WHAT IS YOUR PROJECT IMPLEMENTATION PLAN?
Tony Pinto
Technical Sales Manager - North America | Bulk Materials Handling | Ports & Terminals | Mining | Industrial | Quarry
INTRODUCTION
I have previously written about the need to have in place a Project Execution Plan (PEP) - see https://www.dhirubhai.net/pulse/what-your-project-execution-plan-tony-pinto to support the development of an engineering led type of project and in the closing pages of that document, I referred to the need to develop a Project Implementation Plan (PIP).
The main objective of sharing this document is that I have a strong belief in sharing knowledge to allow people to develop and this document is a good framework for those working in the business development space with ‘engineered products’.??
CONTENTS
1.?????????PROJECT IMPLEMENTATION PLAN (PIP)
1.1.??????Content of the Project Implementation Plan
1.2.??????Construction of the PIP document
2.??????????(TYPICAL) IMPLEMENTATION PLAN
2.1.??????INTRODUCTION
2.1.1.???Overview of the Project Implementation Plan
2.1.2.???Content of the Project Implementation Plan
2.1.3.???CLIENT Project Organization
2.1.4.???Reference Documentation
2.1.5.???Project Set-up
2.2.??????SCOPE OF WORK
2.2.1.???General Description
2.2.2.???Scope of Work
2.2.3.???Battery Limits
2.2.4.???Responsibility Matrix
2.3.??????PROJECT MANAGEMENT
2.3.1.???Management Assurance
2.3.2.???Project Set-Up
2.3.3.???Project Communication & Correspondence
2.3.4.???Project Filing System
2.3.5.???Project Reporting
2.3.6.???Management and Technical Assurance Framework
2.3.7.???Management Assurance Roles and Responsibilities
2.3.8.???Squad Check
2.3.9.???Review and Approval
2.3.10.?Control and Revision of Plan
2.4.??????PROJECT ORGANISATION
2.5.??????PROJECT CONTROLS
2.5.1.???Key Controls Activities for the Project
2.5.2.???Cost Engineering, Cost Accounting and Administration
2.5.3.???Project Change Control
2.5.4.???Project Control Systems
2.6.??????QUALITY MANAGEMENT
2.6.1.???Deliverables
2.7.??????SCOPE OF SERVICES
2.7.1.???General
2.7.2.???Reference and Standards
2.8.??????PLANNING
2.9.??????OFF-SITE CONSTRUCTION/MANUFACTURE
2.10.????QUALITY ASSURANCE AND CONTROL
2.11.????DELIVERY AND TRANSPORT TO SITE
2.12.????CONSTRUCTION
2.12.1.?Construction Organization and Responsibilities
2.13.????PROCUREMENT
2.13.1.?Strategy
2.13.2.?Implementation Phase
2.14.????FABRICATION
2.15.????CONSTRUCTION MANAGEMENT
2.16.????SAFETY, HEALTH AND ENVIRONMENT (SHE)
2.16.1.?Summary
2.16.2.?Health, Safety Environment and Community (HSEC) Management
2.17.????COMMISSIONING PHILOSOPHY
2.17.1.?Objective
2.17.2.?Planning
2.17.3.?Classification of Remedial Work
2.17.4.?Lockout and Legal Responsibilities
2.17.5.?Modification Procedure
2.17.6.?Submission of Requests
2.18.????PROJECT CLOSE-OUT
1. PROJECT IMPLEMENTATION PLAN (PIP)
The PIP is a process that describes in greater detail many of the elements touched in the PEP.?The PIP should describe the project management assurance framework for the consistent formulation, control and successful delivery of the ‘engineered solution’ for the project in consideration.
The purpose of the PIP is to provide the project team with the essential project information, and it details how the project will be performed during the execution phase which involves the engineering detailed design, procurement, manufacture, construction and commissioning of the equipment.
The PIP will assist the project managers, discipline managers and project personnel with an understanding of the consistent, effective and organized execution of the project through the application of best practice project management principles, procedures, guidelines and standards.
Through the application of the PIP, effective delivery of the project should be achieved in accordance with the following:
1.1. Content of the Project Implementation Plan
The PIP should address the following key project elements:
1.2. Construction of the PIP document
This document can be anything from 50 to several hundred pages long if you consider projects that range from e.g., a conveyor or a stacker to an aircraft, or an oil tanker or even a power plant.?The greater the risk, the greater the detail and with that, the greater the scrutiny of every component, its subcomponent and related areas.?With this comes a team of inspectors and document control becomes the order of the day and it carries an associated cost to ‘implement, manage and maintain’.
As such, you will need to formulate an ‘index’ that is suitable for the product and for the CLIENT but make sure you recruit suitably qualified people to manage and drive this process as this will then become the new norm within your company and the culture has to adapt to this ‘new norm’.
For this new article, I have chosen to provide a ‘typical’ PIP that I have used before in previous tenders that would then be fined tuned by the Project Manager at project award stage but at least it provided the CLIENT to review a proposed framework for discussion and evaluation.?
Now, there are many other templates in the market and this one may or may not be of value but hopefully, it will trigger some thought processes for discussion.
The main objective of sharing this document is that I have a strong belief in sharing knowledge to allow people to develop and this document is a good framework for those working in the business development space with ‘engineered products’.?
The background to this particular (and typical) PIP was that it was prepared to support a tendering process for a ship loader in a port environment and it was a requirement to submit such a document as part of the adjudication process.
As such, do not just copy and paste without first aligning this proposed structure to your companies policies and procedures and ensuring that the company can deliver on many of the listed items.
2. (TYPICAL) IMPLEMENTATION PLAN
2.1. INTRODUCTION
2.1.1. Overview of the Project Implementation Plan
This (typical) project implementation plan (PIP) describes the project management assurance framework for the consistent formulation, control and successful delivery of the materials handling system for the iron ore terminal at Port ABC.
The purpose of the PIP is to provide the project team with essential project information and it details how the project will be performed during the execution phase which involves the engineering detailed design, procurement, manufacture, construction and commissioning of the equipment.
The PIP will assist the project managers, discipline managers and project personnel with an understanding of the consistent, effective and organised execution of the project through the application of best practice project management principles, procedures, guidelines and standards.
Through the application of the PIP, effective delivery of the project should be achieved in accordance with the following:
2.1.2. Content of the Project Implementation Plan
The PIP will (or rather, should) address the following key project elements:
2.1.3. CLIENT Project Organization
?A CLIENT organizational organogram needs to be developed.
(Internal note in that this organogram should show the interface between the Client team and the Project team.)
2.1.4. Reference Documentation
The project documentation provided as part of the enquiry is:
2.1.5. Project Set-up
The project office, project team, resources and services are situated at the CONTRACTOR offices, with on-site facilities at the Terminal on Port ABC being established as and when required. The anticipated start date is [insert date].
Project representatives of CLIENT can be accommodated at CONTRACTOR’s project offices for the duration of the project.?A task team approach will be adopted to ensure optimum communication among the project team members and strict adherence to the schedule.
CONTRACTOR will appoint a project manager to manage all aspects of the project and will report into the overall CONTRACTOR project team structure.
An experienced project team, reporting to the CONTRACTOR project manager, will perform the services which include the necessary engineering resources to deliver the project.
On contract award, CONTRACTOR will initiate an alignment meeting between the project team and CLIENT representatives to be attended by key project personnel. Prior to the alignment meeting all key personnel will be given the opportunity to review relevant project data to make the meeting as productive as possible. This will grant the CLIENT team the opportunity to present and explain the work done to date on the project.
Any change or variation to the original scope that may affect the schedule or cost will be managed in accordance with the Change Management Procedure and submitted to the Client’s for approval.
The attached organograms (develop and attach) depict how the project structure will be set up.
The Project team will focus on delivering the project under the following guiding principles:
2.2. SCOPE OF WORK
2.2.1. General Description
This scope of work is the Client’s requirement for the design, manufacture, erection and commissioning of the following:
2.2.2. Scope of Work
Following the detailed scope definition, as defined and agreed to by all parties, CONTRACTOR will undertake the execution of the project. This will include:-
2.2.3. Battery Limits
As described under scope of supply section in offer.
2.2.4. Responsibility Matrix
The primary implementation responsibilities of the parties in respect of the contract are hereby summarized in the attached table:
2.1. PROJECT MANAGEMENT
2.3.1. Management Assurance
Management assurance within the project delivery environment is a necessity and must:
Project Management assurance must comply with the following Project guidelines:
2.3.2. Project Set-Up
During this initial phase, the project team, resources and services will be mobilized.?Necessary information will be distributed and project procedures, such as this project implementation plan, will be issued.
Early on in the project a kick-off meeting involving key CLIENT and CONTRACTOR personnel will be conducted.?At this meeting a good understanding of the scope definition and deliverables will be achieved.?The kick-off meeting will be followed by an alignment meeting / workshop.
The required and agreed meeting / review dates will be as reflected in the Project calendar.
Kick-Off and Alignment Meetings - the kick-off session will be held according to the CONTRACTOR procedures.?At the kick-off meeting the following will be reviewed and discussed:
2.3.3. Project Communication & Correspondence
All communications, including emails between the CLIENT and CONTRACTOR shall be either copied or directed to the CONTRACTOR project manager.
Communications in writing which may impact on the contract shall be issued in the form of faxes or letters.?
The originator of an outgoing communication document (including memoranda, e-mail, telephone call notes, minutes of meetings, faxes) is responsible for determining distribution and assigning file numbers.
All formal/contractual correspondence addressed to the CLIENT (reports, recommendations, requisitions, invoicing etc.) shall be prepared for the signature of the CONTRACTOR Project manager and addressed for the attention of the CLIENT project manager.
Other communications such as minutes of meetings, inter-office memoranda, telephone call notes and non-committing correspondence (except as directed otherwise in the procurement procedures) to external parties are signed by the originator with copies to the CLIENT project manager and the CONTRACTOR project manager whenever necessary.
Separate Subjects
Written Correspondence
Engineers may correspond informally to facilitate the design process but all formal (numbered) correspondence will be between Project Managers.?Written correspondence shall be used for all contractual communication.?Letters, faxes, E-mails and transmittals may be used in accordance with the following guidelines:
Numbering of Correspondence
The correspondence e.g., letters, faxes, e-mails and transmittals between parties shall be consecutively sequence numbered in accordance with the CONTRACTOR QMS numbering system.
The CONTRACTOR Project Secretary shall maintain an appropriate correspondence register of all correspondence between CONTRACTOR and the CLIENT and shall be responsible for ensuring the sequential issuing of correspondence numbers to the CONTRACTOR Project Team.
Times of Response
Both parties undertake to respond to one another’s correspondence within 5 working days unless timorously requesting and agreeing to an extension of such period on an exception basis.?This response period equally applies to all CONTRACTOR documentation issued for comment and approval, except for Early Warnings and Compensation Events.
Supplier documentation will have a 10-day turnaround time and the review of these documents will be done in parallel between CONTRACTOR and the CLIENT if required.
Telephone Calls
Urgent matters shall be dealt with by e-mail in preference to telephone, so far as practical.?CONTRACTOR shall confirm by e-mail as applicable within 3 working days, all verbal and telephone calls from the CLIENT should be held on record by the Project.
Courier Services
Urgent correspondence to the CLIENT that is unsuitable to e-mail or fax, shall be sent by internal Messenger or reputable courier service.?CONTRACTOR originators shall liaise with the CONTRACTOR project secretary who in turn will obtain approval from the Project Manager for any special delivery requirements.
Sequence Checking
The respective project secretaries shall, on a weekly basis, check their incoming correspondence registers and will notify one another of any missing items, which shall then be promptly reissued against the original correspondence sequence number.
Minutes of Meeting
Monthly Project Progress meetings will be held between CONTRACTOR and the CLIENT.?Monthly Engineering and Progress co-ordination meetings will be held internally with the CONTRACTOR team.?Minutes of all formal meetings shall be prepared and issued by the CONTRACTOR project secretary.?Where necessary the draft minutes shall be circulated for comment/approval.?Draft minutes shall be issued within 2 days and approved within 5 days of the applicable meeting.
The following typical numbering system shall be applied to minutes to CONTRACTOR meetings with the CLIENT:
The following numbering system shall be applied to minutes of CONTRACTOR internal meetings:
CONTRACTOR Correspondence
All written correspondence within CONTRACTOR shall be conducted either by Internal Office Correspondence (IOC) or by Contract Engineering Data Sheet (CED) in accordance with standard CONTRACTOR procedures and sequentially numbered.?IOC communication may be conducted via internal E-mail.?All E-mails sent (whether internal, to the CLIENT, or to others) must be recorded in / copied to the E-mail Vault.
After approval by the discipline Lead Engineer, Engineering Manager or Project Manager as appropriate the IOC/CED originator shall ensure that the correct distribution within Johannesburg is completed promptly.
The following sequence numbering system shall apply with the IOC and CED registers being maintained by the CONTRACTOR project secretary:
All IOC and CED correspondence having a potential cost or schedule impact to the Project shall be approved by the Project Manager prior to issue.?In any case all IOC or CED correspondence shall be copied to the Project Manager and Project Engineer who will ensure in turn that a copy is put into the master file.
CONTRACTOR Project Instructions
Project instructions of any kind will be issued by the Project Manager as may be required from time to time.?A project specific memorandum shall be used for this purpose and shall use the following sequence numbering identification, obtained and logged by the Project Secretary:
Project instructions involving procedures shall be approved by the Quality Assurance Manager before issue.
2.3.4. Project Filing System
Communication documents will be filed electronically on the project directory and a hard copy kept in the project filing system.?
Each area will be responsible for managing the project file hard copy and electronic record of all official communications.
All incoming documents are logged by the respective project secretaries and entered into the electronic filing system. The documentation is to be filed according to the project file index under the following main headings:
2.5.3. Project Reporting
Weekly Man-hour Reports
A weekly Man-hour report roster will be maintained by Cost Engineer for internal purposes.
Project Progress Report
The CONTRACTOR project manager shall keep the CLIENT informed as to the overall status of the work.?Progress reporting to the CLIENT will be in the form of monthly progress meetings and issue of monthly progress reports. The monthly reports shall contain the following:
Attachments:
Project Program
The Project Program shall be updated internally monthly, indicating actual progress, for distribution within CONTRACTOR for schedule control.?It shall be formally issued to the CLIENT on a monthly basis as an attachment to the Project Progress Report.
Closeout Dates
The monthly project closeout reporting date is the TBA of each month and the report will be issued to the CLIENT on the TBA day of the next month.
CLIENT progress meetings will be held monthly.
CONTRACTOR Invoicing
Monthly pro-forma invoices based on approved timesheets and disbursements to be submitted for Assessment by the 16th of each month.
2.3.6. Management and Technical Assurance Framework
The objective of management and technical assurance should be to ensure that the likelihood of significant project control failings or weaknesses occurring is minimized.?Early, rather than late, warning of potential control failings and weaknesses should also be provided.
In keeping with this, management and technical assurance within the project delivery environment is a necessity and must:
2.3.7. Management Assurance Roles and Responsibilities
While the emphasis of this framework is on project governance it is vital that all stakeholders are aligned with the objectives and deliverables of the project.
CLIENT
Strategic direction through:
CONTRACTOR
2.3.8. Squad Check
Squad checking of documents and drawings will be controlled and coordinated by the document control discipline.?Turnaround time for squad checked documents is five days.?A central facility will be provided at CONTRACTOR project office to afford all the disciplines and CLIENT personnel to review and comment on drawings prior to issue.?Review and comments will be recorded and documented to support project governance and requirements.
2.3.9. Review and Approval
Certain technical documents require professional or technical approval by CONTRACTOR before the project team:
The reviewer and approver must satisfy themselves that:
The signature verifies that the CONTRACTOR technical discipline engineer has accepted responsibility for and on behalf of CONTRACTOR in their capacity as a technical specialist.
The technical documents produced by the project team, which require formal approval by the technical disciplines, shall typically include the following:
Once documents are ready for issue, document control will issue them to the Client.?Comments from the CLIENT are due back in five working days from the issue date.
2.3.10. Control and Revision of Plan
The CONTRACTOR project manager is responsible for the preparation and control of this PIP.?Hard copies will be provided to the team.?Electronic copies may be provided to individuals on a need-to-know basis and shall be considered as uncontrolled copies.
The CONTRACTOR project manager will issue revisions to the plan when necessary.?Any changes to the plan shall be dealt with in accordance with the project change control procedure.
2.4. PROJECT ORGANISATION
The project organization is illustrated in the offer.
2.5. PROJECT CONTROLS
Project Control functions and activities comprise cost estimating, planning and scheduling, cost engineering, forecasting and trending, project administration and coordination of project progress reporting.?
2.5.1. Key Controls Activities for the Project
Controls activities include:
2.5.2. Cost Engineering, Cost Accounting and Administration
The control and management of costs encompasses two closely related disciplines, cost engineering and cost accounting.?The marriage of the two disciplines results in cost control.?The cost engineering function is essentially predictive, dealing with estimates and forecasts based on engineering drawings and specifications, and tracking work to completion.?Cost accounting is essentially retrospective and deals with work accomplished relative to the contractual terms and conditions and with the consequent invoices, cash requirements and payments.?
Manpower control employer costs and reimbursable costs will be monitored closely to ensure the budget is controlled and not exceeded.?
2.5.3. Project Change Control
A policy of no surprises is to be maintained.?Early identification of change is to be managed and channeled for approval.?A scope change register shall be maintained at all times by CONTRACTOR.
The control of changes to the project scope is a critical area of the overall management and formal procedures relating to change control will be adopted for the project.?CONTRACTOR will submit change notices for CLIENT approval whenever the project scope or schedule affects the planned performance of the services.?Change notices will be reviewed and discussed at regular intervals in the project life.?The project budget and forecasts will be revised monthly to reflect approved changes.?The management of project scope changes will be conducted in accordance with the project change control procedure.
2.5.4. Project Control Systems
CONTRACTOR shall utilize the most appropriate systems to complement the scope of works and management expectations.?It is envisaged that the main elements will include:
2.6. QUALITY MANAGEMENT
Each project team member is responsible for performing work in accordance with quality standards.?This is achieved by utilizing standard Contractor work practices, and then selectively auditing those activities for compliance.
The Contractor will perform the work under its quality management system and quality assurance program, which is consistent with (list relevant standards).
The Contractor quality systems and documentation systems have been well established and refined in considerable detail, with formal procedures and work instructions being used for all work undertaken.
The quality management systems are subject to regular audit, internally.?Adherence to the quality management systems is mandatory for the management and all personnel employed by the company.
The Project will be managed in accordance with the Contractor accredited QA procedures.
The plan will cover such aspects as:
2.6.1. Deliverables
2.7. SCOPE OF SERVICES
2.7.1. General
The following sections of this document outline the scope of services to be provided by CONTRACTOR for the project.
The engineering and design for this project will be driven by the schedule and the need to minimize capital cost without sacrificing personal safety, quality, constructability, maintainability and operability.
All engineering design work (both internally and sub-contracted) will be managed in CONTRACTOR office in accordance with the CONTRACTOR standards
One of the engineering team’s functions will be regular interfacing with the CLIENT team members as well as CONTRACTOR, to ensure correct and timeous meeting of requirements.?Regular interfacing with the project team will be carried out to ensure the smooth execution of the work by monitoring information flow and adherence to the project schedule.
Updating and confirmation of the project team’s requirements of the engineering functions will be part of the duties, and assistance will be given in obtaining early vendor equipment information.
Appropriate systems and computer packages for the engineering design and drawings will be implemented to ensure efficient and cost-effective solutions.?Packages for outsourcing will be identified and managed.
2.7.2. Reference and Standards
The engineering and design for this project will be in accordance with the latest editions of the following relevant codes and standards as applicable, including any addenda, amendments, supplements and/or revisions at the time of contract award:
2.8. PLANNING
Planning prepares the project for successful implementation. It links the resources to the project activities, sequences and schedules the terminal elements of the scope of work breakdown structure so that resources are provided at the required time.
The Planner monitors and updates the program on a detailed, weekly basis in close co-operation with the Client’s Project Team.
2.9. OFF-SITE CONSTRUCTION/MANUFACTURE
The manufacture of equipment will be strictly in accordance with the relevant contractual specifications and standards.
The Project Team will ensure that the processes or methods to be utilized during manufacture and assembly such as welding procedures and N.D.T. procedures etc. are complied with.
The Project Engineers allocated to the various disciplines of the project are to identify the complexity and nature of supply of materials, components, equipment and services, and shall evaluate their criticality and apply the relevant level of control required.
Potential suppliers and sub-Contractors are selected from the ‘Approved Suppliers List’ where possible.
All manufacturers and suppliers are subjected to an approved Quality Assurance and Control system.
2.10. QUALITY ASSURANCE AND CONTROL
The Quality Assurance and Control system applicable to this project embraces the following sections:
The Quality Management system is modelled on (list relevant standards).to ensure that objectives are set and achieved in a planned and systematic manner.
Adequately qualified personnel will be allocated the responsibility and authority to verify work affecting quality operations and aspects of the project.
A Project Quality Plan shall be compiled, addressing the project quality assurance requirements, as per the QA Procedures.
2.11. DELIVERY AND TRANSPORT TO SITE
Product and equipment packaging, handling and marking shall be determined during the project initiation and detail design phases.
Consideration will be given during these phases to CLIENT specific requirements and requirements relating to the type of transport used.
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Detailed instructions shall be documented on drawings and/or specifications.
Mechanical items and sub-assemblies shall be containerised according to sequential erection/installation requirements.
Large items, including structural steel structures, shall be transported in practical size assemblies suitable for site erection/installation.
During transportation of mechanical and electrical items consideration shall be given to the effects of vibration, shock and corrosion of such items.
Site storage instructions shall be documented and issued to the CLIENT or his representative.
2.12. CONSTRUCTION
2.12.1. Construction Organization and Responsibilities
Construction and site-based operations will be managed by an integrated site-based construction management team essentially replicating the organizational structure of the project team in line management responsibility and function.?A dedicated construction manager, reporting directly to the project manager, will be assigned to manage the project construction site-based operations. The construction manager will direct the activities of the integrated construction team in coordinating Contractors and Subcontractors on site. He/she will ensure that the work is carried out in accordance with the scope, cost and quality parameters of the individual contract documents, including compliance with statutory requirements, drawings, specifications, codes and standards, so as to achieve the required end results.
The construction team will monitor and manage activities with respect to maintaining the agreed scheduled dates and will take the necessary actions to ensure that the intermediate dates are maintained so as not to impact on follow-on work. They will ensure that the required standards are maintained across the site with respect to industrial relations, work safety, health and compliance with the environmental management plan.
Adequate, detailed Site Erection/Installation Procedures shall be documented and issued to the CLIENT or his appointed representative by the Site Construction Supervisor. These procedures will be supported by relevant drawings and specifications.
A Site operations Quality Control Plan ensures that site activities are discharged in a controlled and safe manner, in line with the overall project program.
The site erection Contractor shall report to the Supervisor on all matters related to the erection/installation of the relevant contract works/equipment.
The Supervisor shall issue the contract works Completion Certificate and table it for signature by the CLIENT.
The construction manager will have the following personnel reporting directly to him:
And will be functionally supported by the following:
Constructability reviews will be undertaken as a part of the normal project design development. These reviews will take into consideration the constraints imposed on construction as well as addressing constructability, and where possible, operability and maintainability issues identified.?Particular cognizance will be taken of weather condition extremes and the logistical and schedule constraints posed by the location of the site.
Contract Supervision
The work of the construction Contractors within a given area will be supervised and coordinated by the site superintendent and/or his supervisors (as applicable). They will be supported functionally by field engineering, inspection, planning, estimating, cost control and contract administration and procurement, HSE, engineering, quality and industrial relations personnel as necessary.
The area construction superintendent will also have line management responsibility for ensuring that the individual Contractors conform to HSE and Labour relations objectives as stipulated in the contract.
Payments to Contractors will be linked to performance milestones and targets across the project.
Functional Support for the Construction Team
The construction manager and/or the area superintendents will have site support from project functional departments including the engineering, quality, procurement, risk management, project control and administration functions.?Each group will be represented by an on-site superintendent (where deemed necessary) reporting functionally to the project manager.
Engineering
The site engineering representative will be is responsible for the integrity of engineering translated into the constructed plant and for dealing with engineering queries on site. Notwithstanding the fact that the site supervisors will fulfil a dual role a specific distinction will be made between supervisory and engineering integrity/quality control responsibilities so as not to impact the engineering quality integrity of the constructed works at the expense of production.
Quality
A dedicated quality coordinator will be responsible for quality program and will integrate the quality team responsibilities to establish appropriate integrated project quality control plans. Responsibilities will include establishing the quality organization and reporting structures, reviewing Contractor quality management plans and programs; the early identification and monitoring to close-out of defects and the timely receipt and finalization of Contractors’ quality control plans and QC dossiers and as-built documentation. The quality function will be supported as appropriate by the site engineering function.
Project Controls and Administration
The site project controls representative will support the construction activities to provide the construction superintendents with the resources to plan, control, monitor and report on the Contractors’ work.
Project controls will include planning, scheduling, progress monitoring and reporting, estimating and cost control and will also manage the maintenance of the integrated project management and related IT systems at site.
Risk Management
Whilst this is viewed as critical in the overall management of the project on site this function will be the responsibility of the individual area and functional superintendents but will be coordinated through the risk management function at project level.
The integrated construction management team will be responsible inter-alia for:
2.13. PROCUREMENT
The Project Team, during the project initiation phase, will identify the scope of work of suppliers and sub-Contractors for each phase and discipline of the project. For this purpose all relevant information generated and compiled during the project initiation phase, as well as the design data pack generated during the design and engineering phase is being utilized. Only assessed and approved suppliers are considered for selection and adjudication for order placement. The Project Team generates the purchase orders in line with the relevant requirements and submits them for approval to the Project Manager.
2.13.1. Strategy
The key acronyms mentioned in this plan are as follows:
CPA????= ??????Contract Price Adjustment.
CPN????= ??????Critical Path Network (package report).
PEV????= ??????Price Enquiry Variation.
RCV????= ??????Recommendation of Contract / Purchase Order Variation.
RFQ????= ??????Requisition for Quotation.
RFA????= ??????Requisition for Award.
PC??????= ??????Procurement Committee.?????
QA??????= ??????Quality Assurance.
Procurement Activities
The various procurement activities from the time of receipt of a request for quotation (RFQ) to the closing–out of an order or contract will be in accordance with the implementation schedule. Typical procurement activities will be as follows:
Each of these activities will be monitored, against a package schedule report, by way of weekly progress meetings, where the respective activity will be reported. Any delays, concerns and/or problems reported, will invoke immediate remedial action to rectify the situation at hand.
Purchasing
All purchasing activities will be conducted by CONTRACTOR personnel operating from Contractor’s office, both for Purchase Orders and Contracts.
As Contracts are progressively awarded and the construction activity relative to that contract commences on site, the contract in terms of procedure will remain with CONTRACTOR Head office for administration.
In respect of purchase orders, these will be administered from CONTRACTOR head office until close-out of the order unless an order is committed on a vendor within the site area and it is deemed prudent for control purposes for the order to be administered from site; this is an exception to the rule.
CONTRACTOR standard systems and procedures, as modified by specific project procurement requirements (still to be developed / finalized) will be utilized for the various procurement activities.
Procurement Operating Plan
A procurement operating plan (POP) has been prepared.
Expediting
CONTRACTOR expeditors will perform all expediting both in-house (i.e. telephone) and in the field (i.e. shop / works visit). The expeditors will submit written expediting reports on each field visit to a vendor’s shop / works. All deliverables will be expedited, including certified drawings / information, materials and equipment, reports, etc. in accordance with the conditions of the purchase order.
Any delays and/or concerns will be highlighted in the visit report and immediate remedial action taken to rectify any identified problems, concerns and/or delays. The foregoing will also be reported at the weekly progress meetings.
For minor items of equipment, telephonic expediting may suffice; however, an expediting report will still be generated and followed up by a field visit to the Vendor’s shop/works if deemed necessary.
Equipment and materials will be subject to inspection (QA) during the manufacturing period and prior to shipment ex works. The expeditor will liaise with the quality inspector to ensure that an inspection and test plan (including “hold points”) is established with the vendor / Contractor, which will be in accordance with the project quality assurance and quality control requirements, under the control of project quality management as detailed in the project quality plan.
For critical items of equipment which are manufactured offshore, it is planned that an overseas inspection and expediting agency will be appointed / contracted to monitor progress of the equipment and report accordingly. This agency may also handle works "hold points" on the equipment and provide an inspection release note before the equipment leaves the vendor's works. This will ensure that the equipment is in accordance with the terms and conditions of the purchase order prior to dispatch from their works.
Materials Control / Warehousing Requirements
The appointed construction Contractor will be responsible for all material control and warehousing requirements (including receipts and issues) for all incoming goods, equipment and materials required for the project.
Identified Risks
Risk management shall be in accordance with “project risk management” of the project implementation plan.
Procurement Procedures
CONTRACTOR procurement procedures will be used for the project implementation. Any CLIENT specific requirements will be accommodated to suit the specific needs of the project.
Procurement Mandate
The procurement mandate from the CLIENT is for the Contractor to:
The mandate for Contractor procurement to proceed in the above regard is an authorized requisition for award (RFA) issued by CONTRACTOR Project Manager.
No financial commitment will be made by CONTRACTOR procurement unless the CONTRACTOR Project Manager has approved the recommendation.
Variations to Purchase Orders and Contracts
No change to a purchase order or contract is allowed, that alters its status in respect of value, program, scope or the terms and conditions from that which existed at the time the purchase order or contract was signed by the CONTRACTOR Project Manager.
Note:?The above does not apply to corrections, errors, omissions and/or minor changes to the original purchase order or contract, which do not have any price, delivery or commercial impact on the terms and conditions of the purchase order or contract, however, a no cost RCV must be generated recording the correction etc. for record purposes and the RCV authorized in terms of procedure.
2.13.2. Implementation Phase
General
Where a new item of equipment or service is identified, a request for tender (RFQ) will be generated as per project procurement procedures.
Procurement Management
The procurement management will be separated into the following groups for the implementation phase of the project:
Area management, in conjunction with the procurement group, will use the various package scopes of supply /work as developed during the feasibility study and pre-implementation phases to prioritize and prepare the following:
Procurement Policy
The project procurement Contractor team members will be made aware of their responsibility to follow best practice in all procurement activities related to the establishment of the strategy to be adopted for the project.
In particular, the team members will be committed to exercising responsible corporate governance when procuring goods, equipment, materials, contracts, consultancy and services for this project, and to implement policies and procedures that will ensure that this occurs.
In addition, the procurement value proposition for the project will be to acquire all goods, materials, equipment and services at the best optimal price and value in order to meet the agreed construction schedule, defined process parameters and quality without compromising standards and ethics.
Procurement Objective
The objective is to ensure that all goods, materials, equipment and third-party services are obtained at optimal value, quality and schedule requirements set for the project.
The CONTRACTOR procurement team members will generally obtain a minimum of three written quotes per RFQ.?In the event that it is not possible or practical to obtain three tenderers, a concession will formally be requested using a procedure deviation request approved according to an agreed approval matrix. Generally, this will apply to sole source offers.
The issue of a RFQ will only apply in those instances where:
Process
The various Procurement activities, tasks and related actions are covered by the following work processes:
Procedures
CONTRACTOR will generate, prepare and issue a complete set of project procurement procedures for the CLIENT to review, comment, approval and implementation. Each procurement management function and discipline will be described in detail to achieve the end result.
These project procurement procedures, with revisions as necessary, will be implemented at the commencement of the project and these procedures will generally describe the project’s agreed methods and work practices. These will include the detailed instructions for purchasing, contracts administration, traffic/ shipping/ logistics / customs, material control and expediting and will moreover include instructions for project procurement reporting.
Procurement Implementation Plan
The contents of this sub-section i.e. procurement, have been originated from the procurement packages as described in the procurement implementation plan, and have been derived from the control budget, procurement schedule and work breakdown structure. These will be classified into purchase orders, construction, field site orders (including non-engineered purchase orders) and professional services contracts.
All commitments will be scheduled taking into account the requirements for engineering and construction.
The schedule for delivery of documents between the parties involved has to be consistent with the overall time schedule of the project.??The delivery of equipment must take place in accordance with the erection/installation schedule to ensure cost effective construction and erection of the plant.?Status of commitments will be tracked against delivery requirements based on the overall Project Schedule. For this purpose, the procurement schedule will be continually updated.
This will form the basis for procurement package detailing and planning will constantly be updated to reflect planned, forecast and actual tracking details.?These documents will be appended to the procurement section of the monthly project progress report.
Tenderer Selection
The procurement implementation plan will include a detailed list of approved vendors, consultants and Contractors and this list will generally be based on those tenderers who quoted against the RFQs. Other selected tenderers will be identified and confidential tenderers / vendors / Contractors’ added to this list.?However, the overall selection for inclusion in the ‘list will be based on the following selection criteria:
Request for Quotation Preparation and Issue
In accordance with the project schedule, requisition for quotation with accompanying technical and standard specifications, drawings / data sheets will be issued to procurement for generation of the RFQ.
The responsible buyer / contract administrator will then compile the complete RFQ package by adding the relevant commercial documentation to the engineering and issue the RFQ package to the invited tenderers.
Tender Closing, Receipt and Opening
Tenders will close on the agreed due date, unless an extension is granted by the CONTRACTOR Project Manager in consultation with the CLIENT.?
All tenders will be sealed and deposited at CONTRACTOR office, in a locked tender box on the due date.?In exceptional circumstances and with the approval of both the CONTRACTOR Project Manager and the CLIENT, late tenders will be received or rejected and returned by CONTRACTOR as circumstances dictate and in the interests of the project.
All tenders received (and prices tendered) will be recorded on a “sealed tender opening worksheet”. The worksheet will record tenders received and those tenderers who declined, dates, and other primary details as necessary.
Relevant sections of each un-priced tender will then be distributed to the CONTRACTOR Project Manager and relevant package engineer for initial technical adjudication.
Commercial and Technical Adjudication
Prior to the award of any purchase order or contract, all formal communications with tenderers will be routed through procurement for continuity and control purposes. The same procedure will apply once a purchase order or contract is awarded.
Technical Adjudication
The initial adjudication will comprise a review of technical compliance, suitability and quality. Each offer will be scrutinized to identify exceptions, qualifications and deviations from specification. By a process of qualification, the package engineer will determine the extent of qualifications required to each bid to draw a single comparable and compliant technical norm. Alternatives will be tested for opportunities and feasibility
Commercial Adjudication
The buyer / contracts administrator will consider each and every commercial aspect of the proposals to ensure compliance with terms and conditions advertised in the RFQ.
All clarifications and arithmetical adjustments will be communicated in writing.
Joint Adjudication
Following the technical and commercial evaluation of tender received, Procurement and Engineering personnel teams agree on which offers to exclude and which will clearly not qualify for further adjudication based on price or technical content.
Agreement is then reached to short list offers to be considered further. Primary technical and commercial comparisons are drawn up and the team agrees the extent of clarification/ qualification to achieve comparable offers. Thereafter, the short-listed tenderer / tenderers are requested to clarify their tenders by formal correspondence or (preferably) in a bid clarification meeting.
Recommendation
Once the commercial and/or technical qualifications and clarifications have been completed to CONTRACTOR’s entire satisfaction, a fully detailed recommendation will be prepared by CONTRACTOR procurement with back-up as required together with budget comparisons.
The recommendation is circulated for approval in accordance with the agreed project “approval matrix”. The recommendation will be reviewed, and further clarifications may be referred back to the CONTRACTOR team for further review or approved for commitment. The CLIENT may also direct further negotiations as required until the adjudication is finally approved for commitment.
Award of Contract
Once the recommendation is approved, the purchase order or contract is compiled and distributed for review and signature in accordance with the project “approval matrix”.?All negotiated exceptions, modifications and /or additions, will be incorporated into the contract specifications and conditions. Minutes of meeting, memoranda, correspondence prior to or after tender submission, will not form part of the issued contract documentation.?Following receipt of the Client’s approval to proceed, the vendor / Contractor will be invited to CONTRACTOR office to sign the purchase order / contract. All awards will be placed directly by CONTRACTOR.
Contract Administration
All purchase orders will be administered from CONTRACTOR office. By exception, a purchase order may be transferred to site in the case of local vendor, when necessary to do so.
Day to day correspondence with the vendor and its compliance with terms and conditions of the purchase order and payment process is monitored and progressed by the relevant buyer.
Construction will be administered by the site contracts administrator, from the date of the “kick-off” meeting held on site. Inter-alia, the following matters will be tabled for discussion at this meeting:
Contract Close-Out
Once the vendor/Contractor has fully fulfilled its contractual obligations in terms of the contract, the purchase order/contract is then closed-out in terms of procurement procedure.
Where scope definition, quantities and conditions are not sufficient to establish a clear and complete scope of supply / work (for example earthworks and piling), such contracts will be awarded on schedule of rates basis with payments made accordingly to the work determined by the Quantity Surveyor.?Any amendments required to a purchase order or contracts will be by means of an approved variation.
Contract Types
The various categories of the packages are as follows:
Supply and Delivery Only Purchase Orders (P – Packages)
The scope of supply / work of these purchase orders will generally be packaged to enable both South African vendors and any offshore vendors with suitable technical and financial capabilities to tender. The purchase orders will be awarded on the basis of a lump sum “fixed” and “firm” price basis and will not be subject to escalation.
However, there may be instances where the vendor tenders for a portion of its offer subject to rates of exchange variations; where this occurs and where CONTRACTOR are unable to negotiate a fixed and firm price, then the vendor will be instructed to take forward cover with its bank, within one (1) week of placement (commitment) of the purchase order. Any claim/s in this regard by the vendor are to be submitted with thirty (30) days of the vendor taking out forward cover with its bank, the claim is to be supported by bank documents confirming that forward cover contract established by the vendor. The purchase order would be amended once the variation is approved.
Supply and Install Contracts (C – Packages)
The scope of work of these contracts will generally be packaged and structured to fit a limited time schedule suitable for lump sum fixed price contracts. Furthermore, most contracts will be packaged to allow Contractors and fabricators with suitable technical and financial capabilities to tender and/or be awarded a contract.
Turnkey Contracts (T – Packages)
Turnkey contracts will include the design, supply of technology, engineering, procurement, delivery, construction, commissioning, start-up, performance testing and hand-over with operation personnel training, as required.?These contracts will generally, where required, be awarded to the principal technology supplier (i.e. sole source) as the prime Contractor, on a lump sum fixed price basis. In all other instances, the contracts will be awarded to the most suitable commercially and technically acceptable vendor by means of an open tender competitive basis.
Service Contracts (S – Packages)
Service contracts will include for the specialist services of a consultant in a particular field of expertise. Contracts will generally be awarded on a fixed rates basis with a “ceiling value” of the contract.
Field Supply and Delivery Only Orders (F – Packages)
Short form supply and delivery purchase orders will be placed by project site for construction day to day requirements. It is envisaged that any commitments will be governed by a monetary ceiling value per order and wherever possible, the order will be placed on local vendor/s.?The contract will be let using a short form contract document, which are suitable to local companies. However, selection criteria will continue to be based on the lowest priced technically and commercially compliant tender.
A short form purchase order/contract will be utilized for identified packages that can be unbundled.
Tenderers (Bidders) List
For competitive tendering, generally a maximum of six (6) tenderers and by exception a minimum of three (3) will be recommended by CONTRACTOR for approval by the procurement committee. Such recommendation will generally be issued four (4) weeks prior to the scheduled day for issue of the request for tender.?In certain instances, a sole source request for tender may be required to be issued, in such instances full justification to go to a sole source tenderer will be initiated by the CONTRACTOR Project Manager
Tender Evaluation and Recommendation for Award
CONTRACTOR project team and the CONTRACTOR Project Manager will endorse all recommendations. The accepted Contractor and/or vendor as the case may be, will be invited to CONTRACTOR office to sign the contract.
The Contractor will generally not issue “letters of intent” and/or “fax of award” unless required for urgent construction schedule reasons and approved by the CONTRACTOR Project Manager.
Terms and Conditions
The terms and conditions to be applied to all contracts and purchase orders will be on the basis of CLIENT terms and conditions.
Material Control
Procurement activities will be planned and monitored through sub-modules of CONTRACTOR material management system (MMS).
The system will monitor and report on the entire procurement cycle from receipt of the RFQ through to receipt of equipment at site and subsequent issue to the relevant installation/erection Contractor.
Data will be continually updated through centralized and remote access to reflect the latest situation and status, allowing construction personnel to be constantly aware of delivery status of any given item of equipment and/or material. Any equipment / material reconciliation will be undertaken at the end of the project verifying that same has been ordered, issued, use and returned where applicable.
Customs and Freight Forwarding
A Project Freight Forwarding and Clearing Agent may be appointed by CONTRACTOR to assist with any project logistics that may be required. The envisaged scope of work would entail freight consolidation, freight forwarding, customs clearance, airfreight, sea freight and container management.
The appointed agent will be required to institute a suitable detailed tracking system to monitor the freight movement of all materials and equipment from the contractual delivery point to the final destination. The system would be required to provide information to project personnel as to the whereabouts of all shipments are known, at all times. The information to be provided by the tracking system would thus enable early remedial action to be taken by CONTRACTOR in conjunction with the project freight forwarding and clearing agent, to mitigate any hold-ups and/or delays that may occur along the shipping route.
For urgent requirements, airfreight would be arranged though the appointed project freight forwarding and clearing agent.
Warehousing and Storage
Material and equipment brought onto site will be placed and stored in a preferably covered area.?For all materials and equipment that can be stored in the open or in containers (if available), will be placed in an outdoor fenced lay-down area.
This task will be the responsibility of the construction Contractor, who will also be responsible for all off-loading once the material and equipment are delivered.
Expediting
CONTRACTOR’s expeditors will ensure that material and equipment are delivered to project site on time and within specification requirements; this task will be undertaken by regular shop/works visits by the expeditor. Any delays will be highlighted in his visit report and remedial action taken immediately to rectify the identified problem and/or delay.
Equipment and materials will be subject to inspection during the manufacturing period and prior to shipment ex works. The expeditor will liaise with the quality inspector to ensure that an inspection and test plan is established with the vendor / Contractor, which will be in accordance with the project quality assurance and quality control requirements, under the control of project quality management as detailed in the project quality plan.
Contract Administration
The day-to-day administration of purchase orders (P – packages) will be administered from the CONTRACTOR project office. In those instances where an empowerment purchase order is placed on a local vendor, then it is envisaged that the purchase order would be transferred to site for administration from there depending on the prevailing circumstance.
Likewise for consultancy contracts (S – packages), the day-to-day administration of these contracts would be administered from the CONTRACTOR project office. In those instances where a contract is placed on a local consultant, then it is envisaged that the contract would be transferred to site for administration.
All construction (C – packages) and turnkey (T – packages) will be administered by the site Contractor administrator from the date of the “kick-off” meeting held on site. This implies that certain packages (to be identified in due course) may be administered initially from the CONTRACTOR project office during the engineering and fabrication phase of the contract, until the on-site construction work commences.
Confidentiality
All vendors, Contractors and consultants working on the project will be required to sign a corporate confidentiality agreement.?All documents issued for RFQ, purchase order and contract purposes, will have a confidentiality agreement clause inserted in these documents.
It will also be required that a vendor / Contractor / consultant shall not, without the prior written consent of CONTRACTOR, use, copy or reproduce, publish, or disclose to any newspaper, periodical, publication or other third party, nor cause nor allow any of its servants, agents, sub-vendors, sub-Contractors, or employees to use, copy or reproduce, publish or disclose, any information relating to the Order/Contract, including its existence.?
A register will be generated to record all confidentiality undertakings by vendors / Contractors / consultants engaged for the Project.
2.14. FABRICATION
The CONTRACTOR manufacturing strategy, to embrace the Supplier Development initiative, is to manufacture all the machines in South Africa.?CONTRACTOR has done extensive research into the capabilities of the various manufacturers in South Africa and have identified a number of manufacturing partners, companies that CONTRACTOR has worked with extensively on a variety of projects that have an impressive pedigree in manufacturing capability to support this project. All of them in turn meet and support the Supplier Development initiatives.?
The objective is to conduct the erection of the ship loader within the confines of the allocated maintenance bay area on the jetty as there are savings to be gained by following this strategy.
2.15. CONSTRUCTION MANAGEMENT
The approach to construction management will be a coordinated and integrated one taking into account the major identified project risks and implementing a strategy to mitigate these to levels as low as reasonably possible. Aside from the normal site regulatory and performance requirements certain aspects will receive focused attention to achieving project success.
Labour Relations
Industrial relations are recognized as being one of the critical success areas for the timeous and successful implementation of the project. A risk management approach will be adopted to ensure effective measures are developed and implemented for the management of industrial relations.
Site Facilities
In order to successfully manage the site, temporary site establishment facilities will need to be provided for efficient progressing of the works and related processes. The site establishment can be divided into the following three categories:
Temporary Construction Facilities
Temporary facilities will be provided to ensure proper housekeeping and to support progressing of the works on site.
Security
The site security management plan will be developed early during the implementation phase and will take into account the following concerns:
The physical security facilities will consist of the permanent or temporary perimeter fencing and suitable perimeter and area lighting. The use of electronic surveillance systems in lieu of manned posts will be evaluated taking the impacts of both cost and all-weather capability into account.
Vehicular access to site will be strictly limited and controlled by electronic access cards Personnel access via electronic access cards either at the main gates or directly from the construction site.
It is recognized that the abuse of alcohol is a very real issue amongst personnel engaged as construction labor. In recognition of this fact, the site will be strongly and appropriately managed in this regard.
Health Program
All personnel assigned to the project site will be required to undergo pre?employment medical checks to verify their medical fitness to perform construction work.
Emergency medical response and appropriate case-evacuation programs will be implemented in conjunction with local medical service providers for all project personnel.
Waste and Sewage Disposal
Waste will be disposed of in formal municipal waste disposal sites.
Control of all waste generation and disposal will be managed by the HSE function and will include the separation and safe disposal of waste generated during construction.
Domestic waste
Access to Operating Areas????
Detailed construction planning during the implementation phases will address the following concerns:
Movement of People and Equipment in Operating Areas
The exposure of construction personnel to potential operational hazards is identified as one of the major risks associated with any project. These not only pose a risk to project employees but could also have a significant impact on production activities that may require completion. To reduce the risks associated with the operations-construction interface, the project site team will minimize the number and duration of resources within the operations area at any time.
Construction areas within agreed and handed over operations areas will be fenced off wherever practical. Access routes to these areas will be through barricaded passages or identified shared access routes.?This implies that a “permit to work” must be obtained from operations to ensure that required equipment and energy sources are isolated and locked-out prior to starting work on the equipment.?
?Project personnel required to work within an operational area will be required to attend an area specific induction by the operations team and will be subject to operations security measures. This will ensure that Contractors are familiar with the hazards of the specific operational area in which they will be working.
Construction Vehicle and Equipment Flow in Operational Areas
The project site team will be responsible for identifying the need for any vehicle or equipment movements within the operating areas and will establish the timing and duration of the access, in addition to outlining the work to be undertaken in the area.?
Heavy or Special Lifting Operations
All lifts of a heavy or awkward nature will be reviewed by the relevant area superintendent, HSE superintendent or his assigned HSE personnel for comment and input and an assessment made of the difficulty of the lift and the level of risk to facilities and personnel. This information, including any restrictions, will be transmitted to the Contractor who will be required to prepare a detailed lifting study and risk mitigation plan for approval prior to any lift activities. Where it may be necessary for specialized or heavy lifting equipment to be mobilized onto the project the construction management team will optimize these opportunities and ensure that other project needs are coordinated to coincide.
Emergency Response
Emergency response plans will be instituted to deal with typical project emergencies including:
In support of these requirements provision will be made within the appropriate site contracts for firefighting support, ambulance, rescue apparatus and the like.
2.16. SAFETY, HEALTH AND ENVIRONMENT (SHE)
2.16.1. Summary
CONTRACTOR is committed to achieving excellence in the field of occupational health and safety, environmental management and community issues and to this effect have adopted a zero-harm philosophy for the project.?CONTRACTOR believes that all incidents in the workplace are preventable thereby recognizing the well-being of the project employee and the community and environment in which the project is executed as the most important factor in delivering the project on time, within budget and meeting the quality requirements.
2.16.2. Health, Safety Environment and Community (HSEC) Management
A risk-based health and safety management system; based on the Occupational Health and Safety Assessment Series (list relevant standard) – Specification for occupational health and safety management systems - will be implemented during the execution phase of the Project.?The system will be applicable for the management of health and safety in the offices as well as in the field.?
The environmental management system will be based on the (list relevant standard) – Code of Practice for Environmental Management Systems.
The project HSE plan will be developed in line with the minimum requirements set by the CLIENT.?The HSE management plan will include but not be limited to the following components:
Induction
All project employees will be inducted prior to gaining access to site.?Audio visual material will be used for the induction process and trained facilitators will ensure a thorough understanding of the attendees.
Topics covered in the induction will include but not be limited to:
Specific Operational Controls
As a result of the high risks associated with scaffolding, working at heights, and lifting operations, special measures will be taken to reduce these risks to a level as low as reasonably practicable.?CONTRACTOR will investigate the appointment of an expert in lifting operations to ensure not only the mechanical soundness of cranes but also assist in the development and review of lifting studies.?
All Contractors who have to work at heights must compile a fall protection plan for approval by CONTRACTOR.?Strong emphasis will be placed on ensuring Contractors have taken cognizance of standards and regulations as specified in the applicable legislation.
2.17. COMMISSIONING PHILOSOPHY
2.17.1. Objective
These guidelines describe the formal planning used during the construction, commissioning and hand over phases of capital projects.?They define the control mechanisms from installation to operational and final acceptance by the CONTRACTOR and the CLIENT.
Commissioning is divided into pre-commissioning, cold commissioning and hot commissioning.?Each category is documented in Manual format.
The Pre-Commissioning Manual provides a uniform manner in which the documentation and performance of the pre-operational checks can be conducted in order to ensure that the requirements of the specifications and associated drawings have been met and that the system is complete and can be operated without incident or danger to equipment and personnel. Areas of concern need to be categorized and noted during pre-operational inspection and testing.
Cold commissioning serves to prove that the control logistics and the equipment operate in compliance with the operating philosophy. Cold commissioning must always be conducted in accordance with the cold commissioning check lists.
Hot commissioning serves to prove that the equipment operates in compliance with the operating requirements, with material being passed through the equipment/plant. Hot commissioning must always be conducted in accordance with the hot commissioning check lists. The commissioning team leader shall issue the commissioning Completion Certificates and table them for signature by the CLIENT.
2.17.2. Planning
An important requirement of the “Certificated Commissioning System” is the upfront planning and programming that must be implemented prior to the project kick off.?This will ensure a smooth flow of work, highlight the interaction points and ensure effective progress monitoring.
Certificates must be generated for all disciplines and an overall project program must be developed indicating the interaction points of the certificates and the milestone events against which they will be monitored.
The commissioning and hand over process must be scheduled and resourced with sufficient labor to allow adequate time for the commissioning procedure phase to flow unhindered.
2.17.3. Classification of Remedial Work
Punch lists generated in pursuit of acceptances are to have their individual items classified as listed below:
The above shall enable costs to be correctly allocated by those directly concerned within the limits of their responsibility.?Category “A” shall have numerical suffixes to indicate individual erection Contractors or suppliers.
Category “D” shall have a numerical suffix to indicate whether the change is identified by the project (1) or CLIENT preference (2).
Each individual piece of equipment for level 4, as defined in the system hierarchy, shall have its own acceptance certificate.
Suppliers shall be involved in all phases of acceptance to ensure correct installation and operation of equipment and thus validate their guarantees.
The Request for Modification procedure (see Section 2.17.5 below) details the control for authorization of requested changes to an existing design.
2.17.4. Lockout and Legal Responsibilities
The status of each individual piece of equipment for level 4, as defined in the system hierarchy shall be displayed physically on the unit by means of an equipment status tag.
Each discipline shall indicate when it is safe to start up the equipment.
At all times, individuals shall take particular note of lockouts (name tags on locks) and follow the particular procedure in force at the time.
2.17.5. Modification Procedure
This procedure has been introduced in order to formalize the system of requests for modifications and so prevent a haphazard or ad hoc approach without any controls.?It is accepted that certain modifications will be required and will be necessary during the commissioning of the project.?These will be given the necessary priority at the time.?Notwithstanding the above, the general over-riding principle which must be applied is that the project should proceed along the schedule for start-up and commissioning in accordance with the designs produced and without any delays.?
Any person requesting a plant modification must submit a “required for modification” form.?Any request must be fully detailed and justified in order to receive consideration.?
2.17.6. Submission of Requests
If requests for plant modifications are deemed necessary, they will be approved by the plant superintendent or the process engineer (engineering modifications).?The project engineer will evaluate these requests and if he approves, a copy of the completed request form will be given to the project manager for authorization.?The implications for the project in terms of design, cost, delays etc., shall then be accessed and a reply given to the site detailing the decision and action taken.?Where appropriate, the request will be discussed with the original designers in order to obtain their views, comments and recommendations, etc.
2.18. PROJECT CLOSE-OUT
The compilation of information for project close-out begins at the outset of the project and continues throughout its life.?The project manager will be responsible for coordinating project closeout activities as specified in the Contractor procedures including:
Oil and Gas Projects Specialist (Saudi Aramco Projects) | Project Management ,PMP? | Resource Management & Planning | HR Management
1 年Thank you Tony Pinto , I appreciate the time and effort that went into gathering this information.
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2 年Tony thank you for sharing Project Implementation Plan ( PIP) framework , I am confident that your PIP framework is the only solution for Business Development Professionals to achieve a? perfect project implementation, Kudos to You for sharing.