pc00pr001 planning & control procedure rev.1

TEKFEN-AZFENALLIANCE

SANGACHAL TERMINAL

EXPANSION PROGRAMME

COMPANY DOC NOTB-CDOAZZ-PS-PRO-0001

REV. NO PAGE / OF1 1/19

CONTRACTOR’S DOC NO

269-PC-00-PR-001

PLANNING AND CONTROL PROCEDURE

FOR MAIN CONSTRUCTION WORKS

APPROVAL OF THE COMPANYSTATUS * A B C

NAMETITLEDATESIGNATURE

* Please circle the proper letter:A : Approved B : Approved as noted C : Not approved, commented.

1 Re-issued as a common document for ACG & Shah Deniz Project

A.C.C. I.M.G. L.K. 08/10/2003

0 Issued for Approval I.O.O F.B. T.B. 19/06/2002REV. DESCRIPTION PREP’D CHK’D APPR’

DDATE

SANGACHAL TERMINAL EXPANSION PROGRAMME


PLANNING AND CONTROL

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269-PC-00-PR-001

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INDEX

SECTION TITLE PAGE

1. PURPOSE 4

2. SCOPE 4

3. REFERENCES 4

4. DEFINITIONS AND ABBREVIATIONS 4

5. METHOD 4

6. PLANNING & SCHEDULING 5

7. PROGRESS MONITORING 10

8. REPORTING 12

9. RESPONSIBILITIES 16

10. REVIEW 16

11. APPENDICES 16




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1. PURPOSE

The purpose of this procedure is to define and set the methods for project planning, scheduling, progress monitoring and reporting activities as part of the total project control system.

2. SCOPE

This procedure covers all planning, scheduling, progress monitoring and reporting activities for engineering, procurement, construction and commissioning activities within the scope of work defined by contract/agreement for ACG Full Field Development, Phase1, Onshore Terminal, Main Construction Works.

3. REFERENCES

Tekfen Planning & Control Procedure P4.09.03

ACG, Full Field Development, Phase 1, ITT No. FFD-14/3

4. DEFINITIONS AND ABBREVIATIONS

CMS Contract Master Schedule

PCS Project Control System

WBS Work Breakdown Structure

CBS Cost Breakdown Structure

CPM Critical Path Method

AFC Approved for Construction

5. METHOD

The master plan of the project is developed at the very early stages in order to set how the project will be executed. The scenario for executing the project starts from mobilization and covers all activities including procurement, engineering, construction, fabrication, testing, pre-commissioning and completes with demobilization. This scenario is then reiterated by the project management to meet the latest revisions. This revised scenario forms the basis of all project control system activities and the contract master schedule.

Finally, the scenario for execution of work is studied in more detail to develop the detailed project plan and schedule. Together with an agreed schedule, it constitutes the target plan,




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which is the baseline for the running construction schedule. The schedule is updated weekly as per realised progress values and planned & current status is compared. This comparison is the basis of reporting & monitoring activities, which shows the planned, actual and current forecast values in terms of time, quantities, percent completes, man-hours, and productivity.

6. PLANNING & SCHEDULING

Work Breakdown Structure (WBS)

Project scope definition is one of the key elements for project planning and scheduling. WBS of a project shows the scope definition and divides the work into logically identifiable work packages with the levels required. The WBS for this project is determined as shown in the following list.

Level 1, Subproject

Level 2, Discipline, Works Area, System

Level 3, Work Items

Level 4, Activities

The WBS is also used as the activity breakdown structure for the schedule.

The project is divided into subprojects based on activity scopes and for better monitoring & follow up. The subprojects for the main construction works are defined as:

PM Project Milestones

MO Mobilization

EN Engineering, Design & Deliverables

MT Procurement, Materials & Equipment

TE Construction of Camp, Offices & Temporary Facilities

CA Construction Works-ACG Scope

CB Construction Works-BTC Scope

CP Construction Works-Onshore Pipelines

CM Completion Activities

There are three sets of Level 2 items in the WBS of project, namely (1) work disciplines, (2) work areas and (3) systems, which allow monitoring of project in different views(?)layouts.




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The relevant discipline codes defined in WBS of this project are;

02 Steelwork

03 Pipework

04 Equipment

05 Electrical

06 Instrumentation

07 Telecommunication

08 Fire & Safety

10 Architectural

11 Insulation

12 PFP

13 Painting & Coating

14 Civil Works

15 Onshore Pipeline

20 Control Room

25 Local Equipment Room

30 Main Switchroom Building

31 Local Switchroom No. 1

32 Local Switchroom No. 2

33 Local Switchroom No. 3: BTC

55 Pump Control Room and Warehouse: BTC

57 Frequency Conversion Building: BTC

The relevant area codes defined in WBS of this project are;

A Flare Area

B Power Generation / Sulphur Recovery Area

C Utilities Area

D Process Area

E Off Spec Tank Area




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F Pig Receiver / Pipeline Corridor Area

G Sulphur Handling / Steam Generators Area

H EOP Area

J Produced Water Storage Area

L Phase 1 Crude Oil Storage Tank Area

M MOL Pumps / Metering Area

The systems classification will be done as per the system numbers in drawing BR-CDZZZZ-PR-PID-0001.03 (Piping & Instrumentation Diagram Legend Sheet 3 Numbering)

Level 3 work items identify each equipment, building, underground system, etc. in one area. Level 4 activities are determined in detail such that they can be measured in quantities.

Activity Codes

To identify and define the activities in accordance with the WBS, the following activity codes are used.

SUBP Subproject ID

RESP Responsibility

DISC Discipline

AREA Area

PSYS Primary System

SYST System

ITEM Item Code

LOCN Location

MATL Material

SCHD Schedules

R6 R6 Code

R7 R7 Code

Other codes may be added if additional definitions are required during the execution of the project.




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Planning & Schedule Preparation

The schedule preparation study includes the process of (1) activity definition, (2) activity sequencing, (3) activity duration estimation and (4) schedule development.

Activity definition involves identifying the specific activities that must be performed in order to perform the work identified in the WBS. Inputs to the activity definition are WBS, scope definition, historical information on similar projects, constraints, and assumptions. Outputs from activity definition are activity list and supporting detail.

Activity sequencing involves identifying the interactivity dependencies between activities. Activities are sequenced accurately to support the development of a realistic schedule. Precedence Diagramming Method (PDM) is used as technique for activity sequencing. Inputs for activity sequencing are; activity list, physical dependencies that come by the nature of work, flexible dependencies which are preferences for executing the work, external dependencies, constraints, and assumptions. Output from activity sequencing is project network diagram, which is a schematic display of the project activities and logical relations between them.

Activity duration estimation involves assessing the period likely to be needed for the completion of each activity. Activity durations are estimated based on total man-hours required for a certain activity and planned workforce. Budgeted quantities are taken off from the AFC drawings and the required man-hours are calculated from the budgeted quantities multiplied by the unit man-hours for the activity. Inputs for activity duration estimating are activity list, constraints, assumptions, resource requirements, resource capabilities and historical information. Outputs are the schedule with durations and the updates activity list.

The schedule development involves determination of start and finish dates for project activities by Critical Path Method (CPM). The inputs for project development are project network diagram, activity duration estimates, resource requirements, resource pool description, calendars, constraints, assumptions and lags. Project schedule, which contains project network diagrams, bar charts, milestone dates, time-scaled network diagrams, etc. is presented in a graphical form together with supporting detail and resource requirements.

By means of CPM, the early and late start / finish dates are calculated for each activity based on specified, sequential network logic and single duration estimate. The difference between late and early dates are calculated as the total float for each activity and the critical path is identified as the chain of activities in network logic with zero floats. The critical activities drive the total duration of the project, i.e. theoretically any delay in the critical activity is reflected to the total completion time of the project. The activities with considerably small floats are also considered as potential critical activities.




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Duration compression is applied as part of the review cycle in schedule development. Activities with considerably long durations on the critical path are revised considering the resource requirements and capabilities to meet the target completion duration for the project.

The schedule development and review cycle is shown in the below figure.

Primavera Project Planning software is used as a planning tool in all schedule development activities.

Resources

For all activities in the schedule, manpower requirements are monitored in man-hour units. The quantities for the major items, such as steel fabricated (tonnes), steel erected (tonnes), pipe spools fabricated, pipe spools erected, cables pulled (linear metres), cables terminated (no.), etc. shall also be followed up as resources in activities.

Resource Optimisation

Resource levelling is the technique applied to optimise the distribution of resource requirements for the project duration. The maximum availability of a resource is taken as input and the start and finish dates of activities with floats are re-calculated to achieve an optimised distribution.

Project Baseline

Once the schedule is completed and agreed, it is taken as the baseline, i.e. the dates and resource requirements are considered as the planned values, and the actual progress and performance values are compared to the baseline.

Activity Definition

Activity Sequencing

Precedence Diagramming

Method (PDM)

Activity Duration

Estimating

Total man-hours / planned

workforce

Schedule Development

Resource Leveling




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Schedule Revising

The planning philosophy shall be to review and revise the plans continuously on regular basis as per actual performance and progress, the variations in scope of work and other prevailing conditions to meet the final completion date targeted. A requirement to revise the schedule will occur when there is such variation in the scope or there is a major change in the philosophy of execution of the works. Such requirement will be reported to Company and the schedule will only be revised upon approval of the Company. If Company sees a requirement he may instruct Contractor to revise the schedule without waiting Contractor’s request. When the schedule is revised it is fixed as the new baseline and the working schedule is compared to it.

7. PROGRESS MONITORING

Project Control is the process to monitor and measure progress, in order to take necessary corrective actions whenever necessary to ensure that all project objectives are met in a timely manner. It also includes control of the work in terms of risks, changes and interfaces.

Progress monitoring

Progress of project shall be determined on the basis of followings.

Amount of work done during the specified period in terms of quantities and/or man-hours spent as appropriate

Actual versus planned progress

Measurement of the amount of work done shall be calculated on the basis of both (1) daily / weekly site reports indicating the quantity of work done, workforce and equipment used from the site supervisors and supplemented with calculations and drawings in technical office and (2) verified with physical measurements at site when required.

The daily / weekly site reports from the site supervisors will include level-5 breakdown of the related department’s scope issued by the planning department to each discipline supervisor. The supervisor will mark up the level-5 progress report based on physical progress achieved and will return to the planning department no later than Saturday afternoon. The planning engineer then update the level-5 database with progress which will be rolled up to level 4, 3, 2, and 1.

After inputting the progress data into project planning tool, the completion percentages with respect to baseline shall be reported together with progress S Curves for man-hours and budget. Comparison of the progress for a specified duration and in overall with




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respect to plan is the start of performance assessment and review. The deviations are then evaluated for the reasons so that the project management may develop solutions for eliminating reasons of delays and methods to recover these delays.

The main objective of progress monitoring is to forecast the project completion in terms of schedule and budget. Since the delays in activities on critical path are directly affecting project target dates, they should be analysed in detail. Delays in other activities may become important, if the activity becomes critical as a result of delays.

Progress Measurement Method

Rate of budgeted man-hour to the total budgeted man-hours for the project multiplied by a coefficient is the weighted percentage for the activity. In other words:

Weighted percentage of an activity is defined as:

Where;

AWB Budgeted man-hours of this activity

TWB Total budgeted man-hours

Keq Equalised discipline coefficient

The coefficient is calculated for each discipline considering the following factors:

Where;

K1 Man-hour rate coefficient for discipline

K2 Equipment rate coefficient for discipline

K3 Visual Completion / Milestone coefficient for discipline




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The average of three factors is taken as the coefficient and the calculated coefficient is equalized to give the same total number of man-hours as original.

The calculations for the coefficients for disciplines are given in Appendix 1.

This method is applied for calculation of the percent complete of the project; the budgeted and clocked man-hours are reported as original.

The percent completes for the activities are calculated as the ratio of actual quantity of work performed to the budgeted quantity of work for a given activity. The total percent complete for the project is the percent complete for activity multiplied by the weighted percent of the activity.

Where;

ACWP Actual quantity for work performed

BQWP Budgeted quantity of work performed

Where;

n number of activities in project

8. REPORTING

As part of the planning and control activities the following reports will be prepared and submitted to Company.

Monthly Progress Reports

A comprehensive Monthly Progress Report relating to the work performed during the last reporting period shall be prepared. The reporting period shall be up to and including midnight on the last Saturday in each month (the cut-off date) and shall be submitted to company in an electronic format, by not later than 14.00 hrs on the Friday following the cut off.




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In addition, an extract from the report which will include the executive summary, areas of concern, progress statistics and the cost report will be submitted to company by e-mail or facsimile not later than 14.00 hrs on the Wednesday following the cut-off date.

The Monthly Progress Report will typically contain the following:

General Section

an executive narrative summary of significant accomplishments during the report period.

details of progress on design and engineering, procurement, fabrication, construction, installation, and testing/commissioning and an explanation of deviations from any targets, their consequences and corrective actions taken.

areas of concern and details of the actions proposed to be taken to manage and eliminate the concerns.

highlights of significant activities to be undertaken in the following month.

Planning Section

the CCMS (Level 1).

progress "S" curves (Planned vs. Actual).

resource histograms (Planned vs. Actual).

Level 2 detailed bar chart.

Level 2 time analysis report

Cost Section

cost and manhour performance reports for the month and cumulatively by work package.

Contract Price summary activities broken down by month with estimated, actual and forecast costs and cumulative expenditure.

updated expenditure profile indicating the actual estimated value of work executed each month for the duration of the contract.

updated cash flow profile indicating the estimated invoice amounts to be submitted on a monthly basis for the duration of the contract.

Variation Order Register indicating the total number and value of variation orders.

Variation Order Request Register indicating the total number and estimated value of potential variation orders requested.




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Purchase Order Register indicating PO number, description, date purchased, supplier, estimated value, actual cost, freight costs, WBS number, and delivery time.

Subcontract/Vendor Register indicating subcontract number, description, award and completion dates, subcontract/vendor, estimated value, actual cost, WBS number, and method of reimbursement.

updated actual value of Withholding Tax deducted.

Other Reports

procurement status report.

weight summary document progress status report.

HSE and QA report (including status of key performance measures).

risk management report.

accident/incident report, including "near-misses" and "lost-working hours".

Registers

correspondence register(s).

drawings and documents register(s).

Weekly Progress Reports

Weekly Progress Reports will be prepared and submitted to Company by e-mail or facsimile, not later than 14.00 hrs Monday. Cut-off will be midnight each Sunday.

The Weekly Progress Reports will contain the following:

Health, Safety & Environment

o statistics

o narrative

Project Status

o progress summary

o progress S-curves (overall and by discipline)

o histograms (overall and by disciplines)

o detailed progress data

Summary of work accomplished during the report period




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o design and engineering

o fabrication

o installation

o construction

o procurement

Summary of activities planned for the next reporting period

o design and engineering

o fabrication

o installation

o construction

o procurement

Interface queries

Manpower report – foreman and below

Personnel movements and forecast movements for next reporting period

Critical path analysis and areas of concern

Daily Reports

Daily Reports will be prepared and submitted to Company by e-mail or facsimile, not later than 09.00 hrs the following day. Cut-off will be midnight each day.

The Daily Progress Reports will contain the following:

Weather conditions.

Personnel by trade on site.

Plant and equipment on site.

Hours worked and times.

Cumulative manhours.

Site activities.

Progress achieved.

Subcontractors/vendors on site.

Accidents or incidents reported (days without LTI, near misses,




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first aid cases).

Problem areas.

Notes/general.

9. RESPONSIBILITIES

It is the responsibility of planning engineer to coordinate the project planning activities under the leadership of technical office manager and in close coordination with construction and other groups within the organization.

Construction group is responsible doing the take offs from the AFC drawings and reporting the executed quantities of work done to the technical office.

Engineering group, Procurement group, Construction group and other departments in project organization are responsible for supporting project planning and control group both prior to start and during the execution of the works.

10. REVIEW

This procedure is reviewed prior to start of work and every six months, if not required otherwise.

11. APPENDICES

Appendix 1: Discipline Coefficients for Progress Measurement Method

Appendix 2: Site Report Forms

Appendix 3: Typical Reports for Weekly Progress Report

Typical level-4 bar chart

Typical manpower histogram

Typical S curve

Typical resource control report

Typical procurement schedule




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APPENDIX 1

DISCIPLINE COEFFICIENTS FOR PROGRESS MEASUREMENT METHOD




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APPENDIX 2

SITE REPORT FORMS




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APPENDIX 3

TYPICAL REPORTS FOR WEEKLY PROGRESS REPORT

pc00pr001 planning & control procedure rev.1

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