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Risk Management

Quarterly Magazine of Consolidated Contractors Company

The BULLETIN is a publication issued at CCC in Athens by volunteer staff.

All opinions stated herein are the contributors’ own.Submissions (announcements, stories, artwork, etc.) are welcome.

CCC BULLETIN P.O. Box 61092

Maroussi 151 10

Fax (30-210) 618-2199 or [email protected]

see The BULLETIN on line at www.ccc.me -> About Us -> Our News -> Quarterly Bulletin

EDITORS Samer Khoury

Zuhair Haddad

Nafez Husseini

Damon Morrison

PUBLIC RELATIONS Samir Sabbagh

PRODUCTION Jeannette Arduino

Nick Goulas

Georgia Giannias

Alex Khoury

Samer Elhaj

Issue 1131st Quarter 2015

QATAR Sidra Medical & Research CentreCompletion of Design & Construction

Sidra Medical & Research CentreCompletion of Design & Construction

QATAR

C C CBulletin Issue 113 | 1st Quarter 2015 Bulletin Issue 113 | 1st Quarter 2015

CONT

ENTSFrom the Desk of... 3 Samer S. Khoury

Recent Awards 4

Quality Management 6 Concession / Deviation M. Soufyan

Feature 9 The Bridge Between the Past & a Brighter Future Y. Helmy

13 Corporate Risk Management at CCC W. Wakileh

15 Using Key Risk Indicators W. Wakileh

18 Conducting Effective Risk Workshops W. Wakileh

21 Concepts of Risk Analysis & Management R. Davies

25 Risk Assessment as an HSE Tool O. Reed

Area News 27 Palestine: Late Said Khoury Honoured in Nablus Bulletin Editors

28 UAE: Abu Dhabi Hosts IPLOCA 48th Annual Convention M. Abusalah

29 Jordan: BDF Board Meetings in Amman M. Karam

30 2014 Knowledge Management Awards A. Sersy

32 Qatar: Dukhan Highway Safety Achievement B. Dennis

Construction Design 33 Design Activities for Construction Projects M. Soufyan

Corporate Social Responsibility 37 CSR News Report T. Awad

39 CSR Volunteers of the Quarter T. Awad

40 The Kazakh Golden Warrior Monument Unveiled A. Mushtaha

41 A Special Case from Gaza N. Kaddah

42 Qatar: Worker Traditional Celebrations & Sports Activities H. Abou Hishmeh

43 Basic Needs Met in Tanzania G. Deeb

44 UAE: Youth Engagement & Advocacy Programme M. Mamunni

45 UAE: Al Noor Foundation for Special Needs Children M. Mamunni

46 USA: CSR News from the Morganti Group L. Istambouli

Milestones 47 Management with Humour: CCED Anthem on YouTube Bulletin Editors

47 CCC in ASME Code Bulletin Editors

48 Announcements

C C C Bulletin Issue 113 | 1st Quarter 2015 Bulletin Issue 113 | 1st Quarter 2015

3C C CBulletin Issue 113 | 1st Quarter 2015 Bulletin Issue 113 | 1st Quarter 2015

FROM

THE D

ESK

OF...

President Engineering & Construction

SAMER S. KHOURY

Risks: A Ship in the Harbour Is Safe, But That Is Not What Ships Were Made for

One of the sayings I admire the most was placed in my office some 15 years ago. The picture portrays a large sailing boat moored at a natural harbour with a caption that reads: “It is safe and less risky for ships to stay in the harbour, but that is not what ships were made for.”

CCC, like any other business, faces risks every day and if we were to try and avoid them, like the ship in my office, we would end up going nowhere.

Over the years, the owners of CCC have taken many bold and calculated risks to make CCC what it is today and I could cite several examples that I am certain all of you know about.

To date, CCC has grown into a very large company with several fields of operations in many countries. Therefore, we are now in the process of organising and documenting all corporate and project risks in order to understand them and consequently assign owners to them accordingly.

We need your help to better mitigate these risks. Any risk system we develop will depend on you, our loyal staff, as you are on the front line. We need you to sit back and think, before we take any major action, what impact this action would have on CCC and how we can alleviate this impact. You also need to look for opportunities within the risks we take, as there is always another side to any risk - we must find it and try to use it to our benefit as best we can.

I am confident that with all your hard work, vision and mitigating measures, CCC’s ship will continue to sail towards higher achievements.


RECE

NT AW

ARDS

Roads and Infrastructure in Bani Hajer North Phase 2, Package 7

QatarThe project is to construct a road network that includes roads with around 163km; Surface water: 40km of different

types of pipes, with gullies and six attenuation tanks with 17 chambers and 2.6km of microtunneling works with different diameters; landscape; Treated Sewage Effluent (TSE): 13km of HDPE & DI pipes (including fittings and valves) and 161 chambers; street lighting; Intelligent Transportation Systems (ITS) with chambers; telecommunications network with chambers; Kahramaa (E) Network (8.5km of ducts with protection of 2.4km of HV cables; and 5km of powering/ rising cables); foul water: VC pipes 18km with 650m of microtunneling works with 305 manholes.

The client is Main Roads Projects Steering Committee, and the consultants are Hyder / Parsons Brinckerhoff (PMC).

The contract was awarded on 17 November 2014.

The project start is 15 March 2015 for a duration of about 16 months ending on 7 July 2016.

Construction of Mega Reservoirs - Packages A & CQatar

PRPS1 & PRPS5 (packages A & C) are located at Umm Birka and Al Thumama respectively and are two of a total of five

new Primary Reservoir Pumping Station (PRPS) sites. Package A includes the construction of four reinforced reservoirs (305m x 150m x 11m each), while Package C includes five reinforced reservoirs (260m x 150m x 11m each). Works also include MEP scope (pump station, surge system, chlorination systems, generators, SCADA, ductile iron and carbon steel pipes).

Site excavation for package C has been completed by others, while for package A this is part of CCC’s scope.

The client is KAHRAMAA, and the consultants are Hyder.

The contract was awarded on 19 March 2015.

The project start is 2 April 2015 for a duration of 36 months ending on 1 April 2018.

Helwan Power Station - 3 X 650 MW Super Critical Thermal Power Plant - Civil Works (CP-102)Egypt

The project is comprised of all civil, architectural, structural and building works for the Helwan Power Station

(CP-102).

The scope includes site preparation and grading, U/G utilities, three steam turbine generators buildings, control building, furniture, one CAD station, three 152m height chimneys, foundations for water pumps, transformers, pits and sumps, auxiliary facilities including intake, pump house, discharge, surge tanks, circulating water building, and so on, in addition to MEP works for buildings.

The client is Upper Egypt Electricity & Production Company (UEEPC) and the consultant is Power Generation Engineering & Services Company (PGESCo).

The contract was awarded on 31 December 2014.

The project start is 31 December 2014 for a duration of 46 months ending on 31 October 2018.

Future Growth Project (FGP) - 3GP Civils & Core Substation ContractKazakhstan

The FGP/WPMP projects will increase Tengizchevroil oil production from 24 to 36 million tons per year.

The scope of this package is earthworks, concrete works, piling, U/G piping and core substation.

The client is Tengizchevroil and the consultants are Kazakhstan Projects Joint Venture Limited (KPJV).

The contract was awarded on 29 September 2014.

The project start is 29 September 2014 for a duration of 53 months ending on 28 February 2019.


RECE

NT AW

ARDS

Alba Bridge, Flare & Hookup Spool FabricationEquatorial Guinea

The project involves the construction of the new Alba B3 greenfield gas compression platform to be bridge-

linked to the existing platform Alba B2. The project’s purpose is to provide continued high-pressure gas flow as the field reservoir pressure declines.

The platform, weighing 6104tons, is comprised of topside, jacket (four legs), four piles, bridge and flare boom.

CCC/ECG’s scope is limited to the fabrication, painting, assembly, transportation and load out of the bridge and flare boom (115tons). ECG will also provide, on a reimbursable basis, commissioning, logistics and hook up support.

The client is ALBA EG B.V.

The contract was awarded on 23 December 2014.

The project start is 15 January 2015 for a duration of nine months ending on 15 October 2015.

Design Build and Maintain Temporary Elevated U-Turns along Nawaseeb Road (Group-A)Kuwait

This project is EPC and maintenance of four elevated U-Turns and associated structures. The bridge structures over

existing highway will be made of steel or concrete. Contractor to propose elevated U-Turns components as concrete or steel bridges, MSE approach ramps roads, traffic signs and marking, utilities protections and relocations of.

The scope work includes EPC of road works, pavement works, metal works, bridge works, mechanically stabilized earth (MSE) ramps and retaining wall, relocation and protection of existing utilities, traffic marking and signs and maintenance and protection of traffic.

The client is the Ministry of Public Works (MPW) and the consultant is Dar Al-Dowailah Engineering Consulting Managers.

The contract was awarded on 27 April 2014.

The project start is 22 June 2014 for a duration of two years ending on 21 June 2016.

Jazan IGCC Refinery Packages 1 & 2Saudi Arabia

The project is to construct a 400,000 BPD grassroot refinery and hydrocarbon terminal facilities at Jazan Economic

City to handle both 100% Arab Medium and 50% Arab Medium and 50% Arab Heavy Crude. Jazan refinery will be synergized with a world-scale Integrated Gasification Combined Cycle Plant (JIGCC) which will supply power, steam and utilities to Jazan refinery and export power to the grid.

CCC’s scope of work is the construction of:

• Package 1: Soot Ash Removal Unit (SARU) (4 blocks) equal to 788Kg/h of produced ash.

• Package 2: 3 x 541 ton/day Sulphur Recovery Unit (SRU) Trains.

The main contractors are Saipem WLL for Package 1 and Snamprogetti Engineering & Contracting Co. Ltd. for Package 2, and the Owner is Saudi Aramco.

The contracts were awarded on 15 March 2015 for Package 2 and mid April for Package 1.

The project start is 15 March 2015 for a duration of about 32 months ending on 31 October 2017.

Jazan Refinery & Terminal Project (EPC-13 Utilities Package)Saudi Arabia

The project is to develop the Utility Block and Common Area of the Jazan Refinery which consists of the following

units: Nitrogen, air, steam and condensate, utility water, cooling water, fire water, common networks and buildings.

CCC’s scope of construction work of the Civil and Architecture package includes excavation, backfilling, equipment and piperack concrete foundations, concrete paving, site finishing (Marl and base course), asphalt, and buildings construction only with relevant electromechanical systems.

The client is Hitachi Technology Company and the owner is Saudi Aramco.

The contract was awarded on 13 March 2015.

The project start is 2 May 2015 for a duration of 31 months ending on 30 November 2017.


QUAL

ITY M

ANAG

EMEN

TConcession / Deviation

M. SOUFYAN

Concession requests are used when a contractor desires relaxation of a technical requirement (specification, drawing, procedure, or contract requirements). The concession may result from a manufacturing or a construction related problem.

The contractor will ensure that the concession requests are correctly initiated, documented, processed, verified and implemented so that any necessary changes to technical requirements are approved by the authority “customer or customer representative”.

ISO 9000 DefinitionConcession is the permission to use or release a product or service that does not conform to specified requirements. A concession is generally limited to the delivery of the product that has nonconforming characteristics with specified limits for an agreed time or quality of that product.

A deviation permit is a permission to depart from the originally specified requirements prior to realization. A deviation permit is generally given to a limited quantity of a product or period of time, and for a specific use.

A deviation in principle is a nonconformity and is typically recorded in a nonconformance report (NCR). When you approach your customer with this situation, they may allow you to ship the product (or accept constructed facilities), this becomes a concession.

CCC ProcessThe CCC concession process is illustrated in Chart 01.

Concession Request InitiationConcession requests may be initiated by a project member or by a supplier or subcontractor. The circumstances of concession must be discussed with the relevant departments and approved for processing by the project quality manager.

Concession requests may also be raised to improve performance or because of impractical conditions.

Prior to proceeding with the concession, other possible options should be considered, in general, concession requests should be avoided, unless a concession request is the only practical solution.

Coding of a Concession RequestConcession requests coding should follow the requirements of numbering system for the project. It is preferred that the symbol CR for “concession request” be included in the numbering system. For example:

Processing of a Concession RequestThe originator will forward the concession request to relevant departments to determine the impact of the concession request. For example, the following should be considered:

• Impact on Quality.

• Impact on safety.

• Impact on Cost.

• Impact on Schedule.

At the initial stage a simple statement such as: “increase”, “decrease” or “no effect” is sufficient.

The internal review and approval of the concession request is described in Chart 02.

Engineering InputThe Contractor will determine whether there is a need for the Engineering Authority to review and sanction the concession request. This determination

is dependent on the contents of the concession request. For guidance: if any aspect of the system or product design could be impacted by the content of the concession then the concession request must be forwarded to the Engineering Authority.

On return from the Engineering Authority the concession request will either be shelved either

For occassions when a consession is the only practical solution.

The Contractor shall revise any document a�ected by the concession request and will transfer the information to responsible party for implementation.Verification Process

Implementation Process

Approval Process

Engineering Input

Processing of CR

Coding of CR

Concession Request Initiation1

2 3

4 5

6 7

Evaluation of Impact:- Cost Schedule- Safety Quality

The Contractor shall contuct internal review and external approval by the Customer.

Coding of Concession Request shall be in accordance with Project numbering system.

Quality Audit for the Project shall verify the implementation of concession process.

Impact on Design should be determined and evaluated.

XXXX - CR - 01 - 4 - 012Project Number

Concession RequestVendor Code

Sequence NumberDiscipline Code

Chart 01


QUAL

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ANAG

EMEN

T

Concession / Deviation

placed on file and alternative courses of action reconsidered (should the engineering subcontractor’s response be not to proceed) or prepared for issue to the customer.

Approval ProcessFollowing internal verification and review by concerned departments, the concession request may be submitted to the customer for approval. When the concession request is returned by the customer, it will either be shelved (should the concession request be rejected by the customer) or prepared for issue to concerned departments.

The PCM shall review the document when it has been returned by the company and resolve any unclear points if necessary. If this requires changes to the concession request, the document will be revised, a new revision number will be indicated and the copying and distribution cycle will be repeated. The review and approval processes of a concession request are illustrated in Chart 03.

Implementation of the Concession RequestDiscipline engineers will attach a copy of the concession request to the drawing, specification or other document to which it applies. The technical requirement now becomes the original document plus the concession request. Discipline engineers will ensure that instructions given in the concession request are implemented. Where necessary the engineering subcontractor will follow-up the concession by confirming that the intended action is completed and correctly implemented. Implementation of a concession request is shown in Chart 04.

Verification ProcessVerification of the concession request process “correct implementation” is carried out by the relevant department manager and by the quality department during quality audits. The concession request process will be included in the quality audit schedule.

Originator Quality MGR PCM Dept. MGRS

Start

Go toPage 2

Issue NCR

Discuss the circumstances ofConcession Request with the

Quality Manager

Instruct Originatorno to proceed

Is it possibleto avoid

Consider other options to avoidconcession request

12

3

Is itrelated to non-conformance?

Provide alternativesolution

4

Instruct originatorto proceed with theconcession request

End

5

Obtain reference number from DCG6

Complete the 1st section of theconcession request

7

Forward to Quality Mgr. Review concession request andreturn to originator8 9

Forward to PCM for evaluation ofcost impact and schedule impact

Obtain inputfrom planning &

cost control1011

Forward toquality Mgr.

12

Discuss with PCM& Department

Managers to reachfinal decision

Proceedwith concession

request

Review concessionrequest

13

14

InformOriginatorEnd Forward to

DCG for Archiving

15

YES

YES

NO

YES

NO

Activity

Meeting

Input

Decision

Direction

Start/End

FlowchartKey

Chart 02


QUAL

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ANAG

EMEN

TConcession / Deviation

Activity

Meeting

Input

Decision

Direction

Start/End

FlowchartKey

Originator Quality Mgr. PCM Dept. MGRs

Design Authority

Company

Customer

DCG

Chart 02Inform Originator to proceedwith the concession request

Design inputrequired

16

Forward to PCM17

Review Concession Request18

19

Forward to DesignAuthority

20Conduct Review

21

Recommentation 22

Accept23

Disregard

Forward to Customerfor Approval

24

Look for anothersolution

Customer review process25

Ensure Customer’scomments are incorporated

Decision

Rejected Approved

26

27Look for another solution

Approvedwith

comments

Forward to CCC28

Incorporate Customercomments and repeat the

internal review cycle

Forward to PCM29

Chart 04

YES

Section / Project Eng. Const. MGR PCM DCG

Mark in red the documents affected with thefollowing statement: see concession request number

CR/XXX for additional informationDistribute according to

distribution matrix

Chart 03

End

Attach a copy of the concession request to the drawings,specifications, or any document affected

by the concession request

Ensure implementation of the requirementslisted in the concession request

Ensure a copy of the concession requestis forwarded to all relevant departments

(engineering, planning “impact on schedule”,cost control “impact on cost”,

quality, HSE, construction, ... )

Maintain concessionrequest register

30

31

32

33

34 35

Chart 03

Chart 04


FEAT

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The Bridge Between the Past & a Brighter FutureY. HELMY

”It costs less to proactively manage risk today, than it will to reactively respond to risk

consequences tomorrow.

If you don’t manage risk, it will manage you.”

Introduction

CCC has grown to become one of the leading international construction and engineering companies operating in more than 45 countries and runs around 150 mega projects worldwide backed up by a workforce exceeding 120,000 employees.

To maintain that pioneer position in an ever changing and volatile market bound by a wide spectrum of risks, CCC recognised that Risk Management is essential for the success and competitiveness of the company as well as the well-being of its employees for many years to come.

DefinitionsRisk is the effect of uncertainty on objectives. An effect may be positive, negative or a deviation from the expected. Risk is often described by an event, a change in circumstances or a consequence.

“Not all uncertainties are risks. Risks are the uncertainties that affect our objectives.”

Identifying risks (threats/opportunities), assessing their potential impact on objectives and taking the appropriate measures to mitigate them is “Risk Management”.

Risk Culture and MaturityA good risk culture will be the product of individual and group values as well as attitudes and patterns of behaviour.

Organisations with a risk aware culture are characterised by positive communication founded on mutual trust and a shared perception of the importance of Risk Management.

Geopolitical ConflictsOil Prices VolatilityHigh CompetitionOnerous ContractsScope AmbiguityResources ShortagesProductivity ConstraintsSupply Chain WeaknessControl GapsCash Flow

Level 1: NaiveOrganizations are unaware of the need for the management of risk or do not recognize the value of structured approaches to dealing with uncertainty. Management processes are repetitive or reactive, with insufficient attempt to learn from the past or to prepare for future threats or uncertainties.

Level 2: NoviceOrganizations are aware of the potential benefits of managing risk, but have not implemented risk processes effectively and are not gaining the full benefits. The organization is either experimenting the application of risk management or is operating a risk management process that has fundamental weaknesses.

Level 3: NormalizedOrganizations have built the management of risk into routine business processes and implement risk management throughout the organization. Generic risk management processes are formalized and the benefits are understood at all levels of the organization, although they may not be consistently achieved.

Level 4: NaturalOrganizations have a risk-aware culture with a proactive approach to risk management in all activities. As a result, the consideration of risk is inherent to routine processes. Risk information is actively used and communicated to improve processes and gain competitive advantage.

Matu

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FEAT

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The Bridge Between the Past & a Brighter Future

A risk-aware culture is achieved by:

Leadership - Leadership’s support to implement Risk Management across the organization.

Involvement - Involvement of all stakeholders in all stages of the risk management process.

Learning - Emphasis on training in risk management procedures and learning from our past.

Accountability - Absence of an automatic blame culture, but appropriate accountability for actions.

Communication - Communication and openness on all risk management issues and the lessons learnt.

BenefitsThe benefits of Risk Management are numerous. To name a few:

• Increases the likelihood of achieving objectives.

• Protects company’s reputation.

• Protects clients’ interests to secure long term business relations.

• Substitutes reactive management with proactive one.

• Mitigation cost is less than rectification cost.

• Aligns the input of various sources for informed decision making.

Cooperation

Accountability

Adherence to Rules

Speed of Response

Level of CareLevel of insight

Tolerance

Communication

Confidence

Openness

Challenge

Risk Culture Diagram

Definition:The norms of behavior within an organization

that determine collective risk-taking and the ability

to identify, understand and act on the

organization’s current and future risks.

Individual units are managing risks in linewith the organization's global system andin full coordination with each other.

People’s risk appetites are aligned withthe organization's hence preventingfraud.

The management sees external changesand reacts promptly and supportsinnovation and change.

Competent People take theappropriate reactions proportionate tothe level of risk.

Individuals constructively challengeeach others’ attitudes, ideas andactions.

Management and employees do notfeel inhibited about passing on badnews or learning from past mistakes.

Employees do not consider that theirorganization is immune/insulated fromrisk as a result of its superior positionor people.

Leadership has communicated a clearrisk appetite and has presented acoherent approach and strategy.

Warning signs of both internal andexternal risks are shared.

The organization totally understandsthe risks it runs.

Individuals are not automatically blamedbut held accountable for their actions.

Estimate Risksand Constraints

Stakeholders’Analysis and Input Contactual Rights

and Obligations

Risk AssessmentTool

Potential Risks(Risk Register)

Lessons Learned Expert’s InputRisk InformedDecision

Decision Making Process


FEAT

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The Risk Management Approach in CCCFor many international organizations, Risk Management is rapidly developing into a more forward looking approach, with a focus on being proactive rather than merely reactive so as to drive competitive advantages and sustain profitability and growth. CCC adopts a similar approach based on several fundamentals demonstrated in the diagram.

Risk Management Process in CCCThe CCC Risk Management system as detailed in the Corporate Risk Management Manual (Operations), is derived from the ISO31000 (2009) principles and other best practices, tailored to meet CCC’s specific needs.

“CCC Risk Management Policy Statement confirms the Executive Management’s commitment to implement a formal and structured Risk Management process that shall be applied by all CCC employees.”

Development of Risk Management in CCC• August 2009: Projects Risk Management (RM)

Initiative launched.

• September 2009: First RM Policy Statement issued.

• December 2009: Projects RM Manual issued.

• May 2012: Revised RM Policy Statement issued.

• April 2014: Executive Risk Advisory Committee re-established.

• June 2014: Revised Corporate RM Manual issued.

• May 2015: New iRisk system to be launched.

During the year 2014, efforts were made to identify the top risks that could affect CCC’s operations, whereby 76 risks were agreed upon and communicated to concerned departments. Similarly, the most common 17 risks along with proposed mitigation plans were shared with all projects. Several meetings were conducted with

Strive forImprovement

Transparency &Accountability

Constructive Input& No-Blame Culture

Proactive Management

Deployment of CCC Past Experience

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3. RiskAssessment


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the Executive and Senior Management to discuss some of these risks during the last Projects’ Risk Committee meeting held in November 2014. The following issues were discussed and actions were taken and communicated to concerned staff for implementation:

• Reporting.

• Scheduling.

• Staff availability.

• Variations’ administration.

• Risk Management implementation.

In parallel, meetings were held with some group functional departments like CSD, CED, CPD, PMV and HSE to seek their input and contribution to enrich the Risk Management output.

Our VisionRisk Management implementation track record and maturity are now among the clients’ demands in most tenders and soon Risk Management will be a contractual requirement on all projects. Accordingly, we need to be prepared to face the challenges by:

• Spreading Risk awareness among all staff.

• Effective contribution by all projects/functional departments.

• Risk Management to be inherent to our routine processes.

• Improve quality of risk data and reports.

• Quantitative assessment of Risks.

• Make better use of the Lessons Learnt and Knowledge Management initiatives to enrich Risk database.

“Risk Management is the thing that makes the difference between success and failure.”

Nigeria, 9

Botswana, 2

Senegal, 1

Thailand, 1

Egypt, 2

Algeria, 3

Morocco, 1

Oman, 10

Iraq, 1

Jordan, 3Palestine, 2Kazakhstan, 2

Kuwait, 3

Qatar, 10

Saudi Arabia, 6

UAE, 10

Projects * Supported by Risk Management Department

* 66 projects as of March 2015


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Corporate Risk Management at CCCW. WAKILEH

As a leading construction company, CCC has always followed a balanced approach to risk management. Risk management has been embedded in our business principles and throughout our policies and procedures. This has helped us achieve impressive growth through challenging market cycles and conditions. This is also evidenced by our track record of successful project execution, which continues to be reinforced by a constant effort to achieve operational excellence throughout our value chain activities.

With expanding operations and increasingly complex projects stretching across new geographical areas, CCC has recently embarked on enhancing the risk management practices. In order to improve our risk assessment and analysis capabilities, a new framework for corporate risk has been established, with a structured methodology that can be standardized and consistently applied throughout the organization.

The corporate risk management approach follows established industry best practices, including ISO 31000:2009 Guidelines and Principles. However, regardless of which standards are applied, all risk management practices tend to address four simple questions:

. What are we trying to achieve? (Can we clearly articulate and quantify the business objectives?)

. What could hinder or help us in achieving these objectives?(What are the relevant business threats and opportunities?)

. Which of these are the most important?(Do we apply clear assessment criteria to prioritize risks?)

. What shall we do about it?(What risk treatment or mitigation strategy should we plan and action?)

The rigour, discipline and rhythm that we apply in addressing these simple questions will ultimately determine the maturity level of the organization’s risk management capability.

Corporate Risk, or Enterprise Risk as widely known within the industry, is aligned with Project Risk management and utilizes similar tools and methodologies. For project risk analysis and prioritization, the risk likelihood and impact ratings are measured relative to project objectives, which typically include cost, schedule and quality, whereas for corporate risk, a similar risk rating approach looks at the overall impact on corporate goals including strategic, financial, operational and compliance objectives.

To compile the list of corporate risks, we reviewed a listing of over 150 identified risks that was recently prepared with the help of a dedicated consultant. The categorization of this risk inventory (or risk register) was based on the major operational processes as applied within the CCC organization, such as


FEAT

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Corporate Risk Management at CCC

business development and corporate planning, estimation and sales, budget monitoring and control, accounting and audit, finance, insurance and treasury, HR, Legal, IT, EHS, contract administration, construction support and quality management. In order to simplify the risk prioritization and mitigation approach, this listing was re-organized into three main categories that include internal risks, external risks and strategic risks including corporate governance risks as summarized in the table.

Internal risks mainly address internal processes, including HR and other operational or “controllership” processes at the corporate level. For external risks, we look at a multitude of competitive risks, and continuously evaluate changing market dynamics. Within this category we also consider all other traditional risks, including potential political, economic and other disruption risks that may impact our operations. Keeping in mind the relevant inter-linkages that are common across all risk categories (no single risk can be purely internal or external) and recognizing that risks are dynamic and require frequent review and assessment, this framework remains adaptable and allows us to simplify the analysis, prioritization and mitigation approach. For example, for internal risks which are conceptually within our control, we would focus more on minimizing the likelihood of occurrence and preventive controls, rather than focus on post-impact or recovery controls.

The risk categories and subgroupings were reviewed with senior management during individual interviews and the risk priority ratings were revalidated with executive management before selecting some of the top risks for detailed analysis. With initial focus on internal risks, we conducted a series of workshops involving senior staff and project directors, and

the findings and recommendations were reported to the Board of Directors for action approvals.

In order to measure our progress and track the relevant risk metrics, we developed some KRIs (Key Risk Indicators) and initiated their tracking on the Executive Dashboard, as elaborated in separate articles. The Dashboard continues to be developed into an effective risk monitoring tool, where data is aggregated at the Area and Group level, and relevant indicators are tracked to establish trends and provide business intelligence. This is also where early warning flags can be provided in case an alarm threshold is reached. The Dashboard data is accessible by senior management and should serve as a useful tool to support our efforts in continuous improvement initiatives.

Internal Risks Strategic Risks External RisksPreventable Predictable Triggers outside our control

HR Risks:• Employee Perf. / Motivation• Retention of Critical Skills• Succession Planning

Corp Governance Risks:• Board Oversight Practices• Org Structure / Alignment• Leadership Succession

Competitive Risks:• Relative Productivity & Cost structure• Emerging competitors in specific

segments• Shift to favor smaller contractors

Controllership Risks:• Mgt / Cost Reporting• Contracting Terms• Accountability

Strategic Risks:• New / Remote Areas• Large Project Execution• EP Partnering

Volatility & Disruption Risks:• Political & social instability• Liquidity / Economic risks • Other external disruptions; Natural

disasters, IT security, Interest rates, Currency, Commodities, etc.

CCC Objectives for Corporate Risk Management• Increase the likelihood of achieving

the business objectives by proactively identifying the threats and opportunities that impact these objectives.

• Reduce unacceptable performance variability and enhance our team performance.

• Align and integrate risk management across multiple functions using a common framework.

• Minimize surprises and successfully adapt to the changing business environment.

• Enhance corporate governance by strengthening our Board oversight and setting clear roles and responsibilities.

• Improve our overall decision making and develop corporate risk management as a competitive advantage.


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Using Key Risk IndicatorsW. WAKILEH

Key Risk Indicators (or KRIs) are metrics that measure the level of risk within the company operations and are used to provide an early signal of increasing risk exposure. They are linked to Performance Indicators as relevant metrics that help measure business performance and readiness in a quantifiable manner. Proper measurement and evaluation of these indicators will lead to better analysis of patterns and trends, and in general contribute to better predictive business intelligence.

Most organizations are familiar with the concept of Key Performance Indicators (or KPIs) and their use in measuring progress relative to established business performance targets or objectives. Similarly, the Key Risk Indicators are selected to measure the risk factors that could deter the Company from achieving these objectives. In this respect, KRIs serve as “heads-up” display to see where the business risks may be coming from. These risks could be related to a multitude of uncertainties that are fairly prevalent in the construction industry. KRIs are therefore more a measure of the potential gaps that need to be addressed in order to improve the chances of achieving our business objectives.

Emerging Contract Changes and Variations RisksThe increasing complexity of projects means that we face many uncertainties and associated risks in delivering the contractual obligations. Most projects nowadays are considered fast track projects with a longer overlap between engineering and construction. An added complication is related to the numerous contracting entities and geographical locations being involved where it is common to have Project Management, Engineering, Procurement and Construction, each situated in a different location. This results in both the owners and the contractors encountering increased levels of changes and variations to be addressed during the project execution. Variations are therefore inevitable in most projects, and in fact are becoming more prevalent, as observed in recent trends. Consequently, the risk of improper planning or tracking of variations could impact larger proportions of project costs and revenues thereby calling for closer attention from management.

Details of handling the processes for variations orders and requests are usually established within the contractual terms under the “Change Management” clauses. FIDIC and most other contracting arrangements specify the framework and responsibilities for variations notification,

documentation, review, approval and/or rejection. The process is meant to compensate the contractor for work that is executed beyond the contract scope of work, and at the same time to protect the clients and owners from unjustified claims and cost overruns.

Improving Data Collection of the Variations Logs:Timely client notification is generally a contractual requirement. Timely documentation and reporting therefore play an important part in the variations process from initiation to closure. To this end, data collection and reporting for the Variations Log summaries have always been a requirement as described in the CCC Project Controls and Contract Administration manuals.

Proper reporting starts with compiling relevant variations data into summary Variations Logs for easy reference and tracking by the project management team. The Variation Log files are based on standardized templates that contain the required information in a structured format that allows aggregation at the Area and Group level. The data includes expected information such as detailed dates for VOR submittal and approvals (or rejections), along with the associated itemized values. Other information covers related project references, and a categorization code for the type of VOR.

Recently, the Corporate Risk team was instructed to compile this data across all projects in order to analyze and extract relevant business intelligence. More than 100 past and on-going project logs have been collected and uploaded so far on the Executive Dashboard. The data will be “live” and available to concerned Company management.

Current selected KRIsThe extensive data included in the Variations Logs would enable us to design many different KRIs to monitor various aspects of the variations status and trends. However, for practical purposes, only few KRIs are needed. During a meeting with the senior executives in August 2014, it was decided to track and report on the following KRIs:

Value of Pending Variations as a Percentage of Contract ValueThis is the most relevant indicator for variations, since it reflects the amount of unrecognized income from added work. It has a direct impact on the profitability and cash flow of the projects.


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Using Key Risk Indicators

A low value for Pending Variations would normally indicate an effective Variations and contract management process, whereas a high value of pending variations, especially around the end of a project, indicates a situation that calls for closer attention.

Value of Approved Variations as a Percentage of Original Contract Value, and Value of Approved Variations as a Percentage of total Submitted VariationsBoth of these metrics reflect the percentage of success in recovering entitlement on Submitted Variations.

Value of Rejected Variations as a Percentage of Original Contract ValueThis simple metric serves to highlight the extent of Variations and Change Order requests that have been rejected by the client. An exceptionally high value of Rejected Variations versus Contract Value or versus. Total Submitted value could require an in-depth analysis to identify any particular root causes.

Improving the Visual Display of Variations KRIs on the Executive DashboardOnce the variations data are updated for all active projects, the selected KRIs can be calculated for each project and then aggregated at the Area or Group level as required. These indicators can then be represented graphically to provide a simple and clear display of relevant metrics. The sample KRI bar charts depicted above show how data can be extracted from multiple logs to allow viewing risk metrics at a glance, with the ability to drill down to Area and Project levels. This is a significant improvement that allows Executive management to monitor key information much quicker, since accessing and reviewing the multiple Variations spreadsheets would be a time consuming effort.

Further ImprovementsThere are plenty of other risk indicators that can be used to provide meaningful business intelligence and help improve our performance. But in principle we believe that this is a good starting point that can always be further developed to monitor any other risk metrics according to business needs. One of the metrics


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Using Key Risk Indicators

currently under development is the cycle time for approval of variations, since this is a good Indicator of the extent of control and follow-up we exert over the review and approval process. Similar metrics and indicators have been developed to look at other risk areas related to Cost and Schedule. Other work is focused on facilitating and automating data collection. This will help minimize the burden of duplicated reporting, and at the same time improve the quality and consistency of reported data from multiple sources.

ConclusionsWith increasing complexity and stronger market competition, our ability to improve performance will be enhanced by the efficient use of analysis tools that allow us to extract better and faster business intelligence. Carefully selected KRIs can serve as an important tool to better understand risk uncertainties and help us with a structured approach to achieve our objectives. In this example, using the selected risk indicators is meant first and foremost to help the Project and Area managers to get a quick view of the effectiveness of the contract variations management processes.

However, we need to keep in mind that all indicators are only as reliable as the underlying measured and reported data. As we raise awareness of the importance of accurate and timely reporting, we will expand our capacity to undertake better analysis of common patterns and gain consensus on addressing the root causes. The value of using the KRIs as a management tool will materialize as we gain more experience and insight from the acquired intelligence. In turn this will lead to a more robust decision making process, and will ultimately serve as broader learning and improve our performance on future projects.


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Conducting Effective Risk WorkshopsW. WAKILEH

As part of seeking wider participation in the review of corporate risks, a series of workshops was conducted, with each workshop dedicated to one of the top identified risks. The participants were nominated by executive management and represented a broad spectrum of expertise including project managers and directors, area managers, project risk and construction support managers and other subject-matter experts.

In preparation for the workshops, each participant was solicited to provide their inputs covering all risk aspects beginning with reviewing the risk definition and subsequently providing a summary of causes or triggers, consequences or impacts, current processes and controls, and associated gaps or potential improvements. The emphasis was to identify any gaps within the applicable controls and procedures, or related practice implementation, in order to better formulate the recommended actions. The objective of these recommendations centered on minimizing the likelihood or the impact of the risk. Participants were also solicited to provide supporting data and actual examples based on their current experience.

The preliminary inputs from the team were compiled in a structured format and used to facilitate the workshop discussions which typically lasted for one full day. This is where a lively debate and exchange of ideas between all participants helped to align diverging views and reach better consensus on the underlying risk issues and causes. The key observations and recommended actions were highlighted, along

with proposed action owners. The workshops also helped to identify the relevant metrics or key indicators that can be tracked in order to measure trends and progress.

The workshop inputs were then summarized and subsequently presented to the Board of Directors for appropriate consideration and follow-up. Once approved, the key indicators were compiled and tracked on the newly updated Executive Dashboard.

The following is a high level summary for three workshops covering internal risk topics.

Workshop on Cost Reporting RiskWithout timely and accurate cost reporting and forecasting, we have no clear visibility of actual performance and little hope of providing effective intervention and mitigation when needed. Cost reporting timeliness and reliability were therefore identified within the top controllership risks. This was evidenced by the reporting data statistics which indicated that only a low percentage of reports in 2013 were issued on time. With the introduction of automated notifications and the raised awareness within top management, the timeliness of reports issued on time and those issued within one month, has improved to over 50% in 2014. During the workshop, several recommendations were made for sharing best practices, in particular where some projects had tighter restrictions on reporting timeliness due to client requirements.

Cause

Cause 2

Cause 3

Consequense 1

Consequense 2

Consequense 4

Consequense 3

Event

Sources of RiskEscalation Controls

Prevention Controls Mitigation and RecoveryControls

EscalationFactor

Illustrated above is the “bow tie” conceptual tool which was used for qualitative risk analysis during the workshops. The tool serves to capture multiple risk causes, consequences and existing controls

and associated gaps. This tool was further adapted to verify linkage to business objectives, and to help formulate the key risk indicators.


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Formulating robust indicators for the “reliability” of reporting is clearly a bigger challenge, since the statistics are not readily available. The current focus is on the accuracy of forecasting, in particular for better forecasting of cost estimates at completion, and the deviations from approved budgets or plans. Some indicators and trends are already being tracked on the Executive Dashboard. The table provides some extracts from the workshop findings.

Workshop on Variations Management RiskContract variations are common across all projects regardless of contract type or segment. They are inevitable and as such require proper contract risk assessment and planning. Ineffective variations management processes could lead into negative client relations, with claims and disputes that could result in costly arbitration or litigation and consequential erosion of company profitability.

Prior to the workshop, several risks covering variations submittal timeliness and documentation quality were listed separately.

When these were combined under the broader heading of variations management practices, the risk ratings were updated resulting in a higher priority rating. The inputs from the workshop participants highlighted multiple consequences with varying severity. The multiple risk causes

were regrouped into six sub-categories to simplify the review of mitigation approaches. These included: current guidelines and procedures, contract conditions and contracting arrangements, variations preparation and submittal practices, client and partner practices, site resources and capabilities, and Area/MOA support resources and organization.

The table includes some extracts from the workshop findings. The topic of related Key Risk Indicators is further elaborated in a separate article.

Relevant Business Objectives Process Observations Recommendations• Manage the projects’ performance within the

approved budget through timely and reliable measurement, and accurate financial reporting.

• Capture current status and accuracy of “Forecast to complete” and provide early flags for major deviations to limit the variance in estimates.

• Take necessary and timely corrective action in case of unfavorable variance.

• Apply lessons learnt to improve correctness of estimates and budgets, and improve company profitability and competitiveness.

• There are wide variations in reporting timeliness and accuracy; with the quality of reporting usually indicative of actual performance.

• The cost and progress reporting process is not being fully utilized as part of the project management and control tools.

• Proper Cost Reporting requires better awareness and training at all levels including PM/CM and Area level, better estimating capabilities for budget revisions, better integration of IT systems across the various functions, and requires improving oversight engagement at executive management level.

• Develop key indicators to detect the variability of cost reporting in relation to actual results. Benchmark against “successful” projects (consistent/on time/well managed projects).

• Identify areas for reporting process improvement; based on historical data for wide variance between forecasting and actual results.

• Organize workshops for PMs to explore and share best practices in budgeting, work packaging, and cost control.

• Provide IT tools to link data sources directly to automate cost reports and minimize duplication of reporting efforts.

Regrouping and redefining Variations and Claims related risks resulted in a higher priority

rating.


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Workshop on Succession Planning RiskSuccession Planning is interlinked with most other HR challenges and risks such as training and career development, attracting and retaining top talent, effectiveness of performance measurement; company retirement practices, organization vitality, and employee motivation. Ineffective succession planning practices could lead to lack of readiness for key positions at various management and leadership levels when needed, as well as potential loss of talent and critical knowledge. In extreme cases it could impact business performance if emergency

replacement resources are necessary but cannot be applied within the time constraints.

The workshop involved an extensive team discussion and highlighted the key issues that must be addressed for both the short and longer terms. The preliminary data review revealed some immediate challenges, in particular considering the tremendous growth of manpower over the past 10 years, where some functions would require accelerated development to meet the business needs. Some findings from the workshop are shown in the table below.

Relevant Business Objectives Process Observations Recommendations• Identify all project entitlements beyond the

original contract scope of work and proactively pursue equitable compensation throughout the project execution phases.

• Ensure accurate and timely submittals for contract variations and change orders, per the contract requirements.

• Provide early warning for delayed submittals or settlements that could impact overall project cost and schedule overruns.

• Identify impact of variations/claims on budget variances; and flag any exceeding an agreed threshold relative to the projects total value.

• Apply Lessons Learnt to identify weaknesses in the type of contracts signed, and establish track records for partners and client trends.

• The current scale and trend of pending variations relative to total revenues indicate that this risk deserves a higher priority.

• Improving variations and contract management practices represents a significant opportunity to improve the company performance.

• Several gaps were identified within current Variations management practices, and associated preventive and recovery controls; such as: need for updating/standardizing the guidelines and procedures, improving contract management and centralized support resources, better training and awareness at relevant levels, and more timely reporting practices.

• Wide variability in practices between Areas calls for better consistency, better cross-functional coordination, and closer management oversight.

• Improve data collection of variations logs and provide trend analysis at the Area and Group level.

• Revise and update the Contract Administration Manual including detailed procedures for Variation management that can be customized for project specific needs.

• Improve engagement of Contract Managers on the projects. Enhance contract management training. Enhance Variation estimation capability at site/Area level.

• Utilize the company IT systems to log and track contract deliverables. Develop and utilize the new BIM/C3D/Scenario browser tools.

• Consider establishing a centralized dedicated functional organization to support contract management at the Group level.

Relevant Business Objectives Process Observations Recommendations• To ensure the smooth transition and minimize

disruptions for planned and unplanned replacements for key positions.

• To continue and enhance the effective performance of the CCC Organization, Departments, Areas, and work groups, through continuous development of key personnel.

• To maintain a sustainable and young organization, ready to take on future growth challenges.

• Succession processes need to be formalized by dedicated procedures.

• Informal processes could be falling behind in producing required staff to support current or future growth.

• In the short term, accelerating development and promotion of younger staff for specific functions would be required, as well as extending the external recruitment mix for experienced talent.

• Establish an executive committee to formalize Succession Planning.

• Address short term plans and needs, and accelerate development through “shadow programs” where needed.

• Initiate clear company actions and procedures, under supervision of a Board sponsor, with agreed goals and milestones to be achieved.

• Establish key indicators for regular reviews in Board meetings to verify progress relative to agreed goals.


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Concepts of Risk Analysis & ManagementR. DAVIES

Risk Management - What is it?Project risk management is an integral process that primarily aims to identify potential risks associated with the project, analysing these risks and subsequently responding to these risk factors in an effective manner. It involves managing various risks as the project evolves through each of its stages. A myriad of people with a diverse set of skills are involved in its implementation and development, including: project managers, departmental heads or their designated competent engineers or supervisors, relevant HSE personnel and other applicable competent staff depending on the scope of the project.

Through the utilisation of risk management there is the implementation of control of potential future events. Its adoption is therefore a proactive mechanism instead of reacting to events after they have occurred. Vigilant usage of risk management systems not only reduces the severity of these potential events, but also reduces the likelihood of these events occurring in the first place. Without this system in place adverse events on a project can cause enormous monetary deficits.

Risk Management SystemsIdentification of risk, whilst being one of the primary integral functions, is not what a risk management system is solely designed for. These systems must also establish and quantify any specific risk and effectively predict the subsequent impact it could have on a project.

Although there is an initial increase in incurred expense via the introduction of a risk management system, it is more than compensated for through the system’s inherent

advantages. At the planning stage, all potential risks that could inhibit the project’s success are identified by the project team. Those risks that are most likely to occur are highlighted via metrics such as past experience regarding likelihood of occurrence, historical data, KPI’s and lessons learned. Risk management increases transparency allowing a multitude of potential issues to be avoided from the outset of the planning stage via proactive action.

It is important to note that risk management is a continuous process, whereby it must not only be completed at the initial stages of a project, but continuously throughout its life cycle as new previously unidentified risks can occur as the project evolves.

As can be seen in the graph, project costs can increase significantly without the initial risk management input at the initial planning phase.

Having the resources and expertise in place to pre-emptively and proactively deal with identified potential risks allows for the smooth transition of the project. In contrast, by utilising reactive management strategies whereby the project scrambles to rectify adverse, unforeseen events only after they have occurred on site have mounting comparative costs.

Purpose of Risk ManagementThe purpose of risk management is primarily for:

• Identification of potential risks by conducting risk analysis for project activities.

• Implementing appropriate control measures to reduce the likelihood / prevent incidents and accidents from occurring.

• Provision of a rational basis to allow improved

Costs

Costs of realisation

Reduction ofprocessing time

time

TestRealisationPlanningInitial phase Operation Acceptance


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management decision making in regard to all project risks.

• To have an effective proactive plan in place as project success is improved by evaluation of potential issues and developing subsequent strategies to rectify them.

• Ensuring that there is aggressive management of high priority risks.

• Cost efficient management of risks throughout the projects lifecycle (compared to reactive management).

• Allowing management to make informed decisions on project critical issues based on the provision of relevant risk information at all managerial levels.

Definition of Risk• Risk is defined as the likelihood that a given

level of harm from a particular hazard will be realised with an indication of how serious the harm could be. The magnitude of risk is determined by the product of Likelihood (Probability) and the Consequence (Severity) of the outcome.

• Likelihood is defined as how often an event will occur and is usually based on historical data and statistics or sound engineering judgment (the chance that the hazardous event will occur).

• Consequence is defined as how damaging and severe the event might be (the outcome of the hazardous event).

The risk analysis process in place in a risk management system is essentially a quality problem solving process. The determination and prioritisation of risks are assessed and subsequently resolved via quality and assessment tools.

The risk analysis process is as follows:

Step 1 Identification of Risks

As previously stated it is important to note that prior to the commencement of a project not all risks are completely recognisable. During the project’s implementation further risk may emerge.

By utilising risk assessment matrices, risks are categorised and subsequently prioritised, with the HSE risk assessment process consisting of five essential steps.

Step 2 Assessing the Risk

Prior to determining what the best methodology is for managing risks, the project team asks questions such as:

• How will this risk potentially impact the project?

• What is the root cause of the identified risk?

Analysis of a risk assessments risk rating is made without any control measures by multiplying probability by severity.

Risk = Likelihood (Probability) x Consequence (Severity)

Breakdown the Tasks/Activities and Identify the HazardsStep 1

Decide who might be harmed and how? (Hazard effect)Step 2

Evaluate the risks and decide whether existing precautionsare adequate or more should be doneStep 3

Record the FindingsStep 4

Monitor, Verify and Review the Risk ManagementStep 5


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For those unfamiliar with Risk Assessment Matrix numerology, an easy analogy can be made from the ladder image shown.

From left to right as the ladders decrease in quality and safety mechanisms, the ‘likelihood / probability’ of an accident occurring increases depending on which ladder is used.

Whereas the ‘severity / consequence’ of any resultant accident is standardised regardless of ladder as it is mostly based on the height of the fall. This is due to the fact that severity is based on the question ‘what is the worst that can happen’ and primarily remains the same for a specific risk with only the likelihood fluctuating.

Analysis of the Residual Risk Rating - to assess the residual risk that remains with the control measures in place, the consequence and likelihood ratings are again selected from the scales shown in the HSE Risk Assessment Matrix. The product number of these two ratings provides a measure of the Residual Risk rating and completes the risk analysis stage. The Residual Risk Rating is used in the next stage of the Risk Assessment to evaluate whether the risk is adequately controlled or not.

Risk Evaluation - this is the final stage in the evaluation of risks and requires the Risk Assessment Team to decide if the hazards identified have been controlled to ALARP (As Low As Reasonably Practicable) levels.

It is important to note that the risk assessment team should not become overly obsessed with the risk rating figures as they are semi-quantitative and can be subjective. The primary purpose of the risk assessment is to identify

the control measures that need implementation with the figures designed to assist with the prioritisation of these control measures.

Step 3 Developing Control Mechanism for the Risk

By looking to actively influence the identified risks by utilising the strategy of hierarchical control mechanisms (when the most effective solution is at the top and least effective at the bottom) stated below, risks are avoided or reduced.

1. Eliminate the hazard.

2. Reduce the hazard.

3. Isolate the hazard.

4. Control the hazard.

5. PPE is last line of defense.

6. Discipline.

Step 4 Develop a Contingency Plan / Preventative Measure for the Risk

Reduction or elimination of identified risk likelihood are made into tasks by the project team: should any identified risk occur, the tasks associated with them will then have already had short contingency plans developed. These can then be put into action promptly if the risk occurs negating the need for costly reactive management strategies.

As part of the continual assessment process throughout the projects lifecycle the following will be in place.

Look-ahead Risk Assessment: whereby periodic risk assessment meetings are conducted to identify, analyse and provide control and mitigation measures for hazards and risks of the activities (Work, Material, Supplies, Equipment, Personnel, Location, and so on) and tasks planned for the scope of work for that period.

HSE-Look ahead plan: whereby a periodic process (every 3 weeks, 3 months, and so on) of identifying and preparing the HSE requirements to ensure that a certain activity takes place as scheduled and is completed in a safe manner.

Factors Affecting RiskThe concept of risk is multi-dimensional with a myriad of factors significantly exposing projects to higher levels of risk. These include, but are not limited to:

• Staff expertise and experience: Time delays and fluctuations in initial estimated costs can


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compound in the event that certain members of a project team lack the direct working experience / knowledge in a specific area.

• Team Size: Potentially as team size increases there can be increased difficulty in effectively communicating relevant HSE information to all members. This can directly lead to increases in the likelihood of problems occurring.

• Management Stability: If the management team as a whole does not share the same vision / direction for the project it can lead to potential impractical or unrealistic schedules and inefficient utilisation of resources.

• Complexity: With an increase in complexity of a project, from a technical standpoint or through multiple joint venture partners, there can be an increased opportunity for mistakes to be made.

• History: Older project types have a more refined process due to the passage of time. Where a project of a similar nature has been completed in the past there is an increased probability of success.

• Time Compression: If a project is scheduled into a tight time scale there is a magnified increase to risk. With more relaxed / flexible time scales there is the opportunity to better reduce or mitigate the impact of any occurring risks.

• Resource Availability: With better access to resources, in terms of equipment, access to personnel and management support, there is a

marked increase in the likelihood that the team can respond to problems in real time.

Final ThoughtsIt is imperative that project managers look to ensure that adequate resources and information are provided to reduce risk at all stages of a project. Roles, responsibilities and the effective communication lines in relation to risk identification and subsequent mitigation are effectively allocated, so that the risk management system is integrated in all facets of the project activities.

Nevertheless, projects will inevitably have remaining residual risks. It remains a paramount strategic decision whether these risks are taken and can be subsequently borne if they do happen to occur.

Effective risk management must permeate all areas, departments and processes of any project. It must be coupled with the full commitment as well as the risk conscious behaviour of each CCC individual for it to successfully work.

HSE LOOK AHEADPLANNING CYCLEScope of Work Hazard Identification &

Risk Management

Mitigation Measures ofpotential Hazards & Risks

Identification of therequirements and needs:Supplies, Material, EquipmentPersonnel, Location

Implementation &Monitoring

Prepare for NEWHSE - Look Ahead Plan


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Risk Assessment as an HSE ToolO. REED

Risk Assessment is an HSE tool that is used to evaluate the risk associated with construction activities that could cause harm to employees. An activity does not necessarily need to be high risk in order for the risk assessment process to be applied. The risk assessment process can be utilised for non-HSE related activities as well but is more widely applied to high risk construction activities that have the potential to result in injury or property damage if performed in an unsafe and unplanned manner.

A risk assessment will protect workers and business assets as well as comply with HSE laws and regulations. A risk assessment should be conducted before employees begin a task that

presents a possibility of injury or adverse health effects.

Those who conduct risk assessments should attend risk assessment training to enable them to be competent to conduct risk assessments. Training will provide the ability to identify hazards, categorise hazards and evaluate risks. Those abilities allow a suitable and sufficient risk assessment to be conducted.

There are no fixed rules on how a risk assessment should be carried out but there are some general guidelines that should be followed. A common approach is a five step process that enables a risk assessment to be done correctly.


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Risk Assessment as an HSE Tool

These five steps are as follows:

Step 1

Identify the HazardIn order to identify hazards there needs to be an understanding of the difference between a hazard and a risk. A hazard is something with the potential to cause harm and a risk is the likelihood of that potential harm occurring. Hazards can be identified using different approaches such as observing the task, breaking the task down into steps, interviewing employees or reviewing existing procedures associated with the task being risk assessed.

Step 2

Decide who might be harmed and howOnce the hazards have been identified there must be an understanding of who might be harmed and how. This may include not only workers but the public as well, should the risk assessment indicate the public could be affected.

Step 3

Evaluate the risks and determine control measuresAfter determining the hazards, deciding who might be harmed and how: those individuals need to be protected. The hazards can be removed completely, engineered out or mitigated in other ways so that an injury becomes unlikely to occur.

Step 4

Record the findings and implement themFindings of a risk assessment should be written down or recorded. This not only shows that the hazards have been identified, but those who could be harmed and how they could be harmed have also been identified, as have the actions necessary to eliminate or minimise the risks.

Step 5

Review the assessment and update when necessaryThis is an extremely important step as workplaces change frequently and as a result, risk assessments need to be reviewed and updated when necessary or if a weakness in the initial risk assessment is identified.

Once the risk assessment process is completed, it is utilised to create a method statement associated with the task that was risk assessed. A method statement is a written procedure outlining the method, process, equipment and steps involved with performing a task in order to protect employees and address the findings of the risk assessment.

Finally and most importantly, the results of a risk assessment should be communicated to the concerned employees in order for them to understand the risks involved in the task and the necessary actions for them to take to perform the task safely and without injury.

CCC has a risk assessment procedure that is a requirement on all CCC projects. The procedure is PP 729 (Risk Assessment Procedure). This procedure provides instructions for conducting a risk assessment. A specific task such as sandblasting is evaluated for the risks associated with the task. Hazards are listed, likelihood of that hazard occurring, severity of the occurrence and frequency of that occurrence in the past. A value is then assigned to each of these parameters and a total risk number is assigned to the task. This will then provide an indication of whether or not additional precautions are necessary or if the activity is acceptable under the current risk assessment rating. See the example of the CCC risk assessment form. In this example the first page of a risk assessment associated with wall finishing activities (working at height) is shown. This illustrates the valuable information that can be identified in a risk assessment, the risk rating before actions are taken and the risk rating after actions are taken.

The main intent of a risk assessment is to reduce risks associated with a task to As Low As Reasonably Practicable (ALARP). ALARP is a term frequently used in the HSE field in terms of dealing with hazards and risks. Risk assessment is one of the most valuable tools to achieve ALARP. Risk assessment is a valuable tool in HSE to protect workers and assets as well as develop safe work habits and a strong safety culture.


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Late Said Khoury Honoured in NablusPalestine

BULLETIN EDITORS

The memory of our recently deceased Chairman, the late Said Khoury, was honoured by the naming of a city square in Nablus, Palestine after him, once again proving that the great man touched the lives of so many people in the area.

Mr. Samer S. Khoury and the Mayor of Nablus Mr. Ghassan Shakaa


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SAbu Dhabi Hosts IPLOCA

48th Annual ConventionUAE

M. ABUSALAH

The International Pipeline & Offshore Contractors Association (IPLOCA) held its 48th annual convention in Abu Dhabi, United Arab Emirates, at the Ritz-Carlton Hotel and within eyesight of the remarkable Sheikh Zayed Grand Mosque. This was the first IPLOCA Convention held in the Middle East in many years. The location drew more than 600 delegates. Najib Khoury of Consolidated Contractors Co. and IPLOCA’s 2013-2014 President was pleased to host the convention.

IPLOCA has 252 members and associated member companies. The annual IPLOCA Convention is known for its blend of business and cultural activities.

The open general meeting began with a presentation by John Atrill of BP on the 3,500km Southern Gas Corridor connecting the Shah Deniz platform in Baku to Europe. With over 50,000 different parties involved, this typified large-scale coordination. Another example of cooperation between client, contractors, suppliers and workers over a large geographical and culturally diverse region is MCJV, a joint venture between McConnell Dowell and CCC, illustrating the benefits of an integrated team approach on the APLNG Pipelines Project.

The technical presentations that followed included a talk by Robert Jones of TransCanada on some of the challenges it faced in Mexico and North America. Scott Critchfield of ExxonMobil

discussed issues the company faced delivering an LNG project in Papua New Guinea. In both regions creative and innovative technologies overcame challenging conditions and the importance of community involvement in the success of the venture was highlighted. Edward Heerema of Allseas spoke about his new ship the Pieter Schelte, an innovative topsides installation vessel with pipelaying capabilities and Loek Vreenegoor of Shell discussed using natural rather than man-made methods in pipeline construction.

Conventioneers were also treated to a presentation by Sheikh Nahayan Mabarak Al-Nahayan, Minister of Culture, Youth and Community Development, for the UAE. His Excellency reiterated the importance of cooperation and understanding and called upon the industry to focus on safety, the environment and public education.

Other presentations included IPLOCA’s Health and Safety Award Program and the Environmental Award. Statistical data regarding both can be found at IPLOCA’s website, iploca.com.

Cultural activities included a tour of Abu Dhabi, a tour of Dubai City and a catamaran cruise. A special treat for all delegates was “An Arabian Adventure” sponsored by CCC and NPCC far out in the desert away from Abu Dhabi.

IPLOCA President Najib Khoury hosted the President’s dinner in Emirates Palace, Abu Dhabi. Tawfiq Khoury and Samer Khoury were present.

His Excellency Sheikh Nahayan Mabarak Al-Nahayan (left) being welcomed by Najib Khoury IPLOCA President (centre) and Aqeel A Madhi NPCC CEO


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BDF Board of Directors and Board of TrusteesJoint Meeting in Amman

Jordan

M. KaraM

BDF held a joint Board of Trustees (BoT) and Board of Directors (BoD) meeting in Amman, Jordan on Wednesday 1 April 2015. The meeting was opened with a minute’s silence in memory of the late Said Tawfiq Khoury, founder of the Bethlehem Development Foundation. Samer Said Khoury thanked all for attending and expressed everybody’s commitment to continuing the journey of his late father, Said Khoury.

Mr. Khoury was elected to succeed his late father as Chairman of the Board of Trustees with Dr. Hanan Ashrawi as Vice Chairman and Dr. Varsen Aghabekian as secretary.

Ziad Al Bandak, Chairman of the Board of Directors, talked about the history of the Initiative launched by the late Said Khoury and the foundation he established.

Architect Basma Al Husseini presented the Strategic Development Plan completed by Khatib & Alami and Arup in 2012. Nafez Husseini talked about horizons and prospects for the desired funding for the proposed BDF projects. Mazen Karam talked about the status of the four projects currently in progress including the Solid Waste Management Project, the Manger Square Beautification and Rehabilitation Project, the Community Sports and Children’s Playgrounds and Omar Mosque Sanitation Units Rehabilitation.

Ms. Vera Baboun, Mayor of Bethlehem, talked about the most significant achievements of the city during the past couple of years which included the completion of the Master and Strategic Plan for the city of Bethlehem. She also presented an update of the issue of the Annexation Wall at Cremisan Monastery. Nicola Khamis, Mayor of Beit Jala, talked about the importance of tourism for Bethlehem, while Hani Al Hayek, Mayor of Beit Sahour, discussed the importance of conducting income-generating projects that would revive the economy of Bethlehem and prevent youth immigration.

Dr. Nabil Qaddumi talked about soft projects which encourage human capacity building and job creation; Hani Abu Dayyeh talked about preparing for tourist exhibitions on an annual basis in Bethlehem, which local religious institutions will participate in and support in order to promote religious tourism and Dr. Fadi Kattan presented the BDF financial report that details the expenses of the project implemented by the foundation during 2014.

All attendees recommended continuing to work on securing the necessary funding for the implementation of a range of high-priority projects, which include infrastructure and the promotion of inbound tourism to Bethlehem.


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S2014 Knowledge Management Awards

A. SERSY

The Knowledge Management Awards are given to projects and individuals who made significant contributions last year to the company knowledgebase, FANOUS. Besides posting articles in Fanous, the winners have contributed significantly in promoting the KM initiative by answering technical questions, encouraging their peers to contribute to Fanous and participating positively in discussions that led to sharing of process improvement ideas. The winners are:

9 LR2 Project (Qatar) - Presented with the “Best Project Contributions” Award for posting imperative write-ups regarding Pipe Spool Fabrication Improvement, Grinding of GTAW Tungsten Electrodes, Master Schedule, and Quantitative Schedule Compression Simulation using @risk- GSF AGRP Pipe Line. It should also be noted that project staff have also been active in collaborating online assisting others with day-to-day project activities and challenges.

9 M. S. Aldaoud (RHIP) - Presented with the “Best Project Manager Support to KM” Award for single-handedly conducting a KM training and induction session at RHIP project, encouraging project staff to collaborate on Fanous with project challenges and knowledge-sharing, being an active member of Fanous, answering questions and assisting others, and for supporting the KM CCC Project

Initiative specifically, with his sponsorship in completing the RHIP Project Profile and NPDD.

9 M. Issa (SSSP) - Presented with the “KM Special Recognition” Award for his contributions to Innovative methods and technologies and for sharing project best

Mohammad Issa (2nd from right) - RMP Project. I. Khaled (centre) presents him with the Award with other senior staff and A. El-Sersy (right) in attendance

B. A. Salim (left) - at MTB Project. Z. Haddad presents him with the Award,


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practices. Mr. Issa has also been instrumental in contributing towards putting together CM-CSQM-015 - CAMP INSPECTION AND AUDITING, and CM-CSQM-013 - CAMP LAYOUT AND DESIGN manuals.

9 B. A. Salim (MTB) - Presented with the “Best Individual Contributor” Award for his extensive and well-detailed contributions regarding HSE and Sustainability practices and procedures at the MTB project. Such write-ups include, but are not limited to, Sustainability Case Study: Recycled Concrete & Aggregates, Local Recruitment & Employment Plan, and CNG & Hybrid Buses - Usage Limitation & Challenges.

Congratulations to the winners!I believe in “the Wisdom of the Crowds.” As proven over and over again, teams from different backgrounds achieve better results than one or two individuals. I urge you all to contribute to the Fanous recommended best practices, performance improvement ideas, case studies, new business ideas, and KM success stories. KM success stories are cases when an individual learns about a practice through Fanous (e.g. by asking a question or searching for knowledge) then implements this practice successfully in his project. Such success stories are the best way to demonstrate the practical benefits of KM.

This year, I look forward to more knowledge-sharing and better use of our know-how so that we come up with new, improved and more efficient ways of operating.

J. Batey (left) and O. El-Jerbi (centre) accept the award on behalf of the LR2 Project team, presented by D. Mavrikios.

B. A. Salim (left) - at MTB Project. Z. Haddad presents him with the Award,


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SDukhan Highway Safety Achievement

Qatar

B. DENNIS

Consolidated Contractors Company (CCC) and Teyseer Contracting Company, working on the Dukhan Highway Central Expressway Project, achieved a remarkable accomplishment of 30 million man-hours without lost time injury (LTI) thus demonstrating their commitment to the welfare and safety of their employees and workers in the workplace through the adoption of rigorous strategies and processes.

An award ceremony was held at the Public Works Authority (Ashghal) headquarters to mark this achievement. Representatives from Ashghal Expressway Programme, relevant partners and CCC’s safety manager attended the ceremony.

Eng. Jalal Yousef Al Salhi, Director of Ashghal’s Infrastructure Affairs awarded the certificate of appreciation to Project Director, Bassam Salem, for this achievement and for the company’s commitment to ensuring the required standards of safety in the workplace.

Eng. Al Salhi extended his congratulations to the project team on this milestone achievement: Mr. Salem also expressed his thanks for the recognition and stressed his company’s keenness in fully adhering to safety procedures in completing the project without accidents.

The programme included the provision and use of the first crash cushion, European approved and tested temporary barriers both metal and concrete including accredited installation, specialist road side working safety training accredited to UK and European standards and certified accordingly. These initiatives included intensive health and safety discussions and awareness sessions, weekly management inspections, access control for sub-contractors, emergency support vehicles, site notice boards and other related procedures.

The Dukhan Highway Central Project is an integral part of Ashghal’s Expressway Programme that will create one of the world’s most impressive urban road networks. The project is managed by KBR as the programme management consultant and WS Atkins as the supervision consultant. A substantial section of the Dukhan Highway Central Project has already been opened to traffic.

From left to right: Allan Mc Ewan QHSE Lead Assessor; Grant Gellatly KBR Project Manager; Eng. Jalal Yousef Al Salhi Director of Ashghal Infrastructure Affairs;Bassam Salem DHP Project Director; Barrie Dennis DHP HSE Manager


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Design Activities for Construction ProjectsM. SOUFYAN

At the initial stage of my career I worked in manufacturing for a design department. Initially, I designed cookers, refrigerators and industrial ovens, and then I shifted to the design of elevator systems for Dover Elevators. As a designer for a design office, our work was based on similar design with introduction of new requirements for a specific project. For a design that stands on its own, every engineer did his own design and checked the correctness of the design. If the design is applicable to hundreds or thousands of items, which means one single mistake will be a multiple of 100 or 1000 mistakes, then the design has to be verified by other engineers. For validation purposes, a prototype was manufactured. Of course, this type of design work cannot be compared to complex plants (oil and gas) or to complex civil projects such as RLP. However, we need to realize that the principles of design in accordance with the ISO 9001 standard are the same for a product or for a plant regardless of the complexity or the size of the project.

In many cases, contractors are involved in design and build projects or at least projects that are already designed and require design validation. Contractors by taking such projects, in most cases, are assuming full responsibility for the design, taking higher risk, and reducing the risk for the owner.

In one of the projects where the design was carried out by a reputable design company based in Lebanon and during my visit to said company for purpose of quality audit, I asked the Project Manager how they were doing the validation of the design. The answer I received was related to a verification process or checking the design by engineers that were not involved in the initial design. It turned out the concept of validation was not understood by any of the engineers working on that design.

This experience was repeated on another project where our joint venture company was in charge of engineering. I had a long discussion with the Engineering Manager during the selection the design subcontractors. I mentioned to the Engineering Manager that he should request from all design subcontractors (among other things) how they would do the design review,

the design verification and the design validation. I received an answer from the Engineering Manager that I am using three different terminologies for the same process. Simply put, he said that review, verification and validation are different terms for the same activities, indicating total ignorance in relation to design and development in accordance with ISO 9001 standard.

Many design subcontractors apparently have a lack of understanding of the design and development process based on the ISO 9001 standard (international organization for standardization) and definitely need training and education in this field.

A design subcontractor is responsible for reassuring their customers that they provide a high quality service: if we consider ISO 9001 requirements, design subcontractors should provide documented processes illustrating the following:

• Design plan.

• Design deliverables for each design package.

• How to identify design input / output.

• How design activities are managed.

Is DesignSpecificaton Adequate

Customer Requirements

Contact

Specifications

Acceptance Criteria

Regulations

HSE

Review Customer Requirements

Prepare Design Specifications

Review Input

Design State

Design Output State

Design Review, Verification & Validation

Design Approval

Design Release

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Chart 01


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• How to conduct design review and at what stage.

• How to conduct design verification.

• How to conduct design validation and finally,

• How to manage design changes.

If the design subcontractor fails to provide a documented process covering the above activities in the form of an overall plan, or specific procedures, the design subcontractor must be dropped from consideration or the whole internal design process of the design subcontractor must be examined in accordance with the requirements of ISO 9001 standard. The main contractor needs to proceed with construction work without any problem related to design activities by ensuring that all the requirements related to the design work are transferred to the design subcontractor and understood, and design deliverables are produced and submitted on time. The design subcontractor must ensure that regulatory requirements, codes and standards requirements related to a certain product / project are met even if they are not mentioned in the sub-contract agreement.

In this article, we have mentioned many terms without giving any description or definition related to these terms. In the following section these terms will be defined based on ISO 9001 standard and CCC requirements. Chart 01 represents the overall concepts of design processes and their interface based on the International Organization for Standardization.

Design PlanIn the construction business, we are used to having a safety plan, a risk plan, a quality plan, a security plan, a procurement plan and an execution plan. The same concept applies to design work: if we have a design scope we need a design plan. For illustration only, a design plan may cover the following items:

• Design organization and interface.

• Design cycle in terms of preparation, review and approval.

• Design basis.

• Deliverables list / schedule.

• Reference to all activities related to the design.

• Rules and regulations.

• Codes and standards.

At the initial stage of design a project summary and a procedures manual should be prepared and implemented for the project. This is illustrated in Chart 02.

Design Input and Design OutputAt the initial stage of a design the design input and design output must be identified. For example, the design input for an HVAC system is the outdoor conditions that depend on the geographical location. The designer should also consider the air quality in selection of the HVAC system / equipment. The design output represents the comfortable indoor conditions, such as relative humidity and indoor temperature. In many cases, the indoor air quality should also be considered. In the case of hospitals, the system should be able to eliminate bacteria generated in the operating theatres or other areas. The designer’s responsibility is to select the proper HVAC system that suits specific conditions and to select equipment and media that deliver the desired output. All of this has to be identified and considered at the initial stage.

Approved

Design Input Stage Complete

Translate Customer Requirements intoDesign & Construction Information &

Specification for Materials.Identify Resources & Target Milestones

Prepare Project Summary

Prepare Procedure Manual

Prepare Master Programme

Contuct Review

Review Actual Progress on MonthlyBasis to Ensure It Is In Compliance With

the Master Programme

YES

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Chart 02


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Design Activities for Construction Projects

Design VerificationDesign verification is a process that consists of checking the design to see whether it is correct. If you design a pump for a certain media to deliver a certain output, the calculation should be checked by another engineer from within the same discipline. However, this pump will be mounted on a concrete foundation, therefore, it is required to be checked for interface by the civil discipline. This process is called inter-discipline check (IDC) to ensure (among other things) that the anchor bolts location will match the geometry of anchoring the pump on the foundation. The pump will also be connected to a piping system, therefore, the piping engineer should also check the pump design for alignment with the piping system. We can conclude that design verification is a process of checking the calculations, the drawings and to ensure alignment and correct interface with other systems. This process is illustrated in Chart 03.

Design ReviewThis bring us to design review. What is design review as defined in the international organization for standardization (ISO 9001)?

At suitable stages, systematic reviews of design and development shall be performed in accordance with planned arrangements:

• To evaluate the ability of the results of design and development to meet requirements, and

• To identify any problems and propose necessary actions.

Participants in such reviews will include representatives of functions concerned with the design and development stage(s) being reviewed. Records of the results of the reviews and any necessary actions will be maintained.

The standard requires that design review be conducted at planned intervals, therefore, design review stages should be identified in the design schedule. The design review is not a checking process, it is an overall or global view at the design by all stakeholders to

1Design Document Requirements

• Establish Basics of Design• Correct Input Information• Interface Compatibility & Consistency• Approval at each stage• Identification of Documents

2Checking of Drawings and Documents

• Checking of Drawings• Clear and Concise Notes in Red• Detection shall be indicated in Blue• Notes shall be Indicated in Green• Checked items that need no changes shall be highlited in Yellow

3Records (Retention of Documents)

All checking copies & master prints must be retained until the drawings or documents are approved. A master copy of each revision must be retained in the central filing system.

4 Preparation The original engineer shall collate the available data, nothing missing information and compile the documents for checking.

5 Single Discipline Checking

• Definition of work, necessary information are complete• Correct methods applied• Output is accurate, adequate, consistent and clear• Requirements of presentation and quality of dicuments• Conflict with other known technical documentation

6 Inter-discipline Checking

• Equipment located in the same area• Effect on existing design• Direct interface and input from other disciplines• Provision for interface• Interference - clashes

7 Stages of Design Verification

CCC Design Verification consists of 3 stages

• Stage 1: Input and Methods• Stage 2: Checking• Stage 3: Approval

Chart 03


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determine if the design and development output meet the requirements and to identify action required to achieve these requirements. The design review process is illustrated in Chart 04.

Design ValidationDesign and development validation will be performed in accordance with planned arrangements to ensure that the resulting product is capable of meeting the requirements for the specified application or intended use, where known. Wherever practicable, validation will be completed prior to the delivery or implementation of the product or project. Records of the results of validation and any necessary actions will be maintained. Design validation shall be carried out in accordance with documented procedure applying one or more of the following methods:

• Prototype development.

• Technical validation.

• Operability and constructability study.

• Comparison of test results.

• Development of a pilot project.

To simplify the above definition, the ultimate design validation is the commissioning process. However, the standard requires that validation be carried out prior to delivery of the product to the customer. For example, in mechanical projects, design validation can be carried out by software simulation. For process validation we need also to realize that not every design requires a design validation process. For example, if the designer selects a pre-qualified welding procedure from the American Welding Society Library, such procedures are already qualified and do not need any further validation.

Further SimplificationFor further simplification let us consider a complex plant that consists of several design packages.

At the initial stage of the project, design packages and assignments have to

be identified. In the graphic we have 18 design packages. Every design package broken down into elements is subject to design verification by the same discipline and by other disciplines for interface purposes. The overall design packages all together are subject to design review

at specified intervals. If DP1, DP6, DP10 and DP15 represent a system, then this system is subject to design validation. Therefore, design verification is related to every single element of the design. Design review is related to overall design packages and design validation is related to systems, every single system being subject to validation as a system and to interface validation with other systems.

Project Engineering Coordinator Review Group Disciplines Leaders

Assign DesignReview Group Advise Engineering

Manager to InitiateDesign Review Forward Agenda

to Participants Provide NecessaryDocuments forDesign Review

Project Eng. Coordinator Review Group

Prepare Minutes of Meeting

Stage IIStage II

Stage III

Stage IV

Conduct Design Review

As per theproject summary

Advise aspects that shallbe examined during thereview

Consider feedback fromprevious projects

The minutes shall make referenceto the following:- Project title and number- Date of the review- Results of review and actions to be taken- Approval requirements- Review participants

12

34

5

6

Chart 04


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CSR News ReportT. AWAD

Contribution to CSR Initiative CCC Staff are encouraged to come up with ideas and activities related to CCC’s CSR Initiatives including Going Green and community involvement events. Please send your ideas, initiatives and achievements to “CSR-CCC” email address [email protected].

Core Values, Guiding Principles & Code of PracticeA new publication of the Core Values, Guiding Principles & Code of Practice Booklet containing both English and Arabic versions has been reprinted and individual copies are distributed for personal reference and keeping.

GREECE

Visit to the Archaeological Museum The Athens Office CSR Committee organised a guided tour for CCC employees and their families to the famous Archaeological Museum of Athens on 8 February 2015 which was much appreciated. The National Archaeological Museum is one of the most important museums in the world devoted to Ancient Greek art. It was founded at the end of the 19th Century to house and protect antiquities from all over Greece, thus displaying their historical, cultural and artistic value. The Museum’s collections - Prehistoric and Egyptian Antiquities, Sculpture, Vases and the Minor Arts and Bronze - are among the most comprehensive in the world.

Our goal is to introduce the archaeological treasures that our host country has to offer to the employees. With the help of tour guides, the importance of archaeology in Greece was underlined in a more explicit way and offered enhanced knowledge of the Greek culture to the foreign employees.

Clothes’ Collection CampaignVarious humanitarian and charity organizations in Athens that help refugees and other impoverished people are raising awareness for the urgent need of clothes. Being aware of this fact prompted Athens Office CSR Committee to organise a collection of clothes among the CCC employees. 50 large boxes of clothes for adults and children and toys were delivered to the following institutions: Amigdaleza (Centre for Refugees), Boroume (Shelter for the Homeless/ Red Cross), Praxis (general care for unaccompanied minors and refugees), and Mazi Yia to Paidi (a children’s care organization).


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CSR News Report

The donations were much appreciated by the individuals in need who received them, and they went on to express their sincere thanks to CCC and their employees for this honourable gesture.

Donation to the Municipality of Marousi in AthensOver the years, CCC has gathered stocks of old and non-useable items including chairs, desks, PC’s and their accessories, printers, photocopiers, scanners and various other obsolete items that were of no use to CCC. Instead of disposing these items to scrap, the Municipality of Maroussi was happy to take all the items in bulk and plan to repair and make use of them in the different facilities that they support. These include but are not limited to: schools, retirement homes, orphanages and others. We were assured that the donation was put to good use to help the needy organizations, and to save the environment by recycling the materials instead of letting them go to waste in scrap yards.

CSR - 3R’s CampaignThree years ago the Athens Office CSR Committee launched the CSR - 3R’s “Reduce - Reuse - Recycle” Campaign for the purpose of raising awareness, implementing ideas and achieving goals related to the subject. A team was formed at the time and they implemented a few initiatives that are still visible today around the Athens Office but the members were relocated to different areas out of Athens and the campaign slowed down.

In order to revive this important and essential campaign, a new team has been formed to pursue the “3R’s Campaign”. The new CSR - 3R’s Team will be developing awareness campaigns using in-house posters and other informatory means. Additionally, it will be implementing ideas and actions for achieving its goals and the team is also open to receiving new ideas and recommendations to complement their task.

3R’s Teams from the different Areas are welcome to communicate with the Athens Office CSR team through “CSR-CCC” email address [email protected].

KUWAIT

Beach Cleanup Drive - 2015 Kuwait Area accepted an invitation from the American Society of Safety Engineers - Kuwait Chapter - to take part in their Beach Clean-up Drive 2015 that took place on 21 March 2015 at Mahboula Beach. Due to the heavy rainfall that day, the organisers postponed the activity until further notice and left the beach but CCC’s volunteers refused to leave before completing the job. Thumbs up to our dedicated and persistent volunteers!


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CSR Volunteers of the QuarterT. AWAD

We are pleased to acknowledge the participation and continued support of the following volunteers towards CSR Initiatives in their respective Areas during the first quarter of 2015.

QATARCCC Qatar Management acknowledged P. Gottumukkala as the Active CSR Qatar Volunteer of the quarter due to his achievements. Prasanth played a great volunteering role by organizing, participating, communicating and providing volunteers feedback during the following 2013/2014 CSR Activities:

• Beach Clean-up (02 Activities).

• Blood Donation Campaign.

• Medical Mission for workers.

• Worker Cultural activities.

UAEH. Ghanadreh, OHDD Project Dubai, was the major contributor to the Emirati Youth Engagement and Advocacy programme conducted at the project site for students from Heriot-Watt University, Dubai Campus. He made extra efforts to take the time out from his busy professional engagements to conduct the programme in two schedules. His efforts were lauded and graciously acknowledged by the Academic Head of University’s Center of Excellence in Sustainable Building Design.


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The Kazakh Golden Warrior Monument UnveiledA. MUSHTAHA

In line with CSR initiative, CCEP continues with the pre-set charity programme adopted for the different cities and villages in the republic of Kazakhstan.

The Golden Man, whose remains were recently discovered near Kulsary City, are of great endearment to the people of Kazakhstan seeing as it is an important historical discovery.

The Kulsary municipality has requested CCEP to contribute by sponsoring the construction of the Golden Man Monument at the main square of Kulsary City.

CCEP Management accepted with great pleasure and has financed the construction of the Golden Man Monument to the impressive size of 2.5 m x 5.0 m.

The opening ceremony of the Golden Man Monument took place recently and was attended by many government representatives: the Mayor of Kulsary City, deputy head mayor of Atyrau, delegates, media representatives and local authority envoys from Atyrau, Oblast, together with Consolidated Contracting Engineering & Procurement SAL - Offshore CCEP.

A. Mushtaha, the CCEP Public Relation Manager, stated that:

“We are proud to be representatives of Kazakhstan where history was made and culture existed. The discovery of the Golden Man in Kulsary City has added valued proof of the deep history that this country exhibits. Congratulations are due to the Kazakh people in unearthing this monument.”

On this occasion, Maksim Shafekevish, the Mayor of Kulsary extended his appreciation of the continued efforts and support of CCEP - Kazakhstan branch, and he requested to forward his gratitude to all CCIC/CCEP Management and employees for their support of the Kazakh

culture. He granted Ghazi Anouti, Area General Manager - KZ Area, the certificate of appreciation for his limitless support.

Despite the cold weather and chill winds experienced during the day of the ceremony, many people of Kulsary City attended the celebration events performed in the main square of Kulsary City.

Local press media and TV covered the unveiling of the Golden Man Monument ceremony.

Maksim Shafekevish, Mayor of Kulsary City, presented a certificate of appreciation to Ghazi Anouti, CCIC/CCEP Area General Manager KZ Area

Unveiling the Golden Man statue in Kulsary City


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A Special Case from GazaN. KADDAH

Bilal Abu Zaher, a 24 year old resident of the eastern Gaza border area, was severely injured during the war in Gaza in July 2014. During the Israeli bombing in Gaza, Bilal fell out of the second floor of his home. He suffered extensive physical damage: a brain clot that has impacted his memory and paralysis is gradually overtaking his body.

However, none of this impacted his determination to study. He is currently enrolled at Al Quds Open University where he is undertaking a degree in English Language Education free of charge. Facing severe economic hardship, Bilal along with his family, live in a tent with very basic amenities. Bilal has a straightforward aim: despite all odds and his physical disabilities, he is determined to succeed and gain his degree with flying colours.

A CCC employee, hearing of this young man’s impressive story, took it upon himself to extend a humanitarian helping hand to Bilal. He provided Bilal with a second hand laptop (so that he can continue his studies regardless of his disabilities), clothes and fresh bedding.

This only highlights the fact that when you have a dream, you can make it materialise despite all odds.

A CCC employee granting Bilal a laptop so that he can continue his university studies.

Bilal and the CCC employee discussing his studies at Al Quds Open University.

The destruction that Gaza underwent during Israeli bombing in July 2014.


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Qatar: Worker Traditional Celebrations & Sports ActivitiesH. ABOU HISHMEH

CCC believes that a company needs to be responsible for its actions socially, ethically, and environmentally. CCC recognises and understands its commitment towards the communities in which we operate around the globe. We firmly believe that we can help in creating an active compliance with the spirit of law, ethical standards, and international norms. Our approach is driven by three main principles:

• Collaborate and co-operate to make a social impact

• Leverage our expertise and talent to address social issues.

• Create impact that is long-lasting.

CCC Qatar has made concrete efforts to update and expand the scope of worker welfare and to give workers a voice in deciding what they need. Measures to this end include Worker’s Welfare Act, which provides funding for religious traditional festivals, cultural programmes, musical nights, outdoor and indoor tournaments, sports events and other needs. These activities are all aimed at improving the quality of workers’ lives, as well as improving job efficiency.

CCC Qatar participated in many CSR activities during 2014/2015. Some of these activities were:

• Religious Traditional Festivals (Onam, Christmas, and so on...)

• Musical Nights and Cultural programmes (New Year, Qatar National day, and so on...)

• Outdoor Sport Tournaments (Basketball, Volleyball, cricket, and so on...)

• Indoor Tournaments (Carrom, Chess, and so on...)


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Basic Needs Met in TanzaniaG. DEEB

CCC operations began in Tanzania in late 2010 after being awarded the “Upgrading of Tunduma Ikana Road Project (64km) to Bitumen standards.” Our client was the US Government through its local entity Millennium Challenge Account-Tanzania (MCA-T); the consultant was EGIS International. The project was fully completed in late 2013 and was followed by a one year maintenance period.

Since its establishment in Tanzania, CCC has undertaken multiple CSR initiatives that aimed to improve the lives of disadvantaged Tanzanians, the latest of which is CCC Tanzania’s sponsorship of Basic Needs Foundation - Tanzania (BNF-TZ).

BNF-TZ is a non-profit organization working to address the lack of access to quality healthcare and support for the mentally ill through the provision of technical training for health care workers and community empowerment. It is a crucial organization since it is estimated that only 20% of the estimated 2.5 million people that suffer from mental illness within Tanzania have access to mental health services. Without access to a functioning mental health care and support services, the mentally ill are increasingly vulnerable to poverty, poor health outcomes and discrimination.

The elements of the sponsorship were decided through a consultative process between CCC and BNF-TZ so as to ensure that any support offered by CCC would be effective at improving the strategic outcomes of BNF-TZ. To this end, CCC has donated a Double Cabin Toyota Hilux from its project assets to the BNF-TZ head office located in Dar Es Salaam and agreed to subsidise administrative costs of the organization for an initial period of six months; this support will be reviewed later on by Athens Office for possibly extending such period.

At a BNF-TZ launch held on the 24 February 2015 in Dar Es Salaam, that was attended by George Deeb - Contractor’s Representative for CCC-Tanzania - the trustees of BNF-TZ publicly extended their deepest gratitude to CCC and to its President for the support and generous donation.

C. Underhill discussing the need for mental health services at a Basic Needs Foundation presentation.

Basic Needs Foundation members and G. Deeb combining forces to advocate for better mental health services.

G. Deeb, Chris Underhill and J. Mbatia standing together in the name of improving mental health services in Tanzania.


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UAE: Youth Engagement & Advocacy ProgrammeM. MAMUNNI

As part of the Dubai Emirates programme for youth empowerment, students studying in UAE Universities and Colleges are encouraged to gain access to the latest technologies and developments implemented in order to gain professional skills in terms of modern technological application. We are proud to say that CCC is continuously approached by universities in order to support final year university students by giving them access to our construction sites so that they gain on site experience.

Opera House Downtown Project, Dubai, had the privilege of hosting 45 postgraduate civil engineering students from Heriot-Watt University, Dubai Campus. The occasion was utilised by the students to gain exposure in a busy work environment and acquire skills that would help shape their career path. Students were able to gain insights into construction technology and witness the professional expertise of CCC engineers working on the project.

Presentations about the technical features of the project and the modern construction technologies and processes applied at OHDD were given to students.

The students that attended the programme were from the School of the Built Environment. They stemmed predominantly from construction and real estate backgrounds and this rendered the programme quite pertinent to the participants. The students were briefed about the engineering design of the project, proper perspective of engineering plans which consequently enabled them to grasp clear understanding of complete construction technologies and how they can be used to transform basic plans to practical project realities.

This comprehensive CSR programme conducted at the behest of OHDD Project Management was praiseworthy and thought provoking.

Both students and project team members that had organised the event enjoyed the process, the positive atmosphere and were pleased with the outcome.

Some of the students attending the presentation.

A group of students photographed together with the project staff.


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UAE: Al Noor Foundation for Special Needs ChildrenM. MAMUNNI

Al Noor Foundation is a leading training centre for children with special needs in the UAE. The services rendered by the foundation for children with special needs are exemplary and it maintains the highest appreciation levels among the society and local administration for its esteemed services. Every year they hold a successful fundraising event called Hope for Children, involving corporate companies and the general public.

This year the UAE Area CSR Department participated in the Hope for Children fundraising programme by accepting 500 fundraising coupons. These coupons were offered to employees from Area Departments and OHDD Project for voluntary acceptance. Approximately 400 employees cooperated with mass enthusiasm and all of the 500 coupons were taken up quickly.

The Hope for Children fundraising event culminated with a Family Fun Fair, a community event filled with a lot of fun and excitement for all. The event was certainly a rewarding one for us as it highlighted growing interest in charitable activities among our employees. The fund collected was handed over to the Senior Fundraising Executive of Al Noor Foundation in their premises on 26 February 2015.

Children with special needs at the Al Noor Foundation.

Presenting the fund collected to the Senior Fundraising Executive of Al Noor Foundation.


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Morganti Young ProfessionalsFounded in January 2015, Morganti Young Professionals (MYP) consists of the younger generation of Morganti employees. The MYP will be focused on achieving numerous goals: community outreach, internal growth, networking and business development. They will be making an effort to participate in various community activities including Habitat for Humanity, food drives, toys for tots, community specific walks/runs, and so on. Community outreach will also tie into business development. The MYP can focus on community involvement within targeted areas to gain positive exposure for Morganti. Eventually, this generation will grow into the future project managers, executives and possibly more advanced management positions.

Morganti Mentor Protégé

Morganti recently initiated a Construction Management Mentor/ Protégé Programmw to aid in Small Business and Minority Contractors’ participation goals in local cities. They recently signed a mentor protégé agreement with Verdi Construction Company of Bethel, CT and Optimum Building & Inspection Corporation in Springfield MA. A key goal of Construction Management Minority Mentor/Protégé Programme is to coordinate, train and assist small and/or minority owned-companies to win contracts with large companies. With their years of experience, Morganti can help these companies accelerate their growth by focusing on those with the potential to succeed and create jobs. Morganti will act as a mentor, meet with company owners and advise them on improving operations and building strategies, while connecting them with larger customers. The goal is to help small companies grow into bigger ones so they can make a greater contribution to the local economy.

Morganti Sponsors Lebanon-American Club Exchange ProgrammeMorganti sponsored an exchange programme offered by the Lebanon-American Club of Danbury this past February. Danbury teacher Kevin Haddad recently got a chance to visit the International

College (IC) in Beirut, Lebanon. IC is a K-12 school that follows the International Baccalaureate Curriculum—known as the Primary Years Programme (PYP) in their elementary school. Classes are taught in either English or French—they have three sections of each at each grade level. They also offer additional Arabic language instruction, as well as Music, Art, and P.E It was beneficial for Haddad to see how they incorporate technology in their classes and to see the subtle cultural differences in the classroom. In turn, Haddad was able to serve as a knowledgeable resource in the classrooms as well. Questions about what America is like were raised and teachers were advised about American instructional strategies. Morganti was proud to sponsor such a valuable programme and partake in the diverse community where they do business.


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CCED Official Anthem

CCC Engineer in ASME Review Group

BULLETIN EDITORS

BULLETIN EDITORS

CC Energy Development S.A.L., Oman, has produced a fun and attractive video clip which you will find on YouTube. Search for CCED Official Anthem by Leyth Hinai. Shahrokh Eterbar is the CEO of CCED and leads the singing!

YouTube Link: https://www.youtube.com/watch?v=4Mf7Im_hVug

The American Society of Mechanical Engineers (otherwise known as ASME) is a non-profit membership organization whose mission is to encourage: “collaboration, knowledge sharing, career enrichment, and skills development across all engineering disciplines, toward a goal of helping the global engineering community develop solutions to benefit lives and livelihoods” (www.asme.org).

ASME boasts 140,000 members worldwide with a global presence in 151 countries. In light of this, CCC is proud to announce that Mr. Pratap Singh Shriwal (EPSO Mechanical Engineer) is currently a member of the ASME ‘International Review Group’ (until 2016) and a contributing member for the ‘Subgroup on General Requirements’ (until 2017); both of which reviewed the latest amendment of the ASME B31.1-2014 (ASME Code for Pressure Piping, B31). This not only demonstrates the merits of Mr. Shriwal, but also highlights the fact that CCC’s continued high calibre work is represented internationally

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Baby Girls

Mohammed Adil (JHAP, Saudi Arabia) and his wife are very happy to announce the birth of their first baby girl, Sadaf Fatima. She was born on 29 January 2015 in Hyderabad, India.

Omar Hilmi (EPSO, Abu Dhabi, UAE) and his wife Samar are delighted to announce the birth of their second baby, a girl named Eliana. She was born on 24 February 2015 in Abu Dhabi, UAE.

Baby Boys

Imad Abu Chacra (WGP Project, Saudi Arabia) and his wife Farah Ghannam are pleased to announce the birth of their wonderfully cute baby boy, Adam. He was born in Ammatour, Lebanon, on 3 December 2014.

Amer Ali Al Taamari (RMPT Project, Saudi Arabia) and his wife are very happy to announce the birth of their first baby boy, Ahmad. He was born on 10 January 2015 in Riyadh.

Murad Dahdouh (RKPP Project, Saudi Arabia) and his wife Mai Al Badawi are very pleased to announce the birth of their first baby boy, Mohammad, who was born on 5 February 2015 in Jordan.

Ibrahim Sabry (MRPC, Algeria) and his wife Nermeen Maher are glad to announce the birth of their second baby boy, Adam. He was born on 12 March 2015 in Cairo, Egypt.

Renjith K. Abraham (DFM Project, Oman) and his wife Jisna are pleased to announce the birth of their son, Alden, who was born on 23 March 2015 in Kerala, India.

Engagements and Marriages

We are pleased to announce the marriage of Hafiz Muhammad Abbas (RKPP Project, Saudi Arabia) on 22 October 2014, in Panjab, Jauharabad City, Pakistan.

Rahul G. Menon (Barzan Onshore Project Qatar) is pleased to announce his marriage to Ashwathi Nair. The marriage took place on 25 January 2015 in Cochin, Kerala, India.

Twin Girls!

Kamel Ali (WGCCC, Oman) and his wife, Ahlam Al Amin, are very happy to announce the birth of twin girls, Safa and Marwa, on 8 January 2015 in Muscat, Oman.

Baby Triplets!

Abu Ubaid Siddiqui (Qatar Faculty of Islamic Studies Project) and family are extremely happy and thankful to announce the birth of triplets, two baby boys and a girl, on 31 October 2014 in Gulbarga Karnataka, India.

QATAR Sidra Medical & Research CentreCompletion of Design & Construction

Sidra Medical & Research CentreCompletion of Design & Construction

QATAR

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Risk Management

Quarterly Magazine of Consolidated Contractors Company

The BULLETIN is a publication issued at CCC in Athens by volunteer staff.

All opinions stated herein are the contributors’ own.Submissions (announcements, stories, artwork, etc.) are welcome.

CCC BULLETIN P.O. Box 61092

Maroussi 151 10

Fax (30-210) 618-2199 or [email protected]

see The BULLETIN on line at www.ccc.me -> About Us -> Our News -> Quarterly Bulletin

EDITORS Samer Khoury

Zuhair Haddad

Nafez Husseini

Damon Morrison

PUBLIC RELATIONS Samir Sabbagh

PRODUCTION Jeannette Arduino

Nick Goulas

Georgia Giannias

Alex Khoury

Samer Elhaj

Issue 1131st Quarter 2015