14.4.

50: Subcontractor Quality Requirements

OEMS Element: Supply Chain

Subcontractor Quality Requirements

Objective

The objective of this procedure is to outline the Quality requirements expected by the
Subcontractor during the execution of an Exterran Contract Operations (ECO) Project.

Specific quality requirements included in other sections of the project Contract, Work Orders,
and/or Purchase Orders will take precedence over similar requirements found in this procedure.
On matters where the ECO project documents’ requirements are not stated or are less rigorous,
the requirements in this procedure apply and supersede.

Scope

The Subcontractor has the overall responsibility for the Quality of their own work and the work of
their sub-contractors and professional services providers.

The Subcontractor shall be responsible for the Quality Control of the equipment and services
and shall provide the resources and personnel to plan, conduct, report, and document
inspections and tests.

Subcontractor shall prepare and receive approval from Exterran for processes by which the
areas shall be identified and the required QA/QC levels specified. The Subcontractor shall
identify the results to be recorded and where they will be stored as quality records in their
Quality Plan and shall resource the quality related activities accordingly as well as ensuring all
of their Craft and Professional Services providers follow and document the same methodology.

Policy

The Subcontractor shall:

Prepare and submit for Exterran’s review and approval a Project Quality Plan (QP) within fifteen
(15) days after the award of contract. The QP shall address at a minimum the following:

 Scope addressing the extent of coverage required per Contract

 A breakdown by position of the quality organization including management with defined

roles and responsibilities for all Quality activities

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 Identification of Subcontractor’s procedures applicable to the work

 Quality System Procedures and Inspection Schedules

 How Non-Conformities, Corrective Actions (CARs), Deviations, Concessions, Waivers,

and Technical Queries (TQs) will be controlled, resolved and documented

 General documentation submittal, review, approval, and Document Management

process

 Subcontractor’s plan for procurement of materials and material controls including onsite
storage and preservation

 Method for verification of calibration of instruments used for inspection and testing

 Identification of records that will be maintained to demonstrate that all materials,

equipment, and construction activities conform to established requirements and how,
and in what form, the records will be turned over to Exterran

 How Subcontractor’s potential sub-contractors and professional services providers will

be evaluated and selected to ensure they have the required resources, tools,
procedures, and quality capabilities to meet Exterran’s established requirements

 How design documents and fabrication drawings prepared by Subcontractor,

Subcontractor’s potential sub-contractors, and professional services providers will be
reviewed for consistency with engineering design and standards as well as regulatory
and environmental compliance

The Subcontractor Project Quality Plan shall be in place and ready to implement prior to the
release of quality-related work within the scope of the plan. Plans are considered ready for
implementation once approved by Exterran and after specific procedures referenced in the plan
have been approved and issued.

Subcontractor shall provide Exterran personnel and designated representatives timely and free
access to all work (materials, equipment, work sites, documents, and records) for the purpose of
review, audits, inspection, assessments, and surveillance.

Subcontractor shall establish and maintain the necessary quality records and documentation to
verify that appropriate quality checks and verification have been carried out. Any such
documentation shall be turned over to Exterran upon completion of individual turnover systems.
Such records and documents shall be made continuously available to Exterran’s representative
and shall include, but not limited to, the following:

 Welding dossiers consisting of Weld Procedure & Procedure Qualifications

 Weld Map and Welder Qualification Records (including continuity logs as applicable)

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 Nondestructive Examination Reports

 NDE Technician Certifications

 Dimensional Inspection Reports

 Painting Inspection Reports

 Material Test Certificates

 Heat Mapping/Material Traceability Documentation

 Pressure Test Reports

 Calibration Certificates for all testing and measuring equipment

 Concrete Pour Cards and Compressive Strength Test Results

 Density Testing Results for Compaction Tests

 Mechanical installation inspection reports (skid leveling, piping installation, flange

management, equipment alignment, etc.)

 Pre-commissioning and commissioning circuits, loops, and instrument test records

 Material specifications and descriptive literature for Contractor supplied materials

 As-built marked up set of drawings

Responsibilities

Subcontractor shall arrange Kick-Off meeting within five (5) days after the execution of the
Contract or when formal commitment has been accepted by Contractor and mutually agreed.
The purpose of this meeting is to clarify any issue related to the Quality of the contracted scope
of work, establish communication channels and introduce QA/QC personnel. At a minimum, the
following Contractor and Subcontractor Project personnel shall attend:

 Project Manager

 Project Engineering Manager

 Construction Manager

 Quality Manager

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Subcontractor’s QA/QC personnel are responsible for:

 Prepare QP / ITP

 Ensure inspection & test plans are being followed

 Complete documented audits / surveillance activities

 Maintain material traceability logs

 Maintain welder rejection rates

 Ensure NDE percentages of each weld meet Code and Contract requirements

 NDE report review

 Maintain weld maps with NDE reference

 X-ray film review

 Weld inspection per applicable Code and Standards by CWI, ASNT Level II or
competent person; subcontractor to submit resume for Exterran review in lieu of
Certificates

 Ensure instruments being used on site are calibrated

 Build hydro / pneumatic test packages

 Witness hydro/pneumatic testing

 Review and accept MTRs

 Prepare weekly reports

 Daily coating reports and inspections (certified inspector required)

 Build turn over packages

 Write and close NCR/CARs

Inspection & Test Plans (ITP) – In addition to those inspection stages normally undertaken by
the Subcontractor, ITPs shall as far as practical, follow the normal sequencing of the work
processes and identify the stages requiring approval, inspection, and testing by Exterran, third
parties, and others. Exterran shall identify their intended participation on the ITP(s) during the
review and approval process. For Construction and Installation work individual ITP for each
discipline may be used. The Subcontractor is responsible for the quality, completeness &
accuracy of documentation submittals provided by their Sub-contractors.

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The ITP format may vary, however the following minimum information shall be included:

 Activity and associated procedure(s) and specification(s) reference covering the activity

 Acceptance Criteria

 Entity responsible for activity execution

 Objective evidence of activity execution and/or verifying document

 Inspection Witnessing, Hold or Review points and frequency including the witnessing
party (Customer, Contractor, Third Party Entity)

Authority participation

 The ITP must be reviewed and approved by Exterran prior to the start of the work
addressed by the ITP.

Subcontractor shall submit to Exterran a weekly progress report of the quality assurance and
quality control activities performed. Subcontractor shall provide a minimum of 48 hour notice to
Exterran for any activity in the ITP that requires a Witness or Hold point from Exterran.

Subcontractor is responsible for; the completeness, correctness, timely filing, and approval of all
required permits, inspections, and applicable regulatory requirements, and for providing proof of
completion of these requirements to Exterran for acceptance.

Exterran Quality Inspectors, as well as their designated Third Party Inspectors (TPIs), shall have
the right to;

 Reject any material or equipment found to be defective, or showing poor quality or

workmanship,

 Reject any material or equipment that is not in conformance with purchase order
requirements.

In such cases, a Non-Conformance Report will be generated by Exterran, its TPI or by the
Subcontractor for self-detected Non-Conformances.

Upon receipt/generation of the non-conformance report, the Subcontractor shall take immediate
action to either;

 Replace the defective part or component,

 Advise Exterran in writing on proposed corrective actions to be taken,

 Issue a Deviation Request requesting acceptance of the Non-Conformance by Exterran.

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Corrective actions shall include submitting a repair activities plan covered by a procedure that
requires acceptance by Exterran. Approval of repair plan is required prior to starting repair
activities.

When corrections have been completed, and full compliance with contract requirements have
been verified, the Subcontractor shall obtain Exterran’s acknowledgement of the repair
acceptance for resolution of the pending non-conformance report(s).

Note: No equipment or material will be accepted until all pending non-conformance reports are
closed.

Any non-conformance shall be investigated by the Subcontractor to determine the cause,

potential extent of the problem, and identify any deficiencies and actions to be taken to prevent
recurrence.

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