 Cost Forecast Phasing 18 3.4.4 Forecast Calculation 18

3.5 VALUE OF WORK DONE 18 3.5.1 VOWD Procedure 18 3.5.2 VOWD Supporting Documentation 18 3.5.3 Variance from Planned VOWD 19 3.5.4 Accrual Justification Forms 19

3.6 INVOICED 19

4. ADMINISTRATION AND PAYMENT 20

4.1 GENERAL 20

4.2 CONTRACT MANAGEMENT 20

4.3 KICK-OFF MEETING 20

4.4 COMMUNICATIONS 21 4.4.1 Transmittal Note 21 4.4.2 Correspondence Coding and Register Submission 21

4.5 MEETINGS 22 4.5.1 Meetings Minutes 22 4.5.2 Meetings Agenda 23


Rev 01 17.06.2011 Page 3 of 65

4.5.3 Daily, Weekly/bi-weekly Progress Meeting 23 4.5.4 Monthly Progress Meeting 23 4.5.5 Procurement Plan 23 4.5.6 Procedures for SUBCONTRACTORs Control and Administration 23 4.5.7 Subcontracts Documentation 23

4.6 CONTRACTOR PERSONNEL ADMINISTRATION 24 4.6.1 Project Organisation Chart 24 4.6.2 Key Personnel CVs 24 4.6.3 Register of CONTRACTOR PERSONNEL 24 4.6.4 Personnel Assignment Authorisation Form (PAAF) 24 4.6.5 Timesheets 24 4.6.6 Overtime 25

4.7 SITE / COMPANY INSTRUCTIONS, VARIATION ORDER REQUESTS AND VARIATIONS 26

4.8 CONTRACT CALL-OFFS/WORK ORDERS 26

4.9 PAYMENT APPLICATIONS AND PAYMENT 26 4.9.1 Application for Milestone Payment 26 4.9.2 Application for Payment 26 4.9.3 Certification and Payment by Company 27 4.9.4 Format 27 4.9.5 Invoiced Expenses 27 4.9.6 Reimbursable Materials 27 4.9.7 Rebates 28 4.9.8 Final Billing 28

4.10 COMPLETION AND CONTRACT CLOSE OUT 28

5. INTERFACE MANAGEMENT 29

5.1 INTERFACE MANAGEMENT SYSTEMS 29

5.2 SCOPE 29

5.3 CORE INTERFACE ISSUES 30

6. PROCUREMENT, MATERIAL MANAGEMENT AND EQUIPMENT CONTROL 31

6.1 CONTRACTOR‟S PROCEDURES 31

6.2 MATERIAL REQUIREMENTS PLANNING 31

6.3 PURCHASING / CONTRACTS 31

6.4 EXPEDITING 32

6.5 LOGISTIC SURVEY 32

6.6 SITE MATERIAL CONTROL 32

7. ENGINEERING 33

7.1 DESIGN ACTIVITY PLAN 33

7.2 DESIGN CONTROL 33

7.3 ENGINEERING EXECUTION PLAN 34

7.4 ENGINEERING CHANGE CONTROL 34

7.5 ENGINEERING INTERFACE CONTROL 34

7.6 CONTRACTOR‟S INTERNAL ENGINEERING REVIEW 35

7.7 SOFTWARE VALIDATION, VERIFICATION AND TESTING 36

7.8 DOCUMENT REVIEW 36

7.9 NON-CONFORMANCE 37

7.10 TECHNICAL QUERY PROCEDURE. 37

7.11 NAMING AND CODING OF ENGINEERING OBJECTS 37

7.12 CAD MANAGEMENT 37

8. DOCUMENT CONTROL 38

8.1 GENERAL 38


Rev 01 17.06.2011 Page 4 of 65

8.2 SUB-CONTRACTORS AND SUPPLIERS DOCUMENTATION 38

8.3 DOCUMENT ADMINISTRATION 38 8.3.1 Central Document Control (CDC) 38 8.3.2 Computerized Database 38 8.3.3 Document Control and Distribution 39 8.3.4 Interfaces 39 8.3.5 Document Transmission 39 8.3.6 Document Filing and Retrieval 39 8.3.7 Document Status Reporting 40 8.3.8 Document Numbering 40

8.4 DOCUMENT VERIFICATION AND APPROVAL BY CONTRACTOR 40

8.5 DOCUMENT VERIFICATION AND APPROVAL BY COMPANY 41

8.6 DOCUMENT SUBMISSION TO COMPANY 42

8.7 GENERAL DOCUMENTATION REQUIREMENTS 42 8.7.1 Quality Requirements 42 8.7.2 Size 42 8.7.3 Formats 43 8.7.4 Information 43 8.7.5 Units of Measurement 43 8.7.6 Symbols 43 8.7.7 Revisions 43

8.8 PROJECT COMPLETION DOSSIER 43 8.8.1 Supplier Dossiers 43 8.8.2 Records Retention 43

9. PERMITS, CONSENTS AND CERTIFICATION 44

9.1 REPRESENTATIVES 44

9.2 REPORTS AND PROGRESS MEETINGS 44

ANNEX A. TYPICAL ACTIVITY WORK BREAKDOWN STRUCTURE 45

ANNEX B. WORK TIME SCHEDULE SAMPLE 46

ANNEX C. PROGRESS “S” CURVE 47

ANNEX D. MANPOWER HISTOGRAM 48

ANNEX E. COST, TIME, RESOURCE SHEET (CTR) 49

ANNEX F. REPORTS 50

ANNEX G. DELIVERY DATES 53

ANNEX H. COST REPORT TEMPLATE 56

ANNEX I. COST PHASING “S” CURVE 58

ANNEX J. YEAR END ACCRUALS JUSTIFICATION FORM 60

ANNEX K. CORRESPONDENCE CODING 61

ANNEX L. MINUTE OF MEETING FORMAT 62

ANNEX M. PERSONNEL ASSIGNMENT FORM 63

ANNEX N. MILESTONE PAYMENT CERTIFICATE 64

ANNEX O. PAYMENT CERTIFICATE 65


Rev 01 17.06.2011 Page 5 of 65

1. INTRODUCTION

1.1 PURPOSE

This Document, representing the Project Co-ordination Procedures of the CONTRACT describes

the procedural requirements of COMPANY that shall be applied by CONTRACTOR for the sections

that are applicable according to the WORK.

CONTRACTOR shall develop a full set of procedures which covers the full scope of work set out

within the contractual documents relevant to the Scope of Work. CONTRACTOR shall be solely

responsible for developing all necessary procedures except for such mandatory procedures as

COMPANY may supply to CONTRACTOR. CONTRACTOR shall ensure that all procedures

developed by CONTRACTOR are aligned to and compatible with this Document.

If CONTRACTOR takes the view that any of the procedures described in this Document do not

apply in respect of the CONTRACT, CONTRACTOR shall without delay notify COMPANY in writing

specifying the relevant procedures and the reasons why CONTRACTOR takes the view that such

procedures should not apply.

Prior to implementation, CONTRACTOR shall submit all proposed procedures to COMPANY for

review and APPROVAL according to the date specified in Annex G. COMPANY may at its sole

discretion request that procedures be modified or new procedures introduced to improve the

administration of the CONTRACT.

Following APPROVAL by COMPANY, CONTRACTOR may not alter and/or amend any procedures

without the prior written consent of COMPANY.

Nothing contained within COMPANY procedures shall limit or in any way dilute the overall

responsibilities of the CONTRACTOR for the total performance of the WORK.

Where additional procedures are identified during the course of the WORK as being necessary, the

CONTRACTOR shall ensure that such procedures shall be developed and APPROVED by

COMPANY prior to carrying out the WORK in accordance with the requirements of the CONTRACT.

1.2 DEFINITIONS, ACRONYMS AND ABBREVIATIONS

1.2.1 General Definitions

Unless otherwise defined in this Document or the context otherwise requires, words and

expressions in capital letters shall have the meanings given to them in CONTRACT General Terms

and Conditions of the CONTRACT.

1.2.2 Specific Terms, Acronyms and Abbreviations

For purposes of this Document, unless the context otherwise requires the following shall have the

following meanings:

Term / Acronym / Abbreviation Explanation

Bulk Material

Materials such as piping, electrical material, firefighting instruments

and miscellanea necessary to make the equipment of a complex

system.

WORK TIME SCHEDULE

A Gantt chart produced by CONTRACTOR and submitted for

approval to COMPANY

On Approval of the submitted WORK TIME SCHEDULE,

CONTRACTOR shall Baseline the Dates and Graphical reports

produced from this Schedule and these shall form the Baseline

Schedule, „S‟ Curves and Histograms. The „Baseline‟ Schedule is

referred to as the „Target Schedule‟ and shall be used as a

reference to compare Actual Performance.

The „Forecast Schedule‟ shall be the result of regular updating of


Rev 01 17.06.2011 Page 6 of 65

the original Baseline at agreed progress „Cut-Off Dates‟. This

Schedule shall indicate the latest forecast Start & Finish dates for

the Scope of Work versus the „Baseline‟ dates for the Scope of

Work.

CTR

Cost, Time & Resource ( CTR ) a method of detailing the scope into

packages of WORK, identifying the associated deliverables, Budget

Manhours, Schedule Timing & Cost.

Equipment

Whole of devices and machines such as columns, reactors,

exchangers, containers, furnaces, compressors, pumps, filters,

ejectors and others which have a specific function within a complex

system such as oil plants.

Histograms

A graphical representation of planned, actual and forecast

manpower/ man-hour loadings.

'Baseline' Histogram is derived from the first APPROVED WORK

TIME SCHEDULE.

'Current' Histogram agreed subsequent to the 'Baseline' Histogram

that reflects APPROVED changes to the Scope of Work.

Milestone Payment

Certificate

Milestone payment certificate duly issued to CONTRACTOR by

COMPANY.

Payment Certificate Payment certificate duly issued to CONTRACTOR by COMPANY.

Contract Milestone

Contract Milestones are usually specific time related events

determined by COMPANY driven to ensure the overall Contract

Master Schedule objectives can be achieved on time.

Contract Quality Plan Plan which identifies systems, processes and procedures to be

implemented for quality control when executing the Scope of Work.

„S‟ CURVE

A graphical representation of the rate of Planned and Achieved

percentage progress.

'Baseline' 'S' Curve is derived from the first Approved WORK

TIME SCHEDULE.

'Current' 'S' curve, agreed subsequent to the 'Baseline' „S‟ curve

that reflects Approved changes to the Scope of WORK.

„Forecast‟ „S‟ Curve is a projection of the remaining WORK (from

the actual to date) to complete. The forecast curve shall be re run

after every progress update.

TECHNICAL QUERY (TQ)

A Technical query is the term used to reference questions from

CONTRACTORs, Vendors or Suppliers seeking clarification of a

technical nature usually relating to a drawing, specification or other

documents.

1.3 ROLES AND RESPONSIBILITIES

1.3.1 COMPANY

The COMPANY will appoint the person to act on COMPANY's behalf for all project activities and to

be the interface with the CONTRACTOR as COMPANY REPRESENTATIVE. The COMPANY

REPRESENTATIVE can appoint an adequate number of representatives which will be appointed in

different points and aspects of the WORK in accordance with the terms of the CONTRACT.


Rev 01 17.06.2011 Page 7 of 65

1.3.2 CONTRACTOR

During the execution of the CONTRACT, CONTRACTOR shall be responsible for the management

of technical queries, interface requests, request of deviations (including request for exceptions, non

conformity management, request for waivers) and the processing of CONTRACTOR Query,

COMPANY Instructions , VARIATION ORDER REQUEST and VARIATION ORDER, according to a

process (roles, responsibilities, steps) which will be defined by COMPANY. A specific tool provided

by COMPANY and named SIGEP will be used to implement such processes. CONTRACTOR will

be trained in using the web-based tool, and shall appoint appropriate personnel for such task.

The CONTRACTOR shall submit to COMPANY the proposed organization charts, the

responsibilities and authority levels applicable to CONTRACTOR's personnel for all phases of the

WORK.

CONTRACTOR agrees that the KEY PERSONNEL stated in the organization charts are considered

Project staff and will not be changed out without prior APPROVAL of COMPANY in accordance with

the requirements of the CONTRACT.

CONTRACTOR shall employ sufficient experienced Contract Administration and Cost Control staff

necessary to ensure that full professional, contractual and commercial control is exercised

throughout the execution of the WORK.

2. PLANNING AND SCHEDULING

2.1 GENERAL

CONTRACTOR shall be responsible for preparing and submitting to COMPANY complete and

accurate information on planning, scheduling and WORK progress.

COMPANY has the right to request regular (i.e. daily, weekly, bi-weekly and / or monthly)

submission of reports produced by CONTRACTOR.

2.1.1 Reports Format Submission

The format for planning documentation shall be agreed with COMPANY prior to the date of

signature of the CONTRACT. These are to be in accordance with Annex F.

2.1.2 Measurement and Control System Submission

CONTRACTOR shall provide a comprehensive planning, progress, measurement and control

system for the execution of the CONTRACT.

CONTRACTOR shall ensure that it has its own in-house detailed planning, monitoring and reporting

systems e.g. document register. Sub-task man-hour control system, procurement tracking system,

fabrication shop production schedules, etc, shall have the ability to aggregate progress to the

Schedule activity level.

CONTRACTOR shall set up these systems prior to the date of signature of the CONTRACT to

COMPANY‟S satisfaction in order to comply with progress reporting requirements.

2.1.3 Short Term Plans

At COMPANY‟s request, CONTRACTOR shall support the main planning documents referenced

below with COMPANY APPROVED short-term plans e.g. 3 months, 6 weeks or monthly look-ahead

Gantt charts and planned/actual/forecast manpower/man-hour histograms etc. These short-term

plans should be in sufficient detail to allow areas of achievement and non-achievement to be

identified as WORK progresses.


Rev 01 17.06.2011 Page 8 of 65

2.1.4 Primavera P6 Project Management Software

The mandatory software for producing planning documentation is Primavera P6 Version 7.0.

COMPANY reserve the right to request P6 compressed files (.XER or .XML) to independently verify

CONTRACTOR‟s data.

2.2 PLANNING AND SCHEDULING MASTER TOOL

2.2.1 WORK TIME SCHEDULE

CONTRACTOR shall produce as part of the overall planning requirements a schedule in the form of

a Gantt chart, fully resourced (Manpower, Manhours, Materials, Equipments) to include all WORK to

be performed under the CONTRACT and as identified in the Scope of Work. The WORK TIME

SCHEDULE shall be broken down into principal categories of the WORK by project phase, area,

department, discipline, system and (pre)-commissioning packages, in accordance with the

COMPANY Work Breakdown Structure as shown in Annex A. The level of detail of the WORK TIME

SCHEDULE shall be agreed by the COMPANY REPRESENTATIVE.

The WORK TIME SCHEDULE shall provide a step-by-step illustration of the entire Scope of Work

from the EFFECTIVE DATE through to the COMPLETION DATE, including Engineering,

Procurement, Construction, Testing and (pre)-Commissioning.

The WORK TIME SCHEDULE shall be produced in a logical sequence and the activities shall be

linked with logical relationships (i.e. Finish-to-Start, Finish-to-Finish, Start-to-Start or Start-to-Finish

where appropriate) to avoid open-ends activities and to correctly determine the WORK TIME

SCHEDULE Critical Path. The use of the constraints must be kept to an absolute minimum and only

used when a logical constraint is not applicable.

All major Project Milestones shall be shown on the schedule as a series of key events.

Additional key activities within the WORK TIME SCHEDULE shall be selected for monitoring in

consultation with COMPANY REPRESENTATIVE.

The Level of Schedules shall be as follows:

Level 1 (Milestone Schedule) schedule showing major CONTRACT activities and milestones. This is a project control document and will serve as the basis for development of the other schedules

Level 2 (Summary Schedule) schedule showing a summary of all activities detailed in the Level 3 schedule.

Level 3 (CPM Control Schedule) schedule showing CONTRACT milestones, all key activities with corresponding start / completion dates and durations, and the critical path and float. It will be developed to a level of detail sufficient to ensure effective communication and control. .

Level 4 (Deliverables Schedule) shall include deliverable databases (drawings &

documents register, fabricated items, installed/constructed Items)

Schedules at lower levels of planning shall at all times be consistent with schedules at the higher

levels.

The activities shall include in addition to CONTRACTOR‟s own WORK activities, the activities of its

SUBCONTRACTORS, COMPANY and THIRD PARTY interfaces such as receipt of information

reviews and Approvals (COMPANY and SUBCONTRACTORS data, information etc.), tests delivery

and decision points.

The size and level of detail of the WORK TIME SCHEDULE activities shall be sufficient to

demonstrate and confirm the achievement of Project Milestones and the impact of possible delays

on the schedule.

The size and level of detail of the WORK TIME SCHEDULE activities shall satisfy COMPANY‟S

progress monitoring requirements and co-ordination of interfaces with other parties.

The WORK TIME SCHEDULE activities shall have their duration estimate expressed in working

days.


Rev 01 17.06.2011 Page 9 of 65

In order to facilitate consistent resource aggregation all analyses of the WORK TIME SCHEDULE

should use a “Fixed Duration" option.

The WORK TIME SCHEDULE shall be submitted to COMPANY for APPROVAL according to the

date specified in Annex G.

Once COMPANY has APPROVED the WORK TIME SCHEDULE, CONTRACTOR shall Baseline

the WORK TIME SCHEDULE which shall be used to compare the Performance.

2.2.1.1 Allocation of Activity Man Hours

Each WORK TIME SCHEDULE activity shall include an estimate of the WORK content in terms of

man-hours broken down by classification/roles for each relevant activity. For Activities where man

hours are inapplicable, major quantities are to be included for each relevant activity.

All estimated man-hours shall be entered into the WORK TIME SCHEDULE. The WORK TIME

SCHEDULE shall clearly distinguish between direct and indirect manhours.

2.2.1.2 Changes to Overall Project Schedule

CONTRACTOR shall not change any or part of the baselined WORK TIME SCHEDULE without

prior APPROVAL from COMPANY and/or where applicable, by the issue of a VARIATION pursuant

to the provisions of the CONTRACT.

On receipt of a COMPANY instruction or a SITE instruction. CONTRACTOR shall estimate the man-

hours necessary to do the WORK and allocate all additional man-hours to new activities which shall

then be added to the WORK TIME SCHEDULE in its correct logical sequence. CONTRACTOR shall

then return the result to COMPANY for APPROVAL.

Data records shall be kept and maintained throughout the CONTRACT, and all previous changes

shall be saved as historical data.

2.2.1.3 WORK TIME SCHEDULE Re-Baseline

Where the scope of work has changed significantly from the baseline (+/- 15% of Original Scope),

the WORK TIME SCHEDULE may be re-baselined. A re-baseline will only be carried out when

APPROVAL has been received from the COMPANY REPRESENTATIVE.

2.2.1.4 Schedule Calendars

CONTRACTOR shall develop and agree with COMPANY calendars for the different phases of the

WORK. The calendars shall recognise the differing working conditions for the location where the

WORK is to be executed.

2.2.2 Schedule Coding System

All WORK TIME SCHEDULE activities shall be coded as detailed below:

2.2.2.1 Intelligent Activity ID Numbering System

The Activity Identification (ID) Number shall be up to a maximum of fifteen alphanumeric characters

that shall identify the WBS Element code and/or CTR number where relevant.

2.2.2.2 WORK TIME SCHEDULE Activity Codes Dictionary

The group and sort codes applied to the WORK TIME SCHEDULE activities shall be such as to

enable the WORK TIME SCHEDULE to be divided, filtered and summarised into meaningful

packages.


Rev 01 17.06.2011 Page 10 of 65

2.2.2.3 WBS Codes Dictionary

The WBS coding structure will be agreed by the COMPANY REPRESENTATIVE. The coding

structure shall cover all phases of the Scope of Work, including engineering and procurement

(including testing, certification and delivery on site) phases of the WORK.

The WBS coding structure shall allow for a unique code field for each element, ,to be used by the

COMPANY planning engineer. CONTRACTOR shall adhere to the Work Breakdown Coding

structure (levels 0 to 3) as indicated in Annex A. Levels 4 and 5 will be proposed by the

CONTRACTOR and agreed with the COMPANY. All schedule activities shall be assigned a Work

Breakdown Structure (WBS) code value.

CONTRACTOR shall ensure that all SUBCONTRACTORS utilise the same structure within their

own plans and schedules.

2.3 PLANNING AND SCHEDULING SUB TOOLS

2.3.1 Contract Execution Plan

The CONTRACT EXECUTION PLAN shall encompass all CONTRACTOR's planning

information based on the elements of WORK TIME SCHEDULE

No change shall be made to the CONTRACT EXECUTION PLAN without APPROVAL by the

COMPANY

The CONTRACT EXECUTION PLAN shall be progressively updated throughout the WORK.

The CONTRACTOR shall submit the CONTRACT EXECUTION PLAN for COMPANY

APPROVAL according to the date specified in Annex G.

2.3.2 Planning of resources

2.3.2.1 Progress “S” Curves

CONTRACTOR shall develop for the CONTRACT a graphical representation of the rate of planned

and achieved percentage progress (“Progress „S‟ Curve”). The CONTRACT physical progress shall

be measured against a series of agreed planned Progress 'S' Curves. These Progress 'S' Curves

shall be produced from the aggregation of weighting(s) over agreed periods (either weekly, two

weekly or monthly) drawn from the early dates derived the time limited or resource limited schedule

of the WORK TIME SCHEDULE.

The cumulative value of the aggregated weighting(s) plotted against a time base calculated from the

WORK TIME SCHEDULE shall form the planned Progress 'S' Curve. (refer to Annex C for example)

The Progress 'S' Curve graph shall also include the cumulative planned and actual percentage

progress and forecast tabulated data to a single decimal place.

All Progress 'S' Curves produced after the manpower/weighting analyses have been completed will

require COMPANY‟S APPROVAL and shall not be deviated from without COMPANY‟S prior

APPROVAL.

Typical curves to be submitted to COMPANY shall include separate phases of the CONTRACT (e.g.

Discipline Activities; PO placements; Equipment/bulk Material progress; etc.) and will be agreed

prior to the EFFECTIVE DATE or at such other time as may be specified in the CONTRACT or

agreed between the PARTIES. Such curves could cover for example the overall CONTRACT.

Direct and indirect Scopes of Work must be reported separately.

Where the WORK TIME SCHEDULE has been re-baselined, both the original CONTRACT and the

current baseline Progress 'S' Curve shall be shown on the same report.


Rev 01 17.06.2011 Page 11 of 65

2.3.2.2 Histograms

Any manpower analysis submitted to COMPANY shall be directly extracted from the resource

WORK TIME SCHEDULE and shall indicate the levels of manpower required overall and by

classification at each stage of the WORK to enable the WORK TIME SCHEDULE to be achieved.

The manpower analysis shall be presented in the form of a HISTOGRAM aggregated over agreed

periods (either weekly, monthly or quarterly) showing manning levels throughout the CONTRACT

period taking cognisance of such requirements as holiday rest periods, weather conditions, working

hours per week etc.

The initial submission shall be the „baseline‟ HISTOGRAM derived from the APPROVED WORK

TIME SCHEDULE and indicating the planned manpower required per period to successfully achieve

CONTRACT COMPLETION DATE. (refer to Annex D for example).

2.3.2.3 Man Hours Figures

The periodic and cumulative aggregated manpower/man-hour figures must be shown in tabulated

form on the HISTOGRAM. The „Actual‟ Equivalent Manpower can be derived from the expended

manhours per period divided by the “normal working hours per man per period”. Direct and Indirect

Scopes of Work shall be reported separately.

CONTRACTOR shall maintain an up-to-date record of man-hour expenditure (where applicable) by

CTR and WORK TIME SCHEDULE activity.

Manpower HISTOGRAM reports showing planned, actual and forecast manning levels shall be re-

issued after each update period having performed a time or resource limited schedule of the WORK

TIME SCHEDULE using the earliest estimated dates for aggregation purposes. This will apply to all

analyses throughout the CONTRACT period.

2.3.3 CTRs (Cost, Time, Resource Sheet)

Where specific requirements in the Scope of Work are to be managed by Cost, Time & Resource

sheet (CTRs), these shall be produced by CONTRACTOR for the identified WORK scope in

accordance with the following guidelines:

a. Input data and external interface data must be identified in the CTR

b. The activity deliverable / manhours estimate must be easily identified and monitored.

c. Schedule activities must be easily referred back to its CTR by a suitable coding structure.

d. Schedule timing and cost must be defined in the CTR

A sample CTR sheet is contained in Annex E –- of this document.

2.3.4 Risk Management Plan

The following is an overview of the Risk Management process that will be carried out during

the project.

The Project Risk Management Plan forms an integral part of the overall Contract Execution Plan. Risk management will follow COMPANY requirements for Value Risk Management Risk management activities will be closely monitored and reviewed by the COMPANY Project Risk Management Steering Committee on an ongoing basis to ensure sufficient rigour is applied to the process. The mandatory software for producing Risk Schedule Analysis documentation is Pertmaster Version 8.7, or newer. COMPANY reserve the right to request Pertmaster compressed files to independently verify CONTRACTOR‟s data.


Rev 01 17.06.2011 Page 12 of 65

2.4 TOOLS ADMINISTRATION

2.4.1 Progress Measurement

CONTRACTOR shall submit a progress measurement and methodology procedure, demonstrating

the technique employed to calculate the overall percentage complete and for each type of Activity

deliverable in accordance with this Coordination Procedure.

CONTRACTOR shall provide details of the proposed weighting system used for reporting progress,

for COMPANY APPROVAL. The weighting system shall be used to combine the weightings by

phase, by discipline, Equipment, bulks, etc.

The system shall enable the roll-up of earned progress from the lowest level of planning („Level 3/4‟

document/drawing detail, fabricated items, installed/constructed items) and shall, thereafter, be

collected and aggregated into higher levels.

This shall be an auditable system of progress measurement where incremental physical

benchmarks shall earn an agreed percentage figure for achieving each stage. Regular audits shall

be carried out to verify CONTRACTOR‟s claimed progress.

Project Management, administration or indirect CTRs / WORK packages will not form part of the

physical progress measurement system. However, where directed by COMPANY all expended

man-hours shall be reported against all CTRs / WORK packages where applicable.

VARIATIONS, when APPROVED by COMPANY, shall be incorporated in the plans and schedules

and be included in CONTRACTOR‟s routine reports.

2.4.1.1 Engineering Activities

Planned and actual progress for engineering shall be aggregated from the individual documents by

use of predefined Contract Milestone chains when applicable. Progress measurement shall be an

auditable system where incremental physical benchmarks shall earn agreed percentage figures for

completion of each stage throughout the production of a design document.

2.4.1.2 Procurement Activities

The CONTRACTOR shall report procurement progress including purchasing activities, Equipment

manufacture/delivery and Equipment documentation. CONTRACTORS proposed weighting system

shall be APPROVED by COMPANY and shall combine the weighting by phase, discipline,

Equipment and bulks, etc.

2.4.1.3 Earned Value Analysis

CONTRACTOR shall measure and report progress based upon an analysis of Earned Value, where

for each activity:

Earned Value (EV) = % Complete x Budget at Completion

Earned Value Technique compares planned performance to actual performance. Earned Value shall

be calculated for each main discipline and area of work, and will provide a qualitative assessment of

the progress in common work units. Earned Value Analysis reports shall be produced as required

and in the format specified by the COMPANY.

2.4.1.4 Key Performance Indicators (KPI‟s) and Productivity

Within the Overall Evaluation, COMPANY will consider Productivity Key Performance

Indicators in the CONTRACTOR performance, where applicable and in the format specified by

the COMPANY.

Examples of KPI‟s which may be requested from CONTRACTOR and applied are as follows;

CPI = EV / AC

SPI = EV / Planned Value


Rev 01 17.06.2011 Page 13 of 65

ETC = (BAC – EVc) / CPI

c

EAC = ACc + ((BAC– Ev

c) / CPI

c

Where according to PMBoK Guide (PMI standards):

ACc

= actual costs to date

BAC = budget at completion

EV = earned value

EVc

= cumulative Earned Value

CPIc

= cumulative Cost Performance Index

2.4.2 Progress Reports

Unless advised otherwise by COMPANY, CONTRACTOR shall produce the following regular

progress reports as stipulated in the CONTRACT.

2.4.2.1 Daily, Weekly Reports

The CONTRACTOR shall prepare and produce at the end of each project period (daily,

weekly) separate reports on the status of the WORK for all the phases of the WORK at a

frequency and in a format agreed with COMPANY. The reports shall be issued to COMPANY

according to the date specified in Annex G. The cut-off shall be after completion of normal

working according to the date specified in Annex G.

2.4.2.2 Monthly Reports

The CONTRACTOR shall prepare and produce at the end of each month a monthly report on

the status of the WORK for all phases of the WORK. The reports shall contain details of all

progress and activities up to and including the cut-off date of the month. The reports shall be

issued to COMPANY according to the date specified in Annex G.

The cut-off date of the monthly reports shall be according to the date specified in Annex G.

Prior to the preparation of the report a full analysis of the CONTRACT EXECUTION PLAN

(CEP) is to be performed. The analysis will be based on remaining duration for each activity

and a complete critical path analysis generated.

All progress reports issued to COMPANY shall be in accordance with the format and content

indicated in Annex F. At no time shall CONTRACTOR use an unapproved version for reporting or

special analysis unless so directed by COMPANY.

Such reports shall also incorporate COMPANY specified coding as required.

2.4.2.3 Monthly Activity Progress Report

The WORK TIME SCHEDULE shall be progressed and updated as agreed at the Kick-off meeting.

CONTRACTOR shall provide electronic copies of the WORK TIME SCHEDULE progress updates

to COMPANY.

The progress cut-off date for the monthly updates shall be according to the date specified in

Annex G. However, if this is inconsistent with CONTRACTOR‟s monthly cut-off date, then

CONTRACTOR shall advise COMPANY and a mutually acceptable day may be agreed.

The monthly Contract activity progress report shall be produced according to the date specified in

Annex G.


Rev 01 17.06.2011 Page 14 of 65

All progress reporting to COMPANY shall be against the current APPROVED version of the WORK

TIME SCHEDULE. At no time shall CONTRACTOR use an unapproved version of the WORK TIME

SCHEDULE for reporting or special analysis unless so directed by COMPANY REPRESENTATIVE.

Where CONTRACTOR has peripheral systems e.g. document registers, time sheet systems etc. for

claiming physical progress at document or sub-activity level; these shall be summed up to

CTR/Activity level.

Only the activities that were planned and actually progressed during the reporting period shall be

included in each report.

The reports shall contain as a minimum (but not limited to) the following data for each WORK TIME

SCHEDULE activity:

1. Actual Start

2. Actual Finish

3. Physical percentage progress – planned versus actual achieved and cumulative to date

4. Remaining duration to complete the activity

2.4.2.4 Project Closing Report

Following completion of the project, pertinent data will be collected and assembled into the project

closing report, which will serve as the record of the project.

2.4.2.5 Close Out Schedule

CONTRACTOR shall produce a fully detailed close-out schedule for the Central Office and each

SITE location. The Close-Out Schedule for each SITE shall be submitted for COMPANY'S

APPROVAL according to the date specified in Annex G

CONTRACTOR shall ensure that it retains sufficient CONTRACTOR PERSONNEL to complete the

WORK activities described in the Close-Out Schedule within the times allocated.

2.4.2.6 Man Hours Update

1. Expended and Earned man-hours to date

2. Current budget hours.

3. Forecast man-hours to go based on examples of KPIs‟ provided in Item 2.4.1.5

2.4.2.7 CONTRACT Calendar

CONTRACTOR shall develop a CONTRACT calendar catering for multiple disciplines for use

throughout the duration of the CONTRACT. This calendar shall be divided onto sequentially

numbered CONTRACT weeks and submitted for COMPANY APPROVAL according to the date

specified in Annex G. Monthly reporting cut-off and Issue dates shall be clearly identified on the

Calendar as provided by the COMPANY.

2.4.2.8 Project Trends and Scope Changes

Changes in the number of planned deliverables, rework of design drawings, increases in the Scope

of Work, differences in man-hour or equipment pricing, or changes in project execution methods can

all affect the WORK TIME SCHEDULE and established budgets. Any such change is to be

identified and documented in accordance with the Trends and Scope Change Procedure.

In order to control the progress of the design and the allocation of CONTRACTOR project

resources, any changes in the direction or execution of the design, or Scope of Work is to be done

only at the direction the COMPANY REPRESENTATIVE.

Any changes to the authorized Scope of Work for CONTRACTOR shall be documented by a trend

notice and submitted to COMPANY for APPROVAL. Changes to the approved man-hour / cost


Rev 01 17.06.2011 Page 15 of 65

budget and schedule will be made only after approval of the trend. Project personnel shall not

spend hours working on the changed scope until the trend has been APPROVED by the

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

2.4.2.9 Action Item List

An Action Item List shall be developed and maintained as action items are identified. The Action

Item List shall log any action items identified in minutes of meetings, project memos, conversation

records, or any other document or specific information that is needed. This list is appropriate to list

specific actions or requested information from another project team member, client, vendor or third

party. The Action Item List shall be maintained by a designated individual and issued on a weekly

basis to meeting attendees, persons with action items, and key project personnel.

The Action List shall contain the following information at a minimum:

action item unique identification number

name of person requesting the action

date the request was made

date and time when the requester needs the information

description of the action being requested

name of the person responsible for the resolution

when the responsible person will respond (if different from requested time)

actual date of resolution

summary of resolution


Rev 01 17.06.2011 Page 16 of 65

3. COST CONTROL REPORTING

3.1 PREAMBLE

Cost Reporting provides the COMPANY with important information regarding the status, progress

and outcome of the CONTRACT in monetary terms which is vital for the efficient management of the

CONTRACT. It also forms the basis of data utilised within the COMPANY accounts and hence is

subject to stringent requirements from both an accounting and auditing perspective.

It is not intended that the information provided by CONTRACTOR, in connection with these cost

reporting requirements, will be used for a) the APPROVAL of payments, and b) the identification of

CONTRACTOR‟s margins or profits.

It is the intention that during clarification meetings or at the CONTRACT kick-off meeting these

requirements will be discussed to ensure a mutual understanding and alignment of the definitions

and requirements.

COMPANY shall designate the top level Cost Breakdown Structure tasks that CONTRACTOR‟s

cost structure shall be tied to. CONTRACTOR‟s cost structure shall roll up to the top level CBS

tasks designated by COMPANY.

The minimum information that the CONTRACTOR is required to provide in terms of reports, charts

and procedures is described in detail below.

3.2 COST REPORT

The primary document that CONTRACTOR is to produce to meet these requirements is the Cost

Report. An example Cost Report template is provided in Annex H.

All reports should include the CONTRACT number/reference and where appropriate the COMPANY

supplied WBS code or Business Unit Code.

All cost reports shall be structured in accordance with COMPANY's CBS (Cost Break-down

Structure). Within the accounting systems, cost data is reported using Cost Codes that may or may

not directly related to the WBS, they are commonly known as the Chart of Accounts corresponding

to the CBS. It is very important to relate this CBS to the Project WBS. CBS are the categories listed

within–CONTRACT Compensation Schedule.

The Cost Report shall be in the same currency as the CONTRACT Currency.

The format of the Cost Report must include the following column headings:

Original CONTRACT PRICE

COMPANY APPROVED VARIATIONS

Current CONTRACT price

Pending Items

Forecast CONTRACT PRICE

Previous Periods‟ Forecast CONTRACT PRICE and Movement in Period

Value of Work Done (VoWD) in Period and Cumulative to end of Period

Invoiced cumulative to end of period

Further information regarding these headings is provided under separate sections below.

Through mutual agreement additional columns and headings may be included in the Cost Report if

it is felt they would enhance the report by providing useful performance indicators or measures.

All cost report formats, charts, reporting structures must be submitted for COMPANY APPROVAL

according to the date specified in Annex G.

The Cost Report will cover up to and including the date specified in Annex G.


Rev 01 17.06.2011 Page 17 of 65

The Cost Report must be submitted as part of the Monthly Report to the COMPANY according to

the date specified in Annex G.

All charts and tables included within the cost reporting documents are to be made available in

original „live‟ (including links and formulae) Excel format or equivalent to coincide with the issue of

the Monthly Report. In addition, CONTRACTOR shall provide a copy of the Cost Report complete

with all tables, charts, etc. in Adobe PDF format within 10 days of the reporting cut off date .

3.2.1 Cost Reporting Structure

The subdivision of the CONTRACT PRICE to be used for cost reporting will be agreed at the Kick-

off meeting. The breakdown will largely be dictated by the Scope of Work, type and Compensation

Schedule of the CONTRACT. The cost reporting structure must also address the inclusion of

potential future changes to the CONTRACT.

3.2.2 Monthly Cost Report Meeting

Meetings to review the Cost Report shall be held prior to its issue. The objective of the meetings is

to ensure a common understanding of the information contained with-in the Cost Report.

3.3 CURRENT CONTRACT PRICE

The value of the work that COMPANY has instructed to proceed with via a signed CONTRACT, call

off, APPROVED VARIATION or other contractual document. Work for which the price is yet to be

agreed is not to be included.

Current CONTRACT PRICE = Original CONTRACT PRICE + APPROVED VARIATIONS

3.4 COST FORECAST

CONTRACTOR is responsible for maintaining a current forecast of the CONTRACT PRICE. The

cost forecast provides the COMPANY with information regarding the anticipated final value of the

CONTRACT.

3.4.1 Cost Forecasting Procedure

CONTACTOR shall produce a Cost Forecasting Procedure detailing the methods to be used in

calculating the Cost Forecast and its phasing in time. The forecast is to be broken down and

phased in line with the Cost Reporting Structure. This Procedure will address the treatment of both

approved and unapproved changes, firm and potential changes. The CONTRACTOR shall

incorporate Value of Work Done techniques in its Cost Forecasting Procedure

The Cost Forecasting Procedure must be submitted for COMPANY APPROVAL according to the

date specified in Annex G)

3.4.2 Cost Forecast Supporting Documentation

CONTRACTOR will be required to support his Cost Forecast with additional documentation. This

may include depending on CONTRACT type, but is not limited to:

VARIATION ORDER Registers

CONTRACT Amendment Register

Call Off Register

SITE/COMPANY Instruction Registers

Productivity Calculations

Purchase Order Registers

Day Works Register


Rev 01 17.06.2011 Page 18 of 65

Reimbursable items Register

3.4.3 Cost Forecast Phasing

CONTRACTOR is to provide tables and charts (See Annex I) showing Planned VoWD, actual

VoWD to date and the future anticipated VoWD by month over the duration of the work. The

Phasing is to be provided as per the Cost Reporting Structure and is to be aligned with the current

Schedule.

CONTRACTOR shall prepare the first Cost Forecast Phasing based upon the Original CONTRACT

PRICE and the Original WORK TIME SCHEDULE. Once APPROVED by the COMPANY this

Phasing shall be referred to as the Planned VoWD and shall remain fixed unless authorised

otherwise by COMPANY.

As the work progresses the actual VoWD may vary from the Planned and the Cost Forecast may

change. This will require the Phasing to be revised in line with the actual VoWD to date, the current

schedule, and the Cost Forecast to go.

3.4.4 Forecast Calculation

Forecasts will be made based upon Earned Value techniques, however any changes in the Cost

Forecast must be explained by a narrative state detailing the reasons for the change(s) and is to

accompany the Cost Report.

3.5 VALUE OF WORK DONE

The Value of Work Done (VoWD) can be defined as the amount of work achieved in monetary terms

at a point in time, normally month end.

This is not necessarily equivalent to the invoiced amount since payments may either be made in

advance of the work being done (pre-payment or advance payment) or after work has been

substantially complete (milestone payments or payment on delivery/completion). From an

Accounting perspective the principles of accrual based accounting apply to the calculation of VoWD.

Nor is VoWD necessarily equivalent to the physical progress reported for planning purposes. This

can be due to the use of milestones or weightings that do not reflect the monetary value of the work

or the activities being progressed not being aligned with the Cost Reporting Structure.

CONTRACTOR shall submit Preliminary data for VoWD to COMPANY according to the date

specified in Annex G. This advance data is required to comply with the COMPANY‟s strict

accounting month end close-out procedure.

For VoWD it may be necessary to make estimates for the last days of the month in order to meet

this deadline. This is acceptable as long as the estimates can be demonstrated to be reasonable.

3.5.1 VOWD Procedure

CONTRACTOR shall produce a Value of Work Done Procedure detailing the methods to be used in

calculating the VoWD for each element of the cost reporting structure. The methods used will be

dependent upon the CONTRACT type and the nature of the elements of the reporting structure. It

should address issues such as retention, Value Added Tax, pre-payments, etc. The procedure

should also cover the calculation of VoWD for potential future changes to the CONTRACT.

The Value of Work Done Procedure must be submitted for COMPANY APPROVAL according to the

date specified in Annex G.

3.5.2 VOWD Supporting Documentation

The calculation of VoWD may require additional supporting documentation (eg Manhour Reports,

Engineering Deliverables Register, Purchase Order Registers, Progress Reports,


Rev 01 17.06.2011 Page 19 of 65

SUBCONTRACTOR or Supplier Reports, etc). This documentation shall be available to COMPANY

if so required.

3.5.3 Variance from Planned VOWD

The period and cumulative reported VoWD shall be reconciled with the Planned VoWD as described

in Cost Forecast Phasing paragraph. Significant discrepancies between the planned and actual

VoWD shall be explained via a narrative statement that is to accompany the Cost Report.

3.5.4 Accrual Justification Forms

As part of the COMPANY‟s accounting procedures the CONTRACTOR is required to complete an

Accrual Justification Form at year end. The Accrual is calculated as the VoWD less Invoices paid.

The Accrual can be either zero (in the case where VoWD is equal to Invoices paid), positive (where

payment of Invoices is less than VoWD) or negative (where payments have been made in advance

of the work being done). This requirement forms part of the COMPANY‟s Audit procedures and is to

ensure adequate support for the entering of accruals into the COMPANY‟s account. An example

Year End Accruals Justification Form is included in Annex J.

3.6 INVOICED

The CONTRACTOR is to include the value of the Invoices that have been submitted to the

COMPANY irrespective of whether Invoices have been paid or not.


Rev 01 17.06.2011 Page 20 of 65

4. ADMINISTRATION AND PAYMENT

4.1 GENERAL

This Section describes the outline procedures that shall be used jointly by COMPANY and

CONTRACTOR in the administration and control of the WORK.

Responsibility for all contractual and commercial control appertaining to the CONTRACTOR's

method of working and internal organization rests solely with the CONTRACTOR.

Contractual and commercial interfaces between COMPANY and CONTRACTOR shall be handled

in accordance with the following requirements.

4.2 CONTRACT MANAGEMENT

The CONTRACTOR REPRESENTATIVE shall appoint a Contract Administrator who shall

have overall responsibility for contractual and commercial administration of the CONTRACT.

Working through the reporting structure the Contract Administrator shall provide contractual

and commercial contact with COMPANY‟s necessary management, co-ordination and direction

to the various Contract Administration staff within the various phases of the WORK.

Contract Administrator shall ensure that, the contractual and commercial aspects of the

CONTRACT are administered to the highest professional and ethical standards and that where

the value of the WORK is to be determined by whatever method is deemed appropriate then all

necessary measurement, invoices, time sheets and other substantiating and supporting

documentation shall be properly prepared and submitted to COMPANY for APPROVAL.

CONTRACTOR shall employ sufficient experienced CONTRACT Administration staff

necessary to ensure that full professional, contractual and commercial control is exercised

throughout the execution of the WORK.

Responsibility for all contractual and commercial control appertaining to CONTRACTOR‟S

method of working and internal organization rests solely with the CONTRACTOR.

4.3 KICK-OFF MEETING

Upon CONTRACT award a kick-off meeting shall be held between the CONTRACTOR and

COMPANY. This is arranged by the COMPANY REPRESENTATIVE and should be held as

close to CONTRACT Execution as possible.

The purpose of the Kick-off Meeting is to ensure that:

COMPANY and CONTRACTOR have a common and unambiguous understanding of

the CONTRACT objectives and deliverables, the full Scope of Work and the way in

which the parties will operate;

there is an agreed timetable for regular process meetings and associated deliverables;

COMPANY and CONTRACTOR understand the initial timetable for CONTRACT

execution;

all required coordination procedures are put in place as stated in the CONTRACT;

Prior to the Kick-off Meeting it is essential that all attendees are prepared for the meeting.

The Agenda for the Kick-Off Meeting may include but not be limited to the following items:

Scope of the CONTRACT;

CONTRACT Terms and Conditions, particularly any special CONTRACT provisions.

This can avoid any misunderstandings later on, and allows the CONTRACTOR to gain

a better understanding of the terms prior to performance;


Rev 01 17.06.2011 Page 21 of 65

Technical and reporting requirements of the CONTRACT. It is vital that the

CONTRACTOR and relevant COMPANY personnel are of one mind regarding the

technical requirements;

Applicable CONTRACT administration procedures, including CONTRACT monitoring

and progress measurement;

The rights and obligations of both parties and the Contractor Performance Evaluation

Process;

Potential CONTRACT problem areas and their possible solutions;

Invoicing requirements and payment process. This is important if payment will be made

according to milestones achieved by the CONTRACTOR;

COMPANY personnel should explain the limits of their authority, and obtain the same

information regarding CONTRACTOR personnel;

Which ERP System will be used;

SUBCONTRACTOR Management;

Local content Requirements;

The importance of this Coordination Procedures including the reporting requirements

and reporting calendar.

4.4 COMMUNICATIONS

Except where the CONTRACT specifically states to the contrary all correspondence and

communications under this CONTRACT shall be addressed and directed between CONTRACTOR

REPRESENTATIVE and the COMPANY REPRESENTATIVE and bear a clear reference to:

COMPANY

CONTRACT Title

CONTRACT No.

CONTRACT Revision No.

Subject:

All correspondence shall be date stamped on receipt. The date stamp shall make provision for a

distribution list.

Oral communication of instructions or information in connection with this CONTRACT shall be

confirmed in writing using formal correspondence and until confirmed shall not be binding.

All technical documentation referred to or attached shall have the respective document number and

revision status clearly recorded.

CONTRACTOR shall maintain a numerical register of all incoming and outgoing correspondence.

This register shall also contain the document number and description.

4.4.1 Transmittal Note

All reports, drawings, and other documents transmitted between CONTRACTOR and COMPANY

shall be sent under cover of a transmittal note. The recipient shall sign the transmittal note and

return one copy to the sender.

4.4.2 Correspondence Coding and Register Submission

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

CONTRACTOR shall provide to COMPANY a copy of the correspondence register according

to the date specified in Annex G.


Rev 01 17.06.2011 Page 22 of 65

4.5 MEETINGS

Meetings shall be held for the purpose of keeping all parties fully informed of all aspects of the

WORK. Such meetings may be between COMPANY and CONTRACTOR, CONTRACTOR and

SUBCONTRACTORs, CONTRACTOR and other contractors. The objectives of these meetings may

include discussing technical or financial subjects, reviewing progress, and the status and scheduling

of the WORK.

When deemed necessary by COMPANY, CONTRACTOR's and/or SUBCONTRACTORs shall be

represented at such meetings.

The venue for meetings shall be agreed by COMPANY and CONTRACTOR in advance.

Attendees of COMPANY, CONTRACTOR and other personnel shall be agreed in advance.

Documents requiring preparatory study prior to the meeting shall be issued by both COMPANY

and CONTRACTOR in a timely manner.

The CONTRACTOR shall submit to COMPANY at the end of each week a list of all meetings

the CONTRACTOR intends to hold with THIRD PARTIES during the following week.

COMPANY shall inform CONTRACTOR which meeting COMPANY requires to attend in whole

or in part.

4.5.1 Meetings Minutes

Where meetings are held between COMPANY and CONTRACTOR, COMPANY shall chair such

meetings. Unless otherwise directed by COMPANY, minutes of each meeting shall be prepared by

CONTRACTOR in accordance with COMPANY's standard minute format (refer Annex L) and issued

according to the date specified in Annex G.

The minutes shall be signed by CONTRACTOR and COMPANY acknowledging the minutes as a

true record of that meeting. CONTRACTOR shall maintain a numerical register of minutes of

meetings.

All minutes of meetings will include the following:

(a) CONTRACT title

(b) CONTRACT No.

(c) Subject

(d) Location of meeting

(e) Date of meeting

(f) Time of meeting

(g) List of attendees

(h) Name of minute secretary

(i) A number of paragraph of each item

(j) The date action required and by whom

(k) A list of outstanding actions and like activities upon them since the previous meeting

(l) Date of next meeting (if not recorded elsewhere).

Minutes of all meetings held by CONTRACTOR with THIRD PARTIES shall be available to

COMPANY on request although COMPANY shall not be entitled to receive commercial

information regarding lump sum agreements between CONTRACTOR and

SUBCONTRACTOR(s).


Rev 01 17.06.2011 Page 23 of 65

4.5.2 Meetings Agenda

Agendas for meetings shall be submitted to COMPANY by CONTRACTOR according to the date

specified in Annex G or as may be agreed. COMPANY shall advise CONTRACTOR of changes to

the agenda at least one full working day before the meeting.

Both COMPANY and CONTRACTOR shall ensure, in accordance with their respective

responsibilities, that reports, reproducible documentation, and forward planning and information

relating to agenda items are issued in sufficient time to allow adequate preparatory study and

evaluation as agreed between COMPANY and CONTRACTOR.

In addition to technical meetings, regular discipline meetings, and miscellaneous administrative

meetings, which may be required for the smooth running of the project, CONTRACTOR shall be

responsible for conducting meetings as follows:

4.5.3 Daily, Weekly/bi-weekly Progress Meeting

A weekly or bi-weekly progress meeting will be conducted in the presence of CONTRACTOR‟s

project management and COMPANY‟S personnel at which the following topics shall be discussed:

safety, progress of the WORK, manpower levels, construction/manufacture problems, Quality

Control, design engineering, Materials, planning, cost control, and any other matters affecting the

performance of the WORK.

Items raised in the weekly or bi-weekly progress meeting should be those items which cannot be

resolved at the regular discipline meetings.

4.5.4 Monthly Progress Meeting

A monthly progress meeting will be held in the presence of CONTRACTOR‟s Project Management

and COMPANY personnel to review the Monthly Report according to the date specified in Annex

G or as may be mutually agreed.

Minutes shall be APPROVED by COMPANY REPRESENTATIVE.

4.5.5 Procurement Plan

CONTRACTOR shall submit to COMPANY the Procurement Plan according to the date

specified in Annex G, including details of SUBCONTRACTORs that are to be utilised. The

Procurement Plan shall be regularly updated for the life of the CONTRACT and submitted to

COMPANY as part of CONTRACTOR‟s reporting activities.

4.5.6 Procedures for SUBCONTRACTORs Control and Administration

CONTRACTOR shall submit detailed specific control and administration procedures applicable to its

SUBCONTRACTORs. To assist CONTRACTOR, the Procedures contained in this Document shall

be used as reference only, to enable CONTRACTOR to develop CONTRACTOR‟s procedures.

4.5.7 Subcontracts Documentation

The CONTRACTOR shall invite tenders from SUBCONTRACTORs proposed in its Procurement

Plan. Details of proposed SUBCONTRACTORs shall be submitted for APPROVAL by COMPANY

and shall include full details including evidence of SUBCONTRACTORs assessment (e.g final

report, evaluation matrix), financial status of the proposed SUBCONTRACTOR, if not already

APPROVED by COMPANY and included in the Qualified Vendors List in the CONTRACT.


Rev 01 17.06.2011 Page 24 of 65

4.6 CONTRACTOR PERSONNEL ADMINISTRATION

4.6.1 Project Organisation Chart

CONTRACTOR shall develop a project organisation charts for itself and each SUBCONTRACTOR,

indicating clearly the functional relationships of all departments. COMPANY will make available to

CONTRACTOR its organisation chart at the kick-off meeting.

4.6.2 Key Personnel CVs

All KEY PERSONNEL shall be identified and their CVs provided.

4.6.3 Register of CONTRACTOR PERSONNEL

CONTRACTOR shall maintain an updated manpower register of CONTRACTOR PERSONNEL

assigned to work on this CONTRACT. A copy of this register shall be updated according to the

period specified in Annex G and issued to COMPANY.

4.6.4 Personnel Assignment Authorisation Form (PAAF)

CONTRACTOR shall instigate and use a personnel assignment procedure to monitor and control

mobilisation and demobilisation of any CONTRACTOR PERSONNEL and who are reimbursable

under the provisions of the CONTRACT.

CONTRACTOR shall raise and submit a Personnel Assignment Authorisation Form (PAAF) in the

format specified in Annex M and shall inform COMPANY of the following events:

CONTRACTOR's PERSONNEL mobilisation (All personnel)

CONTRACTOR's PERSONNEL demobilisation (All personnel).

Extension in assignment dates of individual (All personnel).

Reassignment within this CONTRACT (All personnel)

Change in status e.g. category change.

The PAAF shall be APPROVED by CONTRACTOR REPRESENTATIVE and submitted to

COMPANY for APPROVAL according to the date specified in Annex G.

4.6.5 Timesheets

All CONTRACTOR PERSONNEL assigned to the WORK carried out on a reimbursable basis shall

complete weekly timesheets in a format agreed by COMPANY. Worked hours shall be recorded by

Work Breakdown Structure and referenced to any other breakdown requested by COMPANY (e.g.

Asset, Department etc).

COMPANY will not normally approve individual timesheets relating to the WORK. The

CONTRACTOR REPRESENTATIVE shall utilise timesheet data to prepare a manhour report by

discipline / area according to the date specified in Annex G, which shall be submitted to

COMPANY for APPROVAL in hardcopy and/or electronic format, in a format to be agreed by

COMPANY, according to the date specified in Annex G.

However, COMPANY reserves the option to require CONTRACTOR to submit individual timesheets

for COMPANY APPROVAL. In such event, CONTRACTOR's system must ensure that each

employee submits only one timesheet per week to COMPANY.

CONTRACTOR shall maintain a full set of timesheets for CONTRACTOR PERSONNEL at the

same location as COMPANY REPRESENTATIVE. COMPANY shall have unrestricted access to

these documents.

CONTRACTOR shall submit to COMPANY a weekly manhour report including all timesheet

information for CONTRACTOR PERSONNEL. The exact format will be agreed by COMPANY but

will contain as a minimum the following information:


Rev 01 17.06.2011 Page 25 of 65

Personnel No./Name

Week No.

PAAF No.

Project Code

Direct/Indirect hours

Contract Rate Code

CTR Package (if applicable)

Milestone No.

Non-chargeable worked hours

Vacation/Non-attendance hours

CONTRACTOR shall ensure the following in the weekly manhour report:

Hours are a correct record of time spent worked (excluding lunch breaks or any other

breaks not payable by COMPANY).

Only hours worked by persons listed in the register of APPROVED CONTRACTOR

PERSONNEL.

Only hours worked by persons for which there are PAAF's APPROVED by COMPANY.

COMPANY shall review and approve the weekly manhour summary report which shall then be used

as support and form a basis for invoicing.

In the event that the COMPANY does not agree with the report, the CONTRACTOR shall make the

required amendments and resubmit to COMPANY for APPROVAL.

CONTRACTOR will be responsible for adopting and managing a time sheet system at each

location.

4.6.6 Overtime

For WORK carried out on a reimbursable basis CONTRACTOR's PERSONNEL shall not work

overtime without COMPANY's prior written APPROVAL. If CONTRACTOR considers that overtime

is necessary to complete the Scope of Work, CONTRACTOR shall submit an overtime request in

advance according to the date specified in Annex G.

Each overtime request shall contain information regarding:

Names of PERSONNEL

Personnel Identification numbers (related to discipline)

Job Titles

Disciplines

Categories

Reason for overtime

Estimated number of overtime hours per Personnel and according to the date specified in

Annex G.

Week commencing date

The reason for requiring excess overtime must give sufficient information to enable assessment of

justification to be made.

In general no APPROVAL of overtime will be given for reduction of CONTRACTOR PERSONNEL

lunch breaks. CONTRACTOR shall keep a Overtime register.


Rev 01 17.06.2011 Page 26 of 65

4.7 SITE / COMPANY INSTRUCTIONS, VARIATION ORDER REQUESTS AND VARIATIONS

It is a mandatory requirement that CONTRACTOR does not commence any item of WORK without

a formal instruction to proceed, APPROVED by COMPANY.

The issue and control of change within the CONTRACT shall be regulated as detailed in “Contract administration procedure - Operating procedure concerning “VARIATIONS to the contract”. The process related to Variation Order Request, Variation Orders, and Site/Company Instructions, will be defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP.

4.8 CONTRACT CALL-OFFS/WORK ORDERS

Call-Off/Work Order is a formal COMPANY Instruction by which COMPANY authorises

CONTRACTOR to supply services or goods under an established and valid CONTRACT. Call-

Off/Work Order is important as an instrument for controlling CONTRACT execution,

CONTRACT cash flow and for managing CONTRACTOR risk.

Call-Offs/Work Order constitutes a legally binding commitment thus should, as a minimum, fulfil

the following formal requirements:

It should be specific in terms of description of work/goods to be delivered, any

deliverables, total commitment value and delivery time-frame.

Should be raised and issued in accordance with the WORK TIME SCHEDULE and

Terms and & Conditions (T&C) of the CONTRACT.

Should be APPROVED by COMPANY and acknowledged by CONTRACTOR in

accordance with their respective RACIE and Manuals of Authorities (MoA).

It is applicable to all CONTRACTS irrespective of type or size,.

4.9 PAYMENT APPLICATIONS AND PAYMENT

The Project Milestones, fees, lump sums rates and prices, as applicable, listed in the Compensation

Schedule are fixed and are subject only to adjustment during the performance of this CONTRACT

as set out in the Compensation Schedule or elsewhere in this CONTRACT.

4.9.1 Application for Milestone Payment

When CONTRACTOR considers they have satisfied the contractual requirements for completion of

a CONTRACT Milestone, CONTRACTOR shall make a written application to COMPANY for a

Milestone Payment Certificate.

COMPANY will review and upon APPROVAL will issue a Milestone Payment Certificate (refer to

Annex N) provided the criteria for completing the CONTRACT Milestone have been met.

Where WORK related to VARIATIONS has been completed, CONTRACTOR may apply for both a

CONTRACT Milestone and VARIATION when requesting a Milestone Payment Certificate.

4.9.2 Application for Payment

For contracts which are not governed by Milestone criteria but are generally of a reimbursable and

measurable nature, CONTRACTOR shall make monthly applications for payment in the form agreed

during the kick-off meeting. COMPANY shall record the date received and shall proceed to approve

the application. Upon APPROVAL, COMPANY shall issue a Payment Certificate (refer to Annex O)

to CONTRACTOR for the undisputed amount(s). At the same time, COMPANY shall notify

CONTRACTOR in writing of any disputed amount(s) specifying the reasons for the non-Approval. In

the event that a disputed amount cannot be resolved within the time available then CONTRACTOR

may re-apply in the next months pro-forma application.


Rev 01 17.06.2011 Page 27 of 65

4.9.3 Certification and Payment by Company

COMPANY shall confirm its agreement to CONTRACTOR'S application for payment by the issue of

a Milestone Payment Certificate (or by Payment Certificate for reimbursable contracts).

Following certification by COMPANY, CONTRACTOR shall submit a formal invoice for the certified

value to COMPANY for payment. The invoice must contain the following attachments, where

applicable:

The original signed copy of the Milestone Payment Certificate / Payment Certificate

The APPROVED VARIATION ORDER Form

APPROVED timesheets, progress measurement and other supporting documentation in

respect of reimbursable WORK

4.9.4 Format

Invoiced items shall be further separated and described according to:

each of the various categories of charges set forth in the Price Schedule,

applicable values of WORK ORDERs (if applicable),

applicable value(s) of Milestones

CONTRACTOR shall state the retention amount, as a separate item on the Invoice

CONTRACTOR‟s invoice shall record the amount previously invoiced.

applicable value(s) of VARIATIONS

applicable value of dayworks.

Percentage surcharge on cost reimbursable items, if applicable, shall be separately stated on each

invoice.

4.9.5 Invoiced Expenses

Amounts invoiced for expenses (e.g. travel, accommodation and subsistence) shall:

relate to trips/visits which have been APPROVED in advance by the COMPANY

be fully supported with receipts, except where a per diem allowance is applicable

be submitted according to the date specified in Annex G

Any invoiced expenses which do not meet the requirements above will be rejected by COMPANY.

COMPANY will not reimburse CONTRACTOR for alcoholic beverages or entertainment, unless

APPROVED in advance by the COMPANY REPRESENTATIVE.

Each of CONTRACTOR PERSONNEL shall submit his own expenses and settle his own bills.

Charging of other CONTRACTOR PERSONNEL expenses, e.g. paying of restaurant bill for group of

CONTRACTOR‟s PERSONNEL will be regarded as entertainment and, therefore, not reimbursable

under this CONTRACT.

4.9.6 Reimbursable Materials

CONTRACTOR shall not purchase any reimbursable Material unless COMPANY

REPRESENTATIVE has APPROVED in writing copies of the relevant applicable purchase order.

All such purchase orders will give information as to the Vendor‟s name, date of order, purchase

order number, quantity of items to be purchased, unit price, cash discount, clear description of

Materials involved, total value, delivery point and routing. Copies of all purchase orders for

reimbursable materials shall be submitted to COMPANY REPRESENTATIVE at the time of issue.

Upon receipt by CONTRACTOR of any Materials purchased under any such purchase order,

CONTRACTOR's Materials Clerk will use a copy of the purchase order and will prepare a receiving


Rev 01 17.06.2011 Page 28 of 65

report. The receiving report will be attached to the invoice when transmitted to COMPANY in a claim

for reimbursement.

4.9.7 Rebates

CONTRACTOR will declare to COMPANY all price rebates receivable from SUBCONTRACTORS

so that the invoiced cost can be adjusted accordingly.

4.9.8 Final Billing

As soon as practical following final acceptance of each discrete package of WORK, CONTRACTOR

shall render a final billing which summarises all charges and credits applicable to CONTRACTOR or

COMPANY which shows the balance due under this CONTRACT.

4.10 COMPLETION AND CONTRACT CLOSE OUT

The close-out of each SITE location shall occur as soon as possible after the WORK has been

completed. Early close-out is essential to:

minimise administrative expenditure at the CONTRACTOR'S facilities.

complete final CONTRACT accountability while KEY PERSONNEL are still assigned to the

PROJECT.


Rev 01 17.06.2011 Page 29 of 65

5. INTERFACE MANAGEMENT

5.1 INTERFACE MANAGEMENT SYSTEMS

CONTRACTOR shall establish and implement an Interface Management System to review, plan

and co-ordinate the WORK associated with all interfaces between C OMPANY, CONTRACTOR and

other CONTRACTORS.

The Interface Management System shall include the following functional areas of responsibilities:

Identification and recording of all interfaces

Implementation and resolution of all interfaces

Planning and registering of interfaces

RACIE chart indicating interface and responsibilities

COMPANY will prepare, issue and update an overall PROJECT Interface Management Plan.

CONTRACTOR shall be responsible for managing all the interfaces related to his Scope of Work.

5.2 SCOPE

The implementation of the Interface Management Plan will assure that:

Project Management (including Project & Contract Administrators, Planning and Reporting

and Risk Management.

Engineering

Procurement

Site based Management

Operational Interface

All physical interfaces at boundary limits are managed and controlled.

An Interface Register will be developed and will cover the various issues which impact

CONTRACTOR whether they are within or beyond their Scope of Work.

The resolution of all interface issues is planned and implemented in order to maintain cost

and schedule.

It is noted and accepted that the Interface Register will be maintained and monitored by the

respective Departments at a senior level from COMPANY / CONTRACTOR alike. However the

Register will remain under the custodianship of a nominated COMPANY employee.

To implement the Interface Management Plan CONTRACTOR shall:

Ensure that each WORK package has clearly defined scope(s) and responsibilities, and

that no area of scope(s) are unassigned.

Identify the specific interface issues including: management, notifications, schedule,

engineering definition, third party approval‟s etc

Develop a CONTRACTOR Interface Register (using proven software) of interfaces with the

various parties and assign responsibilities for management of the issues.

Identify and report progress, concerns, actions to resolve problems and any impact to other

areas of the development.

Identify and implement any other activity that could reasonably be expected to avoid or

overcome interface issues in a similar project in this environment.

Ensure each interface entry will form part of an overall plan which will be scheduled with

completion dates.

Regularly monitor and audit the Interface Register.


Rev 01 17.06.2011 Page 30 of 65

Attending as requested by COMPANY any interface meetings, also arrange through

COMPANY, where appropriate, interface meetings with COMPANY‟s other contractors.

Prepare and maintain for the duration of the CONTRACT an Interface Schedule (Terminal

Point (TP) register) of all systems crossing the boundary limits. This schedule shall as a

minimum contain information such as size, orientation, TP number, pressure, temperature,

code, materials etc.

Present summary of interface issues within Monthly Report.

In support the COMPANY will:

Prepare, issue and update an Interface Management Plan.

Verify content, accuracy and progress of CONTRACTOR‟s Interface Register using

audits/reviews on a regular on-going basis.

5.3 CORE INTERFACE ISSUES

There may on occasion be developments in COMPANY planning or policy which will affect all

CONTRACTORS across the PROJECT. Examples could include but are not limited to:

Level 1 schedule and level 2 Milestones

HSE factors

Approval conditions (Iraqi authorities etc.)

Technical standards

These issues will be co-ordinated by COMPANY and advised to all of COMPANY‟s contractors

including CONTRACTOR according to a process that will be defined by the COMPANY and may be

supported by the COMPANY standard tool named SIGEP.


Rev 01 17.06.2011 Page 31 of 65

6. PROCUREMENT, MATERIAL MANAGEMENT AND EQUIPMENT CONTROL

6.1 CONTRACTOR‟S PROCEDURES

The Scope of Work describes in detail the Procurement process for equipment and materials.

The CONTRACTOR shall develop comprehensive procedures including expediting, inspection

and acceptance for COMPANY APPROVAL detailing the Procurement and material control

function of each of the categories of equipment and plant.

CONTRACTOR shall issue the procedures for review according to the date specified in Annex

G.

Material management activities shall include the following functional areas of responsibility:

Material Requirements Planning

Purchasing / Contracts

Expediting and delivery to SITE

Inspection (Quality Control)

Logistics (Traffic Coordination)

Customs Clearance

Site Material Control

CONTRACTOR shall deliver these functional service areas to the WORK by providing competent,

proven and capable CONTRACTOR PERSONNEL in execution of these roles and responsibilities.

6.2 MATERIAL REQUIREMENTS PLANNING

CONTRACTOR shall develop a Material Management Plan that will cover, but not be limited to:

Material Take-Off (MTO) and establishment of Bills of Materials (BOM)

Material Responsibility Matrix

Bulk Material Contingency Quantities

Item Numbering and Coding System

Requisition Preparation

The Allocation/Prioritisation of Materials will be defined by COMPANY.

Prior to implementation, the Material Management Plan must be submitted to COMPANY for

APPROVAL.

It is expected that CONTRACTOR‟s Procurement and Materials representatives shall ensure

compliance with the Material Management Plan.

The Material Management Plan is intended to specify the CONTRACTOR‟s areas of responsibilities

and activities associated with material management responsibilities. However this procedure does

not address SITE material management activities.

This Material Management Plan shall apply to all Equipment and Bulk Materials that are purchased

by CONTRACTOR. The specification of these Bulk Materials and Equipment may have been

provided by a THIRD PARTY contractor. This Plan is typically executed at the CONTRACTOR‟s

engineering and procurement facility.

6.3 PURCHASING / CONTRACTS

Each CONTRACTOR shall procure goods and/or services based on the most economically

advantageous tender using sound commercial strategy and best practice to ensure quality, delivery

and fitness for purpose. The most economically advantageous, technically acceptable tender is

determined by, among other things, acceptable technical solutions, quality and functional


Rev 01 17.06.2011 Page 32 of 65

characteristics, the use of national material and service, delivery dates, cost effectiveness, health,

safety and environmental factors.

CONTRACTOR shall have in place a set of procedures that will assure the accomplishment of the

requirements stated above. CONTRACTOR can use the below attached procedures as a guideline

for the development of its own procedures.

6.4 EXPEDITING

In order to ensure that SUBCONTRACTORS will respect the WORK TIME SCHEDULE/schedules

and deadlines set out in the Procurement and subcontracting contracts, CONTRACTOR shall have

in place a dedicated set of procedures that will discipline its expediting department.

6.5 LOGISTIC SURVEY

In order to assure the optimisation on the movement of goods, CONTRACTOR shall have in place a

dedicated set of procedures.

This procedure is intended to describe the activities and methods for performing a logistics survey.

Logistics surveys are required in order to determine the most appropriate method of moving goods

from the point of origin to the point of use, so as to deliver an efficient cost effective supply route.

The survey must assess whether the current infrastructure is adequate to support the intended use

of the route and address resource availability along the supply chain.

6.6 SITE MATERIAL CONTROL

In order to assure SITE control management, CONTRACTOR shall have in place a dedicated set of

procedures.

This procedure specifies the areas of responsibilities and activities associated with the execution of

SITE Material Control.

The scope of this procedure shall apply to all Project Equipment, Bulk Materials and rental

Equipment. These Materials and Equipment may have been provided by a THIRD PARTY

contractor. The scope of this procedure shall also define document and data management in the

SITE Material Control process. This procedure is typically executed at the jobsite or fabrication

facility.


Rev 01 17.06.2011 Page 33 of 65

7. ENGINEERING

7.1 DESIGN ACTIVITY PLAN

The CONTRACTOR shall define a system which ensures that the design requirements stated

in the COMPANY‟S specifications, CONTRACT, APPLICABLE LAW, Provisions, and

Standards and anything further defined within this CONTRACT are correctly accounted for in

any/all technical specifications, calculation reports, drawings and in any other document which

must be issued.

Design activities shall be carried out and documented according to the following main stages:

i) Identification and control of documents containing design input data

ii) Preparation and issue of the Design Activities Plan (DAP)

The DAP shall be coherent with WORK TIME SCHEDULE and WBS

The DAP shall specify the logical sequence of design activities and sub-activities.

The DAP shall be drawn up according to an appropriate procedure which defines the

responsibilities and procedures for its issue.

The DAP shall contain the following minimum information for each activity:

i) Identification of the parts and items which shall be designed

ii) Identification of documents containing input data for the start of design activities

iii) Identification of all documents which shall be issued, stating the responsibilities and relative

interfaces, highlighting subsequent critical documents issue

iv) Identification of all documents (calculation reports, drawings, etc.), which shall be submitted

for independent review.

v) Preparation and issue of the CONTRACT Document List

vi) Development of design activities according to defined quality levels

vii) Application of appropriate procedures for the development of each activity

viii) Check of documents to ensure a control of the interfaces before final issue.

ix) Independent review of CONTRACT documents by qualified personnel not directly involved

in design activities, or another CONTRACT control method.

7.2 DESIGN CONTROL

CONTRACTOR shall establish and implement a system to control engineering activities in order to

ensure achievement of a satisfactory level of quality and compliance with all APPLICABLE LAW and

contractual requirements.

CONTRACTOR's engineering control activities shall include as a minimum, but not be limited to, the

following:

Implementation of an agreed system for (internal) discipline checking, including the use of

check lists where appropriate, to substantiate compliance with statutory requirements,

industrial standards, COMPANY and CONTRACTOR applicable specifications and

standards, contractual requirements, etc. Discipline checks shall be documented and

traceable.

Regular and systematic reviews of the technical content of the design at dedicated, multi-

disciplinary meetings, and report potential problems. Such internal design review meetings

are to be fully documented.

A systematic record, for each revision of all documents and SUBCONTRACTOR

information, showing the originator, checker, name of CONTRACTOR and CONTRACTOR

APPROVAL signature, and where required COMPANY APPROVAL, and incorporating

comments, if any, arising during the checking and APPROVAL processes.


Rev 01 17.06.2011 Page 34 of 65

Assurance that all documentation and data is accurate, correct, complete, consistent, clear

and unambiguous. Assurance that there is no conflict between documents.

Assurance that all documents and data meet the specified COMPANY requirements for

presentation, format and quality.

7.3 ENGINEERING EXECUTION PLAN

CONTRACTOR shall develop an Engineering Execution Plan and shall maintain and execute

design in accordance with it. The purpose of this plan is to set out the overall strategy for

CONTRACTOR design together with the procedures, processes, WORK methods and computer

systems to be used. It will form the basis of the CONTRACTOR‟s control of design.

Elements of the Engineering Execution Plan will include (but not limited to):

Design References (inc Codes and Standards)

Design and Engineering Processes, Systems and WORK processes

Engineering Organisation, including Roles and Responsibilities

Engineering Schedule Milestones

Safety in Design Approach

Design Quality Assurance, Verification and Checking Procedures

Engineering Computer Systems Selection and WORK Practices

3D Modelling Control and WORK Practices

Document (inc Drawing) and Data Conversions (inc numbering systems and formats)

Design Deliverables Listings

7.4 ENGINEERING CHANGE CONTROL

CONTRACTOR shall establish and implement an engineering change control system, which shall

be integrated with other CONTRACT control systems.

The objectives of the change control system are as follows:

To control the effects of engineering change proposals on schedules and on costs.

To control changes to the engineering specifications deriving from any source (inadequacy,

inaccuracy, addition, deletion, revision, etc.) and to measure the effects.

To ensure that all engineering aspects (including operability, reliability, safety, certification,

interface, weight, maintainability, etc.) of a proposed change are fully considered by

discipline lead engineers before a change is APPROVED. The process of Engineering

Change Control will be defined by the COMPANY and may be supported by the COMPANY

standard tool named SIGEP.

7.5 ENGINEERING INTERFACE CONTROL

The CONTRACTOR shall ensure that all Engineering activities are carried out taking into

account and in compliance with all the applicable interfaces.

The CONTRACTOR'S Interface Control activities shall include as a minimum but not be limited

to, the following:

i) To co-ordinate all disciplines involved in the design execution and to identify all

technical interfaces.


Rev 01 17.06.2011 Page 35 of 65

ii) To establish joint responsibility for the development of interfaces and their agreement

with the interfacing parties.

iii) To regularly and systematically review technical interfaces at dedicated, multi-disciplinary

meetings and to report potential problems.

iv) To document all agreed technical interfaces as the basis for their control.

v) To arrange correct distribution of interface control documents, and ensure that agreed

interfaces are considered in design validation, review and revision activities.

vi) To implement a system of control over changes to agreed technical interfaces.

vii) To evaluate all change proposals for technical interface impact in association with the

discipline(s) concerned, and to compile interface impact evaluation reports for relevant change

proposals. To subsequently monitor APPROVED changes and incorporate the results into the

interface control documents where necessary. The process of Engineering Interface Control

will be defined by the COMPANY and may be supported by the COMPANY standard tool

named SIGEP.

viii) To incorporate Vendor interfaces into the control system.

7.6 CONTRACTOR‟S INTERNAL ENGINEERING REVIEW

This section relates to CONTRACTOR‟s internal independent verification of design.

CONTRACTOR shall establish and implement an integrity management system, which shall be

integrated with the design control activities and shall provide a suitable and sufficient level of

integrity of all CONTRACTOR‟s deliverables.

The basic objective of a review programme is to provide assurance to COMPANY and

CONTRACTOR'S management, by formalised documentation, that the engineering satisfies the

Project design and technical integrity requirements.

When conducting an engineering review CONTRACTOR shall follow and comply with the following

requirements:

CONTRACTOR shall identify the schedule of the engineering review programme and

incorporate it in the Quality Plan.

CONTRACTOR shall assign to competent personnel, independent of the engineering

function which produced the WORK, the responsibility of reviewing the engineering.

o The engineering review shall be conducted by a review board of competent

engineers, each with a competency at least equal to that of the designer in his own

technical speciality. The presence of a representative from the designer and / or

external specialists may be required.

o Members of the engineering board shall be identified by CONTRACTOR at the

beginning of the review programme and made available for this function whenever

necessary throughout the Project engineering phase.

The engineering review process shall cover:

o Internal design integrity of both in-house work and deliverables as well as

SUBCONTRACTORS work and deliverables.

o Internal technical integrity of both in-house work and deliverables as well as

SUBCONTRACTORS work and deliverables.

Detailed objectives of the review are:

o To ensure that engineering outputs meet the input requirements and comply with

all regulations, codes, standards and other applicable CONTRACT requirements.


Rev 01 17.06.2011 Page 36 of 65

o To ensure the adequacy of established technical and functional features (chosen

Materials, adopted processes, technical solutions for operating conditions and

maintenance operations, etc.).

o To ensure the correct setting and execution of calculations, drawings, etc.

o To identify problems of Fabrication, Testing, Installation, Pipelines and Pre-

Commissioning and equipment / Material Procurement.

o To consider the effects on performance of proposed configuration changes to

evaluate the adequacy of the specifications to meet the intended operational use.

All steps of the engineering review process shall be adequately documented by

CONTRACTOR and all identified non-compliances amended.

CONTRACTOR shall report to COMPANY results of the above audit and review.

COMPANY may also carry out THIRD PARTY reviews of design integrity as set out in the design

management procedures.

7.7 SOFTWARE VALIDATION, VERIFICATION AND TESTING

Assuming that:

Validation means the certification of the correctness of the software with respect to its

needs and requirements.

Verification means the demonstration of consistency, completeness and correctness of the

software at each stage of its lifecycle.

Testing means the examination of the software current behaviour by means of sample runs.

CONTRACTOR shall ensure that:

All software used in the WORK have been properly tested, Verified and Validated before

use.

The Testing, Verification and Validation status of the software used in the WORK shall be

known, documented and properly recorded.

The CONTRACTOR function(s) responsible for the development, testing and maintenance

of the same, are clearly identified.

COMPANY reserves the right to request that tests are carried out on any software used or proposed

to be used in the WORK, if reasonable doubt exists on its status of Verification of its performances,

or if records of Verification and Testing are not available. These Tests and Verifications shall be

carried out at CONTRACTOR'S sole expense.

7.8 DOCUMENT REVIEW

All the documentation (specifications, drawings procedures etc.) required for engineering,

procurement, fabrication, integration tests, pre-commissioning, commissioning, installation and

operation of the system/equipment whether prepared by CONTRACTOR or by its

SUBCONTRACTORS, shall be submitted to COMPANY in an electronic format.

Drawings, specifications and data submitted to COMPANY for review shall be accompanied by

calculations or other information sufficient to explain in its entirety the relevant structure, Equipment

or system and its intended manner of use. All terms used shall be clearly defined along with

justification for all assumptions made. A summary of results and interpretation of computer outputs

shall be included.

The sequence of submittal of all drawings, specifications and data shall be such that all information

necessary for reviewing a particular submittal is available to COMPANY when the documents are

received.

COMPANY'S review will not constitute APPROVAL of design details, calculations, analyses, test

methods, certificates, procedures or Materials developed by CONTRACTOR or in any way relieve


Rev 01 17.06.2011 Page 37 of 65

CONTRACTOR from full compliance with the CONTRACT. All risks of error are assumed by

CONTRACTOR, and COMPANY shall have no responsibility therefore.

7.9 NON-CONFORMANCE

If drawings, specifications or data show variations from the CONTRACT requirements,

CONTRACTOR shall identify and describe such variations according to a process that will be

defined by the COMPANY and may be supported by the COMPANY standard tool named SIGEP. If

CONTRACTOR fails to identify such variations, he shall not be relieved of the responsibility for

executing the WORK in accordance with the CONTRACT, even though such drawings have been

reviewed by COMPANY.

7.10 TECHNICAL QUERY PROCEDURE.

Requests for clarification or guidance of all technical details contained within COMPANY‟s Project

documents, drawings and procedures shall be formally presented by CONTRACTOR to COMPANY

as a Technical Query (TQ) , according to a process that will be defined by the COMPANY and may

be supported by the COMPANY standard tool named SIGEP.

7.11 NAMING AND CODING OF ENGINEERING OBJECTS

CONTRACTOR will utilise the COMPANY Document, Bulk and Item Coding structures when

communicating with the COMPANY. CONTRACTOR and its SUBCONTRACTORS shall adopt the

COMPANY Material coding systems for internal use within their systems.

The COMPANY Material coding will be the identifiers used for each line of Material Take Off lists

and Equipment Lists. The Material Take Off Lists and Equipment Lists will allow to identify the

related purchase order and document.

The consistent use of the coding systems is key to enabling COMPANY to successfully manage the

execution of the project.

7.12 CAD MANAGEMENT

CONTRACTOR shall issue all the native files.


Rev 01 17.06.2011 Page 38 of 65

8. DOCUMENT CONTROL

8.1 GENERAL

A formal system shall be established and maintained by means of approved procedures by

CONTRACTOR to control the issue, modification, distribution and filing of all documents

produced for the WORKS. The system shall ensure that:

All documents are uniquely identified;

All documents are produced and updated in a controlled and orderly manner; all

documents are verified and approved, as required;

Only the correct (latest) revisions of the documents are available when and where the

related activity is carried out;

All modifications are made in a controlled and documented manner;

All documents provided by CONTRACTOR, SUB-CONTRACTORS and suppliers are

produced according to the requirements set out by COMPANY;

All documents are properly distributed and securely filed and maintained;

All documents are available to COMPANY, throughout the duration of the CONTRACT

The system shall be divided into sections: Management, Technical, Health and Safety,

Environment, Radiation, Vendors, SUBCONTRACTORs, etc.

8.2 SUB-CONTRACTORS AND SUPPLIERS DOCUMENTATION

CONTRACTOR shall be responsible for the quality and contents of it‟s SUBCONTRACTORS

and suppliers documents and to ensure that they satisfy all requirements and specifications set

by COMPANY.

8.3 DOCUMENT ADMINISTRATION

8.3.1 Central Document Control (CDC)

CONTRACTOR shall establish a dedicated central function/unit (CDC), responsible for the

administration of all WORK related documentation. This function shall control and manage all

documentation activities and build and maintain a 'central file' for all documentation produced

in connection with the WORK.

8.3.2 Computerized Database

CONTRACTOR shall establish a dedicated computerized Database for document control

purposes.

The Database used throughout the CONTRACT by all CONTRACTOR‟s functions, shall fulfil

all of COMPANY‟S requirements for I.T. Electronic Data Management.

The system shall allow for the transfer of information to and from both the central control unit

and any peripheral control units; and the automatic updating of the central Database on a

regular basis (at least once a week), to incorporate the latest peripheral data.

CONTRACTOR shall identify and submit to COMPANY, for APPROVAL, the scope of work of

the Database which shall include, as a minimum, identification and control of the following:

Document number

Description (title) document size

Module and system references

Present revision (status and date)


Rev 01 17.06.2011 Page 39 of 65

Document past history (status, dates and reasons for change) document scheduled

issues (revisions and forecast dates) existence of holds and PARTIES/functions

responsible for release

APPROVAL status (THIRD PARTY, COMPANY, CONTRACTOR) and history

Comments/scratch pad facility

Document distribution

In addition, the computerized Document Register system shall allow to track documents

movements between CONTRACTOR and COMPANY, within CONTRACTOR‟S organization

for internal review, and between CONTRACTOR and others (THIRD PARTIES, etc.).

The system established by CONTRACTOR, shall allow the issue of up-to-date status reports

tailored to show only the information requested by the functions receiving the reports.

Advanced search/sorting and reporting facilities shall be part of the software used.

COMPANY shall be allowed, on a local basis, free access to the central or any peripheral

Database and use of any searching/sorting or reporting facility of the system.

8.3.3 Document Control and Distribution

'CDC' shall be responsible for the overall control of the documentation produced by or on

behalf of the CONTRACTOR and the timely distribution to all concerned parties, both internal

and external to the CONTRACTOR organisation.

'CDC' shall also be responsible for the circulation of the documentation requiring interface

review or approval (both internal and external to CONTRACTOR‟s organisation).

'CDC' will be responsible for any expediting required to complete review or approval cycles.

'Overdue documentation' reports shall be issued and made available to any party involved,

within five working days of review/approval expiry time.

'CDC' shall verify, before any document is released for fabrication purposes, that all internal

and external applicable approvals have been given.

8.3.4 Interfaces

CONTRACTOR shall ensure that all supplier and design information between design functions,

fabrication sites and offshore sites, is recorded on the appropriate documentation.

8.3.5 Document Transmission

CONTRACTOR shall transmit all documentation under cover of sequentially numbered and

dated transmittals. CONTRACTOR shall group documents by purpose, module, type and

discipline, to facilitate processing by all parties involved.

Documentation delivery shall be within normal working hours. Transmittals shall be checked on

receipt to ensure that all listed documents are present and are the correct issue/revision.

Replacements will be requested for any incorrect or incomplete attachments.

A copy of each transmittal received shall be signed/dated and returned immediately to the

originator as acknowledgement of receipt.

8.3.6 Document Filing and Retrieval

Peripheral files shall be established and maintained by the CONTRACTOR for the entire

duration of the CONTRACT at each working location.

A central file shall be established and maintained by 'CDC', to collate all the documents

produced by or on behalf of the CONTRACTOR. This file shall facilitate retrieval to any revision

of any document produced.


Rev 01 17.06.2011 Page 40 of 65

CONTRACTOR shall be responsible for maintaining a complete historical file (all revisions,

comments etc.) for all engineering and fabrication documents developed and issued during the

CONTRACT. COMPANY shall be allowed access to this file.

8.3.7 Document Status Reporting

CONTRACTOR shall regularly issue document registers to COMPANY and circulate them

within his own organisation. Document registers issued to COMPANY will have formats and

contents acceptable to COMPANY. Annotation of alterations since the previous register issue

(typically a flag in the right or left margin) shall be shown in a new issue of the document.

The periodic standard issue for document registers shall be at least weekly until such time that

the number of changes in the register no longer warrants the frequency of issue. At such a

time, the CONTRACTOR shall request APPROVAL of COMPANY to a lengthening of the

period between issues.

The first official issue of a complete document register, broken down by module, document

type and discipline shall be submitted to COMPANY according to the date specified in Annex

G.

8.3.8 Document Numbering

All documents produced by the CONTRACTOR, his SUBCONTRACTORS and suppliers shall

be numbered in accordance with COMPANY Procedure.

CONTRACTOR shall ensure that the documents produced by him, his SUBCONTRACTORS

and suppliers are numbered in a proper, rational and orderly manner.

'CDC' will co-ordinate allocation of numbers, for this purpose. The numbers of cancelled,

deleted and superseded documentation shall remain on the Database (and registers) and shall

not be re-used unless the cancellation or deletion decision is reversed.

8.4 DOCUMENT VERIFICATION AND APPROVAL BY CONTRACTOR

CONTRACTOR shall retain an auditable system to verify and approve its documents and those

issued by SUBCONTRACTORs and suppliers.

All documents produced by CONTRACTOR shall be submitted for internal review, to verify

compliance with the CONTRACT requirements, Statutory requirements, good engineering

practices and approved for adequacy by authorized personnel. The review cycle shall include

at least the document originator(s) and the individual responsible for the part of WORK the

documents refer to (Discipline Lead Engineer). The approval signature shall be by a third

authorized person (Engineering Manager).

All documents produced by SUBCONTRACTORS and suppliers shall undergo the same

review/approval cycle within the SUBCONTRACTOR or supplier organization. In addition the

documents shall be reviewed and approved by qualified and authorized personnel in the

CONTRACTOR organization.

Each engineering document shall be reviewed by an autonomous function within the

CONTRACTOR‟S organization, in order to ascertain adequacy of design.

All fabrication drawings shall undergo a review/approval cycle and then be reviewed for

compliance with the AFC design documents by qualified and authorized personnel within the

originating design company.

Verification and approval of each document shall be documented by signatures on the

document itself.

CONTRACTOR shall ensure that drawings are reviewed by the appropriate discipline

engineers and that their comments are included in the documents sent to

SUBCONTRACTORs, suppliers and other functions in CONTRACTOR‟s organization.


Rev 01 17.06.2011 Page 41 of 65

A 'three tier' review and approval system is envisaged for CONTRACTOR‟s,

SUBCONTRACTORs and suppliers' drawings:

'Rejected' - Affected work must not proceed. Drawings shall be modified and re-

submitted.

'approved on Condition' - Affected work may proceed whilst the documents are being

modified and re-submitted.

'approved' - Affected work may proceed.

CONTRACTOR shall liaise with SUBCONTRACTORS, suppliers, COMPANY and any THIRD

PARTIES to reach the final review level.

8.5 DOCUMENT VERIFICATION AND APPROVAL BY COMPANY

COMPANY shall review and approve documents at design stage (AFD), at construction stage

(AFC), at fabrication stage and at As-Built stage. This will necessitate the COMPANY seeing

the documents and being able to comment on them prior to their achieving this status.

COMPANY shall approve technical documents issued by CONTRACTOR in support of

purchase orders and the procedures and practices produced by CONTRACTOR.

COMPANY will identify on the first official submission of the relevant document register the

documents which require COMPANY APPROVAL. COMPANY may revise his requirements

during the CONTRACT period and CONTRACTOR shall comply with any such revised

requirements.

All documents submitted to COMPANY for APPROVAL shall be complete and duly signed for

verification and approval by CONTRACTOR. They, as far as CONTRACTOR is concerned,

shall be final. If 'holds' exist they shall be clearly identified on the document. All documents

shall be submitted in complete packages and self supporting to allow a timely and effective

review.

CONTRACTOR shall allow for COMPANY‟S review time when scheduling the CONTRACT

activities so that no delay results to the WORK as a consequence of this activity. COMPANY‟S

review/approval times are to be accounted for in accordance with the dates/times specified in

Annex G.

For documentation requiring COMPANY APPROVAL, CONTRACTOR shall submit to

COMPANY, the original plus COMPANY‟S comment print/copy.

COMPANY will respond to CONTRACTOR using the 'three tier' review and approval system

described in the previous paragraph.

CONTRACTOR shall incorporate all comments offered by COMPANY and re-submit the

document if previously 'rejected' or 'approved on condition'.

CONTRACTOR shall issue documentation for APPROVAL in sufficient time to allow

COMPANY the designated review period and to allow CONTRACTOR time for discussion and

incorporation of any comment prior to final issue. Rejection of a document, based on non

compliance with the CONTRACT or Statutory requirements shall not be a reason for delays in

the WORK TIME SCHEDULE or extra costs.

The submission of any document by CONTRACTOR and the provision of any

comment/approval thereto by COMPANY (or other THIRD PARTIES), shall in no way be

construed as to relieve CONTRACTOR of any obligations, liabilities or responsibilities under

the CONTRACT.

In order to assist COMPANY with its review requirements, CONTRACTOR shall keep

COMPANY informed of the intended issue dates for documentation. The submission of large

batches of documentation at infrequent, unplanned intervals shall be avoided. CONTRACTOR

is encouraged to submit preliminary draft issues for informal comment where such may serve

useful purposes, prior to formal issue.


Rev 01 17.06.2011 Page 42 of 65

Regardless of the actual status of the documentation (AFC, previously commented upon,

issued for information, etc.) or whether fabrication work has commenced, COMPANY shall

have the right to raise additional comments and CONTRACTOR is obliged to incorporate such

comments (at no additional cost to COMPANY), into the WORK should they be required by the

CONTRACT.

8.6 DOCUMENT SUBMISSION TO COMPANY

In addition to the CONTRACTOR and Suppliers Documentation and Manuals, CONTRACTOR

is to provide copies of all CONTRACT documentation (i.e. Supplier, Engineering, Construction,

etc.), either APPROVED by COMPANY or approved by CONTRACTOR or not requiring

COMPANY APPROVAL, at all revisions as follows:

For Review:

Drawings : 1 reproducible and 5 full size prints

Supplier Documents (not manuals) : 2 copies

Multi-page Documents (inc. Procedures) : 5 copies

Manuals/Supplier Manuals: : 1 copy

For Approval:

The original plus COMPANY‟S comment print/copy.

For Information/Following Approval:

Drawings : 2 full size prints and 3 A3 copies

Supplier Documents (not manuals) : 2 copies

Multi-page Documents (inc. Procedures) : 2copies

Manuals/Supplier Manuals: : 3 copy

CONTRACTOR shall provide the above documentation to COMPANY at location(s) to be

specified following CONTRACT award.

COMPANY shall receive documentation issued for 'information only according to the date

specified in Annex G. CONTRACTOR shall ensure that such documentation is reviewed by the

applicable disciplines prior to submittal to COMPANY. The said documentation shall bear

CONTRACTOR‟S stamp/signature of approval as evidence of such coordinated review.

8.7 GENERAL DOCUMENTATION REQUIREMENTS

8.7.1 Quality Requirements

The preparation of documents shall comply with the requirements provided by the COMPANY.

Multi-page documents shall be produced on Microsoft word for windows, and shall be capable

of clear reproduction, microfilming and electronic storage.

Single-page drawings shall be capable of clear photographic, microfilming and electronic

reduction to A3 size.

8.7.2 Size

CONTRACTOR shall propose the size of documents to be produced, and obtain COMPANY

written APPROVAL prior to commencement of the Scope of Work.


Rev 01 17.06.2011 Page 43 of 65

8.7.3 Formats

COMPANY shall provide a standard front sheet pro-forma to be used for specifications and

other multi-page documents. CONTRACTOR shall propose the format of all other documents

to be produced and obtain COMPANY written APPROVAL prior to commencement of the

Scope of Work.

The format of documents shall be unique and homogeneous throughout the duration of the

CONTRACT, and used for all documents produced by or on behalf of the CONTRACTOR.

8.7.4 Information

CONTRACTOR shall propose the scope of information to be entered on documents. Particular

emphasis shall be placed on drawings with regard to data tables, notes, and hold categories.

The scope of information to be entered on documents shall be homogeneous throughout the

CONTRACT.

Each document shall, at all stages of its life, bear an identification of the (internal and external)

cycle it is bound to undergo and a clear indication of those steps which have already been

passed.

8.7.5 Units of Measurement

All documents shall be produced using the unique units of measurement system APPROVED

by COMPANY for the CONTRACT.

8.7.6 Symbols

The symbols used in the drawings shall be in compliance with appropriate specifications and

recognized standards acceptable to COMPANY. The same symbols shall be used throughout

the duration of the CONTRACT.

8.7.7 Revisions

CONTRACTOR shall use revision characters 'PI' to 'P9' for preliminary issues for comment and

'01' through '09' for Design issues of documents. At 'approved for construction' (AFC) level; the

revision character shall be a single alpha character, commencing 'A' through 'Z'. Documents

revised from previous approved levels shall have the affected areas highlighted by 'clouding' or

'side-lining' and the use of a triangle denoting the revision status. Previous revision highlighting

shall be removed at subsequent issues.

8.8 PROJECT COMPLETION DOSSIER

CONTRACTOR shall compile a Project Completion Dossier, the purpose of which is to provide

a record of design, fabrication, certification, installation, pre-commission and commissioning

work scope for all disciplines. This dossier shall form the basis of handover requirements.

8.8.1 Supplier Dossiers

CONTRACTOR shall be responsible to provide complete supplier Dossiers with the content

and format to be agreed with COMPANY.

8.8.2 Records Retention

CONTRACTOR shall be responsible to retain records of work after completion of the WORK in

accordance with the terms of the CONTRACT.


Rev 01 17.06.2011 Page 44 of 65

9. PERMITS, CONSENTS AND CERTIFICATION

9.1 REPRESENTATIVES

According to the date specified in Annex G both COMPANY and CONTRACTOR will nominate

representatives and their deputies to act as liaison officers for all issues related to permitting

and certification.

9.2 REPORTS AND PROGRESS MEETINGS

During the kick-off meeting but according to the date specified in Annex G, CONTRACTOR and COMPANY shall agree:

Frequency and content of specific progress reports and meetings.

Dates for formal audits permitting and certification process. At least one such audit should be planned during the CONTRACT but according to the date specified in Annex G.


Rev 01 17.06.2011 Page 45 of 65

ANNEX A. TYPICAL ACTIVITY WORK BREAKDOWN STRUCTURE

Level 0 Level 1 Level 2 Level 3 Level 4

Project CONTRACT Phase Area Discipline

2 char numeric 1 char alphanumeric 3 char

alphanumeric 2 char numeric

1 Experimental Program

1.01 CONTRACT Description

1.01.A Project Management

1.01.B Engineering

1.01.C Procurement CONTRACTOR CONTRACTOR

1.01.D Offsite Fabrication Codes Codes

1.01.E Construction

1.01.F Pre Commissioning

1.01.G Commissioning Assistance


Rev 01 17.06.2011 Page 46 of 65

ANNEX B. WORK TIME SCHEDULE SAMPLE


Rev 01 17.06.2011 Page 47 of 65

ANNEX C. PROGRESS “S” CURVE


Rev 01 17.06.2011 Page 48 of 65

ANNEX D. MANPOWER HISTOGRAM

KASHAGAN FIELD DEVELOPMENT - EXPERIMENTAL PROGRAM

PROGRESS S CURVE - CONTRACT : .

AREA/DISCIPLINE: .

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Planned (Period)

Actual (Period)

Forecast (Period)

Planned (Cumulative)

Forecast (Cumulative)

Actual (Cumulative)

Planned (Peri od) 0.0% 3.9% 5.8% 3.6% 8.7% 8.1% 12.1% 10.1% 9.2% 13.8% 9.5% 7.6% 5.3% 2.3% 0.0% 0.0%

Actual (Period) 0.0% 6.2% 1.9% 3.9% 6.5%

F orecast (Period) 8.5% 15.1% 9.7% 9.7% 13.6% 9.5% 7.8% 5.2% 2.4% 0.0% 0.0%

Planned (Cumulat ive) 0.0% 3.9% 9.8% 13.3% 22.0% 30.1% 42.2% 52.3% 61.6% 75.4% 84.8% 92.4% 97.7% 100.0% 100.0% 100.0%

F orecast (Cum ulative) 18.5% 27.0% 42.1% 51.8% 61.5% 75.1% 84.5% 92.3% 97.5% 100.0% 100.0% 100.0%

Actual (Cum ulative) 0.0% 6.2% 8.1% 12.0% 18.5%

Aug03 Sep03 Oct03 Nov03 Dec03 Jan04 Feb04 Mar04 Apr04 May04 Jun04 Jul04 Aug04 Sep04 Oct04 Nov04

Progress

Cutoff

Contractor Logo

To indicate format

only

COMPANY LOGO


Rev 01 17.06.2011 Page 49 of 65

ANNEX E. COST, TIME, RESOURCE SHEET (CTR)

HEWETT GAS STORAGE PROJECT TECHNICAL EXPERTISE SUPPORT

Contract No.

COST, TIME, RESOURCE (CTR) ACTIVITY SHEET

SCOPE :

CTR Nº : DISCIPLINE : REV.

CTR TITLE :

SCOPE DESCRIPTION :

INPUT DATA, EXTERNAL INTERFACE DATA, SUBCONTRACTOR DATA :

SPECIALIST I.T. REQUIREMENTS (SOFTWARE ETC):

DELIVERABLES / TASKS : Description Quantity Manhours

Total 0

SCHEDULE : Duration :

Activity Codes : Predecessor Code: Successor Code:

MANHOUR / COST ESTIMATE : ManHours 2004 Rate (€/hr) Total Cost (€)

SUBTOTAL ($)

TOTAL COST OF C.T.R. (€) -

Submitted for approval Approval to proceed

Date

Completion Agreed by : Completion Agreed by :

Date Date


Rev 01 17.06.2011 Page 50 of 65

ANNEX F. REPORTS

DAILY REPORT

The CONTRACTORs Daily Report, produced at the end of each project day, shall report as a

minimum:

- Activity Status: summary of the key data and progress of the day and cumulative

- Weather report Summary

- Work Progress – Main Activities: description of the key activities carried out during

the reported day and the related status

- Work Schedule: list of activities scheduled for the day after

- Key data summary: information about quantities, consumptions, etc.

- Personnel: summary of the personnel involved and man-hours expenditure

- Safety Summary: main events occurred, indexes and prevention activities carried

out

For each contract the above content has to be covered excluding agreed exceptions (where

required by the subject of the contract).


Rev 01 17.06.2011 Page 51 of 65

WEEKLY REPORT

The weekly report shall contain as a minimum the following sections:

- Progress and activities achieved during the previous week.

- Deviations from the planned progress.

- Activities planned for the following weeks.

Foreseen or potential events or risks to the programs and the CONTRACT EXECUTION PLAN

and the corrective action(s) planned including the responsible person(s).

A narrative section on each of the following describing any deviations to the individual

schedules or philosophies or any critical or problem areas:

- COST AND PLANNING

- ENGINEERING ACTIVITIES

- TECHNICAL

- MATERIALS AND EQUIPMENT

- SUBCONTRACTS

- QA/CERTIFICATION

- SAFETY

For each contract the above content has to be covered excluding agreed exceptions (where

required by the subject of the contract).


Rev 01 17.06.2011 Page 52 of 65

MONTHLY REPORT

This Monthly Report must contain the following sections in the following sequence:

1. Executive Summary: Giving a brief summary of the highlights of achievement during the period and the contents of the report.

2. HSE Report: Summarising the month's safety activities completed and what will be worked on in the next month. Including all the HSE performance indicators as applicable to the CONTRACT (e.g monthly total of accidents/incidents is required in terms of lost working days and medical treatment cases).

3. Quality Assurance / Quality Control Activities: With details of any audits performed both internally and by external organisations.

4. Main Report: Subdivided as necessary. Including specific information on the activities of the previous month, indication of Project Milestones achieved and delayed with reasons for any under or over achievement. and information on activities to be undertaken in the next month.

5. Progress & Planning: Including a WORK TIME SCHEDULE and S-curves with explanations for any changes made the previous issue(s). Indication of physical percentage complete planned against actual. The bar chart shall detail activity number, activity description, original duration, remaining duration, percentage complete, early start, early finish, late start, late finish, total float and forecast completion (sorted by Work Package, phase, discipline and scheduled start). A variance report showing all critical activities‟ variance from the WORK TIME SCHEDULE base plan.

6. Manpower Summary: Giving an audited summary of the equivalent manpower planned and used both during the previous month and cumulatively to date. The Manpower Summary shall be accompanied by a graphical representation in the form of Histogram.

7. Manhour Summary: Giving an audited summary of the manhours expended and forecast both during the previous month and cumulatively to date and including manhours Productivity report and Earned Value Analysis (to be agreed as necessary, for Productivity and Earned Value Analysis refer to relevant section within Progress Measurement paragraph). The Manhour Summary shall be accompanied by a graphical representation in the form of Histogram.

8. Procurement & Material Control: Including purchasing status and reporting.

9. Cost Report: Refer to Cost Control Reporting Section below.

10. Status of VARIATIONS: Summary report detailing the status of VARIATIONS /SITE/COMPANY instructions.


Rev 01 17.06.2011 Page 53 of 65

ANNEX G. DELIVERY DATES

DELIVERY DATES FOR DOCUMENTS AND ACTIVITIES

ACTION SECTION

REF. OBLIGATION BY DURATION OR DATE

Procedures submission and approval by

Company 1.1 CONTRACTOR Within 2 weeks of the effective date

WORK TIME SCHEDULE Submission to

Company 2.2.1 CONTRACTOR Not later than 30 days after the EFFECTIVE

DATE

Contract Execution Plan for COMPANY' s

Approval 2.3.1 CONTRACTOR Within 30 days from the effective date of

CONTRACT

Daily, Weekly Reports 2.4.2.1 CONTRACTOR Issue on Tuesdays of the following week. Cut-off: after completion of normal working on

each Friday

Close-Out Schedule for each SITE

submitted for COMPANY'S APPROVAL

2.4.2.5 CONTRACTOR 30 calendar days prior to agreed COMPLETION DATE

Monthly Reports issued to COMPANY 2.4.2.2. CONTRACTOR Within 7 days after the cut-off date Cut-off date: last Friday of each month

Monthly Activity Progress Report 2.4.2.3. CONTRACTOR Within 7 days after the cut-off date Cut-off date: last Friday of each month

Contract Calendar for Company approval 2.4.2.7 CONTRACTOR Within two weeks of the EFFECTIVE DATE

Cost report formats, charts, reporting

structures must be submitted for

COMPANY APPROVAL

3.2 CONTRACTOR Not later than 30 days after the EFFECTIVE DATE

Cost Report covers up to and include 3.2 CONTRACTOR The last day of the month the reporting period

Cost Report submitted as part of

MONTHLY REPORT to Company 3.2 CONTRACTOR Within 5 calendar days after the cut off

Cost Forecasting Procedure submitted to

Company Approval 3.4.1 CONTRACTOR Not later than 30 days after the EFFECTIVE

DATE

Preliminary data for VoWD to COMPANY 3.5 CONTRACTOR The first day of the month following the reporting period

The Value of Work Done Procedure for

Company Approval 3.5.1 CONTRACTOR Not later than 30 days after the EFFECTIVE

DATE

Copy of Correspondence Register to

Company 4.4.2 CONTRACTOR Last Friday of each month

Meetings Minutes 4.5.1 CONTRACTOR Within 3 working days

Agendas for meetings 4.5.2 CONTRACTOR Within 3 working days before meeting

Monthly Progress Meeting 4.5.4 CONTRACTOR

COMPANY Within 3 working days from the issue of

Monthly Report


Rev 01 17.06.2011 Page 54 of 65

Minutes of the monthly progress meeting 4.5.4 CONTRACTOR Not later than 12 noon from the following working day

Procurement Plan submitted to COMPANY 4.5.5 CONTRACTOR Not later than 15 days from effective date

Copy of Register of CONTRACTOR

Personnel to COMPANY 4.6.3 CONTRACTOR Weekly basis

PAAF Approval 4.6.4 CONTRACTOR At least 5 working days prior to the event requested on the PAAF

Timesheets 4.6.5 CONTRACTOR

PERSONNEL Weekly

Weekly manhour report 4.6.5 CONTRACTOR

REPRESENTATIVE Weekly (on the basis of Timesheet prepared

by CONTRACTOR Personnel)

Weekly manhour report approval 4.6.5 COMPANY By Tuesday of each week

Overtime submission 4.6.6 CONTRACTOR No later than Friday

Overtime Request 4.5.6 CONTRACTOR Prior to 9.00 am or after 5.30 pm weekdays or weekends

Invoiced Expenses submission 4.9.5 CONTRACTOR Within one calendar month of the month in which they are incurred

Procurement, Material Management And

Equipment Control Procedure Review 6.1 CONTRACTOR

Within two 2 weeks from CONTRACT Award and following COMPANY comments they

should be issued for Approval within 6 weeks from CONTRACT Award

Document Status Reporting:

Document type and discipline submitted to

COMPANY

8.3.7 CONTRACTOR Within 20 calendar days from award of CONTRACT

Drawings REVIEW 8.5 COMPANY Review/approval times 10 working days

Multi-Page Documents REVIEW 8.5 COMPANY Review/approval times 15 working days

Procedures REVIEW 8.5 COMPANY Review/approval times 20 working days

Documentation issued for information only

to Company 8.6 CONTRACTOR

At least 10 working days prior to commencement of fabrication covered by

such documentation

PERMITS

Representatives to be nominated 9.1

COMPANY

CONTRACTOR Within 4 weeks from the kick-off meeting

Frequency and content of progress reports

and meetings

9.2 COMPANY

CONTRACTOR

Not later than 8 weeks after EFFECTIVE DATE from the kickoff meeting.

Dates for audits permitting and certification

process

At least one such audit should be planned during a CONTRACT but not more than every

6 months


Rev 01 17.06.2011 Page 56 of 65

ANNEX H. COST REPORT TEMPLATE


Rev 01 17.06.2011 Page 57 of 65


Rev 01 17.06.2011 Page 58 of 65

ANNEX I. COST PHASING “S” CURVE

VoWD - Progress Curve

Contract: Title

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Mo

nth

ly V

oW

D k

$

0

20,000

40,000

60,000

80,000

100,000

120,000

Cu

mu

lati

ve V

oW

D k

$

Planned VoWD Monthly 500 1,000 1,400 1,960 2,744 3,842 5,378 5,916 6,508 7,158 7,874 7,087 6,378 5,740 5,166 4,650 4,185 3,766 3,390 3,051 2,135 1,068 320 32 3 0 0

Actual VoWD Monthly 300 600 840 1,176 1,646 2,305 3,227 3,872 4,647 5,576 6,134 6,747 8,097

Forecast VoWD Mothly 8,906 9,352 8,416 7,575 6,817 6,136 5,522 4,970 3,479 2,435 1,705 852 426 213

Planned VoWD Cumulative 500 1,500 2,900 4,860 7,604 11,44 16,82 22,74 29,24 36,40 44,28 51,36 57,74 63,48 68,65 73,30 77,48 81,25 84,64 87,69 89,82 90,89 91,21 91,24 91,25 91,25 91,25

Actual VoWD Cumulative 300 900 1,740 2,916 4,562 6,867 10,09 13,96 18,61 24,19 30,32 37,07 45,16

Forecast VoWD Cumulative 45,16 54,07 63,42 71,84 79,41 86,23 92,36 97,89 102,8 106,3 108,7 110,4 111,3 111,7 111,9

Sep-

04

Oct-

04

Nov-

04

Dec-

04

Jan-

05

Feb-

05

Mar-

05

Apr-

05

May-

05

Jun-

05Jul-05

Aug-

05

Sep-

05

Oct-

05

Nov-

05

Dec-

05

Jan-

06

Feb-

06

Mar-

06

Apr-

06

May-

06

Jun-

06Jul-06

Aug-

06

Sep-

06

Oct-

06

Nov-

06


Rev 01 17.06.2011 Page 60 of 65

ANNEX J. YEAR END ACCRUALS JUSTIFICATION FORM

Justification of Accruals as at 31 Dec 2005

Contractor name:

Business Unit:

Title:

Department:

Cost Engineer:

BU Summary: $'000's

Value Of Work Done

Invoiced Value* * compiled by Finance

Accrual -

Contract No or Object

Code

JDE Doc

Type/NoAccrual Justification / Method of Calculation

$'000's

2005 Accruals :

Sub-total 2005 Accrual - Justified : -

Grand Total Justified : -

Prepared by:

Budget Holder:

Contractor acknowledgment:


Rev 01 17.06.2011 Page 61 of 65

ANNEX K. CORRESPONDENCE CODING

N N N N N N N N / A A / A A / A A / N N N N

(5) Sequential Number

(4) Recipient Code

(3) Originator Code

(2) Type of correspondence

(1) Contract code

Where:

A = Alphabetical

N = Numerical

1. Contract Code A four eight digit number allocated by the CONTRACTs administrators. Default to 0000 for none CONTRACT correspondence.

2. Type of

Correspondence

Two character alphabetical to recognise the type of correspondence. LT (LETTER), MM (MINUTES OF MEETINGS).

In accordance with the Document Numbering Procedure to be provided by COMPANY.

3. The Originator

Code


4. The Recipient

Code


5. The Sequential

Number

Four character numerical that is unique for the CONTRACT number, correspondence type, originator, and recipient.

6.


Rev 01 17.06.2011 Page 62 of 65

ANNEX L. MINUTE OF MEETING FORMAT

MINUTES OF MEETING PROFORMA

Meeting Title:

Between (Company) & (Contractor):

Minutes Taken By:

Date / Time:

Location:

Contract Title:

Signed by (Company) ………………………………..

Signed by Contractor ………………………………..

Attendees:

Distribution:

Name

Position

Name

Position

Item Description Action

1.0

1.1

1.2

Guidelines

Each page shall be initialled by both Operator Contract Representative and Contractor‟s Representative

Both parties are deemed to be appropriately authorised members of the organisations represented

Company

Logo


Rev 01 17.06.2011 Page 63 of 65

ANNEX M. PERSONNEL ASSIGNMENT FORM

Document Number

To: COMPANY

For the attention of:

CONFIRMATION OF ASSIGNMENT LETTER NO.

This assignment shall fall under the terms and conditions of CONTRACT No…... between

…………and .............................dated ....................20...

CONTRACT Amendment No./VARIATION ORDER No.

Name:

Personnel Identification Number: Revision No:

Job Title:

Category:

Permanent/Agency/CONTRACT Staff:

Direct/Indirect:

Hourly Rate:

Start Date:

Duration:

Finish Date:

Location:

Normal WORK Day:

Reporting to:

CV Attached (KEY PERSONNEL):

Submitted: ..................................................

Approved : ..................................................

(COMPANY REPRESENTATIVE/Project Engineer/Other)


Rev 01 17.06.2011 Page 64 of 65

ANNEX N. MILESTONE PAYMENT CERTIFICATE

MILESTONE PAYMENT CERTIFICATE

AGIP KCO Parkview, Great West Road Brentford, Middlesex. TW8 9AA England Date : xx October 2003 EXECUTION CONTRACTOR Contract Number 2003-XXX Milestone

ADDRESS Current Total $ x 1000 Certificate

Contract Value XXX Number

Total Forecast $ x 1000 Milestone

Final Value XXXX No.

$

VALUE TO DATE -ORIGINAL SCOPE (A)

VALUE TO DATE-VARIATIONS (B)

TOTAL WORK VALUE (C)=(A+B) 0

DEDUCT BACKCHARGES (D)

ADJUSTMENTS (E)

RETENTION ( % ) (F)=(C-D-E*5%)

SUB - TOTAL (G)=(C-D-E-F) 0

LESS PREVIOUSLY CERTIFIED (CERT NO. ) (H)

AMOUNT DUE (excluding vat ) (I)=(G-H) 0

COMMENTS :

COMPANY APPROVALS

COMPANY REPRESENTATIVE SIGNED DATE:

CONTRACT HOLDER

SIGNED DATE

KASHAGAN DEVELOPMENT - EXPERIMENTAL PROGRAM


Rev 01 17.06.2011 Page 65 of 65

ANNEX O. PAYMENT CERTIFICATE

PAYMENT CERTIFICATE

AGIP KCO Parkview, Great West Road Brentford, Middlesex. TW8 9AA England Date : xx October 2003 EXECUTION CONTRACTOR Contract Number 2003-XXX Milestone

ADDRESS Current Total $ x 1000 Certificate

Contract Value XXX Number

Total Forecast $ x 1000 Final Value XXXX

$

VALUE TO DATE -ORIGINAL SCOPE (A)

VALUE TO DATE-VARIATIONS (B)

TOTAL WORK VALUE (C)=(A+B) 0

DEDUCT BACKCHARGES (D)

ADJUSTMENTS (E)

RETENTION ( % ) (F)=(C-D-E*5%)

SUB - TOTAL (G)=(C-D-E-F) 0

LESS PREVIOUSLY CERTIFIED (CERT NO. ) (H)

AMOUNT DUE (excluding vat ) (I)=(G-H) 0

COMMENTS :

COMPANY APPROVALS

COMPANY REPRESENTATIVE SIGNED DATE:

CONTRACT HOLDER

SIGNED DATE

KASHAGAN DEVELOPMENT - EXPERIMENTAL PROGRAM