Part II Section 3 - General Scope TSA Work

THERMAL SPRAY COATINGS WORK FOR SK316-NC3 PROJECT PART II : WORK EXECUTION SECTION 3- GENERAL SCOPE

Malaysia Marine And Heavy Engineering Sdn. Bhd.

SECTION 3

GENERAL SCOPE

THERMAL SPRAY COATINGS WORK FOR SK316-NC3 PROJECT PART II : WORK EXECUTION SECTION 3- GENERAL SCOPE PAGE | i

TABLE OF CONTENTS


1. BACKGROUND ...................................................................................................... 1 1.1 MMHE Overview ...................................................................................................... 1 1.2 Scope ....................................................................................................................... 1

2. GENERAL .............................................................................................................. 1 2.1 Definitions ................................................................................................................ 1 2.2 Particulars of SUBCONTRACT ............................................................................... 1 2.3 The Site and Works ................................................................................................. 2 2.4 Design Information ................................................................................................... 2 2.5 SUBCONTRACTOR’s Care of the WORK .............................................................. 2

3. DESCRIPTION OF SITE ......................................................................................... 3 3.1 The Location of the Site ........................................................................................... 3 3.2 Restrictions on Access and Arrangements Entering the Site .................................. 3

4. MATERIAL ............................................................................................................. 3 4.1 Point of Delivery or Collection and Responsibility for Transporting and Handling .. 3 4.2 Responsibility for Reconciliation and Storage of Materials Whilst in the Care of

SUBCONTRACTOR ................................................................................................ 3 4.3 Method of Protection, Preservation, Storage and Associated Preparatory Work ... 4

5. STAFF AND LABOUR ............................................................................................ 4 5.1 SUBCONTRACTOR Personal and Labour ............................................................. 4 5.2 Rigging Manpower ................................................................................................... 5 5.3 Competency Requirement ....................................................................................... 5

6. PLANNING AND SCHEDULING AND PROGRESS CONTROL ............................ 5 6.1 Works Programme ................................................................................................... 5 6.2 Progress Control ...................................................................................................... 5

7. THERMAL SPRAY COATING WORKS ................................................................. 6 7.1 General .................................................................................................................... 6 7.2 Provisional Work ...................................................................................................... 6 7.3 Site Preparation ....................................................................................................... 9 7.4 Project Management ............................................................................................. 10 7.5 Completion ............................................................................................................ 11

8. SPECIFICATIONS, PROCEDURES ..................................................................... 12 8.1 General .................................................................................................................. 12

9. QUALITY CONTROL / ASSURANCE .................................................................. 12 9.1 General .................................................................................................................. 12 9.2 Inspection Request and Report ............................................................................. 13 9.3 Quality Audit ........................................................................................................... 13

10. HEALTH, SAFETY AND ENVIROMENT REQUIREMENTS ................................. 14 10.1 General .................................................................................................................. 14 10.2 HSE Program, Plan, Policy and Manual ................................................................ 15 10.3 Safety Compliance ................................................................................................. 15 10.4 Safety Competence Training/Qualification ............................................................ 16 10.5 Occupational Health .............................................................................................. 16 10.6 Environment ........................................................................................................... 16

THERMAL SPRAY COATINGS WORK FOR SK316-NC3 PROJECT PART II : WORK EXECUTION SECTION 3- GENERAL SCOPE PAGE 1 OF 10


1. BACKGROUND

1.1 MMHE Overview

Malaysia Marine and Heavy Engineering Sdn. Bhd. (“MMHE”) is a leading marine and heavy engineering company involved in a wide spectrum of oil and gas engineering and construction works. MMHE has two business units:

(a) Offshore Business Unit (“OBU”) which focuses on the design, engineering, fabrication, building and upgrading of deepwater structures, drilling platforms and other oil and gas facilities, as well as the design, fabrication, installation and commissioning of FPSO and FSO conversions.

(b) Marine Repair Business Unit (“MRBU”) which focuses on the repair, refitting and refurbishment of ULCCs, VLCCs, chemical, LNG and petroleum tankers, oil rigs, gas carriers and other offshore support vessels.

1.2 Scope

(a) This section specifies the purpose, scope, specifications and/or design and/or other technical criteria, for the WORK.

(b) Subject to the conditions and requirements of the SUBCONTRACT, SUBCONTRACTOR to provide management, supervision, manpower, necessary equipment, tools and consumables, planning, fabrication and protection of the WORK.

(c) This Scope of Work shall applicable for the project under MMHE OBU which involve in the fabrication, building and other oil and gas facilities.

2. GENERAL

2.1 Definitions

! “PMT” means Project Management Team

! “MMHE’s Documents” means the calculations, design drawings, fabrication

drawings (Issue for Construction or Issue for Fabrication as the case may be),

specifications, procedures and other documents of a technical nature (if any)

supplied by MMHE under the SUBCONTRACT.

2.2 Particulars of SUBCONTRACT

(a) The extent of work to be performed by the SUBCONTRACTOR shall be as specified /implied within this section and as can be reasonably inferred from the SUBCONTRACT as being necessary for the completion of WORK and shall be included in the SUBCONTRACT PRICE, unless specifically stated otherwise.

(b) SUBCONTRACTOR’s scope shall include all work specified, implied or inferred in MMHE’s Documents unless otherwise stated. All items mentioned to be under the SUBCONTRACTOR's scope shall be included in the SUBCONTRACT PRICE.

(c) Notwithstanding the above, the SUBCONTRACTOR shall satisfy itself that the details of the WORK are in full compliance with MMHE’s Documents and in accordance with requirements of the Main Contract where applicable to the WORK. The aforesaid shall apply without any restriction, unless otherwise specified hereinafter.

(d) All references within this Scope of Work, ‘to comply with the SUBCONTRACT and the Main Contract’, ‘performance to the requirements of the



SUBCONTRACT and the Main Contract’, ‘as per the SUBCONTRACT and the Main Contract’, ‘in accordance with the SUBCONTRACT and the Main Contract’, ‘to fulfill the SUBCONTRACT and the Main Contract requirements’, or any other wording or similar effect, shall mean compliance with the requirements of the SUBCONTRACT and the Main Contract by SUBCONTRACTOR during performance of the SUBCONTRACT WORK as they apply to the WORK.

(e) Prior to the commencement of WORK by the SUBCONTRACTOR, SUBCONTRACTOR shall furnish to MMHE a written “Certificate of Insurance” indicating affirmatively that SUBCONTRACTOR has obtained and then currently maintains those items of insurance more particularly described on General Conditions of Contract.

(f) The failure of SUBCONTRACTOR to comply with the Scope of Work shall be deemed as a default by SUBCONTRACTOR and shall constitute a breach of the SUBCONTRACT. If SUBCONTRACTOR fails to execute the Scope of Work or commits any breach of the Scope of Work, MMHE has the right to backcharged to the SUBCONTRACTOR all cost incurred at cost plus fifteen percent (15 %).

2.3 The Site and Works

(a) The SUBCONTRACTOR shall have and operate an effective PTW System for the duration of the SUBCONTRACT up to the point where the completed WORK is handed over to MMHE.

(b) All WORK carried out in the Site or off-Site must be in accordance with MMHE PTW System. The SUBCONTRACTOR shall ensure that its personnel have a thorough knowledge of its PTW system.

2.4 Design Information

(a) General arrangement drawings, structure and schedules and other relevant design information indicating the scope, location and type of work to be carried out shall, where available, accompany the quantities or schedules.

(b) In the absence of adequate specification information, descriptions on the drawings or within Schedule of Compensation and the like shall be amplified to comply with the requirements of this document.

2.5 SUBCONTRACTOR’s Care of the WORK

(a) The SUBCONTRACTOR shall take full responsibility for the care of the WORK and Materials until completion of the WORK. SUBCONTRACTOR shall exercise care in execution to ensure no damage is caused to equipment, pipework, structural, architectural, electrical and instrumentation items, HVAC, etc.

(b) If any loss or damage happens to the WORK, Materials or other contractor’s work during the period when the SUBCONTRACTOR is responsible for their care, the SUBCONTRACTOR shall rectify the loss or damage at the SUBCONTRACTOR’s risk and cost, so that the WORK and Materials conform to the SUBCONTRACT.

(c) The SUBCONTRACTOR shall be held liable for any loss or damage caused by any actions performed by the SUBCONTRACTOR.



3. DESCRIPTION OF SITE

3.1 The Location of the Site

MMHE's has two yards (collectively be referred to as “Site”) located at PasirGudang, Johor:

(a) PLO 3, JalanPekeliling, 81700 PasirGudang, Johor, Malaysia (“MMHE West”); and

(b) PLO 336, JalanSuasa, 81707 PasirGudang, Johor (“MMHE East”).

3.2 Restrictions on Access and Arrangements Entering the Site

(a) It shall be an obligation of SUBCONTRACTOR to obtain passes / permission for himself, his employees and his vehicle(s) into the Site as may be required. SUBCONTRACTOR shall ensure that all passes (i.e. HSE Pass, Security Pass) required are applied for immediately on award of the SUBCONTRACT. SUBCONTRACTOR is advised to furnish a list, giving the names and IC of his workmen, himself and the registration number of his vehicle(s) to MMHE before the commencement of WORK. PMT shall (where he is in a position to do so) provide reasonable assistance to SUBCONTRACTOR at the request of SUBCONTRACTOR for SUBCONTRACTOR’s applications for any Site entering permits, passes or approval required by MMHE policy and procedures.

(b) The SUBCONTRACTOR and his workers shall return all passes to MMHE upon the completion of the WORK.

(c) SUBCONTRACTOR shall ensure that all persons employed in the SUBCONTRACT or the WORK shall attend the Security office for screening if and when required to do so.

(d) No explosives, dangerous or flammable material shall be brought into the Site except in accordance with such conditions as MMHE may from time to time prescribe.

4. MATERIAL

4.1 Point of Delivery or Collection and Responsibility for Transporting and Handling

(a) SUBCONTRACTOR shall provide the required services for the receiving/ returning, identification and record maintenance for traceability, of all SUBCONTRACTOR /MMHE/Client supplied Materials.

(b) SUBCONTRACTOR shall provide transportation at all times in and around the yard for the material movement and to include arranging these materials nearby either at the storage area or construction site.

(c) On receiving MMHE supplied material, SUBCONTRACTOR shall check them immediately, both with respect to quality as well as quantity and shall notify shortage or defect. In the absence of any notice shortage aforesaid, the SUBCONTRACTOR shall at its cost supplement or repair the shortage or defect, which appears.

4.2 Responsibility for Reconciliation and Storage of Materials Whilst in the Care of SUBCONTRACTOR

(a) SUBCONTRACTOR shall be solely responsible for care and custody of Materials supplied by SUBCONTRACTOR /MMHE whilst in the care of SUBCONTRACTOR and he shall be liable for any costs or expense for repairing, replacing, lost and damage of Materials due to SUBCONTRACTOR’s negligence. SUBCONTRACTOR shall place them under cover or in adequate



storehouses, which the SUBCONTRACTOR shall construct if necessary and shall take all other measures, which may be necessary to avoid losses, damage or deterioration.

(b) Storage, handling, mixing and application of the paints or coating materials shall be done strictly in accordance with the manufacturer’s recommended procedures. All paints, thinner and coating materials issued to SUBCONTRACTOR for the work, shall be stored and protected against the weather, fire hazards, pilferage, etc. Any loss due to inadequate protection shall be at SUBCONTRACTOR’s expenses.

(c) SUBCONTRACTOR shall be responsible to documented properly document and record all of Materials whilst in the care of SUBCONTRACTOR. SUBCONTRACTOR must be able to identify and highlight outstanding materials that is affecting the schedule or will have an impact on the schedule as early as possible.

(d) SUBCONTRACTOR’s shall be responsible to relocate the Materials or fabricated Materials to other designated storage area whilst in the care of SUBCONTRACTOR if necessary.

4.3 Method of Protection, Preservation, Storage and Associated Preparatory Work

(a) SUBCONTRACTOR must exercise the diligence and prudence method of storage, protection, preservation and associated preparatory work for all Materials whilst in the care of SUBCONTRACTOR.

(b) SUBCONTRACTOR shall do storage, handling, mixing and application of the Thermal Spray Coating materials, strictly in accordance with the manufacture’s recommended procedures. SUBCONTRACTOR shall provide all protection materials. SUBCONTRACTOR shall submit the Material Safety Data Sheet (MSDS) to MMHE before mobilizing the material at MMHE yard.

(c) SUBCONTRACTOR shall be responsible for proper handling and issuing of blasting grit to work site. SUBCONTRACTOR shall return and arrange properly all surplus MMHE’s supplied material after the WORK is finished or no longer in use during execution of WORK, in a proper and safe manner on/at location within MMHE’s yard as designated by MMHE’s.

(d) All Materials shall be stored in accordance with good practice including but not limited to; into container, on pallets or timber/concrete blocking, off the ground and above the level of standing water.

(e) SUBCONTRACTOR shall submit a list of materials to be processed on a weekly basis, which will be based on the work sequence and schedule requirements. SUBCONTRACTOR must be able to identify and highlight outstanding materials that is affecting the schedule or will have an impact on the schedule as early as possible.

5. STAFF AND LABOUR

5.1 SUBCONTRACTOR Personal and Labour

(a) SUBCONTRACTOR shall employ all necessary personnel including competent supervisors who are experienced in the work for full time supervision required for the completion of the WORK. SUBCONTRACTOR shall be responsible for the sufficiency of the number of personnel required.

(b) Safety course is compulsory for all SUBCONTRACTOR workers.



(c) SUBCONTRACTOR shall strictly follow MMHE working hours. SUBCONTRACTOR may be required to work longer hours for the execution of the work at no additional cost to the MMHE, if SUBCONTRACTOR fails to meet the schedule.

(d) Should SUBCONTRACTOR fail to fulfil any requirement in this Article, MMHE shall have no liability to reimburse the hours expended.

5.2 Rigging Manpower

SUBCONTRACTOR shall provide manpower for rigging/unrigging of materials for the following situations:

(a) Collection of materials from store or yard storage areas.

(b) Unloading/loading of materials at working areas

(c) Return of materials from fabrication and erection areas to storage area.

5.3 Competency Requirement

(a) All SUBCONTRACTOR’s employee scheduled to work on the project shall possess the relevant and valid competency certificates as specified by the MMHE/ Client and the statutory requirement of the Malaysian law.

(b) Such competency certificate shall be made valid and evidence of possession shall be made available for inspection by any authorized MMHE’s personnel at any point of time.

6. PLANNING AND SCHEDULING AND PROGRESS CONTROL

6.1 Works Programme

(a) SUBCONTRACTOR shall follow the master planning package as formulated by MMHE. SUBCONTRACTOR shall submit the details of his firm Works Programme according to the master planning package provided by MMHE. It is MMHE’s intention to create a master planning package which is similar to those of each of its SUBCONTRACTORs.

6.2 Progress Control (a) Upon award, SUBCONTRACTOR shall submit the shortest blasting painting

bar chart schedule that is achievable with the corresponding manpower loading. Only qualified and competent workers are to be employed by SUBCONTRACTOR. The schedules will be reviewed and revised, if necessary by SUBCONTRACTOR. However, such acceptance shall not relieve the SUBCONTRACTOR to carry out all activities as per daily plan issued by MMHE Project Team and thus the daily plan shall be accomplished on the day that it is required.

(b) SUBCONTRACTOR shall submit a daily work plan and a week look ahead schedule by listing the activities to be done, materials required and the corresponding manpower loading per trade in accordance with the overall schedule. SUBCONTRACTOR shall, each day, update MMHE as to the progress of the daily plan.

(c) SUBCONTRACTOR with consultation of MMHE shall commenced the lists of piece mark/joint number showing the required fabrication priority would be based on the main part on expected Materials delivery to Site.

(d) Timely completion of the work is the most essential part of this project. SUBCONTRACTOR shall submit a work programmed with manpower loading



for MMHE review prior to award, stating the start and completion dates of each major activity for Blasting/Coating.

(e) In the event that the WORK progress is behind schedule, SUBCONTRACTOR is required to increase the manpower and to work overtime including Rest Days and Public Holiday. All associated costs are to be borne by SUBCONTRACTOR.

SUBCONTRACTOR shall be responsible in developing the catch-up and action plan for approval to MMHE as and when requested.

(f) In case of delay and SUBCONTRACTOR fails to increase manpower after repeated warnings (verbal or written) to catch-up with schedule, MMHE shall have the right to supply necessary manpower to take over part of the scope or to take over the whole remaining work. All cost involved in such MMHE action will be borne by SUBCONTRACTOR.

7. THERMAL SPRAY COATING WORKS

7.1 General (a) SUBCONTRACTOR shall be responsible for Thermal Spray Coating surface

preparation and application of all fabricated items in accordance with drawings, technical specifications, instructions and other relevant contract documents for the fabrication of SK316-NC3 project.

(b) SUBCONTRACTOR is responsible for ensuring that it has studied and familiar with all the documentation and that it is fully aware of the Scope. The work to be carried out, the quality standards it is required to adhere to and rules, regulation, standards and codes that governs the works is to be perform until accepted by MMHE and CLIENT.

7.2 Provisional Works (a) The complete scope of work shall not be limited to the major activities that are

expressly set forth below but shall also include all relevant activities necessary for the completion of SUBCONTRACTOR’s scope of work but not limited to the following:-

(i) Consumable, materials, manpower, equipment, facilities, supervision and inspection for Thermal Spray Coating works.

(ii) SUBCONTRACTOR to generate and produce all relevant fabrication procedures for the work based on CLIENT specification and requirements.

(iii) SUBCONTRACTOR shall make a selection of materials for the application.

(iv) Procurement and supply all the fabrication and construction materials for the completion of the work and testing. Procurement can only proceed after getting approval from MMHE / CLIENT.

(v) Setting up of work area fabricate, assemble, install and testing of the work.

(vi) SUBCONTRACTOR shall submit Technical Requirement Data include MSDS of all propose materials for MMHE/CLIENT approval.

(vii) SUBCONTRACTOR to provide independent third party authority for witnessed and certified qualification test. The third party authority shall be agreed by the CLIENT.



(viii) SUBCONTRACTOR to provide companion coupons for testing during PQT and production

(ix) SUBCONTRACTOR to provide the testing and inspection tools

(x) Touch-up repair for TSA and cosmetic coating work for Sealer Coat work and all markings work are deemed to be included in the provisional scope of work.

(xi) Protection of other works surrounding the application area.

(xii) Produce, submission and acceptance of Final Documentation inclusive of all the final testing and inspection reports.

(b) The detail work shall be based on issued “IFC” drawings, CLIENT technical specifications and CLIENT standard drawings. Any subsequent “IFC” drawings revision shall form part of original scope and not constitute any variation to contract.

(c) Based on the fabrication drawings “IFC” to be issued after contract award, the SUBCONTRACTOR shall check the accuracy of these drawings against the technical specifications. Any discrepancies found must be highlighted in writing to MMHE before commencement of works.

(d) However, in the event that SUBCONTRACTOR fails to notify MMHE officially and the discrepant work had proceeded and resulting in rejection, rework and or modification, SUBCONTRACTOR shall re-do the rejected work in accordance with the approved repair procedures at SUBCONTRACTOR’ s cost, including supply of replacement materials to satisfaction of MMHE and CLIENT.

(e) SUBCONTRACTOR shall request waivers from any deviations intended from the drawings, procedures, specifications and work sequence requirements. Failure to clarify the deviation officially may result in rejection of work and the associated repair work shall be at SUBCONTRACTOR’s cost.

(f) Adequate and appropriate equipment shall be supplied by SUBCONTRACTOR in sufficient numbers, good working order and operated in such a manner as to obtain at least the minimum standards detailed in specifications and maintaining the construction schedule.

(g) Mobilization and Demobilization including transportation of all SUBCONTRACTOR ‟s supplied materials and equipments to and from the MMHE yard.

(h) SUBCONTRACTOR shall be responsible for surface preparation and application of TSA of all fabricated items, equipment, and valves in accordance with the drawings, specifications, procedures, codes and standards to the satisfaction of MMHE and CLIENT.

(i) Fabricated steel like tubular bracing, plates fabricated secondary steel, fabricated pipe spools and miscellaneous fabricated supports, SUBCONTRACTOR shall full blast to SA 2.5 surface roughness between 75 micron and 110 micron prior to TSA Coating.

(j) It is the intention of MMHE to deliver all materials to SUBCONTRACTOR for blasting and coating work complete grind off on sharp edges, but however, it is SUBCONTRACTOR’S responsibility and scope of work to ensure that such materials is to be grind off on all sharp edges before commencing work.



(k) TSA work on all difficult and inaccessible area should be paid to coating such as bolt holes, weld joints, crevices, corners, behind stiffener plated and beam.

(l) Prior to applying any subsequent coats, the previously applied and dried coat shall be adequately prepared. This includes sand down, removal of dry spray, grease, oil dirt and other foreign materials, solvent cleaning, feathering and confirming edges of sound coatings where appropriate. SUBCONTRACTOR shall be responsible to make good and repair defects to the coatings of all equipment, doorframes, door leaves, enclosures, as and when instructed by MMHE at SUBCONTRACTOR’S cost.

(m) SUBCONTRACTOR shall re-blast, prime and re-coat areas which are considered by MMHE to have been prepared or done, not in accordance to specifications

(n) All vendor supplied items e.g. valves, equipment skid etc. that are coated with vendor’s standard paint which generally do not meet the CLIENT specifications and shall re-blasted or removed by any means, (if blasting is not possible) of their original paint and recoated in accordance to specifications. SUBCONTRACTOR shall make all necessary precautions to protect all internal, moving parts, instruments, etc. against grit contamination and coat over sprays.

(o) Adequate and appropriate equipment shall be supplied by SUBCONTRACTOR in sufficient numbers, good working order and operated in such a manner as to obtain at least minimum standards detailed in specifications and maintaining construction schedule.

(p) SUBCONTRACTOR shall take adequate and proper precaution against damaging, discolor and over-spraying of surface of fittings, machinery, trays, tubing, equipment lighting fixtures and walls partitions. All area coated with final coat and damages to surface shall be recoated or repaired and made good by SUBCONTRACTOR to satisfaction of MMHE at the SUBCONTRACTOR’S expense.

(q) SUBCONTRACTOR shall be responsible to supply all necessary sheds and tarpaulin sheet to protect the area during blasting and coating work so that other discipline working is not interrupted. SUBCONTRACTOR shall be responsible to provide temporary sheds to shield off the area for blasting/painting and to put up sign “Thermal Spray Coating Work in Progress” during TSA work.

(r) SUBCONTRACTOR shall include in their scope for power tooling work for area where machinery / equipment / instrument / electrical devices / exotic piping has already been installed. SUBCONTRACTOR shall ensure adequate number of power tooling machines and manpower are provided to carry out the surface preparation by power tooling.

(s) SUBCONTRACTOR shall carry out works in such a manner and sequence the surface preparation and coating can be carried out efficiently, with minimum disruption to other trades and with minimum amount of “Touch-up” work required. SUBCONTRACTOR shall have provision to other discipline to carry out their work and no compensation shall be entertained due to his work interference.

(t) SUBCONTRACTOR shall protect all cable / tray / ladders / equipment / instrument / name plates / name tags / devices/etc. from over blasting and spraying. Protection shall be provided by using plastic / tarpaulin / plywood.



Wrapping around cables / tray / ladders / equipment / instruments / name plates / name tags / devices, etc. This protection shall be provided before blasting and coating is carried out and when being removed after completion of work or before end of the day or before moving to the next area of work. SUBCONTRACTOR must take note that only fireproof materials or fire retardant tarpaulin are allowed to be used for this project. All cost for rectifying any damage due to failure protect for these item shall be borne by SUBCONTRACTOR.

(u) SUBCONTRACTOR’S scope of work shall include the withdrawal of blasting grit, required for the completion of work. MMHE shall supply to SUBCONTRACTOR such as blasting grit and back charge to the SUBCONTRACTOR.

(v) SUBCONTRACTOR shall provide transportation at all times in and around the yard for the material movement and to include arranging these materials nearby either at the storage area or construction site.

(w) The minimum SUBCONTRACTOR’s provisions for the required equipment, tools and consumable in executing this scope of work.

(x) SUBCONTRACTOR shall be responsible for clearing, cleaning and removing of all consumable waste such as drums, cans, plastic sheets, adhesive tapes, wooden pallets, paper and plastic wrapping at the work site as soon as the work in that area has completed or as frequently as may be required by MMHE.

(y) SUBCONTRACTOR shall be responsible to all paint residues (paint waste), segregated and transferred into drum of 209 liters capacity provided and disposed to prescribed premises. All process of removal of harden paint from can shall be carry out on prescribed location provided by MMHE. Empty paint waste cans are to be temporary stored in schedule waste box at each project and transferred into scrap dealer container for disposal to designated area. SUBCONTRACTOR shall ensure that their workers adhere to the practices and procedures in respect to painting and disposal of paint waste and cans. Disposal for 1 TONNE of empty can is RM 2,000.00 and disposal for 1 TONNE of waste paint is RM 4,100.00 and shall be back charge to the SUBCONTRACTOR.

7.3 Site Preparation (a) SUBCONTRACTOR shall provide its own fit for purpose site office and

provide at least two (2) units of fire extinguisher and first aid kit, tools and equipment store. MMHE will designate the location for these cabins structures. Cost for positioning and arranging these cabins to the designated place shall be borne by SUBCONTRACTOR.

(b) SUBCONTRACTOR shall ensure that all equipment to be used in the performance of the work comply with all relevant specifications and statutory requirements or as may be required by the government or local or other authorities having jurisdiction and otherwise meet generally accepted industry standards for Occupational Safety and Health and are capable of performing the functions for which they are intended. All such equipment requiring certification by statutory bodies and / or third parties shall be so certified before they are brought into MMHE premises or the WORKSITE.

(c) All tools and equipment supplied by SUBCONTRACTOR shall be completed with safety features in full compliance to the requirements of regulation and industrial standards. All tools and equipment shall be suitable for the working



environment / condition and fit for the intended use. Any tools or equipment found to be defective, unsafe or does not comply with the safety requirements shall be removed from the work site immediately and replaced by the SUBCONTRACTOR.

(d) MMHE representative shall have the right to inspect all the equipment that are being supplied by SUBCONTRACTOR, if in the opinion of MMHE that the equipment is defective or worn out (to such extent as to impair the quality and progress of work), and then SUBCONTRACTOR shall cease to use them. Quick action shall then be taken by SUBCONTRACTOR either to repair or replace the equipment to avoid any undue delay in completion of work and wastage of materials as a result of equipment failure.

(e) SUBCONTRACTOR’S shall be responsible for the safe guard and maintenance of their own tools and equipment. MMHE will not be responsible for any damage or theft of SUBCONTRACTORs’ tools or equipment.

(f) All loan of tools / equipment to SUBCONTRACTOR shall be strictly subjected to MMHE procedure for loan of tools / equipment. MMHE reserved the right to charge SUBCONTRACTOR for the cost of all tools taken on loan, which are reported, lost or damaged or not returned within specified date. SUBCONTRACTOR shall also comply with MMHE procedure with regard to any material and tools/equipment under the contract in which SUBCONTRACTOR is required to bring them into MMHE yard or to bring out MMHE Yard.

(g) SUBCONTRACTOR shall return the construction equipment which are being provided by MMHE as soon as it is no longer needed for the execution of the work and, in any case not later than due date for its return. The said equipment shall be returned in as good condition as when supplied, except for normal wear and tear, and shall be returned to the place as received at or in any other place that may be designated by MMHE.

(h) SUBCONTRACTOR shall carry out the clearing of site, laying out of construction supports and ensuring the levelness throughout the project execution phase.

7.4 Project Management (a) SUBCONTRACTOR shall provide a Project Management Team, comprising

as a minimum of - Project Manager, QC Coordinator, Safety Officers and all respective Supervisors. Mobilization personnel nominated shall be subject to approval by MMHE and their responsibilities shall be as detailed herein. The minimum acceptance criteria are 5 years’ experience on proposed key positions.

(b) The responsibility of the Project Management Team shall include, but not be limited to the following;

(i) Supervising, inspecting and monitoring of the WORK progress.

(ii) Planning execution of the WORK, preparing all necessary planning documentation including the regular updating and reporting as required herein.

(iii) Preparing all the necessary reports for COMPANY.

(iv) Updating COMPANY on the progress of the WORK.

(v) Ensuring the WORK is executed in a safe, efficient, timely and professional manner and that the WORK meets COMPANY’s standard of



quality and workmanship. All work must be executed in such a manner in compliance to Malaysian Laws & Regulation.

(vi) Advising COMPANY of any change to the WORK, cost implication and schedule impact.

(vii) CONTRACTOR’s representative such as Supervisor, Superintendent, QA/QC, specially the Project Manager is required to participate and conduct “Tool Box Talk”. The said requirement shall take effect without prejudice to improve the commitment of CONTRACTOR with MMHE HSE program or any program conducted by MMHE’s HSE.

(viii) CONTRACTOR’s representative attendance, participation on conducting of “Tool Box Talk” or any program conducted by MMHE’s HSE shall monitored and included as one for assessment after completion of work.

(ix) Correcting any quality deficiency until acceptance by COMPANY / CLIENT.

(c) SUBCONTRACTOR must submit the proposed organizational chart together with the resumes of the key personnel and the manpower loading and their minimum responsibilities for MMHE, review before Contract Award. All nominated key personnel required to commence front-end activities shall be mobilized within two (2) weeks of Contract award, for each personnel not mobilized within two (2) weeks, penalty will be imposed if that person is required and the work related to that person cannot start or delayed. This is an addition to any liquidated damage provision specified elsewhere in the contract.

(d) SUBCONTRACTOR shall provide a technically, competent, experience and sufficient project team and skilled labor force for the project. MMHE reserves the right to demobilize any of SUBCONTRACTOR’s personnel who are not competent enough to perform the job or cannot meet schedule requirement. Any replacement shall be at SUBCONTRACTOR’s expense. SUBCONTRACTOR cannot change nor demobilize any approved key personnel without the consent of MMHE Project Manager.

7.5 Completion (a) When SUBCONTRACTOR considers that work has been completed in

accordance with the contract, SUBCONTRACTOR shall notify MMHE accordingly.

(b) In the event that SUBCONTRACTOR cannot complete the WORK prior to loadout, the outstanding items shall be recorded on a punch list. As part of documentation of punch list, SUBCONTRACTOR shall identify by means of marked up drawing, the description, scope of work, materials and equipment necessary to complete each item. SUBCONTRACTOR shall then be responsible for supplying all labour, consumable and equipment for the completion of WORK at the offshore location, as soon as possible, in close liaison with MMHE at SUBCONTRACTOR’s cost.

(c) If SUBCONTRACTOR is unwilling or unable to do the above within the MMHE’s overall project programme requirement or if access or accommodation is not available, then MMHE shall complete the outstanding work and deduct all additional cost incurred by MMHE from the CONTRACT PRICE based on offshore rates plus administrative cost.



(d) Payments by MMHE to SUBCONTRACTOR shall be made in accordance with the accepted work done based on progress completion by the SUBCONTRACTOR including the fulfillment of all SUBCONTRACTOR’s responsibility as stipulated herein and hereto under the scope of work.

(e) In the event that SUBCONTRACTOR is unable to or failed to fulfill any part of its obligation and responsibility, MMHE may employ its own or alternative labour or resources to fulfill such obligation and deduct the cost incurred by MMHE from the payments due SUBCONTRACTOR.

(f) The breakdowns of work progress are as follows;

Completed Surface Preparation and Blasting Works 35 %

Completed TSA System Note: % Allocation on a per coat system will be discussed later

40 %

Completed Touch-up Repair and Cosmetics Works 15 %

Acceptance 10 %

Total 100 %

8. SPECIFICATIONS, PROCEDURES

8.1 General

(a) SUBCONTRACTOR shall provide thermal spray coating work procedures in accordance with industrial standard, applicable codes, procedures and specifications to satisfaction and acceptance of MMHE and CLIENT.

(b) SUBCONTRACTOR shall comply with the following requirements :

(i) Thermal Spray Coatings of Aluminium and 85/15 Zinc/Alumimium Alloy (PTS 30.48.40.31 December 2010)

(ii) PETRONAS Technical Standard Protective Coatings and Linings (PTS 30.48.00.31 September 2012)

(iii) Carigali Standard Procedure Surface Preparation and Painting Procedure (CSP-09 Revision 3)

(iv) Surface Preparation and Painting Procedure (PSP-NC3-0809)

9. QUALITY CONTROL / ASSURANCE

9.1 General

(a) SUBCONTRACTOR shall comply and make sure that the work is within the specified tolerance of the procedure and specifications. SUBCONTRACTOR shall comply with MMHE Quality management system with regard to Project Quality Assurance Plan (PQP) and the CLIENT Technical Specification. SUBCONTRACTOR shall have an established and documented Quality Assurance System in accordance with ISO 9001: 1994.

(b) SUBCONTRACTOR shall also comply to all the quality requirement as required/set by CLIENT in line with Job Specification/Coordination procedure, wherever applicable.



(c) SUBCONTRACTOR shall strictly adhere to the MMHE/CLIENT Quality Management System (QMS), PQP and Inspection Test plan (ITP) to ensure that the WORKS are designed, executed and completed in accordance with the SUBCONTRACT. It is the responsibility of SUBCONTRACTOR to fully understand these requirements at the start of the project and abide by the procedures, inspection and test plans.

(d) Compliance with the QMS and PQP shall not relieve SUBCONTRACTOR of any of his obligations under the SUBCONTRACT.

9.2 Inspection Request and Report

(a) SUBCONTRACTOR’s QC inspectors shall check and inspect all work done prior to requesting official inspection from MMHE QC inspectors and CLIENT representatives. The RFI form shall be used to notify the area, location, item and timing of inspection with advance notice of minimum 4 hours prior to inspection. SUBCONTRACTOR’s QC team shall fill in/write all working copy of report prior to each inspection. MMHE/CLIENT QC Inspectors shall carry out the inspection based on the approved ITP. However, MMHE/CLIENT reserves the right to carry out any inspection without prior notification to SUBCONTRACTOR. Final inspection reports shall be issued out once all items in the RFI is inspected and accepted by MMHE/CLIENT. This report shall be given not later than 48 hours after completion of inspection.

(b) MMHE has the right to request for any re-inspection or repair of work at SUBCONTRACTOR's cost if the workmanship is found not meeting project requirements.

(c) SUBCONTRACTOR shall provide sufficient and fulltime experienced, competent QC Personnel and Technical Clerk to check and inspect as per the MMHE and CLIENT inspection Test Plan and ensure of all the work done in accordance with drawing and technical specification requirements prior to requesting official inspection from MMHE and CLIENT

(d) SUBCONTRACTOR QC will be integrated with MMHE QC during the blasting / coating work. SUBCONTRACTOR shall submit the QC organization team together with their resume for MMHE approval.

(e) SUBCONTRACTOR shall also provide at job site all necessary checking / testing instrument approved and calibrated e.g. SSPC-PAR Paint Thickness Measurement, Visual Surface Preparation Comparators and other devices as required by MMHE for determination of acceptability of painting and protective coating.

(f) SUBCONTRACTOR shall maintain the minimum dry film thickness of each coating required in the specifications.

(g) Inspection and testing of all SUBCONTRACTOR ‟s supplied material.

(h) SUBCONTRACTOR shall include in its workforce a minimum two (2) competent QC Inspectors (Minimum requirement 3 years experience in TSA and IMM level 2)

(i) Spray operator shall be qualified in compliance with ISO 14918.

9.3 Quality Audit

(a) SUBCONTRACTOR is required to be audit according to MMHE audit procedure which SUBCONTRACTOR need to understand and maintained all project related documents as per Project Quality Plan.



10. HEALTH, SAFETY AND ENVIROMENT REQUIREMENTS

10.1 General

(a) MMHE shall have the right to audit SUBCONTRACTOR’s adherence to the requirements contained herein. SUBCONTRACTOR shall provide his full cooperation to the audit team and shall make available all necessary documents, services and facilities to enable proper performance of the audit. SUBCONTRACTOR shall also close the finding if any in timely manner.

(b) SUBCONTRACTOR shall participate actively and committed on health, safety and environment (HSE) issues rating relating to the WORK and shall protect his employees, the environment and all third parties including their equipment from any hazard that may arise as a result of the WORK.

(c) SUBCONTRACTOR shall comply, abide and enforce on its employees any rules, regulations and standards on health, safety and environmental protection as provided in MMHE publish manuals policies and procedures or as otherwise required by the Occupational Safety and Health Act 1994 and Factories and Machinery Act 1967.

(d) SUBCONTRACTOR shall emphasize the importance of HSE and shall instruct his personnel/workers of MMHE 10 Safety Rules end ensure adherence thereto. Violation of MMHE 10 Safety Rules will be a cause for removal of SUBCONTRACTOR personnel. MMHE 10 safety rules are as follows:

(i) Permit to work (PTW) – work with valid permit to work when required.

(ii) Energy isolation – verify energy isolation before start work.

(iii) Overriding of safety critical equipment

(iv) Confined test and gas test – obtain authorization before entering confined space and conduct atmosphere test.

(v) Working at height.

Safety harness must be worn when working at height of 1.8 metres (6 ft) or higher above the ground / platform and/or when the risk of a fall is present. SUBCONTRACTOR shall ensure workers wear a full body safety harness and split-tail lanyard equipped with a shock absorber at all times even while working inside approved scaffolding structures and/or platform decks protected with handrails, mid-rails and kick plates installed. 100 percent tie off is required at all times when adequate fall protection does not exist

(vi) Lifting operation – do not position yourself under suspended load.

(vii) PPE Usage – wear the correct PPE as required by the job at all times.

(viii) Drug, alcohol and smoking – no drugs or alcohol while working or driving, do not smoke outside designated smoking areas.

(ix) Mobile phone usage – do not use mobile phone at operation area / red zone and while driving/riding/cycling inside MMHE yard.

(x) Driving safety – wear safety belt and follow speed throughout MMHE premises in 25km/hr and violation will result in the driver having to surrender its vehicle entry pass



(e) Failure to comply with the rules may constitute serious misconduct and may result in disciplinary action (consequence management) being taken against the employees or the supervisor.

10.2 HSE Program, Plan, Policy and Manual (a) In line with MMHE’s objective to promote safety awareness and safe working

practice among the working employees, SUBCONTRACTOR shall implement and establish a safety management award program to recognise achievement and milestone for safe working performance for each employee.

(b) SUBCONTRACTOR shall develop Housekeeping Plan and implement good housekeeping practice at the work site and MMHE shall review its effectiveness on regular basis.

10.3 Safety Compliance

(a) Before the commencement of the WORK, SUBCONTRACTOR shall establish all necessary or appropriate HSE rules in relation to the WORK. SUBCONTRACTOR shall consult and obtain from MMHE requirements.

(b) SUBCONTRACTOR shall provide all persons performing any part of the WORK with all personnel safety items (including but not limited to safety helmet, safety goggles, safety spectacles, body harness complete with double lanyard, safety footwear and hand gloves) necessary for the safe performance of the WORK.

In general all personnel shall be required to act in a safe manner, which shall include wearing the minimum PPE upon entry into MMHE premises:

(i) Wear life jackets while working over open water or water edge.

(ii) Wear overall/jacket (cotton fabric), hard hats, eye protection and safety shoes/boots at all times while working.

(iii) Other personal protective equipment shall also be provided as required by the nature of work to be carried out and the likely hazards encountered in the work environment. Examples include improved gloves or other brand acceptable by MMHE, respiratory protection, face protection, chemical splash protection, personal fall arrest system, etc.

(iv) Prohibited from consuming alcohol, drug possession of offensive weapons or explosive material throughout MMHE premises.

(v) Smoking is strictly prohibited throughout MMHE premises, only at designated area. Cigarettes and lighters/matches or food are not allowed to be taken on worksite.

(vi) To abide strictly with accordance to the safety requirement shown on all safety signboard at the workplace.

(c) SUBCONTRACTOR shall maintain adequate PPE supplies at the WORK site for the WORKFORCE.

(d) SUBCONTRACTOR personnel shall be subjected to the random drug/alcohol screening by MMHE Medical Administrator and the cost shall be borne by SUBCONTRACTOR, Violation of the regulation, as such, possession/trafficking, taking, soliciting, shall construe to cause for immediate removal from MMHE premises.

(e) SUBCONTRACTOR shall not subject its personnel to work more than 12 hours shift, resulting in work fatigue which may reasonably foreseeable the cause of accident. SUBCONTRACTOR shall be required to provide the basic amenities



such as food, drinks, transportation and accommodation for its personnel working late shift.

(f) SUBCONTRACTOR to ensure full compliance to Grinding Safety Requirement. All grinding machine/tool must be equipped with the “deadman switch”.

10.4 Safety Competence Training/Qualification

(a) SUBCONTRACTOR shall at his own cost and expense responsible for establish the required standards of training appropriate to work of services required by the Contract. Such training shall not be any less than that which is required by generally accepted industry practice.

(b) SUBCONTRACTOR shall provide personnel in the performance of the contract with the specific types of competence such as erecting scaffolding, rigging and electrical wiring, have attended training courses relevant to the work. SUBCONTRACTOR personnel shall be required to have achieved a level of competence acceptable to MMHE and shall be required to produce certifying documents.

(c) SUBCONTRACTOR shall provide Safety Supervisor/Promoters with the primary duties and responsibilities exclusively on matters pertaining to HSE within the project. Number of SUBCONTRACTOR Safety Promoter per MMHE is defined by one (1) safety promoter for every 50 workers or location or at discretion of a MMHE Safety Executive. The Safety Supervisor/Promoter must have Health Course conducted by NIOSH otherwise shall attend 2 days safety promoter course organized by MMHE and the cost shall be borne by SUBCONTRACTOR.

10.5 Occupational Health

(a) Only medical fit personal are allowed to perform the work, SUBCONTRACTOR shall ensure that all his employees have undergone pre-placement medical examination conducted by an Occupational Health Doctor, registered with DOSH or registered Medical Practitioner to certify fitness to work and to be submitted to MMHE prior to issue of the electronic pass to work.

(b) SUBCONTRACTOR shall ensure that his personnel undergo yearly “fitness to work” medical examination for assigned duties such as welding, blasting, painting and working in confined space.

(c) SUBCONTRACTOR shall ensure that his personnel have access to medical care under the Use of Standards Exposure of Chemical Hazardous to Health (USECHH) 2000 regulation to undergo health surveillance by an Occupational Health Doctor, registered with DOSH upon recommendation from the Chemical Health Risk Assessment conducted by MMHE including appointed Assessor, recognized by DOSH.

(d) SUBCONTRACTOR shall ensure that before commencing employment his personnel have had a medical examination which should include medical history, audiometry test, spirometry, drug abuse screening and is directed towards body functions specifically affected by occupational hazards.

10.6 Environment

(a) SUBCONTRACTOR shall comply with MMHE policy on protection of the environment which is to apply the best practicable means to account for and minimize emissions, efficient and waste, the thereby protect air, water soil and plant and marine life from adverse effect of his operations, and to minimize any nuisance that might arise.



(b) SUBCONTRACTOR shall only use products which do not cause undue impact on the environment when used and the stored and disposed in a manner which does not cause undue impact on the environment.

(c) SUBCONTRACTOR shall take the necessary precautions to prevent damage to the worksite and to property and the environment adjoining the worksite.

(d) SUBCONTRACTOR shall remove any waste in accordance to MMHE Waste management Programme and ensure that the employees are fully award on the mentioned.

(e) SUBCONTRACTOR shall, in the event of any spillage or accidental discharge of hazardous wastes, take all measures to contain or abate the spill of accidental discharge. The SUBCONTRACTOR shall then clean and/or recover the substance involved to a degree satisfactory to the authorities. The SUBCONTRACTOR shall then take steps to rehabilitate the affected environment.