PROCESS SYSTEMS ENGINEERING

FABRICATION AND ERECTION SPECIFICATION 600.010

Construction Management Revision 0
February 1999
Page 1 of 8

RESPONSIBLE GROUP: GEG Construction Engineering

1. PURPOSE

1.1 This fabrication and erection specification defines minimum construction management
requirements for which an outside engineering or construction firm (hereinafter referred to a "the
contractor") has construction management responsibility on an Air Products project.

2. SCOPE

2.1 This specification applies to an outside engineering and construction firm that will manage
construction with the assistance of one or more Air Products representatives.

2.2 Air Products' and the contractor's responsibilities are further defined in the contract and the
scope-split-strategy document. Other Air Products engineering documents required for the
design and construction of the facility are listed in the project specification and shall be
considered part of the specification to the contractor. The latest revision of each respective
specification or standard will be shown in the project specification, and these revisions form the
basis of the contract.

2.3 Contractor construction standards that are equivalent to the Air Products standards will be
considered for use on Air Products' projects provided these standards are submitted to
Air Products in time to be approved in writing before contract award.

3. RELATED DOCUMENTS

3.1 Air Products Engineering Documents

3EQ00025 Positive Material Identification (PMI) of Process Equipment

600.001 General Specification for a Contract
600.700 Safety and Construction Procedures

Additional Air Products engineering standards, specifications, and standard drawings will be used
as the basis for this contract (refer to the project specifications for a complete listing).

3.2 American Society of Mechanical Engineers (ASME)

BPVC Section 1 Power Boilers

4. DEFINITIONS

4.1 Contractor is the engineering firm or general contractor hired by Air Products to manage
construction or construct a facility.

Authorization for this document is on file in the GEG Engineering Standards Department.
All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Rev. 0, Page 2 of 8

4.2 Subcontractor is a construction contractor hired by the contractor or Air Products to perform a
specific portion of the construction work of the facility.

5. WEEKLY CONSTRUCTION MEETINGS AND MINUTES

5.1 Commencing with the start of on-site plant construction (demolition or site preparation work),
weekly construction review meetings shall be held between the contractor, individual
subcontractors, and the Air Products representative(s) to review safety, quality, manpower,
schedule status, material deliveries, claims, and any problem areas associated with the
construction of the plant. The contractor must document the weekly construction review meeting
in a set of meeting minutes. Each action item shall be assigned to a person along with a target
completion date as agreed to in the meeting to ensure that problem areas are being proactively
addressed. Management from the subcontractors' home offices shall be encouraged to attend
each weekly meeting; as a minimum they shall attend once each month.

5.2 A weekly safety meeting with representation from all on-site contractors and subcontractors as
well as Air Products will be held. Site audit results shall be reviewed with action items being
addressed and documented.

5.3 A weekly coordination meeting with representation from all on-site contractors and
subcontractors as well as Air Products will be held to discuss items such as crane locations,
excavations, and major events. If agreed upon between the contractor and Air Products, this
meeting may be combined with the safety meeting specified in paragraph 5.2.

6. CONSTRUCTION SAFETY

6.1 The contractor is responsible for all its construction subcontracts. All contract requirements shall
be applicable to all tiers of subcontractors. The contractor agrees to abide by the Air Products
safety qualification criteria as defined in 600.001.

6.2 The contractor shall follow all of the requirements detailed in 600.700 and shall include 600.700
in all lower-tier construction subcontracts. The contractor's site construction management team,
including the resident contractor's construction manager, shall take an active role in safety
meetings, safety audits, safety incentive programs, safety enforcement issues, and safety audit
compliance.

6.3 The contractor shall provide safety supervision from the beginning to the end of construction
based on the following minimum conditions:

• With 25 or more workers on site, a full-time safety supervisor is required.

• With 250 or more workers on site, two full-time safety supervisors are required.
• If shift work is required, the same requirements apply for each shift as those stated above.
• All overtime or weekend work will require safety supervision as stated above.

Note: With less than 25 workers on site, the contractor's lead superintendent may fulfill the role
of the safety supervisor.

6.3.1 The sole responsibility of the full-time, site-safety supervisor shall be to proactively manage all
aspects of the construction site safety program. These duties are further outlined in Appendix A.
The site-safety supervisor shall report to an officer of the company and not directly to the
contractor's site manager. The intent of this relationship is for coordination purposes.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Rev. 0, Page 3 of 8
6.4 Before a lift, the contractor shall submit a signed-off copy of the subcontractor's lifting
calculations and procedures to the Air Products representative as follows:

• For Air Products-supplied equipment greater than 30,000 pounds

• For contractor-supplied equipment greater than 100,000 pounds

Note: Any additional requests for lifting procedures will be documented in the project
specifications.

6.5 Access to and work within energized electrical areas (e.g., substations, switchgear, and motor
control centers) shall be limited to authorized personnel only. The Air Products lockout and
tagout procedure found in 600.700 shall be strictly enforced at all times.

7. CONSTRUCTION PACKAGES/BID DOCUMENTS

7.1 The contractor's subcontract construction packages shall include all of the following:

• Scope of work to be accomplished defined in documents or drawings and/or text.

• Milestone completion and/or priority dates for plant systems and areas as appropriate to
support the overall commissioning and startup schedule. The contractor shall review this
information with the Air Products project manager before inclusion in the documents.
• P&IDs for the mechanical, piping, electrical, and instrument packages.
• QA/QC requirements for the subcontractor.
• Contractor-supplied equipment and material delivery dates.
• Relevant specifications, standards, and detailed drawings.
• Detailed bid breakdown.

Note: Any changes/revisions issued to subcontractors prior to contract award shall be

documented via bulletins in numerical sequence. These bulletins shall then become part of the
contract award.

7.1.1 A copy of each bid package shall be provided to the Air Products representative and the
Air Products project manager. The contractor shall issue revisions of engineering and design
drawings, supplier prints, and revisions to the subcontractor's scope of work to the Air Products
representative at the construction site and to the Air Products project manager as they are
released to the subcontractors.

7.2 Subcontract bids shall include all of the following:

• Detailed breakdown of man-hours. No item shall be more than 5% of the total.

• Estimated major quantities (i.e., cubic yards of concrete, diameter inches of weld per metal
type, lineal feet of conduit, tray and tubing).
• Proposed preliminary schedule with manpower loading.
• Proposed field-organization chart.
• Subcontractor safety requirements.
• Labor rates for extra work.
• Completed Certificate of Insurance.
• Resumes of proposed superintendent and site safety supervisor for the past three years.

7.3 The Air Products project and/or field representative shall participate in each subcontractors pre-
award meeting to review work scope and any special customer requirements.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Rev. 0, Page 4 of 8
8. CONSTRUCTION SCHEDULES

8.1 The contractor has the option of using either of the following:

• An Air Products, earned-value, construction, computerized scheduling program

• The contractor's or subcontractor's construction scheduling program

Regardless of which scheduling program is used by the contractor, the following schedule criteria
must be met.

8.1.1 The contractor shall develop and monitor man-hour loaded and earned-value construction
contracts (e.g., civil, equipment erection, piping, electrical, insulation, and painting). A
preliminary construction schedule shall be developed (or Air Products shall be supplied with the
information necessary to develop a schedule) within two weeks after the award of a subcontract.
The final schedule shall be completed by the contractor three weeks after award.

8.1.2 The schedule produced by the contractor shall be based on the milestone dates and the
subcontractor-submitted man-hours and schedule. A baseline "S" curve shall be established and
henceforth not changed. Schedule revisions for additional scope and delays must be shown by
using a new "S" curve along with the baseline schedule (original "S" curve) also being shown.
Revised schedules shall comply with the current contractual completion dates.

8.1.3 On a daily basis, the contractor shall keep track of job progress by having the subcontractor
provide man-hours expended, physical completion (e.g., cubic yards of concrete poured,
diameter-inches of piping welded, footage or number of conduits installed, quantity of
instruments installed, and any other quantities specified in the project-specific documentation).

8.1.4 On a weekly basis, the contractor shall review the contract's overall percent completion with
each subcontractor's percent completion for the various phases of work to determine the overall
percentage of completion.

8.1.5 The contractor shall update the construction schedule weekly to include the new percentages,
man-hours, and other pertinent information every Monday. A copy shall be provided to the
Air Products representative no later than Wednesday of the same week.

8.2 The contractor shall issue a material status report to the Air Products representative every two
weeks. The list shall indicate all outstanding items, including such items as shortages and damaged
goods, and whether any of the items require expediting because they are on the critical path.

8.3 The contractor and the Air Products representative shall keep each other immediately apprised,
verbally or in writing, of any developing problems and delays.

8.4 The contractor shall also report all of the following information on a weekly basis:

• The diameter-inches of welding completed (by material category)

• Large and small bore spool installation status
• Lineal footage of quantities (e.g., conduit, pipe, tubing, and wire)
• Total number of electrical terminations installed versus total estimated
• Number of pressure tests completed versus total required
• Instrument loop completion status
• Number of days of lost time, date(s), and reasons (e.g., weather and labor)
• Special remarks on problems affecting progress
• Subcontractors' weekly and cumulative productivity

Note: If this information can be included within the schedule, a separate report is not necessary.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Rev. 0, Page 5 of 8
8.5 Progress will be closely monitored by Air Products construction personnel with respect to the
contract schedule and will be documented weekly. If it becomes evident to Air Products that the
actual progress of the contractor is not in compliance, the contractor shall take prompt and
adequate action to bring the work into compliance with the schedule (e.g., ensure that
subcontractors hire additional workers in the disciplines required, and/or work overtime to make
up for late work). The contractor shall send engineering and design personnel to the field,
expedite problems, or any other actions needed to ensure that the agreed-to schedule dates are
met.

9. CONTRACTOR FIELD ORGANIZATION

9.1 The contractor shall provide adequate numbers of full-time, qualified supervision when one or
more subcontractors are working on the construction site (i.e., no subcontractor will be permitted
to perform any work without a contractor construction representative present). The contractor's
field organization shall also be documented during the bid and award phase.

10. QUALITY ASSURANCE/QUALITY CONTROL

10.1 The following quality control documents shall be submitted to the Air Products representative as
the work is being performed. A more comprehensive listing will be furnished in project-specific
documentation.

10.1.1 Civil Construction Completion Date

• Soils compaction test Before setting forms or concrete placement

• Concrete mix design
• Concrete break test results
• Grout compression test results
• Piling records
• Bituminous design mix
• Asphalt testing data
• Anchor bolt material certification
Before placing concrete or 2 weeks after moving on-site
Two cylinders tested at 7 days and two tested at 28
days. Formal report within 7 days
Ten work days after test
Logs of each pile kept as they are installed. Formalized
report within 2 weeks upon completion.
Four weeks prior to asphalt paving
Report within 7 days of placement
Prior to setting forms or concrete placement

10.1.2 Mechanical Construction Completion Date

• Material certification and testing One week prior to any welding

• Welding procedures specification
• Procedure qualification record
• Welder qualifications/
certification
• Equipment alignment records
• ASME Boiler and Pressure Vessel
Code Section One requirements
• Pressure test certificates
• Radiographic reader sheets
• PMI on alloy weld rod
• PMI reports on contractor-
supplied pipe
• PMI on alloy field welds
• Bolt torquing records
• Stress relief charts
• Brinnell test reports
• Heavy lift checklist
• Spring setting records
Three weeks after award and prior to any welding
Three weeks after award and prior to any welding
One week prior to any welding
Two work days after setting or cold alignment
Prior to mechanical completion
Two work days after test
Two work days after inspection
Before start of work and continuously during
construction
Before start of work and continuously during
construction
Before pressure testing
Before mechanical completion
Before pressure testing
Before pressure testing
Two weeks prior to lift
Before mechanical completion

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999

Mechanical Construction
• Mechanical test records for all
equipment
• Mechanical completion
certificate
• Blowout records
• Pressure test packages
600.010, Rev. 0, Page 6 of 8
Completion Date
Before mechanical completion
At mechanical completion
Before mechanical completion
Two weeks before testing

• As-built drawings Before release of retention

10.1.3 Electrical and Instrumentation Completion Date

• Relay and instrument calibration Before energization

• Grounding tests Before energization
• Motor air-gap checks Before rotation check
• Transformer oil tests First test within 1 week of receipt on site, second test
prior to energization
• High-potential test results First test 2 weeks after receiving material, second test
before final termination
• Megger test results Before initial energization
• Loop-sheet folders (2 sets required) Two work days after completion
• As-built drawings (2 sets required) Prior to final acceptance

10.1.4 Miscellaneous Completion Date

• Refractory test results Ten work days after test

• Grout compression test results Prior to final acceptance

10.2 Upon mechanical completion, the contractor shall submit a summary list of all QA/QC
documents. Only those documents not previously submitted shall accompany this list.

10.3 The contractor shall perform positive material identification (PMI) testing of all field-erected,
large and small bore, alloy piping as directed in the project scope document. Positive material
identification testing includes testing of all shop- and field-installed alloy piping and welds.

Note: For HYCO projects the contractor shall consult 3EQ00025.

11. SYSTEM COMPLETION

11.1 Pressure Test Completion: Completion of systems for pressure testing includes, but is not
limited to: completion of system flow checking, piping installation, proper gaskets and bolts
installed in flanges, pipe supports installed, and all in-line instruments installed. Upon completion
of pressure testing, system blowout and restoration shall be completed within 2 weeks.

11.2 Mechanical Completion: All related mechanical, electrical and instrumentation systems have
been installed and tested according to the drawings and P&IDs. All related systems have had
loop system check to verify completeness of the system and is ready for a preliminary run-in as
a system.

11.3 Instrumentation Completion: All system-related, in-line and field-mounted instruments have
been installed and hooked up according to the details and loop diagrams. The associated tubing,
including process, signal, sample, and supply has been pressure tested and found to be leak
free.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Rev. 0, Page 7 of 8
11.4 Electrical Completion: All system-related electrical devices, switches, motors, heaters, motor
control centers and switchgear have been wired according to the details and schematics. All
related testing (e.g., hipot, megger, point-to-point) has been completed and converted from
temporary power supply to permanent plant power. Large equipment with motors, greater than
480V, have been bumped to check rotation.

11.5 Pre-Commissioning Completion: All related systems have been completed and the system
has been energized or pressurized for the first time. Associated systems within the system (i.e.,
boiler feedwater, glycol, jacket water, lube oil) have been started and flushed and are now
charged to be used in conjunction with the larger system which is ready to be run-in for a pre-
determined period of time (any time from 10 minutes up to several hours). This also includes
adsorbent and catalyst loading of respective vessels or equipment.

11.6 Commissioning Completion: All related systems have been run-in for an extended period of
time, and related instrument and electrical systems have been function checked and calibration
verified to work properly. This time period could be greater than 4 hours.

12. AS-BUILT CONSTRUCTION DRAWINGS

12.1 The contractor shall generate "as-builts" on a continual basis as installation proceeds. Particular
attention shall be given to underground installations, electrical/instrument wiring, and insulated
systems as they cannot be readily verified later. Sufficient detail on these as-built drawings is
required to be able to locate or trouble shoot. Air Products will define in the project scope
document whether "red-lined" or "re-drawn" drawings are required. The Air Products
representative will review these drawings on a ongoing basis to verify accuracy and
completeness. These drawings shall be formally transmitted to Air Products upon mechanical
completion, and they are required before final acceptance.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999
 600.010, Appendix A, Rev. 0, Page 8 of 8

Appendix A

Responsibilities
For the Contractor's
Site Safety Supervisor

A1. SITE SAFETY SUPERVISOR REQUIREMENTS

A1.1 The site safety supervisor must be a trained and experienced safety professional with a
minimum of the following training:

• Holds current First Aid and CPR certifications.

• Holds competent person certifications for Confined Space Entry, Excavation, and Trenching.

A2. SITE SAFETY SUPERVISOR RESPONSIBILITIES

A2.1 The following is a list of, but not limited to, some of the major responsibilities of the site safety
supervisor:

• Enforces Air Products', OSHA's, other governmental bodies', and contractor's safety rules and
regulations.
• Reviews safety, health, fire protection, and security procedures submitted by
contractors/subcontractors.
• Maintains communications with state and federal agencies, as well as site insurance carriers
relative to safety and health issues.
• Maintains and ensures compliance of site-specific Material Data Sheets and hazardous
chemical inventory.
• Obtains safety records from contractors/subcontractors.
• Conducts project safety meetings.
• Maintains project safety statistics.
• Reviews contractors/subcontractors remedial actions to correct hazardous conditions.
• Audits contractor's/subcontractors compliance with the site safety rules and regulations.
• Maintains the site medical treatment center (if any).
• Administers contracts related to safety/medical/site security, when applicable.
• Assists in the development of the project safety program.
• Administers the site safety incentive program (if any).
• Assists in the development of the site security plan.
• Assists and supports the Lead Construction Manager/Superintendent in enforcing the
construction safety program.
• Administers the emergency response program
• Leads investigations and issues reports for all near misses, first aid cases, recordable injuries,
and lost workday cases.

All information herein is the confidential property of Air Products and Chemicals, Inc., unless another source is shown.
This information is subject to return on demand and must not be disclosed or reproduced without prior written consent.
CONTROLLED COPIES OF THIS DOCUMENT ARE ON GREEN PAPER  Air Products and Chemicals, Inc., 1999