CM-PE-704 Procedure for Subsitution of Materials

Table of Contents

1. Purpose
2. General
3. Responsibility
4. Procedure
5. Flowchart
6. References

1. Purpose

This procedure describes the activities and authorizations required when a proposal is made by a vendor, supplier or subcontractor to substitute different materials from those originally specified.

2. General

Where materials as originally specified by Company are readily available without detriment to schedule and/or costs, no proposal for substitutions shall be considered.

Use of any material in lieu of that specified by Company, or called for in the approved fabrication/construction documents, shall be subject to acceptance in writing by Company and, if required, by the Client. Any unauthorized substitution will be rejected.

3. Responsibility

The Project Manager is responsible for ensuring that the requirements of this procedure are satisfied. He may delegate this responsibility to the Project Engineering Manager or Project Engineer.

The Project Procurement Coordinator is responsible for ensuring that a smooth and clear interface is maintained between the vendor/supplier and the Lead Specialist Engineer for satisfying this procedure.

The Project Subcontracts Manager is responsible for ensuring that a smooth and clear interface is maintained between the subcontractor and the Lead Specialist Engineer for satisfying this procedure.

The Lead Specialist Engineer is responsible for the evaluation of and response to all requests for material substitution in cooperation with other Task Force specialists and, if required, the Client via the Project Manager.

4. Procedure

4.1 When a proposal to substitute materials is received from a vendor/supplier, the Project Procurement Coordinator shall distribute that request to the Lead Specialist Engineer responsible for specifying those materials.

When a proposal to substitute materials is received from a (site) subcontractor, the Project Subcontracts Manager shall, via the Project Manager, distribute that request to the Lead Specialist Engineer responsible for specifying those materials.

4.2 When schedule and/or cost consequences are involved in relation to the received proposal, the Lead Specialist Engineer shall confer with the Project Planning and Procurement Groups and the Project Manager to evaluate those consequences.

4.3 The Lead Specialist Engineer shall evaluate the technical aspects of the proposed substitution in cooperation with the Inspection Super visor, the Process Engineer and the Metallurgist and/or other specialist engineers as appropriate.

4.4 The decision to technically accept a proposed substitution shall depend on the material's ability to fully satisfy the design requirements, including but not limited to:

• soundness
• stress
• stability
• flexibility
• hardness
• corrosion
• erosion
• dimensions
• tolerances
• surface finish
• conduction

Considerations shall also include any necessary changes in the requirements for:

• traceability
• welding procedures
• heat treatments
• surface finishes
• cladding
• insulation

Equivalent material in accordance with the requirements of the appropriate national standards of the country from which the materials are obtained may be considered, provided the materials conform to the specified material standards and codes, including all project-related requirements.

Additional information could be obtained from, among others, the following reference documents:

• Handbook of Comparative World Steel Standards, The International Technical Information Institute;
• Key to Steel, Verlag Stahlschlüssel, by C.W. Wegst;
• Steel Date Handbook (for boilers and pressure vessels), Comité Européen de la Chaudronnerie et Tuyauterie (C.E.C.T.);
• Metals Data Handbook, Japanese Standards Association;
• International Comparison of Standard Materials, DIN Deutsches Institut für Normung e.V.

Available worldwide guides or listings of comparable material standards may be used in initially establishing the equivalence of material standards.

4.5 When the Client's approval for material substitution is required or considered advisable, this shall be obtained by the Lead Specialist Engineer via the Project Manager.

4.6 The Lead Specialist Engineer shall prepare the formal response to the proposal and issue a copy of it to the Project Manager.

4.7 When the proposal was received from a vendor/supplier, the response shall be issued via the Project Procurement Coordinator.

When the proposal was received from a subcontractor, the response shall be issued via the Project Subcontracts Manager.

4.8 All necessary variations to purchase orders shall be issued.

4.9 Due consideration shall be given to a possible claim by Company to the Client for any additional work and/or schedule delays created by substituting materials (ref. 6.6 and 6.7).

4.10 All material substitutions shall be carefully documented by Company and by the vendor/supplier/subcontractor. Such documentation shall be maintained in the project records (see ref. 6.5).

5. Flowchart

6. References