BN-S-UK010 Project Procedure and Execution Manual (reduced size)

Table of Contents

1. Introduction
2. Project Management
3. Project Administration
4. Project Controls
5. Engineering and Design
6. Procurement
7. Construction
8. Attachments

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 which in any way adds or detracts from the contract requirements.

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

2. Project Management

2.1. Project Description/Scope of Work

2.1.1. Description of the Project

Brief description of the project, (Job No.,/type of contract etc.); refer to existing write-up if possible.

2.1.2. Company's Scope

Description of Company activities; refer to existing write-up if possible.

2.1.3. Reference Documents

List here relevant project documents, such as the proposal (-) and the MOM of the internal and/or external kick-off meeting; alternatively, include these documents in a separate attachment.

2.2. Project Schedule

Refer here to the project schedule; include as Attachment A; highlight key dates/milestones.

2.3. Project Organization

Refer here to the project organization diagram; include as Attachment B.

2.4. Environment, Health & Safety

Following Company’s Environment, Health & Safety (EH&S) Policy it is Project Manager’s responsibility to implement this policy on Design and/or Construction Projects by:

• Appointment of an EH&S Manager for the Design Phase. Give here the name of this person. Normally for small projects within Company this would be the Project Manager or Project Engineer.
• Appointment of an EH&S Engineer for the Construction Phase. Give here the name of this person.
• Preparation of an EH&S Plan for the Design and Construction Phase. Reference is made to BN-S-UK011 (Design Phase) and BN-G-UC004 (Construction Phase).
• Ensure that all legal, contractual and Client’s requirements related to EH&S are obeyed and implemented in the project.

Normally for engineering and construction projects within the EU and the EU following countries the local implementation of the European Council Directive 92/57/EEC shall be applicable.

The requirements as a result of this legislation have to be worked out in the EH&S Plan and implemented in the Project. Besides the appointment of a EH&S manager and the preparation of a EH&S plan these requirements comprise a.o. a risk analysis of the construction work in the design phase and the set up of a safety file during the design phase.

Refer here to the applicability of this legislation and the specific requirements following from this regulation.

2.5. Confidentiality

Mention here special considerations regarding the confidentiality around the project; if applicable, refer to the secrecy agreement that is in force.

3. Project Administration

3.1. Communications

Company's communication standards will be used.

All written communications with the client shall be signed by the project manager (PM). The client should address all written communications to the PM. All verbal communications are to be documented (e.g. telephone notes).

E-mail will be handled equivalent to verbal communications.

3.1.1. Names and Addresses

Include the following data both for the client and Company, and any other relevant parties (e.g. process licensor):

• company name
• address
• tel. no.
• facsimile no.
• project manager/representative)

3.1.2. Correspondence

All correspondence shall be headed as follows:

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

All correspondence will be initialed by the originator prior to being signed by the project manager. All correspondence will be addressed for the attention of the nominated client's representative.

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.

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:

Sender and Addressee

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

Document Type

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

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:

3.1.3. Telephone Communications

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

The completed form shall be transmitted to the project secretary for distribution as indicated by the originator.

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

3.1.4. Minutes of Meeting

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

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

Meetings with:

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

3.1.5. Internal Communications

All internal communications shall be headed as described in par. 3.1.2.

Internal Memoranda (IM) will be used to communicate decisions made during the course of the work as well as matters of general interest for the Project Team.

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.

3.1.6. Language

All written communications and documents shall be in the language.

3.2. Document Control

3.2.1. Document Filing

Filing code and maintenance per procedure CM-PE-110.

3.2.2. Numbering of Documents

Numbering of project documents per BN-W-UE301.

3.2.3. Document Distribution

If necessary, a document distribution schedule (DDS), outlining the minimum distribution of general documents, specifications, drawings etc. shall be prepared.

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 designate decides on 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 PM (project file) and persons that shall take actions or need to be informed otherwise.

3.2.4. Project Close-out/Final Disposition

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

3.3. Project Reports

Reporting to client will be in agreement with the project proposal.

Internal reporting to Company management will be done weekly through the Manager of Technical Operations.

3.4 Project Accounting

Home office accounting procedures apply (see .........).

The PM shall issue specific instructions regarding the preparation of invoices to the Accounting department. A regular (monthly) meeting between the PM and Project Accounting is an effective way to deal with invoicing and payments related matters.

3.5 Applicable Procedures

All Company procedures apply as per contract signature date unless they are overruled by a project specific procedure described in the present PPE Manual.

4. Project Controls

4.1. Cost Control

The project cost will be controlled by the project manager using a control budget that is derived from the manhour estimate

(Note: For most small projects it will be sufficient to control the manhour budget in order to achieve overall cost control).

4.2. Progress Control

The project schedule (Attachment A) together with the status of the project deliverables (Attachment E) will be used to control overall project progress.

4.3. Project Variations

Project variations are handled in accordance with procedure CM-PE-313.

Approved changes shall be communicated to the Contracts department via form RB00003 - Sales Order (Excel file).

(Note: Review of change orders shall be part of the monthly review with Project Accounting).

5. Engineering and Design

Note here specific comments on the execution of the engineering phase/effort:

• indicate involvement departments in Company;
• applicable codes and norms; applicable standards etc.
• coordination/meetings.

6. Procurement

Include applicable procedures - small project material is typically procured under the client’s terms, conditions and procedures with Company acting as agent.

7. Construction

Include applicable procedures - small projects do not typically have a full construction management scope.

8. Attachments

Below is an example list of attachments that could form part of the actual PPE Manual:

1. Project Schedule
2. Project Organization Diagram
3. List of Client Supplied Documents/data
4. List of Reference Documents
5. List of Deliverables
6. List of Documents to be Approved by the Client
7. Environment, Health and Safety (EH&S) Plan