Bechtel Limited

COMPANY QUALITY SYSTEM PROCEDURES

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Procedure Number QAP-202 Rev 5
PROCEDURE NUMBER QAP-202
RESPONSE TO ENQUIRIES
AND REVIEW OF CONTRACTS

5 Oct 97 Amended to include requirements for JJL DB KQ

NDEU
4 Jan 97 Amended to comply with new JJL DB CGM
Company procedures
3 Nov To comply with ISO9001:1994 DB PKG CGM
2 Jul 92 To suit changes to other documents DB TEO ML
1 Sept 89 Company Implementation ABH DB KT
0 May 89 Interdepartmental Review DB RK
REV DATE REVISION BY CHKD APPR
THIS IS A CONTROLLED COPY. IF PRINTED, THE HARD COPY WILL BECOME NON-CONTROLLED
Bechtel Limited
Company Quality System Procedure No: QAP-202

CONTENTS

1. PURPOSE....................................................................................................................
2. SCOPE.........................................................................................................................
3. REFERENCES............................................................................................................
4. DEFINITIONS............................................................................................................
5. RESPONSIBILITIES..................................................................................................
6. INSTRUCTIONS........................................................................................................

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

1 PURPOSE

To establish and maintain a system for reviewing the specified requirements of enquiries
and contracts and ensuring their inclusion in the proposal and project plans.

2 SCOPE

This procedure applies to Marketing and Business Development, POC, MPAG, Supply
Optimisation, Business Management, Construction, Legal and Insurance.

This procedure shall apply in addition to any specific Client requirements and addresses
the scope of a contract involving engineering, procurement and construction
activities.

This procedure addresses the requirements of ISO9001:1994 Section 4.3 as defined in

Company Quality Manual QAP-101 Section 8.3.

3 REFERENCES

National & International Standards

ISO9001 : 1994 Quality systems -

Model for Quality Assurance in Design/Development, Production, Installation &
Servicing

Management Documents

QAP-101 Quality Manual

Quality System Procedures

QAP-201 Production of Company Departmental and Project Procedures

QAP-203 Project Cost Control and Planning
QAP-205 Document and Data Control

EAMS Operating Procedures

GOP 7EG 018 - Proposal Initiation & Strategy Development

GOP 7EG 022 - Standard Proposal Write - Ups
GOP 7EG 024 - Proposal Close - Out & Archiving
GOP 7EG 032 - Proposal Review

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

Standard Project Procedures

GPP 7EG 301 - Project Quality Plan

4 DEFINITIONS

Enquiry - ITB - Invitation to bid, ITT- Invitation to Tender, from prospective Client, to
perform work

MPAG - Multi Project Acquisition Group

POC - Project Optimisation Centre

Proposal - Response to enquiry incorporating the proposed plans for the execution of the
contract

Company - Bechtel Limited and the EAMS Execution Unit

5 RESPONSIBILITIES

The Business Development (BD) Manager, the Project Manager and the Proposal Co-
ordinator are jointly responsible for the preparation of a proposal that fully meets
the Clients requirements.

The Business Development Manager is specifically responsible for the commercial

content of the proposal and all meetings with the Client.

The Proposal Manager is specifically responsible for chairing scheduled progress

meetings and for the technical content of proposals.

The Proposal Co-ordinator is specifically responsible for:

· Distribution of all relevant documentation

· Co-ordinating the preparation of the proposal

· Arranging proposal kick-off meetings and progress meetings with proposal

team members

· Controlling man-hour and cost budgets

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

· Approval of all relevant timesheets and expense reports for the proposal

Department Managers shall be responsible for their departments contribution to the

proposal, and for ensuring that an adequate review is carried out by their
departments; all in accordance with this procedure.

6 INSTRUCTIONS

Enquiry Stage

Upon receipt of an enquiry from a Client, a Bid Approval Form is completed by

the responsible Business Development Manager.

If approval to proceed with the bidding is agreed, the next actions are to:

· Establish and agree the Programme Budget (man-hours and costs)

· Assign a Proposal Manager
· Discuss strategy to win

The enquiry shall be reviewed and the proposal prepared and co-ordinated by the
Proposal Manager in accordance with GOP 7EG 018 and supporting
procedures in co-ordination with the responsible Business Development
(BD) Manager. Preparation shall involve the following activities:

a) Establishing formal lines of communication with the Client.

b) Identifying the scope of work (services to be provided and facilities to

be supplied and/or erected), and verifying that requirements are
adequately defined

c) Preparing an execution plan for all activities

d) Preparing the project schedules

e) Advising and obtaining inputs from all relevant departments for the
execution plan and other types of plan

f) Preparing the organisation chart and manpower histogram

g) Selecting personnel CVs.

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

h) Preparing cost estimates including, where required, obtaining bids from

potential suppliers.

The review of the enquiry shall cover the specified requirements and shall identify
any items that are unusually complex or unfamiliar. The Company's ability
to respond to such requirements shall be investigated and any need to
acquire or update equipment, resources or skills brought to the attention of
the Proposal Co-ordinator.

Departments required to input into the Proposal Document shall prepare necessary
responses and documentation based on the requirements of GOP 7EG 022.

Where applicable the execution plan, quality plan, automation plan, construction
plan, subcontracting plan and systems plan shall address the specified
requirements and incorporate detailed proposals for performing the work.
The degree of detail required shall be decided by the BD Manager and the
Proposal Co-ordinator following discussions with the Department
Managers or their representatives.

The reviewing departments shall record queries arising from their reviews and
pass these to the Proposal Co-ordinator for resolution.

The execution plan and schedules demonstrate how it is intended to achieve

control, compatibility and co-ordination of management, engineering,
design, procurement and construction work and shall all ensure that the
required controls, processes and facilities are identified and their
acquisition planned.

Review and Approval

The BD Manager shall ensure that the proposal is reviewed and approved before
submission in accordance with GOP 7EG 032.

Where, after proposal submission, negotiations with the Customer result in

changes, the BD Manager shall ensure that changes to the proposal have
been reviewed and approved in accordance with GOP 7EG 032.

Following completion of the Proposal Stage, records of the proposal review in the
form of the completed proposal and the approved documents shall be
stored by the BD department in accordance with GOP 7EG 024.

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

Project Execution Stage

On contract award, the BD Manager shall instruct Legal Department to distribute

the conformed contract.

All contract documents shall provide evidence of review and approval performed
by the appropriate Business Development Manager.

The Project Manager shall review the contract documents and initiate and co-
ordinate the following activities:

a. Recorded distribution of the contract documents, plans and schedules to

the project department managers.

b. Updating and preparation of detailed plans and schedules to comply

with initial contract requirements and planned execution costs
including man-hours.

c. Planning and developing project procedures in accordance with QAP-

201.

d. Planning and documenting the assignment and interrelation of

personnel for the project team.

e. Planning the acquisition of any facilities and resources necessary.

f. Establishing formal lines of communication with the Client.

The project department managers in association with their departmental managers

shall review the contract documents including revisions. Each reviewer
shall verify that requirements are adequately defined within the documents
and shall identify any requirements differing from those in their section of
the proposal.

Records of the review shall be prepared and passed to the Project Manager
who shall resolve any matters requiring Client clarification.

In accordance with the results of the review, updating of plans and schedules and
initial preparation for the Project work by the various departments,
including preparation of Project Procedures, shall be performed in
accordance with the appropriate project procedures.

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Procedure Number QAP-202 Rev 5
Bechtel Limited
Company Quality System Procedure No: QAP-202

Changes to a contract after award shall be handled in accordance with Procedure

QAP-203.

Where detailed design work is to be performed in the New Delhi Execution Unit,
the responsible Project Engineer in that office shall review the documents,
whether hard copy or in electronic format, received from the originating
office (i.e.: London, Gaithersburg, etc.).

Following review (s)he shall initiate and co-ordinate activities similar, to

those described in 6.3.3 a, d, e, & f, 6.3.4 above. In 6.3.3a and 6.3.4
specifications will be reviewed, not contract documents and in 6.3.3f lines
of communication will be established with the originating office, not with
the Client.

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Procedure Number QAP-202 Rev 5