BN-S-UK001 Project Procedure and Execution Manual

Specification for

Table of Contents

1. Project Management/Administration
2. Project Controls
3. Engineering
4. Procurement
5. Construction
6. Quality Assurance and Verification
7. Safety, Health, Welfare and Environmental (SHWE)
8. Attachments

1. Project Management/Administration

1.1 Introduction

The Project Procedure and Execution Manual (PPE Manual) contains the instructions for handling the work on this project in accordance with the terms of the contract.

It is not to be construed as a document that in any way adds or detracts from the contract requirements.

The prime project activities with reference to their controlling documents are listed in the Project Quality Activity List developed for the project (see Attachment 20. This list may, during the course of this project, be extended and/or revised as found necessary.

This PPE Manual and its reference documents will form the points of reference for the project's quality execution and the auditing thereof.

All terms used in this PPE Manual and in referenced Company procedures and standards are governed by the definitions contained in BN‑G-U001 "Terminology".

1.2 Scope of Work

• Describe extent of the following subjects:
  - project definition
  · type of plant, location, capacity, type of contract
  · major components of plant, i.e. name units, extent of off-sites and buildings to be provided.
  
  
• Split of work, Company/client/others:
  - extent of Company work
  · refer to list of deliverables (Attachment 4)
  · scope of work and services
  
  - client's responsibilities
  · permits
  · site clearance
  
  
• Make references to applicable project/client documents:
  - contract
  - project specification
  - Process Design Basis
  - Basic Design Data
  
  
• Make references to applicable project documents
  - The appropriate procedures for this project with the necessary amendments are listed in Attachment 1.
  - The appropriate standards, guides and specifications for this project with the necessary amendments are listed in Attachment 2.
  
  
• Allocate specific job numbers for specific activities as is agreed for this project. Decide if a non-reimbursable subnumber should be opened (not for lumpsum services contracts). List project cost codes (PCC's) that are not chargeable to the client.

1.3 Project Organization

1.3.1 Organization

Describe the extent of the organization.

• Refer to attached Company project organization (Attachment 7) that is to be completed with the names of the personnel assigned, and includes (if applicable) Construction (separate chart).
• Refer to Company supportive permanent organization.
• Refer to attached client's project organization (Attachment 7) indicating functions and names (if available).

1.3.2 Project Function Descriptions

The applicable project function descriptions of key-project task force personnel are contained in Attachment 8.

1.3.3 Secrecy

Describe the secrecy requirements briefly as appropriate for the project.

1.4 Addresses and Names of Representatives

1.4.1 Client

Address:

 

Telephone :

E.mail :

Facsimile :

Representative :

1.4.2 Company name

Address:
Company name:
PO Box:
Ciyt:
State:
Country:

Telephone :

E.mail :

Facsimile :

Representative :

1.4.3 Others (Process Licensor/Local Authorities):

Address:

Telephone :

E.mail:

Facsimile :

Representative :

1.5 Communications

The purpose of this section is to establish modes of communication and to define communication numbering systems to facilitate reference and control.

Standards will be made project specific for each new project by the Project PC Support Coordinator for the following:

 

· letters	(RB-LTR)
· facsimiles	(RB-FAX)
· transmittals	(RB-TM)
· minutes of meetings	(RB-MOM
· avoid verbal order (AVO)	(RB-AVO)
· change order	(RB21007)
· change alert	(RB21008)
· change notice	(RB21009)
· deviation from plan	(RB21010)
· deviation register	(RB21011)
· change register	(RB21012)
· close-out notice	(RB21003)
· document distribution schedule	(RB-DDS.XLS)

 

These standards, and more should the project require, will be available on the L:\ drive as follows:

• L:\STD\project number\.dot.

Refer BN-W-US008.

All correspondence shall be in the contract’s language except those to local/government authorities, and shall indicate to which parties copies have been sent. Client shall receive a copy of applicable correspondence between Company and third parties (suppliers etc.) related to the project.

All communications shall be on metric size paper.

The sequence for dating communications shall be date─month─year, with month and year fully spelled out, e.g. 15 April 2010, or using a three letter abbreviation for the month, e.g. 15 Apr 2010.

Comprehensive messages (e.g. minutes of meetings) shall be forwarded under cover of Company transmittal forms.

1.5.1 Correspondence

All correspondence shall be headed as follows:

 

Date	:
To	:	Addressee
From	:	Sender
Re	:	Name of Client Name of Project (Proj. No.: Client Project Number) Our Company Project Number
Subject	:

 

All correspondence will deal with one subject only and the subject will be clearly stated in the heading to facilitate reference.

Correspondence may also refer to the following information if applicable:

• title of unit, including unit number;
• references to previous correspondence on the subject;
• copy distribution.

Initials of the individuals responsible for the typing, preparation and signing of correspondence will be shown in the lower left-hand corner as follows:

ABC/DEF/XYZ

(c) (b) (a)

(a) All correspondence shall be initialed by the secretary.
(b) All correspondence will be initialed by the originator prior to being signed by the signatory

 

(c) All outgoing correspondence:	shall be signed by:
		to client	the Project Manager or designate
to Third Party Authorities	the Project Authority Engineer or designate
to Suppliers	the Project Procurement Coordinator or designate
from Field	the Project Field Construction Manager or designate

 

All correspondence will be addressed for the attention of the nominated representative at the delivery address.

The Project Secretary will maintain separate registers by form of communication of all numbered correspondence. All such correspondence will be numbered sequentially with a brief description of subject matter, date, sender initials and addressee.

1.5.1.1 Numbering of Correspondence

All correspondence originating from Company will be annotated with a unique reference that will indicate the sender, the addressee, the form of the communication, the serial number of the communication and in the case of Transmittal Notes, the type of document transmitted.

All communications sent to client shall be identified by a correspondence number with the following code system and logged accordingly:

a. Sender and Addressee

The following letters are examples of those assigned to the parties concerned:

 

C	-	Client
R	-	Company Home Office
S	-	Supplier
O	-	Others (Authorities etc.)
F	-	Company Field Office
L	-	Licensor

 

a. Document Type

The following letters and series of numbers for Company Operations are assigned to the document types:

 

Document Type	Letter
Letter	L
Transmittal	T
Facsimile message	F
E-mail	E

 

c. Serial Number

The third group of characters identifies the serial number, within the series defined by the preceding groups of characters, of the project communication reference.

Letters, facsimiles and transmittal notes may have the same serial numbers. It is therefore imperative that the various forms of communication are clearly identified by the reference code.

For Transmittal Notes there will be a separate series of serial numbers for each type of document transmitted as noted below:

 

General	XXT-100-800
Transmittal of documents, except as noted below (e.g. Minutes of Meetings, Schedules, Progress Reports, etc.)	XXT-1001, 1002, etc.
Transmittals of drawings, specifications, data sheets, supplier prints	XXT-3001, 3002, etc.
Transmittal of requisitions, bid tab	XXT-5001, 5002, etc.
Expediting reports, Status Report Undelivered Material	XXT-8001, 8002, etc.

 

1.5.2 Telephone Communications

Company's standard form "Notes of Telephone Communication" (REC-TELC) shall be used for recording all significant telephone conversations.

The writing shall be legible, with black ball-point or "HB" pencil.

The completed form shall be transmitted to the Project Secretary for distribution.

Points agreed, or to be agreed, between caller and Company in telephone conversations shall be confirmed by Company by facsimile within two (2) working days of the conversation.

1.5.3 Minutes of Meeting

Minutes of Meeting between Company and outside groups and internal Minutes of Meeting will be prepared by Company on Company standard form in accordance with procedure CM‑MA‑107

Minutes of Meeting will be identified as follows and be numbered sequentially.

Meetings with:

 

Within Company	:	M-R-XXX
Client	:	M-C-XXX
Licensor	:	M-L-XXX
Suppliers	:	M-S-XXX
Authorities	:	M-A-XXX
Others	:	M-O-XXX

 

Distribution will be indicated by the originator. The Project Secretary will assign numbers, maintain the file and logs, and arrange for distribution.

1.5.4 Internal Communications

All internal communications shall be headed as described in section 1.5.1.

Internal Memoranda will be used to communicate decisions and directives made during the course of the work as well as matters of general interest for the Project Task Force.

Internal Memoranda shall be numbered sequentially as follows:

• 2xxx-IM-XXX.

The Project Secretary will assign numbers, maintain the IM file and arrange for distribution.

AVO (Avoid Verbal Order) forms shall be used in case a less formal written record of the message is required.

Project directives shall be reserved exclusively for the project manager to make statements of policy, initiate action or record items that have a major contractual, financial, technical, quality or administrative effect on the project. Project directives shall be numbered sequentially as follows:

• 2xxx-PD-XXX.

1.6 Project Reports

This section covers the preparation, responsibilities and distribution of all reports necessary for Company Project Management to adequately control the execution of the project and also to report cost/schedule/progress information to the client.

The reports listed below all have specific distribution requirements, according to section 1.7.4 - Document Distribution.

The following reports shall be prepared generally in accordance with Company's standard procedures.

1.6.1 Project Controls

1.6.1.1 Monthly Progress Report

Prepared by the Project Manager or Project Controls Manager (if assigned to the project). This report shall contain but not be limited to:

• project summary;
• detailed narrative sections for Engineering, Procurement and Construction;
• cost;
• project schedule analysis, including planned versus actual;
• planned versus actual manpower histograms;
• overall schedule and progress curves.

1.6.1.2 Project Control Monthly Project Calendar

Prepared by the Project Controls Manager and identifies all meetings/client visits, etc. throughout the forthcoming month. Issued to key task force members.

1.6.1.3 Cost Report

Prepared by the Lead Cost Engineer and issued monthly.

1.6.1.4 Planning and Scheduling Reports

Prepared by the Lead Planning Engineer based on information provided by the Engineering/Design Disciplines and Procurement.

The reports shall be:

• detail bar chart schedules;
• plant master schedules;
• unit master schedules;
• critical activities list (float less than 10 days);
• alert activities list (float between 10 and 20 days).

1.6.1.5 Document Control Reports

Prepared by the Lead Planning Engineer based on information provided by the Engineering/Design Disciplines and Procurement.

The reports shall be:

• document register;
• document control report.

1.6.2 Engineering Reports

1.6.2.1 Control Level Schedules

Prepared by the Lead Engineer/Designer and issued to the Engineering Manager, Lead Planning Engineer and Lead Design/Specialist Engineers every month.

The schedules shall be maintained daily or weekly as necessary to be a tool for day-to-day work.

1.6.2.2 Requisition Tracking Reports

Coordinated by the Project Engineering Manager and updated weekly as a tool for day to day work. The reports shall be issued regularly to key task force members.

1.6.3 Procurement Reports

1.6.3.1 Purchasing Status Report
Prepared by the Procurement Coordinator and issued monthly.

1.6.3.2 Material Status Report
Prepared by the Procurement Coordinator and issued monthly.

1.6.3.3 Inspection Status Report
Prepared by the Inspection Coordinator and issued monthly.

1.6.3.4 Vendor Print Control Reports
Prepared by the VPC Group and issued monthly to the Engineering Manager, the Procurement Coordinator and the Lead Planning Engineer.

1.6.4 Construction Reports

1.6.4.1 Monthly Construction Report

Prepared by the Project Construction Manager, Site Engineer and Subcontracts Manager. This report shall contain but not be limited to:

• cost and progress report subcontracts;
• manhours report subcontract labor;
• planned versus actual progress all subcontracts;
• narrative with construction highlights;
• monthly job summary with organization;
• monthly analysis cost codes XYZ;
• summary of accidents;
• progress payment certificates all subcontracts;
• field change orders;
• field purchases.

1.6.4.2 Constructability Report

Prepared by the Construction Department representative every time a formal constructability review has been conducted.

1.6.5 Project History Report

Prepared by the Project Manager. This report shall contain but not be limited to:

• Final Construction Report;
• Final Cost Report;
• Lessons Learned

1.6.6 Other Reports

In addition to the above task force reports an Internal Weekly Report shall be prepared by the Project Manager/Project Controls Manager and issued to the Manager of Technical Operations as part of the regular management information procedure.

1.7 Document Control

1.7.1 File Code and Maintenance

The documentation of the project filing systems concern not only drawings and specifications, but also all other formal documentation issued, internally as well as externally, for this project, including all correspondence.

The central project filing systems shall be established and main­tained by the Project Clerk and Secretary in the Home Office. All project documents, wherever generated, are filed in a systematic manner to enable efficient retrievability. This system shall be in accordance with CM-PE-110.

All specialist engineers shall ensure that all necessary documents are copied to the Project Group, so as to enable the central project filing systems to be kept up-to-date. No element of the centralized system shall be superseded by individual discipline filing systems.

Any member of the project team receiving original documents/correspondence, with the exception of memoranda, shall ensure that the original is passed to the Project File Clerk for logging, distribution and filing.

Prior to filing a document, the Project File Clerk identifies and registers the document. Appropriate file numbers shall be placed in the upper right hand corner of the first page.

The Project Manager resolves any questions regarding the coding of documents.

1.7.2 Document Format/Numbering/Issue Codes

Describe the control of documents and cover the extent of:

• Company/client document formats;
• Company/client forms/drawings/issue blocks to be used;
• Company and/or client's numbering system of deliverables;
• applicable Company/client's issue codes (1, 2 or A, B), issue descriptions;
• language;
• on all documents the plant shall be referred to as follows.

1.7.3 Document Checking and Approval

Documents shall be checked and approved in accordance with procedure CM-PE-504 and BN-S-UK001/20).

The following drawings shall be issued for approval to the client/Licensor/Third Parties (see Attachment 5).

See 1.7.4 for their distribution.

1.7.4 Document Distribution

Attachment 11, Document Distribution Schedule (DDS), outlines the minimum distribution of general documents, specifications, drawings, etc. that are produced during the course of the project.

This Attachment is used as an example. All later issues of the DDS will be handled separately from this procedure manual.

All incoming supplier documents shall pass through the various departments, for comments or approval, as indicated on Attachment 11, sheet 9.

The "routing schedule" indicates the sequence of the incoming "supplier documents" are transmitted to the parties concerned.

Personnel on standard distribution lists shall be responsible for further circulation/ distribution as applicable to all personnel under their supervision.

The Project Manager or his representative decides the internal distribution of all documents received and identifies the actions to be taken and by whom those actions shall be taken.

Minutes of Meetings shall be distributed to all personnel that attended the meeting, the Project Manager (project file) and persons that shall taken actions or only need to be informed.

1.7.5 Confidential Documents

Describe the handling of confidential documents briefly as appropriate for the project.

1.7.6 Project Close-out/Final Disposition

At the completion of the project, the project filing systems shall be closed out in accordance with procedure CM-PE-118 and CM-PE-111.

2. Project Controls

Describe extent of the following subjects:

2.1 Estimating

Capital Cost Estimate Preparation.

2.2 Cost Control

2.3 Change Notices/Change Orders

All changes in the scope of work must be brought to the attention of the Project Manager by means of “Change Alerts”.

Change Alerts will be returned to the originator with the instruction to implement the change or not, or to hold until the client has approved.

If the scope of work as defined in the contract is changed, or if a previously agreed design is altered, a Change Notice (CN) shall be issued to the client.

If the change is for our own risk, a Deviation From Plan (DFP) must be issued internally.

Refer to applicable CN and CO procedure (CM-PE-313).

2.4 Planning and Scheduling

Detail Requirements for Network, including quality reviews of principal documents and progress monitoring.

2.5 Material Control

SMQR, Detail Piping Material Control.

2.6 Project Accounting

HO/Field Accounting Procedures.

3. Engineering

Describe engineering execution plan briefly and cover the extent of:

• Process Engineering;
• Project and Design Engineering;
• Supplier Documents Requirements/Review;
• Engineering Design by Suppliers/Subcontractors;
• Equipment/Item/Line Numbering System;
• Spare Parts Requirements;
• "As-built" Drawing Requirements;
• Split Office Operational Scope.

4. Procurement

Describe procurement execution plan briefly and cover the extent of:

• General and Special Conditions of Purchase;
• Purchasing ─ Purchasing Plan, Approved Bidders List (Attachment 10);
• Inspection ─ Inspection Plan and Schedule;
• Expediting ─ Expediting Plan Categorizing Equipment and Material with Expediting Priority Codes;
• Vendor Print Control;· Shipment.

5. Construction

Construction of any project will be done in accordance with the latest edition of the "Field Construction Manual". If deviation from or addition to procedures, methods and/or use of forms as laid down in the "Field Construction Manual" are necessary for a specific project, they will be laid down in this chapter.

Describe construction execution plan briefly and cover (in specific project procedures, if necessary) the extent of:

• Direct Hire;
• Subcontracting - Subcontract Plan (Attachment 12);
• HO Construction - Constructability Reviews;
• Site Construction;
• Field Accounting
• Field Purchasing
• Communications Company/Field/HO/client
• Document Distribution
• Material Control and Warehousing
• Mechanical Completion Definition
• Commissioning and Startup Requirements
• Safety Rules and Regulations

6. Quality Assurance and Verification

This PPE Manual is authorized by Company Management for all quality activities as is laid down in the "Management Statement" (see QAM-006 "Management Responsibility").

Documents and activities leading to their production shall be planned and monitored.

All quality activities such as inter-discipline checks, Multi-discipline reviews and the like shall be predetermined (planned) for the relevant documents, at specific stages (mile stones) of completion.

In case engineering and/or design groups need extra support for quality control (checking) activities, this shall be supplied by the Department/Section Group Manager or his delegate. Subject manager shall determine the critical documents requiring such control.

Biweekly internal task-force meetings will be held to discuss, as minimum:

• project progress/planning;
• quality;
• changes;
• problem areas.

At these meetings, the Project Manager will ascertain the status of the Project Quality Activity List, Attachment 20. This list shall be used as the basic check list and shall be marked up to reflect the achievements.

Project audits shall provide the assurance of the achieved quality. These audits, including additional product quality checks, shall be planned and scheduled by the Project Manager in cooperation with the production Department Managers and the Manager QA.

The audits will be carried out in accordance with the procedure CM-QA-001.

The initial planning for these audits is given in Attachment 9.

The actual date for each audit will be announced approximately one week in advance of the document review date.

7. Safety, Health, Welfare and Environmental (SHWE)

Describe how design and plant SHWE is addressed. Describe what separate, independent reviews will be held.

Refer to the applicable site SHWE plan (Attachment 15) and the project H.O. SHWE plan (Attachment 14) if appropriate.

8. Attachments

Below is an example list of Attachments that could form part of the actual Project Procedure and Execution Manual. Standard texts of some of these Attachments are available and registered under their "Document Number". The project is free to adjust the sequence and to add documents. All attachments shall be numbered as per CM-PE-303 para.4.4.1.

 

	Standard Document Number	Title	Project Document Number (to be assigned)
1.		List of Applicable Procedures: · Client’s · Company’s · Amendments
2.		List of Applicable Standards, Guides and Specifica­tions: · Client’s · Company’s · Amendments
3.		List of Applicable Codes and Norms
4.		List of Deliverables
5.		List of Documents to be Approved by Client/Licensor/Third Parties
6.		Overall Project Schedule
7.	(BN-S-UK001/7)	Project Organization Charts
8.	(BN-S-UK001/8)	Project Function Descriptions
9.	(BN-S-UK001/9)	Audit Schedule
10.		Approved Bidders List
11.	(RB-DDS.xls)	Document Distribution Schedule
12.		Subcontracts Plan
13.	(BN-S-UK001/13)	Project Quality Plan
14.	(BN-S-UK0010)	Project H.O. SHWE Plan
15.	(BN-S-UC003)	Site SHWE Plan
16.		Site Rules and Safety Regulations
17.		General Conditions of Purchase
18.		Special Conditions of Purchase
19.	(BN-S-UP103)	General Conditions of Subcontract
20.	(BN-S-UK001/20)	Project Quality Activity List
21.	(BN-S-UK001/21)	List of Authorized Signatures
22.		Special Conditions of Subcontract