PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PART C SERVICES & DELIVERABLES - FEED & EPC FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION PAGE 1 OF 1
DATE: 11 DE JULIO DE 2009
PART C SERVICES AND DELIVERABLES
FRONT END ENGINEERING DESIGN - ENGINEERING, PROCUREMENT, AND CONSTRUCTION
(FEED & EPC)
Table of Contents
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
1. Introduction
2. Project Participants 3. General Distinction between FEED and EPC Services, Deliverables,
Performance Expectations and Success Factors
4. Project Instructions
PETROPERU, S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PART C SERVICES AND DELIVERABLES - FEED & EPC FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION
PAGE 1 OF 4 DATE: 11 DE JULIO DE 2009
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
PART C SERVICES AND DELIVERABLES
FEED & EPC
1. Introduction
Part C Services and Deliverables is a section of the MJS for the PETROPERU S.A. Talara Refinery Modernization (TRM) Project FEED-EPC Agreement. It defines the framework of Services and Deliverables expected from the FEED-EPC Contractor.
Part C presents a general description of the FEED-EPC Contractors roles and responsibilities during the FEED-EPC execution and is supplemented with Annexes C1 FEED and C2 EPC, each of which address in a more detailed manner the roles and responsibilities during the reimbursable cost (FEED) and Lump Sum (EPC) phases of the TRM Project. EMPLOYER is depending on the FEED-EPC CONTRACTOR to be conceptualizer, coordinator, optimizer, planner, designer, executer and Commissioning/Start-up/Performance testing CONTRACTOR for the entire TRM Project.
Notwithstanding the definitions in Annex C1 FEED, Annex C2 EPC, and the Agreement, EMPLOYER lets the FEED-EPC CONTRACTOR to take the decision to organize and efficiently manage/execute the following:
All FEED obligations/functions necessary to incorporate Licensors Basic Design Packages (BDP) and FEED CONTRACTORS internally designed Open Art BDPs into an integrated, optimized, cohesive, comprehensive, reliable, CAPEX and OPEX effective, high quality set of FEED phase deliverables including but not limited to complete FEED packages for all units, a +/-10% quality Open Book Estimate (pursuant to rule AACEI RP N 18R-97 Cost Estimate Classification System as applied in Engineering, Procurement, and Construction for the Process Industries), and a definitive EPC Phase Project Execution Plan (PEP).
Responsively develop a mutually acceptable LS Contract Price and Conversion from Reimbursable Cost to Lump Sum through an Open Book Estimate process.
Carry out the EPC phase Date and Price Certain Agreement and related responsibilities developed and agreed to following the FEED phase in accordance with established international performance standards and best practices.
These principles should be used to guide all FEED-EPC Contractor activities and actions throughout the TRM Project.
PETROPERU, S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PART C SERVICES AND DELIVERABLES - FEED & EPC FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION
PAGE 2 OF 4 DATE: 11 DE JULIO DE 2009
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
2. Project Participants
A more detailed description of the principal participants in the TRM Project is presented in Part A Project Perspective of the MJS. PMC obligations as expressed in the MJS are only relevant as between PETROPERU and the PMC and do not affect in any way the FEED-EPC Contractors obligations. An abbreviated summary is included herein for convenience:
PETROPERU S.A. named Owner and Employer for the Talara Modernization Project who has formed the EMPLOYER Project Team (PT) consisting of the EMPLOYER Project Manager and his staff responsible for the Project planning, development and execution. Project Management Consultancy Contractor (PMC) Contractor selected by EMPLOYER to serve as EMPLOYERs Representative and provide TRM project management support services to the PT as well as TRM project principal representation, consulting and oversight services on behalf of EMPLOYER with relations to the activities and performance of the FEED-EPC CONTRACTOR. Delegated authorities and responsibilities between EMPLOYER and the PMC will be documented in advance and shall be approved by EMPLOYER.
FEED-EPC CONTRACTOR CONTRACTOR selected by EMPLOYER shall fulfill the principal Contractor roles and responsibilities outlined above in Section 1 Introduction. FEED responsibilities will be conducted on a reimbursable cost Fixed Fee Mark-Up culminating, among other things, in the development of quality Job Specifications for all Talara Refinery Modernization facilities and a comprehensive and competitively priced Open Book Estimate, supported by a comprehensive Project Execution Plan (PEP). Until Conversion is achieved (Pre-Construction period), detailed engineering and procurement work will proceed on a reimbursable cost basis. Once achieved, subsequent EPC work obligations will be completed on a mutually agreed LS basis and in accordance with a mutually agreed and updated PEP.
Licensors EMPLOYER has selected a set of Licensors of proprietary processes to work collaborate with the FEED-EPC CONTRACTOR in order to provide a fully integrated, cost efficient and environmentally friendly modernization facility for Talara. Said Licensors will cooperate with the FEED-EPC CONTRACTOR and communicate directly on relevant technical matters. In addition, Licensors will provide guides and training for the EMPLOYERs personnel and performance testing support.
Main Automation Sub-Contractor (MAC) FEED-EPC CONTRACTOR will select and with EMPLOYER approval shall contract a Main Automation Sub-Contractor (MAC) to be in charge of the design, procurement and construction activities of the modernized refinery Processes Control Systems. FEED-EPC CONTRACTOR shall be responsible for coordination with the Licensors and the MAC and shall assist MAC in carrying out its obligations and responsibilities in
PETROPERU, S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PART C SERVICES AND DELIVERABLES - FEED & EPC FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION
PAGE 3 OF 4 DATE: 11 DE JULIO DE 2009
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
an efficient, timely manner. The Licensors shall be expected to fully cooperate with the FEED-EPC Contractor and MAC in these efforts. The MAC will be a subcontractor of the FEED-EPC CONTRACTOR
After the project closing out, the MAC and the EMPLOYER with discuss the possibility of entering in a new agreement in order to have operating assistance from the MAC.
3. General Distinction between FEED and EPC Services, Deliverables, Performance Expectations and Success Factors
Specific performance expectations for the FEED-EPC CONTRACTOR with regard to the FEED and EPC Phases of the TRM Project are set forth in Annex C1 FEED and Annex C2 EPC respectively. Before proceeding to the Annexes, the end goals for each of these Phases should be recognized from a more holistic basis. It is EMPLOYERs intent that at the end of the FEED portion of the FEED-EPC CONTRACTORs effort, the facilities for TRM Project be completely defined to where:
An AACEI Class 2 Open Book Cost Estimate (+/-10% accuracy) can be and has been developed, supported by a quality, comprehensive PEP for the EPC Phase.
FEED-EPC CONTRACTOR and EMPLOYER can agree, in the established time, a mutually satisfactory Conversion and proceed without interruption into the LS EPC phase of the project.
FEED-EPC CONTRACTOR can, at EMPLOYERs option, proceed immediately and efficiently into the Pre-Construction transition stage, initiating detailed engineering and procurement activities in accordance with the mutually agreed PEP.
EMPLOYERs expectations at completion of the EPC Phase of the project, if it proceeds as anticipated with the FEED-EPC CONTRACTOR, include acceptance of a smoothly operating Modern Talara Refinery facility, meeting specified quality standards and operating efficiently and reliably, safely producing desired product quantities/quality, with desired operating flexibility, while meeting CAPEX and OPEX objectives in accordance with the Agreement.
Annex C1 FEED and Annex C2 EPC will provide more extensive definition of the services, deliverables and expectations for the FEED and EPC phases of the project respectively. In spite of the split between the FEED and EPC phases of the project, the FEED-EPC CONTRACTOR is expected to think entirely of these two phases and be prepared to develop the EPC phase in a highly timely and cost effective manner.
PETROPERU, S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PART C SERVICES AND DELIVERABLES - FEED & EPC FEED-EPC CONTRACTOR IFP MASTER JOB SPECIFICATION
PAGE 4 OF 4 DATE: 11 DE JULIO DE 2009
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
4. Project Instructions
The following are Project Instructions (PI) for the FEED-EPC CONTRACTOR. These PIs define a number of administration and communications minimum requirements between EMPLOYER/PMC and the FEED-EPC CONTRACTOR during the course of the project. It is expected that the selected Bidder will use these PIs as a basis for developing, in an extensive and specific manner, its Coordination Procedures for the TRM Project. For the most part, PIs are the same for both the FEED and EPC phases of the project, except where otherwise annotated.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 1 OF 1
DATE: JULY 16, 2009
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
PROJECT INSTRUCTIONS
TABLE OF CONTENTS
Tab # Title
1. Correspondence 2. Time Management 3. Cost Management 4. Quality Management 5. Procurement 6. Material Control 7. Document Control 8. Change Control 9. Project Specificactions 10. Finance and Insurance 11. Responsibility for Other Contract 12. Overall Construction Plan 13. Site Health, Safety, Security and
Environmental
14. Monthly Progress Reporting 15. Measurement of Percentage Completion 16. Mechanical Completion and Facilities
Turnover
17. Models 18. Compilation of Project Data 19. Companys Reviews, Agreements,
Approvals & Authorizations
20. Protection of Proprietary/Confidential Information
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 1 OF 20
DATE: JULY 10, 2009
1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
I. OBJECTIVE
This Instruction addresses issuance and distribution requirements for all project related correspondence and communications.
II. GENERAL REQUIREMENTS
All Project communications are to be provided in both the Spanish and English language with, in case of conflict, the Spanish version will prevail.
Project participant addresses are presented in Exhibit 1-1, while the requirements for EMPLOYER-originated and CONTRACTOR-originated correspondence are detailed in Exhibits 1-2 and 1-3, respectively. (CONTRACTOR shall note that Exhibit 1-3, as presented, displays only a tabulation of those documents it and the Supervised Contractors, vendors, and subcontractors under its control shall produce and issue for the project. Therefore, CONTRACTOR shall submit, at the Agreement Signature, for EMPLOYERs review and approval, Exhibit 1-3 upgraded to a matrix format and included as Exhibit 1-4.)
A. Mail and Email Correspondence
1. CONTRACTOR-originated project correspondence shall be addressed to EMPLOYERs Project Manager (or Representative at Site appointed by the EMPLOYER) using appropriate alphanumeric sequential numbering systems to identify correspondence. Copies and distribution of said correspondence shall be in accordance with Exhibit 1-4.
2. All EMPLOYER-originated correspondence to CONTRACTOR shall be in accordance with Exhibit 1-2 and addressed to Contractor's Project Manager or Construction Manager.
3. All hardy copy mailings shall use the most time/cost effective class of postal and courier services and shall accommodate, if appropriate, requirements of customs clearance or other applicable considerations. To further expedite delivery, larger mailings (or emails as applicable) shall be subdivided into smaller packages (or files for emails or other electronic transmissions) which shall be clearly identified as components of a larger multiple package (e.g., 1 of 6).
4. Facsimile transmission or emailing of letters and other items may be used when feasible but critical items such as notices, approvals, etc. shall be confirmed by hard copy originals mailed to the party.
5. Alternate means (e.g., air or motor freight) may be employed for those items not purely correspondence in nature such as catalogs, manuals, etc.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 2 OF 20
DATE: JULY 10, 2009
1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
B. Telephone or Email Communication - Immediate, written confirmation of all queries, agreements, and instructions transmitted via telephone or email shall be mandatory. Should said confirmation require distribution, copies of such written confirmation shall be distributed in accordance with Exhibits 1-1, 1-2, and 1-3.
C. Vendor Documents and Data - CONTRACTOR shall note that "Vendor Documents and Data" is defined to include all drawings, specifications, calculations, and other data requiring CONTRACTOR or EMPLOYER approval as produced by Vendors, Sub-Vendors, Supervised Contractors, and subcontractors under CONTRACTOR's control. Distribution by CONTRACTOR of said material shall be consistent with the development status of the information contained, e.g., raw, reviewed, resubmitted, or certified.
D. SUPPORTING INFORMATION CONTRACTOR shall design a system that permits to have electronic copies of all the documents and data generated during the Project execution with the security elements and appropriate access that have to be approved by the EMPLOYER; this system shall be always updated and maintained by the CONTRACTOR, with access to the EMPLOYER or EMPLOYERs Representative.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 3 OF 20
EXHIBIT 1-1 PAGE 1 of 2
DATE: JULY 10, 2009
1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
EXHIBIT 1-11
PARTICIPANT ADDRESSES
EMPLOYERs Authorized Representatives
(Name of EMPLOYERs Project Manager) (Street Address) (Mail Address) (Telephone) (Cell Phone) (Fax) (Email Address)
(Name of EMPLOYERs Representative at Site) (Street Address) (Mail Address) (Telephone) (Cell Phone) (Fax) (Email Address)
1 EMPLOYER shall insert names of appropriate EMPLOYERs PT representatives and PMC
representatives.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 4 OF 20
EXHIBIT 1-1 PAGE 2 of 2
DATE: JULY 10, 2009
1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
CONTRACTORs Authorized Representatives
(Name of CONTRACTORs Project Manager) (Street Address) (Mail Address) (Telephone) (Cell Phone) (Fax) (Email Address)
(Name of CONTRACTORs Construction Manager)
(Street Address) (Mail Address) (Telephone) (Cell Phone) (Fax) (Email Address)
Other:Additional names, addresses, functions, and organizations will be provided at the Agreement Signature.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 5 OF 20
EXHIBIT 1-2 PAGE 1 of 2
DATE: JULY 10, 2009 1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
EXHIBIT 1-2
EMPLOYER-ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
Requirements as to Originator, Number of Copies, etc. to be established.2
A. General
B. Contractual
C. Job Specification-Initial
D. Job Specification-Revisions
E. Change Proposal Requests
F. Change Authorizations
G. Cost Estimates
H. Cost Reports
I. Procurement
Vendor/Subcontractor Acceptability
Purchasing
Expediting
Subcontracting
Traffic
Spare Parts
J. Progress Reports
2 EMPLOYER shall develop this item prior to Agreement Signature.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 6 OF 20
EXHIBIT 1-2 PAGE 2 of 2
DATE: JULY 10, 2009 1. CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
K. Quality Management
Home Office (NPTA)
Shop Inspection
Field (Site Inspection)
L. Mechanical Completion and Turnover
M. Start-Up
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 7 OF 20
EXHIBIT 1-3 PAGE 1 of 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
A. General
1. Contractual
2. Contractual Correspondence
3. Job Procedures
4. Contractor Invoices
5. Code of Accounts
6. Insurance
7. Conference Notes/Minutes of Meeting (General)
8. Follow Up Notes
B. Supervised Contracts
1. Correspondence
2. Invoices
3. Conference Notes/Minutes of Meeting
C. Project Control
1. Monthly Progress Report
2. Project Schedules
3. Progress Curves
4. Staffing and Labor Profiles/Productivity
5. Earned Value (EV) Weekly Updates
6. Shutdown Planning Conference Notes
7. Time Management Effort Appraisals
8. Monthly Cost Reports (SPCL)
9. Cost Estimates
10. Control Estimate/Control Budget
11. Cost Forecasts
12. Cost Control Conference Notes
13. Change Proposals
14. Change Orders
15. Field Change Orders
16. Change Order Summary
17. Bulk Material Summaries
18. Material Requisition Status (MRS) Report
19. Purchase Order Report (POR)
20. Material/Equipment Status and Expediting Report
21. Master Subcontracting Plan
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 8 OF 20
EXHIBIT 1-3 PAGE 2 of 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
22. Specification Index
23. Drawing Index
24. Vendor Print Log
25. Spare Parts Control Log
26. Overall Construction Plan
D. Procurement
1. Vendor/Subcontractor Correspondence
2. Vendor/Subcontractor Conference and Minutes of Meeting Notes
3. Vendor/Subcontractor Lists
4. Material Requisition (MRs)
5. Inquiry Documents/Specifications
6. Inquiry Release
7. Bids
8. Bid Tabulations/Recommendations
9. Purchase Orders/Attachments
10. Purchase Orders/Attachments (Field)
11. Expediting Reports
12. Project Subcontracting Specifications
13. Subcontract Inquiry Documents
14. Subcontract Inquiry Release
15. Subcontract Bids/Fair Price Estimates
16. Subcontract Bid Tabulations/ Recommendation
17. Subcontracts
18. Subcontracts (Field)
19. Subcontract Log
20. Subcontract Status (Pre-Award)
21. Subcontract Schedule (Pre- Award)
22. Subcontract Invoice/Payment Summaries
23. Recommended Spare Parts Summaries
E. Traffic
1. Freight Forwarding Agent Correspondence
2. Customs Agent Correspondence
3. Conference Notes/Minutes of Meetings
4. Pro Forma Invoice
5. Vendor's Commercial Invoice and Certificate of Origin
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 9 OF 20
EXHIBIT 1-3 PAGE 3 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
6. Vendor's Packing List
7. Export Declaration
8. Consular Certification
9. Ocean Bill of Lading
10. Ship's or Plane's Manifest
11. Stowage Plan
12. Air Waybill
13. Insurance Declaration
14. Notice of Claim
15. Overage, Shortage or Damage (OSD) Report
16. Container Content List
17. Master Voyage Summary Report
18. Weekly Shipping Schedule
19. Various Communications
F. Quality Management
1. Engineering Technical Audits
2. Shop Inspection Reports and Notices, including Non-Conformance Reports and Corrective Action Reports
3. Field Reports, including Non-Conformance Reports and Corrective Action Reports
G. Project Data
1. Project Record Books
2. Equipment Reference File
3. Operating Instructions
H. Contractor Drawings
1. General
a. Flow Diagrams
b. P&ID's
c. Maps, Plot Plans, and arrangements
d. Line Classification Sheets
e. Line or Pump Calculation Sheets
2. Mechanical Equipment (Ref. Exit 5-1 for detailed itemization)
a. Atmospheric Tankage - Appurtenances List
b. Blowers and Fans - Data Sheets
c. Compressors - Data Sheets
d. Forming, Packaging, and Proportioning Equipment - Data Sheets
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 10 OF 20
EXHIBIT 1-3 PAGE 4 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
e. Heaters and Stacks - Data Sheets
f. Heat Exchange Equipment - Data
g. Marine Technical Equipment - Data Sheets
h. Mechanical Drivers - Data Sheets
i. Mechanical Handling Equipment - Data Sheets and Conveyor Drawings
j. Packaged Process Equipment - All Drawings and Data Sheets
k. Pressure Vessels - All Drawings/Tray Data Sheets
l. Contractor Drawings
m. Pumps - Data Sheets
n. Separating and Mixing Equipment - Data Sheets
o. Special Plants - All Drawings and Data Sheets
p. Waste Treatment Equipment - Data Sheets
q. Water Treatment Equipment - Data Sheets
r. Vacuum Equipment - Data Sheets
3. Electrical Equipment/Materials
a. One-Line Diagrams and Area Classification
b. Grounding
c. Power and Lighting
d. Electronic Instrument Control Loops and Instrument and Control Circuits
e. Data Sheets (Ref. Exhibit 5-1 for detailed itemization)
4. Instrumentation Equipment/ Materials (including DCS)
a. Control Panels
b. Instrument Location Plans
c. Installation Details
d. Data Sheets (Ref. Exhibit 5-1 for detailed itemization)
e. Installation Distribution
5. Insulation and Lining Materials
a. Thermal Insulation Distribution and Details
b. Fireproofing Distribution and Details
6. Pipe and Piping Materials
a. Drawings/Model Cuts
b. Isometrics
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 11 OF 20
EXHIBIT 1-3 PAGE 5 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
c. Material Summary
d. Pipe Support Details
e. Pipe Support Materials
7. Painting
a. Paint Distribution
8. Buildings (Excluding Foundations)
a. Architectural Drawings
b. Architectural Drawing Details
c. Plumbing, Heating and Ventilating
9. Furniture Distribution
a. Structures (All Excluding Buildings)
b. Structures, Platforms
c. Steel Details, and Material Summary
d. Pipeway and Instrument Supports
10. Foundations
a. Piling and Foundations
b. Building Foundations
11. Site Development
a. Paving, Pathways, Roads, etc.
b. Underground Service Piping
I. Contractor Specifications
1. Basic Design Specifications
2. Construction Specifications
3. General Engineering Specifications
a. Atmospheric Tankage
b. Blowers, Fans, and Compressors
c. Forming, Packaging, and Proportioning Equipment
d. Heaters and Stacks
e. Heat Exchange Equipment
f. Marine Technical Equipment
g. Mechanical Drivers
h. Mechanical Handling Equipment
i. Packaged Process Equipment
j. Pressure Vessels
k. Pumps
l. Separate and Mixing Equipment
m. Special Plants
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
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EXHIBIT 1-3 PAGE 6 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
n. Waste Treatment Equipment
o. Vacuum Equipment
p. Electrical Equipment/Materials
q. Instrumentation Equipment/ Materials
r. Thermal Insulation and fireproofing Materials
s. Pipe and Piping Materials
t. Painting
u. Buildings (Excluding Foundations)
v. Structures and Foundations
w. Site Development
x. Welding and Thermal Processing
y. Catalysts, Chemicals, etc.
J. Vendor Data
1. Atmospheric Tankage
a. Dimensions Drawing with Foundation Data
b. Welding Procedures
c. Material Specifications
d. Drawing Index and Distribution
e. Erection/Placement Drawings
f. Shop Details
g. Field Erected Details
2. Blowers, Fans and Compressors
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Completed Data Sheet
d. Welding Procedures
e. Material Specifications
f. Drawing Index and Distribution
g. Calculations - Mechanical
h. Efficiency Data/Curves
i. Lubricant Data Sheet
j. Allowable Nozzle Effort Data
k. Wiring Control Data
l. Electrical Terminal Design
m. Arrangement and Connections
n. Piping Layout
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
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EXHIBIT 1-3 PAGE 7 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
o. Dimensions Drawing
p. Lube and Seal Oil Flow Diagram
q. Seal Assembly
r. Seal Cross Section
s. Code Certification Documentation
t. Priced Recommended Spare Parts List (PRSPL)
u. Operating and Maintenance Instructions
v. Composite Instruction Manual
w. Shop Details
3. Forming, Packaging and Proportioning Equipment
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Wiring and Control Data
d. Erection Drawings
e. Operating and Maintenance Instructions
f. Shop Details
g. Drawing Index and Distribution
h. Priced Recommended Spare Parts List (PRSPL)
4. Heaters and Stacks
a. Dimensions Drawing with Foundation Data
b. Cross Sections with Parts List
c. Completed Data Sheet
d. Welding Procedures
e. Material Specifications
f. Drawing Index and Distribution
g. Calculations - Mechanical
h. Efficiency Data/Curves
i. Allowable Nozzle Effort Data
j. Wiring and Control Diagram
k. Erection/Placement Drawings
l. Arrangement Drawings
m. Piping and Instrumentation
n. Burner Assembly
o. Pilot or Ignition Systems
p. Soot Blowers
q. Dry Out Procedure
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 14 OF 20
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DATE: JULY 10, 2009
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CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
r. Code Certification Documentation
s. Operating and Maintenance
t. Shop Details
u. Priced Recommended Spare Parts List (PRSPL)
5. Heat Exchange Equipment
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Completed Data Sheets
d. Wiring Procedures
e. Material Specifications
f. Efficiency Data/Curves
g. Allowable Nozzle Effort Data
h. Erection/Placement Drawings
i. Piping and Instrumentation Diagram
j. Vibration Switch
k. Code Certification Documentation
l. Priced Recommended Spare Parts List (PRSPL)
m. Operating and Maintenance Instructions
n. Shop Details
o. Drawing Index and Details
6. Marine Technical Equipment (Same as Forming, Packaging, and Proportioning Equipment, as applicable)
7. Mechanical Drivers (Same as Blowers, Fans, and Compressors, as applicable)
8. Mechanical Handling Equipment (Same as Forming, Packaging, and Proportioning Equipment, as applicable)
9. Packaged Process Equipment
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Operating and Maintenance Instructions with PRSPL
d. Drawing Index and Schedule
10. Pressure Vessels
a. Vessel Under Pressure Dimensions with Foundation Data
b. Vessel Welding Procedures
c. Vessel Calculations Mechanical
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 15 OF 20
EXHIBIT 1-3 PAGE 9 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
d. Vessel General Assembly and Drawing Index
e. Vessel Code Certification and Supporting Documentation
f. Vessel Shop Details
g. Vessel Mechanical Efforts Program and Data
h. Tray/Internals Completed Data Sheets
i. Tray/Internals Calculations
j. Tray/Internals Overall Arrangement
k. Tray/Internals Arrangement Diagrams and Instructions
l. Tray/Internals Shipping and Material List
m. Tray/Internals Shop Details
n. Tray/Internals Drawing Index and Distribution
11. Pumps
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Completed Data Sheet
d. Wiring Procedures
e. Material Specifications
f. Drawing Index and Distribution
g. Efficiency Data/Curves
h. Lubricant Data Sheet
i. Allowable Nozzle Efforts Data
j. Arrangement/Connection Drawings
k. Lube and Control Oil Diagram
l. Gland Sealing Diagram
m. Code Certification and Supporting Documentation
n. Priced Recommended Spare Parts List (PRSPL)
o. Operating and Maintenance Instructions
p. Shop Details
12. Separating and Mixing Equipment (Same as Forming, Packaging, and Proportioning Equipment, as applicable)
13. Special Plants (Same as Packaged Process Equip, supplemented by applicable component requirements)
14. Waste Treatment Equipment (Same as Special Plants)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 16 OF 20
EXHIBIT 1-3 PAGE 10 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
15. Water Treatment Equipment (Same as Special Plants)
16. Vacuum Equipment
a. Dimensions Drawings
b. Cross Section with Parts List
c. Completed Data Sheets
d. Material Specification
e. Efficiency Data/Curves
f. Arrangement Drawings
g. Assembly Diagram
h. Priced Recommended Spare Parts List (PRSPL)
i. Operating and Maintenance Instructions
j. Drawing Index and Distribution
17. Electrical Equipment/Materials
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Completed Data Sheet
d. Drawing Index and Distribution
e. Wiring Diagrams
f. Priced Recommended Spare Parts List (PRSPL)
g. Operating and Maintenance Instructions
h. Shop Details/Pipe Supports
18. Instrumentation Equipment/ Materials (including DCS)
a. Dimensions Drawings with Cutouts and Supports
b. Cross Section with Parts List
c. Completed Data Sheets
d. Drawing Index and Distribution
e. Calculations and Calibration Curves
f. Wiring and Control Diagram
g. Electrical Terminal Designation
h. Panel Layout with Major Dimensions
i. Back Panel Layouts
j. Typical Panel Cross Section
k. Pneumatic Diagrams
l. Priced Recommended Spare Parts List (PRSPL)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 17 OF 20
EXHIBIT 1-3 PAGE 11 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
m. Composite Instruction Manuals
n. Photo Negatives and Prints
o. Color Samples
p. Shop Details
q. Drawing Index and Distribution
19. Pipe and Piping Materials
a. Dimension Drawing with Foundation Data
b. Cross-Sections with Parts List
c. Completed Data Sheets
d. Welding Procedures
e. Material Specifications
f. Drawing Index and Distribution
g. Code Certification and Supporting Documentation
h. Priced Recommended Spare Parts List (PRSPL)
i. Operating and Maintenance Instructions
j. Shop Details/Pipe Supports
20. Buildings (Ex Foundations)
a. Dimensions Drawing with Foundation Data
b. Cross Section with Parts List
c. Calculations - Structural
d. Efficiency Data/Curves
e. Wiring and Control Diagram
f. Erection Drawings
g. Piping and Instrumentation Diagram
h. Vendor Field Fabricated Items
i. Shop Details
j. Drawing Index and Distribution
21. Structures and Foundations
a. Dimensions Drawing with Foundation Data
b. Drawing Index and Distribution
c. Structural Calculations
d. Structural Erection Drawings
e. Structural Shop Details/Pipe Supports
f. Structural Painting Specification
g. Foundation Erection/Placement Drawings
h. Foundation Reinforcing Cutting/Bending List
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 18 OF 20
EXHIBIT 1-3 PAGE 12 OF 12
DATE: JULY 10, 2009
CORRESPONDENCEEXHIBIT 1-3
CONTRACTOR ORIGINATED CORRESPONDENCEDOCUMENT DISTRIBUTION
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
i. Drawing Index and Distribution
22. Site Development
a. Property Survey
b. Topographic Survey
c. Hydrographic Survey
d. Fencing Details
e. Field Compaction Report
f. Soils Report
g. Shop Details
h. Drawing Index and Distribution
K. Field Construction
1. Superintendent's Daily Report with Force and Construction Equipment Lists
2. Weekly Worksheets
3. Field Action Memoranda
4. Material/Equipment Receiving Reports
5. Accident Reports
6. Site Safety/Security, and Sanitation Conference Notes
L. Mechanical Completion and Facilities Turnover
1. Schematic Testing Diagrams
2. Requests for Inspection
3. Punch Lists
4. Notices of Mechanical Completion
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 19 OF 20
EXHIBIT 1-4 PAGE 1 of 2
DATE: JULY 10, 2009
CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
EXHIBIT 1-4
DOCUMENT DISTRIBUTION MATRIX
EMPLOYER-ORIGINATED CORRESPONDENCE
(To be provided)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 20 OF 20
EXHIBIT 1-4 PAGE 2 of 2
DATE: JULY 10, 2009
CORRESPONDENCE
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
EXHIBIT 1-4
DOCUMENT DISTRIBUTION MATRIX
EMPLOYER-ORIGINATED CORRESPONDENCE
(To be provided)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 1 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
I. OBJECTIVE
This Instruction addresses requirements of Contractor's time management functions.
II. GENERAL REQUIREMENTS
A. Philosophy
Contractor shall employ time management principles to effectively direct and control the TRM Project in its entirety. Accordingly, CONTRACTOR's planning and scheduling efforts shall critically address and monitor those activities and components whose potentially deficient performance could adversely impact overall performance. CONTRACTOR shall limit itself to execution of contractual work items specifically to those which have been previously identified, planned, scheduled, and approved.
B. Responsibility
Responsibility for time management optimization rests with Contractor and includes not only the activities of CONTRACTOR, but those of project participants (subcontractors, Supervised Contractors, vendors, etc.) under Contractor control. Additionally, CONTRACTOR shall organize related EMPLOYER activities and requirements. In satisfactorily discharging this responsibility, CONTRACTOR shall:
1. Define the scope and depth of planning/scheduling efforts.
2. Establish the plan and schedule format consistent with time management optimization.
3. Provide overall coordination.
4. Maintain all plans and schedules.
5. Perform analyses and develop recommendations.
6. Undertake requisite reporting activities.
III. SPECIFIC REQUIREMENTS
A. Time Management Procedures
CONTRACTOR's fundamental procedural document shall be the detailed work schedule submitted with its proposal and upgraded within sixty (60) days thereafter. CONTRACTOR shall issue this document as part of its Job Procedures, maintain it accordingly, and update it to define the conduct of its Time Management function.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 2 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
B. Techniques and Systems
Contractor shall utilize techniques of logic network diagramming within approved systems capable of utilizing such techniques (Primavera, MS Project, PERT Master, etc.) The specific approach - CPM, PERT, Precedence, etc. -- may be selected by Contractor subject to EMPLOYER approval. However, level of detail and description must be consistent with all work breakdown structuring and earned value reporting requirements (See Project Instruction N 15).
CONTRACTOR shall translate requirements and conditions of network diagrams into more manageable control mechanisms for its home office and field construction activities, e.g., daily or weekly worksheets and/or look-ahead schedules. Said mechanisms shall develop finite engineering (EWP) and construction (CWP) work packages and establish interim milestone dates for each major activity. Contractor shall review and amend these mechanisms weekly to ensure they accurately reflect material, personnel and equipment requirements and status. Schedule reports shall be provided to EMPLOYER Project Manager (or their designee) in hard copy and electronic (native file) formats.
C. Schedule Designations and Specifications
The time management function includes three (3) primary schedule designations relating to three (3) distinct phases of control schedule evolution/development, and three (3) secondary designations to denote significant transition points. These are identified as follows:
SD-1 Initial Project Management Plan (Level 1) SD-2 Design Specification Plan (Level 2) SD-3 Definitive Plan (Level 3) SD-3FC Field Construction Plan SD-3MC Mechanical Completion Plan SD-3S Start-Up Plan
With each successive designation (primary or secondary) Contractor shall amplify level of detail and functional scope of the project schedule's supporting logic network diagrams to reflect available project definition and developing execution strategy. Timing and specifications for these designations are presented in Exhibits 2-1, 2-2, and 2-3. Said criteria however, represent minimum requirements of Contractor's effort. Accordingly, CONTRACTOR shall expand them as EMPLOYERs Project Manager deems necessary to achieve the most effective coordination, surveillance, and control program to specific project circumstances. (Schedule requirements for shutdown or revamp situations are addressed in Section III.I of this Instruction.)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 3 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
D. Schedule Development
CONTRACTOR shall produce progressively-developed project schedules at the appropriate stages of project evolution in accordance with the General Provisions; the criteria of Exhibits 2-1, 2-2, and 2-3; and the following requirements:
1. Should CONTRACTOR determine that the need exists to rework a schedule previously approved by EMPLOYER and issued by CONTRACTOR, Contractor shall not undertake said rework without EMPLOYER's prior approval.
2. CONTRACTOR shall submit all schedules to EMPLOYERs Project Manager for review and approval and shall not release any schedule without EMPLOYER's prior approval.
E. Control and Maintenance
Contractor shall update the project schedule each month, or more often if required by EMPLOYERs Project Manager. Schedule analysis and reconciliation shall be included in Monthly Progress Reports (See Project Instruction N 14) and shall highlight:
1. Summary of previous report and corrective/preventive measures taken,
2. Significant status changes during the present reporting period,
3. Measures proposed or initiated by Contractor for schedule adherence or time deficit recovery,
4. Summary projections of activities commencing and completing during the next reporting period,
5. Identification (by name) of those individuals charged with the responsibility for resolving present delays and potential problems, and timing for implementation of said actions.
F. Progress Reporting
In addition to monthly schedule status reports in Section III.E of this instruction, Contractor shall be required to provide EMPLOYERs Project Manager with the following:
1. Individual progress and performance indices curves for engineering, procurement, and field construction for the entire project. The curves shall present projected and actual progress and be supported by similar curves for engineering discipline, each field construction direct craft, and each
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 4 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
subcontractor by unit or work area. (Development and maintenance of said curves shall be in strict accordance with work breakdown structure and earned value requirements of Project Instruction N 15 Measurement of Percentage Completion).
2. Staffing profiles and Labor burden to support monthly progress projections including "recovery" situations. Representation of staffing requirements shall be consistent with curve development (i.e., by engineering, procurement, and field construction) as above.
3. Evidence that all available steps have been taken to maintain or better the Target Completion Date. This shall be repeated whenever any events that may jeopardize the schedule have taken place. CONTRACTOR shall take timely action to maintain predicted project schedule dates or to minimize delay including revision of work priorities, planned overtime, payment of premiums, and other means.
G. Performance Monitoring/Data Access
EMPLOYERs Project Manager will require access to Contractor's field productivity data in order to be able to effectively monitor the execution of all phases of the project. These data include such information as budget hour and physical quantity estimates and adjustments, actual hours or work units expended and physical quantities installed, details of percent physical completion, estimated and actual unit productivitys for each physical parameter used, productivity graphs and trend curves, and a complete explanation by CONTRACTOR of how CONTRACTOR compiles and uses the productivity data on a timely basis. CONTRACTOR will give EMPLOYERs Project Manager access to all such data.
H. Time Management Effort Appraisal
CONTRACTOR shall conduct comprehensive appraisals of its time management effort via formal monthly and quarterly reviews of project status. The reviews shall be chaired by the Contractor's representative charged with the time management responsibilities for the project. In preparing for each review, this representative shall undertake a complete assessment of the schedule. This assessment will note problems (and their resolution), changes, accomplishments, strategy modification, etc. during the period since the last update. Following are typical relevant topics or areas to be addressed:
1. CONTRACTOR/ EMPLOYER/third party interfaces and relationships,
2. Input data relevance and validity,
3. Timeliness and quality of output data,
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 5 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
4. Information gathering and dissemination,
5. Contingency planning and required development time for same,
6. Time deficit recovery planning and reaction time,
7. Trending and analysis,
8. Project status updating,
9. Schedule risk analysis program.
I. Shutdown Scheduling (if applicable)
1. CONTRACTOR shall appoint a Shutdown Coordinator whose responsibilities are to include all phases of shutdown program as discussed herein. He/she is to serve as direct point of contact with designated personnel regarding all considerations pertaining to shutdown planning and execution. No other work assigned to Shutdown Coordinator shall take priority over shutdown-related work.
2. CONTRACTOR shall prepare a detailed plan and schedule for each planned shutdown. Said plan and schedule shall be prepared in close cooperation with EMPLOYER's designated personnel, and shall be completed and submitted for EMPLOYER's review and approval three months in advance of the planned shutdown date. EMPLOYER will specify planned shutdown dates and shutdown durations for scheduling purposes. Scope of shutdown plan and schedule shall cover all shutdown work on the facility involved whether such work is anticipated to be performed by CONTRACTOR, by EMPLOYER, or by others. Schedule shall be in a format (arrow diagrams, bar charts, combo, etc.) agreed by EMPLOYER and shall show downtime work program by shifts and in hourly increments. Level of detail of work breakdown shall be consistent with the foregoing increments. Shutdown plan shall include the following:
a. Itemization and timing of all pre-shutdown work required to achieve minimum downtime
b. Itemization of timing of all work required to be accomplished during downtime
c. Division of responsibilities
d. Resource and other requirements for each item plus any additional "common" resources or other requirements. Resource and other requirements would include:
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 6 OF 12
DATE: JULY 10, 2009
2. TIME MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
Construction drawings
Construction tools and equipment
Construction supplies
Labor (by craft) Materials
Supervision
Temporary facilities
Communications
Etc.
e. Time line summary of all resource and other requirements
f. Identification of schedule risk areas together with an appropriate contingencies plan to minimize adverse impact on downtime.
3. Shutdown reporting, beyond what is required elsewhere in this instruction shall begin as soon as EMPLOYER has agreed with Contractor's detailed shutdown plan and schedule. Contractor shall continuously maintain current master copy mark-up of shutdown plan and schedule. Reporting shall be primarily accomplished by weekly or daily shutdown planning meetings at Site, attended by designated EMPLOYER and CONTRACTOR personnel and others if required.
a. Prior to shutdown, weekly planning meetings will be held. Contractor will present the master copy mark-up for review and will identify any item whose status is unsatisfactory. At the conclusion of the meeting, Contractor will immediately issue an "Exceptions List" specifying corrective action responsible person, and required timing.
b. During shutdown, daily planning meeting will be held to review CONTRACTOR's master schedule mark-up, identify problem areas, and agree on following day's work program (including corrective action). At the conclusion of meeting, CONTRACTOR will immediately prepare and issue detailed work program for next day reflecting any agreed on correction action.
c. CONTRACTOR will immediately advise EMPLOYER of any situation that might prevent shutdown objectives from being met.
PETR
OPER
U S.
A.
VOLU
ME 2
TALA
RA R
EFIN
ERY
MODE
RNIZ
ATIO
N PR
OJEC
T PR
OJEC
T IN
STRU
CTIO
NS T
O PA
RT C
FE
ED-E
PC C
ONTR
ACTO
R IF
P SE
RVIC
ES A
ND D
ELIV
ERAB
LES
- FEE
D &
EPC
MAST
ER JO
B SP
ECIF
ICAT
IONS
PA
GE 7
OF 12
EX
HIBI
T 2-
1 PA
GE 1
OF 2
DATE
: JUL
Y 10
, 200
9
EXH
IBIT
2-1
PR
OJE
CT S
CHED
ULE
DESI
GNA
TIO
NS
Inte
rnatio
nal B
iddi
ng P
roce
ss N
PCI
-00
2-20
08-O
FP/P
ETRO
PER
U
DES
IGNA
TIO
N D
ESCR
IPTI
ON
RES
PON
BILI
TY/T
IMIN
G
PRES
ENTA
TIO
N/FU
NCTI
ON
SD-1
Initi
al P
rojec
t M
anag
ement
Plan
For
RC
Projec
ts, to
be
pr
epa
red
by
Cont
ract
or
with
in ti
me pe
riod
spec
ified
in M
JS.
Pr
ese
nte
d in
logi
c netw
ork
fo
rmat o
n tim
e sc
ale
.
Se
rves
as
initi
al o
verv
iew
to
id
entif
y: Pr
ojec
t exe
cutio
n im
plica
tions
in
clu
de
prim
ary
in
terd
epe
nde
nci
es and
inte
rna
l/ext
ern
al r
est
rain
ts. Ac
tiviti
es
of a
ll pr
ojec
t par
ticip
ants
Co
mpa
ny,
Co
ntra
ctor,
G
ove
rnm
enta
l Aut
horit
ies,
an
d oth
ers
and
requ
ired
timin
g of
th
ese a
ctiv
ities.
SD-2
Desi
gn
Spec
ificat
ion
Plan
To be
pre
pare
d by
Co
ntra
ctor
for
each
Ba
sic
Des
ign
Pack
age
(for
whi
ch
deta
iled
engi
ne
erin
g is
less
th
an 15
%
com
plet
e) co
nsi
sten
t with
SD
-1
logi
c and
dura
tions
. (S
ee
Ex
hibi
t 2-2
for
timin
g.)
D
evelo
ped
util
izin
g an
app
rove
d lo
gic
netw
ork
di
agra
mm
ing
tech
niqu
e fo
r m
ain
tena
nce b
y ED
P m
eth
ods.
Pr
ovi
des
maxim
um
vis
ibilit
y and
contro
l on
al i
tem
-by
-ite
m ba
sis fo
r each
Ba
sic
Des
ign
Speci
ficatio
n.
SD-3
D
efin
itive
Pl
an
To be
pre
pare
d by
Co
ntra
ctor
base
d on S
D-2
deve
lopm
ent.
Co
nsis
tent w
ith S
D-2
deve
lopm
ent,
util
izes
an a
ppro
ved
logi
c n
etw
ork
diag
ram
min
g te
chni
que
(60 da
y an
d tw
o w
eek
look
-ahe
ads
to be
issu
ed
for
plan
nin
g/ c
oord
inatio
n of w
ork
) for
main
tena
nce b
y ED
P m
eth
ods.
Co
ntin
ues
SD-2
s vi
sibi
lity/
contro
l phi
loso
phy
and,
in a
dditio
n, em
phas
izes
the
deta
iled
engi
ne
erin
g an
d pr
ocu
rem
ent a
reas.
PETR
OPER
U S.
A.
VOLU
ME 2
TALA
RA R
EFIN
ERY
MODE
RNIZ
ATIO
N PR
OJEC
T PR
OJEC
T IN
STRU
CTIO
NS T
O PA
RT C
FE
ED-E
PC C
ONTR
ACTO
R IF
P SE
RVIC
ES A
ND D
ELIV
ERAB
LES
- FEE
D &
EPC
MAST
ER JO
B SP
ECIF
ICAT
IONS
PA
GE 8
OF 12
EX
HIBI
T 2-
1 PA
GE 2
OF 2
DATE
: JUL
Y 10
, 200
9
EXH
IBIT
2-1
PR
OJE
CT S
CHED
ULE
DESI
GNA
TIO
NS
Inte
rnatio
nal B
iddi
ng P
roce
ss N
PCI
-00
2-20
08-O
FP/P
ETRO
PER
U
SD-3F
C Fi
eld
Cons
truct
ion
To be
pre
pare
d by
Co
ntra
ctor
prio
r to
30%
com
plet
ion p
oin
t of d
etai
led
engi
neerin
g an
d/or
effe
ctive
field
const
ruct
ion
initi
atio
n.
Co
nsis
tent w
ith S
D-2
deve
lopm
ent,
util
izes
an a
ppro
ved
logi
c n
etw
ork
diag
ram
min
g te
chni
que
for
main
tena
nce b
y ED
P m
eth
ods.
Co
ntin
ues
SD-2
s vi
sibi
lity/
contro
l phi
loso
phy.
In
a
dditi
on,
em
phas
ized
field
co
nst
ruct
ion
sequ
ence
stre
ssin
g th
e fi
rst 5
0% a
ctiv
itie
s.
SD-3
MC
Mec
hani
cal
Com
pletio
n
Plan
To be
pre
pare
d by
Co
ntra
ctor
prio
r to
85%
com
plet
ion p
oin
t of d
etai
led
engi
neerin
g an
d/or
app
roxi
mate
ly 50
%
com
plet
ion p
oint o
f fie
ld c
onst
ruct
ion
Co
nsis
tent w
ith S
D-2
deve
lopm
ent,
util
izes
an a
ppro
ved
logi
c n
etw
ork
diag
ram
min
g te
chni
que
for
main
tena
nce b
y ED
P m
eth
ods.
Co
ntin
ue SD
-2
s vis
ibilit
y/co
ntro
l phi
loso
phy.
Al
so be
gins
tra
nsi
tion to
sta
rt-up
emph
asis
by
hi
ghlig
htin
g la
st 50
% fi
eld
act
iviti
es
and
deve
lopi
ng
conce
ntra
tion
upo
n p
roce
ss sy
stem
s
SD-3
S St
art-u
p Pl
an
To be
pre
pare
d joi
ntly
by
EMPL
OYE
R a
nd
CON
TRAC
TOR
prio
r to
75%
com
plet
ion po
int o
f fie
ld
const
ruct
ion.
D
urin
g Pr
e-
com
mis
sionin
g/ C
omm
issi
onin
g,
CON
TRAC
TOR
sh
all p
artic
ipat
e in
start-
up
meetin
gs.
Co
nsis
tent w
ith S
D-2
deve
lopm
ent,
util
izes
an a
ppro
ved
logi
c n
etw
ork
diag
ram
min
g te
chni
que
for
main
tena
nce b
y ED
P m
eth
ods.
Co
ntin
ues
SD-2
s vi
sibi
lity/
contro
l phi
loso
phy
and
fully
co
mpl
etes
tra
nsi
tion
to s
tart-
up
stage
beg
un w
ith SD
PETR
OPER
U S.
A.
VOLU
ME 2
TALA
RA R
EFIN
ERY
MODE
RNIZ
ATIO
N PR
OJEC
T PR
OJEC
T IN
STRU
CTIO
NS T
O PA
RT C
FE
ED-E
PC C
ONTR
ACTO
R IF
P SE
RVIC
ES A
ND D
ELIV
ERAB
LES
- FEE
D &
EPC
MAST
ER JO
B SP
ECIF
ICAT
IONS
PA
GE 9
OF 12
EX
HIBI
T 2-
2 PA
GE 1
OF 2
DATE
: JUL
Y 10
, 200
9
TIM
E M
ANAG
EMEN
T
EXH
IBIT
2-2
SP
ECIF
ICAT
ION
S FO
R A
CTIV
ITY
LEVE
LSPR
OJE
CT S
CHED
ULE
ACTI
VITY
TO
TAL
AND
FUNC
TIO
NAL
DIST
RIBU
TIO
N
Inte
rnatio
nal B
iddi
ng P
roce
ss N
PCI
-00
2-20
08-O
FP/P
ETRO
PER
U
FUNC
TIO
NAL
ACTI
VITY
D
ISTR
IBUT
ION
(AS
A PE
RCE
NTA
GE
OF
ACTI
VITY
TO
TAL)
DES
IGNA
TIO
N (D
escr
iptio
n)
ACTI
VITY
TOTA
L
(Cum
ulativ
e) PR
OJE
CT TI
MIN
GD
ETAI
LED
ENG
INEE
RIN
G
PRO
CUR
EMEN
T FI
ELD
CO
NSTR
UCTI
ON
STAR
T-UP
SD-1
(Initi
al P
rojec
t M
anag
ement P
lan)
250
RC:
With
in A
gre
em
ent-
spec
ified
time pe
riod
40
35
20
5
SD-2
(Desi
gn
Spec
ificat
ion P
lan)
1200
Pr
ior t
o 15
% co
mpl
etio
n
poin
t of d
etaile
d en
gineerin
g 50
25
20
5
SD-3
(Defin
itive
Pla
n)
1200
Pr
ior t
o 15
% co
mpl
etio
n
poin
t of d
etaile
d en
gineerin
g 50
25
20
5
SD-3F
C
(Fie
ld Co
nstru
ctio
n
Plan
) 24
00
Prio
r to 30
% co
mpl
etio
n
poin
t of d
etaile
d en
gineerin
g 30
25
40
5
PETR
OPER
U S.
A.
VOLU
ME 2
TALA
RA R
EFIN
ERY
MODE
RNIZ
ATIO
N PR
OJEC
T PR
OJEC
T IN
STRU
CTIO
NS T
O PA
RT C
FE
ED-E
PC C
ONTR
ACTO
R IF
P SE
RVIC
ES A
ND D
ELIV
ERAB
LES
- FEE
D &
EPC
MAST
ER JO
B SP
ECIF
ICAT
IONS
PA
GE 10
OF
12
EXHI
BIT
2-2
PAGE
2 OF
2 DA
TE: J
ULY
10, 2
009
TIM
E M
ANAG
EMEN
T
EXH
IBIT
2-2
SP
ECIF
ICAT
ION
S FO
R A
CTIV
ITY
LEVE
LSPR
OJE
CT S
CHED
ULE
ACTI
VITY
TO
TAL
AND
FUNC
TIO
NAL
DIST
RIBU
TIO
N
Inte
rnatio
nal B
iddi
ng P
roce
ss N
PCI
-00
2-20
08-O
FP/P
ETRO
PER
U
SD-3M
C
(Mech
anic
al
Com
plet
ion Pl
an)
2800
Prio
r to 85
% co
mpl
etio
n
poin
t of d
etaile
d en
gineerin
g and/
or
app
roxi
mate
ly 50
%
com
plet
ion o
f fie
ld
Cons
truct
ion
20
20
53
7
SD-3S
(Sta
rt-Up
Pla
n)
3100
Pr
ior t
o 75
% co
mpl
etio
n
poin
t of d
etaile
d en
gineerin
g 18
18
50
14
NOTE
S:
1.
Ref
er to
Ex
hibi
t 2-3
fo
r Pr
ojec
t Sch
edul
e Ac
tivity
Sp
ecific
atio
ns.
2.
Activ
ity to
tals
exclu
de re
stra
ints
bet
ween w
ork
ite
ms.
(R
est
rain
t tot
als
shou
ld h
alf t
he act
ivity
to
tal).
3.
Activ
ity to
tals
and
funct
ional d
istrib
utio
n ca
rry
a +
10
% ra
nge
of a
ccept
abi
lity.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 11 OF 12
EXHIBIT 2-3 PAGE 1 OF 2
DATE: JULY 10, 2009
TIME MANAGEMENT
EXHIBIT 2-3 PROJECT SCHEDULE ACTIVITY SPECIFICATIONS
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
All SD-1 schedules shall satisfy the following criteria in order to comply with the requirements of Exhibit 2-2, "Specifications for Activity Levels":
1. The activities (and timing thereof) for each major participant of the project shall be identified and the interfaces/dependencies clearly described.
2. With respect to detailed engineering activities, approximately half of these shall highlight the interdisciplinary relationships and interfaces which exist.
3. All activities in both detailed engineering and procurement must comply with the work breakdown structure and the required sequence of field construction and startup.
4. For equipment and material deliveries of a critical or long lead nature, the associated detailed engineering and procurement activities (including execution strategy) shall be clearly defined
5. All critical path sequences and float calculations must be completely identified.
All SD-2, SD-3, SD-3FC, SD-3MC, SD-3S schedules shall satisfy the following criteria in order to comply with requirements of Exhibit 2-2, Specifications for Activity Levels:
1. Scope of activity coverage and distribution should be consistent with areas of risk exposure as identified.
2. All activities must possess the characteristics of being finite, definable and measurable (i.e., consistent with the work breakdown structure.) They must be appropriately resourced and leveled.
3. Coverage of critical and sub-critical (three months of critical path) activities shall be at least twice that provided for non-critical activities.
4. Where phased task completions are required, they must be properly identified.
5. The following specific requirements apply:
Detailed Engineering
- 85% of the activities shall be between 5 and 20 project time units in duration.
- 80% (approximate) of the activities shall be distributed consistent with the breakdown by engineering man-hours by discipline and subdiscipline.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 12 OF 12
EXHIBIT 2-3 PAGE 2 OF 2
DATE: JULY 10, 2009
TIME MANAGEMENT
EXHIBIT 2-3 PROJECT SCHEDULE ACTIVITY SPECIFICATIONS
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
Procurement
- Distribution of activities should be on the basis of 60% major equipment and 40% bulk materials.
- 85% of the activities shall be between 5 and 20 project time units in duration.
Field Construction
- 85% of the activities shall be between 5 and 20 project time units in duration.
- 85% of the activities shall be distributed consistently with the breakdown by field labor man-hours by construction craft and discipline.
Startup
- 80% of the activities for SD-3MC and SD-3S schedules should be between 1 and 5 project time units in duration.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 1 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
I. OBJECTIVE
This instruction covers Contractor's requirements for effective management of costs relating to the Agreement. Contractor's cost management activities are a significant part of a comprehensive, totally integrated project control program which Contractor must develop and implement for execution of the Work. Refer to Time Management (Project Instruction N 2) and Quality Management (Project Instruction N 4) for other significant components of the control program.
It should also be noted that EMPLOYER intends to convert the contractual arrangement from a Reimbursable Cost (RC) structure to a Lump Sum (LS) arrangements at some point (Conversion) following completion of the Scope Definition, but prior to the start of Construction activities. Once this Conversion from RC to LS has been effected, the requirements of this Instruction shall be superceded and the requirements of Project Instruction N 2 Time Management, Instruction N 8 Change Control, Instruction N 14 Monthly Progress Reporting and Instruction N 15 Measurement of Percentage Completion shall be the primary Project Controls requirements by which Contractor must abide.
II. GENERAL REQUIREMENTS
CONTRACTOR shall submit, at the Contract signature, for EMPLOYER review and comment the proposed organizational and procedural details defining its cost management program for the project. These details will be included in the Project Execution Plan and will be subject to modification as EMPLOYER's Project Manager deems necessary to satisfy in a deeper way:
Cost Control
Estimating
Non-Recoverable Costs
III. SPECIFIC REQUIREMENTS
A. Cost Control
In conjunction with requirements of Section III.C (Non-Recoverable Costs) of this instruction and Project Instruction N 8 (Change Control), CONTRACTOR shall conduct a cost control program throughout the life of the project to attain established financial goals per Section III.B (Estimating) of this instruction. Specific requirements of said program are presented in the following paragraphs.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 2 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
1. Procedures and Organization
Contractor shall submit, at the Agreement Signature, as in II above, the following information relevant to the Cost Management procedures and organization:
a. A work flow diagram describing structure and formal communication link between all cost management organizational elements (both project and corporate) from the Contractor's Project Manager to all subordinate work production units whose performance is involved in data collection, status evaluation, and forecasting process. Manual and electronic-generated forms and other documents which are to convey cost information (including performance data and corrective action) from one organizational unit to another and to and from external parties such as subcontractors and vendors shall be identified on appropriate flow paths of this diagram.
b. Contractor shall include a copy of each identified document along with information describing its purpose, intended application, responsibility for preparation, and frequency of issue. Instructions for each form shall also be included.
c. An organization chart identifying individuals responsible for each organizational unit of the cost management structure and a description of duties.
d. Description of surveillance/control procedures and the application limits to be employed in effectively executing the following cost management functions:
Estimating
Cost Analysis and Forecasting
Preventive and Corrective Action
Non-Recoverable Costs.
e. Description of the interaction and coordination between the cost management, project management, and time management functions.
2. Functions
Subsequent to EMPLOYERs review of CONTRACTOR's procedures and organization as above, Contractor shall execute the following cost management functions:
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 3 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
a. Estimating (Section III.B)
b. Non-Recoverable Costs (Section III.C)
c. Change Control (Project Instruction 8)
d. Cost Analysis and Forecasting
Contractor shall make daily cost analyses and summarize the results in its Monthly Cost Report. Contractor shall employ sampling techniques for said analysis to identify and correct at an early stage of project evolution unfavorable trends in such areas as:
- Home office hours/expenses
- Engineered equipment purchase order prices
- Bulk material quantities
- Field labor productivity
- Design basis changes
CONTRACTOR shall undertake forecasts weekly, bi-weekly, and monthly as project conditions dictate and EMPLOYER's Project Manager deems necessary for effective project control. CONTRACTOR shall include in its Monthly Cost Report (or more frequently as EMPLOYER's Project Manager determines) results of said forecasts, which results shall represent its best projection of cost to complete for the entire project, irrespective of the amounts included in the Control Budgets (FEED Services and Projected TIC).
e. Cost Reporting
Contractor shall prepare a Monthly Cost Report, which shall contain as a minimum the following components:
- Tabulation of Control Budget line items, authorized changes, and a summation of the two to form adjusted Control Budget
- Tabulation by Control Budget line item of actual, recorded expenditures as provided by Contractor's accounting group
- A similar tabulation of committed funds (e.g., purchase orders, purchase authorizations, etc.)
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 4 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
- Similar tabulation of pending changes
- Forecast of cost to complete for each line item
- Summation of each item's expenditures, commitments, pending changes, and forecasts to develop predicted final Contract Price
- Comparison of adjusted Control Budget and predicted final Contract Price for each line item, and an analysis of overruns/underruns with explanation for each.
To maintain consistency with Contractor responsibilities and forecasts, Control Budget scope shall be amended only by authorized changes.
f. Preventive/Corrective Action
Subject to prior agreement with EMPLOYER'S Project Manager as to frequency, Contractor's Project Manager shall hold regular cost control meetings with the project cost engineer and responsible supervisors to address the following:
- Review and analysis of the latest Monthly Cost Report in conjunction with input from Contractor's home office and field cost control functions
- Assessment of corrective efforts previously initiated to counter actual or potential overruns
- Identification of additional overruns or undesirable trends
- Initiation of new preventive and corrective measures
EMPLOYER's Project Manager and/or designated representatives shall participate in said meetings as EMPLOYER's Project Manager deems necessary.
In addition to surveillance effected at regular cost control meetings, Contractor shall continuously and accurately monitor and report all trends, initiating corrective/ preventive action as needed and optimizing costs in already acceptable performance areas.
B. Estimating
1. Estimate Designations
In addition to the Control Estimate (discussed in detail in III.B.3 below), Contractor shall prepare cost estimates at EMPLOYER's direction at any point
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 5 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
in the evolution of the project. CONTRACTOR shall submit all estimates to EMPLOYER's Project Manager for review and approval and shall not release any estimate without EMPLOYER's prior approval.
When approved by EMPLOYER, each successive estimate shall become Contractor's current baseline project cost parameter. Should CONTRACTOR determine that the need exists to rework an estimate previously approved by EMPLOYER and issued by CONTRACTOR, CONTRACTOR shall not undertake said rework without EMPLOYER's prior approval.
Contractor's estimate shall reflect at each successive evolution point:
Available project definition and cost data
Development execution strategy
An accuracy range consistent with the quality of these items and estimating technique employed
Estimates shall also be consistent with the particular schedule designations and levels of detail specified in Project Instruction N 2 as well as EMPLOYER quality objectives. They shall include a detailed reconciliation with each previous estimate.
Representative estimate designations with accuracy ranges, and corresponding schedule designations, follow:
EstimateDesignation (ED)
EstimateTitle
AccuracyRange
ScheduleDesignation (SD)
ED-000 Conceptual Undefined *
ED-00 Modular-Process 50% *
ED-0 Modular-Operating Unit Factors (Curve) 50% *
ED-1 Major Equipment (Factored) 15% SD-1
ED-2 ** Control 10% SD-2/SD-3
ED-3 Upgraded Control (Pre-Construction) 5% SD-3FC
(Upgraded) *Schedule consistent with estimate data. **ED-2 is to be considered equivalent to AACEI Class 2 Cost Estimate designation.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 6 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
2. Supplementary Estimates
CONTRACTOR shall exercise cost control throughout the period of early estimate development, to prevent cost "blackouts" during those phases when EMPLOYER may be making significant changes in scope, such as often occur during FEED Phase. Accordingly and as directed by EMPLOYER's Project Manager, CONTRACTOR shall prepare supplementary or transitional estimates to cover the progression from one established baseline to another. Such estimates will include a detailed reconciliation with each previous estimate.
3. Control Estimate (ED-2)
CONTRACTOR shall prepare a Control Estimate (ED-2) which, when mutually approved by EMPLOYER and CONTRACTOR at Conversion, shall become the Contract Price for the project. Said Contract Price shall reflect Contractor's scope of work and shall provide the only mechanism by which Contractor may execute contractual commitments, except those covered in Section III.C of this Instruction.
CONTRACTOR shall progressively develop the ED-2 in discrete portions throughout the FEED Phase, reflecting the scope of Work in a particular Unit FEED Package. When approved byEMPLOYER, each ED-2 portion will become part of the TIC Control Budget. Subsequent to EMPLOYER's approval of the final portion, CONTRACTOR shall produce the composite TIC Control Budget which shall reflect adjustments for all EMPLOYERs approved changes to each ED-2 portion after its original approval/release.
Following are the requirements of the ED-2 with respect to development, bases, and documentation:
a. Developmental Requirements
CONTRACTOR shall not begin ED-2 developmental activities until EMPLOYER has released Contractor to proceed. The mechanism for this release shall be provided by a joint meeting between CONTRACTOR and EMPLOYER's Project Managers to review and confirm the various components of the estimate development as follows:
Developmental Cost and Personnel
CONTRACTOR shall prepare for EMPLOYER approval an estimate of costs and personnel associated with developing each ED-2 portion and the composite TIC Control Budget.
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 7 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
Developmental Timing
Contractor shall prepare a schedule of release for each ED-2 portion and the composite TIC Control Budget which shall acknowledge:
- Release of the ED-2 portion no later than thirty (30) days after release of the particular Unit FEED Package
- Release of the composite ED-2 TIC Control Budget no later than thirty (30) days after release of the last Unit FEED Package
- Continuing EMPLOYER review during development as well as final review and approval prior to release of the respective ED-2 portion and the composite TIC Control Budget.
b. Estimate Technical Basis
Contractor's technical basis for the ED-2 shall be limited to completed Unit FEED Packages, excluding any impact of anticipated scope changes or input from preliminary detailed engineering.
c. Estimate Cost and Scope Basis
Contractor shall address for EMPLOYER consideration, review and approval, representative cost and scope basis elements such as:
Wage rates, productivity factors, and attendant source reliability for home office and field
Engineered equipment cost data sources
Bulk material quantities, unit costs, labor units, and source reliability for all
Escalation due to schedule considerations and source reliability for same
Implications of shutdown or revamp work
Impact of anticipated currency devaluation/revaluation
Definition of allowances, contingencies, and other factors
Qualifications or exclusions from estimate scope
PETROPERU S.A. VOLUME 2 TALARA REFINERY MODERNIZATION PROJECT PROJECT INSTRUCTIONS TO PART C FEED-EPC CONTRACTOR IFP SERVICES AND DELIVERABLES - FEED & EPC
MASTER JOB SPECIFICATIONS PAGE 8 OF 9
DATE: JULY 11, 2009
3. COST MANAGEMENT
International Bidding Process N PCI-002-2008-OFP/P ETROPERU
d. Estimate Content and Documentation
Contractor's completed ED-2 portion shall satisfy following requirements with respect to content and documentation:
Estimate shall be completely compatible with Contractors cost control system for the project.
Estimate details shall be entirely consistent with CONTRACTOR's standard accounting codes (Project Instruction 10, Section II.A), Project Schedule (Project Instruction 2), and all Work Breakdown Structuring and Earned Value reporting requirements (Project Instruction 15).
CONTRACTOR shall provide for review by EMPLOYER's Project Manager all supporting estimate development documentation (Estimate Basis Memorandum EBM prior to preparation of the Estimate. Following Estimate preparation, documentation of the techniques, factors, data sources, allowances, assumptions, etc. shall be provided as backup to the Estimate). The extent of said supporting documentation shall be established during the above noted estimate development meeting at which time a typical Contractor estimate and supporting documentation shall be reviewed.