Saudi Aramco Manual: Project Sponsor (PS) Guide For Type C & C1 Projects

Saudi Aramco Manual
30 March 2016
Project Sponsor (PS) Guide for Type C & C1 Projects
Document Responsibility: Capital Program Efficiency Dept. / Capital Efficiency
Performance Division
Project Sponsor (PS) Guide

For Type C & C1 Projects
Previous Issue: New Next Planned Update: TBD

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Primary Contact: Al-Awadh, Abdulhameed (awadhad) on +966-13-8809420
Copyright©Saudi Aramco 2015. All rights reserved.

Document Responsibility: Capital Program Efficiency Dept. / Capital Efficiency Performance Division
Issue Date: 30 march 2016
Next Planned Update: TBD Project Sponsor (PS) Guide For Type C & C1 Projects
TABLE OF CONTENTS
1 INTRODUCTION AND EXECUTIVE SUMMARY 3
1.1 INTRODUCTION 3
1.2 EXECUTIVE SUMMARY 3
2 PROJECT SPONSOR ROLE DESCRIPTION 4
2.1 APPOINTMENT OF PROJECT SPONSOR 5
2.2 PROJECT SPONSOR INTERACTION WITH STAGES, PHASES, AND GATES 6
2.3 GENERAL DUTIES OF THE PROJECT SPONSOR IN PHASES, STAGES AND GATES 8
2.3.1 Maintaining Stakeholder Alignment 8
2.3.2 Ensuring Quality Decisions and Complete Deliverables 8
2.4 PROJECT SPONSOR INTERACTION WITH FUNCTIONAL ORGANIZATIONS 9
2.5 LEVEL OF PROJECT SPONSOR INVOLVEMENT 9
2.5.1 Involvement by Project Phase 9
2.5.2 Involvement by Project Complexity – Project Types 10
2.6 PROJECT SPONSOR DECISION MATRIX 10
3 CPED ROLE 11
APPENDICES 12
ACRONYMS 12
GLOSSARY 13
APPENDIX A: ROLE AND RESPONSIBILITIES IN STAGES, PHASES AND GATES 16
APPENDIX B - PROJECT SPONSOR SELECTION 22
APPENDIX C - IPT ORGANIZATION 23
APPENDIX D - TRANSLATING BUSINESS REQUIREMENTS INTO OBJECTIVES 24
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1 Introduction and Executive Summary

1.1 Introduction
This guide’s objective is to explain the Project Sponsor’s (PS) role and
responsibilities as a key Capital Efficiency process owner for C/C1 Type
projects. This guide also describes important elements of the enhanced Capital
Management System (CMS).
This is not a standalone document. This guide references Saudi Aramco
procedures, tools and processes to assist the PS.
1.2 Executive Summary
Appointed by the Proponent Organization, the Project Sponsor has the
responsibility for meeting the project’s business objectives and maximizing the
potential value of the capital investment. In addition, the Project Sponsor has
direct accountability for the success or failure of a project.
The Project Sponsor is usually a member of Management for Type C/C1 projects
and an Executive for Type A and B projects. The PS can be a General Manager
for Type B Projects.
Project Type Project Sponsor
A Executive
B Executive or General Manger
C, C1 Manager
Project Types
The Project Sponsor actively engages and has the responsibility to:
 Safe guard the implementation of the FEL Stage and Gate process including
ensuring independent project Value Assurance reviews before each FEL
Gate. The PS also ensures that the project team has a response plan in place
to address and resolve Value Assurance findings/recommendations
 Ensure all necessary studies are completed and considered by the Integrated
Projects Team (IPT) prior to selection of the appropriate alternatives/options
for the project including decisions on trade-offs between cost, schedule, and
operability/functionality
 Confirm and clarify project business requirements and feasibility
 Decide on establishing and monitoring project targets, e.g., cost, schedule,
capacity, scope, etc.
 Support the IPT Leader in resolving issues/risks that threaten project success
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 Enforce discipline necessary to properly plan and execute the project to avoid
rework of FEL Phase/Stage and/or major late design changes
 Ensure IPT alignment and team continuity is maintained and support the IPT
leader in interactions with Functional Departments to ensure their direct
involvement in the project’s activities and deliverables
 Identify all stakeholders and ensure that they are all engaged and aligned
 Approve or reject changes to the project
 Present reliable and unbiased information to the Decision Maker
The Saudi Aramco Capital Management System CMS includes a set of checks
and balances such as Target Setting (TS) and Value Assurance (VA) to aid the
Project Sponsor and provide guidance as the project progresses.
2 Project Sponsor Role Description

The Project Sponsor guides the translation of business requirements into detailed business
objectives (See Appendix D). The Project Sponsor makes trade-offs between cost,
schedule, and facilities operability. Those decisions are guided by the project priorities
established by the Decision Maker. It is the Project Sponsor’s responsibility to
communicate the objectives clearly to the IPT Leader (See Appendix C), to ensure the
team has sufficient resources to do their work, and to overcome obstacles that threaten
project success.
It should be noted that the Project Sponsor has a responsibility not only for project
delivery, but also for the project to successfully follow the CMS process through all
Stages, Phases, and Gates. Overall success is achieved only with both objectives fulfilled.
The Project Sponsor is not the only authority determining a project’s readiness to proceed
to the next Phase. At Decision Gates, the Decision Maker decide on the project’s
readiness to pass the Gate and proceed to the next phase.
The IPT Leader manages the IPT’s day-to-day activities and reports to the Project
Sponsor. Figure 1 illustrates the links among the Decision Maker, the Project Sponsor,
and the IPT Leader.
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Figure 1. Interaction between Decision Maker, Project Sponsor and IPT

Leader
The Project Sponsor decides on the project’s scope of work. With this authority, the
Project Sponsor has sufficient control over the project scope to ensure success.
The Project Sponsor position is an assignment that lasts for the duration of the project,
delegated by the organization that directly benefits. Normally, the Project Sponsor will
be involved in managing or operating the asset created by the project.
The Project Sponsor is responsible for presenting the project’s expected benefits, costs,
and schedule to management. Once endorsed, the Project Sponsor guides the IPT Leader
and relies on the IPT to develop feasible technical scope alternatives to achieve the
business objectives and develop a robust execution strategy. The IPT Leader is
responsible for executing the project with discipline and sufficient oversight in order to
meet the targets established at ER Funding within a reasonable level of variance.
As the Project Sponsor decides on the project’s scope, he has authoritative input into what
the project needs to accomplish, how it will be accomplished, and what are the
compromises required. Subject to a proper level of checks and balances (e.g. Target
Setting and Value Assurance), the Project Sponsor makes informed decisions on the
technical and strategic alternatives presented by the IPT. The Project Sponsor weighs the
benefits, costs, and risks of each alternative against the project’s business goals, priorities,
and constraints.
2.1 Appointment of Project Sponsor
At the beginning of FEL 1, the Proponent organization is responsible for
appointing a Project Sponsor by issuing a “PS Appointment” letter to FPD and
CPED Managers.
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In the event of Project Sponsor change, a proper turnover by the initially

assigned Project Sponsor to the replacement sponsor should take place. This
turnover should cover, at a minimum, project status, decisions made, and
associated project risks and should be preferably conducted in a meeting
facilitated by the IPT Leader. In such cases, a “PS Assignment Change” letter is
to be issued to CPED and FPD Managers notifying them of the changes.
2.2 Project Sponsor Interaction with Stages, Phases, and Gates
The Project Sponsor role and responsibilities are described in detail in Appendix
A. Figure 2 shows a summary of the Stage, Phase, and Gate process.
Figure 2. Saudi Aramco Stage, and Gate Work Process

Prior to Gate 2, at the end of DBSP Phase, the Project Sponsor directs the IPT
Leader as follows:
 As the “process guardian”, ensures that the CMS process is followed
 Builds and maintains an IPT, and ensures constant IPT alignment and team
continuity
 Supports the IPT Leader in interactions with functional departments to ensure
that they remain directly involved in the project’s activities and deliverables
 Supports the IPT Leader by addressing obstacles that threaten project success
 Establishes and Approves the initial project targets, e.g., cost, schedule and
operability through the Target Setting work process
 Guides decisions on project scope, project strategy, facility quality, and
schedule
 Facilitates alignment between internal and external stakeholders on
objectives, scope and strategies
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 Confirms the project’s Business Case which includes the project’s

economical, commercial and technical feasibility assessments and identifying
viable options/alternatives to study further in the next FEL2/Study Phase
 Finalizes all FEL2 studies required to thoroughly analyze all
options/alternatives and guide the optimal options/alternatives
 Freezes major elements of the project scope by selecting and defining the
most optimal options/alternatives in an approval Design Basis Scoping Paper
(DBSP) by all stakeholders
After Gate 2 the Project Sponsor role shifts to one of ongoing oversight and
process guardian. At this point, business objectives have been endorsed by
Management and should not be changed unless directed by the Decision Maker.
The project scope is frozen and the project strategy is established to finalize
planning and begin execution.
At this time, the IPT Leader’s position will transition from Facilities Planning
Department (FPD) to Construction Agency.
The Project Sponsor maintains the role of facilitating trade-offs, making decisions
in case of meaningful project variances and supporting the IPT in resolving
project execution challenges.
The Project Sponsor’s role during the remaining phases is to:
 Support the IPT Leader and continue to guard the CMS process by addressing
obstacles that threaten project success
 Obtain approval for changes to business objectives
 Establish and agree on final project targets, e.g., cost, schedule, and
operability through the Target Setting work process
 Monitor the project performance for achieving the established cost, schedule
and operability/functionality targets/goals
 Approve or reject scope changes
 Maintain alignment with stakeholders
 Ensure operations’ preparation and readiness for commissioning and startup
 Facilitate the signature cycle of the Mechanical Completion Certificate
(MCC)
 Ensure safe startup of the facility, delivery of the project results and timely
closeout of the project
It is important to note that despite the change of IPT leadership after Gate 2 and
into the Execution Phases, the Project Sponsor is still responsible for providing
sufficient oversight, guardianship and direction.
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2.3 General Duties of the Project Sponsor in Phases, Stages and Gates
As the accountable entity, the Project Sponsor should address and resolve any
arising major issues that hinders the project meeting its objectives. However,
there are some general, overarching responsibilities of the project sponsor:
 Maintaining Stakeholder Alignment
 Ensuring Quality Decisions and Complete Deliverables
2.3.1 Maintaining Stakeholder Alignment
Stakeholders are individuals, groups, or organizations either internal or
external that could influence the project, or be impacted by a decision,
activity, or outcome of the project. There are other stakeholders that are
not directly represented in the IPT, including:
 Immediate beneficiary or customers
 Executive and Corporate Management
 Technical Functions such as those under Engineering Services,
Loss Prevention, etc.
 Government agencies
 Land owners
 Permitting agencies
 Joint venture partners
The Project Sponsor oversees the Stakeholder Management Plan which
identifies and details the relevant stakeholders. Moreover, this Plan
defines the project objectives through categorization and prioritization of
stakeholder needs and expectations and develops appropriate
management strategies for effectively engaging them in project decisions
and execution. The Plan also focuses on continuous communication to
address issues as they occur, manages conflicting interests and fosters
appropriate engagement in project decisions and activities.
2.3.2 Ensuring Quality Decisions and Complete Deliverables
The Project Sponsor is accountable for the quality of project decisions.
To support this accountability, the Project Sponsor is also responsible for
the timely completeness and quality of the Deliverables required by the
CMS before each Gate.
For the Deliverables where the Project Sponsor is the Decision Maker,
Project Sponsors are directly involved with the IPT. For work not directly
under the Project Sponsor’s control, such as the conceptual design or the
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cost estimate, the Project Sponsor still monitors progress and takes action
if progress falls behind schedule.
Ultimately, if the required Deliverables are not complete, the Project
Sponsor makes a decision to proceed forward or delay the associated Gate
presentation meeting.
The Value Assurance Review (VAR, see Section 3 “Role and
Responsibilities in Stages, Phases and Gates”) performed at the
conclusion of each FEL Phase provides an assessment of the
completeness and quality of the gate Deliverables. The Project Sponsor
and the IPT Leader are responsible for addressing any deficiencies
identified by the VAR.
2.4 Project Sponsor Interaction with Functional Organizations
While the Project Sponsor is responsible for the successful outcome of each
project, he needs to maintain close interaction with the Functional Organizations.
Functional Organizations in the CMS have the following responsibilities:
 Management of project portfolio, applying directives from portfolio level to
programs and projects
 Direct involvement in individual project activities and deliverables
 Development and management of guidelines, procedures, and standards
 Management of the resources in the professional disciplines
 Nominate subject matter expert to be a member of the IPT
 Provide needed support and guidance to their nominated IPT member (s) on
function-specific endorsement and controls on deliverables as needed
 Funding of capital expenditure
2.5 Level of Project Sponsor Involvement
The Project Sponsor involvement is a part-time role. The involvement of the
Project Sponsor depends on the project’s type, phase and complexity. The Project
Sponsor engagement during the project’s earlier phases is more than during the
execution and operation phases as key decisions and actions related to proper
planning are undertaken.
2.5.1 Involvement by Project Phase
The Project Sponsor’s involvement starts in the FEL 1 Business Case
Phase. At this point, enough work is done to frame the business
requirement and to test the viability of the project against a conceptual
scope of work.
The next step is to refine the business objectives and to identify the
feasible alternatives to be evaluated in the Study Phase. To avoid rework,
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it is crucial the Project Sponsor provides direction to the IPT Leader and
the IPT regarding the business objectives and range of alternatives well
before the completion of the Study Phase.
The Project Sponsor’s involvement peaks around FEL 2 Study and FEL
2 DBSP as business objectives and project scope are finalized. The Project
Sponsor actively participates in these activities, which are driven by the
IPT Leader.
As the Project Proposal Phase progresses, the Project Sponsor’s
involvement decreases as the IPT Leader will be more responsible in
driving the execution toward meeting the project’s objectives.
Unless there are deviations from the Project Execution Plan requiring the
Project Sponsor’s attention, the Project Sponsor’s involvement will be
minimized during Execution Phase.
2.5.2 Involvement by Project Complexity – Project Types
Saudi Aramco has four capital project categories, A, B, C/C1 for project
complexity, with C/ C1 having the smallest size and complexity, as shown
in Figure 4.
Figure 3. Project Characterization

Generally, the more size and complexity, the greater the involvement of
the Project Sponsor. C/C1 projects will require less PS involvement than
Type A and B projects.
2.6 Project Sponsor Decision Matrix
Detailed description of the Project Sponsor’s main responsibilities during each
project Phase is explained in Appendix A. Tasks are listed in the RAPID®
(Recommend, Agree, Perform, Input, and Decide) Matrix. The RAPID®
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highlights each project deliverable where the Project Sponsor takes action and
specifies the action required, e.g. Agree, Decide.
The Project Sponsor has the “Decision” in many cases for CMS Deliverables,
which supports the role and accountability.
In addition, to provide some contrast to the Project Sponsor role, the RAPID®
(See RAPID® on the CPED website) contains the responsibilities for the Decision
Maker, the IPT Leader, and supporting project stakeholders.
3 CPED Role
The Capital Program Efficiency Department (CPED) provides guidance to the Project
Sponsor in three ways:
1. Provides support in an advisory role to the Project Sponsor on the use of the
Capital Management System (CMS).
2. Provides guidance to the IPT and advises the team, as needed, so they can
navigate through the CMS to reach project success.
3. Performs Value Assurance Reviews (VAR) and produces reports before the Gates
to help the Project Sponsor and Decision Maker in determining the completeness
of the project Deliverables and the readiness of the project to proceed to the next
phase.
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APPENDICES
Acronyms
Acronym Term
CMS Capital Management System
CPED Capital Program Efficiency Department
DCS Distributed Control System
ER Expenditure Request
ERA Expenditure Request Approval
FPD Facilities Planning Department
GAS Gate: Alternative Selection
ID&SSD Industry Development & Strategic Supply Department
IPT Integrated Project Team
KPI Key Performance Indicator
LUP Land Use Permit
MCC Mechanical Completion Certificate
NBD New Business Development
NDE Net Direct Expenditures
ORP Operational Readiness Plan
PEP Project Execution Plan
PMC Program Management Contractor
PMOD Project Management Office Division
PPA Project Proposal Approval
PS Project Sponsor
PXP Portfolio Execution Planning
RAPID® Responsibility Matrix (Recommend, Agree, Perform, Input,
Decide – see Appendix A) to determine who makes what types
of decisions
VA Value Assurance
VAR Value Assurance Review
VIP Value Improving Practice
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Glossary
Term Definition
Business Line Committee Whereas Management Committee makes decisions on large, complex
projects, the Business committees (for the Upstream and Downstream
Business Lines) make decisions on small, less complex projects.
Characterization The Capital Management System characterizes projects into four
categories: Type A, B, C/C1 for project cost and complexity. C/C1
projects are the smallest and least complex of the project types and are
run by the Proponent Organizations.
Checkpoint While a gate in the enhanced Capital Management System is formal
(e.g. ER Funding), a Checkpoint is a less formal milestone such as
Project Proposal Approval or Mechanical Completion Certificate.
Construction Agency The responsible party leading the implementation and construction
phases of the project beginning with the FEL3 Stage. PM for Type C,
and Proponent organization for Type C1.
Decision Maker The Decision Maker for the FEL gates is represented by the Business
Line Committees for Upstream and Downstream Type C/C1 projects.
Decision Maker for all other Type C/C1 projects is not yet determined
up to the date of this revision.
Deliverable Any type of drawings, documents, specifications, etc. that are
developed or performed as an output toward planning and executing
a project.
Front End Loading (FEL) FEL is a process that divides the project lifecycle into Stages, Phases
and Gates, with defined activities and specific objectives.
Achievement of the objectives is evaluated at the gate under a well-
documented and systemized methodology. When the objectives of the
Stage are achieved, the project moves to the next Stage. At the gates,
management approval and direction is obtained.
Functional Organizations Permanent Saudi Aramco organizations
A gate represents the decision point, where a key management
Gate decision must be made before a project/program can progress to the
next Phase.
Gatekeeper The Gatekeeper for the Capital Management System’s Gates is the
Decision Support Division of Corporate Planning. Project information
required for a gate that involves a Decision Maker is transmitted to
them and per the readiness level of the project, placed on their agenda.
GES+ General Engineering Services Plus.
The objective of the General Engineering and Project
Management Services (GES+) contracts is to support the
establishment of a sustainable local engineering presence that
can provide the full spectrum of project execution expertise to
support Saudi Aramco and regional industries in a competitive
manner.
Hurdle rate Required rate of return, target rate; in capital budgeting, this is the
minimum a company expects to earn by investing in a project.
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An IPT is a temporary project team whose members are from various

functions and report to the IPT Leader on full or part time basis and
sharing the same objectives and steered by the PS. The IPT members
Integrated Project Team (IPT) represent the various functions of the Company and work within the
team coherently and responsively. Depending upon the phase of the
project, the leadership will transition from FPD to the Construction
Agency at the end of the FEL 2 DBSP Gate.
The MCC is a document used to confirm the completion of
Mechanical
construction, that the facility has been completed in accordance with
Completion Certificate
the approved Expenditure Request and project drawings, and that it
(MCC)
has been inspected and agrees with the design and engineering
specifications.
PXP is a multi-organizational, forward-looking assessment of the
Company’s 3-year and 10-year Capital Program Expenditure. PXP is
Portfolio Execution Planning designed to ensure adequate and available resources (workforce,
(PXP) materials and services) required to execute capital projects and
provide useful information for creating opportunities to support the
Kingdom’s economy.
Project Refers to a single project or program of several related projects.
The PS is a member of management for Type C/C1 projects. The PS
is appointed by the Proponent Organization, which is accountable for
meeting the project objectives. The PS steers the IPT toward
Project Sponsor (PS) maximizing investment value. Being part of the Proponent
Organization, the PS provides a single point of accountability
throughout the project lifecycle and drives trade-offs between cost,
schedule and operability.
Project Targets are measures that focus on maximizing value and
driving investment objectives toward excellence in a way that
improves historical performance and is equivalent to or better than
industry benchmarks. Targets are established in early stages of the
program/project to guide the FEL activities, decisions, studies, and
IPT commitment toward efficiency. They are linked to the
program’s/project’s main business requirements and enable
Target Setting (TS) appraising the program’s/project’s competitiveness at the Gates. The
TS process involves the IPT and is led by the PS to set targets for the
project, drive commitment and challenge the creativity of the
Functional Organizations to achieve the targets. Targets are monitored
and any variances are approved with the appropriate level of
escalation. The Facilities Planning Department (FPD) leads TS while
the Project Management Office Department (PMOD) manages the
required data repositories of benchmarking and market intelligence.
A VAR is an independent review performed by a multidisciplinary
team conducted before the two FEL Gates. The VAR assesses
Value Assurance Review project deliverables and includes appropriate identification and
(VAR) mitigation of risks, adequate planning and required contracting
strategies, maturity of designs, challenging targets and readiness to
move to the next Phase or Stage. The VAR provides
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recommendations to improve project value and supports decision-

making at the Gate.
The VAR provides:

 Management & stakeholders’ confidence on the
affordability, deliverability and predictability of projects
that have been reviewed.
 Periodic and thorough assessments for each program/project
at key decision points validating robustness of all the work
done and identification of areas that require focused
attention by the IPT, Project Sponsor and by Decision
Maker
 Enablement of timely informed decision making to
safeguard or maximize the project value
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Appendix A: Role and Responsibilities in Stages, Phases and Gates

The Project Sponsor has a role and responsibilities before Stages, during Phases, before
Gates and at Gates. Figure 4 shows an example related to the FEL2 DBSP Phase that
precedes Gate 2 (G2).
1. Target Setting: Targets are set. The targets might be for cost, schedule, and
operability or other aspects of the project.
2. Stage: Each Phase consists of specific Deliverables defined in the RAPID® for
meeting the objective and maturity levels expected at the Gate. Each Phase is a step
in the FEL process such as Initiation, Business Case, Alternative Development,
Design Basis Scoping Paper, Proposal, and Finalize FEL.
3. Pre-Gate: As the Stages complete, a Value Assurance Review (“VAR”) is performed
to determine the completeness and quality of the project Deliverables by each Phase.
4. Gate: At the Gate, the Project Sponsor presents the project to the Decision Maker and
the decision is made to move the project to the next Phase.
Figure 4. Phase, Pre-Gate and Gate

The remainder of this section describes each Stage and Gate. It also shows decisions the
Project Sponsor is responsible for.
Figure 5. FEL 1 Business Case

The objective of the Business Case (FEL 1) is to ensure the project’s feasibility
assessments are complete, and a complete range of alternatives identified.
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The Project Sponsor as the owner of the project’s Business Case confirms the project
business requirements and guides the IPT on completion of all the Business Case (FEL
1) Deliverables.
Responsibilities in support of development of the Deliverables are listed in the RAPID®
(Recommend, Agree, Perform, Input, and Decide) Matrix. The RAPID® highlights the
roles of relevant owners and actions:
 Recommend: There is only one Recommend. This is normally the

process owner and they have credibility with all Input and Decide
stakeholders. They synthesize the input (incorporating context) and ensure
appropriate individuals are consulted.
 Agree: Used only in selected decisions. They formally approve a

recommendation and have the right to challenge the Recommend. If the Agree
and Recommend cannot get aligned, the Decide breaks the deadlock.
 Perform: Executes the decision result. There may be multiple

Perform elements. In some cases, Perform may also be an Input. Perform is
not mapped in this application of the RAPID®, since the focus in the FEL is
through ERA.
 Input: Provides factual input to the recommendation. There are

usually multiple Input elements. Input is assigned only to individuals with
critical insight to the decision (to avoid Input proliferation).
 Decide: There is only one Decide. They make the decision and
commit the organization to action. More than 90% of the time, Decide
supports Recommend. If Decide belongs to a “group,” there will need to be
clarification of how it is exercised (majority vote).
The RAPID® in Table 1 lists the Project Sponsor’s responsibilities during FEL 1 Stage
Business Case.
Table 1 Responsibilities for FEL 1 Business Case Stage
IPT IPT Sr. Summary of
Project
Activity/Task Leader Leader Operations Participation of
Sponsor Functions
(FPD) (PMT) Rep.
Proposed Integrated Staffing D
D R I All
Assignment
Project Charter (Initial) D R I FPD
PMOD, FPD. CSD,
Site Selection Assessment D R EPD, LPD, IS
Target Setting D R I PMOD, FPD
FPD, FAD, EPD, CP,
Business Case Assessment (Initial) D R LPD
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Project
Activity/Task Leader Leader Operations Participation of
Sponsor Functions
(FPD) (PMT) Rep.
Procurement,
Contracting Strategy (Initial) D R I Contracting
Construction Agency,
Project Execution Plan (Initial) D R I I ID, EPD, P&SPD, LPD
VIP Outcome Implementation Reports D R PMOD, CSD, P&SPD
Schedule Level I D R PMOD, FPD
Stakeholder Management Plan D R I Construction Agency
Note: The IPT Leader is delegated from FPD for FEL 1 & FEL 2. The
FPD Representative changes roles at the end of FEL 2 DBSP and becomes
the “Design Manager” through FEL3.
Figure 6. FEL 2 Study Phase (Gate: Alternative Selection)

FEL 2 is divided into two phases: Study and DBSP. The objective of the Study Phase is
to complete alternative selection before the technical design is complete and more
detailed project planning begins.
Structured alternative selection based on SABP-A-042 is the best method for addressing
the complexity of identifying the best scope and technical design. Although the IPT
Leader and the IPT perform most of the alternative selection activities, the Project
Sponsor has a critical leadership role that includes making the final decision on the
alternative that best meets the project’s business objective. The RAPID® in Table 2 lists
the Project Sponsor’s role and responsibilities for the FEL 2 Study Phase.
Table 2 Project Sponsor Tasks for the FEL 2 Study Phase
IPT IPT Sr. Summary of Participation
Project of Functions
Activity/Task Leader Leader Operatio
Sponsor
(FPD) (PMT) ns Rep.
Project Charter (Update) D R FPD, Construction Agency
FPD, PMOD, P&CSD,
Business Case Assessment (Update) D R I I EPD, FAD, CP
FPD, PMT, PMOD,
FPD, CSD, EPD, PMOD,
Site Selection Assessment D R LPD
Schedule Level I (Update) D R I FPD, PMT, PMOD
FPD, PMT, Contracting,
Contracting Strategy (Updated) D R I Construction Agency,
P&SPD
FPD, PMT, Construction
Project Execution Plan (Updated) D R I I Agency, PMOD, ID, EPD,
P&SPD
Study Brief and Presentation D R I FPD, Operations, CP
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Sponsor
(FPD) (PMT) ns Rep.
Proposed Integrated Staffing
D R A I All
Assignment
FPD, PMT, CSD, P&CSD,
VIP Outcome Implementation Report D R I I PMOD, ID, EPD, P&SPD,
Contracting, LPD
Note: The IPT Leader role changes from FPD to PMT after FEL 2.
Figure 7. FEL 2 DBSP Phase (Gate 2: Freeze Project Scope)

The objective of the DBSP Phase is to complete the design basis while ensuring that the
project’s Business Case remains intact.
Sufficient project definition is finished by the end of the FEL 2 Study Phase to serve as
a reliable basis for the Decision Maker’s FEL 2 DBSP approval decision.
The RAPID® in Table 3 lists the Project Sponsor’s role and responsibilities for the FEL
2 DBSP Phase.
Table 3 Project Sponsor Tasks for the FEL 2 DBSP Phase
Sponsor
(FPD) (PMT) ns Rep.
FPD, PMT, Construction
Project Charter (Updated) D R I Agency
Design Basis Scoping Paper (DBSP) D R I EPD, Contracting, ID,
Construction Agency, LPD
Business Case Assessment FPD, P&CSD, FAD,
D R PMOD, EPD, CP, LPD
(Updated)
FPD, PMT, P&SPD,
Procurement strategy & material
D R I Contracting, Construction
procurement Agency
Target Setting D R A I FPD, PMT, PMOD
FPD, PMT, PMOD,
FPD, PMT, Contracting,
Contracting Strategy (Updated)1 A I R Construction Agency,
P&CSD, P&SPD
Operational Readiness Plan (ORP)
D R I I FPD, PMT
Level I
Schedule Level II D R I FPD, PMT, PMOD
DBSP Brief and Presentation D R I FPD, PMT, CP
D I R All
Assignment
Page 19 of 28

Sponsor
(FPD) (PMT) ns Rep.
VIP Outcome Implementation
D R A I PMOD, ID, EPD, P&SPD,
Report Contracting, LPD
1
Construction Agency “Decides” on Contracting Strategy
Figure 8. FEL 3 Project Proposal Phase

(Not a Gate; Project Proposal is Approved)
The FEL 3 Project Proposal Phase includes a “checkpoint” (Project Proposal Approval
or “PPA”) that separates the FEL 3 Project Proposal Phase from the Finalize FEL Phase
activities and Gate. This is to ensure engineering and project planning are complete
before the formal ER Funding process is initiated.
The objective of the FEL 3 Project Proposal Phase is to further advance the planning,
definition of engineering and execution strategy to meet the ERA requirements (±10%
estimate) and then ensure there are no changes that cause disruption to the project
Execution Phase.
The Project Sponsor role shifts from active involvement to oversight and corrective
action to address deviations from the estimates established at the end of FEL 2 DBSP
Phase. The RAPID® in Table 4 lists the Project Sponsor’s responsibilities for the FEL 3
Project Proposal Phase.
Table 4 Role and Responsibilities for the FEL 3 Project Proposal Phase
Project Operation Participation of
Activity/Task Leader Leader
Sponsor Rep. Functions
(FPD) (PMT)
Schedule Level III D I R PMOD, FPD
Construction
Contracting Strategy (Final) A I R Agency, P&CSD,
P&SPD, Contracting
Construction
Project Execution Plan (Final) D I R I Agency, PMOD, ID,
EPD, P&SPD
Construction
Procurement strategy & material
D R Agency, CSD,
procurement P&SPD, Contracting
Operational Readiness Plan (ORP)
D I I R Construction Agency
Level II
PMOD, FPD, CSD,
VIP Outcome Implementation Report D I R I P&CSD, ID, EPD,
Contracting ,LPD
Page 20 of 28
Figure 9. FEL 3 Finalize FEL Phase (Gate 3: Project Funding)

The objective of the FEL 3 Finalize FEL Phase is to ensure the integrity of the
engineering design and execution strategy before ER Funding is requested.
In the FEL 3 Finalize FEL Phase, the Project Sponsor role continues the shift from active
involvement to oversight and corrective action to address deviations from the estimate
established at the end of FEL 2 DBSP.
The RAPID® in Table 5 lists the Project Sponsor’s responsibilities for the FEL 3 Finalize
FEL Phase.
Table 5 Responsibilities for the FEL 3 Finalize FEL Phase
Sr. Summary of
Project IPT IPT Participation of
Operati
Activity/Task Sponso Leader Leader Functions
ons
r (FPD) (PMT)
Rep.
Construction
Project Charter (Final) D I R Agency, FPD
Target Setting D A R I FPD, PMOD
FPD, PMOD, EPD,
Business Case Assessment (Final) D I R CP, FAD, LPD
D R All
Assignment
Finalize FEL (ER) Brief and
D I R FPD, CP
Presentation
Figure 10. Execution and Operations

The objective of the remaining project phases is to complete the detailed design,
construct, start up and commission the facility, and hand it over to Operations.
The Project Sponsor’s involvement drops significantly during project execution unless
there are threats to successful completion of the project. The Project Sponsor is
responsible for obtaining approval from the Decision Maker on any changes to the
business objectives.
Page 21 of 28
One area of continued Project Sponsor focus is with Operations. Operations must meet
its commitments to support the project during execution and be ready for commissioning,
ramp-up and handover. The Project Sponsor is heavily involved in grassroots projects
that require the implementation of a new operating organization. The RAPID ® in Table
6 lists the responsibilities for Execution, Commissioning, and Ramp-up.
Table 6 Project Sponsor Tasks for Execution and Operations
Project Participation of
Activity/Task Leader Leader Operations
Sponsor Functions
(FPD) (PM) Rep.
Operational Readiness Plan (Final) D R A Operations
Exception Items (Completed) D R A PM
Contract Closeout D R A PM, CD
Guidance for Project Sponsor (Effect of Design and/or Scope Changes)

Design changes are modifications to the scope, technical design, or execution plans that
are necessary to meet the business objectives specified at ER Funding. Design changes
include the use of overtime to maintain the schedule if the project falls behind.
Controlling, managing, and approving design changes are the responsibility of the IPT
Leader; they are accountable for the effect of design changes on project outcomes.
A scope change is an addition of functionality or change in schedule to the project that
was not part of the original scope of work. These decisions must be addressed and
managed by the Project Sponsor.
The Project Sponsor has the authority to approve scope changes that result from
operations and maintenance requests to improve some aspect of the existing facility but
are not needed to meet the business objectives. Importantly, the baseline used to measure
the IPT Leader’s performance is modified to account for the effect of the change. The
Project Sponsor is accountable for justifying the scope change and its effect on project
outcomes.
Guidance for Project Sponsor (Overseeing EPC Contractor Performance)
Managing the EPC contractor is the IPT Leader’s responsibility. If necessary, the IPT
Leader must take corrective action early enough to minimize the impact of execution
problems on project outcomes. During Execution (EPC), the IPT Leader keeps the
Project Sponsor informed on project status and brings to the Project Sponsor’s attention
any problems with the participation of the Sr. Operations Representative.
Appendix B - Project Sponsor Selection
The general rule is that the Project Sponsor is named by the organization conducting the
project. A single Project Sponsor ensures that the timing of the individual projects and
the interfaces between projects are properly managed. Therefore, the applicable
Managers jointly name the Project Sponsor for projects with multiple Proponents.
Page 22 of 28
An exception is with programs consisting of projects with common scope or a common

technology platform that are implemented at multiple sites. The installation of
cogeneration facilities at multiple Saudi Aramco sites is an example. The Project Sponsor
drives consistency across the projects within the program and captures learning curve
benefits. Projects later in the program should be more cost and schedule efficient by
reusing engineering design, faster mobilization of contractors and vendors, and the
adoption of lessons learned from the early projects within the program.
Appendix C - IPT Organization
Overview of IPT Organization
The specific structure of each IPT will vary by project. There are no changes in the
reporting lines of the functions (e.g., Engineering Services, etc.). The IPT members are
appointed by the functions and the roles and responsibilities between the IPT and the
functions are defined for each project deliverable according to the RAPID® Matrix.
This method of organizing teams is a shift away from functionally-based project teams
to a structure referred to as “empowered IPTs.” An empowered IPT contains or is
connected to all stakeholders required to make key project decisions. An empowered
IPT includes a clear decision-making hierarchy.
Most importantly, an empowered IPT has team members aligned and committed to a set
of shared objectives.
The Project Sponsor’s authority is reinforced in two ways. First, the Project Sponsor
must be consulted on the assignment and removal of key team members. Secondly,
although team members continue to report administratively to their functional Managers,
the Project Sponsor provides input to the team members’ annual performance reviews.
IPT Leader
From Initiation through the DBSP Phase, the IPT Leader position is an FPD
representative. At the start of the Project Proposal Phase, the position of the IPT Leader
is transitioned to a representative from the Construction Agent. At this time, the FPD
IPT Leader shifts their role to that of “Design Manager.” The responsibility of the
Construction Agent IPT Leader is to manage the project’s planning, development and
execution while the FPD Design Manager leads the scope development and reports to the
IPT Leader.
To facilitate the IPT Leader transition, the Construction Agent representative is assigned
prior to the end of the Study Stage to become familiar with the project and begin detailed
project planning, since an engineering contractor (PMC or GES+) will be engaged to
develop the FEL 2 deliverables.
The Design Manager from FPD may leave the project after scope freezing at the end of
FEL 2 since their primary responsibility is complete. However, the Design Manager is
available for the remainder of the project to be consulted in regard to scope or other
Page 23 of 28
project issues. The Design Manager participates in design reviews and other major
reviews of the project, as necessary.
Senior Operations Representative
The Senior Operations Representative reports directly to the Project Sponsor rather than
the IPT Leader. The Senior Operations Representative’s primary role is to provide input
on the scope and to review the technical design. The Senior Operations Representative
also coordinates interfaces with any existing facilities such as turnaround planning,
construction permitting, and site access. At the same time, the Senior Operations
Representative plans, develops and executes the ORP and is a key constituent of all
operational elements of the project.
Operations reports to the Project Sponsor because they are from the same organization,
and it is the Project Sponsor’s duty to balance Operations’ requests for project scope and
design against the project’s business requirements. Accordingly, the Project Sponsor
arbitrates between the IPT Leader and Operations to find the best combination of facility
quality, cost, and schedule.
Appendix D - Translating Business Requirements Into Objectives
A capital project is developed and executed to meet business requirement(s) generated
by a long-term business strategy to produce a new product or improve operating
efficiency. Some examples of business requirements are:
 Meet growth in the Kingdom’s demand for transportation fuels
 Reduce the amount of oil used to produce power
 Maintain facility operation at current levels of reliability
Business requirement(s) are the basis for a project’s objectives. Objectives are the
specific, measurable statements about what the business wants to accomplish with the
project and how. These objectives are progressively refined during the Project Definition
Phase. The translation of the business requirements listed above may result in the
following objectives (for example):
 Provide sufficient fire protection coverage and drainage systems as per the revised
Company standards at distribution facilities by upgrading firefighting equipment
and improving the drainage systems
 Ensure a reliable air supply at the required pressure and maintain mandatory
instrument air spare capacity by replacing two existing air compressors at gas plant
 Enhance the facility’s safety by connecting all atmospheric relief to a closed system
and reduce the plant’s greenhouse gas emissions by installing Flare Gas Recovery
System (FGRS) at a producing facility
 Maintain the facility’s 95 percent up-time factor by replacing obsolete electrical
switchgear
Page 24 of 28
Detailed, clear objectives are the foundation for project excellence. They designate a
clear path for project definition and enable the IPT to align and integrate common goals.
Appendix E - Project Sponsor Checks and Balances
The Project Sponsor judges which technical and strategy alternatives are the best match
with the business requirement. The Project Sponsor also decides on the scope of work
necessary to meet the objectives. The Project Sponsor’s decisions must therefore be
subject to a set of checks and balances.
The checks and balances include:
(1) The Decision Maker review at the Gates that control project progress and funding;
(2) The ability of IPT members to escalate concerns to their functional management
regarding the Project Sponsor or IPT Leader behaviors or decisions.
The CMS includes two additional forms of checks and balances: Target Setting and
Value Assurance. Each of these processes was developed to create checks and balances
with independent reviews to ensure a portfolio as well as project perspective.
Role of the Functional Organizations
The Functional Organizations represent the core of capital planning and execution. Their
contributions include:
 Management of the project portfolio
 Direct involvement in project activities and deliverables
 Development and management of guidelines, procedures, standards and know-how
 Management of the resources in the professional families
 Line of authority on capital expenditures
Management of Project Portfolio
While the Project Sponsor is responsible for the success of each project, the Functional
Organizations are responsible for the successful planning and execution of the portfolio.
The role of Functional Organizations in managing the project portfolio consists of:
 Defining the project in terms of scope, estimated cost and schedule (Proponent,
Corporate Planning, FPD, PMOD, MS, NBD and others)
 Performing the activities required by the PXP (Engineering Services/FPD, Project
Management/PMOD, Corporate Planning, Procurement & Supply Chain Management
and others) to:
o Estimate the resources (workforce, materials and services) required to execute the
capital projects
o Ensure the adequacy and availability of the same resources
Page 25 of 28
o Support ID&SSD in creating opportunities to develop the Kingdom’s economy

 Considering portfolio-level trade-offs when providing Input, Agreements,
Recommendations and Decisions on each capital project, as defined by the RAPID®
 Monitoring the overall performance on the portfolio, through:
o Project Reporting and Controls
o Lessons Learned
Direct Involvement in Individual Project Activities and Deliverables
Functional Organizations are involved throughout the planning and execution process of
each project.
In the early Phases of the project through DBSP, FPD closely interacts with:
 The IPT Leader (also from FPD)
 The Project Sponsor
In the later phases of the project, from Project Proposal onward, the Execution Agency
takes the primary project leadership, closely interacting with:
 The Construction Agent IPT Leader
 The Project Sponsor
Throughout the project lifecycle, Functional Organizations leverage the technical
expertise of their resources in order to:
 Provide ‘Input’ and guidance to the IPT in the development of the project deliverables
 ‘Agree’ on relevant deliverables that define the project objectives, scope, schedule and
cost, i.e.:
o Project Charter
o Site Selection Assessment
o Business Case Assessment
o Schedule
o Cost Estimate
o Target Setting
o DBSP
 Ensure compliance with health, safety, security and environmental standards. For
example, the Environmental Protection Department needs to ‘Agree’ on the Site
Selection Assessment.
 For Construction Agent only, ‘Decide’ on selected deliverables that concern project
execution, such as:
Page 26 of 28
o PEP
o Contracting Strategy
o Material Procurement Strategy and Plan
The RAPID® defines the project deliverables for which the Functional Organization(s)
provide(s) the ‘Input’, ‘Agreement’ or ‘Decision’. The technical staff remains within
their respective Functional Organization and does not become part of the IPT.
 ‘Inputs’ can be provided by any technical staff involved in the project.
 ‘Agreements’ and ‘Decisions’ can only be provided by the “Head” – General
Manager or Manager - of the Functional Organization(s) involved according to
the RAPID®, and require cold eye reviews and/or peer reviews performed by the
Functional Organization’s technical staff.
In case one or more Functional Organizations do not provide the required ‘Agreement’
on a specific deliverable where the Project Sponsor has the ‘Decision’, this disagreement
is reported to the Decision Maker. VA reviews the positions of the Project Sponsor and
of the Functional Organization (s), and:
 Provides a recommendation on how to resolve it and proceed to the Gate; or
 Recommends the Project Sponsor hold further discussions and/or ask the IPT to
perform additional analysis
Based on the Value Assurance Review recommendations, the Project Sponsor and/or the
Functional Organization may decide to modify their positions to resolve the disagreement
before the Gate. Otherwise, the disagreement is recorded by the Gatekeeper, and the
Decision Maker resolves the disagreement at the Gate.
Functional Organizations provide support to IPTs where relevant IPT members have not
been appointed. Moreover, even when relevant IPT members are appointed, they may
request specific technical input from Functional Organizations to perform a detailed
analysis and draft a recommendation. While the Function is responsible for providing
the relevant support, this is not a shift of accountability, as the IPT remains fully
responsible for the project results.
Development and Management of Guidelines, Procedures, Standards and Know-
how
Functional Organizations develop and maintain their guidelines, procedures and
standards. Each member of the IPT should comply with such guidelines, procedures and
standards. For example, in a Construction Readiness Review:
 The Project Management Function maintains a procedure for performing the
Construction Readiness Review.
 The Senior Project Engineer performs the Review and develops (‘Recommends’) the
related Deliverable prescribed by the Front End Loading process, following the
procedure defined by Project Management.
Page 27 of 28
 The IPT Leader validates (‘Decides’) the Construction Readiness Review Deliverable
and ensures the Senior Project Engineer has applied the procedure. Any meaningful
deviation from the procedure is escalated to the Project Management Functional
Organization in charge of the project.
Functional Organizations are responsible for continuously fostering know-how.
Functional Organizations need to ensure their practices are in line with international
industry best practices, and that their knowledge base is continuously strengthened by
systemizing lessons learned from projects.
For example:
 Project Management develops and manages best practices on selecting, mobilizing
and monitoring contractors.
 Engineering Services develops new technical solutions to lower life cycle costs while
increasing reliability, safety, security and quality.
Management of Professional Capability Development
Functional Organizations manage the professional development, deployment and
performance measurement of their resources.
Professional development: Functional Organizations ensure the right training and
capability building programs to continuously keep their staff in line with best practices
and to provide them with the tools required when working on projects.
Deployment: Functional Organizations recommend the optimal resourcing for projects,
in terms of quantity and quality, considering both project and individual career
development.
Performance measurement: Functional Organizations manage the annual evaluation of
their resources, maintaining appropriate systems to ensure performance as members of
IPTs is reflected in the evaluation.
Line of Authority on Capital Expenditures
Functional Organizations retain their authority and roles on budgeting and funding of
capital projects.
The sources of project funding change across project Phases, as follows:
 Business Case and Study: NDEs managed by FPD
 DBSP: Preliminary Engineering Funds managed by Engineering Services
 Project Proposal: Preliminary Engineering Funds managed by Project Management
Page 28 of 28

Saudi Aramco Manual: Project Sponsor (PS) Guide For Type C & C1 Projects

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Saudi Aramco Manual

Project Sponsor (PS) Guide

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Copyright©Saudi Aramco 2015. All rights reserved.

1 Introduction and Executive Summary

Project Type Project Sponsor

B Executive or General Manger

2 Project Sponsor Role Description

Figure 1. Interaction between Decision Maker, Project Sponsor and IPT

In the event of Project Sponsor change, a proper turnover by the initially

Figure 2. Saudi Aramco Stage, and Gate Work Process

 Confirms the project’s Business Case which includes the project’s

Figure 3. Project Characterization

An IPT is a temporary project team whose members are from various

recommendations to improve project value and supports decision-

The VAR provides:

Appendix A: Role and Responsibilities in Stages, Phases and Gates

Figure 4. Phase, Pre-Gate and Gate

Figure 5. FEL 1 Business Case

 Recommend: There is only one Recommend. This is normally the

 Agree: Used only in selected decisions. They formally approve a

 Perform: Executes the decision result. There may be multiple

 Input: Provides factual input to the recommendation. There are

IPT IPT Sr. Summary of

Figure 6. FEL 2 Study Phase (Gate: Alternative Selection)

IPT IPT Sr. Summary of Participation

Figure 7. FEL 2 DBSP Phase (Gate 2: Freeze Project Scope)

IPT IPT Sr. Summary of Participation

Figure 8. FEL 3 Project Proposal Phase

Figure 9. FEL 3 Finalize FEL Phase (Gate 3: Project Funding)

Figure 10. Execution and Operations

Guidance for Project Sponsor (Effect of Design and/or Scope Changes)

An exception is with programs consisting of projects with common scope or a common

o Support ID&SSD in creating opportunities to develop the Kingdom’s economy

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