Project Quality Plan Rev

SHUQAIQ STEAM POWER PLANT PROJECT

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PROJECT QUALITY PLAN Date: 30/12/2015

Contract No. B1303A-A016

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PROJECT QUALITY PLAN

Rev. Date Reason for Issue Prepared by Checked by Approved by

A 30/12/2015 Issued for Approval Aamir Faridi B.J. Jeon S.K. Choi

Informatics reference: SSPP-11-PQP-Q-43-001-001 Rev.A

Project Quality Plan

Document date 12/30/2015 10:35 AM

Printing Date 12/30/2015 18:56

The content of this document is strictly confidential. The content cannot be used, copied, or submitted to third parties without written consent of BONGKYUNG CONSTRUCTION CO,

LTD. SHUQAIQ SAUDI ARABIA.

This document or /and his attachments are subjected to revisions / modifications. Before using this document, please verify to have the updated document.

Whoever comes in possession of this edition, is obliged to cancel or destroy any previous copies in his hands or duplicates submitted of with he must have evidence tracking.


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SECTIONS SUMMARY AND STATUS

SECTION DESCRIPTION

SECTIONS EVISION

STATUS

00 0A 0B 0C 0D 0E

0

F

SECTIONS SUMMARY AND STATUS X

PREFACE X

PROJECT QUALITY POLICY STATEMENT X

CORRESPONDENCE BETWEEN ISO 9001:2008

X

PART – I

QUALITY MANAGEMENT SYSTEM

1 GENERAL X

1.1 SCOPE AND OBJECTIVE

1.2 QUALITY PLAN MANAGEMENT

1.3 GENERAL PROJECT SCOPE OF WORK

1.4 TERMINOLOGY AND DEFINITIONS

2 PROJECT ORGANIZATION X

2.1 GENERAL

2.2 QA/QC PERSONNEL CHANGES

3 REFERENCE DOCUMENTS AND

PROJECT DOCUMENTATION/

ELIVERABLES

X

3.1 GENERAL

3.2 REFERENCE DOCUMENTS

3.3 From BKC


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SECTION DESCRIPTION

SECTIONS REVISION

STATUS

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4 CONSTRUCTION PROGRAM PLANNING

AND CONTROL X

4.1 GENERAL

4.2 RESPOSIBILITIES

4.3 METHODOLOGY

4.4 PLANNING, SCHEDULING,

PROGRESS & EVALUATION

REPORTING

5 DOCUMENT AND QUALITY RECORDS CONTROL X

5.1 SCOPE

5.2 GENERAL

5.3 DOCUMENT PREPARATION

5.4 CHANGES

5.5 RECEIPT

5.6 DISTRIBUTION

5.7 CONTROL AND PROTECTION OF

SEC ENGINEERING DATA

5.8 DOCUMENTS AND RECORDS ENTERS

5.9 PROJECT RECORD BOOKS

5.10 AS - BUILT DRAWINGS


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SECTION DESCRIPTION

SECTIONS REVISION

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6 PREPARATION AND MANAGEMENT SYSTEM OF

CONSTRUCTION WORKS QUALITY PLAN X

6.1 SCOPE

6.2 REPONSIBILITIES

6.3 INSPECTION AND TEST PLAN(ITP)

6.4 MANAGEMENTS OF INSPECTION POINTS

6.5 TEST AND INSPECTION DOCUMENTS

6.6 TEST AND INSPECTION SCHEDULE AND STATUS

7 SITE TECHNICAL SUPPORT SERVICES X

7.1 SCOPE

7.2 RESPONSIBILITIES

7.3 PROCEDURES

8 QUALITY CONTROL ACTIVITIES X

8.1 GENERAL

8.2 INSPECTION AND TEST PLAN MANAGEMENT

8.3 QUALITY CONTROL ACTIVITY COORDINATION

8.4 INSPECTION AND LOG BOOKS


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SECTION DESCRIPTION

SECTIONS REVISION

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8.5 CONSTRUCTION MATERIAL CONTROL

8.6 DOCUMENT CONTROL

8.7 PROJECT RECORDS BOOKS

8.8 Quality Records Compiling and Filing System

8.9 SPECIAL PROCESS PROCEDURES

8.10 MANAGEMENT OF MEASURING AND

TESTING EQUIPMQNT

9 QUALITY ASSURANCE ACTIVITIES X

9.1 GENERAL

9.2 MANAGEMENT REVIEW

9.3 DOCUMENT REVIEW

9.4 QUALITY AUDITS AND QUALITY SURVEILLANCE

9.5 NON-CONFORMITIES

9.6 PREVENTIVE/CORRECTIVE ACTIONS

9.7 PERSONNEL QUALIFICATION AND TRAINING

9.8 STATISTICAL TECHNIQUES


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SECTION DESCRIPTION

SECTIONS REVISION

STATUS

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10 CONTROL OF NON-CONFORMANCE PROCEDURE X

10.1 SCOPE

10.2 OBJECTIVE

10.3 REFERENCE


10.5 PROCEDURES

PART – II

QUALITY PLAN FOR PROCUREMENT &

MATERIALS MANAGEMENT

11 PROCUREMENT PLAN X

11.1 SCOPE AND PURPOSE

11.2 REFERENCE

11.3 BKC MATERIAL SUPPLY PORTION


11.5 PROCUREMENT PROCEDURE

11A MATERIALS MANAGEMENT PLAN X

11A.1 SCOPE AND PURPOSE


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SECTION DESCRIPTION

SECTIONS REVISION

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11A.2 CORRELATION WITH OTHER

PROCEDURES/DOCUMENTS

11A.3 RESPONSIBILITIES

11A.4 MATERIAL IDENTIFICATION AND TRACEABILITY

11A.5 RECEIVING INSPECTION OF MATERIALS

11A.6 STORAGE

11A.7 PROTECTION AND PRESERVATION OF

MATERIALS DURING STORAGE AND

CONSTRUCTION PERIOD

11A.8 ISSUING AND INVENTORY CONTROL

11A.9 OVERAGES, SHORTAGE DAMAGES REPORT

11A.10 MATERIAL RETURN FROM SITE STORE

PART – III

QUALITY PLAN FOR CONSTRUCTION &

PRE-COMMISSIONING PLAN

X

12 CONSTRUCTION AND PRE-COMMISSIONING PLAN X


12.2 REFERENCE

12.3 RESPONSIBILITY


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SECTION DESCRIPTION

SECTIONS REVISION

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12.4 QUALITY CONTROL PROCEDURES

12.5 HHI/SEC TYPICAL INSPECTION PLANS(ITP‟S)

12.6 PRE-COMMISSIONING PLAN


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PREFACE

This Project Quality Plan shall be used as reference during the implementation of BKC

Contract scope of HHI. Contract No. B1303A-A016. PERMANENT HOUSING

COMPOUND WORKS.

The preparation of this Project Quality Plan is correlated with BKC Established Company

Quality Manual and its Operating Procedures, which describes the Management Policies

and commitment of its resources to support the effectiveness of the Quality system

implementation in all of its business operations.

This Project Quality Plan is subdivided into three (3) parts, i.e.:

Part I Quality Management System

Describes the overall Management Functions and Quality system to be adopted

which covers organizational structures, planning and controlling of the resource

inputs and actions in satisfying the Quality objectives as set forth in the HHI

Contract No. B1303A-A016, Quality Inspection Procedure and Quality Management

System- Requirements of ISO 9001:2008.

Part II Quality Plan for Material Procurement and Material Management

Describes the Quality Control Activities during the Procurement Phase and Material

Management at Site to Assure Procured Equipment, materials & services conform

to the sub-contract requirements. .

Part III Quality Plan for Construction and Pre-commissioning

Describes the Quality Control Activities or Quality System Procedures covering


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each work phase i.e. Civil Works, Associated Civil Works, Special Works

Processes & Pre-commissioning that includes Inspection & Test Plans (ITP’s), and

the QP Management approach for the Readiness to Testing and Pre-

commissioning.

It is therefore expected that those who deal in the performance of this Contract job

shall adhere to this Project Quality Plan and thus, contribute to the attainment of

the Company’s expected quality standards and objectives of the overall Project.

Engr. CHOI SEONG KYU- Project Manager


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PROJECT QUALITY POLICY STATEMENT

BONGKYUNG CONSTRUCTION COMPANY. Is committed to maintain its proven

reliable performance with the Company and HHI for the Contract Job Execution for the

project: PERMANENT HOUSING COMPOUND WORKS in

Achieving the objectives of the Contract.

We, at BONGKYUNG CONSTRUCTION COMPANY are committed to:

1) Effective implementation of Quality Management system by involving all the

Employees and continually improve all the processes under the Scope.

2) Enhance the Customer Satisfaction by timely completion of the projects at affordable

cost.

3) Incorporate proper Training and safety consciousness in each Process.

Engr. CHOI SEONG KYU- Project Manager


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CORRESPONDENCE BETWEEN ISO 9001:2008 & THIS

PROJECT QUALITY PLAN

ISO 9001:2008

Clause No. ISO 9001:2008 Clause Description

Project Quality Plan

Sections

4 Quality Management System

4.1 General Requirements This whole of PQP

4.2 Documentation requirements

4.2.1 General This whole of PQP

4.2.2 Quality Manual This whole of PQP

4.2.3 Control of documents Sections 3, 5 and 7

4.2.4 Control of records Sections 3, 5 and 7

5 Management Responsibility

5.1 Management commitment Section iii

5.2 Customer focus Section iii

5.3 Quality Policy Section iii

5.4 Planning

5.4.1 Quality objectives Section iii

5.4.2 Quality management system planning All the Sections of PQP

5.5 Responsibility, authority and communication

5.5.1 Responsibility and authority Section iii and 2

5.5.2 Management representative Section iii

5.5.3 Internal communication All Sections

5.6 Management Review

5.6.1 General Section 9 under 9.2


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5.6.2 Review input Section 9 under 9.2, 9.3

& 9.4

5.6.3 Review output

Section 9 under 9.2, 9.3

& 9.4

6 Resource Management

6.1 Provision of resources All Sections

6.2 Human resources

6.2.1 General Sections 2 & 9 under 9.7

6.2.2 Competence, awareness and training Sections 2 & 9 under 9.7

6.3 Infrastructure All Sections

6.4

Work environment

All Sections & Project Loss

Prevention Program

Manual

7 Product Realization

7.1 Planning of product realization Sections 11 to 12

7.2 Customer related processes

7.2.1 Determination of requirements related to the

product Sections 11 to 12

7.2.2 Review of requirements related to the product Sections 7 & 11 to 12

7.2.3 Customer communication Section 7

7.3 Design and development

7.3.1 Design and development planning Not Applicable

7.3.2 Design and development inputs Not Applicable

7.3.3 Design and development outputs Not Applicable

7.3.4 Design and development review Not Applicable

7.3.5 Design and development verification Not Applicable


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7.3.6 Design and development validation Not Applicable

7.3.7 Control of design and development changes Not Applicable

7.4 Purchasing

7.4.1 Purchasing process Section 11

7.4.2 Purchasing information - do -

7.4.3 Verification of purchased product - do -

7.5 Production and service provision

7.5.1 Control of production and service provision Sections 4, 6 & 11 to 12

7.5.2 Validation of processes for production and service

provision Sections 11 to 12

7.5.3 Identification and traceability Section 11 & 11A under

11A.4

7.5.4 Customer property Section 11A under

11A.5.2

7.5.5 Preservation of product Section 11A under 11A.7

7.6 Control of monitoring and measuring devices Section 8 under 8.10

8 Measurement, analysis and improvement

8.1 General Section 9 under 9.2 &

Sections 11 to 12

8.2 Monitoring and measurement

8.2.1 Customer satisfaction Section 8 under 8.4 &

Sections 11 & 12

8.2.2 Internal audit Section 9 under 9.4

8.2.3 Monitoring and measurement of processes Sections 11 to 12

8.2.4 Monitoring and measurement of product Sections 11 to 12

8.3 Control of non conforming product Section 9 under 9.5 & 9.6


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8.4 Analysis of data Sections 8, 9, 11 to 12

8.5 Improvement

8.5.1 Continual improvement Section 9

8.5.2 Corrective action Section 9 under 9.5 & 9.6

8.5.3 Preventive action Section 9 under 9.5 & 9.6


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1. GENERAL

1.1 SCOPE AND OBJECTIVE

This document summarizes how BKC shall manage the Contract Agreement Work Scope

based on the Quality System as set forth in their Company‟s Quality Manual and

correlated with HHI / SEC‟s Documents which identifies the scope of work.

BKC Quality Management System document‟s structure, this Project Quality Plan

describes the implementing procedures of the Company‟s general policies and procedures

covering the management functions of organizing, planning and controlling the required

resource inputs and specific actions to meet the objectives of the Procurement and

Construction activities of the Project pursuant to quality requirements.

The prime objectives of this Project Quality Plan is to ensure effective planning and

facilitate understanding of the specific quality practices, resources and sequence of

activities relevant to all phases of the Contract Job and thus, smoothly implement the plan

in timely manner and meet the overall quality goal of this project.

1.2 QUALITY PLAN MANAGEMENT

This document has been prepared by the QA/QC Department of BKC with the necessary

technical assistance from the key members of the Project Team.

It has been initially reviewed and approved by BKC Corporate QA/QC Manager and

authorized by the Project Manager and subject for final review/approval by the HHI / SEC

Authorized Representative and subsequent implementation by all concerned.

This Project Quality Plan shall be updated for whatever HHI comments and / or

improvements, and amendments / revisions shall be documented and duly approved by

the HHI / SEC. All new issues shall be provided to all concerned “Controlled Copy”

Holders of the Project Quality Plan as part of Document Control.


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1.3 GENERAL PROJECT SCOPE OF WORK

The following WORKS shall be performed in accordance with the Contract Agreement

between BKC and HHI.

The General Project Scope of Work describes the contract coverage of work and Job

specifications drawing list and Standards. It also identifies all processes, operations

deemed as necessary for the execution of the Architectural, Civil, Electrical, and

Mechanical activities involved in the PHC AREA Scope as described in the Scope of work.


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1.4 TERMINOLOGY AND DEFINITIONS

Words used in this Project Quality Plan and related Inspection Specification shall

have the same meaning or intent as correlated to ISO 9000:2000 (Quality Management

System – Fundamentals and Vocabulary).

1.4.1 CLIENT

Saudi Electricity Company (SEC)

1.4.2 HHI

Hyundai Heavy Industries Company (CONTRACTOR)

1.4.3 BKC

BONGKYUNG CONSTRUCTION CO, LTD.(SUB-CONTRACTOR)

1.4.4 VENDOR

Means any person, company, manufacturer, supplier or sub-supplier having a

contract or purchase order with HHI and /or BKC, for the supply of materials or

equipment for facilities, including, when necessary, services in connection with

the installation, testing, pre-commissioning and commissioning of any materials

or equipment.

1.4.5 QAS

Means Quality Assurance specification

1.4.6 CQP

Construction Quality Plan

1.4.7 QC

Quality Control specification

1.4.8 MILL TEST CERTIFICATE/ REPORT

Means a document generated by a manufacturer of material, which completely

identifies the supplied material and the specification under which it was produced


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and reports all required test values necessary to demonstrate compliance with the

specification.

1.4.9 REVIEW

Means examination of documentation issued by others for completeness

and correctness i.e. Inspection Reports, Technical Submittals, Mill Certificates, etc.

1.4.10 HOLD (H) POINT/S

Means the Hold (H) point/s during the stage of Inspection/Test activities

whereby Contractor Inspector cannot proceed with the inspection or test

without the presence of HHI/ Inspector/SEC Inspector. Notification to Main

Contractor/Company is required through written "Request for Inspection (RFI)

1.4.11 WITNESS (W) POINT/S

Means the witnessing (W) points during the stage of Inspection/Test activities

whereby Contractor Inspector may proceed with the scheduled inspection

and/or test after notifying HHI / SEC through written Request for Inspection

(RFI).

1.4.11 INSPECTOR

Means the person acting as the authorized representatives either by

Vendor, Sub Contractor, and Main Contractor, SEC or third party

commissioned by any of the contractual parties dispatched to the inspection

site to undertake inspection activities in their respective behalf

1.4.12 INSPECTION

Activities such as measuring, examining, testing, gauging one or more

characteristic of a product or service and comparing these with specified

requirements to determine conformity.

1.4.13 NON- CONFORMITY

The non-fulfillment of specified requirements.


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2. PROJECT ORGANIZATION

2.1 GENERAL

The Project Organization to be adopted in this contract job is shown on the appendix of

this Section. This Project team is linked to BKC Head Office in JEDDAH to provide

technical and functional supportive roles to the project needs.

At BKC JEDDAH Head Office, the Key Personnel to provide authoritative and

supportive roles for this contract job are as follows:

2.1.1 Corporate QA/QC Manager

This position is responsible directly to the Project Manager of BKC for the

overall design and preparation of appropriate Quality Control and Assurance

Program for any contractual services or job of BKC to its clients and its

implementation.

He has the full authority to exercise all the necessary actions for the

management to support the QA/QC group in attaining all the Quality Assurance

objectives cited in this section. He is also reviewing the audit results periodically

to verify the effectiveness of Implementation of Quality System.

He is responsible for setting-up and implementation of the Quality System

requirements of the project in accordance with the Contract Agreement

Provisions. He monitors the status of Non-Conformance Reports and Customer

Complaints for the effective closure of the same. The QA/QC Manager is also

responsible for the review of Project Specification Quality System as per

Contract Agreement.

2.1.2 Engineering Manager

Collaborates with HHI in ensuring that all the contract technical documents (Job

Specifications) issued to BKC are of the latest revisions. He provides technical

Support to the Project Construction Team. Refer to Procurement Plan for

detailed responsibilities.


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2.1.3 Procurement Manager

Is responsible for the management of procurement activities to meet the specific

material specifications of the project and serve them in timely manner. Refer to

section 11 Procurement Plan for detailed responsibilities.

At site, Project Management Team of BKC in coordination with HHI/SEC has the

overall authority to administer the Project Site Management and fully supported

by the project key personnel, i.e.:

2.1.4 Site/Construction Manager

Has the full authority to administer the project scope undertakings. He

coordinates with HHI on all matters covering Project Contract Management

Collaborates with BKC functional Units, i.e., Procurement, QA/QC, Personnel,

Finance & Admin, Equipment, and Operation Planning & Resource Control for

all required supports to the project.

2.1.5 Site Superintendent/ Supervisor

Overall-in-charge of all Work Production Areas assisted by Work Foreman for

each engineering discipline or work phase.

2.1.6 Planning & Scheduling Engineer

In-charge of Work & Resource Planning and Scheduling, and Work Progress

Tracking and Accomplishment Reporting. Also in-charge of the preparation of

Progress Accomplishment Reports and Maintenance of Work Accounting

Ledger Books.

2.1.7 Material Management officer

Supervise Material Management at site. Refer to Sec. 11.A of the PQP for

detailed responsibilities.

2.1.8 Technical Support Services Supervisor (Resident Engineer)

In-charge of Site Technical Supports/ Coordination, Document Control and As-

built Drawings mark-ups. Specific services are mentioned in Section 7 of this


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PQP.

2.1.9 HSE Officer

In-charge of Safety, Health & Environmental Management Implementation at the

Project site.

2.1.10 Administrative Assistant/Secretary

In-charge of administrative functions for Personnel and secretarial works.

2.1.11 Project QA/QC Manager

Manages the implementation of Project Quality Plan and Quality Control

Procedures, direct all QC Supervisors/ Inspectors, prepare Two Week Look

Ahead Inspection Activities and will be at project site on full time basis and

coordinates with Corporate QA/QC Manager at H. O.

2.1.12 QC Engineer

Are the trained Engineer for each work discipline, who directly conducts

inspection, witness testing and monitoring of the product, fabrication and

installation process. They gather and maintain on orderly records necessary

during inspection and testing based on the pre-designed Inspection and Test

Plans (ITPs) or (ITP) and Method of statements. They are normally assigned at

site when their services are needed.


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2.2 QA/QC Personnel Changes

Pursuant to Contract Agreement, BKC shall advise HHI at least thirty (30)

calendar days in advance for any replacements to QA/QC Personnel that are

scheduled for vacation, emergency leave, and temporary assignments or caused

by illness, employment termination and resignation.

3. REFERENCE DOC/PROJECT DOC/DELIVERABLES

3.1 GENERAL

This section generally describes the documents to be issued by HHI at this

Project to BKC as the base reference of contract job execution to attain the

objective of safety, quality standards and design requirements of the project. It

also includes the documents to be developed and submitted by BKC in the form

of Quality Plans and Procedures, submittals, etc. pursuant to ISO 9001:2008

Quality Management System (QMS) and all other deliverables required by the

contract provisions.

3.2 REFERENCE DOCUMENTS

3.2.1 Issued by HHI

As mentioned in the Contract HHI and SEC the base reference documents consist but

not limited to the following:

a.) All Relevant Contract Agreement Specifications etc.

b.) IFC or Approved Drawings.

c.) SEC Standards, Specifications and procedures etc. as applicable to this project.

d.) Applicable international codes and industry practices

All work on this Project shall be completed in accordance with the latest issue of SEC

Standards as applicable, upon award of the project including but not limited to the above

documents cross-referenced therein.


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3.3 From BKC

Project Quality Plan (This Document) which contains generally the quality management

System. specific Work Quality Plan / Inspection and Test Plan and describes the

elements of Quality Assurance and control, i.e.:

- Organization

- Reference Documents

- Construction Program Planning & Control

- Procurement Plan

- Material Management Plan

- Preparation and Management System of Construction Works

- Site Technical Support Services

- Quality Control Activities

- Corrective and Preventive Action procedure

- Quality Work Plans / ITPs of each Engineering Discipline or Work

Phase.

Manufacturer‟s Data (Drawings and Data Sheets Installation, Operation and

Maintenance Instructions, Parts list, other NMR documents, Operating

Instruction, etc.

Material Technical Submittals.

Qualification Records of Key Personnel and Specialized skilled personnel, i.e.

Welders, Critical Coating Personnel, Cable Splicer, Riggers, Heavy

Equipment Operators, etc.

Third Party Testing Agency Pre-Qualification.

Valid Certificate of Measuring and Testing Instruments.

Other submittals required by the Contract Technical Documents.

The work Quality Control Procedures (QCPs) or Method of statements which are part of

Quality Procedures Deliverables are summarized as appended in Section 12 of this PQP.


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4. CONSTRUCTION PROGRAM PLANNING & CONTROL

4.1 GENERAL

This section describes BKC methodology in the development of a workable

construction detailed schedule as required in Contract Agreement, HHI Works.


BKC Site Planning and Scheduling Unit shall be responsible for planning and

scheduling of work activities and required resources in the construction execution and

mechanical completion of the contract activities based on main Contractor‟s Project

Critical Milestone Dates as shown in Contract Requirements. BKC Planning and

Scheduling Engineer shall coordinate with Main Contractor for any changes on

schedules in the work phases and shall make adjustment / updating on the current

project situation. He shall also be responsible for periodical progress reporting,

schedule updating and to include delay analysis if setbacks on schedules are

encountered during the contract execution. Any revisions to the Project Schedule shall

be subject to approval by Main Contractor.

4.3 METHODOLOGY

For an effective control of project activities, the Planning and Scheduling Unit will be

using the aid of MICROSOFT EXCEL or PRIMAVERA PROJECT PLANNER

SOFTWARE for the preparation of computer operated CPM and BAR Chart

Schedules as time saving and useful tool in Project Management. The planning phase

involves the listing of tasks of job, which must be performed to bring about the

completion of the project milestones. Resource requirements for materials,

equipment and manpower are determined in this phase and duration for each is made.

Scheduling is done by interconnecting of all the necessary activities of the project in

the logical order as input to the Computer Software Program with its corresponding

early and late occurrences of start and finish dates and the computer handles

processing of the data. Control is a function, which is a periodical review of the

difference between schedule and the actual performance as the aspect of review and


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evaluation and pursuing corrective actions to prevent overall delay impact to Project

Target Critical Milestone Dates.

4.4 PLANNING, SCHEDULING, PROGRESS AND EVALUATION REPORTING

4.4.1 General

This activity is to be collaborated with HHI Planning and Scheduling Specialist

who will provide technical guidance to meet the Client‟s Scheduling and

Progress Reporting requirements.

BKC Work Schedule shall be comprised of separable portions or aggregated

levels of detail of the integrated network as follows:

Project milestone schedule (level II)

Summary level schedule (level III)

Project Control schedule (level IV)

Manpower requirements forecast

Manpower loading curve

Work analysis breakdown

All schedules, regardless of the level of detail, shall be supported by and

traceable to activities in the detailed Project Control

4.4.1.1 Construction Work Breakdown Structure (WBS) for Progress Reporting

Specific Construction Work Breakdown Structure (WBS) shall be prepared by

the P & S Engineer and submitted to HHI for review and approval, as basis of

progress evaluation and reporting.

4.4.1.2 Schedule Control and Progress Reporting

Shall follow the required contents pursuant to Sub-contractor agreement in line

with Civil Works including demolition, base course and Asphalt contract

specifications (as applicable) per BKC contract no. (B1303A-A016)


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5. DOCUMENT CONTROL AND QUALITY RECORDS.

5.1 SCOPE

This section describes the management system to be adopted for project documents

and records control covering Construction Drawings, Specifications, other relevant

project technical documents and QA/QC records to include all submittals directed to

HHI.

A close coordination between BKC Head Office and Site Office shall be observed on

issuance and receipts of approved and latest documents.

5.2 GENERAL

In general, field documents and record management shall be governed and be

handled according to the requirements of the following:

Sub-contract agreement provisions

Contract Schedules provisions

HHI-SAES-128 Security Control of SEC Engineering Data outside of SEC

This Project Quality Plan.

5.3 DOCUMENT PREPARATION

All Project related Quality documents shall be prepared by the concerned QA/QC

Engineers or Site QA/QC Manager, which will be reviewed and approved by the

Corporate QA/QC Manager and Authorized by the Project Manager.

HHI/SEC review and approval of the document shall be sought prior to Implementation.

Construction related Quality Control Procedures or Work Instructions, Forms etc. shall

be prepared/revised by the concerned QA/QC Engineer in accordance with the

construction requirement during the execution of the Project.

All the Quality System Documents shall have the revision status and the initial issue

shall be noted as „Rev.00‟ after approval, on the front sheet and on every sheet of the

Document.


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The Documents‟ identification No, (Doc. No.), Rev. No., Date and Page shall appear at

particular location on each page of the Quality System Documents consistently.

The „Controlled‟ and „Uncontrolled‟ copies of all the Quality System documents shall be

stamped accordingly.

The Draft copies shall be stamped as „DRAFT‟ and they shall not be used for

implementation or for reference purpose in other procedures or activities.

List of all Quality Documents with its revision Status shall be available in “Section and

summary status index in this PQP, which shall be prepared and maintained by the

Project QA/QC Manager, reviewed by the Corporate QA/QC Manager and approved by

the Project Manager.

The Project QA/QC Manager at Site shall maintain a separate Master list of forms with

its revision status.

5.4 CHANGES

The changes to the documents shall be carried out by the functional unit/discipline that

originally prepared, approved, and authorized the Documents unless specifically

designated otherwise. The designated functions shall be given access to pertinent

background information.

The nature of amendment/reason (description) in brief shall be mentioned in the

„Status‟ column of the cover sheet of the concerned document(s).

The amendment incorporated shall be identified by double vertical lines on right side

of the amended line, paragraph or page

When a paragraph is completely deleted, the number of the paragraph shall be

retained and the word „deleted‟ shall appear in its front and in addition to the double

lines on the right hand side of the number.

During subsequent amendments the new amendments shall be incorporated deleting

the existing double lines and paragraph(s) (mentioned „Deleted‟) and the paragraph(s)

renumbered.


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Quality Procedures, Work Procedures, Inspection and Test Plans, shall be reissued as

revision(s) after every amendment.

5.5 RECEIPT

Subsequent receipt from HHI is the responsibility of the Site Project Manager through

the Site Technical Support Supervisor.

All incoming documents/drawing transmittals for this project are to be addressed to the

Site Manager, as BKC field representative. The document transmittal notes shall be

date-stamped on the date received and registered in Log Register Book. Distribution of

receipt documents is controlled by the Document Controller for established distribution

schedule under the directional responsibility of the Site Manager. In particular, the

following shall be observed in receiving documents/drawings:

a) Check the contents of the document transmittal to confirm:

That all drawings/documents as stated were matching

That the drawing numbers, sheet numbers and revisions match those given in the document transmitted.

b) Log in all received drawings onto the computer, to include

Drawing title for all new drawings

Date of the revision

Revision Number

Document transmittal reference.

The document Log is interactive (both historical and live reference). No document shall

be deleted or deleted from the Log. When any drawing is superseded, it shall be noted

in the Log. Once the drawings/documents are registered, the Drawing/Document

Central File shall be provided a copy as the “Master Copy”, to replace superseded

revision of the previous “Master Copy” (applies to reused drawings).

One copy stamped „Superseded‟ is retained in a file for all superseded documents and

maintained by Site QA/QC Unit/Document Controller as applicable.

5.6 DISTRIBUTION

At the start of site activities, the Document Controller shall establish the document

distribution schedule (Form No: Q-014) and classify it by type and mainly divides to


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internal and external to BKC in order to ensure that the current issues of all documents

are available at the pertinent locations. This will be discussed and cleared with BKC

Site Manager and other project key staff members to include Secretary/ Administrative

Assistant, Construction Superintendents, P & S Engineer, QA/QC Engineer, Safety

Supervisor, etc.

A copy of the document transmittal shall be circulated to each concerned

Engineer/Supervisor and initialed by them to indicate their awareness of the

new/revised drawing.

The Document Controller shall do distribution of the drawing/documents as per the

Distribution Schedule as “Controlled Copy”.

The Controlled copy holders shall destroy the superseded documents when the

revised documents are issued to them.

Documents shall be distributed to all concerned through “Document Transmittal”

(Form No.: Q-017)

The document controller shall maintain both the electronic version and hard copy of

the drawing register at the same status at all times.

5.7 CONTROL AND PROTECTION OF HHI / SEC ENGINEERING DATA

All HHI / SEC Engineering Data, (those data classified and defined under SAEP-127)

are subject to proper control on its receipt, issuance and/or return/destroy after official

use by BKC authorized users.

BKC designated Resident Engineer (Technical Support Services Supervisor) shall

maintain a Document log Book/Registers of SEC Engineering Data on their dates of

receipt from HHI.

Receipt of these data shall be recorded in the log book/Register Sheets per

classification of documents/data (issued for construction/standard drawings, technical

specifications, Engineering Standards/Procedures, or any other technical information

in the form of paper, electronic copies, etc.). Entries shall include:

- Description of Data and Revision/Issue No. - Number of copies/sets received - Date received


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BKC is governed by Contract Agreement provisions covering the obligation of

contractor to prohibit for any unofficial reproduction of test data for any other purpose

except those warranted by the contract scope allowed by HHI. For this restriction, BKC

is liable to return to HHI these data upon Project Completion.

BKC shall maintain an orderly document control system in filing and issuing HHI / SEC

Engineering Data to authorized users (BKC Work Personnel, Engineers,

Subcontractors or Vendors)

All issues of these data as distributed to authorized users are recorded and controlled

in a logbook.

All authorized recipients of these Data are to be made aware of their obligation to

safeguard these data during the duration under their custody. These data should not

be allowed to remain and left in unsecured place nor seen scattered at the jobsite

exposed to risk of reaching to the wrong persons/unit or unauthorized users.

BKC file copy of HHI / SEC Engineering Data at jobsite control office shall be

maintained in orderly manner and updated accordingly to its latest revisions and re-call

those issued ones that were superseded.

At the end of the Project Contract Completion, all the HHI / SEC Engineering Data

issued to BKC shall be returned except those, which will form part of the Mechanical

Completion Documents Package to be turned-over to SEC upon Final Project

Completion. Discarded or dilapidated documents/data of no use shall be completely

destroyed with prior approval and presence of HHI Authorized Representative.

5.8 DOCUMENTS AND RECORDS CENTERS

BKC shall maintain a dedicated room/place with ample space at the site office to serve

as the Central Filing Centre of all field master files of technical Drawings / Documents.

The files shall be coded properly for easy retrieval.

Field Quality Records and documents will be filed separately under the Project QA/QC

Unit with its own “Document Controller” who will liaise closely with the Technical and

Document Control Supervisor for incoming quality related documents from HHI.

All correspondences will be filed separately under the Project Secretary Office.


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5.9 PROJECT RECORD BOOKS(Inspection Record Books)

Project QA/QC Manager will manage Field Inspection quality records. He shall be

supported by all discipline Superintendents/supervisors and QC inspectors for any

technical/quality matters to facilitate completion thereof.

All quality records emanating from BKC that needs to be signed by authority

Inspectors from HHI / SEC shall have the original copy kept by BKC, which will be later

needed during the preparation of the Inspection Record Books.

The Procurement QC Supervisor / coordinator shall be responsible for the control of

procurement and quality documents & records covering Material Technical Submittals,

Vendor's Source Inspection Assignment Package and solicitation & filings of Vendor's

Quality Inspection & Test Records as described in the relevant sections of this Project

Quality Plan.

Refer to section-8 Quality Control Activities under paragraph 8.8 for detailed

procedure in compilation & filing system of quality records for procurement and

construction, which shall form part of Inspection Record Books per SAEP 122.

5.10 AS-BUILT DRAWINGS

BKC shall maintain an active set of Construction Drawings at Site Office, which will be

used as mark-ups of any changes during the entire construction period. It will be under

the responsibility of BKC Technical Support Supervisor. The mark-up is done by

utilizing the green color for all deletions and red color for all additions or changes.

BKC shall observe all the provisions set forth in the management of As-Built Drawings

in Contract Requirements.


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6. PREPARATION AND MANAGEMENT SYSTEM OF CONSTRUCTION WORKS QUALITY PLAN

6.1 SCOPE

This section describes and outlines the system in the preparation of a Work Quality

Plan and its management. It covers the quality practices, resources required, the

planned sequential inspection, testing and documentation during each phase of

Construction process for every Work Discipline until it reached the Mechanical

Completion final stage and declares the contract job or portion of it ready for Pre-

commissioning and Commissioning.


This preparation of Work Quality Plan and its management during implementation is

vested primarily under the functional responsibility of BKC QA/QC Department and

Project Site‟s QA/QC Unit. They have the full authorities and responsibilities to perform

generally the following:

- Prepares QC Plan and Procedures for each Production Units or phases of activity

- Initiate action to prevent the occurrence of non-conformity during the job execution

- Identify and Record any quality problems during Procurement and Construction phases or all work phases.

- Verify the implementation of solution - Manage QA/QC documentation - Exercises independent freedom to visit work sites and verify full compliance

in the implementation of the Company’s Quality Management System and Procedures and specifically the Project Quality Plan.

6.2.1 QA/QC Management Personnel

QA/QC Personnel performing quality functions shall have sufficient and well

defined authority, responsibility, qualifications and organizational freedom to

identify quality problems and areas of non-conformance and to initiate,

recommend and substantiate corrective actions as required by Sub-Contract

Agreement. The detailed responsibilities and authorities of QA/QC personnel

are given in “section No. 2”.


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6.3 INSPECTION AND TEST PLAN(ITP)

BKC QA/QC Department shall utilize the suitable QC Inspection & Test Plan for each

phase of work disciplines as provided by HHI/SEC.

Based on the Issued for Construction Drawings (IFC) and Specifications, Inspection

and Test Plan shall cover the following requirements:

- Statement of specific referenced documents, i.e., IFC Drawings,

Specifications, applicable industry codes and/or specifically prepared Work

Procedures / Instruction / Methods as basis for job execution and

acceptance criteria during testing and inspection. Procedures referred as

acceptance criteria in ITPs can be either relevant HHI/SEC procedures or

BKC approved procedures, as applicable.

- Responsible persons involved in work execution and intervention of BKC,

and HHI Inspectors.

- Work Specifications (as described in job technical specifications) and Pre-

Qualified Procedures (e.g. Welding procedure etc.) to be observed and

followed during work execution.

- Qualification Certificates of Personnel who will perform delicate specialized

jobs like Welders, H.V. Cable Splicer, etc.

- Test Procedures to be adopted stating test medium or power characteristics

and required environmental condition.

- Dimensional control to be adopted to ensure critical dimensions and

position of interface components are met.

- Inspection Check Items during the process of installation prepared in

appropriate forms.

- Environment conditions are checked to suitableness of performing delicate

work task.

- Applicable Test Record Sheet approved for use during Test Operations for

In- process and Final Test.

- Identification of test instruments to be used correctly calibrated and set.

- After construction or installation, the work shall be subjected to all final and

inspection required by HHI/SEC specifications.


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6.4 MANAGEMENT OF INSPECTION POINTS

6.4.1 Responsibility

The Procurement QC Supervisor shall review the requisitions and purchase

orders in compliance with applicable standards and conduct material

inspections per “Section 1” of this PQP. Refer to Procurement Plan Section 11

for the procedure for Vendors Source Inspection, as applicable, The Site QA/QC

Manager and QC Inspectors quality functions shall have sufficient and well

defined authority, responsibility, qualifications and organizational freedom to

identify quality problems and areas of non-conformance to initiate, recommend

and substantiate corrective actions as required by the Contract requirements.

The responsibilities of BKC QC Inspectors are to be involved at all stages of the

constructions, as well as at requested inspection. QA/QC Unit will notify to HHI

in case their participation, as a witness is required by the Inspection and Test

Plan ITP/ITP

6.4.2 Intervention of the QA/QC Inspectors of Construction Phase

Based on the Inspection and Test Plan ITP/ITP the Specific Work Discipline

Phase (i.e. CIVIL and Associated Civil / Structural Works, etc.), the Work

Production Units involve the intervention of BKC Site QA/QC

Supervisor/Inspectors during each stages of construction. The Work Discipline

Supervisor will raise an Internal Inspection Request (Form No. Q-019) to BKC

Site QA/QC Unit whenever a phase activity is required for Inspection / testing as

shown in ITP/ITP. This Inspection/Testing to be conducted is normally a

preliminary check/test conducted by BKC QC Inspector as an internal

verification whether the phase activity is ready for endorsement to HHI

Representative/Inspector for Inspection or not. If the initial inspection is

satisfactory,BKC QC Inspector proceeds to raising an RFI to HHI

Representative / Inspector. For unsatisfactory findings, the preliminary

inspected activity will require another re-inspection after rectification had been

done on observed deficiencies as recorded in the “Inspection Disposition” space

of the Internal Inspection Request Form. A major deficiency found during the


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preliminary inspection will be covered by a Non-Conformance Report (BKC

Form No. Q-005) issued to the concerned production unit who will take

necessary corrective action on the basis of the NCR report. Proceeding to the

next stage of activities will be on-hold until the cause of rejection is rectified,

inspected a new activity and accepted.

6.4.3 Involvement of (HHI / SEC) Authority Inspectors

If the involvement of the Main Contractor/Client Inspector is required to witness

an inspection event or test, QA/QC will notify them for their presence and

involvement on disposition of inspection event and acceptance or rejection

depending on the outcome of the inspection and test conducted. QA/QC will

provide 24 hours‟ notice for required inspection during regular weekdays and 48

hours‟ notice during weekends.

6.4.4 Non-Conformance/Corrective Action Management

All deviation or deficient job result encountered during installation process are

reported to BKC Site QA/QC Manager. These deviations are analyzed and

decided for non-conformance on the contractual technical specifications. If

found not complying, it is reported and described in the Non-Conformance

Report. BKC shall submit a copy of each NCR to Client within 48 hours as

required by The Company Contract Requirement. BKC shall respond to all NCR

issued by HHI in writing within 48 hours of receiving notification of non-

conformance, including proposed corrective action. All NCRs shall be

documented on a Non- Conformance Report Log, which is to be submitted at

the regular progress meeting. Refer to PQP section 10 under par. 10.5.1 and

10.5.2 for detailed NCR Procedure, which also described root cause analysis

and preventive action.

6.4.5 Disposition and Corrective Actions

BKC QA/QC Supervisor shall explain the disposition and draw corrective

resolutions. The Non-Conformance Report is forwarded to the HHI QC

Department for technical review of its recommended disposition.


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6.4.5.1 Levels of Disposition of Non-Conforming Materials and/or Work item

Disposition for non-conformance shall be decided on the following levels of

courses of action pursuant to Schedule 'Q' par. 7.5.

- “Proceed or Use as is”

Disposition can be pursued if it can be concluded that the degree of

discrepancy cannot result to negative functional or operational use of the item

without adverse impact to performance, reliability and safety. This shall be

accepted after inspection by HHI/SEC. If item is considered usable, BKC shall

submit application for a waiver to HHI / SEC. The item may be used in the

WORK only if HHI / SEC approve the waiver.

- “Rework”

Disposition may be imposed if redoing the process of work by the right

method within the allowable tolerance will not alter the integrity of the

materials on its strength workability and operational. This shall be subject to

re-inspection and acceptance by HHI / SEC.

- “Repair” / Correction

Disposition can be imposed within the level of non-conformance does not

affect the reliability and safety of the item. These items found accepted after

re-inspection may be used in WORK.

- “Re-graded”

This disposition can be effected if it can be concluded that the degree of

discrepancy cannot result to negative functional or operational use of the

item, if it is re-graded to suitable alternative level that ensures the

performance, reliability and safety.

If item is considered usable, BKC shall submit application for a waiver to HHI /

SEC. The item may be used in the WORK only if they approve the waiver.

This shall be accepted after Inspection by HHI / SEC.

- “Rejected”

This disposition shall be governed by Contract Provisions covering rejected

items not complying with SEC‟s standards. The following shall be observed.

BKC shall segregate all other non-conforming materials and assemblies to


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a clearly designated rejection site. BKC shall track and Control all rejected equipment or materials until it is re used, exported or

otherwise disposed of. All rejected materials shall be disposed of in

accordance with SEC‟s requirements. Disposition of all rejected material

shall form part of the Quality Management Reports.

6.4.5.2 Hold Marks

For adequate control of encountered non-conformance item by the QC

Inspector during performance of work activity,„ HOLD‟ is put on the item and

it can only be removed by the QC Inspector after deficiencies had been

corrected or rectified to required acceptable standards. Rejected items are

marked “REJECTED” and taken away from the production areas.

6.4.5.3 Corrective Actions

The QC Inspector shall emphasize on the Non-Conformance Report the

required rectification to be done on the Non-Conforming Items to avoid

repetitions of the defective or Non-Conforming work items. Corrective

actions done are monitored accordingly by the QC Inspector.

6.5 TEST AND INSPECTION DOCUMENTS

6.5.1 Scope

It defines the contents of the reports and certificates of Inspection Checks and

Tests to be implemented by BKC.

6.5.2 Contents of documentation

The documentation in the appropriate designed form shall include the following

information and/or data:

- Item being tested

- Type of check, inspection or test

- Person performing the test

- Instrument identification number (wherever applicable)

- Witness

- Referenced documents for item identification and position

- Results of tests

- Applied test data and outputs


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- Area/Location – signature of BKC/ HHI / SEC Inspectors

6.5.3 Test and Inspection Certification Documentation

a). Request for Inspection RFI/QMIS

b). BKC Classification of Quality Control Forms

c). Installation Checks and Tests for Correct Mechanical Installation

The document certification forms devised by BKC and to be used are titled and

coded as:

Quality Control Forms (like Installation Checklist, Test Report / Record) are

forms used for visual/physical confirmation checks or for recording test

results.

6.5.4 Testing and Pre-Commissioning Forms

HHI/SEC Forms and/or BKC approved forms will be used during the final stage

of Testing & Pre-Commissioning of the facilities covered under this contract job.

These forms will be made available to BKC from the HHI / SEC Project

Commissioning Team.

6.6 TEST AND INSPECTION SCHEDULE AND STATUS

As part of quality control planning, BKC Construction QA/QC Supervisor

prepares Three Week Look Ahead Test and Inspection Schedule in

collaboration with the Work Planning & Scheduling Engineer and the Work

Production Units. Based on the updated Project Work Activities Schedule, the

Construction QA/QC Supervisor prepares the relevant Inspection Check and

Test activities. The actual date of each Inspection and Test activity shall be

confirmed through Request for Inspection (RFI)/QMIS for each Inspection and

Test activity that required presence of HHI/SEC representative/ Inspector for

their witnessing.

Status of performed test and related results will be monthly issued. This report

will make reference to (as applicable):

Other test necessary for status reporting


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7. SITE TECHNICAL SUPPORT SERVICES

7.1 SCOPE

This section describes the functions of Technical Support Services unit at the project

site. These technical services shall cover generally the following:

To coordinate with HHI for all technical matters covering design changes, technical queries, etc.

Performs interface management between site organization and Home Office Engineering Department.

Prepares and Controls Field Material Requests for HHI supplied materials in co-ordination with BKC Material Supervisor.

Prepares and/or reviews, and controls Material Requisitions (MRs). Prepares proforma of “Purchase Requisitions” for materials showing

Non- Material Requirements (NMRs) covered by MRs for reference use by Procurement Department (H.O.) for Vendor‟s solicitation. This is collaborated with Engineering Department (H.O)

Coordinates with Engineering Department Manager (H.O.) on the preparations and control of “Purchase Requisition” submittals being endorsed to HHI.

Shop Drawing Preparations required for facilitating construction activities only.

Mark-ups on a living set of construction drawings to reflect the current “as- built status” of the facilities under construction

Conducts surveillance checks in determining the soundness of IFC drawings or the so-called “Constructability” if free from any conflicts with interfacing work disciplines. This initiative is collaborated with the concerned Discipline Work Supervisors.

Raising “Request of a Waiver” in case departure from IFC drawing and/or specification cannot be avoided.

Document control covering an orderly system of receiving / Issuing and filing of all Engineering Technical Documents and Security Protection of Sensitive Company Engineering Data.

Management and raising of Site Technical Query on technical problems encountered which requires disposition / clarification from HHI.

Technical approval of non-conformance resolution before seeking HHI final disposition.

Manages Punch list Resolution.

7.2 RESPONSIBILITY

The Site Technical Support Services Supervisor (Resident Engineer) is responsible of

performing the above scope of technical services in coordination with BKC Engineering

Manager (B.O.), Site Construction Superintendent/Supervisors and HHI. He will be

assisted by technical staff members and/or draftsmen to perform effectively these


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technical services functions to include the scope of Technical Services as described in

Contract Schedules/Scope of Works.

7.3 PROCEDURES

7.3.1 Shop Drawings Preparation and As-Built Drawings Management

Shop drawing preparation required only to facilitate fabrication and construction activities shall include title block indicating shop drawing nos., reference drawing / documents, description, revision no., date and approving internal authorities. All shop drawings prepared by the responsible draftsman shall be checked by Supervisor and reviewed by the Site Manager for endorsement to main Contractor for final review & approval (only on cases if ever warrants.)

Note: All shop Drawings shall be controlled in a log sheet Register

for monitoring of subsequent changes/revisions.

All drawings listed in the drawing control document shall be included in the “as-built” set. Drawings shall be marked in red for additions or

changes, and green for deletions. All as-built drawings shall be in accordance with HHI drafting manual and SEC Project Specification.

The assigned draftsman responsible for the maintenance of required sets of IFC drawings for mark-ups and current as-built conditions ensures that;

The Drawing Control Index List is updated to the latest revisions

.

Mark-ups on a live set of IFC drawings, MTOs and data sheets

are on latest revised issues to include those instructions from

BKC and Main Contractor covering field modification/changes

and/or actual conditions.

As-built mark-ups also include those revisions initiated by BKC and its Vendors and/or with official concurrence from HHI.

Upon completion of the contract job and prior to issuance of Mechanical Completion Certificate (MCC), BKC shall submit this live set of the marked-up as-built drawings, MTOs and data sheets to HHI for review/comments and corrections needed.

Any corrections/comments raised by HHI are incorporated in the final reproduction of as-built mark-up drawings.

After initiation of changes, all As-built drawings shall be submitted to the Main Contractor endorsement to HHI in accordance with SEC Project Specification.


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The As-built drawings shall incorporate and mark the location of under-ground obstructions, existing pipelines, and power cables in the vicinity work sites encountered.

7.3.1 Management of Site Technical Query

7.3.1.1 General

Site Technical Query shall be raised by BKC, which normally arises during

contract execution on the following case situations,

Verification on some conflicts and/or ambiguities between AFC Drawings and Specifications

Lack or absence of Construction detailed designed drawings.

Encountered restraints or extreme difficulties in work place where AFC Drawings is not workable, i.e. space clearance limitation, obstruction to existing facilities, etc.

Violation of safety and/or maintenance code provision if AFC Drawing or Job Specification will govern, thereby a clarification is needed.

Other matters that are deem necessary to seek clarification for HHI / SEC before work execution.

7.3.1.2 Procedure of Endorsement

A Standard “Site Technical Query” Form (Q-007) is prepared to be filled-up

by the Originating BKC Discipline Engineer/Supervisor for submission to HHI

through BKC Technical Support Services Unit.

a) The Query‟s portion covers the following:

a).1 The Query‟s Brief Subject item

Brief description of the item as the subject of the query, example “Relocating of Lighting Post at Facility Plant A”.

a).1.1 Referenced Contract Document/Dwg. No.

The referenced document number where the subject of query is encountered.

a).1.2 Site Location/Unit System

The statement of place where the problem is encountered.

a).1.3 Statement of Query

A complete description of the case situation, and can be appended by an attached sketch drawing and technical narration.

a).1.4 Impact to other Discipline

State if there is such and cite the effect in detail.

a).1.5 Recommended Solution

A presentation of appropriate scheme to correct the problem situation


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indicating also if there’s impact of Additional or none.

a).1.6 The originating BKC Discipline Engineer/Supervisor shall sign the Site

Technical Query and noted by the Site Manager for endorsement to HHI and

possibly SEC for disposition.

7.3.1.4 Disposition by COMPANY

The submitted Site Technical Query to HHI shall be reviewed and acted

upon on its disposition by the appropriate levels of their management

authority depending on the degree and impact of such change in the project.

7.3.1.5 Resolution

Resolution to the Site Technical Query shall be fed-back by HHI to BKC on

returned Site Technical Query with filled-up comments and/or disposition to

subject query for BKC implementation.

7.3.2 Management of Waiver Request

7.3.2.1 General

This section describes the procedure and documentation requirement in

pursuing a request for Waiver on Design, Standards or Specification

requirements by BKC from HHI.

The purpose of a Waiver Request is to seek a prior documented

authorization from HHI whenever BKC decides to depart or deviates

significantly from the specified contract requirements, i.e.:

Changes in allowable tolerances

Change in material sections and/or composition (for BKC Supplied Portion)

Changed in the Job Specification Procedures

Proposed simplification of System Designed Installation Deletion of redundant design

Other changes that will depart from the original Contract’s Job

Specification

7.3.2.2 Procedure of Endorsement

A standard Form for “Request for Waiver of SEC‟s Standards or

Specification Requirements” is prepared (see Appendix to this section) to be

filled-up by the originating BKC QA/QC Supervisor and approval

endorsement of its Construction Site Manager This waiver request shall be


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endorsed to HHI.

The Waiver‟s Particular shall indicate the following:

Referenced Standard or Specification Affected

Statement of Requested Waiver

Brief statement of what should be waived

Justification to Waiver

A rational explanation to justify or give merits to the waiver or proposed change from the SEC’s Standard or Specification

requirements. The originating BKC QA/QC Supervisor shall sign the waiver Request

and forward it to the Construction Site Manager for endorsement to HHI.

7.3.2.3 Review and Disposition by HHI/

The review and disposition of Waiver Request by HHI shall be in

accordance with SEC Project Specification which is normally endorsed by

the Project Manager of the originating organization represented by HHI.

8. QUALITY CONTROL ACTIVITIES

8.1 GENERAL

During the contract job execution, BKC QC activities will be performed in accordance

with this Project Quality Plan, which are in conformance with HHI Contract Agreement.

BKC shall perform the following QC activities:

a). Material Control, preservation and handling as elaborated in this Project Quality Plan, Section 11, Material Management Plan

b). Adherence to all required NDT / NDE procedures and other QC procedures as referred in the Work QCPs and Inspection and Test Plans (ITPs) / ITP.

b).1 Quality Control Activity Executions i.e. Civil and Associated Civil Works. b).2 Management of Laboratory (personnel, equipment and activity) b).3 Pre-Commissioning Works Quality Control Activities

8.2 INSPECTION AND TEST PLAN MANAGEMENT

8.2.1 General

BKC shall ensure that all necessary resources and quality control initiatives are made

available and/or performed based on the Work QCPs and ITP.

a) Inspection and Test Activity Planning, Scheduling and Implementation, and


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QC Reports and Coding The detailed procedure is comprehensively explained in this Project Quality

Plan Section 6, Preparation and Management of Construction Work Quality

Plan specifically under Paragraph 6.4 and 6.5.

8.3 QUALITY CONTROL ACTIVITY COORDINATION

BKC shall perform the required QC co-ordinations among its subcontractors / vendors.

The prescribed attendance of BKC representatives during coordination meetings (kick-

off, regular and special meetings) shall strictly be adhered.

BKC shall ensure attendance of SEC representatives on all Hold Points and Witness

Points as per relevant ITP / ITP on Construction Phase by raising RFI at QMIS least 24

hours during regular days and 48hours during weekends before the scheduled date of

witnessing.

On Procurement Phase, HHI is notified to minimum of 5 working days for supplier /

Vendor ITP's inspection witness and hold points as per Contract Provisions.

8.4 INSPECTION LOG BOOKS

BKC Site QA/QC Supervisor shall review logbook entries on daily basis and pursue

immediate resolutions or corrective actions on any observed negative remarks.

BKC shall prepare weekly status report of logbook action, items pertinent to observed

weak areas or deficiencies to be rectified, which is to be highlighted during Site Weekly

Coordination Meeting with Main contractor.

8.5 CONSTRUCTION MATERIAL CONTROL

Refer to Section 11 of this Project Quality Plan for detailed procedure of material

control in compliance with SEC Material Control requirements.

8.6 DOCUMENT CONTROL

Refer to Section 5 of this Project Quality Plan for BKC Document Control Management.

BKC shall abide on the QC activities in the form of ITP / ITP or Commissioning Plan for

“PERMANENT HOUSING COMPOUND AREA” Testing, Pre-Commissioning and


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Commissioning Work, which is governed by SEC Project Specification. Refer to

Section 12.6 for the management approach.

8.7 PROJECT RECORD BOOKS(Inspection Record Books)

8.7.1 General

BKC shall follow the guidelines set forth in SAEP 122 (Project Records) on the mode of

preparation of gathering the contents and indexing of the Inspection Record Books,

which will be eventually part of the final documents to be transmitted to Saudi Armco

during the Project Completion period and / or one (1) month prior to Plant Start-up.

Basically, the following shall be observed:

▶ Inspection Record Books- The contents shall generally include S e l e c t e d Drawings, supplier information, inspection and test records, etc.

The completed Project Inspection Record Books shall be bound in accordance with

Drawing Number specified by the Company.

The identification of the Project Record Books shall be identified by the equipment

plant number, the name of the facility and the Project record number.

The assembly of the Project Record Books (Inspection Record Books) by section shall

follow the indexing shown in COMPANY Standard Drawing, as applicable per Plant

Facility. This indexing shall be agreed and discussed between HHI and BKC later

which should be correlated with the Construction drawings and quality records

covering those test & inspection activities mentioned in the Project Quality Plan and

approved Vendor's Inspection Assignment Packages shall form part of the contents of

Inspection Record Books.

The procedure of gathering and compiling the quality records during the course of

contract job execution is described hereinafter (section 8.8.2 & 8.8.3).


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8.8 Quality Records Compiling and Filing System

8.8.1 General

From the commencement of the contract job, BKC- PHC Site QA/QC Unit shall

organize and maintain adequate space at the site office equipped with enough shelves,

cabinets and necessary folders to be used and dedicated only for filing Quality

Records in an orderly manner and easy traceability and retrieval.

8.8.2 Procedure

8.8.2.1 Compilation of Quality Records, Storage and Retention

a-1. During Procurement Stage

All inspection and test records conducted at Vendor's source by BKC

assigned QC Inspector shall be compiled by the respective QC Inspector

and submitted to BKC Procurement QC Supervisor who is responsible for

consolidation and filing to its respective Inspection Record Book.

a-2. During In-Process Construction / Installation

All inspection and test reports / records and relevant document being used

while in the process of job construction and installation are compiled in

provisional book files per job work disciplines and work areas in accordance

with the Inspection and Test Plan as prepared for the specific project. These

will be the sourced back-up quality record documents to be used for the next

milestone phase of the project when it reached the Plant System Testing and

Pre-Commissioning stage prior to Mechanical Completion. These quality

records are filed with proper book identification and safely stored in shelves /

cabinets for easy retrievable or traceability. Original copies of these quality

records shall be filed in their assigned book files.

a-3. During Plant System Testing and Pre-Commissioning Prior to

Mechanical Completion.

All plant system test and pre-commissioning quality records shall be

organized in accordance with the Plant Facility / System Mechanical

Completion Checklist Packages which will form part of the whole project‟s Pre-

Commissioning Plan.

Relevant in-process installation quality checks and test records required to

form part of the Mechanical Completion Checklist Package per Plant System

shall be in the form of “migrated photo copies” in order to retain the original

copies intended for Project Inspection Record Books on a separate indexed

form & filing.


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a-4. Pre-Commissioning / Commissioning Inspection Record Book

(Project Quality Records)

The final Quality Record documents are packaged based on agreed

indexing and book packaging to be agreed later with HHI.

b. Readiness of Quality Records for System Pre-Commissioning

Package Preparation

All pertinent inspection and test records shall be ready from BKC for System

Test Package preparation prior to whole or part of Plant System Facility to be

pre- commissioned and eventual commissioning. This System Test Package

preparations as part of turn-over procedure will be a joint undertaking of the

whole project team represented by HHI.

c. Distribution and Filing

One completed copy of Inspection Record Books shall be forwarded to

theInspection Dept. for review / acceptance and distribution to the appropriate

Inspection Unit.

The Final copy after review shall be produced to the required number of sets

(SAEP-122) and submitted to HHI. BKC shall retain one (1) copy for filing.

d. Quality Records Storage and Retention All Quality records as mentioned in above paragraph 8.8.2 (a) shall be stored adequately safe, legible for traceability and irretrievability which is made available for evaluation by HHI and / or representatives during and after the Contract period as agreed upon. After the project final completion, one (1) set of all the Project Quality Records are maintained in BKC JEDDAH Head Office.

Archive room for a retention period of Two (2) years or as required by HHI / SEC whichever is longer.

8.9 SPECIAL PROCESS PROCEDURES

As required by the Company Contract Requirements, BKC shall establish quality

procedures for special process activities associated with the contract Works such as

coating application, welding, cable splicing/termination, concrete batching, cable

conduits seals, cleaning and specific NDT/NDE that are required by the job

specifications as shown under table.


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Code

Special Process

Work

procedure

Approval (A)

or Review

(R)

Required

Qualification

Procedure

Approval

Required

Personal

Qualification

Approval

Required`

Welding & Brazing A Yes Yes


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Non Destructive testing / Examination

A Yes* Yes

Concrete & Asphalt Mix

Design

A No No

Concrete Installation R No No

Structural Bolt

Tensioning

R No No

Refractory Installation A No No

Coatings A No No

8.11 MANAGEMENT OF MEASURING AND TESTING EQUIPMENT

8.10.1 General

Pursuant to the Contract Agreement, BKC shall observe proper control of its

measuring and testing equipment to ensure certainty is known and consistent with the

required measurement capabilities.

8.10.2 Responsibility

Instrument Laboratory in-charge is responsible for the control and management of

Measuring and testing equipment and ensures proper control is done per the

prescribed procedure. QA/QC Supervisor shall originate, maintain and provide all

documentation as required for the purpose of calibration.

8.10.3 Control Procedures

- All measuring and test equipment for use in BKC scope works shall be calibrated by

an outside Certified Calibration Authority/Agency duly accredited by SEC


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- On receipt of the calibrated test and measuring instruments (with validated calibration

certificate), they are recorded in the list of calibrated measuring and test equipment‟

showing also the interval of re-calibration in accordance with Vendor but not more than

six (6) months. Refer to Appendix of this Section for the appropriate Form to use.

- The QC Inspector shall check and ensure that only properly calibrated equipment is

used by personnel performing test inspection operations both in the construction field

or site laboratory.

- When deficiencies are found in equipment, the deficient equipment shall be

immediately segregated from the construction work to prevent inadvertent further use

of the equipment until repaired and/or re-calibrated.

- The list of calibrated measurement and test equipment shall be immediately updated

to reflect disposition of the non-conforming equipment.

- To the extent possible, previous inspection measurements made with the deficient

equipment shall be rechecked with calibrated equipment to verify accuracy of previous

measurement.

- All calibrated inspection, measuring and test equipment are identified with a label

sticker with its date of calibration and expiry.

- In case calibration validity of the original test instrument used cannot be verified

during a particular inspection already done, re-inspection shall be pursued using

another test instrument with valid calibration certificate.

9. QUALITY ASSURANCE ACTIVITIES

9.1 GENERAL

BKC Corporate QA/QC Manager and Project QA/QC Manager shall monitor its Quality

System Management by the following QA activities:

- Document Review - Quality Audits and Quality Surveillance - Non Conformity Management - Corrective / Preventive Action(s)


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9.2 MANAGEMENT REVIEW

Pursuant to Contract Agreement, BKC Senior Management shall conduct Management

Review. The project specific Quality System is reviewed every six (6) months to verify

and ensure that the system is effectively implemented for its suitableness. This project

Quality system review is normally incorporated in BKC Quality Management Review

Meeting held twice a year which is chaired by either the Vice President and/or General

Manager which also highlights the results of the Internal Quality Audits conducted at

the project. The Corporate QA/QC Manager prepares the agenda & outcome of the

Management Review Meeting covering the necessary action plans for quality system

improvements.The project internal audit report is the source information and/or part of

the Management Review results and recommended actions to be presented /

submitted to HHI within 14 days after the actual review date.

9.3 DOCUMENT REVIEW

In general, Document Review is a continuous process of determining that all Project

Documents are updated and properly managed. Required project documents are to be

well known and identified to its intended usage. Section 3 (Reference and Applicable

Documents) of this Project Quality Plan enumerates all the basic documents to be

referred. Section 5 (Document Control) of this Project Quality Plan describes BKC

system of document control management in the project to ensure an orderly system of

meeting the quality objectives of the project.

BKC QA/QC Manager and Document Controller shall ensure that all required

documents in the form of Project Execution Plans and Procedures, etc. are made

available for its intended usage. All project documents emanating from HHI shall be

regularly checked on its latest issues / revisions especially IFC Drawings and job

specifications which are essential referenced documents to assure of meeting the

specified job acceptance criteria.

BKC Project Manager, as the company‟s representative at site, regularly reviews the

contract documents and ensures that changes and/or deviations on actual job

executions are properly documented and covered by Change Orders to protect the

business interest of the Company.


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9.4 QUALITY AUDITS AND QUALITY SURVEILLANCE

Pursuant to the requirements of Contract Provisions, Contract WORK Phases

(Procurement & Construction) shall be subject to audit by the Auditing Authorities of

BKC with HHI participation or his nominee.

BKC Internal Quality Audit shall be performed as planned, in accordance with the

Projects Internal Quality Audit Procedure. A copy of this procedure is appended in this

section.

BKC Project QA/QC Manager is responsible of organizing and planning the internal

quality audit of the project, and assisted by the Company‟s trained auditors/Third party.

The general objective of this internal audit is to verify and confirm the compliance,

effectiveness and adequacy of the quality management system operating within the

project site.BKC/third party Quality Assurance Auditors or qualified as per Contract

Requirements, shall conduct the Internal Quality audits required by Contract

Provisions, Auditors to be assigned to perform audits are not directly involved in the

project WORK Phase operations to be audited and shall follow BKC Internal Quality

Audit Procedure.

9.5 NON-CONFORMITIES

For BKC Non-Conformities Management of its construction activities, refer to Section

10 of this Project Quality Plan, which describes comprehensively how non-

Conformances are identified, reported, and the manner of documenting its clearances

and closures. BKC QA/QC Manager is responsible for the non-conformities

management in this contract job.

NCR issued by HHI shall be resolved by BKC following the procedure.

Refer to Section 10 par. 10.5, how external sourced NCRs are resolved and cleared

by BKC.

9.6 PREVENTIVE / CORRECTIVE ACTIONS


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Corollary to non-conformities management, BKC shall implement its prepared

Corrective and Preventive Actions as described in Section 10 "Non-Conformance

Procedure" of the Project Quality Plan. In this Procedure, it explains how Corrective

and Preventive Actions are reported with illustrative examples of differentiating

between Corrective Action and Preventive Action. This is an element of the quality

system, which serves as a tool to eliminate recurrence of defects during the

construction process.

The management of Non-Conformance through preventive / corrective actions is under

the responsibility of BKC Site QA/QC Manager and shall coordinate closely with all

Work Discipline Supervisors for whatever interfaces needed to assure effective

implementation of the procedure.

9.7 PERSONNEL QUALIFICATION AND TRAINING

9.7.1 General

BKC personnel to be assigned in this contract project shall possess the required skills

qualification and experience of similar job undertakings.

The basic minimum requirements for the personnel ability to comprehend instructions,

interpret basic documents, read and communicate shall be adhered on selection and

appointing personnel to their respective functional position.

To assure smooth job execution, personnel shall be familiarized on specific project

programs and relevant documents. Examples of these are:

Project Loss Prevention Program

SEC documentation and system of coordination Project plans and programs relevant to personnel position / functions.

Development of personnel capabilities shall be enhanced by on-the-job training provided to employees.

Training on specific subject.

9.7.1.1 On-the-Job Training

As a general policy of BKC on Human Resources Development, all Work Supervisors are obliged to provide guidance and skill-enhancement to their workers and cost- effective methods or best practices in accomplishing assigned task. This can be effectively achieved through on-the-job training.


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9.8 STATISTICAL TECHNIQUES

Due to the nature of BKC business which is confine in construction services with

changing job environment and varied contract conditions, the implementation of

statistical technique on Products/services characteristic is not applicable and useful.

BKC concerns in measuring process capability are taken during interim period and/or

after completion of each project. Performances of BKC services are evaluated using

ratios, i.e.:

Man-hours expended per unit of Work or each Equipment Installed.

Average actual Revenue yielded per expended Direct Man-hour.

Actual ratio between total Expended Indirect Man-hour vs. Direct Man-hour Optional only if possible to account specifically for Major activities that will

Influence significant cost deviation to budget.

The above useful data is gathered and acquiring by the cost control unit during

the contract life deviation.

9.8.1 Statistical data is generated on the following:

Numbers of Punch list and NCRs issued by Client as indication of quality performance.

Safety Statistics record as reported monthly based on OSHA requirements.


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10. CONTROL OF NON-CONFORMING PRODUCT

10.1 SCOPE

This section describes the procedure of initiating, implementing and documenting

corrective and preventive actions as an effective means to eliminate the causes of

actual or potential non-conformities that are identified / reported either from internal or

external sources of origin. It also serves as the management procedure for non-

conformities applicable in this contract job.

10.2 OBJECTIVE

To have a clear understanding on the proper control of non-conformances and

systematic approach and documented records in pursuing and resolving corrective and

preventive actions in order to attain effectively the required or improved level of work

quality standards and thus, avoid completely any occurrences or recurrences of non-

conformities.

10.3 REFERENCE

Client's Contract requirements

Company’s Quality Manual

Company Operating Procedure for Corrective & Preventive Action Procedure


10.4.1 Project QA/QC Manager (Site Office)

Participates on advisory functions covering the investigation of identified non-

conformities and complaints through Non-Conformance Reports (NCRs), or Corrective

Action Requests (CARs) raised by the Originators and seeks/ oversees appropriate

resolutions by the concerned action persons for its remedial actions and closure.


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10.4.2 Site QC Manager / QC Inspectors

As part of their primary functions, are authorized persons for raising Non-

Conformance Reports (NCRs) to the concerned responsible person of a production or

functional unit/area where the non-conformities/complaints are identified, and required

from them to monitor actions needed for its resolutions.

The Site QC Manager is the representative of Corporate QA/Qc Manager at site to

implement this procedure at site on proper documentation and reporting required

covering encountered non-conformities at the project site.

10.4.3 Construction Site Manager / Superintendents / Supervisors

Are responsible for entertaining identified Non-Conformance items under their

respective areas and pursuing corrective and preventive actions, based on agreed or

appropriate resolutions in order to clear and close those issued NCRs.

10.4.4 Internal Quality Auditors

All pre-selected company‟s employees who are trained as internal quality auditors

whose ad-hoc responsibility is to conduct quality management system auditing to

company‟s various functional support and production areas. They are authorized by

the management to issue Corrective Action Requests (CARs) to audited areas where

non-compliance to company‟s quality policies and procedures are identified. They are

qualified as per the requirement of Contract Provisions for Quality System Auditors.

10.5 PROCEDURES

10.5.1 Identification of Non-Conformance

In accordance with Contract Requirements, BKC shall exercise proper control and

disposition of identification and documentation of non-conformances, corrective actions

and waivers of contract requirements. These non-conformances possible occurrences

are inadvertent use of design documents, materials, parts, components, services or

workmanship not conforming to the requirements of the contract.


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Source and/or areas where non-conformities are identified from the materials and/or

services supplied by BKC Vendors / Subcontractors and BKC in-process construction /

installation activities. The control and management of non- conformances on the

specific process work areas are described as follows:

10.5.2 Materials

Detection of non-conformance of materials is controlled by relevant procedures for

materials classified as levels 1, 2, 3 & 4 that are inspected at Vendors Source location

following the specific Inspection Assignment Package submitted by BKC and approved

by HHI / SEC Project Inspection Division. Level 1 does not require pre-inspection

meeting. For materials classified as level 0, inspection is done once the materials

arrived at site. Reporting and documenting Non-Conformance at Vendor's source

during in-process inspection and once it received at site is described in the proceeding

paragraph 10.5.2(b) under this section. Detection of non-conformances of all materials

received at site and segregation of non- conforming materials procedures is described

fully under section 12 of this Project Quality Plan. Levels of disposition on identified

Non-conformance per Contract Agreement are described in detail under par. 10.5.7 of

this Procedure. Disposition of all rejected materials shall be reported to HHI / SEC and

shall form part of the Monthly Quality Management Report.

10.5.2.1 In-Process Installation / Work Phase Activities

Detection of Non-Conformance of in-process installation or any phase of work activities during the process of fabrication/installation/testing occurring at the work places are primarily highlighted by BKC QC Inspectors or HHI Project Representatives/Inspectors in their course of inspections. BKC QC Inspectors or Other authorized NCR originators accomplish Non-Conformance Report (Form No.Q-005) in reporting encountered non-conformities or deficiencies.

10.5.2.2 Customer Complaints

In-order to effectively handle customer Complaints, BKC shall be pro-active to identify these non-conformities and Document its resolution using the same NCR. Client‟s Project Representatives / Inspectors usually report and document their observed non-conformities / deficiencies addressed to BKC, either in any of the following written documented forms of communication/records, i.e.:


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Client’s issued Non-Conformance Report (Client’s Standard NCR

Form) Formal business correspondence letters

Project logbooks/E.log book normally maintained at project site

Complaints rose during regular coordination or special meetings with the client and recorded in the minutes of meetings.

Construction Punch List and/or Exception List that highlights observed items of non-conformities or deficiencies to specified contract requirements when job is nearing completion. It is only confined to major ones that cover gross- violation to work/item specific criteria of acceptance and/or job specification on its observed completed stage of production/installation.

10.5.2.3 Reports of Internal Quality Audits

These are operational deficiencies or non-conformities reported by assigned internal quality auditors during internal audits to various production and functional support units. Refer to BKC internal quality audit procedure as appended to section 9 of this Project Quality Plan describing the procedure in carrying out and reporting internal quality audits.

10.5.2.4 Procedures and Forms used in identifying and reporting non- Conformities

For purpose of clarity and common understanding, there are two (2) forms to be used by BKC in the implementation of this “Corrective and Preventive Action Procedure”. These forms and its usage application are:

a) Corrective Action Request (CAR), Form No.Q-003 This form is used in documenting and seeking resolution to identified non-

compliances or non-fulfillment to Company‟s Quality Manual and Operating

Procedures (in accordance to ISO 9001:2008 Quality Management System),

which were approved and issued by management for implementation to

concerned Production Operating Units and functional support departments. For

distinction of its usage, this CAR form is intended only for use by the internal

quality auditors during the internal quality audit operations to various functional

dept. / units and project sites, which are programmed twice per year. The use

of this form is comprehensively described in BKC Project's Internal Quality

Audit Procedure; a copy is appended in Section 9 of this Project Quality Plan.

b) Non-Conformance Report (NCR), Form No.Q-005

b).1 Scope of Usage and Definitions

Like the Corrective Action Request (CAR) form, this form is used in

documenting and seeking resolution to identified non-conformities. In specific

statements, it describes the nature of non-compliances / Customer Complaints

which can be classified as:


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Non-fulfillment of a specified requirement as specifically shown on the issued for construction drawings, specifications, established standards, procedures, etc. in accomplishing a particular task/item of work, or a particular product.

Deviation from the standard or normal industry codes and practices, which in some cases are not explicitly prescribed in the pre-planned arrangement of performing a task that will lead to a defective product/job.

c). Investigation / Analysis

c).1 Customer Complaints & Non-Conformities are analyzed and investigated for the root causes of the problem depending upon the nature of Complaint i.e., whether relating to Product, Process and Quality System.

c).2 All appropriate sources of information such as processes and work operations which affect product quality, concessions, audit results, quality records, service reports and customer complaints shall be utilized to detect, analyze, and eliminate potential causes of nonconformities. c).3 The person responsible for the area is responsible for analysis of the root cause of problem in co-ordination with the person responsible/knowledgeable on the nature of Problem. c).4 Collection of data and statistical analysis shall be done where feasible. c).5 The results of this investigation shall be recorded in the “brief statement of Non-conformance” space provided in the NCR Form. A copy of each NCR shall be submitted to the Company Representative within 48 hours.

d). Corrective and Preventive Actions

The NCR highlights the Corrective Action and Preventive Action needed from

the addressee. To have a clearer understanding on the proper usage of this

NCR form to serve its purpose, the term Corrective Action and Preventive

Action are define simply as:

d).1 Corrective Action

Action to be taken to eliminate the causes of an existing non-conformity,

defect or other undesirable situation in order to prevent its recurrenceThe

corrective action required shall be determined by the person responsible for

the area based on the investigations done and shall be recorded in the NCR

form.

i) All necessary Control Mechanisms to ensure the effectiveness of Corrective Action shall also be entered in the NCR form.

ii) The NCR originator prior to the closure of the NCR shall review effectiveness of this Corrective action taken along with the control


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mechanism.

d).2 Preventive Action

Action taken to eliminate the causes of potential non-conformity, defects or

other undesirable situation in order to prevent its occurrence.The Preventive

action required shall be determined by the person responsible for the area

based on the investigations done and shall be recorded in the NCR form.

i) All practical steps / methods to implement this Preventive Action shall be described by this column to ensure that the preventive action can be implemented without ambiguity.

ii) All necessary Control Mechanisms to ensure the effectiveness shall also be entered in the NCR form.

iii) The NCR originator prior to the closure of the NCR shall review effectiveness of this Preventive Action taken along with the control mechanism.

d).3 Who are authorized to raise NCR?

The Corporate QA/QC Manager of BKC authorizes and entrusts to all

personnel under the Project's QA/QC Unit to issue NCRs to concerned

production or support units, either directly identified by them or through an

external/clients sources of complaint.

d).4 Monitoring Non-Conformance Resolution Activities & NCR Closures

To effectively handle the customer complaints / Non-conformities and to keep

track of activities covering resolutions to Non-Conformities on issued NCRs to

various addressees responsible for the Corrective/Preventive actions, Project

QA/QC Manager maintains a “Register of Non-Conformance Reports (NCRs)

and Status” (Form No.Q-015). This register shall be updated regularly to show

in summary the status of outstanding and closed NCRs at current date. The

copy of this form is appended in this section.

Note: For issued NCR, refer to SAEP 1150 par. 9.6 for the procedure,

clearance and closure to be observed.

QA/QC Manager shall submit “The Register of Non-Conformance Reports

and Status” for Management Review along with all copies of NCR / Customer

Complaints.

d).5 Distribution Copies of Closed NCRs

Original Copy – BKC QA/QC Unit File under the custody of Project QA/QC

Manager.

Copies Distribution:


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1 – NCR Originator

1 – NCR Addressee

1 – Site Manager

1 – HHI

d).6 Disposition of NCRs and Corrective Actions

BKC QA/QC Manager shall explain the disposition and draw corrective

resolutions. The Non-Conformance Report is forwarded to the HHI‟s

Inspection Unit for technical review of its recommended disposition.

e). Hold Marks

For adequate control of encountered non-conformance item by the QC

Inspector during performance of work activity, „HOLD‟ is put on the item and it

can only be removed by the QC Inspector after deficiencies had been

corrected or rectified to required acceptable standards. Rejected items are

marked REJECTED and taken away from the production areas

f). Levels of Disposition of Non-Conforming Materials and/or Work item

Disposition for non-conformance shall be decided on the following levels of

courses of action pursuant to Contract Requirements.

“Proceed or Use as is”

Disposition can be pursued if it can be concluded that the degree of

discrepancy cannot result to negative functional or operational use of the item

without adverse impact to performance, reliability and safety. This shall be

accepted after inspection by HHI. If item is considered usable, BKC shall

submit application for a waiver to HHI. The item may be used in the WORK

only if COMPANY approves the waiver.

“Rework”

Disposition may be imposed if redoing the process of work by the right

method within the allowable tolerance will not alter the integrity of the

materials on its strength workability and operational. This shall be subject to

re-inspection and acceptance by HHI / COMPANY.


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“Repair” / Correction

Disposition can be imposed within the level of non-conformance does not

affect the reliability and safety of the item. These items found accepted after

re-inspection may be used in WORK.

“Re-graded”

This disposition can be effected if it can be concluded that the degree of

discrepancy cannot result to negative functional or operational use of the item,

if it is re-graded to suitable alternative level that ensures the performance,

reliability and safety.

If item is considered usable, BKC shall submit application for a waiver to SP.

The item may be used in the WORK only if COMPANY approves the waiver.

This shall be accepted after inspection by HHI / COMPANY.

“Rejected”

This disposition shall be governed by Contract Requirements covering

rejected items not complying with COMPANY Standards. The following shall

be observed.

BKC shall segregate all other non-conforming materials and

assemblies to a clearly designated rejection site. BKC shall track and

control all rejected equipment or materials until it is re used, exported

or otherwise disposed of. All rejected materials shall be disposed of in

accordance with COMPANY Standard Procedure of documentation.

Disposition of all rejected material shall form part of the Quality

Management Reports.


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11. PROCUREMENT PLAN


This Procurement Plan describes and outlines the procurement and QA/QC

procedures to be followed for BKC supplied materials for this Sub-contract job in order

to ensure that the materials are procured in accordance with the Sub-contract

Agreement technical job specifications and standards and timely availabilities at the

project site.

11.2 REFERENCE

The procurement procedures described in this plan shall be implemented in

conjunction and/or referred in the following procedures/documents.

HHI COMPANY Contract Schedules

Sub-contract Schedules

Contract Documents, Specifications & Drawings, Codes & Standards.

11.3 BKC MATERIAL SUPPLY PORTION

BKC shall supply all the required materials of the sub-contract job in accordance with

the Construction Scope of Work of this Project under Contract No. (B1303A-A016)


11.4.1 BKC Engineering Department Manager

As technical support to procurement functions, his main responsibilities are:

Reviews the Sub-contract / bid Documents comprising BKC materials supply portion and generate a Master List of these items for issue to Site Technical Support Services Unit as base reference in the preparation of Materials Requisitions, and required Material Technical Submittals to HHI.

Assists Procurement Manager in Technical evaluation of Vendor‟s bid proposal and soliciting the required Non-Material Requirements (NMRs) i.e. Product Technical Data Sheet / Brochures, Catalogue


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Cuts, Material Test Certificates, etc. Regulatory requirements) complete with required NMRs and

Inspection & Test Requirements (S.A. Form 175s).

Reviews and checks the Material Requisition (MR) prepared by disciplined Engineer/Technical Support Services Supervisor approved by HHI.

11.4.2 BKC Procurement Department Manager

Is responsible for the management of procurement activities to meet the specified

material specification of the project and serve them in timely manner. His main roles

are:

Solicits bid proposals from pre-qualified SUPPLIERS / VENDORS. Evaluates bid proposal on the commercial, delivery and technical

aspects Issues Purchase Orders to complying Bidders Monitors Procurement and Delivery Status and coordinates closely

with Site/Construction Manager for updated Material Delivery Schedule job requirements

11.4.3 BKC Site QA/QC Manager

As QA/QC support to procurement functions, responsibilities are:

Provides checks and/or verification on Purchase Requisition (PRS) Submittals on the correct compliance to job specifications and required NMRs and Inspection Requirements (S.A. Form 175) and other requirements that may apply.

Conducts checks on PRS and MRs prepared by Technical Unit and ensures its full compliance to Client‟s quality requirements.

Prepares purchase submittals package (for level „0‟) and Inspection Assignment Package (IAPs) for level „1‟ through level 4 Inspection item categories.

Initiates action to prevent non-conformances, identify and record quality problems, issue NCR and monitors its resolutions and/or corrective action.

Conducts random surveillance, inspection and verification activities at material transit delivery points (BKC JEDDAH Central Warehouse) prior to final delivery to site.

Coordinates closely with construction QA/QC Supervisor for matters related to procurement activities.


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11.4.4 BKC Site/Construction Manager

BKC designated Site/Construction Manager for this contract job shall be responsible to

oversee that the administration of this Procurement Plan is implemented in

collaboration with the Engineering Manager, Procurement Manager and Corporate

QA/QC Manager.

He sees to it that the necessary planned resources and actions to effectively

implement this procurement plan are provided and continuously supported by BKC top

management.

11.5 PROCUREMENT PROCEDURE

11.5.1 General

BKC shall be governed by the Sub-contract Provisions on “Contractor‟s Procurement

Responsibility” as described in Project Quality Management System (QMS)-

Requirements, ISO 9001:2008, and other requirements set forth therein of Sub-

contract Agreement.

11.5.2 Material Requirement Identification

BKC Engineering Department shall identify, take off and prepare a list of all the

materials and equipment required as per the Sub-contract Scope of Work, which shall

be referred to the approved, and Issued for Construction Drawings. This list shall

contain the following information as minimum:

Item Description

Location of use

Quantity

SEC Engineering Specifications/Standards (applicable to Items)

SEC Material Supply (SAMSS) stock number (if applicable)

Compliance to specific International Codes / Standards

Recommendation for capital spare parts (may not be applicable for BKC scope since no parent equipment is included in its supply scope)

Commodity Code Classification number assigned by SEC for the Material/Equipment item.


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BKC Procurement Department shall use this list as the master guideline for the

Procurement of all the items as indicated on the list. HHI/ SEC shall provide BKC the

formats for the Purchase Order Control Log and Material Technical Submittals as may

be appropriate.

11.5.2.1 Priority Listing and Long Lead Items

The master procurement list prepared by Engineering Department shall be

reviewed by the Planning and Scheduling Unit to establish the priority listing as

per the schedules. The Procurement Department identifies the long lead items

from the master list.

11.5.2.2 Vendor Sources, Qualification and Quotation Request

BKC Procurement Department shall select its Vendor sources from the list of

(HHI) approved manufacturers. It shall be the responsibility of Procurement

Department to ensure the technical and quality requirements, and sound

financial capabilities of all Vendors prior to placement of any Purchase Order.

BKC Procurement Department shall give special emphasis to ensure that all

materials to be purchased are from local suppliers (stockist) as preference and,

are manufactured by approved sources

If Vendors are not listed in SEC and BKC intends to propose their product,

BKC shall pre-qualify this Vendor & its source supplier and follow the

requirements set forth in Sub-contract Schedule. HHI & SEC shall be notified

at least three (3) weeks ahead of the planned supplier survey.

11.5.2.3 Purchase Requisition Submittals (PRS) of Materials - Submittals for

HHI and SEC Review and Comments.

BKC Engineering Department/Technical Support Unit shall submit to HHI/

SEC, a request for technical approval of material/equipment on a prescribed

submittal format preferred, showing material item/CCC and proposed

Vendor/Supplier. Prior to purchase, all materials must be approved, except

consumables, to meet HHI / SEC technical requirements per applicable

Standards etc.


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11.5.2.4 Material Requisition (MRs)

Upon receipt of approval of PRS from HHI, BKC Engineering Dept./Technical

Support Services Unit, initiate Material Requisition and forward to QA/QC Dept.

for review for correctness and passed to Procurement Department as basis for

the preparation of Proforma Purchase Order (P.O.) to be included in the

preparation of Purchase Requisition Submittal by BKC QA/QC Unit. The

Material Requisition shall be checked per the following:

Complete description of materials Quantities Non Material Requirements (NMRs) Inspection requirements Copy of approved PRS as attachment to MR. Spare Parts (as applicable data requirements)

11.5.2.5 Expediting

BKC shall ensure that the Inspectors and/or expediters of HHI/ SEC and/or

those appointed by them shall have free access to BKC and its Vendor‟s

offices and works.

During HHI expediting, BKC shall be responsible for giving complete and

reliable information on the purchase order status. The information will

include shipping Schedule, issuance and progress status of any orders, critical

orders and the expected arrival dates.

BKC shall prepare and forward at regular intervals to HHI/ SEC, an up-to-date

status report of Vendors.

BKC shall expedite all purchase orders, revisions and amendments (including

vendor‟s quotations, any applicable engineering design calculations, drawings,

spare parts data, installation, operating and maintenance instructions, other

Non- material requirements, invoices etc.) after placement of purchase orders.

BKC shall verify with vendors, before placement of an order that their deliveries

meet the required shipping schedule.

BKC shall maintain control of delivery dates established for the project.

BKC shall ensure that all vendors meet the applicable quality assurance

requirements of Sub-contract Agreement and BKC Quality Assurance and

Quality Control Procedures, as set forth in the Project Quality Plan.

BKC shall expedite the review and approval of all Non-Material Requirements

received from the vendors. These include, but are not limited to, Design

Calculation, Drawings, Spare Parts Data, Special Tools (if any), spare parts

recommendations (if applicable) and other data generated by vendors requiring


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approval by BKC and/or HHI/ SEC

11.5.2.6 Control of Manufacturing Processes during Procurement

Prior to commencement of any manufacturing (for Vendor‟s Source Inspection

items) by BKC Vendors/Manufacturers, BKC shall submit to HHI/ SEC for

review & approval such as Welding Procedure, Welding repair, NDT, PMI,

which also include quality personnel qualification requirements and out of

Kingdom NDT. These submittals are waived if Vendor/Manufacturers are

already accredited by HHI/ SEC, but shall form part of in-process Inspection

Documents review and included in the Final Disposition Report.

11.5.2.7 Inspection and Testing

As may be applicable, BKC QA/QC department shall prepare Inspection

Assignment Package for items subjected to inspection levels 1, 2, 3 and 4

pursuant to Sub-contract Requirements. Materials classified as Level 1 are

exempted from pre-inspection meeting. Final Inspection is only required for

Level.

1 items prior to release at Vendor's shop and is governed by Inspection

Requirements, Form 175, Materials categorized as Level 0 are exempted for

HHI Inspection Division monitoring Inspection but require QC documentation

i.e. Material Test Certificates and/or Product Data Sheet, etc.

The Inspection Assignment Package (applicable to level 1, 2, 3 & 4) to be

submitted to HHI Inspection Division for review and approval for each item

shall include:

BKC un-priced Purchase Order or subcontractor with complete attachment.

Copies of sub-supplier un-priced Purchase Orders (if applicable). Inspection requirement as specified in the Applicable S.A. Form 175. Inspection Assignment Sheet specifying the Inspector(s) that will

perform the inspections. Inspection and Test Plan (ITP). The level of BKC and Client's (Buyers) Inspection Intervention as

confirmed by HHI / SEC Inspection Division. Agenda for Pre-Inspection Meeting.

Vendor's ITP (for level 2, 3 & 4 only) included in the Inspection Assignment

Package contains the followings:

Process Description. Quality Control Reports. Notification Requirements for Vendors inspection witness & hold


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points (minimum 5 working days). Responsibilities Applicable Procedure Acceptance Criteria Verifying Documents Inspection points Hold point

BKC assigned Vendor's Inspector or its approved Third Party Inspector shall

schedule & perform source inspection at Vendor or sub-supplier fabrication

shop as specified in the approved ITP.BKC shall submit to HHI/ SEC the

Vendors test reports.

11.5.2.8 Inspection Schedule and Status

BKC shall submit each week a Three Week Look Ahead Schedule of planned

QA/QC activities for procurement and status of resolution on issued NCRs to

Vendors / Subcontractors. BKC QA/QC department is responsible for its

preparation and control. The forms to be used are shown in the appendix of

this section. The format of these forms (Q-020 & Q-015) is subject to

acceptance by HHI/ SEC and electronic copy to be provided to them

accordingly.

11.5.2.9 Procurement Inspection and Test Records

Prior to release of Vendor's item at their Production Location and after

successful test & inspection, BKC shall require the Vendor to submit all

relevant manufacturing test reports as specified on Purchase Order

requirement in

Reference to HHI acceptance criteria. These reports shall be submitted to HHI

with the Inspection Disposition Report.

11.5.2.10 Final Disposition Reports

Within two (2) weeks after acceptance of the materials from Vendor, BKC shall

prepare Inspection Disposition Report to HHI / SEC which shall include:

Copies of approved Waivers to HHI/ SEC BKC witnessed inspection record. Copies of Vendors quality records. Copies of all NCRs with final disposition and resolution. Copies of Inspection Release Certificates (IRC) as evidence of positive

disposition on the inspected materials.


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11.5.2.11 Packing

BKC and/or its Vendor shall ensure that the packing shall be capable of

withstanding all hazards normally encountered during transportation including

loading and unloading operations. It should protect goods from weather

conditions.

Spare parts shall be packed separately from the equipment, which they are

referred to.

The packing list (not made on headed paper) shall bear:

BKC Purchase Order reference HHI/ SEC reference number Gross, net weights and dimensions for each package Description of goods as per P.O.

11.5.2.12 Shipping and Invoicing

BKC Vendor shall be responsible for shipping the material from the country of

origin to Saudi Arabia, in accordance to BKC shipping and invoicing

instructions as attached to the Purchase Order. This includes, but not limited to

ocean freight, airfreight, export packing, insurance (if any), and export licenses,

authorization and all associated documentations required. The shipping

documents compiled by BKC and/or its Sub-vendor shall include, but not

limited to the following:

i) Invoices - Made on sub-vendor‟s headed paper, and shall bear the BKC purchase order reference, HHI ref. no., and final destination of goods and description of goods as per Purchase Order.

ii) Packing list - In accordance with section 11.5. and above

iii) Certificate of origin - For all materials manufactured outside the Kingdom of Saudi Arabia, Vendor shall obtain a certificate of origin issued by chamber of commerce in the manufacturer’s country.


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The certificate of origin must show:

Consignee BKC Purchase Order reference Client‟s reference no. Materials, type of packages and total gross net weight The full name and address of the manufacturer

iv) SASO Certificate (if applicable only)

Saudi Arabian Standard Organization‟s (SASO) certificate of conformity

to standard specifications for items that may be required in the Sub-

contract job specification.

v) Packing Marking

Each package shall be well marked visibly on three sides.

11.5.2.13.Receiving

For materials directly purchased from foreign Vendors/Suppliers, BKC

Procurement Department shall be responsible for clearing the material through

Saudi Arabian customs, offloading, and inspection on receipt, delivery to the

BKC warehouse BKC shall inform HHI the status of received material.

11.5.2.14 Materials Procurement Status

To ensure delivery of materials will be at site during the scheduled need on its

respective activity use,BKC normally monitors Procurements Status following

the matrix form shown in the Appendix Section.

A copy of Procurement Status Report shall be highlighted during Weekly

Progress Meeting and included in the minutes.

11.5.2.15 Quality Management Reports

Pursuant to sub-contract schedule, BKC shall prepare and submit monthly

quality management report to HHI covering the following, for distribution to

concerned HHI / SEC Inspection Units:

Listing of supplier surveys performed with a summary of findings. Listing of Pre-inspection Meeting conducted. Listing of supplier inspections performed versus scheduled inspections. Non-conformance reports issued to vendors: number issued, closed out,

and pending for the month. Listing of quality audits completed (internal and subcontractor).


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Welding rejection rate reported on a per joint basis for structural, and alloy welds. A chart showing the historical performance during the project shall be included.

Listing and status of engineering waivers requested. QA/QC Personnel Listing by Discipline as specified in Sub-Contract

Requirements.

11A. MATERIAL MANAGEMENT PLAN

11A.1 SCOPE AND PURPOSE

This material management plan describes and outlines the procedures for material

identification & traceability, receiving, storing & protection and preserving and

safeguarding, accounting and record control, issuing to production units, and

preparation of all necessary reports required for the proper management of materials

for BKC supplied materials/items intended for this particular contract.

11A.2 CORRELATION WITH OTHER PROCEDURES/DOCUMENTS

This Material Management Plan shall be applied in conjunction with the following

relevant procedures:

11A.2.1 HHI Contract Provisions

Company Standards & Specifications Sub-Contract Agreement Sub-Contract Requirements

11A.2.2 BKC Procedures

This Project Quality Plan Non-Conformance Procedure, Section 10 of this Project Quality Plan.

11A.3 RESPONSIBILITIES

BKC Material Supervisor is the overall-in-charge and responsible for the material

management at Project Site covering the following specific functions:

Receives BKC supplied materials in accordance with the Company‟s procedures and documentation.

Collaborates with BKC QA/QC Inspector in seeking checking and


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clearance of quality acceptance of materials being delivered to site before receiving.

Generally manages materials storage, receiving and issuing functions and maintained an orderly record of its proper documentation. Designate a warehouse assistant and delegate his functional duties during his absence at site.

Prepares all the necessary reports pertinent to materials.

11A.4 MATERIAL IDENTIFICATION AND TRACEABILITY

The Material Supervisor shall be guided on Materials Identification System being

observed by BKC as a normal Industry practice which is very essential for traceability

during the stages of production, delivery, receiving & storing and installation. Refer to

the "Guidelines for Material Identification and Traceability" appended to this section.

11A.5 RECEIVING AND INSPECTION OF MATERIALS

11A.5.1 BKC Supplied Materials

BKC Material Supervisor accomplishes Material Receiving Report Form (WF-

10) after receipt of materials at site and signed-off clearance from BKC QC

Inspector who examined acceptability conditions and compliance with the

material specification. BKC QA/QC Inspector accomplishes the Material

Inspection Report Form (Q-006).

11A.5.2 Main Contractor Supplied Materials

11A.5.2.1 Material Take-offs

BKC Technical support services shall verify HHI material take-off with respect

to IFC drawings and report all shortages and excess materials to HHI indicating

Description, Quantity, Technical specification, HHI / SEC Materials

Specification stock number (if any) provisions for material handling and storage

until installed (i.e. indoor or outdoor).

11A.5.2.2 Coordination HHI / SEC and contractor

BKC Material Supervisor will coordinate with HHI material Supervisor and/or

Material Coordinator affecting the smooth transfer of all material supplied by


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HHI.

11A.5.2.3 Physical Receipt of Materials

1) Pursuant to Sub-Contract agreement, HHI supplied materials shall be

delivered to site. To ensure proper safekeeping, protection and control,

BKC Material Supervisor shall classify materials to sensitive and non-

sensitive items. For sensitive items i.e. electronic equipment like DCS shall

be stored in Air conditioned storage to prevent damage during storage and

if possible arrange delivery direct to Control Room.

2) Copies of the material receipt shall be retained and filed by both HHI and BKC. The document to be provided to BKC shall contain the following. a.) Delivery Note b.) Material Receiving Report c.) Vendor Inspection Release Note; (For Inspectable Materials /

Equipment Only). d.) Material Certifications or Manufacturing Data Records.

3) Any identified non-conforming item discovered during detailed materials check shall be segregated at the BKC Lay-down Yard and/or at the Delivery Points (Project Site). HHI shall be notified immediately of non- conforming material items. Forms shall be utilized to maintain constant control of materials as well as non-conforming material. Non-conformance findings as reported by BKC QC Inspection shall only be limited to quantities physical damage or wrong items against Delivery Note.

A non-conformance report shall be made for all identified non-conformance

materials, a copy of which shall be submitted to HHI, second copy shall be

retained by QA/QC and third copy shall be placed in a plastic folder and

attached to the material. The material shall be marked with red paint as reject

and removed from Site Storage Yard and store in area meant for non-

conformance material.

Final disposal of all non-conformance materials shall be in accordance with

Instructions of HHI Representative.


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11A.6 STORAGE

11A.6.1 Warehousing Facilities

b) Storage includes all materials, tools and equipment received and held until

they are issued for installation. BKC will submit to HHI a Material Storage

Plan to show material arrangement in segregated manner for each

classification. Refer to appendix of this section showing "Guideline for

Material Storage Warehousing" indicating mode of storage for each item

classification.

c) Indoor storage shall be by the use of steel van containers equipped of with shelves and bins to maintain proper segregation of materials by usage jurisdiction and classes. All items retained their Purchase Order or Tag Identification for retrievability and inventory control. These containers are weather-tight, well lighted and ventilated and laid to ground with timber or any other supports and not subjected to surface water run-off. Outdoor Storage shall be the designated lay-down area by HHI and constructed with seclusion fence and padlock. The area should be well drained, free from traffic and work interface operation.

11A.6.2. Housekeeping, Storing and Identification of materials

1) Proper stacking practices will be implemented.

2) Inside and outside storage areas (aisles, bin sections, yard plots etc.) will be clearly defined and identified with appropriate storage location signs.

3) All materials will be stocked and maintained in accordance with acceptable safety standards in a neat orderly manner to provide efficiency in physical checking and movement and in a manner to ensure proper protection from damage, deterioration, or pilferage. These includes: Use of adequate storage bins and racks. Use of pallets and stringers Proper stacking Maximum utilization of inside or other protection storage and lock-up

areas. Closing and locking containers or vans.

4) All weather sensitive materials like instruments, small tools, electrical wires and delicate equipment and specialty items shall be stored in weather proof container.


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11A.6.3 Stock Location

The Material Supervisor shall establish a grid type (i.e. row/shelf/bin. etc.)

locator plan for each storage location. Appropriate signs shall be posted to

identify area. The storage location designated shall be indicated on the

Material Receiving Report/Daily Register.

11A.7 PROTECTION AND PRESERVATION OF MATERIALS DURING STORAGE

AND CONSTRUCTION PERIODS

Refer to Appendix of this section for guidelines to be observed.

11A.8 ISSUING AND INVENTORY CONTROL

11A.8.1 General

BKC Material Supervisor maintains file of material documentation and

inventory control for BKC Supplied Materials. All materials stored in the

warehouse custody have formally passed the QA/QC Inspection and those

rejected ones are segregated separately and returned.

11A.8.2 Issuance

Issuances of materials to construction level are covered by warehousing

proper procedure. The withdrawals of material from the warehouse or storage

areas are covered by Material Requisition Slip initiated by the responsible work

supervisor. The request identifies the material and applicable references to a

drawing and Material List except for equipment, which is by equipment

number. The warehouse distribution personnel process the form through the

established system and release the materials to the requisitioned.

The Material Supervisor posts on a daily basis all issues, returns, receipt and

balances of materials through a manual cardex system of control.

11A.8.3 Stock Location System

An accurate stock locator system is to be maintained for all items stored at the

storage site.

a) File folders for receiving records will be established including location areas for the material.

b) Any relocation of material will be recorded.

c) A card file with a record card for each storage plot or areas will be established. This card file will be updated constantly to reflect any changes in material storage locations.


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d) Storage locations will be entered on all receiving documents covering items to be held in storage.

e) Inventory records should be maintained and updated for all materials. They must be compatible with the mode of physical storage and have storage location entered thereon, In and out activity, and balance are to be maintained to permit accurate accountability.

11A.9 OVERAGES, SHORTAGES, DAMAGES REPORT

Wherever a discrepancy in a shipment occurs, the Material Supervisor prepares the

report of Unsatisfactory Over, Short, Damaged materials, within 7 days of receipt.

a) Overages

If the discrepancy is over shipments, BKC SITE Office is to be consulted as to whether

to retain, or to return the materials.

b) Shortage

In the event material called for on applicable shipping documents cannot be located, it

is the responsibility of the Material Supervisor to take the necessary steps to protect

the company‟s interest and proceed with the proper documentation of the shortage. If

the shortage is apparent at delivery, it is very important that the proper-signed notation

be entered to the delivery receipt or freight bill indicating the extent of the shortage.

The carrier‟s delivery agent must sign this document. This is very important, without

this documentation, any future claim action may be invalid. It is important to take time

at delivery to make an accurate piece count.

c) Damages

The handling of received damaged materials pose many problems in material receiving

and the proper handling of this problem are very important. In the event material

received is in damaged condition, it is the responsibility of the Material.

Supervisor to take the necessary steps to process the proper documentation and

reporting to the Site Manager who will take appropriate action.


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11A.10 MATERIAL RETURN FROM SITE TO STORE

a) Material shall be issued only through Material Issue Slip signed by concerned Forman/Supervisor.

b) Excess Construction materials received by construction team can be returned to Inventory Store for possible disposition.

c) Concerned Supervisor shall prepare a Construction Material Return Voucher (From Site to Ware House)

d) aterial Department shall arrange for inspection of these items by sending this voucher to QA/QC.

e) Material Department Head or his nominee can inspect the returned

Consumables for physical condition prior to taking into stock.

f) All accepted Materials shall be taken into Stock and Stock file updated

g) Rejected materials shall be sent to Rejection Yard.

12. CONSTRUCTION AND PRE-COMMISSIONING PLAN

12.1 Scope and Purpose

This portion describes the specific and extent of work covered by the phase sections

being addressed in this part of the construction work quality plan. It establishes the

basis of requirements for the preparation of inspection and Test Plan (ITP)/ITP

Checklist, procedures and acceptance criteria.

12.2 References

Defines all relevant document i.e. codes, standards, specifications, etc. to be referred

with for the correct execution of the job to conform with the contract technical

requirements for the specific work item covered by the construction work quality plan

as basis of criteria of acceptance.

Sec. 3.0 of this PQP

Sub-Contract Agreement

Contract Documents, Specifications & Drawings


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12.3 Responsibility

Defines the performing units/persons responsible for the correct execution of the job

and required interfaces of Inspection Units/Persons to control and ensure attainment of

the required Quality Standards.

12.4 Quality Control Procedures/Method of statements

All method of statement/(QCP) and corresponding Inspection & test Plans (ITP)

referred in Section 3.0 of this PQP shall be submitted accordingly as required in Sub-

Contract Agreement, Relevant procedures applicable under each sections of the

Construction Work Quality Plan which normally address but not limited to the following:

Materials to be inspected and tested.

Inspection and test methods, plans and procedures.

Off site location of established pre-fabrication/assembly of items prior to delivery to site.

Acceptance criteria for each critical phase of activities during the course of Construction/Installation.

Third Party Inspection Companies and the services they will provide.

Work Procedures for specials process activities like concreting Protection, Critical Coating, Cable Splicing/Termination, cable/conduit seals etc. are described and established to ensure the job are accomplished under controlled conditions in accordance with all applicable Standards and Specifications.

12.5 Inspection and Test Plans ITPs

Inspection and Test Plans is the quality plan for each construction work phase

discipline showing in details the methods and timing for examinations, measurement or

tests to assure compliance with contract job requirements. In a matrix presentation, the

ITPs shows the following:

Task descriptions

Acceptance criteria (Checked per applicable Specifications, Codes,

Standards, Procedures or IFC Drawing etc.)


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Verifying Documents (Referenced Submittals, Test and Inspection Reports, Certificates, etc.)

Quality Control Activity (Inspection and Test Activity)

Established WITNESS and HOLD point intervention of Clients Inspection from the planned Inspection and Test activities.

The ITP are supported by suitable and approved certification forms to document all the

test and inspection to be performed during the process of the work. Checklist and Test

Record Sheets shall be the verifying acceptance of each accomplished tasks as shown

in the ITP.

12.6 Pre-Commissioning Plan

Not applicable for this scope.

END DOCUMENT