Engineering and

Procurement procedure
Procedure No. 3723 Rev 001
 Engineering and procurement
procedure
Table of contents

1 DEFINITION AND ACRONYMS ................................................................................ 3

1.1 Definition ............................................................................................................... 3

1.2 Acronyms .............................................................................................................. 4

1.2.1 General Terms .................................................................................................. 4

1.2.2 Entity Departments ........................................................................................... 8

1.2.3 External Entities ................................................................................................ 8

2 PURPOSE ............................................................................................................... 10

3 SCOPE .................................................................................................................... 12

4 REFERENCES ........................................................................................................ 13

5 PROCESS ............................................................................................................... 14

5.1 Document submission and review process...................................................... 14

5.1.1 General ........................................................................................................... 14

5.1.2 Documents formats and submissions ............................................................. 15

5.1.3 Approval process ............................................................................................ 17

5.1.4 Document Revision Notice (DRN) ................................................................... 20

5.1.5 As-Built Drawings ............................................................................................ 20

5.2 Engineering Design and Procurement phases ................................................. 22

6 RESPONSIBILITIES................................................................................................ 31

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 Engineering and procurement
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7 APPENDIX .............................................................................................................. 38

7.1 Master Deliverable Register Template .............................................................. 38

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 Engineering and procurement
procedure
1 Definition and acronyms

1.1 Definition

The engineering and procurement procedure is a guideline for SWCC Execution Project
Team, or its delegated Supervision Consultant (in the case the Authority has been
delegated to) to manage, supervise and monitor Contractors during the detailed
engineering and procurement phases.

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 Engineering and procurement
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1.2 Acronyms

1.2.1 General Terms

A, B, C and D : Approved for Construction, Approved as Noted, Rejected and For
Information Only
AA : Approval Authority for Gates, as part of Stage Gate process
AC : Actual Cost
AFC : Approved for Construction
ANSI : American National Standards Institute
ASR : Accident Severity Rate
BAC : Budget at Completion
BDEP : Basic Design Engineering Package
BDP : Basic Design Package
BOQ : Bill of Quantities
C&S : Commissioning & Start-up
CAD : Computer-Aid Design
CAPEX : Capital Expenditure
CBS : Cost Breakdown Structure
CCC : Commissioning Clearance Certificate
CEP : Conceptual Engineering Package
CIP : Controlled Insurance Program
CPN : Critical Path Network
CT : Commissioning Team
CV : Curriculum Vitae
DC : Design Consultant
DRN : Design Revision Change
EBIT : Earnings Before Interest and Tax
ECC : Erection Clearance Certificate
ECMS : Enterprise Content Management System
EPC : Engineering, Procurement and Construction
EV : Earned Value
EVM : Earned Value Management

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 Engineering and procurement
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FAC : Final Acceptance Certificate
FAT : Final Acceptance Test
FCC : Functional Acceptance Certificate
FED : Functional End Development
F : Fixed
FID : Final Investment Decision
FS : Financial Score
FTE : Full Time Equivalent
FVA : Functional Value Analysis
GRC : Gate Review Committee
HAZOP : Hazard and Operability study
HSE : Health, Safety and Environment
HSSE : Health, Safety, Security and Environment
HVAC : Heating, Ventilation and Air Conditioning
IBC : Initial Business Case
IFC : Issued for Construction
IMD : Inventory Management Division
IRR : Internal Rate of Return
IT : Information Technology
ITP : Inspection Test Plan
KPI : Key Performance Indicator
KSA : Kingdom of Saudi Arabia
LL : Lessons Learned
LLR : Lessons Learned Responsible
LSTK : Lump Sum Turnkey
LTA : Lost Time Accident
LTR : Lost Time Rate
MCC : Mechanical Completion Certificate
MDR : Master Deliverables Report
MRIR : Material Receiving Inspection Report
MS : Microsoft Soft
MW : Mega Watt

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 Engineering and procurement
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NCR : Non-Conformance Report
NDE : Non-destructive Examination
NF : Not Fixed
NFPA : National Fire Protection Association
NFS : Non-Financial Score
NGO : Non-Governmental Organization
NPV : Net Present Value
NTP : Notice to Proceed
OEM : Original Equipment Manufacturer
OPEX : Operational Expenditure
PAC : Preliminary Acceptance Certificate
PAI : Preliminary Acceptance Inspection
PDI : Pre-Delivery Inspection
PERT : Project Evaluation Review Technique
PES : Project Execution Strategy
PFD : Process Flow Diagram
PID : Process Instrument Diagram
PI : Profitability Index
PIR : Post Implementation Review
PL : Punch List
PMBOK : Project Management Body of Knowledge
PMC : Project Management Contract
PMI : Project Management Institute
PMI-RMP : Project Management Institute – Risk Management Professional
PMO : Project Management Office
PM : Project Manager
PO : Purchase Order
PPE : Personal Protective Equipment
PP : Payback Period
PV : Planned Value
QA/QC : Quality Assurance/Quality Control
QA : Quality Assurance

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 Engineering and procurement
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QC : Quality Control
QHSE : Quality, Health, Safety and Environment
RACI : Responsible, Accountable, Consulted and Informed
RA : Risk Assessment
RFC : Request for Clarification
RFI : Request for Inspection
RFP : Request for Proposals
RM : Risk Management
RO : Relative Outcome
RR : Risk Register
RSPL : Recommended Spare Parts List
RSPT : Record of Spare Parts Transfer
S&S : Standards & Specifications
SAR : Saudi Rial
SA : Strategic Assessment
SBC : Saudi Building Code
SCC : Safety Completion Certificate
SCN : SoR Change notice
SC : Supply Chain
SIBC : Simplified Initial Business Case
SME : Subject Matter Expert
SoR : Statement of Requirements
SPIR : Spare Parts Interchangeability Records
SPM : Supervision Consultant Project Manager
SPV : Savings Present Value
SV : Schedule Variance
SoW : Scope of Work
TAR : Total Accident Rate
TCO : Total Cost of Ownership
UFD : Utilities Flow Diagrams
UID : Utilities Instrument Diagrams
UV : Ultraviolet

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 Engineering and procurement
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VAC : Variance at Completion
VE : Value Engineering
VIP : Value Improvement Practices
VO : Variation Order
VOP : Variation Order Proposal
WBS : Work Breakdown Structure

1.2.2 Entity Departments

SWCC : Saline Water Conversion Corporation
ED : Project Economics Department
FED : Front End Development Department
HR : Human Resources
ISE : Industrial Safety & Environment Department
O&M : Operations & Maintenance
P&D : Planning and Development
PCC : Project Controls & Contracts Department
PD : Project Delivery Department
PE : Project Engineering General Department
PED : Project Execution (Delivery) Department
PGS : Project Governance and Services
SC : Supply Chain Department
TPSS : Technical Policies, Standards & Specification Department
TAP : Technical Affairs & Projects

1.2.3 External Entities

BSR : Bureau of Spending Rationalization
HCIS : High Commission for Industrial Security
MEP : Ministry of Economy and Planning
CEDA : Council of Economic Development Affairs
MEWA : Ministry of Environment, Water and Agriculture
MoF : Ministry of Finance
MoT : Ministry of Transport
NPMO : National Project Management Organization

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 Engineering and procurement
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NWC : National Water Company
SEC : Saudi Electricity Company

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 Engineering and procurement
procedure
2 Purpose

The main purpose of this procedure is to describe the activities performed and
deliverables prepared during the Detailed Engineering Design and Procurement phases
of a project. These activities and deliverables form a part of the Execute Stage of the
SWCC Stage Gate system. The Stage Gate system is introduced in more detail in Project
Gating System Procedure 371 and is illustrated below.

Figure 1: Overview of the SWCC Stage Gate Process

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 Engineering and procurement
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The Execute Stage includes several phases, as illustrated in the Figure 2. The phases
can overlap partially (e.g. procurement for long lead items can start during Engineering
phase, Construction can start before finalizing the Procurement, etc.).

Figure 2: Overview of the Execute Stage within the Stage Gate process

The focus of this document is on the Engineering Design and Procurement phases shown
above, which starts with the kick-off meetings with the Contractor after the Tender Award
and officially ends with the start of Construction. However, teams formed during the
Engineering Design phase remain active to support the Construction and Commissioning
phases.

This procedure aims to describe the activities for designing a facility cost-effectively and
in compliance with agreed requirements and applicable codes and standards and
achieving the procurement of materials to realize this design. These two phases are
closely linked to the Select and Define Stages that precedes them.

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 Engineering and procurement
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3 Scope

This procedure shall be applied to all Capital Expenditure Projects funded and Executed
by SWCC TAP Sector, including Desalination and Power Plants, Water Transmission
Systems, Housing & Civil Works and any other types of projects.

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 Engineering and procurement
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4 References

This document refers to the following procedure:

• Project Gating System Procedure 371

• Value Improvement Practices Procedure 3714
• Construction and Pre-commissioning Procedure 3724
• Commissioning Procedure 3725
• Project Control and Reporting Procedure 3731
• NPMO’s Volume 6, Chapter 6, CAD Standards Procedures (EPM-KE0-PR-
000008_000)

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 Engineering and procurement
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5 Process

5.1 Document submission and review process

5.1.1 General

The Contractor shall submit all documentation, information, drawings, schedules and any
other file in such way and time that guarantee a smooth handling of the Project without
having any delay impact.

The Quality of the documents submitted by the Contractor shall meet international
standards and allow for a quick and effective checking of the same. Supervision
Consultant’s project Manager decides whether the quality of the documents received is
acceptable and return them for improvement if deemed necessary.

The Contractor shall submit all drawings, curves, diagrams graphs, calculation notes and
all such information necessary to verify the compliance with Contract of the goods to be
build / installed.

Furthermore, the Contractor shall state in writing that all documents submitted for approval
have passed the relevant Contractor’s QA/QC procedure and it is in accordance with the
Contract, this shall be by either notation on the document or on the cover page of the
submission.

SWCC will define the numbering system to be used in the project, (e.g. AKZ or KKS). The
Contractor shall follow the same numbering for all the Equipment.

The durations (for submission, review, resubmission, etc.) mentioned on this procedure
refer to calendar days and are applicable to all projects in SWCC. Special conditions
(shorter durations) may apply to Fast tracked projects, for these cases, SWCC shall
include the special conditions applicable to these Contracts during the tender phase.

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 Engineering and procurement
procedure
5.1.2 Documents formats and submissions

One of the first documents to be submitted by the Contractor shall the Master Deliverable
Register (MDR), within 8 weeks of Contract Signature. The MDR, based on the project
Program shall detail the documentation to be submitted, a short explanation and the
tentative date of submission, indicating the purpose of the submission (e.g. Approval or
information)

The sequence of submission of drawings defined on the MDR shall ensure that
general/basic design information is provided for review/approval before any detailed
engineering information is sent to the Supervision Consultant enabling the
review/approval of the deliverables without further inquiry.

SWCC and the Supervision Consultant Representatives shall have the right to see at any
reasonable time in the offices of the Contractor or they subcontracted design consultant
all deliverables of any portion of the Work as per Contract obligations.

The Contractor shall prepare all necessary drawings, layout drawings, assembly
drawings, and detailed drawings giving full and complete information about the system to
SWCC or its representatives to enable proper and timely review the design of the Works.

The Contractor shall submit all drawings in accordance with the Master Deliverable
Register. Each submission shall be accompanied by a document transmittal sheet
containing information, e.g.:

• Serial number
• Document number
• Document title
• Document revision Code
• Document Revision Status
• Planned Issue date

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 Engineering and procurement
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• Current Issue date
• Other relevant info

All drawings submissions shall comply with the NPMO’s Volume 6, Chapter 6, CAD
Standards Procedures (EPM-KE0-PR-000008_000)

All drawings shall be plotted to scale and shall show the scale of the metric system. Any
descriptive wording shall be in the English language only.

The Contractor is responsible for the submission of all the deliverables related to the
project. Specific deliverables (drawings) from sub-Contractors shall be submitted directly
by the Contractor, after careful review and ensuring quality compliance. The Contractor
shall submit the deliverable stating his approval (with signature)

The Contractor shall submit softcopies of all submissions as per the Contract terms. The
soft copies shall include the electronic native files (e.g.: .dwg for cad drawings, .xls for MS
Excel, .doc for MS Word, .mpp for MS project, xer for Primavera, .ppt for MS PowerPoint,
etc.).

All the submitted designs shall be in accordance with the design requirements defined in
the Contract.

Any documents different from drawings shall be submitted in A4 size with a cover page
including title block, e.g.: calculations, studies, reports, lists, schedules.

All documents submitted by the Contractor shall be head by the same header as per
SWCC requirements.

The Contractor shall submit all the deliverables to the Supervision Consultant Project
Manager, copying the Execution Project Manager.

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 Engineering and procurement
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The Contractor shall not submit large quantities of deliverables under one submission,
unless defined in this way in the approved Master Deliverable Register. In that case the
revision time for the Supervision Consultant shall be extended.
Not Applicable
5.1.3 Approval process

No construction work shall start on the site without the Approved for Construction (or
Issued for Construction) from Supervision Consultant.

Figure 3:SWCC document approval process

Following reception of the deliverables, the Supervision Consultant Project Manager, shall
issue his recommendation to the Execution Project Manager within 14 days.
Not Applicable
The Execution Project Manager shall return his comments to the Supervision Consultant
Project Manager no later than 6 days. The Execution Project Team members (instructed

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 Engineering and procurement
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by the Execution Project Manager) shall start reviewing the deliverables as they receive
them from the Contractor to minimize the response time.

If the Supervision Consultant Project Manager does not receive comments (or a request
to extend the review time) from the Execution Project Manager within the stipulated 6
days, it should be understood that the Consultant’s recommendation is accepted. The
Supervision Consultant Project Manager notifies the Execution Project Manager about
this fact.

The Supervision Consultant Project Manager responds to the Contractor within one day
from receiving Execution Project Manager’s Comments and no later than 21 days from
Contractor’s submission. SWCC categories of approval are as follows:

Approved for Construction (A): the document is approved and authorizes the
Contractor to Execute the works defined on the approved submission proceed with the
works based.

Approved as Noted (B): the document has an approval in principle, but with the
reservations/comments marked by the Supervision Consultant. The deliverable needs to
be resubmitted, but authorizes the Contractor to proceed with the works considering the
reservations/comments

Rejected (C): The document cannot be approved, and the works are not authorized to
proceed.

For information only (D): This document does not require initially an approval. However,
shall the Supervision Consultant Project Manager consider necessary it can be
recategorized to “for approval” or raise comments, clarifications that shall be dealt with by
the Contractors.

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 Engineering and procurement
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For deliverables noted B, C and D with comments, the Contractor shall resubmit the
deliverable, within 21 days of reception of the revised deliverables from Supervision
Consultant. Should there be any exemption (e.g.: a comment depends on another
document and hence cannot be closed within the 21 days), the Contractor should ask for
an extension approval as early as he is made aware and always before the 21 days.

The revisions made on the deliverables shall be marked with an indication. When a
document is amended, a new revision index shall be used.

• A: 1st Submission
• B 2nd Submission
• C…Z :3rd Submission and onwards
• 0: Approved for construction or with Comments
• 1: Revision
• 2 Revision
• 3…99 3rd revision and onwards
• A0 As-Built Revision 0
• A1 As-Built revision 1
• A2…A99 3rd As-Built revision and onwards

All letters can be used as revision letters except I, O, Q, S, X and Z. These letters should
not be used as they can be mistaken for other letters or numbers (e.g.: O and Q: Zero, I:
one, S: five, etc.)

Notwithstanding the status of the document (A, B, or D), the Contractor remains
responsible for any error, omission or discrepancies on the submission. The approval of
any document shall not be considered the approval of deviations from the specifications
or Contractual terms. The Contractor shall be liable and bear any cost he may incur due
to errors in his design, (incl. delays, remedial works, etc.).

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 Engineering and procurement
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Any field change or field deviation shall be highlighted on a red-marked drawing and
approved by the Supervision Consultant Project Manager. Otherwise, Document Revision
Notice (see point 5.1.4) shall be issued to modify the Approved for Construction document.

5.1.4 Document Revision Notice (DRN)

Once the deliverable has reached the “Approved” Status, any revision thereof shall be
applied through the Document Revision Notice.

The Contractor shall fill the Document Revision Notice form. The proposed change shall
be clearly defined, explained and backed up with all relevant information attached.

Any document or deliverable affected by this proposed DRN shall be identify in the form
and the impact evaluated by the Contractor.

The change should be highlighted in the new revision of the drawing (i.e. cloud) and a
reference with the revision and the date.

The Contractor shall submit the DRN to the Supervision Consultant for review. Within 21
days, the supervision consultant shall respond accepting or rejecting the change.

If the DRN is approved, a new version of the drawing shall be issued (e.g. rev 1, rev 2,
etc.) within 21 days and the approval process re-initiates until Approved for Construction
is reached.

5.1.5 As-Built Drawings

As-Built drawings are revised construction drawings incorporating all the changes that
happened since the issue for Construction variations (e.g.: DRN, field deviations,
amendments).

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 Engineering and procurement
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During the construction, pre-commissioning and commissioning phases, the Contractor
prepares master red-marked drawings. The red marks show changes made to Approved
for Construction drawings during construction, pre-commissioning and commissioning
(points where the built facility differs from the version in the Approved for Construction).
The red-marked drawings should highlight only minor changes on the Approved for
Construction, if there are major changes during construction, a DRN should be issued and
a new revision of the drawings submitted.

The Contractor shall only use the latest Construction drawings (together with the red-
marked drawings) to generate the As-Builts. All the construction drawings shall be
corrected and updated with the as-constructed situation.

The Contractor shall submit to the Supervision Consultant the As-builts drawings within 3
months of reception of Mechanical Completion certificate (MCC). The Supervision
Consultant Project Manager checks with the site Engineer the incorporation of all the
changes on the drawings (field deviation, DRN, etc.). All cloud marks, revision elements
from previous changes shall be removed. The only clouds to appear on the first set of as-
builts are the ones related to DRN never incorporated to the drawings and/or field
deviations. The first as build revision is A0.

The Approval of the As-Built drawings is mandatory for obtaining the Preliminary
Acceptance Certificate (PAC), the approval process is as defined in point 5.1.3

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 Engineering and procurement
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5.2 Engineering Design and Procurement phases

Figure 4: Main Activities in design and procurement phases

After the formal Contract kick-off meeting, the Execution Project Manager arranges and
chairs a meeting with the Supervision Consultant, Execution Project Team and any
relevant stakeholder to the project (PED, O&M, SCD, etc.). The meeting agenda shall
cover:

• Review of project team organization & mobilization plan

• Review of critical activities for the next 4 weeks
Not Applicable
• Review of preparatory works for the detailed kick-off meetings for Engineering
Design and Procurement phases of the Execute Stage. The agenda for these
meetings is finalized and final alignment between internal stakeholders is ensured
before the start of the Detailed Engineering phase. Meeting dates shall also be set
here.

The Execution Project Manager finalizes and shares the agenda and date for the
Engineering Design and Procurement phase kick-off meetings with the Contractor.

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 Engineering and procurement
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The Execution Project Manager arranges and chairs the Engineering Design kick-off
meeting. At minimum, the issues to be addressed and aligned during the meeting are:

• Contractor’s 4-week look-ahead schedule, covering all the detailed activities until
Contractor’s level 3 & 4 schedule is issued and approved
• Details related to the detailed design, including:
o Standards for design documents (drawings, specifications, Equipment data
sheets, Material Take-off, calculation notes, etc.)
o Technical standards, codes and specifications to be applied
o Master Deliverable Register (MDR) –SWCC’s minimum expectation on Master
Deliverable Register (MDR) shall be clearly articulated in the Technical bid
documents used for Contractor Selection. In addition, it is also expected the
SWCC Procurement team shall ensure that the Contractors understand
SWCC’s minimum expectation on Engineering MDR during Contractor
Selection process
o Engineering procedure, covering document numbering system, revision control
system, document management procedure including tools (CAD, etc.) and IT
interfaces, document turn-over, etc.
o Document Revision Notice as management of Change procedure for
Engineering deliverables
• Engineering Progress Control and Coordination, covering:
o The detailed method for engineering progress measurement based on Earned
Value Man-hours shall be developed. Following are some key steps to ensure
that the measurements are robust
- Man-hours are assigned to each item in Engineering MDR by status of
progress. For example, Electrical Cable Diagram is a key engineering
document. It is issued in three phases, namely Issued for Approval,
Approved for Construction, Issued As-Built. Man-hours need to be
considered separately for all these three phases as shown in the example
below:

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 Engineering and procurement
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Document Name Stage Man-hours

Issued for Approval 200

Piping Layout Plan

Approved for Construction 50

Piping Layout Plan

As-Built Drawings 50
Piping Layout Plan

- While distributing the man-hours across different phases of same

document, it should be noted that adequate emphasis is given to later
phases of the project. The man-hours shall be accurate and reflect the
reality to avoid deviation between real and measured Earn Value.
- Over time SWCC shall develop its own standard for man-hours required
for each Engineering deliverable as per SWCC standard MDR.
o The schedule for regular project and technical coordination meetings (weekly,
monthly, etc.)
o Details of Contractor’s reporting, including reporting frequency, typical table of
contents and progress templates for progress reports
o Communication and correspondence rules with dedicated number system
o 65% / 90%/ 100% design review dates and a clear articulation of minimum
deliverables for 65% / 90%/ 100% design review
• Review of key milestones and design deliverables to support permit requirement

The Execution Project Manager arranges and chairs the Procurement kick-off meeting.
The main issues to be addressed and aligned during the meeting, but not limited to, are:

• Procurement process and finalization of Procurement standards, including:

o Standards for procurement documents:
o Potential supplier/sub-Contractors list
o Pre-qualification process
o Instruction for Tenders
o Request for Proposals

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 Engineering and procurement
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o Procurement procedure covering purchase orders (PO):
o procurement document numbering system,
o approval matrix and
o approval steps for bidders list
o tenders and Contract documents
o Technical standards, codes and specifications to be applied
• Procurement Control and Coordination, including:
o The detailed method for procurement progress measurement based on Earned
Value Man-hours and Contractor tools to support this method
o The pattern and calendar for procurement coordination meetings

Note: For projects less than 100 Million SAR, the Project Manager may organize a single
kick-off meeting to cover both Detailed Engineering and Procurement phases. On the
other hand, for projects more than 100 Million SAR, the Detailed Engineering and
Procurement kick-off meetings may be followed by detailed kick-off meetings for each
engineering discipline.

The Contractor develops and issues (within one week after kick-off meetings) all
deliverables committed during kick-off meetings and the Project Management team swiftly
reviews/comments and approves the final versions of these documents.

The Contractor submits (within four weeks after kick-off meetings), the Contract time
schedule that shall include:

• Time Schedule Level 2, identifying the detailed Contract critical path from start until
Preliminary Acceptance Certificate; this schedule shall highlight key milestones
along the way such as design reviews and HAZOP, critical equipment from data
sheet issue to PO award and delivery on site, key permit requirements, issue of
first Approved For Construction (A) drawings for earthworks and foundations, start
of construction activities, installation of main equipment, and completion of
construction for each main area. The critical path can be clearly identified in this
schedule.

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 Engineering and procurement
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• Time Schedule Level 3 for Engineering Design and Procurement that shall further
detail the corresponding activities/tasks. This schedule shows the issue of main
deliverables for each design discipline/area (as per MDR), 65% / 90%/ 100%
design review milestones, highlighting the first and last deliverables. It shall also
show, for each equipment and bulk material, the different procurement steps such
as the pre-qualification, Selection of Contractor, PO award (including approval
process as applicable), inspection dates (FAT as appropriate) and delivery on site
• Time Schedule Level 4 shall detail all the documents as per Master Deliverables
Register (MDR) with man-hours estimates and agreed progress milestones; further
details about this document can be found in Project Control and Reporting
Procedure 3731 Progress S-curves for overall Contract, for overall Engineering
Design and for overall Procurement, for each design discipline and for each area

The Supervision Consultant Project Manager reviews Time Schedules provided by the
Contractor and provides a response as per the approval process described in point 5.1.

The Contractor issues, within 5 weeks from Contract Signature, a Design Review
procedure (or Engineering Quality Review procedure) that shall include the proposed
detailed methods for organizing and conducting the different design reviews (65%, 90%,
100%), constructability reviews, model 3D reviews (when appropriate). It should also
describe the follow-up mechanism for all the actions that originate from these reviews and
sessions

The Supervision Consultant Project Manager team reviews the Contractor’s Design
Review procedure and provides feedback/requests updates prior to formal approval.

The Contractor issues for approval the Quality Management Plan for all design
deliverables, project equipment and material (within 5 weeks from Contract Signature).
This plan details the proposed criticality rating, the resulting inspection plan including FAT
requirements, the expediting plan and the QC resourcing strategy.

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 Engineering and procurement
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The Supervision Consultant QA / QC reviews the Quality Management Plan for its
adherence to pre-defined specifications and requirements and provides an evaluation to
the Supervision Consultant Project Management.

The Execution Project Team, Supervision Consultant Project Manager and the Contractor
Project Manager agree and decide on the mobilization of the Construction Manager and
the Site HSE Manager.

The Contractor develops the Engineering Design in accordance with the BDEP, SoW and
the agreed schedule and submits its deliverables for review and approval to the
Supervision Consultant Project Manager (according to the submittal requirements agreed
to in the Contract), as per the agreed Master Deliverable Register.

The Contractor conducts the Procurement process in accordance with the approved
detailed design, agreed schedule and submits deliverables for review and approval to the
Supervision Consultant Project Manager (according to the submittal requirements agreed
to in the Contract).

The Supervision Consultant QA / QC reviews the Contractor’s design from a quality

assurance perspective. More specifically, the QA/QC ensures that key quality
specifications are followed in Detailed Engineering, especially in ‘Approved for
Construction’ (A) drawings issued by the Contractors. The Contractor discipline engineer
shall review and validate all submission from a technical compliance, below are some
examples of what must be checked at this step of the design phase of the project:

• Piping – right specifications for material, pipe thickness, bends, welding specs etc.
• Electrical – right specs for cable type, cable thickness, cable segregation
methodology, special requirements for process safety and emergency safety (e.g.,
line monitoring)

Procedure No. 3723 Rev 001 Page 27 of 38

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 Engineering and procurement
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• Testing specifications for construction, pre-commissioning and commissioning –
right specs for key tests such as pneumatic test, hydro test, electrical point to point
test, electrical loop test
• Painting specifications

The Supervision Consultant Project Manager reviews the Contractor’s Engineering

Design and Procurement deliverables and provides feedback/requests updates prior to
formal approval.

The Contractor issues weekly and monthly progress reports in accordance with the
Control and Coordination procedures and as per Project Control and Reporting Procedure
3731.

The Execution Project Manager, the Contractor Project Manager and Supervision
Consultant Project Manager meet on weekly basis to review the progress and follow up
actions list. The minutes of these meetings shall be prepared by the Supervision
Consultant Project Manager. These minutes shall be approved by the 3 parties, relevant
actions shall be identified, assigned to Project Management team members and tracked.

The Contractor and Supervision Consultant Project Manager hold each detailed design
review according to the agreed schedule and procedure (as per Design Review procedure
defined earlier). Supervision consultant and Execution Project Team QA/QC
representatives also attend these meetings to make sure that all the key QA/QC aspects
are covered. The minutes of these meetings shall be kept by the Supervision Consultant
Project Manager. These minutes shall be approved by both parties, relevant actions shall
be identified, assigned to Project Management team members and tracked. The
Supervision Consultant Project Manager shall ensure the unity of the action tracking
system; that is, ensure that a single action tracking system is in operation.

The Contractor submits its detailed Construction and Pre-commissioning schedule (latest
12 weeks after Contract Signature) including:

Procedure No. 3723 Rev 001 Page 28 of 38

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 Engineering and procurement
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• Time Schedule Level 3 schedule for construction, that details the construction
activities/tasks for each discipline and area from site opening and preparation until
the Preliminary Acceptance Inspection. Critical path shall be clearly identified and
interfaces/links with Level 3 Engineering Design & Procurement schedule activities
shall be clearly highlighted (issue of Approved for Construction drawings per
discipline/area and delivery dates for every equipment and material).
• Construction Manpower histogram supporting the above schedule, showing details
of estimated direct man-hours and FTEs (full time equivalents) for each discipline,
and estimated FTEs for indirect and site supervision team
• Construction progress S-curves for overall construction and per area and discipline

The Supervision Consultant Project Manager reviews, consults with Execution Project
Manager, and provides feedback for the Contractor’s Level 3 Construction and Pre-
commissioning schedule and approves it when finalized; details of this process can be
found in Construction and Pre-commissioning Procedure 3724.

The Execution Project Manager, Supervision Consultant Project Manager and the
Contractor Project Manager agree and decide on the mobilization of the Contractor
Commissioning Manager (no later than 8 weeks after Contract Signature) to ensure that
preparation activities for Commissioning can start - details of the Commissioning process
can be found in Commissioning Procedure 3725.

The Supervision Consultant Team reviews the data from vendors Purchase Orders as it
becomes available. The Contractor then incorporates vendors’ data into final design and
resubmits corresponding deliverables for final approval prior to Approved for Construction
formal approval.

The Contractor’s procurement team contacts vendors for timely submission of vendor data
in accordance with Purchase Orders terms.

Procedure No. 3723 Rev 001 Page 29 of 38

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 Engineering and procurement
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In addition, the Supervision Consultant shall hire an external Consultant to perform the
Value Engineering (VE 2) as defined in the Value Improvement procedure (see Value
Improvement Practices Procedure 3714). The external Consultant shall be a specialized
and certified Consultant and shall be approved by SWCC through a pre-qualification
process.

The Contractor issues Approved for Construction (A) documents to the construction site.

Supervision Consultant Project Manager ensures that the Contractor’s design team
remains mobilized to provide support to construction.

Supervision Consultant Project Manager ensures that the Contractor remains adequately
staffed to support the preparation of final documentation.

Supervision Consultant Project Manager and Contractor team gradually demobilize as the
Construction and Pre-commissioning process approaches completion. The
demobilization plan should be part of the Contractor’s site mobilization plan. The
demobilization process shall continue until the issuance of the Preliminary Acceptance
Certificate (PAC).

The Detailed Engineering Design, the as-Built records and the Project Schedule are key
deliverables for the Execute Stage as define in the project gating procedure (see Project
Gating System Procedure 371).

Procedure No. 3723 Rev 001 Page 30 of 38

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 Engineering and procurement
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6 Responsibilities

As the Owner for the Execute Stage of the Stage Gate process, the accountability for the
completion of Engineering Design and Procurement phase activities is on Execution
Project Manager.

The responsibilities are mainly delegated to Supervision Consultant Project Manager. Due
to the nature of the activities performed, there are multiple responsible parties involved in
these phases. The specific responsibility allocation among these parties is detailed in the
in Section 5.

Item Activities Responsible

Document submission and review process

1. The Contractor submits the deliverables in compliance with the Contractor
Contract under “issued for approval”

2. The Supervision consultant reviews the submission and Supervision

responds to Contractor with an A, B, C or D accordingly, Consultant
incorporating any comment received from the Execution Project Project Manager
Manager

3. The Contractor submits the deliverables as “Issued for Contractor

Construction”

4. The Supervision consultant reviews the submission and Supervision

responds to Contractor with an A, B, C or D accordingly, Consultant
Project Manager

Procedure No. 3723 Rev 001 Page 31 of 38

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 Engineering and procurement
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Item Activities Responsible

incorporating any comment received from the Execution Project
Manager

5. The Contractor submits the deliverables as “Approved for Contractor

Construction”

6. The Supervision consultant reviews the submission and Supervision

responds to Contractor with an A, B, C or D accordingly, Consultant
incorporating any comment received from the Execution Project Project Manager
Manager

7. The Contractor submits the Document Review Notice (DRN) Contractor

deliverables as “Approved for Construction”

8. The Supervision consultant reviews the Document Review Supervision

Notice (DRN) and responds to Contractor with approved or Consultant
rejected incorporating any comment received from the Project Manager
Execution Project Manager

9. The Contractor submits As-Built drawings incorporating any Contractor

red-marks

10. The Supervision consultant reviews the submission and Supervision

responds to Contractor with an A, B or C accordingly, Consultant

incorporating any comment received from the Execution Project Project Manager
Manager

Procedure No. 3723 Rev 001 Page 32 of 38

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 Engineering and procurement
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Item Activities Responsible

Engineering Design and Procurement phases

1. Following the formal EPC Contract kick-off, the Execution Execution
Project Manager arranges and chairs a meeting with the Project Manager
Supervision Consultant, Execution Project Team and any
relevant stakeholder to the project (PED, O&M, SCD, etc.)
(Detailed Engineering Design kick-off and Procurement kick-
off) and sets their dates

2. The Execution Project Manager arranges and chairs the Execution

Engineering Design kick-off meeting with the Contractor’s team Project Manager

3. The Execution Project Manager arranges and chairs the Execution

Procurement kick-off meeting with the Contractor’s team Project Manager

4. The Contractor issues all the procedures, as agreed during the Contractor
kick-off meetings

5. The Supervision Consultant reviews and approves the Supervision

procedures issued by the Contractor Consultant
Project Manager

6. The Contractor submits the Contract schedule (including Level Contractor

2 and 3 network schedules and Level 4 Master Deliverables
Register)

Procedure No. 3723 Rev 001 Page 33 of 38

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 Engineering and procurement
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Item Activities Responsible

7. The Supervision Consultant reviews and approves the Contract Supervision
schedule issued by the Contractor Consultant
Project Manager

8. The Contractor submits the Design Review Procedure Contractor

9. The Supervision Consultant reviews and approves the Design Supervision

Review Procedure issued by the Contractor Consultant
Project Manager

10. The Contractor submits a Quality Management Plan for all Contractor

design deliverables, project equipment and material

11. The Supervision Consultant QA / QC reviews the Quality Supervision

Surveillance Plan and provides recommendation to the Consultant

Supervision Consultant Project Manager. Supervision Project Manager
Consultant Project Manager reviews and approves the Quality
Management Plan issued by the Contractor

12. The Execution Project Team, Supervision Consultant Project Execution

Manager and the Contractor Project Manager decides on the Project Manager
mobilization of the Construction Manager and the Site HSE
Manager (jointly with the Contractor)

13. The Contractor develops the Engineering Design according to Contractor

agreed schedule and submits deliverables

Procedure No. 3723 Rev 001 Page 34 of 38

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 Engineering and procurement
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Item Activities Responsible

14. The Contractor conducts the Procurement process according Contractor

to agreed schedule and submits deliverables

15. The Supervision Consultant QA / QC reviews the Contractor’s Supervision

design from a quality assurance perspective and ensures all Consultant

quality specifications are covered Project Manager

16. The Supervision Consultant Project Manager reviews and Supervision

approves Contractor’s Engineering Design and Procurement Consultant

submittals Project Manager

17. The Contractor issues weekly and monthly progress reports Contractor

according to agreed procedure

18. Execution Project Manager, the Contractor Project Manager Execution

and Supervision Consultant Project Manager meet on weekly Project Manager

basis to review the progress and follow up actions list

19. The Contractor submits its detailed Construction and Pre- Contractor

commissioning schedule

20. Supervision Consultant Project Manager reviews, consults with Supervision

Execution Project Manager, and provides feedback for the Consultant

Contractor’s Level 3 Construction Project Manager

Procedure No. 3723 Rev 001 Page 35 of 38

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 Engineering and procurement
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Item Activities Responsible

21. The Supervision Consultant Project Manager and the Execution

Contractor Project Manager agree and decide on the Project Manager

mobilization of the Contractor Commissioning Manager

22. The Supervision Consultant Team reviews the data/drawings Supervision

from PO vendors (jointly with the Contractor), which is Consultant

integrated into final design Project Manager

23. The Contractor’s Procurement expedites with the vendors for Contractor

submission of vendor data

24. The contractor performs value Engineering to the detailed Contractor

design and includes any approved improvement to the final

design

25. The Contractor issues Approved for Construction documents Contractor

26. The Supervision Consultant Project Manager monitors and Supervision

ensures that the Contractor has enough resources to support Consultant

construction Project Manager

For projects where the Supervision activities are Executed directly by SWCC (no
Consultant has been appointed for that the supervision) all the tasks assigned to the
Supervision Consultant Project Management are assigned to the Execution Project
Manager.

Procedure No. 3723 Rev 001 Page 36 of 38

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 Engineering and procurement
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The Contractor shall submit to the Execution Project Manager a full copy of any
documentation submitted to the Supervision Consultant, unless stipulated differently by
the Execution Project Manager for specific documents.

The Supervision Consultant Project Manager shall submit to the Execution Project
Manager a full copy of any documentation submitted to the Contractor, unless stipulated
differently by the Execution Project Manager for specific documents.

Procedure No. 3723 Rev 001 Page 37 of 38

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 Engineering and procurement
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7 Appendix

7.1 Master Deliverable Register Template

Procedure No. 3723 Rev 001 Page 38 of 38

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