PROJECT EXECUTION PLAN

1.1.

Organization
The Contractor proposes to execute the engineering, design, procurement and
construction of the Project by assigning a dedicated task force to the project. The task
force approach dedicates all required resources to the project, improves
communication and develops a cohesive team.
The following briefly describes the responsibilities of the key team members.
Task Force
Under the direction of Project Manager this team will be operated comprehensively to
ensure :

Clear identification of work objectives, priorities and any other issues.

Efficient mobilization of resources.

Effective coordination with the Client, vendors and project personnel.

Effective planning and control.

Effective coordination among inter-office engineers.

Rapid problem definition/identification and initiation of corrective actions.

Project Manager
The Project Manager has full responsibility for the execution of the engineering,
procurement and construction work.
His responsibilities include :
Planning
Organizing
Technical Execution
Monitoring, including schedule and quality control
He will direct and coordinate all phases of the work associated with the design,
procurement assistance and scheduling of the project. He will be responsible for
providing the necessary administrative and technical leadership to bring the project to a
successful conclusion.
Project Engineer

The Project Engineer will be administratively and functionally responsible to the

Project Manager. He will assist and report to the Project Manager, and act for the
Project Manager as required or when he is entrusted with any responsibility. In this
position, he will :

Work with the Project Manager and discipline engineers to establish basis of design
and scope of work from contract documents.

Provide review and sign-off of all drawings, specifications and requisitions.

Coordinate activities of the Lead Discipline Engineers.

Work with Cost and Schedule Controllers to establish budgets and schedules.

Coordinate with the procurement coordination on all inquires, evaluations and

purchase orders.

Prepare monthly forecasts and progress reports.

Monitor changes of work scope.

Schedule Controller
The Schedule Controller has the responsibility for the development and updating of
project schedule using computer software and detailed worksheets, while the task
force has the responsibility for adherence to the updated schedule. He will closely
keep in contact with not only all discipline lead engineers but also procurement,
fabrication and construction management to develop and monitor the project schedule.
Document Controller
The Document Controller is administratively and functionally responsible to the Project
Manager and he will :

Develop document logs and vendor data status reports.

Monitor all documentation required for project files to identify possible delays in
schedules.

Expedite traffic of documents including circulation between the Client and

Members.

Coordinate with other disciplines to assemble required data and job progress.

Control specification register input and issue.

Control equipment list input and issue.

Prepare dossiers as required.

Procurement Coordinator
The Procurement Coordinator is responsible for coordinating, monitoring and
expediting the performance of all key activities related to the procurement. He will
establish and maintain records, files and schedules of major equipment items. He will
also coordinate and expedite the technical review of received quotations and mediate
the resolution of any technical questions or vendor exceptions.
Lead Engineer
Each lead Engineer is responsible for providing technical design review and
assistance with analysis for his respective discipline of the project. He will review the
engineering and design data for the project and will make calculations, write
specifications, prepare equipment requisitions, and check and approve drawings.

1.2.

Project Schedule
Compliance with the schedule is subject to the on time completion of all procurement
and construction activities. Failure to comply with this schedule will impact the
deliverables schedule and commercial consideration of this project.

1.3.

Detailed Execution Plan

1) Mobilization Phase
Following contract award, the Project Manager will schedule a kickoff meeting with
Client. This meeting is important in establishing the objectives that must be met to
ensure a successful implementation of project. Kickoff meeting objectives include,
but are not limited, to the following :

Establish communication channels and lines of authority.

Establish project procedure.

Gather all available data to be used in the engineering work.

Discuss operating philosophy and methodology with regard to engineering,

construction and start-up.

Finalize the project schedule, if different from that proposed.

Following the kickoff meetings with the Client, the Project Manager will hold an
internal Project meeting during which he will complete the staffing of the project
team and assign tasks as required by the execution procedures and project
schedule.
2) Engineering Phase
An initial activity of the design phase will be the compilation of a Design Brief based
upon the proposed design. This document will be comprehensively reviewed by
the Project Manager, Lead Discipline Engineers and used to compile the Work
Breakdown Structure and Work Scopes for each Discipline.
This design review period will also be used to validate the design package and
ensure that the designs produced are suitable for further development. This will
include a review of the process simulation and a check on the data sheets of
equipment and facilities. During this period a Safety Review will also be performed,
ensuring that all safety requirements for the protection of personnel, plant and
property are incorporated into the design.

To ensure a total integration of design, the Project Engineer will implement a

Design Interface Control Procedure to which all engineering disciplines will adhere.
Discipline Progress Control Chart (DPC) is to be used to control and monitor day to
day progress at a discipline level. DPC information is provided on a regular basis
to the Project Engineer and incorporated into the monthly reports.
In the event that a change is identified during the design phase, the Design Change
Control Procedure will be effected.
The engineering procedure applicable for this work will be the Design Review and
Validation Procedure. The end product of each design activity will be physical
deliverables such as drawings, specifications, design, etc., and each item will
require a number of in-house checks prior to issue to the Client or Vendors as
Approved for Construction (AFC). This validation will ensure that each item
achieves conformance with relevant codes and standards, basis of design, fitness
for use, etc., and that the Project Manager and Client's Representative approve the
finished product.
The contractor will also provide a Project Engineering Review Board, consisting of
directors and Chief Engineers from each discipline. This body acts as an
independent reviewer of all aspects of the design both during the design phase and
immediately prior to design completion.
The QA Manager develops and
implements the Project Quality Assurance Plan which ensures that every project
adheres to standard Quality in Design programs.

3) Project Management Phase

Concurrent with the engineering activities detailed previously, The Contractor will
adopt the Project Management and Control Systems that have been developed
and refined by Contractor and considered suitable for this project.
In parallel with the preparation of the Design Brief the Project Manger and the
Project Engineer will develop a comprehensive set of Job Instructions. These
documents define the objectives of the project, the aims of each project group, and
the methods by which these objectives will be met.
A Project Procedure Manual will also be prepared applicable to the various
engineering and management groups engaged on the project. Such procedures
are based on our standard procedures tailored to suit specific project.
The flow of documents, throughout the project team, to Client's Representatives
and Vendors will be of critical importance and the early establishment of an
effective procedure will be required.
The Document Distribution Schedule will list the drawings and documents required
for the project and their distribution. Vendor Data Control ensures the prompt and
correct distribution of vendor drawings. Other documents are handled by the
clerical section of the Project management Team. This Document Distribution
Schedule will be developed following consultation with the Client and the objective
will be to ensure that all documents are distributed in a manner whereby all
recipients take them on or prior to need, receipt of data.
The required system for providing Management Information will be included as part
of the Project Procedure Manual. Management Information is provided in two
formats :

Regular meetings among the Client and project management team for the
project to discuss technical and administrative matters and to review progress.

Monthly Project Progress Report to be issued to the Client.

4) Procurement Phase
a) Planning and Procedure Development
Subsequent to initiation of project execution, the Procurement Coordinator will
work with other project contractor members to identify equipment with critical
delivery schedules, establish procedures and requirements for processing
requests for quotation (RFQs) and engineering technical review of vendor
proposals.
b) Preparation and Issuance of RFQs
The Procurement Coordinator will issue RFQs to the approved vendors. The
length of time allowed for vendors to submit their quotations will be based on
such factors as the type and complexity of the equipment included in the
inquiry, the critical nature of the equipment with respect to the project schedule
and the geographical location of the vendors with respect to travel time for both
the inquiry package and resultant quotation.
c) Technical Evaluation of Bids
Vendor Quotations forwarded to Procurement Coordinator will be submitted to
the appropriate engineers for technical evaluation. This evaluation will result in
relative rankings along with appropriate explanations among the bidders of a
specific equipment item ; a list of any required clarifications or modifications
and a list of recommended vendor. Each engineer involved in reviewing the
bids for a specific item will clearly initial each of his comments in case of further
questions and also for record purposes.
Direct communication between engineers and vendors, except for a general
informational nature, will be prohibited without the presence of the Procurement
Coordinator or an appropriate designer, so that potential confusion of
misunderstanding is avoided. This will also aid in maintaining control of
approved change orders.
When the technical evaluations are completed, the Procurement Coordinator
will forward a recommendation to Project Manager for review.
d) Request for Purchase Order
As soon as a decision has been reached on the successful vendor and the bid
tabulation has been approved by all parties, The Contractor will update the
inquiry specifications to purchase specifications by incorporating any technical
changes approved during the bid tabulation. The Procurement Coordinator will
prepare a request for purchase order including the updated purchase
specifications and forward the request to the Project Manager for review. The

Procurement Coordinator will also notify the appropriate task force members of
the preliminary schedule for the drawing approval cycle so that work can be
scheduled accordingly.
Upon receipt of a copy of the vendor's
acknowledgement of purchase order receipt, the Procurement Coordinator will
advise the task force of the final schedule for the drawing approval cycle and
other document information.
5) Approval and Certified Drawings and Data
The Procurement Coordinator will be responsible for maintaining current status
report of the receipt and return to the vendor of all approval drawings and design
documents. He will retain an unmarked copy for the purchasing file and submit
additional copies to the Project Manager for routing to appropriate engineers for
review and approval by using an established standard check list and procedure.

6)

Construction phase

A.

Construction Policy
The successful implementation of the construction work will depend upon two
fundamentals:

A comprehensive and realistic construction strategy

Experienced site organization and the requisite labor resources, all motivated to
execute the strategy.

The Contractor's policy of construction to achieve these objectives is summarizes as

bellows:

B.

Early finish of temporary facilities

Early IFC drawing release to support construction team

Timely manpower mobilization

Timely construction equipment mobilization

Timely delivery of equipment & material to site

Mobilization plan
The supervisory and craft personnel will be mobilized from the following sources:
- The Country
In order to achieve the maximum participation of Local manpower and in conformance
with the Contractor's local recruitment plan, some of the staff and all the clerical
assistance will be obtained in The Country. All the Local labor will be mobilized by
subcontractors.

For the purpose of efficient mobilization, the construction management team, will arrive
at site prior to actual start of construction activities. Their first task will be the layout and
construction of temporary facilities.
1)

Supervisory Personnel
The Contractor will mobilize key construction personnel in accordance with the
construction schedule.
The first stage in the supervisory staff mobilization program will be the assignment
of key personnel to engineering / procurement offices to input construct ability into
the design and for a period of familiarization with the project prior to being assigned
to the site. Concurrent with their familiarization program, all necessary visas,
inculcation, etc. required for entry in the Country will be completed.

2)

Labor
Required labor will be forecasted 30 days in advance and will be recruited
accordingly by the subcontractors. Skilled labor will be tested according to
qualification standards detailed in the quality assurance procedure.
All the labor will be provided with the following information before being admitted to
work at site.
- Description of the project
- Safety and sanitary regulations
- Quality control standards

C.

Temporary Site Facilities

At the appropriate time and in cooperation with CLIENT, the Contractor will initiate the
work required to construct the temporary facilities such as site offices, warehouse work
shops.

D.

Construction Equipment
Most of the construction equipment, tools and consumable will be supplied by
subcontractors according to the construction equipment schedule which will be set up
before construction work starts and will be updated monthly by the Contractor.
The Contractor will check and inspect the construction equipment provided by
subcontractors to ensure the first class condition of these construction equipment.
The Contractor will mobilize their own construction equipment or rent from the agent
outside The Country when those heavy equipment handling construction equipment
needed are not available in The Country
The Contractor's head quarters, overseas branch offices and the site office will
cooperate closely to achieve this goal timely and successfully.

E.

Site Material Control and Management

1)

General
Material management at site is under the responsibility of the material control
manager.
The material control manager monitors the status of all materials from receiving to
field erection at the site.
Any damage or shortage of materials or equipment will be checked during receiving
inspection and material control manager will report directly to the project manager
the monitoring status.
His responsibility will also include field procurement and coordination for smooth
and timely customs clearance.

2)

Material Control
a) Receiving
All shipment will have been properly cleared and , if originating from outside The
Country, released by customs before any receiving action can be taken. An
initial check will then be considered before being off-loaded.
The initial check comprises;

Quantity check

Damage check

Overage, any shortage or damage is noted on the transporter's shipping papers

and an "Over, Short, and Damage Report" (OS & D Report) is written and
distributed for appropriate action (Purchasing, insurance, etc.)
After these checks have been made and any discrepancies recorded, materials
are off-loaded in a receiving section.
Incoming material which cannot be clearly identified with a purchase order
and/or item number is recorded on an "Unidentified Material Register" until it is
properly identified.
A final Check is made against the purchase order or the specification.
This visual check is made to verify that the items meet the purchase order or
specification, and discrepancies are recorded on an "OS & D" Report.
After the material has been checked, off-loaded and rechecked, a brief
handwritten summary of all incoming shipment will be issued.
Detailed material receiving reports are issued the same day for recording on the
purchase order files, stock cards, equipment schedules and delivery records.

The material control manager maintains a file for each shipment or purchase
order item which contains the completed history of the order.
These files contain:

Requisitions

Purchase orders

Expediting and inspection reports

Material certificates

All correspondence relating to the order

Material receiving reports

OS & D reports

Insurance claims

As a control system, the warehouse maintains ;

Stock Cards (for piping materials, etc.)

Stock Lists (for safety valves, control valves, instruments, etc.)

Material Status Report

Schedule with information pertaining to equipment orders, such as

delivery and erection.

This schedule is maintained by the planning / scheduling manager.

b) Warehousing
The fundamental function of storage control is to supply suitable
materials at
the proper time. For the effective operation of that function, constant care will
be taken to keep the original quality and quantity from any objectionable
conditions. Thus, all materials will be controlled to be free from any loss,
deterioration, robbery, mistake so as to be resulted in the issue of suitable
material.

3)

Issuance of Materials
Materials shall not be issued from the warehouse or its enclosures without a
warehouse withdrawal slip.
This issue slip specifies where the material is to be used, the quantity, size and
description and will be signed by an authorized personnel.
The issue slip is presented to the warehouse for withdrawal of the material, checked
by the warehouseman and initiated to record the issuance.
The issue slip is utilized for the information of respective stock record or purchase
order card.
At the close of each day, the warehouseman will pass all warehouse withdrawals
slips to the chief warehouse engineer for the posting up of the stock record or
purchase order cards. When all issues have been posted up, the withdrawal slips
will be filed numerically.
Materials that are stored in the warehouse or its enclosures will be checked
periodically. The actual number and date of inventory will be entered on the face of
the stock recorded.

F.

Equipment Preservation Plan

The plan will be followed to protect equipment against deterioration from the time it is
received at the construction site until it is placed in operation or turned over to CLIENT.
Before finalizing the equipment protection procedure for the project it will be checked to
ensure conformity with CLIENT's specific requirements and to determine CLIENT's
preference as to lubricants and preservative compounds.
Materials and equipment will be adequately protected before shipment and storage by
the manufacturer in accordance with purchase specifications or manufacturers standard
practices, which will be in accordance with CLIENT's requirements.
If the vendor has furnished instructions for field check and supplementary requirements,
it will be performed and the dates of application will be recorded.
Before placing equipment in service, it will be necessary to check if the protective coating
applied should be removed before placing the equipment in service.

G.

Start-up

General
The commissioning team will be composed of the following engineering, technical and
operating personnel. They will operate under the direction of the commissioning manager.

Site Construction/Technical Personnel

Subcontractor's Site Engineers

Vendor Supervisor (as required)

The commissioning manager will coordinate with Client's O & M members for the activities of
the initial operation teams. Each team will consist of engineering, technical and operating
personnel in the fields of process, instrumentation, electrical, mechanical and safety to support
the Client.
Each team will have at its disposal a maintenance crew consist of millwrights, electrical and
instrumentation technicians, welders, fitters and general labor.
It will be the responsibility of the commissioning will be the responsibility of the Contractor that,
Contractor will utilize the Contractor's operating personnel to assist in "hands-on" operations to
supplement their training activities.
Operation of the facilities during commissioning will be the responsibility of the Contractor that,
Contractor will utilize the Contractor's operating personnel to assist in "hands-on" operations to
supplement their training activities.

Pre-commissioning
Pre-commissioning will include all activities associated with preparing and conditioning all
prefabricated and field erected facilities in accordance with recommended engineering
practices so as to permit start-up and initial operation of the facilities.
Prior to the date scheduled for pe-commissioning, the pre-commissioning plan and manual will
be submitted which shall detail the sequence of events and describe specific activities to be
performed and results to be achieved for all designed systems and equipment.
The manual will stipulate, describe and list all equipment and consumable items required for
each system and equipment and provide applicable check-out forms. tags and certification
documents for subsequent issuance of the certificate of pro-visional acceptance of work.
These pre-commissioning activities will be performed in accordance
precommissioning plan and manual and witnessed by the Contractor.

with

the

Commissioning and Start-Up

Following notice from the Project Manager, start-up and commissioning activities will be
performed under the instruction of the commissioning manager.
Client site representatives and production operations personnel will be scheduled to witness
and take part in this activity, as this becomes an integral part of on-the-job training.
Commissioning will include all activities associated with start-up and initial operation so as to
permit performance and acceptance test to be conducted on the facilities.
The start-up and acceptance test manuals, which will be issued following completion of basic
design, will describe in detail the sequence of start-up activities and delineated the various
acceptance tests to be performed.
The start-up manual will discuss such operations as initial operation, unit shut-down, system
shut-down and emergency shut-down, as well as re-start operations following shut-down
conditions. The acceptance test manual will describe the tests, establish the level of
acceptable performance and provide forms for documenting the results.