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ENGINEERING

CO-ORDINATION PROCEDURE
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TABLE OF CONTENTS

Page

1. ADMINISTRATION 3
1.1 INTRODUCTION 3
1.2 PROJECT REFERENCES 3
1.3 ORGANIZATION OF PARTIES 3
1.4 COMMUNICATIONS 4
1.5 MEETINGS 5
1.6 REPORTING 7
1.7 DISPATCHING OF PROJECT MANAGEMENT DOCUMENTS 8

2. DOCUMENTATION CONTROL 9
2.1 INTRODUCTION 9
2.2 ENGINEERING DOCUMENTATION 9
2.3 DOCUMENT NUMBERING SYSTEM 13
2.4 EQUIPMENT NUMBERING SYSTEM 13

3. SCHEDULING AND PROGRESS REPORTING PROCEDURES 14

3.1 INTRODUCTION 14
3.2 CONTRACT SCHEDULING 14
3.3 PROGRESS CONTROL 17
3.4 COST CONTROL 18
3.5 INVOICING 19

4. VARIATION ORDERS 20
4.1 GENERAL 20
4.2 VOR AND VOI REGISTERS 21
4.3 VARIATION ORDER MEETINGS 22
4.4 INVOICING AND PAYMENT OF VARIATION ORDERS 22

5. CONTRACT CLOSE OUT 23

5.1 PROVISIONAL ACCEPTANCE CERIFICATE 23
5.2 FINAL ACCOUNT AND RELEASE CERTIFICATE 23
5.3 FINAL ACCEPTANCE CERTIFICATE 23

LIST OF ANNEXES

Annex 1 - COMPANY Organisation Chart 24

Annex 2 - ENGINEER Organisation Chart 25
Annex 3 - Correspondence Codification and Numbering 26
Annex 4 - Format of Weekly Report 27
Annex 5 - Format of Monthly Report 31
Annex 6 - Document types and area codes 33
Annex 7 - Minimum ENGINEER'S Documents Requirement Schedule 37
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1 . ADMINISTRATION

1.1 INTRODUCTION

This document outlines the co-ordination procedures to be followed throughout the Project between
COMPANY and ENGINEER.
It is based upon the terms of the CONTRACT and does not alter the CONTRACT in any respect.

1.2 PROJECT REFERENCES

1.2.1 Project Title

Company name : LG/OIEC CONSORTIUM

Project name : SOUTH PARS FIELD DEVELOPMENT (PHASES 9 & 10)

1.2.2 CONTRACT References

Contract title :
Contract ref. :
ENGINEER name :

1.3 ORGANIZATION OF PARTIES

1.3.1 COMPANY's ORGANISATION

1.3.1.a COMPANY REPRESENTATIVE

The COMPANY REPRESENTATIVE is:

1.3.1.b COMPANY Project Organisation chart:

COMPANY's Organisation Chart is attached hereto as ANNEX N°1.

1.3.2 ENGINEER's ORGANISATION

1.3.2.a ENGINEER REPRESENTATIVE

The ENGINEER REPRESENTATIVE is:

The Deputy ENGINEER REPRESENTATIVE is:

1.3.2.b ENGINEER Project Organisation Chart

ENGINEER’s Organisation Chart is attached hereto as ANNEX N°2.

ENGINEER's Organisation Chart shall be updated as and when there are changes in ENGINEER's
Key Personnel or organisation. Any changes in such Key Personnel shall be notified in writing to
COMPANY REPRESENTATIVE for APPROVAL prior to the change.
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1.4 COMMUNICATIONS

1.4.1 General

All communications from ENGINEER shall be directed to COMPANY REPRESENTATIVE, and all
communications from COMPANY shall be directed to ENGINEER REPRESENTATIVE, unless a
delegation is implemented by or accepted by COMPANY.

1.4.2 Correspondence

Correspondence from COMPANY to ENGINEER and from ENGINEER to COMPANY shall observe
the following rules:
a) All correspondence shall be by letter or fax written in the English language.
b) All correspondence shall be issued under a specific subject heading which shall also
incorporate the CONTRACT number and title as follows:

SOUTH PARS FIELD DEVELOPMENT PHASES 9 & 10

CONTRACT:

SUBJECT: ............................

WORK PACKAGE (as applicable)

c) All correspondence shall bear a unique identifying reference number, as described in
ANNEX N°3.
d) All correspondence shall be limited to one subject only.
e) Only authorised persons shall sign letters, telexes and faxes .

- For COMPANY : COMPANY REPRESENTATIVE or notified Delegate.

- For ENGINEER : ENGINEER REPRESENTATIVE or Deputy ENGINEER

REPRESENTATIVE.
f) All correspondence including faxes from ENGINEER to COMPANY shall be addressed to
COMPANY REPRESENTATIVE and vice versa for COMPANY to ENGINEER.

1.4.3 Transmittals

All drawings, reports, data and other documentation shall be forwarded to COMPANY
REPRESENTATIVE and ENGINEER REPRESENTATIVE, as the case may be, and shall at all times
be accompanied by a transmittal form addressed with the Standard Project Title Block.
Covering letters to such transmittals are not required. COMPANY and ENGINEER shall acknowledge
receipt of transmittals by returning one signed copy of the transmittal.

1.4.4 Telephone Calls

All telephone calls that could be a matter of record shall be confirmed in writing by the originator of
the call under cover of the COMPANY REPRESENTATIVE and / or the ENGINEER
REPRESENTATIVE.

1.4.5 Engineering Query Procedure

ENGINEER shall not deviate from the requirements of the CONTRACT DOCUMENTS unless
authorised to do so in writing by COMPANY.
Any clarification of the CONTRACT DOCUMENTS or deviations from the requirements of the
CONTRACT DOCUMENTS requested by ENGINEER shall be made to COMPANY utilizing an
Engineering Query Procedure which shall be prepared by ENGINEER and submitted for APPROVAL.
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Similarly, deviation from the APPROVED Drawings and Specifications shall also be processed using
the Engineering Query Procedure.

1.4.6 Addresses, Telephone, Fax numbers

a) Correspondence to COMPANY REPRESENTATIVE shall be addressed to:

COMPANY REPRESENTATIVE:
Postal address:

Telephone:
Telefax:
b) Correspondence to ENGINEER REPRESENTATIVE shall be addressed to:

ENGINEER REPRESENTATIVE:
Postal address:

Telephone:
Telefax:

1.5 MEETINGS

1.5.1 General

COMPANY shall hold regular meetings with ENGINEER to review the performance of the WORK, its
progress and to identify and discuss any related problems.
All meetings shall be held at the time and location determined by COMPANY and shall be chaired by
COMPANY REPRESENTATIVE or his nominated Delegate.

1.5.1.a Minutes of Meeting

ENGINEER shall prepare the minutes of all meetings, unless otherwise requested by COMPANY.
Minutes of all meetings shall be issued within three (3) working days after the relevant meeting.
The minutes shall include:
Ÿ Date and venue of meeting,
Ÿ Date of issuance,
Ÿ List of persons present, indicating companies represented,
Ÿ Object of the meeting,
Ÿ Record of position of each PARTY,
Ÿ Record of actions agreed, with responsibility and date for execution of each action indicated
in a separate action column,
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Ÿ Section for the signature by the COMPANY REPRESENTATIVE and / or the ENGINEER
REPRESENTATIVE to the agreement with the contents of the minutes .
For ease of reference, minutes shall be divided into paragraphs with sub-headings indicating the
various topics discussed.

1.5.1.b Acceptance of Minutes

Unless notice of amendment is received within three (3) working days after the date of issuance, the
minutes shall be deemed to be accepted as a true record of the meeting.

1.5.1.c Numbering of Minutes

Minutes of meetings between the PARTIES shall be numbered consecutively for each WORK
LOCATION and issued under the cover of a letter.

1.5.2 Weekly Meetings

Location:
Weekly meetings shall be held at the HOME OFFICE, except as otherwise requested by COMPANY.
Day:
Agenda:
1) Management.
Ÿ Review of schedules and progress per WORK PACKAGES
Ÿ Review of resources.
Ÿ Highlight problem areas and resolutions.
Ÿ Engineering Queries.
Ÿ Areas of Concern.
Ÿ Major activities for the next week.
Ÿ Any other business.
2) Engineering.
Ÿ Major activities per discipline.
Ÿ Engineering queries.
Ÿ Areas of Concern.

ENGINEER attendance:
ENGINEER's personnel in attendance shall include:
Ÿ ENGINEER REPRESENTATIVE or the Deputy ENGINEER REPRESENTATIVE.
Ÿ Personnel in charge of main activities, as relevant.
Ÿ Specialists as necessary

1.5.3 Monthly Meetings

Location:
Monthly meetings shall be held at the HOME OFFICE.
Date:
Agenda:
• Safety record.
Ÿ Review of the main activities for each WORK PACKAGE being carried out.
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Ÿ Forecast activities by WORK PACKAGE for the next month.

Ÿ Review of planning and compliance with Key Dates.
• Highlights of occurred and / or anticipated problems. Corrective actions being or to be
undertaken.
• Areas of Concern.
Ÿ Review and APPROVAL or comments of each WORK PACKAGE progress for the month.
Ÿ Status of VARIATION ORDERS.
ENGINEER attendance:
As per the weekly meetings or as agreed between COMPANY REPRESENTATIVE and ENGINEER
REPRESENTATIVE.

1.5.4 VARIATION ORDERS Meetings

Location:
VARIATION ORDER meetings shall be held monthly or at the request of either PARTY at a location
to be defined by COMPANY.
Date:
Agenda:
It shall require the attendants to:
Ÿ check the status of VARIATION ORDERS issued,
Ÿ check that the evaluations of VARIATION ORDERS are being issued in due time,
Ÿ discuss, negotiate and finalise outstanding VARIATION ORDER REQUESTS,
Ÿ review the VARIATION ORDER REQUEST and VARIATION ORDER INSTRUCTION
registers.
ENGINEER attendance:
ENGINEER's personnel in attendance shall include:
Ÿ ENGINEER REPRESENTATIVE or his Deputy ENGINEER REPRESENTATIVE.
Ÿ Specialists as necessary
Ÿ any other persons which may be required for attendance as proposed, case by case, by
COMPANY and ENGINEER.

1.5.5 Ad-hoc Meetings

Management level meetings may take place between COMPANY Management and ENGINEER
Management as agreed between the PARTIES. Other meetings may be held at ENGINEER's or
COMPANY's request on any specific matter.

1.6 REPORTING

Reports shall not be construed as being correspondence.

The reporting requirements herein shall not relieve, in any way, ENGINEER from his contractual
obligations to promptly and specifically report to COMPANY all and any matter significantly affecting
the safety, the security, the WORK TIME SCHEDULE and/or quality and compliance of the WORK,
as per Articles 15, 16 and 17 of the AGREEMENT.

1.6.1 Weekly Report

ENGINEER shall submit weekly reports covering all activities with a cut-off date the day before the
last day of the week, to be transmitted by facsimile and reviewed at the weekly meeting (the last day
of the week), and delivered consolidated the first day of the next week.
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The weekly progress report shall contain the information as described in ANNEX N°4.

1.6.2 Monthly Report

The monthly reporting cut off date shall be the last Friday of each month.
The monthly meeting shall take place within one calendar week after the monthly cut off date.
ENGINEER shall make a presentation, at the monthly meeting, of the progress achieved per WORK
PACKAGE and WORK UNIT as of the monthly cut off date.
th
ENGINEER shall prepare and issue the corresponding Monthly Report on or before the 5 of the
following month.
The monthly report shall be formatted and shall have the contents as described in ANNEX N°5.

1.7 DISPATCHING OF PROJECT MANAGEMENT DOCUMENTS

1.7.1 Reports

• Weekly Report: Fax to COMPANY REPRESENTATIVE and

COMPANY main Office
• Monthly Report: Mail to COMPANY REPRESENTATIVE and
COMPANY main Office (4 copies), with copy by fax.

1.7.2 Work time schedules

• Detailed Work Time Schedule(s) as per Article 15.2: 5 copies

1.7.3 Procedures

• Procedures: 3 copies
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2 . DOCUMENTATION CONTROL

2.1 INTRODUCTION

ENGINEER shall adapt and/or develop his document control procedure in accordance with the
following requirements and shall submit them for APPROVAL.

2.2 ENGINEERING DOCUMENTATION

2.2.1 Introduction

ENGINEER shall prepare detailed engineering documentation procedures matching the following
requirements.
These procedures shall deal with the review and approval of ENGINEERING DOCUMENTS during all
phases of basic engineering, issue of drawings, specifications, requisitions, drawing numbering,
equipment, piping and cable identification systems and document control systems.
ENGINEER shall provide for APPROVAL and/or comment a complete set of ENGINEERING
DOCUMENTS for the WORK in accordance with ANNEX No.7: Minimum ENGINEER Documents
Requirements Schedule.
ENGINEER shall provide a complete set of calculations performed for the WORK, including relevant
computer printouts and diskettes as applicable.
The requirements herein shall apply to ENGINEER's own work as well as to work of its
SUBCONTRACTORS. ENGINEER shall impose COMPANY requirements on SUBCONTRACTORS
and take appropriate remedial measures in case of failure of any such SUBCONTRACTOR to comply
with the requirements.

2.2.2 Document Presentation

2.2.2.a Title Block Format

A Standard title block format as per ANNEX No.6 shall be used showing the following:
•
• Contract references:
- SOUTH PARS FIELD DEVELOPMENT PHASES 9 & 10
-
- Contract Number:
• Title of Document:
• Document Number
• Issue Date and Revision Number

2.2.2.b Document Numbering

All documents shall be numbered in accordance with Paragraph 2.3 hereafter.

2.2.2.c Size and Units

The only text accepted on drawings shall be in block letters which shall not be less than 3 mm high.
Metric system (SI) shall be used, except for piping which shall be sized in inches and flanges which
shall be rated in pounds per square inch gauge.
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The size of documents shall be as follows:

• Drawings
A1, A3, A4: recommended
A0 and A2: exceptional
• Other documents: A4
Reproducibles shall be on vellum or high quality plastic sheets, cut to the proper format and not
folded.

2.2.2.d Document Revisions

Each issue of any engineering document shall be identified by a revision index and a date of revision
according to the following procedure:
• Drawings: Nature and/or purpose of the modification shall be noted in the column "Designation"
of the title block on the line corresponding to the relevant revision index. The status shall be
indicated.
• Other documents (A4): Revision index shall be indicated on the front page of the document.
Revised pages shall be indicated on the second page of the document (revised pages
tabulation). Status shall be indicated as for the drawings.
Such indications must be self explanatory. Vague notations (e.g.: up-dating) shall be avoided.
The Revision index shall also be indicated in the lower right part of the drawing title block.
The modified areas shall be identified as follows:
• Drawings: by a triangle holding the revision index plus a "cloud" surrounding the modified
zone.
• Other documents: a triangle holding the revision index shall be drawn in the left margin of the
document in front of the modified line or paragraph.
• Precedent revision indications shall be removed.
The date (day, month, year) shall be pending until document distribution is actually performed by
ENGINEER.
A modified document shall be reissued in its full content (i.e., not only the modified parts but the
complete document).

2.2.2.e Document Status

All Engineering documents shall be issued with the status clearly indicated in the description column
of title blocks as follows:
• Issued for comments
• Issued for APPROVAL
• Approved for Tender
• Approved for Contract
Change of status implies automatically a change of revision index.

2.2.3 Document Control

2.2.3.a Master Document Register

All ENGINEERING DOCUMENTS to be prepared by ENGINEER shall be recorded on a Master

Document Register (MDR) which shall be kept up to date by ENGINEER on a weekly basis, at the
Thursday cut-off date of the weekly report, showing:
• The Document Reference
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• The designation
• The revision index with corresponding date
• The Document Class
• The status (submitted by ENGINEER, commented and/or APPROVED by COMPANY) with
corresponding dates.
The form of the MDR shall require APPROVAL.

2.2.3.b Document Distribution

A Document Control Sheet shall accompany each document submitted to COMPANY. The Control
Sheet shall show the name of originator, issue date, document number and revision.
All documents shall be checked and passed through ENGINEER's Quality Control System and
Procedure prior to submission to COMPANY.
The internal review process shall be documented by internal notes and minutes of meeting, which
may be hand written, and shall be kept in order by ENGINEER.

Prior to distribution to COMPANY for comments or APPROVAL, each drawing shall be signed off by
initials of:
• Author or originator
• The person who checked the drawing in detail (senior engineer or draughtperson)
• The specialist engineer (or the engineering manager for major drawings involving several
groups).

Prior to distribution to COMPANY for comments or APPROVAL, each specification, calculation note,
and/or report shall be signed off by:
• The document writer (specialist engineer)
• The engineering manager.

ENGINEER shall ensure that:

• COMPANY's and statutory technical requirements, relevant specifications, rules and standards
(at latest revision), accepted engineering practice, basic engineering data and interface
requirements have been correctly applied and translated to design documents.
• Decisions have been made by qualified personnel having access to all relevant and up to date
documents.
• Documents have been transmitted for comments to the different specialists which are involved,
in order to avoid incompatibilities between work groups.
• Documents have been checked and correctly signed before distribution to COMPANY.

In particular, ENGINEER shall organize meetings at appropriate stages so as to identify interfaces,

review the points to be checked, and ensure that the specific clarifying documents have been
prepared and kept up to date.

2.2.3.c Number of Copies of Documents

The number of copies of documents to be issued to COMPANY during the performance of the
WORK, shall be as follows:
• PFDs and PIDs five (5)
• All drawings (prints) and specifications five (5)
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• APPROVED drawings and specifications five (5)

• APPROVED issue of CAD Drawings on diskette one (1)
All originals shall be stored in fire-resistant metal cabinets.
The final ENGINEERING DOCUMENTS requirements are:
• CD-ROM under ACROBAT « PDF » format ten (10) sets
• CD-ROM under original file formats (AUTOCAD, WORD, etc.) ten (10) sets
• Paper copies as required by COMPANY (Optional work)
Number of copies for calls for tenders will be indicated separately.

2.2.3.d Documents distribution to COMPANY

As part of its scope of work ENGINEER will do the distribution of its documents to the COMPANY
supervision team at the following locations (as required):
- ENGINEER offices,
- LG/OIEC Project Management Office,
- LG/OIEC main Office.
Distribution will be done, as per COMPANY instructions, by express courier.

2.2.3.e SUPPLIER Documentation

ENGINEER shall review, control and/or comment, as necessary, on SUPPLIERS' documentation to

ensure that:
• Requirements and design data are met.
• Necessary documentation is produced by the SUPPLIER(S).
• Information needed by ENGINEER to proceed with engineering is provided on time.
• Interfaces with adjacent installations or equipment are in accordance with the equirements.
• Previous comments have been taken into consideration by further revision.
• SUPPLIERS documentation has been checked against the contractual list (VDRS) by
ENGINEER who shall then dispatch it to concerned specialists.
• Any missing or late document shall be expedited and obtained.
• Specialists shall clearly indicate their comments on the documentation and identify areas
concerned.
• One copy of commented documentation shall then be returned to the SUPPLIER with a
transmittal to be signed by the specialist engineer.
• At specialist engineer's initiative or SUPPLIER request, technical meetings shall be organized
to clarify comments and/or proposed modifications.

2.2.4 Document APPROVAL

COMPANY's APPROVAL, review or comment on any matter connected with the WORK shall be
sought by ENGINEER in accordance with Article 14.3 of the AGREEMENT and not less than fifteen
(15) calendar days prior to commencement of action on that matter (from the time of related
document(s) being received).
ENGINEER shall prepare a Document APPROVAL Register, based on the list from the MDR, which
shall be a list of all ENGINEERING DOCUMENTS to be issued for review or APPROVAL in
accordance with the CONTRACT together with the dates for their issue. The Document APPROVAL
Register shall indicate:
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• Drawing/data sheet/etc. number and title

• Planned date for issue of each.

• Revised date for issue of each.

• Actual date of issue for each.

The dates on the list shall be in accordance with the scheduling documents. Deviations from
schedule dates shall be clearly marked so that these can be recognized easily. The system shall be
able to provide exception reporting like drawings overdue, drawings to be issued in the next period.
Such ENGINEERING DOCUMENTS shall, as far as possible, be presented by WORK PACKAGE,
WORK UNIT, and discipline and shall include those documents prepared by ENGINEER as well as
those to be obtained by ENGINEER from SUBCONTRACTORS.
This list shall be updated and issued as part of the Monthly Report.
All other ENGINEERING DOCUMENTS, i.e. not to be submitted for APPROVAL, shall either be
issued for COMPANY review (as directed by COMPANY), or made available for reference, in all
successive revisions, with an appropriate filing and retrieval system.
The guidelines for the listing and classification of documents for APPROVAL, review or reference are
shown in ANNEX No.7.

ENGINEERING DOCUMENTS shall be submitted in a streamlined manner, in accordance with the

engineering work plan. Prior to being submitted to COMPANY ENGINEERING DOCUMENTS shall
be reasonably complete. COMPANY reserves the right to refuse to APPROVE any document which,
in its opinion is in an insufficient state of completion, or which is not submitted in a streamlined,
logical order.
Any revision to a document, earlier submitted for APPROVAL, shall be resubmitted for APPROVAL.
COMPANY shall return to ENGINEER a signed copy of the transmittal note for filing.
Comments shall be clearly expressed on the documents, and the commented part identified by a
"cloud".
A stamp shall be set on the front page with the date, the mention "comments", "no comment",
"APPROVED" and the signature of the COMPANY's representative who checked the document.

2.2.5 Design change control

The ENGINEER shall be required to control Design Change by the application of a suitable
procedure. A Detailed Design Change Control procedure shall be submitted as part of the Bid
submission. COMPANY will review this procedure and reserves the right to modify the procedure or
to impose a COMPANY procedure if necessary to ensure effective control.
ENGINEER shall be responsible for maintaining and updating a register or all Design Changes in a
format approved by the COMPANY.

2.3 DOCUMENT NUMBERING SYSTEM

Refer to Annex N° 6.

2.4 EQUIPMENT NUMBERING SYSTEM

To be defined
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3 . SCHEDULING AND PROGRESS REPORTING PROCEDURES

3.1 INTRODUCTION

ENGINEER shall develop a set of detailed procedures covering planning, scheduling, progress
measurement, progress reporting, cost reporting and contract administration for APPROVAL.
The ENGINEER's system shall allow the:
• Analysis and identification of all ENGINEER's and SUBCONTRACTOR's basic activities.
• Progress monitoring of these activities through bar charts, progress curves, histograms, and
follow-up tables.
• Prompt implementation of corrective actions to recover any delay whenever required.
• CONTRACT invoicing accounting and administration.
The overall Control System shall be based on the use of a common cost and scheduling WORK
Breakdown Structure (WBS).
ENGINEER shall prepare for APPROVAL, within fifteen (15) days from EFFECTIVE DATE, and then
follow the CONTRACT WORK Breakdown Structure to be established on the basis of the List of
WORK PACKAGES and WORK UNITS.
The planning and progress measurement activities of ENGINEER shall be performed in such a way
that COMPANY can access and monitor these aspects and integrate them within its overall
PROJECT Control System through use of computerised planning software to achieve prompt and
accurate updating.
ENGINEER's organisation of planning and progress measurement shall satisfy the COMPANY's
requirements as detailed hereafter.

3.2 CONTRACT SCHEDULING

3.2.1 General

In order to monitor the performance of the WORK, ENGINEER shall implement a Planning and
Monitoring System to control the WORK and complying with the WORK TIME SCHEDULE, and
develop a detailed WORK TIME SCHEDULE enabling:
- The Analysis and Identification of all Activities as summarised in WORK TIME SCHEDULE.
- The Progress Monitoring of these Activities through miscellaneous graphical Bar charts, Progress
Curves, Histograms and Follow up tables.
- The prompt implementation of corrective actions, to recover any delay, when required.

All Documents relating to the implementation of a Planning and Monitoring System shall be finalised
within fifteen (15) days from EFFECTIVE DATE as per the provisions of sub-Article 15.2 of the
AGREEMENT and submitted for APPROVAL.
All planning documents shall cover the entire CONTRACT duration.
ENGINEER shall transmit to COMPANY all computerised network data files on 3.5" PC diskettes, in a
format compatible with PRIMAVERA scheduling software.
ENGINEER shall give COMPANY access to all planning and scheduling documentation including that
required for conducting risk analysis studies.
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3.2.2 Objectives

The objectives are to plan the WORK in line with both the Work Breakdown Structure of the
CONTRACT and the Organisational Breakdown Structure of the ENGINEER.
As minimum ENGINEER shall prepare and maintain the following:
- A critical path network using the Precedence Diagramming Method (PDM) from which all other
networks or bar charts shall be aggregated.
- A CTR (Cost, Time, Resources) catalogue which shall be a detailed estimate of the programme
of work.
- A resource histogram by discipline.
- An "S" curve which presents planned progress and actual progress such that a direct
measurement in time can be taken to show how far work is ahead or behind programme.
The principle reporting programme once agreed with COMPANY shall be frozen and planning
updates shall demonstrate the effects of progress by showing actual/forecast progress as a
comparison against planned programme.
Period updates shall be by means of Time Analysis following measurement of physical progress.

Schedule Documents to be produced by ENGINEER shall be at two Levels. The content, extent and
output required for each of these Levels is detailed here below.
All Schedule Documents shall be timed, for the entire CONTRACT Duration, in Accordance with
Project Calendar.

3.2.3 Level 0 Schedule

3.2.3.a Level 0 Bar chart

The Level 0 Bar chart shall be a Summary Bar chart of ENGINEER's WORK.
It shall be a single A4 page Document showing a Bar for each WORK Package described in EXHIBIT
A Scope of WORK.
On this Document shall appear all contractual Milestones, Key Dates and dates of issue of the Calls
for Tender for Long Lead Equipment Items and EARLY CONTRACTS (if any), and EPSC
CONTRACT(S).
Weight Factors as well as Actual Progress to Date will be mentioned for each of the WORK
Packages.
For updating purpose, each Bar will be sliced into 2 lays. The upper lay will represent the Original
Planned Duration. The lower part will represent the updated planned duration. For each bar the
following figures shall be indicated: planned progress, actual progress and weight factor.
Major Holidays, days off and Shutdown Periods shall be indicated.

3.2.3.b Overall Progress and Design Progress Curves

Covering all WORK Packages, to the exception of WORK Package 1, an overall Progress Curve
Chart (A4 format) shall be issued at level 0. It shall represent Planned and Actual Progress and
provide each month value.
Separate Design Progress Curve(s) for specific WORK Package(s) as COMPANY may require shall
also be issued showing planned and actual progress with values.
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Planned Progress will be calculated from Estimated Man-hours. Actual Progress will be based on
Physical Progress of each Activity on which is applied a Weight Factor issued from Estimated Man-
hours (See Paragraph 3.3 Progress Control).

3.2.3.c Overall Histogram

An overall Histogram Chart (A4 Format) shall be produced showing the Planned and Actual hours
consumed on the Project.
Separate histogram(s) for specific WORK Package(s) as COMPANY may require shall be produced.

3.2.4 Level 1 Schedule

The Level 1 activity is at Sub-WORK Unit level or smaller subdivisions when appropriate.

3.2.4.a Level 1 Bar chart

The Level 1 Bar chart shall be issued from a logic network (PDM) showing critical and sub critical
paths.
Listed under all WORK Packages, all Activities (included in ENGINEER's Scope of Work) will be
meaningfully grouped into Discipline/Category of Documents/Purchase Orders/Etc., representing
WORK Units or Sub WORK Units or smaller subdivisions when required for a logic sequencing of the
tasks.
For reporting purposes, each WORK Unit shall be measurable in matter of Planned and Actual
Progress.
Updating will be shown either by the mean of a string line or using the method indicated above for
Level 0 Bar chart.

3.2.4.b Level 1 Progress Table

This Table will provide for each Level 1 Activity the following Information:
- WORK Unit No,
- WORK Unit Designation,
- original Man-hours Estimate,
- revised Man-hours Estimate,
- physical Percent Complete,
- consumed Man-hours to Date.
The information is not limited to the above and other information may be added on COMPANY
request.

3.2.4.c Milestones Status Report

All Contractual Milestones and Completion Dates will be reported on this Document:
- Milestone Description
- Contract Achievement Planned Date
- Forecast Achievement Planned Date (to Date)
- Comments on variations (note).
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3.2.4.d Documents Status Report

This Table will provide for each Level 1 Activity the following Information:
- total Number of Documents Planned,
- total Number of Documents Forecast,
- physical Percentage Complete,
- number of Documents issued to COMPANY,
- number of Documents approved by COMPANY.
This is not exhaustive and other information may be added on COMPANY Request.

3.2.4.e Procurement Status Report (if any)

This Table will provide for each of LONG LEAD ITEMS (if any) the following information:
- Purchase Order No.,
- issue of Data Sheets,
- issue of Enquiry Planned/Revised Planned/Actual Dates,
- quotation Received Planned/Revised Planned/Actual Dates,
- Purchase Order placed Planned/Revised Planned/Actual Dates,
- expected Ex-Works Planned/Revised Planned/Actual Dates,
- expected Delivery Planned/Revised Planned/Actual Dates,
This is not exhaustive and other information may be added on COMPANY request.

3.3 PROGRESS CONTROL

ENGINEER shall implement, maintain and update a computerised Progress control System which
enable the Monitoring and Follow up of Planned/Actual Progress with corresponding Man-hours
Estimated/Consumed, Etc.

3.3.1 General

Immediately after EFFECTIVE DATE, ENGINEER shall prepare a complete Scope of Work Estimate
covering the Resources Requirement. Such Estimate shall consist of the Breakdown of the Scope of
Work into programmable Activities within each WORK Package and WORK Unit.
To each of these Activities shall be allocated a Work Content in Man-hours (or WORK Unit)
estimated to achieve it.
Planned Progress, at any level, shall always be calculated from Estimated Man-hours.

3.3.2 Progress Scales (For Actual Progress)

For each different Category of Documents to be issued, ENGINEER shall propose to COMPANY a
set of Scales to assess Actual Physical Progress.
Actual Progress shall always be based on Physical Achievement. Actual Progress shall be calculated
at lower level using several Progress Scales which differ following the type of ENGINEERING
DELIVERABLES to be issued.
Scales of Progress should be built up using controllable steps of work achievement i.e.:
 PAGE : 18 OF 38

A Issued to COMPANY for comments 70 %

B Issued to COMPANY for Review/APPROVAL 90 %
C Reviewed or APPROVED by COMPANY 100 %

Progress Scales shall not be implemented prior to COMPANY’s APPROVAL.

3.3.3 Weight Factors

For higher level Progress Consolidation, a Weight Factoring System is to be implemented.

Weight Factors will be calculated using Estimated Planned Man-hours.
A Weight Factor will be allocated to each ENGINEERING DELIVERABLE. The few Exceptions to be
envisaged on this Statement may not be implemented prior to COMPANY APPROVAL.
To achieve consistency on Progress Reporting, the Weight Factors will not be modified, during the
course of the CONTRACT, except on COMPANY request.

3.4 COST CONTROL

3.4.1 Introduction

In order to monitor his costs, ENGINEER shall develop a cost control system enabling:
- the cost analysis and identification of all activities in the CONTRACT
- the reporting of the evolution of these costs

The Cost Control system shall cover:

- CONTRACT cost status
- Invoice register
- Cash flow forecast
- any other additional documents to prepare the above.

3.4.2 Monthly Cost Reports

The Monthly Cost Report to be submitted to COMPANY shall consist of:

3.4.2.a Level 1 CONTRACT Status

The Level 1 CONTRACT Status shall be a summary of Design costs. It shall be a single page
showing for each of the WORK Packages of the Scope of WORK the following information:
1. Original CONTRACT Value
2. Transfers, if any, between WORK Packages
3. Current Contract Value (3=1+2)
4. Estimate to Complete
5. Expenditure to-date
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6. Invoice value to-date

7. Estimated Man-hour Build Up
8. Expended Man-hours

3.4.2.b Level 2 CONTRACT Status

The Level 2 shall be as the Level 1 but calculated at the WORK Unit and Sub WORK Unit Level.

3.4.2.c Invoice Register

This register shall be a simple reconciliation of invoices submitted to-date, excluding any rejected
invoices, analysed as follows:
- Invoice No.
- Invoice date.
- Invoice Description.
- Invoice category.
- Invoice value, excluding tax.

3.4.3 General Cost Control

ENGINEER shall prepare and develop such other documents as may be required by COMPANY,
such as cost breakdown of Long Lead Items, (if any) etc.
ENGINEER may from time to time be called upon to carry out particular cost control exercises for
COMPANY consistent with the requirements of a project of this nature.

3.5 INVOICING

The invoicing procedure shall be in accordance with Article 30 of the AGREEMENT and Exhibit B.
 PAGE : 20 OF 38

4. VARIATION ORDERS

4.1 GENERAL

4.1.1 Principles

The VARIATION ORDER Procedure is a CONTRACT management procedure as defined in Article

21 which enables the identification and evaluation of all changes of the WORK arising during the
course of the CONTRACT.
No VARIATION ORDER request of any kind will be considered by COMPANY if ENGINEER has not
strictly adhered to the VARIATION ORDER Procedure.

4.1.2 General Procedure

In accordance with Article 21 of the AGREEMENT the VARIATION ORDER Procedure shall be as
follows:
a) Should COMPANY consider that a change to the CONTRACT Scope of WORK has to be
made, it shall issue a VARIATION ORDER Instruction (VOI) for ENGINEER evaluation as
per Paragraph 4.1.3. hereafter.
b) Should ENGINEER consider that he is entitled to a VARIATION ORDER, in accordance
with the conditions of Article 21 of the AGREEMENT, ENGINEER shall submit for
APPROVAL a VARIATION ORDER Request (VOR) as per Paragraph 4.1.4. hereafter.
Upon receipt, COMPANY may either APPROVE such a VOR or reject such a VOR or
request further clarification. After APPROVAL, COMPANY will re-issue this document as a
VOI which shall be signed in duplicate by both PARTIES.

4.1.3 Variation Order Instructions (VOI)

If a change to the CONTRACT scope of WORK is requested or APPROVED by COMPANY, a VOI

shall be issued to ENGINEER showing:
Ÿ The description of the change.
Ÿ The rule for compensation (to be mutually agreed in accordance with the CONTRACT) to be
used to amend the CONTRACT PRICE which ENGINEER shall fully evaluate.
Ÿ The modification(s) if any, to the WORK TIME SCHEDULE (to be mutually agreed in
accordance with the CONTRACT).
ENGINEER shall immediately put into effect the necessary measures to implement the VOI.
Within 7 days from receipt by ENGINEER of the VOI, ENGINEER shall evaluate the effects on the
CONTRACT PRICE and on the WORK TIME SCHEDULE, in accordance with sub-Article 21.3 of the
AGREEMENT, the provisions of the Exhibit B and this present procedure, and shall return the VOI to
COMPANY.
The value of a change, unless COMPANY states otherwise, will be expressed as a fixed lump sum
and the lump sum shall include all the present and future consequences of the change and
ENGINEER shall not make any further claims for such consequences whether direct or indirect.
Upon receipt of the evaluation COMPANY shall advise ENGINEER either:
a) that it accepts the evaluation and in which case COMPANY will issue a VOI Final Status, or,
b) that it requires clarification and/or revisions to the evaluation and in which case it will return
the VOI to ENGINEER for resubmittal.
 PAGE : 21 OF 38

VOI Final Status shall be issued in two originals to ENGINEER, one of which has to be signed by
ENGINEER and returned to COMPANY as an acceptance to comply with the requested variation to
the scope of WORK at the specified price and according to the specified rules and schedule, the other
original being for ENGINEER retention.
In some exceptional and urgent cases, COMPANY may decide to issue a VOI before an agreement
on cost and schedule adjustment is reached. This shall not relieve ENGINEER from complying with
the full VARIATION ORDER procedure.
After the performance of the WORK corresponding to such VOI, COMPANY shall issue the VOI Final
Status to reflect the actual consequences of such performance on the CONTRACT PRICE and
WORK TIME SCHEDULE as affected by the actual quantities and durations involved. ENGINEER
shall return one original as above.

4.1.4 Variation Order Request (VOR)

In case ENGINEER considers he is entitled to a VARIATION ORDER he shall issue for APPROVAL a
VOR duly registered, and showing:
Ÿ The description and justification of the VARIATION ORDER.
Ÿ Its complete evaluation, with the appropriate cost breakdown.
Ÿ Its effect on the WORK TIME SCHEDULE, if any.
The VOR shall be transmitted to COMPANY by letter, according to the provision of sub-article 21.2 of
the AGREEMENT.
A VARIATION ORDER Request will not be considered by COMPANY if it is not fully substantiated by
a complete evaluation including an appropriate and detailed back up dossier.
Furthermore, all VARIATION ORDER evaluations issued by ENGINEER shall be deemed to take into
account the full effects of the considered changes upon any and all aspects of the CONTRACT.
After review of the VOR , COMPANY shall advise ENGINEER either:
a) that it rejects the VOR as it considers that the subject matter of the VOR is within the
CONTRACT, or,
b) that it constitutes a change, in which case, after agreement upon the amount and other
effects of the change, COMPANY will issue a VOI Final Status, as per Paragraph 4.1.3.
above, and ENGINEER shall immediately put into effect the necessary measures to
implement the VARIATION ORDER, or,
c) that it requires the VOR to be clarified and/or revised and resubmitted.

4.1.5 Cost of VOR preparation & variation order evaluation

The cost of preparing any VOR or VARIATION ORDER evaluations, whether or not it is later
accepted by COMPANY, shall be borne by ENGINEER and shall not be reimbursed by COMPANY.
Similarly, ENGINEER shall be responsible, where applicable, for measuring any work covered by a
VOI and shall not be entitled to reimbursement for such measurement work.

4.2 VOR AND VOI REGISTERS

A VOR and VOI register shall be kept updated by ENGINEER and shall be included as part of the
Monthly Report and shall be provided at each VARIATION ORDER meeting.

4.2.1 VOR Register

The VOR register shall show:

 PAGE : 22 OF 38

Ÿ VOR and revision numbers

Ÿ Date and reference of notice to COMPANY
Ÿ Brief description
Ÿ Cost
Ÿ Effect on schedule
Ÿ Status (accepted - rejected - pending)

4.2.2 VOI Register

The VOI register shall show:

Ÿ VOI and revision numbers
Ÿ Date of issuance
Ÿ Brief description
Ÿ Status (Work progress, amount invoiced)
• Remuneration (Lump Sum, Rates) and expected value
• Effect on WORK TIME SCHEDULE, if any
• VOI Final Status issuance date
• Final value
• Final effect on WORK TIME SCHEDULE
•

4.3 VARIATION ORDER MEETINGS

4.3.1 Frequency

As part of the Monthly Meeting (or specifically if deemed necessary) a VARIATION ORDER meeting
will be organised for review of VOR and VOI.

4.3.2 Agenda of VARIATION ORDER meetings

To review the CONTRACT situation in terms of changes:

Ÿ To check and review the status of VOIs and VORs.
Ÿ To review outstanding VORs
Ÿ To review and update the VOR - VOI registers.

4.4 INVOICING AND PAYMENT OF VARIATION ORDERS

VARIATION ORDERS shall be separately identified and invoiced individually.

Payment of VARIATION ORDERS shall be made as specified in Article 30 of the AGREEMENT and
Exhibit B provided:
Ÿ The VOI Final Status has been signed by the PARTIES or in the exceptional cases of a VOI
issued on an estimated basis then unit rates or time rates are applicable.
Ÿ The corresponding work is completed and accepted or in exceptional circumstances, with
APPROVAL, on a monthly basis against achieved progress.
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5. CONTRACT CLOSE OUT

5.1 PROVISIONAL ACCEPTANCE CERIFICATE

COMPANY shall issue the PROVISIONAL ACCEPTANCE CERTIFICATE relating to the work, in
accordance with Article 18.2 of the AGREEMENT.

5.2 FINAL ACCOUNT AND RELEASE CERTIFICATE

ENGINEER shall sign the Final Account and Release Certificate attached to the AGREEMENT as
ANNEX 02 upon completion of the WORK.

5.3 FINAL ACCEPTANCE CERTIFICATE

COMPANY shall issue the FINAL ACCEPTANCE CERTIFICATE relating to the WORK, in
accordance with Article 20 of the AGREEMENT.
 PAGE : 24 OF 38

Annex 1 - COMPANY Organisation Chart

(To Be Provided Later)

 PAGE : 25 OF 38

Annex 2 - ENGINEER Organisation Chart

Refer to EXHIBIT K
 PAGE : 26 OF 38

Annex 3 - Correspondence Codification and Numbering

To be defined later
 PAGE : 27 OF 38

Annex 4 - Format of Weekly Report

 PAGE : 28 OF 38

WEEKLY REPORT N°: ........................................

WEEK FROM .................. TO ..............................

FROM : ................................................

TO : POGC

Attention:

COPIES : -

1. MAIN EVENTS

An executive summary outlining key events of the past week and stating the actual versus planned
overall progress, man-hours and key dates if any.

2. MANAGEMENT PERSON NEL MOBILISATION/DEMOBILISATION

 PAGE : 29 OF 38

3. BASIC ENGINEERING

• Progress

PROGRESS ACTUAL PLANNED WEEK

OVERALL ............... ............... ...............

BY WORK PACKAGE: ............... ............... ...............

............... ............... ...............

• Narrative

A statement of major drawings and documents issued per area and discipline (as a percentage and in
a narrative form).

Short narrative highlighting the main actions and/or document issues scheduled during the next two (2
Nr) weeks, critical activities and any problem areas..

4. SUPPLY OF LONG LEAD ITEMS (AS APPLICABLE)

• Progress

PROGRESS ACTUAL PLANNED WEEK

• Narrative

A statement of contracting status, expediting status and inspection status for the week, actual versus
planned.

A narrative on achievements, main activities planned for the coming period, critical activities and any
problem areas.
 PAGE : 30 OF 38

5. AREAS OF CONCERN

• Narrative
Highlighting any delay to key events and proposed corrective actions.

6. ATTACHMENTS

• ENGINEER's Summary Schedule.

• ENGINEER's Detailed Schedule.
• Progress "S" curves for the WORK and for each WORK PACKAGE.
• Manpower histogram for both planned and actual manpower and both for the WORK and for each
WORK PACKAGE.
• Man-hours status
 PAGE : 31 OF 38

Annex 5 - Format of Monthly Report

 PAGE : 32 OF 38

FORMAT OF MONTHLY REPORT

The Monthly Report, with a cut off on the last Friday of the month, shall be presented at the Monthly Meeting
and shall contain the following:
• Management Summary
• WORK PACKAGE 1
• WORK PACKAGE 2
• Each other WORK PACKAGES.
• Attachments.

1. The Management Summary shall include:

• Management foreword summarising the highlights of the period: main events of the month, main
meetings held, main milestones reached, main decisions taken, main problems solved, new or
potential problems arising, safety and environmental issues.

• Status of Key Dates

• Summarised Project Progress Status

• Summarised Manpower Status

• Summarised Man-hours Consumption Status

• Level 0 Schedule

• Overall Progress Curve

• Overall Histogram

2 Each WORK PACKAGE Section shall include:

Narrative highlighting the main events for each WORK UNIT or SUB WORK UNIT, as applicable:
outstanding actions, feed back on objectives planned for the period, objectives for the forthcoming
period, areas of concern and outstanding matters and actions to be taken by COMPANY, ENGINEER or
SUPPLIERS, with expected or imperative dates.

3 Included as Attachments shall be:

Management:

• ENGINEER's Summary Schedule showing Planned and Actual Progress and supporting S-curve.

• ENGINEER's Detailed Schedule showing Planned and Actual Progress.

• Manpower Histogram.

• Cost Report, as per paragraph 4.4.2

• VOR and VOI Registers, as per Paragraph 5.2

Engineering:

• Master Document Register, as per Paragraph 2.2.3.a

• Document APPROVAL Register, as per Paragraph 2.2.4

 PAGE : 33 OF 38

Annex 6 - Document types and area codes

 PAGE : 34 OF 38

Table 1 LIST OF DOCUMENT TYPES (INDICATIVE)

A CALCULATION NOTES

C CERTIFICATES Material, Conformity, Weight, etc

D DRAWINGS GA, Plot Plan, Isometric, P&ID, Diagram, Layout, etc.

E DATASHEETS

L LISTS Cable Lists/Schedules, Equipment, Line, Material,

Parts,Piping, Tube, etc.

M MANUALS Engineering, Functional, Maintenance, Operating, Quality,

Technical, User, etc.

P PROCEDURES Commissioning, Inspection, Installation, Storage, Test,

Transport, Welding, etc

Q REQUISITIONS

R REPORTS Inspection, Progress, Study, Test, Welding, etc.

S SPECIFICATIONS

Z SCHEDULES Bar Charts, Delivery, Design, Inspection, Manufacturing,

Quality, Test, etc.

Table 2 LIST OF AREA CODES

TO BE DEFINED

Table 3.1 LIST OF UNITS/SUB-AREAS CODES

TO BE DEFINED

AREAS UNITS/SUB-AREAS DESCRIPTION

Table 4.1 SYSTEMS NUMBERS COMMON

 PAGE : 35 OF 38

COMMON SYSTEM NUMBER COMMON SYSTEM NUMBER

To be developed
 PAGE : 36 OF 38

Table 5 DISCIPLINE CODES

DISCIPLINE CODE DESCRIPTION

GENERAL A Management, Admin, Cost, Procurement,

Services, Commissioning, QA/QC, etc.

ARCHITECTURAL B

CIVIL C

DRILLING D

ELECTRICAL E

SAFETY F

GEOTECHNICAL G

HVAC H

INSTRUMENTATION I

PIPING L

MECHANICAL M

INSULATION N

PROCESS P

RISERS & PIPELINES R

STRUCTURAL S

TELECOMMUNICATION T

MARINE & SUBSEA U

VESSELS V

WEIGHT CONTROL W

PAINTING & CORROSION X

An equipment package (skid mounted) is usually given the discipline code 'M' for Mechanical.
 PAGE : 37 OF 38

Annex 7 - Minimum ENGINEER'S

Documents Requirement Schedule
 PAGE : 38 OF 38

1- PREAMBLE

This schedule is intended to define the minimum requirements for ENGINEERING DOCUMENTS to be
prepared and issued for COMPANY review or APPROVAL.

This schedule is not intended to be exhaustive and any document required within the frame of this
CONTRACT, necessary for the execution of the WORK, shall be prepared by or caused to be prepared
by ENGINEER and be made available for COMPANY review or APPROVAL if requested.

ENGINEER shall prepare and submit for APPROVAL the Document APPROVAL Register upon which he
shall have marked the classification of documents (for APPROVAL or review) based upon the
classification guidelines herein.

ENGINEERING DOCUMENTS shall be issued to COMPANY simultaneously with other addressees at all
stages of progress and all status of revision. Periodic ENGINEERING DOCUMENTS shall be issued to
COMPANY in accordance with their stated periodicity.

The number, type of support and procedure for submission of documents for review and APPROVAL will
be found under Section 2.2 of this Co-ordination Procedures.

The Document APPROVAL Register shall indicate COMPANY's requirements for distribution of
documents in addition to ENGINEER's, and shall be submitted for APPROVAL.

2- LEGEND

Class 1: for APPROVAL

ENGINEER requires APPROVAL before proceeding or may proceed if COMPANY has made no
comment after fifteen (15) days from the receipt by COMPANY, as per Article 14.3.4 of the
AGREEMENT.

Class 2: for Review

COMPANY reserves the right to comment as per Article 14.3.5 of the AGREEMENT.

ENGINEER is required to mark each document issued with a stamp "Document Class" and to enter the
appropriate Class number. Where the assignment of a particular Class is in doubt, ENGINEER shall
refer to COMPANY for agreement.