qm-58 supplier contract quality requirements specification supplier... · 3.5.3 inspection reports...

Supplier Contract Quality Requirements Specification Division

Title: Supplier Contract Quality Requirements Specification

Unique Identifier: QM-58

Area of Applicability: E

Documentation Type: PC

Revision: 0

Total Pages: 58

Next Review Date: March 2015

Disclosure Classification: CONTROLLED DISCLOSURE

Supplier Contract Quality Requirements Specificatio n

CONTROLLED DISCLOSURE When downloaded from the EDS database, this document is uncontrolled and the responsibility rests with the user to ensure it

is in line with the authorized version on the database.

Unique Identifier: QM-58 Revision: 0 Page: 2 of 58

CONTENTS

Page

1. INTRODUCTION ...................................................................................................................................................... 4

2. SUPPORTING CLAUSES ............................. ........................................................................................................... 4

2.1 SCOPE .............................................................................................................................................................. 4 2.1.1 Purpose ..................................................................................................................................................... 4 2.1.2 Applicability................................................................................................................................................ 4

2.2 NORMATIVE/INFORMATIVE REFERENCES .................................................................................................. 4 2.2.1 Normative .................................................................................................................................................. 4 2.2.2 Informative ................................................................................................................................................. 4

2.3 DEFINITIONS .................................................................................................................................................... 5 2.3.1 Eskom Definitions ...................................................................................................................................... 5

2.4 ABBREVIATIONS .............................................................................................................................................. 7 2.5 ROLES AND RESPONSIBILITIES .................................................................................................................... 8

2.5.1 Division of Responsibilities ........................................................................................................................ 8 2.5.2 Eskom ........................................................................................................................................................ 8 2.5.3 Contractor .................................................................................................................................................. 9

3. ESKOM RIGHTS (NOT LIMITED TO THE FOLLOWING): ... ................................................................................ 10

3.1 GENERAL REQUIREMENTS ......................................................................................................................... 11 3.1.1 QUALITY MANAGEMENT POLICY ........................................................................................................ 11 3.1.2 IMPLEMENTATION ................................................................................................................................ 11 3.1.3 QUALITY MANAGEMENT IN ENGINEERING ....................................................................................... 12

3.1.3.1 Design Quality Plan ......................................................................................................................... 12 3.1.3.2 Design Planning and Control .......................................................................................................... 12 3.1.3.3 Design Quality Planning .................................................................................................................. 13 3.1.3.4 Criticality Assessment and Application ........................................................................................... 14 3.1.3.5 Design Inputs .................................................................................................................................. 15 3.1.3.6 Design Outputs................................................................................................................................ 15 3.1.3.7 Design Verification .......................................................................................................................... 15 3.1.3.8 Inter-discipline Check and Review (Squad Check) ......................................................................... 16 3.1.3.9 Design Validation (Including Software Validation) .......................................................................... 16 3.1.3.10 Design Changes ............................................................................................................................ 16 3.1.3.11 System and Sub-System Lists ...................................................................................................... 17 3.1.3.12 Design Element Identification, Traceability, and Composition Verification ................................... 17 3.1.3.13 Design, Safety and Model Reviews. ............................................................................................. 18 3.1.3.14 Constructability Maintainability, Operability Reviews .................................................................... 18

3.1.4 QUALITY MANAGEMENT IN FABRICATION & CONSTRUCTION ....................................................... 18 3.1.4.1 General ............................................................................................................................................ 18 3.1.4.2 Quality Audits and Related Quality Performance Reviews ............................................................. 20 3.1.4.3 Eskom Right of Access ................................................................................................................... 21

3.2 TENDER SUBMISSION PHASE ..................................................................................................................... 21 3.2.1 Contractor documents with the tender .................................................................................................... 21 3.2.2 The Contractor shall submit a draft Contract Quality Plan (CQP) with the tender. ................................. 22

3.3 TENDER EVALUATION, ADJUDICATION AND NEGOTIATION PHASE ..................................................... 23 3.3.1 Subcontracting......................................................................................................................................... 23

3.4 CONTRACT AWARD PHASE ......................................................................................................................... 26 3.5 CONTRACT AWARD AND QUALITY CONTROL PHASE ............................................................................. 27

3.5.1 Pre-contract execution ............................................................................................................................ 27 3.5.1.1 Supplier and subcontractor Quality Management Plan .................................................................. 27 3.5.1.2 Supplier and Subcontractor Inspection and Documentation Requirements ................................... 28

3.5.2 Contract execution .................................................................................................................................. 31 3.5.3 Inspection Reports .................................................................................................................................. 31 3.5.4 Non-conformance Reports and Log ........................................................................................................ 32





3.5.5 Contractor’s inspection and testing ......................................................................................................... 33 3.5.6 Verification of purchased product ............................................................................................................ 33 3.5.7 Third Party Inspection ............................................................................................................................. 36

3.5.7.1 AIA ................................................................................................................................................... 36 3.5.7.2 Eskom appointed AIA organization ................................................................................................. 36

3.5.8 MATERIALS MANAGEMENT PROGRAM ............................................................................................. 37 3.5.8.1 General ............................................................................................................................................ 37

3.5.8.1.1 Traceability .............................................................................................................................. 37 3.5.8.1.2 Positive Material Identification ................................................................................................ 38 3.5.8.1.4 Quantitative quality measurement tools .................................................................................. 38 3.5.8.1.5 Preservation ............................................................................................................................ 38

3.5.9 Expediting during contract execution ...................................................................................................... 41 3.5.10 Quality Control on Completion of the Contract ...................................................................................... 42

3.5.10.1 Manufacturing Record Books. ....................................................................................................... 42 3.6 SUPPLIER QUALITY PERFORMANCE MONITORING PHASE ................................................................... 43 3.7 E-QUALITY TOOL (ACHIEVER PLUS) .......................................................................................................... 44 3.8 PAYMENT AND DELIVERY ............................................................................................................................ 44

4. AUTHORIZATION .................................. ................................................................................................................ 45

5. REVISIONS ............................................................................................................................................................ 45

6. DEVELOPMENT TEAM ............................... .......................................................................................................... 45

APPENDIX A : TENDER & CONTRACT QUALITY REQUIREMENTS .................................................................... 47

APPENDIX B : QUALITY REQUIREMENTS FOR ISO 9001 SERI ES ..................................................................... 48

APPENDIX C : TEMPLATE FOR A TYPICAL CONTRACT QUALIT Y PLAN ............................................ ............. 49

APPENDIX D : DEFECT NOTIFICATION .................. ............................................................................................... 53

APPENDIX E : CAR .................................. ................................................................................................................. 54

APPENDIX F : CONCESSION ........................... ........................................................................................................ 55

APPENDIX G : CONCESSION ........................... ....................................................................................................... 56

APPENDIX H: REQUIREMENTS FOR A PRODUCT VERIFICATION PLAN ............................................. ............. 57

APPENDIX I: QUALITY CONTROL PLAN/INSPECTION & TEST PLAN .............................................. .................. 58





1. INTRODUCTION

This specification is to specify and describe the minimum quality requirements for all existing and potential Eskom Contractors and Suppliers, and to define the quality criteria for the evaluation, selection and monitoring of same.

2. SUPPORTING CLAUSES

2.1 SCOPE

2.1.1 Purpose

The purpose of this specification is to specify the requirements by which Contractors and Suppliers shall manage, implement, maintain and continually improve a quality management system (QMS) based on ISO 9001:2008 (or latest applicable revision). The intention is that Contractors and Suppliers should continuously adhere to Eskom’s quality requirements in respect of the supply of products and related services.

2.1.2 Applicability

This specification applies to all employees, entities, suppliers and Contractors involved in Eskom new build and operating and maintenance programme (plant refurbishment, engineering, procurement, manufacturing, installation, and commission works). When applied to a particular contract, the relevant clauses of ISO 9001:2008 (or latest applicable revision) and the business processes requirements are indicated on the enquiry/contract/order quality requirement forms (see Annexure A and B)

This specification will be applicable to any type of contract, where the wording as well as applicable aspects shall be customised to the specific contract, and reflected in the contract document to be signed by Eskom and the supplier.

2.2 NORMATIVE/INFORMATIVE REFERENCES

Parties using this document shall apply the most recent edition of the documents listed in the following paragraphs.

2.2.1 Normative

[1] ISO 9001:2008 Quality Management Systems Requirements

[2] ISO 9001:2005 Quality Management Systems – Fundamentals and Vocabulary

[3] ISO 10005:2005 Guidelines for Quality Plans Standard

[4] ISO 10006:2003 Guidelines for Quality Management Systems in Projects

[5] ISO 90003, “Software Engineering Guidelines for the Application of ISO 9001

2.2.2 Informative

[6] ISO 9004:2009 Managing for the Sustained Success of an Organization – A Quality Management Approach

[7] NEC family of contract documents, as applicable to the specific contract





[8] FIDIC form of contract, as applicable to the specific contract

2.3 DEFINITIONS

2.3.1 Eskom Definitions

a. Supplier

The word supplier refers to the Contractor

b. Customer

The word customer refers to Eskom Holdings SOC Limited (in the context hereof referred to as Eskom)

c. Contractor

A group of people and facilities (corporation, firm, enterprise, institution etc.) with an arrangement of responsibilities, authorities and relationships. It also refers to supplier, consultant and service provider

d. Subcontractors

An organization or legal entity that provides a product to the supplier and/or that enters into a subcontract and assumes some of the obligations of the supplier or prime Contractor

e. Inspection Agency

An organization or person appointed by Eskom for the purpose of performing quality assurance or quality control monitoring and or inspection services

f. Approved Inspection Authority

An organization or person approved by the Chief Inspector, South African Department of Labour, in terms of the Occupational Health and Safety Act 85 of 1993 and appointed by Eskom

g. Regulatory body

A person or persons representing a statutory body as required by law

h. Works

All deliverables expected from the Contractors as per the scope of works, requirements specified in the request for tender

i. Major plant items Plant and Material items (e.g. components, works that have an impact on safety of staff or equipment, the environment, plant reliability and availability and are of a high cost (Refer to Guideline GGG 1099 General Plant level Classification). This also includes Transmission Primary and secondary Plant items, and same for Distribution.

j. Refurbishment

Restoration to a sustainable usable state or as near as possible to new state (within agreed limits)

k. Quality Control Plan (QCP)

A document specifying the activities to be inspected throughout the execution of the project, inclusive of test methods, procedures and acceptance criteria. (This term is equivalent to QIP and ITP)

l. Contract Quality Plan

A document compiled, as required by the Contract Quality Requirements Specification, by a Contractor which spells out the aspects of the quality management system to be applied within a





specific Eskom project, and the methods to be utilized to ensure quality assurance, control and improvement of the identified activities that they will be carried out as stated in the Works Information to ensure that the product/service meets Eskom requirements (This document can be viewed as a combination of a PQP and QCP)

m. Intervention points

Intervention points are those control points indicated by the various controlling bodies concerned with the implementation of a specific QCP / ITP. These can be in the form of tests, inspection, surveillances, witnessing, reviews, failure and incident investigations)

n. Hold points

An activity of an inspection and test plan which must be notified by the Contractor to Eskom and beyond which work shall not proceed without the attendance of Eskom’s representative or the written approval of Eskom to proceed.

o. Surveillance Point

Random monitoring of work processes and tests.

p. Witness point

An activity on an inspection and test plan where work may proceed providing Eskom or Authority/Agency has been notified as required and the latter has indicated that they will not execute the intervention point

q. Document review

A review of the records developed by a Contractor to ensure that the relevant activity has been performed satisfactory and that contractual requirements have been met

r. Project Quality Representative

The most senior person responsible for the management and administration of the Quality System at the project/site/department. This includes an external Contractor appointed by Eskom to perform this function

s. Technical expert

This term refers to a person responsible for and fulfilling the role concerned with the technical aspects and integrity of the project, service, or process in respect of the specific contract (e.g Eskom Engineer , IT Specialist, Auditor)

t. Advisory expert

This term refers to a person responsible for and fulfilling the role of providing specialist advice, as may be determined and required in connection with any relevant aspect of the review (e.g. Legal Advisor, Financial Advisor etc). This person is only called upon on a need basis

u. Contract Manager/Expert

This term refers to a person responsible for fulfilling the role concerned with the contractual aspect of the Eskom Commercial relationship with the Contractors in respect of the specific contract (e.g. Package Manager)

v. Quality Dossiers

An indexed file containing all applicable records, documentation, certificates, data package, and other data applicable to the works. The Quality Dossier will be reviewed during the turnover process)

w. Data Package





All documentation and certification required to be issued by the Contractor in order that the takeover can be certified by Eskom (An index of data packages must be established before commencement of works)

x. Criticality Rating

The risk ranking of structures, materials, equipment, components and/or systems determined on the basis of either FMECA/FMEA, HAZOP studies/reports or any applicable risk and criticality bases.

y. FMECA

Failure Mode Effects and Criticality Analysis (PGZ 45-25 - FMECA Studies).

z. HAZOP

Hazard and Operability Study (PGZ 45-24 - HAZOP Studies)

zz. Surveillance Point

Random monitoring of work processes and tests.

2.4 ABBREVIATIONS

Abbreviation Description

AIA Approved Inspection Authority

CV Curriculum Vitae

CQP Contract Quality Plan

ISO International Standards for Organization

QC Quality Control

ITP Inspection and Test Plan

NEC New Engineering Contract

OHSA Occupational Health and Safety Act

PED Pressure Equipment Directive

PER Pressure Equipment Regulation

PQP Product / Project Quality Plan

PVP Product Verification Plan

QCP Quality Control Plan

DRC Document Return/Review Code

QIP Quality Inspection Plan

QMS Quality Management System inclusive of project requirements

SABS South African Bureau of Standards

SANS South African National Standard

NEC New Engineering Contract

RFQ Request for Quotation

MOC Management of Change

CQP Contract Quality Plan, including Project and any related Life Cycle Requirements

CAP Contract Administration Plan





Abbreviation Description

AVL Approved Vendor List

NDT Non Destructive Testing

NDE Non Destructive Examination

O&M Operating & Maintenance Manual

NOBO Notifying Body

NCR Non Conformance Report

PMI Positive Material Identification

PQR Procedure Qualification Record

WQR Welders Qualification Record

WPS Welding Procedure Specification

HES Health, Environmental, Safety

MRB Manufacturing Record Books

BOD Basis of Design

FEED Front End Engineering Design

CFCCQMP Contractor Fabrication, Construction and Completions Quality Management Plan

NORFI Notification of Readiness of Inspection

CAP Contract Administration Plan

I&TN Inspection and Test Notification

RCA Root Cause Analysis

2.5 ROLES AND RESPONSIBILITIES

2.5.1 Division of Responsibilities

The Division of Responsibilities section identifies the interactions and responsibilities of Eskom and the Contractor during the performance of work. This document together with the Project Procedures describes administrative and procedural requirements that the Contractor must satisfy in accomplishing the work.

2.5.2 Eskom

2.5.1.1 Co-ordinate the work of the Contractor with activities of Eskom and other Contractors and service providers directly hired by Eskom.

2.5.1.2 From reports compiled by the Contractor, evaluate the performance of the work of the Contractor, suppliers and Subcontractors regarding schedule, quality, cost, safety and requirements for compliance with the Contract and bring any deficiencies of which Eskom is aware to the attention of the Contractor such review shall not relieve Contractor of its responsibilities.

2.5.1.3 Perform technical appraisal of the Contractor’s work efforts. Appraisal will be by specialist personnel and will be co-ordinated with the aforesaid parties.

2.5.1.4 Furnish or cause to be furnished the services of any service Suppliers as Eskom may wish to employ in connection with the Project.





2.5.1.5 Obtain support and agreement from Eskom finance and procurement organisations to establish and manage the Project quality Budget.

2.5.3 Contractor

2.5.2.1 Provide Eskom with information as requested for appraisal of the Contractor’s, Sub-Contractor’s and supplier’s performance of the Project, including but not limited to, copies of calculations, Construction Documents in preparation, purchasing and contracting documents, estimates, schedules, progress measurements, cost reports, etc.

2.5.2.2 Evaluate and assume full responsibility for all design work including that performed by the Sub suppliers, material/equipment suppliers and Sub-contractors including shop drawings and samples for quality, conformance to design, and safety. The Contractor shall be responsible for construction means, techniques, methods and procedures.

2.5.2.3 Maintain effective liaison as required to co-ordinate and expedite transmission and interpretation of Construction Documents, to implement necessary design changes or modifications, and to resolve technical problems. All formal communications with suppliers and Sub-contractors shall be through the Contractor.

2.5.2.4 Conduct regularly scheduled meetings with Eskom to discuss status of various stages of the Project, methods for resolving difficulties encountered or foreseen and other topics pertinent to the Project. Record and issue minutes promptly after each meeting. Conduct regularly scheduled meetings with Eskom to provide constructability input and other information regarding economy of design.

2.5.2.5 Process changes in accordance with the agreed Project change management procedure.

2.5.2.6 Issue monthly and quarterly progress reports to Eskom in accordance with agreed Project requirements.

2.5.2.7 Maintain a comprehensive filing system in a format and location to be agreed with Eskom, to provide a current basis for all documents, decisions, disposition of directives and inquiries, and information exchanged among the parties including agreements and modifications thereto.

2.5.2.8 Formulate and implement procedures to protect Eskom’s proprietary information during the performance of the Project.

2.5.2.9 Administer work performed by the suppliers and Subcontractors and monitor for quality, cost, schedule, progress, and safety.

2.5.2.10 Provide data, as required, to permit prompt resolution of technical problems and implementation of any necessary changes and modifications.

2.5.2.11Submit to Eskom those items requiring advance approval, including but not limited to the following: schedules, overtime requirements, submittals, travel plans for its personnel and its supplier and Subcontractors personnel assigned to the field staff as well as for other personnel, schedules and plans for temporary facilities, tools and equipment, and labour force build-up and run-down of the supplier and Subcontractors.

2.5.2.12 Distribute correspondence originating with the Contractor in accordance with the “Correspondence” Project Procedure.

2.5.2.13 Ensure all aspects of the Project are carried out fully in accordance with the requirements of the Contract.

2.5.2.14 Ensure progress of the Project meets the requirements of the Baseline Control Project Schedule and milestone dates, and the Control Budget.

2.5.2.15 Ensure that the Project Quality Plan is implemented and is effective in controlling the quality of critical items in the Projects.





2.5.2.16 Ensure that the Project Safety Plan is implemented and is effective in controlling the safe implementation of the Projects.

2.5.2.17 Develop and provide reports to the Eskom Project Manager detailing the status and anticipated completion of the Projects, in terms of cost, schedule, progress, earned value and quality. These reports must be developed by the Contractor and formatted in accordance with Eskom requirements.

2.5.2.18 Liaise with the Eskom Project Manager regarding the status of the Projects and specific problem areas.

2.5.2.19 In a timely manner, review with the Eskom Project Manager any aspect of the Projects or the Project that the Contractor believes could have an impact on total cost, schedule, or quality of the Project and agree to a course of action.

2.5.2.20 Liaise with local and regional authorities during approvals and ensure that all statutory requirements are met. This shall include developing proposals and applications on behalf of Eskom for statutory and third party approvals or submissions as may be required. (Some sites will require all liaisons with local and regional Authorities to be addressed via their own Eskom representative.)

2.5.2.21 Provide Eskom with evidence and assistance in demonstrating the integrity of the design, engineering and management services, and control over execution of the Project as may be required.

2.5.2.22 Ensure that timely and efficient procedures and work methods are adopted during the execution of the Project. (These should be detailed for the individual project.) The Contractor is particularly required to address areas of interfaces with other Eskom organisations and departments.

2.5.2.23. The Contractor shall, at least 90 days prior to the start of Construction, provide Eskom with a detailed procedure for setting up the Project Bank Account. The procedure shall also describe a detailed process to administer the account including the use of the ‘application for funding’

3. ESKOM RIGHTS (not limited to the following):

• To expect that the Works will be conducted in accordance with the contract between the parties.

• Access to Contractor’s information as determined by applicable legislation

• Eskom reserve the right to oversee Contractor audit programs by participating in selected audits as an observer, and by assessing Contractor at key work stages. Eskom will coordinate with Contractor to develop an oversight schedule aligned with Contractor audit schedule.

• To obtain access to any audit reports performed by the Contractor reflected in the audit programme

• To conduct independent quality audits during all phases of the contract and the contractor shall provide all resources to support these activities.

• Eskom shall have the right to participate or request for a technical investigation to be launched and conducted on the Contractor and subcontractors premises or other sites, when risk to Eskom products or service deliverables are identified.

• To participate in and/or lead investigations related to incidents involving its products.

• To require from contractors to be responsible for the cost of re-inspections

• To withhold payment from Contractors as a result of outstanding non-conformances irrespective of the agreed payment schedule and in accordance with the conditions of contract.

• Shall be granted electronic and hard copy access to all quality plans, procedures, documentation, and other quality records relating to the Work including but not limited to data extracts.





• Reserves the right to review, inspect and audit any or all parts of the Contractor QMS as well as any documentation, materials or equipment associated with the Work, at any time or Project Work location.

• Shall carry out assessments and audits on all new Contractors and subcontractors

• Reserves the right to appoint resident quality inspectors that can be based at the Contractor or subcontractor’s premises and on site where the work is being performed.

• Reserves the right to select witness and hold points within all developed Supplier QCP/ITPs for Eskom oversight of selected functions and to perform surveillance or audits of the Work.

• Shall be given access at all reasonable times before, during and after manufacture and before delivery, construction, erection, commissioning to measure, test and inspect the products and workmanship as necessary on the Contractor’s premises and on Eskom sites.

• Reserves the right to suspend any pending deliveries, by the issuing of a cease delivery order at any time and for any portion of the work that is not being performed in accordance with the specified/agreed requirements.

• To expect the Contractor to use Eskom’s electronic system for the automation and management of quality and other relevant aspects of the project (Achiever Plus).

3.1 GENERAL REQUIREMENTS

3.1.1 QUALITY MANAGEMENT POLICY

Contractor Quality Management Program shall be based upon a Quality Management Policy and a series of Quality Objectives and a Project Quality Organizational Structure.

Contractor Quality Management Policy shall be based on the following Quality Management principles:

• Meeting Customer expectations

• Leadership

• Involvement of people

• Process approach

• System approach to management

• Continual improvement

• Factual approach to decision making

• Mutually beneficial Project - Supplier relationships

Contractor shall ensure efficient and effective communication of Project Quality Policy and Objectives to Contractor and subcontractor organizations. Communication of and discussion around project Quality Policy and Objectives shall be conducted at a frequency supportive of project management commitment to workforce engagement and continual improvement

Contractor Project Quality Management System (QMS) is the system of processes by which Contractor will provide Eskom with assurance that Contractor Work deliverables are in conformance with Contract specifications

3.1.2 IMPLEMENTATION

• Contractor QMS shall support Eskom and Contractor Project Management Objectives for safe, efficient and effective implementation of all Work processes and procedures.





• Contractor CQP shall be implemented through utilization of a comprehensive QMS. The QMS shall incorporate Quality management processes and procedures tailored to support Project Quality Policy, Goals and Objectives in all Work functional areas and for all Work deliverables. Project Work functional areas include Engineering, Procurement, Project Controls, Logistics, Materials, Fabrication, Transportation, Preservation, Construction/Erection, Commissioning, Quality, HES, Security, Informational Management and other functional areas under Contractor Work scope.

The Contractor shall follow a graded approach and establish critical products and services, endorsed by Eskom. Contractors, subcontractors and all other suppliers of such products and services shall ensure compliance with QMS performance expectations.

Eskom’s position is to contract with Contractors who fully demonstrate commitment to the development, implementation and maintenance of a Quality Management System that conforms to the requirements of ISO 9001:2008 (or latest applicable revision). or equivalent. The priority is to encourage Contractors to continually improve their quality management system and enhance service delivery by obtaining ISO 9001:2008 (or latest applicable revision). compliance and certification.

• It is the Contractor’s obligation to ensure that their operations and the products and services it provides to Eskom comply with any applicable statutes and or regulations. Any non-compliance by the Contractor and the resultant corrective actions shall be the responsibility of the Contractor.

• The Contractor shall ensure that he complies with the works information and that appropriate quality requirements (as in the main contract) are included in subcontracts placed by Contractors to ensure subcontractor’s compliance with the Works Information.

3.1.3 QUALITY MANAGEMENT IN ENGINEERING

3.1.3.1 Design Quality Plan

Contractor shall develop and implement an Engineering Design Quality Plan incorporating all processes, procedures and supporting documents required to assure delivery of Engineering Work scope deliverables in FEED, Detailed Design, Fabrication and Construction and commissioning.

Contractor Engineering Design Quality Plan shall obtain a minimum of DRC2 status and “ready for implementation” within thirty (30) days of the date of Contract award. However, all documents must obtain the DRC1 status prior to distribution for use.

3.1.3.2 Design Planning and Control

Planning, control, and verification of design activities shall be achieved by Contractor through use of documented processes and procedures that describe the organizational and technical interfaces and that define the necessary information to be documented, transmitted and reviewed as per the process defined in Document Control and Exchange Specification.

The Contractor shall:

• submit for Eskom review documented processes for the execution of the Engineering Work scope including but not limited to the sequencing of Work

• develop a list of Engineering deliverables and an Engineering Deliverables Responsibility Matrix.

• Provide to Eskom within thirty (30) days following contract award the Engineering deliverables and Engineering Deliverables Responsibility Matrix as per the process defined in Document Control and Exchange Specification.

The Contractor shall further ensure that:





• Engineering deliverables and the Engineering deliverables responsibility matrix shall obtain a minimum of DRC2 status and a DRC1 prior to distribution for use. Matrix should describe the internal approval cycle for the Contractor.

• Engineering Design Quality Plan processes shall define work processes including use of design software, alternative calculation requirements, and responsibilities for design activities for each Engineering discipline engaged in the design Work scope.

• Organizational and technical design interfaces shall be identified and shall be controlled by engineering work processes including assignment of personnel with appropriate authority to assure coordination between Eskom, Contractor, subcontractors and Suppliers.

• Engineering Design Quality Plan processes shall provide for Contractor discipline subject matter expert systematic and controlled review of all design activities (e.g. establishing Basis of Design (BOD) requirements, reviewing design inputs, approving design outputs, etc.). Contractor discipline subject matter expert review and approval shall be documented prior to submittal of engineering deliverables for Eskom review.

3.1.3.3 Design Quality Planning

The Contractor shall:

• prepare an Engineering Design Quality Plan or equivalent listing all Quality-affecting activities and deliverables to be performed by each engineering discipline. Design documents including specifications, data and other information contained in the Work scope shall form the basis for design planning.

• utilize detailed review of the Work scope to determine deliverables, including deliverable Quality activities, and delivery schedules represented in the Engineering Design Quality Plan. Based on the activities identified, each engineering discipline shall identify, in a discipline specific plan, the processes, procedures and work instructions to be followed to execute the discipline assigned Work scope.

• ensure that suitably qualified and experienced design engineers are assigned to perform designated work. Contractor Engineering Design Quality Plan shall specify the position identity, responsibility, and authority levels of engineering discipline team members to whom elements of project engineering Work scope execution will be assigned.

The Contractor Engineering Design Quality Plan shall:

• document the basis for checking deliverables and shall incorporate reference checklists and other tools to be used for deliverables review.

• document verification activities, such as inter-discipline squad checks and formal design review requirements.

• specify the engineering discipline or other technically qualified manager responsible for verification that engineering discipline specific design plans are consistent with project Work scope and are executed.

• incorporate a design review and verification process to assure alignment between project functional areas external to Engineering.

• Plans, processes and procedures for management and control of project-related computer hardware and software shall be described in Contractor Automation Plan. All computer software deployed in support of Contractor design activities shall be systematically verified by Contractor in accordance with ISO 90003, “Software Engineering Guidelines for the Application of ISO 9001” prior to deployment to demonstrate fitness for purpose.





Contractor Automation Plan shall receive DRC 1 status prior to implementation.

3.1.3.4 Criticality Assessment and Application

Contractor shall:

• Utilize Quality Assurance and Quality Control activities (e.g. audits, assessments, verification and testing processes and procedures) commensurate with assessment of Criticality. The level of Supplier verification and oversight by the Eskom and/or Contractor is driven by criticality rating that each item or piece of equipment receives.

• Assess Criticality in compliance with Eskom “Criticality Rating Program” and shall obtain a DRC 1 status for Contractor criticality rating processes and process deliverables.

• Utilize Criticality Process outputs in planning for and execution of verification of engineering, design, procurement, construction, installation, hook-up and commissioning activities.

• Obtain DRC 1 status for verification plans.

• Ensure Criticality Ratings have been defined prior to issuing the first RFQ

• Incorporate criticality process outputs into Contractor Engineering Design Quality Plan.

• The criticality rating process should be used as a tool to reach an action plan that minimizes risk to Eskom. The initial criticality rating may be amended (over-ridden) to a higher Criticality Rating during the Supplier selection process based on their known current historical experience and previous knowledge of the applicable potential Supplier and/or Sub-Supplier.

• Contractor criticality process outputs shall be considered a key determinant in development of Quality audit and surveillance schedules and in development of Quality Control Inspection and Test Plans.

• Eskom reserves the right to provide criticality rating for any or all Work scope deliverables.

• The criticality rating system applied shall be commensurate with the following Eskom classification of parts system described as follows:

Classification of Parts

• Class-1 (Vital). Those parts that (1) have no redundancy and (2) are subjected to significant fatigue loads, failure of which could cause a catastrophic effect to/loss of equipment and/or life.

• Class-2 (Critical). Parts, the failure of which could lead to one or more of (1) structural

collapse, (2) a reduction or loss of functional capabilities, (3) unintentional operation or system/equipment shutdown essential to the safe functioning of the equipment and/or (4) injury to personnel. (Immediate action: system shut-down.)

• Class-3 (Significant). Those parts (1) falling within Class-1 or 2, but with such high safety

margin that the probability of failure is so rare that it can be demonstrated only by analysis, or (2) parts not within Class-1 or 2, but (a) the failure of which will cause problems w.r.t. efficiency, or (b) the design philosophy and/or materials used in the manufacturing process are so new that particular qualification tests are required to demonstrate their reliability.

• Class-4 (Non-Significant). All parts not covered by Class-1, 2 or 3.





NOTE 1: Class-1 parts must be uniquely identified by a S/N, Class-2 parts should be serialised, Class-3 parts do not normally require serialisation but may be identified by a S/N, Class-4 parts do not require serialisation. NOTE 2: Installations cannot be classified as vital. However, if a faulty component could cause the loss of the equipment/life, this means that it contains a potentially vital characteristic and an independent double check requirement (i.e. "dual inspection") must be identified.

3.1.3.5 Design Inputs

Contractor Engineering Design Quality Plan shall:

• Include processes and procedures to assure applicable design input requirements, including latest local, state, national and international regulations, and applicable industry codes and standards are identified, documented and reviewed for adequacy. Incomplete, ambiguous or conflicting requirements shall be identified and referred to the appropriate authority for resolution.

• Include processes and procedures to assure interfaces are reviewed for effectiveness in sharing of information and in communication of design input detail, timing and quality of information needs. Disciplines shall include both internal and external interfaces.

3.1.3.6 Design Outputs

Project design requirements shall be translated into specifications, drawings, data sheets, instructions, etc., (referred to collectively as design documents) as necessary to enable subsequent detail design, manufacture, installation and operation to be performed in accordance with Work specifications.

Contractor Engineering Design Quality Plan shall include processes and procedures to assure interfaces are reviewed for effectiveness in sharing of information and in communication of design output detail, timing and quality of information needs. Disciplines shall include both internal and external interfaces. Contractor shall include design output milestones, solicitation of key internal and external end-user/customer comments, requests for clarification and requirements for design outputs.

Design output shall be prepared and maintained in a readily accessible format in accordance with Work specifications. Request by Contractor or by Eskom for revision of design output format shall be subject to formal review by Contractor and by Eskom project management. Authorization to proceed by Eskom shall be required prior to execution of any request for generation of design output in a format not provided for in the Work scope.

3.1.3.7 Design Verification

Contractor shall document processes for design verification including, but not limited to:

• Check and approval of all design documents by suitably qualified and authorized personnel prior to release for use

• Levels of competency of engineering personnel having checking and approval authority.

• Conducting technical audits/internal assessments.

• Where required, witnessing of verification activities by specialist engineers or an authorized third party in accordance with Contract, engineering code or specification or regulation.

Contractor Engineering Design Verification process shall include procedures for formal review and approval of all design documents by suitably qualified and authorized personnel prior to design document release for use.





3.1.3.8 Inter-discipline Check and Review (Squad Ch eck)

Contractor shall designate a Lead Discipline Engineer for each engineering discipline. Contractor Lead Discipline Engineer shall be responsible for verification that interdisciplinary checks and reviews required by the applicable discipline Engineering Design Quality Plan are performed by all affected internal and external interfacing disciplines including Eskom. The issuing discipline will examine all comments received and incorporate them into an updated design or other project document as appropriate. If the issuing discipline disagrees with any comments, the issue will be discussed with the reviewer (discipline organization) concerned until agreement on resolution is reached. No further work may be performed on the disputed activity until satisfactory resolution has been achieved.

Responsibility for filing the original check prints or equivalent on which comments are recorded, including documentation of issue resolution, will reside with the issuing Contractor Lead Discipline Engineer. Each issuing discipline will maintain a file of inter-discipline review records where all comment copies are maintained for the duration of the Project.

3.1.3.9 Design Validation (Including Software Valid ation)

Contractor shall develop and implement an Engineering Design Validation process.

Contractor Engineering Design Validation process shall:

• provide for a documented, comprehensive, and systematic examination of design elements serving to establish the extent to which Work scope deliverables have achieved compliance with Project requirements.

• incorporate but is not limited to design review, performance (simulation) testing, alternative calculation methodologies, mechanical completion checks, commissioning and “ready for start-up” testing.

• include procedures for establishing qualification and competency of engineering personnel assigned design development, design review and design approval authority.

• include procedures for conducting discipline technical audits and internal Quality assessments as work progresses toward identified schedule milestones.

• include procedures providing for witnessing of verification activities by specialist engineers or by an authorized third party in accordance with engineering code, project specification or regulatory requirement.

Contractor Design Validation process and any performance (simulation) testing proposals shall obtain DRC 1 status prior to implementation.

Contractor shall ensure performance (simulation) tests are witnessed by Contractor qualified specialist engineers and shall provide a minimum of fourteen (14) days’ notice of proposed performance (simulation) testing to facilitate observation by Eskom.

Contractor shall employ performance verified and validated computer software during design activities. New computer software deployed in support of Contractor design activities shall be systematically verified in accordance with ISO 90003, “Software Engineering Guidelines for the Application of ISO 9001” prior to deployment to demonstrate fitness for purpose.

3.1.3.10 Design Changes

Contractor shall:

• control all design changes and maintain a Design Change Log. All design changes and supporting documents shall be subject to review by Eskom. Changes to Eskom approved





preliminary design will be controlled, reviewed, and approved in the manner, and as far as practical, by the Engineering team members responsible for the original design.

• obtain written Eskom approval for post-design freeze design changes.

• Supply risk assessment data with request

• prepare a formal, written statement of rationale accompanied by a report detailing engineering, operational, construction, health, environment, safety, and other relevant discipline considerations for any post design freeze design change request.

• ensure that any proposed design change is evaluated for adequacy, safety, conformance with specifications, suitability to fulfil the purpose for which it is proposed and for cost and schedule impact.

• obtain Eskom Approval prior to commencement of detailed design change.

• develop and efficiently and effectively implement a post-design freeze Design Management of Change (MOC) process for any Eskom approved detailed design change. Contractor Design MOC process shall incorporate validation of efficient and effective use of Engineering and other discipline design processes and in particular shall ensure utilization of Contractor inter-discipline check and review processes.

• include in its processes for control of detailed design changes, a Process Safety Management of Change Procedure to identify and review changes that occur on documents used for the Design Hazard Review. The procedures shall be applicable to any changes in these documents through turnover. Changes to documents used in process hazard analysis shall be controlled using appropriate Eskom and/or national and international standards as a guideline e.g.US OSHA 1910.119.

All design changes shall be reviewed by the responsible discipline team member and approved by Contractor discipline lead engineer and all other discipline leads that are impacted by the change. Revised sections of design documents shall be marked and numbered for easy and quick identification.

A Detailed description of design changes shall be logged and recorded on the revised drawing or other design document prior to submittal for Eskom review. On achieving approval of the change, revised documents shall be re-issued in accordance with Contractor document distribution and control procedures and DRC1 status achieved prior to implementation. Records of changes shall be kept for the prescribed contract period agreed by all parties.

3.1.3.11 System and Sub-System Lists

Contractor shall complete System and Sub-System Lists during FEED, Detailed Design and prior to issuance of work authorization for Fabrication and Construction. Identification of System and Sub-System and associated Quality verification documents shall be prepared prior to initial stages of construction to facilitate development and implementation of Construction Contractor tracking systems. During Construction, Identification of System and Sub-System Lists shall serve as the basis for tracking, completing and compiling construction Quality verification documentation. Identification of System and Sub-System Lists, and their Eskom Quality verification documents, shall be developed and maintained in a format suitable for ease of incorporation into handover to operations Systems Dossiers.

3.1.3.12 Design Element Identification, Traceabilit y, and Composition Verification

Contractor engineering design procedures shall include provision for unambiguous identification of design elements including but not limited to materials, systems, equipment and other components. Contractor shall comply with Eskom specification regarding traceability and Positive Material Identification (PMI) for design elements identified as subject to Eskom requirements.





Design elements identified for enhanced control, e.g. (Criticality 1, 2 and as required 3) systems or system elements, shall be managed under Contractor product identification and traceability program from completion of detailed design through all subsequent Project phases, including handover to operations.

Contractor engineering shall ensure efficient and effective communication of design element components subject to enhanced control through positive identification and traceability procedures to project Procurement and Quality.

3.1.3.13 Design, Safety and Model Reviews.

Contractor shall:

• document processes for conducting design, safety and model reviews. These processes shall receive DRC1 status prior to implementation. Design and safety reviews shall include a process hazards analysis using appropriate Eskom and/or national and international standards as a guideline e.g.US OSHA 1910.119. Design, safety and model reviews shall be planned, formal meetings during which an appropriately qualified multi-discipline team examines aspects of the design. The reviews shall at minimum consider compliance with Eskom Safety in Design standard and Eskom Operations Assurance Process requirements. Contractor process document shall provide for and describe Eskom role in design, safety and model reviews.

• provide Eskom a minimum fourteen (14) day notice of design, safety and model reviews to allow for appropriate Eskom personnel representation. Design, safety and model Review timing shall be reflected in the project schedule.

3.1.3.14 Constructability Maintainability, Operabil ity Reviews

Contractor shall:

• document processes for implementation of constructability maintainability, operability reviews which include consideration for working at heights, safety in design, and other hazardous work conditions. These reviews shall be planned, formal meetings during which an appropriately qualified multi-discipline team examines aspects of constructability, maintainability and operability.

• provide Eskom a minimum fourteen (14) day notice of such reviews to allow for appropriate Eskom personnel representation. The timing of constructability, maintainability, operability reviews shall be reflected in the project schedule

• document outputs from reviews and make these available to Eskom on request.

3.1.4 QUALITY MANAGEMENT IN FABRICATION & CONSTRUCT ION

3.1.4.1 General

• Contractor fabrication, construction and completions Quality Management organization shall be independent from those performing the Work.

• Fabrication, construction and completions Quality Management organization chart shall clearly illustrate reporting relationship between Contractor fabrication and construction site project Quality Management organizations and Contractor home office Quality Management organization.





• Contractor shall document and make available for Eskom review a comprehensive fabrication, construction and completions Quality Management Pla n (CFCCQMP). CFCCQMP shall include all Quality Management plans, processes, procedures and methods.

• CFCCQMP and organization structure, including a bar chart representation of the schedule proposed for personnel mobilization, shall be submitted for Eskom review not later than sixty (60) days prior to start of Work at any Fabrication or Construction site. Such mobilization shall be in compliance with “Project Quality Personnel Qualification Specification”.

• CFCCQMP, Quality Management organization structure and mobilization schedule shall obtain DRC 1 or 2 statuses prior to implementation.

• CFCCQMP shall ensure Fabrication and Construction Quality Management requirements for Work scope systems, system components, equipment, materials and other procured goods are clearly and unambiguously documented, and are efficiently and effectively communicated to Project Procurement, Logistics, Construction Management, Quality, Security and other Project functional areas (as required for efficient and effective support of Fabrication and Construction Work scope).

• All applicable codes, standards, and relevant acceptance criteria documents are available at the work location and that Eskom representatives on site shall have on going access to this information. Workplace documentation shall be available in English and in any workforce appropriate language.

• Contractor fabrication, construction and completions Management shall develop and implement a process for efficient and effective communication to Project Engineering, Security, Procurement, Logistics and other Project functional areas regarding environmental, workforce, community, government or other challenges, threats or factors which impose a need for change in Fabrication or Construction site management process or procedure.

• Key characteristic

Manufacturing processes can be improved through adequate planning and effective management of key characteristic variation . The key characteristics focus is intended to improve confidence for part features whose variation has a significant influence on end-product’s form, fit, performance, service life and manufacturability.

• What is a Key Characteristic? For a part, subassembly or system, it is defined as

selected geometrical, material properties, functional and/or cosmetic features, which are measurable, whose variation control is necessary in meeting customer requirements and enhancing customer satisfaction. Key characteristics are also selected measurable parameters of a process whose control is essential to manage variation of part or system key characteristics.

• How are Key Characteristics defined? The key characteristics owner normally defines

them. The owner is either a person or function that recognizes the reasons for selection of the key characteristic. Typically, these responsibilities are held by internal or external design, quality or manufacturing engineering, and should be identified by a cross-functional team.

Key characteristics shall be defined, by the OEMs and at the discretion of Eskom, to direct Quality Control efforts.





3.1.4.2 Quality Audits and Related Quality Performa nce Reviews

• Quality Audits and related Quality performance reviews are intended to provide an objective evaluation of compliance with performance expectations defined in this specification, in Contractor CQP and in any other project Work scope specification.

• Quality Audits and related Quality performance reviews include but are not limited to any Quality or other project functional area audits, assessments, verification of compliance reviews, surveillance, inspections, or other interim or final assessments of Work scope deliverables provided by Contractor, subcontractors or Suppliers.

• Quality Audits and related Quality performance reviews shall be carried out by trained, accredited and experienced personnel in accordance with procedures documented in the CQP.

• Contractor shall submit for Eskom review documented processes for conducting project Work scope Quality Audits and related Quality performance reviews. Contractor Quality Audits and related Quality performance review processes shall be designed to address evaluation of progress toward completion of project functional area deliverables as well as final deliverable quality.

• Contractor shall provide a schedule of anticipated Quality Audits covering all functional areas and related Quality performance reviews at the time of first post-contract award CQP submittal.

• Contractor shall maintain an accurate Quality Audit and related Quality performance review schedule and shall incorporate the current schedule as an attachment to the Contractor CQP.

• Contractor Quality Audit and related Quality performance review schedule development process shall be designed to incorporate consideration of information generated by previously conducted audits and reviews, by input from project risk management evaluations (Risk Register) or from Eskom, Contractor, or subcontractor subject matter expertise

• Eskom reserve the right to oversee Contractor audit programs by participating in selected audits as an observer, and by assessing Contractor at key work stages. Eskom will coordinate with Contractor to develop an oversight schedule aligned with Contractor audit schedule.

• Eskom will have right to obtain access to any audit reports performed by the Contractor reflected in the audit programme

• Eskom reserves the right to conduct independent Quality Audits – scheduled and unscheduled - during all phases of the Contract. Contractor shall provide all resources to support these activities.

• Eskom shall be given access at all reasonable times before, during and after manufacture and before delivery, construction, erection, commissioning to measure, test and inspect the products and workmanship as necessary on the Contractor’s premises and on Eskom sites.

• The Contractor shall obtain access for Eskom to measure; test, witness tests, and inspects products which are being manufactured by any subcontractor. This includes surveillances.

• Assessments and audits shall be carried out on all new Contractors and its subcontractors.

• Eskom shall have the right to participate or request for a technical investigation to be launched and conducted on the Contractor and subcontractors premises or other sites, when risk to Eskom products or service deliverables are identified.

• Qualification requirements for Contractor and subcontractor personnel engaged in conducting Quality Audits and related Quality performance reviews shall be defined in the Contractor CQP and shall be in compliance with “Project Quality Personnel Qualification Specification”.





3.1.4.3 Eskom Right of Access

Eskom:

• shall be granted electronic and hard copy access to all quality plans, procedures, documentation, and other quality records relating to the Work including but not limited to data extracts.

• reserves the right to review, inspect and audit any or all parts of the Contractor QMS as well as any documentation, materials or equipment associated with the Work, at any time or Project Work location.

• shall carry out assessments and audits on all new Contractors and subcontractors

Contractor:

• Shall support Eskom effort to monitor, verify and/or witness any activities associated with the Work at any time.

• Shall cooperate with Eskom requests for documentation, records, and inspection and witnessing. Eskom participation in audits, appraisals, assessment of plan and verification shall be conducted at no extra cost to Eskom

• Shall ensure supplier provides access to Eskom to all Work procedures, quality records, and to all supporting documentation through provision of access to view and photocopy as required to support verification of Work scope requirements. Access shall include the ability to photograph Eskom equipment, systems, system components, materials, etc.

• Provide access to all Quality related information pertaining to activities performed by itself or subcontractors, which Eskom might not have participated in the witnessing of quality assurance or control thereof (this refers to inspections, audits, etc., performed by the Contractor on its own subcontractors)

• Eskom shall be allowed to assess, audit, approve or reject any sub-contractors employed by Eskom's Contractors/Suppliers to assist with the product and/or service delivery to Eskom.

• Shall ensure above requirements are flowed down to subcontractors

3.2 TENDER SUBMISSION PHASE

3.2.1 Contractor documents with the tender

The Contractor shall submit the following documents with the tender:

(All documentation submitted shall be in English).

a1] The Contractor shall complete and sign Form A (Enquiry/Contract/Quality Requirements)

a2] The Contractor shall complete and sign Form B (Quality Requirements for Quality Management ISO series)

a3] The Contractor shall attach the following:

a4] A copy of the CV/Resume of the Contractor’s quality management representative

a5] The Contractor shall attach a copy of ISO 9001:2008 (or latest applicable revision). certificate or objective evidence (e.g. copy of a compliance audit report) of a QMS that complies with ISO 9001:2008(or latest applicable revision).

a6] The Contractor shall attach a copy of the latest structure/organogram of the quality function/ department, including an abridged indication of qualifications of personnel. This structure





shall indicate to whom the organizations quality management representative reports in the organization

a7] Information on similar work performed (at most within the last two years)

a8] Sample CQP (including a QCP and ITP) from a similar project carried out within the last two years.

a9] A sample Non-conformance report shall be attached to tender

a10] A sample of a corrective and preventive action report shall be attached to tender

a11] A sample of an audit schedule and report on a sub-Contractor

a12] A detailed description of the process and procedure for the evaluation, selection and control of suppliers and subcontractors shall be attached to the tender

a13] Any quality management accreditations (NDT/ NDE/ Welding) and special processes requiring certification

a14] List of long lead items

a15] Preliminary manufacturing schedules

a16] Preliminary risk assessment data

a17] Preliminary list of critical characteristics

3.2.2 The Contractor shall submit a draft Contract Qualit y Plan (CQP) with the tender.

The CQP shall contain the following information (Refer Annexure C):

b1] A cover page containing the following information:

a. The draft contract title

b. The Eskom tender number

c. The draft contract commencement and completion dates

d. The names, designations, signatures, of personnel responsible for preparing and approving CQP

e. Provision for Eskom acceptance of CQP

f. An index of contents

g. A full description of the Works Information

h. A description of the communication channels between the Contractor and Eskom regarding all quality related issues (fixed contract meetings)

i. An organogram showing the structure of the Contractor, which shall show the quality management representative, and all other personnel responsible for control of quality activities/processes

j. An index of all the interfacing documents between the Contractor and Eskom

k. A schedule (Index) of documents / records that shall be:

i. Submitted to Eskom during the contract

ii. Captured on the Contractor’s QMS

iii. Submitted to Eskom prior to the completion of the works/contract

iv. A list of all sub-Contractors that shall be utilized during the contract.





l. This list shall indicate:

i. the scope of supply of product and or service,

ii. a method of acceptance of these sub-Contractors by Eskom shall be indicated

iii. An indication of how the sub-Contractors shall be controlled and monitored during contract execution

iv. Objective evidence that Contractors sub-Contractors will work to the specified quality standard

v. An index of products that shall be:

a. Manufactured by Contractor /subcontractor

b. Refurbished by Contractor /subcontractor

c. Purchased as a new product

vi. A list of products/processes for which QCPs, ITPs WILL BE and WILL NOT BE prepared

vii. A list of products/processes/services that require special controls (e.g. welding, NDT/NDE)

viii. A description of the interface of the sub-Contractors and Contractors/suppliers QMS and applicable documents, procedures and work instructions

ix. An index of all standards, specifications for all processes, products, materials and plant applicable to the works/contract

x. A description of how all quality records shall be controlled (e.g. identified, completed, retained and disposition)

xi. A list of purchase orders for quality critical products showing purchase order number and scope of supply

xii. Application for defects acceptance (concessions) registers to be updated during the Contract.

xiii. A typical copy of the suppliers/ Contractors concession request register which shall be updated during the project/contract

xiv. Databook index and O&M Manual

xv. Spare parts inter-changeability records

3.3 TENDER EVALUATION, ADJUDICATION AND NEGOTIATION PHASE

a) Eskom shall carry out a full technical and QMS assessment on a Contractor.

b) Eskom shall carry out an evaluation of quality documentation submitted with each tender.

c) Eskom shall have the authority and right to assess all of the Contractor’s subcontractors

before Contract award and to reject any that do not meet its requirements.

3.3.1 Subcontracting

a) Submission of subcontractor’s contract administration plan (CAP).

The Contractor shall compile and submit a contract administration plan for Eskom’s acceptance. The CAP must contain the following:





- a full schedule of subcontractors to be used during the lifecycle of the project. Such schedule shall include past performance of subcontractors as well as capabilities matrix

- the portion of the works information or volume of work to be subcontracted to each subcontractors with monetary value

- a schedule indicating how subcontractors were or will be pre-qualified,

- the form of contract that will govern and regulate relationships between the main Contractor and all subcontractors including term and conditions of contract

- subcontractors performance monitoring and control strategies

- a risk register listing all foreseeable contractual risks associated with the usage of subcontractors, sub consultants and suppliers with relevant and applicable risk management strategy.

• All risks/foreseeable risks must be listed under contract data provided by the Contractor. Risks to be carried by the main Contractor shall be separated from those to be carried by subcontractors

• The risk management strategy must be aligned to actual costs and percentages stated in the schedule of costs components

- subcontractors respective high level programmes including subcontractors execution statements and respective interfaces

- subcontractors schedule of insurances

- a contract communication plan whenever there is deviation from the communication plan presented by Eskom and/or the NEC applicable contract

- a guaranteed performance. This refers to the quality and conditions in which the works will be upon completion and hand over to Eskom

- subcontractors payment schedule processes

- subcontractors change management processes

- termination processes

b) Pre-qualification of subcontractors by the Contractor

• the Contractor shall pre-qualify all subcontractors in respect of overall competence and capability and quality management system, by mean of a formal audit or assessment. All subcontractors shall comply with the requirements of ISO 9001:2008 (or latest applicable revision).or equivalent

c) Supplier and subcontractor Qualification and Selection

• Contractor shall develop and execute an effective and efficient program to ensure Project Supplier and subcontractor qualification is conducted in compliance with Eskom “Project Supplier Qualification Program”.

• Eskom shall be allowed to assess, audit, approve or reject any sub-contractors employed by Eskom's Contractors/Suppliers to assist with the product and/or service delivery to Eskom.

• Contractors/Suppliers shall unambiguously acknowledge that Eskom’s acceptance of the quality credentials of sub-contractors does not rel ieve the Contractors/Suppliers from any of their contractual and regulatory obligations . The Contractors/Suppliers remains fully responsible for compliance with all the provisions of the contract and furnishing products/services





which meet all applicable requirements of the contract, whether such products are manufactured, processed, provided or procured by the Contractors/Suppliers for the contract.

• Contractor shall source all services, materials, supplies, equipment, systems, system components, etc. from firms identified in Eskom Approved Vendors List (AVL). Should Contractor identify the need for sourcing from a firm or firms not currently included in Eskom AVL, Contractor shall notify Eskom in accordance with process defined in “Project Supplier Qualification Program (Contractor Request)”

• Use of services, materials, supplies, equipment, systems, system components, etc. from unlisted sources prior to receiving Eskom approval shall be subject to immediate incident investigation to determine the origin and nature of deviation from procedure and system requirements. Proposed incident corrective action shall be submitted to Eskom for approval. Repair and or replacement expense shall be assigned to Contractor account.

• Where corrective action includes independent testing, such testing may include: mechanical testing (tensile strength, elongation, charpy, etc.), chemical composition (wet chemical analysis), and any other supplemental testing required by the original material specification or Project requirements. Contractor shall be responsible for the cost of additional testing regardless of test results. Should Eskom elect to deny use of the material, all replacement material shall be furnished at Contractor cost.

d) Management of subcontractors during project execution phase

• the Contractor shall submit the names of all proposed and qualified subcontractors for approval by the Project Manager.

• The Contractor doesn’t appoint a subcontractor or make use of his services or allow him to access site without prior written consent / acceptance of Eskom.

• the subcontractor and the conditions and terms governing the contractual relationship between the Contractor and subcontractors must also be presented to the Eskom for acceptance

• the Contractor and all his subcontractors shall acts in accordance with the health and safety requirements as stated in the works information

• The Contractor shall, for the duration of the contract, maintain a list of approved

subcontractors including the scope of supply for which they are approved.

• The Contractor shall at all times ensure that the following particulars in respect of all its subcontractors are submitted to Eskom, within 4 weeks of contract placement. The Eskom reserves the right to satisfy itself on the validity thereof:

• Name and Address;

• Portion of the Works Information to be subcontracted;

• subcontractor’s QMS and certificate number (if certified) or audit report number (if not certified);

• Current scope of supply as recorded on their ISO 9001:2008 certificate; or other proof

• Previous experience in supplying identical or similar work;

• Approved by Contractor: Yes/No; Date of Approval.

• The Contractor shall not replace a subcontractor without informing Eskom

• Changes of subcontractors or their details must be communicated to Eskom prior to execution





3.4 CONTRACT AWARD PHASE

a) Access to premises, facilities, documentation and information:

i. Eskom or its inspection agency shall be afforded access to all areas of the Contractor’s and Subcontractors’ premises and facilities, to conduct quality audits, surveillance, investigations, expediting and inspections to verify compliance with the agreed requirements.

ii. Eskom reserves the right to participate in incident investigations if the quality and / or technical characteristics of product and/or services to Eskom are affected, irrespective of whether the incident occurred on an Eskom site or the contractor’s premises.

iii. All quality system documentation, records, reports, etc., shall be made available for review when requested by Eskom or its appointed inspection agency. The Contractor shall give written permission to its product and quality management system certification bodies, and/or any inspection/testing authority acting on its behalf, to make available all information at its disposal, and without any reservation, for review by Eskom, or by its appointed inspection agency

iv. The Contractor shall provide suitable facilities to Eskom or its appointed inspection agency, and shall supply any assistance necessary for the performance of any audit, surveillance, assessment and/or inspection activities to be conducted by Eskom

v. The Contractor shall provide timely notification to Eskom of changes to any agreed-upon request for inspection

vi. The Contractor shall ensure a safe working environment for Eskom or its appointed inspection agency, by informing it of the necessary safety requirements and possible safety hazards

b) Eskom non-conformance & inspection defect/reject reports:

i. Non-conformance reports raised by Eskom and issued against the Contractor shall be investigated by the Contractor as a matter of urgency, in order to determine the root cause, corrective action and preventive measures as required, with the implementation time-frames. Initial response within 3 working days.

ii. A formal response shall be prepared in respect of the defined criteria, and submitted to Eskom for its review, evaluation and acceptance, within a maximum of fourteen (14) calendar days from the date of issue of the non-conformance report see note at bottom of page on hard copy

iii. Eskom may at its discretion request a response sooner, and in any case before the supplier proceeds with any pending/further intervention or corrective action as may be required by Eskom.

iv. Should Eskom or its inspection authority/agency identify any non-conforming products/service during the conduct of its audits/surveillances/inspections, the supplier shall be deemed to be in breach of contract, and shall be held liable for any repair, rework and/or associated replacement costs. The Contractor may in such instances also be held liable for the full costs associated with the conduct of follow-up audits/surveillances/inspections

v. The nature, magnitude and/or frequency of non-conformance or inspection defect/rejection reports raised by Eskom or its appointed inspection authority/agency, shall form the basis of any action to rescind the supplier’s qualification status.





3.5 CONTRACT AWARD AND QUALITY CONTROL PHASE

3.5.1 Pre-contract execution

3.5.1.1 Supplier and subcontractor Quality Management Plan

Contractor shall require Suppliers and subcontractors to submit project Quality plans and associated documentation in accordance with requirements of Project Quality Management System processes applicable to subcontractor or Supplier Work scope.

Contractor shall, where applicable based on Work scope Criticality, ensure Procurement documents clearly and unambiguously require Supplier and subcontractor submission of a Supplier or subcontractor CQP for Contractor and Eskom review. Supplier or subcontractor CQP shall achieve DRC 1 status prior to implementation.

Contractor shall ensure Supplier or subcontractor CQP are developed and implemented in accordance with ISO 10005 Quality Management System Guidelines for Quality Plans and with the applicable provisions of this Exhibit. In addition to the elements specified in ISO 10005 and in this Exhibit, Supplier or subcontractors CQP shall include:

• A comprehensive QC/ITP in compliance with section 4.9.4

• Management of records, including material tests, PMI testing, material certification, etc.

• Provision for free and uninhibited access by Contractor and/or personnel at the time of inspection.

• Proposals for submission of final documentation the final Manufacturing Data Book prior to shipment. (section 4.9.12)

• Management of welder qualification (WQR), welding procedure specifications (WPS) and procedures qualification records (PQR) that will be used in the performance of Work for Contractor review and acceptance prior to commencing manufacture. Welders shall be qualified to the specified Codes of Construction for the applicable procedures. The requirements for qualification shall be specified by Contractor and welder records shall be maintained by Supplier or subcontractor performing the Work.

• Special installation procedures and other required fabrication or manufacturing procedures (i.e. those required for post weld heat treatment, tube rolling, coatings, etc.) that will be used in the performance of Work shall require Contractor review and acceptance prior to commencing manufacture. Personnel carrying out special processes (e.g. NDE, welding, coating, heat treatment, etc.) where the results cannot be fully verified by subsequent inspection and test shall be suitably qualified and where applicable registered with statutory bodies as legally required ie. as Radiographic workers to conduct Radiography. The requirements for qualification shall be specified and personnel records shall be maintained in accordance with “Project Quality Personnel Qualification Specification” and where applicable legal requirements.

• Personnel required to perform Special Processes shall be certified competent through a Certificate of Competency in accordance with the company's internal training management and competency control procedures, or an external certification body (e.g. NDT).

• All personnel who perform activities that affect quality shall have their training needs identified and documented. The required training shall be implemented in accordance with the company's training management and competency control procedures.

• Instructions and requirements for equipment and materials storage, preservation, and maintenance, including identification of materials required for preservation and maintenance, are





to be provided sufficiently prior to receipt (prior to shipment or earlier) to ensure appropriate resources are available at the time of delivery.

Supplier and subcontractor CQP shall comply with Eskom “ Mandatory Quality Requirements Specifications” and shall be submitted prior to the initial Work scope Kick-off or initial Pre-fabrication meeting and prior to commencement of manufacturing, whichever is earlier.

3.5.1.2 Supplier and Subcontractor Inspection and Documenta tion Requirements

Contractor shall develop and implement processes and procedures which efficiently and effectively monitor, verify and document Quality of Work scope deliverables. Contractor shall ensure that Supplier & sub supplier QCP/ITP’s are prepared at a level of detail sufficient to address all Quality Control related activities in chronological order, from contract review through materials verification, manufacturing, fabrication, assembly, final testing, documentation, and certification. In addition, Contractor shall ensure compliance with the following requirements:

• All stages of manufacture, fabrication, assembly and installation shall be controlled by a Supplier QCP/ITP that clearly and unambiguously identifies the Quality verifications to be performed. Special attention to controls related to critical products and services

• All Supplier QCP/ITP activity shall be performed using an Eskom approved Supplier QCP/ITP.

• Supplier QCP/ITP and all documents included with, referred to or incorporated by reference in Supplier QCP/ITP shall be submitted for review and comment by Contractor and by Eskom within fourteen (14) days after the award of the PO. All Contractor and Eskom comments shall be resolved before commencing work.

• Inspection and test activity shall not be initiated prior to receipt of DRC 1 status for the subject QCP/ITP.

• All applicable codes, standards, and relevant acceptance criteria documents are available at the work location, and that Eskom representatives on site shall have on-going access to this information. Workplace documentation shall be available in English and in any workforce appropriate language.

Where activities subject to Inspection and Test protocols are to be undertaken by a subcontractor or Supplier, the QCP/ITP shall make reference to this fact and shall include descriptive details of subcontractors or Supplier involvement. A separate QCP/ITP shall be required for each subcontractor or Supplier Work scope.

Contractor may authorize use of Supplier or subcontractor QCP/ITP format providing it is in compliance with the above.

Contractor shall be ultimately responsible for the development and proper implementation of all Supplier QCP/ITPs, including those reviewed or developed by subcontractors and Suppliers.

Eskom reserves the right to select witness and hold points within all developed Supplier QCP/ITPs for Eskom oversight of selected functions and to perform surveillance or audits of the Work.

Completed ITP’s with the Contractor’s intervention points will be submitted to Eskom to enable the latter to fill in its preferred intervention points. Once signed, the ITP’s and CQP’s become addendums to the main contract. These ITP’s can be reviewed at Eskom’s discretion based on its assessment of the Contractor’s performance or other risks. The ITP’s should cover materials certification, fabrication works, in process inspections, final acceptance tests, packaging and pre- shipment/transportation, shipping/transportation inspections where contracted, preservation, site acceptance tests, construction and erection works, pre-commissioning and commissioning tests.

Quality Control Plan and an Inspection and Test Plan shall contain the following information:

• Eskom contract number and title





• The Contractors order number

• Identification of the area of works/contract

• Description of the work with components, item number and activity date

• QCP/ ITP unique number

• The dates on which the activities are due to start and end

• A list of the sequence of operations, including inspection and tests

• The identification of the specification, drawing number, or procedure for each operation, with reference to the relevant criticality risk rating, FMECA and or HAZOP information

• The acceptance criteria with reference to the technical specification, in-house, national, or international standard, with the relevant clause number for each operation

• The inspection and test activities that the Contractor has nominated for his hold and witness points

• Provision for the inclusion of hold, and witness nominated by Eskom and or authority/agency

• Provision for hold, and witness point acceptance by date, and signature for all parties having intervention in the plan

• Inspection and test records to be generated by the Contractor for each operation and an indication of records to be provided to Eskom (as applicable)

Contractor shall require all Criticality 1, 2 and as required Criticality 3 Suppliers and subcontractors to submit QCP/ITPs and associated documentation applicable to Supplier and subcontractor scope of Work. Any changes made to QCP after submission must be resubmitted to Eskom for further review. Contractor shall ensure that all Supplier and subcontractor QCP/ITPs are in compliance with Eskom “Mandatory Quality Requirements” Specifications including but not limited to the following requirements:

• Clear and unambiguous description of the equipment and location(s) at which each activity will take place, including facility location(s)

• Identification of Quality verification activity and stage

• Details of reference documents, procedures or method statements to be utilized in performance of the activity, including specific reference to actual sections and pages of procedures, standards, instructions, specifications, etc.

• Definition of acceptance criteria

• Listing of certifying or verifying documents generated to provide evidence of compliance with specified requirements. Documents are to be provided using the proper Eskom document numbering requirements.

• Identification of Contractor, subcontractor (where applicable) third party/AIA, and Eskom inspection activities defined in terms of Witness, Hold, Document Review and Verification Monitoring points and provision for sign off of each of the abovementioned parties for each intervention point.

• Qualification requirements for Quality Control inspectors, including any third party/AIA inspectors

• Listing of all proposed test procedures

• Acceptance criteria for each inspection or test in alignment with specified tolerances





• A section for signed acceptance of the QC/ITP by the Contractor, sub-contractor (where applicable), third party, and Eskom prior to commencement of work.

• Inspection or testing witness and hold points including but not limited to Factory Acceptance Test and package acceptance test, witness and hold points

• The Contractor must provide a written Procedure for notification of witness and hold points as specified in Eskom “Mandatory Quality Requirements” Specifications

• Provision for progressive review of MDR as fabrication/construction proceeds

A quality kick-off meeting will be held at the start of the contract and, if required, at the start of each subsequent phase.

• Contractor shall arrange Coordination meetings with Eskom prior to placement of orders for Criticality 1 or 2 items or equipment to ensure all technical and commercial requirements are clear and understood. Fourteen (14) days advance notice of meetings shall be given to Eskom

• Pre-manufacture and pre-fabrication meetings shall be held at Supplier shop before commencement of manufacture for all Criticality 1 and 2 and as required for Criticality 3 items and equipment to review manufacturing plans and procedures and to ensure Work scope product Quality verification requirements are clear and understood.

• Contractor inspection personnel, including inspection agency personnel, shall be competent and qualified to perform inspection and testing assignments. Mobilization of all such personnel shall be in compliance with “Project Quality Personnel Qualification Specification”

Contractor shall ensure that Supplier and Subcontractor are provided with comprehensive, clearly written and unambiguous inspection and testing protocols including processes, procedures and methods which shall include but not be limited to the following:

• Requirements for inspection checklists and inspection assignments with lists of items to be inspected.

• Inspection and testing report format, report content, schedule for report processing and distribution and report retention requirements.

• Inspection and test report results response tracking (log) and resolution of non-conformance in inspection and test processes, procedures or methods and non-conformance identified in inspection and test results.

• Associated FMECA reports relating to the equipment and sub-systems (if applicable).

• HAZOP study report as applicable

Contractor shall establish processes and procedures to ensure final pre-shipment verification of deliverable Quality for Supplier and subcontractor sourced Criticality Level 1 and 2 Work scope deliverables and, where requested by Contractor or Eskom, Criticality Level 3 Work scope deliverables. Verification reports shall obtain DRC 1 status prior to shipment.

Contractor shall establish processes and procedures for formal assessment of Supplier and subcontractor inspection and testing programs. These shall include review of Supplier and subcontractor inspection reports and other Quality Control documentation. Additional formal assessment of manufacturing, fabrication and assembly facility operations shall be conducted by Contractor to ensure continuing suitability, adequacy and effectiveness of the Supplier and subcontractor inspection and testing programs. Assessment frequency shall be established in consideration of Supplier or subcontractor Work scope, Criticality of Work scope deliverables and performance information. Assessment scope and schedule shall be developed in consultation with Eskom.





Contractor processes and procedures for verification of Supplier and subcontractor purchased product compliance with specifications shall obtain DRC 1 status prior to implementation.

The objective is to finalize any outstanding procedural or other issues before proceeding to deliver the Works.

Eskom, in consultation with the Contractor, develops an agenda for the meeting.

Eskom will keep minutes of these meetings.

Mandatory pre-inspection meetings will be convened by Eskom or its Inspection Agency or AIA to be attended by the Contractor and subcontractors representatives, including their Quality representatives who will be involved with the Works and records to be kept.

Eskom reserves the right to appoint resident quality inspectors that can be based at the Contractor or subcontractor’s premises and on site where the work is being performed. The Contractor is expected to provide work space at no cost to Eskom, for the inspector as required.

Eskom may appoint any organization it prefers to perform quality assurance and quality control activities, either in the capacity as an AIA or Inspection Agency, on the works contracted to the Contractor, and the Contractor or his subcontractors may not object, prevent, hinder, undermine, circumvent, question, discredit or in any way make it impossible for such organization to carry out its work on behalf of Eskom.

3.5.2 Contract execution

The Contractor shall submit the following documents within thirty (30) days after the contract date, prior to the commencement of work, for acceptance by Eskom:

• Contractors shall complete a QCP before contract award. This shall be reviewed and signed off by Eskom

• Contractors shall complete a CQP before contract is awarded. This shall be verified by Eskom

• A Contract Quality Plan and ITP(s) for review and acceptance by Eskom prior to the commencement of any work, inclusive of subcontracted work

• Equipment lists and an indication of pressurised components and systems.

• Method statements for works (describing how work will be executed)

Note: These plans are to be compiled in line with Eskom’s requirements and will have to be discussed with, and approved by, Eskom prior to any work commencing.

Correspondence on any Quality aspects shall be directed to the Project Manager and at all times copied to the nominated Project Quality Manager or its Quality representative for the contract.

Mandatory Quality Review meetings will be convened by the nominated Project Quality Manager or its representative for the contract.

Monthly Quality performance and management reports will be prepared by the Contractor during contract execution. The content of these reports shall be agreed by Eskom when submitted to Eskom on a monthly basis.

3.5.3 Inspection Reports

The Contractor shall provide typed inspection reports to Eskom after each visit to the vendor/subcontractor site by Contractor inspector or on a weekly basis if resident inspector.

Reports shall be submitted to Eskom within two (2) calendar days of submittal to Contractor and shall be in English and in any workforce appropriate language.

Each report shall be assigned a unique identification number.





A log of reports shall be maintained by the Contractor by Purchase Order.

Each report is to include but not limited to the following clearly identified sections:

• Engineering status;

• Material status;

• Fabrication/production status (include scheduled starting and shipping dates);

• Inspection performed during that visit;

• Significant conditions found requiring rework, repair or replacement by vendor;

• Action and punch list items (including who is responsible for taking action and when action is to be completed);

• Estimated completion percentage, and delivery dates;

• Testing information (if applicable);

• Safety observations; and

•• Areas of concerns.

• Contractor shall add the following information as a minimum with the initial inspection report:

o Estimated start/finish dates;

o Shop work hours, days of week;

o (Shop) vacations and holidays;

o Overtime requirements;

o Number of subcontractors to the vendor; and

o Safety observations.

o Areas of concern Technical & administrative

• Methods of documenting failures, deficiencies and reporting

• Section for the inserting the criticality rating of the product/component. This rating will be provided by the Contractor based on the FMECA and HAZOP studies and a documented work procedure.

• Definition of terms

• Any other documents as prescribed by Eskom.

3.5.4 Non-conformance Reports and Log

All non-conformance reports (NCR) shall be timely maintained in book/binder form by Contractor. This also includes NCR’s of all sub-vendors/ subcontractors. Both the initial NCR issue and the dispositions are to be included in the book/binder. This book/binder is to be readily available to any Eskom personnel upon request.

Eskom shall be notified of the generation of any non-conformance reports (NCR) on a timely basis in accordance with Eskom approved project quality plan (PQP), so that any Eskom input or guidance can be rendered. In addition, an NCR log shall be maintained showing all NCR's and descriptions, along with dates showing when the NCR was generated, resolved, and by the responsible personnel. The updated log shall be issued weekly to Eskom and site representative.

Resolution of NCR’s, shall be the responsibility of Contractor; however, Eskom shall be kept informed by Contractor of all significant issues; e.g., major weld repair, test failures, non-conforming materials, etc.





All dispositions requiring Eskom approval shall be sought by Contractor using Eskom approved concession request process and form.

Recurring problems shall be addressed by Contractor. Eskom may possibly offer solutions/ideas to minimize such occurrences.

Eskom reserves the right to audit the control of non-conforming products, including associated documentation.

Prior to the commencement of work, Contractor NCR documentation requirements shall be reviewed, discussed, and agreed upon between Eskom and Contractor. The results of this agreement shall be documented and included in Contractor QA/QC plan.

Dispositions of “conforms to requirements” shall not be used for items that do not conform to stated requirements. Eskom reserves the right to reject any equipment or component that does not fully comply with these specifications or requirements at any stage in the project life cycle. Replacement of the equipment or components shall be at Contractor’s expense

NCR’s should be closed prior to the next phase if the subsequent process does not allow for compliance to be achieved.

Root cause analysis is a mandatory function leading to effective preventative action if issued with NCR’s, Contractors/Suppliers shall attach a completed Root Cause Analysis (RCA) to all NCRs with critical and major non-conformances. The RCA shall be similar to Eskom QMS procedure QM-56: "Quality Root Cause Analysis".

3.5.5 Contractor’s inspection and testing

Contractor shall perform quality control inspections and testing in accordance with the Eskom review and acceptance test plans for all activities affecting quality in procurement, fabrication, construction, pre commissioning, commissioning and hand over operations.

Where the relevant ITP indicates attendance of an Eskom representative, at an intervention point, the contractor shall issue an I&TN to the Eskom Quality Hub via Email to [email protected] at least 7 days prior to the inspection for inspections in South Africa and 21 days for inspections elsewhere in the world.

Inspections carried out by Eskom or on behalf of Eskom shall not relieve the contractor of responsibility for defects or omissions found at a later stage.

Contractor will be responsible to ensure that subcontractor inspections/tests are done, and the resolution of any failures arising from these inspections/tests will be the responsibility of the contractor.

3.5.6 Verification of purchased product

Contractor shall perform quality control, inspections and testing in accordance with Eskom accepted DRC1 status inspection and test plans for all activities affecting quality in procurement, fabrication, construction, pre-commissioning, commissioning and handover for operations.

Contractor shall officially submit to Eskom individual inspection and test plans in compliance with “supplier mandatory quality requirements” (criticality level 1 and 2), [2]. Eskom DRC1 status must be achieved prior to start of the Work activity covered by any Plan for:

• Shop fabrication and manufacture

• Construction, installation, and hook-up subcontractors

• Commissioning and start-up Work





Contractor shall develop, document and implement processes and procedures for verification of compliance with specifications for all purchased products, inclusive of equipment, services, materials, systems, system components or other elements of Work scope procured. Processes and procedures shall, at minimum, address compliance with specification elements identified below:

• A Criticality rating based inspection program in compliance with Eskom “Criticality Assessment Program” [1] shall be developed for all equipment, services, materials, systems, system components or other elements of Work scope procured. Contractor criticality rating based inspection program shall be utilized to determine Contractor, third party, and Eskom inspection activities defined in terms of Witness, Interim Witness, Hold, and Document Review points.

• Contractor shall require Suppliers of package equipment to participate in Contractor Criticality Rating based inspection program to ascertain appropriate extent of Contractor and Supplier involvement in product verification of Supplier lower tier or sub-Suppliers.

• Contractor shall arrange Coordination meetings with Eskom prior to placement of orders for Criticality 1 or 2 items or equipment to ensure all technical and commercial requirements are clear and understood. Fourteen (14) days advance notice of meetings shall be given to Eskom

o Requirements for inspection checklists and inspection assignments with lists of items to be inspected.

o Inspection and testing report format, report content, schedule for report processing and distribution and report retention requirements.

o Inspection and test report results response tracking (log) and resolution of non-conformance in inspection and test processes, procedures or methods and non-conformance identified in inspection and test results.

• Contractor shall establish processes and procedures to ensure final pre-shipment verification of deliverable Quality for Supplier and subcontractor sourced Criticality Level 1 and 2 Work scope deliverables and, where requested by Contractor or Eskom, Criticality Level 3 Work scope deliverables. Verification reports shall obtain DRC 1 status prior to shipment.

• Contractor shall establish processes and procedures for formal assessment of Supplier and subcontractor inspection and testing programs. These shall include review of Supplier and subcontractor inspection reports and other Quality Control documentation. Additional formal assessment of manufacturing, fabrication and assembly facility operations shall be conducted by Contractor to ensure continuing suitability, adequacy and effectiveness of the Supplier and subcontractor inspection and testing programs. Assessment frequency shall be established in consideration of Supplier or subcontractor Work scope, Criticality of Work scope deliverables and performance information. Assessment scope and schedule shall be developed in consultation with Eskom.

Contractor processes and procedures for verification of Supplier and subcontractor purchased product compliance with specifications shall obtain DRC 1 status prior to implementation.

• The Contractor shall ensure that all work associated with product destined for Eskom has been fully inspected, tested in accordance with the specified technical requirements, and formally accepted on completion of manufacture, transportation, erection and commissioning as defined in the relevant quality plan(s). The Contractor shall compile, or acquire valid inspection records/test certificates, in respect of each batch of product to be consigned. The contractor shall implement a process where an unique identification stamping system is employed to show objective evidence of the verification of product quality and material integrity. These stamps shall be issued to individual authorised personnel who are responsible for verification. The applicable company's procedure shall be equivalent to or exceed Eskom QMS Procedure No.

QM-61: "Issue and Control of Certification Stamps". Hard “low stress” stamps shall be used for





identification of pressure retaining materials and witness verification of special tests, Rubber inked stamps shall be used for documentation review processes).

Control of Special Processes

Definition. A manufacturing process for which results cannot be checked afterwards by means of measurements or other objective inspections, but integrity is ensured solely through employing qualified personnel, qualified materials with qualified equipment and qualified process cycles in a qualified environment. (Examples: Heat Treatment, Surface Treatment, Shot Peening, Welding, NDT, Composites.)

• Contractors/Suppliers as well as their sub-contractors for criticality / class-1, 2 and 3 parts

shall maintain uninterrupted measurements over at least a 6-month period as proof that their Special Processes are under complete control.

• Eskom reserves the right to audit the control data and perform in-depth system audits on

any Special Processes that are involved in the product/service delivery to Eskom.

• Eskom reserves the right to require the application of quantitative quality measurement tools on any Special Process that are involved in the product/service delivery in order to establish an understanding of the quality of the product or service about to be delivered or delivered

Training and Competencies

• Personnel required to perform Special Processes shall be certified competent through a Certificate of Competency in accordance with the company's internal training management and competency control procedures, or an external certification body (e.g. NDT).

• All personnel who perform activities that affect quality shall have their training needs identified and documented. The required training shall be implemented in accordance with the company's training management and competency control procedures.

• The Contractor shall ensure that measuring and test equipment shall be calibrated, documented and traceable to agreed national standards and procedures. Calibration records will be maintained and included in the MRB for critical tests and control measurements.

• Supplier must communicate all inspection points agreed in the ITP. This should be done with minimum 14 days prior to the required date on the Notification of Readiness for Inspection (NORFI) form. This is required for both offshore and onshore manufactured products.

• It is the Contractor’s responsibility to ensure that the ITP’s have been marked up and approved prior to any commencement of manufacturing.

• Inspection resulting in NCR’s, the supplier will then bear all future inspections costs. These costs will be facilitated via the Eskom financial process and not directly with the inspection agency.

• All inspections cancelled/postponed within 48hrs of the agreed date stipulated on the NORFI will also be to the cost of the supplier/manufacturer.

• Manufacturers/Suppliers shall not package /transport any product from their manufacturing facility without an “Eskom Release Note” issued by an Eskom Quality inspector.

• The Contractor shall assess all inspection/tests results obtained to determine absolute compliance with all Eskom’s specified requirements.





• A certificate of conformance shall be completed and issued for every batch of product upon consignment.

• Eskom will have the right to request supplementary information and documentation related to results of inspections carried out by the Contractor on its own sub-Contractors or operations.

3.5.7 Third Party Inspection

Contractor shall document processes and procedures for engaging and supporting third party inspection of equipment and materials as required by government authority and/or industry standard. Readily demonstrable, documented compliance with government regulatory requirements is mandatory. Where government authority and industry standards conflict, the more stringent expectation shall apply.

Contractor shall submit to Eskom (PQM) any proposed third party inspectors’ resume for review and/or interview prior to their use. Submission shall be in compliance with “Project Quality Personnel Qualification Specification”.

Contractor shall give Eskom fourteen (14) days’ notice of all visits to the Work site(s) by third party inspectors, to facilitate planning for Eskom participation in such visits.

3.5.7.1 AIA

Eskom will appoint or approve an inspection agency and where statutory inspections are applicable, the appropriate AIA.

3.5.7.2 Eskom appointed AIA organization

The Eskom appointed AIA organization is responsible for:

• Advising on all aspects relating to statutory inspections and requirements

• Verifying statutory inspections, if applicable.

• Verifying the acceptability of the statutory aspects of the QCP/Works information, and to issue non-conformance reports to the Contractor and its subcontractors as applicable.

• Ensuring that specified requirements (e.g. designs, materials, etc.) relevant to any statutory items, test methods, acceptance criteria, assurance and documentation are in compliance with applicable statutory requirements.

• Performing statutory duties, including inspections on behalf of Eskom where employed to render such services

• The Eskom appointed inspection agency will be responsible to carry out all activities associated with product verification, including surveillances, to establish that work and products conform to Eskom’s specifications and requirements, and to certify products.

• The agency is authorised to issue non-conformance reports to the Contractor and its subcontractors.

The following documents shall be prepared and maintained for the duration of the contract, and shall be submitted to Eskom or its inspection agency when requested:

• QCP’s/ITP’s in accordance with Eskom’s specified requirements

• Contractors QC records

• Material certificates

• Eskom’s approved concessions





• Corrective actions taken as the result of non-conformances raised by Eskom or the supplier

• Contractors test certificates as per requirements of technical specification(s)

• Contractors certificate of conformance

• Typical test certificates

• Inspection & Test Reports

• NDE Operator Certification

• Eskom approved ITP

• Eskom approved drawings , connecting diagrams , bills of materials (latest Revisions of the applicable documents)

• Eskom approved procedures for complex tests and processes like Welding, NDT, High Pressure test, cryogenic test, Hydro tests etc.


• NCR and concessions register.

3.5.8 MATERIALS MANAGEMENT PROGRAM

3.5.8.1 General

• Contractor Materials Management Program shall be developed and implemented to effectively steward investments in materials, ensuring adherence to specifications and availability for use when needed.

• Contractor materials management goals and objectives shall be documented in and implemented through a single comprehensive Contractor Materials Management Plan.

• Contractor Materials Management Plan shall include and be based on a statement of materials management goals and strategies aligned with overall project and project Quality management goals.

• Contractor Materials Management Plan shall include project schedule-linked objectives for demonstration of compliance with Plan goals.

• Contractor Materials Management Plan shall document processes and procedures to be utilized in achieving Plan defined objectives.

• Contractor Equipment and Materials Management Program/Plan shall incorporate as a minimum provision for Material Traceability Material, PMI, and Preservation

• Contractor Materials Management Plan shall provide for comprehensive delineation of materials management oversight responsibility from development of initial materials management specifications through handover to facility operations of in-place and functional operating systems or structures. To ensure consistency in management, Materials Management Program level oversight responsibility shall be structured to transcend all project functional areas including but not limited to Quality, Engineering, Procurement, Logistics, Project Controls, Fabrication, Construction, Security, HES, and Information Management.

3.5.8.1.1 Traceability

Contractor shall develop and implement an effective and efficient program for identification, marking and traceability of all Contractor or Eskom sourced or supplied material, components, equipment,





subsystems, and systems in compliance with Eskom “Traceability and Marking Specification for Material and Equipment” and Eskom equipment list specifications.

Contractor traceability and marking program shall describe how material, components, equipment, subsystems, and systems are to be identified, marked and traced through Engineering, Procurement, Logistics, Fabrication and Construction Work.

3.5.8.1.2 Positive Material Identification

Contractor shall develop and implement an effective and efficient program for conducting Positive Material Identification (PMI) in compliance with Eskom PMI specifications.

Contractor PMI Program shall describe how equipment and material requiring PMI is to be identified, marked and shall include in detail, the disposition of PMI records.

Positive Material Identification capability shall be provided at locations where material, components, equipment, subsystems, and systems made of metallic alloys are received into Contractor or Eskom custody.

3.5.8.1.4 Quantitative quality measurement tools

For some products/services the Contractor/Supplier may be required to conduct for example, SPC per ISO 11462:2010: "Guidelines for Implementation of Statistical Process Control (SPC)"

• The key characteristics may be determined by Eskom. • In addition, the Contractor/Supplier shall review Eskom specifications and processes in

order to identify and determine key characteristics. The following requirements from Eskom shall be satisfied: • SPC monitoring should be done with IX-MR chart (i.e. individual and moving range) for

each key characteristic. • The Contractor/Supplier shall prepare and send SPC reports that include the charts and

pp/ppk (cp/cpk) reports for each applicable delivery to the Eskom Quality Performance Analysis, Planning Feedback coordinator.

• The required target for ppk (cpk) value shall always be ≥1.0, or as defined by Eskom. • Other measurement methods may be used subject to Eskom prior agreement

3.5.8.1.5 Preservation

Contractor shall develop and implement a comprehensive Preservation Program consisting of plans, processes, procedures and actions undertaken for the purpose of planning for and maintenance of material deliverables quality. Contractor Preservation Program scope includes but is not limited:

• Engagement of personnel suitably qualified for oversight of and as required direct implementation of Preservation Program requirements

• Development and implementation of Preservation Program training appropriate to Work need

• Eskom may make use of its appointed service provider tasked to provide a full suite of services encompassing on-line monitoring system and asset tracking during at least but not limited to the following stages: inspections, testing, shipping, transportation, storage and commissioning. The contractor to enable full access during all these stages in order to allow the installation of the devices on Eskom identified products and equipment, which include the supplier’s testing facilities, processing plant and any other processes deemed important towards effective and efficient quality control. Eskom seeks the co-operation between the contractor’s designers and those of Eskom’s service provider in ensuring seamless installation of the device and other





associated installations. Moreover there is also a need to integrate data flows and systems between Eskom and the contractor. Further details are included in the Eskom specifications and works information.

• Review and tracking of compliance with Eskom and Contractor Engineering specification of preservation requirements

• Review and tracking of compliance with Supplier provided preservation requirements and recommendations

• Evaluation of prospective temporary and longer-term material storage sites for consistency with Preservation Program expectations

• Preservation Work plan development and plan execution performance evaluation of all parties engaged for provision of material transportation, handing or storage services

• Oversight of material quality preservation plan preparation and plan execution performance at all Work locations

• Development of a Preservation Program records management process, in compliance with Eskom Information Management requirements, which comprehensively addresses generation, maintenance and ready access by Eskom to all Preservation Program records

• Contractor shall deploy a clearly defined documented program providing for identification of all physical asset pre-operation preservation of quality requirements. In this reference, the term physical assets should be understood to include bulk materials, including consumable items, equipment systems, system components, and any other procured or supplied materials or equipment transferred to project control but not yet deployed for operational purposes.

• Where project responsibility for equipment and materials management has been formally delegated, Contractor Preservation Program shall ensure clearly and unambiguous communication of pre-operation preservation of goods quality requirements to subcontractors and Suppliers.

• Contractor Preservation Program shall clearly and unambiguously document processes and procedures for efficient and effective monitoring of compliance with program requirements.

• Compliance monitoring shall commence with ensuring comprehensive consideration of preservation requirements in Engineering instruction and subsequent inclusion of said instruction in Procurement documentation and shall be applicable until such time as equipment or materials have been incorporated into an operating or operational system or structure.

• Compliance evaluation frequency shall anticipate transfer of tactical level responsibility for management of preservation responsibilities between project functional areas, e.g. Procurement to Logistics, Logistics to Fabrication, Fabrication to Logistics, Logistics to Construction, etc. and shall, in similar fashion, anticipate transfer of support for tactical level responsibility between various subcontracted service providers.

• Contractor Engineering shall ensure Preservation requirements for Work scope systems, system components, equipment, materials and other procured goods are clearly and unambiguously documented and that Preservation requirements are efficiently and effectively communicated to Project Procurement, Logistics, Construction Management, Quality, Security and other Project functional areas as required for efficient and effective implementation of Preservation requirements. This shall take the form of a Preservation Program applicable to all systems, system components, equipment, materials, customer supplied materials and other goods procured or managed under the Work scope.





• Contractor Preservation Management Program shall encompass identification, planning, acquisition of materials and services, and performance monitoring of all preservation management systems, processes, procedures, methods, work practices, etc.

Contractor Preservation Management Program shall clearly and unambiguously address temporary, long term and in-transit preservation requirements including but not limited to:

• Requirements for protection or insulation from atmospheric conditions, sunlight, temperature, soil, dust, humidity, salt spray, corrosive atmospheres or other physical environment conditions

• Detailed procedures for application, use, monitoring and maintenance of coatings, coverings, fasteners, lines and other components for internal and external weather proofing

• Requirements for electrical grounding or isolation

• Requirements for internal or external environment creation, e.g. inert gas charging, heating, cooling, etc. inclusive of gas storage, electric power supply, etc.

• Detailed procedures for initial set-up, charging, activation, and maintenance of internal atmosphere generation, regeneration, monitoring and relieving systems, e.g. inert gas management systems

• Requirements for protection or insulation from vibration or long period cyclical motion in transit, e.g. wave generated movement during sea transport

• Internal and external structural integrity protection, e.g. internal and external bracing, padding, framing, chocking, etc.

• Support structure requirements, e.g. stools, pads, or other device, substrate or support required to ensure in-storage and in-transit stability of systems, system components, equipment, and material or other discrete unit or item

• Provision for physical separation and or barriers to prevent airborne or direct transmittal of contaminants between work areas or between work areas and storage areas, e.g. prevention of carbon steel grinding or cutting debris impact on stainless steel elements, airborne drift of blast aggregate into vessels or machinery, etc.

• Provision for and final disposition of temporary and longer term storage or transit required supports and related binding devices, e.g. stools, stands, sea fasteners, platforms, chocks, spacers, cabling, etc.

• Provision of requirements for temporary work platform or other support structures required to ensure provision of Preservation services, e.g. provision of self-elevating work platform for periodic access to elevated fittings, gauges, man ways, etc.

• Requirements for protection or insulation from contact with other objects, e.g. padding or other protection for external tubing, fittings or other impact sensitive structures or components

• Clear physical delineation of temporary and longer term storage areas supplemented by hard and soft barriers as required to maintain a protective perimeter.

• Documented agreements with storage facility and transportation provider management regarding security management including but not limited to facility access and egress control and control of access to Project goods and materials within facility boundaries or aboard vehicles or vessels

• Detailed procedures for inspection and testing to verify performance of preservation procedures and to provide for timely notice and corrective action to maintain preservation status

• Contractor Preservation Management Program scope shall encompass management of preservation requirements from initial transfer of ownership or management responsibility to





Project scope of responsibility through any period of temporary or longer term storage, through any period of transit including transit for final delivery at point of active use or installation.

• Contractor Preservation Management Program shall clearly and unambiguously address processes and procedures to ensure storage and control of materials is accomplished in accordance with manufacturer recommendations, specifications and project specific requirements.

• Contractor Preservation Management Program shall incorporate special precautions to address preservation and control of valves, electrical motors and components, mechanical and rotating equipment, piping and fittings, instrumentation, flange faces, gaskets, coatings, insulation, and other materials. Special precautions include but are not limited to Supplier specified maintenance procedures related to engines, electric motors, pumps, compressors, etc. such as periodic shaft rotation, engine turnover, lubrication, etc.

• Contractor shall ensure that clear and unambiguous requirements for Preservation of system, system components, equipment, materials and other procured goods are clearly and unambiguously documented in purchase orders, work authorizations and other communications between Contractor, Suppliers and subcontractors.

• Where Supplier or subcontractor expertise is utilized in determination of Preservation protocol, Contractor Procurement processes shall ensure clear and unambiguous documentation of Supplier and subcontractor input to Preservation Management Program requirements.

• Contractor Procurement shall ensure Preservation requirements for Work scope systems, system components, equipment, materials and other procured goods are clearly and unambiguously documented and that Preservation requirements are efficiently and effectively communicated to Project Logistics, Construction Management, Quality, Security and other Project functional areas as required for efficient and effective implementation of Preservation requirements.

• Contractor shall ensure comprehensive, clear and unambiguous designation of Supplier and subcontractor responsibility for execution of all Preservation Management Program elements including but not limited to all systems, processes, procedures, methods, ready access to records, provision of equipment, tools or services essential to efficient and effective execution of the Preservation Management Program.

• Contractor shall ensure that Preservation Management Program responsibilities are clearly and unambiguously defined within the project team and efficiently and effectively implemented in all project Work scope locations. Inclusion of Supplier and subcontractor Work scope in development and implementation of Preservation Management Program shall be considered essential to efficient and effective Preservation Management Program execution.

• Contractor shall ensure clear and unambiguous designation of project team responsibility for oversight and management of Preservation Management Program elements during every stage of project development.

• Contractor Preservation Management Program shall obtain DRC 1 status prior to placing the first PO.

• Contractor shall ensure Eskom has free and unrestricted access to all preservation records for inspection and audit.

3.5.9 Expediting during contract execution

The Contractor will ensure reasonable access to his suppliers and sub suppliers for the purpose of monitoring manufacturing activities. The Contractor will also provide during contract execution the following supplier and sub-supplier documents and information:

• Drawing/document schedules detailing submission dates





• Detailed manufacturing programme

• Details of long lead items

• Raw material status report

• Unpriced sub-orders

• Monthly progress reports

• Non-conformance reports

• COC’s upon delivery

• Release reports

3.5.10 Quality Control on Completion of the Contract

3.5.10.1 Manufacturing Record Books.

Contractor shall provide Supplier with MRB requirements based in Vital Documentation and Data Deliverables Specification and this document. Any matter of perceived conflict between Vital Documentation and Data Deliverables Specification and this specification must be resolved prior to start of work. These requirements shall form part of all RFQ’s and PO’s and shall be communicated to all Contractor Quality Representatives. Contractor shall document process for review of Supplier proposals for MRB content and compilation, Contractor mechanism for communication of MRB requirements to Suppliers and Contractor Quality Representatives, Contractor proposals for monitoring the effective and timely compilation of the MRB and Contractor controls for ensuring completeness of the MRB prior to shipping the equipment.

Contractor Quality Representative shall periodically check the on-going compilation of the MRB. During each visit, Contractor’s Quality Representative shall ensure that the Supplier is inserting records on completion of each event to ensure currency of the MRB at all times. Contractor Quality Representative shall sign, date and stamp each record that is found acceptable. Contractor Quality Representative shall review the MRB file for compliance with requirements prior to authorization for final release. Progressive review at specified % of completion to be built into ITP/QCP.

Contractor MRB reviews for bulk materials can be done on a shipment-by-shipment basis, prior to materials release. Supplier shall insert a copy of the applicable shipment Release Note into the MRB to complete MRB compilation.

Contractor procedural direction to Supplier shall clearly and unequivocally state that shipment is not authorized without an applicable Release Note.

Contractor procedural direction to Supplier shall clearly and unequivocally state that shipment is not authorized without an official notification of shipping instruction from Contractor.

The Contractor shall provide the following Quality records on completion of the contract for addition to the Data Book. The data book shall contain as a minimum the following quality records after completion of the contract:

• Table of contents

• Summery list of the equipment and materials supplied in the contract

• Completed original QCP / ITP’s for all processes and products

• All Eskom approved drawings and procedures used during the execution of the contract.

• Material certificates as per technical requirements





• Type test certificates and statutory/legal certificates (as applicable for a particular equipment like boilers)

• All the inspection reports/witness reports/minutes of inspection as issued by the Eskom’s inspector/Contractor’s QC

• All Eskom approved concession permits

• All the Non-Conformance reports raised by Eskom or Contractor during the contract along with the corrective action taken reports and the subsequent closure of the said Non-conformance.

• Corrective actions taken as the result of non-conformances raised by Eskom or Contractor

• Contractors certificate of conformance register

• A copy of Eskom’s inspection release form

• Data Book signoff and acceptance sheet

• Copy of calibration records associated with tests and inspections


3.6 SUPPLIER QUALITY PERFORMANCE MONITORING PHASE

During the contract execution phase, Contractors will be monitored by Eskom for performance on quality related aspects.

The outcomes of such monitoring will enable Eskom to take any appropriate actions pertaining to the supplier (e.g. curtail orders, reduce scope, suspend usage of a supplier, etc.).

Monitoring shall be carried out periodically by Eskom or through pre-determined intervals during the execution of a contract.

Monitored Key Performance Areas include:

• Quality

• Delivery

• Design

• Cost

• Management System

Subsequent Key Performance Indicators associated with these areas will include:

• Non Conformance Monitoring

• Eskom Audit and Assessment Evaluation scoring

• Management System compliance and accreditation

• Achievement of delivery targets as per contractual agreements

• Purchase Price Variance

• Process improvements

• Corrective and Preventive Action response and closure.





3.7 E-QUALITY TOOL (ACHIEVER PLUS)

Eskom has implemented an electronic system for the automation and management of quality and other relevant aspects of the project. The system will enable collaboration within Eskom and between Eskom and its Contractors, through workflow, on matters applicable to the quality system of the project.

Contractors are therefore obliged to have access to and to use this system.

Therefore:

• The Contractor will use Eskom’s quality management software system Achiever Plus.NET during contract execution. It is the responsibility of the Contractor to acquire access to the system from Eskom within 30 days after contract award.

• Eskom will arrange for access and training of relevant personnel to the Achiever Plus System.

• Relevant system functionalities to be used, information to be captured and outputs to be produced via the system will be communicated to the Contractor.

• The Contractor is at liberty to extend this requirement to its Subcontractors, in which case Eskom needs to be notified.

• Details such as names, Qualifications, accreditations, of all Contractor and Subcontractor staff performing Quality functions (inspections, NDT, Audits, QA, document and Record Management), specialised processed such as Welding, Engineering, Project Management and their teams, shall be captured in the Eskom e-System (Achiever Plus) module , and maintained by the Contractor.

• The Contractor will also use this system to schedule and track attendance of certain mandatory courses/awareness/induction programmes run by Eskom for the benefit of the Contractor

• The Contractor will be responsible to ensure that all records – as per agreement – are captured (this will include subcontractor records)

3.8 PAYMENT AND DELIVERY

Eskom’s appointed/authorized quality representative will support approval of all invoice(s) for payment before any such payment will be made to the Contractor.

Delivery:

• Eskom accepts or rejects items only after the inspection and review of the Quality Data Package and the verification of conformance with the contract requirements.

• Eskom does not accept items by confirmation of delivery.

• Eskom reserves the right to suspend any pending deliveries, by the issuing of a cease delivery order at any time and for any portion of the work that is not being performed in accordance with the specified/agreed requirements. When such an order is issued by Eskom, the Contractor shall immediately stop deliveries of defined product to all destinations, and shall not resume until written authorization is again given by Eskom.

• Eskom reserves the right to withhold payment for products/work due to outstanding non-conformances, irrespective of the agreed payment schedule and in accordance with the conditions of contract.

• All Replacement, Repair and Rework activities shall be undertaken by the Contractor at its own cost and expense.

• Eskom may, by written notice to the Contractor, reject any Deliverables which are incorrectly supplied or found to contain a Defect when inspected, tested or delivered. The notice shall





specify the reasons for rejection. Rejected Deliverables shall either be returned to the Contractor for corrective action or corrected on Site in accordance with the provisions of this clause. Unless otherwise instructed by Eskom the Contractor shall promptly Replace, Repair or Rework any deliverables which need to be re-supplied. In either case, all expenses incurred by Eskom shall be for the Contractor's account, set-off against any payments due by Eskom to the Contractor.

• Deliverables rejected after Delivery will be held and returned at the risk and expense of the Contractor. Written notice of rejection by Eskom will specify whether the Deliverables shall be re-supplied or whether the contract in respect of the rejected Deliverables shall be terminated without liability to Eskom. If Eskom has paid any part of the Price of rejected Deliverables, the Contractor shall refund such payment, interest thereon and any other expenses incurred by Eskom in respect of such rejection, on demand.

4. AUTHORIZATION

This document has been seen and accepted by:

Name Designation

Sipho Tjabadi General Manager GC Quality Management

Naresh Singh General Manager Eskom UK Office

Roy Nolan Manager QC Local

Emmanuel Matlala Manager QC Transmission Projects

Pat Mnguni Manager System Assurance and Audits

Antonette Hunter Manager Procurement Quality Assurance

Mike Bottom Manager Quality Engineering

Pamela Dondashe Manager Quality Assurance

5. REVISIONS

Date Rev. Compiler Remarks

December 2011 0 A Hunter New Document

6. DEVELOPMENT TEAM

The following people were involved in the development of this document:

• Doug Hardie

• Pamela Dondashe

• Antonett Hunter

• Julie Kabasele-Nkombua

• Tabu Mocke

• Danie du Plessis

• WaWa Xaluva

• Serge Mufengi





• Thabita Joubert





APPENDIX A: TENDER & CONTRACT QUALITY REQUIREMENTS

Enquiry/contract no: Equipment/service Indicate with an X as applicable in box below or N/A

Section A: General Requirements X

Section B: Tender Submission Phase X

Section C: Tender evaluation, adjudication and negotiation phase X

Section D: Contract Award Phase X

Section E: Contract Execution and Quality Control Phase X

Section F: Supplier Quality Performance Monitoring X

Section G: e-Quality Tool X

Section H: Payment and Delivery X ADDITIONAL/ALTERNATIVE QUALITY INFORMATION SUBMITTE D BY CONTRACTOR

REFERENCE NUMBER TITLE OF STANDARD/SPECIFICATION/GUIDELINE

Employer Name: Signature: Date:

Contractor

Employer’s quality representative

TENDER/CONTRACT QUALITY REQUIREMENTS

Doc. no.

Ref. no. Rev. 0.0

Doc. type: FORM Page 1 of 1





APPENDIX B: QUALITY REQUIREMENTS FOR ISO 9001 SERIE S

QUALITY REQUIREMENTS FOR QUALITY MANAGEMENT ISO 9001

SERIES

Doc. no.:

Ref. no.: Rev. 0


Enquiry/contract/order no.: ……………..………………………Plant: ………………………………………. Equipment/service: …………………………………………………………………………………………… The following areas of ISO 9001 quality management systems will be mandatory as indicated: (Yes or No) Quality management system:

General requirements Yes Document requirements Yes

Management responsibility: Management commitment Yes Customer focus Yes Quality policy Yes Planning Yes Responsibility, authority, and communication Yes Management review Yes

Resource management: Provision of resources Yes Human resources Yes Infrastructure Yes Work environment Yes

Product realisation:

Planning of product realisation Yes Customer-related processes Yes Design and development Yes Purchasing Yes Product and service provision Yes Control of monitoring and measuring devices Yes

Measurement analysis and improvement: General planning Yes Monitoring and measurement Yes Control of non-conforming product Yes Analysis of data improvement Yes

Requirements accepted by: Name: Signature: Date:

Employer

Contractor Employer’s quality representative





APPENDIX C: TEMPLATE FOR A TYPICAL CONTRACT QUALITY PLAN

CONTRACT TITLE:

CONTRACTOR:

ESKOM ENQUIRY/CONTRACT NUMBER:

COMMENCEMENT DATE:

COMPLETION DATE:

CONTRACTOR Name Designation Signature Revision

Compiled by:

Approved by:

ESKOM APPROVAL Name Designation Signature Revision

Reviewed by:

Approved by:





CONTRACT QUALITY PLAN SAMPLE INDEX

SCOPE OF WORK

COMMUNICATION CHANNELS BETWEEN CONTRACTOR & ESKOM

ORGANOGRAM

INDEX OF INTERFACING DOCUMENTS

INDEX OF DOCUMENTS / RECORDS THAT ARE SUBMITTED TO ESKOM DURING PROJECT

A LIST OF SUPPLIERS & SUB-CONTRACTORS

MONITORING OF SUB-CONTRACTORS

PROOF THAT SUPPLIERS SUB-CONTRACTORS WORK TO SPECIFIED QUALITY STANDARDS

INDEX OF ITEMS TO BE MANUFACTURED, REFURBISHED AND NEWLY PURCHASED

ITEMS THAT NEED QCP OR NOT

AREAS AND PROCESSES REQUIRING SPECIAL CONTROLS

INTERFACE OF SUB-CONTRACTORS WITH THE QMS OF CONTRACTOR

INDEX OF ALL STANDARDS & SPECIFICATIONS

HOW QUALITY RECORDS WILL BE CONTROLLED AND RETAINED

LIST OF PURCHASE ORDERS FOR QUALITY CRITICAL ITEMS

CONCESSION REGISTER UPDATED

DATABOOK INDEX AND O & M MANUAL

SPARE PARTS INTER-CHANGEABILITY RECORDS

1. SCOPE OF WORK (Full description of the Works Information)

2. COMMUNICATION CHANNELS BETWEEN CONTRACTOR & ESKO M

(Communication regarding all quality related issues i.e. Documentation/ E-mails/Minutes of Meetings/Fixed Contract Meetings/Weekly Progress Meetings All documentation will be submitted per transmittal).

3. ORGANOGRAM

(Include organogram showing structure of Contractor, which shall show the Quality Management representative and all other personnel responsible for control of Quality activities/processes)

4. INDEX OF INTERFACING DOCUMENTS 5. INDEX OF DOCUMENTS /RECORDS THAT SHALL BE SUBMITTED TO ESKOM DURING

PROJECT (Example):





o TITLE o NUMBER

Submitted to Eskom during the contract Method statements QCP / ITP

Captured in the QMS of the Contractor / supplier Quality Manual Quality Policy QCP / ITP

Submitted prior to completion of the works Method statements / procedures QCP / ITP from suppliers Certificates of compliance

6. A LIST OF SUPPLIERS & SUB-CONTRACTORS (Example): Suppliers

Eskom Product/Service A

B

C

D Scope of Work Sub-Contractors

Eskom Scope of Work A

B

C

D (PS: Include method of acceptance of sub-Contractors by Eskom)

7. MONITORING OF SUB-CONTRACTORS (Description of how sub-Contractors will be monitored, i.e. procedure)

8. PROOF THAT SUPPLIERS SUB-CONTRACTORS WORK TO SPE CIFIED QUALITY STANDARDS (e.g. Description of Sub-Contractor Surveillance method/procedure)





9. INDEX OF ITEMS TO BE MANUFACTURED, REFURBISHED A ND NEWLY PURCHASED ITEM DESCRIPTION MANUFACTURED REFURBISHED PURCHASED

10. ITEMS THAT NEED QCP OR NOT

(Description of all products/processes which will be monitored by an approved QCP)

11. AREAS AND PROCESSES REQUIRING SPECIAL CONTROLS (Description of all products/processes/services which will require special controls, i.e. welding, NDT/NDE)

12. INTERFACE OF SUB-CONTRACTORS WITH THE QMS OF CO NTRACTOR (Description of the interface of the sub-Contractors and Contractors/suppliers QMS and applicable documents, procedures and work instructions)

13. INDEX OF ALL STANDARDS & SPECIFICATIONS (For all processes, products, materials and plant applicable to the works/contract)

14. HOW QUALITY RECORDS WILL BE CONTROLLED AND RETA INED

(Description of how all quality records shall be controlled (e.g. identified, completed, retained and disposition)

15. LIST OF PURCHASE ORDERS FOR QUALITY CRITICAL IT EMS (Indicate purchase order number and scope of supply)

16. CONCESSION REGISTER UPDATED (Include typical copy of the suppliers/Contractors concession request register which shall be updated during the project/contract)

17. DATABOOK INDEX AND O&M MANUAL 18. SPARE PARTS INTER-CHANGEABILITY RECORDS





APPENDIX D: DEFECT NOTIFICATION

DEFECT NOTIFICATION

Doc. no.:

Ref. no.: Rev. 0


2. CONTRACTOR:

EM

PL

OY

ER

3. CONTRACT/ORDER NO. 4. AUDIT/SURVEIL./INSPECT. NO.

5. DESCRIPTION OF THE WORKS 6. QUALITY REQUIREMENT

7. DESCRIPTION OF DEFECT

8. NOTIFIED BY:

ORIGINATOR NAME: SIGNATURE: DATE:

9. FOR DEFECT NOTIFIED BEFORE * COMPLETION 10. REPLY DATE:

FOR DEFECT NOTIFIED AFTER * COMPLETION

11. DEFECT CORRECTION PERIOD IS: 12.DEFECT CORRECTION PERIOD ENDS ON:

EM

PLO

YE

R

CO

NT

RA

CT

OR

13. RESPONSE REQUIRED FOR: (A) CAUSE, (B) CORRECTIVE ACTION, (C) PREVENTING RECURRENCE, (D) IMPLEMENTATAION DATE

14. ORIGINATOR NAME: SIGNATURE: DATE:

15. EVALUATION OF PROPOSED RESPONSE 18. COMMENTS

*ACCEPTED *REJECTED

14. ORIGINATOR NAME: SIGNATURE: DATE:

EM

PLO

YE

R C

ON

TR

AC

TO

R

16. RESPONSE VERIFIED AS IMPLEMENTED

NAME: SIGNATURE:

18. COMMENTS


17. DEFECT NOTIFICATION CLOSE-OUT 18. COMMENTS

*ACCEPTED *REJECTED






APPENDIX E: CAR

CORRECTIVE ACTION REQUEST (CAR)

Doc. no. :

Ref. no.: Rev. 0

Doc. type: FORM Page 1of 1

Recipient

Name of Supplier / Business Unit/Department Address Project name Order number Location Line reference Site National contract number

Description of product or service Reference documentation Drawing / Item number Description:

Originator's name Signature Date Response date

E-mail address Telephone Cell Facsimile

Recipient's representative: acknowledgement of understanding of above non-conformance

Recipient's name Signature Title Date

E-mail address Telephone Cell Facsimile

Internal use only: Management Representative

INTERNAL SUPPLIER

Safety Environmental Technical Commercial Business Unit Quality

Management Representative Signature Date Contact Number

Functional Department:

(A) Root cause / Risk impact

� Man � Machine � Material � Management � Method � Money

(B) Immediate correction / Risk measures

(C) Action to prevent recurrence / occurrence

(D) Implementation date of (B): (E) Implementation Date of (C):

Recipient's name Signature Title Date

Originator: evaluation of (B) Accepted Rejected

Comments

Name Signature Title Date

Management Representative: Follow-up and close-out of (B) Accepted Rejected

Comments

Name Signature Title Date

Confirmation: Functional Responsible Manager:

Recipient's name Signature Title Date implemented





APPENDIX F: CONCESSION

APPLICATION FOR DEFECT (CONCESSION) ACCEPTANCE

Doc. no. :

Ref. no.: Rev. 0.0


CO

NT

RA

CT

OR

PROJECT/STATION/SITE REGISTER NO.: ORGANISATION:

ESKOM:

DATE:

DATE:

CONTRACTOR/SUPPLIER:

SUBCONTRACTOR IF APPLICABLE:

CONTRACT/ORDER NO.: SPEC. NO. AND REV.: KKS NO.:

PLANT/MATERIAL/SERVICE DESCRIPTION:

REASON FOR APPLICATION: NCR REF. NO.:

CAR REF. NO.:

PROPOSED SOLUTION/REPAIR:

SUPPORTING DOCUMENTS:

REQUESTED BY:

PRINT NAME

SIGNATURE POSITION DATE

EM

PLO

YE

R

EFFECT ON: Y N Y N Y N

SAFETY LIFE* DOCUMENTATION*

SAFETY (NUCLEAR)

INTERCHANGEABILITY* COMMERCIAL

STRENGTH* FUNCTION* WARRANTY*

MAINTENANCE*

MATERIAL* COST*

CONTRACTOR/SUPPLIER*:

PRINT NAME SIGNATURE POSITION DATE

FOR ESKOM:

PRINT NAME SIGNATURE POSITION DATE

EM

PLO

YE

R

REVIEW: PROJECT MANAGER QUALITY MANAGER ENGINEERING MANAGER

ACCEPT/REJECT REVIEW REGISTER ACCEPT/REJECT

PRINT

SIGN

POSITION

DATE





APPENDIX G: CONCESSION

Enterprises

CONTRACTOR'S APPLICATION FOR ESKOM INSPECTION OF THE WORKS/PART OF THE WORKS

Doc. no.:

Ref. no.: Rev. 0.0


ORIGINAL TO: Contractor CONTRACTOR REF. NO.:

COPIES TO: Employer Documentation Centre/contract file

CO

NT

RA

CT

OR

PROJECT: CONTRACTOR:

ENQUIRIES: PHONE NO.:

CONTRACT/ORDER NO.: CONTRACT ITEM NO.:

APPLICABLE MODIFICATION NO.(S):

UNIT NO.: KKS CODE/PLANT NO.:

PLANT/ITEM:

SECTIONAL/WHOLE OF WORKS COMPLETION DATE:

QA REVIEW: HAVE ALL APPLICABLE NCRS, DCRS, AND CONCESSIONS BEEN CLOSED OUT?

* YES * NO

IF “NO”, INDICATE APPROPRIATE NUMBERS, AND ATTACH COPIES:

QA REPRESENTATIVE:

PRINT NAME SIGNATURE DATE

ARE THERE ANY CONTRACTUAL SPARES, MANUALS, AND/OR TOOLS INVOLVED?

* YES * NO * NOT APPLICABLE

THE CONTRACT WORKS HAVE BEEN INSPECTED AND FOUND ACCEPTABLE:

SUPERVISOR


QA REPRESENTATIVE’S VERIFICATION OF CONTRACTOR’S QA REVIEW:

* ACCEPTANCE * REJECTION

IF REJECTED, STATE REASONS:

QA REPRESENTATIVE:


EM

PL

OY

ER

DECISION TAKEN BY ESKOM

ARE CONTRACT WORKS ACCEPTABLE TO ENABLE

COMPLETION INSPECTION TO BE PLANNED? * YES * NO

IF “NO”, STATE REASONS:

PRINT NAME SIGNATURE DESIGNATION DATE





APPENDIX H: REQUIREMENTS FOR A PRODUCT VERIFICATION PLAN

Purpose o To define precisely the extent and type of inspection and testing during manufacture and

erection of statuary operating plant equipment and components. Scope

o All pressure parts, welds in pressure parts and welds of non-pressure parts, to pressure parts of the entire plant.

Responsibilities

o It is the responsibility of the assigned Inspection Authority, to establish the Product Verification Plan and submit it to Eskom for approval. Eskom shall verify and introduce his own interventions. It is the Contractor’s responsibility, to provide proof of compliance with the Product Verification Plan, e.g. through records, Quality control plans, NDE reports and Third Party inspections.

References

o In addition to the specifications referenced in the Specification the type and extent of inspections and testing per PVP should be based on an internationally recognized manufacturing specification, e.g. VGB-Guidelines (typically R 501 H for Boilers etc) or equivalent. The Product Verification Plan shall reference the relevant international, national and Eskom Specifications ruling the applicable method of tests and the approval criteria.

Product Verification Plan Structure o As a general guidance the Product Verification Plan shall be structured similar to the

proven system used for the previous Eskom Power Stations, but adjusted to present regulations and material, welding and testing specifications.

The following essential aspects should be covered in the Product Verification Plan, but are not limited to:

� personnel qualifications � welding qualifications and verified manufacturing capabilities � stamp transfer agreements � component quality control plans � type and extent of inspections � type and extend of NDE/DE � approval criteria � all Third Party interventions and certification requirements � documentation and records

Supplier C

ontract Quality R

equirements S

pecification

CO

NT

RO

LLED

DIS

CLO

SU

RE

W

hen downloaded from

the ED

S database, this docum

ent is uncontrolled and the responsibility rests with the user to ensure it


Unique Identifier:

QM

-58 R

evision: 0

Page:

58 of 58 APPENDIX I: QUALITY CONTROL PLAN/INSPECTION & TEST PLAN

Subcontractor Order Number - QCP Number -

Rev Number - Date -

No. AIA/NOBO Internal/TPI AIA/NOBO Internal/TPI

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Contact Details :-

Intervention Points

Supplier EskomRecords

Controlling Documents Acceptance Criteria

Supplier Inspection Eskom InspectionInspection and Test Methods

Prepared By :-

Designation :-

Date :-

Method

ActivityRequirements

Category (S=Statutory /

N=None Statutory)

Contract/Order Number -

Item/Plant/Material Description -

Approved Inspection Authority (AIA) -

Quality Control Plan Template

Signature

Section -

Name

Page 1 of

Activity Date

Client -

Quality Control Plan Approvals

Contractor -

Subcontractor -