CM-PE-509 Procedure for Split of Engineering Work

Table of Contents

1. Purpose
2. General
3. Responsibilities
4. Procedure
5. Flowchart
6. References
7. Attachments

1. Purpose

This procedure covers the safeguarding of quality aspects of engineering work and provides instructions for the control of the engineering interface, when work is split and done in (a) Satellite Office (S.O.) controlled by Company as Main Office (M.O.).

2. General

This procedure is based on the split of work as indicated in section 4.0. It is conceivable that this procedure must be evaluated, amended and adapted to the specific nature of each project.

Note that this Procedure is not intended to specify any preference for any split of work.

2.1 Definitions

Main Office - M.O.:

The engineering group located in Company's main office in The Hague.

Satellite Office - S.O.:

A Company engineering group located outside Company's main office in The Hague.

Satellite Office Document:

All technical documents that are produced or obtained by the Satellite Office and used to define technical requirements, design details or test results within the Satellite Office's scope of supply. Satellite Office documents may include drawings, requisitions, instruction manuals, calculations, lists and summaries of material quantities, test results, design/checking procedures, records and similar documents. Excluded is Company/Satellite Office correspondence.

Company M.O./Satellite Office Correspondence:

All working documents that are preliminary to producing Satellite Office documents such as letters, telexes, Minutes of Meetings, telephone conversations, document transmittals and coordination procedures.

3. Responsibilities

The Main Office organization assumes the full responsibility towards the Client for the complete project as described in the contract.

The Satellite Office(s) organization will assume full responsibility towards the Main Office for the work assigned to the Satellite Office.

The M.O. Project Director/Manager assumes the overall responsibility for the control of the work; for the control of the engineering interfaces between Engineering in The Hague and other offices, he may delegate this task to a M.O. Project Liaison and a S.O. Project Liaison Engineer if the type and magnitude of the work warrants to.

The M.O. Project Liaison Engineer is responsible to the Project Director/Manager for the control of engineering interfaces between the M.O. and the S.O.; tasks should be described in the Project Procedures.

The S.O. Project Liaison Engineer is responsible to the Project Director for assisting in the control of engineering activities with the following tasks:

• Coordinating, monitoring and following up on all engineering and design activities in S.O. in accordance with the agreed split of work.

• Ensuring a proper flow of documentation between the S.O. and the M.O.

The M.O. Lead Specialist Engineer has the direct responsibility for the quality of work in all offices and the detailed split of engineering work in his account.

4. Procedure

4.1 Identification of the Interface

4.1.1 Work Split/Assumptions

A clear split of engineering work shall be prepared at project start to define, in detail, the activities executed in the Main Office (i.e. Company) and the Satellite Office. Ref. 6.11 gives a guide for the subjects to be addressed.

This document can be amended by the M.O. Project Director/Manager and M.O. Project Liaison as needed and issued as a project related document - part of the P.P.E.M.

To achieve optimum consistent quality during the detailed engineer­ing phase of a project, a vertical split is preferred. Where, however, other types of split (horizontal, per account or mixtures) are needed, the various requirements to ensure good quality of engineering - controlled by the Main Office - must be provided.

This procedure shall identify the classification, review cycle, submittal, filing and record keeping requirements of each document produced by the Satellite Office.

The control of the interface work consists of:

1. Quality control of the basic design information that is to be transmitted to the S.O.

2. Control on correct and scheduled routing of project documents (including vendor prints) between M.O. and S.O.

Note:
Attachment 2 presents in detail, a typical engineering work review based on assumption that it will cover the requirements for the split of engineering as described below:

• The Satellite Office handles UTILITIES AND OFFSITES.
• The Main office handles the PROCESS UNITS, equipment of all units, instrumentation of Control Center and Analyzer build­ings, all painting, all insulation, all authority engineering and all Procurement activities.

4.1.2 Interface Checklist

To enable proper planning and mobilization before commencing a particular part of work in the S.O., the following general requirements shall be clearly identified and documented by means of an interface checklist giving:

• Type and extent of design data/documents to be transferred;
• Expected extent of completion of the work executed by S.O.;
• Areas where the S.O. work may impact upon on-going design work in the M.O.;
• Extent of checks or reviews by Engineering in the M.O. or S.O.;
• Special requirements for work execution, or for presentation of the finished design;
• Change order procedure;

The above details may be given by Minutes of Meeting, Memoranda, marked-up drawings, etc., to which the Check List may refer.

Prior to work execution, a package of detailed Basic Design information shall be transmitted to the S.O. (refer to the section 4.6.1).

4.1.3 The S.O. Project Liaison Engineer shall prepare the checklist for M.O./S.O. interface.

The M.O. Project Liaison Engineer shall review the checklist and associated documents, and shall ensure that all M.O. requirements are satisfied.

4.2 Classification of Documents

All Satellite Office documents shall be classified as follows:

I. Review required prior to certification

Documents which must be reviewed and formally released by Company prior to Satellite Office certification of document.

II. Submit for review prior to certification

Documents which must be submitted to Company for review prior to certification of a document. The Satellite Office may proceed to certification 10 working days after the Company acknowledgement of receipt date, if no comments are received, unless the Main Office has expressly indicated a required extension of this period. If comments are received within 10 days, the Satellite Office shall be directed accordingly.

III. Submit for review and record when certified

Documentation for which the Satellite Office may proceed directly to certified issue without prior approval. Certified issues must be submitted for record and possible review. Any Company comments will be incorporated in subsequent issues.

IV.Submit for information and record

Documents for which the review of the document quality is not required but the information is needed to confirm design or testing or to allow subsequent design or construction activities.

V. Retained by Satellite Office and available on request

Documentation which the Satellite Office must produce or obtain and maintain for record purposes. Company does not normally require these documents for either review or information, but they must be available for audit purposes.

The Satellite Office shall notify Company of any technical change to Category I and II certified documents prior to reissuing the document except as noted in attachment 2, section 1. (Revisions to Certified Documents). Notification and/or approval may be by telex or telecon with confirming memo.

Detailed lists classifying all Satellite Office documents must be provided (see attachment 1, example of Satellite Office Document Review Requirements).

It must be noted that the possibility remains that during a project the classification category of each type of document may be changed.

Note:

The Main Office review of the documents and Main Office's comments or failure to comment do not relieve the Satellite Office(s) of its/their responsibility for strict conformance with the project requirements.

4.3 Satellite Office Review Requirements

The piping, civil, structural, architectural, electrical and control systems Satellite Office's review requirements shall be itemized as in attachment 1.

This typical example must be adapted to the specific requirements of each project.

A detailed description of the Review Requirements to be followed by the Satellite Office, during engineering work, is presented in attachment 2.

4.4 Status of Satellite Office Documents

All documents that are reviewed by Company shall be dated and signed by the reviewer with review/comment status noted. All comments will be either noted directly on the document or covered in separate memorandum, clearly referenced to the reviewed documents, and a reference to the memorandum shall be noted directly on the review document. The document review may be conducted at either the Satellite Office's or Company's facilities in order to meet job require­ments and schedules. The following review/comment status will be incorporated in the document handled by the M.O. and S.O. offices.

A. Review without comments • proceed.

B. Review with comments • incorporate comments and proceed.

C. Review with comments • incorporate comments and resubmit prior to proceeding.

4.5 Reference Documents

The following referenced documents prepared by the Main Office shall be used by the Satellite Office to ensure all documents are transmitted quickly and in the appropriate form.

4.5.1 Project Coordination Procedure

The Project Coordination Procedure covers the interface between Company and Satellite Office for handling Satellite Office documents. This procedure includes the preparation and acknowledgement of all transmittals of Satellite Office documents with suitable logs. The procedure defines the form of the document such as full size reproducible, the number of prints, etc.

4.5.2 Vendor Prints Control Procedure

The Vendor Prints Control Procedure establishes a system for control of vendor prints during technical review within the client, Company and Satellite Office organizations. The proce­dure establishes a schedule for the technical review process and specifies the document transmittal/routing forms and log sheets.

4.6 Quality and Schedule Control

The control of the interface consist of:

4.6.1 Quality Control on Basic Design Information

A complete package of basic design information is to be compiled by Engineering in the M.O. and received by S.O. before detailed design activities may start.

As a minimum, the package of basic design information shall contain:

• Interface Checklist and associated documents (see section 4.1.2).
• A scope description of the detailed design with instructions drawings, plot plans etc., as applicable.
• Calculations as applicable.
• Summary of related documents. This summary shall include a listing of all Minutes of Meetings etc., that could serve as background information.
• Copies of all written instructing related to the design.
• Detailed project schedules.
• List of information that will be transmitted at a later date.

The compilation and review of the package is the responsibility of the M.O. Project Liaison Engineer.

4.6.2 Commenting on Documents Prepared in the S.O.

Engineering documents prepared in the S.O. shall be distributed in M.O. similar to documents produced in the M.O. as indicated on The Document Distribution and Routing Schedule, ref. 6.10.

The M.O. Project Liaison Engineer is responsible for ensuring that, when required, the documents are reviewed by the appropriate disciplines in the M.O. and that comments are returned. Where client's comments are required, these shall be coordinated by the relevant Lead Specialist Engineer.

The control schedule for documents issued for comments is monitored by the Document Controller.

The S.O. Project Liaison Engineer is responsible for monitoring schedule for the S.O. documents.

4.6.3 Commenting on Vendor Prints Approved in the S.O.

Vendor prints approved in S.O. shall be distributed in M.O. in accordance with the Vendor Print Handling Procedure.

The control schedule for vendor prints approved in the S.O. is monitored by the Vendor Print Control Section.

4.7 Coordination of the Engineering Interface

All activities related to the Engineering Interface between the M.O. and the S.O. are coordinated by the M.O. Project Liaison Engineer assisted by the S.O. Project Liaison Engineer. The S.O. Project Liaison Engineer will review all design and engineering information transmitted from and to the S.O., and receive copies of the transmittals for drawings prepared and vendor prints approved in the S.O.

All communications shall be handled according to the procedures outlined in the Project Procedure Manual.

4.8 Records

The Satellite Office shall maintain a complete record of all docu­ment transmittals, action dates and review/comment status. The record shall be classified as Category V.

5. Flowchart

None.

6. References

Document Number Title Level

7. Attachments

Attachment 1 - Satellite Office Document Review (example).

Attachment 2 - Detailed Review Requirements.

DETAILED REVIEW REQUIREMENTS

This attachment presents a detailed example of handling of the work by the Satellite Office, based on assumption for the split of engineering work as per section 4.1.

1. Satellite Office Review Requirements

The Satellite Office shall meet the requirements set forth for each engineering and design discipline described further. In general, however, following is applicable to all design disciplines:

- The Satellite Office may submit advance copies of drawings, requisitions and other documents requiring review and release by Company, but shall mark them "for Information Only". Approval of advance copies of documents received shall not be considered as a release by Company;

- There may be occasions when documents will be reviewed by the Lead Specialist Engineer directly in the Satellite Office. When forwarding the reviewed items to Company, the Satellite Office must clearly indicate that a review was conducted at the Satellite Office and comments, if any, have been incorporated. These items will be headed as "for records only" (similar to category III).

To easily identify these documents and to avoid duplicating the review, the Satellite Office shall add a suffix "A" to the document category number (i.e., IA, IIA, IIIA). Items which have been pre-reviewed but not approved shall be submitted to Company without the suffix "A" for a review either directly in the Satellite Office or to Company through the system as originally intended;

- All specifications, requisitions, drawings and documentation produced by the Satellite Office or his selected vendors must conform to the requirements of the job standards.

Before issue of any specifications, requisition, drawing, or documentation, the Satellite Office must ensure that the requirements of the job specifications have been met.

It is acceptable that the Satellite Office issue engineering requisitions for purchase or for inquiry without prior Company approval, except where the devices involved fall outside the scope of the applicable job standards. In this case, Company approval of the requisitions must be obtained before issue for purchase or inquiry. Company must be provided with a parallel issue of all requisitions released by the Satellite Office. Company shall perform spot checks on all detailed requisitions to ensure conformity to job standards. Should the quality of work appear unsatisfactory, Company reserves the right to approve all requisitions, drawings and documents before issue. The Satellite Office shall be informed in writing if this procedure becomes necessary.

1.1 Piping

1.1.1 Studies

The Company Lead Piping Designer (LPD) assigned at the Satellite Office shall review piping studies as required to expedite the Satellite Office's effort. The Company LPD will select studies for review on stress and flexibility to be done by Company's Piping Engineer. Comments shall be noted on prints of the studies and returned to the Satellite Office, with a duplicate copy forwarded to the Main Office as a matter of record.

The Satellite Office drawings must reflect the Lead Piping Designer's comments as a minimum.

Because of the incomplete nature of the in-progress-studies, the review by Company shall not be considered as an official approval of the pipe study.

• Listings of material requirements estimated for the bulk take-off on a line-by-line basis by area shall be furnished by Company to the Satellite Office.
• These lists shall be distributed to the Satellite Offices' piping group which is responsible to verify that the estimates are correct and shall update the lists throughout the design phase of the project.

1.1.4 Isometrics

When isometric drawings are in the checking stage, the Satellite Office shall implement a quality control program using the Quality Control Procedures and Guides for Piping to ensure that isometrics are dimensionally correct and adhere to the Piping Design Specification and the Piping Material Specification.

The Satellite Office's Material Control Group shall be responsible for completing material take-off sheets. Data from these sheets shall be produced by the Satellite Office and processed by Company.

Company shall transmit data processing results to the Satellite Office. The Satellite Office shall print computer-produced stick-on Bills of Material (B/M) from the processed data. Requests for Purchase (RP's) shall be prepared and issued by Company for all field piping material.

RP's shall be prepared and issued by the Satellite Office for shop fabrication of spool pieces as detailed on their isometric drawings.

The Satellite Office shall attach the B/M's to the associated isometric drawings and issue "Certified".

The Satellite Office shall submit prints of all checked area isometrics to the Company LPD at the Satellite Office for review prior to certification issue. After comments have been incorporated on isometrics, the Satellite Office shall submit LPD comments and new prints of all certified area isometrics to the Company LPD at the Satellite Office and to the Main Office as listed on the Satellite Office's Document Review sheets. Isometrics associated with critical systems (see also 1.1.5 of this section) will be reviewed by Company's Process Department following normal procedures.

Company will quality check the same isometrics as checked by the material quality control group to assure the quality is acceptable.

• Piping exposed to high/low temperature and/or pressure,
• Two phase flow lines. concerns:

1.1.6 Underground Piping

The Satellite Office shall submit all underground drawings, (piping, sewers, cables, etc.) to Company when issued for review. Company and client's comments shall be incorporated on all applicable drawings prior to certification. The Satellite Office's material control group shall be responsible for completing material takeoff sheets. Data from these sheets shall be produced by the Satellite Office and be processed by Company. Company shall transmit data processing results to the Satellite Office. The output shall be summarized by system and line number. Requisitions for Purchase shall be prepared and issued by Company for all underground materials.

1.4.1 General

It is not intended that Company shall approve the Satellite Office's control systems engineering and design work except under the conditions stated in section 4.4. However, Company reserves the right to make any changes to the Satellite Office's requi­sitions, drawings or documents to ensure overall job consisten­cy and compliance with good engineering practice.

• Ensure all instruments have been tagged on the flow diagrams. Missing tags must be added and the schedule updated.
• Compare the instrument schedule against the flow diagrams to ensure all instruments are correctly listed and identi­fied and that all cross references such as flow diagram location and line numbers, etc. are correct.
• The Satellite Office must issue copies of corrected schedule sheets to Company for record.

1.4.4 Coordination of Instrument Schedule Update for Dual Responsibility Input

Where items of equipment of the offsite and utility units are located within the process area battery limits, all associated installation of instrumentation shall be the responsibility of Company. The Satellite Office shall act as the coordinator for the offsite and utility units with respect to the update of the schedule originals. Company shall issue to the Satellite Office, on a periodic basis, updated schedule sheets for instrumenta­tion in Company's scope, for which the Satellite Office has control of the schedule. These sheets shall reflect added drawing references, requisitions, etc. It is the Satellite Office's responsibility to update the master schedule with all new information and reissue copies of revised sheets only for record to Company.

1.4.5 Requisition Sheets

Requisition Sheets prepared by the Satellite Office

The Satellite Office shall prepare detailed requisition sheets to fully describe the items being inquired or purchased, within the Satellite Office's scope. Standard format BN-K-etc. or client's forms requisition sheets shall be used.