Title Construction Inspection and Test Plan Procedure

Document No. ELT-01-CQ-PC-0001

Revision No. 0
Page No. 1 of 13

Construction Inspection and Test Plan Procedure

Project Title : Andres LNG Terminal Expansion Project

Location : Punta Caucedo, Boca Chica, Dominican Republic
Owner : ENERGÍA NATURAL DOMINICANA ENADOM, S. R. L.
Contractor : POSCO Engineering & Construction Co., Ltd.
Discipline : Quality Assurance / Quality Control

FOR CONSTRUCTION

Issue for
0 11 July 2021 J.M Baek J.M Baek J.M Baek J.M Oh
Construction
B 22 May 2021 Issue for Approval J.M Baek J.M Baek J.M Baek J.M Oh

A 27 APR 2021 Issue for Approval J.M Baek J.M Baek J.M Baek J.M Oh

Rev.
Issue Date Revision Text Prepared Checked Reviewed Approved
No.

The contents of this document are the sole property of POSCO E&C. Any rights not expressly
granted herein are reserved. Reproduction, transfer or distribution of part or all of the contents in
any form without the prior written permission of POSCO E&C is prohibited.
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TABLE OF CONTENTS
1 ...........................................3
Purpose .............................................................................. Error! Bookmark not defined.

2 Scope............................................................................................................................. 3

3 Reference Documents .................................................................................................3

............................3
Error! Bookmark not defined.

4 Definitions ................................................................................................................... 3

5 Responsibilities .......................................................................................................... 5

6 General ........................................................................................................................ 6

7 Procedure .................................................................................................................... 6

7.1 Preparation of ITP ....................................................................................................... 6

7.2 Inspection Notification ............................................................................................... 7

7.3 Performance of Inspection/Testing ............................................................................ 7

7.4 Nonconformance Control ........................................................................................... 9

8 Records ....................................................................................................................... 9

8.1 Inspection Notification Numbering ............................................................................ 9

9 Attachment ................................................................................................................ 12
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1. Purpose

This procedure has been developed to ensure that shall be performed in accordance
with the contract, applicable codes and management methods to be established.

Should conflict exist between Code and this procedure, Subcontractor shall notify
Construction Engineer and Project Quality Manager for clarification by written
agreement prior to proceed with the work.

2. Scope

This Procedure shall be applied to assign responsibilities, describe the methods and
provide procedures for site inspection and testing of field construction work, including
documentation interface with the Owner, Contractor and their subcontractors.

3. Reference documents

ELT-01-MQ-PC-0001 Quality Assurance Plan

ELT-01-CQ-PC-0008 Receiving Inspection Procedure
ELT-01-MQ-PC-0004 Nonconformance Procedure

4. Definitions

Inspection:
Inspection means, examinations, tests or measurements to determine whether items
such as equipment, material, components, parts, assemblies, systems and structures
resulting from manufacturing or construction processes conform to specified
requirements.

Receiving Inspection:
Receiving Inspection will perform in accordance with [ELT-01-CQ-PC-0008] Receiving
Inspection Procedure

In-process Inspection:

In-process Inspection means, inspection of an action to verify conformance to

requirements of the activity in-processing items / materials.

Final Inspection:

Final Inspection means, inspection to verify conformance of completed product of activity

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to specified requirements.

Inspector:
Inspector means, a qualified person who performs inspection activities to verify
conformance to specific requirements.

Hold Point (H):

Hold Point (H) means, a point, designated by prior stated agreement in the Inspection
and Test Plan(s), at which the performance of an activity must be stopped and put on
hold until specified actions are completed.

The hold point which can’t be waived. If the inspection is rejected, the following process
can’t be proceeded and it must be issued as high grade of NCR in accordance with
[ELT-01-MQ-PC-0004] Nonconformance Procedure.

Witness Point (W):

Witness Point (W) means, a designated inspection or test operation where, by prior
agreement, the supplier / contractor is obligated to advise the Company or his designee
of a specified time in advance of the operation so that it may be witnessed; but the
supplier / contractor may proceed with work past the witness point if the Inspector or
Engineer is not present at the appointed time providing proper notification has been
provided. When the inspection activity is performed by the supplier, then there must be
documented objective evidence of the satisfactory completion of the operation which
can be verified at a later date by the purchaser.

Review Point (R):

Review Point (R) means, a process where there is review of relevant document instead
of inspection / witness.

Inspection and Test Plan (ITP)

Inspection and Test Plan (ITP) means, a document that provides detailed direction for
the quality verification and inspection activities performed by the Company, Contractor,
construction subcontractor quality control inspection organization, other subcontractors,
suppliers, or inspection agency. Inspection and Test Plans are controlling documents
that specify what inspections and tests are required; what the standard of acceptance
are, how by whom and sequence the inspections are to be performed.

Inspection / Test Report

Inspection / Test Report means, a record that provides a documented record of
completed inspection / test results.
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5. Responsibilities

5.1. Project Quality Manager (PQM) is responsible for the coordination and verification of
activities on the site of all items related to quality, such as inspection, test & witnessing,
monitoring, preparation & issue of ITPs, procedures and relative documents.

5.2. Construction Engineer (CE) is responsible for the preparation of activities on the site of
all items related to quality, such as preparation & issue of ITPs, procedures and relative
documents.

5.3. Construction Engineer is responsible for the followings ;

5.3.1 Prepare details of the field Inspection requirements or activities in accordance

with the specifications, Owner standard, other applicable codes and standard of the
Contract.

5.3.2 Plan and establish general and individual procedures for the field Inspection for
each work category.

5.3.3 Hold pre-inspection and inspection meetings as required with all the parties
concerned. The Owner will be invited to attend.
5.3.4 Submit to the Owner an application of notification for inspection for Witness or
Hold points in accordance with ITP’s.

5.3.5 Prepare written reports detailing the results of specific tests and inspections.

5.4 QA/QC Engineer/Inspector is responsible for the followings ;

5.4.1 Review details of the field Inspection requirements or activities in accordance with
the specifications, Owner standard, other applicable codes and standard of the
Contract.

5.4.2 Perform inspection and document review

5.4.3 Maintain regular contact with the Owner including reporting all field Inspection
activities.

5.4.4 attending and performing test at the specific witness/hold inspection points which will
be indicated on the approved ITP
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5.4.5 Subcontractor's QC Inspector is responsible for the followings :

(1) Summit inspection and test plan (ITP) to the Construction Engineer

(2) Perform inspection in accordance with ITPs or procedure

(3) Submit contractor an application for inspection on witness and hold

point in accordance with ITPs.

(4) Maintain and provide to the Contractor the inspection/test status and
schedule

(5) Submit to the Contractor the inspection/test records showing that all
required inspection/test activities are completed.

6. General

6.1 Contractor shall control the quality of all stages of construction by meeting the
requirements of Inspection and Test Plan (ITP) and inspection procedures.

6.2 Construction Engineer shall prepare the QC dossier (Handover documents) cooperated
with QC personnel after completion of site fabrication/installation and shall submit it to
the Client according to the Contract for turnover. The QC dossier shall form part of the
turnover documents.

7. Procedure

7.1 Preparation of ITP

7.1.1 ITP shall be prepared by each discipline Construction Engineer or subcontractor

and include the contents below for each construction discipline or subcontractor
prior to commencement of the construction discipline activity.

(1) Project Name

(2) Description of Inspection or Test

(3) Reference (Procedure, drawings, etc.)

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(4) Inspection classification for each concerned parties (subcontractor, Contractor,

Owner, etc.). I.e. hold point, witness point, review point.

(5) The frequency of inspection and test

(6) The tolerance and acceptance criteria

7.1.2 ITP (Attachment #2) shall include the receiving inspection item (material verification
process) / construction discipline.

7.1.3 Hold point, witness point, review point for subcontractor/Contractor, shall be
reviewed and approved by Project Quality manager (PQM) or a designee (Home
Office or Site), as the case may be prior to implementation.

7.1.4 Applicable discipline engineer establish witness and hold point in concurrent with
the QA/QC Engineer or QC Inspector.

7.2 Inspection Notification

7.2.1 In case of in-process inspection(chapter 7.3.3) should be informed Inspection

Notification (Attachment1) by email notice to the Owner at least 24 hours in
advance of the inspection. For final inspection(chapter 7.3.4) should be notified
through Unifier before 24 hours.

7.2.2 If it becomes necessary for the Contractor to change the schedule (date, time,
etc.), he shall promptly notify the Company for the proposed change in the same
manner.

7.3 Performance of Inspection/Testing

7.3.1 Inspection and tests shall cover all phases of manufacturing and construction
to as certain that all works comply with the project specification and with the
Applicable codes and standard, that materials and workmanship are of good
quality and that all parts of the works are appreciate for the purpose which
they were intended to fulfill. In particular, inspection and testing shall include
all test and inspection as called For in the applicable codes and standard as
well as those specifically requested in the project specifications

7.3.2 Inspection and testing shall include but to be limited to :

(1) Acceptance test on prime materials;

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(2) Welding, fabrication and control procedure qualification;

(3) Welders, operations and inspectors qualification tests;

(4) Welding inspection;

(5) Inspection and tests for control of quality during manufacturing ;

(6) Factory acceptance test;

(7) Inspection before packing and shipping;

(8) Inspection at delivery for possible transport damage;

(9) Inspection of underground facilities before buying;

(10) Dimensional check;

(11) Hydrostatic test;

(12) Performance and functional acceptance test; etc.

7.3.3 In-process inspection/testing

(1) QC Inspectors shall perform inspection/testing in accordance with ITP,

applicable code and standard or procedure/checklist. They shall carry out
general surveillance.

(2) If Owner has designated a witness or hold point in ITP, inspector shall notify
the Owner of inspection schedule to witness inspection.

(3) Notification to the Owner shall be issued after successful completion of the
activity to be witnessed. The activity shall be inspected and approved by
the Contractor Inspector prior to issuing the notification. All site inspection
notifications to the Company shall be issued to the Contractor Quality Team.

(4) Inspection report shall be reviewed by the Contractor QC Inspector.

(5) After completion of subcontracted work, PQM shall verify completion of all
the activities including inspections specified in the ITP, corrections for
nonconformance and completion of construction have been satisfactorily
completed, and shall review applicable records.
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7.3.4 Final Inspection

(1) The PQM shall perform final inspection when all of construction works has
been completed.

(2) The PQM shall verify whether all of inspections/tests specified in contract
quality requirements have been implemented completely and all non-
conformances issued have been closed.

(3) Owner's witness/hold points for final inspection are designated in ITP, the
Company shall be notified in order to be able to witness.

(4) If Owner has witnessed a successful inspection by the Contractor or

subcontractor, then the Owner shall sign on the particular completed
inspection records.

7.4 Nonconformance Control

The Contractor shall ensure that all materials and equipment are used at site after
acceptance inspection. In case any nonconforming items are discovered, they shall
be clearly identified, recorded and traced in accordance with [ELT-01-MQ-PC-0004
Nonconformance Control Procedure].

8 Records

ITP, Inspection/Test Procedure, Inspection Reports or Checklist prepared according to

this procedure shall be controlled in accordance with the Quality Assurance Plan.
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8.1 Inspection Notification Numbering

1) Definition for Work of Scope

Legend Work of Scope Subcontractor

G Common work None

ESD Temporary Office ESD

CIV Civil Work Consortium Remix

ARC Architecture TBI

ELE Electric TBI

IAC Instrument and Communication TBI

HVA HVAC TBI

FF Fire Fighting TBI

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LMW LNG Tank Mechanic Work S-Tank

LIW LNG Tank Insulation Work TBI

PPW Piping Installation Work TBI

PIW Piping Insulation Work TBI

SSW Steel Structure Work TBI

MI Mechanic Installation TBI

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9 Attachment

Attachment 1 : Inspection Notification

Inspection Notification
Project
Name
Subcontract
Project No.
or
Notification
System
No./Date
Inspection
Discipline
Date/Time
ITP No. Activities
Reference
DWG.
Inspection
Items
Detail Description (If Required)

POSCO E&C POSCO E&C

Subcontractor Owner
Construction QA/QC
Name
Position
Signature
Date
Results of Inspection : Accepts( ), Rejects( ), Accepts with Comments ( )
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Attachment 2. Inspection and Test Plan (Sample)