QATAR

PROJECT

MANAGEMENT

PROJECT EXECUTION STRATEGY

FOR

BARWA CITY PROJECT- PHASE 2

OWNER
BARWA CITY COMPANY
P.O.Box 27777, Doha, Qatar.

PROJECT MANAGER
QATAR PROJECT MANAGEMENT
P.O.Box: 27711 Doha.

Document reference No: QPM/PC/BCP2/PES001 Revision: 0

QPM CEO

Date: 27 th October 2008

SIGNATURE DATE

AUTHORIZATION
Nasser Abdulrahman Kamal

Barwa City

CEO

Nasser Ali Al-Mawlawi

QPM/PC/BCP2/PES-001

Table Of Content
1- Introduction
23-

Project Description/Background Scope of Work & Responsibilities

4- Project Management Objectives 5- Project Quality System [PQS] 6- Project Organization

7-

Project Communication/Interfaces

8- Contracting Strategy 9- Project Control & Systems 10- Project Completion & Handover 11- Appendices 1.Locality Plan & Perspective 2.Phase-1 Master Plan & Phase 2 Concept

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3.Project Take Over Agreement 4.Project Organization Chart

5.

Project Schedule- Level 1 ( Preliminary )

1-Introduction
This project execution strategy (PES) for phase 2 of Barwa City Project is considered to be the projects highest level document that describes the project and outlines its key implementation strategies. It also describes the key relationships between all concerned parties such as QPM, Barwa and applicable Barwa subsidiaries and the expected integration and support for the success of the project. This PES is a live document and will be updated/adjusted (amended) as necessary to reflect the applicable and agreed strategies for execution of the project at various stages. This PES is a controlled document .Therefore, any changes or revisions will be subject to the projects change control procedure and QPM /Barwa City managements approvals. The PES sets the framework within which each work area will operate and develop its more detailed plan of work execution. While the project team is expected to operate within the strategy set out in this document, the PES should not restrict it from seeking innovative and enterprising ways of executing the project that assures delivery of the key objectives in the most efficient manner. The PES provides direction to the project team on the strategy and rules by which the project will be executed. It has important sections that describe the relationship and interaction between QPM and others that ensure alignment and integration of plans which is essential to ensure project success and realizing the value delivery expected from the investment.

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The PES also describes the relationship amongst all concerned internal and external parties and the management/control function to be exercised by them. It sets the standards for project reporting, communication processes and the financial/authority approval structure. The PES sets a clear framework for each aspect of project implementation. However it is not intended to prevent any part of the project from seeking the processes and operating methods that are most suited for the project. Several aspects of project implementation and control systems need to be finalized prior to execution phase so that processes and control systems are well established and operational by the time the Master Plan is approved and the project is ready to commence implementation. The Projects Director under the leadership of the Chief Operating Officer (Projects) is responsible to implement the content of this document once approved, ensure revisions/updates when necessary and also ensure that the designated Project Manager is adhering to its direction/guidelines. The PES shall have its revision index, date and necessary approvals from QPM operating and executive management.

2- Project Description/Background
Barwa City is the first one of its kind as a residential complex that gives home owners, investors and the State of Qatar a distinctive and unique housing solution. It is being built on a sprawling 2.7 million square meter land located in Abu Hamour Doha. The site may be described as being bounded North East of industrial area along East West corridor road at the South and Muntazah road at North. The topographical features and actual setting out of the project is situated on the locality plan and perspective given under Appendix 1 for reference. Barwa City is owned by Barwa City Company, hereafter refers to as Owner. The development of Barwa City is made into 2 phases, namely phase 1 and Phase 2.

2.1

Phase 1
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Phase 1 is currently under implementation and due to be completed by end of 2010. It consists of 3 packages :-

Package 1 : relates to all enabling works to both phases of the project. Package 2 : relates to 128 residential buildings (5968 infrastructure, network, primary sub-stations, pump station etc., units),

Package 3 : relates to all amenities such as mosque, health club, shopping mall, multipurpose building, bank and nursery (two each ). Other utility compounds such as cooling, sewage treatment, telecoms, etc are under implementation through Barwa subsidiaries ( Barwa Utilities, Technology, Materials, etc.,). In addition, design of all peripheral roads is in progress and execution of this part will be part of phase 2 in coordination with Ashghal.

2.2

Phase 2

Phase 2 of Barwa City Project (subject of this document) is at its conceptual stage which includes residential units, 250 bed hospital and amenities such as schools, nurseries, shopping malls and hotel. A master plan of phase 1 and a conceptual perspective view of phase 2 are attached under Appendix 2 for reference. In accordance with Barwa Real Estate Companys directives as per Resolution No: 2008/60 dated Oct.6.2008, QPM shall take over the complete Project Management and execution of Barwa City Phase 2 development utilizing its professional resources and project management capabilities. This project management approach gives Barwa City Company a single point of contact and accountability, where QPM, as the Project Manager procures, contracts, manages and coordinates the services of designer, general contractors, specialist consultants, government authorities and others concerned through out all phases of project development.

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Barwa City Company and Qatar Project Management have already signed a Project Take Over Agreement, copy of which is attached in Appendix 3 for reference. 2.3 Project Schedule The preliminary schedule completion date for phase 2 development is expected by December 2012. However this is subject to further review as more realistic information are available through the design development stage. A realistic schedule completion date will be mutually agreed by the parties at the point when detailed design is sufficiently completed and bill of quantities and work packages are available. 2.4 Project Budget The preliminary conceptual budget for phase 2 development is estimated at QR 7 Billion. This budget is subject to further review upon completion of schematic drawings or when the design, drawings and specifications are sufficiently
completed. Based on this available realistic information, a more definitive Project Budget will be mutually agreed by the parties with conventional contingencies of within + 20% accuracy. 2.5 Challenges

Phase 2 of Barwa City Project will face several contractual and technical challenges that shall be taken into consideration prior to project implementation. It is strongly believed that these challenges may have major impact on schedule and cost if not handled properly. These can be summarized as follows:

-environmental clearance and approval by the Supreme Council of Environment and Natural Resources (SCENR) -master plan approval by all concerned parties (education, health, municipality, public works, etc) -peripheral and main access roads to Barwa City ( Ashghal ) -external incoming utility services (power, water, Qtel, commercial avenue, Ashghal, etc -interface management and coordination amongst all parties operating in the areas of phase 1 and 2

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-traffic constraints -completion dates of phase 1 and 2 -current industry constraints and market limitations

3- Scope of Work & Responsibilities

QPM provides total project management for all phases of Barwa City Phase 2 development which include review of Master Plan, development of conceptual/feasibility study, Architectural & engineering design, construction, start up commissioning and hand over to Owner. QPM duties & responsibilities towards the Owner include faithful and professional representation and advice on all project matters to ensure timely completion of the Project, within agreed budget, meeting all quality requirement in accordance with this PES.

QPM shall have the following responsibilities: Review of Master Plan Development of Project Execution Plans [PEP] Development of Scope of Works and Tenders/contracts
Selection and assignment of project team members

Project Mangement:-Programme Management [ Planning & Scheduling ] -Project Control [ Budget estimate, Administration, documentation etc., ] -Design Review and Management -Cost Management and Quantity Surveying -Contracts Administration

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Risk Management/Value Engineering Construction Management Claims and arbitration management, if required. Project Hand Over and close out.

Barwa City, being the Owner, shall have the following obligations and responsibilities:

Provide/hand over full information regarding his requirement for the project, such as, objectives, project intent, preliminary budget breakdown, guideline & procedures and other project requirement etc., Designate a representative who shall be fully acquainted with the project and has the authority to interact with QPM as required. Furnish all necessary site survey datas, soil reports and subsurface investigations, legal limitations, interfaces between phase 1 and 2 etc., Furnish all drawings, specifications and technical data necessary for the execution of Phase 2 work. This is particularly essential for matters relating to interfaces between phase 1 and 2. Provide necessary insurance for the project Transfer to QPM available project execution resources , if any

4-Project Management objectives

QPMs mission is to bring this venture to a successful conclusion as specified, safely, on time, within budget and quality. Accordingly, Barwa City Project Phase 2 shall be planned, designed and constructed to satisfy the following criterias/objectives:

The project should serve the purpose as specified by the Owner. The project should be constructible by known techniques and with available materials, labor and equipment within time acceptable or specified by the Owner.
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The project should be capable of withstanding the element and normal usages for a reasonable period of time. Project when completed, should be at minimum cost for the purpose intended or the best for money spent as required by Owner. To the extent possible the project should be managed efficiently so that Owner may enjoy the economic benefits of minimum design-construction time Project should be designed and constructed to meet pertinent local authority requirement, conform with generally accepted engineering standards and avoid endangering the health and safety of construction workers, operators of the project and the general public. Project should not adversely affect the environment or the well being of adjacent community. Project when properly operated should be frugal in their consumption of energy. To the extent possible, project should be visually pleasing.

5-Project Quality Systems [PQS]

QPMs Project Quality System [PQS] will be used to manage all health, safety, environment and quality aspects of QPM operations. It is being designed to ensure that the likelihood of People, the wellbeing, the assets, the environment and business performance being adversely affected as a result of QPM activities is reduced to as low as reasonably practicable (ALARP). The QPM PQS shall define the strategies, systems, and responsibilities for effectively managing all related aspects. It shall outline relevant procedures and practices for most of QPM activities and operations with adequate mechanisms for implementation, monitoring and review. This Project Execution Strategy refers to major corporate and project documents that are to be prepared by the project team to provide detailed and specific guidance for the management of the PQS which can be summarized as follows:

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-HSE Management Plan -Quality Plan -Environmental Impact Study -Risk Management and Mitigation Plan -other project specific procedures and work instructions As part of QPM yearly PQS objectives, the project will establish its targets to improve key performance indicators in HSE through the life of the project.

6- Project Organization
Based on the scope of services and responsibilities the Barwa City Phase 2 Project Management Team will be sized and its organization structure will be appropriate for the following: -each major contract or work achievement area will have a Package Manager identified by the Project Manager who will carry single point responsibility for delivering its objective being technical, HSEQ, commercial ,cost or schedule. -assign and optimize use of resources to be deployed by the call off consultants such as project management/construction management, quantity surveying consultant, legal, finance, etcand create the best harmony amongst them. -Key relevant personnel from Barwa City, if available, will be integrated into the project organization for efficient interfaces. -monitor performance of consultants, contractors and any other contracting parties, and ensure that they fulfill their obligations under the contracts but the Package Manager will not duplicate any work that contractors/consultants/call off people are obliged to deliver to QPM. -the Project Control organization within QPM will develop and maintain the processes, systems and tools for project management and make them readily available to the Project Manager/Package Manager to enable them administer their work responsibilities.

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-the Project Control functions will provide the service of integrating the input from each work area to establish the overall project monitoring and reporting. The project organization chart for Barwa City Phase 2 Project given under Appendix 4 for reference shows the first line positions of the project team and QPM will define required resources and update consequently the organization chart as and when necessary. A project management services contract(PM/CM) and a QS contract are being concluded by QPM in order to support QPM project team in managing and administering the various contracts and purchase orders that are intended to be let under this project. Members from QPM, PM/CM and QS organizations will form a fully integrated project team under the leadership of a QPM designated Project Manager who will take the Barwa City phase 2 to 100% and timely completion stage. In case of special expertise requirement not available within the PM/CM and QS consultants, this will be provided through separate agreements with companies supplying such services following normal competitive tendering process.

7-Project Communication/Interfaces
Barwa City is the Owner of the Barwa City Project with its two phases and QPM has been appointed as the Project Management Company responsible for project management, services and execution till complete and formal handover of all facilities to Barwa City. This arrangement gives the advantage of combining skills of development, operations, technical and project execution experience available with all parties. Such an advantage can be best realized by their integration through an efficient and timely communication and approval process. Managing this well is with the objective of ensuring an efficient and prompt project. Therefore, a clear and good quality of communication and reporting system is an essential process of paramount importance between all parties involved in the project. In order to achieve the above, a specific Project Communication Plan will be developed in line with the PQS with the objective of low volume, high quality information provided at the correct time that is relevant and mature for the purpose it is required to serve. QPM project management team will ensure a good quality and timely communication (formal and informal) with all specialists, management and Barwa City representatives.

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To facilitate this process, there will be clearly identified focal point in each organization that will take on the single point responsibility for operating and maintaining the intended high quality communication process. Each focal point will ensure that appropriate processes and communications operate within their respective organizations such that key milestones on the project are achieved as routine and in the most time effective manner. It is expected that such focal point will attend the regular meetings to be called for by QPM to help facilitating the project progress and approval processes. Workshops with the aim to introduce and improve the communication process will be arranged by QPM as and when required. Project reporting will be set up to assist the communication objective described above. The project internal reporting will be in accordance with what is specified for each contract but is normally expected to be a weekly update of progress with detailed monthly comprehensive report on project performance. Reporting outside QPM will be as agreed as part of the communication plan but in any event at least once a month. The monthly report while covering all aspects of the project, will focus on high quality information that describes the key events, main achievements and main areas of concern. HSE reporting will follow the same frequency as described above except if a significant health, safety or environmental accident occurs, then immediate reporting of this will be initiated as per procedures.

8-Contracting Strategy
The detailed contracting strategy for Barwa City Phase 2 Project will be developed under a separate document called Contracting Execution Plan. It shall evaluate the optimal approach from the balance of the expected state of the service industry market, the project needs and the preferred method of managing interfaces and administrative processes. The following macro-level guidelines will be considered in preparing the contracting execution plan: -the Projects Director will be responsible as QPM representative of all contracts or purchase orders planned to be issued under this phase 2.

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-the Projects Director will appoint the Project Manager and package managers who will develop, within the governing strategy, a contract plan to further detail the development and operation of that particular contract or purchase order[PO]. The Project Manager will be the single point responsible person for achieving the deliverables under that contract or purchase order including technical, commercial, schedule, etc -all contracts will include the mechanisms and performance that recognize the need for flexibility to respond to unplanned events that are inevitable. The risks the contractor is required to carry should be compatible and reasonable with such flexibility needs. -as the norm, the principle for contracting will recourse to competition through tendering or quotation requests. It will ensure that each contract is developed on the basis of competitive tendering by a pre-screened set of contractors/suppliers who are assessed to be qualified and experienced to deliver the works/services being sought. The pricing structure shall also reflect the above guidelines from practical and flexibility viewpoints. -an adequate number of contractors/suppliers will be screened for each contract/PO to ensure competitive bids will be received. However, the project will exercise judgment to limit the bid list to a reasonable number and as a general rule, a bid list of less than 3 will be considered exceptional and require strong reasons to support. Negotiated single source alternative shall also be exceptional, duly justified and remains subject to management approval. Bidders shall be on equal terms and get equivalent chances. -development for each contract will place appropriate requirements on the contractors to ensure fair and equal opportunity to and to encourage participation by local industry.There is a high economic incentive to deliver the project as early as possible and a contract plan will look for opportunities to expedite the critical path while still safeguarding the commercial management of the works/services. -subject to further review and confirmation at a later stage once concept is developed, the following contracting structure will be implemented: a- Concept Master Plan Consultancy Services Contract: lump sum /rates b- Environmental Impact Assessment Study Contract: lump sum/rates

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c- Geotechnical/topographical survey Contract: lump sum /rates d- Design, Architectural and Detailed Design Contract: reimbursable for initial conceptual design phase and lump sum/rates for detailed design e- Interior Design for Special Applications or facilities (Hospital + Hotel): lump sum, probably design & build. f- Construction Contracts, fully inclusive of shop drawing design, supply, install, construct and commission all on lump sum basis for the following individual packages: f-1: Residential Units f-2: Hospital and Hotel f-3: Amenities (schools, shopping malls, nurseries, etc) g- Operators for the entire Barwa City, Hospital and Hotel. Note: the project team should further assess the possible incentive schemes such as risk/reward mechanism, opportunity for improvement (OFI) and others and amend this contracting strategy if necessary after management approval.

9- Project Control & Systems

The total current budget of Barwa City Phase 2 Project is QR 7 Billion and initial completion date shall tentatively be achieved in December 2012. All possible ways of accelerating the execution and reducing the critical path will be investigated by QPM and corrective actions will be implemented. The tentative level 1 schedule is attached in Appendix 5. This plan, in the absence of an approved master concept, has been made based on key milestones, above proposed contracting strategy and some benchmarks gained from similar past/recent experience. It will be further reviewed/ confirmed at an appropriate stage later. A project capital and operating cost estimate will be prepared at the Concept Master Plan stage. Necessary risk analysis, PEER reviews, value engineering

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and cost reference checks will be conducted in order to support and confirm project economics. The Projects Control Manager, on behalf of the project management team will be the custodian of the project cost and will coordinate its updating every month. However, project performance against the plan, its updating and development of any necessary recovery or contingency plans will be the single point responsibility of each Package Manager under the overall leadership of the Project Manager. The project cost estimate will be broken into several cost centers and AFEs that reflect the work breakdown structure (WBS) and responsibility centers for delivering the various parts of the project. The project will establish a comprehensive project performance and monitoring system against which it will manage and report performance to internal and external parties. The schedule and cost reference plan will remain unchanged throughout the project and form the backdrop against which current schedule and cost plans will be compared. In addition, the project will identify performance indicators that are critical to successful delivery of this project and set up monitoring and reporting systems as the management tool for the project team. The management of changes is also a key issue under the control system that will be put in place for Barwa City Phase 2 Project. The project will prepare its Change Management Plan and any changes will be subject to a formal change control system operated by the Project Manager who will develop an appropriate change control process to direct the project team members. Budget and cost control will be developed and managed according to approved internal procedures prepared by the Projects Control Manager including budget breakdown structure, multi-annual budget, follow up of commitment, value of work done, expenditures and payments.

10- Commissioning & Handover

The project will prepare its Commissioning and Handover Plan from QPM to Barwa City which will highlight the principal requirements of the completion stage, commissioning program and to ensure that the commissioning and

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operational and maintenance requirements are incorporated into the overall concept, schematic and detailed engineering phase. Involvement of operators (entire city, hospital, hotel) at the early stage of the project is very essential to the successful completion of the project which will avoid unnecessary changes and re-works after construction. The operators shall also be involved in selecting the various equipment and facilities to be procured for the project. Barwa City Company, being the Owner of the project will have to establish its team to whom the project will be handed over on completion by QPM. Their involvement shall be at an early stage of the project to ensure enrollment and involvement to the important decisions so that the handover of the new facilities can be completed smoothly. The project will also ensure that the following aspects are fully and adequately addressed: -as built documentation -operating and maintenance manuals of the various equipment -fumigation and health certificates -preservation and housekeeping -clearance of punch list items and reservation -commissioning, testing and certification record books -Project final and close out report

11-Appendices
1. Locality Plan & Perspective 2. Phase-1 Master Plan & Phase-2 Concept
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3. Project Take Over Agreement 4. Project Organization Chart 5. Project Schedule-Level 1 ( Preliminary )

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