PSAI TERMINALS

THIRD PARTY INSPECTION SERVICES FOR CRANES

Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

Table of Contents

1 General

2 Equipment

3 Qualifications for contractor

4 Contractor’s responsibilities

5 Programme of services

6 Contractor’s unsatisfactory performance

APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

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PSAI TERMINALS
THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

1 General

1.1 The Tenderer shall be an independent third-party inspection company (hereinafter

referred to as "the Contractor”) for the scope of works mentioned herein.

1.2 The Contractor shall be involved from the beginning of fabrication until all the
equipment in the Contract are accepted and handed over to PSAI or its Affiliated
Corporation.

1.3 The Contactor shall be required to provide independent full-time inspection of the
approved quality assurance plan for the duration of the entire project from fabrication,
construction, erection, testing and commissioning of the cranes.

1.4 The Contractor’s scope and proposal shall show compliance to the specification
clauses; and include all expenses; full time inspection based on the specified scope;
geographical sites; the organisation; reporting structure for inspectors; curriculum vitae
of inspectors; inspector scope; list of references; related projects handled and others
etc.

1.5 This is a lump sum contract and the Contractor is deemed to have checked and
ascertained the type and quantity of inspection and the full extent of the services
required as no extra claim of whatever nature shall be entertained for the lack of
knowledge.

2 Equipment

2.1 Crane units shall be fabricated and delivered to PSAI Terminal location.

2.2 The Crane Manufacturer is M/s Doosan Heavy industries Vietnam. Dung Quat
Economic Zone, Binh Thuan, Binh Son, Quang Ngai, Vietnam.

2.3 The Contractor shall carry out its inspection works at the main work sites for
fabrication, construction, erection and commissioning works in Doosan Vietnam. The
range of inspection sites shall be determined after the award of the tender.

2.4 The cranes shall be delivered to PSAI Terminal. Upon delivery of the cranes to PSAI
Terminal, the Contractor’s inspectors shall be stationed at PSAI Terminal to conduct
the Site Acceptance Tests (SAT) with the Crane Manufacturer’s representatives.

3 Qualifications for contractor

3.1 The Contractor shall be a member of the International Association of Classification

Societies (IACS).

3.2 The Contractor shall not have less than ten (10) years’ experience in quality
management of large scale equipment fabrication projects.

3.3 The Contractor shall not have less than five (5) years’ experience in quality
management of crane fabrication projects.

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

3.4 The Contractor shall submit to PSAI a list of previous relevant projects and inspection
procedures/protocols and CV’s of Inspectors assigned for inspection of this project in
the tender submission.

3.5 The Contractor shall assign dedicated inspectors to the project. The Contractor shall
ensure that only suitable candidates are selected for the inspector job scope.

3.6 All inspectors assigned by the Contractor shall be subjected to the approval of PSAI’s
Superintending Officer (SO).

4 Contractor’s responsibilities

The Contractor’s principal responsibilities under this contract are summarized into the
following 5 categories listed in the Sections 4.1 to 4.6.

4.1 Factory and System Audit

4.1.1 The Contractor shall ensure that its inspectors have a thorough and full
knowledge and understanding of the relevant parts of the PSAI crane
specifications for the purpose of their quality inspections. The Contractor shall
be provided with copies of the PSAI crane specification for the purpose of their
inspections.

4.1.2 The Contractor shall audit the Crane Manufacturer’s quality control system prior
to the commencement of any purchases or inspection works of the cranes, and
report the results of their findings directly to PSAI. The Contractor shall assess
the Crane Manufacturer's compliance to an international quality management
system such as the ISO9002: 2001 before the start of the fabrication.

4.1.3 PSAI will provide the Contractor with details of the Crane Manufacturer’s quality
assurance program and Inspection Test Plan (ITP) for the purpose of auditing
and review. The Contractor shall audit the program prior to the commencement
of any purchases or works.

4.1.4 The Contractor shall conduct a factory audit of the Crane Manufacturer’s facility
prior to the start of fabrication works. The audit shall include a review of factory
organization, equipment and procedures, such as incoming material inspection,
fabrication, erection, WPS, ITP, NDT, safety and etc.

4.1.5 The Contractor shall submit the results of the system and factory to PSAI in a
formal report (as stated in clause 4.3.1).

4.1.6 The Contractor shall submit to PSAI their factory audit protocol and checklist
upon award of tender.

4.2 Conducting Inspections and Endorsement of Checklists

4.2.1 The Contractor shall work with the Crane Manufacturer to conduct the various
inspections based on the agreed Inspection Test Plan (ITP). The Contractor
shall highlight to PSAI should any parts of the inspection schedule be missed,
and in particular those relating to hold points. The general scope of inspections
checks in the ITP to be provided by PSAI.

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

4.2.2 The Contractor shall verify the Crane Manufacturer’s adherence to the agreed
standards and drawings, and co-endorse quality checklists with the Crane
Manufacturer, in accordance to the ITP.

4.2.3 The Contractor shall ensure that the ITP will include but not limited to the
conducting of visual inspection for defects, and witnessing of the Factory
Acceptance Test (FAT in Doosan Vietnam) and Site Acceptance Test (SAT in
PSAI Terminal) for every crane. PSAIs representative may be present.

4.2.4 The Contractor shall collate, verify and submit information on the outcome of
inspection visits, corrective actions taken, visual inspection defect clearance,
acceptance of FAT/SAT to PSAI through the various reports submitted to PSAI
(refer to Section 4.3.1).

4.2.5 The Contractor shall ensure that the proper storage and handling of purchased
equipment, materials and components follow the OEM guidelines; such as gear
reducers, cables, electronic panels, slip ring, etc. The Drives OEM shall be at
the site to provide guidance on the storage and handling at the initial stages.

4.3 Inspection of incoming materials, components, equipment and spare parts

4.3.1 The Contractor shall inspect and ensure that all purchased materials,
components, equipment and spare parts are according to specification and free
from defects.

4.3.2 The Contractor shall ensure that the storage and handling of purchased
equipment and components follow all requisite guidelines such as gear
reducers, cables, electronic panel, etc.

4.3.3 The Contractor shall take photographs of all storage sites, especially those for
gearboxes, motors, etc. and submit them in the weekly reports. The Contractor
shall verify that, as far as possible, all storage sites shall be sheltered from
direct weather elements.

4.3.4 The Contractor shall be responsible for drawing guidance from the Drives OEM
on the proper storage and handling of Drives components.

4.3.5 The Contractor shall also be responsible for tracking the delivery of all
materials, components, equipment and spare parts to ensure that the project is
progressing according to the stipulated timeline.

4.4 Documentations and Meetings

4.4.1 Documentations

a. The Contractor shall submit the following reports at the specified

frequency by the inspectors and shall contain the following documents
relating to the Crane Manufacturer’s project progress:

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

S/No. Description Frequency Contents

1 Factory Audit Before start of Review of Crane Manufacturer’s quality control
Report fabrication system, prior to the commencement of any
works purchases or works. The Contractor shall
assess the Crane Manufacturer's compliance to
an international quality management system
such as the ISO9002: 2001.

Review of factory organization, equipment and

procedures, such as incoming material
inspection, fabrication, erection, WPS, ITP,
NDT, safety and etc.
2 Weekly Weekly Progress reports submitted shall reach PSAI
Progress every Monday morning by electronic mail. As a
Report guideline, the report shall include the followings:

 Summary of progress and major

activities for the week including Gantt
charts comparing the actual and
planned progress in each stage,
including fabrication of various sub-
structures, purchases, construction,
installation, assembly of various
components (i.e. trolley, gantry), and
erection. Exception reports e.g. strikes,
flood, stop work order etc. and
cumulative days affected by the weather
shall be indicated in the report.

 Progress Gantt charts shall report

schedule for incoming materials;
purchases; welder qualification test;
cutting; fitting-up; construction;
installation; assembly, erection and
commissioning works and others, etc.

 Progress Gantt charts shall report

execution of quality hold points for
inspection.

 Photographs of the progress of each

crane and the fabrication and storage
areas.

 Tabulation of all supplied major items

with required quantity, received quantity,
balance quantity, purchase date,
delivery date, and assembled date.
Examples of such components are hoist
motors, operator cabin, spreader, etc.

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THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

S/No. Description Frequency Contents

Any product rejection upon arrival shall
be highlighted and reasons shall be
indicated.

 Welder qualification and welding

procedure checks on all welding task
done on critical structures. Welding
traceability records on these critical
welds shall be included.

 Summary of status (open/close/pending)

of all non-compliance reports.

3 Weekly Visit Weekly  Details of inspection activities and

Report findings made during the week
(according to the scope of inspection as
defined in the ITP).

 Highlight areas of non-compliance, i.e.

poor workmanship, defects, malpractice
of manufacturers and sub-contractors,
qualified welders spot-check, welding
procedures check and etc.

 Details of follow-up actions by Crane

Manufacturer from the findings of
previous visit reports and SAT/FAT non-
conformity, visual inspection checklists.

4 Material As and when  Photos and description of poor storage

Storage Report poor storage and handling of purchased equipment
of material is and components; such as gear
detected reducers, cables, electronic panels, slip
ring lubricants and especially focusing
on water-ingress which will result in
corrosion or degradation in oil quality.

 Photographs of all storage sites,

especially those for gearboxes, motors
and etc.

5 Non- As and when  The report shall include full details of the
Compliance non- incidents (date, time, crane number,
Report compliance to background) and how they have
quality deviated from the agreed standards
checklists or (provide drawing number, checklist
standards reference). Photos shall be provided for
arises clarity.

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THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

S/No. Description Frequency Contents

 Non-compliance of all incoming

materials, components, equipment and
spare parts.

 Each non-compliance item, actions

taken by the Crane Manufacturer to be
clearly stated and listed down.

6 Site As and when The report shall include full details of the
Observation site issues incidents (date, time, crane number,
Note / Memos arise to be background) and how they could result in
brought to quality deficiencies in the future. Photos shall
PSAI/PSA be provided for clarity.
notice
7 Visual Twice weekly,  Full list of defects with dates,
Inspection during Visual description, location, photographs
Checklist Inspection (before and after repair), Crane
Report Stage Manufacturer’s comments and status
(open/close) for each batch of cranes.

 Overall progress status in terms of

percentage completed for each crane.

 Approved template shall be used to

standardize the format of each report.

8 FAT/SAT Before & twice  Standardized visual inspection checklist

status reports weekly, during to PSAI prior to the commencement of
FAT /SAT the FAT and SAT each. Checklist shall
stage include photographs; indicate how the
condition deviates from PSAIs crane
specifications and an estimated
completion date.

 FAT and SAT testing and inspection

procedure table. The table shall include
the reasons for non-compliance and the
target completion date of the
rectification works. Completion of the
rectification works shall be reported in
the weekly progress reports.

 Summary of shortcomings from the

approved FAT or SAT checklist.

 Details of rectification work and re-test

conducted by Crane Manufacturer.

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

S/No. Description Frequency Contents

9 Daily shipment Daily, when Overall progress status towards meeting

status report Factory shipment criteria provided by PSAI to Crane
Acceptance Manufacturer. Including the outstanding status
Test starts of the followings :-
until shipment
 Defect rectification from visual
inspection
 NCR
 FAT
 Other critical issues defined by PSAI

10 Release Note Day before  Date/time that the cranes were released
shipment of for shipment.
equipment to
PSAI  Conditions for release (i.e. list of
Terminal. outstanding items to be cleared in PSAI
Terminal).

b. The Contactor shall submit a template of the Weekly Progress Report

and Weekly Visit Report to PSAI for review upon award of tender.

4.4.2 Meetings

a. The Contractor’s project manager shall meet with PSAI once a month to
review the inspector’s work at a time proposed by PSAI and mutually
agreed.

b. The Contractor’s inspectors shall meet with the Crane Manufacturer

quality control team weekly to resolve Non-Compliance Reports and
coordinate inspection schedules. Minutes of such meetings are to be
submitted to PSAI.

c. The Contractor’s representative shall be present during factory audits in

the Crane Manufacturer’s site to discuss findings with PSAI and the
Crane Manufacturer.

4.5 Verification of Crane Manufacturer’s monthly checklist

4.5.1 The Contractor shall also verify and endorse the contents of the Crane
Manufacturer’s monthly progress report to PSAI Terminal, and inform PSAI
Terminal if there are any discrepancies.

4.6 Manning and manpower management

4.6.1 The Contractor shall ensure that his inspectors are provided or equipped with
the followings : -

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THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

a. Necessary calibrated tools for the inspection jobs whether the same
may or may not be particularly shown or described. The Contractor shall
submit to PSAI a complete list of tools to be carried around by inspector,
to be updated from time to time as necessary upon tender award.

b. Independent transport for his inspectors to and from the site of work in
Vietnam and PSAI TERMINAL.

c. Site office and laptop provided to facilitate administrative work in

Vietnam and PSAI TERMINAL work sites.

Permanent contractor passes to access PSAI Terminal premises. These

passes shall be applied at PSAI Site/Pass Office before the
commencement of inspection.

4.6.2 The Contractor shall appoint a representative from their local office in PSAI
Terminal country location to serve as liaison between the Crane Manufacturer’s
fabrication site and PSAI. The Contractor shall submit their Project Manager’s
curriculum vitae and work experience to PSAI in the tender submission.

4.6.3 The Contractor shall submit a manning plan (Refer to Appendix B) showing the
number and work scope (structural/weld inspectors, mechanical, electrical) and
administrative staff at the various project stages until the crane is handed over
to PSAI, at both Vietnam and PSAI Terminal sites. The various stages of
fabrication, assembly and erection and testing are listed in the project schedule
(Refer to Appendix C). This project schedule should only be used for reference.
The actual schedule may defer depending on delivery time being expedited or
delayed. The inspection service shall cater for the changes mentioned without
additional cost. Working hours and off-days of the inspectors shall also be
included. The following considerations or guidelines shall be used in working
out the manning level at each site:

a. Inspection work shall be full-time, including overtime, Sundays and

Public Holidays.

b. At the main fabrication site in Vietnam, the Contractor shall maintain

sufficient inspectors, working full time during the different stages of the
project. A single point of contact shall be made known to report to PSAI
for daily inspector deployment.

c. During Factory Acceptance Test in Vietnam the Contractor shall allocate

dedicated inspector(s), full time for the witnessing and verification of the
FAT until the completion.

d. During Site Acceptance Test at PSAI’s Terminal site, the Contractor

shall maintain sufficient inspector(s), working full time for the witnessing
and verification of the SAT until the completion of handing over.
e. Back up inspectors shall be made available immediately in the event
that manning is not met.

f. Travelling time required by the inspectors to get to the work site

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THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

g. Concurrent activities requiring additional inspectors e.g. Fabrication

checks together with FAT and visual inspection activity

4.6.4 The inspectors shall be able to work overtime and during off-days beyond
the stipulated working hours to meet the project schedule. Performance
will be deemed unsatisfactory if inspectors fail to comply.

4.6.5 The Contractor is responsible for providing additional inspectors at the

Crane Manufacturer’s fabrication site if performance is deemed to be
unsatisfactory, as defined in clause 6.

4.6.6 Inspectors

a. The Contractor shall ensure that the inspectors shall be competent in

written and spoken English, be proficient in Microsoft software (for
documentation) and have at least five (5) years of experience in port-
related machinery inspections in either the electrical, mechanical or
structural trade.

b. The Contractor’s inspectors shall have a thorough understanding of

engineering practices and relevant standards. PSAI shall provide
fabrication drawings and design tolerances and inform on quality
requirements.

c. The Contractor shall submit their inspectors’ curriculum vitae to PSAI in

the tender submission. PSAI shall reserve the rights to conduct
interviews with the appointed inspectors to verify their curriculum vitae
and work experience, and may request for a change of inspectors if
necessary. This includes the backup inspectors that will be deployed in
the event that manning is not met.

d. PSAI reserves the right not to accept any inspector if PSAI deems that
the inspector does not meet the job requirements. These requirements
will be discussed during the opening meeting.

e. The Contractor is not allowed to deploy inspectors whose curriculum

vitae are not submitted to PSAI in the tender submission without PSAI’s
prior approval

f. The Contractor shall ensure that their inspectors only report to and take
instructions from PSAI and its appointed representatives on matters
relating to the project.

g. The contractor shall provide additional inspectors at the Crane

Manufacturer’s fabrication site if additional manpower is required to
ensure the quality is not compromised or if there are catch up works to
be carried out. The cost of any such additional inspectors shall be
deemed to be included in the price.

h. The Contractor shall inform PSAI two (2) weeks prior to any rotation of
inspectors into or out of the project and this rotation shall be subject to
PSAI’s approval, for continuity in inspecting the quality and handling
over of outstanding duties.

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THIRD PARTY INSPECTION SERVICES FOR CRANES
Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

i. PSAI reserves the right not to accept the inspector(s) which PSAI
deemed that he is not able to meet the job requirements.

j. The Inspectors’ performances will be reviewed by PSAI monthly. If their

performances do not meet PSAI/PSA performance criteria, PSAI
reserves the right to request a change of inspectors.

k. The Contractor has to provide a new inspector within two (2) weeks of
PSAI’s request to change the inspector.

5 Programme of services

5.1 PSAI reserves the rights at any time and from time to time to vary the programme of
services as stated in the specifications and to issue further instructions, directions and
explanations in respect of the execution of the services and the Contractor shall
forthwith comply with such changes, instructions, directions and explanations at no
extra cost to PSAI.

5.2 Notwithstanding the above, the Contractor shall not be relieved of its responsibilities to
complete their services under the Agreement and Purchase Order effectively.

6. Contractor’s unsatisfactory performance

6.1 The Contractor shall be held responsible for the following unsatisfactory performance :-

6.1.1 Failure to submit or late submission of reports listed in Section 4.4.1

6.1.2 Submitted reports that fail to meet the scope detailed in Section 4.4.1

6.1.3 Submitted reports in Section 4.4.1 that are found to contain inaccurate
information

6.1.4 Failure to highlight not meeting the inspection schedule stated in the approved
Inspection Test Plan

6.1.5 Inaccurate endorsement of Crane Manufacturer’s quality inspection checklists

6.1.6 Inaccurate endorsement of Crane Manufacturer’s monthly progress report

6.1.7 Failure to meet manning levels or working hours as agreed upon in the
Contract

6.1.8 Failure to work overtime or during off days to meet the project schedule

6.1.9 Deploy inspectors who fail to meet requirements as per Section 4.6.6

6.2 PSAI reserves the rights to withhold any progress payments as per clause 6 of the
Terms and Conditions of Contract if any of the items in this clause 6.1 occurs.

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

A.1 The scope of inspection work in the Inspection Test Plan (ITP) will generally cover
purchases, cutting, welder qualification, fabrication, fitting, edge preparation, welding,
dimensional checks, testing, commissioning, defect-list and etc. It shall include, but not
be limited, to the followings :-

a. Cover all aspects included in the Final Quality Control Checklist

b. Visual checks on the quality of incoming materials including structural steel,

motors, reducers, hydraulic components, electrical components etc.;

c. Verify and to identify steel materials against mill sheets for major structural
items;

d. Carry out steel material traceability checks with random witness of identification
transfer by Crane Manufacturer;

e. Witness of material sample destruction on tensile and impact test for stress
strain curve characteristic for the structure steel and FCM material;

f. Witness for structure large high tensile bolt torsion test;

g. Check wielding traceability to ensure that all welding tasks are done by
qualified welder who are certified to perform the required type of welding;

h. 100% check on welders and welding procedures to ensure that only qualified
welders are being used (knowledge and skills match and welding certification
being held) and that correct welding procedures are followed;

i. Check material preparation, cutting, fit-up and welding to ensure that they are
in compliance with drawings;

j. Check and expedite progress of fabrication, assembly and erection of the

crane;

k. Verify and witness of rework process on

l. Check qualifications of non-destructive examination (NDE) operators and

procedures;

m. Witness all NDE using ultra-sonic, magnetic particle, liquid penetrant, etc. as
required;

n. Check all radiographs;

o. Carry out witness checks randomly to confirm results;

p. Raise Non-Compliance Reports (NCR) if non-compliances are detected;

q. Visual inspections with necessary tools on edge preparation, pre-heat, post-

heat of all weldment on the structures;

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Chapter - Technical Specifications & APPENDIX A - General scope of inspection in the Inspection Test Plan (ITP)

r. Check assembly and mounting of all mechanism against proper engineering

practices;

s. Check material surface preparation and coating of paint;

t. Verify proper application of paint to meet paint manufacturer’s and PSAI/PSA’s

specifications;

u. Check electrical wiring for proper installation and termination;

v. Witness high-tension and insulation tests;

w. Witness of hydraulic system flushing prior to start up and commissioning.

x. Witness of hydraulic torque wrench calibration and consistency.

y. Witness all shop tests of motors, reducers, hydraulic systems ad sub-

assemblies;

z. To issue reports for poor workmanship, defects, malpractice of Crane

Manufacturers and/or their sub-contractors and to forward copies of such
reports to PSAI/PSA’s Superintending Officer;

aa. To issue and ensure Crane Manufacturer clear punch-lists for non-compliance
to the bid specifications;

bb. To witness and verify of mechanical rework if the component does not meet
technical specification.

cc. To conduct final checks on the quality of welds, painting, installation of sub-
structures, sea-fastenings, etc. before the equipment is shipped out to the
erections site;

dd. To check for the proper storage and handling of purchased equipment and
components; such as gear reducers, cables, electronic panels, and especially
watch out for water-ingress in these critical components which will result in
corrosion or degradation in oil quality;

A2. The checking of the abovementioned critical items shall be regularly and thoroughly
reported in the reports submitted to PSAI Terminal (Refer to Section 4.3.1).

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