Académique Documents
Professionnel Documents
Culture Documents
The department procedures are related to the operational departments but some also the supporting
departments. The operational procedures are primarily related to project execution because the
procedures are written from the perspective of an Engineering Contractor.
The below listing gives an indication of the available procedures. Use Library Menu navigation bar at the
left to view the public procedures on this website. or use this link to go directly to the QA system
documents >
Number
Title
BN-AC-001 Reporting of Illness to the Gak and the Control of Sickness Benefits
BN-AC-005 Handling of Monthly Salary Tapes
BN-AC-006 Transfer of Hota Manhours and Charges
BN-CO-100 Construction Manual
BN-CO-101 Home Office Construction Department Organization
BN-CO-102 Field Organization
BN-CO-103 Pre-Construction Planning and Control, Mobilization and Field Start
BN-CO-104 Field Office Administration
BN-CO-105 Site Security
BN-CO-106 Field Purchasing
BN-CO-107 Material Control and Warehousing
BN-CO-108 Engineering Administration and Cost Reporting
BN-CO-109 Subcontracts
BN-CO-110 Accounting and Administration
BN-CO-111 Field Cost Management & Administration
BN-CO-112 Field Construction Planning & Scheduling
BN-CO-113 Final Construction Report
BN-EP-003 Equipment Piece Counting
BN-EP-012 Preparation and Control of Engineering Calculations
BN-EP-013 Establishing/coding and Control of 'loans' of Department and Group References
BN-EP-060 Invoices From Stoomwezen
BN-EP-213 Quantification of Insulating and Coating Work for Package Units and Machinery by Vendor
BN-EP-240 Adminstrative Management of the Engineering Department
BN-EP-304 Work Division Between Control Systems and Electrical Groups .
BN-EP-309 Handling Structural Steel Element Contained in Package Units
BN-EP-310 Preparation of a Bulk Material Estimate Take-Of
BN-EP-311 Vendor Document Handling in Design Engineering
BN-EP-326 Creation of CAD Plotplans, 3D PDS Piping Models, GA's, Isometrics and MTO
BN-EP-387B Fabrication and Erection of Stoomwezen Piping Systems
BN-EP-503 Subcontracting Under the Chain Liability Act
BN-EP-604 Preparation of Estimates
BN-EX-001 Expediting Activities
BN-EX-003 Transportation
BN-IN-004
BN-IN-005
BN-IP-001
BN-IP-002
BN-IP-003
BN-IP-004
BN-IP-005
BN-PS-001
BN-PS-004
Vendor Evaluation
Vendor Inspection
ICT Data Administration Procedures
Systems Development Procedures
Personal Policies and Procedures
Network Administration & Operations
Helpdesk Operation & Procedures
Design Basis
Approval of Economic Assessment Data
Introduction
2.
3.
1. Introduction
Upon award of a new contract, management selects a Project Manager to whom the total responsibility
for the contract is assigned. All other departments of the Company support the Project Manager. They
provide him with all necessary personnel, tools and know-how to execute the work properly. It is his
responsibility to see that the terms and intent of the contract are fully satisfied, both from the standpoint of
the Client and Company.
The Project Construction Manager selected for the project is Company's representative at the site for all
operations.
The Project Construction Manager reports functionally to the Project Manager and administratively to the
Manager Construction.
The Project Construction Manager and his field organization are to manage the construction of the
facilities in accordance with the applicable contract, design, specifications, schedules and budgets.
He is also responsible to the Manager Construction for ensuring that construction is carried out in
accordance with company policies and procedures.
The Home Office Construction Department staf is responsible to the Manager Construction.
Administrative and technical construction procedures are provided by the Construction Department.
These and all field functions will be audited by the Home Office Construction Department during the
course of work.
The Home Office Construction Department performs support functions on all Company projects within the
framework of the Project Management and Task Force system. These functions include:
Establishing policy and procedures designed to ensure the success of the construction of
Company projects.
Selecting, training, assigning and monitoring the performance of personnel for field operations.
Monitoring the project to ensure that Company policy and procedures are being followed, that
field personnel perform within required professional and ethical standards and that the project is on
schedule and meeting prescribed budget and quality standards.
required for establishing efficient field construction, and to ensure an efficient transition from the Home
Office to the field. In this capacity he reports to the Project Manager until the Project Construction
Manager is assigned, and then provides Home Office Construction support services as required.
During the construction phase, the coordinator will act as the interface between the Project Construction
Manager and the project organization in the Home Office on expediting field requirements and/or
clarifying unusual or extraordinary problems.
The coordinator will be active in job analysis throughout the life of the project to assist both the Project
Manager and the Project Construction Manager.
Introduction
2.
3.
Section Summary
4.
1. Introduction
The purpose of this Manual is to provide all Field and Home Office Construction staf and departments
with a reference source covering all phases of a construction project from its inception to its conclusion.
It is acknowledged that each construction project may have its own peculiarities, however, the policies in
this Manual are presented in a concise form to cover most eventualities.
Mandatory conformity to the policies herein shall ensure that all Company construction projects are
uniformly conceived and executed, and that construction management and supervision are in total
agreement with the Company system for timely, economical and profitable execution of the construction
project.
Any deviation from the Construction Manual must have the express approval of the Home Office
Construction Department prior to its implementation.
Recognition by the Project Construction Manager and his staf of modern methods and the professional
approach to construction will create an understanding of the need for specific and uniform guidelines for
the execution of construction projects.
We in this industry recognize the requirement for a standard of professional competence in execution by
engineering and construction firms, as well as equivalent monitoring techniques by Clients, that will result
in well planned and executed projects.
We welcome any contributions from the field and staf which may improve our construction policy.
3. Section Summary
Section DocumentNumbe Description
r
BN-CO-101
BN-CO-102
Field Organization
BN-CO-103
BN-CO-104
BN-CO-105
Site Security
BN-CO-106
Field Purchasing
BN-CO-107
BN-CO-108
BN-CO-109
Subcontracts
BN-CO-110
BN-CO-111
BN-CO-112
BN-CO-113
BN-CO-101
2.
BN-CO-102
Field Organization
1.0 Introduction
2.0 Field Construction Personnel, YC-YL
3.0 Typical Construction Organization Chart
4.0 Personnel Classification and Job Descriptions
5.0 Abbreviation of Job Titles
3.
BN-CO-103
4.
BN-CO-104
5.
BN-CO-105
Site Security
1.0 Introduction
2.0 Responsibilities
3.0 Site Security
4.0 Site Security Plan
Attachment A Construction Security Program
6.
BN-CO-106
Field Purchasing
1.0 Introduction
2.0 Requisition for Field Purchase
3.0 Request for Purchase Register
4.0 Bids
5.0 Completion and Distribution of Requisition
6.0 Field Purchase Order
7.0 Unit Price Order
8.0 Purchase Order Register
9.0 Vendor Register
10.0 Purchase Order File
11.0 Petty Cash Purchases
12.0 Field Office Commitment Authority
13.0 Instructions for Preparation of Third Party Equipment
Rental Orders
14.0 Attachment Summary
7.
BN-CO-107
BN-CO-108
9.
BN-CO-109
Subcontracts
1.0 Introduction
2.0 Subcontracts Procedure
3.0 Business Considerations
4.0 Notes on Subcontract Procedure
5.0 Subcontracts Administration
6.0 Subcontracts Close Out
7.0 Attachment Summary
10.
BN-CO-110
BN-CO-111
12.
BN-CO-112
13.
BN-CO-113
Introduction
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Attachment Summary
1. Introduction
This section includes the basis proposal input made by the Home Office Construction department as well
as the procedures to be followed for Pre-construction Planning and Control including check lists for the
Project Construction Manager's use on mobilization and field start.
A review and comments on the Client's inquiry documents and request for proposal.
A review and comments on the draft of the proposed contract form that will accompany the
proposal, if applicable.
Participation in the site survey and assistance to the Proposal Manager in preparation of the site
survey report.
A review of the layout of the project and suggestions for any alternatives which might simplify
construction and reduce project costs.
Assistance to the Proposal Manager in writing and/or editing those portions of the proposal that
pertain to the construction organization and execution plan.
In conjunction with the Planning and Scheduling Department, participation in review and
comment on the proposed project schedule.
Preparation of the Field Organization Chart and staf assignment durations including local staf.
Furnishing an estimate of the number of Construction Department Home Office hours required to
support the proposed project.
Suggesting any alternative ideas to the proposal that would result in an advantage to Company.
over its competitors.
Participating at the presentation to the Client when requested by the Proposal Manager.
Scope of work.
Manpower loading.
Construction Budget.
Drawing Schedule.
Background data.
Logistics Plan.
Client's personnel assigned to the project, their responsibilities and Client communications.
Construction utilities, including power, air, gas, water and steam and points of supply.
Sanitary facilities.
Client's plant rules and regulations and fire and safety work permits.
Availability of Client-furnished office furniture, construction equipment, shop facilities and small
tools.
Labor Relations.
All reasonable requests by the Client shall be considered, but where any request is not in accordance with
Company policy or procedure, the Project Construction Manager shall request guidance from the Home
Office Construction Department.
Precontract data.
Construction approach.
Subcontract approach.
Heavy lifts.
Budget documents.
Job instructions.
Code of accounts.
Plot plan showing location of field offices, warehouse, fabrication and laydown areas, fenced
areas, parking lot, etc. and any accompanying maps which depict the geographic location of the site.
Electrical power, water, air and other utilities, layout and requirements.
Job equipment and tool list, job vehicles, office furniture, etc.
Labor information and procedures, labor rate schedule, pre-job conference, etc., (Direct Hire
projects only).
Equipment list showing erection weights and method of transport to job site.
Special rigging requirements and information such as foundations to be left out, etc.
The above information will be collected from all sources available to the Manager of Construction. The
Project Construction Manager should be assigned and coordinate with the Project Manager sufficiently in
advance of the actual field start to permit a thorough review of the Project Construction Manager file, the
current status of engineering and procurement, the proposed delivery schedules of engineering and
procurement, the CPM and/or other construction schedules, and revisions to the estimate and/or contract
up to the point of entering the field.
It is incumbent on the Project Construction Manager to satisfy himself as to the nature and extent of all
materials assembled by the Project Manager and the Home Office Construction Department prior to his
departure to the job site.
On some contracts, certain costs are reimbursable. When this is the case, requirements relative to time
sheets, invoices, purchase orders and other information should be discussed with the Client's
representative in the field.
This may be best accomplished by a joint meeting at the Home Office between the following persons:
Office Manager
Project Manager
Client Representative(s)
Engagement of agents and drayage contractor for movement of equipment and supplies to the
job site.
Road weight and clearance requirements from rail or water sidings into the job site.
State, Provincial or Governmental registration to erect Power Boilers, Unfired Pressure Vessels
and Coded Piping.
Local/State/Provincial registrations relative to excavation.
If the construction facilities will discharge effluent into streams, etc., proper licenses and permits
should be obtained from local, provincial, State and Federal/Governmental agencies.
Alternate candidates.
Any other information peculiar to the job which may/will afect personnel relations.
Anticipated field hire requirements for staf assignments, along with wage rates, benefits, etc.
The Home Office Construction Department shall advise regarding time card or clock usage at this
time.
The numbering system for assignment of badges is covered in Section X Attachment 11, of this
Manual.
Passports.
Visas.
Work Permits.
Immunizations.
The Project Construction Manager shall relay immediately to the Home Office any information from the
site which may afect the travel and entry policy of Company expatriates.
Parking lots, temporary roads, and storage areas are to be laid out and properly surfaced before
commencement of construction activities. The extent of the required surface shall be reviewed with the
Manager of Construction and the Project Manager.
Company Signs
Company signs are to be erected at strategic points of the job to direct workmen, vendor deliveries, and
visitors to the site offices.
Signs may be subject to Client and/or local authority approval
Any signs which are not to be transferred at the completion of the project for use on other jobs are to be
efectively dismantled and disposed of (for typical directional sign see Attachment 2).
11.2 Insurance
The processing of all insurance matters in the field shall be handled by the Office Manager who receives
instructions from the Director of Administration in the Home Office. These instructions are specific for
each job and are issued to the Office Manager as required when the Field Office is established.
The Project Construction Manager is responsible for super vising all insurance matters and is to
ensure that they are in complete accordance with instructions of the Director of Administration.
In no instance will the Project Construction Manager or any member of his staf purchase
insurance of any kind unless approved by the Director of Administration.
In the event of an accident or loss of any kind, neither the Project Construction Manager nor any
member of his staf shall admit any liability. All information relative to possible claims must be directed
to Home Office for their consideration and further distribution, as required.
No subcontractor or third party equipment will be allowed to start work on the site until copies of
his insurance certificates have been received in accordance with Company's and/or Client's
requirements. These requirements are laid down in the "Terms and Conditions" which accompany the
purchase order.
Builder's all-risk insurance is carried on all Construction projects. This insurance may be carried
by the Client or by Company.
Builder's all-risks insurance covers machinery, apparatus, materials, equipment, temporary structures
and all items which will become part of the finished project. The coverage also applies while such
materials are at the jobsite or in transit to the jobsite.
If there is any damage or loss applicable to the construction efort, it is important that those in the
field having knowledge of such loss report it immediately to the Office Manager. It then becomes his
responsibility to report all particulars of the loss to the Director of Administration in The Hague, who
will determine if a claim can be filed and issue instructions for its processing.
It is imperative that losses be reported to the Home Office immediately, since the collection of a
claim from the insurance company can be jeopardized if a claims adjuster is not promptly assigned to
survey the damage.
Except in an emergency where actions are necessary to prevent further losses, no corrective
work involving insurance claims shall be undertaken until authorized in writing by the insurance
adjuster or the Director of Administration. In all cases where damages are discovered, photos are to
be taken to show actual conditions before corrective work is begun.
All corrective work shall be assigned a proper reference code for the purpose of accumulating
costs.
Temporary Construction.
Transportation.
It is imperative to concentrate on the major accounts of the budget since the cost reporting system
emphasizes these areas. This tendency helps in the indirect area as well since the major accounts have a
direct bearing on indirect expenditures. Nevertheless, the indirect accounts must be carefully managed to
stay within all budgets.
11.4 Site Arrival Check List
When the Project Construction Manager arrives at the site location he shall take the following steps:
Local Rules/Regulations/Authorities
Review the project with the Client and establish local rules and regulations, contact local authorities as
required in coordination with the Project Manager and the Client.
Post Office Box/Drawer
Secure a convenient Post Office Box/Drawer and notify the Construction Department of the new job
mailing address. The Construction Department shall be responsible for internal distribution of this
address.
Checking Account
Establish a checking account with a local bank, which is approved by the Home Office.
Field Office
Establish a Field Office, either on or of the site as conditions warrant, in order to immediately have
available administrative facilities. Temporary quarters shall be provided for if site facilities/occupancy are
not immediately available.
Telephone
Contact the telephone company for immediate service. A rotary number telephone switching system shall
be secured for the permanent installation with line requirements specified to handle the anticipated traffic.
Notify the Home Office Construction Department immediately of the telephone numbers.
Public Pay Phone
A public pay phone shall be provided for personal non-business use.
Telex
Arrange for permanent installation of TWX/telex/telecopier in Site Office if required.
Secure the cable/telex address and notify the Home Office Construction Department immediately.
Radio
Preparation and accommodations shall be initiated for two-way, short wave radio communications, if
applicable/permissible.
Copies of local FCC/Foreign radio operation requirements shall be directed to the Home Office
Construction Department for approval prior to initiating any installation.
11.5 Logistics Check List
All logistic information shall be investigated and reported to the Home Office Construction Department for
distribution to Project Management, Purchasing and Project Control.
The most accessible public transportation or terminal, whether it be railroad, airlines, etc.
On foreign projects, local customs, immigration or entry regulations, and any changes thereto
shall be forwarded for distribution to the Personnel Department.
Information on railroad freight and terminating carrier, and railway express deliveries.
Ofsite warehouse and open storage facilities for any/all equipment if onsite storage is restricted.
Onsite and ofsite bondable storage requirements for customs clearance on foreign jobs.
Any/all customs regulations peculiar to the site location.
Lumber.
Hardware.
Automotive Supplies.
Contract Hauling.
Note: Normal contractual terms of some types of contracts require use of Client supplied vendor lists and
Client approval prior to entering into an agreement with vendors.
11.8 Local Equipment Rental Policy
The Project Construction Manager shall ensure that local equipment rental dealers are contacted and
arrange for proposals.
When negotiating prices for long term rental, the rental purchase option should always be
included along with the rental quote.
When renting equipment, the contract shall be written so that the vendor/dealer carries insurance
for the equipment and the operator(s) while in transit to and from the Company job site.
Notify Home Office Construction Department of pending arrangements prior to final commitment
so they may notify both Company and local site insurance carriers of the arrangements and verify
recognized coverage.
11.9 Jobcars
Jobcars and/or job buses will be assigned by the Home Office Construction Department. Only the Project
Construction Manager, Field Superintendent, Site Engineer and Office Manager shall be permitted the
use of a site vehicle to commute from home to the job site and back, if a jobcar is assigned to them.
An exception may be made by the Project Construction Manager, on a per case basis only, to permit the
use of a site vehicle by other than the aforementioned persons for special overtime assignments.
Other site vehicles will not be permitted to leave the confines of the jobsite without specific approval of the
Project Construction Manager and only on legitimate company business.
Vehicles issued by the Client for Company use shall be treated the same as a Company vehicle, unless
stipulated otherwise by the Client.
11.10 Temporary Utilities
Arrangements for temporary utilities shall be made as follows:
Electrical
During the pre-move-in stage of the job, the Home Office Construction Department will estimate the
consumption of electricity required for construction equipment/tools and temporary facilities and submit
quantities and temporary facilities plot plans to the Home Office Electrical Engineering Department. They
shall prepare electrical one-lines for the Project Construction Manager's file for site use.
Power requirements to support all planned and anticipated needs shall be included in pre-move-in
instructions. The source of power should be resolved at that time.
If pre-move-in instructions are not available, the Project Construction Manager shall select the most
practical and economical supply including the following possibilities:
Local utility company where possible. This service should include incoming primary power and
primary transformers (pole or ground mounted with secondary breakers).
From Client's substation, a joint consultation between Company Electrical Department and the
Client should be arranged to work out these details.
Portable electrical generation - no site decision should be made on this arrangement due to the
magnitude of expense. Most site pre-surveys will determine this approach and provisions should be
made in advance for equipment.
Utility Selection
An agreement between the Project Construction Manager, Client and local health authorities should be
reached as to which of the following facilities are to be selected.
Drilling a well.
Consideration should be given to installation of underground fire system loops and hydrants in the job's
first stage.
Fuel Gas by:
Incineration.
All phases of utility selection shall be approved by the Client and local, State, Provincial and Federal
where applicable, particularly involving those methods which could involve Environmental Protection
Agency Codes. In most cases, utilities are provided for in a section of the Contract.
11.11 Local Testing Laboratories
The Project Construction Manager shall ensure that inquiries are made, and service and prices of
laboratories in the vicinity are tabulated, for testing/certifying of:
Concrete.
Soils.
Non-destructive examination.
Local fabrication should also be investigated as a location for welder's tests on a lump sum basis (direct
hire only).
In lieu of locating any of the above facilities, the Home Office Construction Department shall be
immediately advised as to equipment and manpower needs to perform these functions on site.
In most cases, the welding procedures encompassing all materials at the site will be prepared by the
Home Office or Subcontractor, approved by the Client and Authorities when applicable and included in the
piping specifications to the field.
11.12 Site Medical
The Project Construction Manager shall ensure that arrangements are made with a local clinic or doctor to
provide for injured employees.
Arrangements should include:
Ambulance.
Consideration and pro-rata contribution by subcontractors should be explored for site facilities.
Normally, these arrangements are the sole responsibility of Company, however, the use of the Client's
existing facility should be explored prior to finalizing arrangements.
A local registered nurse may be employed on sites of medium or large size. Medical regulations/insurance
requirements shall be given to the Project Construction Manager by the Home Office Construction
Department.
11.13 Fire Fighting
Refer to the contract for fire fighting instructions.
In lieu of specific instructions, the Project Construction Manager shall determine with the Client who will
provide fire fighting equipment and to what extent.
Notice shall then be posted in conspicuous places as to the procedures, telephone numbers, alarm
signals, etc. Home Office Construction Department is to be notified of these arrangements for their review
and concurrence.
11.14 Site Visitors
Company Employees
Space within the Field Office/administrative complex should be planned for convenience and
privacy of Home Office visitors.
Arrangements should be made, if possible, for commercial rates at motels and hotels. Notify
Home Office Construction Department of these arrangements.
Non-Company Employees
The Project Construction Manager shall ensure that the following steps are taken:
Determine Client policy relative to visits by non-site employed personnel, including union officials,
local authorities, salesmen, etc.
A directive shall be published to all Subcontractors, guards, Personnel Department and key
supervisors prior to job startup.
It is Company's policy that NO Company guests shall be admitted to the site without the approval
of the Project Construction Manager or his deputy.
Determine the details of security relative to gate passes for motor vehicles entering and leaving
the property.
Make arrangements for entry passes for key Company supervision and staf.
Determine and post in key locations, the Client's security department telephone numbers.
Provide the Client's security department with office and home telephone numbers of key
Company personnel.
Determine the Client policy relative to week-end and night entry.
Grassroots facility
Determine if guard service is to be provided by Company or the Client.
A set of site security regulations shall be drawn up by the Project Construction Manager issued to
security, Company key personnel and posted on bulletin boards.
It is the Project Construction Manager's discretion to issue automobile gate passes.
The Project Construction Manager shall initiate all activities of site preparation and temporary
construction facilities to support the forthcoming major construction efort.
It is the Project Construction Manager's responsibility to determine that all relevant facets of this
Manual have been recognized/implemented prior to proceeding with actual field work.
Plans drawn up for temporary facilities are based on the most economical and functional use of
convenience, space and aesthetic values to the Client's property.
Prior to any material revisions, it shall be the Project Construction Manager's duty to confer with
the Client and the Home Office Construction Department for approval.
Set up temporary/permanent type change houses for field labor (direct hire jobs only).
Arrange for fuel storage, i.e., skid tanks, etc., for equipment refueling, as required (direct hire jobs
only).
Grade areas for temporary buildings and proceed with foundations and erection.
Reinforce floor slabs for Temporary Buildings to a minimum on buildings which are to be
removed.
Always set floor slab grade for Temporary Buildings six inches (6") above finished site grade
elevations.
Establish center lines of vital plant construction roads and prepare with all-weather surface.
Initiate site grading with particular attention to immediate drainage. Deviation from the final site
surface drainage is permissible in most instances to insure immediate water run-of during initial
construction stage of the project.
Have power utility company route in electricity and provide drops from transformers to temporary
power distribution panels. Panels may be constructed of wood materials such as plywood with gang
boxes mounted. Bury power distribution cables wherever practical to temporary buildings.
Establish site perimeter fencing, usually permanent. Whenever possible, avoid use of an existing
plant gate used by Client's personnel. Erect a guard shack at each gate and control access and
egress.
Establish a personnel gate, route and sign up area for incoming job applicants. A procedure for
admitting applicants into the site should be worked out between security and the Office Manager.
Contract for and erect a Company sign at the main Construction gate or near the highway.
Coordinate the sign lettering and wording and location with the Client prior to contracting the work.
Make available on your sign or near adjacent to, provisions for subcontractor signs. A permit may be
required to erect a sign on or near a public right-of-way.
Determine traffic patterns and alternates for motor traffic within the job site, paying special
attention to: overhead clearances, width clearances, anticipated loads and location of warehouse and
lay-down yard.
As soon as progress permits have telephone communication moved into the Field Office.
Clock alleys should be established between the work site and change houses, if space permits,
so men may change prior to entering the job site (direct hire only).
Do not allow any field efort to start without providing safety equipment. Hard hats are mandatory
for all personnel.
If camp/housing facilities are required, this should be worked concurrently to the initial site work.
13 Attachment Summary
1.
1.
Introduction
2.
Responsibility
3.
Site Security
4.
1. Introduction
Proper site security arrangements are necessary to protect Company's and client's property. Security very
much relates to safety and has a degree of overlap with safety.
On construction projects within the fence of an existing plant, usually the client's security and guard
arrangements will be applicable also to the construction of the new facilities.
However, security relative to Company's site buildings and the documentation contained there-in on any
project requires proper attention and measures.
This section is to be considered a guide to setting up a security program for construction projects where
there are no existing facilities and, thus, own all encompassing security arrangements have to be made by
Company.
2. Responsibility
As for safety, the ultimate responsibility for security on site rests with the Project Construction Manager.
The organizational structure of the Company site team, project size and client's requirements/involvement
relative to security will determine who in the site organization will handle the day to day security matters.
Generally, the Company Safety Manager will have functional responsibility with the administrative
responsibility resting with the Office Manager. Alternatively the Office Manager may handle all security
matters.
3. Site Security
3.1 Guard Service
At the start of site activities arrangements have to be made for guard services at the site gate. Guard
services can be obtained either by means of a subcontract to a specialized security firm or by hiring
personnel locally on Company's payroll. Using a specialized firm usually has preference over hiring own
personnel for a number of reasons e.g. experienced personnel can be expected, replacements during
vacations and illnesses can be obtained, standard guard/security instructions will be available. Moreover
the specialized firm processes all necessary permits/licences and registrations (to be checked!) as maybe
required by authorities. When making arrangements for guard services consider:
Control of incoming and outgoing personnel, visitors and traffic and maintaining the necessary
administration and records related thereto.
Control of incoming and outgoing materials, tools, construction equipment, office furniture and
equipment and any other materials or consumables, regardless of ownership.
Control of firehazards in the working areas as well as in/around offices and shops, after working
house.
Control of security relative to Company's, client's and subcontractors' offices, after working hours,
with respect to "clean disk" discipline and the lock-up of desks, filing cabinets and cupboards
containing project information and documentation.
Selling, advertisement and distribution of newspapers, illustrated papers, leaflets, tapes, gadgets
or promotional campaigns of a political, religious, moral, sexual or subversive nature.
Bringing photo and film cameras and audio and video equipment without Company's prior
approval.
Security guards will be instructed by Company/client only. They shall have orders to take
instructions from no one else.
All incoming and outgoing personnel, visitors and traffic shall be controlled in accordance with job
specific security instructions.
Visitors will be registered as such and receive a visitors pass. The guard at the gate shall warn
the person to be visited before granting the visitor entrance to the site. Identification of visitors shall
be in accordance with job specific security instructions.
Erection of sign board on as well as of site requires the prior approval from Company and local
authorities as required.
All personnel working at the site shall be property identified and be in the possession of an
identification card of badge. Type of identification shall be determined in the job safety/security plan.
Such identification card/badge shall be returned to Company upon termination of employment on the
site.
The guard's authority includes the right to search any person or vehicle before entry or exit and to
refuse site entrance to any person not meeting security requirements.
Trucks with incoming materials will be checked at the gate and the guard will direct them along
the proper roads to the Company warehouse or unloading destination, after consultation with the
Company Warehouse Supervisor.
All materials, tools and equipment leaving the site require a Company Outshipment Report signed
by an authorized person. This also applies to personal tools.
As required, job specific security instruction shall prescribe the guards to make rounds after
working hours to control particularly:
firehazards
After normal working hours, the guard shall always be informed as to numbers and names of
personnel working overtime and the name of the responsible supervisor(s).
Modifying, cutting or removing site fencing may only be performed with the written approval from
Company.
On a regular basis Company's and Client's Safety/Security Officers shall conduct, after office
hours, checks in cooperation with the Subcontractor's security representative.
The Client may have his own procedure on protection of his proprietary information. In such cases
Company should strictly adhere to the Client's procedure. Keep in mind that in the conduct of its business, Company is the custodian of confidential information of many Clients as well as its own, and
possesses a substantial amount of proprietary information.
All confidential information given to, or acquired by subcontractors and their employees relating to
the business of Company and Client must be maintained in strict confidence. Every reasonable efort
must be made by all concerned to prevent any unauthorized disclosure or use of such information.
It is vital to our business and in the interest of the Client that the confidentiality of such information
be preserved.
Specific guidelines:
After office hours, all Company and Client's proprietary information shall be secured in steel filing
cabinets equipped with cylinder-type security locks.
During lunch hours, all access doors to the offices in which proprietary information is maintained
be locked when unattended.
Duplication of Company's or Client's proprietary information is only permitted with the written
approval of the originator.
Prior to the start of field activities a site security plan as part of the site safety plan must be
developed.
The following is an indicative listing of items that should be considered, and addressed as
required, in the development of the security plan:
Establishment of a guard service and determination of coverage (day, night, week-ends, etc.).
Security documentations:
Local authorities (addresses, telephone numbers, etc.) in conjunction with safety arrangements.
Introduction
2.
Receipt of Material
3.
Material Checking
4.
5.
6.
7.
8.
Material Certificates
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Vendors Cards
22.
Disposal of Surplus
23.
24.
25.
26.
Q.C. Procedure
27.
28.
29.
Attachment summary
and operating procedures must be followed unless the Project Procedure Manual calls for something
diferent, or if permission is received from Home Office Construction Department to vary from the
procedure.
2. Receipt of Material
Prior to arrival of material on site, "advice notices" or other shipping notifications will be received by the
Material Supervisor. He will record the volume and nature of the shipment and assign a storage location.
These documents will be transmitted by the Material Supervisor to the Warehouse Supervisor with a copy
to the related subcontractor(s) (so they can arrange for the of-loading facilities).
Upon arrival, the material is of-loaded onto the foundation or at the storage location previously
determined, in the presence of one or more checkers.
Whenever material arrives on site without advance notification, the Material Supervisor will (if necessary
in cooperation with the Project Construction Manager), allocate storage and unloading location without
any delay, to avoid demurrage on vendors transport.
All truckdrivers will be directed by the guards to report to the warehouse first. If material is to be unloaded
at a point other than Company Central Storage the Warehouse Supervisor will direct the trucks to the ofloading location. A Material Checker must be present during of-loading. Truckdrivers delivering a large
piece of equipment will be met at the gate by warehouse personnel to guide them to the designated
unloading area.
3. Material Checking
The shipment must first be checked to see whether it conforms with "Packing Lists and the Marking,
Shipping and Invoicing Instructions" issued to vendors by the Home Office Procurement/Shipping Department, being a part of the Purchase Order. Also the Purchase Order, Purchase Requisition plus
attachments for specific instructions on loading, unloading, delivery, required official documentation,
material certificates, etc., must be checked. On some projects a Purchase Order has been placed with a
Shipping Agent, to what extent the Shipping Agent is involved must also be checked.
If the shipment consists of unpacked goods, such as structural steel, pipe, etc., each bundle or piece is
checked of the carrier by the Checker. The same applies to boxes, crates or other packed goods.
The Checker signs for the goods that are actually received, and not necessarily those shown on the
delivery document.
Whenever a subcontractor receives Material/Equipment directly, then a copy of the delivery ticket signed
by an authorized subcontractor's representative must be retained by Company's Warehouse Supervisor
and all administrative work performed as if Material/ Equipment was received in Warehouse and issued to
Subcontractor.
If it is not possible to check materials during of-loading the Material Checker signs carrier delivery slip for
"Material received - unchecked". Materials must be carefully checked as to quantity, specification, and the
condition, immediately after receipt. Before signing carrier's freight bill, the Checker should count the
number of pieces received and examine for evidence of visible damage. Boxes, crates, and cartons
should be carefully inspected before taking delivery. If material is received damaged or not in accordance
with packing list or freight bill the delivering carrier should be requested to make inspection of damage or
discrepancies, and proper notation must be made and acknowledged by carrier on original and copy of
freight bill or packing list.
If concealed damage is discovered at a later date, the carrier should be notified immediately and
requested to make an inspection. Materials involved in any claim should be set aside and redtagged until
inspection is completed and liability has been determined. A signed record is to be drawn up on the result
by the parties concerned and an "Over Short and Damage Report" be made. In the event that the vendor
is not responsible for safe custody of goods during transit, claims shall be processed against the carrier.
The Material Checker is to acknowledge the receipt of the goods only by signing the carrier's copy of
delivery tickets together with the copy for warehouse records, showing date of receipt and storage location
("Warehouse row G bin 26" or "Material yard row B").
The Material Checker then checks the material thoroughly against the requisition and the relevant
Purchase Order to ascertain that the material meets the specifications and is correct in quantity.
If there is any doubt as to whether or not specifications are being met the Material Checker must report
this to the Warehouse Supervisor for his action.
Upon receipt as outlined above, the material will be tagged to the extent necessary, reflecting P.O.
number and item number and then stored in the allocated location.
All small loose parts such as gaskets, packing rings, bolts, lubricators, gauges, gauge glasses, dripwells,
ink, charts, adjusting pins/keys, couplings, spare parts, etc., delivered as part of equipment, should be
stored in bins in a separate location in the warehouse and clearly tagged with the item number and P.O.
number of the equipment.
Any drawings, material certificates, catalogues, operating instructions and manuals relating to equipment
are to be marked with equipment and P.O. number and turned over to Warehouse Supervisor for
transmittal to the Site Engineering Department.
When material arrives at site for which no Requisition or Purchase Order is available, the Material
Checker reports this to the Warehouse Supervisor who in turn checks with the vendor, Home Office
Purchasing Department, or the Field Buyer to see whether material should have been received. If in order,
a Purchase Order number should be obtained.
Upon completion of the above exercise, the Material Checker will turn in delivery tickets, freight bills, etc.,
to the Warehouse Administrator for compiling a Material Receiving Notice. When a carrier demands
freight charges for goods that have been ordered on "free at site" delivery, the freight should be paid from
Petty Cash Funds and the Vendor backcharged via Project Accounting. This procedure is outlined in the
Accounting Procedure.
Copies of this report will be distributed before 09.00 hours the day after the receipt of materials at site.
The description of materials received will be in abbreviated form. Distribution of the DMRR will be in
accordance with the "Document Distribution" or "Construction Coordination Procedure".
Occasionally a piece of equipment is received on site with discrepancies which involve correction costs of
a minor nature compared with the total Purchase Order value of the item.
So that Company or Client may take advantage of discounts available for quick payment and also in order
not to antagonize vendors by withholding payment of a large sum because of comparatively minor
discrepancies, a "partial MRN" will be completed with the details of the discrepancy stated on an Over
Short and Damage Report (OS&D Report) with some indication as to "cost to field" of rectification. This
enables the Home Office Purchasing Department to resolve with the Accounting Department how much of
the vendors invoice should be paid.
The Backcharge to Vendor procedure will be followed to ensure that Company does not absorb any cost
relative to rectification.
8. Material Certificates
Piping Materials
Each delivery of piping materials, authority and non-authority, will be accompanied by the proper material
certificates.
The Material Checker will check the materials against the certificates. Any discrepancies found on
manufacturer's symbol, heat numbers, etc., will be notified to the Materials Supervisor immediately for
action via the H.O. Inspection/Expediting Department.
An O.S.& D. Report will be issued recording the certificate and/or material discrepancies. Materials are
stored in a separate location and labelled with the corresponding O.S.& D. Report Number.
The O.S.& D Report is cleared upon receipt of the correct certificate or upon replacement of the material
as applicable.
Under no circumstances will materials be released for construction unless the correct certificate is
available.
Fabricators Code
Charge Number
Schedule/Pressure Rating
Size
Quantity
On completion of the project, Home Office will produce a certificate register following Client requirements
from data accumulated from the material certificate register.
P.O. number.
Vendor.
Material Description.
Field makes no disposition of this material, either as to use or return until advised by the Home Office. If to
be returned, the Home Office Expediting Department will secure shipping instructions from the vendor and
advise the field by means of an AVO or telex authorizing shipment.
In some cases, it will be the responsibility of the client to decide if overdelivered items can be accepted. In
such cases an Over Short and Damage Report is not required. The Client approves the Material
Receiving Notice which should state "Overdelivered quantities will be accepted by Client".
When a shipment from vendor is short, the Over Short and Damage Report advises Home Office whether
or not materials are needed and the Home Office Expediting Department takes the necessary steps to
secure materials or credit from the vendor. If the shortage is caused by loss in transit, and the material is
not urgently needed, action should be withheld for a reasonable length of time to allow the carrier to
attempt to trace and locate lost items.
When materials/equipment are received damaged or not according to specification, a copy of the O.S.&
D. Report is forwarded to the Site Engineer for the issue of a Non-conformance Report.
When materials/equipment are received damaged, a copy of the freight bill or packing list with
acknowledgement of the carrier (see Item 3.0 Material Checking) should be attached to the Over Short
and Damage Report.
Proper notations on Over Short and Damage Reports advise Home Office of all contingencies involved,
what action is needed, and whether action is up to the Home Office or Field Office.
Claims for concealed damage can be very troublesome and the importance of careful checking as soon
as possible after receipt of material at site cannot be over-emphasized.
Whenever an Over Short and Damage Report is cleared, a Material Receiving Notice should be issued
covering clearance of the Over Short and Damage Report with reference to both the Over Short and
Damage Report and the Material Receiving Notice on which the discrepancy was originally reported.
If claims on vendors or carrier involve repairs by field forces (after authorization by the Project
Construction Manager or Home Office A.V.O.), costs of materials, equipment and labor must be
accumulated and included in a claim (see Backcharge Procedure).
Over Short and Damage Reports shall be distributed in accordance with the "Document Distribution List"
or "Construction Coordination Procedure".
Date.
Vendor.
Description.
Remarks.
This color coding must be maintained throughout the storage/ construction period. Each member of the
Material Department and Specialist Engineers will be supplied with a copy of the marking and color
coding procedure to facilitate the application of correct marking upon the material when received and the
traceability of the material throughout the construction period.
Corrosion protection is either the Subcontractor's or the Warehouse responsibility. Warehouse Supervisor
shall check regularly that this work is properly done.
The Materials Supervisor will check on a regular basis the handling and storage of the materials at the
subcontractor's shop.
Function (Title).
Signature Specimen.
A block of numbers shall be allocated to each subcontractor. Material requisitions shall reflect relative item
numbers, quantity, description, drawing and/or Isometric number, and area and/or unit number. These
requisitions shall be issued in duplicate, the original for the warehouse, the copy for retention by the
drawer of the material.
Material requisitions must be checked carefully before material is issued to assure that specific allocation
is given, and that subject material has not been previously issued.
Whenever material has been previously issued, the Material Administrator should write on requisition:
"Material already issued, see previous requisition number . . . . . . . . .".
Material should never be issued twice. If delivered by error, the Warehouse Supervisor will collect this
material from the Subcontractor.
The Warehouse Supervisor will receive from the Site Engineer a copy of all piping iso/drawings and their
revisions. All issue of material must be marked with red pencil on these drawings. This is for control
purposes and to ensure that no material has been issued twice.
Upon receipt of a revision to a drawing or Isometric materials have to be checked against the previous
issue of the document. In the event more materials are required, Company should prepare this material
and inform the Subcontractor accordingly. Where materials have been deleted, the Subcontractor shall be
requested to return this material to the warehouse if not necessary for drawings/ requisitions in hand for
issue. The Subcontractor is informed in writing when deleted materials from one drawing/requisition have
been allocated to another drawing/requisition.
After the relevant materials have been issued, the material requisition is posted in the Materials Stock
Record Card.
All requisitions received in the warehouse must be filed consecutively according to requisition number and
per subcontractor. All finals must be filed together. All partial requisitions must be filed separately.
If materials requested on a requisition are not in stock, the Warehouse Supervisor should check if they are
on order. If this is the case, the requisition should be filed in an "outstanding requisitions" file. This file
should be periodically checked to see if any requisitions can be further completed. If outstanding materials
are not on order he will send a photostat copy of the requisition to the Materials Supervisor for further
action. Where piping material is required, other than for an iso/ drawing, e.g. for temporary lines, the
requisition shall be approved by the Project Construction Manager or his delegate.
Under no circumstances will material be issued from the warehouse or storage yard to Subcontractor
without the presence of a member of Company's Material Department and use of all required material
control documents.
Project Manager
Area Superintendent
Site Engineer
Office Manager
Material Supervisor
Safety/Security Officer
Construction Specialist
Client's Representatives
All other personnel entering the Warehouse must be accompanied by the Warehouse Supervisor or
Material Administrator or any one of the personnel mentioned above.
This Out-Shipment Report must reflect the Out-Shipment Report sequence number, quantity, item number
and full description of the material, together with the Purchase Order Number upon which the material
was originally received.
Full details of consignee's name and address, reason for the shipment and method of shipment must be
given. Out-Shipment reports will be signed by the Materials Supervisor. The Client may request to
countersign these reports. The carrier must sign legibly for receipt of the goods and insert the registration
number of the vehicle carrying the goods.
Out-Shipment Reports must be posted on the Materials Stock Record Cards. If an Out-Shipment Report
involves material being sent out for repairs or replacement, a Material Receiving Notice must be made
when material is returned/replaced with a note:
"This MRN clears OSR no . . . . . . . .. partially/in its entirety", whichever applies. Material Receiving
Notices for clearance of Out-Shipment Report must be noted in the Out-Shipment Report Register.
Subcontractor's property which is moved from the site on their own Out-Shipment form must first be
checked by the Company Warehouse, and a properly completed Company Out-Shipment report must be
attached as cover sheet.
The Materials Supervisor will sign Out-Shipment Report after obtaining approval from Project
Construction Manager.
Materials on Company Home Office Purchase Orders should be out-shipped only after obtaining AVO or
telex approval from the Home Office Expediting/Purchasing Department. An Out-Shipment Report
Register will be maintained in Warehouse by the Material Administrator.
Date.
Name of consignee.
Description of material.
A copy of the Out-Shipment Report must be mailed to the vendor. Further distribution of Out-Shipment
Reports should be made in accordance with "Document Distribution" or "Construction Coordination
Procedure".
Besides a register for Material Receiving Notices, Out-Shipment and Damage Reports, Out-Shipment
Reports, the Warehouse will maintain the following registers:
19.1 Cable Reel Register
(Form BN-UC 13 Attachment 8)
This register will show a listing of all cable reels received at site. Including the name of the vendor, size
and quantity of cable, date received, Purchase Order number, Material Receiving Notice number and
cable reel number, and whether returnable or not. Whenever empty reels are returned, the Out-Shipment
Report number and date of return must be posted in this register.
19.2 Oxygen and Acetylene Cylinder Register
Only when purchased by Company.
19.3 Gasoline and Oil Drum Register - Returnable Drums
Only when purchased by Company.
19.4 Special Container Register - Returnable Containers
In some cases, materials are received at the job site in containers for which special charges are made.
These are charges on invoices for material involved and credited on return. In other cases, they are
charged only if not returned within a reasonable time to vendor. Those items received on Home Office
Purchase Orders will be covered by an AVO from Home Office Purchasing Department advising shipping
instructions and authorizing return when empty.
Items on Field Purchase Orders should be reported by Materials Supervisor to Job Buyer.
19.5 Rail Car Log Book
When materials or equipment will arrive on site or nearby by rail, a rail car log book should be used that
will show rail car number, time and date of arrival. After the railroad company is advised that the rail car is
emptied and ready for transportation the actual time and date the car is taken away by them should be
noted in the log book. In addition, the log book will show the Purchase Order number and a brief
description of the material received.
Cards will be filed alphabetically. This card system helps to locate Purchase Orders if only the vendor's
name is known.
25.2 Documentation
Records shall be kept to document the protection given the equipment while the manufacturer's guarantee
is in efect. These records shall be kept from the date of arrival of the equipment at site, showing dates of
application of services of each piece of equipment.
25.3 Rust Preventives
The rust preventives referred to herein are RUST-BAN compounds. Some Clients may produce their own
rust preventives, in which case their equivalent preventives shall be used.
Preventive suppliers can give more information as to coverage, application temperature, method of
application, drying time and method of removal.
All interior and exterior surfaces shall be clean and dry before any rust preventive materials are applied.
For cleaning of surfaces mineral spirits or solvent shall be used. Kerosene or gasoline shall not be used
as cleaning agent.
RUST-BAN 357
Reccommended for bearings and internal faces.
All rotating equipment protected by this compound, shall be turned over once per week, to keep bearings
and other critical surfaces coated. This rotating should be done manually. This must not be carried out
with tools, which will damage or mark motor shafts.
Drain water from all reservoirs once a month and fill up reservoir to the proper level. If the fluid becomes
dirty or contaminated water, reservoir shall be drained, flushed with solvent and refilled.
RUST-BAN 373
Recommended for exterior surfaces. This preventive has no lubricating properties, thus before placing
protected part in service, it should be removed from bearing surfaces, threads, or areas that come in
contact with lubricants.
MOISTURE ABSORBANTS
Where internals, etc., would be very difficult to protect from rust, moisture absorbants are used for
protection. When equipment arrives at the site, the seals shall be examined and damaged seals repaired
or replaced, and the absorbant replaced, if necessary.
Seals shall be protected until the equipment is serviced for start-up.
Moisture Absorbants shall be renewed at time intervals as specified by the manufacturer.
25.4 Machinery
On receipt at the construction site, casing and internals are to be inspected through piping nozzles, etc.,
to see if rust preventive has been applied. Protection to be done as follows:
Turbines, Blowers, Agitators, Gear Cases, Centrifugal Pumps and Compressors.
- Flush bearing brackets and gear cases with solvent until clean. Fill with RUST BAN 357 at least till the
shaft and turn shaft several times to apply a protective coat to the entire shaft and bearings.
- Clean shaft couplings and exposed machine surfaces and coat them with RUST-BAN 373.
- If a pump is shipped with mechanical seals installed, fill the stuffing box with RUST- BAN 357. When
mechanical seals are integral with the pump, and the pump is not protected by moisture absorbants or a
blanketing gas, the entire pump should be filled.
- Turbines shipped with carbon rings installed, fill seal chamber with RUST-BAN 357.
- Vertical pumps shall be filled with RUST-BAN 357 after they are moved to their service location.
- Intermediate shaft supports, if necessary, are to be provided to protect against shaft sag.
- Spare rotating elements are to be stored according manufacturers instructions.
25.5 Motors and Generators
Motors, designed for indoor use, and generators are to be stored indoors.
Motors, designed for outdoor use, can be stored outside free from ground with protective covering,
permitting good ventilation.
If space heaters are furnished within the units, they shall be connected to be continuous power supply of
the proper rating, when stored outside, or installed at their service location.
Brushes shall be removed from brush holders, and shall be stored in a dry place, where condensation will
not occur.
Coat couplings and exposed machined surfaces with RUST-BAN 373.
Measuring and recording of insulation resistance values to be carried out as stated in the "Construction
Coordination Procedure".
25.6 Transformers
Transformers intended for outdoor installation can be stored outside.
Large indoor transformers may be stored outside, if raised above grade to prevent any damage from
surface water and if a shed roof and tarpaulin siding are provided.
Where units are supplied complete with insulation liquids/gases, these should be checked on arrival at
site. If level or pressure is not within vendor's tolerances, possible leaks should be located and rectified.
Monthly checks on level/pressure should be made and rectification work carried out when necessary.
Any separately supplied insulation liquid may be stored outside, without protective covering, if laid on their
side at an angle of 45, with the large bung downwards.
25.7 Switchgear, Starters and Control Equipment
Equipment shall be stored indoors in a dry, warm place where condensation of humidity cannot occur.
If high relative humidity or large, rapid changes in temperature are expected, heaters shall be used to
maintain the temperature of approximately 5C above minimum daily temperature.
If space heaters are furnished within the equipment, they shall be connected to a continuous source of
power of the proper rating.
25.8 Cables
Rotate reels of properly insulated lead sheathed cable 90 every two weeks to prevent migrating oil from
collecting at low points.
Measure and record gas pressure in low pressure gas filled cable when received and weekly thereafter.
If falling pressure indicates a leak in the cable, maintain same with dry nitrogen until leak is sealed.
25.9 Batteries
Batteries should be stored indoors in an inactive area to avoid accidental breakage. Batteries that have
been shipped dry and charged shall have the seals checked regularly and in case of damage, repaired
according to vendor's instructions.
Nickel-cadmium and Lead-acid batteries that have been shipped dry do not require maintenance. For
those shipped wet, electrolyte levels should be checked and filled as required. These batteries should
also be recharged tri-monthly. Watch for over-charging.
25.10 Instruments
For instruments a warm, dry and vibration free environment in a secure under cover storage area is
required. Recommended environment conditions are temperature range of 15 to 30 and humidity
between 30 to 40%.
Instruments can be stored in the above environment for up to four months in their shipment cases. Where
cases/packing have been opened the plastic coverings are to be retained and resealed in the manner
they were shipped. Panels to be stored in their shipping cases up-right until moved into the control house.
Instruments installed in outdoor locations shall be protected from weather and mechanical damage.
25.11 Piping
Any protective coatings/paintwork on piping shall be maintained throughout the storage and construction
period, as well as the colour coding on piping.
25.12 Flanges
Flanges from 2" and up can be stored outdoors on timber floor or palets.
All flange faces to be cleaned with a solvent if required and protective coating applied and maintained.
When machinal flange face is damaged, remedial work has to be carried out before use.
Flange facings with 125 RMS (for use with spiral wound gaskets) MUST be remachined before use, if
damaged.
25.13 Valves
Manually operated valves from 2" and up can be stored outside, on a timber floor or pallets.
Large automatic control valves such as slide valves, motor operated valves may be stored outdoors, on
timber floor and with suitable covering over each valve.
Valves stored outdoors shall be inspected every two weeks and coating or rust preventive renewed if
required. On arrival at the site, when spot check reveals remove all flange covers, clean flange faces with
solvent and coat with a rust preventive. Inspect valve stems and valves internals. It necessary clean with
solvent and apply rust preventive coating seat all manually operated valves. Plugvalves and soft-seated
ballvalves to be stored in open position. Valves to be stored with spindles in vertical position.
Valve handwheels must not be used for lifting valves, slings etc. must not be passed through valve bore
during handling. Plug any open threaded connection.
Each valve shall be fitted with an aluminium tag securely attached with stainless steel wire.
Each tag shall be clearly stamped with the valve item number. Tags shall normally be closely attached to
the gland bolting. Tags on valves that do not have gland bolting may be attached to the handwheel or
other appropriate locations. Tags shall not be attached through boltholes of end flanges or where handling
might be subject to damage or loss.
If not done so by vendor, warehouse to take action.
26 Q.C. Procedure
Reference should be made to the Field Construction Manual - Quality Control - Section 20, "Care and
protection of equipment during construction". If there is a diference in interpretation between this
procedure and the one stated above, the procedure which gives greater protection takes precedence.
29 Attachment summary
1.
2.
4.
5.
OUT-SHIPMENT REPORT
7.
8.
9.
10.
PICKING LIST
11.
Introduction
2.
Responsibilities
3.
Control Budget
4.
5.
6.
Cost Analysis
7.
X, Y and Z Control
8.
9.
Backcharges
10.
Attachment Summary
1. Introduction
The purpose of this procedure is to detail the methods to be used for gathering, reporting, administering,
analyzing, forecasting and providing the basis for controlling costs incurred in the field.
The basic concept of the Company cost control and reporting procedure is specified in BN-EP 610 Home
Office Cost Management Procedure. This Field Cost Management Procedure is based on the same
principles and basic philosophy and complementary to BN-EP 610.
2. Responsibilities
The Field Cost Engineer is functionally responsible to the Site Control Manager and through him to the
Project Construction Manager. A line of communication exists between the Lead Home Office Cost
Engineer and the Field Cost Engineer.
The Field Cost Engineer's duties include continuous scope evaluation including extra work, review of
progress payment certificates, cash flow forecasts, contribution to the establishment of estimated finals,
specific cost studies and issue of field cost reports.
The Home Office Cost Engineer is responsible for the overall cost reporting of the whole project, based on
the field reports where this is relevant. He also contributes to the establishment of the estimated final
costs and budgets.
3. Control Budget
The field control budgets will be established in the Home Office, in conjunction with the Construction
Department.
The control budget for the X, Y and Z accounts and direct hired labor if any will be based on the "as sold"
estimate.
The control budgets for the subcontracts will be based on the scope of work defined by the original form
of tender plus a contingency for possible scope increases and escalation.
The field budget control is afected in the field by field change orders or every scope change in
accordance with the Change Order Procedure BN-EP 205.
4.2 Initiation The preparation of a Field Change Order can be initiated either by the Client by means of a
written request or by the Project Construction Manager.
4.3 Type of Field Change Orders (Attachment 1)
A firm or fixed price field change order is based on an estimate of material and labor costs plus
overheads, fees, contingencies and escalation in accordance with instructions from the home office.
Field change orders for cost plus or reimbursable extra work should include an estimate of the total cost
involved.
In most cases, through Client's approval of material purchases, daily labor and/or equipment time sheets,
etc., is required on a daily or weekly basis. Upon the completion of the work the final value of the order is
adjusted in accordance with the total costs incurred.
In all cases, the client's written approval must be obtained. If this is not possible then the approval of the
Project Manager is required prior to the execution of any work or commitments to a subcontractor.
4.4 Numbering and Distribution
The Home Office Change Order Form UE(1)-6-2 is used for field changes by adding the word "FIELD" to
the heading and an "F" before CO in the right hand top corner.
All Field Change Orders must be numbered sequentially (also including those Field Change Orders which
have been rejected by the Client).
Copies of approved and/or rejected Field Change Orders shall be distributed as per the project document
distribution schedule.
4.5 Field Change Order Register
The purpose of this register is to ensure that the Home Office is informed of all Field Change Orders.
The register shall be maintained by the Site Control Department. A copy of this register shall be included
in the monthly progress and cost report.
tender value is the subcontract contingency. All contingency information is confidential and should not be
disclosed to the Subcontractor, or other unauthorized parties.
5.3 The Subcontract Scope
The subcontract scope is defined by the pay-items with their description on the form of tender appended
to the subcontract purchase order. The amount of work formally committed is defined by the pay-item
quantities on the form of tender. The form of tender must, in principle, be updated by the Home Office at
least each quarter to reflect possible changes in quantity.
If administration is done by computer, the Home Office Cost Analysis Department will input all form of
tender data into the computer. Computerized form of tender reports will be made available to the field
(Attachment 2).
5.4 Field Progress Measurement
- "Engineering Quantity Input Form" (Attachment 3)
The Home Office will quantify every drawing which is certified for construction by filling in form BN-US
118-5, which is then issued to the field as an attachment to the drawing.
- Quantity Alterations and Cost
The Home Office is expected to advise the field on any price consequences as a result of new and/or
revised issue of drawings.
The Subcontractor shall be requested to advise Company field of any price consequences as a result of
new and/or revised issue of drawings.
- "Quantity of Work Done Input Sheet" (Attachment 4)
Each Subcontractor reports his progress monthly, by submitting "Quantity of Work Done Input Sheet".
Weekly reporting is recommended for subcontractors with progress problems.
- "Progress Payment Certificate" (Attachment 5)
Following review and approval of the quantity of work done input sheets by the Quantity Surveyor, the
input sheets are submitted to the Field Cost Engineer or the subcontract administration group who will
prepare a monthly "Progress Payment Certificate" stating the value of the work done. The subcontractor
will use the certificate as backup for his invoice.
- "Drawing - Actual Comparison Report" (Attachment 6)
A copy of the approved Quantity of Work Done input sheets must be submitted monthly to the Home
Office Project Control Department for processing in the computer if applicable. The output reports i.e. the
Drawing - Actual Comparison report will be made available to the field with copies for the subcontractor.
5.5 Additional Work
There will be a certain amount of work on each subcontract for which no drawing quantities takeof has
been made by the Home Office.
This will be either:
- Work to which existing pay-item rates can be applied change in quantity of work. Such work is
considered to be in the Subcontractor's scope of work and does not require an "Extra Work
Authorization".
- Work to which no existing pay-item rates can be applied (scope change). Such work requires an "Extra
Work Authorization" which describes the work and shows the price agreed upon and further conditions.
5.5.1 Definition of an "Extra Work Authorization" (Attachment 7)
An Extra Work Authorization is an instruction and an authorization to a Subcontractor to perform work not
covered by the scope of the requisition to the original subcontract and for deletions of work.
Work covered on EWA's can be executed on one of the following basis:
a. On a lump sum basis.
b. On unit price basis (existing or negotiated).
c. On daywork rates (existing or negotiated).
d. A combination of b. and c.
All EWA's at pre-qualified value limits, established in agreement with the Project Manager, shall be signed
by the Project Construction Manager and issued to the Subcontractor.
EWA's shall be numbered per subcontract purchase order number followed by an EWA sequence number
for example: A110/001, A110/002 etc.
No other means of authorizing extra work will be allowed, e.g. any verbal or written communication (such
as AVO's, Interoffice Memo's and the like).
5.5.2 Types of Extra Work Authorization
- Fixed Price EWA
A Fixed Price EWA covers the extra work, if a firm lump sum quotation can be obtained from the
Subcontractor before issuance of the EWA.
- Open-Ended EWA
In many cases the nature of the work makes it impossible or impractical to obtain a firm quotation before
the work is initiated. In such cases, the work shall be carried out on a reimbursable unit price or day work
basis. Before any such open ended EWA is issued, the Company initiator and the Cost Engineer shall
establish an estimated cost of the work, based on existing unit rates. These estimates are required for
cost forecasting and shall not be divulged to the Subcontractor.
5.5.3 Preparation of an "Extra Work Authorization"
The Company initiator of an EWA is responsible for a proper description and calculation of quantities of
the work and must submit the draft EWA to the Field Cost Engineer who will estimate the costs involved
and prepare the formal EWA.
The Cost Engineer and the Project Subcontracts Manager is responsible for screening to ensure that the
work is not covered in the subcontract. The reason for the EWA and the scope of work must be clearly
described and accompanied by a Cost Estimate. Whenever possible the estimate should be based on
agreed unit rates. The initial rough draft is to be attached to the green (field) copy of the EWA.
If new unit prices or lump sums are required for the additional work, the Project Subcontracts Manager will
negotiate the required rates with the Subcontractor before authorizing him to commence the work.
For a new unit rate or lump sum quotation, the Subcontractor should be asked to submit his quotation in a
letter addressed to the Project Construction Manager.
If a fully computerized system is used, the Home Office Project Control Department will input the new
EWA's into the computer. To this end each EWA will be input as a "pay-item" with a pay-item number
consisting of a two digit pay-item chapter number followed by the EWA number. The chapter number shall
always be eight (8), subdivided to categorize EWA's as follows:
81 ... = Field Changes
82 ... = Engineering Changes
83 ... = Client Changes
84 ... = Back Charges
85 ... = Miscellaneous Changes
etc.
The Cost Engineer is responsible for adding the pay-item onto the EWA.
5.5.4 Extra Work Authorization Register
The Cost Engineer will prepare and maintain an EWA Register.
The EWA numbers assigned will be reported monthly. This summary will be included in the Monthly
Progress Report.
5.5.5 Extra Work Authorization Report (EWAR) (Attachment 8)
Each month the Cost Engineer will issue for each open-ended Extra Work Authorization an Extra Work
Authorization Report (EWAR) stating the actual quantities and amounts expended during the month,
including the forecast of cost at completion.
EWAR's shall be numbered per subcontract purchase order number followed by an EWAR sequence
number for example: A110/1, A110/2 etc., and shall give reference to the subject EWA number.
Distribution of EWAR's is the same as for EWA's.
5.5.6 Cost Control Aspects of EWA's
For Budget Control purposes all Extra Work Authorizations and Reports shall always give a breakdown of
the manhours and costs in accordance with the proper Cost Codes for the work involved.
The Project Construction Manager shall review the estimated final costs for all outstanding open-ended
EWA's each month.
Whenever it becomes evident that the actual manhours and/or costs of an open-ended EWA will be
significantly higher or lower than the initial estimates, the Project Construction Manager shall issue a
revision to the original Extra Work Authorization.
The Subcontractor shall not receive a copy of such a revision unless a modification or elaboration of the
extent or timing of the work is also required. The current total estimated costs of all EWA's and EWAR's
not yet covered by Purchase Order Amendments shall be reported in the proper cost codes as "Additional
Costs to Complete".
After an EWA has been covered by a Purchase Order Amendment, such amount shall be reported as
"Commitment".
5.5.7 Purchase Order Control of EWA's
An EWA is subject to the terms and conditions of the applicable Purchase Order and shall be covered by
an Amendment to the Purchase Order.
- Fixed Price EWA's and P.O. Amendments
Fixed Price EWA's shall be covered by a Purchase Order Amendment immediately after the Procurement
Department has received a copy of the EWA.
- EWAR's and P.O. Amendments
When the work covered by open-ended type EWA's is of relatively short time duration, i.e. one or two
months, such EWA's shall be covered by Purchase Order Amendment upon receipt by the Procurement
Department of their copy of the "FINAL" Extra Work Authorization Report.
- Interim EWAR's and P.O. Amendments
When the work covered by an open-ended EWA is expected to require an extended period to complete,
the Procurement Department Home Office shall periodically issue amendments to the Purchase Order
upon receipt of the interim EWAR's provided that the amounts on these interim EWAR's are such that
amending the Purchase Order is justified. The timing of such interim amendments will be determined in
consultation with the Project Manager. The amendment to the Purchase Order will cover only actual costs
incurred/work performed as indicated on the interim EWAR's.
5.5.8 Definition of a "Pay Item Authorization" (Attachment 9)
Sometimes it is possible and more practical to establish pay-items rather than to issue an EWA. The
subcontractor should be requested to submit his quotation with the new pay-item rate(s) to the Company
Field Office for review and possible approval.
The Project Subcontracts Manager will negotiate the new required pay-item(s) before the Subcontractor is
authorized to commence the work.
Following agreement, a Pay Item Authorization is released which describes the work and shows the
agreed pay-item rate(s) and further conditions.
The approval to begin the work is given by the Construction Manager signing the "PIA Form". The
authority for this approval is based on prequalified value limits.
If a fully computerized system is used, the Home Office Project Control Department will arrange for the
input of the new pay-item(s).
5.5.9 Authorization of EWA's and PIA's by the Client
Authorization by the Client is required when additional work is not covered by the Prime Contract between
Company and the Client.
5.6 Progress Monitoring of Daywork (Attachment 10)
Control of work performed on the basis of daywork rates will be accomplished in cooperation between the
Construction Specialist and the Quantity Surveyor.
Responsibilities of The Construction Specialist Includes:
Monitoring the work against the original estimate.
Signing the Subcontractor's day-work sheets for acknowledgement of the expended time, equipment
and/or material.
Ensuring that for day-work executed, day-work sheets are submitted by the Subcontractor at the close of
each working day.
Submittal of signed day-work sheets to the Subcontracts Administrator for further handling.
Responsibilities of the Quantity Surveyor Includes:
After receipt of a copy of the EWA's for work executed on day-work basis he will make routine checks of
the work and advise the Cost Engineer of his findings.
6. Cost Analysis
6.1 Subcontract Cost Reports
Manually
For each subcontract a detailed cost report will be made by the Field Cost Engineer which will show for
each pay-item on the form of tender the following: the form of tender value, additional to complete,
estimated final cost, original budget, revised budget, over/underrun, value of work done. This report is for
internal use for trending, analysis and progress monitoring.
The "bottom line totals" are reported in the formal monthly field cost report.
By Computer (Attachment 11)
If all subcontracts are administered by use of computer the subcontract cost reports become available
automatically.
6.2 Subcontract Cost Analysis and Trending
Quantity analysis:
When subcontracts are administered by computer the monitoring of pay-item quantities executed versus
the total quantities shown on the drawings is the responsibility of the Home Office Project Control
Department. This is done by processing the Quantity of Work Done input sheets submitted by the field on
a monthly basis. The output report is called Drawing/Actual Comparison. The purpose of this analysis is
to update the form of tender in time so as to give the Subcontractor and the field early warning of possible
changes in the amount of work.
Following receipt in the field of the Drawing/Actual Comparison report, the Field Cost Engineer will check
on discrepancies (Attachment 12 and 13).
6.3 Time Cost Analysis:
The Field Cost Engineer in coordination with the Planner compares the value of the work done against the
invoices and the cost of the actual manhours expended by the Subcontractor. Thus assessments are
done to enable a reliable forecast of predicted final manhours, cost and completion dates.
Planned Cost Progress Curve
Before starting the work the Home Office Planning Department will prepare for each subcontract a cost
progress curve in which the value of the pay-item is to be installed in order to meet the Subcontractor's
schedule, plotted against the time as a percentage of the original budget for the subcontract ("planned
progress curve").
For this analysis, the "planned" curves must be adjusted by the Field Planning or Cost Engineer to include
EWA's and or Change Orders.
Actual Cost Progress Curve
The Field Cost Engineer must plot the value of pay-items actually installed into the same graph so that a
trending of progress achieved (i.e. payments due to the Subcontractor) against the planned progress is
possible. Subcontractor's Manpower Histogram Before starting the work, the Subcontractor must provide
his manpower histogram. On the basis of this manpower histogram the Home Office Planning Department
will prepare a cumulative manhour expenditure curve against which the Field Cost Engineer should plot
the actual over manhour expenditure as reported by the Subcontractor and (spot) checked by Company.
6.4 Predicted Final Costs Analysis
The predicted final costs are reviewed by the Field Cost Engineer and if necessary adjusted to be in
accordance with the results of other analyses, subcontract completion, etc. For all major adjustments the
Home Office Cost Engineer must be advised. They must be reviewed with the Project Construction
Manager and the Project Manager before formally reporting them.
6.5 Subcontract Administration by Computer
Relevant sections of the "user's manual" of the computerized subcontract control system have been
attached (Attachment 14) to serve as a guide and to provide instructions for the preparation of input by
the field.
6.6 Field Cost Report
The Field Cost Report forms part of the Monthly Progress Report. Description and contents of this report
are given in Section VIII, Item 4.7 of the Construction Field Manual.
7. X, Y and Z Control
7.1 General
For the X, Y and Z accounts a control budget will be made available. The Field Cost Engineer will monitor
the actual costs and manhours against the budget. He shall also determine the estimated final costs
taking into account actual durations of assignments, schedule achievements, etc., as reviewed with and
approved by the Project Construction Manager.
7.2 Monthly Analysis Cost Codes X, Y and Z
(Attachment 15)
The vellum of this report is sent monthly on the cut-of date to the Project Construction Manager. He will
make further distribution as required.
The lower section of this form, "Specification of A-T Supervision and A-T Labor" will be used only on
direct-hire type projects. The same applies for Cost Codes YG 0082 and YG 0084.
Cost Code XB through XY
All expenditures for temporary construction will be charged against the following accounts:
XB -Temporary Buildings and Shelters incl. Plumbing, Wiring, Fixed Furniture, Foundations (furnished with
Buildings).
XC - Temporary Piping for Steam, Air or Water (not inside temporary buildings, then XB).
XE - Temporary Electrical (not inside temporary buildings, then XB).
XJ - Temporary Earthwork, Roads, Parking, etc.
XQ - Temporary Sanitary Facilities.
XY - Other Temporary Constructions (Fences, Signs, etc.).
Cost Code YC and YL
These cost codes cover all manhours and labor cost for field staf (see Section II, Article 1 of the
Construction Field Manual).
YC - Field Staf - Permanent Contract (Labor only).
YL - Field Staf - Temporary Contract (Labor only).
YR - Relocation Costs for Field Staf (Material only).
YG - Field Office Expenses (Material only).
Labor costs include salaries and payroll burden.
The costs shall be obtained from the Home Office Construction Department. In principle an average cost
per manhour for each cost code YC and YL will be given.
With each new assignment an adjusted average rate shall be obtained.
By using the field's record of manhours worked (from the weekly time reports) the periodical commitment
can be calculated.
For the "Estimate to Complete" the above average rate plus estimated escalation and estimated
manhours should be used.
Staf agency employees and "Y" labor hired from Subcontractors, e.g. Warehouse helpers are coded cost
code YL.
In case YL employees are employed by the Home Office, the Home Office Construction Department
should be contacted as to whether such YL employees should be coded YC or YL for the specific project.
Cost
Code YR
Relocation Costs for Field Staf (no labor costs), which should include all expenses in connection with the
relocation of an employee to the field and return.
Cost Code YG 0010
Travel on behalf of job (business travel) incl. subsistence. Excluding Daily Travel (YG 80) and Relocation
Costs (YR).
Cost Code YG 0020
Costs for Reproduction and Office Supplies.
Cost Code YG 0030
Costs for Communications (telephone, telex and franking machine).
Cost Code YG 0040
Expenditures for all office equipment and furniture either rented or purchased. Also includes survey
equipment.
Cost Code YG 00611
Costs for Electronic Data Processing for Field Payroll.
Cost Code YG 00613
Cost for EDP - MH - Budget Control.
These costs are to be obtained from the Home Office Cost Engineer if the Home Office computer is used.
Cost Code YG 0090
All other office costs, such as Field Office first aid kit, progress photographs and any other miscellaneous
Field Office costs which cannot be allocated to other YG accounts.
Cost Code YG 0081
Costs for Daily Travel for Y Personnel from Home (Hotel) to field and return, by private automobile against
kilometer allowance.
Cost Code YG 0083
Lodging Allowance (assignment allowance) for Y Personnel.
Cost Code YG 0082 and YG 0084
Will only be used on Direct Hire Type Contracts.
Note:
Telephone, Telex and Printing Costs
As costs for these items may cause confusion as to what cost code these costs are to be charged, the
following break down is given:
Telex:
a. Telex Paper and Punch Tape YG 0020
b. Monthly Subscription YG 0030
c. Rental Costs YG 0040
d. Installation Costs YG 0040
Telephone:
a. Costs for Calls and Telephone Directories YG 0030
b. Monthly Subscription YG 0030
c. Cost of Switch Board (Purchase or Rental) YG 0040
d. Installation Costs YG 0040
Printing:
a. Rental or Purchase Cost of Printing Machine YG 0040
b. Labor Costs for Maintenance YG 0040
c. Costs for Printing Paper YG 0020
d. Costs for Chemicals (Toner, Developer, etc.) YG 0020
e. Costs for Prints Reproductions - copies YG 0020
Cost Code ZC 0010
Costs for Welding and Burning Supplies (usually only on Direct Hire projects).
Cost Code ZC 0020
Costs for Fuel and Lubricants (including Gas - Oil etc.) including those for job cars.
Cost Code ZC 0030
Costs of water consumption. A flagcode may be used to distinguish between potable and other water.
Cost Code ZC 0040
Costs for Electricity and Steam consumption.
Cost Code ZC 0050
Costs for Safety Equipment, such as warning lamps, ropes, warning signs, safety belts, gasmasks, etc.
Cost Code ZC 0090
If a significant amount of field purchase orders is expected it is worthwhile to establish a control budget in
conjunction with the Home Office Cost Engineer. Actual commitments (= P.O. values) are then monitored
against the budget. In any case the Field Cost Engineer must establish an estimated final, if not in detail,
at least for the total of the field purchase orders.
9. Backcharges
9.1 General
There are times when defective materials or equipment are received at the job field. Sometimes the
materials or equipment are obviously defective upon arrival, while at other times the defects do not
become apparent until a later date. In both cases a backcharge should be prepared even though in the
latter case, responsibility for the defect or damage may be difficult to establish and/or prove.
Also during the course of the construction it might be necessary to backcharge certain costs or services
to a Subcontractor.
9.2 Backcharge to Vendor
(Attachment 16)
- The person, who identifies the damage or error advises the Site Engineer in writing (AVO) immediately.
- The Site Engineer will notify the Vendor or Subcontractor through the Home Office Procurement
Department. In cases where it is expeditious for the Field to contact the Vendor or Subcontractor directly,
copies of all correspondence and confirmations must be sent to the Project Manager, the Home Office
Procurement and Accounting Department.
- The Vendor or Subcontractor must be given the opportunity to correct the deficiency either by
replacement or field repair. It should be noted if and how much job progress is delayed. Vendors should
always (except in obviously minor cases) be urged to send an authorized representative to field to ascertain firsthand the state of afairs and expedite prompt action, this minimizes costs and delays for all
concerned.
- Many vendors consider only that portion of the field work required to remove and replace the defective
part as the basis for a backcharge. They neglect to consider the other work involved, such as the
disconnection of piping, controls, the removal of insulation, other mechanical interferences etc., which are
consequential activities to the removal of a defective part. This work has to be brought to the
Vendor/Subcontractor's attention by means of a detailed cost estimate, advising him that these costs are
also part of the backcharge.
- Backcharge to Vendor Form BN-UC 47 should be prepared by the Project Subcontracts Manager, and
should contain a description of the deficiency and an itemized estimate of costs, if Company has the
remedial work carried out by others.
9.3 Distribution of Backcharge Forms
- The Backcharge to Vendor form is a package consisting of three copies. All three copies are to be sent
to the Vendor/Subcontractor for acceptance and signature. The Vendor/Subcontractor will return the
original (yellow) and first copy (green) with acceptance signature to the Field Office.
- The Field Office keeps a xerox copy until the original has been returned by the Vendor/Subcontractor.
The yellow copy is the Home Office copy and is to be forwarded to the Project Manager for further
distribution.
- The green copy will remain with the Cost Engineer in the Purchase Order file after he has made copies
for further distribution in the Field Office as per the Field Document Distribution List.
9.4 Vendor's Acceptance of Cost Incurred
- The field should have the Vendor's acceptance of backcharges in writing whenever possible, before any
remedial work is performed in the field by others. The Home Office Procurement Department through the
Project Manager should be contacted when work is delayed due to non-receipt of the acceptance of backcharge from the Vendor. If necessary, the Project Manager may authorize the field to perform the
necessary work without the Vendor's approval.
- It is imperative that the aforementioned procedure for backcharge authorization is adhered to, to ensure
that billings for backcharges are accepted by Vendor. All too often troubles arise in the field when
everyone is under pressure to get the job finished and someone verbally authorizes a Subcontractor to
make expensive remedial measures, without taking time to formally request the Vendor to make
corrections, and/or to give him in advance an idea of the magnitude of the costs which will be
backcharged.
- Where equipment is under guarantee, we are contractually bound to formally request the Vendor to
make the corrections.
- The field will deal directly with the Vendor in connection with back charges for Field Purchase Orders.
- For back charges on indirect costs (X, Y, Z) see Section X.
9.5 Backcharge to Vendor Report
(Attachment 17)
As the repair work is proceeding, the Cost Engineer accumulates time and material charges on the Back
Charge to Vendor Report, and the Vendor is requested to sign this form upon completion of the work.
These forms are packages consisting of three copies and handling and distribution are the same as for
"Back Charge to Vendor" see Item 9.3 of this section.
9.5 Backcharge to Vendor Register
(Attachment 18)
The purpose of this register is to maintain a status record of all back charges and to ensure that Home
Office is informed.
Final payment to the Vendor shall not be made by the Home Office until backcharges are finalized.
The register shall be maintained by the Cost Engineer.
All back charges are to be numbered sequentially using the prefix BX.
The register should be sent to the Home Office upon project completion in accordance with the Job Close
Out Procedure.
2. Introduction
For a full description and qualification of the subcontract control system, reference is made to the
appropriate Engineering Procedures. The subcontract reports which are the subject of this manual form
an integral part of the overall subcontract control system.
The fundamentals of this system are:
- The work to be done under a subcontract is broken down into a minimum but adequate number of
measurable amounts of work called PAY ITEMS against which the subcontractor quotes his UNIT RATES.
- The work to be done, e.g. the SCOPE is quantified (= the pay items are taken of) per drawing before the
work starts.
- Applying the unit rates to the pay item quantities which form the scope of work, results in the VALUE of
the WORK to be done per drawing and for the whole subcontract.
- The amount and the value of WORK DONE at site is easily determined in the field on a drawing by
drawing basis and compared with the (pre-quantified) scope for scope -, progress - and productivity monitoring.
- The same measurement of the "work done" is used for certifying PROGRESS PAYMENTS.
3. Program Description
The subcontract control system is applicable to both lump sum - and unit rate subcontracts.
The objectives of the computer system are:
- To provide the field with a work scope which is defined by quantity and value per subcontract, per
drawing and per pay-item.
- To report the "work done" against total scope i.e. to establish progress gained.
- To provide a basis for approving subcontractors invoices (progress payments).
- To monitor the total amount of work to be done (quantity and value) against the budget and/or against
the formal subcontract amount (form of tender value).
These objectives are achieved by collecting input information in five categories, processing it and
producing several output reports.
4. Input
The input consists of:
- General information concerning the subcontract of purchase order, such as P.O. number, subcontractors
name, reporting currency, type of subcontract, transaction currency, etc. Source: Subcontract.
- Unit prices by pay-item and estimated pay-item quantities. Source: Form of Tender.
- Cost Control information such as: Predicted Final Cost, Original Budget, Revised Budget. Source: Cost
Report.
- Engineering quantities, i.e. pay-item quantities taken of per drawing before the work is done. Source:
either manual take ofs from drawings or computer output from the piping material control system (PMC).
The latter possibility only exists for piping, insulation and painting subcontracts.
- Actual quantities, i.e. pay-item quantities of work actually executed in the field. Source: field
measurements.
The input forms have been designed for use either in the fully computerized subcontract control system or
in a manual operation.
5. Processing
The processing basically consists of multiplying unit rates with the various relevant quantities in order to
arrive at "value of work to be done" per subcontract, per drawing and per pay-item, and "value of work
done" in the same breakdown. Furthermore, several sorts can be made.
6. Output
The above results in a number of output reports which allow for a monitoring of scope, subcontracts
value, progress and performance of the subcontractor. Refer to Item 7.0 for more details.
8. Output
8.1 Output Report Description
At present the following groups of output reports can be produced:
the "Form of Tender Reports"
the "Quantity-Value Reports"
and the "Subcontract Cost Reports".
The first group is only related to the subcontracts, i.e. forms of tender. The reports of this group primarily
serve commercial purposes. The second and third group of reports shows the unit rates related to the
design and actual quantities. These reports are primarily used for control purposes and for invoice
checking.
Following is a brief rundown of the reports which can be produced at the present:
SC-2110, Form of Tender Report
Shows, sorted by pay item:
- Cost code
- Pay-item description
- Quantity shown on form of tender
- Unit rates, M, L, M + L
- Total value
- Transaction currency
- Entry date
Form of Tender Preliminary Contract Value Report
Shows, sorted by pay-item chapter:
- Pay-item chapter description
- Form of tender value
- Transaction currency
This report is a summary of the above report.
SC-2160, Drawing-Actual Comparison Report
Shows, sorted by drawing number:
- Pay-item (see note)
- Unit rate
- Drawing quantity and amount
- Total actual quantity and amount installed
- A "FINAL" indication
- Actual quantity and amount installed "this period"
Note: Isometrics already on file but re-entered are flagged *. The latest drawing amount will be printed
out. If already work had been executed on such an isometric, the work "Amount" will be printed in the
description column. This is a flagging to the field for instance to adjust their progress calculations.
Drawing-Actual Comparison Report "Summary"
Shows, sorted by drawing number:
- Total mount on drawing
- Total amount actually installed
- Amount installed this period.
This report is a summary of the above report.
SC-2170, Quantity Report
Shows, sorted by pay-item:
- Area
- Pay-item description
- Form of tender quantity, drawing quantity, total actual quantity installed
1.
Introduction
2.
Project Definition
3.
Planning Definitions
4.
Responsibilities
5.
6.
7.
8.
9.
10.
11.
Communication
12.
Conclusion
13.
Attachment summary
1. Introduction
This Procedure describes the methods and procedures in use in the Company Construction Organization
to plan and schedule (in barchart form) the Construction phase of a project and draws together descriptions of the systems and procedures used for analyzing and recording outstanding work, outstanding
time, productivity analysis and projections.
It is evident that construction planning is directly linked to the home office planning and scheduling of
engineering and procurement. This document therefore includes a brief description of methods,
procedures and planning documents produced by the Home Office planning department.
2. Project Definition
The major parameters defining project planning and scheduling are scope, cost, time, resource, material
and productivity.
The above key parameters are related in a logically linked manner towards the final objective, the
completion of the construction of a process plant against the agreed schedule.
3. Planning Definitions
In describing planning, Company uses the following definitions.
- PLANNING - Planning is the formulation of the logic and execution strategy of the work to be done.
- SCHEDULING - Scheduling is the proper assignment of resources to complete the work within the
contract time scale and in the most efficient manner.
- MONITORING - Monitoring is the continuous assessment of the work completed in every discipline and
every stage until completion.
- PRODUCTIVITY - Productivity is the manhours "earned" for work done against manhours expended, i.e.
the value of the pay items.
- PROGRESS - Progress is the measured value of work done in agreed units of execution against
contractually laid down pay items.
- TRENDING - Trending is the analysis of progress, productivity and cash flow in order to forecast any
adverse factors and to take full advantage of resources, cost and progress savings.
- CONTROLLING - Controlling is the continuous assessment of the most efective use of money, material
and resources to maintain a smooth progression towards completion.
- CORRECTIVE ACTION - Corrective action is the analysis and implementation of the most efective
action to recover or reverse any adverse trend of progress, productivity or cash flow.
- REPORTING - Reporting is a standardized procedure to record progress and productivity which are
continuously measured in order to assess the viability of scheduled completion dates throughout the life of
the Project.
4. Responsibilities
4.1 Project Construction Manager
It is the responsibility of the Project Construction Manager to ensure that subcontractor performance
adheres to the project planning and scheduling objectives.
4.2 Field Construction Planner
The Field Construction Planner is responsible for planning, scheduling, monitoring, trending and
controlling practices throughout the Construction and Commissioning phases of a process plant he
reports, through the field organization structure, to the Project Construction Manager.
The Field Planning Department is responsible for reporting all field progress in sufficient detail to the
Home Office project planner so that he can monitor and update the project schedule.
The Construction Planner will:
- Continue to develop and keep updated the schedules that are started in the Home Office in order to
monitor trend and control the field activities.
- Ensure that all subcontractor-produced schedules are passed to him for assessment, comment,
subcontractor coordination and approval.
- Ensure that all subcontractor schedules are adequately produced and in sufficient detail to permit proper
monitoring, trending and control.
- Ensure that all subcontractor manhours and physical progress returns are made at the right time and
frequency and in sufficient detail to maximize monitoring, trending and control.
- Assess subcontractor progress and productivity and attend all meetings at which progress related
matters are discussed.
- Prepare Company specialist/subcontractor work lists, discuss and review with all superintendents and
personnel responsible to ensure compliance and highlight problems.
- Walk the field daily or with whatever freqency is necessary to maintain a practical fluent awareness of
the field situation at all times.
- Develop with field management and subcontractors any detail schedules, records or other information
that may be identified when the need arises.
- By continuous resource to expediting and other reports, maintain a constant awareness of the actual
and "due at field" dates of equipment, certified drawings, vendor supply and erect materials prefabricated
spools and any significant bulk or specific E & K 'items'.
- Update all progress and manpower documentation, report the actual and overall gain of every
subcontractor activity against the schedule requirements, summarize work completed, highlight problems
and assess period (in weeks) ahead of or behind schedules. This is done on a monthly basis or more
frequently as required.
Efective project control by the Planner results in the coordination of the above elements into specific
recommendations to the Project Construction Manager, who is responsible for the direction of the
construction of a Project and of the implementation of corrective action.
4.3 Home Office - Field Transition
A senior construction representative should participate sufficiently in the Home Office in developing the
construction part of the Project Detail Schedule. He will interact with the project manager and the project
planning engineer to develop the execution plan and Key Date Schedule for subcontractors. This
participation should be of sufficient duration to efectively accomplish, among other things, the following:
- Familiarize himself with the schedule for certified drawings to the field, deliveries of equipment, and
materials including Key deliveries which are centers of gravity of bulk materials.
- Review the construction part of the Project Schedule and refine it as necessary.
- Establish start dates for the various construction disciplines.
- Establish completion dates for the various construction disciplines based upon contractual
delivery/commissioning requirements and thus establish the rate of progress required within the schedule.
- Discuss, agree and develop the planning documents and narrative format required by the Project
Manager and Construction Manager for the Construction Monthly Report.
- Liaise with Cost Engineering on the parameters for weighted physical progress of all field engineering
disciplines and the selection of pay items to monitor and control the progress in the simplest and most
efective way for Subcontractor Administration, Project Management and Client relations.
- Develop the basis of the Field Planning records and files for the subcontractors.
- Discuss, agree and develop with the Project Subcontracts Manager the planning and reporting required
contractually of each subcontractor discipline to optimize subcontract progress monitoring, trending and
control.
- Attend and contribute to any construction and/or planning related meetings that may develop or be called
during his assignment.
- Investigate and develop as far as is possible the transition in the field from area concept planning to
commissioning systems planning and develop a "systems commissioning path".
- Closely study and review all the "supply and erect" work schedules and satisfy himself that the continued
supply of materials and certified drawings will systain the field erection progress requirements.
- Ensure that all documentation generated at the field is prepared on the standard format and in
accordance with the relevant Planning Procedures.
indentified activities to be carried out by each subcontractor, and it is issued with the invitation to bid. With
his bid the subcontractor must include his manpower allocation and histogram to support the key
completion dates required by contract.
5.5 Construction Detail Schedules
These schedules are prepared by the Field Construction Planner in accordance with the specific project
requirements. Details on developing, monitoring and updating the schedules are defined elsewhere in this
standard procedure.
5.6 Planned Manpower Histograms and Progress Curves
The construction schedule having being set, the necessary progress to be maintained in every discipline
and the labor resources required is calculated.
From this information, based upon the definitive estimate of the job, the subcontract manpower
histograms and the planned progress curves are drawn up .
A manpower histogram for any activity shows the buildup, plateau and decline of the activity work force
necessary to complete that activity within specified time parameters.
By proper definition of the scope of the activity the manhours are estimated, taking into account a value
for sickness, holiday and weather, and the local rules for the working week.
The schedule defines the earliest and latest start and finish dates of the activity based primarily upon an
estimate of the duration and resources available.
5.7 Construction Sub-Contract Schedules
The Subcontractor is required to provide detailed construction schedules, within three or four weeks of
contract award, which are in accordance with the "keydate" schedules supplied by Company.
The Subcontractor must prepare, for Company's approval, his detailed schedule breaking down their
contract into properly reportable and measurable work units. In support of this he should provide detailed
trade manpower histograms and planned progress curves confirming their interpretation of the men
required in each trade to execute the work in accordance with the schedule.
The actual progress achieved and the actual manpower used is plotted against the planned progress and
manpower. Thus the subcontractor's progess and resources can be easily monitored and trended.
5.8 Detailed/Critical Activity Schedules
For critical or complex activities detailed/critical schedules may be prepared.
Examples are:
- Lining, drying out and installation of reactor internals.
- Rigging/Heavy lift schedules. A schedule of all heavy/high lifts in excess of an agreed parameter such as
10T or 20m to coordinate and maximize heavy and expensive crane usage and to ensure that the right
crane is available and that it can get to the field and into position and away with minimum interruption to
other facilities. Such a schedule requires the support of a specialist rigging study for critical lifts.
- Column/vessels dressing schedule. A schedule setting out the requirements, timing, duration and labor
for column dressing at or of field before erection.
- Shipping and routing schedules. Schedules setting out the requirements, timing, duration and routes of
heavy equipment from manufacturer's yard to the field utilizing land (rail or truck) sea, inland waterway or
air transportation, the use of helicopters etc.
- Piping line erection schedule.
- Pipe line hydrotesting schedule. A schedule setting out the priorities, requirements, preparation and
routing of documentation, availability of test media and adequate pressurizing apparatus, for the
preparation, execution, post test and flushing of pipe lines.
- Electrical "power on" schedules. A schedule setting out the priorities for making alive the electrical
requirements of the Project to meet intermediate and final completion dates.
- Systems commissioning co-ordination schedules. A "Transition" schedule reconciling the area
completions trend to the priority requirements of process systems commissioning.
- "Recovery" schedules. Schedules setting out the use of premium time (e.g. shift and overtime) working
in specified areas in order to recover time lost. Such schedules take into account the availability of skilled
workers and supervision, advise the most suitable type of work for overtime (e.g., non destructive testing,
rework etc.) and analyse the cost implications.
- Equipment internals, trays and refractory lining.
- A complex computer hardware installation and software commissioning.
- Break-in/Tie-in chedules.
- Assembling, testing and commissioning schedules of package units such as compressors, refrigeration
units, furnaces etc.
- A power-up sequence of Electrical HT and LT unit boards, transformers and Motor Control Centers
(MCC's)
Most of the Detailed/Critical Schedules mentioned above may be covered by arrow diagrams which may
be summarized into hourly or halfday units by discipline and monitored daily by inspection and mark up.
This level of planning defines the work into further detail (Attachment 9), at this stage much more
information is required and available as follows:
- A preliminary index of drawings.
- Plot plans and general arrangements.
- A final equipment list by units.
- A requisition index.
- Purchase Order status report.
- Cost and Manhour reports.
- Expediting reports.
The Field Construction Planner develops individual barchart schedules for each process unit or
fabrication yard. The target starting and finishing date are those already established the Overall
Construction Schedule.
The overall summary barchart is revised and updated for historical purposes.
Each subcontractor's work is broken down into activity groups identified by interfaces with other
disciplines for start or completion.
6.5 Trade Discipline Spread Sheets
Discipline Spread Sheets are now prepared per process and/or fabrication area for the relevant
subcontractor trade disciplines.
It is important to summarize the total peak manpower called for in a process and/or fabrication area and to
compare it with the manpower saturation indicated by the application of one of the appropriate formulae.
From the spread sheets, which should be confirmed by the subcontractor, the scheduled manpower
histograms and progress curves are prepared for each process and/or fabrication area.
6.6 Scheduling and Afecting Parameters
The following parameters will have to be taken into account by the Field Construction Planner during the
development of the Detailed Construction Schedule and are subject to follow up during the construction
perid to assure adherence to the schedule.
- Drawings: the scheduled dates of receipt in the field of complete and final certified drawings to make the
activity start on time and continue efficiency and uninterrupted completion.
- Equipment: the scheduled dates of receipt in the field of all equipment items, inspected and passed for
erection, in order to sustain the progress of activity as defined.
- Materials: the scheduled dates of receipt in the field of all subcontractor purchased and free issue bulk
materials, inspected and passed for installation, in sufficient quantity to enable an efective start and
uninterrupted progress to completion of the activity.
- Subcontractor labor: the scheduled availability at field of the necessary subcontractor trade labor,
supervision and management support to ensure an efective start and build up to maintain uninterrupted
progress to completion of the activity within the time scale required.
- Cranes and construction tools: the assessment and scheduled availability by the responsible
subcontractor of all "Construction tools and equipment" to ensure an efective start and uninterrupted
progress to completion of the activity.
- Shipping: the necessary advance booking and confirmation of availability, departure and arrival times of
all seagoing/water borne transportation, all Rail/Road/Air freight carriers, etc., to support the activity
starts, duration and completions to the schedule.
- Vacations and holidays: a proper assessment of the efect of national and local vacations and public
holidays, personnel vacations entitlement and preference to ensure an adequate and sufficient labour
force at all times to maintain the schedule.
In addition the Bidders are to be advised that regular progress meetings will be held, attended by planners
and management from Company and the subcontractor to review progress, confirm or change priorities
and explore any action necessary to maintain the schedule and a continuous positive working
relationship.
7.4 Subcontractor Bid
The Subcontractor's bid must include a written and illustrated confirmation of ability to meet schedule. The
Subcontractor's bid should include a properly detailed manpower histogram defining each trade discipline
to be put into the field to execute the work. The histogram should not show any excessive peaks and it
should generate an even and satisfactory progress curve that complies reasonably with the planner's own
knowledge and assessment of the job. For early subcontracts the bid schedule may be reviewed by the
Home Office planner who generates the key date schedules. Once, however, the construction field force
has been established it should be reviewed by the resident field planner, who should also be present at
any preaward meetings.
The schedule review takes place at Field and should be assessed by the Field Planner, subject to any
input changes (drawings or material deliveries) as advised by the Home Office planner, that may alter
start and finish dates. Since the changes will afect the subcontractor's detailed schedule, which will
become a contractual document, this review is important and must be conscientiously executed between
tender invitation and contract award.
7.5 Preaward Meeting and Contract Award
This can take another two to four weeks. From Contract Award to start in the field usually requires two to
three weeks and sometimes four to six weeks or more when material supply is involved.
7.6 Contract Award and Subcontractor Contractual Detail Schedule
It will have been clearly stated in the invitation to bid documents that the subcontractors obligations are to
provide an adequate detailed schedule prepared, continuously and properly progressed and updated, by
trained planning personnel in their field office. The schedule must be proposed in the manner and level of
detail specified by Company and submitted for approval no later than four weeks after establishment of
the field office or commencement of work in the field whichever is later. The Field Construction Planner,
through the Project Construction Manager, will review the schedule and reject/approve within 10 working
days. In any event a contractually binding schedule must be in force within eight weeks of start of work
even if it has to be prepared by Company planning staf and the cost backcharged to the subcontractor.
Company approval/acceptance having been given the subcontractor's detailed schedule becomes a
contractual document.
Before the Subcontractor begins the work, the Field Construction Planner in coordination with the Cost
Engineer will prepare for each subcontract a planned cost progress curve in which the value of the work is
plotted against the time as a percentage of the original budget.
Free supply material and certified for construction drawings should be in the subcontractors field office a
minimum of four weeks before the work can commence.
7.7 Records Maintained by the Field Planner
At the closeout of every subcontract, each field construction department completes its section of a
standard questionaire and has the opportunity to comment upon the subcontractor performance in so far
as it refers to his department. In order to make an efective contribution to this section the Planner should
keep records of schedule problems which will be taken into account in recommending the subcontractor
for future work.
The Planner keeps a close watch on any schedule activity, the eventual timing of which may lead to a
claim by a subcontractor. By maintaining records at the time and keeping a diary of the subcontractor's
build up of manpower and general performance, a planner's work can go a long way towards refuting
claims or substantially reducing them. Claims should be resolved as they arise.
basis. Monthly cut-ofs will be made for erection contractor billing reasons. Otherwise, complete Form of
Tender operations on the mainframe remain the same.
8.2.2 Manual Methods
Generally, these methods apply to lump sum subcontractors. If the progress of unit rate subcontracts is to
be measured manually, the manual operation will duplicate one of the computer methods in 8.2.1.
For lump sum subcontracts, a good physical breakdown of the work encompassed by the subcontract is
to be made with the full agreement of the subcontractor. In doing this, Company estimated quantities
should be used as a check on the estimated quantities of the subcontractor.
All operations/quantities are to be weighted and later activities are always to be weighted heavily so that
the subcontractor has a strong incentive to complete his work and so he is not overpaid. For instance,
large bore piping may be subdivided into erection, weld-out, and testing/finalization. Testing/finalization
may only represent 10% of the total value of the large bore piping. However, it should be weighted as
heavily as possible. Of course, the subcontractor will resist but pressure must be brought to bear to
achieve 15-20% as the weight for the final operation. A similar approach to be used for other disciplines.
A progress/quantity work sheet is to be made and agreed which will be used as the key document for
each subcontract. The monthly issue of this work sheet can be utilized as back-up for the subcontractor's
invoice.
Subcontractor manhours are also to be correlated and trended.
8.3 Trending and Forecast
Trending is the technique of realistically assessing the development of a situation over a specific period
and extrapolating the project results into a forecast.
This is primarily done by comparing the scope of the achieved progress curve with the shape of the
scheduled curve and the increase/decrease of the deviation over two or more progress reports.
By also taking into account the productivity trend and the expected completion, a forecast can be made.
Also forecast is the increase in final cost and manhours indicated.
8.4 Schedule Trends
This trend control is developed as the subcontractors progress value is compared against the required
schedule value every month throughout the Project at agreed monthly cut of dates.
The progress values are plotted on a curve and the following information derived:
- Progress achieved in the period against the scheduled achievement.
- Progress achieved to date against the schedule.
- The percentage, in advance or short of target.
- The time, e.g., weeks/months ahead/behind schedule.
In addition, by comparison with the previous periods returns, the Field Construction Planner can also
assess whether the progress being made is gaining on, holding or falling behind schedule.
Listed below are the standard forms currently produced and/or in use by the Company home- and/or the
field office planning department.
REF No. DATED DESCRIPTION
BN-C 30
Jul. 82
BN-C 33
Nov. 84
BN-UC 1/A
Feb. 90
BN-UC 25
Apr. 90
BN-UC 28
Feb. 90
BN-UC 29
Feb. 90
BN-UC 30/A
Jul. 86
BN-UC 40-1/8
Jul. 86
BN-UC 51
Oct. 81
Record of Drawings
BN-UC 70
Nov. 82
BN-UE 137
Jul. 84
BN-US 600
Nov. 85
BN-US 600-1
BN-US 601-1/2
BN-US 603
Aug. 85
BN-US 606
Apr. 86
BN-US 607
Apr. 86
BN-US 608-1
May 84
Manpower Histogram
BN-US 609
BN-US 610
BN-US 610-1/2/3
BN-US 611
BN-US 612
BN-US 613
BN-US 614
9th Mar. 88
Physical Progress
BN-US 614-3
9th Mar. 88
BN-UP 23
Feb. 85
Purchasing Status
BN-UP 100
Jan. 89
BN-UP 102-105
Apr. 80
Expediting Report
BN-UP 200-204
11. Communication
A vital and too often neglected factor is communication. It is imperative that the Field Construction
Planner is involved in all information exchange and decision making related to the development of the
detailed construction planning and the performance of work against the agreed schedule.
This involvement includes but is not limited to:
- Receipt and review of contractual and/or client requirements.
- Receipt and review of data that quantify the scope of work or revisions to the scope of work.
- Participation in the establishment of progress report procedures.
- Attending regularly scheduled progress meetings.
- Participation in the establishment of schedule and reporting requirements that become part of requests
for bids to subcontractors.
- Participation in the analysis of subcontractor bids and subsequent pre-award discussions.
- Receipt of all schedules and revisions produced by the home-office.
- Receipt of up-to-date engineering and procurement information.
- Receipt of inspection and expediting reports.
- Regular coordination with the home-office planning group.
The best schedulers keep in mind that:
- Their fundamental purpose is to communicate.
- Technical excellence will not compensate for non-communicative schedules.
- They cannot work in a vacuum, but must make themselves part of the daily give-and-take of the project.
- They must avoid poor layouts and poor formats.
- The activities they establish must be quantifiable.
- Simplicity is essential.
- Their schedule is not the end product.
The successful completion of the project is the end product.
- They are basically coordinators and ensure that everyone is kept constantly aware of "actual" versus
"scheduled".
12. Conclusion
Successful planning and scheduling operations are essential to successful project performance. Their
success is directly related to the degree that specific realistic objectives, with efficient control systems are
accepted and utilized at all working levels.
2.
3.
4.
5.
6.
7.
8.
9.
10
11.
12.
13.
Introduction
2.
Project Definition
3.
Planning Definitions
4.
Responsibilities
5.
6.
7.
8.
9.
10.
11.
Communication
12.
Conclusion
13.
Attachment summary
1. Introduction
This Procedure describes the methods and procedures in use in the Company Construction Organization
to plan and schedule (in barchart form) the Construction phase of a project and draws together descriptions of the systems and procedures used for analyzing and recording outstanding work, outstanding
time, productivity analysis and projections.
It is evident that construction planning is directly linked to the home office planning and scheduling of
engineering and procurement. This document therefore includes a brief description of methods,
procedures and planning documents produced by the Home Office planning department.
2. Project Definition
The major parameters defining project planning and scheduling are scope, cost, time, resource, material
and productivity.
The above key parameters are related in a logically linked manner towards the final objective, the
completion of the construction of a process plant against the agreed schedule.
3. Planning Definitions
In describing planning, Company uses the following definitions.
- PLANNING - Planning is the formulation of the logic and execution strategy of the work to be done.
- SCHEDULING - Scheduling is the proper assignment of resources to complete the work within the
contract time scale and in the most efficient manner.
- MONITORING - Monitoring is the continuous assessment of the work completed in every discipline and
every stage until completion.
- PRODUCTIVITY - Productivity is the manhours "earned" for work done against manhours expended, i.e.
the value of the pay items.
- PROGRESS - Progress is the measured value of work done in agreed units of execution against
contractually laid down pay items.
- TRENDING - Trending is the analysis of progress, productivity and cash flow in order to forecast any
adverse factors and to take full advantage of resources, cost and progress savings.
- CONTROLLING - Controlling is the continuous assessment of the most efective use of money, material
and resources to maintain a smooth progression towards completion.
- CORRECTIVE ACTION - Corrective action is the analysis and implementation of the most efective
action to recover or reverse any adverse trend of progress, productivity or cash flow.
- REPORTING - Reporting is a standardized procedure to record progress and productivity which are
continuously measured in order to assess the viability of scheduled completion dates throughout the life of
the Project.
4. Responsibilities
4.1 Project Construction Manager
It is the responsibility of the Project Construction Manager to ensure that subcontractor performance
adheres to the project planning and scheduling objectives.
4.2 Field Construction Planner
The Field Construction Planner is responsible for planning, scheduling, monitoring, trending and
controlling practices throughout the Construction and Commissioning phases of a process plant he
reports, through the field organization structure, to the Project Construction Manager.
The Field Planning Department is responsible for reporting all field progress in sufficient detail to the
Home Office project planner so that he can monitor and update the project schedule.
The Construction Planner will:
- Continue to develop and keep updated the schedules that are started in the Home Office in order to
monitor trend and control the field activities.
- Ensure that all subcontractor-produced schedules are passed to him for assessment, comment,
subcontractor coordination and approval.
- Ensure that all subcontractor schedules are adequately produced and in sufficient detail to permit proper
monitoring, trending and control.
- Ensure that all subcontractor manhours and physical progress returns are made at the right time and
frequency and in sufficient detail to maximize monitoring, trending and control.
- Assess subcontractor progress and productivity and attend all meetings at which progress related
matters are discussed.
- Prepare Company specialist/subcontractor work lists, discuss and review with all superintendents and
personnel responsible to ensure compliance and highlight problems.
- Walk the field daily or with whatever freqency is necessary to maintain a practical fluent awareness of
the field situation at all times.
- Develop with field management and subcontractors any detail schedules, records or other information
that may be identified when the need arises.
- By continuous resource to expediting and other reports, maintain a constant awareness of the actual
and "due at field" dates of equipment, certified drawings, vendor supply and erect materials prefabricated
spools and any significant bulk or specific E & K 'items'.
- Update all progress and manpower documentation, report the actual and overall gain of every
subcontractor activity against the schedule requirements, summarize work completed, highlight problems
and assess period (in weeks) ahead of or behind schedules. This is done on a monthly basis or more
frequently as required.
Efective project control by the Planner results in the coordination of the above elements into specific
recommendations to the Project Construction Manager, who is responsible for the direction of the
construction of a Project and of the implementation of corrective action.
4.3 Home Office - Field Transition
A senior construction representative should participate sufficiently in the Home Office in developing the
construction part of the Project Detail Schedule. He will interact with the project manager and the project
planning engineer to develop the execution plan and Key Date Schedule for subcontractors. This
participation should be of sufficient duration to efectively accomplish, among other things, the following:
- Familiarize himself with the schedule for certified drawings to the field, deliveries of equipment, and
materials including Key deliveries which are centers of gravity of bulk materials.
- Review the construction part of the Project Schedule and refine it as necessary.
- Establish start dates for the various construction disciplines.
- Establish completion dates for the various construction disciplines based upon contractual
delivery/commissioning requirements and thus establish the rate of progress required within the schedule.
- Discuss, agree and develop the planning documents and narrative format required by the Project
Manager and Construction Manager for the Construction Monthly Report.
- Liaise with Cost Engineering on the parameters for weighted physical progress of all field engineering
disciplines and the selection of pay items to monitor and control the progress in the simplest and most
efective way for Subcontractor Administration, Project Management and Client relations.
- Develop the basis of the Field Planning records and files for the subcontractors.
- Discuss, agree and develop with the Project Subcontracts Manager the planning and reporting required
contractually of each subcontractor discipline to optimize subcontract progress monitoring, trending and
control.
- Attend and contribute to any construction and/or planning related meetings that may develop or be called
during his assignment.
- Investigate and develop as far as is possible the transition in the field from area concept planning to
commissioning systems planning and develop a "systems commissioning path".
- Closely study and review all the "supply and erect" work schedules and satisfy himself that the continued
supply of materials and certified drawings will systain the field erection progress requirements.
- Ensure that all documentation generated at the field is prepared on the standard format and in
accordance with the relevant Planning Procedures.
in Engineering, Procurement and Construction to execute the work in a timely manner, produced
respectively by the Home Office planning group and the Field Construction Planner.
The last column indicates the support information and reports by which the job progress and productivity
are controlled.
The network planning as indicated is usually a barchart planning but this will not change the flowchart
logic.
5.2 Project Summary Schedule
This schedule (Attachment 2) is prepared by the home office planning team organization and indicates the
key events and main activity durations to allow for progress control of engineering and procurement.
Only sufficient construction activities are included in the first issues of the Project Summary Schedule to
confirm the mechanical completion which is an early one bar line explanatory schedule leading to a
project detail schedule.
5.3 Project Detail Schedule (Unit/Area/Module)
This schedule (Attachment 3) is prepared by the home office planning team organization and shows
construction activities in greater detail as plotplans and flow diagrams are certified and material deliveries
are confirmed against formal orders. This schedule is a two bar line schedule capable of supporting more
detail.
5.4 Key Date Schedule for Subcontract Package
This schedule (Attachment 4) is an important contractual document to both Company and the
subcontractor. It is based on the project summary schedule and prepared by the Home Office Planning
organization. This barchart type schedule defines significant start and finish key-dates or milestones of
indentified activities to be carried out by each subcontractor, and it is issued with the invitation to bid. With
his bid the subcontractor must include his manpower allocation and histogram to support the key
completion dates required by contract.
5.5 Construction Detail Schedules
These schedules are prepared by the Field Construction Planner in accordance with the specific project
requirements. Details on developing, monitoring and updating the schedules are defined elsewhere in this
standard procedure.
5.6 Planned Manpower Histograms and Progress Curves
The construction schedule having being set, the necessary progress to be maintained in every discipline
and the labor resources required is calculated.
From this information, based upon the definitive estimate of the job, the subcontract manpower
histograms and the planned progress curves are drawn up .
A manpower histogram for any activity shows the buildup, plateau and decline of the activity work force
necessary to complete that activity within specified time parameters.
By proper definition of the scope of the activity the manhours are estimated, taking into account a value
for sickness, holiday and weather, and the local rules for the working week.
The schedule defines the earliest and latest start and finish dates of the activity based primarily upon an
estimate of the duration and resources available.
5.7 Construction Sub-Contract Schedules
The Subcontractor is required to provide detailed construction schedules, within three or four weeks of
contract award, which are in accordance with the "keydate" schedules supplied by Company.
The Subcontractor must prepare, for Company's approval, his detailed schedule breaking down their
contract into properly reportable and measurable work units. In support of this he should provide detailed
trade manpower histograms and planned progress curves confirming their interpretation of the men
required in each trade to execute the work in accordance with the schedule.
The actual progress achieved and the actual manpower used is plotted against the planned progress and
manpower. Thus the subcontractor's progess and resources can be easily monitored and trended.
5.8 Detailed/Critical Activity Schedules
For critical or complex activities detailed/critical schedules may be prepared.
Examples are:
- Lining, drying out and installation of reactor internals.
- Rigging/Heavy lift schedules. A schedule of all heavy/high lifts in excess of an agreed parameter such as
10T or 20m to coordinate and maximize heavy and expensive crane usage and to ensure that the right
crane is available and that it can get to the field and into position and away with minimum interruption to
other facilities. Such a schedule requires the support of a specialist rigging study for critical lifts.
- Column/vessels dressing schedule. A schedule setting out the requirements, timing, duration and labor
for column dressing at or of field before erection.
- Shipping and routing schedules. Schedules setting out the requirements, timing, duration and routes of
heavy equipment from manufacturer's yard to the field utilizing land (rail or truck) sea, inland waterway or
air transportation, the use of helicopters etc.
- Piping line erection schedule.
- Pipe line hydrotesting schedule. A schedule setting out the priorities, requirements, preparation and
routing of documentation, availability of test media and adequate pressurizing apparatus, for the
preparation, execution, post test and flushing of pipe lines.
- Electrical "power on" schedules. A schedule setting out the priorities for making alive the electrical
requirements of the Project to meet intermediate and final completion dates.
- Systems commissioning co-ordination schedules. A "Transition" schedule reconciling the area
completions trend to the priority requirements of process systems commissioning.
- "Recovery" schedules. Schedules setting out the use of premium time (e.g. shift and overtime) working
in specified areas in order to recover time lost. Such schedules take into account the availability of skilled
workers and supervision, advise the most suitable type of work for overtime (e.g., non destructive testing,
rework etc.) and analyse the cost implications.
- Equipment internals, trays and refractory lining.
The manhours required per stem account are defined in the Budget estimate or the Subcontractor's latest
accepted assessment.
The form used to calculate the histograms and progress curves is the manpower allocation spread sheet
(Attachment 8).
The histogram is first prepared using the duration dictated by earliest start - earliest finish. If the build up
is too steep or the plateau peaky or too high, the histogram is smoothed out and the duration prolonged
by consuming float (if any) to arrive at a realistic target manloading for the activity.
This histogram allocates men per month and care must be taken in considering four and five week months
and the contract cut of dates for reporting each period.
In certain disciplines such as piping erection, consideration must also be given to the crew unit as
practised in the construction locality (of 4, 6 or 8 men). This histogram may be drawn on 'crews'.
Once the manpower has been satisfactorily spread over the schedule period, the monthly and
accumulated progress can be calculated. The monthly period progress must be examined for
achievability.
From the planned manpower histogram, the planned progress curve is developed, this is a graph
indicating the required rate of progress to complete the work to 100% within specified parameters.
A sample histogram and progress curve is shown in Attachment 7. Note the sudden drop in progress at
one point, this is due to an increase in scope resulting in an immediate "drop" in progress, indicating an
immediate reassessment and reevaluation of work to be accomplished, particularly with regard to the
efect upon the original scheduled completion date.
6.4 Development of the Detailed Construction Schedule
This level of planning defines the work into further detail (Attachment 9), at this stage much more
information is required and available as follows:
- A preliminary index of drawings.
- Plot plans and general arrangements.
- A final equipment list by units.
- A requisition index.
- Purchase Order status report.
- Cost and Manhour reports.
- Expediting reports.
The Field Construction Planner develops individual barchart schedules for each process unit or
fabrication yard. The target starting and finishing date are those already established the Overall
Construction Schedule.
The overall summary barchart is revised and updated for historical purposes.
Each subcontractor's work is broken down into activity groups identified by interfaces with other
disciplines for start or completion.
- The manhours spent against the manhours "earned", i.e. the value of the pay items. This is the
Productivity.
- The work executed against the cost invoiced.
The above time-cost control factors are applied for comparing the actual progress and manhours
expenditure with the planned progress and manhours.
The Field Cost Engineer must plot the value of pay-items actually installed into the planned cost progress
curve, so that a trending of progress achieved (i.e. payments due to the Subcontractor) against the
planned progress is possible.
Productivity, i.e. efficiency can be measured by the ratio between Budget Manhours estimated to execute
the value of the work done and the expended subcontract manhours consumed by the various trade
disciplines.
The Budget in this instance means the original plus any applicable and approved change order or extra
work authorization. The Field Planner must plot the actual manhour expenditure as reported by the
subcontractor into the planned cummulative manhour curve.
Poor productivity in the field can lead to claims, which are time consuming and detract from subcontractor
progress. In the extreme a subcontractor may lose so much money that he can no longer aford to
continue the work.
8.2 Progress Measurement
Construction progress is always to be measured by more than one parameter if possible. The three
parameters generally available to Site Construction Management for this purpose are physical units,
money expended and manhours consumed. All of those are compared with budgets or forecasts,
depending on job status.
Of the three parameters, it is absolutely required that physical units be used as one of the progress
yardsticks. The determining factor in reporting will generally be physical units, but the other
determinations provide very useful information on correlating expenditures and subcontractor productivity
with physical progress.
A real element of control is attained by comparing actual progress with planned achievements for each
subcontract and analyzing the developing trends in conjunction with each subcontractor's planned/actual
manpower levels.
For analyzing and measuring subcontractor progress, Company has computerized methods and a manual
method.
8.2.1 Computer Methods
These methods are used for unit rate subcontracts.
a. After award of subcontract, in all cases of unit rate subcontracts, the initial Form of Tender is set up on
the Home Office mainframe. This will have estimated quantities (entered by Project Control Department)
per pay item. All unit rates will be listed and pay items priced.
b. For purposes of identifying the total value of each unit rate subcontract, a contingency element will be
added to the total of the Form of Tender. This element represents normal growth of any subcontract plus
inclusions, if necessary, for quantification contingencies or other special contingencies. The added
element is to be input after consultation with the Estimator involved and the Engineering Discipline
Manager. The Project Control Manager should approve it. This number is to be kept strictly confidential
relative to the applicable subcontractor.
c. On a monthly basis, Company and subcontractor personnel agree on quantities installed per pay item
per construction document (such as piping iso). Using the site computer as a link to the mainframe, these
achieved quantities are input and the subcontract reporting system reports monthly completion achieved
and cumulative completion.
d. Since this method achieves the requirements of physical measurement (automatically weighted by pay
item bid values), no further progress measurement on unit rate subcontracts is necessary. However,
subcontractor manhours are to be assessed and trended.
e. Properly used, the monthly printouts can be used by the subcontractor as invoice back-up.
f. On a monthly basis the mainframe Form of Tender will be rerun to update the Form of Tender in order to
keep the construction site regularly informed about scope and total Purchase Order value developments,
as well as to enable timely issue of purchase order amendments.
g. As an alternate to the above method, Company may have the subcontractor price each document (such
as iso or material sheet) using the applicable unit rates. This will provide an overall value per document.
Each document will be input into the field computer and field input of progress will be done a a weekly
basis. Monthly cut-ofs will be made for erection contractor billing reasons. Otherwise, complete Form of
Tender operations on the mainframe remain the same.
8.2.2 Manual Methods
Generally, these methods apply to lump sum subcontractors. If the progress of unit rate subcontracts is to
be measured manually, the manual operation will duplicate one of the computer methods in 8.2.1.
For lump sum subcontracts, a good physical breakdown of the work encompassed by the subcontract is
to be made with the full agreement of the subcontractor. In doing this, Company estimated quantities
should be used as a check on the estimated quantities of the subcontractor.
All operations/quantities are to be weighted and later activities are always to be weighted heavily so that
the subcontractor has a strong incentive to complete his work and so he is not overpaid. For instance,
large bore piping may be subdivided into erection, weld-out, and testing/finalization. Testing/finalization
may only represent 10% of the total value of the large bore piping. However, it should be weighted as
heavily as possible. Of course, the subcontractor will resist but pressure must be brought to bear to
achieve 15-20% as the weight for the final operation. A similar approach to be used for other disciplines.
A progress/quantity work sheet is to be made and agreed which will be used as the key document for
each subcontract. The monthly issue of this work sheet can be utilized as back-up for the subcontractor's
invoice.
Subcontractor manhours are also to be correlated and trended.
8.3 Trending and Forecast
Trending is the technique of realistically assessing the development of a situation over a specific period
and extrapolating the project results into a forecast.
This is primarily done by comparing the scope of the achieved progress curve with the shape of the
scheduled curve and the increase/decrease of the deviation over two or more progress reports.
By also taking into account the productivity trend and the expected completion, a forecast can be made.
Also forecast is the increase in final cost and manhours indicated.
8.4 Schedule Trends
This trend control is developed as the subcontractors progress value is compared against the required
schedule value every month throughout the Project at agreed monthly cut of dates.
The progress values are plotted on a curve and the following information derived:
- Progress achieved in the period against the scheduled achievement.
- Progress achieved to date against the schedule.
- The percentage, in advance or short of target.
- The time, e.g., weeks/months ahead/behind schedule.
In addition, by comparison with the previous periods returns, the Field Construction Planner can also
assess whether the progress being made is gaining on, holding or falling behind schedule.
8.5 Cost Trends
The Cost Engineer in the field in conjunction with the Planner compares the value of the work done
against the invoices and the cost of the manhours the subcontractor has used. Thus there are two
assessments done to enable a reliable forecast to be made of predicted final manhours, cost and
completion dates.
8.6 Material Control and Planning
Material Control is closely related to the field construction planning, this is described in the Field
Construction Manual Section VII.
8.7 The Development of Corrective Measures and Implementation
Corrective measures can be made by:
- Altering the work logic.
- Increasing efficiency.
- Changing Construction Methods.
- Working overtime.
- Working shifts.
Each of the above should be assessed for accuracy, viability and cost. They should also be assessed for
the degree of confidence in achieving the indicated improvement.
Once the selection has been discussed and accepted it has to be implemented and carefully monitored
and controlled to meet the target set.
Jul. 82
BN-C 33
Nov. 84
BN-UC 1/A
Feb. 90
BN-UC 25
Apr. 90
BN-UC 28
Feb. 90
BN-UC 29
Feb. 90
BN-UC 30/A
Jul. 86
BN-UC 40-1/8
Jul. 86
BN-UC 51
Oct. 81
Record of Drawings
BN-UC 70
Nov. 82
BN-UE 137
Jul. 84
BN-US 600
Nov. 85
BN-US 600-1
BN-US 601-1/2
BN-US 603
Aug. 85
BN-US 606
Apr. 86
BN-US 607
Apr. 86
BN-US 608-1
May 84
Manpower Histogram
BN-US 609
BN-US 610
BN-US 610-1/2/3
BN-US 611
BN-US 612
BN-US 613
BN-US 614
9th Mar. 88
Physical Progress
BN-US 614-3
9th Mar. 88
BN-UP 23
Feb. 85
Purchasing Status
BN-UP 100
Jan. 89
BN-UP 102-105
Apr. 80
Expediting Report
BN-UP 200-204
11. Communication
A vital and too often neglected factor is communication. It is imperative that the Field Construction
Planner is involved in all information exchange and decision making related to the development of the
detailed construction planning and the performance of work against the agreed schedule.
This involvement includes but is not limited to:
- Receipt and review of contractual and/or client requirements.
- Receipt and review of data that quantify the scope of work or revisions to the scope of work.
- Participation in the establishment of progress report procedures.
- Attending regularly scheduled progress meetings.
- Participation in the establishment of schedule and reporting requirements that become part of requests
for bids to subcontractors.
- Participation in the analysis of subcontractor bids and subsequent pre-award discussions.
- Receipt of all schedules and revisions produced by the home-office.
- Receipt of up-to-date engineering and procurement information.
- Receipt of inspection and expediting reports.
- Regular coordination with the home-office planning group.
The best schedulers keep in mind that:
- Their fundamental purpose is to communicate.
- Technical excellence will not compensate for non-communicative schedules.
- They cannot work in a vacuum, but must make themselves part of the daily give-and-take of the project.
12. Conclusion
Successful planning and scheduling operations are essential to successful project performance. Their
success is directly related to the degree that specific realistic objectives, with efficient control systems are
accepted and utilized at all working levels.
2.
3.
4.
5.
6.
7.
8.
9.
10
11.
12.
13.
1.
Introduction
2.
3.
Counting Procedure
1. Introduction
1.1 The purpose of the Equipment Piece Counting procedure is to define the various methods of counting
the number of equipment pieces in a processing plant (including ofsite areas such as utility areas, tank
farms, etc.)
1.2 The number of equipment pieces in a processing plant is used as a parameter for checking and
comparing detailed estimates of Home Office manhours.
1.3 There are three types of Equipment Piece Counts being used. These are:
a. Unique Pieces of Equipment
b. Actual Pieces of Equipment
c. Equivalent Pieces of Equipment
1.4 For clarification of the various cost codes used in this procedure see The Standard Company Project
Cost Code.
3. Counting Procedure
3.1 The items of equipment listed under 3.5 are not to be taken into consideration in evaluating any of the
three specified types of equipment piece counts.
3.2 Unique Pieces of Equipment
For this type of equipment piece count, the number of the required diferent equipment specifications
govern. For example:
a specific pump specification includes 3 pumps of which each one delivers 50% of the required
capacity.
a specific tubular heat exchanger specification includes 4 bundles, 2 in series and 2 parallel.
Items of Equipment
A&M
All tower and vessel internals such as, but not limited to, trays,
demisters, spray nozzles, packing, heating coils, foam chambers, etc.
(see also C for small MM and small MS items)
DS/GY
Hoists
Simple portable and mobile fire fighting equipment (see 3.6.1 for
sophisticated fire fighting systems)
GA
GB
GF
Inline filters
GK
Silencers
Cost Code
Items of Equipment
GS
GW
GX
Shop tools
HL
Inline burners
Concrete structures
Tank coils
All unmentioned equipment which can be considered as being an
integral part of another major piece of equipment
Note: Bulk materials, such as piping, valves, fittings, structural steel, cable, lighting fixtures, control and
safety valves, transmitters, insulation, etc., are not considered as equipment pieces and shall therefore,
never be included in any equipment piece count.
3.6 Applicable Complexity Factors for the Equivalent Piece Count
3.6.1 The following items of equipment are subject to the application of a complexity factor.
The listed complexity factors and complexity factor ranges have to be considered as a guide.
To establish the correct complexity factor, it is a requirement to evaluate each item for circumstances or
conditions which may result in complicated foundations and structures, excessive piping, etc. requiring
more than average Design Engineering manhours. It is, of course, also possible that the circumstances or
conditions are more favorable and therefore less than average Design Engineering manhours will be
required.
Cost
Code
Item of Equipment
Applicable
Complexity
Factor
AR
1-2
1-3
Type BK
Type BA
MR
PC, PR,
1-3
Fire Protection
0-2
Type FB
Reactors
1-3
1-2
Complexity
Factor Range
0.5 - 2
0.5
1-3
Cost
Code
Item of Equipment
Applicable
Complexity
Factor
Complexity
Factor Range
PB
GA
GB
0.5 - 1
Normal types
0.5
Blending Systems
Loading hose
0 - 10
0
Loading arm
One truck loading station
0.2 - 0.3
1
GF
1-3
10
Drying Systems
1-3
Filters
0-2
Cost
Code
Item of Equipment
Applicable
Complexity
Factor
LARGE (dewaxing)
Plate type
Precoat type
GH
GJ
GK
GL
GM
Complexity
Factor Range
0.5 - 1
1
Gas Generators
1 - 10
10
Cyclones
0-1
1 (per set)
Coalescer
Laboratory Equipment
0-1
1 (for all)
Mobile Equipment
0-1
a) if no design is required
1 (for all)
Cost
Code
Item of Equipment
Applicable
Complexity
Factor
GN
Safety Equipment
1 (for all)
Complexity
Factor Range
GS
GT
GU
GV
Refrigeration Systems
0-4
Solids Handling
0-1
0.5
Rotary screen
Cooling Towers
1-3
Multiple cell
Water Treatment
1-5
Deaerators, desuperheaters
1-5
Cost
Code
Item of Equipment
Applicable
Complexity
Factor
Biotreater/clarifier
Large CPI system
GW
GZ
Complexity
Factor Range
1-2
5
Weighing Devices
1-2
1(per item)
Packaged Units
1-3
TM
2-5
3-5
Vessel Heaters
0-1
1 (per item)
For equipment used in fertilizer plants the following complexity factors shall be used.
Cost Code
Item of Equipment
Applicable
Complexity
Factor
GF
GF
GD
HS
GK
3 (see Note 1)
GK
3 (see Note 1)
GK
3 (see Note 1)
GK
GA
GY
MR
Isothermal Reactor
3 or 5 (see
Note 2)
MS
GG
GG
Raymond Mill
MB
Bin (Rock)
GF
GA
GS
TSP Den
GK
GY
GS
Drag Conveyor
GK
GY
GS
GK
HS
3.6.2 The following items of equipment have to be counted as one piece and are not subject to the
application of a complexity factor.
Cost Code
Item of Equipment
AS
AF
GC
Centrifuges
GE
Evaporators
GG
GJ
Dust collectors, bag filters incl. ducts, cyclones, etc., pneumatic conveyors
GP
GQ
GY
HC
HD
MS
MF
MT
Storage tanks
MP
Spheres
MB
PP
PD
PV
TT
TP
TL
TA
TY
Note: Tower and drums containing mote than one equipment item, in one
shell with internal heads, are to be counted as one equipment piece (e.g.
Crude Unit LGO/HGO strippers).
Cooling Tower
Compressor
includes compressor, driver, lube oil and seal oil facilities, filters,
silencers.
Heater/Boiler
Water Treating
CPI/Waste
Treatment
Purpose
2.
General
3.
Responsibility
4.
Procedure
5.
Flowchart
6.
References
1. Purpose
This procedure describes the format, method, preparation and control of engineering calculations.
2. General
This procedure sets out the practice to be followed for the preparation of calculations and covers those
calculations involved in the safety and integrity of the plant and those calculation where failure would
result only in local inconvenience i.e. calculations not involving the safety and integrity of the plant. The
Company policy on safety in design is set out in the procedure reference 6.1 which is considered to be
part of this procedure. This procedure ensures that consistent, up-to-date, standards of calculation
preparation, checking and approval are maintained, which adds to the quality of all calculations produced
and shall apply to all projects.
3. Responsibility
3.1 The Manager of Engineering has the overall responsibility to ensure that qualified Group Managers,
Engineering and Designers, along with appropriate means, are available.
3.2 The Group Managers/Section Leaders are responsible for setting-up and maintaining standardized
methods of calculations, reference standards and authorization of computer programs (ref. 6.4).
3.3 The Lead Specialist Engineer/Lead Designer on a project are responsible for the preparation and
control of engineering calcula tions.
3.4 The Engineers and Designers assigned to a project are responsible for preparing the original
calculations and their accuracy.
4. Procedure
4.1 Principles of Calculation Preparation
All calculations shall be prepared to a standard that would allow them to be submitted to an independent
checking authority.
If a checking authority is involved for the work then:
Any particular requirements of the checking authority shall be established prior to the start of the
calculations.
Calculations shall be clearly presented without ambiguity and each set or type of calculations shall be
indexed.
The design information upon which the calculations are based shall be clearly stated and any
assumptions or references used shall be clearly identified.
Notations used in the calculations shall be consistent and in accordance with the national regulations or
the notations in common use in the industry.
The setting out of calculations shall follow a consistent pattern.
The engineering approach to the calculations shall be clearly thought through before the calculations are
started.
The calculations shall be prepared such that in the event of illness or other absence another engineer or
designer could complete the work after a simple review of the calculation information.
The final calculation presentation shall be such that the calculations may be clearly understood without
further explanation at any time by Company personnel or a third party, e.g. in modification or additional
work.
Any revisions to the calculations after they have been checked/app roved shall be recorded as issue II or
III progressively together with the date of the change both individually on the sheets afected and
collectively on the cover and index sheets for manual calcula tions and on the cover sheet for computer
calculations. Any revised sheets shall be subjected to the full checking and approval sequence required
by this procedure for the particular category of the calculations concerned.
4.2 Format
4.2.1 Calculation Sheets
Manual calculations shall be prepared on the standard calculation work sheet "BN-U202"
An index of calculation sheet issues, (see below figures, 'Index of calculation sheet issues') shall be used
on sheet (see below figures 'First Formal Issue') with those calculations of a multi-sheet type where it is
anticipated that revisions and/or additions will take place thus avoiding the need to make a total issue of
all sheets for revised issues.
An cover sheet (form US778-01) shall be used on all calculations.
4.2.2 Identity of Calculations
The cover sheet of the calculations shall bear an identification number and shall show the title and the
subject of the calculation.
Identification of calculations shall be by the inclusion of a prefix "calc", the job number, an account letter
and a calculation number.
This applies to both manual and computer type calculations.
Account letters shall be as follows:
A
- Towers
- Buildings
CG
- Piping, General
CS
- Piping Stress/Supports
- Structures
- Electrical
- Fire Protection
- Special Equipment
- Instrumentation
- Insulation
- Painting
- Heat Exchangers
The calculation number shall take regard of the varying requirements of the groups. For instance, data
related to a tower shall be identified by its equipment number, electrical calculations can be a simple
numerical sequence whereas a structure would be related to a drawing number.
Computer Calculations
The preparation of the headings for calculations produced by computer shall follow the requirements as
set out for manual calculations.
The computer run results shall, where required, print out a diagram of the problem to be solved to replace
the calculation sketch that is provided for manual calculation. Referance points as node numbers used in
the calculation shall appear on the diagram print out.
The Engineer/Designer's name shall appear on the computer print out.
The program name/number/issue identity shall appear on the computer print out.
The input shall contain the allowable design materials, stresses or parameters taken from the project
design specification to provide equivalent information to the lead sheet requirements of manual
calculations.
The date of the computer run shall appear on the print-out.
The hard-copy print out shall be suitable for final print out at A4 size either by direct print-out or by
reduction where the number of characters per line dictates.Hard copy on two part paper may be used
where it is considered appropriate for use as additional copies to be issued to an authorizing authority.
Only programs which are authorized by the Group Manager and/or which can be substantiated to an
authorized authority shall be used. (Ref. 6.4) The hard copy shall be a complete record of the input and
the output.
Any manual calculations produced in association with the computer print-out for interpretation of the
results, etc., shall be prepared to the standard required for manual calculations as set out in this
procedure, and shall form a part of the computer calculation.
4.3 Category of Calculations
Calculations shall be considered to be in the following categories for all projects.
4.3.1 Calculations Involving the Safety and Integrity of the Plant
(denote "safety type")
Structural calculations
Civil calculations except site development cut and fill balances
Drainage calculations except sanitary sewers and sewers carrying rainwater only
Pressure vessel and exchangers calculations
Piping engineering calculations
Pipe support and pipe stress calculations
HVAC calculation for control rooms or other critical equipment.
Electrical calculation for:
4.3.2 Calculations not Involving the Safety and Integrity of the Plant(denotes "nonsafety type)
Drainage calculations for sanitary sewers and sewers carrying rainwater only
Civil calculations for site development cut and fill balances
HVAC calculations for offices, workshops and similar nonessential facilities
Electrical lighting
Instrument calculation for:
- Flow measurement (e.g. orifice plates)
- Control valve sizing
- Level measurement (diferential pressure cell range/elevation/suppression)
- Vortex shedding frequency (thermowells, analyzer probes)
- Instrumentation air and overall electrical power consumption
- Restriction orifice, dependent on application
- Cable routing and sizing/rating.
4.4 Safety Type Calculations
4.4.1 Checking of Calculations
General
The main points for checking of calculations shall include but not be limited to:
- Input
. Validity/completeness of reference data
. Applicable of reference codes
. Stipulation of assumption, default values
. Any other relevant information
- Method(s)
. Verification of correct formulae, correction factors
- Output
. Make sure that the results are accurate/realistic by means of applying an alternative method(s), using
"common sense", comparing results with past experience etc.
- Changes
. All changes after the formal issues are to be recorded and identified. (Ref 6.6).
. Execution to be carried out in due time to avoid adverse downstream consequences.
Manual Calculations
All manual calculation produced on a project shall be fully checked.
The checker shall carry out a complete theoretical and mathematical check of the calculations.
The check shall be carried out on a check copy of the calculations. Any corrections required by the
checker shall be marked on the check copy in such a manner that they will be clearly understood.
The checker shall be satisfied that the setting out of the calculations, the completion of the page heading,
the sheets numbering and the issue date is all in accordance with the requirements of this procedure.
The theoretical check shall include the design approach used to solve the problem including any design
assumption, the correctness of any formulas, the acceptance of their authority, and the correct
interpretation of any design references.
The mathematical check shall include a check on the derivation of the loadings, dimensions, stresses,
temperatures, liquids, materials, etc., which the designer has decided comprise the problem to be solved,
and a complete check on all arithmetic within the calculation.
The checker shall be satisfied that the design logic used will provide an economic solution to the problem
which is consistent with the safety requirements and practical considerations of construction, fabrication
and operation.
The checker shall check that the interpretation of the calculation results into design elements is correct
and logical and consistent with the safety requirements and practical considerations of fabrication,
construction and operation.
If during the course of checking the checker finds a mistake which requires a major revision to the
calculations, the checking shall stop and the calculations shall be returned to the engineer/designer for
correction. When the revised calculations have been prepared the checking process shall be
recommenced.
If the checking process has uncovered only minor mistakes the copy of the checked calculation shall be
returned to the engineer/ designer for corrections, after the whole document checking is completed.
After the checker is satisfied that all the calculation sheets have been corrected in accordance with the
check requirements, the issue block on the cover sheet will be completed in accordance with the
requirements of this procedure (see below figures 'First Formal Issue').
Computer Calculations
All calculations produced by computer shall be checked as follows:
The checker shall investigate the program selected by the engineer/designer and shall be satisfied that
the program is suitable for the calculations to be carried out.
The checker shall be satisfied that the print out provides all the information required by this procedure for
the setting out and content of computer calculations.
The theoretical check shall include the design assumptions and the derivation of the loadings,
dimensions, stresses, temperatures, liquids, materials, etc., which the originator has decided comprise the
problem to be solved.
The checker shall be satisfied that the design logic used will provide an economic solution to the problem
which is consistent with the safety requirements and practical considerations of construc tion, fabrication
and operation.
The checker shall pay particular attention to the correct interpretation of the sign convention for positive
and negative values, and clockwise and anti-clockwise rotations where appropriate.
The checker shall not be required to check the mathematical accuracy of the calculation content of the
output unless a result is found to be suspicious.
The checker shall check the interpretation by the originator of the computer output results and the
translation into design elements and ensure they are logical and consistent with the safety requirements
and practical considerations of fabrication, construction and operation.
If during the course of the checking the checker finds a mistake which requires a major revision to the
calculations, the checking shall stop and the calculations shall be returned to the originator for revision.
When the revised calculations have been prepared the checking process shall be recommenced.
After the checker is satisfied that the calculations are correct the issue block on the cover sheet shall be
signed/initialled and dated in accordance with the requirements of this procedure. (See below figures 'First
Formal Issue').
See below figures 'Index of Calculations' shall be used to compile the index of all formal calculations.
The Lead Specialist Engineer of the applicable group shall be responsible for maintaining the group's
index and at each updating shall revise and issue an copy of the index to the Project Manager.
4.7 Filing and Storage of Calculations
Manual Calculations
Calculations in the course of preparation shall be retained by the individual originator who shall be
responsible for their security.
After the checking and approving sequences have been completed and the calculations have been signed
by the checker and the approving authorized person, the calculations shall be passed to the Lead
Specialist Engineer who shall be responsible for their security.
The Lead Specialist Engineer shall be responsible for entering the calculations into the groups calculation
index for the project. (See also section 4.6).
The Lead Specialist Engineer shall keep such calculations in a lockable filing cabinet.
The calculations shall only be removed with the permission of the Lead Specialist Engineer who shall
record the name of the person withdrawing the calculations together with the date.
The final disposition of calculations is defined in ref 6.5.
Computer Calculations
Any design sketches or manual calculations associated with computer calculations shall be filed in
accordance with the requirements of this procedure for manual calculations.
Computer calculations in the course of preparation shall be the responsibility of the individual originator
who shall be responsible for their security in the following form:
a. Floppy disks for computer runs carried out on personal computers
or
b. Stored memory disks for computer runs carried out in-house or via the in-house main frame computer
facilities (stored by the Computer Group)
and
c. Print-out hard copy from either a. or b.
After the checking and approving sequence has been completed and the calculations have been signed
the Lead Specialist Engineer shall be responsible for their security.
The documents to be retained shall be of the following form:
a. Floppy disks for computer runs carried out on personal computers
or
b. Stored memory disks for computer runs carried out in-house or via the in-house main frame computer
facilities (stored by the computer group)
and
c. Print-out hard copy duly signed in accordance with the requirements of this procedure.
The Lead Specialist Engineer shall be responsible for entering the calculations into the group's calculation
index for project. (See also section 4.6).
The Lead Specialist Engineer shall keep the floppy disks input and the signed print-out hard copy and any
associated design sketches or manual calculations in a lockable filing cabinet. The signed hard copy may
be an A4 size print out for practical filing requirements.
The documents shall only be removed with the permission of the Lead Specialist Engineer who shall
record the name of the person with drawing the calculations together with the date. The final disposition of
calculations is defined in ref 6.5.
4.8 Calculations Carried Out by Others
Where engineering services are carried out by "others" on behalf of Company for Company Clients the
calculations done by "others" shall meet the requirements of this procedure. Prior to the issue by
Company of any enquiry involving engineering services by "others" the Project Manager and the
applicable group Job Lead Engineer will determine if this procedure is to be part of the documentation
forming the enquiry.
5. Flowchart
6. References
Document
Number
Title
6.1
SA-350
6.2
QA-004
6.3
QA-006
6.4
CM-CA-001
6.5
CM-PE-111
6.6
CM-MA-102
Figures:
Authorization of Calculations
Internal Issue
Entr
y
Signatory
Responsability
Lead
Engineer
Internal Issue
Signatory
Responsibility
1A
Originator
1B
1C
2A
Lead Engineer
Safety
Nonsafety
2B
3A
Safety
Nonsafety
3B
4
Initial confirms
- Input/methods/output/changes are correct
- Theoretical and mathematical conformity
- That checker is satisfied with the design logic
- A correct interpretation of the calculation results
- Review of originators understanding of the problem
Project Clerk
Revised Issues
The revision of a calculation shall be handled as above, ref 6.6. Signatures and actions will
follow the entries 1A/1B/1C/2A/3A/4.
Index of Calculations
Calculation no.
Calc.
IS Dat Is authority Approval
Title Type
S e
Req'd
See1)
Yes/No
See 2)
Is Microfilm
Film Required
Yes/No
See
2)
3)Indicate Microfilmed
By: "X"
Index of Calculations
ISSUE
DATE
SHEET
NO.
ISSUE
DATE
SHEET
NO.
ISSUE
DATE
SHEET
NO.
ISSUE
DATE
Introduction
2.
3.
4.
5.
6.
Attachment
1. Introduction
The Home Office Construction Department, supported by other departments, provides fully manned field
organizations for each project in accordance with the field organization chart which has been prepared by
the Home Office Construction Department during the proposal phase. The organization is flexible and
tailored to the type, size, complexity and location of the job by the Manager of Construction, such tailoring
does not relieve assigned personnel of any responsibilities as detailed in the Field Construction Manual.
YC employees are employed by the home office and are permanent construction employees of Company
YL employees are employed by either the home office or the field office and are temporarily employed for
specific duties on a construction project. For projects in countries where there is a Company office, YL
personnel may be employed by that office.
4.2 Operations
4.2.1 Construction Superintendent
4.2.2 Area Superintendent
4.2.3 Construction (Discipline) Specialist
4.3 Safety
4.3.1 Site Safety Engineer (Manager)
Organization:
Reports to the Project Manager. Is assigned to the project from inception in the home office to completion
of field activity.
Summary:
Represents Company in the field with full authority and responsibility for the successful completion of the
construction phase of the project in accordance with drawings, specifications, terms of contract, budget,
schedule and company policies.
Responsibilities:
Bears topline management responsibility for safety and ensures proper attention to security and
environmental control during construction.
Delegates authority and responsibility to team members ensuring all tasks are carried out
properly.
Is active in the overall coordination, planning, maintenance of quality, progress and cost control of
the construction phase of the work. Ensures that he is kept informed on a current basis through
regular meetings, timely submission of reports and personal site inspection.
Sees that regular meetings are held with client and that they are kept properly informed under the
contract.
Assures the maintenance of harmonious relations between all parties on the job.
Ensures that timely and accurate reports are made to the client and home office.
Organization:
Reports to the Project Construction Manager. Assigned to site from start of main field operations to
completion of field activity.
Summary:
Supervises all operational aspects of field construction. Sees that subcontractors achieve planned
production in conformity with safety, quality and environmental requirements.
Responsibilities:
Organizes, coordinates and directs the field construction activities in accordance with construction
schedules. Allocates resources as necessary.
Supervises safety and environmental control during construction in close coordination with the
Safety Manager.
Supervises staf of construction specialists. Ensures quality control procedures are properly
applied.
Ensures his staf has proper understanding of progress measurement and cost control
procedures and that they fulfil their responsibilities in relation to these procedures.
Organization:
Reports to the Construction Superintendent
Summary:
Supervises all operational aspects of field construction within the designated area.
Responsibilities:
Sees that subcontractors achieve planned production in the area in conformity with safety and
quality requirements.
Ensures prompt corrective measures are established and implemented for problems and reports
on problems to the Construction Superintendent.
Inputs into planning and scheduling as required, both site-wide and for the subcontractors
working in the designated area.
Inputs as required into subcontract administration. Authorized to raise Extra Work Authorizations
for subcontractors.
Utilizes the services of Construction Specialists/Supervisors and Field Engineers for the fulfilment
of his responsibilities.
Organization:
Reports to the Construction Superintendent. Starts in the home office for a preparatory period, reports to
site at start of work in the particular discipline.
Summary:
Oriented toward a discipline/subcontractor rather than to an area, is involved in all operations of the
subcontractor within the discipline.
Responsibilities:
Monitors production within the specific discipline. Ensures adherence by subcontractor to key
schedule dates.
Advises subcontractor on construction methods with particular emphasis on compliance with safe
working procedures.
Reports problem areas to the Construction Superintendent.
Interfaces with other site departments, particularly subcontract administration, planning, materials
and engineering, to maintain proper support for and control of subcontractor.
Participates in inspection of the work, prepares completion punch lists.
Organization:
Reports to the Project Construction Manager. Is assigned to site from start of field operations to
completion of field activity.
Summary:
Supervises all aspects of safety, environmental control and loss prevention. Provides liaison with the
Safety Manager in the home office.
Responsibilities:
Ensures that all Company and subcontractor operations are carried out in a safe and
environmentally controlled manner.
Participates in preparing the site safety plan. Sees that the plan is kept up-to-date and reflects all
site operations and environmental requirements.
Reviews and approves subcontractor safety, environmental and loss prevention programs.
Ensures that all Company, government and client regulations are properly addressed and carried out.
Arranges induction program stressing safety and environmental issues for all personnel at site.
Organizes regular safety meetings attended by Company, client and subcontractor representatives.
Regularly inspects all Company and subcontractor activities and operations to assure that these
are carried out in a safe and environmentally controlled manner. Reports irregularities to Project
Construction Manager and line supervision and advises on corrective measures.
Advises the Project Construction Manager to stop work which is not executed in a safe manner.
Sees that proper reports are made to the Project Construction Manager and inputs safety and
loss prevention data into the regular monthly report.
Organization:
Reports to the Project Construction Manager. Assigned to project in home office for preparatory period, is
on site from start of field activity until completion.
Summary:
Supervises all field engineering, authority and office engineering at site. Provides engineering liaison with
Company home office. Ensures quality assurance requirements are fulfilled.
Responsibilities:
Ensures proper distribution of all certified engineering documentation. Sees that outdated
documentation is recovered and destroyed.
Interprets engineering documentation for the subcontractors as required. Provides liaison with
Company home office engineering.
Establishes quality assurance procedures and their implementation to ensure compliance with the
specifications.
Arranges presence of vendor's representatives as required and controls their length of stay.
Summarizes and combines inspection punch lists into master Company punch list. Distributes to
subcontractors for implementation. Ofers completed work to client for inspection and administers
client punch lists with subcontractors
Sees that all inspection and test records are properly administered and processed as required at
job completion.
Ensures that the applicable procedures for dealing with authorities are properly implemented and
adhered to by the field personnel concerned.
Maintains up-to-date records of all authority documents and correspondence, and ensures that all
required documents have been collated for authority inspection.
Organization:
Reports to the Site Engineer.
Summary:
Responsible for engineering services in the site office.
Responsibilities:
Ensures a timely flow of drawings and specifications to all Company field staf and to
subcontractors and keeps accurate records of the distribution.
Sets up and keeps current a reference file of all project drawings and specifications in the field
office for use by all parties.
Maintains engineering correspondence files between all parties (home office, subcontractors,
client, and authorities).
Checks daily manpower reports from subcontractors and prepares the Company Daily Field
Force and Equipment Reports.
Handles contacts with vendors concerning drawings, material or equipment discrepancies and
provides input for the preparation of backcharges, where necessary.
Organization:
Reports to the Office Engineer
Summary:
Performs detail engineering tasks, mostly of a clerical nature, as required by the Office Engineer.
Responsibilities:
Is responsible for dating, recording and distributing all prints and drawings received in the
Engineering Department and distributes drawings and engineering supplies as required.
Maintains a stick file system of all current drawings.Maintains a complete and current master
system of files containing all drawings, specifications and related data.
When new and/or revised drawings and/or information is issued, makes certain that all void
documents are recovered from subcontractors.
Maintains a complete file of one copy of all void drawings and engineering information.
May be required to perform simple drafting duties such as drawing simple sketches, lettering
signs, etc.
Arranges for maintenance of printing facilities at prescribed intervals or when break down occurs.
Organization:
Reports to the Site Engineer.
Summary:
Performs all piping engineering functions required at site.
Responsibilities:
Monitors subcontractor's piping engineering and drafting work and answers day-to-day questions
from subcontractor.
Ensures that subcontractor's small bore detailing and steam tracing layouts conform to Company
requirements.
Organization:
Summary:
Performs detail engineering functions at site.
Responsibilities:
Is responsible for scheduling and executing surveying services which provide the erection forces
with reference points and elevations for construction purposes and checks them after installation.
Takes part in site safety program and bears responsibility for safety as is delegated to him.
If necessary, sees to it that technical problems are brought to the attention of the Site Engineer.
Ensures proper technical control of construction operations and sees that specified tests are
made for quality control.
Carries out inspection of equipment upon arrival at the site, specifically the control of nozzle and
anchor bolt holes orientation with the assistance of the Construction Specialist.
Requests local authority inspection, if applicable, via the Site Engineer, after first having
performed his own inspection and arranges for the issue of inspection and test certificates.
Makes use of job check lists and punch lists to check quality and completeness of the installed
work.
Organization:
Assigned to the project in the home office for a preparatory period. Is on site from start of construction
until completion. Reports to the Project Construction Manager.
Summary:
Assures realization of quality in all aspects at site. Provides liaison with the Manager Quality Assurance in
the home office and with quality representatives of subcontractors.
Responsibilities:
Administers and implements the applicable procedures and assures that all activities related to
quality at the site are performed in compliance with the requirements of specifications, codes and
standards.
Evaluates the efectiveness of the procedures through monitoring and audits, taking corrective
action as required.
Resolves quality control problems identified by QA/QC personnel and recommends or provides
the method of solution.
Through the Project Construction Manager may stop work on which non-conformance exists and
release work when the resolution has been agreed.
Assists the home office and/or third party auditors during quality audits at the site.
Organization:
Reports to the Quality Assurance Manager.
Summary:
Monitors all aspects of quality assurance in a specific discipline as determined by the Quality Assurance
Manager.
Responsibilities:
Sees that all requirements of Company quality assurance procedures are carried out.
Prepares reports on all quality assurance and quality control related matters in his discipline.
Organization:
Reports to the Site Engineer.
Summary:
Is responsible for all quality aspects of field welding.
Responsibilities:
Ensures radiographic and other testing, if required, are properly carried out.
Sees that subcontractor keeps all necessary records relative to welders employed, as signed
symbols, correlation of symbol to weld, welds completed, welds inspected, weld repairs, rejection
rates per welder and overall and any other required welding statistics.
Monitors all aspects of weld heat treatment.
Inspects welding machines and apparatus at frequent intervals to ensure that mechanical
deficiencies do not cause weld quality and/or safety problems.
Inspects the storage and identification and care of welding electrodes, wire, gases, etc.
Organization:
Reports to the Site Engineer. Assigned to project in home office for preparatory period, reports to field
when workload warrants.
Summary:
Is responsible for all authority matters at site. Represents site organization with local building and
inspection authorities.
Responsibilities:
Ensures that the applicable procedures for dealing with local authorities, such as "Stoomwezen"
and "Hinderwet" in Holland and "Technischer berwachungs Verein" (TV) in Germany, etc. are
properly implemented and adhered to by the field personnel concerned.
Keeps safety and quality requirements uppermost in mind when performing other duties relative
to authority requirements.
Maintains up-to-date records of all authority documents and correspondence, and ensures that all
required documents have been collated for authority inspection.
Sees that all documents relative to authority approvals and inspections are included in test loop
dossiers and other packages suitable for handing over to client.
Organization:
Is assigned to the project in the home office at job inception and, there, reports to the Project Manager.
He transfers to the site at the time his presence there is required and then reports to the Project
Construction Manager.
Summary:
The Subcontracts/Control Manager oversees all activities relative to subcontracts and is responsible for
the planning, scheduling and cost engineering for the construction phase of the work.
Responsibilities:
Ensures that the subcontract progress and cost control structures have a sound technical,
financial and economical basis and that the proper control systems are selected.
Prepares subcontract bid tabulations, including sensitivity studies.
Organizes and maintains a complete file of all bid and contract documents, minutes of meetings
and correspondence between Company and bidders/selected subcontractor.
Reviews extra work authorizations to ensure conformity with contract. Negotiates unit rates for
extra work if necessary.
Administers all cost aspects of the field work both with the subcontractor and with client, if
necessary.
Inputs into regular monthly cost and progress reports and into the final construction report.
Identifies schedule and cost problem areas and communicates them to the Project Construction
Manager.
Approves invoices for regular progress payments.
Makes sure that subcontracts are properly closed out and that final purchase order amendment is
issued.
Position Title:
Subcontracts/Control Manager
Liaises with home office in developing schedule information relative to engineering documentation
and equipment delivery. Ensures regular flow of key schedule and cost information back to proper
home office.
Organization:
Reports to the Subcontracts/Control Manager.
Summary:
Responsible for planning and scheduling functions relative to all site activity.
Responsibilities:
Continues to develop and keeps updated the schedules that are started in the home office in
order to monitor and trend site activities.
Ensures that all subcontractor produced schedules are passed to him for assessment and that
milestones called for by the Company schedule are fully attainable. Ensures that subcontractor
schedules are in sufficient detail to permit optimum use by subcontractor and proper monitoring and
trending by Company.
Interfaces with Company construction supervisors, keeps informed of their thinking, aids in
achieving optimum communication between Company and subcontractors relative to planning and
scheduling.
Keeps safety requirements uppermost in mind when performing other duties relative to his
position.
Ensures that subcontractor furnishes as required, all manhour, production and progress
information necessary to evaluate his performance.
By continuous resource to expediting and other reports, maintains a constant awareness of the
actual and "due at site" dates of equipment, certified drawings and bulk materials.
Provides input as required for Company monthly construction report. Flags areas of concern
relative to schedule to site management.
Develops with field management and subcontractors any detail schedules, records or other
information if the need arises.
Organization:
Reports to the Subcontracts/Control Manager.
Summary:
Responsible for cost engineering functions relative to all site construction activity.
Responsibilities:
Continually analyses and monitors cost against budget and ascertains cost trends, flagging
problem areas to the Subcontracts/Control Manager and home office Cost Control.
Participates in evaluating and reporting engineering changes which afect field labor and material
quantities or schedules so that these can be suitably input to cost reports and/or trended.
Participates in setting up each subcontract cost reporting structure on the field computer.
Follows up with each subcontractor on a weekly basis, progress achieved resulting in cost
incurred. Inputs weekly cost to field computer.
Agrees content of monthly invoices with subcontractors. Prepares payment certificates for proper
approval.
Sees that Extra Work Authorizations, Field Requisitions and Field Purchase Orders are properly
priced and coded for accounting and cost report purposes.
Makes special cost studies as required for problem areas, claims, change orders and
backcharges, etc.
Accumulates quantity and cost information for the final construction report and assists the Site
Engineer in the preparation of this report.
Organization:
Reports to the Subcontracts/Control Manager.
Summary:
Administers all aspects of various subcontracts assigned to him.
Responsibilities:
Organizes and maintains for each subcontract a complete file of all bid and contract documents,
correspondence, minutes of meeting and other pertinent documents.
Reviews extra work authorizations to ensure conformity with contract. Negotiates unit rates for
extra work, if necessary.
Ensures subcontracts are properly closed out and that final purchase order amendment is issued.
Organization:
Reports to the Cost Engineer.
Summary:
Measures quantities of work completed for unit rate subcontracts.
Responsibilities:
Is responsible for maintaining accurate and current records of work items as completed by the
various subcontractors.
Keeps control on scope of work quantities for adjusting the subcontract purchase order value, if
required.
Organization:
Reports to the Subcontracts/Control Manager
Summary:
Responsible for the combined function of Planning and Cost Engineering or Planning, Cost Engineering
and subcontracts administration.
Responsibilities:
Refer to the individual s of:
Planning Engineer
Cost Engineer
Subcontracts Administrator
Organization:
Assigned to project in home office for preparatory period, then to site from start of main field operation to
completion of field activity. Reports to the Project Construction Manager.
Summary:
Supervises all aspects of field administration, security, accounting, material control, field purchasing and
general services.
Responsibilities:
Ensures that all accounting functions are properly administered. Processes all subcontractor
invoices for payment.
Oversees the Materials Supervisor in his duties. Ensures that materials furnished free issue
reaches the erection contractors on time and that all material records are properly kept.
Inputs accounting and financial information into monthly reports from field. Prepares regular
forecasts of funds required. Sees that proper liaison is maintained with home office accounting.
Oversees the Site Buyer/Expeditor in his duties and ensures that field purchasing is done in
accordance with company standards and policy.
Looks after Company staf personnel afairs and general services. Sees that proper liaison is
maintained with home office construction department.
At job completion, ensures that all financial, accounting and material matters are properly
finalized and that all necessary records are transmitted to proper parties.
Organization:
Assigned to home office for preparatory period, reports to site at time of warehouse organization. Reports
to Office Manager.
Summary:
Ensures that all free issue materials are properly received, warehoused and issued to the erection
contractors.
Responsibilities:
Arranges in good time for facilities and equipment for unloading and storage, keeping close
contact with customs, harbor and road authorities, local transport/expediting firms and the like to
ensure smooth and uninterrupted deliveries.
Supervises warehouse operations. Sees that receiving reports are made, that stock records are
properly maintained and that material is recorded as issued.
Keeps safety requirements uppermost in mind in performing all duties within his responsibility.
Sees that materials and equipment are properly cared for in storage.
Sees that proper liaison is maintained with home office, keeps himself informed on status of all
material delivery and properly informs subcontractors.
Analyzes piping material control computer reports from the home office.
Checks field requisitions for purchase against stock and previously placed purchase orders to
avoid duplication.
Identifies material delivery problems and promptly communicates them to proper parties.
Upon project completion, is responsible for the preparation of material surplus lists and the
disposition of surplus and scrap, in conjunction with the Office Manager.
Organization:
Reports to the Office Manager.
Summary:
Responsible for site purchasing function relative to required permanent materials, equipment,
consumables and other requirements.
Responsibilities:
Maintains liaison with home office Procurement Department, on purchasing policies. Makes any
local purchases required by the home office as defined on properly approved Requests for Purchase.
For site purchases, prepares properly coded purchase requisitions for approval by the Project
Construction Manager and lient, if required.
Develops lists of local approved suppliers and compares bids and prices for review by the Project
Construction Manager and/or Site Engineer.
Awards and issues site purchase orders to selected vendors or successful bidders.
Fulfils administrative and recording functions, in accordance with the site purchasing procedure.
Supplies to the home office the site input on home office purchase orders for the periodical
expediting reports and delivery status reports.
Submits the site purchase commitments each month to the Cost Engineer.
Organization:
Summary:
Performs all site accounting functions as required.
Responsibilities:
Performs all accounting functions at site as required by the project accounting procedure.
Is in liaison with the home office Accounting Department on all site financial and accounting
matters. Keeps the Office Manager fully informed.
When directed, performs audits or helps with audits made by the home office.
Receives, registers, verifies and processes invoices for payment for all field purchase orders and
home office purchase orders, which require field control.
Performs other accounting responsibilities as required by contract.
Organization:
Reports to the Office Manager.
Summary:
Checks actual time on site of Company and subcontractors' personnel and equipment.
Responsibilities:
On a twice daily basis, checks time, man power and equipment of subcontractors who work on a
time and material basis.
For all other subcontractors, checks actual manpower on site against subcontractor's reports.
Keeps attendance records on Company staf personnel and ensures the timely submission of
weekly timesheets, from Company staf, to the home office.
Organization:
Reports administratively to the Office Manager.
Summary:
Responsibilities:
Takes dictation, by shorthand or tape, and types various correspondence, reports, minutes of
meeting, etc.
Organization:
Reports to the Materials Supervisor.
Summary:
Administers all paperwork relative to receipt and flow of materials at site.
Responsibilities:
Ensures proper distribution and filing of Materials Receiving reports, Over, Short and Damage
reports and correspondence relative to materials receiving.
Ties all activities into Company piping materials control system as required by project procedures.
Compiles and updates registers showing status of home office requisitions, purchase orders, field
requisitions, materials receipts, latest expediting information and returnable items.
Checks field requisitions for purchase against stock and previously placed purchase orders, to
avoid duplication.
Compares materials requests from subcontractors with summary of issued materials to avoid
double issue.
Organization:
Reports to the Materials Supervisor
Summary:
Checks all material receipts for conformance and completeness.
Responsibilities:
Organization:
Reports to the Materials Supervisor
Summary:
Responsible for all site activities relative to the piping materials control system as called for in the project
procedures.
Responsibilities:
Requests computer reports from home office showing availability of received materials for piping
prefabrication.
Utilizing computer, issues piping materials to subcontractor for prefabrication and erection.
Reconciles issued quantities.
Ensures correct and prompt input of Materials Receipt Notices, Picking Lists, Foremen's
Requisitions and Warehouse Transfers.
Analyzes PMC computer reports and reports problem areas to the home office.
General
PCM
SAE
SAM
Operations
CS
AS
CIS
PS
MES
ES
IS
NS
RS
Construction Superintendent
Area Superintendent
Civil Specialist/Supervisor
Piping Specialist/Supervisor
Mechanical Specialist/Supervisor
Electrical Specialist/Supervisor
Instrument Specialist/Supervisor
Insulation/Painting Specialist/Supervisor
Rigging Specialist/Supervisor
Administration
AM
OM
MS
FBE
WS
MA
MC
Administration Manager
Office Manager
Materials Supervisor
Field Buyer/Expeditor
Warehouse Supervisor
Materials Administrator
Materials Checker
JA
TC
PMC
SEC
REC
Job Accountant
Time Controller
Piping Materials Control Coordinator
Secretary/Typist
Receptionist
6. Attachment
1. Construction Management Organization Chart (not available)
Introduction
2.
3.
4.
Bids
5.
6.
7.
8.
9.
Vendor Register
10.
11.
12.
13.
14.
Attachment Summary
FIELD PURCHASING
1. Introduction
In principle Home Office Procurement purchases all permanent items. However, apart from accounts X, Y
and Z, the Field Buyer, after approval from the Project Manager, has to purchase permanent items as
well, due to e.g. field changes, errors, omissions etc.
For Purchase Orders on accounts X, Y and Z placed by Home Office prior to having a Construction Team
in the Field, the Field Buyer should issue an Internal Field Purchase Order to Home Office for Cost
Control Purpose.
All Field Purchases, except Petty Cash Purchases, must be supported by a Purchase Order issued and
distributed prior to receipt of the goods or invoice. Prices must be obtained prior to placing the order, but
in rare cases where circumstances dictate, and it is not possible to obtain a price prior to placing an order,
the Purchase Order may still be issued and an estimated cost (inserted as a blind note) is to be shown for
all items. This cost must be plainly shown to be an estimate and must be corrected by an Amendment to
the Purchase Order immediately upon receipt of firm prices. These firm prices must be obtained as early
as possible and the Amendment issued without delay. Purchase of materials must be by competitive bids,
whenever possible.
The purpose of Field Procurement is to expedite construction - hence, fast action by the Field Buyer is
essential.
Date of Requisition.
After proper coding by the Cost Engineer, a copy of the requisition will be listed in an Engineering
Requisition Register, (Attachment 2).
The original will be passed on to the Field Buyer. Under no circumstances will the Field Buyer accept
VERBAL purchase request.
Date of Requisition
Requisition Number
Originator of Request
Brief Description
Cost Code
4. Bids
Bids will be requested from at least three competitive vendors whenever possible unless otherwise noted
in the "Construction Coordination Procedure".
After receipt of the bids, the Field Buyer will complete the Bid Comparison (form BN-UC 14) and submit it
for approval to the Project Construction Manager or his authorized delegate (and on reimbursable projects
to the Client).
Order Date.
P.O. Number.
Field Buyer.
Site Engineer.
Requisition Number.
Cost Code.
Quantity.
Unit Description.
Unit Price.
Total Price.
Discounts.
Taxes.
For Purchase Orders placed on behalf of Client, it is imperative, that the following clause is included:
"This Purchase Order is placed for, on behalf and to the account of ................. (name of Client) and is
subject to the conditions and instructions listed on the reverse side which forms part of this order".
Field Purchase Order for contract work will include as an attachment the "Terms and Conditions
applicable to Orders for Field Labor" and a copy of "Site Rules and Safety Regulations".
For additional purchases or changes and/or modifications on a Purchase Order, an Amendment to Field
Purchase Order will be issued.
This Purchase Order Amendment is prepared in much the same manner as a standard purchase order.
The Field Buyer must ensure that the Confirmation Copy of Purchase Order or Amendment is promptly
returned by the Vendor, duly signed.
Unit Price Orders must show time conditions during which unit prices are valid. In case of a price change,
or after a long period, new comparison with other vendors should be considered.
Estimated amounts must not be shown on vendor's copies, but entered as a "blind note" for Company
(and Client) purpose only.
9. Vendor Register
The Field Buyer will maintain a card system or an alphabetical register indicating names of vendors,
description of material ordered and Purchase Order number.
This applies to Home Office Purchase Orders as well as Field Purchase Orders. This register helps to
locate Purchase Orders if only the vendor name is known.
13.3 Overtime
The order must clearly state the method for computing overtime if it is applicable.
Suggested methods are:
1/173th of the monthly rate for each hour in excess of 173 hours within a 30-day period.
Two shifts at 1-1/2 times the base rate, three shifts at two times the base rate. Fractions of a shift
adjusted proportionally.
13.6 Freight
The purchase order must be explicit in the freight terms for incoming and outgoing freight. If any additional
charges are applicable for loading, erection, dismantling or demurrage, these charges must clearly be
defined in the purchase order.
BN-UC 14
BN-UC 21
BN-UP 2
BN-UC 7
BN-UC 8
BN-UC 9
BN-UC 20
BN-UC 12
Introduction
2.
Field Communications
3.
Numbering System
4.
Telexes
5.
Letters
6.
Field Memo's
7.
Radio Communication
8.
Minutes of Meeting
9.
Technical Bulletins
10.
Technical Newsletters
11.
12.
13.
14.
15.
16.
Attachment Summary
All correspondence shall be conducted in the English language, unless otherwise specified in the
"Project Coordination Procedure".
Correspondence, insofar as practical, shall be limited to one subject.
Telephone communication is discouraged, telex communication is recommended in its place. All
decisions reached in telephone conversations shall be confirmed in writing or by telex.
All correspondence shall bear an abbreviated project title and the Company job number.
All correspondence shall be numbered consecutively. Registers of these numbers shall be kept.
Number assignment and maintaining the registers will be the responsibility of the Office Manager
or the Construction Managers Secretary.
All correspondence shall be written in the name of the Project Construction Manager.
2. Field Communications
(Attachment 1)
2.1 With Client
All formal communications with the Client at the job site must be approved by the Project
Construction Manager and sent over his signature. A copy of all correspondence sent from the Site to
the Client should be sent to the Project Manager.No commercial or contractual matter may be
covered in any communication to the Client, as this is the responsibility of the Project Manager and
Sales Engineer.
3. Numbering System
Unless otherwise specified in the "Construction Coordination Procedure" numbering of all
correspondence from the field office will be as follows:
FM or TX/J001/001
FM = Letter of Memo
TX = if telex
P001
to Project
TX
C001
to Construction
TX
PE001
to Purchasing/Expediting
TX
CL001
to Company London
TX
CG001
to Company Germany
TX
SA001
to Company SA
TX
CV001
TX
J001
to Subcontractor
TX
VEND-1
to Vendor etc.
With Client :
MOM-C01
MOM-C02, etc.
With Subcontractors :
MOM-/J001/01
MOM-/J001/02
J001 = Purchase Order Number
4. Telexes
4.1 Incoming Telexes
The telex operator shall log incoming telexes in the Telex Received Register by date, subject, sender,
receiver, sender's telex sequence number and additional sequence number as defined in Item 3.7.
The last telex copy will remain with the telex operator in a file in chronological order.
One copy of the telex will be given to the addressee.
The original plus the remaining copies of the telex shall be sent to the Project Construction Manager or
the Site Engineer for arking-up with the file number and any further distribution/action as necessary.
If the telex cannot be acted on in three working days, the person responsible shall acknowledge receipt of
the telex to the sender. This acknowledgement shall indicate when answer can be expected.
The incoming telexes shall be filed in the PCM Secretary's file or the Engineering Department's file by
type of telex i.e. Those from project, construction, other Company Offices, vendors/subcontractors or
Client, filed separately in chronological sequence and numbered as defined in Item 3.7.
5. Letters
5.1 Outgoing Mail
All letters are officially sent by the Project Construction Manager. All correspondence to the Home Office
covering project subjects shall be addressed to the Project Manager. All correspondence covering
personnel afairs shall be addressed to the Manager of Construction. Correspondence concerning
personnel may be addressed directly to the Home Office Department which is to take action, with copies
to the Manager of Construction in the Home Office and to the Project Construction Manager. All
correspondence of a confidential nature shall be sent in separate, sealed envelopes clearly marked
CONFIDENTIAL.
The Office Manager shall arrange for stenographing, typing, numbering and distribution. The Office
Manager shall keep the main file with all letters filed numerically. Copies of all outgoing correspondence
shall be given to the Site Engineer.
The Site Engineer shall mark up the copy of the outgoing correspondence with the file number, the
distribution and indicate action as necessary, copies shall be made for persons indicated, the initial copy
shall remain in the Reading File, (for routing of Reading File see also Item 5.2).
= Received Field
B1-C
- RF/J102 (in)
J102 (in)
6. Field Memo's
If not otherwise instructed in the Construction Coordination Procedure all Field memos shall be numbered
in the same series as letters (see Item 3.3).
All memos for distribution outside the field office shall go out over the name of the Project Construction
Manager. Signing is to be by the Project Construction Manager or his designate. A copy of all memos
shall be sent to the Site Engineer for Job distribution and filing.
Posting of memos, when required, and mailing of memos shall be handled by the Office Manager.
The file copy shall be filed in the letter file with the Office Manager.
7. Radio Communication
On large size projects a central radio/walkie-talkie station may be used for on-site communication.
In such cases separate instructions will be given in the Construction Coordination Procedure for that
project.
8. Minutes of Meeting
(Attachments 3 and 4)
All minutes of Meeting should be typed on forms No. UE (1) 4-1 and UE (1) 4-2.
Form 1 shall be used for top sheet and Form 2 for continuation sheet.
Prior to the meeting it shall be decided who will take notes and prepare the minutes.
Execution
Start with listing who were present and representing which company.
Itemize the notes and fill in as far as applicable for each item which party or parties is to take
action.
Indicate the distribution at the end showing the names of all people, who should receive copies.
All Minutes of Meeting with the Client shall be signed by the Project Construction Manager and
bear the initials of the originator.
All other Minutes of Meeting shall be signed and dated by the originator.
Minutes of Meeting shall be issued promptly but not later than three days after the date of the
meeting.
However, important matters requiring quick action shall be immediately brought to the attention of the
people involved by AVO, memorandum or telex.
The Office Manager shall arrange for typing, filing and distribution within the time as stated above.
9. Technical Bulletins
Copies of Technical Bulletins, when received in the field shall be filed numerically by TB number by the
Site Engineer, who will also make further distribution at the site.
Narrative Letter.
Photographs.
Claims on Carriers.
Backcharge to Vendor.
Outshipment Report.
The proposal and prime contract, including revisions/amendments and change orders.
Confidential letters/memo's
Copies of purchase orders, correspondence, etc., relating to telephone, telex, office equipment,
field office furniture and temporary buildings (X, Y and Z cost codes).
Copies of insurance certificates from subcontractors and vendors performing work at site.
Copies of all correspondence as described in Items 5.0, 6.0 and 8.0 (Master File).
Copies of all Home Office and field purchase orders, filed by purchase order number, within each
cost code, in individual folders.
Expediting reports.
Copies of field purchase orders in individual folders, including requisitions, material receiving
notices, outshipment reports, overshort and damage reports, copy invoices and other
correspondence, etc., connected to accounting.
Copies of statements of expenditures not covered by purchase orders, with copies of vouchers.
Purchase Order
Requisition
Correspondence To
Correspondence From
Miscellaneous Items
Minutes of Meetings
This file will contain the original of all correspondence received from the sub-contractor.
In addition the Cost Engineer will maintain a similar file for his own use containing extra work orders, extra
work order reports, negative extra work orders, pay item authorization, engineers certificates and required
back-up, together with registers for recording the various documents and showing amount of invoices
approved and contract sum through latest extra work order.
Drawing schedules.
Manufacturer's drawings and instructions by purchase order number in vendor print sequence
number in individual folders, with operating manuals, vessel books, vendor test certificates in
separate files also by P.O. number.
Concrete log.
Correspondence
- Field to Home Office
- Home Office to Field
- Home Office to Client
- Field to Client
- Client to Field
A copy of all marked up drawings "As Built" with transmittal letter to Client and/or Project
Manager.
All invoices against Field Purchase Orders paid and a written statement to this efect secured
from each vendor.
Material receipts completed for each item on Home Office Purchase Orders.
Documentation of claims and back charges against vendors completed and transmitted to Home
Office.
Documentation of change orders to prime contract completed and transmitted to Home Office.
Subcontract work completed, extra work orders documented and final invoice approved for
payment.
Post office box terminated and arrangements made with post office for forwarding of mail.
Make arrangements with Client and/or Post office for disconnection of telephone and telex
facilities.
Final site clean-up completed.
Proposal.
For disposal of Accounting Documents and Warehouse files the Home Office Accounting and
Procurement Department are to be contacted through the Project Manager for disposal instructions.
It should be discussed with the Client's representative, whether the Client is interested in the Field
copies of Engineering Information. The Project Manager's approval is first required.
Description
Destroy
The HomeOffice
X
Engineering Files
Company Construction Drawings
Vendor Prints
Job Specifications
Job Requisitions
Equipment Lists
Inspection/Expediting Reports
Material Certificates
Transmittal Letters
Field Registers
Authorities File
Administration Files
Home Office Purchase Orders (Material)
Field Purchase Orders (Material)
X
X
Description
Destroy
The HomeOffice
Safety Records
Field Registers
Warehouse Files
Job Specifications
Job Requisitions
X
X
Equipment Lists
Inspection/Expediting Reports
X
X
Warehouse Registers
All documents and files that are to be sent to the Home Office, should be packed in uniform carton archive
boxes (size 11.5 x 25 x 36cm.) which can be placed directly in the Home Office archives.
Before inserting the documents in these boxes, the covers and folders must be removed and the
documents bound by means of a fastener.
On the outside of the box the contents must be indicated e.g. Purchase Orders 001 through 999. The
boxes must be numbered with job number and box sequence number.
A transmittal must be prepared showing box numbers and a brief description of the contents e.g. Box 6
"Test and Acceptance Certs." and "Authorities File", Box 12 "Petty Cash and Bank Documents".
"As Built" Drawings shall be packed and sent separately to the Project Manager.
2.
3.
4.
5.
TYPICAL SET-UP OF FIELD ENGINEERING FILING SYSTEM - Refer to project filing procedure
6.
Introduction
2.
3.
4.
5.
6.
7.
8.
Concrete Record
9.
Acceptance Certificates
10.
11.
Job Register
12.
Backcharge Register
13.
Attachment Summary
1. Introduction
This section includes the basic procedure for site engineering administration for Company and vendor
drawings, reporting, and the maintenance of site registers and record books.
The engineering administration related to Quality Control is outlined in Volume II of the Field Construction
Manual.
Should there be a deficiency, note it on the transmittal letter and copy. If it is important to have the
deficiency corrected, send a separate message to the Project Manager.
Keep one complete set of the latest issues of the documents on file - specifications and letter-size
drawings in folders, larger size drawings on stick files. Reproducibles of drawings are preferably hung
in vertical hanging files.
Classify these drawings by Account Code in numerical sequence. (For details see Attachment 6
Section IV of the Field Construction Manual).
Have the required number of copies of specifications and drawings printed as per the Field
Document Distribution.
List and distribute these documents with a transmittal Attachment 1 to the Subcontractors
concerned, this transmittal is to be signed by the Subcontractor on receipt. Construction specialists
will receive a copy as determined at the start of th8eir assignment and as per the Field Document
Distribution List.
Advise all parties at site involved in the construction to withdraw all void copies of drawings and/or
specifications.
Keep one set of all void documents, clearly marked "Void", in a filing cabinet by account in
numerical order.
Maintain a file of all the transmittal letters from the Home Office, arranged by transmittal number.
Set up and maintain a card system, with one card Attachment 2 (Refer to Form Section BR24006)
for each drawing or specification.
One reproducible copy of each drawing when the Home Office has received reproducible
drawings from the vendor.
In this case the same procedure as in Item 1.1 applies.
If only printed copies are received by the Home Office from the vendor, the Field Office will
receive two copies. One copy will then be issued to the respective Subcontractor. The second copy
will be filed in a hang folder in a filing cabinet. These folders are to be filed by Purchase Order
number and the documents in each folder by Vendor Print number. Instruction manuals shall be filed
in the same way.
Construction Specialists can make use of this vendor information.
On special request by the Project Construction Manager copies of manufacturer's prints in the "submitted
for approval" stage can be received, but they must be regarded as Preliminary. Place these drawings in
the folders, clearly marked "Preliminary" and destroy them as soon as final approved prints are received.
It is possible to receive a new issue of vendor prints after receipt of final approved drawings, if there are
engineering changes after "final" prints have been distributed.
Keep one set of "void" marked prints in a separate file and destroy all spare copies of these void
documents.
Arrange cards by equipment item number where possible, otherwise by purchase order number.
Keep a file of vendor print transmittal letters from Home Office, arranged by serial number.
Client
Job location.
Weather conditions.
Job number.
Date.
First aid, medical and lost time accident cases of day and total to date.
In the column headed "Company Employees" list all Field Office Staf charged to "Y" account by
function.
The second and third column must be used for listing all Subcontractors on site and the labor
employed for each trade, including supervision.
The "Summary For Day" should list the total number of Company employees and the total number
of Subcontractors' employees.
The reverse side of the report will highlight important events on that day, such as the start of a new work
activity, the arrival or departure of a subcontractor extraordinary climatic conditions, fires or accidents
resulting in damage to property (including the degree of damage sustained), fatal or serious injuries to
persons, the delivery of a major item of equipment, a labor problem, and other items of a similar nature
which the Project Construction Manager considers to be important for future reference.
The Daily Field Force Report for the last working day of the week will not only record the important events
of that day, but also a brief summary of the week's activities and pointing out problem areas that may
afect job progress.
Furthermore, a list of visitors to the site shall be included.
The Project Construction Manager or a designated member of his staf is to sign the Daily Field Force
Reports.
If a person is transferred or his assignment is terminated, his name with start and release date should be
put at the bottom of the sheet under a heading "RELEASED". His name shall disappear from the top
section.
The "Field Estimate of Manhours" for columns 4 and 5 are prepared by the site engineer in conjunction
with craft supervisors and the Project Construction Manager.
(Column 6) "Home Office Budget Manhours"
The Budget Manhours is a summary by stem accounts of the original Company Manhours plus all
approved Home Office and/or Field Office Change Orders.
Budget values (manhours) can only be changed, i.e. increased or decreased by internal transfers and/or
approved Change Orders. Such changes will be adjusted by the Home Office Project Control Department.
Budget changes will be submitted to the field by transmittal with a brief description of the reasons for the
change.
(Column 7) "Manhour Estimate advised by Subcontractor"
This column on the Manhour Report for Subcontract Labor defines the estimated total manhours, this
information is originally derived from the subcontractor's manpower histogram. This estimate can be
changed, i.e. increased or decreased due to:
Extra Work Authorizations issued to the Subcontractor.
Substantial increases in scope of work in which case the Subcontractor could be requested to submit a
revised manpower loading curve.
(Column 8) "Physical % Subcontract Completion
The physical % Subcontract completion has been calculated in the report called "Cost and Progress
Report-Subcontracts", see Item 4.7.
(Column 10) "Expected Manhours on Change Orders"
Column 10 will show the total increase or decrease of manhours in the Home Office Budget (column 6)
due to Home Office and/or Field Change Orders.
Plus cost adjustments to include for anticipated scope increases or decreases not yet covered in the latest
amendment to the Purchase Order.
Plus a cost percentage allowance for estimated additional work based on statistics from previous
completed subcontracted jobs.
For a Unit Price Subcontract the Estimated Value to complete is defined by:
The summary of costs covering the pay items for work outstanding for completion in accordance with the
latest issue of the Form of Tender.
Plus adjustments to include for anticipated scope increases or decreases not yet covered in the latest
issue of the Form of Tender.
Plus a percentage allowance for estimated additional work based on statistics from previous completed
subcontracted jobs. The Home Office Project Control Department and the Field Cost Engineer, under the
authority of the Project Construction Manager, will work together to establish the cost percentage
allowances for estimated additional work for the various Subcontracts.
(Column 5) "Estimated Value of Final Total"
This is the Value of Work Completed column 3 plus the Estimated Value of Work to Complete column 4.
However, during the early phase of the execution of a subcontract when the entire content of the
subcontract scope is not yet known, the Home Office control budget value can be used temporarily as
VALUE OF FINAL TOTAL. In this case the value for column 4 will be the diference between the column 5
and 3.
(Column 6) "Home Office Control Budget"
These are the Home Office estimate of costs for the scope of the subcontract. These amounts will only
change by issuance of an approved positive or negative Home Office or Field Change Order. Or in case of
a transfer of workscope from one to another (or additional) subcontract.
The Field Office is not allowed to make any changes in this information, unless the changes have been
discussed with and confirmed in writing by the Cost Department.
(Column 7) "Purchase Order Value"
In this column the value of the subcontract purchase order plus amendments as received by the Field
Office is reported. This column shows an up to date picture of current purchase order value compared to
estimated final total.
(Column 8) "Subcontract % Complete"
This information should be calculated by the quotient of the Value of Work Done column 3 divided by the
Estimated Final Total Value of Work column 5.
(Column 9) "Subcontract % of Job"
These are weighted percentages arrived at by weighting the estimated final total cost of the individual
subcontract against the overall estimated final total cost of the overall construction scope.
(Column 10) "Subcontract % Job Complete"
These percent completion figures are obtained by multiplying the figures from columns 8 and 9.
The summary of all individual subcontract completion percentages is the overall percent construction
completion.
Column 11 shows the value of EWA's included in column 3 Value of Work Completed.
Increasing efficiency.
Working Overtime.
Working Shifts.
In the early stage of the project, estimated progress and manpower curves are based on the control
budget figures, it is essential that these curves are revised when reporting is done against estimated finals
in case these finals difer substantially from the control budget figures. The original graphs, however,
should still be projected for comparison.
Monthly, at the cut-of date, the achieved percentage of progress, which is calculated in the "Cost and
Progress Report", will be plotted into the Planned Cost Progress Curve.
In addition the actual manhour expenditure as reported by the subcontractor is plotted into the Planned
Cumulative Manhour Curve.
Progress and Productivity for each subcontractor is measured within the following parameters:
The Manhours Spent against the Manhours "Earned", i.e. the Value of the Work Done. This is the
Productivity.
Productivity, i.e. efficiency can be measured by the ratio between Budget Manhours estimated to execute
the value of the work done and the subcontract labor manhours expended.
The Budget in this instance means the original plus any applicable and approved Change Order and/or
Extra Work Authorizations.
The distribution of the XYZ report is depending on the Contract Conditions between Company and the
Client (confidentiality).
For further details on Sub Accounts see Item 7.0 of Section XI of the Field Construction Manual.
Target Productivity (based on the original contract value and the manhours estimated).
Actual Monthly Productivity (based on value of work done and the expended manhours).
In assessing the Predicted Final Productivity of an account the Field shall consider, in addition to the
budget productivity and the actual "to date" productivity, the expected future productivity taking into
account the nature of the remaining work, weather conditions, manpower availability, labor atmosphere,
overtime etc.
Project Construction Managers are requested that whenever a significant change is made to the Field
Predicted Final Total Manhours, that they will give a complete detailed explanation at the end of the
narrative section of the Monthly Report.
The achieved percentage of progress is calculated in the "Cost and Progress Report" where the value of
executed pay items is divided by the Control Budget or when applicable by the latest revised Field
Estimated Finals.
The documents which are produced to control and administer unit rate Piping Contracts in the field are
computer reports showing per drawing the pay item quantities, their amounts summarized to a total
amount payable per drawing.
Progress which the Subcontractor claims to have achieved can be verified on a drawing-by-drawing basis.
Manually
Piping Analysis Report (Form Attachment 16 not available)
On small projects where no computer reports are produced by the Home Office or when a piping erection
and/or fabrication Contract is let on Lump Sum basis the piping progress analysis reports can be used for
the calculation of physical percent completion of each piping subaccount for the overall job, or if deemed
feasible, by piping area.
The physical completion of the various piping subaccounts can be based on various units of
measurement such as: tonnage and/or number of items and/or linear meters of piping and/or piping
components.
The reporting of erection and/or fabrication progress can further be broken down into subaccounts for
large bore and small bore piping both per material specification, hangers and supports, rack and track
piping, underground piping, inline items, testing and flushing, steamtracing, etc.
Form 40 not available is self explanatory, however a few comments on the various elements contained in
the worksheet may be given:
Quantity of Total Piping Work to be Done
The quantities as shown in the Subcontractors Form of Tender are for guidance purposes only and are
not to be treated as final. During the construction period these quantities will have to be updated because
of drawing changes and/or scope changes.
Ideally, prior to the start of the piping erection and/or fabrication work the Subcontractor should quantify
the piping and piping components, per isometric and per piping area or per unit. These quantities are to
be reviewed and approved by the Project Construction Manager and will form the basis for the
Subcontractors Progress Report and Payment.
Usually at the early stages of the project not all engineering drawings are available. Therefore, both the
Project Construction Manager and the Subcontractor will then have to agree on preliminary quantities
which are a summary of certified- and estimated quantities.
The Subcontractor should be advised in the bid documents that any variation in quantities of piping
materials will not be considered as a basis for a variation in the Subcontractor's Unit Prices.
Sub Account % of Job
Initially, the percentage which each subaccount contributes to the overall piping account can be calculated
on the basis of the budget manhours. However, the final reported weighted percentages must reflect the
subcontractor's assessment of the amount of work represented by the various subaccounts. Once this
assessment has been checked and approved by the Project Construction Manager, the weighted
percentages should not be changed throughout the duration of the project.
Sub Account % of Area
All factors being equal, the weighted percentage of the individual piping areas should be determined by
the ratios of, for instance, tonnage of piping materials in each area to the total tonnage for the subaccount.
However, the final assessment of the weighted percent attributed to each piping area should take into
account Pipe Size, Accessibility, Elevation, Number of Field welds, Type of Material, etc.
Sub Account % Complete per Area
All factors being equal, the Physical % Completion is based on the Quantity of Work Done against the
total Quantity of Work to be Done.
It should be acknowledged that piping erection progress is composed of a number of erection phases for
which the completion status must be taken into account when preparing the Piping Analysis Report.
These phases are rigging, lifting, aligning, fitting up, field welding, bolting up, including installation of inline
items, flushing and testing.
Overall % Completion
The Overall % Completion for the piping account is determined by summarizing the progress percentages
of each piping class or piping operation in each area or unit taking into account the various weighted
factors for each operation and area or unit.
8. Concrete Record
(Attachment 17 not available)
A record of concrete pours is maintained by the Site Engineer.
This record will show:
Date of Pouring.
Running Total.
Pay Item.
Location/Description.
In this manner a constant check is maintained to ensure that concrete quality meets required specification
and that concrete test cubes/cylinders are sent to the laboratory in time for seven and 28 day tests.
Grout and/or Gunite should not be included in the concrete record.
At the close of the project this information is also used by the Accounting Department in preparing
Capitalization Reports.
In general, three testcubes/cylinders are taken approximately every 50 cubic meters, one for the seven
day laboratory test, one for the 28 day test and one spare which will be used for a laboratory breaking test
in case the seven and/or 28 day test result shows a breaking value below the minimum specified value.
For important pours such as a major tower foundation, equipment support structures, the engineer or
Client may request more test cubes/cylinders to be taken.
The Concrete Record shall be maintained in a loose-leaf notebook and the original copies shall be
forwarded to the Home Office on job completion.
One copy of the laboratory test reports shall be forwarded to the Project Manager in the Home Office and
one copy retained in the Field Office file.
Upon project completion, these reports shall be sent to the Home Office Construction Department.
9. Acceptance Certificates
As work progresses and equipment is installed, aligned and checked, equipment will be inspected in
conjunction with and accepted by the Client's Engineer(s). Of these inspections, records are to be kept as
evidence that the work is executed properly and that all parties are in agreement, upon which, the Client's
Engineer will sign the inspection records for acceptance.
These signed inspection records (Acceptance Certificate) will serve as backup for the final handover of
the works to the Client.
The Site Engineer will maintain a file of all these approved Acceptance Certificates and distribute copies
to the parties concerned per the Document Distribution List.
After completion and handing over the works to the Client, the certificates are to be forwarded to the
Home Office Construction Department.
Acceptance Forms are to be prepared in the field and may vary in content to suit a particular job or
Client's requirements.
Testing, inspection and acceptance forms are included in Volume II of the Field Construction Manual,
"Quality Control".
When cameras are available, pictures should accompany sketches to describe situations where it is felt
they will be of assistance.
The pages of the book are made up in sets of three (3).
The first sheet, when filled out with notes or sketches is to be sent to the Project Manager for distribution
to those concerned within the Home Office. The second sheet is for the Client, if required, or others in the
field who require the information.
The third sheet is the field's permanent record, which must be sent to the Home Office upon completion of
the project.
Each page must be numbered by the field. The job number, date, approvals, etc. must be filled in.
The register should be sent to the Home Office upon the project completion in accordance with
the Job Close-out Procedure.
TRANSMITTAL NOTE
RB24006
2.
RECORD OF DRAWINGS
N.A.
3.
RB26122
4.
RB26123
5.
RB26090
6.
N.A.
7.
N.A.
8.
N.A.
9.
N.A.
10.
N.A.
11.
RB26065
12.
EWA REGISTER
RB26064
13.
N.A.
14.
X, Y AND ANALYSIS
N.A.
15.
PRODUCTIVITY RECORD
N.A.
16.
N.A.
17.
CONCRETE RECORD
N.A.
18.
N.A.
19.
JOB REGISTER
N.A.
20.
BACKCHARGE REGISTER
RB26069
BN-CO-109 Subcontracts
Table of Content
1.
Introduction
2.
Subcontracts Procedure
3.
Business Considerations
4.
5.
Subcontracts Administration
6.
Subcontracts Close-Out
7.
References
8.
Attachment Summary
1. Introduction
This section defines the responsibilities of the various functions in a field organization involved with
subcontracts.
The Subcontracts Procedure is the basis for all subcontract activity and is written to cover a job which is
large enough to warrant a full time Subcontracts/Control Manager in the site organization. Depending on
actual job size, organization and Client requirements, the location at which the work is done (Home Office
or site) and the people responsible for doing the work may change. This should be reflected in the Project
Procedure and Execution Manual respectively the Construction Procedure and Execution Manual.
2. Subcontracts Procedure
See procedure Ref. 7.1.
3. Business Considerations
The primary aspect of all subcontracts which must be kept uppermost in the minds of all who work on
them has to do with the fact that subcontracts are instruments of business. There is, of course, a technical
part which is important and must be accurate and complete.
This technical part is primarily the responsibility of the Engineering Department. The subcontract provides
a commercial framework in which the technical information can be applied to build a part or all of a
refinery, chemical plant or other installation.
Construction's aim in developing the various modules of subcontract documentation has been to produce
a complete subcontract which provides least cost to accomplish the work with maximum protection for
Company and our Clients. At the same time, the subcontractors are given a fair chance with proper
information which enables them to make a competitive bid and a reasonable profit.
Moreover, the modular documentation is designed to cost as few man hours as possible in putting it
together and in administering it at the site.
Therefore, the role of construction as delineated in the subcontracts procedure is mostly a commercial
one, the Procurement Department has its role and acts as a check and balance for construction activity.
Within the overall concern of business, there are other important subjects of a broad nature.
Confidentiality and security go together and are very important. Most subcontract bids are on a
competitive basis, the procedure calls for them to be delivered in a sealed condition, the opening of the
bids should be done with a protocol and with proper witnesses present (Attachment 4). Depending on our
contract with Client, the Client often provides a representative. After the bids are opened, information
contained in them is to be distributed only on a strict "need to know" basis. Bidders eliciting information
about their own bid or the bids of others are to be rebufed. All relative information until award of the
subcontract is to be kept secure. For instance, it is to be locked up at night.
Business ethics of Company personnel involved with subcontracts must be of the highest type. As a
reference for principles of ethics, see the Company booklet, business ethics at Company. Avoid all
occasions of conflict of interest. Always provide an auditable trail for all subcontract transactions, ensure
that all pertinent approvals are recorded.
Relative to business considerations, we often get so immersed in the business aspects of subcontracts
that the requirements of Company's contract with our Client tends to be relegated to second place, if not
forgotten. Everyone concerned must always remember that the provisions of Company's contract with our
Client always overrides any business considerations between Company and a subcontractor. If we have
done a proper job of making the special conditions of the subcontract reflect the Company/Client contract,
thus making the two documents fully back-to-back, it makes the administration of the subcontract easier.
These conditions for construction services supplement the standard conditions on the reverse side of the
Company Purchase Order and act as a substitute for General Conditions of Subcontract, special
conditions of subcontract and Safety Policy and SiteRegulations. It should be noted that no payment
terms are included in these conditions and, for the erection portion, we should ensure that payment terms
are covered on the face of the Purchase Order. Also, there is a separate section for special conditions
(including those necessary for a back-to-back condition with the Company/Client contract).
The same conditions for construction services can be used for small subcontracts with the approval of the
Manager Construction in the Home Office.
5. Subcontracts Administration
5.1 Responsibility
The overall responsibility for proper subcontract administration is in the Subcontracts/Control Manager.
However, almost everyone in the field organization is involved in some way. It is essential that most
administration activities are accomplished in a routine manner, well understood by all concerned and
without expending too many man hours.
Drawing issues (both originals and revisions) are accomplished in the same way. Site office is to take care
that formal transmittals are used in every case in which drawings/revisions are sent to subcontractor. A
complete file of such transmittals is often an important tool in defending against possible claims.
Formal notification and confirmation of revised contractual documents will always be by means of a
Purchase Order Amendment initially raised by the Subcontracts/Control Manager.
As with the Purchase Order, no amendment will reveal estimated final values to the subcontractor.
As soon as the Home Office knows about important changes to technical subcontract documents, or large
variations in the subcontract quantities are established or meaningful changes to delivery dates of
drawings or materials are made, the Project Manager will, pending the revision of the subcontract
documents, immediately notify the Project Construction Manager for proper action.
EWA's will be formally prepared by the Subcontracts/Control Department, approved by the Project
Construction Manager.
The procurement representative in the Home Office will regularly issue purchase order amendments to
enable payment of EWA - amounts.
Amendments will be prepared by the Subcontracts/Control Manager and sent to the procurement
representative in the Home Office for formal action.
6. Subcontracts Close-Out
6.1 Release of Liens (Attachment 10)
As soon as the subcontractor has fulfilled all his contractual obligations, after acceptance (Attachment 12)
of his work has been given by Company and the Client and after settlement of all claims, the
subcontractor will be requested to sign a "release of liens" or an equivalent document, established by
Company in conformity with any applicable National Laws, Client requirements and approved by
Company Legal Department.
The release of liens or equivalent document will be prepared and handled by the Subcontracts/Control
Manager.
If the terms of the subcontract so allow, Company will, upon request from the subcontractor and if all
above mentioned conditions are met, arrange release of the retention monies in exchange for a Bank
Guarantee. Such a Bank Guarantee shall remain in force until the expiry of the guarantee period as
defined in the subcontract.
7. References
7.1
Document Number
Title
Level
CM-PE-705
Subcontracts Procedure
8. Attachment Summary
1. Company Subcontractor Survey (typical, 3 sheets)
RB26061**
RB26062**
RB25021**
RB26067**
RB25017* **
1.
Introduction
2.
3.
4.
Subcontract Invoices
5.
Petty Cash
6.
7.
Advances
8.
Forecast of Funds
9.
10.
Assignment Conditions
11.
12.
1. Introduction
The procedure for handling Field Accounting depends upon the type of contract or agreement between
Company and the Client. Therefore, each job must be treated individually. The procedure for a project will
be determined by the Manager Accounting and the Manager Construction of the Home Office, and will be
incorporated in the Construction Coordination Procedure for that project.
Vendors name
Date received
Invoice number
Invoice date
VAT
Remarks
Date and transmittal number whenever invoice is transmitted to Bank or Client for payment.
Prior to filing the copy Field Purchase Order and/or amendments, the Accountant will check the
calculation and extensions.
The Accounting Field Purchase Order file will be set-up as follows:
Right side: The Purchase Order, request and Amendment.
Left side: All correspondence, MRN's, OS&D's, OSR's, copy invoices etc
4. Subcontract Invoices
Invoices on field issued subcontracts are handled in the same manner as material invoices except that the
Site Engineer's approval on the invoice is substituted for the material receipt. The subcontractor will
prepare his invoice in the number of copies as stated in the Purchase Order, backed up by a copy of the
signed Progress Certificate, Escalation, if applicable, shall be invoiced separately. Terms of contract
regarding separation of labor costs from materials, etc., must be closely monitored.
Invoices for Home Office Subcontracts are signed by the Site Engineer only when related to receipt of
materials or services as billed, and then forwarded to Home Office Accounting Department. Balance of
audit on the Home Office Subcontract is performed in the Home Office.
All purchase orders, amendments, and invoices submitted for payment will be registered on
Commitments/Expenditure cards, (Attachment 3). These cards will be maintained by Purchase Order
number and will show cumulative totals of Commitments and Expenditures so that a direct comparison of
"Commitments" and "Expenditures" can be made.
It may sometimes occur according to the type of contract that invoices will be paid at site.
5. Petty Cash
The Petty Cash Fund will be established by the Office Manager in an amount to be agreed upon with the
Home Office Accounting Department. The fund should be set-up gradually and in an amount not to
exceed actual requirements. The fund is initially established by a transfer of funds from the Client's Bank
Account or from the Home Office Accounting Department to the Field Bank Account.
Each Petty Cash purchase expenditure or receipt is supported by the paid receipt or signed petty cash
voucher (Attachment 4). Petty cash receipts must show the VAT (BTW) amount. The voucher is filled out
in detail, including the Account Code afected by the transaction. Every voucher will be signed by the
Office Manager and Project Construction Manager. This fund is not to be used as a drawing account for
cash advances to field personnel unless authorized by the Project Construction Manager. As required, the
Petty Cash Fund is maintained by means of withdrawals from the bank account, authorized by the Office
Manager and countersigned by the Project Construction Manager.
It is the Project Construction Manager's responsibility to ensure that the cash-on-hand ledger is correct
prior to authorizing extra funds.
Every Monday the cash slips for the previous week are gathered and listed on the "Statement of Field
Expenditures not covered by Purchase Orders" (Attachment 5) or the "Statement of Field Expenditures
covered by Purchase Orders" (Attachment 6).
Before compiling the Statement of Field Expenditures, the Job Accountant will check all vouchers against
the Cash Book. He will then prepare a statement signed by the Project Construction Manager showing the
Cash Balance on hand at closing time the previous Friday. If invoices on Field Purchase Orders are paid
from Petty Cash Funds, a notation must be made to this efect in the Invoice Register. Furthermore, he will
prepare an operating account report, (Attachment 7) each month, to be accompanied by a Concilliation
Statement signed by the Office Manager and the Project Construction Manager. He will attach to this
statement a copy of the Bank Statement showing the Bank Balance at the end of the month. This Concilliation Statement may also serve as a Request for Funds from Home Office Accounting Department. In
this case, the money required to replenish the Bank Account should be noted.
A cash shortage or overage is resolved by issuing a Petty Cash voucher in the amount of the shortage or
overage (Debit or Credit) with an explicit explanation signed/approved by the Project Construction
Manager.
7. Advances
Under no circumstance is it permitted for any employee to become indebted through one or more
advances from the Petty Cash or any other source for an amount in excess of Dfl. 1,000.= without prior
approval from the Home Office Construction Department.
8. Forecast of Funds
To finance field and if applicable payroll expenditures, forecasting of funds shall be done periodically and
as outlined in the Construction Coordination Procedure for the project.
9.
10.
11.
12.
Table of Contents
1.
Purpose
2.
General
3.
Responsibility
4.
Procedure
5.
Flowcharts
6.
References
7.
Attachments
1. Purpose
This procedure describes the establishing and coding of departmental/group references (i.e. international
codes/standards, national code/standards, rules/regulations, company guides etc.)
2. General
References are considered required in the professional execution of engineering/design work.
The references should be subdivided in sections.
3. Responsibility
3.1 The Manager of engineering has the overall responsibility to ensure that the purpose of this
procedure is established/maintained and proper facilities are provided.
3.2 The Group Manager is responsible for establishing and controlling loans of the references
from the groups reference library.
He shall assign a controller within his group to act on his behalf.
(The Company library is the main source for the statutory norms, interacting is covered by reference 6.1).
4. Procedure
At present the references are retained in the form of hard-copies either books, binders, form, leaflets,
graphs etc.
The filing/storage system shall be easily accessible to all department/group users, clearly distinguished
controlled, uncontrolled, expandable.
In order to have a manageable system it is mandatory that a department/group references (library)
controller is assigned. This controller is responsible for keeping the system operable. Each request for
reference needs shall be handled through this controller.
5. Flowcharts
6. References
Procedure Number
Title
6.1 CM-MA-103
7. Attachments
1. Borrowed Standard Documents
2. Borrowed Document Log.
............................
DOCUMENT NUMBER
............................
TAKEN BY
............................
REASON (COPY/UPDATE)
............................
DATE TAKEN
............................
SIGNED (BORROWER)
............................
FILE NUMBER
TAKEN BY
DATE OUT
DATE RETURNED
SIGNED
Purpose
2.
General
3.
Responsibilities
4.
Procedure
5.
Flowchart
6.
References
7.
Attachments
1. Purpose
1.1 The objective of this procedure is to describe the handling of invoices from the Authorities on projects
executed by Company.
1.2 This procedure is applicable for invoicing by Stoomwezen for activities by the Dienst voor het
Stoomwezen and its supplementary facilities such as the Technisch Wetenschappelijke Dienst.
1.3 In addition to the notes on accounting a number of remarks are made supplying information to
departments other than the Accounting Department.
1.4 For the purpose of this procedure the term equipment covers piping systems as well.
2. General
2.1 The tarifs for the various activities of Stoomwezen and the accounting bases are contained in a tarif
list, which is issued from time to time. All tarif information is available with the Authority Engineering
Group and with the Estimating Department.
Note: The tarif list is based on article 9 of the Steam Act, the Vergoedingsbesluit Stoom- en
Damptoestellen and similar regulations for equipment to be assessed and/or inspected on basis of the
Pressure Vessel Decree and the Nuisance Act.
2.2 The Dienst voor het Stoomwezen will invoice a number of their activities, required under the Steam
Act/Decree, Pressure Vessel Decree and/or the Nuisance Act (per condition(s) for a licence bases on this
Act).
2.3 For activities performed by Stoomwezen on the basis described in paragraph 2.2 above, no formal
purchase order shall be written, unless so required for contractual reasons. These purchase orders shall,
however, never be issued to Stoomwezen, but be used only for internal purposes.
3. Responsibilities
The Authority Engineering Group is responsible for the checking of all Stoomwezen invoices.
The Accounting Department is responsible for handling of all invoices of Stoomwezen activities on new
equipment manufactured outside The Netherlands, unless the manufacturer involved has a recognized
representative in The Netherlands.
Comments : Some project may require modified responsibilities as a consequence of the contract.
4. Procedure
4.1 Handling of Stoomwezen Invoices
4.1.1 All Stoomwezen invoices received by Company - Accounting Department on a project for which a
Company The Hague employee is appointed as coordinator shall be handed to the Authority Engineering
Group for checking and approval for payment.
4.1.2 The check performed by the Authority Engineering Group shall cover the following aspects:
is the activities invoiced been performed and are they correctly identified or described?
is the amount invoiced correct (in accordance with the activity and the tarif list)?
If case one of the above questions must be answered negatively, the Authority Engineering Group will
contact Stoomwezen for explanation and/or correction of the invoice.
4.1.3 If found to be correct the invoice will be signed as agreed for payment and dated. The signature
shall be the one shown in the signature list under the relevant heading.
4.1.4 For accounting purposes, invoices for Companys/Clients account will be coded with project cost
code UJ10X; the Project Manager shall indicate the last digit. Invoices for the account of the vendor shall
be coded with the purchase order on which the material or service was purchased.
4.1.5 The Authority Engineering Group will return the invoice to the Accounting Department for further
registration, payment and, if applicable, for backcharging on another purchase order number.
4.1.6 The payment term for an invoice from Stoomwezen is thirty (30) days after the invoice date.
Checking, signing and payment have therefore to be efected within 30 days upon receipt of the invoice.
5. Flowchart
6. References
6.1
Document Number
Title
BN-EP-57
Level
Purpose
2.
General
3.
Responsibilities
4.
Procedure
5.
Flowchart
6.
References
7.
Attachments
1. Purpose
The purpose of this procedure is to lay down the method to define the scope, extent and type of
thermal/acoustic insulation and coating work for "package units" and "machinery" and to obtain vendor's
quantities and technical descriptions. This may be based on relevant specifications by Company,
purchaser or vendor's standard finishing/installation systems, as included in vendor's order. The goal is to
achieve a better work definition (including technical requirements) for the insulation and painting
subcontractors.
2. General
This procedure shall be used on all projects, unless otherwise directed by the Client or Project Manager,
i.e. usage for a limited number of package units and machinery or for insulation or for coating only.
3. Responsibilities
The Company Package Unit Engineer (or the Mechanical Engineer) preparing relevant requisition is
responsible for:
the ensurance that the requisition packages are issued correctly and complete to bidders/vendors
the circulation of bid documents to the relevant engineers for technical evaluation
4. Procedure
4.1 The Package Unit Engineer (or the Mechanical Engineer) shall incorporate the following
information in the requisitions.
4.1.1 A paragraph with text as follows:
the package unit, respectively machinery vendor shall complete and submit to Company, within
the normal vendor print handling, the completely filled out quantification sheets for thermal/acoustic
insulation and coating work, including attachments for technical data and manufacturer's names as
applicable, at the earliest possible date after order placement. It is vendor's responsibility that his
subcontractors also comply with this requirement.
the housing of rotating machinery (pumps, gear boxes, motors, mixers, agitators, etc.), electrical
equipment, instruments, and their outdoor cabinets, level indicators, transmitters, etc. weigh bridges,
scales, travelling cranes, hoisting tackles, loading arms and the like, including the auxiliaries connected to any of such items.
4.1.2 The quantification sheets (see attachments 1 and 2, RB24001 and RB24002) for the vendor to
complete (under Document Classification Number - DCN).
4.2 The Project Procurement Manager issues the documents and/or reissues documents for
correction to the vendors.
4.3 The vendor completes the quantification sheets and adds relevant information as indicated
on the quantification sheets.
4.4 The Project Procurement Manager expedites the vendors and circulates data to Specialist
Engineers within the normal vendor print handling.
4.5 On receipt of the vendors' completed quantification sheets via the procurement group, the
following engineering activities shall take place:
the Package Unit Engineer (or the Mechanical Engineer) reviews the filled out quantification
sheets as to item description, quantity, type of skin material and temperature
the Insulation and Coating Engineer reviews the technical aspects of insulation and coating.
4.6 When vendor has not completed the quantification sheets correctly, the sheets are returned
to the Procurement Manager for reissue.
4.7 When vendor has completed the quantification sheets properly, these sheets are collected
by the Insulation and Coating Engineer.
4.8 The completed quantification sheets are incorporated in subcontract package by the
Insulation and Coating Engineer (ref. paragraph 6.2).
5. Flowchart
6. References
Document Number
Title
Level
6.1
BN-EP-307
6.2
CM-PE-705
Subcontracts Procedure
7. Attachments
1. Quantification Sheet for Thermal/Acoustic Insulation Work RB24001 - find in menu >library>forms
2. Quantification Sheet for Coating Work RB24002 - find in menu >library>forms
. Quantification Sheet for Thermal/Acoustic Insulation Work
Package Units and Machinery
DCN No.:420
To be completed by Vendor
Equipment
Item
(or part)
Type
Insulation
Material
Remarks
(1)
Insulation
(m2)
(2)
(4)
(4)
(5)
To be completed by Vendor
Equipment
Item
(or part)
Type
Coating
(m2)
(1)
System
Coating
Material
Remarks
Supply Install.
by
by
Vendor Vendor
(2)
(3)
(3)
(4)
Purpose
2.
General
3.
Responsibility
4.
Procedure
5.
Flowchart
6.
References
7.
Attachments
1. Purpose
1.1 This procedure establishes the administrative management function of the Engineering Department
and includes the basic instructions and policies applicable to the nonproject activities of the department,
with references to the relevant detailed procedures.
1.2 No changes to, or suspension of, this procedure shall be made without authorization of the Manager
of Engineering (ME), and confirmed by new issues of the relevant page(s) of this procedure or by
separate instruction memorandum.
1.3 Suggestions for improvement, however will be welcomed and should be submitted to the ME for
consideration.
2. General
The successful execution of projects for our Client's and the continual growth and development of our
personnel and systems are the primary objectives of the Engineering Department. The procedure outlined
herein will provide a structured environment to meet those objectives.
3. Responsibility
3.1 The Engineering Department is responsible for ensuring that sufficient numbers of suitable, qualified
employees are available to execute the engineering activities for Company's projects. The requirements
will be based on project and overall company planning and reviewed at regular intervals.
3.2 The Group Manager of the engineering disciplines shall ensure that the employees are kept fully
acquainted with the latest technological developments in their field, that they are supplied with updated
standards of operation, and that they are equipped with the best tools.
4. Procedure
4.1 Recruitment of Permanent Staff (See Procedure, Ref. 6.1)
4.1.1 To ensure the proper evaluation of potential new hires and a prompt follow-up of interviews, the
following rules shall be applied.
4.1.2 All applications received from the Human Resources Department shall be reviewed by the ME or his
delegate and, if considered necessary, transmitted to the relevant supervisory staf for advice. The
secretary of the ME shall register the applications in sequence of arrival and keep track of circulating
applications.
Note: If applications are directly received by the functional section, these applications shall be transmitted
to the Human Resources Department for the normal handling procedure.
4.1.3 The deputy ME for, project engineers, or Manager Engineering Administration and Procedures
(MEA) in cooperation with the Group Manager, for other employees, will decide whether and when
candidates will be interviewed and send all application documents to the secretary of the ME who shall
register the actions to be taken (not suitable, to be interviewed, pending, interview date).
The secretary of the ME shall send all application documents to the Personnel Department, who will notify
the applicants.
4.1.4 Interview Sequence
For Junior Project Engineer/Project Engineer
1.
Deputy ME
2.
3.
Group Manager
2.
MEA or Deputy ME
3.
HRD
2.
MEA
3.
ME or deputy ME
4.
HRD
2.
Group Manager
3.
MEA
4.
HRD
For Clerical
1.
2.
MEA
3.
HRD
Obligations
Answer questions on pension fund, sickness assurance and other social benefits
Confirm references
The interview team members shall agree on a split of interview subjects to avoid duplication.
The discipline representative will in principle handle the technical interview, but also obtain a general
impression of the applicant.
4.1.5 Evaluation of Applicants
Every interview team member, including the Human Resources Depart ment interviewers, will report their
views as concisely and clearly as possible on the blank sheet attached to the application form to the MEA.
The evaluation should not be restricted to technical quality and experience only.An evaluation must also
be based on personality characteristics, because these characteristics often define future growth
possibilities. The list given in Attachment 2 could help to compose an impression of an applicant's
nontechnical characteristics. After final discussion with the interview team members, the MEA or deputy
ME shall prepare a recommendation whether to hire or not and salary for approval by the ME. A positive
recommendation will normally only be made if all interviewers agree on the suitability of the applicant.
4.1.6 The MEA or deputy ME will inform the relevant parties concerned of the decision of the ME,
acceptance or refusal of Company's proposal by the candidate, and the time the candidate may start to
work in our office.
If available, names of S/C's with which Company has had good experience in the past.
4.2.3 The MEA shall obtain the necessary approvals to hire and request the Human Resources
Department for action.
4.2.4 Professional resumes received for review will be distributed to the Group Manager/Section Leader to
obtain his recommendation whether to hire or to reject.
4.2.5 Interviews of S/C's prior to their starting work are not required. However, during their first 2 weeks at
Company the Group Manager shall carefully check their capabilities and initiate immediate termination of
the contract if the performance is below our requirements. In extreme cases, if a S/C misrepresents his
abilities and is dismissed within two days there is no charge to Company.
4.2.6 The MEA shall be advised well in advance of the termination of an assignment. The MEA shall
inform the Human Resources Department, while the Group Manager shall advise the S/C.
The minimum notice period for S/C's is one (1) week unless specifi cally advised otherwise.
4.2.7 Communications for recruitment of service contractors should be made in principle, by telecon or
hand carried to the Human Resources Department.
4.2.8 Monthly, the MEA will issue a list of in-house service contractors giving information on function,
discipline, start and finish date and Company staf equivalent.
A rating E (6.0) (below average) indicates that the performance on that particular point is
unsatisfactory and unacceptable and requires definite improvement.
A rating D (6.5) indicates that the performance on that particular point is below satisfactory. This
rating is to be expected for an individual who has just started in a new (higher) function for which
he/she has the qualifications, but lacks the experience.
A rating C (7.0) indicates that the performance on that particular point is satisfactory and simply
meets the pertinent job description.
A rating B (7.5) indicates that the performance on that particular point is above satisfactory and
usually exceeds the requirements.
A rating A (8.0) (well above average) indicates that the performance on that particular point is
excellent. This rating is normally only reached by employees who are "expert" in the technical aspects
of their job, but lack the qualifications to meet the job requirements of the next higher function.
If the rating of all points is approaching B (7.5), promotion should be considered, provided that:
It is expected that the individual can meet all job requirements of the next higher function. Special
attention in this respect shall be paid to the administrative and supervising qualities required for the
higher function.
There is a vacancy.
If certain points cannot be appraised because the supervisor can not judge this item with enough
certainty, or the employee did not perform that type of work, the supervisor shall mark such point as "not
applicable" and state the reason.
4.3.3 Review of Appraisal with Employee
Prior to reviewing the appraisal with the employee, the evaluator shall review the completed appraisal and
have it approved by the Group Manager and the MEA.
During the review with the employee it is important to discuss strong points and weak points in the
employee's performance. The interview should conclude with specific agreements on areas of
improvement for the employee to implement in order to improve his performance on his weak points.
Note: When the appraisal is specifically made to explore potential promotion it shall not be discussed with
the employee until the assignment to an acting position is made.
4.3.4 Appraising Agency Personnel
The secretary of the ME shall maintain a file on the performance of agency personnel working for
Company for future reference. The Group Manager shall provide the secretary with the necessary
information, preferably using the standard appraisal form upon completion of each assignment.
4.4 Promotions
4.4.1 It is a firm policy that promotions are always preceded by an "acting" period during which the
performance of the employee can be tested in the higher function under actual conditions. This means
that the "acting" period cannot start until there is a job available on which the employee can be assigned
in the higher function. Work on proposals normally cannot be considered for these "acting" periods.
4.4.2 The "acting" periods for the various functions in engineering are normally:
For acting Draftsman/Designer
: 3 months
: 6 months
: 9 months
: 9 - 12 months
: 12 months
4.4.3 Recommendations for "acting" functions, supported by an evaluation, must be submitted by the
Group Manager at least one month before the start of the proposed "acting" period.
This appraisal shall not be discussed with the employee unless the Manager of Engineering has approved
the employee for the "acting" function.
4.4.4 Approximately half-way through the "acting" period the employee shall be evaluated by his
supervisor. This evaluation serves to judge if the promotion indeed can be made.
Note: It is of prime importance that, if there are during the acting period signs that the employee probably
will fail to conclude his acting period successfully, this be brought to the attention of the Manager of
Engineering, who then will decide on the action to be taken
4.4.5 Promotions may only be efected on the following dates: January 1, April 1, July 1 and October 1.
Promotions require the authorization of the Director of Operations.
Block/Unit
aannnn
nn
BN-6960
10
N-9000
11
In addition, provisions have been made to use a 6-digit "document number" as a cost bearer code. Its use
is currently limited to the identification of drawing numbers as defined in procedure ref. 6.6.
4.6.2 Further Instructions on Project Cost Code (PCC) and Cost Center (CC)
In this system the employee is "coupled" to their base cost center. This means that when they are
assigned to another department they may only fill in the appropriate PCC code.
Each employee has a base CC code.
This base CC code will only change in the case of transfers to other departments/groups covered with a
Personnel Actions Notice (PAN) (ref. 6.7).
The use of the base PCC code shall be limited to overhead charges for which no job, proposal or
overhead project number has been assigned and for which the base department has the responsibility.
This concerns overhead charges to BN-0001 thru BN-0150 (which include training, standards,
miscellaneous, doctor's visit, illness, or, vacation etc)
.If work is executed on a project (e.g. BN-3220), proposal (e.g. N-1028) or overhead project number (e.g.
N-8001) then the project cost center code pertaining to the department/group responsible for that type of
work shall be used.
Note:This responsible department/group advise inform the employee on the exact PCC to be used
Examples:
a. A Piping Designer is assigned for 3 months to the Procurement
Department for vendor print control work.
For their job work, they will use as PCC: UP-610.
For their vacation etc., they will use as PCC: UD-100.
b. A Piping Designer is assigned for 3 months to the control systems group.
For their job work they will use as PCC: UD-600.
Assume that this individual has to be trained for this diferent type of work then, since the control systems
group is responsible for this training, for the training they will use as PCC: UD-600 (job number BN-0010).
For vacation the PCC is UD-100.
c. A Piping Designer is assigned for 3 months to the pipe support and stress group.
For their job work, they will use as PCC: UD-200.
Assume that because of a short interruption of information this individual becomes "idle" for a couple of
hours then, since the piping support and stress group is responsible for the adequate flow of information,
this idle time (BN-0060) will be booked against PCC: UD-200.
Equipment
Proposals to acquire design tools (in the widest sense of the word, e.g. computer programs, outside
bureau services, etc.).
Note: All CAE; CAD - hardware and software shall be submitted to the Manager CAE; CAD for
consolidation.
This plan, together with a budget request, shall be submitted to the MEA. For the budget request shall
follow the format Attachment 1 to this procedure.
4.7.2 The MEA shall prepare the plan for the overhead budget for the coming year based on the above
information and expenditures of the previous year.
After approval by the ME it will be sent to the management for approval.
4.9 Time Out Paid (BN-0090) for Employees Studying at Night Schools or Following Approved
Evening Courses
In order to prepare themselves for intermediate and final examina tions the following time-out paid may be
given.
Maximum 3 days per year to prepare for final examination for studies at MTS, HTS or HTI
schools.
Maximum 1 days per year to prepare for intermediate examinations ("overgangs-examens") for
studies at MTS, HTS or HTI schools.
Time out paid will be given for actual examination during regular working time.
Laboratory tests to be performed during work day - times at school shall be compensated by
flexitime to a maximum of 3 days/year.
All requests for this time-out paid are to be approved by the Group Manager and authorized by the MEA.
For every other studying employee, the amount of time-out paid will be decided by the ME separately from
case to case.
Any extra required time shall be taken as normal vacation days.
Overtime can only be started after the overtime permit has been authorized i.e. all 3 approvals specified
above are given.
Overtime on more than 3 successive days should be avoided.
The secretary of the ME shall file the originals and distribute the overtime permits to the following:
Project Manager
4.12 Approvals
4.12.1 Expense Reports
Expense reports shall be reviewed and approved by the Group Manager or conformance with relevant
procedures and submitted to the MEA for approval.
After approval by the MEA, they shall be submitted to the Project Manager.
4.12.2 Assignment Conditions
Prior to issuing assignment letters to employees, the Human Resources department shall review the
assignment conditions and letters with the MEA.
4.12.3 Personnel Purchases
Prior to purchasing any personnel materials or supplies, to be charged to the company the requisitions
shall be approved by the MEA.
4.12.4 Internal Relocations
The MEA shall approve all internal moves, and furniture moves and phone requests and coordinate with
office services.
4.13 Familiarization of Staf with Manuals
It is the responsibility of the Group Manager that all staf within their scope of responsibility is at all times
aware of all in formation in the Company departmental and general manuals which could afect their work.
A handout is provided from the Human Resources Department to each employee explaining the manual
system. The Group Manager shall review the applicable procedures with each new employ ee either
permanent of subcontract.
4.14 Authorized Signatures (nonproject) (See Reference 5.9)
For nonproject documents the authorized signatures for engineering are as per the latest revision of
Attachment 3 to this procedure.
5. Flowchart
Not applicable.
6. References
Document Number
6.1 Later
6.2 CM-MA-831
Title
Level
6.3 CM-MA-838
6.4 BN-EP-013
6.5 CM-MA-103
6.6 CM-MA-101
6.7 CM-MA-802
6.8 Later
6.9 CM-MA-005
7. Attachments
1.
2.
3.
4.
5.
6.
7.
Vacation Request Form and Proposed Vacation Planning - not available - document available in
pdf
Table of Contents
1.
Purpose
2.
General
3.
Responsibilities
4.
Procedure
5.
Flowchart
6.
References
7.
Attachment
1. Purpose
This procedure describes the division of responsibilities between the Electrical group and the Control
Systems group and involves both specialist engineering as well as design functions.
2. General
The definition of the split of work and division of responsibilities as outlined in paragraph 3 and 4 shall be
followed unless specific circumstances dictate otherwise. These deviations shall be properly recorded and
routed within the groups task-forces.
For all technical details see reference 6.1.
3. Responsibilities
It is the responsibility of the electrical and control systems lead specialist engineer that this procedure is
followed.
A meeting between the two groups to define the interface and extent of work shall be held immediately
after project start.
Adequate information shall be exchanged between the groups to enable clear definition of the
responsibilities resulting from this procedure.
For detailed requirements see reference 6.1.
4. Procedure
After the project "Kick-of" meeting the lead electrical engineer and the lead control systems engineer will
arrange a coordination meeting to settle the split and responsibilities between the Electrical group and the
Control Systems group.
Any deviations from this procedure, Attachment 1, will be recorded and the Control Systems guide,
(ref.6.1) will be completed accordingly. Also impact on budgets will be checked and revised as required.
The Control Systems guide, (ref.6.1) and any deviations from this procedure will be incorporated in the job
instructions. After completion of the job instructions these will be issued.
5. Flowchart
6. References
Document
6.1
Number
Title
Level
BN-G-UE301
7. Attachment
1. Standard Split of Responsibilities
Standard Split of Responsibilities
The following areas of mutual involvement can be observed and the following procedures shall be
followed:
Power Supplies
The Electrical group shall provide electrical power supplies dedicated for control systems, including
emergency or standby equipment such as generators, inverters, batteries etc. including the power
distribution boards for the control system users.
Control System cables leaving the distribution boards are the responsibility of the Control System group.
Note: Power supplies, distribution boards inside Control System cabinets are the responsibility of the
Control Systems group.
Alarm Systems
Alarms associated with motors, switchgear and other electrical equipment and to be annunciated on
instrument panels and/or in control systems are the responsibility of the Electrical group.
The control systems group will be responsible for incorporation of these alarms into their system(s) from
the interface point as detailed for each project.
Measurement Systems
The measurement of power factors, frequency, power consumption and other typical electrical signals to
be processed/handled in instrumentation systems is the responsibility of the Electrical group.
The Control Systems group will be responsible for incorporation of these measurements into their
system(s) from the interface point as detailed for each project.
Electric Control Systems
Control Systems directly associated with motor starters, oil heaters, electric tracing and alike are the
responsibility of the Electrical group.
The Control Systems group will be responsible for the detailed control, alarm, safeguarding requirements
as shown on the P&ID's and passing all process signals required for electrical control to the interface
point as detailed for each project.
Control and Interface Panels
Control panels for electric power, motor control, variable speed drives, uninterrupted power supplies,
batteries and electrical tracing shall be the responsibility of the Electrical group.
All process control interlock, process safeguarding and interface panels shall be the responsibility of the
Control Systems group.
The interface points shall be detailed per project and located in motor control cabinets, marshalling boxes,
interface panels etc.
Communication Systems
Communication systems such as telephone, paging systems, radio communication systems, time
recording systems, television, electric clocks, entry systems are the responsibility of the Electrical group.
Where for these systems space and monitoring in control systems panels is required adequate data shall
be transmitted by the Electrical Group.
Telemetry systems and data communication systems are the responsibility of the Control Systems group,
when only electrical data are being handled these systems will be the responsibility of the Electrical
group.
Motorized ON/OFF valve and Signal System
Electric motor operated valves, complete with motors, integral starters, associated control system and
power supply are the responsibility of the Electrical group.
The valves themselves shall be specified by the Piping Engineering group. The responsibility for the
complete assembly will be with the Electrical group.
Process control and process safeguarding functions shall be advised by the Control Systems group.
Fire, Smoke and Gas Detection Systems
These systems will be the responsibility of the Control Systems group.
Cable Routing
Each group is responsible for engineering/design of their cable routing.
Where cable routing of electrical and control systems group are close to each other, or should run
together, close coordination and communication shall take place to result in a sound design.
This coordination/communication shall also take place with other groups involved e.g. piping underground - civil - structural.
Earthing
The main earthing, involving static earthing, protective earthing, lightning protection and instrument
earthing systems are the responsibility of the Electrical group.
The provision of earthing facilities on and within instrument equipment and instruments and any specific
shielding requirements are the responsibility of the Control Systems group.
Management Systems
State of the art motor management and power management system ("intelligent" switch gear) are the
responsibility of the Electrical group. Since these systems will be integrated with Distributed and/or Other
Control Systems close coordination and exchange of data and protocol agreement shall be established
between the Electrical and Control Systems group.
Introduction
2.
3.
Procedure
4.
References
1. Introduction
To improve the coordination of the supply of structural steel contained in package units, the following
procedure must be followed.
Airfine
Flare stacks
Desalters
Deaerators
3. Procedure
3.1 Prior to order placement the Structural Steel Engineer must be involved in discussions with vendors
quoting for package units, containing a structural element.
Although it is a project engineering duty to involve the Structural Steel Engineer in such discussions, the
equipment specialist engineer (Vessel Engineer for airfins, tanks; Mechanical Engineer for heaters,
boilers, etc.) shall, already during the preparation of the bid document, involve the Structural Steel
Engineer.
3.2 It is considered necessary that at the time Company places purchase orders for package units, also
the possible structural steel subvendor(s) are known. It is a procurement responsibility that such a vendor
list is established.
3.3 In the case of foreign vendors it is advantageous that the Structural Steel Engineer has regular
contacts with the vendor during the design phase of the job.
If the structural steel is supplied by a sub-vendor, contacts with this sub-vendor shall always be through
the prime-vendor and will be organized by inspection/expediting.
Also the equipment specialist shall always be informed.
3.4 To cover the requirements specified under 3.2 and 3.3 it is recommended to add following clause to
package units requisitions:
In his quotation, vendor shall give a vendors list for the design, fabrication and delivery of structural steel.
The selected vendor for structural steel shall be brought in contact with Companys Structural Steel
Engineer before this vendor starts the actual design of the structural steel.
3.5 Vendor documents for structural steel, such as static computations, layout drawings, detail drawings
etc., shall be routed via Structural Steel Engineer.
The Structural Steel Engineer is responsible that these documents are checked in sufficient detail.
4. References
Doc. Number
Title
Level
4.1
BN-EP-400
II
4.2
BN-EP-405
II
Purpose
2.
General
3.
Responsibilities
4.
Procedure
5.
Flowchart
6.
References
7.
Attachments
1. Purpose
This procedure applies to Company inspection of purchased materials, components and equipment at
source, i.e. at the suppliers plant or at those of his sub suppliers, during the manufacturing process. The
procedure describes how Company supplier inspection is:
defined
executed
reported
2. General
Suppliers have an important contribution to make to attaining a projects quality objectives. Companys
interface with the suppliers is to a large extent entrusted to the inspection department within the overall
mission of the procurement department. This procedure is intended to formalise the inspection
department actions.
3. Responsibilities
Company engineering department defines project requirements, including inspection and tests to be
carried out, in the various documents forming part of the purchase order.
Company procurement department is responsible for placing, administrating, inspecting, expediting and
eventually closing out the purchase order.
The supplier is responsible for the execution of the purchase order, in particular for presenting the material
and/or equipment to specified requirements, with the corresponding documentation.
The Company manager inspection is responsible for:
proposing the inspection level according to the nature and content of the purchase order and the
assessed capabilities of the supplier for project approval;
Consulting with or seeking the assistance of others e.g. engineering department, client or
Authorities, in accordance with project procedures as may be necessary;
designating an inspector to carryout inspection at the suppliers in accordance with the approved
Inspection and Test Plan (ITP), and monitoring the inspectors actions;
reviewing the performance of the supplier from a quality viewpoint (as reported by the inspector)
and taking or initiating corrective action should the need arise;
The Company inspector, or the inspector seconded from another organisation, shall carryout the
inspection programme as defined by the Company manager inspection and report his findings to the latter
in the prescribed manner.
4. Procedure
4.1 Definition of Purchase Order Technical Requirements
Requirements are defined by the Company engineering department in the following documents attached
to and forming an integral part of the purchase order:
the requirements
the specifications
the drawings
In addition requirements may be further defined in the following, cited in the requisitions, specifications or
drawings:
authorities regulations of the country in which the material and/or equipment will be manufactured
and the country in which they will be installed and utilised.
materials to be used;
lists of documents required from the supplier to define his inspection and test procedures and to
record results.
Where possible bidders, i.e. potential suppliers, are selected from companies having in place a formal
quality system corresponding to the ISO 9001, ISO 9002 or ISO 9003 standard or to a standard
considered to be equivalent.
However, for commercial or technical reasons use may have to be made of suppliers who have not as yet
a formal quality system. In this case they will be assessed to ensure that their internal procedures
encompass at least the major elements of the appropriate quality standard.
Thus a selected supplier will have its own inspection department whose mission is:
to define procedures, procure inspection and test facilities and employ qualified staf to give
assurance that the expected quality can be obtained and maintained for his product(s);
to adapt the suppliers inspection system for each purchase order to ensure that specified
requirements are attained.
The Requisition requires that the supplier produces documents defining how in fact the purchase order
quality requirements will be met. These include typically:
test procedures.
the necessary references to project, purchase order no., definition of material or equipment
concerned, etc.;
a chronological list of operations starting from approval of documents through to final shipment;
for each inspection or test point the frequency, e.g. 10% or once per shift etc.;
for each inspection or test point, the reference document applicable, i.e. specification, code, etc.
and the acceptance criteria;
references of inspection or test record forms to be used;
columns for supplier, Company and possibly the client or a representative of an Authority to
indicate by means of a letter his involvement, thus:
R = Reviews
W = Witnesses
H = Hold point
When the supplier presents his ITP for review by the inspector, he shall include the inspection and test
record forms he proposes to use.
In general Company expects the supplier to use his own standard forms. It is only in the case of the
content or format being found inadequate, that the inspector shall request the supplier to modify the forms
or produce new ones.
The supplier is entirely responsible for the quality of his product and to attain this, he works through his
own quality system of which his inspection department is a part.
It is the role of the Company inspector to monitor performance of the supplier by means of his visits
operating through the suppliers own inspection department. It is only when the suppliers performance is
shown to be inadequate that he shall take a more pro-active role.
supporting documentation such as the requisitions, drawings, data sheets and specifications.
Having reviewed this package to determine the nature and importance to the project of the material or/or
equipment concerned, and in the light of Companys assessment of the suppliers capability (see 4.15
below), the manager inspection or his substitute shall:
complete and issue for approval by the project the first issue of the inspection status report
covering the initial issue of purchase orders (see 4.13 below).
Concerning standard levels of inspection, they are in ascending order of depth/ completeness:
N = No inspection
F = Final inspection only
IP = Progressive Inspection comprising:
general inspection visits, arranged as far as possible to coincide with hold points
final inspection.
pre-inspection meeting
presence at hold points, hold points being more dense that with IP
final inspection.
or when deemed necessary by the manager inspection due to workload in any one location or to
ensure specified quality is attained.
The manager inspection or his substitute shall select an inspector either from within his own department
or assign the work to another Company entity or to an approved outside inspection agency. In the latter
case the manager inspection shall exercise full control over its activities.
The purchase order package shall be filed in the inspection department office and thus be available to the
inspector. When another Company entity or an outside organisation is used, then a copy of the package
shall be transmitted to it along with the formal assignment on form RB25013, copy attached.
Designation by the manager inspection or his substitute of a standard inspection level only defines an
outline programme. The inspector shall review the situation during the pre-inspection meeting, or as soon
as possible thereafter, so as to be able to convert the chosen inspection level into a more precise
programme with dates, or at least approximate dates. This can often be done in a convenient fashion by
marking up the suppliers barchart.
In defining hold points, they should be kept to a practical and necessary minimum. An excess of hold
points may be difficult for the inspector to honour and devalues the essential hold points.
During the course of the inspection operation, the level of inspection shall be kept under review in the light
of the ease or the difficulty that the supplier demonstrates in meeting his obligations. This enables the
manager inspection or his substitute in collaboration with the inspector to increase (or decrease) the level
of inspection.
the supplier may not exercise sufficient control over the sub-suppliers or over his own
establishments to ensure purchase order requirements, in particular quality requirements, are met;
the precise requirements defined in the purchase order may not have been transmitted onwards
to sub-suppliers or to all the suppliers own establishments involved.
The inspector shall ensure that Companys concerns are met by:
if the information is not already available, obtaining during the pre-inspection meeting a list of subsuppliers their address and references with details of their scope of work for approval by the project
procurement manager;
finding out from the supplier which member of his staf is responsible for overseeing the quality of
sub-let work and how that responsibility is exercised, e.g. by regular visits, etc.;
reviewing the suppliers (unpriced) suborders to ensure that necessary quality requirements have
been transmitted onwards, and that engaged sub-suppliers are those named on the Company
approved list and/or mentioned in the requisition;
ensuring that sub-let work is covered in the suppliers ITP or alternately ensuring that the supplier
obtains ITPs at least from his major sub-suppliers;
arranging with the supplier, pre-inspection meetings with and inspection visits to the major subsuppliers.
However it must be understood that it is the supplier who is responsible for the quality of work of his subsuppliers. The inspector shall never give an instruction directly to a sub-supplier and must be
accompanied by a representative of the supplier when visiting a sub-supplier.
key documents such as for example the requisition and the general arrangement drawing;
from supplier print control department an up-to-date list of supplier documents showing Company
approval status.
authority representative;
client.
The PIM is concentrated on inspection and associated matters to which the necessary time must be
consecrated. For this reason commercial, contractual or pure engineering questions should be the subject
of meetings separate from the PIM.
Whilst the PIM should take place as early as possible, if it is to be productive:
the principal supplier drawings, specifications and procedures shall have been submitted to
Company engineering department and be returned at least in Code 2 i.e. reviewed with comments
as noted;
the supplier shall have decided how his work will be divided between his own establishments and
his sub-suppliers;
organisation chart;
available at suppliers;
7. Division of works between suppliers establishments (if he has more than one) and outside
subcontractors:
suppliers supervision of subcontracted work; inspection arrangements at each place where work
will take place.
8. ITP:
review;
hold points.
welder qualifications;
materials;
authorities.
11. Non-conformances/concessions.
12. Final inspection:
non acceptance.
before an inspection visit obtaining from expediting and engineering lists showing status of
documents and noting any particular points needing expediting.
at the suppliers, reviewing the situation, bringing to the suppliers attention points needing
expediting.
generally noting and reporting on progress in the suppliers document preparation, procurement,
manufacturing, testing and shipment operations.
detecting in good time and reporting on a deteriorating situation, real or potential, at the suppliers
likely to retard delivery.
This shall be done by means of the inspection reports and by contacts with the expeditor of the
procurement department. However in assisting expediting, the inspector shall at all times give priority to
his inspection function. In particular he shall only note and pass on information, he shall not actively
expedite the supplier himself.
record that it has been attained, e.g. inspection and test records;
They are built-up progressively over the life of the purchase order in a Manufacturing Data Book (MDB),
thus creating a comprehensive record. The MDB is an integral part of the suppliers responsibility and the
material and/or equipment cannot be accepted by Company without it.
Successive steps in the creation, processing and acceptance of quality records are as follows:
The supplier submits his procedures and upon review by Company engineering formalised by a
stamp and signature on the originals returned to the supplier.
The supplier submits models of his inspection and test record forms to the inspector during the
PIM and agrees final versions to be used (as far as possible the supplier should use his standard
forms).
The supplier completes and signs of the record forms as he progresses in his inspection and test
program.
Each Company inspector has a rubber stamp with his name or sequence number and two boxes
marked witnessed and checked (i.e. checked after the event). The inspector shall stamp each
document, such as inspection or test record, material certificates, procedures, etc., tick one box or the
other as appropriate and sign it upon review.
The required contents of the MDB are outlined in the requisition. During the PIM the inspector
shall agree the specific detailed index of the MDB. For example it could be decided that certain
documents, such as welding procedure specifications could be in a common section, whilst other
records could be more appropriately filed by item of equipment.
Once the contents are agreed, the supplier shall physically create the basic MDB with separators,
chapter headings, index, etc. and file each document progressively as soon as it is approved, so as to
create an ongoing up-to-date record of quality status.
The complete MDB shall be presented with the material and/or equipment for final inspection. An
incomplete MDB is a motive for the inspector to refuse final acceptance.
Should the anomaly only be detected after the event, e.g. a fabrication does not fall within specified
dimensional limits, it is either corrected by the supplier as part of his normal procedures, or if it entails
special treatment, then it should be classed as a Non Conformance. A supplier with a comprehensive
quality system will enter the anomaly into his own non conformance system.
In the absence of such an action on the part of the supplier, the inspector may at his own discretion issue
a Company Non Conformance Report (NCR), using form no. RB25010, copy attached. It shall be
distributed according to the project DDS. See 4.14 below. The inspection department maintains a NonConformance Log per project (see form RB25015 and 4.14 below).
An NCR shall be closed out by the issue of a Release Note.
In a more general manner the Company inspector may obtain from the supplier agreement to deal with a
problem using a Quality Control Memorandum (QCM) form no. RB25012 copy attached. Here the agreed
action is written on the form and signed by both parties. The QCM is attached to the relevant inspection
report and distributed with it. See 4.14 below.
4.10 Final Inspection and Release for Shipment
When the whole or an agreed part of the material and/or equipment supplied under a purchase order is
complete in manufacture and its documentation i.e. the MDB or the appropriate part thereof, is complete,
the supplier calls Company for final inspection.
The inspector shall duly inspect the material and/or equipment and MDB. If he considers it complete and
meeting specified requirements, he may accept using an inspection Release Note, as per form no.
RB25011, copy attached.
If on the other hand he finds the material and/or equipment and/or the MDB unacceptable, he shall
formalise his decision by issuing to the supplier a NCR as per form RB25010, copy attached. It shall be
distributed in accordance with the project DDS. See 4.14 below.
4.11 Inspection Visits and Reporting
Before the visit the inspector shall:
a well defined inspection or test generally being a witness point or a hold point;
a visit to view work in progress or completed i.e. a tour of the shops and other work areas.
In either case the inspector shall carry out the inspection or witness the test in the presence of the
suppliers inspection personnel. Before leaving he shall inform the supplier of his conclusions:
or, in case of a problem or something needing further action, by writing a QCM (see form
RB25012) and asking the supplier to sign it and then action it.
in the case of an important problem coming to light, the inspector may ask the supplier to
establish a NCR or issue a Company NCR using form RB25010, copy attached.
Any supplier inspection or test records presented during the visit shall be reviewed by the inspector,
stamped witnessed or checked and signed.
Within 24 hours of his return the inspector shall produce a report on the inspection report form and
continuation sheet no.RB25009. It shall be distributed according to the project DDS. See 4.14 below.
For a specific inspection or test point inspection report section headings shall be:
references, etc.;
reference document i.e. specification, drawing or code to which inspection/test is carried out;
acceptance/non acceptance decision with definition of corrective action (attach copy of QCM or
NCR).
A copy of the suppliers inspection and test record duly stamped and signed may be attached if it is not
too bulky.
(In any case the inspector shall ensure that the original is filed in the suppliers MDB).
For a more general inspection visit the inspection report headings shall be (where relevant):
documentation;
materials;
machining;
assembly;
painting;
4.12 WaiversShould the manager inspection consider that any inspection point invitation from the supplier
shall not be follow-up, then, after consultation with the project and engineering, the inspection waiver shall
be formalised by a facsimile or letter addressed to the supplier. This applies particularly to previously
agreed hold points and final inspection. Inspection release notes will not be issued for materials or
equipment not subjected to inspection
Distribution shall be to the project DDS, to include the site and engineering.
establish an initial issue as soon as the first purchase orders become available (see 4.3 above);
update it regularly.
Its purpose is to inform the project and client and permit them to comment on defined inspection levels
and on their execution.
Inspection/expediting assignments;
inspection reports;
QCM;
NCR/log;
Each of these classes of documents shall be numbered consecutively 001, 002, followed by the
inspector's initials per purchase order. In the case of the NCR's only, there shall be a log, regularly
updated.
The "Inspection Status Report" is regularly issued per project (i.e. covering all purchase orders to date on
that project). Each revision is dated and has an issue no.
All of these documents are distributed according to the project DDS.
Samples of all forms are attached to this procedure, see 7 below. Concerning filing in the inspection
department all of these documents are filed in the purchase order file. In addition the NCR's shall be the
subject of a file per project.
For further details see Sections 6.1 below for referenced documents.
5. flowchart
6. References
Document Number
Title
6.1
CM-PE-711
6.2
BN-EX-001
Expediting Activities
6.3
BN-G-UP201
Inspection Guide
7. Attachments
1.
2.
3.
RB25009 Sample of Inspection Report form (front page and continuation sheet)
4.
5.
6.
7.
8.
Level