PT. JAYA KENCANA BETARA COMPLEX DEVELOPMENT PROJECT JobNo.

:BCD-090-CA

ISSUED Date : 03/12/03

RECEIVING MATERIAL PROCEDURE Page : 2 of 6

CONTENTS:

1. PURPOSE
2. SCOPE
3. APLICABLE CODE & SPEC.
4. WORK ORGANIZATION
5. EQUIPMENT MATERIALS & CONSUMABLES
6. WORK METHOD AND INSTRUCTIONS
7. INSPECTION AND DOCUMENTATION

ATTACHMENTS
A. REPORT FORM
PT. JAYA KENCANA BETARA COMPLEX DEVELOPMENT PROJECT JobNo.:BCD-090-CA

ISSUED Date : 03/12/03

RECEIVING MATERIAL PROCEDURE Page : 3 of 6

1. PURPOSE
The purpose of this procedure is established methods and controls by which all
equipment such as pipe, coated pipe and goods purchased from suppliers/vendors are
checked, received, inspected, stored and preserved up to time hand over or issuance are
in good condition.

2. SCOPE
This procedure cover all activities related to received purchased and customer supply
product and material for Betara Complex Development Project

3. APLICABLE CODE & SPEC

API RP 5L Specification for Line Pipe

Client Specification: Document No. BCD3-300-44-SPC-4-303-00 Specification for
Onshore Pipeline Construction and Installation

4. WORK ORGYANIZATION
1. The material controller and the store man are responsible to the Construction
Manager for ensuring compliance with this procedure.
2. QC Inspector shall inspect quantities and actual condition, the result of inspection
put on form of Material Receiving Inspection Report.
3. Material Receiving Inspection Report shall be reviewed by QC Engineer and issued
to Client for Approval sign

5. EQUIPMENT MATERIALS & CONSUMABLES

Truck/Trailer Helmet
Crane 20 Ton Safety Glove
Wire Sling with book Safety Shoes
Clamp and
Cover Plastic
Sand Bag

6. WORKS METHODS AND INSTRUCTION

6. 1. Receipt Materials
All delivery drivers will report to the store man on arrival, if
material/equipment is to be unloaded at a point other than the site control
storage area, the store man will direct the trucks to the designated location,
accompany the truck and check the unloading of the good.
Off Loading
Off loading will be done in the presence of' the store man and with the
assistance, if necessary of rigging personnel.
PT. JAYA KENCANA BETARA COMPLEX DEVELOPMENT PROJECT JobNo.:BCD-090-CA

ISSUED Date : 03/12/03

RECEIVING MATERIAL PROCEDURE Page : 4 of 6

6.2. Handling and Protection of Materials

All material and equipment shall be handled, stored and protected in such a
way that the quality of the material or equipment cannot be jeopardized or
degraded as a consequence of inappropriate handling and storage methods.
Potential environment unfriendly materials such as chemicals, paint and fuel
will be handled with special care and precautions should be taken for the
event of accidental leaking of containers and barrels by storage on or above
drip recovering facilities.
6.3. Location
Depend on the type of material and protection required it should be stored:
Inside in a weatherproof building. The inside storage facility shall be designed
and situated to prevent ingress of rainwater or wind and that floor remain dry
at all times. A concrete or wooden floor is preferred but if such a floor not is
provided then materials should be stored on pallets or shelves clear of the
ground.
Out side under suitable protection from the weather i.e. plastic sheeting
securely fastened or tied to prevent being blown off or torn in high winds or
rain. Material shall in principle be placed clear of the ground to avoid
contamination or corrosion from ground water and sediment. The outside
store area shall be constructed or sited in a location to avoid pounding during
rainy weather.
All sensitive equipment shall be stored in accordance with manufacturer's
recommendation.

7. INSPECTION AND DOCUMENTATION

7. 1. Material Inspection
7. 1. 1. Checking
The shipment shall first be checked for item conformity against the trucker's
delivery bill / receipt and for damaged items or containers.
The shipment will then be checked for conformity with the
requisition/purchased order and the result of inspection put on Material
Receiving Inspection Report as shown attachment A.
The QC Engineer or his designee shall review all documentation for
conformance to the job requirements.
7,1.2. Discrepancies / Non Conformance
If discrepancies or damaged are revealed, they will be noted on the carriers
delivery bills or receipt.
Depending on the nature of any discrepancy the QC Engineer will ascertain
if a non-conformance report is required .

7.1.3. Storage
Thc store man / QC Engineer shall reject material that do not comply or- are
damage, such material is to be marked as soon as confirmation is completed
and separated in a quarantine area.
PT. JAYA KENCANA BETARA COMPLEX DEVELOPMENT PROJECT JobNo.:BCD-090-CA

ISSUED Date : 03/12/03

RECEIVING MATERIAL PROCEDURE Page : 5 of 6

Once inspection and checking has been completed satisfactory material

shall be placed in the store area as approved material.

7.1.4. Documentation
Copies of delivery dockets, packing list, material receipt report and any
nonconformance reports shall be forwarded to the project office for
appropriate action.
Copy of non-conformance report shall be submitted to company

7.2. Inventory Control and Status of Material Customer Supply Product

Every used material and customer supply product must be controlled by
Material Control Department and related with quality product shall be
checked by Quality Department.
Quality Control Department shall be controlling Status of material customer
supply product and the result put on Form of Material Inventory Report
PT. JAYA KENCANA BETARA COMPLEX DEVELOPMENT PROJECT JobNo.:BCD-090-CA

ISSUED Date : 03/12/03

RECEIVING MATERIAL PROCEDURE Page : 6 of 6

ATTACHMENT
A