Ccfm-u-00-Tp420 030 r1 Change and Work Order

8/9/2019 Ccfm-u-00-Tp420 030 r1 Change and Work Order

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CHANGE AND WORK ORDER PROCEDURE

LTOYOENGINEERINGCORPORATION

SUCURS LenVENEZUEL

Issued AUG 1 08 Project Document No: CCFM-U-00-TP420/030 Rev.1 Page 1 of 7

~ Revision History ~

Rev. Date Description of Change

0 MAR 15 08 For Preliminary

1 AUG 1 08 For Use


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INDEX

1.0 GENERAL

1.1 Intent

1.2 Definitions

1.3 Scope of Application

2.0 COMPOSITION OF THIS PROCEDURE

2.1 Exhibits, Appendices and Attachments

2.2 Related Procedures

3.0 WVO PROCEDURE

3.1 Work Flow Diagram

3.2 WVO Handling Procedure

4.0 AWO PROCEDURE


4.2 AWO Handling Practice

5.0 DWO PROCEDURE


ATTACHMENT-1 WORK VARIATION ORDER FLOW DIAGRAM

ATTACHMENT-2 ADDITIONAL WORK ORDER FLOW DIAGRAM

ATTACHMENT-3 DAYWORK ORDER FLOW DIAGRAM

ATTACHMENT-4 STANDARD TIME SHEET

ATTACHMENT-5 WORK VARIATION ORDER

ATTACHMENT-6 ADDITIONAL WORK ORDER

ATTACHMENT-7 DAYWORK ORDER


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1.0 GENERAL

1.1 INTENT

Under the terms and conditions of TOYO CONTRACTs, TOYO has the absolute right

at any time, to place with the CONTRACTOR, Work Orders which refer to Work

Variation Orders (WVO), Additional Work Orders (AWO), and Daywork Orders

(DWO), and the CONTRACTOR shall be obliged to carry out all works and services

described therein. In order to adequately manage and administer the Work

Orders, it is essential to establish and fully observe a detailed procedure

for the handling of WVOs, AWOs and DWOs.

This Change and Work Order Procedure (hereinafter referred to as the"PROCEDURE") is intended to describe the procedural requirements for the handling

of WVOs, AWOs and DWOs, by defining VARIATIONs, ADDITIONAL WORKs

and DAYWORKs, pursuant to the provisions in Clause 5.2 "VARIATION", Clause 5.3

"ADDITIONAL WORK" and Clause 5.4 "DAYWORK" of the GTC, and to

other relevant provisions of the individual CONTRACTs.

1.2 DEFINITIONS

In this PROCEDURE, such terms as are defined in the CONTRACT are used, and,

where used, they have the same meaning thereby defined.

1.3 SCOPE OF APPLICATION

The PROCEDURE shall apply to all WVOs, AWOs and DWOs issued under

the individual CONTRACTs, regardless of whether of a major or minor nature, or

whether intended to form part of the temporary or permanent works.

2.0 COMPOSITION OF PROCEDURE

2.1 EXHIBITS, APPENDICES AND ATTACHMENTS

The PROCEDURE consists of this text and the following attachments:

(a) ATTACHMENT-1 "WORK VARIATION ORDER FLOW DIAGRAM",

(b) ATTACHMENT-2 "ADDITIONAL WORK ORDER FLOW DIAGRAM",

(c) ATTACHMENT-3 "DAYWORK ORDER FLOW DIAGRAM",

(d) ATTACHMENT-4 "STANDARD TIME SHEET",

(e) ATTACHMENT-5 "STANDARD WORK VARIATION ORDER",

(f) ATTACHMENT-6 "STANDARD ADDITIONAL WORK ORDER",

(g) ATTACHMENT-7 "STANDARD DAYWORK ORDER".

2.2 RELATED PROCEDURE

This procedure shall be read in conjunction with CCFM-U-00-TP420/020 :"CONTRACTOR Invoicing Procedure".


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3.0 WVO PROCEDURE

3.1 WORK FLOW DIAGRAM

The principles and practices of the WVO procedure are represented graphically within

ATTACHMENT-1 "Work Variation Order Flow Diagram", indicating the

chronological order in which the said practices shall be implemented.

Should any doubt, ambiguity or anomaly in respect of ATTACHMENT-1 be met by the

CONTRACTOR, he shall immediately advise TOYO, who shall make clear the intent

of the diagram.

3.2 WVO HANDLING PRACTICE

(1) For each Variation, TOYO shall issue to the CONTRACTOR, a WVO in the

agreed value, which shall form part of the final CONTRACT PRICE.

(2) The valuation of variations shall, wherever possible, be based on unit rates

contained within the SCHEDULE OF PRICES AND RATES of the

CONTRACT. Where no such comparable rates exist, a mutually agreeable value

for the works shall be negotiated, giving due regard to the level of prices and

rates therein.

(3) Adjustment to the CONTRACT PRICE under any WVO is to be made in

accordance with the relevant provisions of the CONTRACT DOCUMENTS and,

in particular, of the SPECIAL CONDITIONS.

(4) The following practices shall be adopted by TOYO and the CONTRACTOR in

the preparation of each WVO, depending upon the nature of the variation, and

shall be read in conjunction with ATTACHMENT-1.

(a) Case-I: Omission

A WVO shall be issued for the omission of a specific work item from the

CONTRACTOR's scope of work, only where works on that item have

commenced, and some demolitions or downtakings are required. The valueof the variation shall be calculated by deducting the total cost of the work

item, and adding the value of works completed, plus the evaluated costs of

any demolitions or downtakings. TOYO shall so instruct by means of

revised drawings, Field Revision Instruction, or the like.

Upon instruction by TOYO, the CONTRACTOR shall halt all further

progress immediately, evaluate the work done and costs of demolitions or

downtakings thereto, and advise TOYO of same.

Subsequent to evaluation of the CONTRACTOR's claim, and agreement by

TOYO, a WVO shall be issued to the CONTRACTOR.


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(b) Case-II: Change of Quality/Specification/Nature

In the event that TOYO determines a change in quality, specification or

nature of the works shall be made, the CONTRACTOR shall be so

instructed by means of revised drawings, Field Revision Instruction, or the

like.

Unless advised that the change(s) is urgent and for immediate action, the

CONTRACTOR shall evaluate the change(s) in respect of both costs, and

the effects on the work schedule. The CONTRACTOR shall advise

TOYO of the results of his evaluation in the shortest possible time, but in

any event, not longer than 10 (ten) days following receipt of the instruction.

In the event that TOYO determines the work is urgent and for immediateaction, the CONTRACTOR shall implement the requirements of the

instruction without delay, simultaneously evaluating and reporting the cost

and schedule implications.

Subsequent to evaluation and agreement by TOYO, a WVO shall be issued

to the CONTRACTOR.

(c) Case-III: Change in Dimensions, etc.

In the event that TOYO determines a change in level, position or dimension

is required, the CONTRACTOR shall be so instructed by means of revised

drawings, Field Revision Instruction, or the like.

Where work has already commenced, the CONTRACTOR shall halt all

further progress immediately upon receipt of the said instruction; evaluate

the work done, and immediately advise TOYO of both the costs, and the

effects on the work schedule.

Where no work has been carried out, the CONTRACTOR shall, in a timely

manner, evaluate both the costs, and the effects on the work schedule, and

advise TOYO accordingly.

Subsequent to evaluation and agreement by TOYO, a WVO shall be issuedto the CONTRACTOR.

4.0 AWO PROCEDURE


The principles and practices of the AWO procedure are represented graphically within

ATTACHMENT-2 "Additional Work Order Flow Diagram", indicating the

chronological order in which the said practices shall be implemented.



of the diagram.


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4.2 AWO HANDLING PRACTICE

(1) For each item of ADDITIONAL WORKS, TOYO shall issue to the

CONTRACTOR, an AWO in the agreed value, but which shall be treated as a

separate and independent contract, and therefore shall not form part of the final

CONTRACT PRICE. Notwithstanding the foregoing, all terms and conditions of

the prime CONTRACT shall apply.

(2) In due consideration of the foregoing, the CONTRACTOR shall be required to

mobilise all additional manpower and equipment as may be required for the

timely execution of the additional works, and it shall generally be accepted that

no extension of time to the CONTRACT shall be permitted to accommodate the

additional works.

(3) The valuation of ADDITIONAL WORKS shall, wherever possible, be based on

unit rates contained within the SCHEDULE OF PRICES AND RATES of the

CONTRACT. Where no such comparable rates exist, a mutually agreeable value

for the works shall be negotiated, giving due regard to the level of prices and

rates therein.

Where daywork rates for manpower and equipment, as contained within the

SCHEDULE OF PRICES AND RATES, are used in the pricing, no further

addition to the value of the AWO to compensate for overheads and profits shall

be permitted, as these are included in the daywork rates.

(4) At TOYO's sole discretion, an AWO may be based on a Lump Sum agreement, or

subject to remeasure upon completion of the additional works.

(5) The following practices shall be adopted by TOYO and the CONTRACTOR in

the preparation of each AWO, and shall be read in conjunction with

ATTACHMENT-2.

Details of ADDITIONAL WORKS shall be transmitted to the CONTRACTOR

by means of revised drawings, Field Revision Instruction, or the like.

Unless advised that the additional works are urgent and for immediate action, the

CONTRACTOR shall evaluate the works in respect of costs, manpower require-ments, material availability, etc., and shall advise TOYO of the results of his

evaluation in the shortest possible time, but in any event, not longer than ten(10)

days following receipt of the instruction.

In the event that TOYO determines the works to be urgent and for immediate

action, the CONTRACTOR shall implement the requirements of the instruction

without delay, simultaneously evaluating and reporting the cost implications.

Subsequent to evaluation and agreement by TOYO, an AWO shall be issued to

the CONTRACTOR.


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5.0 DWO PROCEDURE


The principles and practices of the DWO procedure are represented graphically within

ATTACHMENT-3, "Daywork Order Flow Diagram", indicating the chronological

order in which the said practices shall be implemented.



of the diagram.

(1) DWOs may be issued to the CONTRACTOR for any works as TOYO considersappropriate. In general, such works shall comprise elements for which the

establishment of unit rates or lump sums is unfeasible, due to unknown and/or

indeterminable factors.

(2) Payments under the DWOs are to be made by employing the unit rates for

manpower and construction equipment given in the SCHEDULE OF PRICES

AND RATES of the CONTRACT. Such rates are to be fully inclusive of labour

costs, transportation, small tools, fuel, routine maintenance, overheads and profit,

etc.

(3) TOYO shall, daily, instruct the CONTRACTOR in the manpower and equipment

levels to be utilised on works carried out under DWO, and the CONTRACTOR

shall not, under any circumstances increase the said manpower and equipment

levels, without prior approval from TOYO.

(4) Time Sheets, as sampled herein under ATTACHMENT-4, shall be made out by

the CONTRACTOR, giving full details of the works performed; manpower and

equipment employed on the works; hours worked; applicable unit rates; and the

sheet total. Time Sheets shall be submitted on a daily basis. Where no applicable

rate is included in the SCHEDULE OF PRICES AND RATES, TOYO and the

CONTRACTOR shall determine a mutually agreeable rate, giving due

consideration to the level of other, comparable rates.


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Ccfm-u-00-Tp420 030 r1 Change and Work Order