Applied Management in the Construction Industry1 An introductory approach for professionals2 Part II – In practice3
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Dimitrios N. Dounas Civil Engineer NTUA
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Copyright © 2017 Dimitrios N. Dounas. All Rights Reserved This document has not been subject to an endorsement process by any national or international organization or any institution or any governmental, academic, public or private entity or any society or group of people or any individual. This document was published on the 1st of October 2017 Wikipedia “Archimedean spiral” http://en.wikipedia.org/wiki/Archimedean_spiral Privacy policy Page 1 of 495
Acknowledgements This document is dedicated, with due respect, to: •
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My father Nikolaos D. Dounas (1915-1984), a carpenter, Our mentor5, Professor Ευτύχιος Κοκκινόπουλος6 (Eftyhios Kokkinopoulos) (1908-1974), Dean of NTUA (1966-1970), The construction industry workers -past, present & future.
I would like to express my appreciation to: •
The owners and management of the construction organizations that offered employment to me and thousands of fellow workers (chronological order): Edok-Eter Archirodon ADK J&P
•
•
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The committed, honest, valuable associates, The owners and management of the projects we constructed who gave us the opportunity to acquire and develop effective engineering, construction and management experience and skills, The dedicated individuals, entities, schools, centres, laboratories, universities, businesses, organizations, institutions, federations, unions, societies, authorities, states, etc. (whatever their curriculum might be) that offer hard labour, experience, knowledge, science, legislation, publications, regulations, codes, standards, funds, jobs, projects, products or services to the construction industry so that the people of this world may enjoy a peaceful and decent life.
Thank you all. Yours truly, Dimitrios N. Dounas Civil Engineer NTUA Halkida, Euboea, Greece 1st October 2017 5
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Constantine Petrou Cavafy Che Fece .... Il Gran Rifiuto http://www.cavafy.com/poems/content.asp?id=1&cat=1 Copyrights Ευτύχιος Κοκκινόπουλος http://www.civil.ntua.gr/bio/kokkinopoulos/ © 2017 School of Civil Engineering, NTUA Page 2 of 495
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Table of contents Foreword
15
Introduction
16
In practice - head notes
20
Chapter A The construction industry organization
25
A.1
Legal profile
25
A.2 A.2.1 A.2.2 A.2.3
Commercial profile Branches of engineering Construction engineering consultants Construction engineering contractors
26 26 27 29
A.3 A.3.1 A.3.2
Corporate finance Financial management system Corporate budget
30 31 34
A.4 Human resources A.4.1 Shareholders A.4.2 Board of directors A.4.3 Executive committee A.4.4 Organizational structures A.4.4.1 Head offices A.4.4.2 Engineering construction projects A.4.5 Delegation of authority A.4.6 Line of command A.4.7 Personnel A.4.7.1 Employment legal system A.4.7.2 Employment principles A.4.7.3 Employees’ personal codes A.4.7.4 Employees’ classification A.4.7.5 Personnel administration A.4.7.6 Construction industry occupations
35 36 36 36 38 38 42 45 46 48 49 50 51 51 53 54
A.5 Management systems A.5.1 Quality management system A.5.1.1 Quality of construction A.5.1.2 Quality standards A.5.2 Environmental management system A.5.2.1 Unhealthy environment A.5.2.2 Environmental standards A.5.3 Occupational health & safety management system A.5.3.1 Safety and health at work A.5.3.2 Occupational health & safety standards A.5.4 Integrated quality, environmental, occupational health & safety
55 56 56 58 58 59 59 60 61 61
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A.5.4.1 A.5.4.2 A.6
management system 62 Procedures of an integrated quality, environmental, occupational health & safety management system 62 Work instructions of an integrated quality, environmental, occupational health & safety management system 68 Communication systems
70
A.7 Information systems A.7.1 Monitoring and reporting A.7.2 Review meetings A.7.2.1 Project review meetings A.7.2.2 Country review meetings A.7.2.3 Management review meetings A.7.2.3.1 Quarterly management review meetings A.7.2.3.2 Yearly management review meetings
73 75 75 76 76 80 80 82
A.8 A.8.1 A.8.2 A.8.3 A.8.4 A.8.5
84 84 84 85 86 87
Cost coding systems Cost coding guidelines Cost coding principles Cost coding modules Cost coding classifications Cost coding database management system
A.9 Plant and equipment A.9.1 Construction plant & equipment A.9.2 Spare parts, tyres, fuels & lubricants A.9.2.1 Spare parts & tyres A.9.2.2 Fuels & lubricants A.9.3 Plant service establishments
88 88 94 94 95 96
A.10 Installation materials, plant & equipment A.10.1 Natural materials A.10.2 Produced materials A.10.3 Procured materials, plant & equipment
98 98 99 100
Chapter B The construction industry projects
102
B.1
Types of projects
102
B.2
Project delivery methods
104
Chapter C Project tender stage
107
C.1
Notification to tender
107
C.2
Decision to participate in a tender
107
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C.3
Appointment of the team to prepare the submission package
108
C.4
Preparation of the tender package
109
C.5 C.5.1 C.5.2 C.5.3
Final review and submission of the complete tender package Approval of the tender package Submission of the tender package Negotiations, clarifications on the tender package
110 111 111 111
Chapter D Main contract(s) preparation & signature
114
D.1
Issuance of the letter of intent
114
D.2
Internal contract review
114
D.3 D.3.1 D.3.2 D.3.3 D.3.4 D.3.5 D.3.6
Contract(s) finalization with the client Correspondence Meetings Final package Guarantees, insurances Contract(s) signature with the client Project dossier
114 114 114 115 115 116 116
Chapter E Project start-up
125
E.1 Project management E.1.1 Project manager E.1.2 Project management team E.1.2.1 Project management team members E.1.2.2 Selection of the project management team E.1.2.3 Appointment of the project management team E.1.3 Applicable legislation, licenses & permits E.1.4 Applicable regulations, codes, standards and specification E.1.5 Task ownership E.1.6 Contract review E.1.7 Project organization E.1.7.1 Project personnel - Requirements E.1.7.2 Project personnel - Recruitment E.1.7.3 Project personnel - Employment contracts E.1.7.4 Project personnel - Inductions E.1.7.4.1 Basic training E.1.7.4.2 Introduction to HSE E.1.7.4.3 On-site induction E.1.8 Project progress meetings E.1.9 Project management plan
126 126 128 129 129 130 131 132 133 133 133 134 135 135 136 136 137 138 138 138
E.2 E.2.1
143 144
Construction management Construction management team
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E.2.2 E.3 E.3.1 E.3.2 E.3.3 E.3.4 E.3.5 E.3.7 E.3.8 E.3.9
Construction teams
145
Technical & controls management Project cost codes Project completion milestones Project design, procurement & construction teams Construction productivities Detailed project schedule Project budget Project cost control Project progress reports
151 154 155 156 157 158 160 161 161
E.4 Quality management E.4.1 Project quality personnel E.4.2 Project quality documents E.4.2.1 Documents & filing coding E.4.2.2 Project quality plan E.4.2.3 Project procedures E.4.2.4 Design quality documentation E.4.2.5 Procurement quality documentation E.4.2.6 Construction quality documentation
162 163 165 166 168 172 173 174 174
E.5 Health safety & environmental management E.5.1 Project HSE management documentation E.5.1.1 HSE plans
175 175 177
E.6 E.6.1
Risk management Project risk management plans
180 181
E.7 E.7.1
Security management Project security plans
183 183
E.8
Emergencies
184
E.9 Financial & administration management E.9.1 Project financial management E.9.1.1 Project financial management plan E.9.1.2 Project accounting E.9.1.3 Project accounting computer network E.9.1.4 Project bank guarantees E.9.1.5 Project expenses E.9.1.6 Project valuations, invoices E.9.1.7 Project income forecast E.9.1.8 Project financing E.9.1.9 Project profit & loss statement E.9.1.10 Project financial reporting E.9.1.10.1 Mega & major projects financial reporting E.9.1.10.2 All other projects financial reporting E.9.1.11 Project financial auditing E.9.2 Project administration department
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185 187 187 190 192 193 195 196 198 199 201 201 201 204 205 206
E.9.2.1 E.9.3
Administration department monthly reports Financial & administration quarterly & yearly reports
207 207
E.10 Project plant management E.10.1 Plant professions
208 210
E.11 Project installation materials, plant & equipment E.11.1 Project natural materials E.11.1.1 Air E.11.1.1.1 Air contaminant construction workplaces E.11.1.2 Gravel, sand, silt, and clay E.11.1.3 Rocks E.11.1.4 Water E.11.1.5 Wood E.11.2 Project produced materials E.11.2.1 Concrete E.11.2.2 Asphalt E.11.3 Project procured materials, plant & equipment
211 211 212 213 216 218 220 221 222 222 224 225
E.12
226
Project subcontracting
Chapter F Project design
229
F.1 F.1.1
Approved designers Designers’ subcontracts
229 230
F.2 Design process F.2.1 Design & development planning F.2.1.1 Design management F.2.1.2 Scope of supply F.2.1.3 Objectives F.2.1.4 Hazard and operability studies F.2.1.5 Deliverables F.2.2 Design inputs F.2.2.1 Basic engineering design F.2.3 Design controls F.2.3.1 Design review F.2.3.2 Design verification F.2.3.3 Design validation F.2.4 Design outputs F.2.4.1 Front-end engineering design F.2.4.2 Detailed design F.2.5 Design changes F.2.6 Project design meetings F.2.6.1 Design kick-off meeting F.2.6.2 Design progress meetings F.2.7 Design progress reports
232 233 234 236 236 236 237 238 239 239 239 240 241 241 242 243 244 244 245 246 248
Chapter G
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Project procurement of manufactured materials
250
G.1
Procurement management
250
G.2
Approved suppliers
251
G.3 Procurement process G.3.1 Procurement preliminary lists G.3.2 Procurement work instruction G.3.3 Indicative list of materials, plant & equipment G.3.4 Materials’ specifications G.3.5 Stock materials requisition G.3.6 Quotations from suppliers G.3.7 Client’s approval of the supplier G.3.8 Suppliers’ subcontracts G.3.9 Placement and follow-up of an order G.3.10 Receipt of materials G.3.11 Storage of materials G.3.12 Client-supplied materials G.3.13 Materials management system G.3.14 Quality assurance & control requirements for suppliers of manufactured materials, plant & equipment G.3.14.1 Supplier’s quality system G.3.14.2 Supplier’s quality plan G.3.14.3 Supplier’s quality procedures G.3.14.4 Supplier’s quality audits G.3.14.5 Material certification G.3.14.6 Material control and traceability G.3.14.7 Inspection & test plans G.3.14.7.1 Contractor’s inspection and test plan G.3.14.7.2 Supplier’s inspection and test plan G.3.14.7.3 Inspection activity terms G.3.14.8 Inspection levels, notification, pre-inspection and inspection meetings & inspection release certificates G.3.14.8.1 Contractor’s inspection levels G.3.14.8.2 Inspection assignment package G.3.14.8.3 Inspection notification G.3.14.8.4 Procurement inspection meetings G.3.14.8.4.1 Procurement pre-inspection meeting G.3.14.8.4.2 Materials’ production inspection meetings G.3.14.8.4.3 Materials’ inspection release certificates G.3.14.9 Non-conforming products or activities G.3.14.10 Manufacturer’s data report G.3.14.10.1 Sample manufacturer’s data report index G.3.15 Inspection agencies
251 251 252 253 261 262 262 263 263 264 265 266 266 266 266 266 267 267 267 268 268 268 269 269 269 270 270 270 271 272 272 273 274 275 275 275 277
Chapter H Project construction preliminaries
279
H.1
279
Project kick-off meetings
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H.1.1 H.1.2 H.1.3 H.1.4 H.1.5 H.1.6 H.1.7 H.1.8
Internal meetings Partners - if in joint venture Financial institutions Designer(s) Subcontractor(s) Suppliers External auditors Client
279 280 281 282 283 283 283 283
H.2 H.2.1 H.2.2 H.2.3
Site(s) handing-over Site(s) handing-over meeting(s) Handing-over report(s) preparation and signature Commencement of the project period
286 286 286 287
H.3
Mobilisation
287
Chapter I Project construction
289
I.1 I.1.1 I.1.2
289 290 292
Project period Initial stage of the project period Construction stage of the project period
I.2 Construction of temporary buildings, plants, networks and facilities I.2.1 Construction of temporary access roads I.2.2 Preparation of sites, camps, plant and establishments areas I.2.3 Project infrastructure, facilities, networks & establishments I.2.3.1 Construction sites’ facilities and services I.2.3.1.1 First aid, clinic I.2.3.1.1.1 Clinic I.2.3.1.1.2 Consultation procedure I.2.3.1.1.3 Medical supplies’ procurement I.2.3.1.1.4 Hospital visit reports I.2.3.1.1.5 Clinic expenses I.2.3.1.1.6 Medical data, information I.2.3.1.1.7 Medical reports I.2.3.1.2 Workers’ accommodation I.2.3.1.3 Messing facilities I.2.3.1.3.1 Rooms for preparation, treatment and processing of food I.2.3.1.3.2 Food waste I.2.3.1.3.3 Personal hygiene I.2.3.1.3.4 Food temperature control I.2.3.1.3.5 Users of the mess I.2.3.1.3.6 Inspections of mess hygiene I.2.3.1.4 Workplaces I.2.3.1.5 Offices I.2.3.1.6 Communication networks I.2.3.1.7 Water supply networks I.2.3.1.8 Wastewater networks I.2.3.1.9 Stormwater discharge network
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293 293 294 294 294 295 296 296 297 298 298 299 299 301 302 303 304 304 304 304 305 305 307 308 311 312 314
I.2.3.1.10 Electric power network I.2.3.1.11 Recreational facilities I.2.3.1.12 Parking areas I.2.3.1.13 Muster points I.2.3.1.14 Project workshops I.2.3.1.14.1 Carpentry workshop I.2.3.1.14.2 Electrical workshop I.2.3.1.14.3 Plant maintenance and repairs workshops I.2.3.1.14.4 Precast yard(s) I.2.3.1.14.5 Steel reinforcement yard I.2.3.1.14.6 Welding workshop I.2.3.1.15 Project storage and warehousing I.2.3.1.15.1 Materials storage & warehousing I.2.3.1.15.2 Plant department storage facilities I.2.3.1.16 Project quality control laboratories I.2.4 Production plant establishments I.2.4.1 Concrete batch plant I.2.4.2 Asphalt plant I.2.4.3 Crushers I.2.5 Quarries & borrow pits
315 317 318 320 321 321 323 325 327 328 330 334 334 335 336 338 340 342 343 345
I.3 Construction of permanent works I.3.1 Construction start-up I.3.2 Construction management I.3.2.1 Construction processes & routines I.3.2.2 Construction management plan I.3.2.3 Construction procedures I.3.2.4 Construction method statements I.3.2.4.1 Sample construction method statement I.3.2.5 Construction planning & control I.3.2.6 Construction implementation I.3.2.6.1 Construction training & testing I.3.2.6.2 Construction daily routines I.3.2.6.3 Construction works inspection & measurement I.3.2.6.4 Construction control indices I.3.2.6.5 Construction daily reporting
349 349 352 354 355 356 359 359 369 370 370 377 381 382 383
I.4 Project technical & controls management I.4.1 Project progress meetings, reports I.4.1.1 Project daily progress meetings I.4.1.1.1 Project daily progress reports I.4.1.2 Project weekly progress meetings I.4.1.2.1 Department weekly progress meeting I.4.1.2.2 Project weekly progress meeting I.4.1.2.2.1 Project weekly report I.4.1.3 Project monthly progress meetings I.4.1.3.1 Project monthly report I.4.1.4 Management review meetings I.4.1.4.1 Management review report
384 384 385 386 388 389 389 390 392 396 397 398
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I.5 Project quality management I.5.1 Quality plans I.5.2 Construction quality procedures I.5.3 Construction quality control documentation I.5.3.1 Inspection & test plans I.5.3.2 Quality control records I.5.3.2.1 Request for inspection I.5.3.2.2 Inspection checklists I.5.3.2.3 Inspection records I.5.4 Quality control testing I.5.4.1 Civil materials & works testing I.5.4.2 Electrical, instrumentation & telecommunications testing I.5.4.3 Mechanical works testing I.5.5 Quality training plans I.5.6 Quality audit plans I.5.6.1 Internal audits I.5.6.2 External audits I.5.7 Non-conformity reports I.5.8 Quality department’s meetings I.5.8.1 Weekly quality reports I.5.8.2 Monthly quality management report I.5.9 Project quality performance indicators
399 400 400 401 401 402 402 403 403 404 404 406 410 413 414 415 415 416 417 419 419 421
I.6 Project HSE management I.6.1 Project environmental management I.6.1.1 Environmental aspects, impacts assessment I.6.1.2 Identifying environmental aspects I.6.1.3 Understanding environmental impacts I.6.1.4 Determining significant environmental aspects I.6.1.5 Handling of the environmental aspects I.6.1.6 Review of the environmental aspects I.6.2 Project waste management plans I.6.3 Project contamination contingency plans I.6.3.1 Developing contamination contingency plans I.6.3.2 Contingency planning work instructions I.6.3.2.1 Contingency planning - risk assessments I.6.3.2.2 Contingency planning - operational process I.6.3.2.3 Contingency planning - information directory I.6.4 Project occupational health & safety management I.6.4.1 Project OH&S hazards, risk assessments, risk controls I.6.4.1.1 Planning of an OH&S risk assessment I.6.4.1.2 OH&S risk assessment procedure I.6.4.1.2.1 OH&S hazard identification I.6.4.1.2.2 OH&S risk determination I.6.4.1.2.2.1 Severity of an OH&S harm I.6.4.1.2.2.2 Likelihood of an OH&S harm I.6.4.1.2.3 OH&S risk rating I.6.4.1.2.4 OH&S objectives, risk control measures and documents I.6.4.1.3 OH&S risk assessments approval I.6.4.1.4 OH&S risk assessment review
424 425 426 427 429 429 430 431 432 433 433 434 435 435 436 437 438 438 439 440 440 440 441 441 442 443 443
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I.6.5 I.6.6 I.6.6.1 I.6.6.2 I.6.6.3 I.6.6.3.1 I.6.6.3.2 I.6.7 I.6.7.1 I.6.7.2 I.6.7.3 I.6.7.4 I.6.7.5 I.6.7.5.1 I.6.7.5.2 I.6.7.5.3 I.6.8 I.7 I.7.1 I.7.2 I.7.3 I.7.4 I.7.5
Project HSE plan Project HSE management planning Project OH&S programs Project HSE training plans Project HSE auditing plans Project HSE internal auditing plan Project HSE external auditing plan Project HSE reporting Reporting a project accident Reporting project incidents Project unsafe acts, unsafe conditions Project accident, incident investigation Project accident, incident reports Lost time injury frequency rate Accident rate Lost time mean duration Project HSE performance indicators
Project emergencies Construction phase emergencies Project emergency plans Project evacuation plans Project emergency response team Project emergency cost codes
444 444 444 445 446 447 447 447 448 450 450 450 451 452 452 452 452 453 453 454 457 458 459
Chapter J Pre-commissioning & mechanical completion
460
J.1
Pre-commissioning & mechanical completion plan
460
J.2
Systems/subsystems selection procedure
468
Chapter K Project completion & handing over
474
K.1
Construction & pre-commissioning punch list items clearing
474
K.2
Project documentation handing-over
475
K.3
Connections with domestic utilities and transportation systems
476
K.4
Temporary facilities areas restoration
478
K.5
Waste disposal areas handing-over
479
K.6
Borrow pits & quarries’ reinstatement
479
K.7
Demobilisation
480
K.8
Closing-out report
481
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K.9
Maintenance period
490
K.10
Final handing over
491
K.11
Project thesaurus
492
In practice - foot notes
493
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Foreword
“Πάντων χρηµάτων µέτρον έστιν άνθρωπος, των µεν όντων ως έστιν, των δε ουκ όντων ως ουκ εστίν” Πρωταγόρας ο Αβδηρίτης 490 Π.Χ. – 420 Π.Χ.
“Human is the measure of all things, of the things that are that they are and of the things that are not that they are not” Protagoras of Abdera 490 B.C. – 420 B.C.
Should7 professional experience be of assistance to colleagues in the construction industry then the effort to produce this document is justified. The construction industry professionals offer services around the world in the production of all types of construction projects. We have the privilege8 to live and work in different countries, associate with thousands of human beings of various origins and obtain knowledge on our way of working, thinking and living. Valuable lifetime is spent in construction sites in the middle of nowhere. Experience is useful, if shared. In this respect, this document aims to offer information that may be of interest to professionals in the construction industry. This document is split in two parts. Part I – In theory9 •
•
•
Proposes links to and quotes of a collection of freely and publicly available information that anyone may obtain from official internet sites of individuals, organizations or institutions, provided that the required copyright is fully respected. Proposes legal, regulatory, social, ethical, quality, environmental and occupational health & safety requirements of an organization or a project in the construction industry. Proposes lists of management systems’ documents.
Part II – In practice (this part) • •
•
7 8 9
Proposes management systems’ documents. Proposes organization and management processes to construction organizations and projects from tender stage to final handing over on a systematic approach. Proposes course of action at all stages of a project. Constantine Petrou Cavafy “Thermopylae” http://www.cavafy.com/poems/content.asp?id=69&cat=1 Copyrights Constantine Petrou Cavafy “Ithaca” http://www.cavafy.com/poems/content.asp?id=350&cat=1 Copyrights https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory Page 15 of 495
Introduction General construction is the construction of entire dwellings, office buildings, stores and other public and utility buildings, farm buildings etc., or the construction of civil engineering works such as motorways, streets, bridges, tunnels, railways, airfields, harbours and other water projects, irrigation systems, sewerage systems, industrial facilities, pipelines and electric lines, sports facilities etc.10 Construction is one of the most important productive sectors in the world and one of the main driving forces of economic development. The construction sector is one of Europe's biggest industries, representing some 10% of GDP and 50.5% of Gross fixed Capital formation. It employs more than 12 million EU citizens and it is estimated that 26 million workers in the European Union depend in one way or another, on the construction sector.11 The construction industry is a high risk, high investment and low profit, intense, hazardous, tempting and demanding industry. The construction products add high social value and have significant environmental impact. The construction industry employs millions of workers worldwide. Thousands of them will be killed or injured, every year, because of accidents at the workplace. A project is a means to an end. Colleagues, fellow workers, might never meet again after its completion. Management for the construction industry is a complicated process not easy to standardize. Standard use of business, project improvement processes, techniques and tools (such as PDCA12, DMAIC or DMADV13) is advisable. 10
11
12
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United Nations Statistics Division “ISIC Rev. 4 (International Standard Industrial Classification of All Economic Activities, Rev.4)” https://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=27 Copyright © United Nations 2017 European Committee for Standardization (CEN) “Construction” https://www.cen.eu/work/areas/construction/Pages/default.aspx © 2017 CEN All rights reserved Wikipedia “W. Edwards Deming“ https://en.wikipedia.org/wiki/W._Edwards_Deming PDCA https://en.wikipedia.org/wiki/PDCA Privacy policy Wikipedia Page 16 of 495
A top priority task of the management of a Construction Industry Organization (CIO) should be to cascade knowledge and enforce respect and abidance with regards to all the ethical, social, labour, project, quality, environmental and occupational health & safety requirements of the applicable legislation, as well as, the contract agreements of its projects and the organization’s management systems; considering all applicable aspects to the last detail as well as the adequacy, the health & safety and the well-being of all employees, the protection of the environment, its social responsibility and the health & safety of the public and the interested parties involved in its operations. At all organization and projects’ levels good practice would be to ensure that all staff receives appropriate -applicable to their position- meticulous and effective training on: • • • • • • • • • • • • • • • • • • • • •
Organization’s code of ethics, Organization’s code of conduct, Organization’s policies, Organization’s management systems, Customer satisfaction, Legal requirements, Contractual requirements, Social responsibility, OH&S hazards and risks, Environmental aspects and impacts, Quality objectives, Risk management, Codes & standards, Constructability methods and practices, Productivity norms, Cost effective methods, Budget objectives, Schedule milestones, Cost control, Profitability, Quantitative reporting and follow-up.
An enormous amount of publications, in all types of media, is available worldwide that offer analysis, guidance, education, information and knowledge on all different elements of the construction industry, a true thesaurus of infinite value. In this respect, the current publication should be considered as an introductory approach or a very limited yet structured, practical, browsing index, guide, only. It is advisable that the construction professionals master all aspects of their required qualifications, research, select their preferred sources of knowledge, develop, and “Six Sigma” https://en.wikipedia.org/wiki/Six_Sigma Terms of Use Privacy policy Page 17 of 495
maintain their own practical guide, based on their experience gained during the course of their professional lives. Extensive documentation is produced during the course of a project that forms part of the organization’s experience thesaurus. It should be archived properly, in the organization’s library, and treated as an asset of high value. Introductory legal and normative reference is made. Disclaimer This document has not been subject to an endorsement process by any national or international organization or any institution or any governmental, academic, public or private entity or any society or group of people or any individual. Reference is made to all sources of information obtained from third parties. It is common understanding that any reproduction of intellectual property or information, even if it is publicly available in a website or any other communication / publication means, should have the permission if / or as required by the copyright “terms and conditions” of each website owner and/or the property/information owner. In this respect, a “request for approval” has been sent to all organizations that have been researched herein with the relevant text, selected and copied from their websites, attached. Permission, to reproduce limited introductory information only, freely and publicly available in their official websites, for the purpose of / as used in this document only, has been obtained from all referenced organizations and appropriate credits have been noted as footnotes at the relevant parts of this document. Any reproduction, distribution, marketing, copying, duplication, transfer, alteration or transformation of such information, incorporated in the present document, total or partial, free of charge or for consideration, without prior, explicit authorisation in writing from the corresponding “copyright owner”, is strictly prohibited. When the organizations’ websites are updated, the relevant information contained herein will require updating too. The writer, namely Dimitrios N. Dounas, Civil Engineer NTUA, does not take responsibility for any errors, omissions, copyright or any other, of whatsoever nature, liabilities that may arise from the provision or subsequent use of any information, contained herein. The writer disclaims any and all responsibility for the application or consequences of any information appearing within this document. For any questions, comments, requests, requirements, queries, remarks, proposals
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etc. related to the present document, please contact the writer at the email address dimitrios.n.dounas@gmail.com. Note: When a link does not open from this document, please copy the link to your browser.
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In practice - head notes14 •
Human rights and fundamental freedoms15 should be respected.
•
Life16 preservation is teleological17.
•
People are not -and should not be treated as- statistics18 or numbers.
•
•
•
14 15
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19
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Over 6,300 people die each day from work-related accidents or diseases - that is nearly 2.3 million every year19. Health and safety incidents shatter lives20. An estimated 12.6 million people died as a result of living or working in an unhealthy environment in 2012 -nearly 1 in 4 of total global deaths, according to new estimates from the World Health Organization21.
These “head notes” outline a personal perspective only United Nations (UN) “Universal Declaration of Human Rights” http://www.un.org/en/universal-declaration-human-rights/index.html Copyright National Center for Biotechnology Information, U.S. National Library of Medicine Astrobiology Steven A. Benner “Defining Life” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3005285/ Policies and Guidelines Encyclopædia Britannica “Teleology” https://www.britannica.com/topic/teleology ©2017 Encyclopædia Britannica, Inc. The Construction Industry Training Board (CITB) “Don't Become a Statistic” https://shop.citb.co.uk/DVD069.aspx © The Construction Industry Training Board 2014 International Labour Organization (ILO) “Safety and health at work” http://www.ilo.org/global/topics/safety-and-health-at-work/lang--en/index.htm © 1996-2017 International Labour Organization The Construction Industry Training Board “Shattered Lives” https://shop.citb.co.uk/DVD070.aspx © The Construction Industry Training Board 2014 World Health Organization (WHO) “Deaths attributable to unhealthy environments” http://www.who.int/mediacentre/news/releases/2016/deaths-attributable-tounhealthy-environments/en/ © WHO 2016 Page 20 of 495
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The environment should be protected22 by all means and without fail or the future generations will inherit no place to live on this planet. The construction industry organizations (whatever their job description might be) should not spare any effort or means to prevent accidents, incidents or ill health of their workers and the public and protect the environment.
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Construction is an opposite of destruction, isn’t it?
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Companies depend on: State(s) they operate in Society(ies) Clients Dedicated shareholders Competent management Qualified personnel Healthy, safe & secure workplaces Appropriate organizational structure and systems Successful operations Advanced technology Secure communications Assured information Calculated risk management Rational financing Trustful joint ventures’ partners Reliable suppliers Productive subcontractors
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Companies should promote professional ethics23, establish and implement antibribery management systems24 and eliminate corruption25. They may define United Nations Framework Convention on Climate Change UN Climate Change Newsroom http://newsroom.unfccc.int/ American Society of Civil Engineers (ASCE) “Code of Ethics” http://www.asce.org/code-of-ethics/ Copyright © 1996 - 2017, American Society of Civil Engineers International Organization for Standardization (ISO) “ISO 37001:2016 Anti-bribery management systems - Requirements with guidance for use” https://www.iso.org/obp/ui/#iso:std:iso:37001:ed-1:v1:en © All Rights Reserved. American Society of Civil Engineers (ASCE) “Policy statement 510 - Combating corruption” http://www.asce.org/issues-and-advocacy/public-policy/policy-statement-510--combating-corruption/ Copyright © 1996 - 2016, American Society of Civil Engineers Page 21 of 495
their ethical approach in terms of a number of discrete components, such as: Accountability Confidentiality Dedication Honesty Integrity Loyalty Modesty Obedience to the law Objectivity Respectfulness Transparency •
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Companies should abide by the policies and principles of their clients’ codes of conduct. Management commitment to establish, implement, promote and abide with management systems26 is one way road to company survival, improvement and success. Management system(s) should promote mastering of and respect to applicable legislation, statutory, regulatory, contractual requirements and industry codes, standards and specification Management systems produced for certification purposes only are useless
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The Plan-Do-Check-Act27 approach should build an Archimedean spiral of continuous improvement of association, methods, processes, services and products.
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Innovation should expand the spiral.
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Delivery of services to contracted standards costs the least possible.
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Standardization is a strategic instrument for economic success.
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Effective business related risk management28 requires, at all levels: International Organization for Standardization (ISO) “Management system standards “ https://www.iso.org/management-system-standards.html © All Rights Reserved. The W. Edwards Deming Institute® “PDSA cycle” https://deming.org/management-system/pdsacycle All Contents Copyright © 2016 The W. Edwards Deming Institute® International Organization for Standardization (ISO) “ISO 31000:2009 Risk management - Principles and guidelines” https://www.iso.org/obp/ui/#iso:std:iso:31000:ed-1:v1:en Copyright © 2009 ISO Page 22 of 495
Owners/shareholders dedication Code of ethics Obedience to the law Respect of the rules & regulations Compliance with codes & standards Compliance with contractual obligations Compliance with quality requirements Compliance with environmental protection requirements Compliance with occupational health & safety requirements Accredited management systems Sound management Solid finances Minimal debt Minimal exposure to markets Moderate and conscious financial management Well-organized operational management Professional project management Efficient market research Appropriate, case oriented, tailor-made, complete insurance policies Balanced contracts Fair employment & rewards system Team work Appropriate training Awareness Use of approved work methods Use of appropriate resources Use of applicable productivity norms Use of appropriate -cutting edge- and secure -to the extreme- information and communications technology Lessons learned approach Precise monitoring and reporting Meticulous review of the facts Continuous risks’ analysis and effective risk management system Continuous search for solutions Decent physical and mental condition, at all times, for sound decision-making •
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The construction industry offers valuable services to the people everywhere and at all times. The construction sites, being highly hazardous workplaces, are not (in my opinion) educational institutions even though prevailing legislation in many countries transfers the vocational training responsibility from the state to the construction companies. The construction sites are just the right place for an educated and licensed professional to learn his/her job, work, perform and advance. It has been proven to be extremely difficult to train construction personnel to follow management systems if they have spent a lifetime working without any
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previous education, training or experience beyond their profession. •
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Protocols, systems, policies, guidelines, production requirements, performance indicators and productivity norms adopted by the company, presented to and accepted by the employees in their contract agreement, should be the only quantitative and objective criteria for personnel evaluation. It takes: Deep professional knowledge High mental capacity Respect to codes of ethics Obedience to applicable legislation Ownership of principles and values Resistance to temptations Character, as living and working conditions are hard Forgiveness for those in fault to act proficiently, without exceptions, at all instances.
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Chapter A The construction industry organization The operations of a private company of limited liability (limited company29) that operates as a general international contractor will be considered as a practical example. Processes, procedures, course of action and required documentation at each stage of a project, from tender stage to final handing over, will be proposed. A.1
Legal profile
A construction industry organization (CIO) is established as specified by the laws of the country of origin. The company operates in compliance with and according to the requirements of the laws of the country of origin and the countries of operations. Legal advice, from qualified and licensed expert consultants, is essential for any construction industry organization. Thorough knowledge of applicable legislation, related to their job description is essential for all personnel. The company is responsible to ensure that such knowledge becomes the property of all its employees. References (indicative list) •
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29
Government UK “Companies House” https://www.gov.uk/government/organizations/companies-house © Crown copyright Legislation Government UK “Companies“ http://www.legislation.gov.uk/all?title=companies © Crown copyright Legislation Government UK “Construction” http://www.legislation.gov.uk/all?title=Construction © Crown copyright European Union European Commission “EU company law” http://ec.europa.eu/justice/civil/company-law/eu-company-law/index_en.htm Wikipedia “Limited company” https://en.wikipedia.org/wiki/Limited_company Terms of Use Privacy policy Page 25 of 495
© European Union, 1995-2017 A.2
Commercial profile
A.2.1
Branches of engineering
There is a wide spectrum of engineering disciplines and sub-disciplines. The most common engineering disciplines in the construction industry may be indicated as follows (alphabetical order): • • • • • • • • • • • • • • • • • •
Architectural Chemical Civil Electrical Electronics Geodetical Geotechnical Hydraulics Information Instrumentation Landscape Marine Materials Mechanical Process Surveying Telecommunications Transportation
References (indicative list) •
•
•
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International Organization for Standardization (ISO) “ICS 25: Manufacturing engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=25 © All Rights Reserved International Organization for Standardization (ISO) “ICS 27: Energy and heat transfer engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=27 © All Rights Reserved International Organization for Standardization (ISO) “ICS 29: Electrical engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=29 © All Rights Reserved International Organization for Standardization (ISO) “ICS 31: Electronics” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC
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S1=31 © All Rights Reserved International Organization for Standardization (ISO) “ICS 33: Telecommunications. Audio and video engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=33 © All Rights Reserved International Organization for Standardization (ISO) “ICS 43: Road vehicles engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=43 © All Rights Reserved International Organization for Standardization (ISO) “ICS 45: Railway engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=45 © All Rights Reserved International Organization for Standardization (ISO) “ICS 47.020: Shipbuilding and marine structures in general” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=47&ICS2=20 © All Rights Reserved International Organization for Standardization (ISO) “ICS 93: Civil engineering” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=93 © All Rights Reserved Institution of Civil Engineers (ICE) “Knowledge and resources” https://www.ice.org.uk/knowledge-and-resources Copyright © The Institution of Civil Engineers 2017. All rights reserved. Institution of Mechanical Engineers (IMechE) “Industry sectors” http://www.imeche.org/industry-sectors © 2016 Institution of Mechanical Engineers. Institute of Electrical and Electronics Engineers (IEEE) “IEEE Societies” http://www.ieee.org/membership_services/membership/societies/index.html?ut m_source=mm_link&utm_campaign=lai&utm_medium=com&utm_term=societie s © Copyright 2017 IEEE – All rights reserved. Use of this website signifies your agreement to the IEEE Terms and Conditions. Institution of Chemical Engineers (IChemE) http://www.icheme.org/ © 2017 Institution of Chemical Engineers.
A.2.2
Construction engineering consultants
An individual engineering consultant, or an engineering consulting company, offers services to its clients in the construction industry as designers, project managers,
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construction managers, contract administrators, construction superintendents, auditors, materials’ specialists, QA/QC advisors/specialists, HSE advisors etc. The owner of a construction project may require the services of specialized consulting engineers at all phases of the project from the conceptual stage to the design, construction, commissioning, operation and final handing over. References (indicative list) •
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International Federation of Consulting Engineers (FIDIC) “Professional risks and responsibility” http://fidic.org/node/759 Copyright International Federation of Consulting Engineers (FIDIC) “What is an Engineer?“ http://fidic.org/node/5504 Copyright International Federation of Consulting Engineers (FIDIC) “The Consulting Engineer in Turnkey Project” http://fidic.org/node/758 Copyright International Federation of Consulting Engineers (FIDIC) “FIDIC Guide to Practice, The Business of a Professional Services Firm -2015 Edition” http://fidic.org/books/fidic-guide-practice-business-professional-services-firm2015-edition Copyright International Federation of Consulting Engineers (FIDIC) “Client/Consultant Model Services Agreement 4th Ed (2006 White Book)” http://fidic.org/books/clientconsultant-model-services-agreement-4th-ed-2006white-book Copyright International Federation of Consulting Engineers (FIDIC) “Selection of Consultant 2nd Ed (2013)” http://fidic.org/books/selection-consultant-2nd-ed-2013 Copyright International Federation of Consulting Engineers (FIDIC) FIDIC “Quality Based Selection (QBS) Guidelines (2011)” http://fidic.org/books/quality-based-selection-qbs-guidelines-2011 Copyright International Federation of Consulting Engineers (FIDIC) FIDIC publications dedicated to Integrity Management http://fidic.org/node/748 Copyright Integrity Management System (FIMS) Guidelines 1st Ed (2011) Part 1 Policies and principles: describes the FIDIC Integrity Management System (FIMS) http://fidic.org/books/integrity-management-system-fims-guidelines-1st-ed2011-part1 FIDIC Business Integrity Management System (BIMS) Training Manual 1st
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Ed (2002) http://fidic.org/books/business-integrity-management-system-bims-trainingmanual-1st-ed-2002 Business Integrity Management System (BIMS) Guidelines Test Ed (2001) describes the FIDIC Business Integrity Management System (BIMS). Electronic version in PDF http://fidic.org/books/business-integrity-management-system-bimsguidelines-test-ed-2001 Client/Consultant Model Services Agreement 4th Ed (2006 White Book) http://fidic.org/books/clientconsultant-model-services-agreement-4th-ed2006-white-book Government Procurement Integrity Management System (GPIMS) Guidelines Draft Ed (2006), Electronic version in PDF http://fidic.org/books/government-procurement-integrity-managementsystem-gpims-guidelines-draft-ed-2006 Quality and Integrity Management Collection http://fidic.org/books/quality-and-integrity-management-collection ISO 9001:2000 Quality Management Interpretive Guide 1st Ed (2001) http://fidic.org/books/iso-90012000-quality-management-interpretive-guide1st-ed-2001 Quality Based Selection (QBS) Guidelines (2011) http://fidic.org/books/quality-based-selection-qbs-guidelines-2011 A.2.3
Construction engineering contractors
An individual construction-engineering contractor, or a construction company, operates as the main contractor, subcontractor or member in a joint venture for the production of a project in the construction industry. References (indicative list) •
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International Federation of Consulting Engineers (FIDIC) “Contracts (1999 editions) Guide 1st Ed (2000)” http://fidic.org/books/fidic-contracts-1999-editions-guide-1st-ed-2000 Copyright International Federation of Consulting Engineers (FIDIC) “Construction (1999 Red Book) Subcontract 1st Ed (2011)” http://fidic.org/books/construction-1999-red-book-subcontract-1st-ed-2011 Copyright International Federation of Consulting Engineers (FIDIC) “EIC Contractors Guide to the FIDIC Construction Contract (1999 Red Book) 2001” http://fidic.org/books/eic-contractors-guide-fidic-construction-contract-1999-redbook-2001 Copyright International Federation of Consulting Engineers (FIDIC) “Plant and Design-Build Contract 1st Ed (1999 Yellow Book)” http://fidic.org/books/plant-and-design-build-contract-1st-ed-1999-yellow-book Copyright International Federation of Consulting Engineers (FIDIC)
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A.3
“EIC Contractors Guide to the FIDIC Plant Contract (1999 Yellow Book) 2003” http://fidic.org/books/eic-contractors-guide-fidic-plant-contract-1999-yellowbook-2003 Copyright International Federation of Consulting Engineers (FIDIC) “EPC/Turnkey Contract 1st Ed (1999 Silver Book)” http://fidic.org/books/epcturnkey-contract-1st-ed-1999-silver-book Copyright International Federation of Consulting Engineers (FIDIC) “EIC Contractors Guide to the FIDIC EPC/Turnkey Contract (1999 Silver Book) 2nd Ed 2003” http://fidic.org/books/eic-contractors-guide-fidic-epcturnkey-contract-1999-silverbook-2nd-ed-2003 Copyright International Federation of Consulting Engineers (FIDIC) “Short Form of Contract 1st Ed (1999 Green Book)” http://fidic.org/books/short-form-contract-1st-ed-1999-green-book Copyright International Federation of Consulting Engineers (FIDIC) “Procurement Procedures Guide 1st Ed (2011)” http://fidic.org/books/fidic-procurement-procedures-guide-1st-ed-2011 Copyright International Federation of Consulting Engineers (FIDIC) Compilation of all FIDIC collections http://fidic.org/books/compilation-all-collections-english-electronic-version Copyright Institution of Chemical Engineers (IChemE) “The contracts“ http://www.icheme.org/resources/forms_of_contract/the%20contracts.aspx © 2017 Institution of Chemical Engineers. Corporate finance
The construction industry is a high risk, high investment and low profit, intense, hazardous, tempting and demanding industry. In this respect, professional, conscious and moderate handling of corporate finance is essential for any construction industry organization’s survival. The shareholders, the executive directors, the managers and each task owner should be able to make sound financial decisions based on objective evidence -numbers not statistics. References (indicative list) •
International Organization for Standardization (ISO) “ISO/TC 251 - Asset management” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=604321 © All Rights Reserved
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•
Ivo Welch “Corporate Finance, 3rd Edition, 2014” http://book.ivo-welch.info/ed3/ Copyright Ivo Welch, 2014. All rights reserved. Use Condition: All material on this website is copyrighted. Access is permitted and free to users who adhere to all conditions here and on the book purchase page.
A.3.1
Financial management system
A financial management system might be defined as a practice that an organization has developed, established, certified, secured and uses in order to plan, monitor, check and control its income, expenses, debt and assets with the objectives of optimising costs, controlling debt, investing & sharing profits and ensuring business sustainability. This package should consist of, contain or use: • • • • • • • • •
Advanced hardware and specialised software Analytical processes Audit & control systems Authorisation procedures Communication & information systems Controlled usage Security protocols Standard accounting systems Standard methodology
It is highly important to establish a proper financial management system with simple input and output data, easy to understand, control, secure, use and benefit from it. A tailor-made, state of the art, simple, detailed and functioning financial management system based on the company’s scope of services, international standards and the prevailing legislation and regulations, is essential for any company’s success. The system should deal meticulously with all the various aspects and standardize all processes, means and methods of the company financial management operations. The system output reporting should answer simple questions, like: • • • • • • • • • •
Are the expenses controlled and fully substantiated? Are the company finances sustainable? Can the company pay the bills? How does the company control assets & liabilities? How does the company control income & expenses? How will the company deal with business risks? Is the company profitable? For how long can the company sustain losses? Is the financial data system protected? Is the income collection system successful?
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• • • • • • •
What international standards is the accounting system of the company built on and functioning under? What is the current value of the company? What is the debt of the company? What is the exposure of the company to the markets? What is the limit of annual losses? Who finances the company? Who makes money for the company? Who spends the money for the company?
Simple questions demand simple answers. A typical financial management system may contain: • • • • • • • •
A manual Procedures Work instructions Protocols Records Reports Hardware Software
The topics (indicative list - titles only) that the financial management system may address are: •
Financial resources Organization Authorisations Personnel Offices Computer systems (hardware & software) Accounting Controls Planning Risks Reports Intranet(s) Communications
•
Financial planning Corporate budget Corporate finance Cash (money) flow Debt Financial instruments Markets Projects
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Contingency plans Risk management plans •
Financial monitoring Accounts Balance sheet accounts Profit & loss accounts Special accounts
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Financial position Assets Cash (money) flow Contracts Debt Finances Insurances Invoices Authorities Clients Banks Claims Compensations Consultants Designers Interested parties Legal Payroll Service providers Subcontractors Suppliers Taxes, levies & fees Legal Liabilities Receivables Stock markets Taxes & levies Materials stores Plant
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Financial costing Cost centres Cost control Cost reports
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Financial controls Internal audits
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External audits •
Management review Projects Countries Regions Company
References (indicative list) •
•
European Union European Commission Eurostat “European system of accounts (ESA 2010)” http://ec.europa.eu/eurostat/cache/metadata/Annexes/nasa_10_f_esms_an1.pd f © European Union, 2013 Reproduction is authorised provided the source is acknowledged. United Nations “System of National Accounts 2008” https://unstats.un.org/unsd/nationalaccount/docs/SNA2008.pdf Copyright © 2009 European Communities, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations and World Bank All rights reserved
A.3.2
Corporate budget
Money-related decisions are essential daily routine exercises incorporated in any managerial job description of any construction industry organization. All executives, at all levels, professions and roles, should receive a, step by step, methodical vocational training on corporate finance, financial management, budgets and accounting either internally or externally and master all aspects related to their job. All task owners should be able to translate work progress elements (costs, productivity, inspections, approvals, rejections, schedule, etc.) to money (income or expenses, loss or profit). A corporate budget might serve as the most important tool for all company shareholders, financiers, executives, task owners and other interested parties. It may be considered as an internal contract between all parties that will picture -in descriptions and money figures- the commitment of those authorised to make decisions to keep the company finances in order.
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A complete and detailed company budget is proposed to be prepared yearly. It shall incorporate the budgets of the: • • •
•
Company head office(s) Regional head office(s) Country(ies) of operations Head office, and Projects (other than mega or major projects) Mega or major projects
The budget will be produced, reviewed, checked, authorised and published as specified in the company’s financial management system documents. It should be based on past company experience and will detail projected income and expenses for the year to come. The budget will be compiled and authorised by the executive committee. The chief executive officer and the chief financial officer will present the results of the previous year’s budget and the projections of the current proposed budget to the board of directors in a specific date of every year, together with the yearly reports of all units. The discipline directors, the country managers and the project managers will be available to answer questions related to their units, as required. The budget will not be revised. The budget will be controlled and checked monthly by each unit. The budget control findings/results will be reported monthly and discussed at all levels during the progress meetings. Any deviations will result to pre-defined systematic corrective action. Income shortcomings should result to proportional postponement or cancellation of projected expenses, so that the budget remains balanced, if possible at all. This way, authorised signatories might make more careful, money-spending, decisions. Budget control results and projections will be published quarterly. Please refer also to chapter “A.7.2.3 Management review meetings”. A.4
Human resources
The organization of the company depends on the size and its scope of services.
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A proposed organization scheme for an international construction company is outlined herewith. Some of the positions may not be required or other additional positions of authorised personnel may be required. Reference •
International Organization for Standardization (ISO) “ISO/TC 260 - Human resource management” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=628737 © All Rights Reserved
A.4.1
Shareholders
A shareholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Reference •
Wikipedia “Shareholder” https://en.wikipedia.org/wiki/Shareholder Privacy policy
A.4.2
Board of directors
A board of directors is the board of elected or appointed members who jointly oversee the activities of the company. The members of the board of directors are elected or appointed and operate as specified in the bylaws or the articles of association of the company. Typically, the board chooses one of its members to be the chair. Members of the board operate as executive or non-executive directors. Reference •
A.4.3
Wikipedia “Board of directors” https://en.wikipedia.org/wiki/Board_of_directors Privacy policy Executive committee
International construction industry organizations may also maintain a smaller board, called an executive committee, to handle its business.
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The executive committee can only be established through a specific provision in the charter or bylaws of the entity. However formed, the executive committee only has such powers and authority that the governing documents of the organization give it. In some cases, it may be empowered to act on behalf of the board or the organization, while in others it may only be able to make recommendations. The executive committee will meet as required. Proposed members30: • • • • • • • •
Chief executive officer Chief financial officer Director(s) buildings & civil Director(s) mechanical, electrical & instrumentation Director(s) commercial, technical & controls Director plant Director quality Director(s) environmental and occupational health & safety
All the members of the executive committee should have engineering university education -with the common, but not recommended, exception of the chief financial officer-, construction and management experience and a proven record of accomplishments. The chief executive officer is proposed by the chair of the board of directors and elected, appointed and authorised by the board of directors. All other members of the executive committee are recommended by the chief executive officer and elected, appointed and authorised by the board of directors. The performance -based on objective criteria & evidence- of all the members of the executive committee is evaluated and their status is confirmed yearly or as it may be required in special cases (legal prosecution, mental disability, ethical abuse, client’s rejection, negative attitude, disastrous financial outcome, etc.) by the board of directors. Reference •
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Wikipedia “Committee” https://en.wikipedia.org/wiki/Committee#Executive_committee Privacy policy Depending on the scope and the magnitude of services of the company, the size and the complexity of the projects, the titles/positions/authorisations could be split or combined accordingly. Page 37 of 495
A.4.4
Organizational structures
The company management should select its own systems, processes and methods of distributing and sharing command, authorities and responsibilities in a manner that serves best its interests. The company should also select the services it will run internally and the services that will be sublet to approved service providers/subcontractors. That decision alone may result to populous or minimal organizational structures. A.4.4.1
Head offices
The company main head office serves usually as the administrative centre of the company while any country head office functions as an operational one. The chief executive officer will propose and the board of directors will approve the organization of the company’s head office. Depending on the magnitude and the significance of the projects and the extend of services each country head office should provide, the company executive committee approves the organizational structure of the country’s head office that is proposed by the country manager. A basic company’s head office organizational structure is delineated herewith. Management • • •
Board of directors Chief executive officer Executive committee Secretariat
Administration • •
•
Management Human resources Contracts Entertainment Health care Recruitment Training Travel Visas Work permits Establishments Camps Housing Offices
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Stores Emergencies Domestic International Regional Global Legal Domestic International Regional Global Public relations Authorities Clients Interested parties Public Security Domestic International Regional Global
Financial •
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• • • • • •
Financial management Resources Plans Procedures Protocols Work instructions Systems Accounts Balance sheet accounts Profit & loss accounts Special accounts Invoices Authorities Clients Banks Interested parties Legal Payroll Subcontractors Suppliers Assets Auditing Cash (money) flow Debt Contracts Financing
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• • • • •
Insurances Legal Liabilities Stock markets Taxes, levies & fees
Construction • • • •
•
•
Management Resources Systems Documentation Plans Procedures Work instructions Method statements Records Reports Disciplines Buildings Civil Electrical Energy Information Instrumentation Mechanical Processing Telecommunications Projects Sites Precast units Production units Quarries, borrow-pits Workshops Logistics Stores Technical support Training
Commercial, technical & controls • •
•
Management Commercial Marketing Tenders, estimating Reports Technical Design Procurement (materials, plant & equipment) Planning & scheduling
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Quantity surveying Telecommunications Information technology (IT) Innovation Reports Controls Audits Budget Construction Cost Design Planning & scheduling Procurement Reporting
Quality, environmental, occupational health & safety • • • • • • • • • • •
•
•
Management Applicable legislation Applicable regulations Audits Codes & standards Company archives Company library Human resources development Inspection agencies Laboratories Management systems Environmental Occupational health & safety Quality Quality control Design Procurement Construction Services Training
Plant • • • • • • • • • •
Management Assets Income Expenses Budget Cost control Establishments Fuels & lubricants Garages Logistics
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• • • • • •
Plant & equipment Production units Spare parts Transportation Workshops Stores
The departments may be combined and/or split in sections, depending on the size and the magnitude of the operations of the company, and resourced accordingly. The performance -based on objective criteria & evidence- of the regional, country and project managers is evaluated and their status is confirmed yearly or as it may be required in special cases (legal prosecution, mental disability, ethical abuse, disastrous financial outcome, etc.) by the executive committee. A.4.4.2
Engineering construction projects
Engineering construction projects escalate from very simple to very complicated ones. The project organizational structure should therefore be adjustable in a mode that complies with and satisfies the requirements, constraints, magnitude, complexity and prospects of each specific project. Basic project organization structure Project management • •
Project manager Project management team Secretariat
Administration • • • • •
• • • • • • •
Management Personnel Contracts Legal Camps Dormitories Kitchens Recreational facilities Services Offices Clinic Authorities Client Public Logistics Security
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• •
Records Reports
Financial • • • • • • • • • • • • • • • •
Management Financial management plan Accounting Banks Budget control Cash flow Cashier Financing Insurances Invoicing Legal Payroll Stores Taxes & levies Records Reports
Construction • •
•
• • • • • • •
Management Construction management documentation Construction management plan Constructability plan Project construction procedures Method statements Construction progress monitoring & control Disciplines Buildings Civil Geotechnical Electrical Electronics Instrumentation Mechanical Processing Telecommunications Subcontractors Workshops Production plants Quarries & borrow pits Stores Records Reports
Technical & controls
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• •
•
•
•
• • •
• • • • •
Management Project management documentation Applicable legislation Applicable regulations Contract documents Project specifications Project codes & standards Project management plan Work instructions Planning & scheduling Project schedule Progress monitoring Project controls Technical Cost Budget Preparation Control Revision(s) Design Procurement Quantity surveying Contractual correspondence Project contracts Authorities • Licenses • Permits Client Designer(s) Subcontractors Suppliers Valuations Expenses Claims Telecommunications IT support Intranet(s) Records Reports
Quality, environmental, occupational health & safety • •
Management Management system documentation Legal, regulatory & contractual requirements Quality plan Quality procedures Inspection & test plans Inspection checklists
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• • • •
• • • • •
Inspection records Environmental management plan OH&S management plan HSE method statements Environmental Occupational health & safety Quality assurance Quality control Inspections Laboratories Audits Training Library Records Reports
Plant • • • • • • • • •
Management Garages Fuels & lubricants Production units Spare parts stores Transportation Logistics Records Reports
The performance -based on objective criteria & evidence- of all site and office personnel is evaluated and their status is confirmed yearly by the superintendents, departments’ managers, site and project managers of each project. A.4.5
Delegation of authority
Teamwork is essential for the successful operation of any company. Systematic follow-up of: • • • • • • •
Transparent delegation of authority, responsibility and accountability Accurate, clear, simple and well-understood instructions Meticulous joint planning, scheduling & control Proper, accurate, factual and timely reporting Regular progress meetings at all levels “Lessons learned” process implementation Controls findings’ adjustments
will boost the possibilities of avoiding bottlenecks and eliminate process related business risks. The governing documents of the company should evidently contain and specify:
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• • • • • • • • •
•
• •
The company’s code of ethics The company’s code of contact The confidentiality protocol The public communications protocol The internal reporting protocol The authorities and responsibilities of its staff at all levels The authorisation process The limits of authorising payments/expenses The authorised signatories for every controlled document that binds legally the company The authorised signatories for every controlled document produced in the course of the company operations The accountability process, and The periodic evaluation/audit process of everyone’s performance
Any granted authority should go along with appropriate resources, assets, support and means, otherwise it easily becomes meaningless. It is advisable that each company employee has a clear specification of his/her responsibilities and authorities analytically itemized31 in a standard32 job description to be agreed, signed by the authorised company representative and the employee, and attached to the employment agreement. During the course of the employment, delegation of specific ownership of certain responsibilities and authorities, other than those specified in the employment contract documents, should be properly presented, accepted, documented, signed and filed as provided in the company quality management system documents. A.4.6
Line of command
It is of paramount importance to establish single lines/chains of command and clear lines of reporting and communications within the company organization. The company protocols should specify, in extreme detail, authorisations, lines of command, reporting and communication for each company hierarchical management position, process, operation or activity. Loose ends in the line of command often create communication breakdown, unnecessary loss of time and motivation, conflicts of personalities and interests, high risks and finally cost a lot of money, time and other resources. Internal audits should meticulously identify bottlenecks or bureaucratic anomalies33 in 31 32 33
Each item of the job description should correspond to a clause of the company management systems Similar positions throughout the company structure should have one standard job description An external audit on a simple “Personnel leave application” company procedure has resulted to the reduction of the number of specified signatures from twelve Page 46 of 495
the line of command processes throughout the company, on an annual basis, and report the findings to the top management for their corrective actions. An example, of indicated single lines of command, is given below: •
•
•
•
•
34
Operations Board of directors Executive committee Chief executive officer Chief financial officer Discipline directors Country managers, project managers34 (mega and major projects) Project managers (all other projects) Site managers Financial Board of directors Chief executive officer Chief financial officer Discipline directors Country managers Project managers Chief accountants Quality Board of directors Chief executive officer Quality director Discipline directors Country managers Project managers Quality managers Environmental Board of directors Chief executive officer Environmental director Discipline directors Country managers Project managers Environmental managers Occupational health & safety (12) [bureaucracy, incompetence, waste of time and money] to three (3) with obvious benefits Example: Project managers of mega or major projects report to the relevant discipline director Project managers of all other projects report to the country manager Page 47 of 495
Board of directors Chief executive officer Occupational health & safety director Discipline directors Country managers Project managers Occupational health & safety managers •
•
•
Construction Board of directors Chief executive officer Discipline directors Country managers, project managers (mega and major projects) Project managers (all other projects) Site managers Construction managers Commercial, technical & controls Board of directors Chief executive officer Commercial, technical & controls director Discipline directors Country managers Project managers Commercial, technical & controls managers Plant Board of directors Chief executive officer Plant director Discipline directors Country managers Project managers Plant managers
A.4.7
Personnel
Personnel, at all levels, are employed or hired. Each company has its own employment policy. A rather common approach: • •
•
•
Core executives, only, are employed on indefinite time-end contracts Key personnel are employed on full-time or part-time, periodically renewed, contracts Project personnel are employed or hired on hourly, daily or monthly payments’ contracts on fixed-term contracts Services’ personnel are employed or hired on a zero hour contract basis
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A.4.7.1
Employment legal system
The company should have established its own legal system for employment in each country it operates. The company should be fully aware of and comply with the provisions of the labour law(s). The company should inform its employees, of the provisions of the labour law(s), accordingly. Employer as well as employee’s obligations, under the law, should be defined in the employment contract. Taxation and social insurance obligations, in the country of employment as well as in the country of origin, should be clearly identified and their payment/clearance agreed in the employment contract. Employment contracts should be fair. Employment contracts should be registered with the authorities as stipulated by the law. References (indicative list) •
•
•
•
•
Government UK “Employing people A to Z“ https://www.gov.uk/browse/employing-people © Crown copyright Government UK “Fulltime and part-time contracts“ https://www.gov.uk/contract-types-and-employer-responsibilities/fulltime-andparttime-contracts © Crown copyright Government UK “Fixed term contracts” https://www.gov.uk/contract-types-and-employer-responsibilities/fixedtermcontracts © Crown copyright Government UK “Zero hour contracts” https://www.gov.uk/contract-types-and-employer-responsibilities/zero-hourcontracts © Crown copyright International Labour Organization (ILO) “General principles and operational guidelines for fair recruitment” http://www.ilo.org/wcmsp5/groups/public/---ed_norm/--declaration/documents/publication/wcms_536755.pdf © 1996-2017 International Labour Organization (ILO)
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A.4.7.2
Employment principles
Companies and employees are connected by the employment agreement only. Their contractual association, for the term of the employment relationship, should be based on principles, such as: • • • • • • • •
• • • • • • • • • •
Appreciation - fair rewards system Assurance - comprehensive company management systems Certainty - clear responsibilities and authorities Clarity - the company’s code of contact Confidence - objective evidence evaluations Dedication - the act of binding yourself to the cause Discretion - evident confidentiality obligations of both parties Ethics - the company’s code of ethics, the professional institutions’ (for engineers, professionals) codes of ethics Fairness - equal pay for equal work Honour - value of the fundamental human rights Integrity - verbal agreements as good as written Legality - respect to the laws of the country of operations Legitimacy - employee’s curriculum vitae, employer’s track record Loyalty - devotion and faithfulness to the company Modesty - freedom from owner’s egotism or supervisor’s vanity Precision - the employment agreement Respect - transparent job description Trust - mutual benefits
In real life, this collection of principles constitutes a very “long shot” almost impossible to notice in a professional lifetime, as: • •
Jobs come and go, if you are lucky to have a job all the time Both ends of this relationship are administered by humans
The actual situation is grave. • • • •
The employees have, actually, no rights at all, in most of the professions. What is the actual definition of “unemployment”? What is the actual definition of “poverty”? Human rights?
Please see the references below. References (indicative list) •
•
United Nations “Universal Declaration of Human Rights” http://www.un.org/en/universal-declaration-human-rights/index.html Copyright International Labour Organization (ILO) “Fundamental Principles and Rights at Work Branch (FUNDAMENTALS)”
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•
http://www.ilo.org/global/about-the-ilo/how-the-ilo-works/departments-andoffices/governance/fprw/lang--ja/index.htm © 1996-2017 International Labour Organization (ILO) International Labour Organization (ILO) “World Employment and Social Outlook 2016: Transforming jobs to end poverty” ISBN 978-92-2-130388-6 (pdf) http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--publ/documents/publication/wcms_481534.pdf © 1996-2017 International Labour Organization (ILO)
A.4.7.3
Employees’ personal codes
Each employee should be given a unique alphanumerical, simple, easy to remember, personal code upon contract signature, based on the company’s “personnel coding system”. The code should be used in all inter-company processes related to the employee, such as: • • • • • • • • • • • • • • •
Employment contract Job description Personal records Licenses Visas Authorisations Classifications Positions Transfers Reports Costing Payroll Payments Charges Assessments, etc.
Reference •
International Organization for Standardization (ISO) ISO “Country codes - ISO 3166” http://www.iso.org/iso/home/standards/country_codes.htm © All Rights Reserved.
A.4.7.4
Employees’ classification
A simple employees’ classification method for a construction company is indicated herewith. For formal internationally accepted occupational classifications, please see references below.
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Main categories Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
Directors Managers Senior staff/engineers Supervisors Skilled Unskilled
Sub-categories Level 1 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Chair of the board of directors Chief executive officer Chief financial officer Executive director Non-executive director Director combined disciplines Director buildings Director civil works Director mechanical works Director electrical works Director commercial Director technical Director controls Director plant Director quality Director environmental Director occupational health & safety
Level 2 01 02 03 04 05 06
Regional manager Country manager Project manager Site manager Head office department manager Project department manager
Level 3 01 02 03 04 05
Senior engineer (construction, quality, HSE, technical, controls, design, etc.) Superintendent Engineer Senior officer (doctor, accountant, administrator etc.) Officer
Level 4
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01 02 03 04 05 06 07
General supervisor Construction supervisor Production unit supervisor Workshop supervisor Laboratory supervisor Storekeeper Supervisor
Level 5 01 02 03 04 05 06 07
Gang leader Licensed technician Technician Operator Driver Medical staff Office staff
Level 6 01 02
Skilled labourer Unskilled labourer
The classification code of each employee escorts its personal code. When the employee is promoted, the class is revised accordingly. References (indicative list) •
International Labour Organization (ILO) The International Standard Classification of Occupations (ISCO) http://www.ilo.org/public/english/bureau/stat/isco/index.htm Š 1996-2013 International Labour Organization (ILO) ISCO-08 http://www.ilo.org/public/english/bureau/stat/isco/isco08/index.htm ISCO-58 http://www.ilo.org/public/english/bureau/stat/isco/isco58/major.htm ISCO-68 http://www.ilo.org/public/english/bureau/stat/isco/isco68/major.htm ISCO-88 http://www.ilo.org/public/english/bureau/stat/isco/isco88/index.htm
A.4.7.5
Personnel administration
The construction industry employs millions of workers of different trades, nationalities, languages, mentality, cultures, qualifications, training, working habits, age, gender, body structure, strength, mental capacity, character, etc. An international contractor will have to, constantly, select hundreds, if not thousands, of qualified personnel and administer them efficiently so that they form proper working teams and produce as required. It is recommended that all engineers be placed originally at a construction site so that
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they are tested in action and gain hands-on experience on company processes, systems, procedures, mentality and principles, before they are transferred to administrative positions. Company procedures should specify and detail personnel administration processes in a very analytical and simple manner, as they should be well understood by all. A.4.7.6
Construction industry occupations
An indicative list of professions, in different types of construction projects, is mentioned in chapter “E.2.2 Construction teams”. Each company should prepare its own list of occupations and revise it when and if necessary. Most of the professions in the contraction industry require, by law, education, training, certification and work license. •
•
•
Specialised universities, colleges, institutes and technical schools offer vocational education and training. On the job training is offered usually by apprenticeships (work, be trained, be paid). Professional registration of practicing engineers and technicians, in the UK, requires the following steps: Join a professional engineering institution Tell your institution that you're aiming for a professional title Record your professional development Assessment - the professional review Certification
References (indicative list) •
•
•
Legislation Government UK Statutory Instruments 1994 No. 424 SCIENTIFIC RESEARCH “The Engineering and Physical Sciences Research Council Order 1994” http://www.legislation.gov.uk/uksi/1994/424/contents/made © Crown copyright Legislation Government UK Statutory Instruments 2015 No. 701 Employment And Training “The Industrial Training Levy (Construction Industry Training Board) Order 2015” http://www.legislation.gov.uk/uksi/2015/701/contents/made © Crown copyright Engineering council UK http://www.engc.org.uk/ © Engineering Council 2015, all rights reserved. Registered Charity No.
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•
•
A.5
286142. Engineering Council UK ”Professional registration” http://www.engc.org.uk/professional-registration/ © Engineering Council 2015, all rights reserved. Registered Charity No. 286142. Construction Industry Training Board (CITB) Go Construct “Construction jobs” https://www.goconstruct.org/construction-jobs/ © 2017 CITB Management systems
The International Organization for Standardization (ISO) states35: Quote What is a management system? A management system is the way in which an organization manages the inter-related parts of its business in order to achieve its objectives. These objectives can relate to a number of different topics, including product or service quality, operational efficiency, environmental performance, health and safety in the workplace and many more. The level of complexity of the system will depend on each organization’s specific context. For some organizations, especially smaller ones, it may simply mean having strong leadership from the business owner, providing a clear definition of what is expected from each individual employee and how they contribute to the organization’s overall objectives, without the need for extensive documentation. More complex businesses operating, for example, in highly regulated sectors, may need extensive documentation and controls in order to fulfil their legal obligations and meet their organizational objectives. Unquote Proposed ouline process: •
•
35
36
A team of senior company executives should prepare simple36, detailed, complete, easy to apprehend and implement management systems with the assistance of certified quality, environmental and OH&S managers -senior company employees. External consultants may provide limited advice due to company confidentiality protocols. International Organization for Standardization (ISO) “Management system standards” https://www.iso.org/management-system-standards.html © All Rights Reserved The simpler, the better Page 55 of 495
•
•
•
•
The top management of the company should approve these management systems, accept and testify their ownersip, enforce them, finance extensive training of all its employees/interested parties and support their implementation and improvement. Management systems offer, step-by-step, valuable guidance and assistance to all personnel, without exceptions, if they are written in a simple language and are taught and well understood by all. Investing in management systems has -proven- high returns. Complicated management systems or those established for certification purposes only are useless, will be ignored by the people, rejected by demanding clients and should be avoided.
A.5.1
Quality management system
The International Organization for Standardization (ISO) states37: Quote Implementing a quality management system will help you: • Assess the overall context of your organization to define who is affected by your work and what they expect from you. This will enable you to clearly state your objectives and identify new business opportunities. • Put your customers first, making sure you consistently meet their needs and enhance their satisfaction. This can lead to more repeat custom, new clients and increased business for your organization. • Work in a more efficient way as all your processes will be aligned and understood by everyone in the business or organization. This increases productivity and efficiency, bringing internal costs down. • Meet the necessary statutory and regulatory requirements. • Expand into new markets, as some sectors and clients require ISO 9001 before doing business. • Identify and address the risks associated with your organization. Unquote A.5.1.1
Quality of construction
Quality of construction means, in simple terms, that a project has been designed, procured, constructed, commissioned and delivered as scheduled, within budget, according to contracted specifications and that it serves the purpose of its production. All related parties, such as: 37
International Organization for Standardization (ISO) “ISO 9001 Debunking the myths” https://www.iso.org/files/live/sites/isoorg/files/archive/pdf/en/iso_9001_debunking _the_myths.pdf © ISO, 2015 All rights reserved Page 56 of 495
• • • • • • • • • • •
Authorities Regulators Client Consultant(s) Contractor(s) Designer(s) Financial institutions Interested parties Personnel Subcontractors Suppliers
should share the same engineering dialect and work as one team. The ISO quality management principles should be accepted as true and used as basis of quality management by all parties. The main setback in any effort to produce quality construction projects is corruption. Anti-corruption processes and practices should be regulated and form integral parts of any contract in the construction industry. References (indicative list) •
•
•
•
•
•
International Organization for Standardization (ISO) “ISO/TC 176 - Quality management and quality assurance” https://www.iso.org/committee/53882.html © All Rights Reserved. International Organization for Standardization (ISO) ISO “Quality management principles” https://www.iso.org/files/live/sites/isoorg/files/archive/pdf/en/pub100080.pdf © ISO 2015 All rights reserved International Organization for Standardization (ISO) “ISO 37001:2016 Anti bribery management systems -- Requirements with guidance for use” https://www.iso.org/standard/65034.html © ISO 2016 All rights reserved International Federation of Consulting Engineers (FIDIC) FIDIC “Quality of Construction“ http://fidic.org/node/751 Copyright International Federation of Consulting Engineers (FIDIC) FIDIC “Business Integrity“ http://fidic.org/node/748 Copyright Global Infrastructure Anti-Corruption Centre (GIACC) http://www.giaccentre.org/ © 2016 GIACC
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A.5.1.2
Quality standards
ISO 9001:2015 has been published on the 15th of September 2015. ISO 9001:2015 replaces previous editions and certification bodies will have up to three years (until September 2018) to migrate certificates to the new version. Organizations are granted a three-year transition period after the revision has been published (until September 2018) to migrate their quality management system to the new edition of the standard. Information about the revision of ISO 9001 can be found on the ISO/TC 176/SC 2 (http://isotc.iso.org/livelink/livelink/open/tc176SC2public) home page. ISO 9001:2015 is made up of a number of different sections, each concentrating on the requirements involved in different aspects of a quality management system. Introduction Clause 1 Scope Clause 2 Normative references Clause 3 Terms and definitions Clause 4 Context of the organization Clause 5 Leadership Clause 6 Planning Clause 7 Support Clause 8 Operation Clause 9 Performance evaluation Clause 10 Improvement The proposed table of contents -page 321 of AMCI-IAP-Part I-In theory38- of the quality management system manual that was based on ISO 9001:2008 should be revised accordingly. All other quality management system documents (procedures, work instructions, method statements etc.) should be revised accordingly. References (indicative list) •
•
International Organization for Standardization (ISO) “ISO/TC 176 - Quality management and quality assurance” https://www.iso.org/committee/53882.html © All Rights Reserved. International Organization for Standardization (ISO) “ISO 9001:2015 Quality management systems — Requirements” https://www.iso.org/obp/ui/#iso:std:iso:9001:ed-5:v1:en © 2015 ISO — All rights reserved
A.5.2 38
Environmental management system
https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory Page 58 of 495
The United States Environmental Protection Agency (EPA) states39: Quote An environmental management system (EMS) is a set of processes and practices that enable an organization to reduce its environmental impacts and increase its operating efficiency. Unquote A.5.2.1
Unhealthy environment
The World Health Organization (WHO) states40: Quote “An estimated 12.6 million people died as a result of living or working in an unhealthy environment in 2012 - nearly 1 in 4 of total global deaths, according to new estimates from WHO. Environmental risk factors, such as air, water and soil pollution, chemical exposures, climate change, and ultraviolet radiation, contribute to more than 100 diseases and injuries.” Unquote A.5.2.2
Environmental standards
ISO 14001:2015 was published on the 15th of September 2015. Organizations are granted a three-year transition period after the revision has been published to migrate their environmental management system to the new edition of the standard. After this transition period, companies that opt for third party certification will have to seek certification to the new version of the standard. The former version, ISO 14001:2004, and any certification to it, will be out of date. See further guidance from the International Accreditation Forum (IAF). See the ISO/TC 207/SC 1 (https://committee.iso.org/home/tc207sc1) homepage for more details. ISO 14001:2015 is made up of a number of different sections, each concentrating on the requirements involved in different aspects of an environmental management system. 39
40
United States Environmental Protection Agency (EPA) “Environmental Management Systems” https://www.epa.gov/ems Privacy and Security World Health Organization (WHO) “Deaths attributable to unhealthy environments” http://www.who.int/mediacentre/news/releases/2016/deaths-attributable-tounhealthy-environments/en/ © WHO 2016 Page 59 of 495
Introduction Clause 1 Scope Clause 2 Normative references Clause 3 Terms and definitions Clause 4 Context of the organization Clause 5 Leadership Clause 6 Planning Clause 7 Support Clause 8 Operation Clause 9 Performance evaluation Clause 10 Improvement The proposed table of contents -Chapter G.3, page 324 of AMCI-IAP-Part I-In theory41- of the environmental management system manual that was based on ISO 14001:2004 should be revised accordingly. All other environmental management system documents (procedures, work instructions, method statements etc.) should be revised accordingly. References (indicative list) •
•
International Organization for Standardization (ISO) ISO/TC 207 Environmental management https://www.iso.org/committee/54808/x/catalogue/ © All Rights Reserved. International Organization for Standardization (ISO) ISO 14001:2015 Environmental management systems — Requirements with guidance for use https://www.iso.org/obp/ui/#iso:std:iso:14001:ed-3:v1:en © 2015 ISO — All rights reserved
A.5.3
Occupational health & safety management system
The International Labour Organization (ILO) states42: Quote The risks for occupational accidents and diseases at work have to be managed by the employers and workers who are facing with them. In order to ensure effective action, it is essential to establish occupational safety and health (OSH) management systems at all workplaces for continual improvement of working environment and preventive measures. Unquote
41 42
https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory International Labour Organization (ILO) “Occupational Safety and Health Management Systems” http://www.ilo.org/safework/areasofwork/occupational-safety-and-healthmanagement-systems/lang--en/index.htm Page 60 of 495
A.5.3.1
Safety and health at work
The International Labour Organization (ILO) states: Quote “Every 15 seconds, a worker dies from a work-related accident or disease. Every 15 seconds, 153 workers have a work-related accident. Every day, 6,300 people die as a result of occupational accidents or work-related diseases – more than 2.3 million deaths per year. 317 million accidents occur on the job annually; many of these resulting in extended absences from work. The human cost of this daily adversity is vast and the economic burden of poor occupational safety and health practices is estimated at 4 per cent of global Gross Domestic Product each year.” Unquote A.5.3.2
Occupational health & safety standards
The Draft International Standard (DIS) of ISO 4500143, the world’s first occupational health and international safety standard, has been published. The new standard is envisaged to replace OHSAS 18001. ISO 45001 is currently being developed by a committee of occupational health and safety experts, and will follow other generic management system approaches such as ISO 14001 and ISO 9001. It will take into account other International Standards in this area such as OHSAS 18001, the International Labour Organization's ILO-OSH Guidelines, various national standards and the ILO international labour standards and conventions. The OH&S management system of the company that was based on OHSAS 18001 should be revised accordingly to meet the requirements of ISO 45001, when it is finally published. All other OH&S management system documents (procedures, work instructions, method statements etc.) should be revised accordingly. References (indicative list) •
43
International Labour Organization (ILO) “Safety and health at work “ http://www.ilo.org/global/topics/safety-and-health-at-work/lang--en/index.htm © 1996-2017 International Labour Organization International Organization for Standardization (ISO) “ISO 45001 Briefing notes” https://www.iso.org/files/live/sites/isoorg/files/archive/pdf/en/iso_45001_briefing_n ote.pdf © ISO, 2015 – All rights reserved Page 61 of 495
•
•
•
•
International Labour Organization (ILO) “Guidelines on occupational safety and health management systems, ILO-OSH 2001” http://www.ilo.org/safework/info/standards-andinstruments/WCMS_107727/lang--en/index.htm © 1996-2017 International Labour Organization International Organization for Standardization (ISO) “ISO/DIS 45001.2 – Occupational health and safety management systems -Requirements with guidance for use” http://www.iso.org/iso/catalogue_detail?csnumber=63787 © All Rights Reserved. International Organization for Standardization (ISO) “ISO 45001 - Occupational health and safety” http://www.iso.org/iso/home/standards/management-standards/iso45001.htm © All Rights Reserved. Health and Safety Executive UK “Health and safety in the construction industry” http://www.hse.gov.uk/construction/index.htm Copyright
Please see also Chapter G.3, page 324 of AMCI-IAP-Part I-In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory A.5.4
Integrated quality, environmental, occupational health & safety management system
Please see also Chapter G.4, page 326 of AMCI-IAP-Part I-In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory A.5.4.1
Procedures of an integrated quality, environmental, occupational health & safety management system
Structure It is proposed that a standard format is used for all procedures, such as: Table of contents 1. 2. 3. 4. 5. 6.
Scope of the procedure Field of application of the procedure and responsibilities Description of the procedure Forms Records Attachments
List of proposed quality, environmental, occupational health & safety management system procedures (For each clause of the manuals - indicative only)
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Clause 4 Context of the organization • • • • • • • • • •
Code of conduct Code of ethics Company bylaws Company licenses Company protocols Countries of operations Customers Organization Scope of services Social responsibility44
Clause 5 Leadership • • • • • • • • • •
Communication Customer focus Delegation of authority Environmental policy Management systems OH&S policy Organizational structure Quality policy Resources Social responsibility
Clause 6 Planning • • • • • • • • •
44
45
46
Bids and contracts Budgets Business plans Compliance obligations Contracts Controls Customer focus Energy management45 Environmental Management46 International Organization for Standardization (ISO) “ISO 26000:2010 Social Responsibility” https://www.iso.org/iso-26000-social-responsibility.html © All Rights Reserved. International Organization for Standardization (ISO) “ISO 50001:2011 Energy management” https://www.iso.org/iso-50001-energy-management.html © All Rights Reserved. International Organization for Standardization (ISO) “ISO 14001:2015 Environmental management” https://www.iso.org/iso-14001-environmental-management.html © 2015 ISO — All rights reserved Page 63 of 495
• • • • • • • • • • • • • • • • • • •
Environmental objectives Environmental management plans Financing Information security management47 Marketing OH&S management48 OH&S objectives OH&S management plans Planning & scheduling Planning of change Project management Project management objectives Quality management49 Quality objectives Quality plans Resources Risk management50 Suppliers and subcontractors Sustainability plans
Clause 7 Support • • • • • • • • • •
47
48
49
50
Communication systems Competence, awareness, induction & training Control of documents & records Customer focus Design/engineering Hardware & software Human resources Industry codes and standards Information system Infrastructure International Organization for Standardization (ISO) “ISO/IEC 27000:2016 Information technology — Security techniques — Information security management systems — Overview and vocabulary” https://www.iso.org/obp/ui/#iso:std:iso-iec:27000:ed-4:v1:en © 2016 ISO/IEC — All rights reserved International Organization for Standardization (ISO) “ISO 45001 Occupational health and safety” https://www.iso.org/iso-45001-occupational-health-and-safety.html © All Rights Reserved. International Organization for Standardization (ISO) “ISO 9000:2015 Quality management” https://www.iso.org/iso-9001-quality-management.html © 2015 ISO — All rights reserved International Organization for Standardization (ISO) “ISO 31000:2009 Risk management” https://www.iso.org/iso-31000-risk-management.html © All Rights Reserved. Page 64 of 495
• • • • • • • • • • •
Internal & external communications Intranet(s) Legislation Library Measuring and test equipment Monitoring & measuring resources Occupational health and safety Issues Plant Project supporting activities Purchasing Subcontracting
Clause 8 Operation • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Accounts Applicable codes & standards Applicable legislation Budgets Contract documents’ requirements Controls Costing Customer focus Design activities Document and data control Emergency plans Environmental management plans HSE plans Internal & external communication Loss prevention plans Nonconformities OH&S plans OH&S risk management plans Personnel administration Personnel code of ethics Personnel contracts Personnel job descriptions Planning & scheduling Plant and equipment Project controls’ plans Progress meetings Progress monitoring & reporting Project management plans Purchasing Quality plans Risk management plans Security plans Waste management plans
Clause 9 Performance evaluation
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•
•
Review meetings Project review meetings Country review meetings Management review meetings Company performance indicators Administration Assets Budget Commercial Construction Controls Costs Cash flow Debt Design Documents Emergencies Financial HSE Infrastructure Innovation Legal Management Markets Occupational health & safety Operations Opportunities Personnel Perspectives Plant Procurement Productivity Profitability Progress Quality Records Reviews Risks Satisfaction Authorities Clients Interested parties Public Regulators Stock markets Schedules Security Setbacks Systems Technical
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•
Projects performance indicators Management Project acceptance, satisfaction • Client • Consultants • Authorities • Public • Regulators • Interested parties • Company management Project finances • Budget • Costs • Debt • Receivables • Profit or loss Emergencies response Legal Operations • Controls • Organization • Departments • Documentation • Personnel • Plant • Punch lists • Resources • Schedule • Subcontractors • Systems Risks evaluation accuracy Waste • Company credit • Money • Resources • Time Departments All • Personnel performance Administration • Personnel • Camps • Offices • Emergencies • Logistics • Security Construction • Costs • Productivity • Punch lists
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Schedule Waste HSE • Accidents, incidents & ill health • Environmental spills, pollution & waste • Fatalities Financial • Budget control • Costs • Debt • Profit & loss account • Receivables Plant • Availability • Charges • Costs • Productivities • Waste Quality • Audits • Compliance • Documentation • Indicators • NCR • Records • Rejections Technical & controls • Budget • Contracts • Costs • Design • Procurement • Schedule • Subcontractors • Records • •
Clause 10 Improvement • • • • •
Corrective & preventive actions Improvement projects Innovation Lessons learned Management reviews’ decisions
A.5.4.2
Work instructions of an integrated quality, occupational health & safety management system
environmental,
Structure It is proposed that a standard format is used for all work instructions, such as:
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Table of contents 1. 2. 3. 4. 5. 6.
Scope of the work instruction Field of application of the work instruction and responsibilities Description of the work instruction Forms Records Attachments
List of proposed quality, environmental, occupational health & safety management system work instructions (Indicative only - alphabetical order) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
51
Accounting Construction health risks51 Control of nonconforming materials Cost codes Customer focus Document & records control Extreme weather conditions living, travel and survival Fire prevention and fire fighting HSE induction HSE method statements HSE reporting HSE tool box talks HSE training programs Kitchen and mess hygiene Medical provision Preventing disease through healthy environments Project administration Project accounting Project budget Project controls plan Project cost control Project emergency plan Project environmental plan Project establishments plan Project financial plan Project fire fighting plan Project first aid provision plan Project health care plan Project HSE method statements Project HSE plan Health and Safety Executive (HSE) UK “Construction health risks: Key points” http://www.hse.gov.uk/construction/healthrisks/key-points.htm Copyright Page 69 of 495
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
A.6
Project intranet Project lifting plan Project loss prevention plan Project management plan Project OH&S plan Project planning & scheduling Project procedures Project progress measurement, verification and approval Project progress meetings Project progress reports Project quality control Project quality plan Project schedule Project storage management plan Project travelling, traffic and transportation plan Project waste management plan Project work breakdown structure Project work procedures Management system use of forms outline Reporting a non-conformity Reporting an unsafe act/unsafe condition Risk assessment methodology Safe erection of steel structures Safe lifting operations Safe storage and dispensing of fuel Safe storage and handling of gas cylinders Safe storage and use of highly flammable liquids Safe use of abrasive wheels Safe use of hand-held portable electrical equipment Safe use of scaffolding Safe use of woodworking equipment Safety in excavation works Safety in welding Safety topics in construction52 Site radiography Waste management Communication systems
It is proposed that the company operates -state of the art- fully computerized, secured, certified and controlled under strict protocols communication systems that document, process, distribute and store all information that is produced by and for the organization. The systems should comply with the legal and regulatory requirements of each 52
Health and Safety Executive (HSE) UK “Safety Topics” http://www.hse.gov.uk/construction/safetytopics/index.htm Copyright Page 70 of 495
country of operations and the requirements of international standards. In this respect, it is probable that different computer intranet systems should be established in each country of operations or even in each project and the information is stored and transferred under strict protocols. All concerned personnel from the top management to the site supervisors should have -through the system- all information necessary to perform their duties and take the right decisions, as soon as possible if not instantly. They should be able to communicate -including live visual contact- through the system, with each other safely and securely. Company related information that is not publicly released by the management should be treated as confidential and should not leave the company premises by any means. In this respect: •
•
Unauthorised personal computers, tablets, mobile phones or any electronic devices that can connect to the company intranet should not be permitted, in the offices. The use of portable electronic storage devices should be prohibited for all. Exception from this rule applies for back-ups or transfer of data when this is not possible through the system and only by the responsible authorised IT officers.
Management systems’ procedures should specifically address the following topics, as a minimum, on information systems: • • • •
•
•
Confidentiality agreements Access protocols Coding Information Verbal Monitored Written Green Paper Filmed Live Monitored Telephones Landlines VOIP Mobile Satellite Wireless Computers’ hardware Servers
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•
•
•
Terminals Printers Recording devices Copying devices Computers’ software Operating systems Encryption software Firewalls Antivirus Accounting Word processing Spreadsheets Presentation packages Data bases Archiving Design Planning Cost control Reporting Live conferencing Internet Research Emails Intranet(s) Conferences Management Projects Clients Designers/suppliers/subcontractors/services’ providers Public Interested parties Emails Intranet Internet Correspondence External Internal Records Head offices Projects Sites Reports Head offices Projects Sites Library National & international legislation National regulations National guidelines on regulations National codes of practice
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Industry codes & standards Industry informatory documents Scientific documents Company management systems Contract documents Head offices’ files Projects’ files Company archives References (indicative list) •
•
•
•
•
A.7
Legislation Government UK “Telecommunications Act 1984” 1984 CHAPTER 12 http://www.legislation.gov.uk/ukpga/1984/12/contents © Crown copyright International Organization for Standardization (ISO) ISO/IEC 27000 family - Information security management systems http://www.iso.org/iso/home/standards/management-standards/iso27001.htm © 2013 ISO/IEC - All rights reserved International Organization for Standardization (ISO) ISO Standards catalogue “35.110: Networking” Including local area networks (LAN), metropolitan area networks (MAN), wide area networks (WAN), etc. Integrated Services Digital Network (ISDN), see 33.080 Private Integrated Services Network (PISN), see 33.040.35 http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=35&ICS2=110& © All Rights Reserved. Institute of Electrical and Electronics Engineers (IEEE) IEEE Standards http://www.ieee.org/standards/index.html © Copyright 2017 IEEE – All rights reserved. Use of this website signifies your agreement to the IEEE Terms and Conditions. (ISC)² https://www.isc2.org/default.aspx © Copyright 1996-2016. (ISC)² Inc. All Rights Reserved. All contents of this site constitute the property of (ISC)2, Inc. and may not be copied, reproduced or distributed without prior written permission. Information systems
ISO 9000:2015, definition 3.8.4 •
information system <quality management system> network of communication channels used within an organization (3.2.1)
Information is a most valuable asset of the company and should remain property of
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the company only. Any leak of company related classified information, without proper authorisation, should be prevented. There are no “friends, partners or colleagues to trust” in business. In this respect the use of personal computers, tablets, smart phones or any kind of electronic storage means, in the work place should be strictly forbidden unless specifically specified in the employee’s job description and authorised in writing. Unclassified information may be exchanged online as per company procedures. It is essential that all company operations are monitored constantly and securely worldwide. The raw data will be incorporated in the company local intranet system -not connected to the internet- by authorised representatives at the place of production. Standard formats and methods will be used. The information will be processed as programmed and reports will be sent to all those concerned by a secure practice, clearly specified for each case in the relevant company protocols. Points of concern will be highlighted. Information processing is a 24/7 standard routine. The security of the information systems should be audited by certified information systems auditors regularly. References (indicative list) •
•
•
•
International Organization for Standardization (ISO) “ISO 9000:2015 Quality management systems - Fundamentals and vocabulary” https://www.iso.org/obp/ui/#iso:std:iso:9000:ed-4:v1:en © 2015 ISO - All rights reserved International Organization for Standardization (ISO) “ISO/IEC 27000 family - Information security management systems” https://www.iso.org/isoiec-27001-information-security.html © 2013 ISO/IEC - All rights reserved Institute of Electrical and Electronics Engineers (IEEE) IEEE - information security standards (search) http://www.ieee.org/searchresults/index.html?cx=006539740418318249752%3 Af2h38l7gvis&cof=FORID%3A11&qp=&ie=UTF-8&oe=UTF8&q=information+security+standards © Copyright 2017 IEEE – All rights reserved. Use of this website signifies your agreement to the IEEE Terms and Conditions. Institute of Electrical and Electronics Engineers (IEEE) Security & Privacy Magazine, IEEE https://www.ieee.org/membership-
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•
catalog/productdetail/showProductDetailPage.html?product=PER338-ELE © Copyright 2017 IEEE - All rights reserved. Use of this website signifies your agreement to the IEEE Terms and Conditions. Information Systems Audit and Control Association (ISACA) https://www.isaca.org/pages/default.aspx © 2017 ISACA. All Rights Reserved
A.7.1
Monitoring and reporting
Accurate monitoring and sincere reporting -simple, complete, standardized and controlled- are key activities for effective decision-making, successful operations and continuous improvement of the company. Management system procedures on monitoring and reporting -routine or emergencyshould be prepared for all levels of the company as specified in the management systems. Management system work instructions on monitoring and reporting should be prepared for each section for each site/project/office. In an environmental friendly company most or all of the reports will be electronically prepared, checked, controlled, and distributed in the company local intranets. All kinds of reports should be classified, before distribution. Sensitive/classified information/reports will be prepared, controlled, distributed and archived offline53 only. Company protocols should identify and define the classification and handling of every piece of information produced. The project files should be archived, when a project is completed and closed out, and withdrawn from the company intranet. From that point on, they could be approached only by those authorised, under strict protocol. Reports once published should not be modified. An updated comprehensive top sheet for each project, area, country or the company with significant information and all the areas of concern highlighted, will always be available for the management at all levels of the chain of command. A.7.2
Review meetings
It is extremely important that the loop of “work progress status - information transfer” be closed properly on a standard basis. Regular, progress meetings (daily, weekly, monthly, quarterly and yearly) should serve all the phases of the Plan-Do-Check-Act approach and cover all the 53
Refers specifically to an internet connection Page 75 of 495
requirements of the company management systems. The meetings should be well prepared in advance and have standard agendas, participants, input and output documents. The controlled output documents of the progress meetings should be published and distributed in accordance with the company’s management procedures and protocols (“delegation of authority”, “distribution of documents” and “confidentiality”). A management system procedure on “Review meetings” -routine or emergency- for all levels of the company, should be incorporated in the management system of the company. A.7.2.1
Project review meetings
Project review meetings are essential quality management processes that take place from the tender to the final handing over stages of a project. A specific quality management procedure should be dedicated to “Project review meetings” processes. Please refer also to chapters: • • • • • • • • • • •
C.2 C.5 D.3 E.1.8 F.1.1 G.3.14.8.4 H.1 H.2.1 I.4.1 I.4.1.4 I.5.8
A.7.2.2
Decision to participate in a tender Final review and submission of the complete tender package Contract(s) finalization with the client Project progress meetings Designers’ subcontracts Procurement inspection meetings Project kick-off meetings Site(s) handing-over meeting(s) Project progress meetings, reports Management review meetings Quality department’s meetings
Country review meetings
These are the basic coordination meetings for each country of operations. All the key players of the company in the country will get together and share knowledge and experience, in good faith, as a team of professionals. Nothing less should be acceptable. The meetings might be standard monthly progress review meetings or emergency response meetings in cases of extraordinary events. The country manager will schedule these meetings and send formal invitations in due time. Venue: country head office
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Proposed participants (for each country): • • • •
Country manager Country departments’ managers Project managers Project management teams (as required)
The monthly performance of the company in the country will be checked and analyzed against the approved schedule(s) and budget(s). Corrective action will be taken for all setbacks. The work program of the up-coming three months will be agreed. The agreed, controlled and classified, minutes of these meetings will be published and distributed as per company procedures. The company top management may attend any of these meetings. A specific quality management procedure should be dedicated to “Country review meetings” processes. Proposed agenda Management • • • • • • • • • • •
Company Projects Authorities Clients Public Other interested parties Business risks Security Designers, suppliers, vendors, manufacturers, subcontractors, service providers Setbacks Requirements
Accounts • • • • • •
•
Cash (money) flow Expenses Debt Financing Budget control review Time cards/charges Personnel Plant Materials charges
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• • • • •
Valuations Invoices Payments Setbacks Requirements
Administration • • • • • • • • • • •
Customer(s) satisfaction Personnel Clinic(s) Offices Camps Messes Utilities Services Security Setbacks Requirements
Construction • •
• • • • • • •
Customer(s) satisfaction Monthly production Sites Workshops Production units Problems Waste Corrective actions Monthly progress vs. schedule Program for next month Setbacks Requirements Personnel Plant Materials Services
Technical & controls • • • • • • • • •
Customer(s) satisfaction Design issues Procurement issues Cost control Monthly progress of every project Budget review for every project Budget review for the company operations in the country Detailed program for every project for the next three months Measurements
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• • • • • • •
Valuations Tenders Communication systems Information systems Reports Setbacks Requirements
Quality • •
• • • •
Customer(s) satisfaction Quality control Design Materials Works NCR Audits Setbacks Requirements
HSE • •
• • • • •
Customer(s) satisfaction HSE issues Accidents Incidents Ill health Environmental Clinic NCR Audits Setbacks Requirements
Materials • • • • • • • • •
Orders’ status Arrivals Consumption Scheduled arrivals Customs’ clearance Transportation Storage & preservation Setbacks Requirements
Plant • •
Utilization Charges
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• • • • • • •
Repairs Service Spare parts Storage & preservation Waste Setbacks Requirements
A.7.2.3
Management review meetings
Regular management review meetings should be scheduled on a yearly basis so that everyone (if possible) is prepared and available to attend. Quarterly and yearly regular management review meetings are proposed. Emergency management review meetings should be called as stipulated in the company articles of association, management systems and protocols. A specific quality management procedure should be dedicated to “Management review meetings” processes. A.7.2.3.1
Quarterly management review meetings
Venue: company head office Proposed participants: • • • • • • • • • • •
Chief executive officer Chief financial officer Director(s) buildings & civil Director(s) mechanical, electrical & instrumentation Director(s) commercial, technical & controls Director plant Director quality Director(s) HSE Regional managers Country managers Project managers (mega or major projects)
The quarterly performance of the company will be reported, checked and compared against the approved schedule and budget. Corrective action will be taken for all setbacks. The work program of the coming year will be agreed. The controlled and classified, videos & minutes of these meetings will be published and distributed as per company procedures. The chief executive officer will present them to the board of directors.
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Proposed agenda General •
• • •
Management review Quarterly outcome Customer(s) satisfaction Performance indicators Social responsibility Lessons learned Business related risk evaluation & management Business plans Report to the board of directors
Financial & Administration • • • • • • • • • • • • • • • •
Customer(s) satisfaction Performance indicators Legal Debt Financing Cash flow Receivables Budget control Profit & loss statement Audits Personnel issues Security Constraints Lessons learned Requirements Social responsibility
Construction • • • • • • •
Customer(s) satisfaction Performance indicators Progress vs. schedule Constraints Problems Lessons learned Requirements
Commercial, technical & controls • • • •
Clients Customer(s) satisfaction Performance indicators Tenders
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• • • • • • • • • • • •
Cost control Productivities Progress Outline program for the coming year Budget review Designers, suppliers, subcontractors, service providers Innovation IT Communications Constraints Lessons learned Requirements
Quality • • • • • •
Customer(s) satisfaction Performance indicators Audits Constraints Lessons learned Requirements
HSE • • • • • • • •
Accidents & incidents Customer(s) satisfaction Performance indicators Audits Constraints Lessons learned Requirements Social responsibility
Plant • • • • • •
Customer(s) satisfaction Performance indicators Utilization Constraints Lessons learned Requirements
A.7.2.3.2
Yearly management review meetings
Venue: to be decided Proposed participants: • •
Chief executive officer Chief financial officer
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• • • • • • • • • •
Director(s) buildings & civil Director(s) mechanical, electrical & instrumentation Director(s) commercial, technical & controls Director plant Director quality Director(s) HSE Regional managers Country managers Project managers (mega projects) Project managers (major projects).
The yearly performance of each project, country, region, and the company as a whole, will be reported, checked and compared against the approved performance objectives, schedules and budgets, in stages: • • • •
First the projects Then the countries Then the regions, and Finally the company
A detailed agenda along with the date(s) and venue of the meeting will be published by the chief executive officer two (2) calendar months before the event. Each participant will be informed of the parts of the meeting(s) he/she will attend and the information/reports/data he/she should send to the secretariat of the management committee -for appropriate distribution to the top management- one (1) month before the event. Each participant will bring along with him/her additional information that he/she deems as important data that should be communicated to the management. Proposed highlighted topics of the meeting: •
The budgets’ results for the previous year -corporate, regions, countries, projects- will be presented, discussed and agreed.
•
Corrective action will be taken for all setbacks.
•
The targets for the projects’ completion -time, cost, risks- will be set and agreed.
•
•
The budgets for the coming year -corporate, regions, countries, projects- will be presented, discussed -in utmost detail- and agreed. Quantitative assessment of the managerial workforce’s performance and consequent decisions -rewards, promotions, releases, salaries’ scheme, etc.will be performed and agreed.
•
The targets for each country, region and the company will be set and agreed.
•
The risks for each country, region and the company will be assessed and
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agreed. •
The controlled and classified, videos & minutes of these meetings will be published and distributed as per company procedures; The chief executive officer and the chief financial officer will present them to the board of directors for their approval; The chair of the board of directors, the chief executive and the chief financial officer will inform, accordingly, the general assembly of the shareholders and other interested parties, as required by the law and the company’s articles of association.
A.8
Cost coding systems
Cost codes that serve the company operations and are based on international standards, international classification systems and applicable legislation should be developed, established and utilized by each company operating in the construction industry. A.8.1
Cost coding guidelines
A cost code should: • • •
Characterize a specific entity with clearly defined specification Point to one entity only Be assigned to each and every: Asset Country head office where the company operates Client of the company Department of each head office Department of each project Economic activity Employee Item of the bill of quantities of each project Material Piece of plant or equipment Project Service offered by the company Service offered to the company Subcontractor Supplier
A.8.2
Cost coding principles
Cost coding system’s development, operation and maintenance is one of the most difficult management tasks as it becomes very complicated, it requires experienced personnel and dedication of expensive resources - secure establishments, communication systems and advanced hardware & software. One common database should serve the cost coding & accounting systems.
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This is an impossible task for most construction companies, as cost coding standardization differs from country to country, client to client, organization to organization. Please see references in next paragraphs. Each expense should have one single entry point into the system. Each expense should be charged to all different cost codes at the same time. Reports, from this database, should be designed to be produced for each cost code of every module. A.8.3
Cost coding modules
Different cost codes modules should be developed by different departments and that alone makes the whole process very complicated. Each module should produce individual results and their combination should construct the company image, instantly. Indicative list of groups of cost codes: • • • • •
• • • • • • •
Chart of accounts Debt Financing Income Costs Direct Indirect Overheads Countries Clients Projects Personnel Suppliers Materials Plant etc.
References (indicative list) •
•
U.S. DEPARTMENT OF ENERGY Office of Information Resources (MA-90) “DOE G 430.1-1, Cost Estimating Guide” https://www.directives.doe.gov/directives-documents/400-series/0430.01EGuide-1 Web Policies Accessibility/Section 508 Privacy Oracle “JD Edwards World Job Cost Guide
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•
Release A9.3.x E21542-04 May 2016” https://docs.oracle.com/cd/E26228_01/doc.93/e21542.pdf Copyright © 2016, Oracle and/or its affiliates. All rights reserved. “Project Management for Construction” by Chris Hendrickson, Department of Civil and Environmental Engineering, Carnegie Mellon University, Pittsburgh, PA l52l3, http://pmbook.ce.cmu.edu/ Preview online at Google Books Copyright C. Hendrickson 1998
A.8.4
Cost coding classifications
Several classification systems for construction companies, projects, materials, equipment and work items are proposed, worldwide. References (indicative list) •
•
•
•
•
•
United Nations Statistics Division “ISIC Rev.4 International Standard Industrial Classification of All Economic Activities, Rev.4” http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=27 Copyright © United Nations, 2016 United Nations Statistics Division “CPC Ver.2.1 Central Product Classification, Ver.2.1” http://unstats.un.org/unsd/cr/registry/cpc-21.asp Copyright © United Nations, 2016 European Union European Commission Eurostat “Classification of Types of Constructions (1998) (CC)” http://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=LST_N OM_DTL&StrNom=CC_1998&StrLanguageCode=EN&IntPcKey=&StrLayoutCo de=HIERARCHIC Legal notice Government UK “Standard industrial classification of economic activities (SIC)” https://www.gov.uk/government/publications/standard-industrial-classificationof-economic-activities-sic © Crown copyright Construction Project Information Committee (CPIC) “Unified Classification for the Construction Industry (Uniclass)” provided by the CPI – the Construction Project Information Committee (www.cpic.org.uk) http://www.cpic.org.uk/uniclass1/ © Copyright Construction Project Information Committee (www.cpic.org.uk). Uniclass2 tool developed by the BIM Gateway Project (www.bimgateway.co.uk). Construction Project Information Committee (CPIC) “Common Arrangement of Work Sections” (CAWS) developed by the Construction Project Information Committee (CPIC)
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•
•
•
•
•
http://www.designingbuildings.co.uk/wiki/Common_Arrangement_of_Work_Sect ions © Designing Buildings Ltd. 2017 Construction Specifications Institute (CSI) Construction Specifications Canada CSC) “MasterFormat®” http://www.csinet.org/masterformat ©2016-2017 The Construction Specifications Institute Masterspec CBI “Co-ordinated Building Information system” the classification and coding system for the New Zealand construction industry http://www.masterspec.co.nz/industry-resource/cbi-classification-and-codingoverview-1130.htm © 2017 Construction Information Limited U.S. Department of Commerce “North American Industry Classification System (NAICS)” http://www.census.gov/eos/www/naics/index.html Data Protection and Privacy Policy RSMeans54 “2017 Cost Data Books” for their classification of cost codes in various types of construction projects https://www.rsmeans.com/products/books/2017-cost-data-books.aspx The Gordian Group © 2017. All Rights Reserved Engineering News-Record (ENR)55 “Engineering News-Record Top Lists” for their classification of companies engaged in the construction industry http://www.enr.com/toplists Copyright ©2017. All Rights Reserved BNP Media
A.8.5
Cost coding database management system
Each department develops its lists of cost codes (modules). The data entry table of each module is developed. All data entry tables are combined in a single database. Queries are developed. Standard and tailor-made reports are developed. A complete manual for the database management system (DBMS) is prepared, checked, approved and implemented. 54
55
RSMeans https://www.rsmeans.com/ The Gordian Group © 2017. All Rights Reserved Engineering News-Record (ENR) http://www.enr.com/ Copyright ©2017. All Rights Reserved BNP Media. Page 87 of 495
Planning of any company activity starts from the assignment of the right cost code to the activity. Business plans, estimating, scheduling, operating, objective evidence collection, reporting, data analysis, corrective actions, management review, improvement etc., depend on the simplicity and the clarity of the information collected through the cost codes’ system. It is therefore of paramount importance that the management of the company spare no effort in the development, establishment and implementation of a simple and functional cost codes’ system. Investment in human resources, environment, hardware and software for the cost codes’ system advancement and utilization, pays back with huge return. A.9
Plant and equipment
Plant & equipment are either used by the company for the construction of the works or they are incorporated in the works of a project. A.9.1
Construction plant & equipment
The company may opt to buy or hire construction plant & equipment for its projects. In either case, acceptable cost, HSE and schedule outcome elements result from the proper selection and utilization (operation, service, repairs, spare parts, fuels etc.) of this critical resource. •
A huge number of manufacturers produce plant, equipment and tools for the construction industry.
•
A minimal selection of companies is referenced, for information purposes only.
•
Continuous research is required.
Plant and equipment manufacturers (indicative list - alphabetical order) •
•
ABB http://new.abb.com/ © Copyright 2017 ABB Industries and utilities http://new.abb.com/offerings/industries Products and services http://new.abb.com/offerings AMMAN https://www.ammann-group.com/en/ AMMANN GROUP Copyright ©2016 All Rights Reserved. Plants
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https://www.ammann-group.com/en/plants Machines https://www.ammann-group.com/en/machines •
•
•
•
•
•
•
Atlas Copco http://www.atlascopco.co.uk/en-uk © 2017 Atlas Copco UK Holdings Ltd. Products http://www.atlascopco.us/usus/products/ © 2017 Atlas Copco North America LLC. Atlas Copco - Road Construction Equipment - Dynapac http://www.dynapac.co.uk/en/Home/ Copyright © 2017 - Atlas Copco Group Products http://www.dynapac.co.uk/en/Products/ Copyright © 2017 - Atlas Copco Group Caterpillar http://www.cat.com/en_US.html Caterpillar © 2017. All Rights Reserved. Caterpillar equipment http://www.cat.com/en_US/products/new/equipment.html Caterpillar power systems http://www.cat.com/en_US/products/new/power-systems.html CIFA http://www.cifa.com/home Privacy Cummins http://www.cummins.com/ © 2017 Cummins Inc., Box 3005, Columbus, IN 47202-3005 U.S.A. Products http://www.cummins.com/products Doka https://www.doka.com/ Copyright © Doka GmbH Solutions for the construction projects https://www.doka.com/en/solutions/overview/index ENERPAC http://www.enerpac.com/en © 2017 ENERPAC All rights reserved Products http://www.enerpac.com/en/products Ingersoll Rand http://www.ingersollrandproducts.com/ © Ingersoll-Rand plc, 2016. All rights reserved.
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Solutions http://www.ingersollrandproducts.com/am-en/solutions •
•
•
•
•
•
•
•
KEMCO http://www.kemco.co.jp/eng/index.htm Copyright (C) 2000-2013 Kotobuki Engineering & Manufacturing Co., Ltd. All Rights Reserved. Crusher Department http://www.kemco.co.jp/eng/hasai/index.htm Komatsu http://www.komatsu.com/ Copyright 2005 Komatsu Ltd. All rights reserved. Equipment http://www.komatsuamerica.com/ Copyright © 2015 Komatsu America Corp. All Rights Reserved. Liebherr https://www.liebherr.com/en/deu/start/start-page.html Imprint Construction machines https://www.liebherr.com/en/deu/products/constructionmachines/construction-machines.html MAN http://www.truck.man.eu/de/en/index.html © MAN 2017 Imprint Manitowoc https://www.manitowoccranes.com/en 2017 Manitowoc | all rights reserved Grove mobile telescopic cranes https://www.manitowoccranes.com/en/cranes/grove Manitowoc Lattice Boom Crawler Cranes https://www.manitowoccranes.com/en/cranes/manitowoc Putzmeister http://www.pmw.de/cps/rde/xchg/SID-4EF57A8C5E68EA29/pm_online/hs.xsl/index_ENU_HTML.htm Imprint SCHWING/STETTER http://www.schwing.de/en/ Imprint Products http://www.schwing.de/en/products/ TEREX https://www.terex.com/en/index.htm © 2017 Terex Corporation. All Rights Reserved.
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Equipment http://www.terex.com/en/products-services/equipment/index.htm •
•
thyssenkrupp https://www.thyssenkrupp.com/en/# thyssenkrupp AG © 2017 Products https://www.thyssenkrupp.com/en/products/ Volvo http://www.volvo.com/home.html Copyright AB Volvo 2017 Construction Equipment http://www.volvoce.com/global/en/
Process outline Construction plant and equipment, owned by the company, are assets with high return if selected, used, serviced and repaired properly. The guidelines of the manufacturers56 should be respected to the last detail. The company should: •
•
• •
•
•
• •
•
Search for the optimum solutions for each project (availability, production, specification, operational ease, price, spare parts, service, delivery time etc.) Use approved suppliers as specified in its relevant quality management system procedure Use standard makes and types of plant appropriate for its operations Follow the guidelines of the manufacturers, for operation, maintenance, repairs and HSE issues Construct proper facilities for the repair and service of its equipment, and the storage of spare parts Use licensed, trained and highly qualified plant managers, engineers, repairs & service supervisors, operators, mechanics and service personnel Use unique cost codes for each plant and equipment Use simple software packages in all processes related to the purchase, depreciation, use, service and repairs of plant and equipment Charge the equipment to the projects in a transparent, substantiated and fair manner
Construction plant and equipment are either industrial installations -such as concrete or asphalt plants-, which require mobilisation and demobilisation at the sites of operations or movable pieces of equipment like trucks, dozers, excavators, cranes, welding sets, etc. The selection of plant and equipment depends, mainly, on the type and magnitude of 56
As an example please refer to “Caterpillar Performance Handbook” at: http://forms.westrac.com.au/caterpillar-performance-handbook/ © 2017 WesTrac Page 91 of 495
the projects that the company undertakes to construct. Their number, size and type depend on the required total quantity to be produced and the time schedule of the project. Once these two factors are established the plant department -from top to bottomundertakes the responsibility to mobilise the required plant so that the operations will commence as scheduled. The required licenses will be obtained from the local authorities as stipulated by the law and the contract conditions. At tender stage, once the list of required equipment is finalized and agreed, the plant manager will review possible availabilities from the existing fleet and prepare a requisition for new orders that will be reviewed and approved by the authorised signatories as per company procedures. Available equipment is usually not new. Each one of them has a “maintenance and repairs´” record and a consequent availability factor that should be taken into consideration together with the local conditions of the project (availability of spare parts etc.) or the list of requirements will definitely fall short. The purchase should proceed only when the contract has been signed, and not before, as there is always a high risk of a project cancellation in the periods between the letter of intent receipt, the contract signature and the contract commencement. During the course of a project construction, the utilization of the equipment should be monitored closely and preventive action should form a standard procedure, as proper operation and maintenance lower the costs, minimize repairs, increase the availability and extend the economic life of any plant or equipment. Maintenance and repairs’ spare parts should be available in advance at the stores of the construction site. Equipment daily time cards -serving as a daily schedule for the next day- are prepared by the transportation supervisor -activity, cost centre, starting time & estimated duration- at the end of each working day and given to the operator, first thing, every morning. The equipment daily time cards are filled -working & idle time per cost centre- by the operator and agreed with the supervisor of the works at the end of each working session. The operator hands over the daily time card to the transportation supervisor at the end of the working day for further processing and reports any noticed problems with the works or malfunctions of the machine. The equipment are charged (internal rental rates - hourly or monthly / working or idle) to specific activity cost centres -as indicated in the agreed daily time cards- by the plant engineer with the consent of the task owner of the activity, on a daily basis.
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Equipment under repair or maintenance or when released from the site are not charged to the project. Equipment mobilisation and demobilisation expenses are charged to the project. Equipment drivers, operators’ costs are charged to the project -working & idle time at the same cost centres as the machine they operate- for the period of their presence at the site. Fuels, consumables, spare parts, repair and maintenance costs are charged to the equipment. When requirements for additional equipment arise during the construction or maintenance periods of a project the plant manager will inform the company accordingly. The company may rent equipment from the market if it serves time and cost criteria. Monthly charges’ statements for all plant & equipment per cost centre -based -on the equipment daily time cards- will be prepared by the plant manager, checked by each task owner, reviewed by the construction manager and approved by the site or the project manager, for the period of the project. The plant manager is the ownership representative for the project plant and equipment and he/she should be authorised to act accordingly. To avoid disputes in plant rental charges the relevant company procedures should be respected to the last detail. However, in cases of disputes, the plant manager and the project manager will finally approve or reject the charges. The plant charges, once approved, will be sent to the technical and financial departments for their necessary actions. References •
•
•
International Organization for Standardization (ISO) “ISO/TC 195 - Building construction machinery and equipment” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=54540 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 96 - Cranes” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=50642 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 127 - Earth-moving machinery”
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http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=52172 © All Rights Reserved A.9.2
Spare parts, tyres, fuels & lubricants
Spare parts, tyres, fuels & lubricants are required constantly for all plant & equipment, at all times and they should be available at all work places. In this respect, their availability, at the site of works, is as important as is the availability of equipment. A specific work instruction should be dedicated to the planning, procurement, transportation, storage and usage of spare parts, fuels & lubricants for every project of the company. A.9.2.1
Spare parts & tyres
Plant & equipment spare parts are required and utilized either for service or for repairs. Servicing of equipment should be considered as a “no deviations” compulsory process that will extend the “cost-effective life” of the equipment and minimize its repairs. Procurement of spare parts & tyres should be standardized. •
Service spare parts are procured according to the service program of each piece of equipment. The schedule of services is based on the manufacturer’s maintenance manual, the working hours of the equipment and the program of works. Depending on the availability of spare parts in the local market and the anticipated utilization of each piece of equipment, the plant department should safeguard that the equipment will be serviced on time by ordering the required service spare parts well in advance.
•
Repairs spare parts are not easy to procure on time and without waste. This is a critical and costly issue especially for heavy civil engineering projects, many of which are being built away from appropriate spare parts markets. It is certain that availability of equipment and surplus spare parts go together. The question is “how much money should be wasted so that there are no delays caused by broken down equipment?” This is not easy to answer. The plant manager, in this case, is the most valuable officer.
•
Tyres are procured according to the utilisation plan of each equipment/vehicle.
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The experience and capabilities of the plant department officers, managers and especially the plant director is the critical factor for the availability of spare parts and tyres when they are required at the site of works and the minimization of waste leftovers at the end of the project. The experience and capabilities of the operators are also critical factors for the successful utilization and the reduction of damages (quantity and severity) of every piece of plant or equipment. Storage should be standardized. •
•
The spare parts should be coded (warehouse-position codes) and stored properly, by make and type of equipment, in well-designed and built warehouses. Tyres should be stored in a separate appropriate warehouse.
Specific work instructions should describe in detail the whole process of spare parts scheduling, procurement, transportation, storage and utilization. A.9.2.2
Fuels & lubricants
Fuels used for the plant and equipment are usually diesel, petrol or gas. Depending on the country legislation, regulations, codes & standards and the contract conditions, the contractor may construct its own fuel station at the site premises. • •
This facility would make refuelling a simple daily routine. Fuel tracks may refuel heavy equipment at the site of works.
Standard lubricants should be used, as specified by the manufacturer. The storage and use of fuels and lubricants is hazardous and extremely dangerous. •
•
These operations should comply with the manufacturer’s materials safety date sheets (MSDS) guidelines/instructions/warnings without fail. Appropriate and continuous training is required for all operatives.
A specific work instruction should be dedicated to these operations. References (indicative list) •
•
Legislation Government UK Statutory Instruments 2014 No. 1637 Health And Safety “The Petroleum (Consolidation) Regulations 2014” http://www.legislation.gov.uk/uksi/2014/1637/contents/made © Crown copyright Health and Safety Executive (HSE) UK
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•
•
•
•
•
“Chemical warehousing” http://www.hse.gov.uk/pubns/priced/hsg71.pdf © Crown copyright 2009 Health and Safety Executive (HSE) UK “Warehousing and storage” http://www.hse.gov.uk/pubns/priced/hsg76.pdf © Crown copyright 2007 Health and Safety Executive (HSE) UK “Dangerous substances and explosive atmospheres” http://www.hse.gov.uk/pubns/priced/l138.pdf © Crown copyright 2013 Health and Safety Executive (HSE) UK “Safe use and handling of flammable liquids” http://www.hse.gov.uk/pubns/priced/hsg140.pdf © Crown copyright Health and Safety Executive (HSE) UK “Controlling fire and explosion risks in the workplace” http://www.hse.gov.uk/pubns/indg370.pdf © Crown copyright ASTM International Annual Book of ASTM Standards “Section: 5 Petroleum Products, Lubricants, and Fossil Fuels” http://www.astm.org/BOOKSTORE/BOS/section5.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved.
A.9.3
Plant service establishments
Typical sections of a plants department, which services and repairs company owned plant are indicated here-below (titles only). The company should standardize processes, procedures, establishments’ layouts, resources and operations for each type of project. Indicative list of sections •
•
Repair workshops Body shop Electrical & electronics Engine room Heavy equipment bay Heavy trucks bay Hydraulics Lifting equipment Light equipment bay Light vehicles bay Tyres shop Service bays Heavy equipment Light equipment
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Light vehicles Mobile service units •
•
•
•
Transportation office Equipment parking Equipment placement Transport Personnel Materials Equipment Logistics Routine First aid Emergencies Evacuations Production units Borrow pits Quarries Crushers Asphalt plants Concrete plants Fuel stations Central Mobile refuelling units Spare parts stores Electrical Electronics Engines Heavy equipment Light equipment Lubricants Paints Tyres
References (indicative list) •
•
•
Health and Safety Executive (HSE) UK “Health and safety in construction” http://www.hse.gov.uk/pubns/priced/hsg150.pdf © Crown copyright 2006 Health and Safety Executive (HSE) UK “Vehicles at work” http://www.hse.gov.uk/workplacetransport/index.htm © Crown copyright Health and Safety Executive (HSE) UK “The safe use of vehicles on construction sites” http://www.hse.gov.uk/pubns/priced/hsg144.pdf
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•
•
© Crown copyright 2009 Health and Safety Executive (HSE) UK “A guide to workplace transport safety” http://www.hse.gov.uk/pubns/priced/hsg136.pdf © Crown copyright Heavy Equipment http://www.heavyequipments.org/ © 2016 - 2017 Heavy Equipment. All Rights Reserved on Internet, Online Heavy Equipment
A.10
Installation materials, plant & equipment
Materials incorporated in the permanent works of a construction project may be classified as natural, produced at the site or manufactured. A.10.1
Natural materials
A few naturally occurring materials, commonly used in a construction site, are indicated here-below (titles only). • • • • •
Air Gravel, sand, silt & clay Rocks Water Wood
The company should standardize licensing, production and operation processes, procedures, resources, specification and quality control, for the provision and use of each material. Please see also chapters “E.11.1 Project natural materials” and “I.2.5 Quarries borrow-pits”.
&
References (indicative list) •
•
U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION Earth Sciences and Research Laboratory Geotechnical Research Technical Service Centre Denver, Colorado 1998 “EARTH MANUAL, PART I, Third Edition” https://www.usbr.gov/tsc/techreferences/mands/mands-pdfs/earth.pdf United States Government Printing Office Denver: 1998 For sale by the Superintendent of Documents, U. S. Government Printing Office Washington, DC 20402 American Association of State Highway and Transportation Officials (AASHTO)
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•
•
“Standard Specifications for Transportation Materials and Methods of Sampling and Testing, and AASHTO Provisional Standards” https://bookstore.transportation.org/collection_detail.aspx?ID=149 © American Association of State Highway and Transportation Officials ASTM INTERNATIONAL Annual Book of ASTM Standards “Section: 4 Construction” http://www.astm.org/BOOKSTORE/BOS/section4.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved. CIRIA, CUR, CETMEF “The Rock Manual. The use of rock in hydraulic engineering (second edition) (C683)” ISBN: 978-0-86017-683-1 http://www.ciria.org/ItemDetail?iProductCode=C683&Category=BOOK © CIRIA 2016
A.10.2
Produced materials
Typical produced materials are indicated here below. • • • • •
Asphalt Concrete Concrete precast elements Crushed aggregates Screened or mixed courses
The company should standardize licensing, production and operation processes, procedures, resources, specification and quality control, for the provision and use of each material. See also chapters: • •
E.11.2 I.2.4
Project produced materials Production plant establishments
References (indicative list) •
•
•
American Association of State Highway and Transportation Officials (AASHTO) “Standard Specifications for Transportation Materials and Methods of Sampling and Testing, and AASHTO Provisional Standards” https://bookstore.transportation.org/collection_detail.aspx?ID=149 © American Association of State Highway and Transportation Officials ASTM International “ASTM Volume 04.02 Concrete and Aggregates” http://www.astm.org/BOOKSTORE/BOS/0402.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved. ASTM International “ASTM Volume 04.03, June 2016 Road and Paving Materials; Vehicle-Pavement Systems” https://www.astm.org/BOOKSTORE/BOS/TOCS_2016/04.03.html
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•
•
•
Copyright © 1996 - 2017 ASTM. All Rights Reserved American Concrete Institute (ACI) “SP-002(07): Manual of Concrete Inspection” https://www.concrete.org/store/productdetail.aspx?ItemID=SP22007 All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “311.5-04: Guide for Concrete Plant Inspection and Testing of Ready-Mixed Concrete” https://www.concrete.org/store/productdetail.aspx?ItemID=311504&Format=DO WNLOAD All material © Copyright 2017, American Concrete Institute International Code Council (ICC) “Concrete Manual: Based on the 2015 IBC and ACI 318-14 “ http://shop.iccsafe.org/concrete-manual-based-on-the-2015-ibc-and-aci-318-141.html Privacy Policy Legal
A.10.3
Procured materials, plant & equipment
The company should: •
•
• • • •
• •
Search for the optimum solutions for supply of manufactured materials57 of each project (availability, specification, price, production process58, manufacturing time, transportation, inspection, installation, spare parts, service etc.) Use approved suppliers59 as specified in its relevant quality management system procedure, Use suppliers60 as specified in the client’s list of approved suppliers, Respect the terms & conditions of the contract, Follow the requirements of the design, Abide with the applicable legislation in the countries of manufacturing as well as in the country of installation, Comply with the specified codes & standards, Inspect all processes from the preliminary design to the final handing over.
There are thousands, if not millions, of companies around the globe producing materials, plant and equipment that are incorporated in the works of a construction project. It is therefore meaningless to even attempt to refer to any of them.
57 58
59 60
“material” stands also for “plant” and “equipment” or “manufactured product” “production process” stands for “design, supply of raw materials, supply of components, manufacturing, assembly, testing, pre-commissioning & commissioning”, as required “supplier” stands also for “manufacturer” or “producer” or “vendor” Construction Products Association (CPA) UK http://www.constructionproducts.org.uk/ © Copyright © 2015. All material is copyright of Construction Products Association and must not be used without express written permission. Page 100 of 495
A complete database of approved manufacturers or suppliers and their associated products should be prepared, served, reviewed, renewed and maintained by the materials department. A standard coding system should be used - please refer to chapter “A.8 Cost coding systems”. Standard procurement management procedures should specify, in detail, all ordering, production and control phases and requirements of the supply chain from the production of the list of materials and until the materials finally are incorporated in the works and commissioned. Please refer to “Chapter G Project procurement of manufactured materials”.
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Chapter B The construction industry projects A wide spectrum of projects is produced by the construction industry. An indicative list of types of projects and common project delivery methods are outlined herewith. B.1
Types of projects
Indicative list of types of projects: Buildings • • • • • • • • • • •
Hospitals Hotels Residential buildings Commercial buildings Industrial buildings Military buildings Auditoria Theatres Museums Stadia Other
Chemical & process • • • • •
Chemical Industries Energy Nuclear Oil & gas Other
Civil • • • • • • • • • • • • • •
Airports Asphalt works Bridges Buildings Coastal and maritime engineering Concrete works Dams Dredging Earthworks Hydraulic structures Infrastructure Irrigation, drainage and river engineering Motorways Pipelines
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• • • • • • •
Ports and marine works Railways Roads Sewage networks Tunnels Water networks Other
Electrical • • • • • •
Power generation systems Very high voltage (VHV) systems High voltage (HV) systems Medium voltage (MV) systems Low voltage (LV) systems Other
Instrumentation, IT & telecommunications • • • •
• • •
•
Communication systems Computer systems Control systems Information systems Internet Intranets Measurement systems Operating systems Telephony Landlines Mobile Satellite Wireless Other
Mechanical • • • • • •
Energy Industrial Oil & gas Sewage networks Water networks Other
Different types of projects require different organizations, logistics, work teams, materials and equipment but the same management systems, principles, processes and courses of action. References (indicative list of engineering handbooks) •
Jonathan T. Ricketts, M. Kent Loftin, Frederick S. Merritt
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•
•
•
•
•
B.2
“Standard Handbook for Civil Engineers” https://www.accessengineeringlibrary.com/browse/standard-handbook-for-civilengineers#fullDetails Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. Eugene A. Avallone, Theodore Baumeister III, Ali Sadegh “Marks’ Standard Handbook for Mechanical Engineers” https://www.accessengineeringlibrary.com/browse/marks-standard-handbookfor-mechanical-engineers-eleventh-edition Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. H. Wayne Beaty, Donald G. Fink “Standard Handbook for Electrical Engineers” https://www.accessengineeringlibrary.com/browse/standard-handbook-forelectrical-engineers-sixteenth-edition Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. Neil Sclater “Electronic Technology Handbook“ https://www.accessengineeringlibrary.com/browse/electronic-technologyhandbook#fullDetails Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. James G. Speight “Chemical Process and Design Handbook“ https://www.accessengineeringlibrary.com/browse/chemical-process-anddesign-handbook#fullDetails Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. Hwaiyu Geng, CMfgE, PE “Manufacturing Engineering Handbook” https://www.accessengineeringlibrary.com/browse/manufacturing-engineeringhandbook-second-edition#fullDetails Copyright © McGraw-Hill Global Education Holdings, LLC. All rights reserved. Project delivery methods
A project delivery method is a system used by an agency or owner for organizing and financing design, construction, operations, and maintenance services for a structure or facility by entering into legal agreements with one or more entities or parties61. Common project delivery methods include: The traditional approach for construction projects consists of the appointment, by the owner, of a designer on one side and a contractor on the other side, while the owner, with its own resources, or with an appointed consultant, or both, supervise the design and the construction works. •
61
The traditional approach allocates, typically, the project production responsibilities to where they should be, provided, that these conditions are Wikipedia “Project delivery method “ https://en.wikipedia.org/wiki/Project_delivery_method Privacy policy Page 104 of 495
clearly specified in the contract documents. •
•
The owners and the consultants/designers, who draft the tender documents, tend to pass the responsibility of the design and the supervision of the works to the contractor, while they are only monitoring the construction, in well-worded paragraphs where the contractor, who is usually eager to sign the contract, needs to read between the lines in order to safeguard its rights. This is a most critical issue in the pre-contract signature negotiations with the client. Its just and fair resolution requires high professional code of ethics of all parties and that is a rare opportunity to experience.
The design-build project delivery system answers the client's wishes for a single point of responsibility in an attempt to reduce risks and overall costs. •
•
It is now commonly used in many countries. Forms of contracts applicable to this project delivery system are widely available.
The EPC (engineering, procurement and construction) is a particular form of contracting arrangement used in some industries where the EPC contractor is made responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the end-user or owner. The Public–private partnership (PPP) is a cooperative arrangement between one or more public and private sectors, typically of a long-term nature. The Private finance initiative (PFI) is a way of creating "public–private partnerships" (PPPs) by funding public infrastructure projects with private capital. References (indicative list) •
•
•
62
63
64
International Federation of Consulting Engineers (FIDIC)62 Contracts and agreements http://fidic.org/bookshop Copyright The Joint Contracts Tribunal (JCT)63 http://www.jctltd.co.uk/ © 2017 The Joint Contracts Tribunal Limited. New Engineering Contract (NEC)64 International Federation of Consulting Engineers (FIDIC) http://fidic.org/ Copyright © FIDIC 2015 The Joint Contracts Tribunal Limited (JCT) http://www.jctltd.co.uk/ © 2017 The Joint Contracts Tribunal Limited. NEC https://www.neccontract.com/ Page 105 of 495
•
•
•
•
•
65
Contracts and associated documents NEC3 contracts https://www.neccontract.com/Products/Contracts NEC4 contracts https://www.neccontract.com/NEC4-Products Copyright © NEC® Contracts 2014, all rights reserved. Design-Build Institute of America (DBIA)65 Design-build contracts and agreements https://www.bnibooks.com/dbia/products/dbia-contract-documents-and-forms Copyright © 2017 Public-Private Partnership in Infrastructure Resource Centre for Contracts, Laws and Regulations (PPPIRC) “Concessions, Build-Operate-Transfer (BOT) and Design-Build-Operate (DBO) Projects” http://pppirc.worldbank.org/public-private-partnership/agreements/concessionsbots-dbos Copyrights © 2014 World Bank Group, All Rights Reserved. Asian Development Bank (ADB) “Public-Private Partnership (PPP) Handbook” https://www.adb.org/sites/default/files/institutional-document/31484/publicprivate-partnership.pdf © 2017 Asian Development Bank United Kingdom House of Commons Treasury Committee “Private Finance Initiative” “Seventeenth Report of Session 2010–12 “ https://www.publications.parliament.uk/pa/cm201012/cmselect/cmtreasy/1146/1 146.pdf HC 1146 Published August 2011 by authority of the House of Commons Ron Price “Integrated Principles of Construction Management” https://www.youtube.com/watch?v=kfcwK2z9ZO8 Copyright
Copyright © NEC® Contracts 2014 Design-Build Institute of America (DBIA) http://dbiabooks.com/index.asp Copyright © 2017 Page 106 of 495
Chapter C Project tender stage An EPC (engineering, procurement and construction) project in the oil & gas industry66 will be studied herewith. An EPC contractor is responsible for the engineering design of the works, its procurement and subsequent construction works and then, once ready for operations, the handing over of the project to the owner so that it may operate the facility. C.1
Notification to tender
The marketing department in each country of operations informs the country manager of every published notification to tender within the scope of services of the company. The country manager studies the case and decides whether the company will obtain/buy the tender documents. If required by the company procedures he/she requests, in writing, the consent or the approval of the discipline director. C.2
Decision to participate in a tender
Depending on the size, the specifics of the project and the applicable company procedures, the country manager decides whether the company will participate and if the estimate will be prepared locally (for minor projects) with a notification to the head office. If the decision to participate is above his/her authorities -major and mega projectsthen he/she forwards the tender documents to the commercial, technical & controls director. The commercial, technical & controls director and the discipline director will collect and analyze all necessary information related to the project. Specifics on: 66
Håvard Devold “Oil and gas production handbook An introduction to oil and gas production, transport, refining and petrochemical industry” ISBN 978-82-997886-3-2 https://library.e.abb.com/public/34d5b70e18f7d6c8c1257be500438ac3/Oil%20an d%20gas%20production%20handbook%20ed3x0_web.pdf?xsign=HD4FzPPPExNr3Jsu2tZPb9RAbAHEAS6KS7CdnKl%2fQVMxgzB3BQ9jQ MVA2eVlxiec © 2006 - 2013 ABB Oil and Gas Page 107 of 495
• • • • • • • • • • •
The country The client Supervision Competition Lobbying Investment requirements Financing Associated hazards & risks Security Availability of sufficient resources Technological expertise
are required. The decision to participate (alone or in a joint venture scheme67) will require controlled and confidential communication of any or all68 of the following executives: • • • • • • • • • • •
Chief executive officer Chief financial officer Discipline directors Commercial, technical & controls director(s) Quality director Environmental, occupational health & safety director(s) Plant director Marketing manager Chief estimator Country manager Project manager (if appointed)
It is recommended that, for major or mega projects, a project manager be nominated at this stage. The chief estimator and the nominated and authorised -in writing- project manager (major or mega projects) are jointly appointed as the responsible officers for the preparation of the submission package. The chief estimator reports to the commercial, technical & controls director while the project manager to the respective discipline director. A tender cost code is initiated in the company register. All costs are charged to the tender cost centre. C.3
Appointment of the team to prepare the submission package
Members of the team to prepare the submission package, as required, depending on 67 68
Please see chapter “H.1.2 Partners - if in joint venture” A specific company procedure or work instruction on tendering should detail the process Page 108 of 495
the size and the specifics of the project, are: • • • • •
• • • • • • • • •
Project manager (if nominated) Chief estimator Chief quantity surveyor Design manager Discipline engineers Architect Civil Mechanical Electrical Instrumentation Telecommunications Process Materials Estimator Technical & controls department engineer Procurement department engineer Financial department officer Quality department engineer Occupational health & safety department engineer Environmental department engineer Plant department engineer Human resources officer
Members of the team may operate from different locations around the globe. This option depends on the magnitude of the project and the related qualifications, specialties and availability of the team. The chief estimator should be responsible to obtain the required consent from those concerned and establish means of communication and reporting as per relevant company procedure(s). C.4
Preparation of the tender package
The chief estimator sets up a kick-off meeting or teleconference with the members of the team with the following agenda: • • • • • • • • • • •
Country Local authorities Regulatory authorities The client The project Applicable legislation Applicable regulations Applicable codes & standards Quality requirements HSE requirements Hazards & risks
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• • • • •
• • • • • • • •
Distribution of the tender documents Delegation of responsibilities/authorities Establishment of tender preparation milestones Quantities take-offs Clarifications’ process on the tender Correspondence Meetings Site investigation Local conditions Weather conditions Licences Land ownership Project ownership Permits/approvals Design Rights of way Quarries Borrow pits Waste disposal Other (as required) Financing Selection of designers Selection of subcontractors Selection of suppliers Request, receipt & evaluation of quotations Preparation of the level I schedule Preparation of the cost estimate Compilation of the technical part of the package Compilation of the financial part of the package
Ownership of tasks, interim and final deadlines, documents production, progress reporting and dates of follow-up meetings are decided. A risk management plan is compiled. The nominated project manager reviews all information before inclusion in the submission package files. All documents bear the cost code of the tender and are controlled; they are produced, distributed and stored through the company’s local intranet system as provided in the relevant company procedures. The chief estimator co-ordinates the efforts, collects all data and compiles the tender package. C.5
Final review and submission of the complete tender package
The chief estimator sets a final meeting or teleconference with the members of the tender team for a last and thorough checking of the submission package before it is presented to the management for final review and approval.
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C.5.1
Approval of the tender package
The chief estimator sets a final management review meeting with the following participants: • • • • • • • • • •
Chief executive officer Chief financial officer Discipline director(s) Commercial, technical & controls director(s) Quality director Environmental, occupational health & safety director(s) Plant director Chief estimator Country manager Project manager
The package is thoroughly reviewed and the management is informed of any risks and/or constraints that arose during the course of the tender process or are envisaged for the project. The risk management plan is approved. The final price and the construction period -if it is not fixed- are decided along with any negotiable or non-negotiable conditions that the company decides to include in the package -legal, regulatory, contractual, quality, technical, financial- and present it to the client for discussion. If corrections are required then the chief estimator will finalize the package. The required bid bond will be obtained from -an approved by the client- banking institution and inserted in the package. The final, complete, package is signed by the authorised company representative who chaired the final management review meeting. Copies are produced and distributed, as required. C.5.2
Submission of the tender package
The duly signed, controlled, final package is submitted to the client, on time, as stipulated in the tender documents. The client will inform the participating companies of the tender evaluation process and corresponding dates in due course. C.5.3
Negotiations, clarifications on the tender package
The tender documents and/or the applicable legislation should describe the legitimate process of the proposals/offers consideration, evaluation, and acceptance or rejection.
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Depending on the size and the magnitude of the project, the qualifications and the number of the participating contractors, this phase may be a short or a very long lasting period. A common outline process is indicated herein. •
•
•
•
•
•
•
•
•
•
•
•
•
The client decides on the steps and the deadlines of the evaluation process and informs the contractors accordingly. The client disqualifies those contractors whose packages are not considered as complete or acceptable according to the tender documents. The client may request certain clarifications for the technical part of the offer proposal and conditions- before the financial offer is made public. Correspondence will be exchanged and full-scale meetings [client & consultant(s) (first party) and contractor & designer(s) (second party)] will take place until the client receives satisfactory justifications. The client may disqualify those contractors whose technical proposal is considered as not acceptable. The decision should be fully substantiated as it may initiate claims and longlasting legal proceedings. Contractors who are disqualified may file a complaint as stipulated in the tender documents and/or the applicable legislation. The client should reply in writing. The deadlines of these actions -complaint/decision- are usually very strict and failure to meet any of them -by either side- cancels the deed. The technical proposals -in case of creative artistic or innovative projects- may prove to be difficult to evaluate or may also be the only reason for the selection of an EPC contractor. When all the complaints are accepted or rejected then the client invites those contractors that submitted acceptable technical proposals, to a meeting, unseals the packages publicly and informs the contractors of the financial offers -price and conditions. The client may negotiate the financial part of the offer -price and conditionswith any or all of the participating contractors until they select the preferred contractor. Again, the decision should be legitimate and fully substantiated as it may initiate claims and long-lasting legal proceedings.
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•
69
70
Note: For all projects, national or international, the “corruption process”69 can start/occur at any of its phases, in various ways70.
Please see: Global Infrastructure Anti-Corruption Centre (GIACC) http://www.giaccentre.org/ “Corruption Information How corruption occurs” http://www.giaccentre.org/how_corruption_occurs.php © 2017 GIACC Please see: Organisation for Economic Co-operation and Development (OECD) “OECD Foreign Bribery Report An Analysis of the Crime of Bribery of Foreign Public Officials” https://www.oecd.org/corruption/oecd-foreign-bribery-report-9789264226616en.htm © 2017 Organisation for Economic Co-operation and Development Page 113 of 495
Chapter D Main contract(s) preparation & signature This stage is significant as it forms the basis of a successful or disastrous project. The draft contract’s inconsistencies, omissions, irregularities or discrepancies should be corrected and a fair document should be produced, agreed and signed. The contract binds all concerned parties in a common purpose which is the legitimate production of the project in time, within budget and to agreed regulations, specifications and standards. Changes are extremely difficult, if not impossible, after the contract’s signing. D.1
Issuance of the letter of intent
The client will issue a letter of intent to the successful tenderer with the draft contract documents attached. D.2
Internal contract review
The contractor will review the draft contract documents as specified in its management system procedures. The members of the team that produced the tender will thoroughly review the draft contract documents’ package, compare it with the submission package and the agreements made during the negotiations at tender stage, and prepare a report for any “changes/additional terms or conditions” -if any- required by the client. D.3
Contract(s) finalization with the client
If the draft documents fully comply with the tender documents and the agreed amendments between both parties during the negotiations’ process, then the contract will be signed by both parties’ authorised signatories, at the earliest convenience. If, for any reason, the client has inserted additional or different requirements than those specified in the tender documents or agreed during the negotiations’ period then a new series of negotiations commences until both parties come to a final agreement for each and all the terms and conditions of the contract. D.3.1
Correspondence
The contactor should notify, in writing, the client of all inconsistencies that they have noticed in the draft contract documents. D.3.2
Meetings
The client may invite the contractor to meet and discuss the issue. Meetings will be scheduled and both parties should come to an agreement on each
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and all disputed terms and conditions of the contract. If the negotiations reach a dead-end, the client may dictate the acceptance of the disputed terms in a “take it or leave it” stance. This is not unusual in the construction industry. In this case, the top management of the contractor should meet to review the issue and accept or reject the proposal. The decision should be legitimate and fully substantiated as it may initiate claims, destruction of client/contractor relations, and long-lasting legal proceedings. D.3.3
Final package
When the final contract documents’ package is agreed by both parties then the client will send the final contract documents71 to the contractor for their final review and acceptance and invite the contractor to present the required bank guarantees advance and performance. D.3.4
Guarantees, insurances
The contractor should obtain bank guarantees72 from insurance companies or banking institutions that are acceptable to the client, according to the contract conditions and the applicable legislation. If, for any reason, the contractor cannot obtain the required performance guarantee then the client may cancel the whole process and confiscate the tender bond. Additional legal proceedings may be initiated as per applicable legislation and the tender conditions. “Contractors' all-risk insurance” is a policy that covers all risks normally associated with a construction project and is required by the contract documents. Various other insurances73 may be obtained by the contractor -outside its contractual
71
72
73
Lesson learned. In cases when the negotiations have been conducted in a certain language and the contract to be signed is written in another language, then the final contract documents should be checked again, word by word, versus the agreed package. A hard fought negotiations round in English, for a major project, has been intentionally ignored by the external contract advisor of the client and the original draft contract -without any of the agreed amendments- was sent to the contractor in the national language. The contractor did not accept to sign it, and informed the client accordingly. The client -who stated that they had no ideareleased the external advisor and the contract was signed as revised/agreed. Wikipedia “Performance bond” https://en.wikipedia.org/wiki/Performance_bond Privacy policy Designing Buildings Wiki “Insurance for building design and construction” Page 115 of 495
obligations- depending on risk assessments that should be performed, at tender stage so that their expenses are included in the total estimated cost of the project, taking into consideration all conditions/risks related to the project. D.3.5
Contract(s) signature with the client
The final contract documents are signed and stamped by authorised signatories of both parties. The contract is registered with the required authorities as specified in the applicable legislation and the contract conditions. The original contract, with its registration receipts, should be send to the library of the company, where a specific file is opened for the project. It is worth mentioning that a contract signature is not the end of the road, it is merely the beginning. A construction project requires the best co-operation between all related parties. In this respect, the final contract documents should satisfy the prospects of both parties. Please refer to ISO “Quality management principles”74; principles 1 (contractor) and 7 (client). D.3.6
Project dossier
The chief estimator will prepare a basic project dossier with all the information and documents that have been made known or produced at tender stage and are available for the project and hand it over to the project manager. The contents of the dossier will be presented, analysed and discussed in a joint session of the tender and the project management teams, that will be chaired by the discipline director, in due time, when all the members of the project management team have assumed duties and are familiar with their task ownerships. The dossier will serve as a company guideline/index for the project management plan and the project thesaurus dossier. The dossier will be enriched and completed by the project management team, as they will deem appropriate, during the course of the project.
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http://www.designingbuildings.co.uk/wiki/Insurance_for_building_design_and_con struction © Designing Buildings Ltd. 2017 ISO International Organization for Standardization “Quality management principles” http://www.iso.org/iso/pub100080.pdf © ISO 2015 All rights reserved Page 116 of 495
Proposed indicative structure: 1.
The project
1.1. 1.2. 1.2.1. 1.2.2. 1.2.3. 1.2.4. 1.2.5. 1.2.6. 1.2.7. 1.2.8. 1.2.9. 1.3. 1.3.1. 1.3.2. 1.3.3. 1.4. 1.4.1. 1.4.2. 1.4.3. 1.4.4. 1.4.5. 1.4.6. 1.4.7. 1.4.8. 1.4.9. 1.4.10. 1.4.11. 1.4.12. 1.5. 1.5.1. 1.5.2. 1.5.3. 1.5.4. 1.5.5. 1.5.6. 1.5.7. 1.5.8. 1.5.9. 1.5.10. 1.5.11. 1.6. 1.6.1. 1.6.2. 1.6.3. 1.6.4.
Legal issues Description of the project Title of the project, reference code, issue number and date of issue Owner/client Designer (s) Supervising engineer(s) Contractor(s) Location Commencement date Duration, and Value of the project Scope of the project Project outline Project work breakdown structure Project bill of quantities Project inputs Contract documents Applicable legislation Applicable standards & specifications Applicable construction industry codes of practice Design inputs and outputs Statutory and regulatory requirements Other requirements Project estimate Company quality management system requirements Company environmental system requirements Company occupational health & safety requirements Subcontractors' documents Project milestones Definite start and completion dates Design, procurement and construction tasks Handover milestones Pre-commissioning and commissioning processes Formal acceptance procedures and testing Performance monitoring Maintenance period Operation period Liability period Close down and cease operations phase Termination phase including disposal of residual assets (liabilities) Project objectives Customer satisfaction Social responsibility Legal issues Project delivery on time, to cost and to specifications
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1.6.5. Project codes 1.6.6. Productivity factors equal to or above company norms 1.6.7. Constructability 1.6.8. Improved utilization of resources 1.6.9. Human resources development 1.6.10. Quality planning, assurance and control 1.6.11. Environmental protection 1.6.12. Health & safety of employees, visitors and third parties 1.6.13. Welfare of personnel 1.6.14. Security of information 1.6.15. Security of the project 1.6.16. Effective risk management 1.7. Local conditions 1.7.1. Location co-ordinates 1.7.2. Maps, photos, videos 1.7.3. Terrain 1.7.4. Distances from nearest camp(s) 1.7.5. Nearest inhabited area(s) 1.7.6. Competent authority 1.7.7. Interested parties 1.7.8. Nearest hospital 1.7.9. Nearest police station 1.7.10. Nearest fire-brigade 1.7.11. Water sources 1.7.12. Local food products 1.7.13. Electricity 1.7.14. Communication networks 1.7.15. Nearest airport 1.7.16. Nearest sea port 1.7.17. Roads' network 1.7.18. Public transport 1.7.19. Social affairs 1.7.20. Other 1.8. Weather conditions (official records on): 1.8.1. Extreme conditions 1.8.2. Temperature 1.8.3. Humidity 1.8.4. Winds 1.8.5. Waves 1.8.6. Air-born particles 1.8.7. Rain 1.8.8. Snow 1.8.9. Other 2.
Project management
2.1. 2.2. 2.3. 2.3.1.
Legal issues Contractual issues Project organization Project organization chart
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2.3.2. Approved job description for each member of the project team 2.4. Project authorisations 2.4.1. Project manager 2.4.2. Site manager 2.4.3. Construction manager 2.4.4. Financial & administration manager 2.4.5. HSE manager 2.4.6. Quality manager 2.4.7. Technical & controls manager 2.4.8. Plant manager 2.4.9. Task owners 2.5. Communications 2.5.1. Internal 2.5.2. External 2.5.2.1. Contractual 2.5.2.2. Other 2.6. Project management plan 2.7. Project management team evaluation 3.
Contractual & legal
3.1. Legal team members 3.2. Legal team evaluation 3.3. Legal issues 3.3.1. Contract 3.3.1.1. Authorised signatories 3.3.1.2. Registration 3.3.1.3. Taxation 3.3.2. Client 3.3.3. Authorities 3.3.4. Subcontractors 3.3.5. Personnel 3.3.6. Permits 3.3.7. Court cases 3.3.8. Agreements 3.4. Contract management 3.4.1. Main contract documents 3.4.2. Subcontracts 3.4.3. Contract reviews 3.4.4. Contractual correspondence 3.4.5. Claims 3.4.6. Change management 4. 4.1. 4.2. 4.3. 4.4.
Resources Legal issues Personnel Plant & equipment Materials & equipment
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5.
Construction
5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 5.8. 5.9. 5.10. 6.
Legal issues Construction management plan Construction team evaluation Construction teams Production teams Construction procedures Construction method statements Construction records Production records Construction performance indicators Technical & controls
6.1. 6.2. 6.3. 6.4. 6.4.1. 6.4.2. 6.4.3. 6.4.4. 6.4.5. 6.4.6. 6.4.7. 6.4.8. 6.4.9. 6.4.10. 6.5. 6.6. 6.7. 6.8. 6.9. 6.10. 6.11. 6.12. 6.13. 6.14. 6.15. 6.16. 6.17. 7. 7.1. 7.2. 7.3. 7.4. 7.5.
Legal issues Technical & controls management procedures Technical & controls team evaluation Project inputs (follow-up) Contract documents Applicable legislation Applicable standards & specifications Applicable construction industry codes of practice Design inputs and outputs Statutory and regulatory requirements Other requirements Project estimate Company productivity norms Subcontractors' documents Constructability plan Project procedures Project schedules Project income Project costs Project budget Project debt Project cost control Project reports Monitoring and measurements criteria & methods Information & communication systems Project intranets Technical & controls performance indicators
Financial Legal issues Project financial management plan Financial team evaluation Project accounts Project financing
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7.6. 7.7. 7.8. 7.9. 7.10. 7.11. 7.12. 8.
Project budget -post mortem- reports Project income Project expenses Project -post mortem- cost control reports Profit & loss account Project financial reports Financial performance indicators Administration
8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 8.7. 8.8. 8.9. 8.10. 8.11. 9.
Legal issues Administration management procedures Administration team evaluation Client Project personnel Camps Offices Clinic Supplies Reports Records Quality
9.1. 9.2. 9.3. 9.4. 9.5. 9.6. 9.7. 9.7.1. 9.7.2. 9.8. 9.9. 9.10. 9.11.
Legal issues Project quality plan Quality team evaluation Quality acceptance criteria, procedures and ITPs Quality documents Quality control records Quality control laboratories Internal External Quality approvals Project completion criteria Close out procedure Quality performance indicators
10. Occupational health & safety 10.1. 10.2. 10.3. 10.4. 10.5. 10.6. 10.7. 10.8. 10.9. 10.10.
Legal issues Project OH&S management plan OH&S team evaluation OH&S records OH&S reports Emergencies reports Evacuation reports Clinic records Personnel health records OH&S performance indicators
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11. Environmental 11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 11.9. 11.10. 11.11.
Legal issues Project environmental management plan Environmental management team evaluation Project waste management plan Project emergency plans Environmental management records Environmental management reports Emergencies reports Evacuation reports Waste disposal Environmental performance indicators
12. Risks 12.1. 12.2. 12.3. 12.4.
Project risk management plan Risk management team evaluation Risk management records Risk management reports
13. Security 13.1. 13.2. 13.3. 13.4. 13.5.
Legal issues Project security plan Security team evaluation Project security records Security reports
14. Subcontractors (designers, construction subcontractors, suppliers) 14.1. Subcontractorâ&#x20AC;&#x2122;s information requirements dossier 14.1.1. Subcontractor's summary information and documents 14.1.2. Subcontractor's certificates 14.1.3. Subcontract agreement and its attachments 14.1.4. Authorisation of project manager/representative 14.1.5. Project financial management plan 14.1.6. Project quality plan 14.1.7. Project HSE plan 14.1.8. Project risk management plan 14.1.9. Project specific work procedures, work instructions and method statements 14.1.10. Organization chart 14.1.11. Job descriptions of key site personnel 14.1.12. Communication procedure 14.1.13. Schedule of works 14.1.14. Schedule of deliverables 14.1.15. Progress monitoring & reporting 14.1.16. Project management documentation
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14.1.17. Project resources 14.1.18. Mobilisation, demobilisation plan 14.2. Subcontractorâ&#x20AC;&#x2122;s performance dossier 14.2.1. Legal issues 14.2.2. Delivered product 14.2.3. Progress vs. schedule 14.2.4. Changes 14.2.5. Controls findings & observations 14.2.5.1. Punch list items 14.2.5.2. Deviations 14.2.5.3. Clarifications on findings 14.2.6. Corrective actions 14.2.7. NCR 14.2.8. Product certification 14.2.9. Progress reports 14.2.9.1. Daily 14.2.9.2. Weekly 14.2.9.3. Monthly 14.2.9.4. Intermediate 14.2.9.5. Final 14.2.10. Records 14.2.11. Lessons learned 14.2.12. Subcontractorâ&#x20AC;&#x2122;s evaluation 15. Preliminaries 15.1. 15.2. 15.3. 15.4. 15.5. 15.6. 15.7. 15.8. 15.9. 15.10. 15.11. 15.12. 15.13. 15.14.
Legal issues Permits & licenses Mobilisation plan Temporary access roads Project establishments Plant & equipment Quarries and borrow pits Production units Tools and equipment Information systems Communication systems Support services Transport facilities Demobilisation plan
16. Progress reports 16.1. 16.2. 16.3.
Daily progress reports Weekly progress reports Monthly progress reports
17. Management review reports 18. Closing-out dossier
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18.1. 18.2. 18.3. 18.4. 18.5.
Legal issues Closing-out report Task owners’ experience reports Management team members’ experience reports Project manager’s experience report
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Chapter E Project start-up This stage is one of the most critical steps of the project implementation and should be treated as such Wrong decisions (like the selection of an incompetent project manager) might prove to be non-recoverable Process outline •
Selection, approval and mobilisation of the project manager
•
Selection, approval and mobilisation of the quality manager
•
Allocation and furnishing of office space for the project management team at the company’s head office
•
Establishment of the project intranets
•
Establishment of communications’ systems
•
Selection, approval and mobilisation of the project management team
•
Selection and gradual mobilisation of the design, procurement and construction teams
•
Delegation of authorities
•
Review of the contract
•
Preparation of the: Project organization chart Project organization structure Project management plan Project detailed schedule Resources’ requirements Project budget Project quality plan Project HSE plan Project risk management plan Project security plan Project emergencies’ plan
•
•
Selection and approval of the designer(s) Preparation of a preliminary list of approved (by the company and/or the client) suppliers
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•
Planning & implementation of project kick-off meetings (internal & external)
•
Visiting the site(s)
•
Taking over of the site(s)
•
Planning of site mobilisation
•
Selection of the site mobilisation team
•
Commencement of site mobilisation
E.1
Project management
References (indicative list) •
•
International Organization for Standardization (ISO) ISO 21500:2012(en) “Guidance on project management” https://www.iso.org/obp/ui/#iso:std:iso:21500:ed-1:v1:en © All Rights Reserved The Chartered Institute of Building (CIOB) “Code of Practice for Project Management for Construction and Development, 5th Edition “ ISBN: 978-1-118-37808-3 http://eu.wiley.com/WileyCDA/WileyTitle/productCd-1118378083.html Copyright © 2000-2017 by John Wiley & Sons, Inc., or related companies. All rights reserved
Please refer also to Chapter “F.5 Project Management”, pages 310 to 319 of AMCI IAP - Part I - In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory E.1.1
Project manager
The project manager is the most valuable asset of a construction company at a project and should be respected, fully authorised and assisted in performing his/her duties, by all, from the chair of the board of directors to the last site worker. The selection of the right person for the position of project manager is of paramount importance. The selection of project managers should not be included in the scope of services of the human resources department. The project manager should be selected -internal company employees or external candidates- by the respective discipline director who will prepare a shortlist of acceptable candidates and submit it to the chief executive officer for approval. For mega or major projects, the short listed candidates may be interviewed by all the
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members of the executive committee in a joint session. A project manager may be nominated at tender stage, especially for mega or major projects, for obvious reasons, if available internally. Upon contract signature with the client, the following process is proposed for the mobilisation of the project manager: •
•
•
•
•
•
•
•
•
•
•
•
•
The particulars of the proposed project manager(s) are submitted to the client for approval. The client approves the project manager, as per its standing procedures and the contract conditions. The discipline director or the chief executive officer offers a new, fair and confidential, contract to the project manager. This contract should fully comply with the requirements of the management systems of the company, the project contractual terms and conditions and the applicable legislation at the countries of origin and operations. Part of the contract is the “task ownership agreement” that describes in detail the duties and the consequent authorities of the project manager, for the specific project. The contract is agreed and signed by both parties. The chief executive officer introduces the project manager to the members of the executive committee. The board of directors issues a “power of attorney” for the project manager to represent and act on behalf of the company in all matters related to the project, from its commencement and until the final handing over of the project to the client. The chief estimator hands over to the project manager the full package of documents that comprise the main contract as well as all the documents -or full and unlimited access to them- that have been produced at tender stage. The discipline directors -in person- perform special induction courses -for the project manager only- on the specifics of their departments and the management systems of the company. The discipline directors introduce the project manager to their departments’ managers. The project manager travels to the country of operations. The country manager informs the project manager on the specifics of the country, the operations of the company in the country, the structure of the head
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office and the company management systems in the country. The country manager introduces the project manager to the heads of the departments of the country head office.
•
The country manager introduces the project manager to the client’s project management team. An authenticated copy of the project manager’s “power of attorney” is handed over to the client.
•
Both parties visit the site.
•
Adequate -fully equipped- space office is allocated to the project, at the company or the country head office, for the sole use of the project manager and the project management team.
•
•
Secretariat, exclusive for the project, commences operations.
•
The project manager assumes duties.
E.1.2
Project management team
The project management team members should be able to share75: • • • • • • • • • • • • • • • • •
Commitment Dedication Efforts Experience Labour Information Knowledge Risks Solidarity Support Targets Team spirit Understanding Unity Values Views Work methods
in order to facilitate and strengthen their association for the duration of the project and succeed in their mission.
75
Cf. Thomas Reid Essays on the Intellectual Powers of Man, 1786, Vol. II, p.377, Essay VII, Of Reasoning, and of Demonstration, ch. 1: "In every chain of reasoning, the evidence of the last conclusion can be no greater than that of the weakest link of this chain, whatever may be the strength of the rest." https://archive.org/details/essaysonintellec02reiduoft Page 128 of 495
The members of the project management team will share the nightmare of a project failure or the benefits of its successful completion. Until the signature of the final handing-over certificate there is no thought of easiness or rest for this team76. E.1.2.1
Project management team members
A typical synthesis of a management team, for an engineering construction project, might be: • • • • • • • • • •
Project manager Site manager Construction manager Quality manager HSE manager Technical manager Controls manager Plant manager Financial manager Administration manager
Depending on the size and the magnitude of the project, jobs may be combined or separated and the team might be enlarged or reduced. Examples: •
•
•
Quality, environmental and occupational health & safety management jobs are combined under a “Quality, environmental, occupational health & safety manager” job Technical and controls management jobs are combined under a “Technical & controls manager” job Financial and administration management jobs are combined under a “Financial & administration manager” job
E.1.2.2
Selection of the project management team
The selection process may commence with the issuance of the letter of intent, or the signature of the contract, or the payment of the advance, or the opening of letter(s) of credit, depending on the contract, the client and the country conditions. In this respect the project manager, when appointed (if not at tender stage) will prepare a “project commencement risk assessment” and submit it to the executive committee for their consideration and approval. It is recommended that the team should be ready to assume duties on the date that 76
As the project is a means to an end, its successful completion usually means that the project management team members and all other project workers will, probably, loose their job. What a reward!! Page 129 of 495
the executive committee will decide, in a special session with the participation of the country and the project managers; the “project commencement risk assessment” as prepared by the project manager will be the only subject to be discussed in this meeting. •
•
This step may seem to be excessive but it has proven to be essential even for the survival of a company, in various cases. In two cases, I am aware of, the contracts of significant, for the size of the companies, major projects were cancelled, after their signature but before the opening of the required letters of credit, due to countries’ conditions, while the companies had decided to fully mobilise, trusting the assurances of their clients; the first company went bankrupt while the other suffered huge losses.
The quality manager will be appointed, as a priority, shortly after the contract signature. In major or mega projects, there are usually contractual non-flexible deadlines for the appointment of the project and quality managers. For each position, the relevant head office discipline directors will propose short lists of officers, already with the company or previously interviewed, selected and waiting for openings. If there are no available candidates and new recruitment process should be initiated then valuable -not available- time will be lost. The project manager will select the members of the project management team with the joint consent of the site manager, who will be appointed first. The managers of the project team will select the respective department engineers with the consent of the site manager. Close cooperation and solidarity of all members of this management chain is the desired outcome of this selection process. E.1.2.3
Appointment of the project management team
The administration department will initiate and complete the required process for the employment of all those selected as stipulated in the company procedures. Selected candidates who fail to fulfil any of the requirements (medical tests, legalized or authentic certificates, criminal records etc.) will be rejected and replaced. The employment contract commencement dates will be decided by the project manager for each member of the project management team and communicated to each one of them through the administration department. The employment contracts will be prepared as per company procedures. A draft contract will be given to the candidate for consideration.
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Induction courses will be performed. Appropriate working space and means will be prepared and handed over. The employment contracts will be signed on their commencement date by the employee and an authorised representative of the company. The analytical job description of the employee will be attached to contract. Job descriptions should be standard system documents. Each paragraph of the job description should be linked to a standard provision in the company management procedures. The task owners will be entrusted full contract documents associated with their tasks and all internal company data produced at tender stage -estimate, schedules of resources, program, means, etc.- so they can check and agree or request modifications to any or all elements related to their task. This information will be handed over to them in a controlled manner -for example, they will be given instructions and a password to access a particular, already established, sub-directory in the company intranet with all the information related to the task available. This information is strictly confidential and should be handled as such. Once they are well aware of their responsibilities and are confident that they can deliver as required they will sign the task ownership agreement with the project manager. E.1.3
Applicable legislation, licenses & permits77
The country commercial, technical & controls manager will handover, to the project manager, a full set of the applicable legislation, national and international, and an outline of significant legal points of interest or concern, prepared by the chief quantity surveyor of the company, in the country of operations, applicable to the specific project. If clarifications are required, then the project manager, the project quality manager, and the project technical & controls manager will meet with the chief quantity surveyor and legal advisors of the company, as soon as possible, and get their advice on the issue. If legal action is foreseen, the project manager will inform the discipline director and the country manager accordingly. Nobody is thought to be ignorant of the law78. 77
78
As an example, please see the licenses and permits you need, the documents you must prepare, and how to apply to build a hydropower scheme in the UK at: https://www.gov.uk/guidance/new-hydropower-scheme-apply-to-build-one Š crown copyright Wikipedia Page 131 of 495
The project technical & controls manager will prepare, in due time, all required documentation (design, calculations, drawings etc.), apply for and obtain the required by the law licenses and permits for the project. The project manager will approve and authorise the submission. The project HSE manager will prepare, in due time, all required documentation [design, calculations, drawings, plans (as applicable)], apply for and obtain the required79 by the law environmental permits80 for the project. The project manager will approve and authorise the submission. The licenses & permits will be archived at the library of the company, when obtained. Authenticated copies will be handed over to the project manager for further use and distribution as provided in the contract conditions. The country financial department will register the contract with the appropriate authorities. The registered contract will be archived at the library of the company. Authenticated copies will be handed over to the project manager for further use and distribution as provided in the contract conditions. E.1.4
Applicable regulations, codes, standards and specification
The company or the country quality and the technical & controls departments will handover, to the project manager, a soft, full set of the applicable regulations, codes, standards and specification to the project or give full access to the respective electronic library of the company, for project use. Once the project management team is established and mobilised, the quality and the technical & controls departments will perform joint induction courses for each engineering discipline where the significant requirements of the project conditions related to regulations, codes & standards and specification will be analyzed and clarified. All task owners will have read-only access to the respective (regulations, codes, standards and specification) electronic library of the project, that will be available in
79
80
“Ignorantia juris non excusat” https://en.wikipedia.org/wiki/Ignorantia_juris_non_excusat Privacy policy As an example, for permits for installations, waste or mining waste operations, water discharge or groundwater activities, or work on or near a main river or sea defence in the UK, please refer to: https://www.gov.uk/guidance/check-if-youneed-an-environmental-permit © crown copyright Government UK “Environmental management” “Environmental permits” https://www.gov.uk/topic/environmental-management/environmental-permits © Crown copyright Page 132 of 495
the project intranet. E.1.5
Task ownership
Task ownership agreements specify, in advance, those responsible for each and every activity related to the project. The members of the project management team will be given, by the technical department, full contract documents associated with their tasks and all internal company data produced at tender stage -estimate, schedules of resources, program, means, etc.- so they can check and agree or request modifications to any or all elements related to their task. This information will be handed over to them in a controlled manner -for example, they will be given instructions and a password to access a particular, already established, sub-directory in the company intranet with all the information related to the task available. This information is strictly confidential and should be handled as such. Once they are well aware of their responsibilities and are confident that they can deliver as required then they will sign the task ownership agreement with the project manager. Task ownership should then be cascaded by the members of the management team to all superintendents, engineers and supervisors, under their direct control, for the activities under their responsibility to the extend that each member of the management team deems appropriate. Each one of the superintendents, engineers or supervisors will sign task ownership agreements for the activities under his/her responsibility, with the discipline manager and the project manager. E.1.6
Contract review
The project management team once established will familiarize themselves with the contract conditions. The project manager will invite the team in a contract review meeting where the contract requirements and conditions will be explained thoroughly and to the last detail by the members of the team that prepared the offer. Issues, of any kind, may arise during this meeting; the same will be brought to the attention of the management of the company or the client by the project manager, as rquired. The task ownership agreements should be signed after this meeting, as the task owners should be well informed and ready to assume duties by then. E.1.7
Project organization
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A preliminary organization chart is prepared at tender stage. The project management team will review and finalize the project organization (departmental division, staffing and scope of services); in due time, when the contract is signed and the project management team has assumed duties. The project manager will approve and present it to the executive committee for their information and consent (major & mega projects). The project manager will request and obtain the consent of the country manager for all other projects. E.1.7.1
Project personnel - Requirements
The personnel requirements for a project are estimated, initially, at tender stage. Once the letter of intent that awards the contract to the company is received from the client, the lists of requirements and the consequent mobilisation plan are finalized and sent, by the chief estimator or the project manager (if appointed already), to the country manager for processing. The administration manager of the country of operations will check for possible releases from other projects in the country or in other countries where the company operates. The final lists of requirements will be sent to the recruiting agencies, at the countries where the company employs personnel from, for their necessary action. The selection process may commence with the issuance of the letter of intent, or the signature of the contract, or the payment of the advance, or the opening of letter(s) of credit, depending on the contract, the client and the country conditions. Senior personnel’s selection & recruitment should be handled directly by the company or the country head office, usually through the company’s website or other efficient means. See also chapters “E.1.1 Project Manager” and “E.1.2 Project Management team”. Detailed and clear job descriptions should invite qualified personnel to join the company. All correspondence, at all stages, will be copied to the project manager who interferes in the process, as required. Daily, weekly or monthly reports will be prepared by the administration department and sent to the project manager for information and necessary action at all stages of the personnel mobilisation/recruitment process. The project manager will finally approve the recruitment or transfer of each senior
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personnel who will be part of the management team of the project. E.1.7.2
Project personnel - Recruitment
The recruiting agencies: • • • • • • • •
Advertise the requirements locally/online Collect applicants’ dossiers (CVs, certificates, recommendation letters, etc.) Confirm the documents’ authenticity and accuracy in depth Prepare a shortlist for each occupation Conduct professional interviews/tests Obtain health certificates from public hospitals Prepare lists of successful candidates, based on objective criteria, and Send their, fully documented, proposal to the administration department of the country of operations
Depending on the success record of each agent and the significance of the project, the company may decide to accept the agent’s proposal or send recruiters to double check and finalize the recruit. Once the selection process is complete and the proposals are approved, legally binding employment memoranda of understanding (MOU) will be signed by both parties and the company will initiate the visas’ issuance process. MOUs should be standard and structured agreements with an outline of the procedural terms based on the employment contract conditions. Once the visas are received, the agents will finalize the process, issue travel tickets (as scheduled in the mobilisation plan) and inform the company accordingly. The company will pay all expenses and charge the project’s or the country’s overheads account(s). E.1.7.3
Project personnel - Employment contracts
All personnel will be met at the point of entrance (airport, port, border etc.) in the country of operations by a representative of the administration department. They will be accommodated, temporarily, in establishments near the country head office, until the required health, legal and company processes are complete. Personal files will be initiated for each new recruit as specified in the company employment procedure. Health certificates will be obtained as required by the country health legislation and the company procedures. In cases of rejection for health reasons, those rejected will be repatriated and the expenses will be charged to the recruiting agencies. Residence and work permits will be obtained from the local authorities. In cases of rejection, for any reason, those rejected, will be repatriated.
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The administration department will explain all terms and conditions of the employment contracts, before signature, and register all present in these sessions. The employment contracts will be signed when all the requirements are met and the relative checklist(s) is(are) complete. Personnel and grade codes will be assigned to each of the employees. Once the processes are complete, the employees will be posted and transferred to their work location. References (indicative list) •
•
•
•
•
UNITED NATIONS “Universal Declaration of Human Rights” “Article 23” http://www.un.org/en/universal-declaration-human-rights/index.html Copyright Government UK “Employing people A to Z” https://www.gov.uk/browse/employing-people © Crown copyright International Labour Organization (ILO) “General principles and operational guidelines for fair recruitment” http://www.ilo.org/wcmsp5/groups/public/---ed_norm/--declaration/documents/publication/wcms_536755.pdf Copyright © International Labour Organization 2016 International Labour Organization (ILO) “Fundamental Principles and Rights at Work Branch (FUNDAMENTALS)” http://www.ilo.org/global/about-the-ilo/how-the-ilo-works/departments-andoffices/governance/fprw/lang--ja/index.htm © 1996-2017 International Labour Organization (ILO) International Labour Organization (ILO) “World Employment and Social Outlook 2016: Transforming jobs to end poverty” ISBN 978-92-2-130388-6 (pdf) http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--publ/documents/publication/wcms_481534.pdf Copyright © International Labour Organization 2016
E.1.7.4
Project personnel - Inductions
All personnel will be introduced to their new working and living environment, by systematic, well prepared and controlled induction courses, as stipulated by legal and regulatory requirements and the company’s management systems provisions. E.1.7.4.1
Basic training
Basic training sessions on:
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• • • • • • •
Company procedures and regulations, Job descriptions, Project outline, Country information, Country civil code outline, Local conditions, Weather conditions, etc.
should be conducted while the employees are waiting to sign their contracts. E.1.7.4.2
Introduction to HSE
On recruitment, site operatives should receive environmental and health & safety (HSE) induction courses, which will alert them to all the significant risks associated with their work. It should outline the applicable company management systems’ guidelines and requirements. Operatives should be advised of the role that they have to play to ensure that standards of environmental protection and health & safety provisions are maintained. The induction training should also identify the means by which operatives can communicate any issues regarding HSE and the relevant parts of the HSE policy(ies) should be explained to them. All operatives should receive training on the risks that are related to the task that they will perform and the standards of HSE provisions that should be in place. Information that is specific to a particular site, such as the location of welfare facilities, first aid, etc. and any hazards arising out of the interface with other contractors or client personnel, should be provided when the employees arrive at the site. References (indicative list) •
•
•
USA Environmental Protection Agency EPA Office of Compliance “Managing Your Environmental Responsibilities: A Planning Guide for Construction and Development” EPA/305-B-04-003 https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=300066JO.pdf Health and Safety Executive (HSE) UK “Health and safety in construction” http://www.hse.gov.uk/pubns/priced/hsg150.pdf ISBN 978 0 7176 6182 2 © Crown copyright 2006 Health and Safety Executive (HSE) UK “The health and safety toolbox
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How to control risks at work” http://www.hse.gov.uk/pubns/priced/hsg268.pdf © Crown copyright 2014 E.1.7.4.3
On-site induction
Upon arrival at the site all employees, after they have been accommodated in their dormitories, will be given induction courses by the site administrator on general matters such as: • • • • • • • • • • •
E.1.8
Project limits Clinic Dormitories Establishments Messes Working hours Workplaces Transportation Local conditions Holidays Weather conditions Project progress meetings
A project specific work instruction on “project progress meetings” should be prepared by the project management team. A complete schedule of progress meetings should be established for all stages of the project as soon as it is practical. Please also refer to chapters: • • • • • •
E.1.9
F.2.6 G.3.14.8.4 H.1 H.2.1 I.4.1 I.5.8
Project design meetings Procurement inspection meetings Project kick-off meetings Site(s) handing-over meeting(s) Project progress meetings Quality department’s meetings
Project management plan
A complete project management plan (PMP) should be established, implemented and kept up to date by the project team under the guidance and responsibility of the project manager for each mega or major project. For minor projects, a basic PMP should be established, implemented and kept up to date under the guidance and the responsibility of the site manager, superintendent or engineer.
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Project management plans are prepared as stipulated in the respective quality management procedure “Project Management Plans”. The PMP is a controlled document. The PMP should: Refer to the contract conditions, •
•
•
Refer to the company management system documents, Refer to plans, such as: The project financial plan The project quality plan The project HSE plan Integrate, include, identify, refer to or attach: Scope of works Project applicable: Legislation Statutory & regulatory requirements Specifications Standards Codes of practice Work breakdown structure (WBS) Statements of work (SOW) Tasks’ ownership agreements Project procedures, work instructions and method statements Risk management plan Security plan Emergencies plan Evacuation plan Constructability plan Project schedule Project budget Project cost control Mobilisation and demobilisation plans Human resources Project plant, equipment and tools Project materials' schedules Project materials' production and/or purchasing Infrastructure Work environment Communication (internal & external) Subcontractors' plans Local conditions Weather conditions
The project management plan, once approved by the project management team, is uploaded in the local project intranet -if the intranet is certified by internal and/or
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external audits as “secure”- as part of the project files, in read only format, classified as “strictly confidential”. Only those concerned have partial access to it -for information related to the tasks they own- under strict protocol. The project manager and the project management team will have full access to the project management plan. The project manager is responsible for the security of the PMP. The project manager is responsible for the integrity of the PMP. All changes should be controlled and agreed by the project manager and the task owners concerned and this agreement should be documented and registered in the PMP. It is essential that the project manager ensures that the current version of the PMP reflects the current contractual requirements in terms of time, cost, performance and specification. The following guidelines should be used to manage changes to the PMP effectively and efficiently: •
•
•
•
The project manager should be responsible for the control of the PMP and should authorise any changes. Issue of a revised, agreed PMP should automatically cancel all previous issues. Each issue of the PMP should be allocated a unique sequential revision code so that previous plans should be easily identified and replaced with the latest version. The reasons for changes to the PMP should be fully documented and a crossreference made to the revision codes. A complete history of such changes should be retained by the project manager.
•
Work should not be released from the draft PMP.
•
The revised PMP should not jeopardize any contractual obligations.
A PMP should have a standard format. Proposed table of contents of a project management plan 1.
Scope of the procedure
2.
Field of application of the procedure and responsibilities
3.
Description of the procedure
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3.1. Definitions 3.2. References 3.2.1. Applicable legislation 3.2.2. Statutory & regulatory requirements 3.2.3. National & international standards 3.2.4. Contract documents 3.2.5. Company management system 3.2.6. International standards - publications 3.3. Project management plan 3.3.1. Contents and guidelines of a project management plan 3.3.1.1. The country 3.3.1.2. The client 3.3.1.3. The contract 3.3.1.4. The project 3.3.2. Leadership 3.3.2.1. Leadership and commitment 3.3.2.2. Management system 3.3.2.3. Code of ethics 3.3.2.4. Code of conduct 3.3.2.5. Customer focus 3.3.2.6. Social responsibility 3.3.2.7. Organizational roles, responsibilities and authorities 3.3.2.8. Task ownerships 3.3.2.9. Competence & training 3.3.2.10. Awareness 3.3.3. Communication system 3.3.4. Information system 3.3.4.1. Documented information 3.3.4.1.1. Creating and updating 3.3.4.1.2. Control of documented information 3.3.5. Planning 3.3.5.1. Estimate 3.3.5.2. Constructability, productivities 3.3.5.3. Schedule 3.3.5.4. Budget 3.3.5.5. Risks 3.3.5.6. Security 3.3.5.7. Emergencies 3.3.5.8. Evacuation 3.3.5.9. Compliance obligations 3.3.5.10. Milestones 3.3.5.11. Project objectives 3.3.5.12. Planning of changes 3.3.6. Operational structure 3.3.6.1. Administration 3.3.6.2. Financial 3.3.6.3. Technical, planning & controls 3.3.6.4. Construction 3.3.6.5. Quality 3.3.6.6. Environmental
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3.3.6.7. Occupational health & safety 3.3.6.8. Plant 3.3.7. Resources 3.3.7.1. Experience thesaurus 3.3.7.2. People 3.3.7.3. Plant & equipment 3.3.7.4. Materials 3.3.7.5. Infrastructure 3.3.7.6. Technology 3.3.7.7. Natural resources 3.3.7.8. Financial resources 3.3.7.9. Subcontractors 3.3.8. Information and training for site personnel 3.3.8.1. Working processes induction and training 3.3.8.2. Follow-up inductions 3.3.9. Consultation procedures 3.3.10. Site rules 3.3.10.1. Working hours 3.3.10.2. Working practices 3.3.11. Execution 3.3.11.1. Design 3.3.11.2. Procurement 3.3.11.3. Production 3.3.11.4. Construction 3.3.11.5. Services 3.3.12. Controls 3.3.12.1. Performance control 3.3.12.2. Cost control 3.3.12.3. Control of processes 3.3.12.4. Control of changes 3.3.12.5. Quality control 3.3.12.6. HSE control 3.3.12.7. Control of project finances 3.3.12.8. Works/products/services control 3.3.12.8.1. Identification and traceability 3.3.12.8.2. Preservation 3.3.12.8.3. Delivery activities 3.3.12.8.4. Post-delivery activities 3.3.12.8.5. Control of nonconforming outputs 3.3.12.9. Control of documents and data 3.3.12.10. Control of records 3.3.13. Performance evaluation 3.3.13.1. Monitoring, measurement, analysis and evaluation 3.3.13.2. Evaluation of compliance 3.3.13.3. Audits 3.3.13.4. Non-conformity reports (NCR) 3.3.13.5. Customer satisfaction 3.3.13.6. Interested parties satisfaction 3.3.13.7. Analysis and evaluation 3.3.13.8. Project reports
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3.3.13.9. Management review 3.3.13.9.1. Management review inputs 3.3.13.9.2. Management review outputs 3.3.14. Improvement 3.3.14.1. Continual improvement 3.3.14.2. Lessons learned 3.3.14.3. Management review outputs implementation 3.3.14.4. Nonconformity and corrective action 4.
Forms
5.
Records
6. Appendices 6.1. Contract documents 6.2. Applicable legislation 6.3. Applicable standards & specifications 6.4. Applicable construction industry codes of practice 6.5. Design inputs and outputs 6.6. Statutory and regulatory requirements 6.7. Other requirements 6.8. Company management system requirements 6.9. Project organization chart 6.10. Approved job descriptions 6.11. Project authorisations 6.12. Project estimate 6.13. Project work breakdown structure 6.14. Statements of work 6.15. Ownership of tasks 6.16. Constructability plan 6.17. Project schedules 6.18. Project budget 6.19. Project cost control 6.20. Productivities 6.21. Mobilisation & demobilisation plans 6.22. Plant & equipment (to be used for the works) 6.23. Materials, plant & equipment (to be incorporated in the works) 6.24. Project risk management plan 6.25. Project security plan 6.26. Project emergencies plan 6.27. Project evacuation plan 6.28. Designers 6.29. Subcontractors 6.30. Suppliers 6.31. Local conditions 6.32. Weather conditions 6.33. Project infrastructure 6.34. Sample forms/records E.2
Construction management
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The project construction manager reports to the project manager or the site manager and functionally to the discipline director (major or mega projects) or the country construction manager (all other projects). Sections & functions •
•
•
E.2.1
Construction documents Contract Codes & standards Task ownerships Construction plan Constructability plan Construction procedures Method statements Work instructions Records Reports Construction Architectural Chemical Civil Electrical Instrumentation Mechanical Process Telecommunications Production Quarries Borrow pits Concrete plant Asphalt plant Construction management team
The members of this team will actually manage all construction activities; in simple terms they will do the job. All the others will supervise, support, assist, inspect, monitor, judge and criticize them. This relationship should be framed in such a manner that safeguards the interests of the common cause, i.e. a successful project. The project management system should outline proper and simple to understand instructions in this direction. One of the project manager’s primary tasks will be to ease down high spirits and
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resolve all these conflicts of interest, no matter what it takes. E.2.2
Construction teams
Indicative construction personnel professions for all different types of engineering construction projects are outlined here below. Construction professions - all types of projects • •
Construction manager Construction superintendent(s)
Buildings •
•
•
•
•
Engineers Architect Civil Electrical Instrumentation Mechanical Surveyor Supervisors Civil Concrete Electrical Finishings HVAC Instrumentation Mechanical Pilling Plumping Steel structure Steel reinforcement Drivers Concrete transit mixer Concrete pump Damp truck Flat-bed truck Water truck Operators Concrete pump Crane Dozer Excavator Grader Lifting platform Loader Pilling equipment Tower crane Technicians
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•
Brick layer Carpenter Carpets Ceilings Concrete finishing Decorator De-watering equipment Doors & windows Electricians (high, medium, low voltage) Elevator Furnishings HVAC Instrumentation Insulator Marble Mason Painter Pipe fitter Plant installation technician Plumber Sand blasting technician Scaffolding erector Steel & aluminium technician Steel erector Steel fitter Steel shuttering erector Steel structure erector Surveyor Tiles technician Welder Workers Chainman Concrete placing worker Concrete production worker Gardener Labourer Signaller
Civil, roads, bridges, tunnels, airports, infrastructure projects •
•
General Civil engineer Surveyor engineer Explosives expert Civil supervisor Concrete works supervisor Steel works supervisor Civil gang leader Drivers Bitumen spreader
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•
•
•
•
Concrete transit mixer Dump truck Flat-bed truck Light vehicle Road markings vehicle Truck Water bowser Operators Asphalt laying finisher Compactor Concrete pump Crane Curb stones Dozer Drilling machine Excavator Grader Loader Road markings vehicle Roller Side boom pipe-layer Tower crane Technicians Carpenter Explosives expert Mason Painter Pipe fitter Pipe laying Sand blasting Scaffolding erector Steel fitter Steel shuttering erector Steel structure erector Surveyor Welder Workers Asphalt layer Chainman Checker Concrete placing Labourer Signaller Buildings (see buildings above)
Ports & marine projects •
General Civil engineer
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•
•
•
•
Marine engineer Surveyor engineer Marine supervisor Civil supervisor Civil gang leader Dredging Dredger crew Captain Operator Mechanic Sailor Floating crane crew Captain Crane operator Sailor Split barge operator Tug boat captain Tug boat sailor Boat operator Precast yard Supervisor concrete works Crane operator Tower crane operator Scaffolding erector Steel shuttering erector Carpenter Steel fixer Concrete placing worker Concrete truck driver Concrete pump operator Driver Labourer Breakwaters Supervisor earthworks Surveyor Chainman Diver Transport officer Crane operator Excavator operator Loader operator Dozer operator Grader operator Flat-bed trailer Dump truck driver Labourer Quay walls Supervisor Surveyor Chainman
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•
•
•
Floating crane crew Captain Crane operator Sailor Diver Split barge operator Flat barge sailor Tug boat captain Tug boat sailor Boat operator Crane operator Signaller Flat-bed trailer driver Truck driver Piling Supervisor Surveyor Chainman Floating crane crew Captain Crane operator Sailor Crane operator Signaller Piling hammer operator Welder Fitter Industrial painter Flat-bed trailer driver Capping block Supervisor concrete works Surveyor Chainman Crane operator Signaller Scaffolding erector Steel shuttering erector Carpenter Steel fixer Concrete placing worker Concrete truck driver Concrete pump operator Driver Labourer Onshore Infrastructure (see buildings & roads)
Mechanical, electrical, instrumentation, process, plants projects
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•
•
•
•
•
81
General Electrical engineer Instrumentation engineer Mechanical engineer Process engineer Discipline supervisors Mechanical Mechanical supervisor Coatings technician Equipment installer Fans, Pumps, and Compressors technicians HVAC technicians Hydro-testing technician Industrial painter Insulator Metallurgy technician Pipe fitter Piping technician Plant installation technician Plumber Power Generation technician Refrigeration, cryogenics, and optics technicians Rotating equipment technician Steel erector Vessels technician Welders (hot & cold pipelines, vessels, steel structures, etc.) Electrical Electrical supervisor Electricians (high, medium, low voltage) Power electricians Instrumentation Instrumentation supervisor Cathodic protection technician Computers’ technician Control systems technician Electronics technician Electro-optical technician Instrumentation technician Microelectronics technician Signal processing technician Telecommunications technician Process Installation & commissioning process supervisors & technicians81 for: Chemical plants Industrial plants Process plants Lesson learned These, highly trained and experienced, specialists are usually provided for by the manufacturers/suppliers of the specialized process installations/equipment as part of the procurement subcontracts Page 150 of 495
Polymer plants Pharmaceutical plants Food production facilities Power plants Oil refineries or other refineries Natural gas processing and biochemical plants Water and wastewater treatment plants Pollution control Petrochemical plants Specialty chemical and fine chemical plants Production plants’ professions •
•
•
•
General Production manager Production superintendent Production engineer Quarries/crushers Crushers’ supervisor Explosives’ expert Crusher operator Concrete batching plant Concrete batching plant supervisor Concrete batching plant operator Asphalt plant Asphalt plant supervisor Asphalt plant operator
Workshops professions •
•
•
•
E.3
Electrical/instrumentation workshop Electrical supervisor Electrician Instrumentation technician Joinery Carpentry supervisor Carpenter Steel workshop Steel workshop supervisor CNC technician Fitter Industrial painter Sand blasting technician Welder Bar bending yard Supervisor Bar-bender Steel fixer Technical & controls management
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The project technical & controls manager reports to the project manager or the site manager and functionally to the commercial, technical & controls director (major or mega projects) or the country commercial, technical & controls manager (all other projects). Project technical management Sections & functions •
•
•
Project documents Contract Codes & standards Project procedures Work instructions Records Reports Design In-house design Designers Design management plan Design deliverables • 2D model • 3D model • Design calculations • Materials’ specification • Works’ specification • Working drawings • P&IDs • Shop drawings • As-built drawings • Design controls Records Reports Procurement Suppliers Selection Purchase orders Material production plans Material delivery certificates Transportation of materials Valuations Records Reports Materials’ stores Acceptance of materials Storage Delivery of materials Charges Stock inventory
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•
Records Reports Records Reports Subcontractors Selection Subcontracts Operational control Valuations Records Reports
Project controls management Sections & functions •
•
•
•
Planning & scheduling Schedule preparation & approval Progress reports Daily Weekly Monthly Cost control Cost centres’ system Daily production reports Costing reports per cost centre, activity, unit, site or project Daily Weekly Monthly Cost to complete Quantity surveying Contract(s) Contractual correspondence Change orders Measurements Valuations Legal issues Budget Preparation Control Reports IT management & support Hardware Software Communication systems Computer systems • Intranet • Internet Telephones • Landlines
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Satellite systems Mobile telephones Wireless radios Communication protocols Reporting â&#x20AC;˘ â&#x20AC;˘
Process outline Correct and timely planning and control is critical for the success of a project. Computer hardware, (server, terminals, printer, plotter etc.) for the use of the management team, will be installed and tested. A project intranet should be established as per company procedures and protocols. Project management software and other required software, purchased by and licensed to the company, will be installed for the use of the authorised project personnel. All documents related to the project will be structured and published in the project intranet. The team that prepared the offer should work under the instructions of the project manager until the project management team members replace each one of them. The tender team should co-operate very closely and for as long as it is required with the project management team until all the details of the contract are well explained and understood and the first issue of the project planning elements (schedule, budget, plans, etc.) is completed and approved. Software packages and documents/products/forms developed at tender stage should be clarified, justified and duly handed over so that there is no loss of time. E.3.1
Project cost codes
Cost codes should be assigned to each direct or indirect cost element, work item, schedule activity, budget entry, worker, material, equipment, production unit, office etc., of the project, as stipulated in the company procedures and the contract conditions. The identification codes of the items of the bill of quantities, if the contract is measurable, should be linked to standard company cost codes. The project quantity surveyor will prepare the final table of cost codes, the project technical & controls and financial managers will review it and the project manager will check it. The technical & controls director and the chief financial officer will approve the table of cost codes for the project.
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The table may not be changed for the duration of the project unless additional cost items require insertion. The same approval process will be followed. The project cost codes will be published in the project intranet, when approved. All entries to the project cost coding & accounting database(s) will be reviewed by the project quantity surveyor for correctness of codes and uniformity of costing reports. E.3.2
Project completion milestones
The following project completion milestones/dates will be decided (as required). • •
•
•
Project commencement date Mobilisation Rights of way Sites’ handing over Design of establishments Access routes’ construction Sites’ clearance Utilities Infrastructure Services Camps Client Company Offices Client Company Warehouses Workshops Production units Quarries Concrete plant Asphalt plant Construction sites Rights of way Site clearance Surveying network Precast yard Design Preliminary Stages Final Stages Shop drawings Procurement Quantities’ take-offs Specification
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•
• • • •
E.3.3
Suppliers Manufacturing Inspection Shipment Customs clearance Transportation to the site Construction Buildings Civil Mechanical Electrical Instrumentation Process Pre-commissioning Commissioning Handing over Demobilisation Project design, procurement & construction teams
Process outline The project management team will structure, select and mobilise the project design, procurement, construction and pre-commissioning management teams. The project and/or the site manager will be consulted, as required. The financial & administration manager will be responsible for the co-ordination of this process. The construction manager will select: • • • • •
Construction superintendents (all disciplines) Construction engineers (all disciplines) Site supervisors (all disciplines) Production units’ supervisors (crushers, concrete, asphalt) Workshops’ supervisors
The quality manager will select: • • •
•
Quality control manager(s) Quality control superintendents Quality control engineers [all disciplines, at all stages (design, procurement, construction, commissioning)] Laboratories’ supervisors
The HSE manager will select: • •
HSE engineers/officers Doctor(s)/medical provider(s)
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The technical & controls manager will select: • • • • • • • • • •
Design manager Design engineers (all disciplines) Procurement manager Procurement engineers (all disciplines) Quantity surveyor(s) Project planning engineer(s) Project controls engineer(s) Materials’ engineers (all disciplines) Materials storekeeper(s) IT engineer(s)
The financial & administration manager will select: • • •
Project chief accountant Project chief administrator Project cashier
The plant manager will select: • • • • •
Plant superintendent Plant engineer(s) Plant workshops’ supervisors Plant storekeeper(s) Transport officer
The pre-commissioning management team will be selected in due time. E.3.4
Construction productivities
All project activities will be divided into their basic elements (personnel, equipment, materials, subcontractors), by the responsible task owners. Time-related production output of each element will be proposed based on: •
Company’s historical data Productivities Supervision Quality Inspection requirements Resources’ utilization and efficiency Weather conditions Local conditions Market conditions
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•
International codes & standards82
•
Manufacturer’s guides and
•
The task owner’s experience thesaurus
Output reduction factors for each element will be proposed. Risk assessments may also propose reduction of outputs. Plant utilization & efficiency records of the pieces of plant and equipment that are allocated to the project, will be reduced by a safety factor that will be agreed at this stage. Levelling of resources will be performed, based on the production of the less efficient element of the team. Levelling of resources increases the requirements to where they should be.
•
The project manager should not accept avoidance of this step -common practice of top management to indirectly reduce resources requirements.
•
The activity team will be formed -natural not decimal units for each element, rounding upwards. The average productivity of each team, for the duration of the activity, will be: Proposed by the task owner (engineer, superintendent, manager) Checked by the construction manager Approved by the project manager or the site manager Attached to the task ownership agreement and Forwarded to the project planner for processing
• • • • •
E.3.5
Detailed project schedule
An analytical schedule will be prepared by the project planner, in co-operation with each task owner and agreed with the project management team, based on the analysis of the activities and the productivities that have been decided at this stage. The schedule that was prepared at tender stage may or may not be used. The analysis will go as deep as the final acceptance by the client [last step and closure of the corresponding inspection and test plan (ITP)] of each unit -to the lastof each activity. 82
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All activities (including but not limited to the critical path ones) will be identified, coded and assigned to task owners. Each task owner will be responsible for the part of the schedule that corresponds to his/her task and should cooperate closely with the project planner in this respect. The overall schedule may be split in sub-schedules (one for each task owner) for better follow-up purposes. As the project progresses, the schedule will be revised accordingly. Histograms of levelled direct resourcesâ&#x20AC;&#x2122; requirements, based on the approved schedule, will be produced by the planner, checked by the task owners, reviewed by the construction manager and approved by the site and/or the project manager. The contract documents may require quality inspection/control personnel or HSE officers based on the number of personnel of each activity or the project. These requirements will be prepared by the quality and the HSE managers and approved by the project manager. The project management team will decide on the indirect personnel requirements with the consent of the project manager. The overall personnel requirements -together with mobilisation and demobilisation plans- will be sent to the HR department for their necessary action. The project HR manager will coordinate this effort. The overall plant equipment requirements -together with mobilisation and demobilisation plans- will be sent to the plant department for their necessary action. The project plant manager will coordinate this effort. The schedule -initial and revisions- will be submitted to the client for approval. Schedules should be simple and understandable so they attract the interest and assist all concerned constantly, even those construction officers who hate computers and papers, or they become easily obsolete. Planners should act as assistants to those who produce and not as critics or auditors or, even worse, as backdoor informers of the management. Once approved by the client, the schedule -initial and revisions- will be published in the project intranet. The schedule will be updated by the project planner on a daily, weekly and monthly basis or as required, based on approved progress reports. It will be revised quarterly or as required. All revisions will be checked by the task owners and approved by the project
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manager. E.3.7
Project budget
The project management team will prepare the project budget and present it to the executive committee (mega and major projects) or the discipline director and/or the country manager (all other projects) for their checking, review and approval. The following sources of information will be taken into consideration: • • • • •
• •
•
• • •
The main contract documents The designer(s) subcontracts The suppliers subcontracts The inspection agencies subcontracts The project estimate Direct costs Indirect costs Overheads The approved detailed project schedule The approved management plans Project management Financial management Quality HSE Risk Safety Emergency Evacuation The project financing Company financing Project advance(s) Project forecasted monthly payments Project possible claims Required loans The project anticipated cash-flow Budget specific risk assessments performed by the management team Other budget elements
Once approved, the project budget will be published in the project and the head office networks and attached to the project management plan. The project budget will be checked on a monthly basis, jointly, by the financial and the controls departments. In cases of shortfalls or deviations, appropriate remedial action will be taken, as required, in compliance with the company relevant management system processes. The project budget may be revised every year, as required. Controlled records on its checking, reviews and revisions will be produced,
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distributed and archived. A complete file of the project budget related documents will be included in the final closeout project report. E.3.8
Project cost control
A complete cost control system will be established for the project, jointly, by the project financial team and the project planning & controls team under the guidance and control of the IT department. The cost coding will be based on the company’s cost coding system and the project particulars and should be linked to the project accounting system and the project schedule. Database(s) •
•
•
•
In theory, it takes only one database, a server, an intranet, and specific data entry points. In practice, the accounts databases are independent from the planning and controls databases for confidentiality reasons, mainly. Different entries, different reports, arguing and disputes, result to bad management decisions. Confidentiality prevails but the company wastes money.
Data should be entered by the accounts (financial entries) and the planning & controls (work executed, progress entries) authorised officers. Various reports should be produced from the same database such as financial, progress and costing reports, so that the “post mortem” accounting reports lack surprises. Reference •
E.3.9
Chris Hendrickson Department of Civil and Environmental Engineering, Carnegie Mellon University https://www.cmu.edu/cee/people/faculty/hendrickson.html “Project Management for Construction Chapter 12. Cost Control, Monitoring and Accounting” https://www.scribd.com/document/140043611/Project-Management-forConstruction-pdf Copyright C. Hendrickson 1998 Project progress reports
Factual, clear, quantitative, precise, detailed but simple reports should monitor all the day-to-day activities of a project.
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The “supervisor’s daily report” (all disciplines, working groups, functions) should be the basic monitoring document. Progress reports form the thesaurus of the company’s experience, adding knowledge, improving performance and increasing the value of the company. They will structure a main part -home made- of the library of the company. Reports are usually finalized during meetings. For lists of participants, production processes, details, proposed table of contents, etc., of all proposed project progress reports, please refer to chapter “I.4.1 Project progress meetings, reports”. Types of reports • • • • •
Daily progress reports Weekly progress reports Monthly progress reports Management review reports Closing-out report(s)
Typical company formats, for each report, will be used. E.4
Quality management
Philip B. Crosby83 developed pragmatic concepts that are considered foundational elements of the body of quality knowledge, including his “Four Absolutes of Quality Management™”: • • •
•
Quality means conformance to requirements, not goodness Quality is achieved by prevention, not appraisal Quality has a performance standard of Zero Defects, not acceptable quality levels Quality is measured by the Price of Non-conformity™, not indexes
References •
•
83
International Organization for Standardization (ISO) ISO/TC 176/SC 2 - Quality systems https://www.iso.org/committee/53896.html © All Rights Reserved International Organization for Standardization (ISO) ISO 9000 Quality management https://www.iso.org/iso-9001-quality-management.html © All Rights Reserved Philip B. Crosby http://www.philipcrosby.com/25years/crosby.html Page 162 of 495
Please refer also to chapter “I.5 Project quality management”. E.4.1
Project quality personnel
The quality manager should probably be the most qualified and experienced member of the setup. The quality manager certifies, in principle, the production of the project in accordance with the contract conditions and the company protocols and procedures. The client will approve the project quality manager soon after the contract signature. The quality personnel should master their profession, posses the required licenses, approvals and certificates, become fully aware of the contract conditions and, most of all, assist and train (not criticize, nail or judge) their production/construction colleagues who actually perform the job. The client may also approve all quality control personnel prior to assuming duties. Indicative quality personnel professions are outlined here below. Quality personnel professions • • • • •
Quality manager Quality assurance manager Quality control manager Quality control superintendents (see engineering disciplines below) Quality control engineers (as applicable) Chemical & process Chemical plants Food production facilities Industrial plants Natural gas processing and biochemical plants Nuclear power plants Oil refineries or other refineries Petrochemical plants Pharmaceutical plants Pollution control Polymer plants Power plants Process plants Specialty chemical and fine chemical plants Water and wastewater treatment plants Civil & structural Airports Asphalt works Bridges Buildings Coastal works
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Concrete works Dams Earthworks Electrical power supply networks Fire protection & fighting engineering Geotechnical Highways Hydraulic structures Irrigation, drainage and river engineering Laboratories Marine works Materials Offshore structures Paving Pipelines Ports and harbours Power stations Railways Reservoirs Retaining structures and walls Roads Rock engineering Sewage networks Soil mechanics Steel structures Structural Tunnels Underwater works Water networks Electrical, information, instrumentation, telecommunications Cathodic protection Computers â&#x20AC;˘ Hardware â&#x20AC;˘ Software Controls Electronics Electro-optical Instrumentation IT Laboratories Materials Microelectronics Power Signal processing Telecommunications Materials properties Chemical Electrical Magnetic Mechanical
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•
E.4.2
Optical Thermal Mechanical Coatings Equipment Fans, pumps and compressors HVAC Hydro-testing Laboratories Materials Metallurgy Non-destructive examination (NDE) Non-destructive testing (NDT) Piping Plumbing Positive material identification (PMI) Power generation Radiographic testing film interpreter (RTFI) Refrigeration, cryogenics and optics Rotating equipment Vessels Welding Quality control technicians Site Laboratories Project quality documents
All the quality documents, assurance and control that are produced in the course of a project, should: • • • • • • • •
Satisfy the contract requirements Satisfy legal & regulatory requirements Satisfy applicable national and/or international codes & standards Satisfy the company’s quality management system Be controlled Be registered in an electronic data base Be easily traceable and accessible Serve the purpose
In typical projects the following quality assurance and control documents may be produced (indicative list only): • •
•
Project quality plans Project quality procedures Project work instructions Project method statements Design quality records Design planning records Design inputs records
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•
• •
•
•
• •
•
Design controls records Design outputs records Design changes records Materials, plant & equipment production quality documentation Supplier’s quality plan Inspection & test plans Design quality records Data sheets Inspection assignment packages Inspection records Inspection certificates Manufacturer’s data reports Inspection & test plans Project quality control records Request for inspection Inspection checklists Inspection & test records Quality training plans Quality training records Quality audit plans Quality audit reports Non-conformity reports Project quality performance indicators Project quality indices Project quality reports Daily, weekly & monthly quality meetings’ reports Management review meetings’ reports
Outlines of specific quality documents are presented herewith. Typical company formats, for each document, will be used. E.4.2.1
Documents & filing coding
A project specific procedure on documents’ and filing coding, based on international standards, the contract conditions and the company’s quality management system, should be prepared and attached to the project quality plan. Proposed filing structure: 1. 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. 1.7. 1.8.
Project correspondence Client Authorities Financial institutions Designers Suppliers Services’ providers Subcontractors Inspection agencies
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2.
Company correspondence
2.1.
Company head office
2.1.1. 2.1.2. 2.1.3. 2.1.4. 2.1.5. 2.1.6. 2.1.6.1. 2.1.6.2. 2.1.6.3. 2.1.6.4. 2.1.7. 2.1.8. 2.1.9. 2.1.10. 2.2.
Country head office
2.2.1. 2.2.2. 2.2.3. 2.2.4. 2.2.5. 2.2.6. 2.2.7. 2.2.8. 2.2.9. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 4. 4.1. 4.2. 4.3. 4.4. 4.5.
Chief executive officer Executive committee Administration Financial Commercial, technical & controls Construction Civil & buildings Mechanical Electrical & instrumentation Chemical & processing Quality HSE Plant Other
Country manager Administration Financial Commercial, technical & controls Construction Quality HSE Plant Other
Client Contractual issues Approvals Records Reports Invoices/payments Certificates Other Country authorities Approvals Certificates Contracts Labour issues Legal issues
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5. 5.1. 5.2. 5.3. 5.4. 5.5. 5.6. 5.7. 5.8. 5.9. 5.10. 5.11. 5.12. 5.13. 6. 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. 6.8. 6.9. 6.10. E.4.2.2
Project stagesâ&#x20AC;&#x2122; documents Tender Contract Project start-up Design Procurement Construction preliminaries Mobilisation Construction Pre-commissioning Preliminary handing over Demobilisation Final handing over Liability period Departments documents Project management Site management Construction Technical & controls Quality HSE Financial Administration Plant Medical Project quality plan
A complete project quality plan (PQP) should be established, implemented and kept up to date by the project team under the guidance and the responsibility of the project manager for each mega and major project. For minor projects, a basic quality plan should be established, implemented and kept up to date under the guidance and the responsibility of the site manager/engineer. Quality plans are prepared as stipulated in the companyâ&#x20AC;&#x2122;s management system and the contract requirements. If the entire project details are not known at the time of preparation of the quality plan a draft quality plan is prepared, which is subsequently revised to include the missing information. In case a particular project incorporates design activities, the project quality plan covers these activities as well. Subcontractors' works are also included in the project quality plan. It is possible that specific quality plans are prepared for subcontractors' works, if stipulated in the contract.
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The project quality plan is prepared by the site manager assisted by an authorised group of engineers/officers working under his/her direct guidance, reviewed by the project quality manager for adequacy and effectiveness and approved by the project manager. The project quality plan may need to be submitted to the client for review and acceptance, either as part of a pre-contract consultation process or after a contract has been awarded. Once a contract is awarded, the quality plan should be reviewed and, where appropriate, revised to reflect any changes in requirements that may have occurred as a result of the pre-contract consultation. Any waivers from the requirements of the quality management system of the company must be approved by the company quality manager. The quality plan is a controlled document. The project manager is responsible for the security of the project quality plan. The project manager is responsible for the integrity of the project quality plan. The quality plan, once approved, is downloaded in the company intranet as part of the project files, in read only format. Those included in the distribution list have access to it under strict protocol. Non-controlled copies will be issued, for information only, to interested parties, as required by the contract and/or the quality management system of the company. All engineers and other officers who have responsibilities related to the implementation of the quality management system of the company will be given an induction course in the use of quality plans once they join the company. The quality manager will be responsible for the induction courses. Periodical training in the use of quality plans will be planned and implemented by the site quality officers, as appropriate. The company will monitor conformity with each quality plan it operates. Clients or external parties (e.g. external auditors) may establish provisions for monitoring conformity with the quality plans. A project quality plan should have a standard format. Proposed table of contents of a project quality plan 1.
Scope of the procedure
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2.
Field of application of the procedure and responsibilities
3. Description of the procedure 3.1. Definitions 3.2. References 3.2.1. Applicable legislation 3.2.2. Statutory & regulatory requirements 3.2.3. National & international standards 3.2.4. Contract documents 3.2.5. Company management system 3.3. Quality plan 3.3.1. Contents and guidelines of a project quality plan 3.3.2. The country 3.3.3. The client 3.3.4. The contract 3.3.5. The project 3.3.5.1. Description of the project 3.3.5.2. Scope of the project 3.3.5.3. Project inputs 3.3.5.4. Project milestones 3.3.5.5. Project objectives 3.3.5.6. Local conditions 3.3.5.7. Weather conditions 3.3.6. Leadership 3.3.6.1. Leadership and commitment 3.3.6.2. Quality management system 3.3.6.3. Code of ethics 3.3.6.4. Code of conduct 3.3.6.5. Customer focus 3.3.6.6. Social responsibility 3.3.6.7. Organizational roles, responsibilities and authorities 3.3.6.8. Task ownerships 3.3.6.9. Competence & training 3.3.6.10. Awareness 3.3.7. Communication system 3.3.8. Information system 3.3.8.1. Documented information 3.3.8.1.1. Creating and updating 3.3.8.1.2. Control of documented information 3.3.9. Planning 3.3.9.1. Actions to address risks and opportunities 3.3.9.2. Quality objectives and planning to achieve them 3.3.9.3. Planning of changes 3.3.10. Resources 3.3.10.1. Experience thesaurus 3.3.10.2. People 3.3.10.3. Infrastructure 3.3.10.4. Environment for the operation of processes 3.3.10.5. Monitoring and measuring resources
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3.3.10.6. Organizational knowledge 3.3.11. Operational planning & controls 3.3.11.1. Project specifications 3.3.11.2. Project procedures 3.3.11.3. Project quality documents 3.3.12. Information and training for site personnel 3.3.12.1. Working processes induction and training 3.3.12.2. Follow-up inductions 3.3.13. Consultation procedures 3.3.14. Site rules 3.3.14.1. Working hours 3.3.14.2. Working practices 3.3.15. Implementation 3.3.15.1. Design 3.3.15.1.1. Design planning 3.3.15.1.2. Design inputs 3.3.15.1.3. Design controls 3.3.15.1.4. Design outputs 3.3.15.1.5. Design changes 3.3.15.2. Subcontracting 3.3.15.2.1. Control of externally provided processes, products and services 3.3.15.2.2. Type and extent of control 3.3.15.2.3. Information for external providers 3.3.15.3. Construction 3.3.15.3.1. Production and service provision 3.3.15.3.2. Control of production and service provision 3.3.15.3.3. Identification and traceability 3.3.15.3.4. Preservation of product 3.3.15.3.5. Control of changes 3.3.15.3.6. Post-delivery activities 3.3.15.3.7. Property belonging to customers or external providers 3.3.15.4. Release of products and services 3.3.15.5. Control of nonconforming outputs 3.3.15.6. Control of documents and data 3.3.15.7. Control of records 3.3.16. Performance evaluation 3.3.16.1. Monitoring, measurement, analysis and evaluation 3.3.16.2. Audits 3.3.16.3. Non-conformity reports (NCR) 3.3.16.4. Customer satisfaction 3.3.16.5. Interested parties satisfaction 3.3.16.6. Analysis and evaluation 3.3.16.7. Quality reports 3.3.16.8. Management review 3.3.16.8.1. Management review inputs 3.3.16.8.2. Management review outputs 3.3.17. Improvement 3.3.17.1. Continual improvement 3.3.17.2. Lessons learned 3.3.17.3. Management review outputs implementation
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3.3.17.4.
Nonconformity and corrective action
4.
Forms
5.
Records
6. Appendices 6.1. Contract documents 6.2. Company management system documents 6.3. Applicable legal and regulatory requirements 6.4. Applicable customer & industry specifications 6.5. Applicable codes of practice 6.6. Local conditions 6.7. Weather conditions 6.8. Infrastructure 6.9. List of approved suppliers 6.10. List of deliverables 6.11. Project procedures 6.12. Quality records 6.13. Laboratories 6.14. Project organizational chart(s) 6.15. Job descriptions of key personnel 6.16. List of major equipment 6.17. List of major project materials 6.18. Designers’ quality plans 6.19. Subcontractors’ quality plans 6.20. Suppliers’ quality documentation 6.21. Audits' schedule 6.22. Audits’ reports 6.23. NCR register 6.24. Sample forms/records E.4.2.3
Project procedures
Project procedures should be prepared for every work item, in every discipline: • • • • • • • • •
Architectural Civil Electrical HVAC Instrumentation Mechanical Plumbing Process Telecommunications
At every stage of the project: • •
Mobilisation Design
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• • • • • • • •
Procurement Production Construction Pre-commissioning Commissioning Operation Maintenance Demobilisation
The project procedures should have a standard format. Proposed table of contents of a project procedure 1. Scope of the procedure 2. Field of application of the procedure and responsibilities 3. Description of the procedure 3.1. Definitions 3.2. Normative reference 3.2.1. Statutory & regulatory requirements 3.2.2. Contract specifications 3.2.3. National & international standards 3.2.4. Company management systems 3.3. Procedure 3.4. Design 3.5. Materials 3.6. Construction 3.6.1. Process 3.6.2. Work instruction(s) 3.6.3. Method statement(s) 3.7. Quality 3.7.1. Inspection & test plan(s) 3.7.2. Inspection checklists 3.7.3. Acceptance criteria 3.8. HSE 4. Forms 5. Records 6. Attachments Please refer also to chapter “I.3.2.3 Construction procedures”. E.4.2.4
Design quality documentation
Indicative list • • • • • •
Design planning records Design input records Design output records Design review records Design verification records Design validation records
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•
Design changes records
Please refer to “Chapter F Project design”. E.4.2.5
Procurement quality documentation
Indicative list • • • • • • • • • •
Supplier’s quality plan Inspection & test plans Design requirements Specification Design quality records Data sheets Inspection assignment packages Inspection records Inspection certificates Manufacturer’s data reports
Please refer to “Chapter G Project procurement of manufactured materials” E.4.2.6
Construction quality documentation
Indicative list • • • • • •
•
•
• •
•
Project quality plans Project procedures Project work instructions Project method statements Inspection & test plans Project quality control records Request for inspection Inspection checklists Inspection & test records Inspection & test reports Quality training plans Quality training records Quality audit plans Quality audit reports Non-conformity reports Project quality performance indicators Project quality indices Project quality reports Daily, weekly & monthly quality reports Construction • Activity • Discipline • Laboratory • Materials • Personnel
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Design Procurement NCR Management review reports Please refer also to chapter “I.5 Project quality management”. E.5
Health safety & environmental management
The management of the company shall ensure the availability of resources, essential to establish, implement and improve the project environmental and occupational health & safety management system such as: • • • • • • • •
Human resources Specialized skills Technology Organizational infrastructure Information systems Training Financial, and Other resources specific to the project
Environmental, occupational health & safety professions • • • • • • • • • • • •
HSE manager Environmental manager Occupational health & safety manager Environmental engineer(s) Occupational health & safety engineer(s) Doctors (general, occupational, specialists) Medical providers Nurses First aid providers Ambulance drivers Ambulance medical providers Fire wardens
Please refer also to chapter “I.6 Project HSE management”. E.5.1
Project HSE management documentation
References •
•
International Organization for Standardization (ISO) ISO/TC 207 Environmental management https://www.iso.org/committee/54808/x/catalogue/ © All Rights Reserved. International Organization for Standardization (ISO) ISO 14000 family - Environmental management http://www.iso.org/iso/home/standards/management-standards/iso14000.htm
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•
•
•
•
•
•
•
•
•
•
•
•
© All Rights Reserved International Organization for Standardization (ISO) ISO/DIS 45001.2 – Occupational health and safety management systems -Requirements with guidance for use http://www.iso.org/iso/catalogue_detail?csnumber=63787 copyright © ISO 2016 © All Rights Reserved. International Labour Organization (ILO) “Ergonomic checkpoints: Practical and easy-to-implement solutions for improving safety, health and working conditions” http://www.ilo.org/safework/info/instr/WCMS_178593/lang--en/index.htm © 1996-2016 International Labour Organization (ILO) Copyright and permissions USA Environmental Protection Agency EPA Office of Compliance “Managing Your Environmental Responsibilities: A Planning Guide for Construction and Development” EPA/305-B-04-003 https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=300066JO.pdf UK legislation for environmental permits https://www.gov.uk/topic/environmental-management/environmental-permits © Crown copyright Health and Safety Executive (HSE) UK Full catalogue of publications http://www.hse.gov.uk/pubns/books/index-catalogue.htm, Copyright Health and Safety Executive (HSE) UK “Health and safety in the construction industry” http://www.hse.gov.uk/construction/index.htm Copyright Health and Safety Executive (HSE) UK “Managing health and safety in construction” http://www.hse.gov.uk/pubns/priced/l153.pdf © Crown copyright 2015 Health and Safety Executive (HSE) UK “The health and safety toolbox - How to control risks at work” http://www.hse.gov.uk/pubns/priced/hsg268.pdf © Crown copyright 2014 The Construction Industry Training Board (CITB) HSE publications https://shop.citb.co.uk/product/publications/ © The Construction Industry Training Board 2014, known as CITB The Construction Industry Training Board (CITB) “Construction Site Safety (GT 700/16)” https://shop.citb.co.uk/GE70017.aspx © The Construction Industry Training Board 2014, known as CITB Chapter G.2, page 322 of AMC-IAP-Part I-In theory https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory Chapter G.3, page 324 of AMC-IAP-Part I-In theory https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory
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Please refer also to chapter “I.6 Project HSE management”. E.5.1.1
HSE plans
The environmental and occupational health & safety (HSE) plan is the document in which specific HSE requirements, structures, processes, policies, management systems and issues that are unique for the each area, project, site, camp or location where the company operates are described. For all projects undertaken by the company, a project HSE plan either is prepared at tender stage or after the project is awarded. During the bidding process, responsible for the preparation of the HSE plan is the tender team’s nominated HSE officer/engineer. If the project details are not known at the time of preparation of the HSE plan a draft HSE plan is prepared based on the environmental aspects' analysis and the OH&S risk assessments of similar projects, the bidding/contract documents, the client's requirements and the particulars of the specific project. The draft HSE plan is subsequently revised to include the missing information when it becomes available. Once the contract is awarded to the company, the HSE plan is reviewed and where appropriate, revised to reflect any changes in the requirements that may have occurred as a result of the pre-contract consultation. The project HSE plan is finalized by the site manager and the project team members, issued by the site manager, reviewed by the HSE manager for correctness and adequacy, approved by the project manager and published in the project intranet. The same team is responsible for implementing, maintaining, improving, reviewing and revising the HSE plan during the project's execution, as appropriate. Proposed changes to the HSE plan are submitted to the client for review and approval before they are implemented, if required by the contract. Subcontractors' works are also included in the project HSE plan. The subcontractor prepares its respective HSE plan, which is attached to the project HSE plan. The project HSE plan should have a standard format. Proposed table of contents of a project HSE plan 1.
Scope of the procedure
2.
Field of application of the procedure
3. Description of the procedure 3.1. Definitions
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3.2. References 3.2.1. Applicable legislation 3.2.2. Statutory & regulatory requirements 3.2.3. National & international standards 3.2.4. Contract documents 3.2.5. Company management system 3.2.6. International standards - publications 3.2.6.1. Environmental standards 3.2.6.2. Occupational health & safety standards 3.2.6.3. HSE publications 3.3. HSE plan 3.3.1. Contents and guidelines of a project HSE plan 3.3.1.1. The country 3.3.1.2. The client 3.3.1.3. The contract 3.3.1.4. The project 3.3.1.4.1. Description of the project 3.3.1.4.2. Scope of the project 3.3.1.4.3. Project inputs 3.3.1.4.4. Project milestones 3.3.1.4.5. Project objectives 3.3.1.4.6. Local conditions 3.3.1.4.7. Weather conditions 3.3.2. Leadership 3.3.2.1. Leadership and commitment 3.3.2.2. HSE management system 3.3.2.3. Code of ethics 3.3.2.4. Code of conduct 3.3.2.5. Customer focus 3.3.2.6. Social responsibility 3.3.2.7. Organizational roles, responsibilities and authorities 3.3.2.8. Task ownerships 3.3.2.9. Competence & training 3.3.2.10. Awareness 3.3.3. Communication system 3.3.4. Information system 3.3.4.1. Documented information 3.3.4.1.1. Creating and updating 3.3.4.1.2. Control of documented information 3.3.5. Planning 3.3.5.1. Actions to address risks and opportunities 3.3.5.2. Environmental aspects 3.3.5.3. Compliance obligations 3.3.5.4. Planning action 3.3.5.5. Environmental objectives and planning to achieve them 3.3.5.6. Environmental objectives 3.3.5.7. Planning actions to achieve environmental objectives 3.3.5.8. Occupational health & safety risk assessments 3.3.5.9. Occupational health & safety objectives and planning to achieve them
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3.3.5.10. 3.3.6. 3.3.6.1. 3.3.6.2. 3.3.6.3. 3.3.6.4. 3.3.6.5. 3.3.6.6. 3.3.6.7. 3.3.6.8. 3.3.7. 3.3.7.1. 3.3.7.2. 3.3.7.3. 3.3.7.4. 3.3.7.5. 3.3.7.6. 3.3.7.7. 3.3.8. 3.3.8.1. 3.3.8.2. 3.3.8.3. 3.3.8.4. 3.3.8.5. 3.3.8.6. 3.3.9. 3.3.9.1. 3.3.9.2. 3.3.9.3. 3.3.9.4. 3.3.9.5. 3.3.9.6. 3.3.9.7. 3.3.10. 3.3.11. 3.3.11.1. 3.3.11.2. 3.3.11.3. 3.3.12. 3.3.13. 3.3.14. 3.3.14.1. 3.3.14.2. 3.3.14.3. 3.3.14.4. 3.3.14.5. 3.3.14.6. 3.3.14.7. 3.3.14.8. 3.3.14.9.
Planning of changes Resources Experience thesaurus People Infrastructure Environment for the operation of processes Monitoring and measuring resources Organizational knowledge Natural resources Financial resources Site organization and responsibilities Project, site, construction manager Site superintendent, engineer Plant engineer, foreman Foreman, supervisor Project fire prevention officer HSE officer, representative All employees Information and training for site personnel HSE induction and training On-site safety induction Site-specific safety induction Follow-up inductions Safety inspections Work induction Site rules Working hours Working practices Hazardsâ&#x20AC;&#x2122; warning signs and notices Working conditions Protective clothing and equipment Fire precautions Employees transport Consultation procedures Emergency procedures Fire prevention management controls First aid, medical provision Evacuation Accident, incident reporting Welfare Operations Operational planning and control Emergency preparedness and response Refusal to work on the grounds of HSE Information to subcontractors and other contractors Selection of subcontractors Communication and co-operation Method statements Waste management Site clearance, restoration and rehabilitation
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3.3.14.10. 3.3.14.11.
Contamination contingency planning Activities with potential impact on the environment and/or risks to health & safety 3.3.15. Control of nonconforming outputs 3.3.16. Control of documents and data 3.3.17. Control of records 3.3.18. Performance evaluation 3.3.18.1. Monitoring, measurement, analysis and evaluation 3.3.18.2. Evaluation of compliance 3.3.18.3. Audits 3.3.18.4. Non-conformity reports (NCR) 3.3.18.5. Customer satisfaction 3.3.18.6. Analysis and evaluation 3.3.18.7. HSE reports 3.3.18.8. Management review 3.3.18.8.1. Management review inputs 3.3.18.8.2. Management review outputs 3.3.19. Improvement 3.3.19.1. Continual improvement 3.3.19.2. Lessons learned 3.3.19.3. Management review outputs implementation 3.3.19.4. Nonconformity and corrective action 4.
Forms
5.
Records
6. Attachments 6.1. Environmental policy 6.2. Occupational health and safety policy 6.3. Applicable legislation 6.4. List of HSE management system documents 6.5. Contract requirements 6.6. Project organization chart 6.7. Environmental aspects analysis - objectives/targets 6.8. OH&S risk assessments 6.9. Project specific HSE work instructions 6.10. Project specific HSE method statements 6.11. Subcontractorsâ&#x20AC;&#x2122; HSE plans 6.12. List of plant & equipment (to be used for the works) 6.13. List of materials, plant & equipment (to be incorporated in the works) 6.14. Local conditions 6.15. Weather conditions 6.16. Infrastructure 6.17. Training program 6.18. Audit program 6.19. Sample forms/records E.6
Risk management
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References •
International Organization for Standardization (ISO) ISO/TC 262 - Risk management http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=629121 ISO © All Rights Reserved
Please also refer to Chapter “F.4 Risk Management” pages 309 to 310 of AMCI - IAP - Part I - In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory E.6.1
Project risk management plans
General A risk management plan is a detailed plan of action for managing risk. Risks from various sources, such as: • • • • • • • • • • • • • • • • • • • • • • • • •
Top management sub-standard qualifications and/or performance Country management sub-standard qualifications and/or performance Project management sub-standard qualifications and/or performance Personnel sub-standard qualifications and/or performance Resources shortages Financing shortages Client(s) attitude Climate extremes Construction faults Contract suspension Country instability Design faults Design originality Emergencies Environmental pollution Force majeure situations Materials’ faults OH&S accidents, incidents Quality failures Schedule delays Social unrest Subcontractors’ sub-standard performance Suppliers’ non-compliance Transportation risks Unreliable fleet of equipment
should be considered, listed, assessed and controlled. Risk management culture should be cultivated from top to bottom in the company hierarchy.
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Without understanding, unconditional support from and involvement of the top management, a risk management plan is another useless paper exercise. •
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•
Site personnel tend to forget paper exercises and chase the work on an hourby-hour basis. Detailed and complete schedules, not to mention plans, may be entirely ignored. This construction management method might be named as “idiots run” but it was proven effective, most of the times!
Optimistic illusions are great companions but poor business advisers. •
Lesson learned. The top management of a construction company did not accept a factual risk assessment -prepared by its resident manager who had spent twenty years in that particular country of operations -on a force majeure situation- and did not demobilise its resources in time; the company suffered heavy losses.
Proposed brief outline process A construction project may be very complicated, in most of the cases, but, at the same time, it is well structured and may be planned to the last detail. Detailed (Level IV) schedules usually contain all the information required for a proper risk assessment -activities, links, interrelations, productivity’ assumptions, quality control requirements, resources, time span and deadlines. Task ownership agreements specify, in advance, those responsible for each and every activity related to the project. The project planner will prepare specific electronic “project activities’ risk assessment” matrices/tables for each task owner, where, for each activity, the source of risk (delays, faults, failures etc.) will be assessed, its level will be evaluated and control measures will be proposed and approved. The project management team will review meticulously the risk management matrices for the entire project. For each project activity, the risk level will be assessed in optimistic, moderate and pessimistic scenarios. The task owner, the site manager and the project manager will select the scenario they consider more appropriate for each activity, based on company, client and country historical data, and their experience in similar situations and projects. Each risk assessment matrix will be agreed by the task owner, the department manager, the site manager and the project manager and will be attached to the task ownership agreement.
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Depending on the risk level of each activity the project management team will adjust the schedule and the budget of the project accordingly. The additional costs -if anywill be charged to the company/country/project overheads accordingly. All activities related to the company management that lay above the authorities of the project management team, (financing, customs clearance, taxes’ payments, provision of resources etc.) should have been risk-assessed by those responsible (company management, country management etc.) at tender stage, at the final contract review. These risk assessments will be sent to the project management team for their consideration. A risk management plan will be prepared by the project management team, to incorporate all project related activities’ risk assessments, their levels and respective controls. The risk management plan will be sent to the company/country management for their review and/or approval; it will be published in the project intranet. The risk management plan will be reviewed every six months, or when required, after incidents or emergencies, by the same teams, as above mentioned. E.7
Security management
Reference •
E.7.1
Centre for the Protection of National Infrastructure (CPNI) http://www.cpni.gov.uk/ Crown Copyright 2017 Project security plans
Security plans preparation and implementation should be outsourced to experts. At least three security plans are essential and should be established: • • •
Personnel (work, stay, travel) security; Establishments (camps, offices, equipment, plant, materials) security; Information (cyber) security.
The project management team will invite the experts that have produced, established, operate and audit the company security plans and protocols or other specialist subcontractors that may have been invited and offered at tender stage or new ones, to participate in a tender process for the preparation, establishment, training and implementation of the project security plans. The company subcontracting procedure will apply. The particular project conditions (contract, client, country legal and security systems) will be taken into consideration.
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The successful subcontractor will present draft security plans (detailed, sourced and priced) to the company security superintendent(s) and the project management team for their consideration. The total cost of the security plans’ cycle (production, implementation, training, reviews, audits and revisions) should not exceed the estimated sum at tender stage. The project manager will approve the security plans. The country manager will authorise their implementation. A specific project cost code will be established where all the expenses related to the project security will be charged. The security plans will be submitted to the client and the local authorities (if required or considered necessary) for their information. The project security superintendent will be responsible for the implementation of the security plans for the personnel and the establishments, while the IT project engineer will be responsible for the information security plan. All project personnel will be trained to comply with the requirements of the security plans, as appropriate. E.8
Emergencies
Definitions Emergency84 - A workplace emergency is an unforeseen situation that threatens the company employees, customers, or the public; disrupts or shuts down the company operations; or causes physical or environmental damage. Emergencies may be natural or manmade and include the following: • • • • • • • • • • •
84
Chemical spills Civil disturbances Civil war Earthquakes Explosions Fires Floods Hurricanes Radiological accidents Social unrest Tornadoes U.S. Department of Labor Occupational Safety and Health Administration “How to Plan for Workplace Emergencies and Evacuations” “OSHA 3088 2001 (Revised)” https://www.osha.gov/Publications/osha3088.pdf Page 184 of 495
• • •
Toxic gas releases Workers revolt Workplace violence resulting in bodily harm and trauma
Emergency plan - a set of predefined and suitably prepared actions for reacting to and managing an emergency. General The company takes the appropriate technical and organizational measures for the prevention, avoidance or restrain and control of emergencies, such as: • • • • • • •
Provision of the appropriate infrastructure Inspections of the installations Provision of emergency equipment Regular testing of its planned response capability through practice drills Improvement of the effectiveness of its responses Appointment of people in charge Provisions for the appropriate handling of such situations should they occur
Please see chapter “I.7 Project emergencies”. E.9
Financial & administration management
Project financial & administration management team • • • • •
Financial & administration manager Financial manager Administration manager Chief accountant Chief administrator
Departments, sections •
Administration Authorities Client Public Public relations Human resources Personnel Health care Entertainment Services Training Travel Camps Establishments Utilities Security
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Financial Authorities Accounting Assets Budget Banks Cash flow Claims Cost control Financing Guarantees Insurances Invoices Payments Payroll Materials Plant Stores Legal
Personnel selection process •
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The company human resources department will prepare a shortlist of candidates for the position of the project financial & administration manager, at tender stage. The shortlist will be sent to the company financial and administration managers upon receipt of the letter of indent for the project. The company financial manager and the company administration manager will interview the candidates and propose a short list to the chief financial officer and the project manager. The chief financial officer and the project manager will select the successful officer and present him/her to the executive committee. The chief financial officer will issue all required authorisations to the project financial & administration manager. The project financial and administration manager will prepare the organization chart of the department that will be approved by the project manager. The project financial and administration manager is responsible for the timely and proper resourcing of the project financial & administration department. The project financial & administration manager and the project manager will select the project financial and administration management teams in the period between the issuance of the letter of intent and the contract signature.
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•
•
The core financial and administration teams should assume duties on or before the project commencement date. The corresponding tender team officers will transfer their knowledge on the project and their duties to the newcomers, progressively, when they are fully trained and aware of their job description elements.
E.9.1
Project financial management
References (indicative list) •
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•
International Organization for Standardization (ISO) ISO/TC 68 - Financial services https://www.iso.org/committee/49650.html © All Rights Reserved International Organization for Standardization (ISO) ISO/TC 251 - Asset management https://www.iso.org/committee/604321.html © All Rights Reserved Wikipedia “Financial management” https://en.wikipedia.org/wiki/Financial_management Privacy policy
Please refer also to chapter “A.3.1 Financial management system”. E.9.1.1
Project financial management plan
Process outline •
The project financial management team will prepare a project specific financial management plan, compliant with: The company financial management system procedures The country legislation The regulatory requirements The country conditions and The contract conditions
•
•
•
The project technical manager and the project manager will review the plan for compliance with the contract conditions. The country financial manager will review the plan for compliance with the country legislation and the regulatory requirements and the adoption of the country conditions for the company and the project. The company financial manager will review the plan for compliance with the company financial management system.
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â&#x20AC;˘
The chief financial officer will approve the plan.
Proposed contents of a project financial management plan 1.
Scope of the procedure
2.
Field of application of the procedure and responsibilities
3. Description of the procedure 3.1. Definitions 3.2. References 3.2.1. Applicable legislation 3.2.2. Statutory & regulatory requirements 3.2.3. National & international standards 3.2.4. Contract documents 3.2.5. Company management system 3.2.6. International standards - publications 3.3. Project financial management plan 3.3.1. Contents and guidelines of a project financial management plan 3.3.1.1. The country 3.3.1.2. The client 3.3.1.3. The contract 3.3.1.4. The project 3.3.2. Leadership 3.3.2.1. Leadership and commitment 3.3.2.2. Management system 3.3.2.3. Code of ethics 3.3.2.4. Code of conduct 3.3.2.5. Customer focus 3.3.2.6. Social responsibility 3.3.2.7. Organizational roles, responsibilities and authorities 3.3.2.8. Task ownerships 3.3.2.9. Competence & training 3.3.2.10. Awareness 3.3.3. Communication system 3.3.4. Information system 3.3.4.1. Documented information 3.3.4.1.1. Creating and updating 3.3.4.1.2. Control of documented information 3.3.5. Project financial management team 3.3.5.1. Members 3.3.5.2. Job descriptions 3.3.5.3. Authorisations 3.3.6. Planning 3.3.6.1. Accounting cost codes 3.3.6.2. Accounting hardware 3.3.6.3. Accounting intranet 3.3.6.4. Accounting software 3.3.6.5. Accounting system 3.3.6.6. Budget
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3.3.6.7. Compliance obligations 3.3.6.8. Estimate 3.3.6.9. Financial software 3.3.6.10. Financing 3.3.6.11. Financing risks 3.3.6.12. Insurances 3.3.6.13. Income forecast 3.3.6.14. Cost to complete forecast 3.3.6.15. Project objectives 3.3.6.16. Planning of changes 3.3.7. Operations 3.3.7.1. Accounting 3.3.7.2. Bank guarantees 3.3.7.3. Budget control 3.3.7.4. Cash flow 3.3.7.5. Claims 3.3.7.6. Costs 3.3.7.6.1. Direct 3.3.7.6.2. Indirect 3.3.7.6.3. Overheads 3.3.7.7. Debt control 3.3.7.8. Expenses 3.3.7.9. Financing 3.3.7.10. Payments 3.3.7.11. Payroll 3.3.7.12. Plant 3.3.7.13. Profit & loss statement 3.3.7.14. Revenues 3.3.7.15. Stores 3.3.7.16. Taxes & levies 3.3.7.17. Valuations/invoices 3.3.8. Performance evaluation 3.3.8.1. Monitoring, measurement, analysis and evaluation 3.3.8.2. Evaluation of compliance 3.3.8.3. Financial audits 3.3.8.4. Financial reports 3.3.8.5. Customer satisfaction 3.3.8.6. Interested partiesâ&#x20AC;&#x2122; satisfaction 3.3.8.7. Management review 3.3.8.7.1. Management review inputs 3.3.8.7.2. Management review outputs 3.3.9. Improvement 4.
Forms
5.
Records
6. Appendices 6.1. Contract documents 6.2. Applicable legislation
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6.3. 6.4. 6.5. 6.6. 6.7. 6.8. 6.9. 6.10. 6.11. 6.12. 6.13. 6.14. 6.15. 6.16. 6.17. 6.18. 6.19. 6.20. 6.21.
Applicable standards Statutory and regulatory requirements Other requirements Company management system requirements Project organization chart Approved job descriptions Project authorisations Project estimate Project budget Accounting system Accounting cost codes Accounting hardware Accounting software Accounting intranet Financial software Income forecast Cost to complete forecast Bank guarantees Sample forms/records
E.9.1.2
Project accounting
Process •
•
The project accounting system will be established, operated and managed at the project office, for mega and major projects, offline85. The accounting system’s Users Intranet Hardware Software Storage media Authorisations Entries Statements Reports Formats Controls Audits
will fully comply with the company procedures and protocols, the contract conditions and the country legislation. •
85
All accounting entries related to the project will be transferred to the project’s account.
Refers specifically to an internet connection Page 190 of 495
•
All accounting entries/statements related to the project will be checked by the project chief accountant, reviewed by the project financial & administration manager and approved by the project manager.
Project account and cost codes Case study – sample outline A project for the fabrication of a plant in the petrochemical industry may undergo various phases, such as: • • • • • • • • •
Process design Front-end engineering design Basic engineering design Detailed engineering design Procurement Construction Pre-commissioning Commissioning Start-up
The project cost coding system will be based on the company’s cost coding system and the work breakdown structure (WBS) of the project so that the planning/scheduling, cost control and accounting systems correlate. The direct costs of the project may be split into the following main categories (indicative alphabetical list): • • • • • • • • • • • • • • • • • • • • • •
Airstrip Buildings Control systems Drums, tanks and reactors Earthworks Electrical installations Fire prevention, protection & fighting Foundations Harbour Heat exchangers Heaters and stacks Instrumentation Insulation Landscape Networks Painting Pipelines and piping Process Pumps and compressors Quarries Repairs Roads
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• • • • • • • • • • •
Security Services Sewers Site development Special equipment Structures Telecommunications Temporary facilities Tools, equipment and consumables Towers Water networks
References (indicative list) •
•
European Union European Commission Eurostat “European system of accounts (ESA 2010)” http://ec.europa.eu/eurostat/cache/metadata/Annexes/nasa_10_f_esms_an1.pd f © European Union, 2013 United Nations “System of National Accounts 2008” https://unstats.un.org/unsd/nationalaccount/docs/SNA2008.pdf Copyright © 2009 European Communities, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations and World Bank All rights reserved
E.9.1.3
Project accounting computer network
Competent and authorised company officers will establish, test and run the project accounting computer network (intranet); a server and terminal monitors for its users and company owned software should be installed. Competent & authorised company officers will establish the project chart of accounts and train all personnel that will operate the project accounting system. The project accounting intranet will run offline86 only. The IT department will generate unique personal codes and passwords, for each user, as per company procedures. The IT department will change the passwords regularly.
86
Refers specifically to an internet connection Page 192 of 495
The IT department will monitor the usage of the system, constantly (24/7). The project financial manager and the project chief accountant will have authorised (in writing) access to all parts of the system. Financial intranet shut down (emergencies) •
•
•
•
The project manager and the project financial manager will be authorised to jointly shut down the financial intranet system, in cases foreseen and clearly specified by the company procedures, under strict company protocol. The IT department will encrypt and transfer the full content of the financial department’s server in safe movable storage media before the shut down. The movable storage media will be sent to the company head office by the project manager, under strict company protocol. The IT department will clear, format and remove the server storage media.
References (indicative list) •
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•
International Organization for Standardization (ISO) ISO ICS 35 35.110 - Networking Including local area networks (LAN), metropolitan area networks (MAN), wide area networks (WAN), etc. https://www.iso.org/ics/35.110/x/ © All Rights Reserved International Organization for Standardization (ISO) ISO ICS 03 03.060 - Finances. Banking. Monetary systems. Insurance Including personal financial planning https://www.iso.org/ics/03.060/x/ © All Rights Reserved International Organization for Standardization (ISO) ISO/TC 68 Financial services https://www.iso.org/committee/49650/x/catalogue/ © All Rights Reserved International Organization for Standardization (ISO) ISO/IEC JTC 1/SC 27 IT Security techniques https://www.iso.org/committee/45306/x/catalogue/ © All Rights Reserved
E.9.1.4
Project bank guarantees
Typical bank87 guarantees88 in the construction industry89 87
Wikipedia “Bank” https://en.wikipedia.org/wiki/Bank Privacy policy Page 193 of 495
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•
Bid bond It is required at tender stage It is issued by a financial institution acceptable to the client It has a limited validity, specified by the tender documents It has a nominal value, specified by the tender documents Its terms and conditions are specified by the tender documents It is returned to all unsuccessful bidders upon contract award process closure It serves the purpose of preventing the bidders from withdrawing from the bid before its closure or the successful bidder from not accepting or executing the awarded contract Advance payment guarantee It is required before the payment of the advance It is issued by a financial institution acceptable to the client It has a validity specified by the contract documents It has a nominal value equal to the advance payment or as specified by the tender documents Its terms and conditions are specified in the contract documents Its value may be reduced at stages -as it is repaid proportionally to the monthly progress payments- as specified in the contract documents It is cancelled, usually, when the advance is fully repaid or as specified in the contract documents It serves as a collateral for reimbursing the advance payment Performance bond90 It is required in a period specified in the contract documents, usually after the contract signature It is issued by a financial institution acceptable to the client It has a validity specified by the contract documents It has a nominal value as specified by the tender documents Its terms and conditions are specified in the contract documents It is returned to the contractor with the successful final handing over of the project at the end of the maintenance or the liability period, as specified in the contract documents It serves as collateral for the clients’ expenses if the project is not delivered, fully, according to the terms and conditions of the contract.
Process 88
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Wikipedia “Guarantee” https://en.wikipedia.org/wiki/Guarantee Privacy policy Designing Buildings Wiki “Bonds in construction contracts” http://www.designingbuildings.co.uk/wiki/Bonds_in_construction_contracts © Designing Buildings Ltd. 2017 Privacy Policy Wikipedia “Performance bond” https://en.wikipedia.org/wiki/Performance_bond Privacy policy Page 194 of 495
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The country financial department will obtain the guarantees from financial institutions approved by the client. The formats and the terms & conditions of the guarantees will fully comply with the project contract documents. The guarantees will be submitted to the client, on time, as specified in the tender and the contract documents. The validity of the guarantees will be updated, as required. The guarantees will be returned to the contractor as and when specified by the contract documents.
E.9.1.5
Project expenses
Project expenses’ cost centres •
• •
• • •
•
•
Overheads Company Country Project Tender Financing Company Banks Client Guarantees Insurances Mobilisation Camps Establishments External services Materials Personnel Plant Running expenses Design Designer(s) External auditing External services Procurement Materials Raw Fabricated Equipment Tools Fuel External auditing
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•
• • • • • •
External services Transportation Storage Construction Works Personnel Materials Plant Equipment Tools Running expenses Subcontractors External auditing External services Preliminary handing over Pre-commissioning Final handing over Demobilisation Taxes & levies Other
Process •
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•
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•
All project related expenses or estimates of expenses will be proposed (substantiated) by the department head, checked, in advance, by the project quantity surveyor (budget control), reviewed by the technical & controls manager (cost control), authorised by the project financial manager (cash flow control) and approved by the project manager (white card). Expenses to be made for the project by the company head offices officials will still require the prior authorisation of the project financial manager and the approval of the project manager or their authorised corresponding appointees at the head offices. The project chief accountant is the only one authorised and responsible for entering all, the approved, expenses related to the project in the project account. Authorised accounting clerk(s) will do the actual entering into the system. Project expense reports will be prepared and distributed as specified by the company financial management procedures and the project financial management plan under strict confidentiality protocol. The specifics of this process will be incorporated in the project financial management plan.
E.9.1.6
Project valuations, invoices
The contract sum will be paid to the contractor progressively as provided in the
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contract documents. Methods of payments • • • • •
Advance(s) Project progress indices Work executed quantities’ measurements Periodical lump sum instalments Other
Process •
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•
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•
A valuation (usually on a monthly basis) will be produced by the contractor for each payment and submitted to the client for approval. The valuation is produced, jointly, by the construction and the controls departments. The method of its production, the required signatures (production, checking, and approval), the value/percentages of the reduction bonds (retention and defects liability bonds) its format and the required supporting documents / measurements will comply with the contact provisions and will be agreed with the client in advance. Once the valuation is approved, then an invoice will be raised by the financial department of the contractor (project or country). It will be registered with the appropriate authorities, as required by the country legislation and the contract conditions, and submitted to the client for payment. In cases when the project is built in remote locations and there are no appropriate authorities in the area, then the project financial activities, which are related to authorities, banks etc. will have to be transferred to the financial department of the country head office or the project management should establish a department in the nearest town or where appropriate. The project management team should be authorised and assisted proportionally to the importance, the magnitude and the complexity of the project, as being paid on time was, is and will always be the top priority of the company. Lesson learned A contract provided for the construction of seven projects in various locations around a country. The projects’ construction was managed by the sites’ management teams. The contract was managed by the project management team. The monthly work progress valuations were produced locally by the site managers, approved by the project manager (who would travel to all the sites at the end of each month for this purpose) and the client representatives. The project manager would combine all monthly valuations in one contract monthly valuation.
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The project financial manager would raise one invoice and register it with the taxation department. The project manager would travel to the town where the headquarters of the client were based, meet with the top management of the client, submit the invoice with the approved valuations and collect the monthly payment check. There was no involvement of the company management in this process. The project financial outcome was better than any optimistic estimate or forecast. •
The company management should assist, and not manipulate, the project management team, as required. Lesson learned Successful project managers usually face unnecessary criticism from incompetent, long serving the company, line managers. These “bureaucrats” claim successes of others as their own and reject responsibilities of their faults, being experts in the “blame game”.
E.9.1.7
Project income forecast
The project planner will prepare a draft forecast of projected revenues as soon as the contract is signed and the project detailed schedule is finalized and approved by all parties. The forecast will be reviewed by the project quantity surveyor, checked by the technical & controls and financial managers and approved by the project manager. The forecast will be finalized and published as soon as the client approves the detailed project schedule. Factors to consider are: • • • • • • • • • •
Project financing Project schedule Country conditions Contract conditions Past experience with the client Present financial situation of the client Project supervision Project personnel Unforeseen events Associated risks
The forecast will be reviewed monthly and revised quarterly based on actual payments’ time. The forecast will form the basis for the project financing estimates/requirements. The project financial systems should be ideally linked to the project scheduling
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systems for progress reporting and forecasting. E.9.1.8
Project financing
Project financing is a major factor for the success or the collapse of a project in the construction industry. Funding instruments, cash flow and risks associated with the project financing should be identified at tender stage, specified at project financial planning stage, and corrected regularly during the course of the project. A special purpose vehicle (SPV)91 would isolate the company from financial risk. A detailed feasibility study on project financing should be prepared and incorporated in the project financial management plan. The project financial manager and the project manager should be fully aware and control the project financing at all stages of the project. A project bank account92 should be established. All the project bank account transactions will bear the -joint- signatures of the project financial manager and the project manager. Replacement signatories, in cases of absences, will be nominated in the project financial plan. The other members of the project management team should be informed, as appropriate, on project financing, as most of the project failures and project delays arise due to the lack of reliable financing. Monthly reports on project financing should be prepared by the financial department and incorporated in the monthly project financial report. Sources of project financing •
•
91
92
Primary sources Project cash flow Bank loans Secondary sources Shareholders Wikipedia “Special purpose vehicle” https://en.wikipedia.org/wiki/Special_purpose_entity Privacy policy Designing Buildings Wiki “Project bank account” http://www.designingbuildings.co.uk/wiki/Project_bank_account © Designing Buildings Ltd. 2017 Privacy Policy Page 199 of 495
•
Banks & financial institutions Investment firms Other sources
Typical project financing risks (indicative list - alphabetical order) • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Authorisations Banks & financial institutions Cash flow Changes in laws Construction Contractual Corruption Country Currency Debt Default Design Dispute resolution Environmental Force majeure Health Insurance Liability Lisences & permits Management Offset Operational Payments Personnel Plant & equipment Political Procurement Project owner Repayment Safety Security Site acquisition Social Supply Transportation Unrest War Weather
References (indicative list) •
Stefano Gatti “Project Finance in Theory and Practice” https://www.elsevier.com/books/project-finance-in-theory-and-practice/gatti/978-
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0-12-373699-4 Copyright _ 2008, Elsevier Inc. All rights reserved. E.9.1.9
Project profit & loss statement
A construction profit & loss statement has four (4) major sections: • • • •
Revenues Direct costs Indirect costs Overheads
A profit & loss statement should be prepared by the project financial manager, reviewed by the project controls manager and approved by the project manager as and when foreseen by the company management procedures and the project financial plan. Cut off dates will be planned so that complete data are available in due course for the preparation of the statement. The statement will be sent to the country management and the executive committee in strict communication protocol. The specifics of the process will be included in the project financial plan. E.9.1.10
Project financial reporting
Precise, timely and accurate, but also strictly confidential, financial input and reporting is essential for any business success. The company protocols, procedures, systems and formats should be complied with, meticulously. E.9.1.10.1
Mega & major projects financial reporting
The project financial manager and the project chief accountant will prepare and check all reports of the department. The project financial manager will approve those reports, which are specified in his/her job description. The project manager and/or the site manager will have access to all financials reports and they may audit and check any or all entries, reports or parts of the system. They will approve those reports of the financial department specified in their job description. The rest of the project management team will have access to those financial reports related to their job description, once prepared and before they are approved and released in the project intranet. In case of disagreement, the report will be amended by mutual consent with the owner of the report. The reports will be thoroughly analyzed and discussed in regular, scheduled and
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structured meetings by the project management team. The project manager and the project financial manager will inform their line superintendents when and as required by the standing, specific for the project or general, company procedures. The raw data entries and the produced (daily, weekly, monthly, quarterly and yearly) project financial reports will be transferred to the country’s and the company’s main computer financial intranet systems under strict and controlled protocol, always offline93, on a specified, by the project financial management plan, basis. The same will be available to internal or external auditors, for their review only, as per company procedures and protocols, during their scheduled, regular and authorised audits. Only approved reports may be handed over to auditors under strict confidentiality written agreement, as described in the company protocols. Outline sample titles of reports, produced by the project financial department, may include: Client • • • •
Approvals, rejections Audits Procedures Satisfaction
Money (cash) flow •
•
• •
Banks’ transactions Instalments Credit Debit Projections Scheduled payments Credit cards Checks Cash Received Paid Cash flow statement Cash flow forecast
Income • •
93
Submitted valuations, invoices Submitted claims Refers specifically to an internet connection Page 202 of 495
• • • • • •
Approved invoices Approved claims Rejected valuations Summary (submitted/approved/paid) invoices Summary (submitted/approved/paid) claims Other (interest, returns etc.)
Costs • • • • • • • • • • • • • • • • •
Cost control Expenses (paid) Expenses (outstanding) Banks Guarantees Insurances Payroll Materials’ charges Plant charges External services providers’ invoices Designers’ invoices Suppliers’ invoices Subcontractors’ invoices Claims - employees Claims - designers/suppliers/subcontractors Taxes Other
Stores • • • •
Inflows Consumption Balance Orders (pending/new) Camps/offices/clinic Materials Equipment Consumables Foodstuff
Budget •
Budget control review
Project profit & loss statement Legal •
Claims of the company Authorities Banks
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•
•
•
•
Client Employees Public Designers Subcontractors Suppliers Third parties Claims against the company Authorities Banks Client Employees Public Designers Subcontractors Suppliers Third parties Fines/penalties/compensations Authorities Banks Client Employees Public Designers Subcontractors Suppliers Third parties Court cases Authorities Banks Client Employees Public Designers Subcontractors Suppliers Third parties Other
Requirements • • • • •
Credit Cash Personnel Support Other
E.9.1.10.2
All other projects financial reporting
Competent & authorised company officers will establish the project chart of accounts
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at the financial department of the company country head office and train all personnel that will operate the project accounting system. The country head office will handle all financial data processing and reporting as specified in the company procedures and as agreed by the country manager, the country financial manager and the project manager. Raw data related to the site financial activities, such as: • • • • • • • • • • • •
Client satisfaction Valuations Personnel time cards Plant charges Camps’ expenses Petty cash Requirements Claims Legal issues Insurances Guarantees Taxes, levies etc.
will be prepared by the site staff and sent to the head office on a monthly basis or as required, for further processing, report preparation and publishing, as per company procedures. E.9.1.11
Project financial auditing
The project finances will be audited by authorised internal and/or external auditors in regular or unscheduled audits. The yearly regular financial auditing schedule will be prepared by the company financial auditors, approved by the chief financial officer and sent to the site, well in advance, for their information. The auditors will review the project financial activities versus the project financial management plan, the company financial systems and international standards and practices. The report will be presented to the project management team, on site, upon completion of the audit. Non-conforming or irregular findings will be highlighted; improvements will be proposed and discussed. The project management team will take appropriate corrective or preventive actions and inform the line of command accordingly. The auditors will take off-site their report only. No data will leave the site unless authorised by the chief financial officer under strict protocol.
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Secondary reports, bypassing the project management team, should be strictly forbidden, as unethical. Reference •
E.9.2
International Organization for Standardization (ISO) ISO/TC 251 Asset management https://www.iso.org/committee/604321.html © All Rights Reserved Project administration department
The administration department deals with all issues related to: •
•
•
•
Client Services Satisfaction Personnel Accidents Contracts Entertainment Food Health care Insurances Legal Living conditions Travel Visas Work permits Camps running & control Offices Dormitories Restaurants Environment Services Utilities Clinic Stores Security (personnel & establishments) Company resources External subcontractors
Administration professions An indicative list of project administration professions in various types of construction projects is outlined here below. •
Chief administrator
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• • • • •
•
Administrator Security officer Translator Travel officer Offices’ personnel Secretary Clerk Camps’ personnel Camp manager Cleaner Cook Food-staff purchaser Security guard Waiter
E.9.2.1
Administration department monthly reports
Outline sample titles of sections of monthly reports, produced by the project administration department, may include: •
• • • •
•
• • • • • •
E.9.3
Emergencies Report(s) Updated plan Authorities Client Public Personnel Work permits Visas Travel Living conditions Health issues Camps Dormitories Offices Messes Clinic report Services Utilities Security Social responsibility Constraints Legal issues Lessons learned Requirements Financial & administration quarterly & yearly reports
Sample proposed contents:
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Financial quarterly & yearly reports • • • • • • • • • • • • • • • •
Authorities Client satisfaction Public Audits Budget control Cost control Credit & debit account Financing Guarantees Insurances Legal Levies & taxes Liabilities Money (cash) flow Profit & loss account Receivables
Administration quarterly & yearly reports • • • • • • • • • • • • • •
E.10
Authorities Client satisfaction Public Personnel Subcontractors Camps Security Services Utilities Social responsibility Constraints Legal Lessons learned Requirements Project plant management
Please also refer to chapters: • • • • • • • • • •
A.9 A.9.1 A.9.2 A.9.2.1 A.9.2.2 A.9.3 E.11.2 E.11.2.1 E.11.2.2 I.2.3.1.14.3
Plant and equipment Construction plant & equipment Spare parts, tyres, fuels & lubricants Spare parts & tyres Fuels & lubricants Plant service establishments Project produced materials Concrete Asphalt Plant maintenance and repairs workshops
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• • • • • • •
I.2.3.1.15.2 I.2.4 I.2.4.1 I.2.4.2 I.2.4.3 I.2.5 I.9.6
Plant department storage facilities Production plant establishments Concrete batch plant Asphalt plant Crushers Quarries & borrow-pits Borrow pits & quarries’ reinstatement
Process •
•
•
•
•
•
•
•
•
•
•
•
The project plant manager will receive the preliminary list of the requirements for project plant and equipment that was prepared at tender stage, and the related correspondence, from the project manager. He/she will check whether the required equipment are available in the country or in any other country that the company operates or the company should rent or buy equipment from the market (local or international). The project plant manager will present the final list of requirements to the project management team shortly after the project detailed schedule is approved. The list will refer to the source for each piece of equipment, the earliest date of arrival at the site of works, the mobilisation process and the associated costs. Depending on the sum to be invested, the list will require review and approval by authorised signatories according to company procedures. Driving condition remains the fact that the equipment should be available at the site on or before the date, they are scheduled to start working. Once the list is approved then the mobilisation process commences as scheduled. The project plant manager will pay a first visit to the site and approve the final location of the establishments (garages, workshops, service bays, fuel stations, spare parts stores, equipment-parking areas, batching plants, etc.) in cooperation with the site manager. They will review and approve the part of the mobilisation schedule that is related to the plant establishments. They will visit the quarries’ locations, if the company will produce aggregates by its own means or the sites of potential suppliers of aggregates and obtain approvals and/or quotations. They will also finalize the list of suppliers for water, fuel and spare parts and obtain quotations. A report will be prepared and presented to the project management team for
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their information. E.10.1
Plant professions
An indicative list of plant professions in engineering construction projects that utilise equipment owned by the contractor is outlined here below. • • •
• •
•
•
•
• •
Plant manager Plant engineer Secretariat/accounts/records Secretary Clerk Plant general supervisor Stores Spare parts storekeeper Lubricants storekeeper Fuels storekeeper Clerk Labourer Supervisors Body repairs workshop Electrical Engine room Heavy equipment Land Marine Light equipment Transport Mechanics Heavy Light Engines Diesel Electric Gas Petrol Other Tyres Service mechanics Service bay In-situ Machinery, body repairs workshop Body repairs technician CNC technician Industrial painter Sand blasting technician Welder Auto-electrician Transport Fuel attendant
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Drivers Heavy • Asphalt bitumen spreader • Bus • Dump truck • Flat-bed trailer • Fuel truck • Lorry • Low-bed trailer • Service truck • Water truck Light • Car • Light truck • Mini-bus • Pick-up Operators Crane • Mobile • Tower Concrete paver Concrete pump Concrete transit mixer Dozer Drilling machine Excavator Finisher Grader Marine equipment • Dredger • Flat barge • Floating crane • Jack-up platform • Split barge • Tug boat Pipe layer Rollers • Steel • Vibrating • Wheel Sand blasting machines Cleaner Labourer E.11
Project installation materials, plant & equipment
Please refer also to chapter “A.10 Installation materials, plant & equipment” E.11.1
Project natural materials
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Please refer also to chapter “A.10.1 Natural materials”. E.11.1.1
Air
For the purpose of this chapter “air” is defined94 as ”the mixture of gases that surrounds the earth and that we breathe”. “Clean air is considered to be a basic requirement of human health and well-being. However, air pollution continues to pose a significant threat to health worldwide”95. Fresh, good quality air is required at every workplace, indoors and outdoors. The production of gasses, smoke, fumes, dust, chemical and other air-borne respiratory contaminators are common side effects in a construction site. The reduction of oxygen and the consequent presence of poisonous air are deadly realities, in confined spaces. Effective work methods96, proper personal protective equipment and appropriate ventilation systems should mend, if not eliminate these health and life endangering conditions. Risk assessments should always take into consideration the effect of each activity in the quality of air and appropriate corrective solutions should be studied, proposed and implemented. References (indicative list) •
•
94
95
96
World Health Organization (WHO) Europe “Air quality guidelines - global update 2005” ISBN 92 890 2192 6 http://www.euro.who.int/__data/assets/pdf_file/0005/78638/E90038.pdf © World Health Organization 2006 International Organization for Standardization (ISO) “ISO/TC 146 - Air quality” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=52702 Cabridge Dictionary “Air” in the English Dictionary http://dictionary.cambridge.org/dictionary/english/air © Cambridge University Press 2017 World Health Organization (WHO) Public Health and Environment (PHE) “Air quality guidelines - global update 2005” http://www.who.int/phe/health_topics/outdoorair/outdoorair_aqg/en/ © WHO 2016 Example The introduction of water sprinklers reduces the amount of air-borne dust at an aggregates’ production crusher site. Page 212 of 495
•
•
© All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 146/SC 2 - Workplace atmospheres” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=52736 © All Rights Reserved International Organization for Standardization (ISO) “ISO 18158:2016(en) Workplace air — Terminology” https://www.iso.org/obp/ui/#iso:std:iso:18158:ed-1:v1:en © 2016 ISO — All rights reserved
E.11.1.1.1
Air contaminant construction workplaces
The construction sites are workplaces with high risk of air pollution hazards. Typical hazardous projects • • • • • • • •
Chemical plants Energy plants Heavy civil works Marine works Nuclear plants Oil & gas plants Sewage treatment plants Water & sewer networks
“Airborne contaminants can present a significant threat to worker health and safety. Thus, identification and quantification of these contaminants through air monitoring97 is an essential component of a health and safety program at a hazardous waste site.” Air monitoring is the only way to measure the quality of air in these workplaces. Indicative pollutant construction workplaces with air-borne contaminant particles, gasses, emissions, dust, smoke, vapour & fumes: •
97
Open-air workplaces Asphalt (production & placing) Borrow pits Bulk excavations Concrete (production & placing) Crushers Process areas Quarries U.S. Department of Labor Occupational Safety and Health Administration “Guidance Manual for Hazardous Waste Site Activities - Chapter 7 Air monitoring” https://www.osha.gov/Publications/complinks/OSHG-HazWaste/4agency.html Privacy & Security Statement Page 213 of 495
•
•
Service bays Trenches Tunnels Waste disposal areas Wastewater ponds In-door places Dormitories Kitchens Laboratories Offices Process facilities Recreational facilities Stores Workshops Blacksmith Carpentry Electrical Engine room Machinery Painting Plant Welding Confined spaces Combustion chambers in furnaces Ductwork Enclosed drains Floating barges Open-topped chambers Vessels Sewers Silos Storage tanks Unventilated or poorly ventilated rooms
The company should abide with its legal obligations, regulatory and contractual requirements and its own management system’s provisions, and protect the environment and the health & safety of its employees and all individuals who live or work in or near its construction sites and are affected by its air polluting operations, by all available means. References (indicative list) •
Health and Safety Executive (HSE) UK “Managing health and safety in construction Construction (Design and Management) Regulations 2015 Guidance on Regulations” L153 (First published 2015) ISBN 978 0 7176 6626 3 http://www.hse.gov.uk/pubns/priced/l153.pdf © Crown copyright 2015
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•
•
•
•
•
•
•
•
Health and Safety Executive (HSE) UK “Respiratory protective equipment at work A practical guide” HSG53 (Fourth edition, published 2013) ISBN 978 0 7176 6454 2 http://www.hse.gov.uk/pubns/priced/hsg53.pdf © Crown copyright 2013 Health and Safety Executive (HSE) UK “Controlling airborne contaminants at work A guide to local exhaust ventilation (LEV)” SG258 (Second edition, published 2011) ISBN 978 0 7176 6415 3 http://www.hse.gov.uk/pubns/priced/hsg258.pdf © Crown copyright 2011 Health and Safety Executive (HSE) UK “Control of substances hazardous to health The Control of Substances Hazardous to Health Regulations 2002 (as amended) Approved Code of Practice and guidance” L5 (Sixth edition, published 2013) ISBN 978 0 7176 6582 2 http://www.hse.gov.uk/pubns/priced/l5.pdf © Crown copyright 2013 Health and Safety Executive (HSE) UK “Safe work in confined spaces Confined Spaces Regulations 1997 Approved Code of Practice and guidance” L101 (Third edition, published 2014) ISBN 978 0 7176 6622 5 http://www.hse.gov.uk/pubns/priced/l101.pdf © Crown copyright 2014 Health and Safety Executive (HSE) UK “Confined spaces A brief guide to working safely” http://www.hse.gov.uk/pubns/indg258.pdf © Crown copyright Health and Safety Executive UK “Guidance on permit-to-work systems A guide for the petroleum, chemical and allied industries” http://www.hse.gov.uk/pubns/priced/hsg250.pdf © Crown copyright 2005 Health and Safety Executive (HSE) UK “Control of diesel engine exhaust emissions in the workplace” HSG187 (Third edition, published 2012) ISBN: 978 0 7176 6541 9 http://www.hse.gov.uk/pubns/priced/hsg187.pdf © Crown copyright 2012 Health and Safety Executive (HSE) UK “Asbestos: The licensed contractors' guide” SG247 (First edition, published 2006)
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•
•
•
ISBN 978 0 7176 2874 2 http://www.hse.gov.uk/pubns/priced/hsg247.pdf © Crown copyright 2006 Government UK Legislation “The Diving at Work Regulations 1997” http://www.legislation.gov.uk/uksi/1997/2776/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Commercial diving projects offshore: Diving at Work Regulations 1997 Approved Code of Practice and guidance” L103 (Second edition, published 2014) ISBN 978 0 7176 6592 1 http://www.hse.gov.uk/pubns/priced/l103.pdf © Crown copyright 2014 Health and Safety Executive (HSE) UK “Commercial diving projects inland/inshore: Diving at Work Regulations 1997 Approved Code of Practice and guidance” L104 (Second edition, published 2014) ISBN 978 0 7176 6593 8 http://www.hse.gov.uk/pubns/priced/l104.pdf © Crown copyright 2014
E.11.1.2
Gravel, sand, silt, and clay
Gravel, sand, silt and clay are basic natural materials. They are extracted from borrow-pits in the vicinity of the project. Standard earth-moving, transporting and screening equipment are used. The plant department should manage these production workplaces. A preliminary quantities’ take-off should be prepared at tender stage, if the tender documents do not contain an analytical bill of quantities, based on the conceptual design and the experience from previous similar projects that the company has constructed in the same area. The nominated or identified as borrow pits areas should be investigated at tender stage for quantities’ availability and properties of the materials. Geological maps of the areas should be obtained and studied. Boreholes may be required to be drilled. Samples of the materials should be sent to the laboratory to be tested for compliance with the specification. The licensing process (contractor, owners, local & environmental authorities) should be clear and standardized by applicable regulations/legislation or the risk of not obtaining a license/permit should be evaluated. The associated to the license/permit, use and extraction costs (lease price, area &
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material unit prices, reinstatement costs) might be specified in applicable directives or binding offers should be obtained or the costs should be calculated by any reasonable means, as applicable. This, again, might be a high-risk evaluation. If non-availabilities or non-conformities or environmental, social, state, legal and/or license/permit obstructions are noticed then the client should be notified accordingly. The project management team should finalize the list of requirements (quantities of materials, plant and equipment), when the design is approved and the bill of quantities is prepared. A project specific work instruction for the production, provision, transportation, use and/or incorporation of each of these materials in the works, should be prepared. Cost centres should be dedicated to each phase of the production cycle and each product. A selling price for each material will be agreed by the plant manager, the construction manager, the site manager and the project manager at the project start-up phase based on company historical data for the same materials. These unit rates will be used for the preparation of the project budget. These rates will be checked by the controls and the accounts departments on a daily basis. The actual unit costs for each material will be reported to the project management team on a monthly basis. They will be used for the monthly budget control report. The actual quantities of materials incorporated in the works will be charged to the respective cost centres, as per relevant company procedures. Excess materials will be charged to the plant department. References (indicative list) •
•
•
International Organization for Standardization (ISO) “ISO/TC 190 - Soil quality” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=54328 © All Rights Reserved ASTM International Standards & Publications “Soil” search https://www.astm.org/search/fullsitesearch.html?query=soil&resStart=0&resLength=10&toplevel=products-andservices&sublevel=standards-and-publications& Copyright © 1996 - 2017 ASTM U.S. DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION “EARTH MANUAL”
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PART 1 THIRD EDITION https://www.usbr.gov/tsc/techreferences/mands/mands-pdfs/earth.pdf United States Government Printing Office E.11.1.3
Rocks
Outline •
•
•
Rocks are basic natural materials. Their solid formations should be blasted, ripped, broken down and/or crushed to the required quantities of graded rock-products. Depending on the size of the project, rock quarries and crushing & screening plants are usually huge industrial workplaces with high investment and valuable return.
•
Production of rock-products is a core activity and should be attended as such.
•
The plant department should manage these production workplaces.
Products • • • • •
Armour rocks Crushed aggregates Crushed sand Crushed stones Hydraulic filters
Process •
•
A preliminary quantities’ take-off of rock-products should be prepared at tender stage, if the tender documents do not contain an analytical bill of quantities, based on the conceptual design and the experience from previous similar projects that the company has constructed in the same area. The nominated -by the client- or identified -by the contractor- quarry areas should be investigated at tender stage for quantities’ availability and properties of the rocks.
•
Geological maps of the areas should be obtained and studied.
•
Boreholes may be required to be drilled.
•
•
Samples of the rocks should be sent to the laboratory to be tested for compliance to the specification. Unit rates for each material, based on company’s experience or offers of approved local suppliers, will be used at tender stage.
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•
•
•
•
•
•
•
•
•
•
•
•
The licensing process (contractor, owners, local & environmental authorities) should be clear and standardized by applicable regulations/legislation or the risk of not obtaining a license/permit should be evaluated. The associated to the license/permit, use and extraction costs (lease price, area & material unit prices, reinstatement costs) might be specified in applicable directives or binding offers should be obtained. If there are no directives or binding offers then the costs should be calculated by any reasonable means; a high-risk evaluation. If non-availabilities, non-conformities, or environmental, social, state, legal or licensing obstructions are noticed then the client should be informed accordingly. The project management team should finalize the list of requirements (quantities of materials, plant and equipment), when the design is approved and the bill of quantities is prepared. A project specific work instruction for the production, provision, transportation, use and/or incorporation of each of these rock-products in the works, should be prepared. Cost centres should be dedicated to each phase of the production cycle and each product. A unit rate for each material will be agreed by the plant manager, the construction manager, the site manager and the project manager at the project start-up phase based on company historical data for the same materials, at same country, at the same area (if available). Similar unit rates may be obtained from approved suppliers operating in the area of the project. These unit rates will be used for the preparation of the project budget. The rates will be checked by the controls and the accounts departments on a daily basis. The actual unit costs for each material will be reported to the project management team on a monthly basis. They will be used for the monthly budget control report. The actual quantities of materials incorporated in the works will be charged to the respective cost centres, as per relevant company procedures. Excess produced materials will be charged to the plant department.
References (indicative list) •
International Organization for Standardization (ISO)
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•
•
“ISO/DIS 19595(en) - Natural aggregates for concrete” https://www.iso.org/obp/ui/#iso:std:iso:19595:dis:ed-1:v1:en © 2016 ISO — All rights reserved ASTM International “Aggregates” search https://www.astm.org/search/fullsitesearch.html?query=aggregates&resStart=0&resLength=10&toplevel=productsand-services&sublevel=standards-and-publications& Copyright © 1996 - 2017 ASTM ASTM International Standards & Publications “Rock” search https://www.astm.org/search/fullsitesearch.html?query=rock&resStart=0&resLength=10&toplevel=products-andservices&sublevel=standards-and-publications& Copyright © 1996 - 2017 ASTM
E.11.1.4
Water
Water, either drinking or raw, is required in huge quantities at a construction site. Process outline •
•
The tender preparation team will estimate the quantity, quality, sources, storage facilities, treatment plants, distribution networks, equipment and costs of the water supply and use. The estimate will be based on: International treaties International regulations Country legislation Country regulations Country records Contract conditions Company’s records Geological maps Site investigation Water sources Water networks Water suppliers Quality of available water Sites’ layouts Manpower loads for the duration of the project Works that consume water Item Quantity Schedule Materials that consume water Item
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Quantity Schedule Water quantities’ requirements schedule Fresh water Raw water •
A project specific work instruction will be prepared by the project management team for the supply, transportation, storage, purification, sanitation, treatment, distribution, quality control, use and associated costs of drinking and raw water, as soon as practical.
References (indicative list) •
•
•
•
•
•
•
United Nations UN WATER “The World Water Development Report (WWDR)” http://www.unwater.org/publications/world-water-development-report/en/ Privacy Notice World Health Organization (WHO) “Water” http://www.who.int/topics/water/en/ © WHO 2017 World Health Organization (WHO) “Water sanitation hygiene” http://www.who.int/water_sanitation_health/en/ © WHO 2017 World Health Organization (WHO) “Guidelines for the safe use of wastewater, excreta and greywater” http://www.who.int/water_sanitation_health/sanitationwaste/wastewater/wastewater-guidelines/en/ © WHO 2017 European Union European Commission “Water” http://ec.europa.eu/environment/water/index_en.htm Legal notice International Organization for Standardization (ISO) “ISO/TC 147 - Water quality” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=52834 © All Rights Reserved ASTM International “Water” search https://www.astm.org/search/fullsite-search.html?query=water& Copyright © 1996 - 2016 ASTM
E.11.1.5
Wood
Wood and its products have multiple uses in the construction industry.
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References (indicative list) •
•
International Organization for Standardization (ISO) “ICS 79: Wood technology” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=79 © All Rights Reserved ASTM International “ASTM D9 - 12 Standard Terminology Relating to Wood and Wood-Based Products” https://www.astm.org/Standards/D9.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved.
E.11.2
Project produced materials
Crushed aggregates, concrete and asphalt are common industrial materials produced by contractors for construction engineering projects. They require the establishment of industrial production plants of various types and sizes depending on the quantity and quality of the materials to be produced. For crushed aggregates, refer to chapters “I.2.5 Quarries & borrow-pits” and “I.2.4.3 Crushers”. E.11.2.1
Concrete
Please refer also to chapter “I.2.4.1 Concrete batch plant”. Outline •
•
•
•
Concrete is an important material for civil works in all types of projects. Leading authorities worldwide, like the American Concrete Institute (ACI), are dedicated to this material. Extensive bibliography is available. Various manufacturers are dedicated to the production of concrete plants, transit mixers, concrete pumps, concrete vibrators, concrete formwork etc.
Process •
•
A preliminary concrete quantities’ take-off should be prepared at tender stage, if the tender documents do not contain an analytical bill of quantities, based on the conceptual design and the experience from previous similar projects that the company has constructed in the same area. The nominated -by the client- or identified -by the contractor- areas where concrete plants might be established, should be investigated.
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•
•
•
•
•
•
•
•
•
Appropriate licenses/permits’ acquisition processes, as per applicable legislation, should be followed, as concrete plants are air and ground polluting and noisy setups. The risk of a license/permit rejection should be evaluated. The project management team will finalize the required quantities and quality of concrete as soon as the design of the concrete works is finalized and approved and the bill of quantities is prepared. A project specific work instruction will be dedicated to concrete works (production and storage areas, production & transportation equipment, calibrations, certification, production, testing, transportation, placement and curing). The plant department will manage the concrete production and transportation operations while the construction department will be responsible for the placement and curing works. Unit rates will be agreed by the plant manager, the construction manager, the site manager and the project manager at the project start-up phase based on company historical data for the same materials, at the same country, at the same area (if available). Similar unit rates may be obtained from approved concrete suppliers operating in the area of the project. These unit rates will be used for the preparation of the project budget. The rates will be checked by the controls and the accounts departments on a daily basis. The actual unit costs for each grade of concrete will be reported to the project management team on a monthly basis. They will be used for the monthly budget control report. The actual quantities of concrete works will be charged to the respective cost centres, as per relevant company procedures.
References (indicative list) •
•
•
American Concrete Institute (ACI) “Concrete as material” search https://www.concrete.org/store/storeresults.aspx?Keyword=concrete%2cas%2c material All material © Copyright 2017, American Concrete Institute. International Organization for Standardization (ISO) “ISO/TC 71 - Concrete, reinforced concrete and pre-stressed concrete” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=49898 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 71/SC 3 - Concrete production and execution of concrete structures”
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•
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=49906 © All Rights Reserved International Organization for Standardization (ISO) “ISO 22965-2:2007(en) Concrete — Part 2: Specification of constituent materials, production of concrete and compliance of concrete” https://www.iso.org/obp/ui/#iso:std:iso:22965:-2:ed-1:v1:en This standard was last reviewed and confirmed in 2014 © 2007 ISO — All rights reserved
E.11.2.2
Asphalt
Please refer also to chapter “I.2.4.2 Asphalt plant”. Outline •
•
•
Asphalt is a basic material for transportation projects and a common material for all other types of projects. Extensive bibliography is available. International manufacturers are dedicated to the production of asphalt plants, bitumen silos, bitumen carriers, bitumen spreaders, finishers, rollers etc.
Process •
•
•
•
•
•
•
A preliminary asphalt quantities’ take-off should be prepared at tender stage, if the tender documents do not contain an analytical bill of quantities, based on the conceptual design and the experience from previous similar projects that the company has constructed in the same area. The nominated -by the client- or identified -by the contractor- areas where asphalt plants might be established, should be investigated. Appropriate licenses’/permits’ acquisition processes should be followed, as asphalt plants are air and ground polluting and noisy setups. The risk of a license/permit rejection should be evaluated. The project management team will finalize the required quantities and quality of asphalt as soon as the design of the asphalt works is finalized and approved and the bill of quantities is prepared. A project specific work instruction will be dedicated to the asphalt works (production, testing, transportation, laying and compaction). The plant department will manage the asphalt production and transportation operations while the construction department will be responsible for the laying and compaction works,
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•
•
•
•
•
•
•
Unit rates will be agreed by the plant manager, the construction manager, the site manager and the project manager at the project start-up phase based on company historical data for the same materials, at the same country and area (if available). Similar unit rates may be obtained from approved asphalt suppliers operating in the area of the project. These unit rates will be used for the preparation of the project budget. The rates will be checked by the controls and the accounts departments on a daily basis. The actual unit costs for each grade of asphalt will be reported to the project management team on a monthly basis. These unit costs will be used for the monthly budget control report. The actual quantities of asphalt works will be charged to the respective cost centres, as per relevant company procedures.
References (indicative list) •
ASTM International Standards & Publications “Asphalt” search https://www.astm.org/search/fullsitesearch.html?query=asphalt&resStart=0&resLength=10&toplevel=products-andservices&sublevel=standards-and-publications& Copyright © 1996 - 2017 ASTM
E.11.3
Project procured materials, plant & equipment
Process outline The project management team will finalize the organization of the project procurement team upon contract signature. Members •
Procurement manager Procurement discipline engineers Civil Electrical Instrumentation Mechanical Process IT support Secretariat
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•
Procurement quality control superintendent Quality control discipline engineers Civil Electrical Instrumentation Mechanical Process
The HR department will collect CVs of either internal employees or external candidates, and prepare a short list. The project management team will interview the short listed candidates. Those selected will be notified by the HR department and the employment and assignment procedure(s) will be concluded. Office space, intranet and facilities will be allocated and established for the procurement team. References (indicative list) •
•
International Organization for Standardization (ISO) “ISO 10845-1:2010(en) Construction procurement — Part 1: Processes, methods and procedures” https://www.iso.org/obp/ui/#iso:std:iso:10845:-1:ed-1:v1:en © 2010 ISO — All rights reserved International Organization for Standardization (ISO) “ISO 10845-2:2011(en) Construction procurement — Part 2: Formatting and compilation of procurement documentation” https://www.iso.org/obp/ui/#iso:std:iso:10845:-2:ed-1:v1:en © 2011 ISO — All rights reserved
Please also refer to “Chapter G Project procurement of manufactured materials”. E.12
Project subcontracting
Subcontracts are signed by the contractor and approved subcontractors for the supply of goods, materials, plant & equipment or services, in accordance with the requirements of: • •
• • • • • •
The laws and regulations of the country of operations The laws and regulations of the countries of origin, production, manufacturing and assembly The provisions of the main contract The contractor’s management system The subcontractor’s management system Approved design Applicable codes & standards Applicable specification
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• •
The purchase order, subcontract’s invitation The approved tender/offer package of the subcontractor
Before a subcontract is signed, the client’s approval of the nominated subcontractor is obtained, if this is required by the main contract. The subcontracting documents are prepared by the quantity-surveying department, in co-operation with the responsible company officers (administration, construction, financial, plant, quality or technical) for each category of subcontractors: • • • • • • • • • • • • • •
Constructors Designers Inspection agencies Laboratories Fabrication workshops Maintenance workshops Precast factories Manufactured materials, plant & equipment suppliers Natural materials suppliers Produced materials suppliers Food providers Personnel providers Rented equipment providers Services providers
The subcontracts are: •
•
•
Reviewed by: The head of the responsible department The chief quantity surveyor Checked by: The construction manager The technical & controls manager The financial & administration manager The quality manager The HSE manager Approved by: The site manager The project manager
Depending on the service offered, the time schedule and the financial issues, the following requirements should be defined on the subcontract (as applicable for each case): • • • • •
Scope of the subcontract Specifications of the subcontract Applicable codes and standards of the subcontract Legal, regulatory and contractual conditions of the subcontract Time schedule of the works/services’ provision, execution, completion and maintenance
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• • •
• •
•
• • • • • •
•
• •
• • •
Financial issues (prices, method of payment, letters of guarantee etc.) Personnel qualifications Specifications and maintenance requirements of the materials, plant and equipment Responsibilities for approvals, filing, registrations and records Allotment of space to the subcontractor for storing plant, equipment and materials or for other purposes Inspection of materials, plant or equipment produced or used by the subcontractor Quantity surveying matters Quality assurance and control requirements Environmental protection requirements Occupational health and safety requirements Emergency response issues Subcontract’s risk assessment/insurance issues (project, materials, plant, equipment, services, works, personnel, third parties, general liabilities, emergencies, force majeure, all risk) A meticulous and factual subcontract risk assessment that would facilitate the decision for the provision of appropriate and sufficient insurance policies is more than essential as instability may abolish any normal planning overnight with grave consequences. Taxes, levies, duties and relative issues Legal obligations, the contractual obligations, the penalty, the suspension and termination clauses and the procedure of settling disputes Subcontractors' conformance to the quality requirements of the main contract Subcontractor’s management system Subcontractor’s licenses, certificates and authorisations
The subcontracting documents are sent to the accounts department for their information and agreement with the payment terms before signature. The project manager, the site manager or their authorised representative signs the subcontracting documents. The finance department tax registers the subcontract and distributes it accordingly. Responsible officers are assigned the duty to supervise the works/services of each subcontractor and accept or reject their products/services, as specified in the subcontract documents. Reference •
International Federation of Consulting Engineers (FIDIC) “Construction (1999 Red Book) Subcontract Test Ed (2009)” http://fidic.org/books/construction-1999-red-book-subcontract-test-ed-2009 Copyright © FIDIC 2015
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Chapter F Project design Outline •
•
The contractor requires the services of specialized “construction engineering design consulting firms” -“designers” in short- in all EPC projects it undertakes to construct. The spectrum of services might be: Consultancy Project management Conceptual design Preliminary design Basic engineering design Detailed design Design -prepared by the client- verification Works’ specification Material take-off Material specification Construction drawings P&IDs Shop drawings As-built drawings
•
•
F.1
Contractors may establish their own internal design department(s) for a spectrum of basic design services required at a construction site. The design department should operate in accordance with the requirements of applicable legislation, regulations, codes, standards and ISO 9001:2015. Approved designers
Process •
•
•
•
•
A quality management procedure should specify in detail the selection, auditing, assessment, review, control and approval processes of designers that qualify to work/co-operate with the contractor for each type of project. A cost centre is assigned to every approved designer. A complete file for each approved designer is prepared, maintained, updated and controlled by the commercial, technical & controls department of the company. The file contains all documents related to the designer. The designers are assessed constantly and regularly during the course of a project.
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•
The list of approved designers is reviewed annually.
References (indicative list) •
•
International Federation of Consulting Engineers (FIDIC) “The Consulting Engineer in Turnkey Project” http://fidic.org/node/758 Copyright © 2015 FIDIC International Federation of Consulting Engineers (FIDIC) “Selection of Consultant 2nd Ed (2013)” http://fidic.org/books/selection-consultant-2nd-ed-2013 Copyright © 2015 FIDIC
F.1.1
Designers’ subcontracts
Process •
•
•
•
•
•
•
•
•
The engineering consultants that will prepare the design of an EPC project are selected at tender stage. The contractor’s design manager invites approved designers that possess the specified qualifications for the project, to participate in the tender process. The contractor’s design manager prepares a short list of designers that match the project requirements. The commercial, technical & controls manager selects the proposed designer(s). The estimating department hands over to the designer a full package of tender documents related to their scope of supply. Authorised signatories of the contractor and the designer sign a memorandum of understanding (MOU) that outlines the terms and conditions of co-operation for the project tender process and period. The designer(s) participates in the tendering process as member(s) of the team. The designer prepares all the required documentation (conceptual design, feasibility studies, outline basic design, deliverables’ lists etc.) and sends them to the contractor’s design manager for checking and inclusion in the tender submission package. The designer should notify, in writing, the contractor’s design manager of all inconsistencies that they have noticed in the tender documents.
•
The client may approve, preliminarily, the proposed designer(s) at tender stage.
•
The client may audit the qualifications, organization, facilities, assets,
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processes, working methods & management systems of the designer before its final approval. •
•
•
•
•
•
•
•
•
•
•
The client will finally approve the designer(s) after the main contract signature. Once the designer is approved by the client, the contractor should perform an internal contract review of the design subcontract. The contractor should issue a letter of intent to the designer(s) with a draft subcontract agreement and the final main contract documents that are relevant to the designer(s) scope attached. The subcontract should state clearly that the designer has the full, irrevocable, non-negotiable, responsibility of the design for the -specified as design inputproject’s lifetime. Supervision, review, checking or approval of the design by the contractor or the client does not release the designer from its responsibilities. The designer should perform an internal contract review to verify that the draft subcontract complies with all the terms and conditions of their offer. If the revisions of the original scope, that have been agreed by the client and the contractor, modify the scope, time or price elements of the original offer of the designer they may request proportional amendments. The designer should notify, in writing, the contractor of all inconsistencies that they have noticed in the draft subcontract documents. The contractor may invite the designer to meet and discuss the issue. Meetings will be scheduled and both parties should come to an agreement on each and all disputed terms and conditions of the subcontract. When the final subcontract documents’ package is agreed by both parties then the contractor will send the final subcontract documents to the designer for their final review and acceptance and invite the designer to present the required bank guarantees -advance, all-risk and performance. There is always a risk of an unforeseen/unpredictable design fault in any part of the project that may cause, in the short or long run, an extreme damage to the client. All parties -client, contractor and designer- should be covered for this probability by an all-risk insurance policy and the corresponding guarantees
•
•
The designer should obtain bank guarantees from banking institutions that are acceptable to the contractor. If, for any reason, the designer cannot obtain the required guarantees then the
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contractor may cancel the whole process and confiscate the tender bond. Additional legal proceedings may be initiated as per applicable legislation and the tender conditions. •
•
•
•
The final subcontract documents are signed and stamped by authorised signatories of both parties. The subcontract is registered with the mandatory authorities as specified in the applicable legislation and the subcontract conditions. A construction project requires the best co-operation between all related parties. In this respect, the final contract documents should satisfy the prospects of both parties.
Please refer to ISO “Quality Management Principles98”; principles 1 (designer) and 7 (contractor). Reference •
F.2
International Federation of Consulting Engineers (FIDIC) “Client/Consultant Model Services Agreement 4th Ed (2006 White Book)” http://fidic.org/books/clientconsultant-model-services-agreement-4th-ed-2006white-book Copyright © 2015 FIDIC Design process
The designer will prepare a project specific detailed design procedure that will satisfy the requirements of the: • • • • • • • •
Main contract Subcontract (s) Applicable legislation Applicable regulations Applicable codes & standards Design standards ISO 9001:2015 Designer’s management system
The procedure will specify all quality design parameters (planning, inputs, controls, outputs, and changes), organization, requirements, deliverables, work methods, computer software, production stages, production schedules and production controls. The procedure will be reviewed for completeness and compliance by the contractor 98
ISO International Organization for Standardization (ISO) “Quality management principles” http://www.iso.org/iso/pub100080.pdf © ISO 2015 All rights reserved Page 232 of 495
and the client. References •
•
•
•
F.2.1
International Organization for Standardization (ISO) “ISO 9001 2015(en) Quality management systems — Requirements” http://www.iso.org/iso/catalogue_detail?csnumber=62085 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 98 - Bases for design of structures” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=50930 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 59/SC 14 - Design life” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=49192 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 59/SC 17 - Sustainability in buildings and civil engineering works” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=322621 © All Rights Reserved Design & development planning
The engineering design subcontractor shall establish and maintain project specific procedure that describes or references the design and development activities and defines responsibility for implementation. The procedure shall identify and describe the interfaces with different groups or activities that provide, or result in, input to the design and development process. The procedures shall be reviewed, updated, and approved as design and development evolves. The following elements shall form an integral part of the design planning procedure: • •
Organization Scope of supply Design & procurement activities Inputs Outputs Planning Reviews Verification Validation Ownership Final product
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• • •
Objectives and associated performance indicators Hazard and operability studies Deliverables
F.2.1.1
Design management
A basic designer’s team, depending on the size, the complexity and the magnitude of the project, might have the following members (indicative list): • • • •
•
Project manager Technical & controls manager Design manager Design & procurement discipline engineers Architect Civil Electrical Instrumentation IT & communications Mechanical Process Structural Surveyor Quality assurance and control engineer(s)
Each member of the team should have appropriate qualifications and should be available for the duration of the contract. He/she should be given a clear ownership scope of the part of the design package that will be developed under his/her responsibility. The ownership acceptance document will be agreed and signed as stipulated in the designer’s quality management system relevant procedure. Detailed CVs of each member of the design team will be submitted to the contractor for its review and/or approval. The performance of each member of the design team will be monitored, constantly, by the design manager. If production delays are noticed or the design products do not satisfy quality checking and/or control requirements then corrective action will be taken, as appropriate, so that the design outputs are produced, reviewed and implemented as required by the contract conditions. Proper organization requires the establishment of systems suitable for the preparation, control and delivery of the specific design: •
Computer hardware Server Terminals
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•
• •
•
•
•
•
•
Computer software Architectural Civil Electrical Instrumentation Mechanical Process Databases Communications Printing facilities Computer intranet Internal External Communication networks Internal External Communication protocols Internal External Contractual Technical Communication database Incoming Outgoing Design database Activity Task owner Inputs Outputs Planning Reviews Checking Verification Validation Deliverables database Drawings Construction drawings Shop drawings As-built drawings Specification Materials, plant & equipment Works Processes Other documents Calculations HAZID HAZOP Procedures Studies
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F.2.1.2
Scope of supply
The detailed scope of supply, as specified in the main contract and the subcontract documents, will be divided into distinctive activities/functions by the design manager. Each activity will be assigned to a member of the design team, the task owner. A matrix of activities for each task owner will be prepared and agreed between the task owner, the design manager and the project manager. Design inputs, outputs, planning, reviews, verification and validation will be analyzed, agreed and documented for each activity of every task owner, as applicable. Changes in the scope of supply will result to appropriate contractual change orders. F.2.1.3
Objectives
Time, cost, functionality, quality, environmental, and health & safety objectives are set by the main contract. The same should be included in the designer’s subcontract. Appropriate performance indicators should be assigned to each objective by the designer’s quality assurance engineer, reviewed by the design manager and approved by the project manager. The matrix objectives-performance indicators should be sent to the contractor and the client for their information. Objectives-performance indicators are reviewed during regular meetings or audits, as specified in the respective quality management procedure. F.2.1.4
Hazard and operability studies
Wikipedia “Hazard and operability study” 99: Quote A hazard and operability study (HAZOP) is a structured and systematic examination of a complex planned or existing process or operation in order to identify and evaluate problems that may represent risks to personnel or equipment. The intention of performing a HAZOP is to review the design to pick up design and engineering issues that may otherwise not have been found. The technique is based on breaking the overall complex design of the process into a number of simpler sections called 'nodes' which are then individually reviewed. It is carried out by a suitably experienced multi-disciplinary team (HAZOP) during a series of meetings. The 99
Wikipedia “Hazard and operability study “ https://en.wikipedia.org/wiki/Hazard_and_operability_study Terms of Use Privacy policy Page 236 of 495
HAZOP technique is qualitative, and aims to stimulate the imagination of participants to identify potential hazards and operability problems. Structure and direction are given to the review process by applying standardised guideword prompts to the review of each node. The relevant international standard100 calls for team members to display 'intuition and good judgement' and for the meetings to be held in 'a climate of positive thinking and frank discussion'. Unquote A HAZOP study should be performed during the design stage to identify the hazards and their associated risks for each production unit/plant/facility. References (indicative list) •
•
•
British Standards Institution (BSI) BS EN 61882:2016 Hazard and operability studies (HAZOP studies). Application guide http://shop.bsigroup.com/ProductDetail/?pid=000000000030309555 © British Standards Institution 2016 Dr. N.A. Siddiquia*, Abhishek Nandana, Madhuben Sharmaa, Abhinav Srivastavaa University of Petroleum and Energy Studies, Dehradum, 248007, India “Risk Management Techniques HAZOP & HAZID Study” http://ohsfejournal.com/wp-content/uploads/2014/09/Article-02-Vol-1-Issue-1July-1-to-Sep-30-2014_Final.pdf Det Norske Veritas (DNV) GL “Process hazard analysis - Phast Process hazard analysis in the process industries” https://www.dnvgl.com/services/process-hazard-analysis-phast-1675 Copyright © DNV GL AS 2016
F.2.1.5
Deliverables
Process outline •
A preliminary list of deliverables will be attached to the designer’s subcontract.
•
A database of deliverables will be established and controlled.
•
•
100
101
A unique identification code will be assigned to each deliverable item. Consequent revision numbers will identify the progress and the status of each item. Standard abbreviations, acronyms101 and bases102 will be used. British Standards Institution (BSI) “BS EN 61882:2016 Hazard and operability studies (HAZOP studies) Application guide” http://shop.bsigroup.com/ProductDetail/?pid=000000000030309555 © British Standards Institution 2017 The American Society of Mechanical Engineers (ASME) Page 237 of 495
The deliverables’ database should contain, as a minimum:
•
Detailed bill of quantities Drawings Construction drawings Shop drawings As-built drawings Specification Materials, plant & equipment Works Processes Other documents Calculations HAZID HAZOP Procedures Studies The database will be updated constantly.
•
Weekly and monthly reports showing the progress status of all deliverables will be published and distributed to all interested parties, as specified in the main contract and the subcontract conditions.
•
Two-week look-ahead schedules will be published weekly.
•
F.2.2
Design inputs
Design inputs could be (among others): • • • • • • • • • •
102
Conceptual design Feasibility studies Preliminary design Contract documents Country codes & standards Country legislation Country regulations Design standards Industry codes & standards Basic engineering design (if available) “Abbreviations and Acronyms for Use on Drawings and Related Documents” https://www.asme.org/products/codes-standards/abbreviations-and-acronyms-foruse-on-drawings-and © The American Society of Mechanical Engineers International Organization for Standardization (ISO) “ISO/TC 98 - Bases for design of structures“ https://www.iso.org/committee/50930.html ISO © All Rights Reserved. Page 238 of 495
A complete package of the design inputs should be included in the contractor’s – designer’s subcontract. F.2.2.1
Basic engineering design
A basic engineering design package for an industrial project in the oil & gas industry, based on the conceptual design and feasibility studies, design standards, industry codes & standards, country legislation & regulations and the contract documents might contain the following elements. • • • • • • • •
Conceptual process studies Description and classification of the control and safety devices Identification, description and sizing of the main equipment Preliminary piping and instrumentation diagrams Preliminary plot plan Process specification Project lifecycle, lifetime Project specification
The basic engineering design is proposed to be prepared by the client, or its specialist engineering subcontractor(s), and be included in the tender documents of the main contract. Its comprehensiveness will facilitate competent engineering contractors (and their engineering subcontractors) to prepare proper tender proposals and sound detailed design and save time and money for all parties. F.2.3
Design controls
Standard design controls are: • • •
Design review Design verification Design validation
F.2.3.1
Design review
The engineering design subcontractor shall establish and maintain project specific procedures to ensure that formal documented reviews of the: • • • •
Design planning Design inputs Design process Design outputs
are agreed, scheduled and conducted on a day-by-day basis or at appropriate stages of the design development. Design reviews might be day-by-day standard operations (standard design reviews)
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or pre-defined staged processes (complete design reviews). Standard design reviews are usually performed when each design product document, schedule, drawing, and specification- is ready for approval. The procedures shall ensure that participants at each standard design review include: • • • • •
The design manager The discipline engineer(s) The quality control engineer(s) Contractors representative(s) Clients representative(s)
A weekly design review meeting, between all parties -designer, contractor and clientis recommended. The progress of the design, to date, will be discussed and a two-week look-ahead program will be agreed. Complete design reviews might be planned at stages -e.g. at 10%, 50% and 90% design progress. The procedures shall ensure that participants -by either physical presence or teleconference- at each complete design review include: • • •
•
• •
•
The project manager The design manager Representatives of all functions concerned with the design stage being reviewed Members of the design team who do not have direct responsibility for the design stage being reviewed Contractors project management team Clients project management team including operators of similar plant units, when appropriate Any specialists needed
The results of a complete design review, including identification of the design, the date, and the individual(s) performing the review, shall be documented. The outcome of a complete design review may necessitate design corrections (usual result) or even design changes. In case of “design changes”, the appropriate standard procedure will be applied. F.2.3.2
Design verification
The engineering design subcontractor shall establish and maintain procedures for verifying the design.
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Design verification shall confirm that the design outputs meet with the design input requirements. The use of alternative specialized software packages is recommended. Design verification might be conducted when a part of the design nears completion or when required by applicable legislation, regulations or the contract documents. Proposed design verification participants: • • • •
The designer’s project management team The contractor’s project management team The client’s project, quality and operations’ representatives Any specialists needed
The results of the design verification, including identification of the design, method(s), the date, and the individual(s) performing the verification, shall be documented. The outcome of design verification may necessitate design corrections (usual result) or even design changes. In case of required “design changes” the appropriate standard procedure will be applied. F.2.3.3
Design validation
The engineering design subcontractor shall establish and maintain procedures for validating the project’s design. Design validation shall be performed under defined operating conditions on initial production units or by simulation. Design validation shall ensure that the works conform to defined client needs, requirements and intended uses and shall include testing of production units under actual or simulated use conditions. Design validation shall include software validation and risk analysis, where appropriate. The design validation team will include top-level participants of all functions and all parties -designer, contractor and client. The results of the design validation, including identification of the design, method(s), the date, and the individual(s) performing the validation, shall be documented. The outcome of the design validation may result to successful project completion and handing over or to disastrous production, legal and financial aftermaths. F.2.4
Design outputs
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The conceptual design, feasibility studies, preliminary design, basic engineering design, design standards, industry codes & standards, country legislation & regulations and the contract documents form the basis of the engineering design. Engineering design output elements indicative list, depending on the type of the project: • • • • • • • • • • • • • • • • • •
Setting out Buildings Civil works Communication systems Control rooms Electrical installations Electrical network Instrumentation works Mechanical works Piping Pressure vessels Process network Rotating equipment Structural steel Emergency evacuation system Fire fighting installations Fuel systems Water systems
All these elements will be finalized in stages, those being: • •
Front-end engineering design Detailed design
A complete description of the design outputs should be included in the contractor’s designer’s subcontract. F.2.4.1
Front-end engineering design
The front-end engineering design (FEED) should contain all the design elements that are required to be prepared, checked and approved before the order of each of the main equipment is placed. Such design elements could be (among others): • •
• •
Setting out Layouts Civil works Electrical works Instrumentation Main piping Mechanical data sheets of the main equipment Piping and instrumentation diagrams
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• • • •
Plot plans Plots of hazardous areas Specification Thermal rating of heat exchangers
The FEED should also contain the procurement packages for each of the main equipment. F.2.4.2
Detailed design
The detailed design should offer a complete package to the contractor and the client that would enable the procurement and the construction phases of the project in a thorough and timely manner. In that respect, the engineering design subcontractor is a major player in the successful completion of the project. Elements of a detailed design could be (among others): • • • •
• • • • • •
2D model 3D model Detailed calculations Detailed drawings Architectural Structural Civil Electrical Instrumentation Mechanical Process Hazardous waste areas Shop drawings As-built drawings Detailed piping drawings, including isometrics and stress calculations Piping and instrumentation diagrams Thermal rating of heat exchangers HAZID HAZOP Procurement of materials, plant & equipment Procurement packages Calculations Drawings Quantities Specification • Codes & standards • Regulations • Legislation • Contract documents Checking of suppliers Qualifications
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• •
F.2.5
Processes Drawings Specification Works’ specification Start-up procedures Design changes
Design information must be updated whenever: • • • •
Design reviews or verifications are conducted New information on aspects in similar plants becomes available Design assumptions or conditions change Lessons are learned by an incident or accident in a similar plant in the industry
Designs can be changed or modified at any stage in the design process. Any interested party may propose a design change but the client, through standard procedures, should finally approve it. Depending on the stage of the design at which the change is made, the unforeseen effect of managing the change may be more complicated. Changes, made during the conceptual phase or the basic engineering design, are usual parts of the process. The detailed design phase only starts once the conceptual and/or the basic engineering design are reviewed, checked and approved from safety and economic perspectives. During detailed design, change is sometimes required because of design reviews or design verifications, late discovery of impractical construction, high risk of unsafe conditions or for cost reasons. It is important that, despite the change, the final design outputs still comply with the original contractual requirements. The key aspects of change management and modifications include: • • •
F.2.6
Knowledge of the original design Clear communication between all parties at all stages of the design process Quality control during all phases to ensure any change or modification is managed Project design meetings
During the course of the project design processes, well-organised, structured and controlled meetings should take place in agreed dates and venues with standard agendas.
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An indicative list of such design progress meetings follows. F.2.6.1
Design kick-off meeting
A kick-off meeting should be requested by the contractor to be held at the designer's premises or at the location of the works to ensure that all requirements of the main contract documents and the design subcontract, their implementation processes and controls are discussed, in detail, and well understood. The contractor will formally notify the designer of the kick-off meeting arrangements and agenda. The designer shall formally advise the contractor of its agreement with the time and agenda. Complete teams of both parties shall attend the design kick-off meeting. The client might request the presence of its authorised representative(s), if it is required by the main contract conditions. In that case, the client may add to the agenda any subject it deems appropriate and receive a copy of the minutes of this meeting for its records. The meeting will be chaired by the contractor’s highest-ranking representative. Sample design kick-off meeting agenda • • • •
•
Introduction Attendees Assignments (titles, roles & responsibilities) Approval(s) by the client Designer Design team Review of the signed subcontract documentation (un-priced, complete with attachments ) Scope of supply Designer’s detailed list of input documents Designer’s detailed list of output documents Contractual requirements Contract registration Contract insurances Quality issues Quality assurance • Certification requirements • Review quality policy, manual & procedures • Review past quality audits’ reports • Quality plan Quality control • Quality control scope, specification & regulations • Quality control levels • Quality control objectives • Quality control plan
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•
• • • • • •
• Quality control records HSE issues Design planning & control Design production Milestones Resources • Personnel • Hardware • Software Progress meetings Daily Weekly Monthly Milestones Progress reports Quality controls schedule Notification Quality control Reports Generate outputs log Generate correspondence log Generate quality records log Generate reporting log Generate NCR log Communication lines
The designer’s representative will draft the minutes of meeting and send them to the contractor’s representative for his/her consent. Both representatives will sign the agreed minutes of meeting and distribute them internally. F.2.6.2
Design progress meetings
Progress meetings will be held at the designer's establishment or at the location of the works on a daily, weekly and monthly basis. The client will participate with its authorised representative(s), in any or all of these meetings, as stipulated in the main contract conditions. In that case, the client may add to the agenda any subject it deems appropriate; the client will receive a copy of the minutes of these meeting for its approval and records. Sample design progress meetings agendas •
Daily meetings (resident contractor’s team) Daily progress record Problems Controls findings & observations
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Deviations Changes Corrections Progress diary •
Weekly meetings Designer’s weekly progress report Progress vs. schedule Works • Quantities • Specification Materials • Schedules of materials • Materials specification • Inspection assignment packages • Suppliers’ assessment Drawings Calculations Reports Controls findings & observations Deviations Changes NCR Corrective action
•
Monthly meetings Designer’s monthly progress report Progress vs. schedule Works • Quantities • Specification Materials • Schedules of materials • Materials specification • Inspection assignment packages • Suppliers’ assessment Drawings Calculations Reports Controls findings & observations Deviations Changes NCR Corrective action Lessons learned
•
Milestones’ completion meetings
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Progress vs. schedule Delivered product Punch list items Deviations Changes Corrections NCR Controls findings & observations Immediate corrective action Corrective action plan Deadlines Lessons learned •
Design closing meeting(s) Summary report Clarifications on findings Deviations Changes NCR Immediate corrective action Corrective action plan Lessons learned
The designer’s representative will draft the minutes of these meetings and send them to the contractor’s representative for his/her consent. Both will sign the agreed minutes of meeting and distribute them as stipulated in the subcontract and the main contract conditions. F.2.7
Design progress reports
Designer’s reports •
•
The designer will prepare and sent to the contractor weekly and monthly progress reports to be discussed during the corresponding meetings. The designer will prepare a complete summary report at the end of the project and present it to the contractor at the design-closing meeting.
Contractor’s reports •
•
•
The contractor will forward the designer’s reports to the client, as required by the main contract conditions. The contractor’s project design manager will prepare a complete final report on the project’s design. The final design report will be reviewed by the technical & controls manager and approved by the project manager.
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â&#x20AC;˘
The final design report will be sent to the country & the company design managers and it will form part of the project thesaurus documentation.
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Chapter G Project procurement of manufactured materials Procurement of manufactured materials, plant & equipment, that will be incorporated in the works of a project103, is a significant and complicated activity for most of the projects in the construction industry. It requires competent resources, sufficient means and demanding co-ordination efforts by all parties -client, contractor, designer(s), supplier(s), sub-suppliers, inspection agencies, transportation companies, customs’ clearance agencies etc.- as the manufacturers may operate in different parts of the world and the project is built in another country where the produced, inspected and certified products should be transported, cleared, stored and available to be incorporated in the works, on time. G.1
Procurement management
The company should: •
•
• • • •
•
•
• • • •
• •
Establish and support a comprehensive procurement department that is authorised to operate, even as an independent subsidiary company, and serve all the projects in all the countries it operates in. The company procurement manager should report to the commercial, technical & controls director. Establish and support procurement departments in every country it operates in that will be specialized in the procurement of materials that are produced in the country. Establish and control a hard and just code of contact with the suppliers. Establish strict procurement management procedures & protocols. Establish and maintain a database of approved suppliers for every material. Form a proper procurement team of honest, qualified, authorised and wellresourced officers for every major project. Search for the optimum solutions for the supply of manufactured materials for each project (availability, specification, price, production process104, manufacturing time, transportation, inspection, installation, spare parts, service etc.) Use approved suppliers105 as specified in its relevant quality management system procedure, Use suppliers as specified in the client’s list of approved suppliers, Respect the terms & conditions of the contract, Follow the requirements of the design, Abide to the applicable legislation in the countries of manufacturing as well as in the country of installation, Comply with the specified regulations, codes & standards, Inspect all processes from the preliminary design to the final handing over.
103
“material” in chapter G stands also for “plant” or “equipment” or “manufactured product” 104 “production process” in chapter G stands for “design, supply of raw materials, supply of components, manufacturing, assembly, testing, pre-commissioning & commissioning”, as required 105 “supplier” in chapter G stands also for “manufacturer” or “vendor” or “producer” Page 250 of 495
Procurement operations are critical for the successful construction of any project. Reference •
International Organization for Standardization (ISO) “ISO/TC 59/SC 18 - Construction procurement” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=5726139 © All Rights Reserved
G.2
Approved suppliers
There are thousands of companies106 around the globe producing materials, plant and equipment that are incorporated in the works of a construction project. It is therefore meaningless to even attempt to refer to any of them. A complete database of approved manufacturers or suppliers and their associated products should be prepared, served, reviewed, updated and maintained by the procurement department. A standard coding system should be used - please refer to chapter “A.8 Cost coding system “. The company management system should clearly specify processes and requirements for the approval of suppliers of the various types of materials that the company uses in the projects it contracts to construct. Only approved suppliers by the company and its clients may offer services to the company. G.3
Procurement process
G.3.1
Procurement preliminary lists
At tender stage, preliminary lists of manufactured materials (items, quantities, potential approved manufacturers etc.) are produced by the discipline materials engineers. Quotations are obtained and an estimated cost analysis for materials is produced. The estimate is reviewed by the materials department manager, checked by the chief quantity surveyor and approved by the chief estimator and the project manager (if nominated at tender stage). 106
Construction Products Association (CPA) UK http://www.constructionproducts.org.uk/ © Copyright © 2015. All material is copyright of Construction Products Association and must not be used without express written permission. Page 251 of 495
The preliminary lists of manufactured materials are handed over to the project manager as part of the complete estimate package upon contract signature. G.3.2
Procurement work instruction
A project specific procurement work instruction is prepared and approved by those authorised. After the contract commencement, the list of materials, plant & equipment that will be incorporated in the works, will be gradually finalized and completed by the designer(s) as the design progresses. The designer(s) will prepare complete lists of documentation and process requirements for each piece of materials, plant or equipment. All lists will be approved by the project management team and the client, as stipulated in the approved project quality plan and the contract documents. The project procurement team will run a continuous and intensive process, on a dayby-day basis. For each material, plant or equipment purchase order, the following information should be considered, before the placement of the order: • • • • • • • • • • • •
• • • •
Serial number Project cost code Item cost code Work cost code Client cost code Quantity Reference drawing(s) Reference specification Reference regulations Reference contract conditions Reference legislation Reference work instruction Quality assurance & control requirements Quality plan Chemical composition formulae Positive material identification (PMI)
•
HSE requirements HSE plan Process safety management (PSM) of highly hazardous chemicals (HHC)
•
Inspection assignment package
•
Approved suppliers
• •
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• • • • • • • • • • • • • • •
Cost comparison table Manufacturing period Production bottlenecks Delivery time - ex factory Transportation Customs clearance Estimated time of arrival (ETA) at the site of works Storage Installation Service Pre-commissioning Commissioning Risks Deviations, waivers Notes
Certain materials, plant or equipment may not be available or registered for use in all countries. The legal status of products may vary by country, state, or province. Applicable country or international laws, regulations and treaties should always be considered and assessed prior to placement of an order or use of a material or equipment. G.3.3
Indicative list of materials, plant & equipment
A list of manufactured materials, plant and equipment that may be required to be procured for an industrial installation in the oil & gas industry is indicated herewith for information purposes only. Even though limited, it shows the significance, the weight and the complexity of the procurement process in the successful production of such a complicated project. After coolers • • • • • •
HP gas compressor after cooler LP gas compressor after cooler Overhead gas compressor 1st stage discharge after cooler Overhead gas compressor 2nd stage discharge after cooler Overhead gas compressor 3rd stage discharge after cooler Pipeline compressor after cooler
Chemical injection packages (tanks & pumps) • • • • •
Biocide injection package Corrosion inhibitor injection package Demulsifier injection package Diesel injection package Hypochlorite package
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•
Scale inhibitor injection package
Compressors • • • •
HP gas compressor LP wet gas compressor Overhead gas compressor Pipeline dry gas compressors
Heat exchangers & heaters • • •
Fuel gas bath heater Overhead gas compressor 1st stage discharge recycle cooler Stabilizer feed preheater
Other equipment • • • • • • • • • • •
Air handling units Diesel transfer filter Diesel unloading filter Emergency diesel generator Fire fighting equipment Flame arrestors Sanitary sewage macerator Sanitary sewage water lift sump Stabilizer bottoms reboilers Stabilizer column retray Stabilizer reboiler tube bundles
Packages • • • • • • • • •
Air compressor package HPPT - high pressure production trap Instrument air compressor package Instrument air dryer package LPPT - low pressure production trap Nitrogen generation package Stabilizer (230/13.8 KV) power transformers TEG dehydration package, unit WOSEP - water/oil separator
PCS •
Process control system (PCS)
Piping •
107
18" Pipe DSAW107 API108 5L GR.X60 Double Submerged Arc Welded (DSAW) steel pipe Page 254 of 495
• • • • • • • •
20", 24" Pipe DSAW API 5L GR.X60 36" Pipe DSAW API 5L GR.X60 Above ground pipes & fittings Bolts & nuts Pipe rack structural steel SMLSS X60 Pipes Spring hangers & special pipe supports Underground109 pipes & fittings
Pre-fabricated piping headers • • •
36" Inlet manifold 10" Test, depressurization manifold Flare stack
Pumps • • • • • • • • • • • • • • • •
Crude oil booster pumps & auxiliaries Crude oil shipper pumps & auxiliaries Demothballing of ASL crude export booster pump Depressurising vessel transfer pumps Diesel oil unloading and transfer pumps Firewater diesel pumps Firewater electric pimps Flare knock out drum pumps Jockey firewater pumps LPPT produced water pumps Potable water supply pumps Potable water unloading pump Produced water pumps Recover oil pumps TEG make up pumps Water injection pumps
Scrapers • •
108
109
16" Gas pipeline scraper launcher 20" Water pipeline scraper receiver
American Petroleum Institute (API) “2017 Publications Catalog (Full)” http://www.api.org/~/media/Files/Publications/Catalog/2017_catalog/API_2017_C atalog.pdf © Copyright 2017 – API. All Rights Reserved. Piping engineering “Underground Piping (U/G) and Types of Underground System- Part 1” http://www.piping-engineering.com/underground-piping-ug.html# © copyright Piping-engineering 2016 All Rights Reserved. Privacy Policy Page 255 of 495
Structural steel • • • •
Pipe rack structural steel Steel beams Structural steel for buildings Bolts & nuts
Tanks • •
Firewater, utility water tank TEG storage tank
Valves • • • • • • • • • • • • • • • • • • •
Ball valves <2" Ball valves >2" Ball valves bronze Ball valves NPS <2 Ball valves NPS >2 Butterfly ductile iron valves FBE lined Butterfly valves Check valves <2" Check valves >2" Check valves NPS<2 Check valves NPS>2 Gate globe valves NPS <2 Gate valves <2" Gate valves >2" Gate - globe valves >2" Gate - globe - check valves bronze Globe valves <2" Non ferrous valves Plug valves
Vessels, Drums • • • • • • • • • • • • • •
LP compressor suction drum HP compressor suction drum Pipeline compressor suction drum, vessel Pipeline compressor discharge drum, vessel Depressurizing drum, vessel Flare knock out drum Utility air receiver Instrument air receiver Nitrogen receiver Diesel fuel storage drum Potable water drum O/H gas compressor 1st stage suction drum O/H gas compressor 2nd stage suction drum O/H gas compressor 3rd stage suction drum
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•
NGL production drum
Instrumentation • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Analyzers Bulk instrument materials Control valves Current transmitters D/P flow transmitters D/P gauges D/P pressure transmitters D/P type level instruments Density meters Detectors & bulb type temperature instruments Flow instruments Flowmeters Gauge pressure transmitters SMART Instrument cable trays Instrument cables Integral orifice indicators Junction boxes Level gauges Level indicators, switches Local ZV controls Magnetic level transmitters Orifice plates & flanges Pneumatic on-off valves Pressure gauges Pressure switches Remote motor operated ball valves Remote motor operated gate valves Resistant temperature detectors Safety relief valves Self actuated valves Temperature transmitters Thermocouples & wells Ventouri tubes Vibration switches Weak control current control, communication, alarm system
Electrical • • • • • • • •
125 VDC Battery charger 125 VDC Battery system vented lead acid 125 VDC Power panels 13.8 kV Indoor switchgear 15 kV Cable bus 15 kV Metal-enclosed bus 230 kV Coupling capacitor voltage transformer (CCVT) 230 kV Main control relay panels & tariff metering panel
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
230 kV Multi-ratio current transformers 230 kV Outdoor type, 3-pole disconnect switch 230 kV Protection systems 230 kV Surge arrestors 4.16 kV Indoor control gear 4.16 kV Indoor switchgear 480 V indoor control gear 480 V Indoor motor control centres 480 V Indoor switchgear 480 V Indoor switchgear (TEG) 480 V MCC (essential) 5 kV Cable bus 600 V Cable bus Annunciator panels (125 VDC) Backup generator system Cable trays Cables Cathodic protection system Conduits & fittings Corrosion monitoring system Electrical bulk materials Fire & gas detection system Grounding system H.V.A.C System Heat tracing system Lighting materials MV Power cables Open switchyard equipment 230 KV Overhead line Panel board Power monitoring system Power transformer 13.8/0.48 KV Power transformer 13.8/4.16 KV SF6 Gas insulated circuit breakers Station service transformers 13.8/0.48 kV Transducers
Civil • • • • • • • • • • •
Access ladders Acid neutralisation tanks Acoustical ceiling tiles Acoustical ceiling tiles fixings Aggregates Air release valves - hot, cold water system Aluminium doors & frames Aluminium flashing, coping Aluminium sheets - roof Aluminium windows & frames Anchor Bolts and Accessories
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• • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Angle valves hot, cold water system Asphalt Backflow preventors - hot, cold water system Bituminous dump-proofing coating for substructure concrete elements APCS 10 Bituminous waterproofing material (RBE) - coal tar epoxy paint for buried concrete elements Blast proof doors Blockwork ladder reinforcement Board jointing tape & compound accessories Building signs Cable tiles Carpet tiles Carpet tiles adhesives Cast iron catch basins Ceramic floor tiles Ceramic floor tiles adhesive Ceramic floor tiles grout Chainlink and fencing Clockroom fixtures CMU concrete blocks CMU concrete wall CMU reinforcement CMU wall insulation Computer flooring raised floor Concrete Concrete floor hardener Concrete kerbs Concrete spacers (plastic) Concrete wheel stop units Conduits - within building Copper pipes & fittings for foul drainage within building Copper pipes & fittings hot, cold water system CPVC pipes & fittings schedule 80 water system Crush barrier Double glazing panes Drop arm gate barrier Electric hand dryer Electric water heater Emergency eye wash Epoxy flooring Epoxy grout, non-shrink grout Epoxy resin for anchors Expansion joint covers - floors & walls Expansion joint sealant Expansion joints - backing rod Facilities signs Fire extinguishers - within building Fire hose reels Fire proofing material to steelwork (spray) Floor drains & cleanouts
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Formwork plywood - commercial shuttering Galvanized steel pipe & fittings - manhole vents Gate valves - hot, cold water system Glazed wall tiles Glazed wall tiles adhesive Glazed wall tiles grout Granite vanity tops Guard rails, accessories & fittings Gypsum boards Hardware HDPE pits & ponds lining High yield deformed bars (epoxy coated) High yield deformed bars (epoxy coated) grade 60 Hollow metal doors & frames Home appliances Hose reels, cabinets - within building Hose taps - hot, cold water system Hydrants Impregnated expansion joint filler - bituminous flexcel sheets Industrial hoods Intumescent sealant Intumescent strip Kitchen cabinets Laboratory equipment Levelling screed Liner for ponds & reservoirs Lockers Louvers and grills Manhole steps Marble floor skirting Marble grouting Marble thresholds Marble treads & risers Marker boards, white boards & pin boards Metal handrails & balustrades Metal manhole covers & frames Metal roller shutter doors & frames Mirrors Moisture barrier HDPE (polythene 150 micron) Non return valves - hot, cold water system Non shrink grouts for anchors Office furniture & fittings Ordinary portland cement type I & IV Paints - civil works Plaster stops & angle beads Plastic pipes & fittings - rain water Pressure release valves - hot, cold water system PVC plastic pipes & fittings - drainage services beneath building PVC plastic pipes & fittings - foul drainage within building PVC waterstops
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Rain water outlets Road marking paints Road signs Rocks Roof drains Roof gravel Roof insulation Roof membrane Roof outlets Roof separation layer (geotextile) Sanitary ware fittings Seating benches Security fence (galvanised) Sinks Sunshades for car parks Suspended gypsum board ceiling System and accessories for gypsum board ceiling Thresholds Toilet accessories Turnstile doors UPVC pipes & fittings schedule 40 - cold water system Vehicle barrier (road blocker) Vehicle bumpers Vent caps for foul drainage within building Vinyl (antistatic) tiles and skirtings Vinyl (antistatic) tiles and skirtings adhesive Warning tapes - external services Water coolers Water hammer arrestors - cold water system Waterproofing membrane, vapour barrier (polythene sheeting 300 micron) Wood doors & frames Wrapping for RTR pipes WWF (mesh reinforcement) galvanised
G.3.4
Materials’ specifications
All purchased materials, which are to be incorporated in the works or affect their quality, are covered by relevant specifications. These specifications are referenced in the purchasing orders. Each specification contains, as appropriate: • •
• • • •
The material's identification data The material's technical characteristics, the nominal values of these characteristics and their tolerances The material's packaging, storage, handling and transportation requirements Installation, pre-commissioning and commissioning guidelines or instructions Service requirements Requirements for certificates of conformity or test reports for each batch, etc.
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•
•
The material’s environmental as well as occupational health and safety properties Other necessary information regarding the material (e.g. references to standards)
Specifications may be: • • • •
Based on international standards110 Copyrighted by a particular supplier approved by the company Introduced by the company Required by the client
G.3.5
Stock materials requisition
The purchasing procedure is initiated by: • • •
The project storekeeper Any task owner Any department head
who fills the appropriate form and sends it to the materials department, together with all the required data that define the material to be supplied. The materials department checks the requisition for completeness. The quality department reviews the requisition for conformity. G.3.6
Quotations from suppliers
The suppliers of the main equipment, materials of the project are usually proposed at tender stage so that the client may check their qualifications and capabilities in advance. As the design progresses the designer will send to the contractor lists of materials with quantities, descriptions, specification and quality control requirements (by the client, the contractor and/or external consultants. The contractor will invite offers from suppliers that are already approved by the client or the contractor. If new suppliers are required to be invited then the quality assurance processes for their approval process by both the contractor and the client should be initiated and 110
Dimitrios N. Dounas “Applied management in the construction industry An introductory approach for professionals Part I – In theory” Chapter “E.3 Organizations publishing standards” https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory Copyright © 2015
Dimitrios N. Dounas. All Rights Reserved Page 262 of 495
concluded in advance. For each material, equipment that will be incorporated in the works, the contractor will submit to the client a short list of potential suppliers. The client may finally approve the proposed by the contractor supplier(s) when they are found to comply with all the contractual requirements (production, quality inspection and delivery schedules). The materials department requests quotations, from approved suppliers only, either directly or through the company head offices in the country or abroad. Client’s contractual requirements for specific suppliers and/or materials are taken into consideration. The quotations are evaluated for: • • • • • • • • • • •
Conformity to the specifications Provision of inspection certificates by independent organizations Test reports Prices Payment terms Delivery time Installation complexity Hazards Risks Service requirements Any special terms that may be required
The discipline materials’ engineer in co-operation with the task owner and/or specialized project engineers prepare a comparison table and a proposal for the supplier and presents them to the project management team authorised signatories for checking, review and approval. G.3.7
Client’s approval of the supplier
An informatory package of the supplier’s qualifications and the technical, quality and HSE characteristics, details and specification of the material, are submitted to the client for its final approval. When the client’s approval is obtained then the purchase order may proceed. G.3.8
Suppliers’ subcontracts
The purchase order is: • • • •
Prepared by the discipline materials’ engineer (name & signature) Checked by the procurement manager (initials) Reviewed by the design manager (initials) Reviewed by the chief quantity surveyor (name & signature)
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• • • • •
Approved by the technical & controls manager (name & signature) Checked by the quality control discipline engineer (initials) Reviewed by the procurement quality manager (name & signature) Approved by the quality manager (name & signature) Approved by the project manager (name & signature)
Prior to the final approval of any substantial order, the finance department must confirm that there are adequate funds available to pay the items to be ordered. Once the suppliers are approved by the client, the contractor should perform an internal contract review of each supply subcontract. The contractor should issue a letter of intent to the preferred suppliers with a draft subcontract agreement and the technical specification/documents that are relevant to the suppliers’ scope, attached. The supplier should perform an internal contract review to verify that the draft subcontract meets all the terms and conditions of its offer. The supplier should obtain bank guarantees from banking institutions that are acceptable to the contractor. If, for any reason, the supplier cannot obtain the required performance guarantee then the contractor may cancel the whole process and confiscate the tender bond (if any). Additional legal proceedings may be initiated as per applicable legislation and the tender conditions. The final subcontract documents are signed and stamped by authorised signatories of both parties. The subcontract is registered with the required authorities as specified in the applicable legislation and the subcontract conditions. A construction project requires the best co-operation between all related parties. In this respect, the final contract documents should satisfy the prospects of both parties. Please refer to ISO “Quality Management Principles111” principles 1 (supplier) and 7 (contractor). G.3.9
Placement and follow-up of an order
A purchase order number is given to the approved order so that it is easily traceable.
111
International Organization for Standardization (ISO) “Quality management principles” http://www.iso.org/iso/pub100080.pdf © ISO 2015 All rights reserved Page 264 of 495
After all the above-mentioned approvals have been given, the material order is placed. The order is sent by the technical & controls manager directly to the selected supplier, either locally or abroad, for implementation. The discipline materials’ engineer, who prepared the order, is responsible for the follow up of the progress and the timely implementation of the purchase. The quality control engineer, who reviewed the order, is responsible for the quality assurance & control of the whole procurement process. Inspections at source are performed, as required, by company or third party inspectors. For shipments from abroad, the shipping documents are legalized and sent to the project or the country head office for further processing. The finance department, in close co-operation with the materials’ department, clears the materials at the ports, airports or borders of the country of operations and informs the plant department to arrange for the transportation to their final destination. G.3.10
Receipt of materials
The purchased materials are received at the project stores by the storekeeper, who performs a visual inspection of the materials and verifies their quantity and condition. Enclosed documents are examined and compared to the purchase order conditions by the discipline materials’ engineer. A crosscheck is also performed in order to verify that the heat no., serial no., lot no. etc. stated on the documents complies with the material’s identification data. The discipline quality engineer will confirm compliance of the materials with the purchase order. All chemical materials shall be accompanied by a material safety data sheet (MSDS). All material documents and MSDS are registered with the technical & controls department. A copy of the MSDS is sent to the HSE and the construction departments for their required action. If the material specification and/or the project quality plan so stipulate then the materials are tested prior to use for compliance with specifications. In case of non-conformity, a NCR, waiver or rejection instruction is issued and a replacement purchase order is placed.
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G.3.11
Storage of materials
The storage of the received materials is the responsibility of the project storekeeper. The materials that expire after a certain date or are sensitive to storage conditions are handled in accordance with the manufacturer’s recommendations. The storekeeper keeps records of the incoming and the outgoing materials in hard copy and electronically. G.3.12
Client-supplied materials
The client-supplied materials are inspected visually and their quantity is verified upon receipt. Additional inspections are performed, as the project quality plan requires. These materials are stored separately. G.3.13
Materials management system
The technical & controls manager is responsible for the materials management system, in such a way that he/she is able to track the exact status of each item of every part of the project at all stages, from schedule preparation until the stage of incorporation into the works. G.3.14 G.3.14.1
Quality assurance & control requirements for suppliers of manufactured materials, plant & equipment Supplier’s quality system
The supplier shall be responsible for all quality assurance activities necessary to ensure that the material’s production process meets the requirements, which are specified in the purchase order. All requirements applicable to the supplier shall also be applicable to its subsuppliers. The supplier shall establish and maintain a documented quality assurance system based on quality standard ISO 9001:2015 including scope for design quality assurance and control processes, if applicable. Effective implementation of the supplier’s quality system shall be demonstrated to the contractor by any (or all) of the following means: • • •
Certification by an accredited third party organization; Satisfactory audit by a major client within the past three years; A proven and active internal audit and management review program that meets the requirements of the nominated standard.
The quality system shall ensure that an auditable trail of activities, associated with carrying out the material’s production process, is maintained.
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G.3.14.2
Supplier’s quality plan
The supplier shall submit for the contractor's approval, a quality plan detailing the application of the supplier's quality system to the production process, as stipulated in the purchase order. The plan shall specifically detail how each element of the quality standard is applied to the material’s design and production process and shall contain: • • • • •
A system element outline Supplier's organization chart for the production process The list of procedures for the production process The list of inspection and test plans for the material’s production process, and A schedule identifying internal and external audits
The quality plan shall incorporate the requirements of the purchase order and shall be available to all responsible personnel engaged on the specified scope of the production process. G.3.14.3
Supplier’s quality procedures
The supplier shall submit quality procedures to the contractor for approval as specified in the purchase order. The supplier shall ensure that copies of the quality procedures are available to the contractor's representative at the location of the production process for reference. The supplier's quality procedures shall address the quality management system’s elements and activities applicable to the design, supply and production processes of the purchased material and the quality standard. G.3.14.4
Supplier’s quality audits
The contractor and the client may request to audit the supplier’s or their subsupplier’s quality systems during the bid or after the placement of the purchase order. However, the contractor reserves the right to perform quality audits or participate as observers in supplier audits during the production process to verify compliance with the purchase order requirements. Notice to perform an audit will be given in writing by the contractor. The supplier shall confirm its availability within a specified time frame, as per contract agreement and schedule an audit date. The supplier shall correct promptly all findings not complying with the quality standard and the purchase order requirements. The supplier may be requested to submit an audit schedule for the contractor's approval. Where an audit schedule is required, it shall be submitted to the contractor prior to the commencement of the production process.
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G.3.14.5
Material certification
Materials supplied for the project shall be of proved quality and shall carry certification as nominated in applicable specifications, codes or standards112 and/or the project contract documents. Where applicable, material certification shall be in accordance with EN 10204 and shall be fully identifiable by heat/batch number, markings or similar to product or item to which it pertains. Where material certification cannot be verified, consideration may be given to testing or analyzing the material(s) or item(s) to demonstrate suitability. All certification shall be endorsed by a National Association of Testing Authorities (NATA)113 approved body or an alternative authority approved by the contractor and the client. G.3.14.6
Material control and traceability
The supplier shall utilize all necessary material control procedures to ensure that each different type, grade or size of material or component, including contractor supplied materials remain identifiable until incorporated in the works. Where traceability is specified for materials, individual components or subassemblies, it shall be carried out by means of hard stamping, indelible marking, or other approved means and supported by documented records. The supplier will submit for the contractor’s approval the method to be used, the identification system and the records to be maintained prior to the production process commencing. Where codes, standards or regulations require the traceability of materials, welds, non-destructive testing, sub-assemblies, etc. the supplier shall identify such requirements and implement controls that will ensure they are satisfied. G.3.14.7
Inspection & test plans
A procurement inspection and test plan (ITP) is a document, prepared by mutual consent of all interested parties of a project (supplier, contractor & client), that refers systematically to all quality control requirements, inspections, testing and checking of documents, materials and work processes related to the design, procurement and production phases of a material, plant, equipment. 112
113
British Standards Institution (BSI) “BS EN 10204:2004 Metallic products. Types of inspection documents” http://shop.bsigroup.com/ProductDetail/?pid=000000000030027046 © British Standards Institution 2016 National Association of Testing Authorities (NATA) Australia http://www.nata.com.au/nata/ Copyright © 2016 NATA. National Association of Testing Authorities, Australia. Page 268 of 495
G.3.14.7.1
Contractor’s inspection and test plan
The contractor may choose to identify minimum and essential inspection and testing requirements to be undertaken by the supplier. Such inspections and tests as well as the terms of the contractor’s inspection requirements (i.e. review, witness, hold, etc.) should be summarized in a list of inspection and testing requirements that should be attached to the material requisition. This however in no way absolves the supplier from determining the full extent, type, frequency and acceptance criteria of all inspections and tests detailed in the purchase order either explicitly or implied by codes and standards and for performing those inspection and tests. G.3.14.7.2
Supplier’s inspection and test plan
The supplier shall prepare and submit an inspection and test plan (ITP) to the contractor for approval. The supplier shall not commence fabrication or manufacturing prior to the approval of the ITP by the contractor. The format of the ITP shall be at the discretion of the supplier but shall include or specify the following as a minimum: • • • • •
•
Description of each operation; Description of each test, examination or inspection; Applicable specification or procedure; Acceptance criteria; Hold point, witness point, review point and monitor point requirements of the supplier (or sub-supplier), the contractor, the client, certifying authorities and statutory authorities, where applicable, and The requirements of the main contract’s inspection and test plans (ITP).
G.3.14.7.3
Inspection activity terms
The terms "hold point", "witness point", "review point" and "monitor point" are defined as follows: •
•
Hold point - An inspection point in the manufacturing cycle beyond which the production process shall not proceed without the specified activity, work, test or function being witnessed. Witness point - An inspection point in the manufacturing cycle that will be witnessed or verified. If the witnessing representative is unable to attend, after being informed with the required written notice, then the manufacturing may proceed.
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•
•
Review point - A point at which products and quality records are verified and endorsed. Monitor point - An inspection point in the manufacturing cycle during which an activity, work, test or function is observed. No formal notice is required.
G.3.14.8 G.3.14.8.1
Inspection levels, notification, pre-inspection and inspection meetings & inspection release certificates Contractor’s inspection levels
The contractor reserves the right to perform surveillance inspection at the supplier's premises, the sub-supplier's premises or at the location of the production process. The levels of inspection by the contractor are defined in the material requisition, purchase order as follows: •
•
•
•
Level 1 - Final inspection Final inspection prior to shipment only. Level 2 - Limited scope inspection Specified progressive inspection is required as follows: Inspection activities as specified in the inspection and test plan or at the frequency prescribed in the inspection and test plan; Review of supplier quality records as they become available; Routine review of the supplier's quality system implementation as it relates to the current purchase order. Level 3 - Full scope inspection The requirements are similar to level 2. In addition, the contractor's representative may perform supplementary inspection or surveillance as it may be determined by the product complexity or the supplier's performance. Level 4 - Resident inspection Full time inspection by the client’s representative, for the specific purchase order, performed at the material’s production location, during the whole production process period.
G.3.14.8.2
Inspection assignment package
An inspection assignment package (IAP) will be prepared for each manufactured material, plant & equipment by the procurement quality team, reviewed by the procurement quality manager and approved by the project quality manager. Inspection assignment packages consist of, a set of documents that include details of purchased material, plant, equipment and their quality requirements needed to perform full inspection at the supplier’s/sub-supplier’s facilities. The IAP will be submitted to the client for information and comments (if any) and sent to the supplier and the inspection agency for their necessary action and compliance. The inspection assignment package shall include, as a minimum, the following documents:
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Sample contents of an IAP • • • • • • • • • •
•
• •
• • • • • •
• • • • •
• • • •
•
Supplier’s approval Scope of the supply Technical conditions of the supply subcontract Audits’ schedule Supplier’s quality plan Inspection agency’ s particulars Inspection agency’s approval Inspector’s CV Inspector’s approval The notification document of the contractor to the supplier for the assignment of the inspector A complete copy of the contractor’s un-priced purchase order, material requisition and associated attachments Copies of sub-supplier(s) un-priced purchase order(s) Approved design Drawings Calculations Data sheets Approved specification Regulatory requirements Inspection requirements HSE requirements Certification requirements Inspection & test plans Client Contractor Supplier Inspection certificates’ requirements Inspection release report Pre-inspection meeting agenda Commencement date Schedule of materials’ supplies, manufacturing, assembly, commissioning, packaging & transportation Inspection schedule Communication outline Reporting outline Progress reports Daily Weekly Monthly Intermediate Final Manufacturer's data report (MDR)
G.3.14.8.3
Inspection notification
The contractor shall formally notify the supplier of its inspection representative and where possible the proposed inspector(s).
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In response, the supplier shall formally advise the contractor of the location of the production process, the address and the person(s) representing the supplier on quality matters. The supplier shall give the contractor and/or its representative(s) formal notification of witness and hold points nominated for its attendance. Notification shall allow sufficient time for the contractor and other representatives to arrange and travel to the site and shall not be less than two weeks prior to the inspection date. The supplier shall ensure that access is given to the contractor’s representative(s), the client, certifying authorities and statutory authorities to inspect the works and review procedures and quality records at its premises, the premises of sub-suppliers or at the location of the works. While the contractor's representative is at the supplier's premises, the supplier shall provide free of charge reasonable facilities including fully furnished and equipped (including secure telephone and internet lines) office space, if so requested. G.3.14.8.4 G.3.14.8.4.1
Procurement inspection meetings Procurement pre-inspection meeting
A pre-inspection meeting (PIM) may be requested by the contractor to be held at the supplier's premises or at the location of the works to ensure that all requirements of the purchase order are understood and to discuss the implementation of the quality requirements. The contractor will formally notify the supplier of the pre-inspection meeting arrangement and agenda. The supplier shall formally advise the contractor of its agreement with the time and agenda. Pre-inspection meetings will be chaired and minuted by the contractor’s representative. As a minimum, the supplier’s quality representative and the senior production personnel shall attend the pre-inspection meeting. Sample procurement pre-inspection meeting agenda • • • •
Introduction Attendees Assignments (titles, roles & responsibilities) Scope of supply Supplier’s detailed list of materials, specification, quantities and associated inspection requirements & certificates
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• • • • • • • •
•
•
• • • • • •
Sub-suppliers’ detailed list of materials, specification, quantities and associated inspection requirements & certificates Inspection scope & regulations Inspection levels Inspection objectives Inspection & test plan(s) Certification requirements Review quality policy, manual & procedures Review past inspections, audits’ reports Review agreed documentation (un-priced, complete with attachments ) Subcontract Purchase order Requisition Supplier’s, sub-suppliers’ planning, scheduling Design Supply of materials Supply of components Production Personnel availability & competence Facilities’ availability Materials’ availability Production schedule Testing Assembly schedule Packaging Transportation Inspections schedule Notification Inspection Reports Generate inspection log Generate reporting log Generate NCR log Mock inspection Communication lines Minutes of meeting
The supplier’s representative will draft the minutes of meeting and send them to the contractor’s representative for his/her consent. Both representatives will sign the agreed minutes of meeting and distribute them internally. G.3.14.8.4.2
Materials’ production inspection meetings
Inspection meetings will be held at the supplier's or the sub-supplier’s premises or at the location of the works. Sample inspection meetings agendas
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•
Opening meeting Introduction Scope Documents Inspection Testing
•
Daily meetings (resident inspector) Test results Inspection findings & observations Deviations Changes Corrections Progress diary
•
Closing meeting Summary report Clarifications on findings NCR Deviations Immediate corrective action Corrective action plan Minutes of meeting
The supplier’s representative will draft the minutes of meeting and send them to the contractor’s representative for his/her consent. Both will sign the agreed minutes of meeting and distribute them as stipulated in the subcontract conditions. The contractor’s representative will prepare and issue a complete inspection report to the procurement quality manager. G.3.14.8.4.3
Materials’ inspection release certificates
At the successful completion of the production process, either in total or in stages, the contractor's representative will issue an inspection release certificate (IRC). The issuance of an IRC in no way relieves the supplier of its obligations under the purchase order. The supplier shall ensure that a copy of the IRC is attached to the delivery documentation and accompanies the material to the destination nominated by the contractor. Items delivered without a copy of the IRC may be subject to rejection by the contractor.
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G.3.14.9
Non-conforming products or activities
The supplier shall establish and maintain procedures to control products or activities not meeting the specifications. The disposition of non-conforming materials or activities shall be recorded and reported to the contractor for approval, acceptance, waiver or rejection. G.3.14.10
Manufacturer’s data report
The supplier shall compile a manufacturer's data report (MDR) for the production process and shall include as a minimum those records indicated in the purchase order. The production process shall not be complete until the supplier's quality records have been received and approved by the contractor. Prior to the compilation of the MDR, the supplier shall submit for the contractor’s approval the MDR index identifying those sections of the MDR applicable. The MDR shall be compiled progressively during the production process and shall be made available for review and endorsement by the contractor's representative on a progressive basis. Following completion and review by the contractor's representative, copies of the MDR shall be forwarded to the contractor for approval prior to the submission of the required number of MDR copies. The MDR shall be submitted in controlled standard ring binders and an electronic copy, as stipulated in the purchase order. The MDR is to be compiled into logical sections using dividers. Certificates will be marked at the top with purchase order and Item numbers. MDR submitted in electronic format shall be comprised of files with logical and sequential filenames to enable easy reassembly and printing of the complete records. The supplier shall identify the MDR with the following information included on the cover: • • • • •
Project name Contractor's name Description of plant, equipment, materials Purchase order number Supplier's name and address
G.3.14.10.1
Sample manufacturer’s data report index
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MDR index General A. Materials description (tag numbers, skid numbers etc.) A.1. Suppliers document register by document type [including drawings, data sheets, procedures, installation, operation, maintenance (IOM) manuals etc.] A.2. Data sheets (including equipment, product, painting, etc.) A.3. As-built drawings (Identified as such) A.4. Calculations, statutory approvals, equipment certificates (ASME U-stamp certificates, API certificates etc.) A.5. Approved inspection and test plan (signed off) A.6. Approved inspection checklists (signed off) A.7. Approved inspection records (quality & HSE - signed off) A.8. Positive materials identification (PMI) records A.9. Inspection release certificates (supplierâ&#x20AC;&#x2122;s and contractorâ&#x20AC;&#x2122;s) A.10. Reproductions of equipment name plates B. Materials B.1. Materials register B.2. Materials certificates B.3. Materials safety data sheets (MSDS) C. Welding C.1. Welding procedure register C.2. Welding procedures C.3. Welders qualifications register C.4. Welders qualifications C.5. Consumables register C.6. Consumable batch certificates D. Fabrication and mechanical records D.1. Traceability drawings D.2. Material traceability records D.3. Welding traceability records D.4. Non-destructive examination (NDE) reports D.5. Post-weld heat treatment records D.6. Pressure test records D.7. Mechanical test records D.8. Shop performance test records D.9. Insulation records D.10. Painting records D.11. Other records E. Electrical and instrumentation records E.1. Electrical type test certificates E.2. Electrical test records E.3. Instrument calibration records
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E.4. E.5. E.6.
Instrument test records Hazardous area certification Other records
F. Process records F.1. Process safety management (PSM) of highly hazardous chemicals (HHC) records G.
Pre-commissioning records
H.
Commissioning records
I. Miscellaneous records I.1. Calibration certificates I.2. Non-conformity reports I.3. Technical queries I.4. Other records G.3.15
Inspection agencies
International accredited114 inspection agencies115 are selected and sub-contracted as second party inspectors in major and complicated projects, with scores of suppliers around the world, supplementing the contractor’s procurement inspection team. The inspection agencies offer services to and act on behalf of the contractor performing all kinds of inspections at the premises of the suppliers or the subsuppliers. The inspection agencies are approved by the client before commencement of any service provision to the contractor. The agency’s certified inspectors are approved by the contractor and the client for each specific category of inspections, in advance. The names and details of the approved inspectors are sent to the respective suppliers for their information. An inspection assignment package (IAP) is prepared by the contractor’s procurement quality department, reviewed by the client and sent to the approved inspector and the 114
115
International Accreditation Service https://www.iasonline.org/about-ias/ © 2016 International Accreditation Service The American Society of Mechanical Engineers (ASME) “ORGANIZATIONS HOLDING AUTHORISED INSPECTION AGENCY CERTIFICATES OF ACCREDITATION” https://www.asme.org/wwwasmeorg/media/ResourceFiles/Shop/Certification%20 %26%20Accreditation/BPV-Certification/BPV-Certification_AdditionalInformation_List-of-Authorised-Inspection-Agencies.pdf © The American Society of Mechanical Engineers Page 277 of 495
supplier, in due time. Please refer to chapter “G.3.14.8.2 Inspection assignment package” above. The inspector will be in constant contact with and report to the discipline procurement quality engineer who is following up the purchase order or the procurement quality manager at all times and for any reason. Reference •
International Organization for Standardization (ISO) “ISO/IEC 17020:2012 Conformity assessment -- Requirements for the operation of various types of bodies performing inspection” http://www.iso.org/iso/catalogue_detail?csnumber=52994 © All Rights Reserved
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Chapter H Project construction preliminaries Outline •
•
Series of essential activities set out the construction preliminaries in a chronological order as they will be listed and expanded in the detailed implementation program. The main categories are: Kick-off meetings Site(s) handing-over Mobilisation
H.1
Project kick-off meetings
Members of the executive committee (as appropriate), the country management team and the project management team will set up and participate in a series of meetings that are considered essential for the proper commencement of the project or are compulsory according to the project’s contracts and subcontracts documents and the company’s processes, procedures and protocols. The meetings should be well organised with structured agenda, specified venue and time, and specific lists of attendants who should have been notified well in advance. The minutes of these meetings will be prepared under the responsibility of the project manager and distributed to all participating parties under controlled conditions. The kick-off meeting(s) with the client will be initiated by the client at its convenience and according to the contract documents. H.1.1
Internal meetings
Internal kick-off meetings will be initiated by the project management team, as many as required by the magnitude and the complexity of the project, in an effort to set-out lines of communication, reporting, delegation of authorities and responsibilities, related to the project, between the executive committee, the region, the country and the project management teams. In simple terms for each project activity a process will be established and agreed so that the “who does what” question is answered. The structured minutes of these meetings will be distributed to all task owners in an effort to simplify and promote effective communication between all members of the project implementation team. The minutes of all these meetings will be combined in one detailed table, matrix with all the tasks, their respective owners, authorities, responsibilities and chain of command, listed.
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This matrix will be reviewed by the project management team on a monthly basis for organizational efficiency or when process bottlenecks create internal conflicts of interest, prevent scheduled project progress or raise costs. The revisions, if any, will be proposed by the task owner, reviewed by the project manager and approved by the discipline director for mega or major projects or the country manager for all other projects. H.1.2
Partners - if in joint venture
A joint venture -a usual practice for the construction of mega engineering projectsmay be formed, at tender stage, by specialized contractors in those engineering disciplines that are required by the project’s scope of works. It may have a form of an independent commercial enterprise under the provisions of a contractual agreement signed by all parties and registered according to the provisions of the law or the companies may act independently under the provisions of a memorandum of understanding. The articles of its association will comply with legal, statutory and regulatory requirements and the companies’ articles of association and protocols. The joint venture must be approved by the client, in advance of its participation in the tender process. The joint venture partners will participate in all activities of the tender process associated with their scope of services; please see “Chapter C Tender stage” and “Chapter D Main contract(s) preparation & signature”. The chief executive officer or the discipline director of the leading partner will invite all joint venture partners in a series of meetings, after the main contract(s) signature and before the project commencement date. Topics to be discussed and agreed (indicative list): •
• •
Appointments Project administration Board of directors Project director Executive committee Authorities, responsibilities Project management teams (one for each partner responsible for their scope of supply) Members Delegation of authorities, responsibilities Task ownership Partners scope of services Project investment Financing
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•
• • • • • • • • • • • •
Guarantees Insurances Establishments Offices Camps Workshops Networks Production units Plant Equipment Project receivables Valuations Invoices Project taxes, statutes and levies Project cash flow Project budget Project management systems Project objectives Project schedule Project controls Design Procurement Subcontracting Communication, meetings, records & reporting Audits
H.1.3
Financial institutions
The project cash flow, the project budget and the contractor’s financial potential and policies, will designate cash injections that may be required at any stage of the project. The chief financial officer will obtain proposals from financial institutions116 for the specific project or the project financing will be included in the overall financing framework of the company, at tender stage. Quotations for insurances that will cover the “lack or shortages of financing” risks should be obtained The worst-case, most costly, scenario will be considered and approved by the executive committee. When the contract is signed, the chief financial officer will validate the project financing proposals and their respective terms and conditions and present the same to the executive committee for its approval. The country manager, the country financial manager, the project manager and the project financial manager will participate in these meetings. 116
Lesson learned. The financial institutions are not charity foundations. The less a contractor is exposed to their appetite the better control of its survival it has. Page 281 of 495
The agreements with financial institutions should be checked by the legal department for compliance with legal and regulatory requirements, reviewed by the company auditors for compliance with the company’s articles of association, and approved by the chief financial officer and the chief executive officer. Depending on the amount of the required cash, the currency, the interest rate(s), the instalment sums and stages, the repayment terms and conditions and the company’s articles of association, the agreement(s) may require the approval of the board of directors. Project financing is the responsibility of the top management of the company and it should remain with them for the duration of the project. The chief financial officer will meet with the responsible officers of the lenders when required. The chief financial officer will keep the discipline director, the country manager, the country financial manager, the project manager and the project financial manager informed, on project financing, at all times. H.1.4
Designer(s)
The project manager will invite the approved designer(s) to meet shortly after the design subcontract is signed. Topics to be discussed (indicative list): • • • • • • • • • • • • • • • • • • •
Contractor’s design team Designer’s organization Design requirements Design planning Design inputs Design controls Design outputs Design changes Design deliverables Computer systems Computer software Production methods Production controls Production schedules Production stages Communication, meetings, reporting Quality plan Audits Kick-off meeting with the client
Please refer to “Chapter F Project design”.
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H.1.5
Subcontractor(s)
The project manager will invite the approved subcontractor(s) to meet shortly after the subcontract is signed. Topics to be discussed (indicative list): • • • • • • • • • • •
Organization Personnel Plant & equipment Commencement date Mobilisation schedule Construction schedule Management systems Method statements Quality plan Quality control HSE plan
H.1.6
Suppliers
Please refer to “Chapter G Project procurement of manufactured materials”. H.1.7
External auditors
External accredited auditors check periodically the appropriate implementation of the following approved company management systems: • • • •
Financial Quality Environmental Occupational health & safety
The extend, confidentiality and frequency of these audits will comply with legal, regulatory and contractual requirements and the company’s procedures and protocols. The project manager will invite the approved external auditors to meet shortly after their offers are accepted and signed. Topics to be discussed: •
•
Proposed auditors Names Qualifications Proposed audit schedules
H.1.8
Client
The client will invite the contractor, in due time shortly after the contract signature, to
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discuss the requirements of the contract and establish proper communication channels between all parties, in the first official project kick-off meeting. The venue and the date, time of the meeting will be mutually agreed so there is enough time for decent preparation. Client’s consultants, if any, are usually considered members of the client’s team and act on its behalf. Approved designers and subcontractors may also be invited. They are considered as members of the contractor’s team. The discipline director, the country manager and the project management team should participate on behalf of the contractor. It is common practice that all parties make an introductory presentation of their organizational structure, scope of services, experience and approved management systems (as applicable). The teams’ members that will have the responsibility to represent each party in the production of the project are introduced to each other. Topics usually discussed (indicative list): •
•
•
•
•
•
Organizations Structures Members Authorisations Authorised officers Appointments Powers of attorney Pending issues Contractual Legal Regulatory Project commencement date Contractual terms & conditions Legal terms & conditions Regulatory terms & conditions Site(s) handing over Contractual terms & conditions Legal terms & conditions Regulatory terms & conditions Site visits Site handing over meetings’ schedule Project schedule Submission(s) Contractor Designer Presentation(s)
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•
•
•
•
•
•
•
•
Key milestone dates S-curve Project specification Contract Country International Project requirements Project management Quality management HSE management Correspondence, documents submissions & approvals Authorised signatories Means Registers Archives General, special and discipline meetings Schedules Agendas Communications Personal Official Correspondence Meetings Telecommunications Internet systems Intranet systems Satellite systems Telephones, faxes Wireless systems Services to the client Accommodation Offices Facilities Telecommunications Transportation Other issues (as required)
The minutes of this meeting will be prepared by the client’s representative and sent to the contractor for its consent and signature, as stipulated by the contract conditions unless it is mutually agreed -in writing- otherwise. The mutually agreed minutes of meeting are distributed as specified by the contract conditions. In case of disagreement, the contractual requirement on “disputes resolution” will prevail. The same process will be followed for every meeting called by the client during the course of the project.
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H.2
Site(s) handing-over
This part of the project commencement process is extremely important for its successful implementation. Issues related to the site handing over are considered at the first official kick-off meeting -see paragraph “H.1.8 Client“ above. A schedule of visits and meetings is agreed as specified in the contract conditions. Any pending issue is monitored. Delays of the site handing over, for any reason, might initiate contractual claims and disputes before even the project commences. H.2.1
Site(s) handing-over meeting(s)
The site(s), where the project will be constructed, are handed over to the contractor, free from any obstruction, in well-structured official meetings. Issues for clarifications, checking, confirmation, handing over and acceptance (indicative list): 1. 2. 3. 4. 5. 6. 7. 8. 9.
Ownership rights of all project sites, areas, access roads and rights of way Permits117 of the project Permits of the project sites, areas Rights of way permits Sites limits Sites clear from all obstructions Accesses to the sites clear from all obstructions Establishments areas limits Quarries and borrow-pits areas limits
Any of these issues may cause delays in the commencement of the works. H.2.2
Handing-over report(s) preparation and signature
The documentation, that supports the implementation of the above-mentioned (para H.2.1) course of action, is combined in one or more handing over report(s) and signed by authorised representatives of both parties. Once all of the above issues are cleared and signed-off, then the project sites, areas are considered as handed over to the contractor, free from all obstructions. The date, when the latest associated document, handing over report is signed by both parties, is considered as the date of the site handing over.
117
“Permits” stand for contractual, legal and regulatory licenses/permits, as applicable Page 286 of 495
The client will distribute these formal contractual documents as specified by the contract conditions and confirm the site handing over date. H.2.3
Commencement of the project period
The contract documents specify the pre-requisites to be met, jointly, so that the project period commences, those usually being (as applicable): 1. 2. 3. 4. 5. 6.
Submission & acceptance of the project guarantees (both parties) Submission & acceptance of the project insurances (both parties) Contract signature (both parties) Contract registration (contractor) Confirmation of the site(s) handing date (both parties) Confirmation of the opening of letter(s) of credit (both parties)
The latest date, when all the above conditions are met, usually fixes the project commencement date. H.3
Mobilisation
Mobilisation activities form an engineering construction project by itself. In mega or major projects, a small town may have to be built and function for the duration of the project. The usual mobilisation activities in an engineering project might be (indicative list): • • • • •
Construction of temporary access roads Preparation of sites, camps, plant and establishments areas Project infrastructure, facilities, networks & establishments Production plant(s) establishments Quarries
Process outline •
•
•
•
•
Site investigation and surveying activities will be performed by competent company teams operating in the country, after the contract signature and before the site(s) handing over, with the permission of the client. The company design department, in the country or abroad will prepare the design of all separate elements of the mobilisation project. It will be based on previous experience in similar projects. The design will be supervised by the project design manager, reviewed by the site manager and approved by the project manager. A mobilisation team should be established from resources within the country of the project works/operations so that valuable time is not lost in recruiting processes, unless the country management has declared, in writing, at tender
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stage, its incompetence to comply with this requirement. •
•
•
•
•
•
•
•
•
118
In that case the project management team will initiate employment processes as referred in chapters ”E.1.7.1 Project personnel - Requirements“ and “E.1.7.2 Project personnel - Recruitment“. The synthesis of the team will be decided by the project management team who will have the overall responsibility of the mobilisation process. The site manager will manage, supervise and control all mobilisation activities. The country management should offer its optimum solutions in the establishment of this team. The company will design, construct, serve and operate accommodation, first aid, messing and logistics facilities for the mobilisation team, as a top priority, using company resources or approved subcontractors. The team will mobilise as soon as these facilities are complete and running. The team will be served by the country main office until the project management team has established the project’s service departments. The team will prepare a complete mobilisation schedule of all mobilisation activities, that serves the purpose of the project, with levelled resources and detailed materials’ take-offs. The forecasted mobilisation costs will be re-calculated by the project mobilisation team, checked by the site manager and approved by the project manager.
•
Logistics constitute a major day-by-day concern.
•
Loose ends and ignorance should not be allowed in any part/link of the chain118.
Cf. Thomas Reid Essays on the Intellectual Powers of Man, 1786, Vol. II, p.377, Essay VII, Of Reasoning, and of Demonstration, ch. 1: "In every chain of reasoning, the evidence of the last conclusion can be no greater than that of the weakest link of this chain, whatever may be the strength of the rest." https://archive.org/details/essaysonintellec02reiduoft Page 288 of 495
Chapter I Project construction Needless to define or highlight the significance of this stage. I.1
Project period
The project period commencement date is established when all its contractual prerequisites are met. The project duration and milestones are specified in the contract documents. The start and finish dates of all milestones and stages of the project are set. Milestones that might have been specified in the contract documents: • •
• • • • •
10%, 50% and 90% staged completion of the final design (quantitative criteria) Procurement of basic manufactured materials, plant and equipment staged completion (time spans for each item) Construction staged completion (deadlines for basic units) Construction completion Pre-commissioning Preliminary handing over Final handing over
Main stages of the project period: •
•
• • • • •
Start-up Preliminaries Mobilisation Implementation Design Procurement Construction Pre-commissioning Preliminary handing over Maintenance, liability period Demobilisation Final handing over
The project manager should have assumed duties, when the company decided to participate in the tender for the project, manage and control the tendering process and all related activities thereafter. The quality manager should have assumed duties at tender stage or when the company received the letter of intent. The other members of the project management team should have assumed duties after the contract signature but well before the project commencement date.
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The project manager and the quality manager are approved by the client immediately after the project commencement date. All the members of the project management team are approved by the client, as required by the contract conditions. I.1.1
Initial stage of the project period
Process outline • • • •
Project start-up activities continue Project design activities start Project procurement of manufactured materials activities start Project construction preliminaries expand in full gear
The project management team will operate both off-site and on-site, at the initial stage of the project and for as long as it is required. Off-site team • •
•
•
Project manager Quality manager Quality control superintendent (design & procurement) Quality control team (design & procurement) Technical & controls manager IT Planning manager Planners Cost controllers Design manager Design team Procurement manager Procurement team Legal licenses & permits team Financial and administration manager Chief accountant Project accounts team Chief administrator Project administration team
The off-site team will operate from its own independent, fully functioning, safe and secure office establishment, inside or outside of the country head office, until the site facilities, offices are ready or for as long as it is required. They will encode and agree with the country and the company management the (documented and controlled) cooperation and support practices in accordance with the company management systems. In simple terms they will agree with the country and the company management the “who does what” matrix in all activities outside their direct control.
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•
•
•
This is an extremely important process, in an effort to establish professional relationships and avoid the “scapegoat” game when something goes wrong. It is advisable that the project management team do not transfer any part of their scope of services, duties to the company head office(s) or they will loose control of the project. The project management team should accept supplementary assistance services only.
They will meet with the client, as and when scheduled or required. They will take part in the sites’ handing-over procedures with the client and sign the appropriate documentation that establishes the project commencement date free from all obstructions unconditionally or with reservations, as specified in the contract documents and the applicable legislation and regulations. They will agree with the client on: • • • • • • • •
Conduct protocol Information channels Communications Management teams (design, procurement, construction) Contractual document submissions and approvals Schedule of submissions and approvals Progress meetings (schedule and agenda) Reporting (subject, format, frequency)
They will meet with the local authorities, as and when required. They will obtain all required licenses and permits for the project. They will meet with the designers, the subcontractors and the suppliers, as and when scheduled or required. They will manage, supervise and control the design, procurement and construction activities. They will produce the required documentation (schedules, management plans, work procedures, etc.) and obtain the approval of the client. They will apply for and obtain, in time, the required statutory and regulatory licenses and permits for the project from the competent local or state authorities. They will be in continuous, instant and direct contact with the on-site team. They will offer unlimited support, services (licenses, permits, approvals, designs, documents, equipment, materials, personnel, hardware, software, communication systems, etc.) to the on-site team. They will visit the site and meet with the on-site team, as and when scheduled or
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required. They will gradually mobilise at the site. On-site team • •
• •
•
•
•
• •
Site manager Construction manager Setting out and construction teams Planning and controls team Plant manager Plant erection team Plant repairs team Plant service team Transportation team Production teams Quality control manager Quality control team Laboratories’ team HSE manager HSE team Site administrator Medical services team Offices personnel Camps personnel Site accountant(s) Site storekeeper(s)
The on-site team will gradually assume duties at the site of works following the progress of the mobilisation and recruitment activities. They will supervise the planning and construction of temporary buildings, plants, networks and facilities. They will plan and commence the construction of permanent works. I.1.2
Construction stage of the project period
A lengthy and intense period, that should be managed, contained and controlled. Full teams operate at the site (client, consultants, contractor(s), designer(s), subcontractors, suppliers). Full scale, round the clock, operations. Project construction stage activities: • • •
Completion of project start-up activities Project design finalisation and completion Project procurement of manufactured materials expansion and completion
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• •
•
•
I.2
Project construction preliminaries completion Project construction: Construction detailed planning Construction start-up Construction management Project technical & controls management Project quality management Project HSE management Project plant management Construction completion Construction punch list items clearing Project documentation completion Quality documentation completion Connections with domestic utilities and transportation systems completion Project areas’ restoration Waste disposal areas treatment Quarries restoration Demobilisation Pre-commissioning Preliminary handing over Maintenance Construction of temporary buildings, plants, networks and facilities
Construction of temporary structures, networks and facilities, to be utilized by and serve the site personnel, forms a complete project by itself. I.2.1
Construction of temporary access roads
Temporary access roads are usually required to be constructed between the various project sites/areas as well as from the domestic roads’ network to the sites, as most of the oil & gas projects are being built in remote or even desert areas. The specification of these roads and their components (aggregates, rocks, drainage systems, sub-grade, sub-base, base course, asphalt layers, road signs and protection systems) depend on the contractual, legal and regulatory requirements, the traffic conditions and loads, the project duration, the local and weather conditions and the budget costs estimated for these works. Process outline •
•
•
A mobilisation team (surveyors, engineers, supervisors, operators, construction and services workers) will be selected and transferred to the site when accommodation, meshing and first-aid facilities/services are established and running. Standard earthmoving equipment -dozers, graders, loaders, excavators, and tipper trucks etc.- will be used. The materials will be obtained from adjacent borrow pits or they will be procured
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from the local market. •
The country management will allocate the required resources to the project, on time.
I.2.2
Preparation of sites, camps, plant and establishments areas
Parallel to the construction of the temporary access roads the same team will survey, mark, clear and level all project areas as it serves their purpose. Detailed surveying drawings will be sent to the country design office for their necessary action in preparing the final design of the project temporary or permanent buildings, roads, networks, plants and services’ areas. The designer will get soft copies of the surveying data/drawings prepared by the contractor or it will send its own surveying team for this purpose. I.2.3
Project infrastructure, facilities, networks & establishments
The project infrastructure, in a mega or major project, usually serves a rather huge community of individuals of various nationalities that live and work side-by-side for a long period. Properly and timely designed and constructed facilities form a major component in a successful project. I.2.3.1
Construction sites’ facilities and services
The contractor may have to establish and operate any or all of the following facilities and services, as required by the project conditions: •
Construction sites’ facilities and services First aid, clinic Workers’ accommodation Restaurants Workplaces Offices Communications’ networks Water networks Sewage networks Electrical power network Computers’ network Recreational facilities Parking areas Evacuation master points Workshops Carpentry Electrical Plant maintenance and repairs Precast yard
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Steel reinforcement Welding Stores Materials Spare parts Fuel and lubricants Laboratories Civil Chemical Electrical Instrumentation Mechanical Welding The responsibilities of each and every department -HSE, administration, plant, technical, construction etc.- in the design, construction, establishment, provision, operation and servicing of these facilities should be clearly specified in standard company procedures/work instructions. I.2.3.1.1
First aid, clinic
The provision of first aid at work is a legal obligation for the employers. The extent and the means, for the fulfilment of this duty, should comply with the applicable legislation, the provisions of the company’s health management system and the contract conditions. In principle, from day one of the mobilisation process, complete first aid kits and a (trained, qualified and certified) first aid provider will be available for every team of twenty (20) workers, for the duration of the project. A fully equipped site clinic and its pharmacy are usually established and operated for major or mega projects. Provision of medical support by medical hospitals in the country of operations or abroad is usually contracted with all-health-risk insurance policies for all workers and interested parties. Transportation (air evacuation included) of injured or ill persons is also part of the insurance policies. References (indicative list) •
•
Government UK Legislation “The Health and Safety (First-Aid) Regulations 1981” http://www.legislation.gov.uk/uksi/1981/917/contents/made © Crown copyright Health and Safety Executive (HSE) UK HSE - First aid “Legislation” http://www.hse.gov.uk/firstaid/legislation.htm
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•
Copyright Health and Safety Executive (HSE) UK “First aid at work” http://www.hse.gov.uk/pubns/indg214.htm Copyright
I.2.3.1.1.1
Clinic
The project management team will decide the establishment of a clinic after considering the following: • • •
•
The nature of the works to be executed The size of the establishment and the distribution of the workforce The location of the establishment and the locations to which employees travel in the course of their work The distance from outside medical assistance
Clinic facilities (size, type, isolation room, equipment, materials, medicine and personnel) should be established as per company procedures and applicable legislation, regulations and standards. Qualified and certified professional occupational doctors, medical providers and pharmacists should be mobilised and manage/run the clinic for the duration of the project. Clinic visiting hours, subject to the site requirements and details of the hours that the clinic is manned, will be posted outside of the clinic and on notice boards throughout the camp(s). At all other times, including holidays, emergency visits only should be made to the doctor through contacting the camp manager. The camp manager should always know the location and availability of the doctor outside of normal working hours. Reference •
British Medical Association (BMA) “Ethics” https://www.bma.org.uk/advice/employment/ethics Privacy policy Terms and conditions Acceptable use terms
I.2.3.1.1.2
Consultation procedure
The doctor conducts an examination of the patient, diagnoses any problem and where appropriate prescribes medication from the clinic’s pharmacy stock. A prescription and authorisation to purchase medicines from an outside pharmacy will be given in the event that they are not available ex stock from the clinic.
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Receipts, attached to the doctor’s prescriptions shall be presented to the administrator who will authorise payment. The doctor will isolate the patient, when it is required, and will inform immediately the administrator. The doctor will normally be available in the clinic during company working hours. The doctor will not examine patients or prescribe medication for persons not employed by the company. Exceptions to this rule will occur only with the approval of the project manager or in cases of exceptional emergency when appropriate records will be kept. In cases of hospital referrals or transfers, the doctor or the administration department (with the doctor’s advice) will co-ordinate with the transport department to arrange the transport appropriate to the case. Serious and emergency cases will be immediately transferred to the appropriate hospital on the authority of the doctor. The approvals required by this procedure will be obtained after the patient’s admission to a hospital and a preliminary report will be prepared for the administration department. The doctor shall follow-up cases admitted to hospital at all stages and shall keep the administration department fully informed regarding the situation. Written notices will include the progress and improvement of the patient and any recommendations or instructions from the doctor regarding the patient until his/her discharge. The company doctor must authorise hospital discharges. The doctor will register all visits to the clinic on a daily basis and send a full set to the administration department at the country head office on a weekly and/or monthly basis. I.2.3.1.1.3
Medical supplies’ procurement
The clinic will be equipped with a pharmacy operated by qualified personnel. The pharmacy will have a stock of medicine and first aid materials. The country company doctor will prepare the original list of supplies. It will be based on previous experience in similar projects (incidents, accidents, and ill health), country and weather conditions, international and national HSE regulations. The original list of medical supplies will be reviewed by the project pharmacist,
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checked by the project doctor and approved by the project manager. The medical supplies should be available when the clinic is built, equipped and operational. The medical supplies are stored in controlled conditions. On a monthly basis, the pharmacist will prepare a stock list (availabilities, shortages and requirements) and submit it to the doctor. The doctor in cooperation with the pharmacist will prepare and submit to the administration department a requisition, well before119 the actual stock of medicine or supplies in the pharmacy is finished or when an epidemic may occur. The administration department is responsible for authorisation of the requisition and forwarding it to the material department for purchase and delivery to the clinic. The doctor is responsible for the preparation and control of all documents (e.g. forms, doctor’s prescriptions etc.) related to the operation of the clinic under his/her control. I.2.3.1.1.4
Hospital visit reports
A hospital admission/discharge report detailing: • • • • • • • • • • • • • • •
Name of patient Name of hospital Address of hospital Legal representative, manager of the hospital Date of admission Notification of the authorities (when required by the law) Diagnosis Treatment Medicine Examinations Tests Date of discharge Hospital discharge report Insurance coverage and Fees paid
will be prepared by the company doctor who follows-up the case and authorises the discharge and reviewed by the administrator in charge at the area of the hospital. I.2.3.1.1.5
Clinic expenses
A specific cost code will be dedicated to the clinic costs in the project accounting system as stipulated in the relevant company management procedure. 119
It mainly depends upon the country conditions (local availability, regulations, permits, etc.) Page 298 of 495
A total sum of expenses will be estimated at tender stage based on the company’s experience thesaurus. The project doctor will check the sum and its detailed supporting list of estimated expenses, when he/she assume duties. This provisional sum will be accepted by the project manager and inserted in the project budget as medical expenses. All relevant details of expenses associated with the operation of the clinic will be charged by the accounts department in this specific cost code. This information will be included in the HSE reports. I.2.3.1.1.6
Medical data, information
The information contained in all forms with personal medical data should be treated as required by: • • •
Legal & regulatory provisions Contractual conditions or Company management systems terms
Reference •
British Medical Association (BSA) “Confidentiality and health records“ https://www.bma.org.uk/advice/employment/ethics/confidentiality-and-healthrecords Privacy policy Terms and conditions Acceptable use terms
I.2.3.1.1.7
Medical reports
Medical reports should be prepared on a monthly and yearly basis. They show the actual (on site) situation and the performance of preventive measures set by the project medical and HSE management teams as far as ill health and accidents, incidents and indicate improvement requirements in the work or living conditions. They form the basis for the respective HSE performance indicators. References (indicative list) •
•
Health and Safety Executive (HSE) UK “Health and safety statistics” http://www.hse.gov.uk/Statistics/ Copyright Health and Safety Executive (HSE) UK “Statistics A - Z” http://www.hse.gov.uk/Statistics/a-z.htm
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Copyright Monthly reports •
•
The doctor or the administrator (if there is no doctor) shall, in co-operation with the HSE representative, prepare a summary medical report on a monthly basis and send it to the HSE department The report may contain the following information (indicative list): Number of fatalities Number of lost time injuries Number of days lost due to lost time injuries Number of first aid cases Number of medical cases Number of medical admissions to hospitals Number of days lost due to medical cases Number of medical consults Number of road accidents Requirements of personnel Requirements of medical equipment Requirements of medical supplies Legal implications (if any) Proposals for the improvement of medical provision Monthly costs (prepared by the accounts department)
Yearly reports •
•
•
•
The doctor, the HSE representative and the administrator will process all relevant information and prepare a medical report for all the sites, offices, camps of the project and submit it to the project management every year. This yearly report will analyse in depth the causes and the costs of all the medical cases that occurred in the period and propose indicators, methods, means, processes for the improvement of the occupational health and safety of the workers. The report will be submitted to the project management as and when specified in the project HSE management plan. All health reports will be sent to the country management for their information and necessary action, as appropriate.
References (indicative list) •
•
Health and Safety Executive (HSE) UK “Occupational health standards in the construction industry” http://www.hse.gov.uk/research/rrpdf/rr584.pdf © Crown copyright 2007 Health and Safety Executive (HSE) UK
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•
“Occupational health risk management in construction” http://www.hse.gov.uk/aboutus/meetings/iacs/coniac/coniac-oh-guidance.pdf © Crown copyright 2007 Health and Safety Executive (HSE) UK “Managing construction health risks” http://www.hse.gov.uk/construction/healthrisks/ Copyright
I.2.3.1.2
Workers’ accommodation
There are neither comprehensive international regulations nor universally acceptable good practices relating to workers’ accommodation. As living conditions affect directly the work output of each worker, the company should develop its own standards for workers’ accommodation based on: • • • • • • • • • • • • • •
Applicable labour legislation, regulations Applicable housing legislation, regulations Applicable HSE legislation, regulations Applicable security legislation, regulations Applicable civil code Applicable codes & standards Client’s requirements Company’s management systems Company’s experience thesaurus Project size Establishments costs Mobilisation - demobilisation schedules and costs Local conditions, and Weather conditions
In general, construction camps’ facilities are not permanent structures as in most cases they should be removed, upon completion and final handing over of the project, and the area should be restated. They usually consist of modular sets of precast, prefabricated or mobile units. All units should be connected to telephone, power, water and sewage networks. All units should be fully equipped, maintained and serviced. In all cases, the requirements of applicable national building and construction regulations and national or international building codes, the contract conditions and the company’s management systems should be met. The project administration department should appoint a camp manager and a camp service unit who will be responsible for the day-by-day running activities in all accommodation units (fresh water supplies, hygiene, services, cleaning, security, etc.).
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A project specific work instruction, on “camps’ running and management”, should be prepared by the camp manager, the project doctor, the project security officer, and the project fire warden, checked by the administration manager, reviewed by the HSE manager and approved by the site manager. The internal “camp running and living regulations” as well as “evacuation drills”, “fire drills”, “emergency exits, signage and muster points”, “quarantine processes and clearance”, “health and safety precautions” and “security measures” should be parts of induction and regular training courses for all individuals who are accommodated in the project camp(s). Exit and entry to accommodation units should be electronically monitored. References (indicative list) •
•
•
•
•
International Labour Organization (ILO) “ILO R115 - Workers' Housing Recommendation, 1961 (No. 115)” http://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_IL O_CODE:R115 © Copyright and permissions 1996-2016 International Labour Organization (ILO) International Finance Corporation (IFC) European Bank for Reconstruction and Development and International Finance Corporation (EBRD) “Workers’ accommodation: processes and standards - A guidance note by IFC and the EBRD” http://www.ebrd.com/downloads/about/sustainability/Workers_accomodation.pdf © European Bank for Reconstruction and Development and International Finance Corporation, 2009 Government UK “Building regulations” https://www.gov.uk/topic/planning-development/building-regulations © Crown copyright Health and Safety Executive (HSE) UK “Managing health and safety in construction Construction (Design and Management) Regulations 2015 Guidance on Regulations” http://www.hse.gov.uk/pubns/priced/l153.pdf © Crown copyright 2015 INTERNATIONAL CODE COUNCIL “International Codes” http://shop.iccsafe.org/codes.html Legal
I.2.3.1.3
Messing facilities
Food preparation, processing, storing and handling must be carried out in a hygienic manner. A food safety assessment must be carried out to identify the control measures
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necessary to reduce any risks to hygiene. The following guidelines should be strictly respected in food premises: • •
•
•
• •
•
•
• • •
They must be kept clean, well-maintained, in good repair and condition Their layout, design and construction must Permit adequate cleaning and/or disinfection Protect against the accumulation of dirt, contact with toxic materials, shedding of particles into food and condensation, mould Permit good food hygiene practices, e.g. protection against cross contamination by foodstuffs, materials, etc. They must have an adequate number of washbasins for hand cleaning, and flush toilets (not leading into the rooms where food is processed). Washbasins for hand cleaning must be provided with hot and cold running water, cleaning materials and hand drying devices. Moreover, hand-washing facilities must be separate from food washing facilities They must have suitable and sufficient natural or mechanical ventilation. In particular, there should not be mechanical airflow from a contaminated area to a clean area. Ventilation filters should be readily accessible for maintenance, replacement purposes Sanitary conveniences must be provided with adequate natural and mechanical ventilation They must have adequate natural and artificial lighting Drainage facilities should be such as to avoid risk of contamination of foodstuffs They must have adequate changing facilities
I.2.3.1.3.1
Rooms for preparation, treatment and processing of food
Floor surfaces must be maintained in sound condition, be easy to clean, disinfect, and allow adequate surface drainage. Wall surfaces must be maintained in sound condition, be easy to clean and disinfect. Ceilings, overhang fixtures must prevent dirt accumulation, growth of moulds and particle shedding. Windows must prevent dirt accumulation and be fitted with insect proof screens (if opening into the environment) and be easily removable for cleaning. If open windows would result in contamination of foodstuffs, windows must remain closed during production. Doors must be easy to clean and disinfect. Surfaces in contact with food must be maintained and be easy to clean and disinfect. Adequate facilities must be provided for cleaning, disinfecting work-tools and equipment, including crockery and cutlery used in the mess.
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Adequate provision must be made for washing food. Sinks must have an adequate supply of hot and cold potable water and be kept clean. I.2.3.1.3.2
Food waste
Food waste should be diminished as much as possible. Food waste/refuse must not accumulate in the food rooms. Food waste must be deposited in closable containers. There must be adequate removal, storage facilities for food waste, refuse. Refuse stores must be kept clean, protected against invasion of pests and risk of contamination of food, drinking water and equipment. I.2.3.1.3.3
Personal hygiene
It is compalsury by law that all those working in food handling areas must be medically examined regularly as required by health legislation and regulations. A person suffering from a disease transmissible through food will not be allowed to work in a food handling area. All those working in the food production chain should comply with all hygiene regulations and have a high standard of personal cleanliness, wearing suitable clean and, where necessary, protective clothing. I.2.3.1.3.4
Food temperature control
In general, certain foods, such as meat, fish, eggs and cheese, must be kept at a temperature of 6ÂşC or below. It is essential, therefore, that refrigerators are kept in good working order, that a thermometer is kept in each refrigerator and that daily checks of temperatures are carried out. It should be noted that a refrigerator temperature some two degrees lower than that specified will be needed to combat door openings. 63ÂşC is the specified minimum temperature that hot food may be kept. I.2.3.1.3.5
Users of the mess
All companyâ&#x20AC;&#x2122;s personnel as well as any others using the mess are expected to comply with all hygiene regulations. Entry to the kitchen area is not allowed to anyone, apart from the cook and those
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working in the mess, unless permission is granted by the administrator. Smoking in the kitchen and the dining room is not permitted. I.2.3.1.3.6
Inspections of mess hygiene
At least once a month, the doctor, medical provider or other person authorised by the company must carry out an inspection of all kitchens and dining rooms existing in the site, camp, fill the appropriate form, which should afterwards be forwarded to: • • • •
The site manager (for information and action, as required) The site administrator (for any action, as required) The cook (for any action, as required) The HSE representative (for information and action, as required)
References (indicative list) •
•
•
•
Food Standards Agency (FSA) UK “Food hygiene for businesses” https://www.food.gov.uk/business-industry/food-hygiene © Crown Copyright Food Standards Agency (FSA) UK “HACCP (Hazard Analysis and Critical Control Point)” https://www.food.gov.uk/business-industry/food-hygiene/haccp © Crown Copyright International Organization for Standardization (ISO) “ISO 22000 - Food safety management” http://www.iso.org/iso/home/standards/management-standards/iso22000.htm © All Rights Reserved. International Organization for Standardization (ISO) “ISO/TS 22002-2:2013(en) Prerequisite programmes on food safety — Part 2: Catering” https://www.iso.org/obp/ui/#iso:std:iso:ts:22002:-2:ed-1:v1:en © 2013 ISO — All rights reserved
I.2.3.1.4
Workplaces
Common workplaces in an engineering construction project: • • •
•
Offices Construction sites Workshops Carpentry Electrical Painting Plant maintenance and repairs Precast yard Steel reinforcement Welding Stores
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•
•
•
• •
Materials Spare parts Fuel and lubricants Laboratories Civil Electrical, Instrumentation Mechanical Production units Concrete plant Asphalt plant Crushers Quarries Borrow pits Water wells Transportation parking and control areas Equipment parking yard Vehicles parking yard Guard houses Security control points Waste disposal areas
The working environment plays a major role in the production of services of an acceptable -if not high- standard. A safe and healthy construction site is required by law. A well-organized construction site will increase the efficiency of the work force, lower the costs of the project and minimize the risk of accidents and incidents. References (indicative list) •
•
•
•
•
Legislation Government UK “The Construction (Design and Management) Regulations 2015” http://www.legislation.gov.uk/uksi/2015/51/contents/made © Crown copyright Legislation Government UK “Construction (Design and Management) Regulations 2015 Part 4 - General requirements for all construction sites” http://www.legislation.gov.uk/uksi/2015/51/part/4/made © Crown copyright Legislation Government UK “Health and safety in the construction industry” http://www.hse.gov.uk/construction/index.htm Copyright Health and Safety Executive (HSE) UK “Safety topics” http://www.hse.gov.uk/construction/safetytopics/index.htm Copyright Health and Safety Executive (HSE) UK
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“Construction health risks: Key points” http://www.hse.gov.uk/construction/healthrisks/key-points.htm Copyright I.2.3.1.5
Offices
Project office buildings are strictly working places and should be designed, constructed, secured, administered, run and considered as such. The engineering construction projects are highly demanding, always in alarming operational conditions, with strict deadlines, constant high communication needs and teams of individuals spending long hours working, as a rule. The project offices should be a friendly and attractive place to work: • • • • • • • • • • •
Accessible Convenient Equipped Functional Hygienic Luminous Quiet Safe Secure Smart Spacious
Separate, fully operational, safe and secure office units should be constructed for the contractor, its subcontractors, the client and visiting parties. The contractor’s units are very busy workplaces, with lots of activities going on simultaneously, day and night, if the project functions 24/7. In this respect, it is proposed that: • •
• •
•
•
Each department is accommodated in a separate section or unit The manager’s office is spacious enough to accommodate the daily progress meetings All task owners should have their own closed office The construction teams (managers, superintendents, engineers and supervisors) get complete and serviced office units at the sites of works The services’ teams (camps, plant garage, service bays, laboratories and workshops) get proper offices at the respective workplaces The production units’ teams (quarries, borrow pits, concrete and asphalt plants) get proper offices at the respective workplaces
Open offices are noisy, unhealthy and low productivity areas. Prefabricated modules, easy to assemble, join and connect to networks, should be preferred. This way mobilisation (and demobilisation) is completed without delay and
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its costs are as low as possible. These modules, though they require higher initial investment, may be used repeatedly, if maintained properly. Offices’ security is of paramount importance for business success. Entrance to the offices should be allowed under strict company security protocols, with central electronic control only. Entrance to the computer servers’ section should be permitted to company authorised IT officers only. Visitors should be electronically registered, monitored, escorted and remain in designated areas. Project offices are not social meetings’ halls. References (indicative list) •
•
•
National Institute of Building Sciences (NIBS) Whole Building Design Guide (WBDG) “Office building” https://www.wbdg.org/design/office.php © 2016 National Institute of Building Sciences. All rights reserved. Federal Trade Commission (FTC) “Start with Security: A Guide for Business” https://www.ftc.gov/tips-advice/business-center/guidance/start-security-guidebusiness Privacy Policy Federal Trade Commission (FTC) “Careful Connections: Building Security in the Internet of Things” https://www.ftc.gov/tips-advice/business-center/guidance/careful-connectionsbuilding-security-internet-things Privacy Policy
I.2.3.1.6
Communication networks
Please see also chapters: • •
A.6 Communication systems A.7 Information systems
To achieve success in construction project management, there needs to be effective communication up, down and across the organization. Establishing efficient (internal and external) communications’ networks at the construction site should be the top priority of the project management team. The networks should comply with the requirements of applicable legislation,
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regulations, national and international codes & standards. Strict security protocols should be applied. The company should spare no effort or means in establishing, securing and operating this valuable asset. A project specific procedure should be prepared that will specify: •
•
•
Communication systems Documents Intranets Internet Visual Intranet Internet Voice Intranet Internet Landlines Mobile Satellite Wireless Users’ hardware Terminals Conference Private Telephones Walkie talkies Users communication protocol Project management team Task owners Department heads Engineers Supervisors Medical HSE Administration Doctor Medical provider First aid provider Emergency Security Logistics Plant
The procedure will be prepared by the company IT department at tender stage. The procedure will be approved by the commercial, technical & controls director.
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The proposal will be handed over to the project manager on or before the contract signature for information. The IT department will handover secured hardware to each one of the project task owners when they assume duties; he/she will sign an acceptance receipt. The IT department will train all users of the project communication networks on their communication hardware and protocols. The users will sign an agreement that will be attached to their job description. Local area networks (LAN) •
At least three independent, local area networks (separate servers & terminals) are proposed to be established for a major or mega project, those being: The project accounting network (please refer to chapter “E.9.1.3 Project accounting computer network”) The project design and procurement network The project management network
•
•
•
•
•
•
•
•
120
The company IT department will prepare a complete proposal -hardware, software, specification and costs- at tender stage based on the company’s previous experience and management systems, the market conditions and legal, regulatory and contractual requirements. The proposal should be approved by the commercial, technical & controls director. The proposal will be handed over to the project manager on or before the contract signature for information. The company IT department will be responsible for the establishment of the local area networks and the training of all authorised personnel on their use. Each network will be dedicated to specific project activities. The networks should be sealed - not connected to each other or any external network- and function off-line120 only. Strict access protocols and data input, process and output specific procedures, should be established for each network by the project IT department. A project specific procedure for the operation of the project local area networks will be prepared by the project IT department, reviewed by the project financial & administration manager and the project technical & controls manager and approved by the project manager.
Refers specifically to an internet connection Page 310 of 495
•
The functioning, performance, security of the project local area networks will be checked, audited by IT certified auditors, every six months, or when operational anomalies are noticed and reported.
Internet •
•
The project management team and all task owners will have access to the internet for project related issues, from specific secure equipment, and through secure channels, for communication purposes, as provided in the project management plan and the project security plan. All personnel will have free access to the internet after working hours.
References (indicative list) •
•
Government UK Legislation “Telecommunications Act 1984” http://www.legislation.gov.uk/ukpga/1984/12/contents © Crown copyright International Organization for Standardization (ISO) ISO ICS “35.110: Networking” http://www.iso.org/iso/iso_catalogue/catalogue_ics/catalogue_ics_browse.htm?I CS1=35&ICS2=110 © All Rights Reserved.
Please also refer to Chapter” A.6 Communication systems”. I.2.3.1.7
Water supply networks
See also chapter “E.11.1.4 Water”. If the site cannot be connected to the domestic water network, then water supply networks, that serve the purpose, should be designed and constructed. Water is required at various locations in a construction project, for drinking, washing or sanitary use or integration in the works. The required quantities of water, for every use, will be estimated and the cost per cubic meter will be calculated at tender stage. The project management team will finalise the estimate and insert the cost of the selected option in the budget. A drinkable water network is not easy to establish, as it requires water purification systems, non-contaminated closed networks, high-standards of materials and storage tanks, and continuous checking and control of the quality of the water. These requirements might not be easy to meet but the high costs of bottled water for drinking and cooking purposes often point to this direction only.
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Usual elements of project, site raw water networks are: • • • • • • •
Boreholes Water wells Water sources Water treatment plant Ground water tanks Water towers, and Water distribution networks
Water supply subcontracts will be agreed, prepared, signed and registered as required. The water will be transported to the site(s) by water bowsers from approved boreholes, water wells or other water sources. It will be off-loaded in the ground water tanks, pumped to the water towers and run into the distribution networks by gravity. Specification and capacity of the water networks depend on the project particulars. The design will be prepared as stipulated in chapter “H.3 Mobilisation”. Construction of the water supply network is a top priority. A contingency plan for the water supply should be prepared in due time. Reference •
Wikipedia “Water supply network” https://en.wikipedia.org/wiki/Water_supply_network Privacy policy
I.2.3.1.8
Wastewater networks
If the site facilities cannot be connected to the domestic sewage network, then complete wastewater facilities that serve the purpose should be designed and constructed. A draft management plan for wastewater should be prepared, at tender stage, and incorporated in the general waste management plan. The plan will comply with: • •
Legal, regulatory and contractual requirements The guidelines of the company’s management systems.
The plan will be finalised by the project management team, when the contract is signed.
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It will serve as an input for the design of the project wastewater, sewage networks. The other design inputs are: • • • • • • • • • • • • • • •
Facility (layout, size and conditions) Rain water network Sanitary wastewater network Septic tanks Hazardous (oily) wastewater network Waste characteristics Waste quantities Rain water quantities Treatment plants Evaporation ponts Water treatment sludge Re-use of treated water Transportation of wastewater Waste disposal facilities Availability of options (plant, equipment, materials)
The design of the wastewater networks will be submitted to the client for its approval as soon as practical. The wastewater/sewage networks will be constructed as a top priority. The project HSE manager will be responsible for the supervision of wastewater management activities that will be carried out continuously during mobilisation, construction and pre-commissioning phases. The wastewater management activities will be included in the project “waste management plan”. References (indicative list) •
•
•
World Health Organization (WHO) “Guidelines for the safe use of wastewater, excreta and greywater” http://www.who.int/water_sanitation_health/sanitationwaste/wastewater/wastewater-guidelines/en/ © WHO 2017 European Union European Commission “Urban Waste Water Directive Overview” http://ec.europa.eu/environment/water/water-urbanwaste/index_en.html Legal notice Government UK “Waste water treatment in the United Kingdom – 2012 Implementation of the European Union Urban Waste Water Treatment Directive – 91/271/EEC “ https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6
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•
•
•
•
•
9592/pb13811-waste-water-2012.pdf © Crown Copyright 2012 Government UK Department for Communities and Local Government Approved Documents and Building regulation “Statutory guidance Drainage and waste disposal: Approved Document H” https://www.gov.uk/government/publications/drainage-and-waste-disposalapproved-document-h © Crown copyright United States Environmental Protection Agency (EPA) “Construction and Development Effluent Guidelines” https://www.epa.gov/eg/construction-and-development-effluent-guidelines United States Environmental Protection Agency (EPA) “Municipal wastewater” https://www.epa.gov/npdes/municipal-wastewater WASTEWATER COMMITTEE OF THE GREAT LAKES - UPPER MISSISSIPPI RIVER BOARD OF STATE AND PROVINCIAL PUBLIC HEALTH AND ENVIRONMENTAL MANAGERS “RECOMMENDED STANDARDS for WASTEWATER FACILITIES” http://10statesstandards.com/wastewaterstandards.pdf Copyright © 2014 by the Great Lakes - Upper Mississippi River Board of State and Provincial Public Health and Environmental Managers NSF International “Wastewater Standards and Protocols” http://www.nsf.org/services/by-type/standards-publications/water-wastewaterstandards/wastewater-standards © 2017 NSF International. All rights reserved.
I.2.3.1.9
Stormwater discharge network
Stormwater discharges from construction activities can significantly influence water quality. As stormwater flows over a construction site, it can pick up pollutants like sediment, debris, and chemicals and transport them to nearby storm sewer systems or directly into rivers, lakes, or coastal waters. National regulations on stormwater may require permits for discharges from construction activities. Construction stormwater permits include effluent limits for erosion and sediment control, pollution prevention and site stabilization. Construction contractors are required to: • • •
Implement erosion and sediment controls Stabilize soils Manage dewatering activities
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• • • •
Implement pollution prevention measures Provide and maintain buffers around surface waters Prohibit certain discharges, such as motor fuel and concrete washout Utilize surface outlets for discharges from basins and impoundments
A draft management plan for stormwater discharges should be prepared, at tender stage, and incorporated in the general water waste management plan. The plan will comply with: • •
Legal, regulatory and contractual requirements The guidelines of the company’s management systems.
The plan will be finalised by the project management team, when the contract is signed. It will serve as an input for the design of the project wastewater networks. References (indicative list) •
United States Environmental Protection Agency “Stormwater Discharges from Construction Activities-2017 CGP” https://www.epa.gov/npdes/stormwater-discharges-construction-activities-2017cgp Privacy and Security
I.2.3.1.10
Electric power network
A preliminary study of the electric power requirements and its sources will be prepared at tender stage, after a relevant, thorough, site investigation is conducted. The study will take into consideration the following elements: • • • • •
• •
•
• •
• •
Prevailing legislation, regulations Contract conditions Local conditions Weather conditions Estimated electrical energy requirements of every area, site, unit, for the duration of the project Estimated hourly, daily power demand curves and peaks Availability of local electrical energy transmission systems that satisfy the requirements of the project for electric energy Available technical solutions already implemented by the company in similar projects in the country Ready-made power generation modules available with the company Availability of personnel, plant, equipment and materials for the design and construction of a reliable electrical power network Associated costs Time factor
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The study will be handed over to the project manager on or before the contract signature. The project technical team will finalise the design of the electric power network. They will propose the option they consider most appropriate (infrastructure, substations, transformers, loads, networks, costs and availability of personnel, materials, plant and equipment) for the needs of the project. Stand-alone power generation and distribution systems are valuable assets and require high investment, running, repairs and maintenance costs. The use of independent units, modules that are easily transported, mobilised, connected, run, serviced, demobilised and re-used in other projects, should be opted. Back-up sources (stand-by generators) will be proposed, at all different locations, for cases of network overloads or failures (contingency plan, risk assessment). The design will be checked by the project design manager, reviewed by the project technical & controls manager, the project quality manager, the project HSE manager and the site manager, and approved by the project manager, in a joint session. The site manager will coordinate all activities (licences, supply contracts, site investigation and preparation, design, procurement and construction) related to the establishment of an appropriate and reliable electrical power network. The associated costs will be incorporated in the project budget, controlled constantly and reviewed monthly. A team of qualified and certified engineers and technicians will supervise the electrical power provision process. They will construct, service, maintain and control the system in such a manner that the project activities will never fall short of electrical power. The project electrical department (technical, quality and construction engineers) will prepare a project specific work instruction, on project electric power supply, that complies with legal and regulatory requirements, contract and project conditions and the company management system. The work instruction will be reviewed by the project technical & controls, construction, HSE and quality managers, checked by the site manager and approved by the project manager. The electrical manager will be responsible for the implementation of this work instruction. References (indicative list) â&#x20AC;˘
Government UK Department for Communities and Local Government
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•
•
•
•
•
Approved Documents and Building regulation “Statutory guidance Electrical safety: Approved Document P” https://www.gov.uk/government/publications/electrical-safety-approveddocument-p © Crown copyright Institute of Electrical and Electronics Engineers (IEEE) “2017 National Electrical Safety Code(R) and Handbook Set” IEEE standard http://www.techstreet.com/ieee/standards/2017-national-electrical-safety-coder-and-handbook-set?product_id=1914983#jumps ISBN(s): 9781504419956, 9781504419949 Copyright 2017 IEEE-SA Abdelhay A. Sallam, Om P. Malik “Electric Distribution Systems” http://eu.wiley.com/WileyCDA/WileyTitle/productCd-0470276827.html ISBN: 978-0-470-27682-2 Thomas Allen Short “Electric power distribution handbook” https://www.crcpress.com/Electric-Power-Distribution-Handbook-SecondEdition/Short/p/book/9781466598652 ISBN 9781466598652 - CAT# K20901 © 2017 CRC Press, Taylor & Francis Group, an Informa Group company. International Energy Agency (IEA) Dennis Volk “Electricity Networks: Infrastructure and Operations” https://www.iea.org/publications/insights/insightpublications/ElectricityNetworks 2013_FINAL.pdf © OECD/IEA, 2013 International Electrotechnical Commission (IEC) “White Paper Strategic asset management of power networks” http://www.iec.ch/whitepaper/powernetworks/ Copyright © IEC 2017. All rights reserved
I.2.3.1.11
Recreational facilities
All personnel have the right to enjoy rest and leisure, after working hours. The design department should prepare, at tender stage, a preliminary study on the recreational facilities that will be established at the projects camps based on company’s experience from previous similar projects. The study will propose standard layout drawings and specification. Usual types of recreational facilities: • • •
Satellite TV rooms Indoor play rooms Indoor training rooms
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•
Open sports courts, etc.
The type and extend of the facilities will depend on: • • • • • • •
Applicable legal, regulatory and contractual requirements The nationalities of the personnel to be accommodated The estimated numbers per nationality and religious group The social habits and festivities of each group of people The country social conditions, habits and festivities The local conditions The weather conditions
The study will be handed over to the project manager on or before the contract signature. The study will be finalised by the project mobilisation team, reviewed by the site manager and approved by the project manager. The associated costs will be incorporated in the project budget. A project specific work instruction, on the designation and use of the various recreational facilities, that satisfies the requirements of the company management system and the conditions of the project, should be prepared and implemented. The work instruction will be prepared by the administration manager, reviewed by the technical, the quality and the HSE managers, checked by the site manager and approved by the project manager. The administration manager will be responsible for the implementation of this work instruction. Reference •
UNITED NATIONS “Universal Declaration of Human Rights” “Article 24” http://www.un.org/en/universal-declaration-human-rights/index.html Copyright
I.2.3.1.12
Parking areas
Movement of vehicles and equipment to and from the various workplaces is a major and costly concern. All these hundreds of expensive assets should be parked properly upon their return, in designated and appropriate parking areas. The design department should prepare, at tender stage, a preliminary study on the parking areas that will be established at the projects offices and camps based on company’s experience from previous similar projects.
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The study will propose standard layout drawings and specification. The type (shaded or open), size, plane and location of the parking areas will depend on: • • • • • • • • • • • • • • •
Applicable legal, regulatory and contractual requirements Contractor’s applicable work procedure Project transportation regulations Project traffic control regulations Transportation network (paved or unpaved roads) Parking areas’ surfaces Personnel transportation arrangements & agreements Number and size of vehicles Number and size of equipment Local conditions Weather conditions Safety Security Emergencies Costs
The study will be handed over to the project manager on or before the contract signature. The study will be finalised by the project mobilisation team and approved by the site manager. The associated costs will be incorporated in the project budget. A project specific work instruction, on the designation and use of the various parking areas, that satisfies the requirements of the company management system and the conditions of the project, should be prepared and implemented. The work instruction will be prepared by the administration manager, reviewed by all department managers, checked by the site manager and approved by the project manager. The administration manager will be responsible for the implementation of this work instruction. References •
•
Planning Service (DOE) Supplementary Planning Guidance “Parking Standards” http://www.planningni.gov.uk/index/policy/supplementary_guidance/spg_other/p arking.htm © Crown copyright U.S. Department of Justice (DOJ)
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Americans with Disabilities Act (ADA) “Accessible Parking” http://adata.org/factsheet/parking I.2.3.1.13
Muster points
A muster point (or emergency assembly point) is a designated place or an area where all employees (client, contractor and subcontractors) or visitors assemble in case of an emergency in any of the project workplaces or sites. Muster points should be established near every workplace. Appropriate signage (indoors and outdoors) and alarm (visual and acoustic) instruments (flashing red lights, green signs and alarm sirens) should notify and direct everybody to the nearest muster point, in cases of an emergency or a drill. Training courses will introduce the evacuation process, signage, instruments, exits, routes and muster points to the workers, at each workplace. All visitors will be informed on the evacuation process upon arrival. Evacuation drills will be performed regularly with or without warning. A project specific work instruction, on the designation and use of the various muster points, in emergency, evacuation situations, that satisfies: • • •
Legal, regulatory and contractual requirements The requirements of the company management system The conditions of the project
should be prepared, attached to the “emergency plan” and implemented. The work instruction will be prepared by the administration manager, reviewed by all department managers, checked by the site manager and approved by the project manager. The administration manager will be responsible for the implementation of this work instruction. References (indicative list) •
•
US Department of Labor Occupational Safety and Health Administration “Evacuation Plans and Procedures eTool” https://www.osha.gov/SLTC/etools/evacuation/evac.html International Organization for Standardization (ISO) ISO Central Secretariat “The international language of ISO graphical symbols” ISBN 978-92-67-10605-2 http://www.iso.org/iso/graphical-symbols_booklet.pdf
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© ISO, 2013-01/3000. All rights reserved I.2.3.1.14
Project workshops
Typical site workshops in a construction project could be (as required): • • • • • •
Carpentry Electrical Plant maintenance & repairs Precast Steel reinforcement Welding
The project workshops might be designed and established as independent production units or as satellite units of the existing in the country respective main company workshops. Project workshops might function as production and/or maintenance units. Their type and size depends on the project particulars. Project specific design for each one of them, based on company standard drawings and specification, should be prepared by the technical department, reviewed by the construction or the plant managers, checked by the quality and HSE managers and approved by the site and the project managers. The mobilisation team should plan their construction as a top priority. The associated costs will be incorporated in the project budget. Project specific work instructions for the project workshops’ operations should be prepared by the discipline superintendents, reviewed by the construction, plant, quality and HSE managers (as applicable), checked by the site manager and approved by the project manager. Each workshop will operate under the control of the relevant discipline manager, superintendent or engineer. I.2.3.1.14.1
Carpentry workshop
Carpentry workshops produce and maintain wooden fixtures and fittings as part or support items of construction projects. Usual occupations121 in a construction site carpentry workshop: 121
Construction Industry Training Board (CITB) Go Construct “Construction jobs” https://www.goconstruct.org/construction-jobs/ © 2017 CITB Page 321 of 495
• •
•
• •
Carpenters prepare and install any part of a building that is made of wood. Joiners work with wood to create staircases, windows and doors, furniture, kitchens, cupboards and interior woodwork. Wood machinists are responsible for translating drawings into components by using machinery to process the timber accurately and efficiently. Kitchen fitters install whole kitchens into workplaces. Formworkers make temporary structures out of wood or metal for use in moulding concrete.
Carpentry requires training as specified in applicable legislation and regulations in many countries around the world. By law, in the UK, all workers must receive training and supervision that is appropriate to the equipment they will be using. Carpentry workshops are hazardous workplaces. Types of woodworking and carpentry hazards include: • • • • • • • • • •
Chemicals Dust Electrocution Explosion Fire Flying materials Machine hazards Noise Tool projection Vibration
A fully equipped and properly operated carpentry workshop may prove to be of great assistance to production, construction, maintenance and administration activities. The mobilisation team will prepare a complete design (drawings, specification, equipment, materials, construction man-hours, costs etc.) of the project carpentry workshop, assisted by the country main carpentry workshop supervisor and the country design office. The design will be based on project requirements for woodworking activities, applicable legislation and regulations, contract conditions and company’s management systems. The design should also designate disposal areas and practices for carpentry waste. The carpentry workshop area should be fenced and secured. If the costs for the establishment and running of a project carpentry workshop are outside the project estimated costs or there is no time to waste until the workshop is up and running, then other alternatives will be examined, such as:
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•
The country’s main carpentry workshop will undertake this workload, or
•
Outsource the woodworking activities to qualified local subcontractor(s)
The design will be reviewed by the construction, quality and HSE managers, checked by the site manager and approved by the project manager. The associated costs for the establishment and running of a carpentry workshop will be incorporated in the project budget and controlled. A relevant project specific work instruction for the establishment and running of a carpentry workshop that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project civil works superintendent, reviewed by the project construction, HSE and quality managers, checked by the site manager and approved by the project manager. The project civil works superintendent will be responsible operations/activities that take place in the carpentry workshop.
for
all
the
References (indicative list) •
•
•
•
Legislation Government UK Statutory Instruments 1998 No. 2306 HEALTH AND SAFETY “The Provision and Use of Work Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2306/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Safe use of woodworking machinery Provision and Use of Work Equipment Regulations 1998 (as applied to woodworking machinery). Approved Code of Practice and guidance” http://www.hse.gov.uk/pubns/books/l114.htm Copyright Health and Safety Executive (HSE) UK “Health and safety in the woodworking industry” http://www.hse.gov.uk/woodworking/index.htm Copyright International Organization for Standardization (ISO) “ICS 79: Wood technology” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=79 © All Rights Reserved.
I.2.3.1.14.2
Electrical workshop
A fully equipped and properly operated electrical workshop is necessary to be
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established and run in a construction site for the duration of the project (mobilisation, construction, pre-commissioning, maintenance and demobilisation periods). Electrical workshops are hazardous workplaces. Typical electrical hazards are: • • • • •
Electrical burns Electric shock Electrocution Explosion Fire
The law requires all electricians to be educated, trained, qualified, certified and licensed. Besides production and construction activities, the electrical workshop personnel maintain and service all electrical equipment. The law requires electrical equipment to be maintained to prevent danger. The type and frequency of user checks, inspections and testing needed will depend on the equipment, the environment in which it is used and the results of previous checks. Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for site electrical workshops will be utilised. The project mobilisation team will plan and implement the construction of operational electrical workshops. The electrical workshop area should be fenced and secured. Electrical & electronics waste should be disposed as specified. The associated costs will be incorporated in the project budget and controlled. A relevant project specific work instruction for the establishment & running of an electrical workshop that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project electrical superintendent, reviewed by the project construction, HSE and quality managers, checked by the site manager and approved by the project manager. The project electrical superintendent will be responsible operations/activities that take place in the electrical workshop. References (indicative list) •
Legislation Government UK
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for
all
the
•
•
•
•
Statutory Instruments 1989 No. 635 HEALTH AND SAFETY “The Electricity at Work Regulations 1989” http://www.legislation.gov.uk/uksi/1989/635/contents/made © Crown copyright Health and Safety Executive (HSE) UK “The Electricity at Work Regulations 1989 Guidance on Regulations” http://www.hse.gov.uk/pubns/books/hsr25.htm Copyright Health and Safety Executive (HSE) UK “Electrical safety at work” http://www.hse.gov.uk/electricity/index.htm Copyright Health and Safety Executive (HSE) UK “Electrical standards and approved codes of practice” http://www.hse.gov.uk/electricity/standards.htm Copyright Health and Safety Executive (HSE) UK “Electricity at work: Safe working practices” http://www.hse.gov.uk/pubns/books/hsg85.htm Copyright
I.2.3.1.14.3
Plant maintenance and repairs workshops
Please refer also to chapters: • • • • • • •
A.9 Plant and equipment A.9.1 Construction plant & equipment A.9.2 Spare parts, tyres, fuels & lubricants A.9.2.1 Spare parts & tyres A.9.2.2 Fuels & lubricants A.9.3 Plant service establishments E.10 Project plant management
Fully equipped and properly operated site plant maintenance and repairs workshops are usually necessary to be established and function in a construction site for the duration of the project (mobilisation, construction, pre-commissioning, maintenance and demobilisation periods). Maintenance and repairs workshops are hazardous areas. Typical hazards are: • • • • •
Electrical burns Electrical shock Explosion (fuel stations) Falls from height Falls of heavy items
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• • • • • •
Fire Hazardous substances Heavy lifts Movement of heavy equipment Noise Slips and trips
Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for site plant maintenance and repairs workshops will be utilised. The project mobilisation team will plan and implement the construction of operational plant maintenance and repairs workshops, as a top priority. The plant workshops area should be fenced and secured. Plant waste disposal areas should be designated and constructed. The associated costs will be incorporated in the project budget and controlled. A relevant project specific work instruction for the establishment and running of the plant maintenance & repairs workshops that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project plant manager, reviewed by the project HSE manager, checked by the site manager and approved by the project manager. The project plant manager will be responsible for all the operations/activities that take place in the plant maintenance and repairs workshops. References (indicative list) •
•
•
Legislation Government UK Statutory Instruments 1998 No. 2306 HEALTH AND SAFETY “The Provision and Use of Work Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2306/contents/made © Crown copyright Legislation Government UK Statutory Instruments 1998 No. 2307 HEALTH AND SAFETY “The Lifting Operations and Lifting Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2307/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Safe use of lifting equipment Lifting Operations and Lifting Equipment Regulations 1998 Approved Code of Practice and guidance” http://www.hse.gov.uk/pubns/books/l113.htm
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Copyright I.2.3.1.14.4
Precast yard(s)
To produce structures faster, better, and under budget a contractor may opt to use precast concrete elements in most of the projects. In marine works, there is no other way to construct huge concrete blocks or caissons, for the construction of quay walls or concrete armour (tripods, tetrapods etc.), for the construction of breakwaters. The design of a precast casting yard(s) must be carefully studied and executed by the contractor. The choices at start-up affect the overall project quality and cost. The estimating department will prepare a preliminary study for the establishment of precast yard(s) for the production of all the various types of precast elements or check for alternatives that would reduce the cost and time elements, such as the use of qualified and approved subcontractors that operate locally, at tender stage. The project management team will review and approve, modify or reject the study. If the choice is to use subcontractors then the procedure outlined in chapter “E.12 Project subcontracting” will be implemented. If the choice is to establish its own precast yard(s) then the country design and the project mobilisation teams will prepare the detailed design (drawings, specification, equipment, materials, personnel, costs, etc.) of the precast yard(s). Depending on the project particulars and the weather conditions, the precast works may require closed hangars with controlled conditions and/or open areas. The design will be reviewed by the construction, the HSE and the quality managers, checked by the site manager and approved by the project manager. A precast yard is a hazardous workplace. Typical hazards in a precast yard: • • • • • • • • • •
Electric shock Falls from height Falls of heavy items Hazardous substances Heavy lifts Movement of heavy equipment Noise Respirable silica Slips and trips Steam
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•
Vibration
The project mobilisation team will plan and implement the construction of operational, fenced and secured precast yard(s). The associated costs will be incorporated in the project budget. A relevant project specific work instruction for the establishments and operations in precast yards that complies with legal and regulatory requirements, contract and project conditions and the company management systems will be prepared by the project civil works superintendent, reviewed by the project construction, HSE and quality managers, checked by the site manager and approved by the project manager. The project civil works superintendent will be responsible operations/activities that take place in the precast yards.
for
all
the
References (indicative list) •
•
•
Legislation Government UK Statutory Instruments 1998 No. 2306 HEALTH AND SAFETY “The Provision and Use of Work Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2306/contents/made © Crown copyright Legislation Government UK Statutory Instruments 1998 No. 2307 HEALTH AND SAFETY “The Lifting Operations and Lifting Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2307/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Safe use of lifting equipment Lifting Operations and Lifting Equipment Regulations 1998 Approved Code of Practice and guidance” http://www.hse.gov.uk/pubns/books/l113.htm Copyright
I.2.3.1.14.5
Steel reinforcement yard
Steel for the reinforcement of concrete is a common material in the construction industry. National and international standards are dedicated to this material. Steel reinforcement of concrete is stored in designated areas, cut and bent in fully equipped workshops, transported to the site, tied and placed in situ.
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A steel reinforcement yard is a hazardous workplace. Typical hazards in a steel reinforcement yard: • • • • • • • • • •
Electric shock Falls of heavy items Hazardous substances Heavy lifts Machine hazards Manual handling Movement of heavy equipment Noise Slips and trips Tool projection
A preliminary quantity estimate (including potential suppliers, sources) should be prepared at tender stage for costing purposes, based on the preliminary design or historical data of similar projects. The project mobilisation team will finalise the design of a fenced and secured steel reinforcement yard (storage area, working area, equipment, electrical network, waste disposal area, transportation means), plan and execute its establishment. The associated costs will be incorporated in the project budget. A relevant project specific work instruction for the establishment and the operations in steel reinforcement yards that complies with legal and regulatory requirements, contract and project conditions and the company management systems will be prepared by the project civil works superintendent, reviewed by the project construction, HSE and quality managers, checked by the site manager and approved by the project manager. The project civil works superintendent will be responsible operations/activities that take place in the steel reinforcement yards. References (indicative list) •
•
Legislation Government UK Statutory Instruments 1992 No. 2793 HEALTH AND SAFETY “The Manual Handling Operations Regulations 1992” http://www.legislation.gov.uk/uksi/1992/2793/regulation/4/made © Crown copyright Health and Safety Executive (HSE) UK “Manual handling Manual Handling Operations Regulations 1992 Guidance on Regulations” http://www.hse.gov.uk/pubns/books/l23.htm Copyright
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for
all
the
•
•
•
•
•
•
•
•
•
Legislation Government UK Statutory Instruments 1998 No. 2307 HEALTH AND SAFETY “The Lifting Operations and Lifting Equipment Regulations 1998” http://www.legislation.gov.uk/uksi/1998/2307/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Safe use of lifting equipment Lifting Operations and Lifting Equipment Regulations 1998 Approved Code of Practice and guidance” http://www.hse.gov.uk/pubns/books/l113.htm Copyright Health and Safety Executive (HSE) UK “Safety in the storage and handling of steel and other metal stock“ http://www.hse.gov.uk/pubns/books/hsg246.htm Copyright Health and Safety Executive (HSE) UK “Health and safety in engineering workshops” http://www.hse.gov.uk/pubns/books/hsg129.htm © Crown copyright 1999 International Organization for Standardization (ISO) ISO 16020:2005(en) “Steel for the reinforcement and pre-stressing of concrete - Vocabulary” https://www.iso.org/obp/ui/#iso:std:iso:16020:ed-1:v1:en © All Rights Reserved. International Organization for Standardization (ISO) “ICS 77.140.15: Steels for reinforcement of concrete” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=77&ICS2=140&ICS3=15 ISO © All Rights Reserved. Privacy and copyright American Concrete Institute (ACI) "ACI 318-14 Building Code Requirements for Structural Concrete and Commentary" ISBN 978-0-87031-930-3 (2014) https://www.concrete.org/store/productdetail.aspx?ItemID=31814 Copyright ASTM International “Concrete steel reinforcement” (search) https://www.astm.org/search/fullsitesearch.html?query=concrete%20steel%20reinforcement&resStart=0&resLength =10&tax0=materials& Copyright © 1996 - 2017 ASTM. All Rights Reserved. British Standards Institution (BSI) “BS EN 13670:2009 Execution of concrete structures“ http://shop.bsigroup.com/ProductDetail/?pid=000000000030332071 © British Standards Institution 2017
I.2.3.1.14.6
Welding workshop
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A fully equipped and properly operated welding workshop is necessary to be established and run in a construction site for the duration of the project (mobilisation, construction, pre-commissioning, maintenance and demobilisation periods). Welding workshops are hazardous workplaces. References •
•
•
Health and Safety Executive (HSE) UK “Health topics in welding” http://www.hse.gov.uk/welding/health-topics.htm Copyright “Illness caused by welding fume and gases” http://www.hse.gov.uk/welding/illness.htm “Welding fume facts” http://www.hse.gov.uk/welding/fume-facts.htm “Welding fume - Reducing the risk“ http://www.hse.gov.uk/welding/fume-welding.htm “Welding fume - Do you need extraction or RPE?” http://www.hse.gov.uk/welding/fume-extraction-rpe.htm “Hearing loss and vibration white finger” http://www.hse.gov.uk/welding/noise-vibration.htm “Manual handling” http://www.hse.gov.uk/welding/handling.htm Health and Safety Executive (HSE) UK “Safety topics in welding” http://www.hse.gov.uk/welding/safety-topics.htm Copyright “Fire and explosion“ http://www.hse.gov.uk/welding/fire-explosion.htm “Lack of oxygen in confined spaces“ http://www.hse.gov.uk/welding/confined-spaces.htm “Electrical hazards” http://www.hse.gov.uk/welding/electrocution.htm “Slips and trips” http://www.hse.gov.uk/welding/slips.htm Health and Safety Executive (HSE) UK “COSHH essentials for welding, hot work and allied processes” http://www.hse.gov.uk/pubns/guidance/wlseries.htm Copyright “WL0 - Advice for managers” http://www.hse.gov.uk/pubns/guidance/wl0.pdf “WL1 - Workshop ventilation” http://www.hse.gov.uk/pubns/guidance/wl1.pdf “WL2 - Forced ventilation” http://www.hse.gov.uk/pubns/guidance/wl2.pdf “WL3 - Fixed extraction: Welding booth or downdraught bench” http://www.hse.gov.uk/pubns/guidance/wl3.pdf
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“WL4 - Moveable extraction: Fume hood on a flexible arm” http://www.hse.gov.uk/pubns/guidance/wl4.pdf “WL5 - Respiratory protective equipment (RPE)” http://www.hse.gov.uk/pubns/guidance/wl5.pdf “WL6 - RPE used with forced ventilation” http://www.hse.gov.uk/pubns/guidance/wl6.pdf “WL7 - RPE used with engineering controls” http://www.hse.gov.uk/pubns/guidance/wl7.pdf “WL8 - Oxy-gas welding and brazing” http://www.hse.gov.uk/pubns/guidance/wl8.pdf “WL9 - Manual metal arc (MMA) or stick welding” http://www.hse.gov.uk/pubns/guidance/wl9.pdf “WL10 - Metal inert gas (MIG) and metal active gas (MAG) welding” http://www.hse.gov.uk/pubns/guidance/wl10.pdf “WL11 - Tungsten inert gas (TIG) welding” http://www.hse.gov.uk/pubns/guidance/wl11.pdf “WL12 - Flux-cored arc (FCA) and metal-cored arc (MCA) welding” http://www.hse.gov.uk/pubns/guidance/wl12.pdf “WL13 - Resistance (spot) welding: Fixed equipment” http://www.hse.gov.uk/pubns/guidance/wl13.pdf “WL14 - Gas and oxy-gas cutting” http://www.hse.gov.uk/pubns/guidance/wl14.pdf “WL15 - Arc-plasma cutting: Fixed equipment” http://www.hse.gov.uk/pubns/guidance/wl15.pdf “WL16 - Arc-air gouging (aircarbon arc gouging)” http://www.hse.gov.uk/pubns/guidance/wl16.pdf “WL17 - Soldering: Hand-held with lead-based, rosin-cored solders” http://www.hse.gov.uk/pubns/guidance/wl17.pdf “WL18 - Surface preparation: Pressure blasting (small items)” http://www.hse.gov.uk/pubns/guidance/wl18.pdf “WL19 - Surface preparation: Pressure blasting (medium-sized items)” http://www.hse.gov.uk/pubns/guidance/wl19.pdf “WL20 - Surface preparation: Pressure blasting (large items)” http://www.hse.gov.uk/pubns/guidance/wl20.pdf “WL21 - Weld cleaning with pickling paste” http://www.hse.gov.uk/pubns/guidance/wl21.pdf “WL22 - Expert advice” http://www.hse.gov.uk/pubns/guidance/wl22.pdf The law requires all welders to be educated, trained, qualified, certified and licensed. Besides production and construction activities, the welding workshop personnel are responsible for the appropriate use and service of all welding equipment. The law requires welding equipment to be maintained to prevent danger. The type and frequency of user checks, inspections and testing needed will depend on the equipment, the environment in which it is used and the results of previous checks.
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Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for site welding workshops will be utilised. The project mobilisation team will plan and implement the construction of operational welding workshops. The welding workshop area should be fenced and secured. Welding waste should be disposed as specified. The associated costs will be incorporated in the project budget and controlled. A relevant project specific work instruction for the establishment and operations in a welding workshop that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project mechanical superintendent, reviewed by the project construction, HSE and quality managers, checked by the site manager and approved by the project manager. The project mechanical superintendent will be responsible operations/activities that take place in the welding workshops.
for
all
the
References (indicative list) •
•
•
•
•
•
Health and Safety Executive (HSE) UK “Health and safety in engineering workshops” http://www.hse.gov.uk/pubns/books/hsg129.htm © Crown copyright 1999 Health and Safety Executive (HSE) UK “Welding health and safety” http://www.hse.gov.uk/welding/ Copyright Health and Safety Executive (HSE) UK “Health and safety welding resources” http://www.hse.gov.uk/welding/publications.htm Copyright International Organization for Standardization (ISO) “ISO/TC 44 - Welding and allied processes” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=48602 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 44/SC 9 - Health and safety” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=48642 © All Rights Reserved British Standards Institution (BSI) “BS EN 1011 series - Welding guidelines” http://shop.bsigroup.com/SearchResults/?q=BS%20EN%201011 © British Standards Institution 2017
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•
•
American Welding Society (AWS) “Welding handbook” http://www.aws.org/publications/weldinghandbook © 2017 American Welding Society British Compressed Gases Association (BCGA) “Codes of Practice (CP)” http://www.bcga.co.uk/pages/index.cfm?page_id=19&title=codes_of_practice © British Compressed Gases
I.2.3.1.15
Project storage and warehousing
Storage and warehousing are major logistics’ activities in a construction project. Typical storage facilities are: •
•
Materials storage facilities Bulk materials Camps running materials Hazardous materials Radioactive materials Temperature or humidity sensitive materials Plant department storage facilities Lubricants warehouse Spare parts warehouse Tyres storage warehouse Underground fuel storage tanks
Warehouses are hazardous workplaces. References (indicative list) •
•
•
USA Department of Defense UFC 4-440-01 WAREHOUSES AND STORAGE FACILITIES https://www.wbdg.org/FFC/DOD/UFC/ufc_4_440_01_2014.pdf Any copyrighted material included in this UFC is identified at its point of use Health and Safety Executive (HSE) UK “Warehousing and storage” A guide to health and safety http://www.hse.gov.uk/pubns/books/hsg76.htm © Crown copyright 2007 National Fire Protection Association (NFPA) “NFPA 230: Standard for the Fire Protection of Storage” http://www.nfpa.org/codes-and-standards/all-codes-and-standards/list-of-codesand-standards?mode=code&code=230 © National Fire Protection Association (NFPA) 2016
I.2.3.1.15.1
Materials storage & warehousing
Aggregates, sand, rocks (filters or armour), precast units, bricks, etc. are stored in open but secured designated areas, as required by the project conditions.
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Bulk manufactured materials, not affected by weather conditions (like pipes of large diameters and substantial weight, huge cable reels etc.) are usually stored in levelled (surfaced or un-surfaced), fenced and secured open areas adjacent to the general warehouses. All other construction materials are stored in closed and secured warehouses such as (indicative list): • • • • •
Unheated warehouses Heated warehouses Refrigerated warehouses Controlled humidity warehouses Special-designed warehouses Liquid storage (fuel and nonpropellants) Flammable and combustible storage Radioactive materials storage Hazardous materials storage
The technical department will prepare a preliminary study at tender stage on materials’ warehousing and storage based on the company’s historical data. Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for site materials warehouses and storage facilities, of all different types, will be utilised. The project mobilisation team will plan and implement the design and the construction of operational materials warehouses and storage facilities. All different storage areas and facilities should be fenced and secured. Warehouses’ waste (packaging materials, drums, barrels, containers, boxes, reels, etc.) should be disposed as specified in the relevant work instruction. Standard company procedures on materials’ stores establishment, running & management will be implemented. A relevant project specific work instruction on “storage & warehousing” that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project technical, financial and construction managers, reviewed by the project HSE and quality managers, checked by the site manager and approved by the project manager. The associated costs will be incorporated in the project budget and controlled. The project technical manager will be responsible for all the operations/activities that take place in the materials warehouses and storage facilities. I.2.3.1.15.2
Plant department storage facilities
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Please refer also to chapters: • •
A.9.2 Spare parts, tyres, fuels & lubricants E.10 Project
The plant department will prepare a preliminary study at tender stage on spare parts, tyres, fuels and lubricants storage & warehousing based on the company’s historical data. Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for plant warehouses and storage facilities, of all different types, will be utilised. The project plant manager will plan and implement the design and the construction of operational plant warehouses and storage facilities at the site(s) of works. All different storage areas and facilities should be fenced and secured. Plant waste (used spare parts, tyres and oils, packaging materials, drums, barrels, containers, boxes, reels, etc.) should be disposed as specified in the relevant work instruction. The associated costs will be incorporated in the project budget and controlled. A relevant project specific work instruction on “plant department storage facilities” that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project plant and financial managers, reviewed by the project HSE and quality managers, checked by the site manager and approved by the project manager. Standard company procedures management will be implemented.
on
plant
stores
establishment,
running
&
The project plant manager will be responsible for all the operations/activities that take place in the plant warehouses and storage facilities. I.2.3.1.16
Project quality control laboratories
Laboratory testing (internal or outsourced) is essential daily quality control activity in a construction project. No material, equipment or work item is considered acceptable until the results of relevant tests that are performed by a competent, certified laboratory prove that it meets contractual specifications/requirements. The laboratory quality control engineers/technicians should be educated, trained, certified and experienced. Typical construction materials/equipment and/or works quality control laboratories are:
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• • • • • •
Chemical Civil Electrical Electronics Mechanical Welding
The quality department will prepare a preliminary study at tender stage on project laboratories based on the company’s historical data for similar projects Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for site laboratories, of all different types, will be utilised. The project mobilisation team will plan and implement the design and the construction of operational, safe and secure laboratories. Laboratories are hazardous workplaces. References •
Health and Safety Executive (HSE) UK HSE topics in laboratories (as applicable) “Carriage of dangerous goods” http://www.hse.gov.uk/cdg/index.htm “Electrical hazards” http://www.hse.gov.uk/welding/electrocution.htm “Hazardous materials” http://www.hse.gov.uk/coshh/basics/substance.htm “Manual handling” http://www.hse.gov.uk/msd/index.htm “Noise at work“ http://www.hse.gov.uk/noise/ “Radiation” http://www.hse.gov.uk/radiation/ “Slips and trips” http://www.hse.gov.uk/slips/index.htm
All site laboratories should be secured with strict access and use protocol to be agreed by the client and the contractor. The access should be allowed to authorised personnel -client and contractor- only. Laboratories waste should be disposed as specified in the relevant work instruction. Standard company procedures on site laboratories’ establishment, running & management, as well as collection of samples, transportation, storage, preparation and testing, will be implemented. A relevant project specific work instruction on “quality control laboratories” that
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complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project quality control manager, reviewed by the project HSE and quality managers, checked by the site manager and approved by the project manager. The client may/will approve the work instruction. The associated costs will be incorporated in the project budget and controlled. The project quality control manager will be responsible for all the operations/activities that take place in the site laboratories. Reference •
I.2.4
International Organization for Standardization (ISO) “ISO/IEC 17025:2005 - General requirements for the competence of testing and calibration laboratories” https://www.iso.org/standard/39883.html © All Rights Reserved Production plant establishments
Please refer also to chapters: • • •
A.9 Plant and equipment E.10 Project E.11.2 Project produced materials
Typical pieces of production plant to be erected in a project that contains heavy civil engineering works are: • • •
Crushers Concrete batch plants Asphalt plants
The plant department will prepare a preliminary study at tender stage on the required production plants to be erected at the site of works based on materials’ takeoffs, contract conditions, statutory and regulatory requirements, the company’s management systems and the company’s work methods and historical data of similar projects. The study will compare availability of company equipment, investment requirements, related costs and time factors with the alternative option of procuring the materials from established and approved subcontractors/suppliers, in the vicinity of the project. The plant director will present the study to the executive committee for their approval. If the decision is “self efficiency” and not “procurement” then the plant department will finalise the study, in the period between the tender submission and the receipt of the letter of intent.
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Standard company design (modules, drawings, specification, equipment, materials, personnel, costs, etc.) for production plant establishments and storage facilities, of all different types, will be utilised. The project technical and plant managers will supervise the design and procurement activities of operational plant establishments and storage facilities at the site(s) of works. The erection of production plant units is a major part of the mobilisation process that involves all the members of the mobilisation team and their departments. The site construction manager will be responsible for the proper and timely construction of all the works that are related to the establishment of plant units ready to produce. All required quality checks, calibrations and measurements will be performed by authorised discipline representatives (electrical, mechanical, plant) and witnessed by quality control engineers/technicians. Required certifications will be performed by authorised and certified plant inspectors. No plant will commence production before all its various components/parts are checked and its operations are confirmed to be complying with the contract specification and the manufacturer’s performance manual. Safe use of plant will be verified by authorised HSE officers. Crushers, concrete batch plants and asphalt plants are hazardous workplaces. References •
Health and Safety Executive (HSE) UK HSE topics in production plants (as applicable) “Carriage of dangerous goods” http://www.hse.gov.uk/cdg/index.htm “Electrical hazards“ http://www.hse.gov.uk/welding/electrocution.htm “Falls from height” http://www.hse.gov.uk/work-at-height/index.htm “Falls of heavy items” http://www.hse.gov.uk/safemaintenance/heavy-items.htm “Fire and explosion” http://www.hse.gov.uk/fireandexplosion/ “Hazardous materials” http://www.hse.gov.uk/coshh/basics/substance.htm “Lack of oxygen in confined spaces” http://www.hse.gov.uk/welding/confined-spaces.htm “Manual handling” http://www.hse.gov.uk/msd/index.htm
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“Noise at work” http://www.hse.gov.uk/noise/ “Safe use of lifting equipment” http://www.hse.gov.uk/pubns/books/l113.htm “Silica” http://www.hse.gov.uk/pubns/silicaindex.htm “Slips and trips” http://www.hse.gov.uk/slips/index.htm “Vehicles at work” http://www.hse.gov.uk/workplacetransport/ Plant waste (used spare parts, tyres and oils, packaging materials, drums, barrels, containers, boxes, reels, materials’ leftovers etc.) should be disposed as specified in the relevant work instruction. All different plant areas and facilities should be fenced and secured. The associated costs will be incorporated in the project budget and controlled. A relevant project specific work instruction, for each plant unit, that complies with legal and regulatory requirements, contract and project conditions and the company management system will be prepared by the project plant and construction managers, reviewed by the project HSE and quality managers, checked by the site manager and approved by the project manager. Standard company procedures on plant production units’ establishment, running & management will be implemented. The project plant manager will be responsible for all the operations, activities that take place in the production plant establishments and storage areas. I.2.4.1
Concrete batch plant
The plant mobilisation process, works should comply with the guidelines, instructions of the concrete batch plant “user’s manual”, the approved design, applicable regulations and specification. Targeted, systematic, meticulous, specified and controlled internal inspections should be carried out as soon as the plant is ready to commence operations. The site manager will invite certified plant inspectors to verify that the plant qualifies for certification (as required). References (indicative list) •
United States Environmental Protection Agency (EPA) “AP-42: Compilation of Air Emission Factors” https://www.epa.gov/air-emissions-factors-and-quantification/ap-42-compilationair-emission-factors “Chapter 11.12Concrete Batching”
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•
•
•
•
•
•
•
•
•
•
Final Section - June 2006 (PDF 400K) Equation 11.12-2 was updated and corrected August 2011 Background Document - June 2006 (PDF 1M) Privacy and Security ASTM International “ASTM C94/C94M-16b Standard Specification for Ready-Mixed Concrete” https://www.astm.org/Standards/C94.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved. American Concrete Institute (ACI) “117-10 Specification for Tolerances for Concrete Construction and Materials (ACI 117-10) and Commentary-Reapproved 2015” https://www.concrete.org/store/productdetail.aspx?ItemID=11710 Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “301M-16 Metric Specifications for Structural Concrete” https://www.concrete.org/store/productdetail.aspx?ItemID=301M16 Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “304R-00: Guide for Measuring, Mixing, Transporting, and Placing Concrete (Reapproved 2009)” https://www.concrete.org/store/productdetail.aspx?ItemID=30400&Format=DO WNLOAD Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “SP-002(07): Manual of Concrete Inspection” https://www.concrete.org/store/productdetail.aspx?ItemID=SP22007 Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “311.4R-05: Guide for Concrete Inspection” https://www.concrete.org/store/productdetail.aspx?ItemID=311405&Format=DO WNLOAD Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “311.5-04: Guide for Concrete Plant Inspection and Testing of Ready-Mixed Concrete” https://www.concrete.org/store/productdetail.aspx?ItemID=311504&Format=DO WNLOAD Copyright All material © Copyright 2017, American Concrete Institute American Concrete Institute (ACI) “311.6-09 Specification for Ready Mixed Concrete Testing Services” https://www.concrete.org/store/productdetail.aspx?ItemID=311609 Copyright All material © Copyright 2017, American Concrete Institute Arizona Rock Products Association “Concrete Batch Plant Inspection Guide” http://www.azrockproducts.org/wp-content/uploads/PLANT-CertificationBooklet1.pdf U.S Nuclear Regulatory Commission “NRC INSPECTION MANUAL INSPECTION PROCEDURE 88132 STRUCTURAL CONCRETE ACTIVITIES”
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•
https://www.nrc.gov/docs/ML0605/ML060530186.pdf National Ready Mixed Concrete Association “NRMCA Plant Certification” https://www.nrmca.org/Research_Engineering/Plant_Certification/guidance.htm © National Ready Mixed Concrete Association, 2013
I.2.4.2
Asphalt plant
The major components of an asphalt batch plant are: • • • • • • •
• • •
Plant operating & control system Electrical installation Cold aggregate supply system Drum dryer Filler supply system Bitumen supply system Mixing system Hot aggregate elevator Hot bins Vibrating screen Weighing system Pugmill Dust collector Emission control system Asphalt storage
The plant mobilisation process/works should comply with the guidelines/instructions of the asphalt plant “user’s guide”, the approved design, applicable regulations and specification. Targeted, systematic, meticulous, specified and controlled internal inspections should be carried out as soon as the plant is ready to commence operations. The site manager may invite certified plant inspectors to verify that the plant qualifies for production (as required). References (indicative list) •
•
United States Environmental Protection Agency (EPA) “AP-42: Compilation of Air Emission Factors” https://www.epa.gov/air-emissions-factors-and-quantification/ap-42-compilationair-emission-factors “Chapter 11.1Hot Mix Asphalt Plants“ Final Section (PDF 475K) - Update 2004, April 2004 Background Document (PDF 2M) Related Information Privacy and Security International Organization for Standardization (ISO) “ISO 15642:2003(en) Road construction and maintenance equipment - Asphalt mixing plants -
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•
•
•
•
•
•
Terminology and commercial specifications” This standard was last reviewed and confirmed in 2015 https://www.iso.org/obp/ui/#iso:std:iso:15642:ed-1:v1:en © ISO - All rights reserved International Organization for Standardization (ISO) “ISO 15643:2002(en) Road construction and maintenance equipment - Bituminous binder spreaders/sprayers - Terminology and commercial specifications” https://www.iso.org/obp/ui/#iso:std:iso:15643:ed-1:v1:en © ISO - All rights reserved International Organization for Standardization (ISO) “ISO 15878:2008(en) Road construction and maintenance equipment - Asphalt pavers - Terminology and commercial specifications” This standard was last reviewed and confirmed in 2015 https://www.iso.org/obp/ui/#iso:std:iso:15878:ed-1:v1:en © ISO - All rights reserved Quarries National Joint Advisory Committee (QNJAC) Mineral Products Health & Safety hub “Best Practice - Asphalt/coating plant” http://www.safequarry.com/BestPracticeSearch.aspx MARINI FAYAT GROUP “Products” http://www.marini.fayat.com/en/products/ Parker Plant Limited “Asphalt plants” http://www.parkerplant.com/asphalt Copyright © Parker Plant Limited, 2016 all rights reserved Engineering Policy Guide (EPG) “Asphalt plant inspection 460.3 plant inspection” http://epg.modot.org/index.php?title=460.3_plant_inspection Privacy policy
I.2.4.3
Crushers
Crushed aggregates and sand are major components of both concrete and asphalt, especially with declining availability of natural sand and gravel. Crushers achieve the necessary size reduction, screening and classification to turn quarried rock into aggregates for use in all branches of the construction industry. Rock quarries are the normal home of rock crushers. Material up to about 800 mm blasted from the ground is reduced in size to the correct specification for final use. Aggregates for concrete are usually crushed to 0-20 mm.
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Aggregates for construction must have superior grain shape and particle size distribution. A conventional quarry process may consist of at least three crushing stages. •
• •
A minimum installation beginning with a primary (jaw) crusher to reduce all the material to less than 150-200 mm A secondary (cone) crusher crushes this down to around 40 mm A tertiary (cubitizer) crusher can shape and grade the final product ready for use in concrete or asphalt
Vibrating aggregate grading screens, allowing screening efficiency to be matched closely to production requirements, complete the establishment. There is little doubt that viable natural sand resources in many areas across the world are running out, either because of extinction or sterilisation of reserves, cost of extraction or transportation, or because of environmental concerns. An additional problem in some areas is the shortage of water for processing. Sea sand extraction is banned or the export of sand is prohibited, in various countries, as it was causing damage to the ecosystem. The introduction of an alternative to natural aggregate is a most urgent problem, which must be solved before remaining sand resources are exhausted. “Sand manufacturing plants”122 (crushers and screens) have been introduced by specialised industry manufacturers. Their product compares favourably with natural sand in particle size distribution and shape. The plant mobilisation process/works should comply with the guidelines/instructions of the crushers/screening equipment “user’s guides”, the approved design, applicable regulations and specification. Targeted, systematic, meticulous, specified and controlled internal inspections should be carried out as soon as the establishment is ready to commence operations. The site manager may invite certified plant inspectors to verify that the plant qualifies for production (as required).
122
KEMCO KOTOBUKI ENGINEERING & MANUFACTURING Co., Ltd. http://www.kemco.co.jp/eng/ Copyright (C) 2000-2013 Kotobuki Engineering & Manufacturing Co., Ltd. All Rights Reserved. “AN EFFECTIVE DRY SAND MANUFACTURING PROCESS FROM JAPAN POTENTIAL TO REPLACE NATURAL SAND ENTIRELY IN CONCRETE” Article by Hugo Pettingell ACSM FIQ, for Quarry Management Magazine June 2008 http://www.kemco.co.jp/eng/pdf/kemco_v7.pdf Page 344 of 495
References (indicative list) •
•
•
•
•
•
I.2.5
United States Environmental Protection Agency (EPA) “AP-42: Compilation of Air Emission Factors” https://www.epa.gov/air-emissions-factors-and-quantification/ap-42-compilationair-emission-factors “Chapter 11.19 Introduction to Construction and Aggregate Processing” Final Section - September 1985 (PDF 4K) 11.19.1 Sand & Gravel Processing Final Section - Supplement A, November 1995 (PDF 61K) Background Document (PDF 1.0M) Related Information 11.19.2 Crushed Stone Processing and Pulverized Mineral Processing Final Section - Update 2004, August 2004 (PDF 63K) Related Information to Final Section Background Document (PDF 700K) Privacy and Security International Organization for Standardization (ISO) “ISO 21873-1:2015(en) Building construction machinery and equipment - Mobile crushers - Part 1: Terminology and commercial specifications” https://www.iso.org/obp/ui/#iso:std:iso:21873:-1:ed-2:v1:en © ISO - All rights reserved Health and Safety Executive (HSE) UK “Safe operation and use of mobile jaw crushers” http://www.hse.gov.uk/quarries/crushing.htm Copyright Quarries National Joint Advisory Committee (QNJAC) Mineral Products Health & Safety hub “Best Practice - Asphalt/coating plant” search http://www.safequarry.com/BestPracticeSearch.aspx Parker Plant Limited Crushing & Screening http://www.parkerplant.com/crushing-and-screening Copyright © Parker Plant Limited, 2016 all rights reserved KEMCO Crusher Department http://www.kemco.co.jp/eng/hasai/index.htm Copyright (C) 2000-2013 Kotobuki Engineering & Manufacturing Co. Ltd. All Rights Reserved. Quarries & borrow pits
Please see also chapters: • • •
A.10.1 Natural materials E.11.1.2 Gravel, sand, silt, and clay E.11.1.3 Rocks
Quarrying involves the excavation of rock, gravel or sand from the ground (including
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riverbeds and beaches). Crushed aggregates are typically produced through drilling and blasting from suitable rock deposits, crushing and screening to the desired sizes. Gravels and sand are normally sourced from riverbeds (both current and old) and from beaches. Excavation typically involves machinery, without the need for blasting. Crushing of gravel is usually limited to larger gravels while screening is used to separate out smaller sizes for specific uses. Aggregate products requiring further refinement can often involve additional washing, crushing and screening processes. The uses of rock aggregates range from road preparation and finishing (base and surface) to composite for concrete. Gravel and sand aggregates are similarly used for road and construction products but also have a range of specialty landscaping uses. A quarry for the production of crushed construction materials consists of: • • • • • • • • •
Rock extraction areas Rock dump areas Rock storage areas Crushing, screening, washing and drying plants Stockpiles of crushed products areas Buildings and structures at the quarry Special shelters for explosives Quarry roadways under the control of the contractor Quarry equipment repairs, service, fuelling and parking areas
Quarries are extremely hazardous workplaces. The quarry areas should be secured and the entrance of unescorted visitors should be strictly prohibited. References •
Health and Safety Executive (HSE) UK “Health and safety at quarries. The Quarries Regulations 1999. Approved Code of Practice - Table 1” http://www.hse.gov.uk/pUbns/priced/l118.pdf © Crown copyright Health and Safety at Work Act 1974 Management of Health and Safety at Work Regulations 1999 Provision and Use of Work Equipment Regulations 1998 Control of Substances Hazardous to Health Regulations 2002
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•
Workplace (Health, Safety and Welfare) Regulations 1992 Manual Handling Operations Regulations 1992 Personal Protective Equipment at Work Regulations 1992 Control of Noise at Work Regulations 2005 Confined Spaces Regulations 1997 Lifting Operations and Lifting Equipment Regulations 1998 Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 Control of Vibration at Work Regulations 2005 The Work at Height Regulations 2005 Health and Safety Executive (HSE) UK “Health and safety topics in the quarry industry” http://www.hse.gov.uk/quarries/causes.htm Copyright
Quarrying can generate a number of on-site and off-site environmental effects through the blasting, excavation, crushing, screening, stockpiling and transport of aggregates. The degree and nature of effects caused by quarrying varies according to the type of quarry, the scale of operation, methods used to excavate aggregates, the geology of the area, the receiving environment and the surrounding land uses. The effects of quarries also vary by their nature (rock or sand) and whether they are in short or long-term use, in continuous use or used irregularly or seasonally. The environmental effects of quarrying include: • • • • • • • • • • • • •
Contamination of the water table Discharge of contaminants into air, water, land and the coastal marine area Disturbance of fauna and flora Disturbance of neighbouring communities Disturbance of neighbouring agricultural farms Disturbance of river beds or coastal marine areas Impact on cultural and historic heritage values Impact on the landscape Dust Noise Traffic Vibration Visual effects
The effects of quarrying need to be considered when applying for licenses/permits, developing appropriate objectives, policies and methods in plans to manage quarrying. Although the effects of quarrying can often be mitigated, they cannot always be avoided. Waste (including toxic waste) should be disposed as specified in the relevant work
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instruction. Lease contracts will be signed with the owners (local authorities or individuals) for the use of the area as a quarry or a borrow pit, with terms as stipulated by applicable legislation and fees (if any) as they are agreed between the two parties or are indicated in applicable regulations. Legal licenses/permits for the establishment, operations, demobilisation and reinstatement of each quarry or borrow pit area will be obtained from the relevant authorities, in accordance with applicable legislation/regulations, before the commencement of any activity. The project tender documents should indicate specific areas for quarrying where the licenses/permits are guaranteed and the required procedure for licensing/permiting is itemised or the contractor will suffer unaccounted higher costs, losses and delays, as licenses/permits typically enclose corruption. A relevant project specific work instruction, for each quarry or borrow pit, that complies with legal and regulatory requirements, contract and project conditions as well as the company management system will be prepared by the project plant and construction managers, reviewed by the project HSE and quality managers, checked by the site manager and approved by the project manager. The work instruction should contain specific demobilisation process and activities that would reinstate the landscape and mitigate, if not cure, the effect on the environment, the fauna, the flora and the health, safety and security of the neighbouring communities upon completion of the project. Standard company procedures on quarry production establishment, running & management will be implemented. The associated costs will be incorporated in the project budget and controlled. The project plant and construction managers will be responsible for all the operations/activities that take place in the quarry establishments and storage areas. References (indicative list) •
•
Legislation Government UK Statutory Instruments 1999 No. 2024 HEALTH AND SAFETY “The Quarries Regulations 1999” http://www.legislation.gov.uk/uksi/1999/2024/contents/made © Crown copyright Health and Safety Executive (HSE) UK “Health and safety at quarries. The Quarries Regulations 1999. Approved Code of Practice“ http://www.hse.gov.uk/pubns/books/l118.htm © Crown copyright 2013
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•
•
•
•
I.3
Health and Safety Executive (HSE) UK “Quarries related publications and guidance” http://www.hse.gov.uk/quarries/information.htm Copyright United States Environmental Protection Agency (EPA) “5 Source Categories - Stone Quarrying, Crushing and Screening Facilities (Final Rule) General Permits and Permits by Rule Implementation” https://www.epa.gov/tribal-air/5-source-categories-stone-quarrying-crushingand-screening-facilities-final-rule Privacy and Security Quarries National Joint Advisory Committee (QNJAC) “Mineral Products Health & Safety hub” http://www.safequarry.com/ Quarries National Joint Advisory Committee (QNJAC) Mineral Products Health & Safety hub Best Practice “search” Activity “Production and processing” Site “Quarry” http://www.safequarry.com/BestPracticeSearch.aspx Construction of permanent works
This the most important stage of the project that will prove management commitment and planning efficiency, join all various work elements, construct and deliver the final product, as contracted. I.3.1
Construction start-up
To start any activity of the permanent works (usually setting out and site clearance works are the start-up activities) the following pre-requisites should have been met: •
Fully furnished and equipped establishments are completed and utilised Clinic Offices Dormitories Restaurants Recreation facilities Parking areas Plant Workshop(s) • Repairs • Service Fuel stations Store(s)
•
Complete teams are mobilised (some of them have participated in the construction of the temporary facilities), approved by the client, as required by the contract conditions, and operate in full gear
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Site manager Construction manager Construction superintendents/engineers/supervisors Construction teams Quality control manager Quality control superintendents/engineers/supervisors Laboratory engineers/technicians HSE manager HSE officers Plant engineers/supervisors Plant operators Plant service teams Doctor/first aid providers Administration personnel Accounting personnel Offices personnel Services personnel Security personnel â&#x20AC;˘
Documents, required by the contract conditions, have been prepared, submitted and approved by the client Quality plan HSE plan Waste management plan Construction procedures Quality control documents Inspection & test plans Quality control checklists Quality control records Final design of each work item Bill of quantities Calculations Construction drawings Specification Materials Construction schedule Overall Detailed for each work item
Materials are procured, transported to the site of works, checked, approved, stored and ready for use. Construction equipments are mobilised and ready for use. Quarries and borrow pits are established, as required, checked, approved and produce materials. Production plant(s) are established, checked, approved, certified as required, and
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produce materials. Construction work routines are established: • • •
•
•
•
•
•
• • • •
Work shifts Working hours schedule Work planning, implementing, checking & reviewing Scheduling Operating Controlling Monitoring Costing Appraising Work method statements Training Implementation Work resources Design Work teams Equipment Materials Plant Work quality control Field Laboratories Work progress monitoring & reporting Progress meetings Progress reports Work related HSE training PPE Work induction risk assessments Tool box talk(s) Transportation Communication Information Logistics
Construction monitoring is established: •
Construction progress meetings Client Progress Quality Designer(s) Supplier(s) Subcontractor(s) Internal Progress Quality HSE
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•
Costing Construction reports Client Progress Quality Designer(s) Supplier(s) Subcontractor(s) Internal Progress • Daily • Weekly • Monthly Quality HSE Costing Accounting
I.3.2
Construction management
Outline •
Construction is the part of the project where: Politics Capital Contracts Science Engineering Regulations, codes & specifications Authorities The public Owners Consultants Specialists Experts Lawyers Bankers Managers Superintendents, engineers, supervisors, foremen Quality control officers HSE inspectors Designers Subcontractors Suppliers meet with the ordinary worker/technician who will actually build the project.
•
In that respect, it is essential that the worker/technician receives, on time:
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Correct and simple construction drawings Applicable codes of practice A step-by-step technically sound and safe method statement Appropriate PPE Work, quality and HSE tools box talks Tools and equipment that are essential and will facilitate the work The correct -type, quantity- materials for the activity, and Training, guidance, assistance, support and understanding from his/her supervisor in order to do the job properly. •
•
•
•
•
It is essential, important and a priority that the workplaces are safe and secure. It is also essential that each worker is treated like a human being, operates in safe and properly managed workplaces, is offered suitable living conditions and welfare facilities and is paid a fair compensation for the time and skills he/she invests on the project. Construction is therefore the act, in a live theatrical play, of those who do the job. All the rest are their backstage assistants. All of the above, if put together, define “construction management” in very simple terms. Construction management team Site manager Construction manager Construction discipline superintendents Construction discipline engineers Construction discipline supervisors/foremen
References •
•
•
Health and Safety Executive (HSE) UK “The Construction (Design and Management) Regulations 2015” http://www.hse.gov.uk/construction/cdm/2015/index.htm Copyright Health and Safety Executive (HSE) UK “Managing health and safety in construction” Construction (Design and Management) Regulations 2015. Guidance on Regulations http://www.hse.gov.uk/pubns/books/l153.htm Copyright The Construction Industry Training Board (CITB) “Construction (Design and Management) Regulations 2015: Industry Guidance” http://www.citb.co.uk/health-safety-and-other-topics/health-safety/constructiondesign-and-management-regulations/cdm-guidance-documents/ © The Construction Industry Training Board 2017, known as CITB.
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•
•
Ron Price “Integrated Principles of Construction Management” https://www.youtube.com/watch?v=kfcwK2z9ZO8 Copyright YouTube “Construction management” https://www.youtube.com/results?search_query=construction+management Copyright
I.3.2.1
Construction processes & routines
Outline •
The construction management team should prepare, as a priority, a series of documents such as: A construction management plan Construction procedures Construction method statements Construction work instructions
•
The construction management team should standardize processes, such as: HSE training Who What When Where How Work specific training Who What When Where How Work schedule related daily routines Working hours/shifts/days Transportation to the site Starting time registration Registered break(s) Finishing time registration Transportation from the site Rest hours Welfare
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Work related daily routines Work planning • Materials receiving • Equipment placing • Personnel work assignments Work controls • Walk through • Communicate • Check • Do • Act Work supervision • Materials in place • Equipment production • Workers production Work inspection • Company quality inspector • Client quality inspector Work monitoring • Live site surveillance broadcast to project intranet • Who did what and how • Is there space for improving methods/systems? Work planning notification for the next day • Supervisors • Other departments • Stores • Plant Daily reports Work related risks Resources’ availability risks Quality risks HSE risks Work risks Emergencies I.3.2.2
Construction management plan
Outline •
A construction management plan (CMP) should analyse in detail: Project scope Project tasks Construction methods Applicable regulations, codes & specification Design output Resources
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Construction teams Plant Materials Productivities Schedules Costs with detailed information on how each part of the construction work itself is to be accomplished on time and within budget. •
Proposed contents of a construction plan Scope Reference documents Construction management plan Project scope Project tasks • Design • Procurement • Construction • Production Construction management organization • Construction manager • Construction superintendents • Construction engineers • Task ownerships Construction resources Construction procedures Construction method statements Construction work instructions Construction specification Construction training Construction emergencies Construction risks Construction planning Construction detailed schedule Construction daily routines Construction costing Construction budget Construction control Construction monitoring Construction reporting Quality issues HSE issues Appendices
I.3.2.3
Construction procedures
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A construction procedure should be prepared, reviewed, checked and approved for each construction activity or group of similar activities before its commencement. The procedure should be based on the contract documents and the company’s experience thesaurus. The procedure will be drafted by the discipline engineer/task owner/quality inspector, reviewed by the discipline construction and quality superintendents, checked by the construction manager and approved by the site manager or the project manager. The procedure will be submitted to the client for its approval. The procedure will not contain inter-company confidential information, like productivities, costing and budget elements etc. that are not explicitly required by the contract documents. All construction procedures should have a standard format as indicated in paragraph “E.4.2.3 Project procedures”. Indicative list of construction procedures (alphabetical order): • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Architectural materials receiving & storage Architectural works Asphalt works Cathodic protection commissioning Cathodic protection installation Cathodic protection materials receiving & storage Cathodic protection systems Cathodic protection system testing Ceramic tiles installation Chemical cleaning Civil materials receiving & storage Communication fibre optic cable installation and termination Communication fibre optic cables materials receiving & storage Communication materials receiving Concrete buried surfaces coating application Concrete crack repairs Concrete masonry units Concrete pre-cast elements Concrete production & placing Concrete structures backfilling Concrete structures curing Concrete surfaces painting Concrete surfaces plastering Concrete surfaces repairs Drainage - above ground system - installation Drainage - below ground system - installation Drainage - concrete storm water drainage pipe installation Earthworks Earthworks for buildings
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Electrical cable trays installations Electrical cable trays, fittings & accessories materials receiving & storage Electrical cables installation Electrical conduits, fittings & accessories materials receiving & storage Electrical grounding & bonding systems installation Electrical motor functional testing Electrical pvc conduits & fittings Equipment inspection and close up - Aftercoolers Equipment inspection and close up - Tanks Equipment inspection and close up - Vessels/Drums Equipment receiving & storage Expansion joint sealing Eyewash/safety inspection and functional testing Fabricated tank installation Fabricated tank receiving & storage Gaskets Grouting Heating, ventilation and air conditioning (HVAC) system installation Instrument cable tray installation Instrument cable, local panels and junction boxes installation Instrument calibration Instrument loop check Instruments - field mounted installation Instruments - material/equipment receiving & storage Manual valves inspection and stroking Measuring and test equipment Metal ceiling panels Painting works Painting materials receiving & storage Piping - bolt tightening Piping - coatings Piping - fabrication and installation of FBE coated pipe Piping - fabrication control Piping - field erection Piping - fittings, bolts and studs materials receiving & storage Piping - hot tapping Piping - materials (non- metallic) receiving & storage Piping - materials receiving & storage Piping - metallic piping installation Piping - post weld heat treatment (PWHT) Piping - pressure relief valves Piping - shop fabricated pipe bending Piping - shop fabrication Piping - shop fabrication Piping - steam blowing Piping - thermoplastic - installation & testing Piping - tie-ins Piping - valve testing Piping & pipelines pressure testing Plate material receiving & storage
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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Positive material identification Pressure vessel installation Pressure vessel receiving & storage Pressure vessels, motors, pumps and skid mounted packages storage Resilient tile flooring and base Rock excavation Rotating equipment alignment Rotating equipment and skid mounted packages installation SSD type I chainlink fences and gates SSD type IV chainlink fences and gates Structural steel - base plates Structural steel - bolt tightening Structural steel - erection Structural steel - materials receiving & storage Structural steel - painting Suspended acoustical ceilings Tanks - internal & external coatings TEG storage tank erection Water tanks erection Welding - consumables receiving & storage Welding - general Welding - high carbon equivalent (CE) materials receiving & storage Welding - overlay welding restoration of cladding Welding - plug welding Welding - sockolet gap control and threaded joints Welding - testing - non destructive examinations (NDE) Welding - testing - ultrasonic Welding - weld identification and traceability Welding - weld repairs Welding - welding procedures specifications (WPS)
I.3.2.4
Construction method statements
A method statement may form part of a construction procedure or it may be utilised as a stand-alone document. An indicative method statement for the construction of a reinforced concrete manhole is outlined here below. I.3.2.4.1
Sample construction method statement
Method statement for the construction of a reinforced concrete manhole Table of contents 1. Scope 2. References 2.1. Contract specifications 2.2. Contract drawings 2.3. Company management system documentation
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2.4. Project quality plan 2.5. Project environmental and occupational health & safety plan 2.6. ITP for excavation 2.7. ITP for concrete works 2.8. ITP for backfilling works 3. Description of the method statement 3.1. Hazards 3.2. Means of access 3.3. Description of the works 3.3.1. Excavation 3.3.2. Construct manhole base 3.3.3. Cast manhole walls 3.3.4. Cast manhole roof slab 3.3.5. Remove formwork and clear manhole 3.3.6. External coating 3.3.7. Backfilling 3.3.8. Permits-to-work 3.3.9. Supervision 3.3.10. Workforce details 3.3.11. Health & safety monitoring 3.3.11.1. Plant inspections 3.3.11.2. Hazardous substances 3.3.11.3. Occupational health assessments 3.3.11.4. Personal protective equipment 3.3.11.5. Emergency procedures 3.3.11.6. Environmental controls 3.3.11.7. Safety of the public 3.3.11.8. Public nuisance 4. Forms 5. Records 6. Attachments 6.1. Risk assessments 6.1.1. Environmental 6.1.2. Occupational health & safety 6.2. List below all attachments added to this method statement after its production e.g. material MSDS and other information not available at time of writing 6.3. ITPs 6.3.1. ITP for excavation 6.3.2. ITP for concrete works 6.3.3. ITP for backfilling works 6.4. Training register 1
Scope
This document has been prepared in order to describe the method of constructing a 2m deep reinforced concrete manhole. The method statement has been produced to illustrate a standard company method statement for the purposes of the tender selection process for the â&#x20AC;&#x153;project
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name”. 2
References
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
Contract specifications Contract drawings Company management system documentation Project quality plan Project environmental and occupational health & safety plan ITP for excavation ITP for concrete works ITP for backfilling works
3
Description
3.1 Hazards For details of the hazards identified, refer to risk assessments, attached herewith. 3.2
Means of access
General: Access to the site is controlled at the gate and only construction workers and visitors who have received appropriate induction training will be on site. Local: Access to the local manhole work area will be by ramp initially and as work progresses by ladder to access scaffold. 3.3
Works
3.3.1
Excavation
Outline •
Check for services Examine as built drawings - if there is a possibility of services being present obtain permit to dig and carry out further investigation as required by permit Check for overhead services too
•
•
•
•
Set out excavation Excavate using 360° excavator to required dimensions leaving adequate working room for subsequent operations, including final backfilling Ensure excavation sides are battered to a safe angle and if excavation material is not transported off site ensure that it is deposited at an adequate distance from the edge of the excavation such that a safe working area and access for plant and equipment is left for subsequent operations Excavator will be operated by a trained, qualified and licensed operator only
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•
•
•
•
•
Erect a barrier round the completed excavation and install an access ladder preferably, if space permits, excavate an access ramp Barrier to be constructed of 50 mm scaffold tubing supported on posts of same material driven in to ground Attach red and white warning bunting to aid visibility in poor weather conditions Refer also to the company work instruction “Safety in excavation works” for further details On completion of excavation, the site engineer will/to: inspect and if necessary arrange compaction of any loose material with suitable compaction equipment survey to demonstrate that design level is reached and protect the formation with 50 mm minimum layer of blinding concrete Concrete to be placed by concrete pump Concrete pump will be operated only by trained operator/banksman team Concrete will be screened to level by hand and tamp finished All the above will be recorded on an inspection record as required by the ITP
3.3.2
Construct manhole base
Outline •
•
•
•
•
Check level of blinding concrete and set out manhole base Erect formwork using crane to handle and position units The crane will be properly certified and operator properly certified/trained in accordance with standard company procedures Lifting gear must be properly registered, colour coded and inspected Refer also to company work Instruction “Safe lifting operations” Place steel reinforcement according to the construction issue drawings Ensure that approved reinforcement spacers are used Check for correct type, placement and cover Steel fixers will use appropriate gloves when handling reinforcement Reinforcement will be delivered cut and bent from bar bending yard Install starter bars for walls and kicker formwork Fit protection caps on starter bars where there is any possibility of an accidental fall onto exposed ends Install earthing strip (liaise with electrical engineer/supervisor) Install waterbar according to manufacturer’s instructions Welding of waterbar will be carried out by trained operative using 110V hot air gun powered by small mobile generator Refer to company work instruction “Electrical Safety for Hand-Held Portable Electrical Equipment”
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Fuel for generator must be stored in approved container • Switch off generator before refuelling Refer to company work instruction “Safe storage and dispensing of fuel” •
Final cleaning and pre-concreting checks in accordance with the ITP
•
Ensure that inspection record is signed off before placement of concrete
•
•
•
•
•
•
•
Concrete to be placed by concrete pump Check for overhead services Check placement of pump and access for delivery trucks Inspect every concrete delivery ticket to ensure correct material type Concrete to be tested in accordance with requirements of the ITP (slump, temperature, cubes etc.) Concrete to be compacted concrete vibrator (air driven) Hoses to be checked for air tightness and restrained at compressor before commencing pour Finish to specified level of finish using hand float Commence curing If curing compound is used check that it is approved material and ensure that no curing compound is sprayed on starter bars or kicker construction joints Remove formwork and apply curing to sides of manhole base
3.3.3
Cast manhole walls
Outline •
Oil inside wall formwork and erect it
•
Mark and fix sleeves/box-outs (liaise with mechanical/electrical department)
•
•
Reinforcement Attach concrete spacers to ensure cover maintained Place and fix reinforcement Inspect and sign off reinforcement sign off inspection record in accordance with ITP Formwork Oil and erect outside wall formwork Ensure that formwork is adequately propped and supported (site engineer to confirm) Erect suitable access scaffolding for concrete pour Refer to the company work instruction “Safe use of scaffolding” Carry out final inspection of formwork for stability and cleanliness
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•
Ensure that an inspection record is signed off before placement of concrete
•
Concreting Concrete to be placed by concrete pump Check for overhead services Check placement of pump and access for delivery trucks Concrete to be tested in accordance with requirements of ITP Concrete to be poured in suitable lifts ensuring that concrete is compacted using internal concrete vibrators Remove internal formwork and commence curing as soon as practical Inspect concrete surface and carry out any minor concrete repairs according to approved methods
•
Leave external formwork in place to provide form for roof slab edge and edge protection for workers on roof slab
3.3.4
Cast manhole roof slab
Outline •
Install soffit shutter supports and install soffit shutter
•
Supervisor/engineer to ensure adequate propping
•
Clean starter bars of excess concrete if required
•
Shutter manhole access hole
•
Install roof slab reinforcement ensuring proper concrete spacers used
•
Inspect according to the ITP
•
Ensure inspection record signed off before placement of concrete
•
•
•
•
•
Concrete to be placed by concrete pump Check for overhead services Check placement of pump and access for delivery trucks Concrete to be tested in accordance with requirements of the ITP Take additional cubes if required to remove soffit formwork early Finish concrete to specified level of finish using hand float Commence curing of concrete as soon as practical after the finishing of the concrete Curing by hessian and water
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3.3.5
Remove formwork and clear manhole
Outline •
•
•
•
•
Remove external wall formwork and commence curing as soon as practical Inspect concrete surface and carry out any minor concrete repairs according to approved methods Install temporary edge protection round the manhole edge After concrete has achieved adequate strength (check with the laboratory), remove soffit shutter This operation will require a confined space entry permit and confined space procedures should be followed Permit to be obtained from the HSE officer who will arrange for testing and monitoring of atmosphere After removal of formwork the permanent manhole cover should be fitted, If not available a temporary cover must be fitted and secured in position
3.3.6
External coating
Outline •
•
Check that the concrete surface is sound and clean Apply approved external concrete coating to manhole prior to commencement of backfilling operations
•
Coating will be applied by roller with extendable shaft
•
Workers will be at ground level and no working at height will be necessary
•
Coating will be applied in accordance with manufacturer’s recommendations and inspected as detailed in the ITP
3.3.7
Backfilling
Outline •
Identify backfill material source
•
Check that laboratory test data is available for backfill material
•
Clear area of any rubbish
•
Segregate rubbish into builders waste, plastic containers
•
Backfill in layers and compact with vibratory roller
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•
•
Test in-situ compaction in accordance with the requirements of the relevant ITP On completion of backfilling mark location of entry points for services into manhole and ensure that the temporary cover is secure
3.3.8 •
•
Permits-to-work
Permits to dig will be required for the excavation works Confined space permit will be required for stripping soffit shutter from the manhole
3.3.9 • • • • • • •
Supervision
General supervision Overall site supervision Quality HSE Excavation Manhole construction Backfilling
3.3.10 •
Construction department Site engineer Quality engineer(s) HSE inspector Earthworks supervisor Site supervisors Earthworks supervisor
Workforce details
The following workforce will be used on this work Site engineer Site supervisors Civil Earthworks Electrical Mechanical Surveyor/setting out engineer and chainman Shuttering carpenters Concrete laying operatives General labours Crane operators and banksman/slinger Concrete pump operators and pump attendants Excavator operators Roller operators Laboratory technicians
•
•
All the above personnel will have completed the basic site induction course as a minimum Toolbox talks will be performed by supervisors prior to commencing operations
3.3.11
Health & safety monitoring
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3.3.11.1 •
Plant inspections
Plant inspection and operator training Plant and equipment list: Excavation phase: • Excavator • Lorry or dumper to dispose of excavated material • Vibrating plate compactor Civil construction phase: • System formwork complete with access scaffold for concreting • Crane • Concrete pump • Concrete vibrators 2” air - 2 No • Transit mixers for transporting concrete • Compressor to power air tools ♦ Air operated hand tools - small concrete breaker etc. • Small generator for electric hand tools • Ladders for access Backfilling • 360° excavator with ditching bucket • Vibratory roller • Lorries to deliver backfill material Disconnection/reconnection of services • Not applicable Plant inspection and operator training/assessment will be in accordance with relevant company management system’s work instructions
3.3.11.2 •
•
•
•
Hazardous substances
Formwork release agent MSDS to be obtained from the materials department and attached to this method statement. Avoid contact with skin - wear protective clothing: overalls, gloves Concrete curing compound MSDS to be obtained from the materials department and attached to this method statement Avoid contact with skin, eyes and respiratory system Wear protective clothing: overalls, gloves (and mask if windy) Bituminous paint for underground concrete surface protection MSDS to be obtained from the materials department and attached to this method statement. Avoid contact with skin and eyes Wear protective clothing: overalls, gloves, safety goggles Occupational health assessments
None of the activities covered by this method statement requires health
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surveillance of the operatives. 3.3.11.4 •
Personal protective equipment
All Personnel: Hard hat Safety footwear Hi-visibility vest Overalls Gloves
•
Concrete pump attendant - safety glasses
•
Concrete vibrator operators - safety glasses
•
Operatives working inside the manhole - full body safety harness
3.3.11.5
Emergency procedures
Refer to “Project emergency plan” Ensure that persons entering confined space wear full body harness and that there is a readily available means to hoist them out. 3.3.11.6
Environmental controls
All construction debris to be segregated and disposed off to designated site waste disposal areas Concrete equipment to be washed down and cleaned in designated area with collection sump 3.3.11.7
Safety of the public
Not applicable - Site security prevents access to public 3.3.11.8
Public nuisance
There are no operations liable to create public nuisance 4 Forms 5 Records 6 Attachments 6.1 6.1.1 6.1.2 6.2
Risk assessments Environmental Occupational health & safety List below all attachments added to this method statement after its
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6.3 6.3.1 6.3.2 6.3.3 6.4 I.3.2.5
production e.g. material MSDS and other information not available at time of writing. ITPs ITP for excavation ITP for concrete works ITP for backfilling works Training register Construction planning & control
The construction management team should have selective, specific access to the following parts of the project database(s): • • • • •
Construction teams Construction productivities Construction unit costs Construction detailed schedule Construction budget
The task owners will review and approve all daily work forms -personnel, equipment & materials- per cost code for the activities under their direct control. The task owners should be able to enter input data for the daily activities under their control and see the results of the daily production in productivities, unit costs, schedule and budget outcomes, as soon as possible, if not instantly. The input data will be inserted by the end of each working day in tailor-made entry forms by or through each task owner. The input data will be checked by the, corresponding to the task owner, planning & controls engineer and/or the project quantity surveyor. They should know, trust and assist each other and share quantitative targets & objectives. Any disagreements will be highlighted, in red colour, and finalised with the consent of all parties. A planning & controls engineer may check the databases’ entries of different but specific task owners. The input data will be processed electronically and the output data will be available for the task owners (their tasks only), superintendents/department managers (department’s tasks) and the project management team (all tasks) in their intranet terminals, for their information and necessary action, the next morning. Please refer also to chapters: • •
E.3.3 E.3.4
Project design, procurement & construction teams Construction productivities
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• • • • • • •
E.3.5 E.3.7 E.3.8 I.3.2.6.2 I.3.2.6.3 I.3.2.6.4 I.3.2.6.5
I.3.2.6
Detailed project schedule Project budget Project cost control Construction daily routines Construction works inspection & measurement Construction control indices Construction daily reporting
Construction implementation
Outline • • • • •
Construction training & testing Construction daily routines Construction works inspection & measurement Construction control Construction daily reporting
I.3.2.6.1
Construction training & testing
Construction related professional training is a critical activity for the successful commencement of the construction works. Soon after their arrival at the country or the site of works, and after they have received induction training ( please also see chapter “E.1.7.4 Project personnel – Inductions”), all construction supervisory personnel will receive obligatory essential professional training that will familiarise them with the project and their obligations, as soon as practical, but within and not later than the first two weeks. The training courses will be designed, planned, scheduled and performed by the project management team members under the coordination of the technical & controls manager. The training courses will be target specific depending on the group level of the attendees (discipline superintendents/engineers, supervisors, gang leaders). The training courses will be split into basic and discipline specific. The task owners should succeed in all tailor-made qualification-evident tests at the end of each session. The tests will be selected from the electronic library of interactive company standard tests by the instructor. The results are published automatically at the end of each test. If they fail for the first time, they may repeat the test once more, except for the IQ test, after say a day, so they are given a chance to be prepared better. Second failure may automatically trigger releases or changes of job descriptions &
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terms of contract as the testing process should be one of the prerequisite factors for the successful completion of the contractual trial period for each employee of supervisory level. This way the “work under pressure” standard project construction process/routine is explained, initiated and tested, and the “performance evaluation & control” quantitative indicators/measures are defined, established and understood. It may be important to determine, at this stage, the intelligence quotient (IQ) levels (by internationally acceptable tests in electronic format123) of discipline superintendents and engineers, before the assignment of ownerships. The, same for all, IQ test should be taken once by all, at the same time. This way “communication, cooperation and coordination” efforts may get faster and easier, “work performance” results may be better and “work associated” risks may be reduced. Successful work related training & testing should be a pre-requisite for a task ownership and its consequent agreement and signature. The results of these tests: • • • •
Will be treated as confidential Will be known to the management team for their appropriate action Will be inserted in the employee’s personal confidential file and Will not be published in any media.
Attendees groups, training subjects and instructors are proposed here below. Outline •
Basic project training (tests proposed) Superintendents/engineers Project general (all disciplines - instructor(s) project/site manager - full day) • Company management systems • Contract conditions • Contract specifications • Country regulations • Project specifics • Project management plan • IQ test Construction specifics (all disciplines - instructor construction manager -
123
As a practical example please refer to MENSA Online IQ Test at: https://www.mensa.lu/en/mensa/online-iq-test.html © Mensa Luxembourg 2017 Page 371 of 495
full day) • Project construction plan • Project constructability plan • Project procedures • Project work instructions • Project method statements • Work related practices ♦ Ownership ♦ Planning ♦ Scheduling ♦ Organising ♦ Communicating ♦ Implementing ♦ Controlling ♦ Delivering ♦ Correcting ♦ Measuring ♦ Costing ♦ Budgeting ♦ Reporting • Construction specific test Quality specifics (all disciplines - instructor quality manager - half day) • Quality management system • Project quality plan • Project quality procedures • Quality requirements ♦ Personnel qualifications ♦ Design specification ♦ Materials specification ♦ Work specification ♦ Inspection processes Inspection & test plans Request for inspection Inspection checklists Inspection records Inspection reports • Quality specific test HSE specifics (all disciplines - instructor HSE manager - half day) • HSE management system • Responsibilities for HSE issues • First aid, medical provision • Project HSE plan • Project waste management plan • Project emergency plan • Project evacuation plan 124 • HSE specific test 124
As an example, please refer to CITB training interactive publications at: http://www.citb.co.uk/publications/health-safety-environment-publicationslist/#dvd_roms Page 372 of 495
Technical & controls specifics (all disciplines - instructors technical & controls manager, design manager, procurement manager, quantity surveyor - full day) • Design ♦ Designer(s) ♦ Inputs ♦ Outputs ♦ Controls ♦ Schedule of deliveries ♦ Team • Procurement ♦ Materials Suppliers Specification Quantities Controls Schedule of deliveries Storage Team • Construction ♦ Planning WBS Detailed schedule Cost codes Budget ♦ Controls Monitoring process Foreman’s daily report Data processing Daily Weekly Monthly Reporting Progress vs. schedule • Daily • Weekly • Monthly Costs • Overall • Task • Cost code • Work item • Work elements Budget control ♦ Monthly valuations Daily approved quantities’ entries Weekly review & corrections Monthly review & initialling © The Construction Industry Training Board 2017, known as CITB. Page 373 of 495
IT facilities ♦ Hardware & software Communications Data processing Storing Reporting ♦ Intranets Inputs Outputs Access authorisations • Technical & controls test Plant specifics (all disciplines - instructor plant manager - half day) • Plant facilities • Equipment ♦ Productivities ♦ Service requirements ♦ Requesting ♦ Releasing ♦ Monitoring ♦ Charges Working time Idle time Reports per cost centre Reports per task • Quarries • Production units ♦ Requesting ♦ Monitoring ♦ Reporting Working time Idle time Quantities per cost centre Quantities per task ♦ Charges Reports per cost centre Reports per task • Light vehicles ♦ Assignments ♦ Company rules ♦ Charges • Plant test Financial specifics (all disciplines - instructor financial manager - half day) • Guarantees • Insurances • Accounting ♦ Direct costs ♦ Indirect costs ♦ Overheads • Invoicing • Profit & loss account •
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• •
•
Financial monitoring & reporting processes Financial test
Engineering discipline training Discipline engineers (instructor discipline superintendent - group planning) Scope of works • Design • Procurement • Construction ♦ Description of activities ♦ Cost codes ♦ Contract specification ♦ Codes of practice Project construction procedures • Drafting • Reviewing • Checking • Submitting for approval • Approving or rejecting • Revising in case rejection • Implementing Schedules • Design • Procurement • Construction ♦ Task specific Very detailed down to the inspection of completed works items approval of RFI, IC and IR - prepared by the project planning engineer, reviewed and accepted by the task owner engineer and approved by the discipline superintendent • Pre-commissioning Implementation • Daily routines ♦ Management issues ♦ HSE issues Tool box talks Regular weekly HSE training ♦ Quality issues ♦ Technical & controls issues ♦ Plant issues ♦ Financial issues ♦ Administrative issues ♦ Construction issues Planning Requesting Instructing Communicating Informing Acting
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Receiving Correcting Handing over Pre-commissioning • Inspection process ♦ RFI ♦ Inspection IC IR ♦ Approval or rejection ♦ Report Controls • Progress vs. schedule • Costing • Measurements • Budget • Lessons learned Monitoring & reporting • Daily • Weekly • Monthly Discipline supervisors, gang leaders training (instructor discipline engineer constantly - daily, weekly or as required) Scope of works • Activities • Quantities • Cost codes • Drawings • Specification • Code of practice Resources • Materials • Equipment • Tools Method statement Productivities Implementation • Daily routines ♦ HSE training (as required) ♦ Planning ♦ Requesting ♦ Instructing ♦ Communicating ♦ Informing ♦ Acting ♦ Correcting • Inspection process ♦ RFI ♦ Inspection
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IC IR ♦ Approval or rejection ♦ Report Controls • Progress vs. schedule Monitoring & reporting • Daily • Weekly I.3.2.6.2
Construction daily routines
It should be considered essential to standardise construction daily routines with appropriate work and break intervals for all. This way, time losses, productivity reduction and work associated health & safety risks are eliminated or minimised. Typical daily routines for all construction personnel are indicated here below based on a five hour maximum continuous work periods with a short tea/coffee break in the middle of the work period. A basic assumption is that the camp(s) where the workers are accommodated and live after working hours is at a five-minutes-drive distance from the workplaces. For those working at quarries, borrow pits, remote sites or production units the travel times -to and from the camps- should be altered accordingly and basic facilities should be provided for the workers lunch breakes at the site. For internal communications, a wireless radio system is recommended with one channel for general use and different channels for each engineering discipline or production unit. Outline •
Work calendar (assumption single shift - for double shifts alter accordingly) Daily schedule (construction personnel) 07:00 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to 19:00 work Working days Five (5) or six (6) -usually- days a week Holidays Country official holidays
•
Worker’s (technicians & labourers - all trades) daily routine 06:45 to 06:50 Travels from the camp to the site equipped with appropriate PPE
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06:50 to 07:00 Registers entry at the site electronically Collects his/her tools Assumes duties at the workplace 07:01 to 07:05 Receives a tool-box talk (as required) 07:05 to 09:15 work 09:15 to 09:30 tea/coffee break 09:30 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to 16:15 work 16:15 to 16:30 tea/coffee break 16:30 to 18:45 work 18:45 to 19:00125 Hands over tools Reports daily production Reports any problems Reports any work deficiencies Reports any HSE hazards (noise, dust, heat, radiation from adjacent activities, open trenches, equipment movements etc.) that require attention and corrective measures Receives instructions for next day’s schedule [workplace(s), activities, productivities and production target(s)] Requests whatever he/she needs for next day’s work 19:00 Registers exit 19:05 Travels from the site to the camp 19:10 Arrives at the camp •
Gang leader’s (all trades) daily routine 06:45 Travels from the camp to the site equipped with appropriate PPE 06:50 to 06:55 Registers entry at the site electronically Registers absences for those members of the team(s), under his/her control, that have not been registered, asks their colleagues for their whereabouts, informs the supervisor accordingly and asks for replacements 06:55 Supervises the collection of tools by the workers of his/her team 07:00 to 09:15 work Checks the workers’ PPE, identifies HSE risks at the workplace and performs tool-box talks (as required) Checks the workplace for materials adequacy for the anticipated daily production Checks the workplace for equipment availability Checks the workplace for HSE & security issues
125
Lesson learned This part of the daily routine is the basis of a simple and very efficient work management method Page 378 of 495
Takes appropriate action so that the team has materials, tools and equipment as required for the day Gets replacements for those absent, assigns duties to them and registers their starting time Assists company and client quality control inspectors for planned inspections Supervises proper housekeeping activities and the collection, disposal of construction waste Deals with abnormal situations like emergencies, drills, evacuations, HSE accidents, incidents, spills, dangerous waste etc. as specified by approved plans & procedures. Communicates with the supervisor at any time & for any reason 09:15 to 09:30 tea/coffee break 09:30 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to 16:15 work 16:15 to 16:30 tea/coffee break 16:30 to 18:45 work 18:45 to 19:00 Secures or hands over the workers tools Reports daily production to the supervisor/foreman Receives instructions for next day’s workplace and activities Passes the information for next day’s workplace and activities to the workers under his/her control 19:00 Registers exit 19:05 Travels from the site to the camp 19:10 Arrives at the camp •
Supervisor’s (all construction disciplines, trades) daily routine 06:45 Travels from the camp to the site equipped with appropriate PPE 06:50 to 07:00 Registers entry at the site electronically Checks the daily program of all the teams under his/her control Checks the availability of resources Communicates with the supervising engineer for any information and/or additional instructions 07:00 to 09:15 work Walks around the site where teams under his/her control operate Cooperates with the gang leaders Checks sites, works and resources Notices any deficits or defects and takes appropriate action Communicates with the clinic for sick workers under his/her control Meets with the supervising engineer • Reports works, site status • Requests additional resources to cover deficits • Receives the processed previous day’s reports production, schedule and costs results
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Takes appropriate action, as required • Visits or communicates with the stores for stored materials delivery status (if delays are noticed or for additional requirements) • Visits or communicates with the transportation office for equipment performance issues and/or produced materials delivery status (if delays are noticed or for additional requirements) Assists company and client quality control inspectors for planned inspections Deals with abnormal situations like emergencies, drills, evacuation plans, HSE accidents, incidents, spills, waste etc. as specified by approved plans & procedures. 09:15 to 09:30 tea/coffee break 09:30 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to 16:15 work 16:15 to 16:30 tea/coffee break 16:30 to 18:45 work 18:45 to 19:00 Meets with all gang leaders • Receives daily construction reports of each team • Discusses and notes problems • Discusses corrective actions • Discusses preventive actions • Discusses requirements for personnel, materials & equipment • Gives instructions for next day’s workplace and activities 19:00 to … Prepares daily reports for all the teams, activities and cost centres under his/her control Visits or communicates with the stores for materials delivery requirements for the next day Visits or communicates with the production department or the transportation office for produced materials (base courses, concrete, asphalt, etc.) requirements for the next day Visits or communicates with the transportation office for equipment requirements for the next day Visits or communicates with the relevant workshops for spool pieces, fabricated materials etc. Visits or communicates with the clinic and obtains information about the work team members under his/her control who are sick Meets with the supervising engineer and the other supervisors under the same management in a daily coordination meeting • Submits daily reports (working, idle time, utilisation of resources, individuals’ productivities, problems encountered, etc.) and discusses daily production per cost centre • Reports problems, deficits & defects • Discusses corrective actions • Discusses preventive actions • Discusses requirements for personnel, materials & equipment
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Receives instructions for any changes in next day’s workplaces and activities Registers exit from the site of works (after a long day) •
•
•
•
•
Construction support departments - plant, production, stores & transportation twelve (12) hours/day Daily routine 06:00 to 12:00 work (starting one hour earlier) 12:00 to 14:00 lunch/rest break 14:00 to 20:00 work (finishing one hour later) Working days Five (5) or six (6) -usually- days a week Holidays Country official holidays Restaurants - cooks, waiters, cleaners - twelve (12) (or more) hours/day Daily routine 05:00 to 08:00 breakfast 10:00 to 15:00 lunch 17:00 to 21:00 dinner Working days Seven (7) days a week Holidays None Offices - ten (10) hours/day Daily routine 07:00 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to 19:00 work Working days Five (5) or six (6) -usually- days a week Holidays Country official holidays Management team, department managers, superintendents, engineers Daily routine 06:00 to 12:00 work 12:00 to 14:00 lunch/rest break 14:00 to … Working days Six (6) or seven (7) -usually- days a week Holidays Country official holidays (?)
I.3.2.6.3
Construction works inspection & measurement
The task owner/construction engineer issues a request for inspection (RFI) when a measurable, identifiable part of the works has been completed and is ready for inspection.
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Supporting documents are attached to the RFI, as required by the contract documents. The calculations of the quantity of the works are prepared by the task owner and checked by the project quantity surveyor for compliance with international, national or contract specific measurement methods that are acceptable to the client. The RFI is handed over to the quality department for registration and further processing. Inspection and relevant testing are performed as specified in the contract conditions, international & national codes of practice and the approved, relevant, project construction procedure. The RFI is considered closed-out when all the inspection process steps, inspection checklists as well as the site and laboratory tests have been performed with acceptable results126. A controlled copy of the approved (closed-out), complete with attachments, RFI is handed over to the project quantity surveyor at the end of each working day by the responsible task owner/engineer. The quantity surveyor enters the data (work code, cost code and quantity) in the project database and publishes a controlled report/receipt for the task owner. This method -in its simplicity- has proven to be the most efficient way in producing a correct and properly presentable valuation of a re-measurable contract, even with thousands of items in the bill of quantities, literally, on the first day of every next month. I.3.2.6.4
Construction control indices
Quantitative and not qualitative control of the construction processes should be introduced to each cost code of each construction activity meaning, in simple terms, that numbers should do the talking. Such numbers per cost centre, for specific time periods or cumulative and for specific produced and approved work items, might be: • • • •
126
Progress [(scheduled vs. produced), (quantities)] RFI (issued, approved) Productivity [(estimated vs. produced), (quantity/man-hours)] Direct costs (estimated vs. charged for the quantity in assessment) Personnel Equipment Materials
For example, “concrete compression” tests are acceptable after successful cubes or cylinders testing in three (3) or seven (7) or even twenty-eight (28) days Page 382 of 495
• •
Transportation Inspection Other Income Profit or loss
These numbers should be available for each task owner, the discipline superintendents and the project management team, anytime, for constant corrective action, as required. A proposed deviation of +/- 2% (i.e. 98% to 102%) of the target figures, for any specific period, for any of these indices, might be a strict goal to achieve but also a valuable guide for corrective action(s). These deviations will be highlighted in red colour in the construction reports for the period. Higher deviations -for any specific cost centre- that may continue for a maximum period of one month despite agreed corrective actions usually ring a bell that either planning or implementation work methods and/or systems are wrong. In that case, it is proposed that, the construction management team, the project quantity surveyor and the task owner should re-assess the production process -from scratch- for the specific cost centre and agree on revised productivity and costs base figures. The budget entries for the cost centre will be revised accordingly when the budget will be revised. Similar indices may be introduced for any task, section or part of the project, besides construction. I.3.2.6.5
Construction daily reporting
For project reports, please see also: • • • •
E.3.9 I.4.1.1.1 I.4.1.2.2.1 I.4.1.3.1
Project progress reports Project daily progress reports Project weekly report Project monthly report
Construction daily reports Supervisor’s daily report (per work item, cost centre - a basic construction progress report - to be handed over to the task owner, engineer) •
Personnel (for each one) Working hours Idle hours Incentive hours
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•
•
•
• •
Produced quantity Equipment (for each one) Working time Idle time Service, fuelling time Produced quantity Materials (inserted in the works) Manufactured materials Produced materials Production (total daily quantities) Inspected, approved and handed over Completed, pending approval Notes, remarks Requirements for the next day Personnel Equipment Materials
Engineer’s daily report (to be handed over to the discipline superintendent and the construction manager - data of approved RFI to be inserted in the system) •
• • • • •
I.4
Previous day’s production control numbers review Progress scheduled (quantity) Progress achieved (quantity) Number of RFI approvals Number of RFI rejections Productivity per team Costs Profit or loss Supervisor’s reports Approved RFI in the system RFI for the next day to the quality department Proposed corrective actions Requirements for the next day Material requisitions Plant requests Personnel requests Project technical & controls management
The technical & controls department plays a key role in planning, costing, checking and recording, reporting the status/progress of all the activities in the engineering, design, procurement and construction stages of a project. I.4.1
Project progress meetings, reports
Needless to underline the importance of these meetings. People should be encouraged and trained to talk openly to each other and share experiences, requests and agonies.
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That way, risks may be minimized and better results might be expected. Outline •
•
•
•
•
•
•
•
Internal project progress meetings will take place on a daily, weekly and monthly basis. Meetings with the country or the company management will take place on a monthly, quarterly or yearly basis. Meetings with the client will take place as and when stipulated in the contract documents. Meetings with the designer(s) will take place on a weekly basis or as required. Meetings with the suppliers will take place as and when specified by the purchase order or as required. Meetings with the subcontractors will take place on a daily, weekly and monthly basis. Factual, clear, quantitative, precise, detailed but simple reports should monitor all the day-by-day activities of a project. The technical department should prepare tailor-made input and output reporting formats for all departments and sections of the project based on the company’s procedures. The input forms should be easy to understand and fill. The outcome reports should be produced automatically.
•
•
The reports will form the thesaurus of the company’s experience, adding knowledge, improving performance and increasing the value of the company. They will structure a main part -home made- of the library of the company.
I.4.1.1
Project daily progress meetings
Outline •
•
•
•
Daily meetings are difficult but necessary. Mistakes can be corrected; coordination of requirements for the next day will be scheduled. Site personnel are tired and stressed. Automation systems (card readers etc.) or the project intranet or even timekeepers should be used to ease their recording-paper workload.
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•
The records should be easy to fill and all should be trained and assisted by their supervisors.
•
The meetings should last a few minutes only.
•
All need rest.
Process •
•
Each department will meet at the end of every working day, for as long as it is required. Proposed participants: Department manager, Department engineers, officers, task owners.
•
The daily production will be reported and monitored.
•
The program of the next day will be agreed.
•
Corrective action will be taken for all setbacks.
•
The daily reports will be processed as appropriate.
•
The next day’s requirements will be communicated to those responsible, for their appropriate action, and feedback will be received. Different sections will, most certainly, require the same piece of equipment (say a crane) or product (say concrete) for the next day. Each task owner will prepare a request (job item, location, estimated time, quantity etc.) and send it to the transportation officer (for the crane), or the production officer (for the concrete) who will collect all such requests and prepare work schedules (place, time) for the utilization of each crane that will be used (as more than one may be required) or the placing of concrete and inform the task owners accordingly. This way has proven to be a proper method to satisfy common requirements.
•
The project management may attend any of these meetings or even call for a combined meeting, if required.
I.4.1.1.1
Project daily progress reports
Outline •
The daily activities of each company employee, section, unit or office should be monitored, charged to the correct cost centre and conveyed to the appropriate departments for further processing and publishing,
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•
•
•
•
Processed daily reports -production, cost control, schedules, deliveries, shortcomings and areas of concern etc.- will be available for every supervisor at the end of the day for information and necessary action. A top sheet of the project daily reports, with all the areas of concern highlighted, will be available for the project management the next morning in their local terminals. Emergencies require immediate attention and action as specified in the relevant company procedures. Examples of routine daily reporting at a construction site are given here below.
Construction •
•
•
•
•
•
•
Daily reports -personnel time cards included, if an appropriate electronic working time monitoring system is not in place- are prepared by each site supervisor at the end of each working day and presented to the responsible site engineer. The site engineer will review these reports in an open meeting with all the site supervisors who report to him/her and will take corrective action as appropriate. The site engineers present the daily reports to the construction manager and send them to the technical office for processing. The technical office publishes the processed daily reports, including cost control information, at the end of each working day, in the site intranet with a notification to all concerned. In an advanced intranet environment, the site engineers will fill the forms of the daily input data and the reports will be processed and distributed automatically. Corrective action may be taken by the site manager, if required, with the prior knowledge/consent of the responsible site engineer. See also chapter “I.3.2.6.5 Construction daily reporting”.
Quality •
•
•
Daily reports are prepared by each quality inspector at the end of each working day and presented to the discipline quality supervisor. Discipline quality supervisors present all daily quality reports to the quality manager in a meeting by the end of the day. If the issuance of an NCR is proposed then the quality manager will discuss the issue with the site manager and corrective action will be agreed before/if the NCR is issued.
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•
•
The quality department publishes the processed daily reports, at the end of each working day, in the site intranet with a notification to all concerned. Corrective action may be taken by the quality manager, if required, with the prior knowledge/consent of the site or the project manager.
HSE •
•
•
•
Daily reports are prepared by each HSE inspector and the site medical providers at the end of each working day and presented to the HSE manager. If the issuance of an NCR is proposed then the HSE manager will discuss the issue with the site manager and corrective action will be agreed before/if the NCR is issued. The HSE department publishes the processed daily reports, at the end of each working day, in the site intranet with a notification to all concerned. Corrective action may be taken by the HSE manager, if required, with the prior knowledge, consent of the site or the project manager.
Materials •
Daily reports on stores running are prepared by the storekeeper at the end of each working day, presented to the site manager and published in the site intranet with a notification to all concerned.
Plant •
Daily reports on plant & equipment are prepared by the plant engineer at the end of each working day, presented to the site manager and published in the site intranet with a notification to all concerned.
Administration •
Daily reports on personnel, camps, messes, utilities, services are prepared by the site administrator at the end of each working day, presented to the administration manager and the site manager and published in the site intranet with a notification to all concerned.
Correspondence •
The correspondence is registered by the secretariat, presented to the project manager for his/her instructions, and published in the site intranet with a notification to all concerned for their action or info. Deadlines are highlighted.
I.4.1.2
Project weekly progress meetings
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Weekly meetings should be planned and implemented as the basic progress evaluation, checking and control process, at all levels, for all sections and parts of the project. I.4.1.2.1
Department weekly progress meeting
Outline •
•
Each department will meet at the end of the week and discuss, in detail, all issues related to their scope of services. Subjects: Weekly progress (achieved versus scheduled) for each task (including design, procurement, subcontracting) Schedule for next week Setbacks Lessons learned Recommended corrective actions Risks Emergencies Requirements Weekly reports (for each section, function, discipline, operation or even activity of each department)127
•
•
•
•
•
•
Progress, in approved weekly summary production figures only, for each task, will be acceptable. Weekly deviation allowance of +/- 2% (produced/planned = 98 to 102%) is recommended. This method has proven to be very effective in achieving targets, training and evaluating personnel, at all levels and disciplines. The weekly reports are prepared by the responsible task owners as input data for the weekly progress meeting and finalized during the course of the meeting. The combined weekly report of the department will be finalized. The report will be presented and explained by the department manager at the project weekly progress meeting. Please see also chapter “I.3.2.6.4 Construction control indices”.
I.4.1.2.2
Project weekly progress meeting
Outline
127
As an example of different weekly reports published by the same department, please refer to chapter “I.5.8.1 Weekly quality reports”. Page 389 of 495
•
•
•
This is the basic coordination meeting for the project. The complete spectrum of issues related to the project will be presented and discussed. Proposed participants: Project manager Site manager Construction manager Technical & controls manager Plant manager Quality manager HSE manager Financial & administration manager
•
•
The weekly report of each department will be presented and discussed. The weekly progress will be checked against the approved schedule and budget.
•
Allowances/deviations of max 2% (plus or minus) are acceptable.
•
Corrective action will be taken for all setbacks.
•
The work program of the coming week will be agreed.
•
•
The, controlled and classified, minutes of these meetings, and the attached weekly reports, will be compiled, published and distributed as per company procedures. The agenda of this meeting coincides with the table of contents of the project weekly report
I.4.1.2.2.1
Project weekly report
Table of contents Correspondence • • • • • • • • • •
Authorities Client Public Other interested parties Designers Suppliers Subcontractors Services providers Head office Internal
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Accounts • • • • •
Cash flow Expenses Invoices Setbacks Requirements
Administration • • • • • • • • • •
Customer satisfaction Security Personnel Camps Messes Utilities Security Services Setbacks Requirements
Construction • •
• • • • • • •
Customer satisfaction Weekly production Sites Workshops Production units Problems Waste Corrective actions Weekly progress vs. scheduled Program for next week Setbacks Requirements Personnel Plant Materials Other
Technical & controls • • • • • • •
Customer satisfaction Design issues Procurement issues Cost control Weekly progress Setbacks Detailed program for every section for next month
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• • •
Measurements Valuations Requirements
Quality • •
• • • •
Customer satisfaction Quality control Design Materials Subcontractors Works NCR Audits Setbacks Requirements
HSE • • • • • • • •
Customer satisfaction HSE issues NCR Clinic Drills Audits Setbacks Requirements
Materials • • • • • • •
Arrivals Rejections Consumption Scheduled arrivals Stores Setbacks Requirements
Plant • • • • • • •
Utilization Charges Repairs Service Spare parts Setbacks Requirements
I.4.1.3
Project monthly progress meetings
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Outline •
•
Monthly project meetings should be scheduled well in advance so that everyone is prepared for a productive meeting. Proposed participants: Project manager Site manager Construction manager Technical & controls manager Plant manager Quality manager HSE manager Financial & administration manager
•
The monthly progress reports of all the departments will be presented and discussed.
•
Corrective action will be taken for all setbacks.
•
The course of action for the next three months will be decided.
•
•
The agreed, controlled and classified, minutes of these meetings, and the attached monthly reports, will be compiled, published and distributed as per company procedures. The country management may attend any of these meetings.
Agenda Management • • • • • • • • • •
Authorities Client Public Other interested parties Designers Suppliers Subcontractors Services providers Setbacks Company internal issues Country World
Accounts •
Monthly report Cash flow
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Expenses Financing Invoices Costing Budget review Setbacks Requirements Administration •
Monthly report Customer satisfaction Security Personnel Camps Messes Utilities Services Security Requirements
Construction •
Monthly report Customer satisfaction Production Sites Workshops Production units Construction indices per cost centre Problems Waste Monthly progress vs. scheduled Program for the next three months Setbacks Corrective actions Requirements Personnel Plant Materials Other
Technical & controls •
Project monthly report Design Monthly progress vs. scheduled report for every section of the design Procurement Monthly progress vs. scheduled report for every supplier Materials
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Arrivals Consumption • Scheduled arrivals • Stores • Requirements Monthly and to-date cost control report Monthly progress vs. scheduled report for every section Detailed program for every section for the next three months To-date measurements vs. valuations vs. outstanding payments report Budget review report Security Setbacks Requirements Monthly report to the client • •
•
Quality •
•
Project monthly report Customer satisfaction PQI Quality control Design Materials Subcontractors Works NCR Audits Setbacks Requirements Monthly report to the client
HSE •
•
Monthly report Customer satisfaction HSE issues Accidents Incidents Ill health Environmental NCR Clinic Drills Audits Setbacks Requirements Monthly report to the client
Plant
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•
Monthly report Utilization Charges Repairs Service Spare parts Setbacks Requirements
All •
Lessons learned
I.4.1.3.1
Project monthly report
Table of contents 1. General 2. Project management 2.1. Progress reports 2.1.1. Project overview 2.1.2. Engineering, design 2.1.3. Procurement 2.1.4. Construction 2.2. Planning reports 2.2.1. Project overview 2.2.2. Engineering, design 2.2.3. Procurement 2.2.4. Construction 2.2.5. Mobilisation, demobilisation 2.3. Contractual issues report 2.4. Budget review report 2.5. Cost control report 2.6. Major constraints 2.6.1. Engineering, design 2.6.2. Procurement 2.6.3. Construction 3. Financial & administration 4. Quality 5. HSE 6. Risks 7. Social responsibility 8. Client’s complaints 9. Constraints 10. Lessons learned 11. Requirements 12. Decisions Appendices 1.
Client’s complaints report Page 396 of 495
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. I.4.1.4
Authorities’ complaints report Society’s complaints report Contractual issues report Engineering progress and status report Material procurement progress and status report Construction progress indices and status report Budget review report Cost control report Monthly progress vs. schedule report Monthly risk management report Monthly financial & administration report Monthly quality management report Monthly HSE management report Management review meetings
Process outline •
•
•
•
•
•
Country or top company management review meetings will take place, during the course of the project, if required by the contract conditions and the project quality plan. It is advisable that every six months a management review meeting takes place for every major and mega project, at the project office. A report is prepared by the responsible task owners under the guidance of the quality manager and the approval of the project manager, as data for the management review meeting. The report will be sent to those concerned as specified in the relevant quality management procedure for their consideration and necessary action. The meeting will take place, as scheduled. Minutes of meeting will be published at the company intranet and distributed to all those present and all those concerned.
Proposed participants: • • • • • • • • • • •
Chief executive officer Discipline director(s) Chief financial officer Quality director HSE director Commercial, technical & controls director Plant director Country manager Project manager Site manager Project construction manager
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• • • • • •
Project financial & administration manager Project technical & controls manager Project quality manager Project HSE manager Project plant manager Project department heads
I.4.1.4.1
Management review report
Table of contents 1. General 1.1. Introduction 1.2. Country 1.3. Authorities 1.4. Public 1.5. Project 1.5.1. Owner 1.5.2. Project description 1.5.3. Reference documents 1.5.4. Scheduled completion dates 1.6. Security 2. Project management 2.1. Progress vs. planning 2.1.1. Project overall 2.1.2. Engineering, design 2.1.3. Procurement (abroad) 2.1.4. Procurement (domestic) 2.1.5. Construction of permanent works 2.1.6. Mobilisation, demobilisation 2.2. Contractual issues 2.3. Major constraints 2.3.1. Engineering, design 2.3.2. Procurement 2.3.3. Construction 2.4. Requirements 3. Financial & administration management 3.1. Human resources 3.2. Budget review 3.3. Cost control review 3.4. Cash flow 3.5. Financing 3.6. Profit & loss statement 3.7. Legal issues 3.8. Audit reports 3.9. Requirements 4. Risk management 4.1. Report 4.2. Risk assessments 5. HSE management
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5.1. HSE reports 5.2. Audit reports 6. Quality management 6.1. Project quality objectives 6.2. Design reviews 6.3. Inspection of suppliers 6.4. Inspection of construction 6.5. Audit reports 6.6. NCR 6.7. Listing and status of engineering waivers 7. Improvement 7.1. Audit reports’ recommendations 7.2. Management reviews’ decisions, recommendations 7.3. Design reviews recommendations 7.4. NCR root cause analysis 7.5. Lessons learned 7.6. Customer feedback 8. Decisions 8.1. Proposed action 8.1.1. Administrative 8.1.2. Financial 8.1.3. Engineering, design 8.1.4. Procurement 8.1.5. Construction 8.2. Approval of requirements Appendices 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. I.5
Administration management report Financial management report HSE management report Emergencies’ report Project management report Construction management report Quality management report Technical management report Controls management report Plant management report Logistics management report Risk management report Security management report Social responsibility report Lessons learned Client’s complaints Country/public complaints/issues Requirements Project quality management
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Definitions as per ISO 9001:2015128 3.3.4 quality management management (3.3.3) with regard to quality (3.6.2) Note 1 to entry: Quality management can include establishing quality policies (3.5.9) and quality objectives (3.7.2), and processes (3.4.1) to achieve these quality objectives through quality planning (3.3.5), quality assurance (3.3.6), quality control (3.3.7), and quality improvement (3.3.8). 3.3.5 quality planning part of quality management (3.3.4) focused on setting quality objectives (3.7.2) and specifying necessary operational processes (3.4.1), and related resources to achieve the quality objectives Note 1 to entry: Establishing quality plans (3.8.9) can be part of quality planning. 3.3.6 quality assurance part of quality management (3.3.4) focused on providing confidence that quality requirements (3.6.5) will be fulfilled 3.3.7 quality control part of quality management (3.3.4) focused on fulfilling quality requirements (3.6.5) 3.3.8 quality improvement part of quality management (3.3.4) focused on increasing the ability to fulfill quality requirements (3.6.5) Note 1 to entry: The quality requirements can be related to any aspect such as effectiveness (3.7.11), efficiency (3.7.10) or traceability (3.6.13). I.5.1
Quality plans
See chapters: E.4.2.2 Project quality plan E.12 Project subcontracting G.3.14.2 Supplier’s quality plan
• • •
I.5.2
Construction quality procedures
See chapters:
128
International Organization for Standardization (ISO) “ISO 9001:2015” https://www.iso.org/obp/ui/#iso:std:iso:9001:ed-5:v1:en copyright © ISO 2016 Page 400 of 495
• • • •
E.4.2.3 Project procedures E.4.2.6 Construction quality documentation I.3.2.3 Construction procedures I.3.2.4 Construction method statements
I.5.3
Construction quality control documentation
Basic construction quality control documents: • •
Inspection & test plans Quality control records Request for inspection Inspection checklists Inspection records
I.5.3.1
Inspection & test plans
Inspection & test plans (ITP) escort each project procedure or work instruction. The project inspection & test plans should have a standard format. Titles • • • • • • • •
•
Inspection & test plan Contractor (name & logo) Client (name & logo) Project name Project code Work item description Work item code Discipline Civil Mechanical Electrical Instrumentation ITP code & number
Contents • •
• • • •
Item No. Project phase and activity code Document review Material receiving Installation Pre-commissioning Task/activity Quality procedure Quality record Inspection responsibility Contractor
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•
QC inspector QC supervisor Client QC inspector QC supervisor Remarks
Footnotes • • •
General notes Contract quality requirements Legend H - Hold point for qc inspection or test R - Review & approval of documents S - surveillance W - witness inspection or test
Signatures •
•
Contractor QC manager (name, date, signature) Client QC superintendent (name, date, signature)
Inspection and test plans are developed by the contractor and approved by the client prior to the commencement of the referenced activity. I.5.3.2 • • •
Quality control records
Request for inspection (RFI) Inspection checklists (IC) Inspection records (IR)
I.5.3.2.1
Request for inspection
Outline •
•
•
•
A request for inspection (RFI) is the basic planning, monitoring and control record for all kinds of works and/or services at all phases of a project. A request for inspection is issued in advance of any inspection of each activity of the project as specified in the contract documents and the relevant quality procedure. An electronic database of RFI(s) registration should be established in the project intranet by the IT department and updated by the project quality department. The RFI is issued by the task owner, reviewed and verified for correctness by the responsible QC inspector before submission to the client.
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•
•
•
The task owner should attach to the RFI or present all relevant information (drawings, specification, co-ordinates, quantities’ calculations etc.) during the inspection. The signed RFI (approved or rejected) is published in two copies (one for the client and one for the contractor). The quality control superintendent will update the database accordingly.
I.5.3.2.2
Inspection checklists
Outline •
•
•
•
•
•
•
•
The inspection checklists (IC) specify the acceptance criteria of each work activity, element and the respective contract specifications. The inspection checklists are prepared by the contractor’s discipline quality supervisor and approved by the quality control manager. The inspection checklists are based on the contract specification and conditions. The inspection checklists are approved by the client and escort each inspection and test plan. An electronic database of inspection checklists’ registration should be established in the project intranet by the IT department and updated by the project quality department. Quality control officers of the client and the contractor perform the inspections jointly. The inspection checklist (approved or rejected) is signed in two copies (one for the client and one for the contractor). The inspection checklists are registered in the project intranet.
I.5.3.2.3
Inspection records
There are various types of inspection records’ (IR) forms in a construction project, such as: • • • • • • •
Laboratory test reports Materials receiving reports Measurement reports Procedure review reports Strength of materials reports Surveying reports Test reports
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Outline •
•
•
•
The company should develop a complete set of standard forms for each element of its scope of supply and operations. The inspections are performed jointly by quality control officers of the client and the contractor. The signed inspection record (approved or rejected) is published in two copies (one for the client and one for the contractor). The inspection records are registered in the project intranet.
I.5.4
Quality control testing
Outline •
•
•
Construction materials and works are tested in-situ and in discipline laboratories for compliance with applicable quality specification. Unsuccessful quality control testing means that materials are not acceptable or work items are rejected resulting to higher costs and delays. Testing (in-situ and in the laboratory) specific method statements, for every engineering discipline, that complies with legal and regulatory requirements, contract and project conditions and the company management system should be prepared and implemented.
I.5.4.1
Civil materials & works testing
Process outline •
•
•
•
Civil, building materials and works are tested in-situ and in laboratories for compliance with applicable specification. In general, samples are collected in-situ and tested in the laboratory. Indicative civil, buildings materials and works tests are referenced in chapter “I.5.3.2 Quality control records”. Typical materials, works to be tested in a civil works quality control laboratory (very limited, indicative list, alphabetical order): Acoustical materials Admixtures Aggregates Asbestos-cement products Asphalt works Bituminous materials Building seals and sealants
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Cement Courses (sub-grade, sub-base, base course etc.) Coatings Concrete works Insulation materials Joint fillers Marble Masonry units Membranes Mixtures Mortars and grouts Non-metallic pipes Paints Rocks Roofing systems Sand Soil Steel Tiles Water Waterproofing systems •
Testing equipment/tools Each testing tool/equipment is coded, registered, secured in locked, closed, nominated area and utilised under strict control protocol. Each testing tool/equipment should be tested, calibrated and certified regularly, as required by manufacturer’s manual, applicable national and international standards, specification, legislation, regulations, project conditions and the company’s management systems. Uncertified testing tools/equipment are rejected without further reasoning. The use of uncertified equipment will result to the cancellation of all tests performed with this equipment. Testing and calibration of laboratory equipment is conducted by external authorised and certified laboratories under strict subcontract conditions.
•
A civil works testing (in-situ and in the laboratory) specific method statement that complies with legal and regulatory requirements, contract and project conditions and the company management system should be prepared. Proposed contents Scope For each material/work to be tested • Contract conditions (frequency of testing, sampling etc.) • Specifications (standard’s pages related to each test) • Tool/equipment for each test (sampling and testing) • Valid certificate of the tool/equipment • Method statement (sampling and testing) • HSE issues
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• •
•
•
Testing forms Testing report requirements
The method statement should be prepared by the project civil quality control superintendent, checked by the project quality and HSE managers, reviewed by the site manager and approved by the project manager. The method statement will be sent to the client for information.
References •
•
•
•
•
•
•
International Organization for Standardization (ISO) “ISO/TC 190 - Soil quality” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=54328 © All Rights Reserved International Organization for Standardization (ISO) “ISO - ICS 91.100.30: Concrete and concrete products” http://www.iso.org/iso/home/store/catalogue_ics/catalogue_ics_browse.htm?IC S1=91&ICS2=100&ICS3=30 © All Rights Reserved ASTM International “ASTM Standards (Annual Book)” “Section: 4 Construction” https://www.astm.org/BOOKSTORE/BOS/section4.htm Copyright © 1996 - 2017 ASTM. All Rights Reserved American Association of State Highway and Transportation Officials (AASHTO) “Standard Specifications for Transportation Materials and Methods of Sampling and Testing, and AASHTO Provisional Standards” https://bookstore.transportation.org/collection_detail.aspx?ID=149 © American Association of State Highway and Transportation Officials American Concrete Institute (ACI) “SP-002(07): Manual of Concrete Inspection” https://www.concrete.org/store/productdetail.aspx?ItemID=SP22007 © Copyright 2016, American Concrete Institute American Concrete Institute (ACI) “311.5-04: Guide for Concrete Plant Inspection and Testing of Ready-Mixed Concrete” https://www.concrete.org/store/productdetail.aspx?ItemID=311504&Format=DO WNLOAD © Copyright 2016, American Concrete Institute International Code Council (ICC) “Concrete Manual: Based on the 2015 IBC and ACI 318-14 “ http://shop.iccsafe.org/concrete-manual-based-on-the-2015-ibc-and-aci-318-141.html
I.5.4.2
Electrical, instrumentation & telecommunications testing
Process outline
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•
•
•
Electrical, instrumentation & telecommunications materials, equipment or works are tested in-situ and/or in laboratories for compliance with applicable quality specification. Electrical, instrumentation & telecommunications materials, equipment, works tests are indicated in chapter “I.5.3.2 Quality control records”. Typical materials/equipment/works to be inspected/tested [receiving, storage, handling, preservation, installation, termination, identification and precommissioning (as applicable)] by the electrical, instrumentation & telecommunications quality control superintendents, engineers and/or technicians (in-situ or in the laboratory - very limited, indicative list, alphabetical order): Cathodic protection Cathodic protection - materials, works Electrical Boxes and enclosures Cables & wires (low, medium, high or very high voltage) Control gear Cooling systems, heat exchangers Dry transformers Electrical equipment Lightning protection Motors Power transformers Protection & metering - accessories, meters, recorders, panels, cabinets, transformers, systems Receptacles & cords Switchgear room, substation UPS/DC systems and battery accessories Instrumentation Air detection systems Compression fittings and accessories Electronic control systems Fibre optic cables Fire alarm systems Flow meters Foundation field bus Instrument cables Instrumentation accessories Level instruments Mechanical equipment skids Panels and racks Piping and tubing
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Pressure gauges, switches, transmitters Recorders, indicators Skid for non-hazardous locations Temperature instruments Tubing (stainless steel and copper) Valves (brass, stainless steel - control, globe, needle) Telecommunications Building premises distribution system Communications facilities Communications systems Copper circuits DC system Fibre optic circuits Indoor electronic equipment OSP circuits •
Testing equipment, tools Each testing tool, equipment is coded, registered, secured in locked, closed, nominated area and utilised under strict control protocol. Each testing tool, equipment should be tested, calibrated and certified regularly, as required by manufacturer’s manual, applicable national and international standards, specification, legislation, regulations, project conditions and the company’s management systems. Uncertified testing tools, equipment are rejected without further reasoning. The use of uncertified equipment will result to the cancellation of all tests performed with this equipment. Testing and calibration of laboratory equipment is conducted by external authorised and certified laboratories under strict subcontract conditions.
•
An electrical, instrumentation & telecommunications testing (in-situ and in the laboratory) specific method statement that complies with legal and regulatory requirements, contract and project conditions and the company management system should be prepared. Proposed contents Scope For each material, equipment, work to be tested • Contract conditions (frequency of testing, sampling etc.) • Specifications (standard’s pages related to each test) • Tool, equipment for each test (sampling and testing) • Valid certificate of the tool/equipment • Method statement (sampling and testing) • HSE issues • Testing forms • Testing report requirements
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•
•
The method statement should be prepared by the project electrical quality control superintendent, checked by the project quality and HSE managers, reviewed by the site manager and approved by the project manager. The method statement will be sent to the client for information.
References (indicative list) •
•
•
•
•
•
•
•
•
Legislation Government UK Statutory Instruments 1989 No. 635 HEALTH AND SAFETY “The Electricity at Work Regulations 1989” http://www.legislation.gov.uk/uksi/1989/635/contents/made © Crown copyright Health and Safety Executive (HSE) UK “The Electricity at Work Regulations 1989 Guidance on Regulations” http://www.hse.gov.uk/pubns/books/hsr25.htm Copyright Health and Safety Executive (HSE) UK “Electrical safety at work” http://www.hse.gov.uk/electricity/index.htm Copyright Health and Safety Executive (HSE) UK “Electrical standards and approved codes of practice” http://www.hse.gov.uk/electricity/standards.htm Copyright Health and Safety Executive (HSE) UK “Electricity at work: Safe working practices” http://www.hse.gov.uk/pubns/books/hsg85.htm Copyright Health and Safety Executive (HSE) UK “Electrical inspection and testing” http://www.hse.gov.uk/electricity/information/testing.htm Copyright International Electrotechnical Commission (IEC) “Electrical testing” search “publications” https://webstore.iec.ch/searchform&q=electrical%20testing&FUZZY=1 Copyright © IEC 2017. All rights reserved International Electrotechnical Commission (IEC) “Electronics testing” search “publications” https://webstore.iec.ch/searchform&q=electronics%20testing&FUZZY=1 Copyright © IEC 2017. All rights reserved Institute of Electrical and Electronics Engineers (IEEE) IEEE Xplore® Digital Library “Electrical testing” search “standards” http://ieeexplore.ieee.org/search/searchresult.jsp?queryText=electrical%20testi ng&refinements=4294965216 © Copyright 2017 IEEE - All rights reserved
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•
•
Institute of Electrical and Electronics Engineers (IEEE) IEEE Xplore® Digital Library “Electronics testing” search “standards” http://ieeexplore.ieee.org/search/searchresult.jsp?queryText=electronics%20tes ting&refinements=4294965216 © Copyright 2017 IEEE - All rights reserved Institute of Electrical and Electronics Engineers (IEEE) IEEE Standards Association IEEE Conformity Assessment Program (ICAP) “Standards Conformance Solutions Enabling Market Implementation” http://standards.ieee.org/faqs/icap.html © Copyright 2017 IEEE - All rights reserved
I.5.4.3
Mechanical works testing
Process outline •
•
•
Mechanical materials, equipment or works are tested in-situ and in laboratories for compliance with applicable quality specification. Indicative mechanical materials, equipment or works tests are referenced in chapter “I.5.3.2 Quality control records”. The most frequently used non-destructive test methods are: Electromagnetic Testing (ET) Liquid Penetrant Testing (PT) Magnetic Particle Testing (MT) Positive material identification (PMI) of alloy piping components Radiographic Testing (RT) Ultrasonic Testing (UT) Visual Testing (VT)
•
Typical materials/equipment/works to be inspected/tested [(receiving, visual inspection, verification, storage, handling, conditioning, preservation, installation, identification, testing and pre-commissioning (as applicable)] by the mechanical quality control superintendents, engineers and/or technicians (insitu or in the laboratory - very limited, indicative list, alphabetical order): Acoustical control or noise control insulation installations Air compressor and its components Boilers Castable refractory installations Centrifugal compressor Chemical injection and sample connection installation Coating systems Compressors (process air or gas service) Custody metering skids for hydrocarbon gas Fabricated steel and aluminium structure Fin fan coolers
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Fire protection systems Flare Foam generating equipment Heat exchangers Hot bending, insulation, tapping Injection, sampling quill Instrument air compressor & mechanical components Instrument air supply system Insulations Lube and/or seal oil system Lubrication system (lubrication skid) Lubrication, shaft sealing and oil systems for rotating equipment Material storage & handling at fabrication workshop Mechanical components of lubrication, shaft sealing and oil systems for rotating equipment Metering skids Mounting plate installation and levelling for compressors, pumps Piping Plant air & nitrogen utility connectors Plant utility steam hose connection Pumps Refractory systems Scraper trap station, piping and appurtenances Shop fabrication - piping & miscellaneous steel structures Steam systems Stopple fitting installation Structural steel Tanks Tape wrapping Thermowell installation Threaded joint connections Thrust boring at road crossings Tie-in (materials & works) Valves Vapour barrier installation of cold insulation prior to cladding Venturi, restriction orifice and flow orifice Vessels (pressure vessels, fin fan coolers, etc.) Weatherproofing Welding Well head guard rails Well head piping installation •
Testing equipment, tools Each testing tool, equipment is coded, registered, secured in locked, closed, nominated area and utilised under strict control protocol. Each testing tool, equipment should be tested, calibrated and certified regularly, as required by manufacturer’s manual, applicable national and international standards, specification, legislation, regulations, project conditions and the company’s management systems.
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Uncertified testing tools, equipment are rejected without further reasoning. The use of uncertified equipment will result to the cancellation of all tests performed with this equipment. Testing and calibration of laboratory equipment is conducted by external authorised and certified laboratories under strict subcontract conditions. •
A mechanical testing (in-situ and in the laboratory) method statement that complies with legal and regulatory requirements, contract and project conditions and the company management system should be prepared. Proposed contents Scope For each material, equipment, work to be tested • Contract conditions (frequency of testing, sampling etc.) • Specifications (standard’s pages related to each test) • Tool, equipment for each test (sampling and testing) • Valid certificate of the tool/equipment • Method statement (sampling and testing) • HSE issues • Testing forms • Testing report requirements
•
•
The method statement should be prepared by the project mechanical quality control superintendent, checked by the project quality and HSE managers, reviewed by the project site manager and approved by the project manager. The method statement will be sent to the client for information.
References (indicative list) •
•
•
•
International Organization for Standardization (ISO) “ISO/TC 135 - Non-destructive testing” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=52398 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 164 - Mechanical testing of metals” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=53550 © All Rights Reserved International Organization for Standardization (ISO) “IIW - International Institute of Welding” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=55014 © All Rights Reserved The American Society of Mechanical Engineers (ASME) “Standards” https://www.asme.org/shop/standards © The American Society of Mechanical Engineers
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•
•
•
•
•
I.5.5
American Petroleum Institute (API) “2017 Publications Catalog (Full)” http://www.api.org/~/media/Files/Publications/Catalog/2017_catalog/API_2017_ Catalog.pdf © Copyright 2017 – API. All Rights Reserved. British Standards Institution (BSI) “BS EN 1011 series - Welding guidelines” http://shop.bsigroup.com/SearchResults/?q=BS%20EN%201011 © British Standards Institution 2017 American Welding Society (AWS) “Welding handbook” http://www.aws.org/publications/weldinghandbook © 2017 American Welding Society British Compressed Gases Association (BCGA) “Codes of Practice (CP)” http://www.bcga.co.uk/pages/index.cfm?page_id=19&title=codes_of_practice © British Compressed Gases The American Society for Non-destructive Testing (ASNT) “Nondestructive Testing Handbook” https://www.asnt.org/MajorSiteSections/Publications/NDT_Handbooks.aspx © Copyright 2017 The American Society for Nondestructive Testing. All rights reserved. Quality training plans
It is essential that all personnel become fully aware of their responsibilities as far as the quality requirements of the project. Process outline •
•
•
•
•
•
•
The project quality manager will prepare an initial assessment -on quality training needs- based on the company management system and the contract requirements (work specification & personnel qualifications). The assessment will be presented to the project management team and a training plan will be agreed and established. The training plan, once approved, will be published in the project intranet. The training will be performed in sessions and the participants will be informed, as appropriate, well in advance. The presentation (subject, contents, and duration) for each session will be prepared by the quality assurance engineer or the discipline quality control supervisors and approved by the quality manager. The training sessions will be performed by members of the quality team or external consultants when necessary. The training sessions -at all levels- will be monitored and the plan will be
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revised as necessary to cover failures, setbacks, customer dissatisfaction, accordingly. Training groups • • • • • • •
• •
Project management team Project departments’ heads, superintendents Project engineers (offices & sites) Quality assurance & control superintendents, engineers Quality inspectors Quality laboratories’ personnel Supervisors (materials’ warehouses, production, construction, maintenance, pre-commissioning) Technicians Workers
Training topics • • • • • • • •
Quality policy Quality management system Contract requirements Project codes & standards (disciplines) Project quality documentation Quality performance indices Customer’s satisfaction Lessons learned
Training schedule • • • • • •
I.5.6
Induction Before the commencement of each activity (discipline & topic) After a systematic failure (discipline & topic) Weekly Monthly As required Quality audit plans
A quality audit plan that: • • • • • •
Complies with contractual requirements Complies with certification requirements Contains audits of all phases of the project Specifies the auditors and the auditees Specifies the place and date of the audits Serves the purpose
will be prepared by the contractor, attached to the project quality plan and approved by the client.
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I.5.6.1
Internal audits
Audits may be used for several purposes, such as: • • • •
To monitor the implementation and effectiveness of quality plans To monitor and verify conformity with specified requirements For surveillance of suppliers To provide independent objective assessment, when required, to meet the needs of the client or other interested parties
An internal auditing plan will be prepared by the project quality manager and agreed by the project manager. It will be based on the company management system requirements and the contract conditions. It will cover all phases and sections of the project: •
•
•
•
•
Design Designers Contractor Procurement Suppliers Contractor Construction Specialists Subcontractors Contractor Maintenance Contractor Pre-commissioning Specialists Contractor
An audit schedule will be attached to the project auditing plan with specific dates, places, sections, subjects, etc. The project quality plan should refer to the audit schedule of all the various phases of the project. The audit reports will be communicated to all concerned parties for their information and necessary action. Corrective action will be performed as required. I.5.6.2
External audits
External audits may be performed by: •
The client
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• • •
The country authorities Interested parties Certification agencies
An external auditing plan that satisfies systematic, legal or contractual requirements will be prepared by the project quality manager and agreed by the project manager. The auditing plan will be based on notifications received from the auditing parties, the company quality management system, the contract conditions, the applicable legislation and/or the certification requirements. The phases, sections and the schedule of these audits will be agreed between the concerned parties. The audits’ schedule will be attached to the project quality plan. The audit reports will be communicated to all concerned parties for their information and necessary action. Corrective action will be performed as required. I.5.7
Non-conformity reports
Guidelines •
•
•
•
•
•
•
•
•
Non-conformity is the non-fulfilment of a specified requirement, need or expectation that is stated, generally implied or obligatory. Non-conformity reports (NCR) are issued, accepted, registered and closed-out as specified in the relevant company quality management procedure and the contract conditions. The non-conformity reports list, monitor and follow-up non-conformities. Corrective actions are the actions taken to eliminate the cause of a detected non-conformity or other undesirable situation. Preventive actions are the actions taken to eliminate the cause of potential or existing non-conformities or other potentially undesirable situations. Anyone of the company’s employees that detects a non-conformity has to report it to the section supervisor and/or a quality officer. All non-conformities are recorded in the “Non-Conformity Report (NCR)”. In this form, the non-conformity is described by the originator and possible causes are identified. Classification of the non-conformity as urgent, critical or non-critical is also noted.
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•
•
•
•
•
•
•
•
•
I.5.8
The NCR is sent to the recipient, along with any relevant supporting data. Recipient of NCR may also be a person outside of the company, such as a supplier or a subcontractor. The NCR is communicated to the quality manager. The recipient defines the corrective/preventive actions to be taken as well as the due time and the person responsible for implementation (including the recipient himself). The responsible for implementation proceeds to all necessary actions, which are recorded in the NCR. Results of these actions are also recorded. Verification that proper actions have been implemented and confirmation of their effectiveness is made by the quality manager. In cases when the results are not satisfactory, a new NCR may be issued. The quality manager is informed of all non-conformities’ reports and holds the general responsibility of monitoring the actions to follow, by the use of a NCR register. Non-conforming materials (that cannot be used as they are) must be adequately isolated and labelled. Quality department’s meetings
The project quality team will draft a procedure for regular meetings and their agendas, based on the quality management system of the company and the project particulars. The procedure will be incorporated in the project quality plan. Draft outline procedure - quality department’s meetings Daily meetings •
•
•
The quality teams -discipline superintendents, engineers, and inspectors- will meet daily at the end of each working shift and discuss the daily performance and schedule. If the project operates 24/7 then during this session those completing their work shift will handover to their corresponding officers who start their work shift all outstanding, open or planned work activities. The produced documentation (RFI, inspection checklists, inspection records, daily
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reports) will be completed before the end of each shift and published at the project intranet. •
The discipline quality control superintendents will meet with the quality control manager first thing every morning and discuss the schedule of the day and all open issues that require attention.
Weekly meetings •
The quality team -manager, superintendents, engineers, supervisors, inspectorswill meet weekly and discuss comprehensive reports for the past week and schedule of activities for the coming one.
Agenda • • • • • • • •
•
•
Weekly progress report(s) of each section/discipline Weekly performance indicators Schedule for next week Pending issues NCR Customer satisfaction Requirements Weekly report to the client
The combined weekly project quality report will be finalised and published at the project intranet. The weekly quality report(s) for the client will be finalised, signed by the quality manager and sent to the project secretariat for further processing.
Monthly meetings •
The quality team -manager, superintendents, engineers, supervisors, inspectorswill meet monthly and discuss comprehensive reports for the past month and schedule of activities for the coming one.
Agenda • • • • • • • •
•
Monthly progress report(s) of each section/discipline Monthly quality performance indicators Schedule for next month Pending issues NCR Customer satisfaction Requirements Monthly report(s) to the client
The combined monthly project quality report will be finalised and published at the project intranet.
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•
The monthly quality report(s) for the client will be finalised, signed by the quality manager and sent to the project secretariat for further processing.
I.5.8.1
Weekly quality reports
Outline The quality department publishes weekly reports (usually in table, spreadsheet format) that refer to the progress cycle of each activity, work element (quality control inspection - approval or rejection - repair, correction - re-inspection - approval). This way, the experience of performance and quality deficits is monitored and appropriate corrective actions are introduced before the irregularities (if any) become systematic. These important informatory reports should be presented in person to those who actually perform/supervise the inspected activities for their corrective actions. A very limited list of sample weekly quality reports is indicated here below: •
•
•
Design Design status weekly report Procurement (for every material/equipment) Works (for every part of the permanent works) Design two weeks look-ahead weekly report Procurement Materials’ weekly status report (for every material/equipment) Materials’ two weeks look-ahead weekly report material/equipment) Construction Construction status weekly reports Disciplines Activities • Concrete • Asphalt • Welds, etc.
I.5.8.2
(for
every
Monthly quality management report
The project quality manager will prepare a monthly report that summarizes the quality management activities of the month. The report will be reviewed by the project manager and sent to those concerned as specified in the relevant quality management procedure for their consideration and necessary action. Depending on the size and the magnitude of the project, the report may have the following table of contents: Table of contents
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1. General 1.1. Quality audits 1.1.1. Completed audits 1.1.2. In progress audits 1.1.3. Planned audits for next month 1.2. Open corrective actions 1.2.1. From NCR 1.2.2. From audits 1.2.3. From management reviews 1.2.4. From design reviews 1.3. Quality personnel 1.3.1. Listing 1.3.2. Mobilisation plan for this month 1.3.3. Demobilisation plan for next month 1.4. Listing and status of engineering waivers requested 2. Design & procurement phase 2.1. Listing of supplier surveys 2.1.1. Performed supplier surveys this month 2.1.2. Planned supplier surveys for next month 2.2. Listing of pre-inspection meetings 2.2.1. Conducted pre-inspection meetings this month 2.2.2. Planned pre-inspection meetings for next month 2.3. Listing of supplier inspections 2.3.1. Performed versus scheduled supplier inspections this month 2.3.2. Planned supplier inspections for next month 2.4. NCR issued during design or procurement 2.4.1. Number of NCR issued for the month 2.4.1.1. Issued by client 2.4.1.2. Issued by contractor 2.4.1.3. Issued by suppliers 2.4.1.4. Issued by 3rd party agencies 2.4.2. Number of NCR closed out for the month 2.4.2.1. Issued by client 2.4.2.2. Issued by contractor 2.4.2.3. Issued by suppliers 2.4.2.4. Issued by 3rd party agencies 2.4.3. Number of NCR pending for the month 2.4.3.1. Issued by client 2.4.3.2. Issued by contractor 2.4.3.3. Issued by suppliers 2.4.3.4. Issued by 3rd party agencies 3. Construction phase 3.1. NCR issued during construction 3.1.1. Number of NCR issued for the month
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3.1.1.1. Issued by client 3.1.1.2. Issued by contractor 3.1.2. Number of NCR closed out for the month 3.1.2.1. Issued by client 3.1.2.2. Issued by contractor 3.1.3. Number of NCR pending for the month 3.1.3.1. Issued by client 3.1.3.2. Issued by contractor 3.1.4. Number of client e-logbook entries 3.2. Listing and disposition of all defective or rejected materials or equipment received at job site 4. Process improvement activities 4.1. Contractor’s activities 4.1.1. Root cause analysis of NCR issued by client 4.1.2. Root cause analysis of NCR issued by contractor 4.1.3. Audit reports’ recommendations 4.1.4. Management reviews’ decisions 4.1.5. Design reviews’ recommendations 4.1.6. Lessons learned from previous projects 4.1.7. Construction operations 4.1.8. Quality tests and inspections 4.2. Subcontractors’ activities 4.2.1. Root cause analysis of NCR issued by client 4.2.2. Root cause analysis of NCR issued by contractor 4.2.3. Audit reports’ recommendations 4.2.4. Management review report’s decisions, recommendations 5. Attachments 5.1. 5.2. 5.3. 5.4. 5.5. I.5.9
Quality organization chart NCR register Quality personnel mobilisation, de-mobilisation plan Deviations, waiver logs Pre-inspection, inspection & expediting reports Project quality performance indicators
Process outline •
•
•
The quality team will prepare process performance control procedures based on the company quality management system and the contract particulars. The project quality indices (PQI) will be based on actual data and their scientific method will be agreed in advance. The PQI will cover all project phases (design, procurement & construction) and usually refer to document submissions, quality system implementation and the quality of the works.
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â&#x20AC;˘
A sample PQI list for the project materials procurement phase might be: Document submissions Quality plans Quality procurement procedures Audit schedule(s) Quality manager (procurement) assumes duties Quality personnel (procurement) assume duties Quality inspectors assume duties Purchase requisitions & orders Supplier selection, evaluation Special process procedures Inspection assignment packages Two-week look-ahead schedules Weekly inspection status, fabrication report for each inspection Inspection reports (pre-inspection, in-process, and final) Audit reports Non-conformity reports (NCR) NCR summary Monthly quality management reports Management review results Final disposition reports Quality system Implementation Equipment, material inspection levels Inspectors work to latest approved technical documents, specification Contractor reviews of sub-orders Pre-inspection meetings conducted in accordance with agenda requirements Vendor documentation submitted in accordance with purchase order All vendor drawings approved prior to start of fabrication Two-week look-ahead schedule accurately reflects activities Inspection carried out by approved inspectors Approved inspection & test plans (ITP) fully implemented and followed Internal audits performed as scheduled Non-conformities identified and documented Root-causes identified and corrective actions accepted and implemented NCR issued by contractor Repeated violations Quality of procured materials Boilers and furnaces Electrical equipment (motors, generators, switchgear, cables, etc.) Mechanical equipment Packaged equipment Pipes, fittings, flanges - process, pipelines
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Positive material identification for alloy materials Process control systems (panels, controllers, instrumentation) Rotating equipment (pumps, turbines, compressors, etc.) Structural steel and pre-fabricated buildings materials Valves Vessels, tanks and exchangers Exception Items identified, documented and submitted Materials inspected and released prior to shipment Vendor manufacturing data reviewed and approved prior to shipment â&#x20AC;˘
A sample PQI list for the project construction phase might be: Document submissions Quality plan Systemsâ&#x20AC;&#x2122; procedures Audit schedule Audit reports Project construction procedures Inspection and test plans (ITP) Inspection procedures & forms Quality testing procedures & forms Quality manager (construction) assume Quality personnel (construction) assumes Quality personnel mobilisation forecast & implementation Special process procedures Two-week look-ahead schedules Non-conformity reports (NCR) NCR summary Monthly quality management reports Management review results Quality system Implementation Drawings and technical documents controlled Field changes documented, approved and distributed Inspections performed and documented as specified Internal audits performed, documented and followed up Material handling, storage & preservation as specified Material receiving as specified Measuring and test equipment periodical calibration as prescribed Non-conformities identified and documented Percentage of NCR issued by contractor Preventive actions identified and implemented Quality manpower level on site Quality records maintained and retrievable Repeated violations Root-causes identified and corrective action implemented Sub-contractor audits performed, documented and followed up Traceability maintained as required
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Welding complies with applicable standards and procedures Quality of construction work Bolt torquing of critical structural joints Cable splicing, testing and termination Conduit and/or cable sealing Gasket installation & bolt torquing (piping) HVAC and building finishing Manual weld reject rate below 5% per month Paint & coating (holiday, cure, adhesion) Percentage of RFI accepted Piping, fittings, flanges & pressure testing - process and/or pipelines Piping, fittings, flanges & pressure testing - utilities Positive material identification (PMI) implemented Punch lists items Relief valves calibrated, installed and sealed Soil, concrete & asphalt placement and testing Valve pressure tests •
•
•
•
I.6
Quality numerical results (success vs. failure, NCR, rejections, etc.) are usually the basis for relevant performance indicators produced on a monthly basis by the contractor and/or the client. Quality performance quantitative data are also used -by the company and/or the client- for the performance monitoring of individual specialized technicians (like welders), construction teams or production plants. The quality performance indicators, usually attached to quality reports, are published in the project intranet. Quality -weekly, monthly or summary- performance reports for every discipline and stage of the project may be established and agreed with the client as required by the contract conditions. Project HSE management
Protection of the environment and avoidance of ill health, accidents or incidents for all project personnel are the basic targets of the project HSE department. Process •
The management of the company shall ensure the availability of resources, essential to establish, implement and improve the project environmental management system such as: Human resources Specialised skills Technology Organizational infrastructure
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Information systems Training Financial Other resources (as required) •
Project HSE management team HSE manager HSE engineers HSE officers Doctor, medical provider
I.6.1
Project environmental management
References •
International Organization for Standardization (ISO) “ISO 14001:2015” https://www.iso.org/obp/ui/#iso:std:iso:14001:ed-3:v1:en © 2015 ISO — All rights reserved
Please also refer to Chapter G.2, page 322 of AMC-IAP-Part I-In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory Process outline •
•
•
•
•
•
For each project area (office, camp, garage, workshop, site) an HSE officer is appointed. An HSE officer may cover more than one area according to the area, project size and nature. The responsibilities of the HSE officers concerning environmental aspects are, among others, to promote and support the continuing development of a culture of environmental awareness and to evaluate performance against environmental objectives and targets. All persons working for or on behalf of the company must be aware of the significant environmental impacts of their work activities and the importance of conforming to the company’s environmental policy, objectives, targets, HSE plans, procedures, work instructions, programs, etc. The company should have identified and have access to applicable legal requirements and other requirements to which the company subscribes related to its environmental aspects. The purpose of this approach is to enable the company to be aware of the various requirements and determine how they apply to the environmental aspects of the company’s activities, products and services.
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•
Legal environmental requirements can take many forms, such as: Legislation, including statutes and regulations Degrees and directives Permits, licenses or other forms of authorisation Orders issued by regulatory agencies Judgments of courts or administrative tribunals Customary or indigenous law, and Treaties, conventions and protocols
•
Other environmental requirements may include: Agreements with public authorities Agreements with clients Non-regulatory guidelines Voluntary principles or codes of practice Voluntary environmental labelling or product stewardship commitments Requirements of trade associations Agreements with community groups or non-governmental organizations Public commitments of the company or its parent organization, and Corporate company requirements
•
•
•
•
The project HSE manager is responsible for collecting, categorizing and maintaining a library of legal and other requirements, which are related to the project’s environmental aspects. The project HSE manager is responsible to prepare all the required documentation (plans, drawings etc.), apply and obtain the required by the law environmental permits129. The project HSE manager communicates appropriate information about applicable legal and other requirements to all project personnel working for or on behalf of the company, including subcontractors and suppliers, whose responsibilities relate to or whose actions can affect the company’s compliance with such requirements. The compliance with legal and other requirements that are applicable to the environmental aspects of the project is evaluated by periodical and planned internal inspections and audits performed by competent HSE officers and EMS auditors.
I.6.1.1
Environmental aspects, impacts assessment
Outline •
129
The site manager and the project management team members should identify As an example please refer to “Enviromental permits” requirements in the UK at: https://www.gov.uk/topic/environmental-management/environmental-permits © Crown copyright Page 426 of 495
and plan the handling of the significant environmental aspects consistent with the company’s environmental policy, objectives and targets for the project area and associated with its ongoing and planned activities, products and services. •
•
In all cases, normal and abnormal operating conditions are considered including start-up, shutdown, maintenance, emergencies and accidents. In addition to those environmental aspects the company can control directly, consideration is given to aspects that it can influence, e.g. those related to products and services used by the company and those related to products and services it provides.
I.6.1.2
Identifying environmental aspects
Outline •
•
•
•
•
When evaluating the ability to influence the environmental aspects associated with the activities, products or services, the site manager and the other members of the project management team have to consider the legal, contractual or other requirements, the company’s policy, local or regional issues and obligations and responsibilities to interested parties and the public. They also have to consider the implications on the company’s own environmental performance, for example by the purchase of products containing hazardous materials. Examples of situations in which these considerations can apply include activities carried out by contractors or subcontractors, design of products and services, materials, goods or services supplied and used, and the transport, use, reuse or recycling of products placed on the market. To identify and have an understanding of the significant environmental aspects, the site manager collects quantitative and/or qualitative data on the characteristics of the activities, products and services such as inputs and outputs of materials or energy, processes and technology used facilities and locations, transportation method and human factors in its area of responsibilities. In addition, it can be useful to collect information on: Cause and effect relationship between elements of the company’s activities, products and services and possible or actual changes to the environment Environmental concerns of interested parties, and Possible environmental aspects identified in government regulations and permits, in other standards or by industry association, academic institutions, etc.
•
The approach chosen in identifying environmental aspects has to consider: Emissions to air (e.g. fire, dust, exhaust emissions, etc.)
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Releases to water; (e.g. effluent, oil or fuel leakage from floating equipment, etc.) Releases to land (e.g. fuel leakage, oil leakage, disposal of waste, etc.) Use of raw materials and natural resources (e.g. land use, water use, etc.) Local community environmental issues (e.g. waste disposal, etc.); Use of energy (e.g. electrical energy consumption, etc.); Energy emitted (e.g. heat, radiation, vibration, etc.); Waste and by-products and (e.g. clinic, plant waste, construction waste, sewage waste, etc.); Physical attributes, agents (e.g. size, shape, colour, appearance, noise, etc.). •
Consideration is therefore given to aspects related to the company’s activities, products and services such as: Design Procurement Construction processes Laboratories Production plants Quarries & borrow pits Workshops Camps Clinic Stores Offices Packaging and transportation Environmental performance and practices of subcontractors and suppliers Waste management Extraction and distribution of raw materials and natural resources Distribution, use and end-life of products Adjacent areas of special interest such as: Ramsar sites130 Sites of special scientific interest (SSSI)131 Archaeological sites132
130
131
132
The Ramsar Convention http://www.ramsar.org/ ©2014 The Ramsar Convention Secretariat RSIS Ramsar Sites Information Service https://rsis.ramsar.org/ Government UK Planning and development Protected sites and species “Sites of special scientific interest” https://www.gov.uk/guidance/protected-areas-sites-of-special-scientific-interest © Crown copyright Wikipedia “Archaelogical site” https://en.wikipedia.org/wiki/Archaeological_site Privacy Policy Page 428 of 495
UNESCO world heritage sites133 Wildlife134 and biodiversity135 I.6.1.3
Understanding environmental impacts
Outline •
•
An understanding of the environmental impacts is necessary when identifying environmental aspects and determining their significance. There are many approaches in understanding environmental impacts but consequently, the approach chosen should be capable of recognizing: Positive (beneficial) as well as negative (adverse) environmental impacts Actual and potential environmental impacts The part(s) of the environment that might be affected such as: Air Water Soil Flora Fauna Cultural heritage, etc. The characteristics of the location that might affect the impact such as: Local weather conditions Height of water table Soil types etc. The nature of the change to the environment such as: Global versus local issues Length of time for which the impact occurs Potential for impact to accumulate in strength over time
•
The relationship between environmental aspects and impacts is one of cause and effect.
I.6.1.4
Determining significant environmental aspects
Outline 133
134
135
UNESCO “World Heritage List” http://whc.unesco.org/en/list © UNESCO World Heritage Centre 1992-2017 Wikipedia “Wild life” https://en.wikipedia.org/wiki/Wildlife Privacy Policy Food and Agriculture Organization of the United Nations (FAO) “Biodiversity” http://www.fao.org/biodiversity/en/ © FAO, 2017 Page 429 of 495
•
•
•
•
•
Significance is a relative concept; it cannot be defined in absolute terms. Evaluating significance involves applying both technical analysis and judgment by the company. The use of criteria will help to establish which environmental aspects and associated impacts the company considers significant. Establishing and applying such criteria should provide consistency and reproducibility in the assessment of significance. When establishing criteria for significance, consider the following: Environmental criteria such as: Scale Severity and duration of the impact Size and frequency of an environmental aspect Applicable legal requirements such as: Emission and discharge limits in permits or regulations The concerns of internal or external interested parties such as those related to: Organizational values Public image Noise Odour Visual degradation
•
•
Some type of ranking is helpful in assigning significance, for example quantitatively in terms of a numeric value or qualitatively in terms of levels such as high, medium or low. The priority of recording of significant environmental aspects is determined by their arising importance.
I.6.1.5
Handling of the environmental aspects
Outline •
All activities of the office, camp, garage, workshop, site, that may have a significant environmental impact including: Purchased materials Extraction and distribution of raw materials and natural resources Transportation Construction activities Waste management Environmental performance and practices Wildlife and biodiversity and Activities of suppliers and subcontractors
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are considered. •
•
•
Current and scheduled activities (including site, area reinstatements) may also be considered. The environmental aspect and significant environmental impact is recorded for each activity and a severity rating is given (e.g. low, medium, high) both for normal and abnormal operations. Decisions are taken about: The objectives and targets for each aspect followed by the appropriate control measures and documents The priority of each environmental objective, target and the time schedule The need of drawing up and implementing an environmental management program or, alternatively, handling by issue of specific work instructions and monitoring their implementation The person(s) responsible for the activity The measuring indicators (if any) that will be used for evaluation of compliance and measurement of the environmental performance
•
The analysis of the environmental aspects, the significant environmental impacts, the objectives, the targets and the relevant measures are issued by the site manager, reviewed by the HSE manager for correctness and adequacy, approved by the project manager and published in the project intranet.
I.6.1.6
Review of the environmental aspects
Outline •
•
A review of the environmental aspects by the site manager in co-operation with the HSE manager will take place at least every six (6) months or when it is thought that the current analysis is no longer valid or according to client’s requirements or if there are significant changes. During the review: The existing situation is reviewed and the strong and weak points are determined The possibility to meet the requirements that have been set is assessed and corresponding resources are examined (e.g. personnel, equipment, knowhow, cost) Alternative solutions for handling environmental aspects are considered Any needs for environmental studies, before taking final decisions, are examined and the studies are assigned to appropriate persons along with time schedules
•
The review of each environmental aspect and all relevant decisions are recorded and published in the project intranet.
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I.6.2
Project waste management plans
Outline •
The HSE manager, assisted by the project team members and specialists (environmental engineers, advisors), will prepare a project specific waste management plan based on: Applicable legislation International treaties National codes & regulations International codes & regulations Contract conditions Company environmental management system Local conditions Weather conditions Waste to be produced: Type Classification Hazards Contamination risk Quantities Disposal methods Disposal areas Construction Use Treatment Required permits
•
•
•
•
•
•
•
Applications will be submitted to the local authorities for the required permits. The draft waste management plan will be presented to all interested parties for their consideration and consent. Special attention should be given to the treatment of each disposal area after the completion of the works and before the contractor is demobilised. All interested parties should also agree on the process of releasing the contractor from any responsibility, liability for the waste disposal areas at the end of the maintenance period or when the applicable legislation so requires. The agreed and signed minutes of these meetings will form the skeleton of the plan and will be attached as appendix to it. The HSE manager will issue the final waste management plan, the site manager will review it and the project manager will approve it. The waste management plan will be submitted to the client for approval.
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•
•
•
The approved waste management plan will be published at the project intranet and copied to all interested parties. The HSE manager will be responsible for its implementation. Training sessions based on the waste management plan will be planned and performed, as required.
References (indicative list) •
•
Government UK “Waste and environmental impact” A to Z https://www.gov.uk/browse/business/waste-environment © Crown copyright Government UK “Waste” https://www.gov.uk/topic/environmental-management/waste © Crown copyright
I.6.3
Project contamination contingency plans
Outline •
•
•
•
•
•
•
Contingency planning is important for all project activities because, even with careful planning, unforeseen incidents may occur. Careful planning is essential for any potential pollution situation as incidents are far easier to resolve when a well prepared and tested contingency plan is available. Contingency plans provide the structure implementation of response operations.
for
the
management
and
As such, they should be comprehensive, accessible and readily updateable, and reflect the working culture of the company, the client and the country within which they will be implemented. Contingency planning involves identifying the range of possible contamination events for each of the potential sources and developing a set of appropriate responses. The site manager is responsible to identify, establish and supervise emergency arrangements for mitigating, dealing with and minimizing the impacts of potential environmental contamination due to normal operations’ faults or unexpected or accidental incidents. All environmental aspects with a contamination/pollution possibility will be considered.
I.6.3.1
Developing contamination contingency plans
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Outline •
Identify all: High or low risk Probable contaminant activities Processes or situations
•
Identify all unexpected contamination scenarios
•
Prepare a work instruction for each situation
•
Develop specific responses for each case
•
Identify available people and means
•
Train responding teams
•
Develop a communications’ strategy: Client Company Personnel Public State
•
Update existing project information: Drawings Processes Conditions
•
•
Secure alternative supplies Identify cost code where to charge the expenses of the implementation of the contingency plan
I.6.3.2
Contingency planning work instructions
Outline •
For each hypothetical situation (scenario), a simple and practical work instruction should be: Prepared by the site manager and the responsible project team member who is responsible for the concerned area Reviewed by the HSE manager for correctness and adequacy Approved by the project manager and Published in the project intranet
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•
All these work instructions will form parts of the project contamination contingency plan.
I.6.3.2.1
Contingency planning - risk assessments
Outline •
•
Conducting a risk assessment as the first phase of the process ensures that plans are developed in the context of the risks they are intended to address. Essentially, this activity revolves around answering two questions: What is the likelihood of a pollution occurring? What are the probable consequences if pollution does occur?
•
•
Areas where pollution is most likely to occur can be analysed using company historical data that may be readily available. Information on types and volumes as well as the location of past incidents can be used. Once areas that have a high probability of a pollution occurring have been identified, the magnitude of potential consequences can be estimated.
I.6.3.2.2
Contingency planning - operational process
Outline •
Main components: Notification Evaluation Response Clean-up Communication Termination
•
The information required to allow an accurate evaluation of an incident should be detailed: Date Time Position Source Cause Amount and type of pollution, etc.
•
•
The procedure for evaluating the severity of the incident should be established. It is essential that a course of action for alerting response personnel and the relevant authorities should be included.
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•
•
In summary, the plan should aim to facilitate the evaluation of the most appropriate response option according to the situation. Processes should be included for establishing a dedicated response centre, for: Mobilising and deploying the necessary equipment and manpower Organising logistical support Coordinating surveillance Considering any disposal options
•
In addition, guidelines for the level of clean up required for each location should be provided together with procedures for standing down and reinstating equipment back into their respective positions.
I.6.3.2.3
Contingency planning - information directory
Outline •
•
This section of the work instruction should be dedicated to the collection of all supporting data that may be required to implement a timely and effective response. Useful information that should be contained in this section includes: Contact directory of response personnel - out of office contact details should be included where appropriate Contact directory of the client Contact directory of third parties - those likely to have an interest in an incident, e.g. Police Media Parties likely to be impacted Other authorities Primary response equipment: Contractor Client State (for example fire brigade etc.) Auxiliary response equipment: Sources of protective clothing Hand tools Radios etc. Logistics Manpower sources: Contractor Client Local authorities Other sources Experts and advisors - personnel with detailed knowledge of the specific pollution, the local environment (particularly of flora and fauna), safety, etc. Maps of sensitive areas - showing detailed information on the location of
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ecologically sensitive areas, and other resources likely to be threatened. Seasonal sensitivity should be highlighted Maps of the region - showing priorities for protection, illustrating strategies and restrictions, access points, waste sites, etc. Pollutants likely to be encountered - detailing their properties, persistence, likely fate and effects, suitable response techniques, etc. I.6.4
Project occupational health & safety management
References •
•
•
•
•
•
•
•
Legislation Government UK Statutory Instruments 2015 No. 51 Health And Safety “The Construction (Design and Management) Regulations 2015” http://www.legislation.gov.uk/uksi/2015/51/contents/made © Crown copyright All content is available under the Open Government Licence v3.0 except where otherwise stated Health and Safety Executive (HSE) UK http://www.hse.gov.uk/ Copyright Health and Safety Executive (HSE) UK “Health & safety in the construction industry” http://www.hse.gov.uk/construction/index.htm Copyright United States Department of Labor Occupational Safety and Health Administration “Construction Industry” https://www.osha.gov/doc/index.html Freedom of Information Act Privacy & Security Statement International Organization for Standardization (ISO) “ISO/DIS 45001 - Occupational health and safety management systems -Requirements with guidance for use” http://www.iso.org/iso/catalogue_detail?csnumber=63787 © All Rights Reserved. International Organization for Standardization (ISO) “ISO 45001 - Occupational health and safety” http://www.iso.org/iso/home/standards/management-standards/iso45001.htm 6 © All Rights Reserved. International Organization for Standardization (ISO) “ISO/TC 92 - Fire safety” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=50492 © All Rights Reserved International Organization for Standardization (ISO) “ISO/TC 94 - Personal safety - Protective clothing and equipment” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=50580 © All Rights Reserved
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•
International Organization for Standardization (ISO) “ISO/TC 199 - Safety of machinery” http://www.iso.org/iso/home/store/catalogue_tc/catalogue_tc_browse.htm?com mid=54604 © All Rights Reserved
Please also refer to Chapter G.3, page 324 of AMC-IAP-Part I-In theory at: https://issuu.com/dimitriosn.dounas/docs/amci_iap_part_i_-_in_theory I.6.4.1
Project OH&S hazards, risk assessments, risk controls
Outline •
OH&S hazards are classified into the following categories: Safety hazards or accident hazards that include the possibility of an injury to occur. The hazard’s nature can be mechanical, electrical, chemical, thermal, etc. Health hazards, that include the possibility of an occupational illness to occur as a result of exposure to natural, chemical or biological hazardous elements of the working environment Organizational hazards, which come from the employee’s relationship with the organization of his/her work
•
The hazard identification, risk assessment and risk control include the following elements: Identification of hazard Evaluation of risk with existing (or proposed) control measures in place (taking into account exposure to specific hazards, the likelihood of the control measures and the potential severity of consequences of injury or damage) Evaluation of acceptability of residual risk Identification of any additional risk control measures needed Evaluation of whether the risk control measures are sufficient to reduce the risk to an acceptable level
I.6.4.1.1
Planning of an OH&S risk assessment
Outline •
A risk assessment is performed for: All the company’s main activities including routine and non-routine, as well as for activities such as maintenance, start-ups, shut-downs, cleaning of premises, etc. Suppliers’, subcontractors’ and visitors’ activities as well as the use of products or services supplied by third parties Facilities at the workplace, whether provided by the company or others Hazards originating from outside the workplace capable of adversely affecting the health & safety of persons in the workplace
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Activities of all persons having access to a workplace including other contractors and visitors Human behaviour, capabilities and other human factors Changes in the offices, plants, sites, camps, garages, stores and workshops Assessing new activities prior to their commencement Hazards and risks which arise as a result of organizational changes or changes in the OH&S management system will be assessed prior to the implementation of these changes •
During risk assessment activities the following parameters are taken into consideration: Current and applicable OH&S legislation and other requirements to which the company subscribes concerning occupational health & safety The company’s occupational health and safety policy Records for accidents - incidents Non-conformities The results from audits of the management system concerning occupational health & safety issues The roles and responsibilities, as well as competence requirements and training needs, of the personnel in charge when implementing processes Information from the company’s employees or other interested parties Information from consultations with the employees, from reviews and/or improvements that took place in the working environment Information of best practices and typical hazards relevant to the company’s activities, as well as from accidents and incidents that occurred in similar projects Studies for the severity of risk due to human error Hazards arising from materials, plants or equipment from deterioration due to time Fire hazards Information about the company’s installations, activities and processes including: Layout drawings of the offices, plants, sites, camps, garages, stores and workshops Flow-charts of the processes Changes in specific procedures Lists of hazardous materials and toxic substances (raw materials, chemicals, wastes, etc.) Inspection data Environmental data from the workplaces
I.6.4.1.2
OH&S risk assessment procedure
Basic elements of an OH&S risk assessment procedure: • • • •
OH&S hazard identification OH&S risk determination Severity of an OH&S harm Likelihood of an OH&S harm
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• •
OH&S risk rating OH&S objectives, risk control measures and documents
I.6.4.1.2.1
OH&S hazard identification
Process outline •
Based on the legislative, regulatory and other requirements risk assessment studies are prepared by the site manager and the project team members: For the garages, plants, in co-ordination with the plant engineers and in consultation with the employees For the sites, in co-ordination with the site engineers, supervisors and in consultation with the employees For the camps, in co-ordination with the camp manageres, administrators and in consultation with the employees For the stores, in cooperation with the storekeeper and in consultation with the employees For the workshops, in co-operation of the relevant engineer, supervisor or supervisor and in consultation with the employees
•
•
•
The HSE manager reviews the risk assessments for adequacy and effectiveness before they are approved by the project manager. All activities are considered. Current and scheduled activities (including site, area reinstatements) may also be considered. For each activity, the potential hazards are recorded and listed on the appropriate company electronic forms and published in the project intranet.
I.6.4.1.2.2
OH&S risk determination
Outline •
•
For each hazard identified the corresponding risk and persons at risk are recorded and a risk rating is given both for normal and for abnormal operations. The risk is determined by assessing: The potential severity of harm The likelihood that harm will occur
I.6.4.1.2.2.1
Severity of an OH&S harm
Outline •
In order to assess the severity of harm following issues should be considered in relation to the relevant work activity: The part(s) of the body likely to be affected
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The nature of the harm, ranging from slight to extremely harmful: Slightly harmful (e.g. superficial injuries, minor cuts and bruises, nuisance and irritation, temporary discomfort, etc.) Harmful (e.g. lacerations, burns, concussions, deafness, dermatitis, illhealth, fractures, etc.) Extremely harmful (e.g. amputations, major fracture, poisonings, fatal injuries, severely life shortening diseases, acute fatal diseases, etc.) I.6.4.1.2.2.2
Likelihood of an OH&S harm
Outline â&#x20AC;˘
â&#x20AC;˘
When establishing the likelihood of harm which ranges from highly unlikely to likely, risk control measures already in place as well as hazard specific legal requirements, codes of practice or guidance from manufactures, suppliers (such as MSDS) as well as information from previous accidents, incidents need to be considered. In addition, the following factors should be addressed: Number of exposed personnel Frequency and duration of exposure to the hazard Failure of services e.g. electricity, water, etc. Failure of plant and equipment components and safety devices Protection provided by personal protective equipment (PPE) and the usage rate of such equipment Unsafe acts or conditions (unintended errors or intentional violations of procedures) by persons who may: Not know what the hazards are Not have the knowledge, physical capacity or skills for the work Underestimate the risks they are exposed to Underestimate the practicality and usefulness of safe working methods Indulge in horseplay Take short cuts to complete tasks Performance of unplanned section of the work
I.6.4.1.2.3
OH&S risk rating
Risks are classified according to their estimated likelihood and potential severity of harm according to the following table, which gives the means to establish a ranking order for the risks in the workplace: Harmful
Extremely harmful
Highly unlikely Trivial risk
Acceptable risk
Moderate risk
Unlikely
Acceptable risk
Moderate risk
Substantial risk
Likely
Moderate risk
Substantial risk
Intolerable risk
Slightly harmful
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I.6.4.1.2.4
OH&S objectives, risk control measures and documents
Process outline •
•
According to the risk rating as above, the objectives are set for each potential hazard and recorded in the appropriate electronic form, followed by the control measures and documents that will be used. Decisions are taken about: The priority of the handling of each occupational health & safety objective and the time schedule The need of drawing up and implementing an occupational health & safety program or, alternatively, handling by issue of specific instructions and monitoring their implementation The person(s) that will be responsible for the objective The measuring indicators (if any) that will be used for follow up of the progress of the occupational health & safety objectives and the measurement of the performance
•
Decisions are based on the following table: Risk level Control measures and time schedule Trivial No measures are required and no records need to be kept Acceptable No additional controls are required. Consideration may be given to a more cost effective solution or improvement that imposes no additional cost burden. Monitor is required to ensure that controls are maintained Moderate Efforts should be made to reduce risk within a defined time period, but the associated costs should be carefully measured and limited. Where the moderate risk is associated with extremely harmful consequences, further assessment may be necessary to establish more precisely the likelihood of harm as a basis for determining the need for improved control measures Substantial Work should not be started until risk has been reduced. Considerable resources may have to be allocated to this cause. Where the risk involves work in progress, urgent action should be taken Intolerable Work should not be started or continued until risk has been reduced. If risk reduction is not possible even with unlimited resources, work has to remain prohibited
•
In order to determine the appropriate risk control measures for those risks that are unacceptable, the following are taken into account: Elimination of hazards altogether, if possible, or combating risks at source Attempt to reduce risk if elimination is not possible Adaptation of work to the individual, where possible Page 442 of 495
Taking advantage of technical progress to improve controls Use of measures that protect everyone Use of a combination of technical and procedural controls Use of PPE as a last resort, or as a temporary contingency during maintenance or service Need for emergency arrangements Adoption of proactive measurement indicators to monitor compliance with controls •
When selecting the appropriate risk control measures for those risks that are not acceptable, the following hierarchy of risk reduction control measures will be adopted: 1. Elimination - modify a design to eliminate the hazard e.g. introduce mechanical lifting devices to eliminate the manual handling hazard; 2. Substitution - substitute a less hazardous material or reduce the system energy e.g. lower the force, amperage, temperature etc. 3. Engineering controls - install ventilation systems, machine guards etc. 4. Signage, warnings and/or administrative controls - install alarms, safety procedures, equipment inspections, access controls. 5. Personal protective equipment - safety glasses, hearing protection, face shields, safety harnesses and lanyards, respirators and gloves
I.6.4.1.3
OH&S risk assessments approval
Process outline •
•
The risk assessments, the objectives and the relevant control measures are defined, reviewed, revised as necessary and approved by those responsible for the respective work activities. The site manager is responsible for the co-ordination, correction and formalization of all risk assessment studies.
I.6.4.1.4
OH&S risk assessment review
Process outline •
•
Reviews of risk assessments are performed on an annual basis and/or in cases when changes in the installations or processes create doubt about the validity of the initial risk assessment study. Such changes could be: Changes in working methods Changes in the working or living environment Changes in plant or equipment Re-assignment of responsibilities
•
During a risk assessment review, the following are also taken into
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consideration: The corrective, preventive and mitigative actions that have been described as necessary for the proper operation of the management system on issues concerning occupational health & safety Further hazard identification and risk assessment may be needed so that a conformance of the suggested changes with the already established risk control measures is possible. It is also possible to review the assessment of the remaining risk Information about the progress and completion of corrective and preventive actions and the establishment of revised or new occupational health and safety objectives The employees’ assessment of hazards during the execution of dangerous works The experience gained by implementation, which could lead to the review of the processes or the data upon which the initial risk assessment was based •
Risk assessment reviews are performed in all cases that could lead to the revision of a written procedure, work instruction, program or method statement, etc. that defines the way of risk control.
I.6.5
Project HSE plan
Please refer to chapter “E.5.1.1 HSE plan”. I.6.6
Project HSE management planning
Outline • • •
Project OH&S programs Project HSE training plans Project HSE auditing plans
I.6.6.1
Project OH&S programs
Process outline •
In case it is decided that a project OH&S program must be implemented in order to meet the objectives and tasks, its contents might be as follows: An introduction, where the title, scope, expected objectives, tasks, specifications, standards, codes of practice, regulations, legislation, etc. applied and the methodology used are mentioned A technical description accompanied by any relevant drawings, sketches, etc. Resources (materials, human resources, infrastructure, work environment, information, suppliers & partnerships, natural resources and financial resources) An organizational chart concerning the people involved in the implementation of the program and their responsibilities Data for the necessary training for the people involved
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Information from employee consultations Results of hazard identification, risk assessment and risk control as well as provision for new ones if considerable changes from previous situation are present Information from improvement activities in the workplace Information from new or different technological options The phases, actions and deadlines for the various objectives/tasks of the program References to corresponding documents (e.g. drawings, procedures, Instructions either permanent or specific to the site, etc.) The forms that will be used for recording data Any comments or observations •
•
•
•
The site manager and the responsible project team member of the concerned area prepare the programs. The OH&S programs are reviewed by the HSE manager, approved by the project manager and published in the project intranet. During the implementation of a program all actions taken, the person who was responsible for the action, the date each action was taken, any relevant comments or observations and the level of effectiveness of the corresponding actions are recorded in the appropriate documents. Internal and external auditors audit the OH&S programs.
I.6.6.2
Project HSE training plans
Process outline •
•
•
•
•
•
•
It is essential that all personnel become fully aware of their responsibilities as far as the HSE requirements of the project. The project HSE manager will prepare an initial assessment -on HSE training needs- based on the applicable legislation, the company management system and the contract requirements. The assessment will be presented to the project management team and a training plan will be agreed and established. The training plan, once approved, will be published in the project intranet. The training will be performed in sessions and the participants will be informed, as appropriate, well in advance. The presentation (PowerPoint - subject, contents, and duration) for each session will be prepared, in advance, by the HSE manager, the HSE officers or the doctor and approved by the HSE manager. The training sessions will be performed by members of the HSE team or
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external consultants when necessary. •
The training sessions - at all levels - will be monitored and the plan will be revised as necessary to cover accidents, incidents, failures, setbacks, customer dissatisfaction accordingly.
Training groups • • • • • • • •
Project management team Project departments’ heads, superintendents Project engineers (offices & sites) HSE officers Supervisors Technicians Groups of interest All personnel
Training topics • • • • • • • • • •
Applicable legislation HSE policies HSE management systems Contract requirements HSE management plan Environmental issues Occupational health issues Safety issues Waste management Lessons learned
Training schedule • • • • • •
Induction Before the commencement of each activity (toolbox talks) After a systematic failure (incident, accident report) Weekly Monthly As required
I.6.6.3
Project HSE auditing plans
Outline •
•
HSE audits confirm compliance with legal, regulatory and contractual obligations of the company, its subcontractors, project personnel, establishments and equipment. The HSE audit plans are prepared on a yearly basis and performed as scheduled.
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•
HSE audit plans are either internal or external.
I.6.6.3.1
Project HSE internal auditing plan
Process outline •
•
•
The HSE manager will prepare an internal HSE auditing plan in cooperation with the country HSE department manager and the project manager. The auditing plan will be based on the company’s HSE management system provisions, legal, regulatory and contract requirements. Audits will be performed at all stages, phases and locations of the project operations (design, procurement, production, construction, transportation, warehouses, clinic, camps, offices, workshops etc.).
•
Auditors will be appointed by the company HSE manager.
•
The plan will be submitted to the client for information.
I.6.6.3.2
Project HSE external auditing plan
Process outline •
•
•
•
The HSE manager will prepare an external HSE auditing plan in cooperation with the country HSE department manager and the project manager. The auditing plan will be based on the company HSE management system provisions, contract requirements, certification obligations, legal and regulatory constraints and other interested parties acceptable or obligatory requests. Proposed dates and scope of the audits will be agreed in advance. Audits will be performed at all stages, phases and locations of the project operations (design, procurement, production, construction, transportation, warehouses, clinic, camps, offices, workshops etc.).
•
Auditors’ particulars will be advised to the project HSE manager in due course.
•
The plan will be submitted to the client for information.
I.6.7
Project HSE reporting
Process outline •
•
Employees must report all HSE aspects, hazards to their supervisor as soon as it is practicable. All reported accidental leakages and spillages that could cause environmental contamination must be subject to an investigation to determine the cause of the
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incident and how in future a similar incident can be avoided. •
•
•
•
•
•
Employees must seek medical treatment for any injury they may receive, no matter how slight the injury may seem. Upon returning from treatment, the injury must be reported to their supervisor. All first aid, medical treatment must be suitably recorded by the doctor, medical provider or site administrator. Employees must report all incidents, accidents, near misses and dangerous occurrences to their supervisor as soon as it is practicable. The supervisors must report all incidents, accidents, near misses and dangerous occurrences to the site manager and the HSE manager as soon as it is practicable. The site management will report all incidents, accidents, near misses or dangerous occurrences to the country HSE department and to the client as required by the contract conditions. The site management will send HSE performance reports to the country HSE department on a monthly basis and to the client as required by the contract conditions.
I.6.7.1
Reporting a project accident
Process outline •
The overall responsibility for reporting the accident, injury rests with the senior person on site: Manager Superintendent Engineer Supervisor
•
•
•
He/she must inform the project doctor, the project manager, the site manager and the project HSE manager. The site manager will assume or resume responsibilities as the emergency response coordinator, immediately. The project doctor will inform the project management team and the company doctor of the condition of the injured person(s).
•
The project manager will inform the country manager.
•
The project HSE manager will inform the country HSE manager.
•
The project finance & administration manager will inform the country finance &
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administration manager. •
•
•
•
•
The severity of the injuries to any employee (or subcontractor, supplier, client’s representative, visitor, third party) involved should make no difference at all. Even if the injuries are major, minor or insignificant, the same procedure should be followed and all the facts should be brought to the attention of the company management. Even if the person(s) involved considers his/her (their) injuries as minor or insignificant, this should not change the course of the above procedure. A short written report will be submitted by the above-mentioned responsible person giving an outline of the circumstances and nature of the accident and the persons, equipment and plant involved in the accident. In case that an accident occurs, the following steps should be taken to deal with the accident, and initiate an early investigation into cause(s): Injured person(s), if any, should be attended and call for assistance if necessary and arrange for first aid, doctor, ambulance, transportation to the nearest hospital, as applicable Machine, tools or equipment should be isolated Nothing should be disturbed or moved unless to release an injured person(s) The officer in charge should be notified immediately Ensure any remaining hazard is guarded against Take notice of anything significant and make general observations at the scene of the accident
•
Upon getting full information of the accident, injury it will be the project administrator’s responsibility to ensure that the following are done: Injured person(s), under the responsibility of a doctor, medical provider, first aid provider have been immediately transported to the nearest hospital, if necessary, and a medical report is obtained Statements regarding the accident, incident are obtained from the injured person(s), his/her (their) or the area’s engineer, supervisor or foreman and at least one eye witness A police report is obtained, if applicable The case is followed up by the administrator until a medical report is issued stating that the employee(s) is/are “Fit to resume work” An “Accident report” is duly prepared and signed by the responsible engineer, supervisor or foreman, and then it is forwarded to the responsible department, section head (who keeps a copy) for his/her comments and approval of corrective action
•
The completed report is published at the project intranet and copied to: The project manager The site manager
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The project HSE manager The project finance & administration manager The country manager The country HSE manager; The country finance & administration manager Others, depending on the case •
Any accident that caused the death or disability of an employee (or subcontractor, supplier, client’s representative, visitor, third party) must be notified to the responsible authorities within the time-span specified in the applicable laws, by the country finance & administration manager who is responsible for reporting any accident to the insurance company as well when necessary.
I.6.7.2
Reporting project incidents
Process outline •
•
For all incidents, an electronic company form is completed by the engineer, supervisor or foreman of the employee(s) injured or the person in charge of the area, activity where the incident took place, in co-operation with the doctor, medical provider, first aid provider in charge if necessary. The completed form is published at the project intranet and copied to: The project manager The site manager The HSE manager The department head of the respective area The HSE officer
I.6.7.3
Project unsafe acts, unsafe conditions
Process outline •
•
The responsibility in accident prevention is a joint function of management and employees and reporting an unsafe act or unsafe condition is everybody’s responsibility. The management system and other related applicable procedures, method statements and work instructions should be designed to establish communication at the earliest possible opportunity by reporting an unsafe act or condition to the HSE officer and concerned managers, engineers, supervisors or foreman in order to prevent potential hazard that may result to accidents, thus immediate corrective and preventive measures can be taken.
I.6.7.4
Project accident, incident investigation
Process outline
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•
•
•
All major incidents or lost time accidents undergo an investigation by the HSE officer assisted by the engineer, supervisor or foreman of the injured employee(s) or the person in charge of the area, activity where the incident took place. The investigations should take place as soon as possible and always prior to the repairing of plants, equipment, buildings etc. During an investigation the following steps should be pursued: Investigate promptly Record evidence Identify types of the evidence (factual, material, corroborative, opinions, photographs) Interview the injured person, if possible Question the person in charge of the area, activity where the accident, incident took place and other supervisors; obtain details of injured person’s job and what they usually or normally do Interview witnesses Inspect plant and equipment for signs of misuse or defects Establish the full sequence of events Ascertain the nature and extent of injuries and/or damages Identify any underlying OH&S deficiency which may have caused, or contributed, to the occurrence of the incident Complete the accident, incident reports Notify the appropriate authorities
I.6.7.5
Project accident, incident reports
Process outline •
•
•
•
•
•
Incident investigation records should be used to produce performance data that will be used for the monitoring of the environmental, occupational health & safety objectives, targets and control measures as well as of the effectiveness of corresponding corrective and preventive actions taken. The data may also be analyed, reviewed and used to identify any underlying OH&S deficiencies, which may be causing or contributing to the occurrence of incidents A performance data report is prepared monthly by the project HSE manager and reviewed by the project manager. The monthly reports are published at the project intranet. The country HSE manager presents summary yearly HSE performance reports to the country management during the annual management system review. Accident data should include the following, at least:
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Lost time injury frequency rate Accident rate Lost time mean duration I.6.7.5.1
Lost time injury frequency rate
Outline •
•
•
The frequency rate formula uses 100,000 hours to represent a person’s average working life of 50 years at 40 hours per week, and the total number of hours worked in a period. The period may be a week, a month, a quarter or a year. Lost time injury frequency rate = (number of lost time X 100,000)/(total person hours worked in a period).
I.6.7.5.2
Accident rate
Outline •
•
•
The accident rate is easy to use and is based on the number of accidents, taken over a fixed period, per 1,000 employees: Accident rate = (accidents X 1,000)/(number of employees) Direct comparisons between the accident and the frequency rate must never be made, since they are based on a different formula.
I.6.7.5.3
Lost time mean duration
Outline •
•
I.6.8
The mean duration, or average length of time lost per accident, is calculated by the following formula: Mean duration = (number of person hours lost)/(number of lost time accidents) Project HSE performance indicators
Process outline •
•
•
The HSE team will prepare process performance control procedures based on the company HSE management system and the contract particulars. The HSE performance reports, for every discipline and stage of the project, will be based on actual data and their scientific method will be agreed in advance. HSE numerical outcome is usually the basis for relevant performance indicators produced on a monthly basis by the contractor.
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•
•
Health quantitative data are used for monitoring the health condition of individual specialized technicians (like welders), construction teams (like concrete placing teams) or production plants (crushers, concrete or asphalt plants), who are exposed in dangerous health hazards. The HSE performance indicators, usually attached to HSE (weekly, monthly or summary) reports, are published at the project intranet.
I.7
Project emergencies
Outline • • • • •
I.7.1
Construction phase emergencies Project emergency plans Project evacuation plans Project emergency response team Project emergency cost codes Construction phase emergencies
Process outline •
The HSE manager in close co-operation with the site manager: Examines the company’s activities/operations Identifies the cases where situations can occur that may lead to injuries or events that will have an adverse effect: On the health and safety of the employees (e.g. serious or fatal injuries of employees, fires etc.), or To notable equipment damage or To environmental damage or To any combination of them
•
Events that may possibly lead to emergencies are usually any of the following: Events that are expected (almost certain) to affect the ordinary life and circulation in the surroundings for at least 24 hours Incidents or accidents which may have a negative impact on the environment in a large area (pollution, contamination etc.) Serious or fatal injuries of the workers or the public due to company’s activities
•
Other serious events relevant to HSE issues that may: Involve the media, the government and/or the local authorities Affect the ordinary operations of the company
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Affect the company’s public image Affect the company’s financial position •
In order to determine the emergencies, the following are taken into account: The results from hazard identification, risk assessment and risk control measures The availability of local emergency services, data from handling emergency situations as well as agreements with the local authorities Legal and other requirements Experience gained from previous accidents, incidents, ill health, epidemic and emergency situations Reviews of emergency and practice drills performed and the results of subsequent actions
References (indicative list) •
•
•
•
I.7.2
World Health Organization “Health topics” http://www.who.int/topics/en/ © WHO 2017 U.S. Department of Labor Occupational Safety and Health Administration OSHA 3088 2001 (Revised) “How to Plan for Workplace Emergencies and Evacuations” https://www.osha.gov/Publications/osha3088.pdf Legislation Government UK “The Management of Health and Safety at Work Regulations 1999” http://www.legislation.gov.uk/uksi/1999/3242/contents/made © Crown copyright Legislation Government UK “The Dangerous Substances (Notification and Marking of Sites) Regulations 1990” http://www.legislation.gov.uk/uksi/1990/304/contents/made © Crown copyright Project emergency plans
Process outline A.
General •
•
•
Project emergency plans are prepared by the site manager in close cooperation with the HSE manager and approved by the project manager. During preparation of the emergency plans, the desired objectives are clearly stated, so that both the duration and the consequences can be minimised. The following should be considered during the preparation of emergency plans:
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Applicable legislation The nature of the on-site hazards (e.g. flammable liquids, storage tanks and compressed gases and measures to be taken in the event of spillages or accidental releases) The most likely type and scale of an emergency situation or accident The most appropriate method(s) for responding to an accident or emergency situation Internal and external communication plans The action(s) required to minimise environmental damage Mitigation and response action(s) to be taken for different types of accidents or emergency situations The need for a process for post-accident evaluation to establish and implement corrective and preventive actions Periodic testing of the emergency plans Training of the emergency response personnel A list of key personnel and aid agencies, including contact details (e.g. fire department, spillage clean-up services) Evacuation routes and assembly points The potential for an emergency situation or accident at a nearby facility (e.g. plant, road, railway line), and The possibility of mutual assistance from neighbouring organizations •
Emergency plans define the actions needed when emergencies take place, and include: Identification of potential accidents and emergency situations Determination of the person in charge for co-ordination (team leader, cocoordinator), his/her deputy and of the people responsible of the various actions e.g. personnel trained in fire-fighting procedures, first-aid personnel, personnel trained to handle toxic substances’ leakage etc. (team members) Personnel responsibilities and duties with defined roles during the development of an emergency situation Description of the actions that need to take place and the expected response time Description of the actions of the people that could be at the company’s premises during the emergency situation such as suppliers, subcontractors, visitors etc. (which have to be, for example, instructed to report to specific assembly points) Evacuation procedures Identification and location of hazardous materials and actions needed when such materials constitute a cause for emergency situations Interaction with services external to the company Communication with local authorities, neighbours and the public Protection of important records and equipment Details about practice drills Availability of useful information for the management of emergencies (e.g. installations’ layouts, hazardous materials database, procedures, working instructions and phone numbers for contact)
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•
•
B.
The approved emergency plan is published at the project intranet. Following the approval of an emergency plan, a training program of the people involved is performed so that all personnel are advised on their course of action for each emergency when and if it occurs. Emergency communication
•
•
C.
Emergency plans should describe in detail the way in which the management and the company’s personnel, suppliers, subcontractors, visitors, etc. within the company’s premises, sites, camps and offices will be notified. Where needed, the possibility and the process to notify various government and local authorities, the public as well as the media should be foreseen and the appropriate responsible person should be appointed. Emergency equipment
•
Emergency plans also describe the necessary emergency equipment, which should be in sufficient quantity, clearly identified and stored in secured and visible locations for immediate access. Emergency equipment may include: Alarm systems Emergency lighting and power Fire fighting equipment First aid equipment (water sprinklers, emergency showers, eye wash station) Means of escape Transportation Safe refuges Special pumps, critical isolation valves, switches and cut-outs Communication facilities and equipment
•
D.
The emergency equipment is inspected in regular intervals in order to verify its good working condition. Emergency plans’ revision and review
•
•
•
After handling an emergency and the company is again brought to ordinary conditions, the team leader prepares a report with the facts and all relevant information, which is submitted to the HSE manager and the site manager for their review. If the containment of the emergency identified that improvements are needed, the corresponding emergency plan is revised, approved by the project manager, published at the project intranet and all concerned are informed accordingly. The emergency plan is revised when a change takes place (e.g. personnel movements, changes in company premises etc.).
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•
•
E.
The emergency plans are reviewed, in addition to the previously mentioned, on an annual basis in order to find out any possible improvements. The responsibility for the annual review of the emergency plans lies with the site manager and the HSE manager. Practice drills
•
•
•
•
•
•
I.7.3
The HSE manager and the site manager have the responsibility to periodically inspect and verify the level of the personnel’s preparedness for managing emergencies. This is done by conducting practice drills (e.g. a hypothetical fire), in order to test the corresponding emergency plan and verify its effectiveness. The frequency of practice drills is defined in each emergency plan. After a practice drill has been performed, the team leader reports the results to the HSE manager and the site manager. The report contains details of the drill (response time, team members’ performance, photographs, videos etc.). In case of unsatisfactory results, the emergency plan may be revised. Project evacuation plans
Process outline •
•
•
In the event of an emergency, protecting the health and safety of everyone in the premises of the project should be the first priority. A controlled evacuation should be planned, organised and implemented when considered necessary. An evacuation may be required in cases of: Chemical spills Civil war Earthquakes Epidemic outburst Explosions Extreme weather conditions Fires Floods Hurricanes Interested parties’ violent protests Radiological accidents Social unrest Terrorist attacks
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Tornadoes Toxic gas releases Workers’ uprising Workplace violence resulting in bodily harm and trauma •
•
•
•
•
•
I.7.4
Concise evacuation plans will be prepared for each one of these hypothetical situations by the project management team. Geographically the company may need to isolate, secure and evacuate its personnel from an area, a project or a country depending on the significance of the emergency. The plans for evacuations in the vicinity of the project will be approved by the project manager and published at the project intranet. The plans for town or country evacuations will be reviewed by the project manager, approved by the country or the company management accordingly and published at the project and the company intranets. Practice drills will be performed on paper or combined with other emergency drills. An evacuation might be very expensive if the emergency is not assessed correctly at the initial stages. Project emergency response team
Process outline •
•
•
A project emergency response team (PERT) will be established, authorised, trained and be ready to deal with all kinds of emergencies. The duties of the PERT members will be clearly identified in the emergency plan. Members of the PERT: Project manager as chairman Site manager as deputy chairman HSE manager - HSE issues Construction manager - workforce Technical & controls manager - telecommunications Plant manager - equipment Chief administrator - liaison Project doctor - medical
•
•
PERT will perform its duties in compliance with the applicable legislation, the company management systems and protocols and the contract conditions. PERT will co-operate closely with the company management, the client, the
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local authorities, the media and the public. •
Flow of information (as required, depending on the significance and the severity of the emergency): Project emergency response team (PERT) Country emergency response team Region emergency response team Company emergency response team Company executive committee
•
•
PERT will perform company scale emergency drills, on paper. All emergency description, cause, response and containment final reports will be compiled by the PERT, approved by the most senior executive who authorised the control measures and published at the company intranets.
I.7.5
Project emergency cost codes
Outline •
•
A specific project cost code will be established, for each emergency, where all the expenses related to the particular emergency, will be charged. The summary of the costs of each emergency will be mentioned in the corresponding final report.
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Chapter J Pre-commissioning & mechanical completion Index • •
Pre-commissioning & mechanical completion plan Systems/subsystems selection procedure
J.1
Pre-commissioning & mechanical completion plan
A proposed indicative “Pre-commissioning & mechanical completion plan” is outlined here below. Index 1. 2. 3. 3.1. 3.2. 3.3. 3.4. 3.5. 3.6. 3.7. 4. 5. 6. 6.1. 6.2. 6.3.
Scope References Description Prerequisites for pre-commissioning tasks Pre-commissioning stage priorities Execution of pre-commissioning tasks - mechanical completion HSE Manpower & equipment requirements Vendor specialists Pre-commissioning documentation Forms Records Attachments Pre-commissioning - contract requirements Pre-commissioning & mechanical completion priority plan Pre-commissioning organization chart
1.
Scope
The scope of this plan is to describe the documentation requirements, tasks and priorities for the smooth, safe and controllable execution of pre-commissioning and mechanical completion activities by the contractor. The project contains wet crude handling and gas compression, salt-water disposal, water supply systems, centralised water injection, power supply and associated mechanical, electrical, instrumentation and utility systems. 2. 2.1. 2.2. 2.3. 2.4. 2.5. 2.6.
References Contract documents Project management plan Project construction plan Project quality plan Project HSE plan Systems/subsystems selection procedure Page 460 of 495
2.7. 2.8. 3. 3.1.
Systems/subsystems list Pre-commissioning witnessing procedure Description Pre-requisites for pre-commissioning tasks
The pre-commissioning activities will commence when the documentation, as analytically described in this paragraph, will be ready (procedures, checklists, markup drawings, etc.) and as soon as the construction works are finished and the punch list items are cleared. The main document, which is used as a guide for the initialization of the precommissioning activities, is the systems/subsystems list. The main requirement, that a subsystem should comply with, is autonomy. Thereby each subsystem shall be as stand alone as possible, with minimum interaction with other subsystems. The subsystems’ delimitation is analytically described in the systems/subsystems selection procedure. The systems / subsystems list, will be officially submitted to the client for approval before the commencement of any pre-commissioning activity at the site. For the execution of pre-commissioning activities, mark-up drawings (P&IDs, signal diagrams, etc.) shall be prepared by the designer. These diagrams shall indicate in a simple way the battery limits of each subsystem in accordance with the systems/subsystems selection procedure. The pre-commissioning procedure, pre-commissioning inspection checklists and test reports, developed in accordance with the relevant inspection & test plans, will be the main documents for the execution of the pre-commissioning works. 3.2.
Pre-commissioning stage priorities
The pre-commissioning activities will be set up taking into consideration the construction time schedule and the priorities established in the “project construction plan”. To obtain the best results from the available resources (work force, equipment) and in the same time to avoid conflict between the various disciplines, the precommissioning activities will follow a priority plan, which is analytically described in this section. The priority execution plan has been divided in five stages from A to E. Priority stage A
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•
•
The main priority for pre-commissioning, commissioning and start-up should be the “water injection facilities” and the electrical and instrumentation devices associated with the water injection system. Facilities required for accumulation of wastewater should be also included in priority stage A.
Priority stage B •
The subsystems which are pre-commissioned in stage B will be: All the electrical subsystems including the emergency diesel generator Safety facilities such as: Water supply Fire, utility, wash water tank(s) Electrical fire water pumps Diesel fire water pump and diesel fuel system Fire water jockey pumps Fire water distribution network Fire fighting equipment (hydrants, monitors, fire water hoses) Nitrogen generation package & distribution network Fire & gas detection system (F&G) Emergency shutdown system (ESD) Distributed control system (DCS) Electrical control system (ECS)
Priority stage C •
Stage C will include the pre-commissioning works for: Crude produced system Depressurizing system Gas gathering system facilities Utility water distribution subsystem
•
Assumption: the main activities for electrical systems and fire fighting systems are completed before the beginning of pre-commissioning stage C.
Priority stage D •
Stage D will include the pre-commissioning works for: Electrical heat tracing system Cathodic protection system Potable water system and distribution Steam distribution system Security & communication subsystems Chemical injection subsystems
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Priority stage E •
3.3.
Stage E will include the pre-commissioning works for civil constructions. Execution of pre-commissioning tasks - mechanical completion
As soon as: • • •
The construction works are completed, The relevant inspections are performed and The punch lists are cleared and signed off by the client’s inspection team,
then the pre-commissioning works will start, according to dedicated and approved procedures and work instructions. The pre-commissioning works’ target will be the mechanical completion. The pre-commissioning activities in stage A will include: • • • • •
The water injection pumps, The injection water scraper receiver, The instrumentation devices which are associated to water injection facility, The electrical subsystems which provide power to water injection pumps, The instrument & plant air packages and the associated distribution networks.
Usually the equipment, static or rotating, will be pre-commissioned together with allocated electrical and instrument equipments, cables, junction boxes, etc. Pre-commissioning activities for the instrument and plant air generator package will be independently performed as part of the distribution network. Facilities required for the accumulation of wastewater will be completed before the commencement of the main pre-commissioning activities. Since the water injection facilities are non-hazardous, the pre-commissioning activities can commence without the functioning of the fire fighting system, that will be performed later on, in stage B. However, to ensure that the concerned area will be completely safe, a fire fighting truck will be present during these activities. The electrical subsystems, the fire fighting subsystems, the nitrogen generation package & distribution and the electronic subsystems (F&G, DCS, ESD, etc.) will be pre-commissioned in stage B. For each distribution switchboard or switchgear of the electrical distribution system the pre-commissioning activities will be performed separately. Upstream transformer and cables will be parts of the dedicated switchboard or switchgear.
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All the electrically powered devices will be allocated to the process or utility subsystems. For example, when the electrically powered device is a motor, then the power and control cables and the electrical motor will be included in the process subsystem. The multicore cables, which are connected with equipment belonging to different subsystems, shall be separately pre-commissioned. The junction boxes will be also part of this operation. The multicore cables, which are connected to equipment of a single subsystem, together with the junction boxes, will be pre-commissioned with the dedicated process subsystem. The activities for the fire fighting subsystems will be performed in such a way so that: • • • • • • • •
The water supply, The fire water tank, The electrical fire water pumps, The diesel fire water pump, The diesel fuel system, The fire water jockey pumps, The fire water distribution network and The fire fighting equipment (hydrants, monitors, fire water hose)
will be pre-commissioned separately. Parallel to the execution of pre-commissioning works for the above subsystems, the activities for: • • • •
The fire & gas detection system (F&G), The emergency shutdown system (ESD), The distributed control system (DCS) and The electrical control system (ECS)
will be deployed. Taking into consideration the complexity of the above subsystems, these may be completed during stage C. The distributed control system (DCS) will be pre-commissioned as a stand-alone subsystem from the input to the output racks. Outgoing wiring to individual loops will be allocated to process or utility equipment as either open or closed loops. The emergency shut down (ESD) system will be also pre-commissioned alone from the input to the output racks.
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Input and output loops will be allocated to process or utility equipments as the outgoing wiring of DCS subsystem. The fire and gas (F&G) system will be pre-commissioned alone from the input to the output racks including the open loops. In addition, for the execution of future pre-commissioning works, the nitrogen generation package & distribution network shall be available at the end of stage B. The activities for the nitrogen generator package will be performed independently from the distribution network. The pre-commissioning works for the process subsystems, like the crude produced system, the depressurizing system and the gas-gathering facilities will be executed during stage C. Because of the systems’ complexity, completion of the works may be achieved during the first period of stage D. In addition, during stage C, the utility water distribution subsystem will be precommissioned. Stage D, will be reserved to complete the remaining works from previous priority stages and to execute the pre-commissioning activities for the rest of the subsystems. At this stage, the work will be concentrated on: • • • • • •
The electrical heat tracing system, The cathodic protection system, The potable water distribution system, The steam distribution system, The security subsystems and The chemical injection subsystems.
The electrical tracing pre-commissioning activities will be performed in such a way that will separate the supply cables and the associated junction boxes from the trace heating tapes, which will then be grouped into the process or utility subsystem to which the piping is allocated. Splitting the pre-commissioning activities in disciplines, the main operations, which shall be performed during the pre-commissioning stage, according to the respective inspection and test plans, will be: •
Electrical: Insulation and continuity test for electrical cables Run-in tests for un-coupled electrical motors and vibration tests Vendor’s checks and tests for various electrical equipment (switchgear,
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switchboard, etc.) Electrical tests for the lighting and task system UPS system pre-energization inspection & testing Cathodic protection inspection and functional testing Electrical heat tracing testing •
Mechanical: Hydrotesting of the above ground and the underground piping systems Hydrotesting of the tanks Flange joint, gasket verification and bolt tightening Piping internal cleanliness (flushing) and dry-out Piping reinstatement Piping tightness, leak test Equipment inspection, cleaning and close-up Equipment tightness test Steam blowing and pickling, chemical cleaning Hot insulation and complete painting inspection Eyewash, showers -Inspection and functional testing Rotating equipment alignment and coupling Relief valve testing Inspection and manual valve stroking
•
Instrumentation: Instrument field calibration and testing Motor-operated valve (MOV) and control valve (CV) field testing, calibration and energised functional testing Cable continuity and insulation resistance testing and cable termination torque testing Fibre optic cable inspection and testing Instrumentation control loop checking Electronic control system (DCS, ESD, PLC, F&G) inspection and test Pneumatic and leak tests for instrument piping and tubing
•
HVAC HVAC system testing, adjusting and balancing
Upon completion of the pre-commissioning activities, a mechanical completion certificate for each subsystem will be issued by the contractor and approved by the client with a pre-commissioning punch list attached to it or as provided in the contact conditions. 3.4.
HSE
The HSE requirements during pre-commissioning works will comply with the approved “Project HSE plan”. 3.5.
Manpower & equipment requirements
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The contractor shall provide the required assistance for the following: • • • • • • • • • • • • • • • • • • •
3.6.
Process control system Gas compressors (HPPT, LPPT, pipeline & stabilizer overhead) Process pumps (water injection, water disposal, crude buster, crude shipper) Fire water pumps Vessels (LPPT, HPPT, WOSEP) Instrument air compressor packages TEG dehydration package Flare Foam skids and nozzles Paging system Fire detection system Protection relays Stabilizer 230/13.8 kv power transformers Switchgear SFD breakers Pipe heating trace HVAC UPC and DC systems Communication equipment Vendors’ specialists
Vendors’ representatives shall be present on site to ensure a proper precommissioning of the equipment as necessary to maintain vendor warranties and as required to successfully achieve the mechanical completion. 3.7.
Pre-commissioning documentation
Documentation dossiers shall be provided by the contractor for all subsystems. One dossier will be dedicated to each subsystem; it will be organized as follows: Index of subsystem dossier 1. Mechanical completion certificate and punch list 1.1. Mechanical completion certificate 1.2. Consolidated punch list 2. Marked-up drawings 2.1. Symbols list 2.2. Subsystem marked-up drawings 3. Mechanical discipline 3.1. Index of mechanical pre-commissioning activities and procedures 3.2. Mechanical equipment tag number index 3.3. Client’s inspection checklist forms 3.4. Client’s test report forms
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4. Piping discipline 4.1. Marked-up drawings 4.2. Index of piping pre-commissioning activities and procedures 4.3. Piping list index 4.4. Client’s inspection checklist forms 4.5. Client’s test report forms 5. Electrical discipline 5.1. Index of electrical pre-commissioning activities and procedures 5.2. Electrical equipment tag number index 5.3. Electrical cables and conduits tag number index 5.4. Client’s inspection checklist forms 5.5. Client’s inspection checklist forms 5.6. Client’s test report forms 6. Instrumentation discipline 6.1. Index of instrumentation pre-commissioning activities and procedures 6.2. Instruments tag number index 6.3. Instrumentation cable tag number index 6.4. Client’s inspection checklist forms 6.5. Client’s test report forms
4.
7.
Other documents
8.
Vendors’ documentation
Forms
Sample forms are attached to the project pre-commissioning & mechanical completion plan. 5.
Records
The project pre-commissioning & mechanical completion plan and its attachments are maintained at the project office until the end of the liability period. 6.
Attachments
6.1. 6.2. 6.3.
Pre-commissioning - contract requirements Pre-commissioning & mechanical completion priority plan Pre-commissioning organization chart
J.2
Systems/subsystems selection procedure
A proposed indicative “Systems/subsystems selection procedure” is outlined here below. Systems/subsystems selection procedure
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Index 1. Scope 2. References 3. Description 3.1. System/subsystem numbering 3.2. Subsystems definitions 3.2.1. Subsystems boundaries 3.2.2. Subsystems relation to planning activities 3.2.3. Subsystems closure 3.3. Subsystems delimitation rules 3.3.1. Delimitation rules for process & utilities’ subsystems 3.3.2. Delimitation rules for instrumentation subsystems 3.3.3. Delimitation rules for electrical subsystems 3.3.4. Delimitation rules for telecommunication subsystems 3.4. System/subsystem control 4. Forms 5. Records 6. Attachments 1.
Scope
The present document provides guidelines for systems/subsystems’ definition. It explains the methodology adopted in dividing the project into manageable sized portions that will enable the pre-commissioning, commissioning and start-up activities to be performed in a more efficient way. This project breakdown into sections is called systems/subsystems approach, and their selection and control process is analytically described in this procedure. 2. 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 3. 3.1.
References Contract documents Project management plan Project construction plan Project quality plan Project HSE plan Systems/subsystems list Pre-commissioning & mechanical completion plan Description System/subsystem numbering
The systems and the subsystems are numbered using a three digits code. More specifically each system is defined by a hundred series number, while the subsystems are identified by sequential numbers associated to the systems’ hundred numbering.
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For this exercise, the following systems have been considered: Code system description 100 200 300 400 500 600 700 800 900
Critical & safety Crude produced system Depressurizing system Water injection system Gas gathering facilities Electric energy Chemical injection system Other utilities Civil constructions
3.2.
Subsystems’ definitions
3.2.1.
Subsystems boundaries
The main guideline, that a subsystem should comply with, is autonomy. In this respect, each subsystem shall be as stand alone as possible with the minimum amount of interaction with other subsystems. Each subsystem limits will be defined following the guidelines described in paragraph “3.3 Subsystems delimitation rules”. Although the limits of systems and subsystems are defined at an early stage of the project, every effort will be exercised in order to minimise the need to revise these limits every time the engineering documents are revised. Besides that, many other factors, which can have influence on these boundaries, shall be considered such as delivery constrains, start-up sequence, resources availabilities, utilities’ availability etc. 3.2.2.
Subsystems relation to planning activities
The subsystem delimitation approach shall be utilised for the planning of the project activities. The start-up sequence and subsystems priorities shall be agreed between construction, pre-commissioning and commissioning teams as soon as the systems/subsystems definition has been completed. The main target is that one or more subsystems are part of one planning activity and that the split of subsystems to different planning activities is avoided. 3.2.3.
Subsystems closure
Each subsystem shall be considered as closed out when all the related works are
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completed and the responsibility for that subsystem is transferred from the precommissioning to the commissioning and start-up team. This means that the subsystem definition and boundaries determination shall be performed taking into consideration the vendor delivery dates, specialist availability, utilities availability and spare parts and lubricants availability. 3.3. 3.3.1.
Subsystems delimitation rules Delimitation rules for process & utilitiesâ&#x20AC;&#x2122; subsystems
A general rule for process or utility subsystem boundaries delimitation (point of limitation) will be, wherever possible, an isolation valve, allocated to the subsystem which shall be pre commissioned or commissioned first (highest priority). If a blind is necessary to be installed the subsystem limit will be at the most suitable flange. For flare subsystems the delimitation boundary shall be downstream of safety valve, PCV, blow down valves. For diesel oil, inert gas network, utilities water, plant, instrument air and chemical injection, the subsystems limits will be downstream of the last isolation valve before each consumer. Fire fighting subsystems will be delimitated in such a way so that the fire water tank, the firewater pumps, the firewater network and the fire water equipment will be commissioned separately. Usually the equipment, static or rotating, will be separated by subsystems upstream and downstream to an isolation valve. Plant and instrument air and inert gas subsystems delimitation shall be decided so that pre-commissioning and commissioning activities for the packages will be performed independently from the distribution network. The vendor packages may also be designated as subsystems. 3.3.2.
Delimitation rules for instrumentation subsystems
A process control loop will preferably be allocated to the process or utility subsystem where the measuring device is installed. The distributed control system (DCS) is considered as a stand-alone subsystem from the input to output racks. Outgoing wiring to individual loops will be allocated to process or utility subsystems as either open or closed loops. Emergency shut down (ESD) system will be a stand-alone subsystem from the input
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to output racks. Input and output loops will be allocated to process or utility subsystems as the outgoing wiring of the DCS subsystem. Fire and gas (F&G) system will be a stand-alone subsystem from the input to output racks including the open loops. When there is an interface between an instrument and electrical based subsystem, the instrument limit will be at the terminals of the item of electrical equipment as shown on the loop diagrams. 3.3.3.
Delimitation rules for electrical subsystems
The electrical distribution network will be divided in such a way that each distribution switchboard or control gear will be a separate subsystem. Upstream transformer and cable are parts of a dedicated switchboard or switchgear. Any electrically powered device will be allocated to the process or utility subsystems. For example, where the electrically powered device is a motor, then the supply and control cables and the motor will be included in the process subsystem. The supply cables and associated junction boxes for electrical tracing will be grouped in an electrical subsystem. Trace heating tapes will then be grouped into the process or utility subsystem to which the piping is allocated. The uninterrupted power supplies (UPS) will be allocated to a dedicated subsystem including the batteries, battery chargers and associated panels. The multicore cables that are connected to equipment belonging to different subsystems will be included in a specific multicore cable subsystem. The subsystem limits will be: • • • •
The output racks in the technical room The field junction boxes The junction boxes will be also part of the multicore cables subsystem The multicore cables which are connected to equipment with the junction boxes to that subsystem
3.3.4.
Delimitation rules for telecommunication subsystems
Public address will be a separate subsystem consisting of the loudspeakers, beacons, electrical and instrument cables, junction boxes, amplifiers and the equipment associated with in the control room.
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Surveillance cameras’ CCTV system will be a separate subsystem including field cameras and receiver units, camera control panels and display monitors in the control room. The weather station will be a separate subsystem consisting of the programmable data acquisition unit (PDAU), the interconnecting cables between PDAU and the sensors located either in field or inside the control room. 3.4.
System/subsystem control
The systems/subsystems that will be defined in accordance with paragraphs 3.1, 3.2 and 3.3 above shall be included in a list. The systems/subsystems list shall be submitted to the client for approval. Upon receipt of client’s approval, a set of P&IDs and SLDs drawings will be marked-up to define the limits and content of each subsystem. Subsequent engineering revision of these drawings will not require the updating of the mark-up drawings unless addition of major lines and/or equipment or items has taken place. The pre-commissioning team leader’s responsibility is to check and verify, before the physical commencement of pre-commissioning activities, that the revision number of the marked-up set of drawing is the approved for construction (AFC) one. Otherwise, the subsystem(s) boundaries will be marked-up again on the AFC issue of diagrams. 4.
Forms
Sample forms are attached. 5.
Records
The procedure and its attachments are maintained at the project office until the end of the liability period. 6. 6.1. 6.2. 6.3.
Attachments Pre-commissioning - contract requirements Pre-commissioning & mechanical completion priority plan Pre-commissioning organization chart
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Chapter K Project completion & handing over Outline •
Prerequisites for the project “unified” completion certificate issuance (indicative list) Pre-commissioning & mechanical completion implemented and signed-off Punch list items (construction, quality, HSE & pre-commissioning) cleared Project documentation submitted Quality documentation submitted HSE documentation submitted Project areas’ restored Waste disposal areas treated, restored Quarries areas treated, restored Demobilisation (with the exception of the units required for the maintenance period) completed Preliminary handing over certificates of all parts/sections issued
•
•
Final account agreed/paid or sent for resolution to an arbitration jury and/or a competent court of law Retention money released
Index • • • • • • •
Construction & pre-commissioning punch list items clearing Project documentation handing-over Connections with domestic utilities and transportation systems Temporary facilities areas restoration Waste disposal areas handing-over Borrow pits & quarries’ reinstatement Demobilisation
K.1
Construction & pre-commissioning punch list items clearing
Outline •
•
•
In theory, if a proper inspection process is introduced and implemented from day one, then the client or the contractor should introduce a very short punch list of items that require correction, improvement or rectification, until the end of the pre-commissioning activities. In practice, client & contractor supervisory personnel move constantly around the site and keep on writing remarks for any anomalies that are valid (in their opinion) to report. This, highly advisable, process reduces the risk of failing to notice, mark and rectify a fault that was missed out by the control measures and that may cause
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unpredictable situations in the future. •
•
•
•
•
The remarks are inserted in the client’s inspection monitoring system and conveyed officially to the contractor, who is given a controlled, under strict protocol single-entry access to the system, for its necessary action, as, and if, stipulated by the contract conditions. That way, a punch list for an industrial oil & gas facility may include thousands of items -justified or not- that have to be inspected, corrected -if required- and closed-out. The items will be marked as closed-out in the client’s system after systematic daily meetings where the remarks will be challenged as invalid or proof of remedial action will be presented. All the items for each discipline should be closed-out before the handing over certificate for any part of the works is signed and issued. All these partial completion certificates will be attached to the “Preliminary handing over certificate” the issuance of which marks the date of the project completion and the commencement of the maintenance period.
K.2
Project documentation handing-over
Outline •
•
•
The contract conditions usually specify which documents the contractor should hand-over to the client in hard and electronic copies. The hard copies are bonded in folders with defined texture, shape, size, colour(s) and title(s) for each different type of documents. Typical groups of files might be: Contractual Authorisations Approvals of key personnel Signed contract Licenses, permits, approvals • Project • Sites • Quarries • Production units Changes Guarantees Insurances Invoices • Monthly • Final account
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Claims As-built schedule Handing over certificates • Start-up • Completion Other (as may be required by the contract conditions) Design (for each designer) Technical description(all materials & parts of the works, plant) Specification (all materials & parts of the works, plant) Construction drawings (all disciplines and parts of the works, plant) As-built drawings (all disciplines and parts of the works, plant) Design controls’ documents (all parts, stages and disciplines) Calculations (all parts, stages and disciplines) 3D models [(all parts of the works, plant), (electronic & hard)] Other (as may be required by the contract conditions) Procurement (for each supplier, material) Unprized purchase order Inspection assignment package Inspection records Manufacturer’s data report Material(s) certificates Other (as may be required by the contract conditions) Construction & pre-commissioning Construction management plan Construction procedures Construction records Quality control documentation • Inspection & test plans • Requests for inspection • Inspection checklists • Inspection records • Testing records Pre-commissioning & mechanical completion plan Pre-commissioning procedures Pre-commissioning records Punch list items As-built drawings (all disciplines and parts of the works, plant) Valuations Other (as may be required by the contract conditions) •
K.3
The folders will be handed over to the client soon after the handing-over certificates are issued. Connections with domestic utilities and transportation systems
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Outline •
Domestic utilities networks Electricity Water Sewage Gas
•
Domestic transportation networks Roads & highways Railways Airports Ports
•
•
Specific design will be prepared for every connection with domestic utilities and transportation systems. The designer(s) will take into consideration the following elements: Applicable legislation Applicable codes & standards (national & international) Applicable specification Applicable construction regulations Applicable environmental protection regulations Applicable health & safety regulations Contractual requirements Licensing process Submissions process Client Authorities Owner(s) of the network (public or private) Approvals process Client Authorities Owner(s) of the network (public or private) Certification process Client Authorities Owner(s) of the network (public or private)
•
•
The design inputs for the connections will form a basic part of the project design inputs. The client should have shorted out all issues related to each connection, and signed agreements with the authorities and the owners of the networks, before inviting contractors to tender for the project.
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•
•
•
•
•
Each agreement should specify in detail all technical, quality, environmental and occupational health & safety requirements for the connection as for a complete independent project. It is proposed that the contractor requests all such agreements be included in the contract documents, before signature of the main contract for the project, or reserve its rights, to avoid inflated cost and time risks in the future. Connections to networks are high risk and hazardous parts of the project and should be treated as such. The design, procurement, construction, commissioning and handing-over activities for each connection will be managed as any part of the works in the critical path. The construction procedure for each connection should detail all impacts of the connection to the domestic environment (humans, habitat, flora, and fauna), the corresponding protection measures and the transfer process of this information to those who are affected.
K.4
Temporary facilities areas restoration
Outline •
•
•
The areas where the temporary facilities were built will be cleared and restored as and when specified by the contract conditions. A project specific work instruction for the restoration activities will be prepared by the contractor and submitted to the client for approval, before commencement of any restoration works. The work instruction will contain: Restoration requirements & specification Detailed design Drawings Calculations Procurement of materials Construction method statement Inspection process Environmental protection measures Health & safety issues Work implementation period
•
•
The demobilisation and the consequent restoration works usually start before the preliminary handing-over certificate is issued, as the workforce is reduced, and is completed early in the maintenance period, as practical. The maintenance team may be accommodated in the client’s camp or in nearby towns or villages, and transported to the site for the maintenance works, as
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required, or the works may be subcontracted to an approved local contractor. K.5
Waste disposal areas handing-over
Please see also chapter “I.6.2 Project waste management plans”. Outline •
•
•
•
•
•
•
The environment agency and local authorities enforce waste management, disposal laws. The contractor might not dispose any waste soon after the preliminary handing over certificate is issued, as the maintenance team may be accommodated elsewhere or the maintenance works are sublet to an approved contractor. In any case, the waste disposal areas, ranging from low risk waste through to hazardous toxic waste, should be handed over to the local authorities or the client, at some stage, when the contractor does not use them any more. Provided that the contractor has constructed, operated and maintained proper, contained and secure waste disposal areas for all different types of waste, that have been regularly inspected by the environmental agency and local authorities, it should not take long or huge efforts to hand-over these areas. It is proposed that the process for this transfer of responsibilities/liabilities be agreed by all interested parties, in advance, and inserted in the waste management plan. It is essential that a joint inspection takes place by all interested parties at the end of the maintenance period and the authorities issue a “liabilities release” certificate to the contractor. That way one of the hazardous and risky chapters of the project is closed.
K.6
Borrow pits & quarries’ reinstatement
Please see also chapter “I.2.5 Quarries”. Outline •
•
•
The reinstatement of borrow pits and quarry areas requirements should be specified in the lease contract that has been signed by the land owner and the contractor, and the licenses/permits that have been issued by the authorised law enforcement environmental and local authorities. It should be included in the project environmental management plan. At the completion of operations, the contractor should dismantle and demobilise all infrastructure and production units, store the stockpiles of materials in a safe manner, and clear all quarry fronts from loose rocks.
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•
•
•
•
•
•
•
•
•
•
Excavated soils should be retained and stockpiled for reuse during restoration. Care should be taken to minimise damage to soil structure and to other characteristics necessary for the growth of vegetation. No stockpiled materials should be stored in buffer zones, which are adjacent to sensitive areas. Soil heaps should be designed to be stable in periods of wet weather. Measures aimed at reducing the visual impact of a quarry can often have positive benefits for the flora and fauna of an area. For example, screening a quarry through the planting of trees using native species can provide habitats and food resources for wildlife. The specified and agreed by all parties (with the approval of the environmental management plan, the lease agreements and the issued licenses/permits) reinstatement works should be completed before the interested parties are invited for a final inspection. When all the works are inspected and found to be acceptable, the contractor will prepare an as-built dossier for each pit/quarry and submit them to the client and the authorities that issued the licenses/permits for their review and approval. Following the approval of each dossier, the client and/or the regulatory or the local authorities will issue a relevant “handing-over/acceptance” certificate to the contractor (as applicable). These certificates should release the contractor from any responsibility, liability, related to borrow pits and quarries it has utilised for the project from that date onwards.
Reference •
MAIN ROADS Western Australia “Specification 303 Pits & Quarries 303.29 PIT AND QUARRY REINSTATEMENT 303.30 REVEGETATION” https://www.mainroads.wa.gov.au/Documents/Spec%20303%2021%20Aug%20 2009.u_2571636r_1n_D09%5E23288978.PDF Copyright MAIN ROADS Western Australia
K.7
Demobilisation
Outline •
A demobilisation plan is prepared at the project start-up phase and attached to the “Project management plan”.
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•
•
•
•
•
•
•
•
•
•
The plan is prepared, jointly, by the technical, construction & plant departments and approved by the site or the project manager. It takes into consideration the data of the original detailed schedule. The plan will probably be changed during the course of the project to adapt to the actual situation. When the project reaches its peak and the descent of resources commences the technical department will finalise the plan and prepare an analytical table of demobilisation activities with estimated commencement and completion dates and resources’ requirements. Reinstatement or restoration activities as specified in the “Environmental and occupational health & safety plan” are also included. The plan will be reviewed by all members of the project management team and approved by the project manager. The plan will be communicated to the country and the company management for their input for the elements that will be reused in other projects or sold (port cabin, prefabricated units, equipment etc.). The construction and the plant departments will implement the plan. The main parts of the demobilisation activities are completed soon after the project preliminary handing over while the remaining during and at the end of the maintenance period. The demobilisation is considered complete when the presence of the contractor cannot be noticed anywhere, with the exception of the project informatory notice boards.
K.8
Closing-out report
Outline •
•
•
The project management team and all the task owners will prepare a summary closing-out report at the end of the project. The report will contain information from tender stage and until the final handing over stage. The report will be prepared in stages, starting from the day when the chief estimator will hand over the project dossier to the project manager.
•
The report will be enriched continuously during the course of the project.
•
The report will be completed in stages, before any task owner is released.
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•
•
•
•
•
•
•
•
•
The various parts of the report will be prepared and signed by the task owners, checked by the respective discipline managers and reviewed by the quality and the project managers. This package will be sent to the executive committee and the country management for their consideration and necessary action. On top of the above, the project task owners, (at all levels), will prepare confidential closing-out reports that summarize their professional and personal experience on this project -item 1.4. Standard company procedures, formats and guidelines will be applied for these confidential reports. Each part of the report will be prepared (including, attaching any document that supports his/her views, findings, and comments) and signed by the respective task owner who will send it -under strict confidentiality protocol- to the project manager. The submission of this report may release the task owner of his/her responsibilities -but not liabilities- under the employment contract for this project, as justification may be required for claims or statements made, by the top management of the company. The project manager will collect all such reports in sealed envelops, split them in discipline packages and send the packages -under strict confidentiality protocol- to the members of the executive committee who correspond to the discipline of the task owner -for example the quality control supervisor’s to the company quality director etc.- for their process, consideration and necessary action. The project manager will send his/her own report to the chief executive officer of the company, under strict confidentiality protocol. Depending on the size and the magnitude of the project, the report may contain the following parts: Closing-out report index 1 1.1 1.2 1.2.1 1.2.2 1.2.3 1.3 1.4
General Introduction Project Owner Project Description Reference documents Summary Task owners’ reports
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2
Tender Stage
2.1 2.2 2.3 2.3.1 2.3.2 2.3.3 2.4 2.5 2.6 2.7 2.8 2.9 2.9.1 2.9.2 2.9.3 2.9.4 2.10 2.10.1 2.10.2 2.10.3 2.10.4 2.11 2.12 2.13 3
Summary Tender documents Contractor’s team Adequacy Competence Performance Deadlines Correspondence at tender stage Tender review Submission Contract award & signature Administrative issues Human resources Travel Visas Security Financial issues Guarantees Loss & profit account Financing Debt Risk assessments Constraints Lessons learned
Engineering & procurement
3.1 Project Management 3.1.1 Contract 3.1.2 Contractor’s team 3.1.2.1 Adequacy 3.1.2.2 Competence 3.1.2.3 Performance 3.1.3 Client’s Team 3.1.4 HO support 3.1.5 Planning & reporting 3.1.6 Planned vs. actual completion dates 3.1.7 Administrative issues 3.1.7.1 Human resources 3.1.7.2 Travel 3.1.7.3 Visas 3.1.7.4 Security 3.1.8 Financial issues 3.1.8.1 Budget vs. expenses 3.1.8.2 Guarantees 3.1.9 Workplaces 3.1.10 Facilities 3.1.11 Risk assessments
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3.1.12 Constraints 3.1.13 Lessons learned 3.2 Engineering Management 3.2.1 Scope 3.2.2 Contractor’s team 3.2.2.1 Adequacy 3.2.2.2 Competence 3.2.2.3 Performance 3.2.3 Client’s team 3.2.4 Client’s engineering specification 3.2.5 Engineering subcontractors 3.2.5.1 Scope of Work 3.2.5.2 Subcontractor’s team 3.2.5.3 Performance 3.2.6 Administrative issues 3.2.6.1 Human resources 3.2.6.2 Travel 3.2.6.3 Visas 3.2.6.4 Security 3.2.7 Financial issues 3.2.7.1 Budget vs. expenses 3.2.7.2 Guarantees 3.2.8 Planned vs. actual completion dates 3.2.9 Risk assessments 3.2.10 Constraints 3.2.11 Lessons learned 3.3 Procurement Management 3.3.1 Scope 3.3.2 Contractor’s team 3.3.2.1 Adequacy 3.3.2.2 Competence 3.3.2.3 Performance 3.3.3 Client’s team 3.3.4 Client’s procurement specification 3.3.5 Suppliers 3.3.5.1 Scope of supply for each supplier 3.3.5.2 Performance of each supplier 3.3.6 Administrative issues 3.3.6.1 Human resources 3.3.6.2 Travel 3.3.6.3 Visas 3.3.6.4 Security 3.3.7 Financial issues 3.3.7.1 Budget vs. expenses 3.3.7.2 Guarantees 3.3.8 Planned vs. actual completion dates 3.3.9 Risk assessments 3.3.10 Constraints 3.3.11 Lessons learned 3.4 Quality Management
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3.4.1 3.4.2 3.4.2.1 3.4.2.2 3.4.2.3 3.4.3 3.4.4 3.4.5 3.4.5.1 3.4.5.2 3.4.6 3.4.7 3.4.7.1 3.4.7.2 3.4.7.3 3.4.7.4 3.4.8 3.4.9 3.4.10 3.4.11 3.4.12 4 4.1
Scope Contractor’s team Adequacy Competence Performance Client’s team Client’s specification Third party inspection agencies Inspectors’ performance Agencies performance Reporting Administrative issues Human resources Travel Visas Security Budget vs. expenses Risk assessments Constraints Lessons learned Project thesaurus
Construction Project Management
4.1.1 4.1.2 4.1.2.1 4.1.2.2 4.1.2.3 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 4.1.10 4.1.10.1 4.1.10.2 4.1.10.3 4.1.11 4.1.11.1 4.1.11.2 4.1.11.3 4.1.12 4.1.13 4.1.14 4.1.15
Contract Contractor’s team Adequacy Competence Performance Client’s team HO support Planning & reporting Planned vs. actual completion dates Personnel assessments Productivities Administrative issues Human resources Travel Visas Security Financial issues Budget vs. expenses Profit or loss account Guarantees Plant Workplaces Facilities Risk assessments
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4.1.16 Constraints 4.1.17 Lessons learned 4.2 Construction Management 4.2.1 Civil works 4.2.1.1 Scope 4.2.1.2 Client’s specification 4.2.1.3 Contractor’s team 4.2.1.3.1 Adequacy 4.2.1.3.2 Competence 4.2.1.3.3 Performance 4.2.1.4 Client’s team 4.2.1.5 Productivities 4.2.1.6 Budget vs. expenses 4.2.1.7 Planned vs. actual completion dates 4.2.1.8 Risk assessment 4.2.1.9 Constraints 4.2.1.10 Lessons learned 4.2.2 Mechanical works 4.2.2.1 Scope 4.2.2.2 Client’s specification 4.2.2.3 Contractor’s team 4.2.2.3.1 Adequacy 4.2.2.3.2 Competence 4.2.2.3.3 Performance 4.2.2.4 Client’s team 4.2.2.5 Productivities 4.2.2.6 Budget vs. expenses 4.2.2.7 Planned vs. actual completion dates 4.2.2.8 Risk assessment 4.2.2.9 Constraints 4.2.2.10 Lessons learned 4.2.3 Electrical works 4.2.3.1 Scope 4.2.3.2 Client’s specification 4.2.3.3 Contractor’s team 4.2.3.3.1 Adequacy 4.2.3.3.2 Competence 4.2.3.3.3 Performance 4.2.3.4 Client’s team 4.2.3.5 Productivities 4.2.3.6 Budget vs. expenses 4.2.3.7 Planned vs. actual completion dates 4.2.3.8 Risk assessment 4.2.3.9 Constraints 4.2.3.10 Lessons learned 4.2.4 Instrumentation works 4.2.4.1 Scope 4.2.4.2 Client’s specification 4.2.4.3 Contractor’s team 4.2.4.3.1 Adequacy
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4.2.4.3.2 Competence 4.2.4.3.3 Performance 4.2.4.4 Client’s team 4.2.4.5 Productivities 4.2.4.6 Budget vs. expenses 4.2.4.7 Planned vs. actual completion dates 4.2.4.8 Risk assessment 4.2.4.9 Constraints 4.2.4.10 Lessons learned 4.3 Pre-commissioning management 4.3.1 Scope 4.3.2 Contractor’s team 4.3.2.1 Adequacy 4.3.2.2 Competence 4.3.2.3 Performance 4.3.3 Client’s team 4.3.4 Scope of work 4.3.5 Performance 4.3.6 Productivities 4.3.7 Budget vs. expenses 4.3.8 Planned vs. actual completion dates 4.3.9 Risk assessment 4.3.10 Constraints 4.3.11 Lessons learned 4.4 Site engineering management 4.4.1 Scope 4.4.2 Contractor’s team 4.4.2.1 Adequacy 4.4.2.2 Competence 4.4.2.3 Performance 4.4.3 Client’s team 4.4.4 Scope of work 4.4.5 Performance 4.4.6 Budget vs. expenses 4.4.7 Risk assessment 4.4.8 Constraints 4.4.9 Lessons learned 4.5 Local procurement management 4.5.1 Scope 4.5.2 Contractor’s team 4.5.2.1 Adequacy 4.5.2.2 Competence 4.5.2.3 Performance 4.5.3 Suppliers 4.5.3.1 Scope of supply for each supplier 4.5.3.2 Performance of each supplier 4.5.4 Budget vs. expenses 4.5.5 Risk assessment 4.5.6 Constraints 4.5.7 Lessons learned
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4.6 Stores 4.6.1 Scope of services 4.6.2 Contractor’s team 4.6.2.1 Adequacy 4.6.2.2 Competence 4.6.2.3 Performance 4.6.3 Performance 4.6.4 Budget vs. expenses 4.6.5 Facilities 4.6.6 Risk assessment 4.6.7 Constraints 4.6.8 Lessons learned 4.7 Quality Management 4.7.1 Scope 4.7.2 Contractor’s team 4.7.2.1 Adequacy 4.7.2.2 Competence 4.7.2.3 Performance 4.7.3 Client’s team 4.7.4 Client’s specification 4.7.5 Third party inspection agencies 4.7.5.1 Inspectors’ performance 4.7.5.2 Agencies’ performance 4.7.6 Reporting 4.7.7 Budget vs. expenses 4.7.8 Risk assessment 4.7.9 Constraints 4.7.10 Lessons learned 4.8 HSE Management 4.8.1 Scope 4.8.2 Contractor’s team 4.8.2.1 Adequacy 4.8.2.2 Competence 4.8.2.3 Performance 4.8.3 Client’s team 4.8.4 Client’s specification 4.8.5 Budget vs. expenses 4.8.6 Risk assessment 4.8.7 Constraints 4.8.8 Lessons learned 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7
Client Contract Documents Systems of work Teams Administrative issues Budget vs. expenses Payments Performance
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5.8 5.9 5.10 5.11 5.12 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 6.37 6.38 6.39 6.40 6.41 6.42
Complaints raised by the client Performance indicators Risk assessments Constraints Lessons learned Attachments Contract documents Applicable legislation Applicable standards & specifications Applicable construction industry codes of practice Local conditions Weather conditions Project financial plan Project final loss & profit statement Project debt statement Design inputs and outputs Design changes Design controls Statutory and regulatory requirements Other requirements Company management system requirements Project management plan Project organization charts Approved job descriptions Project authorisations Project estimate Project work breakdown structure Statements of work Ownership of tasks Project constructability plan Project schedules Project budget Project cost control Productivities Plant & equipment (used for the works) Materials, plant & equipment (incorporated in the works) Designers Subcontractors Suppliers Project quality plan Project HSE plan Project risk management plan Project security plan Project mobilisation plan Project infrastructure Project construction plan Project pre-commissioning & mechanical completion plan Demobilisation plan
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A meeting will take place in the company head office to discuss the contents of the closing-out report. Participants Executive committee (as required) Country manager Project manager Project management team (as required and if available as they may have been released in the mean time)
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This meeting should mark the end of the project manager’s responsibilities -but not the liabilities- under the employment contract for the particular project. The chairperson of this meeting should issue an appropriate release statement that will be attached to the minutes of this meeting.
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K.9
The closing out report, in addition to all the project documents (controlled and non-controlled in structured electronic filing format) that were produced during the course of the project constitute the project thesaurus. Maintenance period
“Maintenance period” or “defects liability period” is usually defined as the period after the completion of the project during which the contractor is obligated to repair any defects in workmanship and/or materials as stipulated in the contract conditions. Normally the maintenance period will last twelve months from the completion of the project and the issuance of the “mechanical completion” (or whatever title is specified in the contract conditions) certificate. It is noted that the client operates the unit during this period. The contractor or its nominated subcontractor will repair defects in workmanship. When the defective part of the works has been constructed by a subcontractor, who refuses to repair/rectify it, then the costs will be deducted from the subcontractor’s final account or its performance guarantee. The suppliers, through the contractor, will rectify materials defects during the maintenance period. Warrantees for equipment or materials are valid for much longer periods of time (even decades). After the defects liability period and for as long as the warrantee is valid, any defects in materials will be rectified by the suppliers, who will be notified by the client accordingly, as the warrantees are always transferred to the project owner by the contractor.
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A core project management team, under the project or the site manager, will handle all issues related to project maintenance/defects liability until such time that there are no issues at all, in two, consequent, standard weekly meetings. Following the full demobilisation of the project management team, then, the country management undertakes the responsibility to offer services to the client during the maintenance period with its own company forces or it may employ nominated, approved subcontractors. An internal handing over meeting will take place in due time, after the issuance of the mechanical completion certificate, when the project management team will handover to the country management the project dossiers and answer any questions related to the obligations of the contractor during the maintenance/defects liability period. All expenses will be charged to the project account. The contractor needs to maintain insurance(s) in force, the extent of which will depend on the contract and on its own concern for the risk it is facing, until the issuance of the final handing over certificate. K.10
Final handing over
At the end of the defects liability period, the client prepares a schedule of defects, listing those defects that have not yet been rectified, and agrees with the contractor the date by which they will be rectified. The contractor must in any event rectify them within a reasonable time. When the defects are rectified, the client will invite the contractor in a final handing over meeting during which the “final handing over” certificate will be issued by the client or signed by nominated, authorised representatives of both parties, whatever is applicable according to the contract conditions. Pre-requisites for the unconditional or the conditional signature of the final completion certificate are: • • •
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Unified mechanical completion certificate issued Defects rectification report signed off Final account agreed and paid in full (reference, justification of non-payment should be noted in a relevant note in the minutes of meeting) Project guarantees released (reference, justification of non-release of bonds should be noted in a relevant note in the minutes of meeting) Claims -by either party- cleared (claims taken to arbitration or to court for resolution, should be referenced and justified in a relevant note in the minutes of meeting)
All pending issues should be discussed and cleared in an amicable manner. Both parties should negotiate and bridge their differences, in this last meeting, to
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avoid unnecessary and long lasting legal proceedings, if it is possible. The detailed and substantiated (legally binding) minutes of this meeting should be agreed and signed by both parties’ authorised representatives. In any case, the signature of the final handing over certificate, and the significant minutes of this last formal meeting, takes the action -if any- away from the project. When the final handing over certificate is issued the contractor should close any pending issues with the authorities, the suppliers, the subcontractors and all the other interested parties that are related to the project, except those legal (arbitration, court cases, claims), insurances (claims, liabilities) and financial (payments, bonds, debt) issues which usually take their time (even years) to close. K.11
Project thesaurus
The “project thesaurus” may contain all controlled and non-controlled documents that were produced during the course of the project, from tender stage to the final handing over stage, in structured electronic filing format. At the end of the project period, the project management team should compile the “project thesaurus” and send it to the company and the country head offices under strict confidentiality protocol.
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In practice - foot notes136 •
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Carpe diem, quam minimum credula postero137 [Seize the day, put very little trust in tomorrow] Research, study, learn, work and train constantly to master your profession and improve yourself Whatever looks or sounds strange to you is important; note it down and check it Instructions you give should be simple, clear and well understood by the least qualified recipient
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Use numbers not statistics
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Integrity costs
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Honesty costs
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Dignity costs
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High ethical values isolate
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Trust is hard to gain
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Learn your lessons
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Learn from your mistakes
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Errare humanum est, perseverare autem diabolicum138 [to err is human, but to persevere is diabolical]
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Listen, do not talk
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Be modest
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Behave
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These “foot notes” outline a personal outlook only Wikipedia Horace (Quintus Horatius Flaccus) https://en.wikipedia.org/wiki/Horace Carpe diem (Odes I.xi.8) https://en.wikipedia.org/wiki/Carpe_diem Privacy Policy 138 Wikipedia https://it.wikipedia.org/wiki/Errare_humanum_est,_perseverare_autem_diabolicu m Privacy Policy 137
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Be professional
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Share your experience
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Friends are random and rare
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Antagonism is the rule
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Select your team, if you can
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Jobs come and go, life goes on
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It’s good to have a choice
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Eventually robots or computers will replace most, if not all, professions
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Corruption will knock on your door, sooner or later139
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“Che Fece .... Il Gran Rifiuto”140
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“Within You Without You”141
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Γνῶθι σαυτόν142 [know thyself]
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Πάν µέτρον άριστον143 [Moderation optimum]
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Πλεῖστοι ἄνθρωποι κακοί144 [Most humans are bad] Chartered Institute of Building (CIOB) “A report exploring Corruption in the UK Construction Industry” http://www.giaccentre.org/documents/CIOB.CORRUPTIONSURVEY.2013.pdf Copyright © CIOB 2013 Constantine Petrou Cavafy Che Fece .... Il Gran Rifiuto http://www.cavafy.com/poems/content.asp?id=176&cat=1 Copyrights George Harrison “Within You Without You” http://www.thebeatles.com/song/within-you-without-you ©1967 Sony/ATV Music Publishing LLC. All rights reserved. Used by permission © Apple Corps 2017 Wikipedia “Know thyself” https://en.wikipedia.org/wiki/Know_thyself Privacy Policy Wikipedia “Cleobulus of Lindos” https://en.wikipedia.org/wiki/Cleobulus Privacy Policy Wikipedia Page 494 of 495
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Knavery’s plain face is never seen till used145 Exitus acta probat146 [the result justifies the deed] or [the ends justify the means] Ἐξ οὗ ἕπεται τὸ ἀκλόνητον δόγµα: καὶ ἡ ἀνηθικότης εἶναι ἀποκλειστικὸν προνόµιον τῶν βλακῶν!147 [Hence, the unshakable dogma follows: immorality too, is the exclusive prerogative of the moron!] ∆εν έφταιγεν ο ίδιος. Τόσος είτανε148 [It was not his fault. So much he was] Le secret des grandes fortunes sans cause apparente est un crime oublié, parce qu’il a été proprement fait149 [The secret of great fortunes without apparent cause is a forgotten crime, because it was properly done] Έκαµα κι είδα πράµατα και κατάλαβα ότι οι χειρότεροι δαιµόνοι είναι οι άνθρωποι150 [I did and saw things and understood that the worst demons are the humans]
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How many biological ancestors each human has?
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Ubuntu151 “Bias of Priene” https://en.wikipedia.org/wiki/Bias_of_Priene Privacy Policy Shakespeare, “Othello”, Act 2, Scene 1, Line 237 Publius Ovidius Naso (The Heroines), II, 85 https://en.wikipedia.org/wiki/Heroides Terms of Use and Privacy Policy Εὐάγγελος Λεµπέσης - Ἡ Τεράστια Κοινωνικὴ Σηµασία τῶν Βλακῶν ἐν τῷ Συγχρόνῳ Βίῳ last phrase http://users.uoa.gr/~nektar/arts/prose/evangelos_lempesis_idiots.htm Wikipedia “Manolis Anagnostakis” https://en.wikipedia.org/wiki/Manolis_Anagnostakis Honoré de Balzac “Le Père Goriot” published in “Revue de Paris” in 1834 link Wikisource la biblioteque libre https://fr.wikisource.org/wiki/Page:Balzac_Le_P%C3%A8re_Goriot_1910.djvu/14 5 Voyez les conditions d’utilisation pour plus de détails. ∆ηµοσθένης Παπαµάρκος “Γκιακ“ page 53, last sentence http://www.biblionet.gr/book/198676/ Wikipedia “Ubuntu” https://en.wikipedia.org/wiki/Ubuntu_(philosophy) Privacy Policy Page 495 of 495