cem600 design and constr of pipeline
TRANSCRIPT
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TA&E OF CONTENTS
&IST OF FIG4RES i
ASTRACT ii
C'APTER ONE5 INTROD4CTION 1
C'APTER TO5 T'E DESIGN AND CONSTR4CTION
PROCESS 4
2.0 Pipeline Projects Department 4
2.1 Phase I - Study & Development 7
2.2 Phase II - Preliminary n!ineerin! 11
2." Phase III - #undin! Phase 1$
2.4 Phase I% - Detailed n!ineerin! 17
2.$ Phase % - Procurement 22
2. Phase %I - 'onstruction 24
2.7 Phase %II - Start (p 2)
2.) Inter*acin! Departments in a Project "1
2.).1 +aterial Supply ,r!aniations +S,/ "1
2.).2 oss Prevention Department "1
2.)." Inspection Department ID/ "2
2.).4 'ontractin! Department "2
2.).$ nvironmental Protection Department ""
2.). Project Support and 'ontrols Department ""
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2.)..1 Project 'ontrols Division ""
2.)..2 stimatin! Services Division "4
2.).." Project Support Services Division "4
2.)..4 Surveyin! Services Division "4
2.)..$ est Practices eam "4
2.).7 #acilities Plannin! Department #PD/ "4
2.).) #inance "$
2.).).1 Pro!rams3 #orecast & nalysis
Department "
2.).).2 'apital Pro!rams3 #orecast & nalysis
Division "
2.).)." #i5ed ssets & 6or in Pro!ress
ccountin! Department #6IP/ "
2.).).4 Project ccountin! Division "7
2.).).4.1 Internal uditin! "7
2.).).4.2 'ontract 8evie9 and 'ost 'ompliance
Department '8&''D/ "7
C'APTER T'REE5 MET'ODO&OG ":
".0 +ethods o* 'ollectin! Data ":
C'APTER FO4R5 T'E PRO&EMS AND SO&4TIONS 40
4.0 Introduction 40
4.1 8evie9 o* Detail Desi!n 42
4.2 +aterial Issues 4"
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4.2.1 +aterial vaila;ility 4"
4.2.2 +aterial
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&IST OF FIG4RES
Figure Page
Oi# and Gas Fie#ds in Saudi Ara+ia
3 Pi"e#ine Proet De"art$ent urrent organi8ation /
1 T9e "9ases o! a "i"e#ine "roet 6
: Ste"s o! Stud* ; De Ste"s o! Proure$ent P9ase 33
. Ste"s o! Constrution P9ase 3:
0 Ste"s o! t9e Start 4" P9ase 3>
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REPORT ASTRACT
DSIB< study and development phase3preliminary en!ineerin! phase3 *undin! phase3 detailed en!ineerin! phase3procurement phase3 construction phase and start up phase. he reportdescri;es these phases and attempts to identi*y some o* associated pro;lemsand proposed solutions.
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C'APTER ONE
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Saudi ramco is reco!nied *or its e5pertise in transportin! o*
hydrocar;ons3 9hile simultaneously ;ein! environmentally conscious and a
sa*ety and loss prevention practitioner. Punctual product movements ;et9een
supply and distri;ution *acilities are e5ecuted throu!h an ela;orate delivery
system 9hich encompasses an area o* around 2 million suare ilometers -
constitutin! the area o* Saudi ra;ia. Pipelines3 marine crude oil taners3
product carriers and haulin! trucs3 the main components o* this delivery
system3 are operated and maintained ;y a hi!hly uali*ied 9or*orce and
adhere to the hi!hest industry standards to ensure optimied operational
levels.
he pipeline net9or totals some 203000 ilometers in len!th3 includin!
lins 9ith ne9 oil *ields in central and southeast Saudi ra;ia. +ajor pipelines
are the rans-ra;ian Pipe ine apline/3 the Saudi ra;ian-ahrain Pipeline
and the ast-6est 'rude ,il and
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'hapter hree discusses the methodolo!y o* collectin! the data in this
report and type o* uestions used in the report.
'hapter #our o* this report presents the pro;lems in the desi!n and
contraction that Project +ana!ement eam *aces and the proposed solutions
*or such pro;lems. he report ends 9ith 'hapter #ive3 9hich summaries the
report and su!!ests recommendations.
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C'APTER TO
= DSIB<
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Figure35Pi"e#inePro-etD
e"art$enturrentorgani8ation
struture
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he desi!n and construction pipeline projects in Saudi ramco !o throu!h
seven phases3 9hich are>
1. Study and Development Phase
2. Preliminary n!ineerin!
". Project Proposal to 5penditure 8euest pproval 8/
4. Detailed n!ineerin!
$. Procurement
. 'onstruction
7. Start up
#i!ure " ;elo9 illustrates the a;ove mentioned phases.
Study
Preliminary
Engineering
Project Proposal to
ERA
Detailed
Engineering
Procurement
Construction
Study and Deelopment
Preliminary
Engineering
!unding P"ase
Detailed
Engineering
Procurement
Construction
Start #p
Figure 15 T9e "9ases o! a "i"e#ine "roet%
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3% P'ASE I @ ST4D ; DE7E&OPMENT5
he study & development phase o* any pipeline project !oes throu!h sta!es3
as illustrated in #i!ure 43 9here the outcomes o* this phase are>
Prepare the usiness Plan.
Develop the Plannin! rie*.
Produce the 'apital Pro!ram G ud!et Item I/
Develop the n!ineerin! Study Pro!ram.
Develop the Desi!n asis Scopin! Paper DSP/.
Figure :5 Ste"s o! Stud* ; De
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,ne o* #acilities Plannin! Department roles is to develop and maintain the
'apital Pro!ram *or Saudi ramco *ive-year usiness Plans. he 'apital
Pro!ram is a list o* projects esta;lished to accomplish the usiness ine
o;jectives in the *ive-year usiness Plan period.
t the end o*
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'apital Pro!ram data;ase. 'ontinuous discussions tae place
;et9een #acilities Plannin! Department and representatives *rom all
seven usiness ines re!ardin! the cost3 schedule3 and justi*ication o*
the ne9ly proposed projects.
#acilities Plannin! Department then archives the 'apital
Pro!ram data;ase *or the 5ecutive dvisory 'ommittee revie93 9hich
9ill tae place appro5imately three 9ees later. Durin! this period3
#acilities Plannin! Department *urther screens the ne9 projects3 rans
them amon! the other projects already in the usiness Plan3 and
!enerates Plannin! rie*s *or ne9 projects. Plannin! rie*s !ive a ;rie*
description o* the scope and the schedule reuirements and are
reuired *or all projects included in the *ive-year usiness Plan.
s soon as the usiness Plan is archived *or the 5ecutive
dvisory 'ommittee revie93 Project Support and 'ontrols Department
in conjunction 9ith #acilities Plannin! Department issues the master
schedulin! system +SS/ report *or the projects in the usiness Plan
*or revie9 at the a;le op meetin!. Simultaneously3 #acilities Plannin!
Department issues the Plannin! rie*s to Project +ana!ement. t this
meetin!3 Project +ana!ement eam and Project Support and 'ontrols
Department discuss their commentsGpro;lems 9ith the schedule o*
each project 9ith #acilities Plannin! Department *or *urther *ollo9 up
9ith the usiness ine coordinators. his meetin! 9ill also validate the
plannin! ;rie* and the schedule.
*ter the 5ecutive dvisory 'ommittee revie93 the 'apital
Pro!ram is revised to re*lect 5ecutive dvisory 'ommittee chan!es.
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hen #acilities Plannin! Department archives a!ain *or the
+ana!ement 'ommittee revie9. Project +ana!ement eam and
Project Support and 'ontrols Department discuss any chan!es 9ith
#acilities Plannin! Department. lso3 the chan!es *rom +ana!ement
'ommittee are archived *or the oard o* DirectorsF revie9 and approval.
*ter the approval o* the Sprin! usiness Plan in +ay3 the usiness
Plan is then updated3 *ollo9in! a similar plannin! process3 to ;e
revie9ed ;y the oard in
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*ter the Desi!n asis Scopin! Paper is developed3 it is revie9ed ;y
Project Support and 'ontrols Department to chec the estimate and the
schedule3 and it is revie9ed and approved ;y the proponent and Project
+ana!ement eam.
his is the point o* time 9hen the project is turned to Project
+ana!ement eam and the second phase starts.
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3%3 P'ASE II @ PRE&IMINAR ENGINEERING5
he second phase is the development o* preliminary en!ineerin!3 as displayed
in #i!ure $3 9hich includes:
Dra*t Project 5ecution Plan PP/.
Prepare +aster 'ontractin! Plan.
Prepare Project Proposal PP/.
Produce detailed 5penditure 8euest 8/.
Prepare 'ontract *or Detailed n!ineerin!G'onstruction.
Figure /5 Ste"s o! t9e Pre#i$inar* Engineering P9ase
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In this phase Project +ana!ement eam prepares a;;reviated Project
5ecution Plan 9hich ;asically states ho9 the project is !oin! to ;e e5ecuted
in terms o* preliminary en!ineerin!3 detail desi!n and construction3 9hether
the project can ;e handled in-in!dom or out o* in!dom3 9hether the project
9ill ;e handled as one paca!e or more than one. ll o* this is determined
;ased on the nature o* the project and costGschedule reuirements. he
Project 5ecution Plan is approved ;y e5ecutive mana!ement o* the
proponent and Project +ana!ement eam. his 9ill secure '-) *undin!. '-
) #unds are #unds allotted to project mana!ement personnel only *or the
e5ecution o* preliminary en!ineerin! to develop project proposal scope o* 9or
and contract. his *undin! is usually $ to 10 o* the project cost3 and is
determined in the Study and Development Phase3 ;ased on the nature o* the
project3 and ho9 and 9here the preliminary en!ineerin! to ;e done /.
Project +ana!ement eam e5ecutes a service order to an approved
desi!n contractor to prepare the Project Proposal. he purpose o* the project
proposal is to de*ine e5actly the scope o* the project in terms o* location3
capacity3 process3 euipments neededL. etc. in order to prepare a reasona;ly
accurate 5penditure 8euest estimate o* the actual cost o* the project. his
9ill ena;le mana!ement to deicide 9hether to proceed 9ith the project or not.
Project +ana!ement eam and Beneral n!ineerin! Service (nit3 one o* the
Project Support and 'ontrols Department units3 develop the id slate. he ;id
slate is a list o* Beneral n!ineerin! Service contractors 9hich Project
+ana!ement eam and Beneral n!ineerin! Service (nit a!ree on to invite to
;id *or doin! the project proposal. he id slate is taen to Service 8evie9
'ommittee *or approval. In the *ollo9in! situations>
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ny Sole Source Service uthoriation anticipated
e5ceedin! M2 +illion. lso In instances 9here the estimated value
esta;lished at the initial procurement 9as under M2 +illion3 ;ut the *inal
contractorFs commercial proposal a*ter ne!otiations e5ceeds that limit.
ny service authoriation 9hose value has revised total
value e5ceedin! M2 million shall ;e promptly reported to the Service
8evie9 'ommittee as an in*ormation item.
*ter the approval o* the Service 8evie9 'ommittee3 Project
+ana!ement eam invites the Beneral n!ineerin! Service contractors to
su;mit their ;ids on the project proposal. idders are reuired to su;mit
proposals o* su**icient detail to prepare a N10 accuracy e5penditure reuest
estimate3 provide su**icient technical in*ormation *or proponent revie9 and
9here applica;le/ provide su**icient in*ormation to o;tain ump Sum urn ?ey
S?/ or detailed en!ineerin! contract ;ids. Beneral n!ineerin! Service
(nit and 'ontract 8evie9 and 'ost compliance Department representatives
9ill open the ;id ;o5 and the lo9est cost contractor is selected to do the
project proposal. Project +ana!ement eam 9ill direct and monitor the desi!n
contractor in this sta!e 7/.
I* the value o* the project e5ceeds M$0 million3 Project +ana!ement
eam initiates a *ormal value en!ineerin! study. he value en!ineerin! study
is coordinated 9ith the %alue n!ineerin! (nit o* the Project Support and
'ontrols Department.
Project +ana!ement eam 9ors 9ith 'ontractin! Department
representative to develop the construction contract3 ;id slate3 and the ;id
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revie9 pro!ram. he 'ontractin! Department representative sends the
contract to the a9 Department and 'ontract 8evie9 and 'ost compliance
Department '8 &''D/ *or their revie9.
he Project +ana!ement eam and 'ontractin! Department
representative 9ill a!ree on the construction contractors 9ho 9ill ;e in the ;id
slate. lso3 they 9ould prepare the ;id revie9 pro!ram that 9ill identi*y the
;est contractor ;y>
1. 8evie9in! and evaluatin! o* echnical Proposal
2. 8evie9in! and evaluatin! o* 'ommercial Proposal
he purpose o* the technical evaluation is to determine 9hether the
;idders understand the speci*ic scope o* 9or and 9hether their proposals
meet the reuirement o* the scope o* 9or. he technical evaluation should
reveal cases 9here an other9ise capa;le contractor has *ailed to plan the use
o* its resources so as to satis*actorily accomplish the 9or. he purpose o* the
commercial evaluation is to identi*y the ;id representin! the lo9est overall cost
to S(DI 8+',. 'ontract a9ardin! 9ill ;e e5plained in section 2.43 detail
en!ineerin! phase )/.
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3%1 P'ASE III @ F4NDING P'ASE5
he third phase o* a project cycle 9hich3 as displayed in #i!ure 3 includes:
5penditure 8euest stimate summary Preparation.
5ecutive +ana!ement 8evie9.
+ana!ement 'ommittee 8evie9.
5ecutive +ana!ement O',+/ pproval o* 8.
*ter the 5penditure 8euest estimate is prepared3 Project
+ana!ement eam and Project Support and 'ontrols Department 9ill prepare
Figure 65 Ste"s o! t9e !unding "9ase%
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9hat is called a $D estimate3 9hich is really a summary o* the 5penditure
8euest estimate and the project mana!ement costs.
he $D estimate summery is revie9ed ;y #acilities Plannin!
Department. *ter the #acilities Plannin! DepartmentFs revie93 the estimate is
*or9arded to e5ecutive mana!ement *or approval. he e5ecutive mana!ement
may tae any o* the *ollo9in! decisions3 other than approval>
'ancellation> proposal to cancel an approved project reuires an 8.
De*erral> Project de*erred to ne5t e5ecutive mana!ement meetin!.
8ede*inition> 6hen the total proposed scope chan!es3 additions and-
deletions considered separately.
,nce the 5penditure 8euest pproval is secured then the project is
approved and the project can move to the ne5t phases :/.
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3%: P'ASE I7 @ DETAI&ED ENGINEERING5
he *ourth phase is detailed en!ineerin! 9hich3 as displayed *i!ure 73
Includes>
Prepare Desi!n Dra9in! G Specs.
Prepare +aterial Procurement.
Procure ramco +aterial G Direct 'har!e D'/.
Prepare 'onstruction id Paca!es.
he o;jective o* detailed en!ineerin! is to develop project dra9in!s and
speci*ications3 initiate material procurement and prepare construction ;id
paca!es%
Figure =5 Ste"s o! Detai#ed Engineering P9ase%
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(pon 5penditure 8euest pproved 8/3 the 'ontractin!
Department representative issues a letter to invite the approved contractors in
the ;id slate to a clari*ication meetin! in 9hich the scope o* the project 9ill ;e
e5plained. site visit may ;e conducted. he contractors !et a copy o* the ;id
paca!e to ;id on. ach contractor 9ill su;mit a technical and a commercial
;id.
he technical ;id 9ill contain the technical and mana!ement aspects o*
the 9or3 and may include the *ollo9in!3 dependin! on the contract>
he contractorCs proposed or!aniation.
8esumes o* ey personnel.
#unctional e5ecution plan 9or plan/.
6or schedule3 includin! mo;iliation and demo;iliation.
+anpo9er plan
uipment schedule.
Sa*ety and oss Prevention pro!ram.
uality ssurance pro!ram.
uipment 8ental.
Su;contract Plan.
5perience in similar Projects.
'ontractorCs material procurement capa;ilities.
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he commercial ;id 9ill ;e ;ased on>
he lump sum price *or doin! the scope o* 9or.
=ypothetical 'han!e ,rder uantities and applyin! them to the
;idderCs proposed 'han!e ,rder rates.
he technical ;id 9ill ;e opened *irst ;y the echnical 8evie9 eam3
9hich consists o*>
1. he Project +ana!ement eam.
2. he 'ontractin! Department.
he echnical 8evie9 eam evaluates the technical proposals a!ainst
pre-esta;lished scorin! criteria. ach element o* the technical proposal is
rated a!ainst a scale 9ith an a!reed pass score. he overall passin! score is
70 o* the total points. ny ;idder 9hich does not achieve this passin! score
9ill ;e recommends ;y the 8evie9 eam to ;e disuali*ied.
*ter the technical evaluation3 the commercial ;id 9ill ;e opened ;y the
'ommercial 8evie9 eam3 9hich consists o*>
1. he Project +ana!ement eam.
2. he 'ontract 8evie9 and 'ost compliance Department.
". he 'ontractin! Department.
he 'ommercial 8evie9 eam 9ill open the commercial proposals o*
those ;idders 9hose echnical proposals have ;een approved. ist the
contractors in accordance to their>
1. he lump sum price.
2. =ypothetical chan!e order cost
". otal o* 1 and 2 a;ove.
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he lo9est o* the otal cost 9ill ;e raned 9ith num;er 1 and 9ill ;e
a9arded the contract )/.
Detailed en!ineerin! starts a*ter the contract is a9arded. Dependin! on
the ind o* contract3 the detailed en!ineerin! 9ill ;e done ;y the construction
contractor or not. In ump Sump urn ?ey type contracts3 en!ineerin!3
procurement3 and construction are covered ;y the same contract. he
contractor is responsi;le *or the desi!n3 procurement and the construction o*
the *acility. Issued *or 'onstruction paca!e is developed *or the procurement
and construction i* the contract is a ump sum Procure ;uild contract.
he Project +ana!ement eam invites the involved department to
attend a ic o** meetin!. In the meetin! the contractor meets the departmentFs
representatives as they address their reuirements.
Durin! the development o* the desi!n3 several revie9s tae place
especially at 0 and :0 desi!n completion sta!es. Durin! this time3
several Saudi ramco or!aniations are involved in the revie9s lie Project
+ana!ement eam3 Proponent3 'onsultin! Service Department3 oss
Prevention Department3 nvironmental Protection Department3 and Inspection
Department.
ach involved department revie9s the 0 detailed desi!n paca!es
to mae sure that desi!ned *acility meets Saudi ramco standards and
reuirement3 and mae the necessary comments *or compliance. he
comments 9ill ;e incorporated in the ne5t paca!e. he same process is
repeated in the :0 and 100 detail desi!n sta!es.
lso3 a project completion schedule is put to!etherto *orecast
incremental monthly pro!ress per en!ineerin!3 procurement and construction.
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s the jo; pro!resses3 monthly reports are prepared ;y the contractor to
re*lect actual versus planned pro!ress throu!h monthly project updates
revie9ed ;y Project +ana!ement eam.
t the end3 100 detail en!ineerin! paca!e is approved ;y Project
+ana!ement eam and the Proponent. hen it is su;mitted to the Saudi
ramco dra9in! mana!ement system3 9hich is dra9in! data;ase *or all the
company dra9in!s.
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3%/ P'ASE 7 @ PROC4REMENT5
he *i*th phase is material procurement 9hich3 as displayed in #i!ure )
includes>
on! ead ime +aterial G uipment.
,ther +aterial G uipment.
Direct 'har!e Surplus +aterial G uipment.
Saudi ramco +aterials System Specs S+SS/.
Figure >5 Ste"s o! Proure$ent P9ase%
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+aterial procurement is started alon! 9ith the development o* detailed
en!ineerin!. (sually t the 0 sta!e o* the detailed en!ineerin!3 all
euipment speci*ications are complete. +aterials are supplied either ;y Saudi
ramco or ;y the contractor. #or contractor supplied material it 9ill ;e
scheduled and revie9ed ;y Project +ana!ement eam and %endor Inspection
Division.
+aterials are procured throu!h placement o*>
Direct 'har!e Purchase orders
ocal Deliver ,rder 8euest orders
,rders *rom Saudi ramco +aterial System.
In Direct 'har!e material3 reuisitions are usually developed *or lon!
lead items ;y the contractor and revie9ed ;y Project +ana!ement eam and
vendor inspection division *or approval. *ter that the contractor can place the
order 10/.
ocal Deliver ,rder 8euests are material availa;le and stored at local
vendors and have Saudi ramco Stoc num;ers.
he procurement involves ;id development3 technical revie9s3 and
placement o* orders3 *a;rication and delivery. he contractor 9ill source the
material3 place and e5pedite orders. Doin! this is very critical ;ecause any
delay could a**ect the construction schedule si!ni*icantly%Project +ana!ement
eam 9ill monitor the procurement process.
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3%6 P'ASE 7I @ CONSTR4CTION5
he si5th phase is 'onstruction 9hich3 as displayed in #i!ure :3 Includes>
( 'ontract 9ard i* ump Sum Procure uild 'ontract/.
( +o;iliation.
( Start 'onstruction.
( Pro!ress +onitorin!.
( Pre-commissionin!.
( +echanical 'ompletion.
he construction phase ;e!ins 9ith a contract a9ard to a construction
contractor. his 9as discussed in Phase I%3 Detailed n!ineerin!.
Su;seuently3 the contractor mo;ilies his personnel and euipment and sets
o**ices and camps to support the project.
Figure .5 Ste"s o! Constrution P9ase%
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ie en!ineerin!3 this phase involves a lot o* monitorin! and reportin!
o* the pro!ress. Inspection Department3 oss Prevention3 and the proponent
9or 9ith Project +ana!ement eam in monitorin! the project.
he proponentesta;lishes the cceptance 'ommittee and appoints its
chairman as soon as construction starts ;ut no later than the 0 sta!e o*
actual construction completion. t the *irst *ormal meetin! o* the cceptance
'ommittee3 the cceptance 'ommittee mem;ers3 the Project +ana!ement
eam3 Inspection Department3 oss Prevention3 and the proponent desi!nate
their representatives.
Project +ana!ement eam advises the Proponent 9hen the
construction sta!e reaches 0 and reuest a *ormal ic-o** meetin! o* the
cceptance 'ommittee to a!ree on the Punch ist system and procedures to
;e implemented. Project +ana!ement eam 9ill reuest the cceptance
'ommittee to commence system Punch listin! 9hen all major components o*
a system have ;een installed and pre-commissioned and Project +ana!ement
eam has veri*ied that the system is ready *or Punch listin!.
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1. Aes item> meanin! the item may impact the sa*e commissionin!3 start
up3 and operation o* the *acility.
2. meanin! this item 9ill not impact the sa*e commissionin!3 start
up3 and operation o* the *acility.
6ithin three 9orin! days o* receivin! the a;ove noti*ication3 the
cceptance 'ommittee 'hairmanschedules and completes the +echanical
'ompletion Inspection3 9hich is normally a thorou!h revie9 o* the outstandin!
system punch list items and an inspection o* site conditions.
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Project +ana!ement eam 9ill noti*y the cceptance 'ommittee
'hairman3 9hen all o* the assi!ned QAesQ items have ;een completed and
si!ned o** ;y the ori!inators. 6ithin three 9orin! days o* receivin! this
noti*ication3 the cceptance 'ommittee 'hairman arran!es *or an cceptance
'ommittee meetin! to instruct the Project +ana!ement eam to route the *orm
9ith attachment *or si!nature. 6hen all other si!natures are o;tained3 the
Project +ana!ement eam presents the +echanical 'ompletion 'erti*icate
and attachments to the cceptance 'ommittee 'hairman to o;tain the
si!nature o* the Proponents representative prior to distri;ution o* the ori!inal
approved +echanical 'ompletion 'erti*icate.
he +echanical 'ompletion 'erti*icate si!n o** si!ni*ies custody
acceptance o* the *acility ;y the Proponent. *ter this turnover3 routine *acility
maintenance ;ecomes the ProponentFs responsi;ility. he remainin! 9or to
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3%= P'ASE 7II @ START4P5
he last phase o* the Project is the start-up o* the *acility3 9hich3 as displayed
in #i!ure 103 includes>
Per*ormance cceptance.
Site #inal ccept ests.
System =andover.
'omplete 5ception Item ists.
#inancial 'lose-out.
Figure 05 Ste"s o! t9e Start 4" P9ase%
MC: Me9ania# Co$"#etionAC:Per!or$ane Ae"taneerti!iateS5 On Strea$RC:E"enditure ReBuest C#osed
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(pon approval o* the +echanical 'ompletion 'erti*icate3
commissionin! and start-up ;e!in. he proponent or!aniation is responsi;le
*or these activities 9ith the Project +ana!ement eam providin! assistance.
he Project +ana!ement eam3 in conjunction 9ith the proponent3 is
responsi;le *or developin! commissionin! plans and the proponent is
responsi;le *or the development and e5ecution o* *acility start-up and
per*ormance test plans and procedures. he acceptance o* the +echanical
'ompletion 'erti*icate represents the ;e!innin! o* the commissionin!3 start-up
and initial operatin! period durin! 9hich the *acility per*ormance should ;e
demonstrated to ;e in accordance 9ith the approved project scope. he
per*ormance period is si5ty days a*ter the +echanical 'ompletion 'erti*icate is
si!ned. Durin! the per*ormance acceptance period the proponent revie9s
*acility per*ormance3 relative to operatin! conditions3 in accordance 9ith the
approved project scope and prepares a list o* per*ormance-related items
reuirin! corrective actions i* the *acility is not up to per*ormance.
he a!reed Per*ormance cceptance 'erti*icate de*iciency items 9ill
*orm the ;asis o* the P' de*iciency item list3 9hich 9ill ;e attached to the
P' at the time o* si!nin!.
Per*ormance cceptance 'erti*icate is prepared ;y the Project
+ana!ement eam *or each *acility a*ter the *inal +echanical 'ompletion
'erti*icate *or the *acility has ;een si!ned. *ter the P' is si!ned3 the *acility
is put on stream 11/.
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3%> INTERFACING DEPARTMENTS IN A PRO?ECT
he Project +ana!ement eam relies on the cooperation o* many other
Saudi ramco or!aniations *or the success*ul e5ecution o* the project. hese
or!aniations have their o9n particular interests in either insurin! the project
compliance o* the related policies3 procedures and instructions3 or in assistin!
the project mana!ement in the e5ecution o* related *unctions.
he *ollo9in! provides a summary o* the most *reuently involved
or!aniations5
3%>% MATERIA& S4PP& ORGANIATION
+aterial supply or!aniation is Saudi ramco sole or!aniation *or
plannin!3 procurin!3 shippin!3 receivin!3 storin! and issuin! Saudi ramco
material. Its mission is to provide3 throu!h mana!in! the supply chains3 the
ri!ht material and associated services to support maintenance3 operations and
project reuirements at the ri!ht time and cost in support o* the 'ompany
operations.
3%>%3 &OSS PRE7ENTION DEPARTMENT
he oss Prevention Department is a service or!aniation responsi;le
*or developin! and monitorin! company polices andprocedures that aim to
prevent accidents and minimie losses. Saudi ramco ;elieves that the
responsi;ility *or sa*ety ;elon!s 9ith line or!aniations. his ;elie* places
accounta;ility 9ith operatin! departments to ensure that sa*ety is inte!rated
into day-to-day operation%
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3%>%/ EN7IRONMENTA& PROTECTION DEPARTMENT
he mission o* the nvironmental Protection Department is to provide
leadership on environmental issues to all areas o* company operations. his
9ill help in cost e**ectively reduce the riss to pu;lic health and the
environment. lso3 nvironmental Protection Department monitors operation
to assure that they are conducted in an environmentally responsi;le manner%
3%>%6 PRO?ECT S4PPORT AND CONTRO&S DEPARTMENT
Project Support & 'ontract Department includes the *ollo9in! operatin!
divisions5
3%>%6% Proet Contro#s Di
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3%>%6%1 Proet Su""ort ser
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Preparin! desi!n ;asis Scopin! Papers 9hich are the ;asis *or project
proposals
8evie9in! project speci*ications 9ith Project +ana!ement to insure
economic desi!n and con*ormance 9ith Desi!n asis Scopin! Paper
Preparin! 5penditure 8euests to o;tain project *undin!
#ield +ana!ement ueries coverin! a variety o* areas includin!
technical 3economic 3strate!ic and con*idential su;ject.
3%>%> FINANCE
here are several *inance related departments 9hich provide support or
inter*ace 9ith the Project +ana!ement eam3 includin!>
Pro!rams3 #orecast & nalysis Department.
'apital Pro!rams3 #orecast & nalysis Division.
#i5ed ssets & 6or in Pro!ress ccountin! Department.
Projects ccountin! Division.
Internal uditin!.
'ontract 8evie9 and 'ost 'ompliance Department.
3%>%>% Progra$s2 Foreast ; Ana#*sis De"art$ent
Pro!rams3 #orecast & nalysis Department is a sta** or!aniation 9ithin
#inance 9hich develops the *rame9or *or the 'ompanyFs plannin! activities3
critically revie9s or!aniational e5penditure3 manpo9er3 and capital
su;missions. his includes the cash *lo9 implications o* these su;missions.
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Pro!rams3 #orecast & nalysis Department also provides +ana!ement 9ith
timely evaluations o* pro!ress versus those plans so +ana!ement may mae
in*ormed ;usiness decisions.
3%>%>%3 Ca"ita# Progra$s2 Foreast ; Ana#*sis Di%>%1 Fied Assets ; or, in Progress Aounting De"art$ent
his department is a service department 9ithin ,perations ccountin!.
It is responsi;le *or tracin!3 monitorin! and analyin! e5penditures pertainin!
to 'orporate-9ide projects in pro!ress under approved capital3 non-capital3
e5ploration and development pro!ram and records capital assets into the
#i5ed ssets ccountin! System. It is also responsi;le *or analyin! *inancial
data and veri*ies approval authority ;e*ore recordin! chan!es resultin! *rom
retirements3 disposals or trans*ers o* assets and administers a periodic asset
veri*ication pro!ram inventory/ to insure the adeuacy o* sa*e!uardin! assets.
3%>%>%: Proets Aounting Di
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*unds and that projects are mechanically complete on the date stipulated in the
pproved 5penditure 8euest or Project 'han!e 8euest.
3%>%>%/ Interna# Auditing
he n!ineerin! & Project +ana!ement udits Division &P+D/
provides auditGconsultin! services to its clients in the n!ineerin! Services
and Project +ana!ement dministrative reas. udits in the Project
+ana!ement dministrative rea deal primarily 9ith controls over the
accumulation and reportin! o* Saudi ramcoFs project costs to 5ecutive
+ana!ement. In addition3 project en!ineerin!Gconstruction costs and
contractor invoices are revie9ed *or compliance 9ith contract terms and the
'ompanyFs 'ontractin! Policies and Procedures.
3%>%>%6 Contrat Re
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contracts3 9ors as a core mem;er o* Saudi ramco id 8evie9 eam3 in the
*ollo9in! activities>
1. valuationGne!otiation o* commercial proposals3
2. Development o* a9ard recommendations3 and
". Per*ormin! the *inal price revie9.
*ter the contract a9ard3 the Department assists proponents in various
aspects o* the contract administration. his includes>
1. 'han!e ,rder ne!otiation under lump sum contracts
2. 8evie9 and approval o* Internal dministration Procedures
". 8evie9 o* invoices under Beneral n!ineerin! Services and
other cost reim;ursa;le contracts
4. ssistance to Project +ana!ement in administerin! Pro!ram
+ana!ement 'ontracts3 ;oth in-?in!dom and ,ut-o*-?in!dom
$. 8evie9Gne!otiation and settlement o* contractor claims
. Preparin! ad hoc reports to contract proponents *rom 'ontract
In*ormation Systems 2/.
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C'APTER T'REE
+=,D,,BA
1%0 MET'ODS OF CO&&ECTING DATA
he data in this report 9as collected ;y intervie9in! people 9orin! in
the Pipeline Project Department. hy are ased to identi*y the pro;lems
associated 9ith the process and the solution to such pro;lems. he project
en!ineers in the Department 9ere ased to provide their input either ver;ally
or 9ritten dependin! on their place. he intervie9ers 9ere ased t9o speci*ic
uestions>
1> ist major concerns that you *aceR nd ho9 to handle themR
2> ist su!!estions to improve the processR
he main pro;lems and the su!!ested solutions *or those pro;lems are
detailed in the 'hapter #ive.
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C'APTER FO4R
= P8,+S
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:. ac o* no9led!e o* contractors and e5perience in lectrical3
Instrumentation and 'ommunication 9or since3 they represent
much smaller part o* the project.
10. In lar!e pipeline sies3 *a;rication and delivery o* lar!e sie pipes3
valves and *ittin!s are an area o* concerns.
11. +aterial availa;ility at site durin! construction.
12. Start up procedures and activity plans have to ;e completed in
advance.
1". Inadeuate en!ineerin! site visits lead to desi!n pro;lems durin!
actual construction.
14. +issed material can cause ;i! delays.
his chapter 9ill ;e divided into three sections. ach
section 9ill discuss the pro;lems and3 9hat phase may have this
pro;lem happen and the solution o* the pro;lems. hree
pro;lems and solutions 9ill ;e discussed3 the pro;lems are>
8evie9 o* detailed desi!n.
+aterial issues.
Project has too many proponents.
:% RE7IE OF DETAI& DESIGN
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s mentioned in 'hapter 9o3 Section 2.43 the detail
desi!n is issued *or revie9 9hen the desi!n completion at 0
and :0. In this procedure3 a copy o* the detail desi!n3 *or
e5ample3 the 0 detail desi!n3 is sent to the proponent and
other departments such as oss Prevention3 'onsultin! Services
Department3 Project Support3 'onstruction Department etc.
People 9ho are assi!ned to the desi!n revie9s do not
have the spare time to per*orm !ood revie9 a!ainst the Saudi
ramco standards and standard dra9in!s. s a result there are
a lot o* errors on the approved Issued *or 'onstruction dra9in!s
that reuire clari*ication 9ith 'onsultin! Services Department
durin! construction or reuire *ield desi!n chan!es. his e5tra
9or durin! construction can ;e avoided i* the desi!n revie9
process could ;e improved. lso3 Possi;le solution to this is to
have a dedicated sta** o* people *rom these departments to *orm
a team speci*ically to do the desi!n revie9s lso3 9hen the
proponent and support departments revie9 the 0 detail
desi!n3 they come up 9ith major scope chan!es3 9hich 9ill have
a cost and schedule impact. !reein! on a speci*ied scope at the
early sta!es o* the project and sticin! to it can solve this.
:%3 MATERIA& ISS4ES5
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s mentioned in 'hapter 9o3 Section 2.$3 in the
Procurement Phase3 i* the contract is ump Sum urn ?ey
contract then the construction contractor 9ill secure all material
needed in the project. Sometimes this 9ill lead to pro;lems lie>
+aterials availa;ility
+aterial not complyin! 9ith Saudi ramco
standards
:%3% MATERIA& A7AI&AI&IT5
he Project sometimes needs special lar!e pipeline sies3
the *a;rication and delivery o* lar!e pipes3 valves and *ittin!s are
areas o* concern. hese and other not o** the shel* items 9ill
delay the project i* not handed 9ith care. lso3 i* any o* these
items are missed in the procurement phase or *ailed in 9orin!
in the construction phase3 a mar!inal time 9ill ;e reuired to
replace that material 9hich 9ill impact the schedule. solution
to this situation is that3 in the detail desi!n ensure su**icient
en!ineerin! and details is done in the procurement documents.
lso3 advancin! the procurement dates as early as possi;le 9ill
allo9 time to correct and re-order i* necessary. Provide a
detailed revie9 and survey o* all materials needs to ensure that
all the materials are ordered and shipped on time.
he project mana!ement can also consult the proponent
in the materials and have their input and advice o* previous
history o* !ood and ;ad materials in previous projects.
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possi;le solution is to have the desi!n contractor
prepare a chec o** sheet 9hen revie9in! the vendor dra9in!s to
ensure that the vendor dra9in!s meet the desi!n speci*ications
and also the Saudi ramco standards. s *ar as third party
inspection3 the ump Sum urn ?ey contractor responsi;le *or
inspection/ should provide an inspection paca!e to the third
party inspection sta**. his paca!e should include copies o* the
relevant and applica;le Saudi ramco standards.
lso3 provide e5perienced inspectors3 reuest the
contractor to *ollo9 up 9ith the vendor durin! manu*acturin! o*
euipment in the *actory so that the inspector can spot the
violations/ ahead o* time *or e5ample the vendor inspector may
pay a visit to the *actory at "03 70 and 100 completion.
:%1 TOO MAN PRO?ECT PROPONENTS
In a project3 each area has its o9n proponent. ie *or
e5ample3 i* the project is a pipeline *rom a re*inery to a ;ul
plant3 the project scenario is the project has a proponent *or the
shippin! *acilities3 a proponent *or the pipeline itsel* and a
proponent *or the receivin! *acilities.
=avin! to deal 9ith di**erent proponents *or the same
project3 or more and to secure their acceptance and satis*action
throu!hout the project and *inally to !et their *inal si!natures o*
the important project document lie the +echanical 'ompletion
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'erti*icates and the Per*ormance cceptance 'erti*icates is not
a simple tas.
solution *or dealin! 9ith di**erent proponents *or some
project could ;e that at the ;e!innin! o* the project3 the
proponents assi!n a representative that can represent them on
all sites3 arran!e the di**erent tass and procedures3 and
coordinate durin! testin! and commissionin!. his
representative can have a small !roup3 9hich the mem;ers
come *rom di**erent proponent areas to ensure that all issues
and concerns are covered. his representative can help the
project and the Project +ana!ement eam to push the activities
and the scheduled activities that reuire proponent inter*erence
and support. =e also can correspond in a timely manner to the
Project +ana!ement eam any concerns or pro;lems that the
proponent have and any issues done on one site he 9ill ensure
replications and preparation o* the other sites *or the same.
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C'APTER FI7E
S(++8A
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desi!n speci*ications and also the Saudi ramco standards. he
last pro;lem 9as too many project proponents to a project and
the su!!ested solution 9as to assi!n a representative ;y the
proponents o* the project that can represent them on all sites.
his representative can have a small !roup3 9hich the mem;ers
come *rom di**erent proponent areas to ensure that all issues
and concerns are covered.
/%0 RECOMMENDATIONS FOR F4T4RE ST4DIES 5
he *ollo9in! recommendations are provided *or the *uture studies>
1. he study concentrated on the project en!ineers in
pipeline project department. #urther study can have
input *rom other inter*acin! departments.
2. he report had pro;lems *rom most o* the seven
phases3 concentratin! one phase and *indin! the
pro;lems and solutions mi!ht ;e e**icient.
". It is also recommended to use a multiple choice
uestionnaire rather than essay type3 9hich 9as used
in the report3 ;ut it 9ill need to mention all type o*
pro;lems that mi!ht occur in a project.
4. study can ;e done on the pro;lems that *ace the
contractor in the phases o* the project and the solution
startin! *rom the contractor point o* vie9.
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REFERENCES
1/ #acts & #i!ures3 999.saudiaramco.com3 Saudi ramco 2001
2/ Project n!ineers Development =and;oo3 Saudi ramco3Decem;er3 2002
"/ http>GGpscd.dha.aramco.comGdivisionsGpcdG
4/ Su;mittal 8euirements *or