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REVISIONS
IT: ISSUE A - PRELIMINARY C - FOR INFORMATION E - FOR CONSTRUCTION G - AS BUILT
TYPE B - FOR APPROVAL D - FOR QUOTATION F - AS PURCHASED H - CANCELED

Rev. IT Description By Ckd. Appr. Auth. Date

FIRST ISSUE. CANCELS AND
0 C KLM JRL JP GJ 03/01/13
SUPERSEDES DOCUMENT GU-C-630
REVISION OF THE ITEMS 3.0, 5.0 AND
1 C KLM JRL JP GJ 01/24/14
ATTACHMENTS A AND B.
REVISION OF THE ITEMS 3.0, 4.0, 5.0
AND ATTACHMENT A, INCLUDING
2 C WORKFACE PLANNING METODOLOGY KLM JRL JP WQ 12/05/14
AND INSERTED THE ITEM 6.0 –
CONSTRUCTION MANAGEMENT TOOL.

This document may only be altered/revised by the SPE management team.

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TABLE OF CONTENTS

ITEM DESCRIPTION PAGE

1.0 PURPOSE 3
2.0 APPLICATION 3
3.0 REFERENCE DOCUMENTS 3
4.0 DEFINITIONS 5
5.0 CONSTRUCTION PROCESS 6
5.1 INTRODUCTION 6
5.2 PROCESSES AND PRODUCTS 7
5.3 RESPONSIBILITIES 11
5.4 INDICATORS 11
5.5 FINAL CONSIDERATIONS 13
6.0 CONSTRUCTION MANAGEMENT TOOL 13
6.1 DESCRIPTION 13
6.2 SMARTPLANT CONSTRUCTION & MA-C-630 14
ATTACHMENTS 14
ATTACHMENT A - CONSTRUCTION PROCESS 14
ATTACHMENT B - CONSTRUCTION DEFINITION LEVEL ASSESSMENT TOOL 15

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1.0 PURPOSE

Presenting the processes of construction discipline aiding standardization and

systematization in the Development and Execution of capital projects.

2.0 APPLICATION

It is applicable to all Vale projects in Development and Execution phases.

3.0 REFERENCE DOCUMENTS

Documents listed below have been used in developing this document or include instructions
and procedures applicable to it. They shall be used in their latest revision.

EG-B-401E General Specification for Drainage

EG-B-405E General Specification for industrial Drainage Systems
ES-A-410 to 413 Especificações de Serviços
ES-B-405E Service Specification for Service Roads
ES-B-407E Service Specification for Earthworks
ES-C-401E and 403E Service Specifications
to 407E
ES-J-403E to 406E Services Specifications
ES-J-461E and 462E Services Specifications
ES-K-405E Services Specification for Optical Fiber Installation
ES-K-406E Service Specification for Tests, Commissioning and Start-Up For
Telecommunication Installations
ES-K-407E Service Specification for Assembly and Installation of
Telecommunication Systems
ES-M-401E Specification for Electromechanical Assembly Services
ES-N-401E Service Specification for Clearing and Grubbing
ES-S-401E Specification of Services for Installation of Steel Structure
ES-T-401E Specification of Services for Pipe Assembly
ES-T-403E e 404E Services Specifications
ES-T-406E e 407E Services Specifications
ES-T-410E Service Specification for Internal Polyurethane Lining for Piping
and Fittings

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ES-T-416E Specification of Services for Welding / Heat Treatment and Non

Destructive Tests of Steel Pipes
ES-T-418E e 419E Services Specifications
ES-X-401E Service Specification for Geotechnical Field Investigations
ES-X-402E Service Specification for Structure Foundations
ES-X-404E Service Specification for Construction of Dams
ET-A-407 Especificação Técnica para Instalações de Canteiro de Obra
GU-C-008E Project Handover to Operation
GU-C-604E Guide for Daily Work Report Preparation
GU-C-605E Integrated Control of Aerial and Underground Interference
GU-C-607E Guide - Public Infrastructure Survey - Check List
GU-C-608E Guide - Shutdown and Tie - In Study
GU-C-631E Constructive Method Trade-Off
GU-C-633E Constructive Method Strategy Trade-Off
GU-E-400E Glossary of Terms and Acronyms Used in Project
Implementations
GU-E-547E Engineering Guide for The Development of Basic Design (FEL 3)
- Earthworks and Structure Foundation Geotechnical Engineering
MA-G-640E Human Resources for Capital Projects Manual
MA-G-645E Corporate Security Manual for Capital Projects
GU-G-500E Loss Prevention in Capital Projects
GU-G-700E Reference Guide for Health and Safety Management in Capital
Project Ventures
MA-G-800E Quality Processes Manual for Projects
MA-G-802E Materials Management Manual
PE-F-661E Administrative Facility Construction System Trade Off
PE-F-637E Library of Activities and Service Measurement Criteria - Civil
Works, Earthworks, Drainage, Railway And Paving
PE-B-667E Selection of Landfill Execution Method
PE-G-002E Minutes of Meeting
PGS2306 Manual de Gestão de Contratos
PR-E-005E Procedure for Preparation of Quantity Spreadsheets and Service
Measurement Criteria

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PR-E-044E Procedure for the Preparation of the Technical Requisitions of

Civil Works
PR-E-045E Procedure for the Preparation of the Technical Requisitions of
Services
PR-G-010E Project Conclusion
PR-G-225E Procedure For Management of Warehouse Works
PR-G-227E Management Procedure for Services Measurement
PR-G-437E H&S Management Procedure for Electrical Work
ET-XXYYSS-G-404E Technical Specification Management Services

4.0 DEFINITIONS

General definitions, common to the universe of project implementation may be found on GU-
E-400E.

Workface Planning - Process of organizing and delivering all the elements

(WFP) necessary for a work package, before the work is started.
This is accomplished by breaking construction work down (by
trade) into discrete work packages that completely describe
and cover the scope of work for a given project.
Construction Work - A construction work package (CWP) defines a logical and
Package (CWP) manageable division of work within the construction scope.
CWPs are defined in FEL3 to withstand the construction
strategy, so they need to be aligned with the construction
plan and with the WBS (Work Breakdown Structure).
Engineering Work - Engineering product that contains all data, documents and
Package (EWP) information required for the construction work packages
(CWPs). The EWP should be defined in FEL3 and aligned
with the construction sequence and its priorities.
Field Installation Work - Work plan for work fronts that comprising the weekly
Package (FIWP) schedule and is developed from a CWP and EWP. A field
installation work package (FIWP) is the deliverable of
execution phase that enables a construction work crew to
perform work in a safe, predictable, measurable, and efficient
manner.
Pre-fabrication - Manufacturing process usually used in specialized factory, by
which the various materials are gathered to form a final
installation component, such as precast reinforced concrete
pieces (lintels, sills, slabs, beams, etc.)

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Pre-assembly - It is the process by which various materials, precast

Modularization
Off-site fabrication
components and/or equipment pieces are assembled at
remote location for later installation as a subunit.
- It is the result of a series of assembly operations conducted
in offsite locations, which may include parts of several
systems. Typically, it is the largest transportable unit or
component of a facility.
- Practice of pre-assembly or manufacturing components both
inside and outside the construction site, but in a different
location from the erection area.

5.0 CONSTRUCTION PROCESS

5.1 INTRODUCTION

This manual introduces the construction approach as basis for Vale capital projects
implementation, and constitutes a tool for Project Team on development and execution
project phases.

The construction approach model had as its reference the Vale internal practices and the
Construction Industry Institute (CII).

To establish this approach, the following guidelines have been considered:

• Define process with requirements and needed activities for achieving

success during projects execution phase;
• Provide key concepts, activities/requirements, inputs/supplier, output/client,
indicators, points of attention, and supporting documents for construction
process development;
• Reference the milestones and deliverables associated with construction
process for each design phase in order to align with strategies for Vale
capital projects implementation;
• Identify, analyze and correctly report to decision maker the points of attention
and impacts resulting from such an approach;
• Incorporate good practices and lessons learned in the standardization
processes;
• Incorporate the concept of WFP methodology from CII in order to achieve
greater predictability in the construction process.

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5.2 PROCESSES AND PRODUCTS

The construction process consists of 25 processes distributed in phases of development and

execution.

These processes are arranged in a way that they are integrated and continuous, seeking to
achieve the best definition of the project at the end of FEL 3, in order to support the execution
phase of the project.

With the construction development, it is expected that an early construction method choice
can be made and thereby perform the aligning between this strategy and the design process,
planning, CapEx, procurement process, quality, sustainability and safety on construction,
thus assisting the project team to achieve predictability and competitiveness.

Figure 5.1 - Construction Process Map

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To conduct the application of construction processes, are detailed in Attachment A 25

processes described below and shown in Figure 5.1.

The processes to be developed by business unit/project team in FEL 2 are:

• 1. Constructive Method Strategy Trade-off;

• 2. Interferences Removal and Tie ins Execution Analysis;
• 3. Construction Preliminary Planning.

In FEL 3 the project team needs to develop the process related to the construction planning.

The processes related to the construction planning are:

• 4. Planning of Logistics and Accesses Execution;

• 5. Execution Planning for Construction Sites and Temporary Facilities;
• 6. Execution Planning for Earthwork, Drainage and Paving;
• 7. Planning of Interferences Removal and Tie ins Execution;
• 8. Constructive Method Trade-off;
• 9. Execution Planning for Foundations;
• 10. Execution Planning for Civil Works;
• 11. Execution Planning for Administrative Buildings and Industrial Facilities;
• 12. Execution Planning for Electromechanical Erection;
• 13. Constructive Sequence Planning;
• 14. Construction Planning.

In FEL 3 processes are expected the definition and the development of packages for
construction (CWPs) and engineering (EWPs) related.

The division of work is defined considering no overlap of CWPs. They should be aligned with
the project controls and still need to be measurable. A CWP is the basis for the details
development of FIWPs. The contents of a CWP then should consider:

• Safety requirements;
• At least one EWP;
• Schedule (planned, performed and accumulated);

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• Budget (WBS with contract values depending on the measurement criteria for
classified / separated or controllable item);
• Environment requirements;
• Quality requirements;
• Special resources requirements.

The typical contents of an EWP should include the following products:

• Services scope with documents list;

• Drawings (general layouts and equipment installation);
• Facilities and materials specifications;
• Suppliers data (Ex.: Equipment manuals);
• List of materials, equipment, and transmission line;
• Additional information related for support (ex.: interconnections, risks related
activities, release / lock area, etc.).

In the execution phase the project team needs to develop the following process related to
construction:

• 15. Reach Analysis of the Contracted Construction Scope;

• 16. Accesses Execution;
• 17. Construction Sites and Temporary Facilities Execution;
• 18. Earthwork, Drainage and Paving Execution;
• 19. Interferences Removal and Tie ins Execution;
• 20. Foundations Execution;
• 21. Civil Works Execution;
• 22. Administrative Buildings and Industrial Facilities Execution;
• 23. Electromechanical Erection Execution;
• 24. Construction Management and Control;
• 25. Construction Close-out.

In the Execution phase is expected the delivery of the FIWPs by the contractor to perform the
services related to them.

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The scope of a FIWP should be manageable and progressive. This scope is limited so that it
can be executed by a single work front and still within the limit term of about one week.

It is recommended that each FIWP be submitted for approval between 60 and 45 days before
its execution, in order to allow the preparation of possible actions for the front, restrictions
removal and negotiations risks related to planned activities and / or materials supply.

Each FIWP should be approved for implementation until 30 days before the activities start, in
order to enable the provision of resources and adequate preparation for the activities
contained in the related weekly work plan.

So, the FIWP documentation will be all that necessary to support the execution and
conclusion of the related service. Among them, typically include:

• Service package summary (with all relevant information);

• Bill of quantities (BQ);
• Risks analysis related to safety and specific risks for the tasks of the service
package containing status of each risk or restriction, indicating whether they
have been mitigated or removed;
• Drawings (engineering and supplier drawings);
• Specifications (engineering and supplier drawings);
• Modified documents (Ex. Design Modification Requests (DMRs), non
conformity report (RNCs), etc.);
• Materials list;
• Required tools ;
• Forms of installation test results;
• As-built;
• Inspection records;
• Verification signatures at the end of services.

The total sum of FIWPs must meet the entire scope of CWP and must be approved by the
contracted construction leader, as responsible for the execution plan for this scope of work.

Notes:

• It is recommended to keep a minimum of three weeks backlog of FIWPs for

each CWP, with services that may be executed in the short term, in order to
avoid that teams have no service fronts if some event do not allow the
execution of a specific FIWP;

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• Weekly, the contractor construction leader (with support of planning team

and the its planner) must should verify the backlog of FIWPs and insert them
in the project schedule three or four weeks ahead, validating the approved
schedule;
• Work fronts teams should work just a FIWP at a time and only after the finish
of the services execution related will be initiated the execution of the next
FIWP that is planned or scheduled.

5.3 RESPONSIBILITIES

The responsibilities related to the construction process manual are described in the
“Attachment A – Construction Process”.

5.4 INDICATORS

The construction approach shall be implemented and controlled during the project
development and execution phases.

Progress, content and execution measures allow the assessment of activities development
level related to construction for monitoring and controlling the project team work.

For monitoring these activities a numerical classification was proposed, taking as a reference
the CII, designed to assess the construction's development level applicable to each phase of
the project implementation.

Weighting incorporated into Attachment B is based on progress’s typical behavior estimative

and construction process development level expected to the phase that will be evaluated.

The construction definition level shall be evaluated based on the following concepts:

• Not executed
- Not implemented or without evidence to support the analysis;
• Initiated
- Answered, though preliminarily. The evidences presented provide
partial support for the evaluated item;
• Minimum Requirements
- Answered and evidences almost meet requirements of the evaluated
item. Thus, minor revisions are needed to fully meet the requirement;
• Concluded
- Answered and evidences meet requirements of the evaluated item.

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Creating a metric and a tool for assessing construction definition level during the project
implementation enables the use of single criteria for evaluating performance continuously in
all project implementation phases.

Based on the construction processes assessment, the project leader and his team may draw
up an action plan seeking to solve issues and anomalies.

The metrics allows a maximum number of 340 points.

LOWER UPPER
INSUFFICIENT MIDDLE EXCELLENT
MIDDLE MIDDLE

0 26 62 112 242 340

FEL 2 FEL 3 EXECUTION START

Notes:

• The score is assessed by the process application throughout the project

phases implementation, as follows:
- The total score in FEL 2 is 34 points. Achieving this score indicates
that the project, in FEL 2, in terms of construction discipline, has
developed the expected products for the phase;
- The total score in FEL 3 is 128 points. Achieving this score indicates
that the project, in FEL 3, in terms of construction discipline, has
developed the expected products for the phase;
- The total score in Execution is 178 points. Achieving this score
indicates that the project, in Execution, in terms of construction
discipline, has developed the expected products for the phase.

• The score can also be assessed cumulatively throughout the project phases
implementation, as follows:
- The expected score at the end of FEL 2 is 34 points;
- The expected score at the end of FEL 3 is 162 points;
- In the Execution phase before the Execution start the expected score
is 278 points.

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5.5 FINAL CONSIDERATIONS

Although the construction approach is a tool for decision making and selection of construction
methods, the professionals responsible for the analysis shall still make the decisions under to
the needs adaptation of each project.

The construction manual provides a process for the targeting of issues concerning the
construction planning and execution. However not a single solution is possible.

The expected benefits with the construction approach are:

• to help ensure that all strategies, definitions, procedures, systems and legal
requirements are available prior to execution commencement;
• to direct the choice of the most appropriate construction alternative,
especially in what concerns safety, sustainability, cost and schedule issues;
• to incorporate construction concepts and assumptions in engineering design
criteria, in order to secure a more efficient construction in the execution
phase;
• to assist in preparing the Project Execution Plan as regards construction
definitions, describing key points that influence the execution phase, as well
as additional structures needed for services;
• to contribute to improving projects predictability, competitiveness and
sustainability;
• to contribute to previous knowledge and mitigating construction risk factors
aiming adherence to PEP;
• to validate the decision making processes and the adoption of construction
methods during the development phase, as more consistent planning and
preparation for the project execution phase.

6.0 CONSTRUCTION MANAGEMENT TOOL

6.1 DESCRIPTION

SmartPlant Construction is a tool focused on construction management, using information

from engineering models, planning, materials management, supporting the work of the
construction team facilitating the preparation and release of work fronts for construction.

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Figure 6.1 - SmartPlant Construction

This information can also be used in large equipment allocation definition, crossing data of
engineering and planning, status display of construction and materials availability.

The system was not originally designed for measuring contracts, however, given the
availability of existing information, the management activity by construction teams can then
be performed by construction packets and procurement.

6.2 SMARTPLANT CONSTRUCTION & MA-C-630

SmartPlant Construction is a flexible system that supports defined processes in the

construction manual in the execution phase.

The joint use and the requirements of the construction manual and SmartPlant Construction
potentiate the performance of a visual, physical and financial project management, integrated
with the planning, engineering, procurement and contract management

ATTACHMENTS

ATTACHMENT A - CONSTRUCTION PROCESS

Attachment A -
Format: Adobe PDF
Construction Process (26 pages)

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ATTACHMENT B - CONSTRUCTION DEFINITION

LEVEL ASSESSMENT TOOL
Attachment B - Format: Microsoft Excel
Construction Definitio
(1 page)

DOUBTS, CRITICISM OR SUGGESTIONS

For doubts, criticism or suggestions relating to the SPE, please access the online central SPE
Responde, available on the Project Portal, or use the email address spe@vale.com.

Your participation is essential for the SPE collection improvement and maintenance processes.

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