Project Control PLAN

CONTRACTOR’s primary objective for Project Controls function is to provide timely and accurate information needed by the Project Management, Project Teams, and COMPANY to identify both problems and opportunities and to initiate appropriate action for the successful execution of the work. The key element of our Project Control System includes:

• Project Planning & Scheduling

• Progress Measurement, Control & Reporting

• Reporting (Daily, Weekly, Monthly, etc.)

• Cost Control, Invoicing & Estimating

• Change Control

• Document Control

The project program shall include detailed schedules at different levels, computerized in such a way that planned and actual progress can be aggregated and automatically loaded from the lowest to the highest level.

Associated with each activity will be three sets of dates: “planned”, “actual” and “forecast”. The “planned” dates will, in principle, remain fixed through the whole Contract period. The schedule will at any time reflect the total Scope of Work, duration and the logic for the different phases of EPC Contract.

Upon award of contract, the preliminary Project Master Schedule submitted with this proposal will be updated/ modified to incorporate any changes/ clarifications as applicable and issued to COMPANY.

Likewise, during the initial weeks after Contract award, the Project Controls Manager will also define the Work Breakdown Structure, the scope of work, deliverables, procedures for schedule control, progress measurement, change control and project reporting, and define the hardware and software requirements for the project controls system. He will also ensure that the entire Project Team is conscious of project controls and understands that effective control is the responsibility of all. Emphasis will be placed on "planning" to ensure that the Work is first fully defined and integrated in a logical way that meets the overall Project objectives. Members of the Project team will participate in the development of schedules.

The Overall Project Schedule, detailed engineering and procurement schedules, planned progress curves and histograms will be finalized during this phase to serve as the baselines against which subsequent progress will be measured and controlled.

The emphasis will shift to monitoring, analyzing, controlling and reporting during the project controls and reporting phase. The Project Controls Team will prepare detailed schedules and will be monitored to identify and remove obstacles, take corrective actions and control the physical progress to ensure the summary level schedule targets and project schedule objectives are achieved. Project Management meetings will be held to review accomplishments, discuss future plans, assess manpower requirements and upcoming interfaces. Weekly and monthly meetings will be held throughout the life of the Project.

The Project Controls Team will be involved in trending, predicting and recommending corrective action where necessary to ensure that effective co-ordination occurs and the execution proceeds according to plan.

There will be close coordination with the CONTRACTOR throughout all phases of the Work to ensure that the CONTRACTOR is kept appraised of the Project status.

Project Control Organization

 Organization

The Project Control Manager will be first established at Operations Center for set-up and implementation of project controls system for engineering and procurement activities. He will be shift to site Operations Center from the start of permanent construction work.

Project Control Manager will assure that planning, scheduling and cost control procedures, project reporting, progress measurement procedures are properly implemented in all Operations and Support Centers including Vendor and Subcontractor work locations.

He will receive Project progress reports from various Project Teams in TOC, MBOC and Support Centers as well, and will report to the Project Manager and, as required by Contract, to COMPANY. Based on these reports he will advise the operation centers of any action required for scheduling activities

At Operations Center, the Project Control Team will receive project control reports from Vendors/Suppliers, Fabrication Subcontractors, and Engineering Subcontractors. Also, during early stage of construction or temporary facilities and site development phases,  Site personnel particularly Construction Manager will submit progress reports to Project Control team, for the time being.

Until when Site Operation Center in fully operational, then center of Project Controls will operate at Site, by then, Operations Center Engineering and Procurement Managers will submit progress reports to Site .

A Project Controls Coordinator will be assigned for Vendors, Subcontractors and Project Operation Centers that are away from Project Control Manager in order keep updated of all activity and event of each work locations.

The organization chart for the Project Controls group is provided in Section 3.2, 3.2.3.1 Organization Charts.

Responsibilities

Project Controls Manager

The Project Controls Manager has the overall responsibility of the project control activities and reports directly to the Project Manager.

Working with Project Controls Manager, are the following main functions:

• Planning Manager

• Senior Cost Engineer

• Progress Controller (Progress Measurement/Reports)

• Senior Document Controller

• Quantity Surveyor

• Schedule Controller

• Project Controls Coordinator (for Home Office E&P teams, Vendors & Subcons.)

Respective members of the Project Control Team have the responsibility to control activities their respective discipline area. They coordinate all discipline project control activities, schedule, financial and estimating support activities.

Planning Manager

The Planning Manager will be responsible for;

• Maintenance and update of the EPC schedule

• Monitoring and reporting of schedule status

• Management of the Progress Measurement system

• Monitoring of S-curves, manpower histograms, work productivities and man-hours planned & spend

Senior Cost Engineer

The Senior Cost Engineer will be responsible for;

• Maintenance of project budgets and forecast

• Input cash requirements for billing purposes

• Preparation of interim payment application

• Support progress measurement process

• Change management and estimating

Progress Controller (Progress Measurement/Reports)

The Progress Measurement/Reports Controller will be responsible for;

• Perform progress measurement, man-hours and work accomplishment reports

• Prepare of S-curves, manpower histograms and work productivities

• Preparation of daily, weekly & monthly reports

Senior Document Controller

The Senior Document Controller will be responsible for;

• Implementation of approved Document Control system

Quantity Surveyor

The Quantity Surveyor will be responsible for;

• Quantity take-off, Site progress measurement, monitor of Change in the work

• Provide support to Senior Cost Engineer and Progress Controller

Schedule Controller

The Schedule Controller will be responsible for;

• Operate Primavera scheduling software, and other project control software

• Support Planning Manager to prepare and consolidate of S-curves, manpower histograms, work productivities, man-hours, and progress measurement

Project Controls Coordinator

The Project Controls Coordinator will be responsible for;

• Monitoring, coordination and reporting to the Project Controls Center Office the project controls activities of remotely located Project Teams, Subcontractors & Vendors

Document Controller

The Document Controller will be responsible for assisting Senior Document Controller for the implementation of Document Control system

Project Controls Methodology

 Project Control Database

A key component of the Project Controls System is a database of schedule, cost, and performance related information which the Project Controls Team will use to monitor and report status, analyze trends, predict final costs, schedule, and recommend corrective action. Project Controls team will maintain the database.

The information from the various project execution systems is used to supplement the data within the project controls database by providing details relative to a specific area, e.g., detail commitment register, detail progress report, deliverable logs, and etc.

Software System

For Project Control’s Schedule and Planning, the Primavera system will be used. CONTRACTOR may also utilize Microsoft Project but only for our internal use.

The Primavera system facilities include:

• Development and analysis of critical path bar chart plans to establish optimum project schedules and to enable analysis of resource requirements, activity criticality, schedule slippage and the identification of correction actions.

• Reports for the monitoring and control of schedule, resource, man-hour cost expenditure, deliverables control, equipment and materials tracking and monitoring on a multi-level basis (Work Breakdown Structure).

The reports fully utilize the critical path plan and the flexible interactive database facilities of the system. A full range of graphical reports is individually tailored to COMPANY requirements. The graphs include:

• Progress summary and detailed bar chart.

• Progress 'S-curves’

• Look ahead bar chart schedule.

The summary of CONTRACTOR project control system software proposed to be utilized for the Project is as follows:

• Reference Project Control Procedures

Project Controls Procedures will be developed in accordance with the guidelines defined in the COMPANY’s project specific procedures. The procedures are as follows:

• Progress Reviewing and Reporting

• Project Control Services

• Project Trending Procedure

• Progress Reporting Procedure

• Planning & Scheduling Procedure

• Progress Measurement Procedure

The COMPANY procedures listed above will preside over our Technical Proposal for Project Controls Plan and Procedure, in case of any conflict or irregularity against ITT requirements.

Work Breakdown Structure (WBS)

The Work Breakdown Structure (WBS) is a systematic method of sub-dividing the contents of the project in such a way as to describe each and every part of the project by means of easily recognized reference codes, which can be understood by all personnel involved in the project.

The scope definition, schedules, budgets, physical progress & performance and actual expenditures on this project will be controlled through the application of a common WBS as established by the Project Team. The WBS organizes the project scope into manageable portions.

Each of the WBS elements will be provided with a planned progress curve and a weighting factor to allow for the calculation of the physical progress at higher levels. The WBS will be developed based on a hierarchical structure and will have lower levels that are in support of the construction, procurement and engineering requirements. The WBS will reflect the various site areas, thereby allowing for assigning priorities to individual areas. This will allow engineering and procurement to focus on the supporting engineering documents and associated materials for areas on a priority basis.

General

The Work Breakdown Structure (WBS) is a hierarchical division of the Project work scope of into a number of discrete, identifiable work elements so they can be individually planned and measured for control and reporting purposes. The WBS breaks down the project into unique, logical and manageable units so that it:

• Identifies and defines activities required for engineering, procurement and construction and commissioning tasks.

• Assigns responsibility for activities to specific elements of the organisation and individuals

• Provides a framework for establishment of baselines for costs, schedule and resources.

• Reflects contract strategy

The total project is broken down by Home Office Services and Construction, then into engineering, procurement and construction.

Applicability of WBS

The WBS will be used for the following purposes:

• EPC planning and schedule preparation

• Document and drawing numbering

• Material take-offs

• Costs allocation

• Cost control

• Material purchase and allocation

• Construction sequencing

Project WBS

This section outlines the proposed WBS (Work Breakdown Structure) for the works which is a hierarchical structure of the work components for all aspects and phases of the Project.

LevelCodeDescription

Level 0 n/a Overall program

Level 1 X Phase

Level 2 X Sub-phase

Level 3 XXX Area

Level 4 XX Discipline

Level 5 XXX Activity / Task
 

CONTRACTOR’s proposed Project WBS (Work Breakdown Structure) and Activity Coding Structure is further defined in the following documents:

• Attachment 1 - WBS Levels and Activity Coding Structure

• Attachment 2 - Project WBS

 Level-1 Phases

The WBS on Level-1 will have the following category:

• Home Office Services

• Manufacturing and Delivery

• Construction and Commissioning

 Home Office Services

The WBS on this level will have the following category:

• Detailed Engineering

• Procurement

• Manufacturing & Delivery

[Level-2]
 

Engineering

The WBS on this level will have the following category:

• Total project

• Common

• Discipline (General, Process, Civil and Structural Steel, Tank, Piping, Equipment, Electrical, Instrumentation & Controls, Telecommunication, Corrosion Control & Metallurgy, Protective Coating & Linings, Insulation & Fireproofing, Fire & Safety, Noise Control, Mechanical Handling Equipment, Lubrication Requirements, Spare Parts, Equipment Data Forms, Workshop Laboratory & Equipment, Environmental Engineering and Information Technology)

Procurement Services

The WBS on this level will have the following category:

• Total project

• Common

• Discipline (Civil and Structural Steel, Tank Plates, Piping, Equipment, Electrical, Instrumentation & Controls, Telecommunication, Fire & Safety, Painting & Insulation, Fireproofing and Building)

Subcontracting Services

The WBS on this level will have the following category:

• Total project

• Common

• Discipline (Civil, Structural, Mechanical, Piping, Electrical, Instrumentation, Painting, Insulation, Building and Fireproofing)

Manufacturing & Delivery

The WBS on this level will have the following category:

• Total project

• Procurement Category (Equipment packages, Tank Plates, Bulk Materials)

Construction and Commissioning

The WBS on this level will have the following category:

• Construction and Pre-commissioning

• Commissioning

• As-built

[Level-2]

Construction & Pre-commissioning

The WBS on this level will have the following category:

• Total project

• Area ( Common Area, Area 1, Area 2, Area 3, Area 4, Area 5 and Area 6)

• Discipline (Civil, Structural, Mechanical, Piping, Electrical, Instrumentation, Painting, Insulation, and Pre-commissioning )

Commissioning

The WBS on this level will have the following category:

• Total project

• System

As-built

The WBS on this level will have the following category:

• Total project

 Planning and Scheduling

The proposed Project Master Schedule is provided in Section1.

Level 1 - Project Overall Master Schedule

The Level 1 - Project Master Schedule, which shall be derived from activity network analysis and shall summarize the activities as contained in the Level 2 schedule.

The Level 1 shall contain such activities as are required to enable progress monitoring against the Milestones and indicate the method of the Work at the various locations. The Level 1 shall provide the link between COMPANY’s and CONTRACTOR’s planning and scheduling, and shall indicate the different floats included in the schedule.

The Level 1 will be progressed monthly to reflect the current status of the project. Any changes to the logic of the Level 1 shall be subject to COMPANY’s approval.

Level 2 - Overall Project CPM Network Schedule (and Initial 90-Day Starter Schedule)

The Overall Project CPM Network Schedule shall be the Level 2 schedule. The Level 2 shall show the activities planned at early start date and clearly define the critical path activities. The Level 2 shall represent an aggregation of the information contained in the Level 3 schedules, and contain the key milestones as in the Level 1 schedules. Schedule start and finish dates shall be clearly identified together with float times.

The progress status shall be updated weekly and provided to COMPANY on the Level 2. Any changes to the Level 2 schedules shall be effected through a change in the Level 3 schedules and shall be subject to COMPANY’s approval.

Level 3 – Detailed Deliverable Schedules

The Level 3 - Detailed Deliverable Schedules shall contain all physically identifiable deliverables for each of the activities identified in the Level 2. The deliverables that shall be reflected in the Level 3 schedules are defined in COMPANY project requirements.

These Level 3 schedules shall be developed for project management, detailed design and engineering, procurement, fabrication and construction and commissioning, and so on. The Level 3 schedules shall be progressed weekly.

• Design/Detailed Engineering Document Issue Register

• Procurement Services Register

• Subcontracting Register

• Manufacturing and Delivery Register

• Level 3 Construction Register

• Construction Subcontracts

• Three-week Look Ahead Schedule

• Pre-comm’g. & Commissioning Schedule

• Others schedules/ Requirements

Supporting Schedules

Various Level 3 schedules other than the above schedules will be prepared and used by CONTRACTOR so that discipline functions are able to easily control their tasks to attain the objectives.

They are basically manually drawn and in a bar chart format or others as appropriate. They may include such schedules as:

• Milestone Schedule

• Shipping Schedule

• Vendor Surveillance Schedule

• Weekly Construction Schedule

• Monthly Construction Schedule

Supporting schedules will be updated on a weekly, bi-weekly and monthly basis depending on its nature and necessity.

Schedule and progress data shall be obtained at the supporting schedules level, and progress is calculated and reflected in Level 3, then summarized up to Level 1 through Level 2 according to WBS hierarchy.

Construction Manpower Planning

The Construction Manpower Planning shall be prepared for labor and its estimate of man-hours needed for Construction in the form of histograms. Trades for the entire duration of construction activities shall be broken down and submitted as per COMPANY instructions.

Construction Equipment Planning

CONTRACTOR’s plan for deployment of Construction Equipment and facilities, in the form of a loading chart by time, identifying each type of construction equipment and number required per month or week, shall be prepared and submit to COMPANY.

Manpower Histogram

CONTRACTOR will produce histograms that will depict the scheduled manpower 'planned' and actual manpower deployed on weekly/monthly basis.

The histograms shall be produced for the following:

1. Overall PROJECT Histogram
2. Overall Home Office Histogram – Direct / Indirect/Overall
3. Overall Construction Histogram– Direct / Indirect/Overall
4. Histogram by Home Office Functions

(This histogram will indicate planned, forecast and actual man-hours separately for engineering, procurement, subcontracting and other disciplines for the entire duration of Home Office Services. For Engineering, a further split by disciplines shall also be provided)

• Histogram by Construction Subcontract/Discipline

(This histogram will indicate planned and actual man-hours for each trade and discipline separately for Construction. This shall be developed from Level 3 Construction schedules.)

Progress ‘S’ Curves

Progress S-Curves will be developed applying CONTRACTOR proposed Project WBS and Weightages, indicating weekly and cumulative plan progress details (early and late profiles). Progress S-Curves shall be developed from the schedule database and as per the sample formats given in Exhibit Progress Reporting Procedure. The categories of main progress S-Curves to be developed are given below:

• Home Office Services Progress ‘S’- curves

• Manufacturing & Delivery Progress ‘S’-curve

• Construction & Commissioning Progress ’S’-curve

• Overall Project Progress ‘S’-curve

Progress Curves

In addition to the above, CONTRACTOR will also be required to develop progress ‘S’-Curves separately for Detail Engineering, Procurement Services, Subcontract Services as well as for any other specific Area / Phase / Discipline as the project progresses. Actual progress shall be monitored with respect to the Early Plan profile only.

Project Milestone

Project Milestone will be developed and agreed with COMPANY and shall form the basis of Milestones as indicated in Schedule of Major Milestones in Exhibit. Schedule of Major Milestones will be incorporated in Project Master Schedule bar chart. Wherein, for each of the milestones the planned, forecast and actual date will be shown.

Vendor Surveillance Schedule

A detailed Vendor Surveillance Schedule shall be prepared and submitted in the form of a network and associated bar chart together with a manpower histogram showing the numbers and categories of personnel required to meet the schedule. Third Party personnel shall be identified on the manpower histogram. This detailed Vendor Surveillance Schedule shall be submitted to COMPANY for review and approval prior to the issue of the requisition for enquiry.

CONTRACTOR shall maintain the surveillance visits as approved by COMPANY and notify COMPANY of its intent to waive surveillance activities ahead of timetable prior to the event.

Schedule Analysis and Forecasting

Procedure

Input of actual schedule data such as actual progress percentage (%), actual start date, actual finish date, remaining duration and/or so on.

The updated schedule will show schedule slippage, consumption of float and progress status of activities.

When schedule slippage and/or progress deficiency can be seen, the cause will be surveyed and checked, and problem area is identified and clarified, appropriate corrective measures will be planned by CONTRACTOR and reported to COMPANY for review.

After schedule analysis, estimated completion date of the activities and major and critical milestones will be forecasted.

The significant delay foreseen will be overcome by planning corrective measures, which will be subject to COMPANY’s review.

Analysis and Forecasting

Based on achieved milestones, achieved physical progress and in combination with forecasted document, equipment and material deliveries and availability of resources as well as other relevant information the Project Controls Team will evaluate the risks associated with achieving project milestones and impact on the overall project schedule.

Project Controls will support the project management team in developing solutions to prevent schedule delays or to mitigate the impact of such delays.

Only when the baseline becomes no longer a meaningful reference point for controlling the project and with the approval of COMPANY, a new baseline will be established. This rescheduling activity is a major effort and requires the involvement of all parties. The approval of COMPANY will be required prior to revision of the project baseline.

Progress Measurement

Please refer to provided Progress Measurement Procedure, for Project implementation.

Basis of Progress Measurement

Progress measurement will be based on the physical progress against each of the activities / sub-activities / deliverables according to a set of weighted values, allocated according to the effort required to complete. For working out the weightages of various activities / deliverables within each area and within each project phase, the following basis will be used:

Weightage System

CONTRACTOR will develop Weightage System using the following guidelines;

• The weight factors considered for Progress Measurement System shall remain fixed during the Contract.
• CONTRACTOR shall propose the total system including the lowest level of progress measurement for Home Office and SITE work. The system will be submitted for COMPANY’s review and approval prior to implementation.
• CONTRACTOR shall utilize a computerized system, which allows for the weighing of various activities and uses a common unit of measure relative to the total Project for accurate and meaningful measurement of overall Project progress.
• The weight factors and progress measurement shall be based on direct man-hours and deliverables not indirect or time related functions
• Level 1 and Level 2 weight factors shall be fixed during bidding stage. Level 3 and onward weight factors shall be proposed by CONTRACTOR and approved by COMPANY. Once approved, these shall remain unchanged throughout the Project duration.

Each activity or deliverable listed in the respective Planning Register will be assigned estimated man-hours / cost depending on the estimated work content / cost, as applicable.

Activity or deliverable weight factors will be computed based on the estimated man-hours/cost as a fraction of the total man-hours / cost for each Area / Phase / Discipline etc. and for the whole project.

The weight factors thus computed from Planning Registers will be rolled up to Level-2 and Level-1 by Area / Phase / Discipline etc. in line with the Project Work Breakdown Structure (WBS).

Relative weightings for developing the overall S-curves against the above three phases and for each area and / or discipline will be in accordance with the weightings given in the Project WBS.

 Progress Measurement

In case of Home Office Services and Manufacturing & Delivery Deliverables, progress against each activity / sub-activity / deliverable level will be based on assigning certain pre-defined percentage (%) progress representing the achievement of specific intermediate Milestone (Control Point) required to complete the activity / deliverable. Partial completion of any intermediate milestone (Control Point) does not entitle any progress claim against the specific intermediate milestone.

In case of Construction and Commissioning, progress against each activity / sub-activity level will be measured based on the achievement of specific stages/ steps/ milestones of completed quantity of work.

Overall progress of each project Area / Phase / Discipline etc., will be computed by multiplying the activity % progress by its weight factor and thereafter summing up the products.

Overall progress for the whole project will be calculated by integrating the progress against each project Area / Phase / Discipline etc. as described above, with the respective weightings.

K Factor and Construction Weight Factors

CONTRACTOR will apply K factor values, whenever requested by COMPANY for actual implementation of Progress Measurement System in the Project.

 Reporting

The following reports shall be prepared in consideration of progress attained within Project Calendar cutoff dates. CONTRACTOR shall provide to COMPANY on the given submission times.

• Daily Construction Report

A Daily Construction report will be prepared  as per the required structure detailed in  Major highlights of Construction and COMMISSIONING activities along with HSE issues and Areas of Concerns, Daily Construction Manpower return and Daily Construction Plant & Equipment return.

• Weekly Progress Report

CONTRACTOR shall submit the weekly progress report as per the PROJECT calendar and “Cut-off” date”, which will be every Friday and the weekly report shall be issued the following Monday.

• Monthly Progress Report

The monthly report shall be a bound document produced by CONTRACTOR and issued each month to COMPANY. The report shall be issued as both hard copy and by electronic data transmission to COMPANY’S office in Abu Dhabi. The report shall be the formal means of recording the status of the PROJECT.
 

• Monthly Flash Reports

CONTRACTOR shall submit a Flash Monthly Progress Report by 1st working day of the following month in a summary form as per the format specified by COMPANY.

The contents, elements, report attachments, sample formats, and schedule of submission of the reports are defined in Exhibit Progress Reviewing and Reporting and Exhibit B.4.2 Progress Reporting Procedure.
 

Progress review Meeting

Progress meetings between COMPANY and CONTRACTOR will be held for:

• Weekly Progress Meeting

• Monthly Management Progress Meeting

CONTRACTOR’s Weekly Progress Report will be reviewed in detail during Weekly Progress Meeting.

CONTARCTOR shall present and record minutes of all progress review meetings with particular attention to actions agreed upon and the dates by which actions are required to be taken and the party responsible for carrying them out.

The Monthly Management Progress Meetings shall be held at either CONTRACTOR’s Home Office, COMPANY’s Office or at the Project Site as chosen by COMPANY.

Monthly meeting shall be attended by CONTRACTOR’s Senior Management personnel. Monthly Progress Report will be reviewed by COMPANY where presentation will be made by CONTRACTOR to COMPANY Management.

Cost Control

CONTRACTOR will prepare and submit a Cost Control System for review and approval by COMPANY. The system includes the processes of cost trending, developing estimates for Variations and preparation of an Asset Register.

CONTRACTOR has in-house cost control software the Cost Information Management System, this system is proposed to be used in the Cost Control function for the Project. Current budgets and forecast of cost incurred will be monitored, trended and reported using OCIMS.

Internal Cost Reports and Cost Baseline

Since this project is a lump sum, Cost Reports will only be prepared for internal distribution. The internal standard cost reports will be maintained per CONTRACTOR standard procedures and issued to Project Manager by Project Controls Manager to allow proper cost control of the project.

The baseline for the Project Cost Control will be the Project Budget Price, which will be defined per CONTRACTOR standard procedures. The total project scope will be budgeted using the project WBS.

These procedures are not included or tracked in the Document Deliverable Register because they are CONTRACTOR’s standard procedures written in Korean characters and will be used only for internal information.

Cost Trending and Reporting

CONTRACTOR will perform all necessary cost trending and reporting functions following COMPANY’s requirements, namely:

• Application of guidelines defined in Exhibit B.4.1 Project Trending Procedure.

• Raising necessary documentation as per COMPANY approved procedure for Trends/Variation, such as;

• Design Change / Concession Authorization [DCA] Form

• Contract Trend Notice [CTN]

• Contract Trend Notice [CTN] Register

• Contract Design Change/ Concession Authorization [DCA] Register

• Include all applicable Drawing/Specification/Procedure Nos. with Title and Revision/Purchase Order, etc. affected by the CTN

• Include all applicable Deviation/ Proposed Rectification/Justification for Change for CTN

• Submit detailed cost estimate for all such Trends/Variation requests and support documentation of the anticipated impact on cost and/or schedule of PROJECT.

• Monitor and update registers and document status of Trends/Variation requests as per the approved procedure

• Issuing PROJECT Cost and Schedule trends in formats approved by COMPANY as art of the Monthly Progress Report

NOTE: The Aforesaid requirements shall be applied only to Variation requests.
 

 Cost Estimates for Variation

Variations which introduce cost impact will be priced based on available information from Exhibit A.7 Agreement Price, Invoicing & Payment and Rates for Variations and detailed quantity information that is provided by the disciplines involved. Project Controls’ Senior Cost Engineer will be consulted whenever additional cost information is required.

CONTRACTOR shall develop detailed cost estimates for any changes, deviations or concessions requested. Cost estimates shall provide the detailed back up of cost impacts on Home Office Services, Materials, Construction and Field Supervision. The estimates shall be subject to review and approval by COMPANY. CONTRACTOR shall incorporate COMPANY comments and revise the estimates as required.

Variation Control

Variations or change of design or specification, which can be implemented within the terms and conditions of the Contract, shall be handled as Variation Control. Irrespective of the type of change, the proposed variation shall be evaluated by CONTRACTOR to identify and assess its implications and to ensure any potential hazards are appropriately controlled. The effect of the Variation on the Contract, with respect to both cost and schedule, shall also be determined before submitting the Variation to COMPANY for approval and subsequent implementation.

The key element in effective Variation Control is the management and control of scope. In the event of any work variations or change in the work, the Project Controls Team will handle the changes following Contract Trending Procedure.

A specific Variation Control Procedure will prepared by CONTRACTOR following Exhibit B.4.1 guidelines, to ensure that changes cannot be introduced into the project without proper control and authorization. Only after a change has been reviewed and approved can it be accepted and implemented.

CONTRACTOR will adopt available COMPANY procedures given  Exhibits.

CONTRACTOR will utilize COMPANY approved procedures and forms for the identification and incorporation of Trends/ Variations into the scope of Project. This includes:

• Identification and notification to COMPANY of the activities that CONTRACTOR considers outside its scope of WORK.

• Preparation and submission of Trends/Variations requests to COMPANY for approval, including the estimate of cost and Schedule impact on Project.

• Maintaining an up-to-date record of status of all Variation (approved, rejected, withdrawn, under evaluation, etc.).

• Maintaining records of man-hours spent by CONTRACTOR’s personnel on each Trends/VARIATION.

• CONTRACTOR shall provide a final Cost breakdown of Project in accordance with COMPANY’S Asset Register requirement and COMPANY code of accounts.

ATTACHMENTS (restricted Access)

Attachment 1 - WBS Levels and Activity Coding Structure

Attachment 2 - Project WBS