Project Execution Plan

This Project Execution Plan (PEP) defines the methods and project management elements used by ЕРСМ to manage the execution of the Well Expansion Project.  It describes the project scope of work, and defines the organization, work processes, and systems necessary for management of the project. 

TABLE OF CONTENTS

Record of Revision and Signature Page..................................................................................... 1
Preface..................................................................................................................................... 2
Table of Contents...................................................................................................................... 3

1.0     Project EXECUTION OVERVIEW.......................................................................................... 8

1.1     Client............................................................................................................................... 8

1.2     Other Project Participants................................................................................................. 9

1.3     Contractual Basis and Terms............................................................................................. 9

1.4     Facility Description......................................................................................................... 10

1.5     Scope of Work............................................................................................................... 11

1.6     Key Project Objectives.................................................................................................... 12

1.7     General Execution Strategy............................................................................................. 13

1.8     Dual Office Execution Strategy....................................................................................... 14

1.9     Risk Factors and Opportunities....................................................................................... 15

1.10   Project Cost and Schedule.............................................................................................. 15

2.0     Kick-off, Planning and Baseline Development......................................................... 16

2.1     Organization and Responsibilities.................................................................................... 16

2.2     Project Kickoff and Alignment......................................................................................... 22

2.3     Initial Planning................................................................................................................ 23

2.4     Project Baseline Development......................................................................................... 24

2.5     Project Scope Definition................................................................................................. 24

2.6     Risk Identification and Mitigation (Fluor Internal Work Process)......................................... 25

3.0     Project Administration.................................................................................................. 25

3.1.    Organization and Responsibilities.................................................................................... 25

3.2.    Identifying the Project Team............................................................................................ 26

3.3.    Project Communications................................................................................................. 26

3.4.    Records Management..................................................................................................... 28

3.5.    Project Issues Identification and Resolution (Action Tracking)........................................... 29

3.6.    Human Resource Administration...................................................................................... 29

3.7.    Information Dissemination / Public Relations.................................................................... 30

3.8.    Prime Contract Administration and Documentation........................................................... 30

4.0     PROJECT CONTROLS / Estimating..................................................................................... 30

4.1.    Organization and Responsibilities.................................................................................... 31

4.2.    Estimating...................................................................................................................... 31

4.3.    Scheduling..................................................................................................................... 32

4.4.    Cost Control................................................................................................................... 32

4.5.    Progress and Performance Measurement......................................................................... 33

4.6.    Project Reviews and Reporting........................................................................................ 33

5.0     Project Business Services............................................................................................ 34

5.1.    Organization and Responsibilities.................................................................................... 35

5.2.    Accounting System......................................................................................................... 35

5.3.    Labor Charging and Reporting......................................................................................... 35

5.4.    Supplier / Contractor Invoices.......................................................................................... 36

5.5.    Client Invoicing............................................................................................................... 36

5.6.    Accounting Reports........................................................................................................ 36

6.0     Change management........................................................................................................ 36

6.1.    Organization and Responsibilities.................................................................................... 36

6.2.    Identifying Potential Deviations....................................................................................... 37

6.3.    Change Management Process......................................................................................... 37

7.0     Project Information Management............................................................................... 38

7.1.    Organization and Responsibilities.................................................................................... 39

7.2.    Project Network Requirements......................................................................................... 39

7.3.    Automation Security Requirements.................................................................................. 40

7.4.    Standard Hardward and Project Reference Systems......................................................... 40

7.5.    Project Electronic Communications and Collaboration...................................................... 40

7.6.    Site IT Plan..................................................................................................................... 42

7.7.    Information Management Deliverables and Close-out........................................................ 42

8.0     ENGINEERING / DESIGN........................................................................................................ 42

8.1     Organization and Responsibilities.................................................................................... 43

8.2     Engineering Phases........................................................................................................ 45

8.3     Design Basis.................................................................................................................. 45

8.4     Design Deliverables........................................................................................................ 45

8.5     Design Control............................................................................................................... 47

8.6     Project Document and Data Management........................................................................ 50

8.7     Procurement and Contracts Support................................................................................ 50

9.0     Material Management..................................................................................................... 51

9.1     Organization and Responsibilities.................................................................................... 52

9.2     General.......................................................................................................................... 55

9.3     Material Planning............................................................................................................ 56

9.4     Material Management and Systems Setup........................................................................ 59

9.5     Purchasing..................................................................................................................... 59

9.6     Purchase Orders............................................................................................................. 64

9.7     Expediting...................................................................................................................... 67

9.8     Supplier Quality Surveillance........................................................................................... 68

9.9     Traffic and Logistics....................................................................................................... 69

9.10   Field Material Management.............................................................................................. 72

10.0   CONTRACT Management.................................................................................................... 72

10.1   Purpose......................................................................................................................... 72

10.2   Basis............................................................................................................................. 72

10.3   Organization and Responsibilities.................................................................................... 73

10.4   Contracting Basis........................................................................................................... 76

10.5   Project Contracting Philosophy....................................................................................... 76

10.6   Overall OWEP Scope...................................................................................................... 77

10.7   Criteria for Contract Scoping........................................................................................... 77

10.8   Subcontract Risk Assessment......................................................................................... 84

10.9   Claims Avoidance Program............................................................................................. 84

10.10 Temporary Facilities and Construction Services................................................................ 84

10.11 Field Subcontracts Management...................................................................................... 85

10.12 Contract Management Systems....................................................................................... 85

10.13 Functional Reviews and Technical Audits......................................................................... 85

10.14 Individual Subcontract Plans........................................................................................... 85

11.0   CONSTRUCTION Support.................................................................................................... 85

11.1   Organization and Responsibilities.................................................................................... 86

11.2   Development of Construction Execution Strategy............................................................. 86

11.3   Constructability, Maintainability and Operability (CMO) Process........................................ 86

11.4   Constructability Reviews................................................................................................. 87

11.5   Maintainability and Operability Reviews............................................................................ 87

11.6   Development of Site Construction Plans.......................................................................... 87

11.7   Development of Work Packages..................................................................................... 88

11.8   Site Survey / Verification................................................................................................. 89

12.0   Quality Management........................................................................................................ 89

12.1   Organization and Responsibilities.................................................................................... 89

12.2   Fluor Operating System.................................................................................................. 90

12.3   Audit Strategy................................................................................................................ 91

12.4   Nonconformities............................................................................................................. 92

12.5   Corrective and/or Preventive Action................................................................................. 92

12.6   Quality Performance Indicators........................................................................................ 92

13.0   Value Creation / Knowledge Management................................................................. 93

13.1   Organization and Responsibilities.................................................................................... 93

13.2   Project Performance Measures........................................................................................ 93

13.3   Communication............................................................................................................... 93

13.4   Value Creation Strategies................................................................................................ 93

13.5   Knowledge Management................................................................................................. 94

13.6   Value Engineering (VE)................................................................................................... 94

13.7   Feedback Systems......................................................................................................... 94

13.8   Project Recognition Program........................................................................................... 94

14.0   Health, SAFETY, Environmental and Security........................................................... 94

14.1   Objectives and Goals...................................................................................................... 95

14.2   Organization and Responsibilities.................................................................................... 95

14.3   Health, Safety, and Environmental Philosophy................................................................. 98

14.4   Design HSE................................................................................................................... 99

14.5   HSE program................................................................................................................ 101

14.6   Safety and Health......................................................................................................... 102

14.7   Security........................................................................................................................ 105

14.8   REGULATORY AND CERTIFICATION/PERMITTING......................................................... 106

15.0   Construction Site Execution....................................................................................... 114

15.1   Fabrication Execution Strategy...................................................................................... 114

15.2   Organization and Responsibilities.................................................................................. 114

15.3   Overall Construction Execution Strategy......................................................................... 116

15.4   Organization and Responsibilities.................................................................................. 116

15.5   Summary of Alignment Meetings................................................................................... 120

15.6   Site-Specific Planning................................................................................................... 121

15.7   Construction Temporary Facilities.................................................................................. 123

15.8   Construction Schedule and Sequence............................................................................ 123

16.0   Final Phases of the Field Work.................................................................................. 125

16.1   Organization and Responsibilities.................................................................................. 125

16.2   Testing and Startup Support.......................................................................................... 125

16.3   Documentation Support................................................................................................ 125

17.0   PROJECT CLOSE-OUT.......................................................................................................... 126

17.1   Organization and Responsibilities.................................................................................. 127

17.2   Final Negotiations and Financial Close-Out..................................................................... 127

17.3   Formal Notices of Completion and Acceptance.............................................................. 127

17.4   Transfer and Disposition of Records and Property......................................................... 128

17.5   Documenting Project History......................................................................................... 128

18.0   LIST OF Attachments....................................................................................................... 129