Petron-Limay-Pep-Crude Oil Tank Construction by Yok

PROJECT EXECUTION PLAN
Prepared Checked Approved Approved by

Rev Rev Date Description
By By By COMPANY
A 02-10-17 Issued for Bidding RSN MRT MRT -

PT ENCONA INTI INDUSTRI
TECHNICAL PROPOSAL
ENGINEERING, PROCUREMENT, CONSTRUCTION AND INSTALLATION
FOR CRUDE OIL STORAGE TANK PROJECT
TABLE OF CONTENT
1.0 INTRODUCTION ............................................................................................................... 4

1.1 Project Description .................................................................................................................... 4
1.2 Purpose ...................................................................................................................................... 4
Health, Safety and Environment (HSE) ...................................................................................... 4
Quality ........................................................................................................................................ 4
Fabrication ................................................................................................................................. 4
Schedule ..................................................................................................................................... 4
Regulatory .................................................................................................................................. 4
1.3 Project Execution Strategies & Critical Success Factor .............................................................. 5
General....................................................................................................................................... 5
HSE Management ...................................................................................................................... 5
Engineering ................................................................................................................................ 5
QA/QC ........................................................................................................................................ 6
Positive Involvement by BIDDER/COMPANY/Vendors .............................................................. 6
Cost Management...................................................................................................................... 6
Organization............................................................................................................................... 6
Best Practices and Lessons Learnt ............................................................................................. 6
Change Order Management at Worksite................................................................................... 7
1.4 Definitions .................................................................................................................................. 7
1.5 Abbreviations ............................................................................................................................. 8
2.0 SCOPE OF WORK .............................................................................................................. 9
3.0 PROJECT ORGANIZATION CHART ...................................................................................... 9
3.1 Organization Chart ..................................................................................................................... 9
3.2 Roles and Responsibilities.......................................................................................................... 9
4.0 PROJECT OVERSIGHT ...................................................................................................... 13
4.1 Independent Assessment Group ............................................................................................. 13
4.2 BIDDER HSE Committee ........................................................................................................... 13
4.3 BIDDER / COMPANY Interface ................................................................................................. 13
4.4 Worksite BIDDER / COMPANY Interface .................................................................................. 13
5.0 COMMUNICATIONS ....................................................................................................... 14
5.1 Communications with COMPANY ............................................................................................ 14
5.2 COMPANY Meetings ................................................................................................................ 14
5.3 Correspondence ....................................................................................................................... 14
5.4 Communications with Authorities ........................................................................................... 15
5.5 Communications with Service Providers ................................................................................. 15
5.6 Internal Communications ........................................................................................................ 15
6.0 PROJECT CONTROLS ....................................................................................................... 15
6.1 Cost Control ............................................................................................................................. 15

TECHNICAL PROPOSAL
6.2 Schedule Control ...................................................................................................................... 16

6.3 Performance Tracking and Progress Reporting ....................................................................... 16
6.4 Document Control ................................................................................................................... 16
6.5 Public Server ............................................................................................................................ 17
6.6 Project Reports ........................................................................................................................ 17
7.0 OVERALL EPCI PLAN ....................................................................................................... 18
7.1 Works Distribution ................................................................................................................... 18
8.0 ENGINEERING EXECUTION PLAN ..................................................................................... 18
8.1 General..................................................................................................................................... 18
8.2 Detail Design Engineering Team .............................................................................................. 18
8.3 Detail Design Engineering (DDE) .............................................................................................. 18
8.4 Detail Design Engineering (DDE) Procedure ............................................................................ 19
8.5 Document Control Procedure .................................................................................................. 19
8.6 Specifications, Codes, Standards and Regulations .................................................................. 21
8.7 Technical Information .............................................................................................................. 21
9.0 PROCUREMENT EXECUTION PLAN .................................................................................. 22
9.1 General..................................................................................................................................... 22
9.2 Procurement Team .................................................................................................................. 22
9.3 Procurement Procedure .......................................................................................................... 22
9.4 Material Control and Warehousing ......................................................................................... 23
10.0 CONSTRUCTION ............................................................................................................. 38
10.1 Pre-Construction Planning and Control, Mobilization and Field Start ..................................... 38
10.2 Pre-Construction Check List ..................................................................................................... 38
10.3 Permits, Licenses and Registrations......................................................................................... 40
10.4 Mobilization Checklists and Procedures .................................................................................. 40
10.5 Temporary Construction .......................................................................................................... 40
10.6 Field Start Check List ................................................................................................................ 48

TECHNICAL PROPOSAL
1.0 INTRODUCTION
1.1 Project Description
Petron Refinery located in Philippine, henceforth referred as Company, intend to develop and install
crude oil storage tank. It is required due to Petron Refinery desire increasing capacity from 180 BPD
to 270 BPD product capacity to the Refinery.
The design of crude oil storage tank may be influenced by factors, including process requirements,
economics and safety.
1.2 Purpose
The purpose of this document is to provide the PMT with the road map for success in executing the
project. The mission statement is to meet all stakeholders’ requirements within project’s budget and
schedule without compromising quality, health, safety and environment. In order to achieve this, the
set priority shall assist in the resolution of issues or conflicts during project execution. The following
are the key objectives:
Health, Safety and Environment (HSE)

• Zero environmental incidents.
• Conduct Monthly Management Walkabout
• Ensure You See You Act (UCUA) at range of 200-400 man-hours.
Quality
 Ensure audit cycles for duration of the project as per Contract.
 Quality expectations:
- Major Non-Conformance Reporting (NCR) shall respond to COMPANY within 7 days.
- Minor Non-Conformance Reporting (NCR) shall respond to COMPANY within 5 days.
 Repair rate:
- Maximum welding repair rate of 1.5% by length for structural
- Maximum painting repair rate of 5% by area
 Final document completion submission timeliness will be 60 days after start up.
 Ensure 100% audit findings close out after 30 days of issuance.
 Install the facilities so they meet the intent of the Contract specifications or approved deviations
and quality expectations are within minimum or zero non-conformance reporting.
Fabrication
 Minimize carry over punch list.
 Material
- Material Inspection Report close within 10 days.
- Material Inspection Deficiency Report close within 14 days.
Schedule
 Ensure all activities achieved as per Key Target Dates.
Regulatory
 Ensure zero tolerance for regulatory compliance.

TECHNICAL PROPOSAL
 Ensure business engagements with regulatory authorities for the whole duration of the project.
The PEP is a live document and it shall be updated as needed to meet the Project’s evolving
requirements. Any major Variation to the Contract related with a scope change that may change the
execution philosophy will typically result in a revision of the PEP.
1.3 Project Execution Strategies & Critical Success Factor
General
 Perform all work in a safe and professional manner, complying with all applicable laws, codes and
industry standards
 Develop and maintain a project team spirit within BIDDER’s project team, COMPANY’s project
team and participating SUBCONTRACTORs;
 Assist all parties to clearly understand their roles and responsibilities;
 Maintain COMPANY satisfaction within a cooperative project philosophy and work together as a
team and involve COMPANY in the project activities;
 Identify and mitigate risks to appropriate levels. Exploit all opportunities to ensure the project is a
commercial success for both BIDDER, COMPANY and participating SUBCONTRACTORs;
 Ensure efficient engineering, procurement and construction methods, with proven industry
standards are implemented to complete the work efficiently;
 Avoid re-work; Plan all work and work the plan
 Maintain a close interface with COMPANY, our SUBCONTRACTORs and other contractors with an
interface to BIDDER’s activities;
 Meet all key milestone dates on or ahead of schedule;
 Ensure all requirements of COMPANY are met, within the details set out in the Contract and local
Statutory Regulations.
 Maintain records such as minutes of meetings at all progress, interface, subcontract, vendor and
COMPANY meetings.
 Agree on schedules & assign personnel for following up and closure of action items.
 Create an easily accessible Electronic File Index for all project documentation; data records,
correspondence, etc.
 Communicate effectively at all levels within and outside the project organization with all
stakeholders
HSE Management
 Utilize the best incident prevention tools available through hazard management processes.
 Continue and improve upon the HSE successes, best practices and initiatives introduced from
previous years.
 Continue to implement safety initiative campaigns such as Hand Injury Free, Safe Lifting, Life
Saving Campaign, etc.
Engineering
 Timely issue of analysis/procedures and documents.
 Robust detail level procedures.
 Issue of documents to COMPANY based on agreed schedule, prior to commencement of activity.
 Preparation and timely issue of MTO’s and Requisitions.

TECHNICAL PROPOSAL
 Trained and qualified personnel.

 All AFC documents to be stored in project e-directory.
QA/QC
 Review of all inspection data for accuracy, quality of input, verification of inputs and outputs.
 Preparation and compliance with a project audit schedule.
 Pro-active participation and follow-up during the manufacturing, procurement and fabrication
stages to assure the quality of deliverables
Positive Involvement by BIDDER/COMPANY/Vendors

 Solicit VENDORS/COMPANY’s positive involvement to ensure compliance with specifications,
early identification of applicable requirements, reduce approval cycle process time and eliminate
rework during execution.
Cost Management
 Implement strategies that take advantage of synergies by simultaneous Contract.
 Execution and optimization of available resources through EPCI program.
 Complete the project work scope to within the budget allocation.
 Managing SUBCONTRACTORs within budget.
Organization
 Identify and staff PMT to plan and manage project execution. Staff the PMT and key positions of
support organizations with capable resources in a timely manner. Maximize matrix support to the
PMT where the identified PMT to be dedicated to the EPCI Project.
Project Controls
 Accurate cost forecasting.
 Accurate and timely COMPANY billing and forecasting.
 Accurate and regular progress planning and measurement.
 Cost control and budget monitoring.
Schedule
 Handover the completed facilities on or before the agreed scheduled completion date.
 Identification of key dates, milestones, transportation of permanent equipment, vessel
mobilisations, etc.
 Progress schedule will be established and maintained throughout the project.
 Progress will be monitored against the progress of activities and deliverables against agreed
milestones.
Best Practices and Lessons Learnt

 Employ sound construction methodology by conducting in-house constructability review.
 Apply the good practices identified from previous projects.
 Implement continuous improvement plans identified from the Lessons Learnt from previous
projects.

TECHNICAL PROPOSAL
Change Order Management at Worksite

 All change order to be agreed or finalized between BIDDER and COMPANY before work execution
including the quantity of consumables, manpower, equipment and duration required for the
execution of the changes.
 Any change order while performing offshore work, shall be agreed upon by both parties and
affected through Site Instruction/Memo/Deviation and Change Control at worksite to BIDDER/
COMPANY Project Manager for concurrence.
1.4 Definitions
The following definitions are used in this document:
COMPANY : Petron
BIDDER : PT Encona Inti Industri
WORK : Crude Oil Storage Tank Development Project for Petron
EPCI : Engineering, Procurement, Construction and Installation
PMT : BIDDER’s Project Management Team
CA : Certifying Authority
MWS : COMPANY appointed Marine Warranty Surveyor
SUBCONTRACTOR : Sub-contractors employed by BIDDER
Vendor : Vendors supplying materials or equipment to BIDDER
Site : Site means the location (s) of the Crude Oil Storage Tank
Worksite : Worksite means the SITE and any and all fabrication yards and Engineering
offices outside the SITE, individually or collectively, where any part of the
WORK shall be performed

TECHNICAL PROPOSAL
1.5 Abbreviations
The following abbreviations are used in this document:
AFC : Approved for Construction

AVL : Approved Vendor List
CA : Certifying Authority
CBE : Commercial Bid Evaluation
CPD : Centralized Procurement Department
CSR : COMPANY Site Representative
EPCI : Engineering, Procurement, Construction & Installation
EM : Engineering Manager
FEED : Front End Engineering Design
HSE : Health, Safety and Environment
IM : Installation Manager
ITB : Invitation to Bid
MCD : Mechanical Completion Date
MT : Metric Tonne
MWS : Marine Warranty Surveyor
NDT : Non-Destructive Testing
OM : Operation Manager
PEP : Project Execution Plan
PMT : Project Management Team
PO : Purchase Order
PQAP : Project Quality Assurance Plan
PR : Purchase Requisition
QA/QC : Quality Assurance/Quality Control
RFQ : Request for Quotation
RFSU : Ready for Start-Up
SIMOP : Simultaneous Operation
TBE : Technical Bid Evaluation

TECHNICAL PROPOSAL
2.0 SCOPE OF WORK
The engineering, procurement, construction and installation of the Crude Oil Storage Tank
Development Project consisting of all the Tank Foundation, Steel Structure, Tank Shell Fabrication,
Tank Erection, Electrical, Mechanical, Piping System, and Testing and Commissioning.
3.0 PROJECT ORGANIZATION CHART
3.1 Organization Chart
PMT organisation chart for Crude Oil Storage Tank Engineering, Procurement, Construction and
Installation.
3.2 Roles and Responsibilities
The roles & responsibilities of key members of the Project Management Team are as below:
3.2.1 Project Manager
The Project Manager will act as the representative of the BIDDER’s organisation, and play a vital
leadership role in executing the contract in close coordination with COMPANY senior management.
The Project Manager will maintain close interaction with the PMT for various work scopes,
commercial, business managers in its organization with a view to:
 Ensuring resources are assigned to the project establishing the project organisation, roles
and reporting structure.
 Ensuring alignment between the project and the business administration support and
management decision making groups
 Ensuring good governance and Team work

TECHNICAL PROPOSAL
 Acting as chairperson of the Steering Committee.

 Resolving issues and making decisions
 Providing business expertise and guidance to the PMT
 Manage interfaces with COMPANY
 To focus the efforts of all participants towards achieving and exceeding project objectives;
 Harmonising working relations to optimize the overall project schedule & minimize cost.
3.2.2 Control Manager
The role of the Project Planning Manager is to manage and direct the project controls team including
the planning, scheduling, estimating, cost control, contract administration, change management and
control, progress measurement, risk analysis, document control, and administration functions.
The Project Planning Managers responsibilities include but are not limited to:
 Supervision and coordination of the daily activities of assigned project controls staff.
 Assisting in the development and implementation of project control procedures that are in
compliance with COMPANY requirements.
 Assisting in the development of the project control plans and associated procedures.
 Advising the Project Teams on contractual and business administration matters to ensure
COMPANY is compensated in accordance with contractual terms.
 Ensuring project controls activities during assigned project execution are consistently
performed in compliance with established procedures.
 Ensuring effective cost control processes are implemented on the project for the accurate
reporting of cost commitments, expenditures, and estimates at completion.
 Developing project schedules in conjunction with all work groups and applies project control
systems to be used for monitoring, controlling, trending, predicting and reporting work
hours, costs and schedules.
 Ensuring that effective project change management is implemented and that approved
changes are input to the control systems on a timely basis and that changes, trends and
forecasts reflect the project scope.
 Reporting accurate progress and productivity;
 Respond to work delays and other problems and emergencies
 Acting promptly to the requirements of the PMT
3.2.3 Construction Manager
The Installation Manager will report to the Project Manager and is responsible for below for
respective scopes assigned to them:
 Select appropriate construction methods and strategies. Overseeing the planning and
execution;

TECHNICAL PROPOSAL
 Liaison with the Marine Superintendent and other site personnel to execute the work in
accordance with the Contract specification and drawings;
 Oversee the preparation of the installation manual(s) and coordinating the handover
documentation with Engineering and Quality functions;
 Responsible for safe operation of entire marine spread.
 Close supervision and management of project material receipt, handling and transportation
to site.
 Interpret and explain contracts and technical information to workers and other professionals
 Instruct and supervise construction personnel and activities onsite
 Respond to work delays and other problems and emergencies
 Comply with permitting and regulatory authority requirements,
 Managing the SUBCONTRACTOR interfaces, schedule and coordinate all construction
processes so that projects meet design specifications and completed on time and within
budget.
 Assist in preparation and negotiation of cost estimates, budgets, and work timetables
 Planning and directing the transport barges, SUBCONTRACTOR’s equipment and associated
documentation;
 Manage the installation and pre-commissioning activities;
 Managing local field procurement, as required;
 Reporting accurate progress and productivity;
 Acting promptly to the requirements of the PMT;
 Managing Marine Warranty Surveyor’s approval and other relevant regulatory body
approvals necessary to perform the Works.
3.2.4 Engineering Manager
Engineering Manager will be the primary point of contact for all technical and contractual matters
pertaining to installation engineering scope of work.
He will have full responsibility for the technical integrity of all engineering scope executed as part of
the project. He will ensure the engineering work is completed in accordance with the agreed scope
and schedule and to the required standards and quality. He will ensure compliance with the
engineering management procedures and processes. He will take full responsibility for setting the
team objectives, communicating these to the team and setting the procedures in place to ensure
their execution. He will manage and motivate the project team delegating work to the project team
members in a manner that encourages individual responsibility. He will identify and agree with
corporate management the assignment of resources required for successful execution of the project
in a timely manner; control progress and costs consider alternative solutions where necessary, make
decisions, communicate these to COMPANY and the project team.

TECHNICAL PROPOSAL
3.2.5 HSE Manager
The HSE Manager reports to the Project Manager. Specific responsibilities of the HSE Manager
include, but are not limited to directing efforts related to ensuring a safe work environment and loss
prevention including the following:
 Ensuring that all BIDDER and its SUBCONTRACTOR’s operations are carried out in a safe
manner and that the safety management system is in full compliance with corporate
guidelines and operating procedures.
 Participation in the preparation of the HS&E Plan and ensuring that the plan is kept up to
date and reflects all site operations.
 Review of SUBCONTRACTOR safety and loss prevention programs. Ensuring that all BIDDER,
government and COMPANY regulations are properly addressed and carried out.
 Arranging induction programs stressing H&E requirements to all personnel on site.
 Organising regular HSE meetings attended by BIDDER, COMPANY and SUBCONTRACTOR
representatives.
 Stopping any work which is not executed in a safe manner.
 Ensures that proper reports are made to the QHSE Manager and inputs safety and loss
prevention data into the regular monthly report.
 Conducting accident investigations and recommends actions to be taken to prevent
reoccurrence of the accident.
 Chairing and attending project management HSE meetings
 Development, implementation, audit and review of the health, safety and environment
management system for the Project;
 Coordination of the relevant studies and workshops required to assist the Project team
executing the scope of work;
 Participate in vessel(s) HSE inspection and approvals.
3.2.6 QA/QC Manager
The QA/QC Manager reports to the Project Manager and is responsible for:
 Development, implementation and audit review of the Plan for Quality Management
comprising Quality Assurance criteria;
 Reporting the strict adherence of the Project to the Plan for Quality Management to the
Project Manager and the Project Steering Committee regarding all details of this;
 Managing all quality controllers/inspectors throughout the execution process;
 Liaising with COMPANY Quality Manager and Certifying Authority on matters relating to
quality, certification, inspection, etc.;
 Ensuring all quality issues regarding the Work are resolved in an acceptable and timely
manner;

TECHNICAL PROPOSAL
 Development and implementation of Inspection and Test Plans (ITP) in conjunction with the
relevant package engineers and reporting on inspection activities and signing off ITPs in
person or through the inspectors;
 Coordination of surveillance inspections during supply chain management and fabrication
activities.
4.0 PROJECT OVERSIGHT
In addition to the role of CONTRACTOR’s PMT, the use of oversight teams provides confidence that
the work is being properly organised, managed and executed. The following committees and forum
are envisaged at various stages of the project:
4.1 Independent Assessment Group
Independent assessment group comprises of audit teams from the quality assurance, functional
expertise groups, commercial, contracts and HSE departments. At the request of the PMT or at
predetermined project phases, the independent assessment group provides an audit of the projects
processes using both internal and external resources.
4.2 BIDDER HSE Committee
BIDDER’s HSE Steering Committee meetings are held quarterly and chaired by the Vice President. In
addition, monthly HSE Committee meeting are chaired by General Manager Assets and operations
and comprise of representatives from corporate HSE, heads of departments and Project Managers.
They provide strategic direction and oversight of the work being conducted in the HSES domain. This
committee provides direction on what should be conducted in HSE management based on its
collective knowledge of industry trends, revised codes and standards and regulatory expectations.
4.3 BIDDER / COMPANY Interface
BIDDER and COMPANY interface will be in the form of a weekly progress meeting comprising of
project team members from COMPANY and BIDDER. In addition to updating weekly progress
matters, this is a forum for discussion of issues between teams. These meetings provide assurance
to key stakeholders that all project execution activities are being planned, organized, controlled,
reported and generally communicated using appropriate media. This forum also tracks weekly
activities to ensure that the objectives and targets of the Project are consistent with the Contract
expectations.
4.4 Worksite BIDDER / COMPANY Interface
Worksite interface between BIDDER and COMPANY will be in the form of daily progress meetings
held on-board the main vessel. COMPANY’s site representative and BIDDER’s site representative will
attend with Offshore Superintendent to coordinate.

TECHNICAL PROPOSAL
This activity is in line with the BIDDER / COMPANY interface described above. In addition, onshore
PMT will conduct weekly and Monthly progress review meetings. An Action Tracking register will be
maintained with completion deadlines and status updated on weekly basis.
5.0 COMMUNICATIONS
5.1 Communications with COMPANY
Relevant communication by telephone, e-mail or in person shall be confirmed in writing. Copies of

all communications and transmittals shall be mailed or distributed to the appropriate persons in
conformance with distribution matrix established for the Project.
Communications will be recorded in the form of:
 Minutes of Meeting
 DPR’s
 Weekly Report
 Monthly Report,
 Interface Register
 Action Tracking Register, etc.
5.2 COMPANY Meetings
In addition to normal correspondence, minuted meetings will be held with COMPANY as required by
the contract, to discuss and clarify the following:
 Contractual Items;
 Design Criteria;
 Schedule Requirements;
 Interactions with construction and other contractors;
 COMPANY initiated design changes and variations;
 Status and COMPANY review of design if applicable;
 Technical Queries;
 Other special considerations.
Attendees at these meetings include the Project Manager or their delegate. Design Engineers may
be required to attend specific meetings to discuss particular items.
5.3 Correspondence
The Project Director and Project Manager ensure that all design and technical correspondence is
distributed to the relevant design personnel.

TECHNICAL PROPOSAL
Correspondence tracking is to be implemented from Contract Award by the Project Secretary.
5.4 Communications with Authorities
BIDDER’s communications with authorities are limited to BIDDER specific matters only, such as
permits, tax, customs, vessel approval and clearances. BIDDER shall also communicate with the
authorities on matters such as approval for Direct Importation of BIDDER’s equipment, Legal Landing
Right for main work vessel, Right of Way, Development Permit, transfer of COMPANY supplied
materials / equipment, Environmental Impact Assessment, treated seawater discharge permit
approval, and notifications on commencement of offshore construction work to:
 Regulatory and Permitting authorities

 Department of Environment;
 Marine Warranty Surveyor;
 Engineering Authorities;
5.5 Communications with Service Providers
The PMT’s communications with service providers is limited to interfacing, technical, and
operational matters only. Matters involving commercial impacts or changes to subcontract terms
shall be originated by the Project Supply Chain Management team for further handling.
5.6 Internal Communications
Internal communications are in line with guidelines and standards established within the workplace
over many years of successful operation.
6.0 PROJECT CONTROLS
The project cost, schedule, and progress achieved, require close monitoring and control. The
following section describes the plan to manage each of these areas.
6.1 Cost Control
BIDDER’s cost control team will provide the matrix services and is responsible for:
 Preparing project budgets;

 Tracking ongoing costs;
 Analysing any variance between budget and cost;
 Forecasting cost outcome.

TECHNICAL PROPOSAL
6.2 Schedule Control
Project progress will be monitored against baseline schedule and project milestones. Planning
Engineer(s) shall provide schedule forecasts for the Project Manager’s review. Project Manager will
steward implementation of works to meet main milestones.
6.3 Performance Tracking and Progress Reporting
The Planning Engineer(s) within the PMT will be responsible for performance tracking and schedule
control. Project performance will be measured on daily basis against key project performance
indicators. Progress reports are published on an agreed format and issued weekly to the COMPANY.
6.4 Document Control
A document control team shall act as the central focal point for receiving, distributing and
referencing all the project documents and this team will control the flow of all documents and
records between BIDDER and COMPANY.
Correspondence control shall identify the transfer of information between BIDDER and COMPANY
and other participating organizations (service providers, authorities etc.) and shall provide a follow-
up process for responding to questions and actions.
Document Control shall manage and regularly update the project deliverables list status and conduct
follow-up for timely submission of deliverables to COMPANY.
The control and distribution of all documents shall be executed by means of transmittals or by the
distribution matrix.
Objective
 To maintain strict control of all relevant documents for the Contract and to ensure that
COMPANY receive complete and updated set of final documentation for their project
 To reduce duplication of filing systems between all Managers/ Engineers
 To ensure all parties have valid and latest revisions of drawings, specifications and necessary
information
 To coordinate all the various completed documents for final handover to BIDDER / COMPANY
 To simplify coordination and assist in easy reference for all involved
Documents
The document control will coordinate seven groups of documents as follows:
 COMPANY Documents
- Contract Documents
- COMPANY Specifications and drawings
- Procedures

TECHNICAL PROPOSAL
 BIDDER Documents
- Project Specific Procedures
- Sub-contractors Procedures
- Materials Test Reports and Certification
- Engineering Analysis
- Operations Manuals
- Correspondences and Transmittals
 Installation Documents
- Project Specific Installation Procedures
- Technical Queries
- As Installed Schedule Information
 QA/QC Document
- Welding Inspection Report
- Hydrotest /Pigging Report
- Project Audit Reports
 HSE Document
- Safety Statistics
- HSE Reports
- Safety Audit Reports
 As-Built Document
- As-Installed Information
- Survey Report
- Progress Report
- As-Built Drawing
6.5 Public Server
For common usage, proper control and easy retrieval/ reference of all relevant project documents, a
public server is established for use by all PMT members. Relevant personnel are required to ensure
that their respective folders are maintained up to date.
6.6 Project Reports
BIDDER shall periodically furnish COMPANY with reports and other documents for the monitoring of
performance and the status of project execution. Reports shall be issued in hard and electronic
format and distributed accordingly.

TECHNICAL PROPOSAL
7.0 OVERALL EPCI PLAN
7.1 Works Distribution
The EPCI works mainly will be executed by the BIDDER under an Integrated PMT as follows:
a) Detail Engineering Design scope shall be performed by Engineering Subcontractor assigned

by BIDDER
b) Procurement at PT Encona Office, 18 Office Park, Jakarta
c) Construction (Fabrication & Load out) at Shop Fabrication, Jakarta
d) Transportation & Installation at PT Encona Office, 18 Office Park, Jakarta
8.0 ENGINEERING EXECUTION PLAN
8.1 General
The Detail Engineering is divided into two (2) phases. Phase I will be specialised in Design for whole
EPCI scope and Phase II will be further Detail Engineering for Construction (Fabrication & Loadout),
Transportation & Installation.
8.2 Detail Design Engineering Team
A dedicated Detail Design Engineering Team with experienced and qualified professional will be
responsible to oversee and coordinate for this scope.
8.3 Detail Design Engineering (DDE)
Detail Engineering Design (Phase I) consist of Front End Engineering Design (FEED) which was carried
out at earlier stage prior release of CONTRACT and Detail Design Engineering shall be performed for
whole EPCI works to accept, and verify.
The Design base scope of work shall commence with FEED review and development of the design
basis from which the development and issuance of Approved for Construction (AFC) reports,
calculations, specifications, drawings and MTO in accordance with the project scope and
requirements.
The detail design is subject to HAZOP reviews and various HSE studies (HAZID, SIL and etc) which are
to be conducted by third party specialized in safety and risk.
Detail Engineering for Construction, Installation will be performed in further details with latest
information and less assumptions for every Work Package (Phase 2) by BIDDER’s In-house
Engineering Department which is equipped with all required engineering facilities. The scope shall
cover the follow-up detail design, to prepare all engineering deliverables as required to complete the
Construction & Installatio. Detail work method will be performed in accordance with Project Quality
Assurance Plan and Project HSE Plan respectively.

TECHNICAL PROPOSAL
BIDDER reserves the right to design and perform the WORK in any method for the purposes of
efficiency and safety. All the relevant detail design documentation shall be made available during
such period for COMPANY’s review.
8.4 Detail Design Engineering (DDE) Procedure
The following are Detail Design Engineering (DDE) procedures to be implemented for the execution
of Detail Design Engineering (DDE) activities:
8.4.1 Inter Discipline Matrix
IDC Matrix is prepared to identify the list of personnel who are authorised to check and/or approve
documents and drawings.
8.4.2 Progress Measurement
Physical progress of work shall be measured using a mutually agreed method based on weighted
progress as per following guidelines:
Milestone Progress (%)

Issued For Review 60
Issued For Approval 80
Approved for Construction 100
Figure 8-1 Engineering Progress Measurement
8.4.3 Change Control Mechanism
All the cost and schedule impact of the changes shall be submitted to COMPANY for approval.
Implementation of the changes may proceed only after written approval or instruction from
COMPANY is obtained.
8.5 Document Control Procedure
The following Document Control procedure shall be implemented for the execution of document
control during Detail Design Engineering (DDE) phase:
8.5.1 Master Deliverable List
MDL shall list out the entire project deliverables to be developed for the work and shall be
maintained by Document Controller. The register shall cover drawings, specifications, datasheets,
requisitions, reports and other design documents. COMPANY shall be informed of the status of the
MDL every week in the Weekly Progress Report and also Monthly Progress Report. No changes to
the approved MDL shall be allowed without prior approval from both COMPANY and BIDDER’s
Project Directors.

TECHNICAL PROPOSAL
8.5.2 Weekly Progress Report
Weekly progress report shall be prepared by the Planner and shall contain the weekly progress of
this project for all the disciplines.
8.5.3 Monthly Progress Reports
Monthly reports shall be prepared by the Planner and shall contain a section describing the progress
of this project, latest MDL and updated Risk Register.
8.5.4 Project Filing
Project files shall be maintained by the DCC, hardcopy for signed MOM and correspondence letters
between COMPANY and BIDDER shall be filed and kept for future records.
8.5.5 Identification of Documents
Identification of documents and drawings shall be in accordance with COMPANY’s Project

Specifications requirements.
8.5.6 EDMS System
EDMS WEBTOP 6.6 DOCUMENTUM is a system which ensures all Project Documentation is
transmitted electronically between COMPANY and BIDDER via the system in order to establish
smooth daily routine of receiving and transmitting of documents during the project phase.
8.5.7 Distribution of Documents
It is the responsibility of the Document Controller to ensure that all documents are distributed to
the project personnel without delay.
a) Incoming / Outgoing Documents:

The Document Controller is responsible for distribution.
b) Inter Discipline Memorandum:

The originator shall distribute the memorandum to all personnel who need to know its contents;
and to the Project Engineering Manager.
c) Project Documents:
Senior Project Engineer shall ensure that copies of (Drawings, Data Sheets, etc.) project
documents are distributed to project personnel who need to have these documents for further
processing.

TECHNICAL PROPOSAL
8.5.8 Document Review Cycle
COMPANY shall perform a review of BIDDER drawings and data and will be returned marked with
one of the following notations:
1. Work may proceed / Accepted.

2. Work may proceed subject to incorporation of changes indicated. Revise and re-submit /
Accepted with comments.
3. Work may not proceed. Revise and re-submit / Rejected
4. Work may proceed. Review not required / For Information
Returned copies of drawings marked with notation “2‟ or “3‟ shall be resubmitted not later than ten
(10) days after date of transmittal by COMPANY of such copies of such drawings.
For all drawings and data submitted by BIDDER, COMPANY is allowing at least fourteen (14) days for
review and comment.
8.6 Specifications, Codes, Standards and Regulations
Detail Engineering works shall be under the critical path from day one, BIDDER therefore will ensure
the accuracy of the design and engineering works are in accordance with the COMPANY
requirements and specifications in order to reduce any lost time for the delay in obtaining approval
process with minimum hold points by both COMPANY & BIDDER. Purchase Request and
Procurement shall follow closely with DDE to finalize technical details of RFQ.
The Detail Engineering for this EPCI project shall be carried out in compliance with all the
requirements stated in the CONTRACT.
8.7 Technical Information
All the technical documents and drawings were informed by the COMPANY in the CONTRACT based
on the COMPANY data and actual condition. BIDDER is to use the document as basis of design to
complete the Detail Engineering which will be performed within 6 months duration (by the BIDDER).
8.7.1 Engineering Documents
Document preparation for all Detail Engineering for both phases will fully comply with the
CONTRACT requirements and in line with the project control documentation as agreed with
COMPANY during the execution of the project. The Engineering documents will be listed in the
Master Deliverables List (MDL).

TECHNICAL PROPOSAL
9.0 PROCUREMENT EXECUTION PLAN
9.1 General
In line with COMPANY intention, BIDDER’s Procurement Plan shall comply with COMPANY
requirements.
BIDDER’s Corporate Organisation Structure maintains a Centralized Procurement Department (CPD)

located at 18 Office Park Jakarta (PT Encona Office) and CPD shall responsible for the planning,
performing and monitoring of all the Procurement activities for project material procurement,
consumables and work subcontracting packages.
9.2 Procurement Team
A dedicated Procurement Team with experienced and qualified professionals will be responsible to
oversee and coordinate for this scope.
9.3 Procurement Procedure
9.3.1 Selection and Evaluation of Vendor
All new vendors are required to register with BIDDER and be evaluated before being eligible to
participate in the procurement exercise. All registered vendors shall be assessed on their
performance on the project basis. The Procurement Department is responsible to carry out the
assessment of vendors. The Procurement Department is responsible to maintain a list of approved
vendors with the updated assessment records.
9.3.2 Procurement Process
The Procurement Coordinator shall gather relevant information from the Planning Package and the
Engineering Department list of planned PR (Procurement Request) or MR (Material Request) and SR
(Service Request) in order to prepare the Procurement Plan Tracking Status Report (PPTSR) shown in
Procurement and Expediting Procedure. The progress of procurement process shall be closely
monitored with reference to the PPTSR which is updated after completion of each activity. The
PPTSR shall be an official weekly report submitted to the Planning Engineer for progress reporting.
Upon receipt of Approved PR or MR and SR with relevant specification, the Discipline Buyer will carry
out the RFQ exercise with reference to the Approved Vendors List, the ITB and the Procurement
Plan. The RFQ/ ITB shall specifically instruct the vendors/ SUBCONTRACTORs to submit the bids in
two separate envelopes clearly identified as “priced” and “un-priced”.
The bids shall be opened by the committee established by Procurement Department after the bid
closing date. The Procurement Department shall request Engineering Department to conduct a
technical bid evaluation (TBE) of the un-priced bid for the item/ equipment to be purchased. TBE
shall be prepared by BIDDER Discipline Engineer and approved by BIDDER Discipline Lead or Section
Head, and Project Manager, and approval by COMPANY if necessary.

TECHNICAL PROPOSAL
The technical compliance shall be the determining factor of the eligibility to purchase any particular
item. If required, the Procurement Coordinator or Discipline Buyer shall arrange for a technical/
commercial meeting between the short-listed vendors, the engineers or any other person as
directed by the management in order to clarify any technical and commercial related issues.
The Discipline Buyer shall prepare the Commercial Bid Evaluation (CBE) in accordance to the priced
bids and compliance to the TBE. The CBE shall be forwarded to the Project Director/Manager and
respective LOA for recommendation and approval, prior to the issuance of the Purchase Orders (PO)
and WO (Work Order) to the successful vendors and Subcontractors. Copies of un-priced PO and WO
shall be distributed to relevant parties including Project Director/ Project Manager, Expeditor,
Account Department and Material Coordinator/ Store.
9.3.3 Expediting Process
Upon issuance of purchase order, the Expeditor shall be given the unpriced copy of official purchase
order. For critical items, the Expeditor shall arrange for a Kick-Off Meeting with the vendors and the
meeting shall be attended by the representatives of relevant parties from Project Management
Team, Procurement, Engineering and COMPANY.
The Expeditor shall follow up on the submission and approval of drawings and other documents
mentioned in the PO to enable the vendor to commence the production and supply of the material.
The Expeditor shall monitor closely the progress of each vendor and record the latest delivery status
for each order in the Material/ Equipment Expediting Report. The report shall be submitted every
week to the Planning Engineer to capture the procurement progress.
If applicable, the Expeditor shall arrange for source inspection visits for the materials and equipment
which are critical to the schedule of the job. The Expeditor shall communicate regularly with the
vendor to ascertain the exact delivery date and highlight on any threat affecting the delivery to the
relevant parties for the necessary solution.
The Expeditor shall notify the Material Coordinator on the incoming deliveries prior to the arrival of
the material. The Expeditor shall be notified by the Material Coordinator upon arrival of the material
and the acceptance status. In case of any reject or deficiency found during inspection, the Material
Coordinator shall write a Material Inspection Deficiency Report (MIDR) and forward to the Expeditor,
who in turn will liaise with the vendor for rectification, replacement or return of the material.
All vendor drawings and Vendor Data should have a scheduled submission date and the submission
should be monitored closely by the Expeditor. The Expeditor shall maintain a record of the submission
for all drawings and vendor data and shall monitor the approval of these drawings. Delays detected in
approval process shall be highlighted to the relevant parties, to expedite the return to vendor for
ratification and submission of the final approved copies.
9.4 Material Control and Warehousing
Material control and warehousing is to define the standard procedure for receipt, checking,
storing, protection and issue of materials for construction as well as to outline the administrative

TECHNICAL PROPOSAL
procedures for material control. In addition a procedure is included for piping material control in
computerized.
9.4.1 Material Receiving
Prior to arrival of material on site, "advice notices" or other shipping notifications will be received by
the Material Supervisor. He will record the volume and nature of the shipment and assign a storage
location. These documents will be transmitted by the Material Supervisor to the Warehouse
Supervisor with a copy to the related subcontractor(s) (so they can arrange for the off-loading
facilities).
Upon arrival, the material is off-loaded onto the foundation or at the storage location previously
determined, in the presence of one or more checkers. Whenever material arrives on site without
advance notification, the Material Supervisor will (if necessary in cooperation with the Project
Construction Manager), allocate storage and unloading location without any delay, to avoid
demurrage on vendors transport.
All truck drivers will be directed by the guards to report to the warehouse first. If material is to be
unloaded at a point other than Company Central Storage the Warehouse Supervisor will direct the
trucks to the off-loading location. A Material Checker must be present during off-loading. Truck
drivers delivering a large piece of equipment will be met at the gate by warehouse personnel to
guide them to the designated unloading area.
9.4.2 Material Checking
The shipment must first be checked to see whether it conforms with "Packing Lists and the Marking,
Shipping and Invoicing Instructions" issued to vendors by the Home Office Procurement/Shipping
Department, being a part of the Purchase Order. Also the Purchase Order, Purchase Requisition plus
attachments for specific instructions on loading, unloading, delivery, required official
documentation, material certificates, etc., must be checked. On some projects a Purchase Order has
been placed with a Shipping Agent, to what extent the Shipping Agent is involved must also be
checked.
If the shipment consists of unpacked goods, such as structural steel, pipe, etc., each bundle or piece
is checked off the carrier by the Checker. The same applies to boxes, crates or other packed goods.
The Checker signs for the goods that are actually received, and not necessarily those shown on the
delivery document.
Whenever a subcontractor receives Material/Equipment directly, then a copy of the delivery ticket
signed by an authorized subcontractor's representative must be retained by Company's Warehouse
Supervisor and all administrative work performed as if Material/ Equipment was received in
Warehouse and issued to Subcontractor.
If it is not possible to check materials during off-loading the Material Checker signs carrier delivery
slip for "Material received - unchecked". Materials must be carefully checked as to quantity,
specification, and the condition, immediately after receipt. Before signing carrier's freight bill, the
Checker should count the number of pieces received and examine for evidence of visible damage.

TECHNICAL PROPOSAL
Boxes, crates, and cartons should be carefully inspected before taking delivery. If material is received
damaged or not in accordance with packing list or freight bill the delivering carrier should be
requested to make inspection of damage or discrepancies, and proper notation must be made and
acknowledged by carrier on original and copy of freight bill or packing list.
If concealed damage is discovered at a later date, the carrier should be notified immediately and
requested to make an inspection. Materials involved in any claim should be set aside and red tagged
until inspection is completed and liability has been determined. A signed record is to be drawn up on
the result by the parties concerned and an "Over Short and Damage Report" be made. In the event
that the vendor is not responsible for safe custody of goods during transit, claims shall be processed
against the carrier.
The Material Checker is to acknowledge the receipt of the goods only by signing the carrier's copy of
delivery tickets together with the copy for warehouse records, showing date of receipt and
storage location ("Warehouse row G bin 26" or "Material yard row B").
The Material Checker then checks the material thoroughly against the requisition and the relevant
Purchase Order to ascertain that the material meets the specifications and is correct in quantity. If
there is any doubt as to whether or not specifications are being met the Material Checker must
report this to the Warehouse Supervisor for his action.
Upon receipt as outlined above, the material will be tagged to the extent necessary, reflecting P.O.
number and item number and then stored in the allocated location. All small loose parts such as
gaskets, packing rings, bolts, lubricators, gauges, gauge glasses, drip wells, ink, charts, adjusting
pins/keys, couplings, spare parts, etc., delivered as part of equipment, should be stored in bins in a
separate location in the warehouse and clearly tagged with the item number and P.O. number
of the equipment.
Any drawings, material certificates, catalogues, operating instructions and manuals relating to
equipment are to be marked with equipment and P.O. number and turned over to Warehouse
Supervisor for transmittal to the Site Engineering Department.
When material arrives at site for which no Requisition or Purchase Order is available, the Material
Checker reports this to the Warehouse Supervisor who in turn checks with the vendor, Home Office
Purchasing Department, or the Field Buyer to see whether material should have been received. If in
order, a Purchase Order number should be obtained.
Upon completion of the above exercise, the Material Checker will turn in delivery tickets, freight
bills, etc., to the Warehouse Administrator for compiling a Material Receiving Notice. When a carrier
demands freight charges for goods that have been ordered on "free at site" delivery, the freight
should be paid from Petty Cash Funds and the Vendor back charged via Project Accounting. This
procedure is outlined in the Accounting Procedure.
9.4.3 Daily Material Receiving Record
The Material Administrator will enter all materials received (from information on freight bills or
packing lists), in a Daily Material Receiving Record immediately after receipt.

TECHNICAL PROPOSAL
This information should be available from hour to hour for the benefit of the construction forces.
9.4.4 Material Receiving Notice
If no shortages, damages or discrepancies are found, a Material Receiving Notice (MRN) is then
prepared to acknowledge the receipt of the material against the relevant Purchase Order. For
materials arriving at site not covered by Requisition or Purchase Order a MRN should be made, after
obtaining a Purchase Order number, with note in the remarks column "as no P.O./Requisition is
available we are listing materials as delivered to site". After receipt of P.O. and requisition, material
should be checked against hese documents and a revised MRN issued, if required.
Material Receiving Notices must be issued and distributed without delay so that payment may be
made and advantage can be taken of any terms of payment. For Field Purchase Orders the
requisition number should be noted on the MRN. If an Over Short and Damage Report is involved
the Over Short and Damage Report number must be noted on the MRN. (material receipt Notice)
Two or more shipments from one vendor must not be combined, even if they are received the same
day and are applicable to the same order. Materials from two or more packing lists must not be
combined on the same MRN, even if received on the same freight bill. Generally, vendors invoice for
each shipment or packing list separately and the Material Receiving Notice is needed to support
each invoice.
As Material Receiving Notices are made, the requisition or Purchase Order is to be marked up to
reflect receipt of the material. The exact storage location is to be noted on the MRN. This document
is used to update the stock control system.
When the material received must be inspected by a specialist before an MRN is issued, the
Warehouse Supervisor will send an equipment check sheet to the appropriate specialist (Pumps,
Compressors, Heat Exchangers, etc., Electrical and Instrumentation). A copy of this check sheet must
be sent immediately to the Home Office (Expediting Department and Accounting Department). This
advises them that material has arrived on site and that a MRN will be issued as soon as inspection is
done. After the specialist has inspected the equipment (which must be done within three working
days), the check sheet is returned to the warehouse and a MRN issued immediately.
When goods being received are fully listed or described upon the packing list, this packing list can be
used as an attachment instead of relisting them all on the MRN. The Warehouse Supervisor is
responsible that the MRN is checked carefully, location is given, etc. All Material Receiving Notices
will be signed by the Warehouse Supervisor.
Material Receiving Notices are printed in blocks with a white original, and colored copies, and are to
be distributed in accordance with the "Document Distribution List".
9.4.5 Equipment not Completely Acceptable
Occasionally a piece of equipment is received on site with discrepancies which involve correction
costs of a minor nature compared with the total Purchase Order value of the item.

TECHNICAL PROPOSAL
So that Company or Client may take advantage of discounts available for quick payment and also in
order not to antagonize vendors by withholding payment of a large sum because of comparatively
minor discrepancies, a "partial MRN" will be completed with the details of the discrepancy stated on
an Over Short and Damage Report (OS&D Report) with some indication as to "cost to field" of
rectification.
This enables the Home Office Purchasing Department to resolve with the Accounting Department
how much of the vendors invoice should be paid. The Back charge to Vendor procedure will be
followed to ensure that Company does not absorb any cost relative to rectification.
9.4.6 Material Delivered to Third Parties
When materials are delivered by a vendor to third parties (e.g. motors to pump vendors, panel
mounted instruments to panel vendors etc.) the items are received on site "built together". An MRN
for each separate component must be issued, e.g. one for the motor and one for the pump.
9.4.7 Material Certificates
Piping Materials
Each delivery of piping materials, authority and non-authority, will be accompanied by the proper
material certificates.
The Material Checker will check the materials against the certificates. Any discrepancies found on
manufacturer's symbol, heat numbers, etc., will be notified to the Materials Supervisor immediately
for action via the H.O. Inspection/Expediting Department.
An O.S.& D.( Over Short and Damage ) Report will be issued recording the certificate and/or material
discrepancies. Materials are stored in a separate location and labelled with the corresponding O.S.&
D. Report Number.
The O.S.& D Report is cleared upon receipt of the correct certificate or upon replacement of the
material as applicable. Under no circumstances will materials be released for construction unless the
correct certificate is available.
9.4.8 Material Certificate Register
The register will show:

 Company Certificate Number
 Fabricators Code
 Charge Number
 Short Material Description
 Schedule/Pressure Rating
 Size
 Quantity
 Any other information required by contract
On completion of the project, Home Office will produce a certificate register following Client
requirements from data accumulated from the material certificate register.

TECHNICAL PROPOSAL
9.4.9 Material Receiving Notice Register
An MRN Register will be maintained by the Warehouse Supervisor. This register must show:
 MRN sequence number.
 Date materials received.
 P.O. number.
 Vendor.
 Material Description.
9.4.10 Over, Short and Damage Report
In all cases of materials damaged, lost in transit, short or over shipped by vendor, notation must be
made on the Material Receiving Notice and Over, Short and Damage Report (OS&D Report)
completed by the warehouse.
It is imperative that a clear cross-reference is made, i.e. Material Receiving Notice number on Over
Short and Damage Report and Over Short and Damage Report number on Material Receiving Notice.
In the remarks column of the Over Short and Damage Report, a note must be made as to the
corrective action to be taken. Company Home Office Procurement/Expediting Department is
responsible for this action for Home Office Purchase Orders, including update of Computerized
Material History file if applicable.
In the case of an overshipment on a Home Office Order, this form advises Home Office if the
overshipped quantity can be used by field or if it should be returned to vendor for credit.
Field makes no disposition of this material, either as to use or return until advised by the Home
Office. If to be returned, the Home Office Expediting Department will secure shipping instructions
from the vendor and advise the field by means of an AVO or telex authorizing shipment.
In some cases, it will be the responsibility of to decide if overdelivered items can be accepted. In
such cases an Over Short and Damage Report is not required. approves the Material Receiving
Notice which should state "Overdelivered quantities will be accepted by Client".
When a shipment from vendor is short, the Over Short and Damage Report advises Home Office
whether or not materials are needed and the Home Office Expediting Department takes the
necessary steps to secure materials or credit from the vendor. If the shortage is caused by loss in
transit, and the material is not urgently needed, action should be withheld for a reasonable length of
time to allow the carrier to attempt to trace and locate lost items.
When materials/equipment are received damaged or not according to specification, a copy

of the O.S.& D. Report is forwarded to the Site Engineer for the issue of a Non-conformance Report.
When materials/equipment are received damaged, a copy of the freight bill or packing list with
acknowledgement of the carrier (see Item 3.0 Material Checking) should be attached to the Over
Short and Damage Report.

TECHNICAL PROPOSAL
Proper notations on Over Short and Damage Reports advise Home Office of all contingencies
involved, what action is needed, and whether action is up to the Home Office or Field Office.
Claims for concealed damage can be very troublesome and the importance of careful checking as
soon as possible after receipt of material at site cannot be over- emphasized.
Whenever an Over Short and Damage Report is cleared, a Material Receiving Notice should be
issued covering clearance of the Over Short and Damage Report with reference to both the Over
Short and Damage Report and the Material Receiving Notice on which the discrepancy was originally
reported.
If claims on vendors or carrier involve repairs by field forces (after authorization by the Project
Construction Manager or Home Office A.V.O.), costs of materials, equipment and labor must be
accumulated and included in a claim (see Backcharge Procedure).
Over Short and Damage Reports shall be distributed in accordance with the "Document
Distribution List" or "Construction Coordination Procedure".
9.4.11 Over Short and Damage Report Register
The purpose of the register is to maintain a record of all Over Short and Damage Reports to ensure
that the Home Office Expediting and Accounting Departments are informed of all reports.
This register shall be maintained by the Warehouse Supervisor. Once a month a listing of all open
Over Short and Damage Reports shall be mailed to the Home Office Expediting Department with a
copy to the Project Construction Manager.
Over Short and Damage Report Register
Register will show:
 Over Short and Damage Report sequence number.
 Date.
 Purchase Order number.
 Material Receiving Notice number.
 Vendor.
 Description.
 Material Receiving Notice clearance number.
 Remarks.
 Non conformance report, if relevant.
9.4.12 Recording of Material Stocks
All materials received shall be entered on Material Stock Record Cards, which reflect particulars as
shown on the Material Receiving Notice, Over-Short Reports and Purchase Orders. The complete
description of the material, item number and the exact storage location shall be included.
9.4.13 Storage of Material at Site
Upon receipt, all material not directly delivered to the works or Pipe Fabrication Shop, should be
stored either in the warehouse or material yard.

TECHNICAL PROPOSAL
All small materials, instruments, electrical material, tubing, small pumps, etc., must be stored inside
warehouse.
All large pipe, fittings, valves, etc., will be stored in the warehouse or yard. Materials will not be
stored directly on the ground. An underlayer of wood or suitable material should be used.
All pipe must be stored by type, size and schedule on sleepers with at least 10 cm slope for water
drainage and pipe ends (plain or threaded) checked for satisfactory caps/protection. If not already
done by vendors, the Warehouse Supervisor is responsible that all material stored either in the
warehouse or yard is properly marked and color coded in accordance with the specification.
Hours and materials spent on this marking and coding shall be reported by the Materials Supervisor
for backcharge purposes.
This color coding must be maintained throughout the storage/ construction period. Each member of
the Material Department and Specialist Engineers will be supplied with a copy of the marking and
color coding procedure to facilitate the application of correct marking upon the material when
received and the traceability of the material throughout the construction period.
Corrosion protection is either the Subcontractor's or the Warehouse responsibility. Warehouse
Supervisor shall check regularly that this work is properly done.
The Materials Supervisor will check on a regular basis the handling and storage of the materials at
the subcontractor's shop.
9.4.14 Material Issue at Site
All materials will be drawn from the warehouse on a Material Requisition which must bear the
signature of the Subcontractor's authorized Supervisor or the Company Specialist. A list of
authorized signatures should be kept and should show the following:
 Name of employee (Printed).
 Function (Title).
 Signature Specimen.
A block of numbers shall be allocated to each subcontractor. Material requisitions shall reflect
relative item numbers, quantity, description, drawing and/or Isometric number, and area and/or
unit number. These requisitions shall be issued in duplicate, the original for the warehouse, the copy
for retention by the drawer of the material.
Material requisitions must be checked carefully before material is issued to assure that specific
allocation is given, and that subject material has not been previously issued. Whenever material has
been previously issued, the Material Administrator should write on requisition.
Material should never be issued twice. If delivered by error, the Warehouse Supervisor will
collect this material from the Subcontractor.
The Warehouse Supervisor will receive from the Site Engineer a copy of all piping iso/drawings and
their revisions. All issue of material must be marked with red pencil on these drawings. This is for
control purposes and to ensure that no material has been issued twice.

TECHNICAL PROPOSAL
Upon receipt of a revision to a drawing or Isometric materials have to be checked against the
previous issue of the document. In the event more materials are required, Company should prepare
this material and inform the Subcontractor accordingly. Where materials have been deleted, the
Subcontractor shall be requested to return this material to the warehouse if not necessary for
drawings/ requisitions in hand for issue. The Subcontractor is informed in writing when deleted
materials from one drawing/requisition have been allocated to another drawing/requisition.
After the relevant materials have been issued, the material requisition is posted in the Materials
Stock Record Card.
All requisitions received in the warehouse must be filed consecutively according to requisition
number and per subcontractor. All finals must be filed together. All partial requisitions must be filed
separately.
If materials requested on a requisition are not in stock, the Warehouse Supervisor should check if
they are on order. If this is the case, the requisition should be filed in an "outstanding requisitions"
file. This file should be periodically checked to see if any requisitions can be further completed. If
outstanding materials are not on order he will send a photostat copy of the requisition to the
Materials Supervisor for further action. Where piping material is required, other than for an iso/
drawing, e.g. for temporary lines, the requisition shall be approved by the Project Construction
Manager or his delegate.
Under no circumstances will material be issued from the warehouse or storage yard to
Subcontractor without the presence of a member of Company's Material Department and use of all
required material control documents.
9.4.15 Out shipment of Materials - Out shipment
Materials which are shipped from the job site, must be covered by an Out-Shipment Report. This
Out-Shipment Report must reflect the Out-Shipment Report sequence number, quantity, item
number and full description of the material, together with the Purchase Order Number upon which
the material was originally received.
Full details of consignee's name and address, reason for the shipment and method of shipment must
be given. Out-Shipment reports will be signed by the Materials Supervisor. may request to
countersign these reports. The carrier must sign legibly for receipt of the goods and insert the
registration number of the vehicle carrying the goods.
Out-Shipment Reports must be posted on the Materials Stock Record Cards. If an Out-Shipment
Report involves material being sent out for repairs or replacement, a Material Receiving Notice must
be made when material is returned/replaced with a note. Material Receiving Notices for clearance of
Out-Shipment Report must be noted in the Out-Shipment Report Register.
Subcontractor's property which is moved from the site on their own Out-Shipment form must first
be checked by the Company Warehouse, and a properly completed Company Out-Shipment report
must be attached as cover sheet.

TECHNICAL PROPOSAL
The Materials Supervisor will sign Out-Shipment Report after obtaining approval from Project
Construction Manager.
Materials on Company Home Office Purchase Orders should be out-shipped only after obtaining
AVO or telex approval from the Home Office Expediting/Purchasing Department. An Out-Shipment
Report Register will be maintained in Warehouse by the Material Administrator.
9.4.16 Out-Shipment Report Register
This register will show:

 Out-Shipment Report sequence number.
 Date.
 Name of consignee.
 Description of material.
 Remarks (used also for Material Receiving Notice clearance number). A copy of the Out-
Shipment Report must be mailed to the vendor. Further distribution of Out-Shipment Reports
should be made in accordance with "Document Distribution" or "Construction Coordination
Procedure".
9.4.17 Other Material Registers
Besides a register for Material Receiving Notices, Out-Shipment and Damage Reports, Out-Shipment
Reports, the Warehouse will maintain the following registers:
Cable Reel Register

This register will show a listing of all cable reels received at site. Including the name of the vendor,
size and quantity of cable, date received, Purchase Order number, Material Receiving Notice number
and cable reel number, and whether returnable or not. Whenever empty reels are returned, the Out-
Shipment Report number and date of return must be posted in this register.
Special Container Register - Returnable Containers

In some cases, materials are received at the job site in containers for which special charges are
made. These are charges on invoices for material involved and credited on return. In other cases,
they are charged only if not returned within a reasonable time to vendor. Those items received
on Home Office Purchase Orders will be covered by an AVO from Home Office Purchasing
Department advising shipping instructions and authorizing return when empty.
Items on Field Purchase Orders should be reported by Materials Supervisor to Job Buyer.
9.4.18 Warehouse Purchase Order and Requisition Files
The Material Administrator shall maintain Home Office Purchase Orders, Requisitions, Field Purchase
Orders and Requisitions files. The right hand side of the folder will contain the requisition, Purchase
Orders and Amendments. The left hand side of the folder will contain Material Receiving Notices,
Out- Shipment Reports, Over Short and damage Reports, packing lists and all other documents
pertaining to the Purchase Order.

TECHNICAL PROPOSAL
The Purchase Order folder is an "open file". When the final Material Receiving Notice has been
issued, Purchase Order files will be marked "Complete" and transferred to another section of the
filing cabinet.
9.4.19 Vendors Cards
The Material Administrator will maintain for Field and Home Office Purchase Orders a card system
indicating names of vendors, description of material and Purchase Order number.
Cards will be filed alphabetically. This card system helps to locate Purchase Orders if only the
vendor's name is known.
9.4.20 Disposal of Surplus
It is our normal practice to dispose of all surplus material as soon as practical. The procedure for
disposing of this material will vary depending upon the type of contract. If materials were purchased
on a reimbursable contract all materials actually belong to , and the Project Construction Manager
disposes of the material in accordance with 's wishes as expressed through their field representative.
However, if requests Company to dispose of the material, this will be accomplished as stated below:
Approximately at 85% of job completion all surplus material is to be inventoried.
The inventory will list the item number, Purchase Order number, vendor and description and value.
Three copies should be mailed to Home Office Purchasing Department. should also be contacted to
determine if they are interested in acquiring the materials.
The Purchasing Department will investigate possibilities for disposal of the material and
subsequently advise field as to what action is to be taken. After the first surplus list has been issued,
revisions to this list must be issued regularly.
All shipments of material from the job shall be covered with an out-shipment report.
9.4.21 Scrap Control and Disposal
 Scrap Control
Sub-contractors are responsible for seeing that economical use is made of piping
material with a minimum of scrap. All material moved to the scrap location must be
inspected by the Piping Specialist. No alloy material may be scrapped without the
permission of the Piping Specialist.
No fittings may be modified without the permission of the Project Construction Manager
e.g. no. 90° elbows will be cut to make 45° elbows. If for some emergency such a
modification is made, the Company Piping Specialist must instantly notify the Material
Supervisor in writing giving full particulars.
In addition, if a repair or change is made, every effort must be made to return flanges
and fittings to the warehouse. Flanges in particular can be sent to an off-site machine

TECHNICAL PROPOSAL
shop for machining on an economical basis for later reuse. Scrap collection locations will
be available at site. Subcontractors and the Company Piping Specialists will be
responsible for a weekly collection of scrap in their respective areas and dumping at the
indicated scrap fill locations. All alloy material shall be kept separated by types.
 Scrap Disposal
On a reimbursable job, scrap disposal will be discussed with and actions to be taken
incorporated in the Construction Coordination Procedure. On a lump sum job it is the
responsibility of the Project Construction Manager to dispose of scrap in the most
economical manner and proper (auditable) records shall be kept.
 Special Piping Materials

A separate storage area in warehouse and yard may be alloated to special piping
materials. This decision is to be made by the Materials Supervisor and approved by the
Project Construction Manager.
Upon receipt, materials are thoroughly checked against the requisitions and the relevant
Purchase Order to ascertain that the material meets the specifications and is correct in
quantiy.
Color coding is verified in accordance with proper specification. Paint shall be of good
quality suitable for outdoor use, if not suitable, remedial action will be taken
immediately. Color coding will be checked on a regular basis and upgraded if necessary.
Materials are checked against certificates, manufacturer's symbol and charge numbers
are verified.
Taking into account the long delivery delay on most special types of material, no extra
material, such as for field changes, lost material by Subcontractor, etc. will be issued
unless approved by the Construction Superintendent.
The Materials Supervisor will notify the Home Office immediately of the additional
material requirement even though it might be covered by contingency material.
Pipe Lengths
The charge number will be transferred as required by the specification or applicable
authority. The stamping will be done by an authorized representative from the
Mechanical Subcontractor in accordance with the instructions of the Company Quality
Assurance Manager.
Material Administration
The material administration will be handled in the same manner as for other material.

TECHNICAL PROPOSAL
9.4.22 Equipment Protection During Construction
 Documentation
Records shall be kept to document the protection given the equipment while the
manufacturer's guarantee is in effect. These records shall be kept from the date of
arrival of the equipment at site, showing dates of application of services of each piece
of equipment.
 Rust Preventives
The rust preventives. Some Clients may produce their own rust preventives, in which
case their equivalent preventives shall be used.
Preventive suppliers can give more information as to coverage, application temperature,
method of application, drying time and method of removal.
All interior and exterior surfaces shall be clean and dry before any rust preventive
materials are applied. For cleaning of surfaces mineral spirits or solvent shall be used.
Kerosene or gasoline shall not be used as cleaning agent.
.
 Machinery
On receipt at the construction site, casing and internals are to be inspected through
piping nozzles, etc., to see if rust preventive has been applied. Protection to be done as
follows:
Turbines, Blowers, Agitators, Gear Cases, Centrifugal Pumps and Compressors.
 Motors and Generators

Motors, designed for indoor use, and generators are to be stored indoors. Motors,
designed for outdoor use, can be stored outside free from ground with protective
covering, permitting good ventilation. If space heaters are furnished within the units,
they shall be connected to be continuous power supply of the proper rating, when stored
outside, or installed at their service location.
Brushes shall be removed from brush holders, and shall be stored in a dry place,
where condensation will not occur.
Coat couplings and exposed machined surfaces with RUST-BAN 373. Measuring and
recording of insulation resistance values to be carried out as stated in the "Construction
Coordination Procedure".
 Transformers
Transformers intended for outdoor installation can be stored outside.
Large indoor transformers may be stored outside, if raised above grade to prevent any
damage from surface water and if a shed roof and tarpaulin siding are provided.
Where units are supplied complete with insulation liquids/gases, these should be
checked on arrival at site. If level or pressure is not within vendor's tolerances, possible

TECHNICAL PROPOSAL
leaks should be located and rectified. Monthly checks on level/pressure should be made
and rectification work carried out when necessary.
Any separately supplied insulation liquid may be stored outside, without protective
covering, if laid on their side at an angle of 45°, with the large bung downwards.
 Switchgear, Starters and Control Equipment

Equipment shall be stored indoors in a dry, warm place where condensation of humidity
cannot occur.
If high relative humidity or large, rapid changes in temperature are expected, heaters
shall be used to maintain the temperature of approximately 5°C above minimum daily
temperature.
If space heaters are furnished within the equipment, they shall be connected to a
continuous source of power of the proper rating.
 Cables
Rotate reels of properly insulated lead sheathed cable 90° every two weeks to prevent
migrating oil from collecting at low points.
Measure and record gas pressure in low pressure gas filled cable when received and
weekly thereafter.
If falling pressure indicates a leak in the cable, maintain same with dry nitrogen until leak is
sealed.
 Batteries
Batteries should be stored indoors in an inactive area to avoid accidental breakage.
Batteries that have been shipped dry and charged shall have the seals checked regularly
and in case of damage, repaired according to vendor's instructions.
Nickel-cadmium and Lead-acid batteries that have been shipped dry do not require
maintenance. For those shipped wet, electrolyte levels should be checked and filled
as required. These batteries should also be recharged tri- monthly. Watch for over-
charging.
 Instruments
For instruments a warm, dry and vibration free environment in a secure under cover
storage area is required. Recommended environment conditions are temperature
range of 15° to 30° and humidity between 30 to 40%. Instruments can be stored in the
above environment for up to four months in their shipment cases. Where
cases/packing have been opened the plastic coverings are to be retained and
resealed in the manner they were shipped. Panels to be stored in their shipping cases up-
right until moved into the control house.

TECHNICAL PROPOSAL
Instruments installed in outdoor locations shall be protected from weather and mechanical
damage.
 Piping
Any protective coatings/paintwork on piping shall be maintained throughout the storage
and construction period, as well as the colour coding on piping.
 Flanges
Flanges from 2" and up can be stored outdoors on timber floor or palets.
All flange faces to be cleaned with a solvent if required and protective coating applied
and maintained. When machinal flange face is damaged, remedial work has to be
carried out before use.
Flange facings with 125 RMS (for use with spiral wound gaskets) MUST be remachined
before use, if damaged.
 Valves
Manually operated valves from 2" and up can be stored outside, on a timber floor or
pallets.
Large automatic control valves such as slide valves, motor operated valves may be stored
outdoors, on timber floor and with suitable covering over each valve. Valves stored
outdoors shall be inspected every two weeks and coating or rust preventive renewed if
required. On arrival at the site, when spot check reveals remove all flange covers, clean
flange faces with solvent and coat with a rust preventive. Inspect valve stems and valves
internals. It necessary clean with solvent and apply rust preventive coating seat all
manually operated valves. Plug valves and soft-seated ball valves to be stored in open
position. Valves to be stored with spindles in vertical position.
Valve handwheels must not be used for lifting valves, slings etc. must not be passed
through valve bore during handling. Plug any open threaded connection.
Each valve shall be fitted with an aluminium tag securely attached with stainless steel
wire.
Each tag shall be clearly stamped with the valve item number. Tags shall normally be
closely attached to the gland bolting. Tags on valves that do not have gland bolting may
be attached to the handwheel or other appropriate locations. Tags shall not be attached
through boltholes of end flanges or where handling might be subject to damage or loss.
If not done so by vendor, warehouse to take action.

TECHNICAL PROPOSAL
10.0 CONSTRUCTION
10.1 Pre-Construction Planning and Control, Mobilization and Field Start
10.2.1Proposal and Input
The primary objective in this phase is the identification of problems and opportunities related to
successful execution of the work. Upon a written request from the Proposal Manager, listing the
data required from the Construction Department and advising the date the information is needed,
the Manager of Construction will instruct his staff on the execution plan and philosophy to be
followed.
All relevant sections of the Construction Department will participate in providing information to the
Proposal Manager after approval by the Manager of Construction. This input for the proposal will
include:
 A review and comments on 's inquiry documents and request for proposal.
 A review and comments on the draft of the proposed contract form that will accompany the
proposal, if applicable.
 Participation in the site survey and assistance to the Proposal Manager in preparation of he site
survey report.
 A review of the layout of the project and suggestions for any alternatives which.
 might simplify construction and reduce project costs.
 Assistance to the Proposal Manager in writing and/or editing those portions of the proposal that
pertain to the construction organization and execution plan.
 In conjunction with the Planning and Scheduling Department, participation in review and
comment on the proposed project schedule.
 Preparation of the Field Organization Chart and staff assignment durations including local staff.
 Furnishing resumes of key Construction personnel nominated for the job.
 Analyzing local labor availability and productivity.
 Assisting in the analysis of prospective local subcontractors including fabrication shops.
 Determining construction temporary facilities and equipment requirements and furnishing a
complete list together with the length of the time required for each item.
 Furnishing an estimate of the number of Construction Department Home Office hours required
to support the proposed project.
 Suggesting any alternative ideas to the proposal that would result in an advantage to Company.
 Participating at the presentation to when requested by the Proposal Manager.
10.2 Pre-Construction Check List
10.5.1Home Office Accounting Procedures
The Project Construction Manager shall review all job accounting procedures, i.e. purchase order
execution, method of payments, Field/Home Office or both, and any other procedures which may be
contrary to normal operating procedures and peculiar to his project.
10.5.2Signatory Requirements

TECHNICAL PROPOSAL
The Project Construction Manager shall ensure that all signatory requirements are executed in the
Home Office prior to departure to the job site. This shall include banking, accounting (internal) and
any other requirements for the job. Company Accounting shall advise Construction of these
requirements.
10.5.3Site Computer Applications
The Project Construction Manager shall be briefed and become thoroughly familiar with all
computer applications to be utilized in the course of the project. Computer field support
requirements shall be listed in detail as part of the Project Construction Manager's file to facilitate
reservations and procurement of such equipment and facilities during job set-up phases.
10.5.4Site Communications
The Project Construction Manager shall review with the Home Office Construction Department the
telephone systems for anticipated heavy telephone traffic/computer applications.
TWX/telex/telecopier requirements should be reviewed with Construction and Project Management.
Approval shall be secured prior to departure.
10.5.5Site Safety Regulations
The Project Construction Manager shall be supplied with the pertinent safety regulations pertaining
to the job. If the job is on foreign soil, he shall be responsible for acquiring the safety rules and
regulations of the country. The Project Construction Manager shall acquaint himself with these
facts prior to starting the job.
10.5.6Site Accounting
On some contracts, certain costs are reimbursable. When this is the case, requirements relative to
time sheets, invoices, purchase orders and other information should be discussed with 's
representative in the field. This may be best accomplished by a joint meeting at the Home Office
between the following persons:
 Project Construction Manager
 Office Manager
 Project Manager
 Project Control Manager
 Client Representative(s)
10.5.7Site Vehicle Logistics
The Project Construction Manager shall verify that the Home Office Traffic Department is
aware of and has or shall act on the following:
 Local site vehicle registration policies.
 Routing requirements for major equipment.
 Engagement of agents and drayage contractor for movement of equipment and supplies to the
job site.
 Distribution of shipping documents.

TECHNICAL PROPOSAL
 Customs, bonding and declaration procedures, where applicable.

 Road weight and clearance requirements from rail or water sidings into the job site.
10.3 Permits, Licenses and Registrations
The Home Office Construction Department shall check with and the Project Manager about the
need and responsibility for acquiring building and other permits and necessary licenses. The
following is a list of licenses or registrations which may be required prior to start of construction in a
particular location:
 A current registration to do business.
 A building permit for construction.
 A current contractor's license.
 Local/State/Provincial registrations relative to excavation.
 If the construction facilities will discharge effluent into streams, etc., proper licenses and
permits should be obtained from local, provincial, State and Federal/Governmental agencies.
10.4 Mobilization Checklists and Procedures
Straightforward execution of the work in an efficient and timely manner with strict control of cost,
time, and quality is essential. Work will be scheduled as far in advance as possible with sufficient
flexibility retained to permit adjustment to meet unforeseen circumstances.
The appropriate date for the actual start of construction operations in the field will be determined
by the Manager of Construction, after consultation with , the Project Manager and the Project
Construction Manager. This date should be predicated upon the assurance of a sustainable supply of
drawings, equipment, material and subcontract activities to maintain optimum utility of field
construction resources. This key information will be reflected by the Project Schedule and Detailed
Construction Schedule.
10.5 Temporary Construction
10.5.1Temporary buildings and installations
Temporary construction buildings and other installations will be planned prior to the start of
Construction by the Home Office Construction Department based on economy commensurate with
job size and local regulations. Consideration should be given to the location of warehouse, tool
rooms, change houses and plan shelters to minimize walking by craft employees. Care should be
taken to locate buildings to minimize liability to damage from fires or explosions which might occur
in operating units.
Whenever possible, the Field Office should be located so that as much of the jobsite as possible is
visible from the Project Construction Manager's Office. Temporary buildings erected at the jobsite
will be in accordance with drawings and specifications issued by the Home Office Construction
Department, which shall be in accordance with any government or local building requirement. After
basic building requirements have been met, no changes or additions are to be made unless
approved by the Project Construction Manager. Parking lots, temporary roads, and storage areas are

TECHNICAL PROPOSAL
to be laid out and properly surfaced before commencement of construction activities. The extent of
the required surface shall be reviewed with the Manager of Construction and the Project Manager.
Company Signs
Company signs are to be erected at strategic points of the job to direct workmen, vendor deliveries,
and visitors to the site offices.
Signs may be subject to Client and/or local authority approval

Any signs which are not to be transferred at the completion of the project for use on other jobs are
to be effectively dismantled and disposed
10.5.2Insurance
The processing of all insurance matters in the field shall be handled by the Office Manager who
receives instructions from the Director of Administration in the Home Office. These instructions
are specific for each job and are issued to the Office Manager as required when the Field Office is
established.
 The Project Construction Manager is responsible for super vising all insurance matters and is to
ensure that they are in complete accordance with instructions of the Director of Administration.
 In no instance will the Project Construction Manager or any member of his staff purchase
insurance of any kind unless approved by the Director of Administration.
 In the event of an accident or loss of any kind, neither the Project Construction Manager nor
any member of his staff shall admit any liability. All information relative to possible claims must
be directed to Home Office for their consideration and further distribution, as required.
 No subcontractor or third party equipment will be allowed to start work on the site until copies
of his insurance certificates have been received in accordance with Company's and/or Client's
requirements. These requirements are laid down in the "Terms and Conditions" which
accompany the purchase order.
 Builder's all-risk insurance is carried on all Construction projects. This insurance may be carried
by or by Company. Builder's all-risks insurance covers chinery, apparatus, materials, equipment,
temporary structures and all items which will become part of the finished project. The coverage
also applies while such materials are at the jobsite or in transit to the jobsite.
 If there is any damage or loss applicable to the construction effort, it is important that those in
the field having knowledge of such loss report it immediately to the Office Manager. It then
becomes his responsibility to report all particulars of the loss to the Director of Administration
in The Hague, who will determine if a claim can be filed and issue instructions for its processing.
 It is imperative that losses be reported to the Home Office immediately, since the collection of a
claim from the insurance company can be jeopardized if a claims adjuster is not promptly
assigned to survey the damage.
 Except in an emergency where actions are necessary to prevent further losses, no corrective
work involving insurance claims shall be undertaken until authorized in writing by the insurance
adjuster or the Director of Administration. In all cases where damages are discovered, photos
are to be taken to show actual conditions before corrective work is begun.
 All corrective work shall be assigned a proper reference code for the purpose of accumulating
costs.

TECHNICAL PROPOSAL
10.5.3Indirect Costs Forecast and Control
Special attention should be given to the Indirect portion of the budget which includes the following
areas:
 Construction Equipment and Equipment Rental.
 Small tools and consumables (mainly on direct-hire jobs).
 Temporary Construction.
 Indirect Labor and/or Staff.
 Transportation.
 Mobilization and demobilization.
 Field and Home Office Supervision.
 Travel, Subsistence and Lodging.
 Insurance and Payroll Taxes.
 Repair Parts and Maintenance.
 Craft Welfare and Fringe Benefits.
It is imperative to concentrate on the major accounts of the budget since the cost reporting system
emphasizes these areas. This tendency helps in the indirect area as well since the major accounts
have a direct bearing on indirect expenditures. Nevertheless, the indirect accounts must be
carefully managed to stay within all budgets.
10.5.4Site Arrival Check List
When the Project Construction Manager arrives at the site location he shall take the following steps:
Local Rules/Regulations/Authorities
Review the project with and establish local rules and regulations, contact local authorities as
required in coordination with the Project Manager and .
Post Office Box/Drawer

Secure a convenient Post Office Box/Drawer and notify the Construction Department of the new job
mailing address. The Construction Department shall be responsible for internal distribution of this
address.
Checking Account
Establish a checking account with a local bank, which is approved by the Home Office.
Field Office
Establish a Field Office, either on or off the site as conditions warrant, in order to immediately have
available administrative facilities. Temporary quarters shall be provided for if site
facilities/occupancy are not immediately available.
Telephone
Contact the telephone company for immediate service. A rotary number telephone switching system
shall be secured for the permanent installation with line requirements specified to handle the

TECHNICAL PROPOSAL
anticipated traffic. Notify the Home Office Construction Department immediately of the telephone
numbers.
Radio
Preparation and accommodations shall be initiated for two-way, short wave radio
communications, if applicable/permissible. Copies of local FCC/Foreign radio operation requirements
shall be directed to the Home Office Construction Department for approval prior to initiating any
installation.
10.5.5Logistics Check List
All logistic information shall be investigated and reported to the Home Office Construction
Department for distribution to Project Management, Purchasing and Project Control.
 The most accessible public transportation or terminal, whether it be railroad, airlines, etc.
 On foreign projects, local customs, immigration or entry regulations, and any changes thereto
shall be forwarded for distribution to the Personnel Department.
 Information on Air Freight Deliveries.
 Information on railroad freight and terminating carrier, and railway express deliveries.
 Terminating truck lines and forwarding yards readily available.
 Water shipping carriers, access to site and cargo handling capabilities.
Offsite warehouse and open storage facilities for any/all equipment if onsite storage is restricted.
Onsite and offsite bondable storage requirements for customs clearance on foreign jobs. Any/all
customs regulations peculiar to the site location.
10.5.6Establishing Local Suppliers
The Project Construction Manager shall ensure that accounts are established for local procurement
of consumables. (Home Office Purchasing should be solicited for assistance on securing trade
discounts if not readily available).
10.5.7Local Consumable/Services Check List
The following Consumables/Services where applicable, should be solicited along with

competitive written bids/quotations normally supplied on a unit price basis:
 Lumber.
 Hardware.
 Automotive Supplies.
 First Aid and Safety Equipment.
 Sand, Gravel, Aggregates and fill material.
 Ready Mix Concrete.
 Contract Hauling.
 Welding Gases and Welding Supplies (direct hire only).
 Fire Protection Equipment.
 Any other anticipated consumable supplies involved with field construction.

TECHNICAL PROPOSAL
Note: Normal contractual terms of some types of contracts require use of Client supplied vendor
lists and Client approval prior to entering into an agreement with vendors.
10.5.8Local Equipment Rental Policy
The Project Construction Manager shall ensure that local equipment rental dealers are contacted
and arrange for proposals.
When negotiating prices for long term rental, the rental purchase option should always be included
along with the rental quote.
When renting equipment, the contract shall be written so that the vendor/dealer carries insurance
for the equipment and the operator(s) while in transit to and from the Company job site.
Notify Home Office Construction Department of pending arrangements prior to final commitment so
they may notify both Company and local site insurance carriers of the arrangements and verify
recognized coverage.
10.5.9Jobcars
Jobcars and/or job buses will be assigned by the Home Office Construction Department. Only the
Project Construction Manager, Field Superintendent, Site Engineer and Office Manager shall be
permitted the use of a site vehicle to commute from home to the job site and back, if a jobcar is
assigned to them. An exception may be made by the Project Construction Manager, on a per case
basis only, to permit the use of a site vehicle by other than the aforementioned persons for special
overtime assignments.
Other site vehicles will not be permitted to leave the confines of the jobsite without specific approval
of the Project Construction Manager and only on legitimate company business. Vehicles issued by for
Company use shall be treated the same as a Company vehicle, unless stipulated otherwise by .
10.5.10 Temporary Utilities
Arrangements for temporary utilities shall be made as follows:
Electrical
During the pre-move-in stage of the job, the Home Office Construction Department will estimate the
consumption of electricity required for construction equipment/tools and temporary facilities and
submit quantities and temporary facilities plot plans to the Home Office Electrical Engineering
Department. They shall prepare electrical one-lines for the Project Construction Manager's file for
site use.
Power requirements to support all planned and anticipated needs shall be included in pre- move-in
instructions. The source of power should be resolved at that time. If pre-move-in instructions are not
available, the Project Construction Manager shall select the most practical and economical supply
including the following possibilities:
 Local utility company where possible. This service should include incoming primary power and
primary transformers (pole or ground mounted with secondary breakers).

TECHNICAL PROPOSAL
 From Client's substation, a joint consultation between Company Electrical Department and
should be arranged to work out these details.
 Portable electrical generation - no site decision should be made on this arrangement due to the
magnitude of expense. Most site pre-surveys will determine this approach and provisions should
be made in advance for equipment.
Utility Selection
An agreement between the Project Construction Manager, Client and local health authorities should
be reached as to which of the following facilities are to be selected.
Sanitary Sewage by:

 Portable toilets (chemical pump out) and/or,
 Water closet - tie into municipal/Client sewer system and/or,
 Installation of a sewer system and/or,
 Sewage treating facility.
Potable Water by:

 Tank transport and/or,
 Tying-in to existing plant/municipal lines and/or,
 Drilling a well with treating facility, as required.
Raw Water by:

 Pumping from local river, lake or stream and/or,
 Utilizing existing Client facility by tapping into existing system and/or,
 Drilling a well.
Consideration should be given to installation of underground fire system loops and hydrants in the
job's first stage.
Fuel Gas by:

 Purchasing from municipal mains and/or,
 By making use of bottle gas and/or,
 Client's gas main and/or,
 Petroleum fuel oil furnished by Client.
Waste/Trash Disposal by:

 Contract scavenger-provided dumpsters and/or,
 Client approved land fill and/or,
 Client's dump and/or,
 Incineration.
All phases of utility selection shall be approved by and local, State, Provincial and Federal where
applicable, particularly involving those methods which could involve Environmental Protection
Agency Codes. In most cases, utilities are provided for in a section of the Contract.

TECHNICAL PROPOSAL
10.5.11 Local Testing Laboratories
The Project Construction Manager shall ensure that inquiries are made, and service and prices of
laboratories in the vicinity are tabulated, for testing/certifying of:
 Non-destructive examination.
 Welding and Procedure Qualifications.
 Welder test and certification.
Local fabrication should also be investigated as a location for welder's tests on a lump sum basis
(direct hire only). In lieu of locating any of the above facilities, the Home Office Construction
Department shall be immediately advised as to equipment and manpower needs to perform these
functions on site.
In most cases, the welding procedures encompassing all materials at the site will be prepared by the
Home Office or Subcontractor, approved by and Authorities when applicable and included in the
piping specifications to the field.
10.5.12 Site Medical
The Project Construction Manager shall ensure that arrangements are made with a local clinic or
doctor to provide for injured employees.
Arrangements should include:
 Ambulance.
 Health inspection, if food services are implemented.
 Local Hospital and Emergency Room.
 Pre-file of company insurance benefits.
Consideration and pro-rata contribution by subcontractors should be explored for site facilities.
Normally, these arrangements are the sole responsibility of Company, however, the use of 's existing
facility should be explored prior to finalizing arrangements.
A local registered nurse may be employed on sites of medium or large size. Medical
regulations/insurance requirements shall be given to the Project Construction Manager by the Home
Office Construction Department.
10.5.13 Fire Fighting
Refer to the contract for fire fighting instructions. In lieu of specific instructions, the Project
Construction Manager shall determine with who will provide fire fighting equipment and to what
extent.
Notice shall then be posted in conspicuous places as to the procedures, telephone numbers, alarm
signals, etc. Home Office Construction Department is to be notified of these arrangements for their
review and concurrence.

TECHNICAL PROPOSAL
10.5.14 Site Visitors
Company Employees
 Space within the Field Office/administrative complex should be planned for convenience and
privacy of Home Office visitors.
 Arrangements should be made, if possible, for commercial rates at motels and hotels.
Notify Home Office Construction Department of these arrangements.
Non-Company Employees
The Project Construction Manager shall ensure that the following steps are taken:
 Determine Client policy relative to visits by non-site employed personnel, including union
officials, local authorities, salesmen, etc.
 A directive shall be published to all Subcontractors, guards, Personnel Department and key
supervisors prior to job startup.
 It is Company's policy that NO Company guests shall be admitted to the site without the
approval of the Project Construction Manager or his deputy.
10.5.15 Site Security
The Project Construction Manager shall determine if guard service is to be provided by Company.
In addition, the following steps should be taken:
Existing plant facility

 Determine the details of security relative to gate passes for motor vehicles entering and leaving
the property.
 Make arrangements for entry passes for key Company supervision and staff.
 Determine and post in key locations, 's security department telephone numbers.
 Provide 's security department with office and home telephone numbers of key Company
personnel.
 Determine policy relative to week-end and night entry.
Grassroots facility
Determine if guard service is to be provided by Company or .
 A set of site security regulations shall be drawn up by the Project Construction Manager issued to
security, Company key personnel and posted on bulletin boards.
 It is the Project Construction Manager's discretion to issue automobile gate passes.
10.5.16 Permits - Welding, Work and Flame
The Project Construction Manager shall determine and post the policy of relative to welding, work
and flame permits. Post the telephone numbers of departments, along with names which can
expedite this effort. Post the required alarm system if there is one.

TECHNICAL PROPOSAL
10.6 Field Start Check List
The following items are an orderly sequence of steps to implement field work and may be run
concurrently at the Project Construction Manager's discretion:
 The Project Construction Manager shall initiate all activities of site preparation and temporary
construction facilities to support the forthcoming major construction effort.
 It is the Project Construction Manager's responsibility to determine that all relevant facets of this
Manual have been recognized/implemented prior to proceeding with actual field work.
 Establish an all-weather road from access highway into job site.
 Set up temporary Field Office including a drawing file room.
 Plans drawn up for temporary facilities are based on the most economical and functional use of
convenience, space and aesthetic values to 's property.
 Prior to any material revisions, it shall be the Project Construction Manager's duty to confer with
and the Home Office Construction Department for approval.
 Setup a warehouse with a fenced storage area.
 Provide for night security watch, as required.
 Establish S.O.P. (starting out point) hub per the drawings.
 Set up temporary/permanent type change houses for field labor (direct hire jobs only).
 Field toilets must be provided prior to hiring labor on site.
 Arrange for fuel storage, i.e., skid tanks, etc., for equipment refueling, as required (direct hire
jobs only).
 Grade areas for temporary buildings and proceed with foundations and erection.
 Reinforce floor slabs for Temporary Buildings to a minimum on buildings which are to be
removed.
 Always set floor slab grade for Temporary Buildings six inches (6") above finished site grade
elevations.
 Establish center lines of vital plant construction roads and prepare with all-weather surface.
 Initiate site grading with particular attention to immediate drainage. Deviation from the final site
surface drainage is permissible in most instances to insure immediate water run- off during initial
construction stage of the project.
 Have power utility company route in electricity and provide drops from transformers to
temporary power distribution panels. Panels may be constructed of wood materials such as
plywood with gang boxes mounted. Bury power distribution cables wherever practical to
temporary buildings.
 Establish site perimeter fencing, usually permanent. Whenever possible, avoid use of an existing
plant gate used by Client's personnel. Erect a guard shack at each gate and control access and
egress.
 Establish a personnel gate, route and sign up area for incoming job applicants. A
procedure for admitting applicants into the site should be worked out between security and the
Office Manager.
 Contract for and erect a Company sign at the main Construction gate or near the highway.
Coordinate the sign lettering and wording and location with prior to contracting the work. Make
available on your sign or near adjacent to, provisions for subcontractor signs. A permit may be
required to erect a sign on or near a public right-of-way.

TECHNICAL PROPOSAL
 Determine traffic patterns and alternates for motor traffic within the job site, paying special
attention to: overhead clearances, width clearances, anticipated loads and location of warehouse
and lay-down yard.
 As soon as progress permits have telephone communication moved into the Field Office.
 Clock alleys should be established between the work site and change houses, if space permits, so
men may change prior to entering the job site (direct hire only).
 Do not allow any field effort to start without providing safety equipment. Hard hats are
mandatory for all personnel.
 Other equipment as dictated by the job hazards.
 Proceed with underground utility piping as soon as site grading permits.
 If camp/housing facilities are required, this should be worked concurrently to the initial site
work.

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PROJECT EXECUTION PLAN

Prepared Checked Approved Approved by

A 02-10-17 Issued for Bidding RSN MRT MRT -

1.0 INTRODUCTION ............................................................................................................... 4

PT ENCONA INTI INDUSTRI

6.2 Schedule Control ...................................................................................................................... 16

PT ENCONA INTI INDUSTRI

1.1 Project Description

Health, Safety and Environment (HSE)

PT ENCONA INTI INDUSTRI

1.3 Project Execution Strategies & Critical Success Factor

PT ENCONA INTI INDUSTRI

 Trained and qualified personnel.

Positive Involvement by BIDDER/COMPANY/Vendors

Best Practices and Lessons Learnt

PT ENCONA INTI INDUSTRI

Change Order Management at Worksite

The following definitions are used in this document:

PT ENCONA INTI INDUSTRI

The following abbreviations are used in this document:

AFC : Approved for Construction

PT ENCONA INTI INDUSTRI

2.0 SCOPE OF WORK

3.0 PROJECT ORGANIZATION CHART

3.1 Organization Chart

3.2 Roles and Responsibilities

3.2.1 Project Manager

PT ENCONA INTI INDUSTRI

 Acting as chairperson of the Steering Committee.

3.2.2 Control Manager

3.2.3 Construction Manager

PT ENCONA INTI INDUSTRI

3.2.4 Engineering Manager

PT ENCONA INTI INDUSTRI

3.2.5 HSE Manager

3.2.6 QA/QC Manager

PT ENCONA INTI INDUSTRI

4.0 PROJECT OVERSIGHT

4.1 Independent Assessment Group

4.2 BIDDER HSE Committee

4.3 BIDDER / COMPANY Interface

4.4 Worksite BIDDER / COMPANY Interface

PT ENCONA INTI INDUSTRI

5.1 Communications with COMPANY

Relevant communication by telephone, e-mail or in person shall be confirmed in writing. Copies of

Communications will be recorded in the form of:

5.2 COMPANY Meetings

PT ENCONA INTI INDUSTRI

Correspondence tracking is to be implemented from Contract Award by the Project Secretary.

5.4 Communications with Authorities

 Regulatory and Permitting authorities

5.5 Communications with Service Providers

5.6 Internal Communications

6.0 PROJECT CONTROLS

6.1 Cost Control

 Preparing project budgets;

PT ENCONA INTI INDUSTRI

6.2 Schedule Control

6.3 Performance Tracking and Progress Reporting

6.4 Document Control

PT ENCONA INTI INDUSTRI

6.5 Public Server