Bechtel Limited

COMPANY QUALITY SYSTEM PROCEDURES

PROCEDURE NUMBER QAP-209

CONTROL OF FABRICATION, CONSTRUCTION AND
INSTALLATION ACTIVITIES

4 Jan 97 Amended to comply with new JJL DB KQ

Company Procedures
3 Dec 94 To comply with ISO9001:1994 DB PKG CGM
2 Oct 92 BS5750 Part 1 changed to ISO 9001 DB TEO ML
1 Sept 89 Company Implementation ABH DB KT
0 May 89 Interdepartmental Review DB RK
REV DATE REVISION BY CHKD APPR

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Procedure Number QAP-209 Rev 4
THIS IS A CONTROLLED COPY. IF PRINTED, THE HARD COPY WILL BECOME NON-CONTROLLED
Bechtel Limited
Company Quality System Procedure No: QAP-209

CONTENTS

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

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Procedure Number QAP-209 Rev 4
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Company Quality System Procedure No: QAP-209

1 PURPOSE

The purpose of this Procedure is to establish the requirements for control of fabrication,
construction, installation and start-up activities. (Referred to jointly as ‘Production
Activities’ for the purposes of this Procedure).

2 SCOPE

Provisions of this Procedure apply to all projects and to all departments concerned in
planning, executing or controlling production activities whether carried out by
Company or by contractors with Company acting as manager or agent.

Additional or alternative requirements may be imposed by Clients.

This Procedure addresses the requirements of ISO9001:1994 Section 4.9 as defined in the
Company Quality Manual QAP-101 Section 8.9.

3 REFERENCES

National and International Standards

ISO9001 : 1994 Quality systems -

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

and Servicing

Management Documents

QAP-101 Quality Manual

Quality System Procedures

QAP-202 Review of Enquiries and Contracts

QAP-203 Project Cost Control and Planning
QAP-204 Design Control
QAP-205 Document and Data Control
QAP-207 Control of Client Supplied Materials and Equipment
QAP-208 Identification and Traceability of Materials and Equipment
QAP-210 Inspection and Testing
QAP-211 Control of Inspection, Measuring and Test Equipment
QAP-212 Inspection and Testing Status

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Company Quality System Procedure No: QAP-209

QAP-213 Control of Nonconforming Product

QAP-214 Corrective and Preventive Action
QAP-215 Handling, Storage, Packaging, Preservation and Delivery
QAP-216 Control of Quality Records

Standard Project Procedures

GPP 7EG 209 - Drawing and Document Approval

GPP 7EG 209 - Drawing and Document Approval
GPP 7EG 403 - Supplier Quality
GPP 7EG 504 - Forecasting
GPP 7EG 510 - Project Schedules
GPP 7EG 601 - Field Document Control
GPP 7EG 603 - Site Work On Vendor Supplied Equipment
GPP 7EG 606 - Requests for Information
GPP 7EG 607 - Calibration of Inspection Measuring and Test Equipment
GPP 7EG 608 - Construction Organisation Duties and Responsibilities
GPP 7EG 614 - Field Material Management
GPP 7EG 616 - Construction Quality Control
GPP 7EG 617 - Control of Non-Conformance
GPP 7EG 619 - Construction Planning and Scheduling
GPP 7EG 621 - Contract/Subcontract Management
GPP 7EG 622 - Contract/Subcontract Change Management
GPP 7EG 623 - Pre-Construction Progress Review Meeting
GPP 7EG 624 - Contract/Subcontract Correspondence
GPP 7EG 701 - Precommissioning Procedures
GPP 7EG 702 - Commissioning

4 DEFINITIONS

Company - Bechtel Limited and the EAMS Execution Unit

Production - Fabrication, construction, installation and start-up activities.

Site - A location where Construction Department personnel are engaged in, or

responsible for monitoring or supervising, production activities. This includes fabrication
yards where the company Construction Department are responsible for monitoring or
supervising production activities.

POC - Project Optimisation Centre.

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Procedure Number QAP-209 Rev 4
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Company Quality System Procedure No: QAP-209

5 RESPONSIBILITIES

Department Managers, Lead Engineers and Engineering Managers are responsible

for ensuring that their technical personnel are aware of and implement the
requirements of this Procedure and the documents referenced within it.

Project Construction Managers and Site Managers are jointly responsible for ensuring
that the requirements of this Procedure and the documents referenced within it are
implemented at construction sites and by subcontractors.

Project Procurement Managers are responsible for ensuring that the requirements of
this Procedure and the documents referenced within it are implemented by
suppliers.

6 INSTRUCTIONS

Planning

The requirements for production activities and the means of implementing them
shall be established initially by POC and Construction at the proposal
stage. The requirements shall then be defined by the project based
Engineering and Construction Disciplines. The Project Execution Plan
shall include the specific controls to be applied in order to execute the
project effectively in accordance with QAP-202.

Following the award of a contract to company, the Project Construction Manager

shall develop, establish and implement a system to control the commercial
aspects of the production activities in accordance with the standard project
Procedures detailed below:

GPP 7EG 608 - Construction Organisation Duties and Responsibilities.

GPP 7EG 621 - Contract/Subcontract Management
GPP 7EG 622 - Contract/Subcontract Change Management

Additionally the Project Construction Manager shall liaise with the Site
Manager to ensure that all site based production activities are identified
and controlled in accordance with the Standard Project Procedures detailed
below:

GPP 7EG 608 - Construction Organisation Duties and Responsibilities

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Company Quality System Procedure No: QAP-209

GPP 7EG 603 - Site Work on Vendor Supplied Equipment

GPP 7EG 616 - Construction Quality Control

Production activities that are subcontracted by Company or where Company is

acting as manager shall, be identified and included in the Contracts Plan
for the project.

The Business Management Manager shall, in accordance with GPP 7EG 510,
develop the schedules for the production activities associated with the
Project. Schedules for subcontracted production activities shall be
prepared by the subcontractor, unless otherwise defined.

Work Instructions

Engineering Instructions

Production activities shall conform with the requirements of work

instructions in the form of specifications and drawings produced by POC
or by the project based Engineering Discipline.

The specifications and drawings form part of the design output as defined
in QAP-204 Section 9.0. They shall govern the activities for every phase
of production.

Where the Client requests specific controls to be applied the Standard

Project Procedures shall be customised to reflect the Client specific
requirements, thereby becoming Specific Project Procedures.

The work instructions shall specify the following aspects of the production
activities where those aspects affect the final quality of the work:

a. Governing codes, standards and regulations.

b. Materials and workmanship criteria as defined in Section 6.2.6.

c. Inspection and testing as defined in QAP-210.

d. Acceptance criteria as defined in QAP-204.

e. Equipment to be used for production processes such as welding,

inspection, testing and the production of concrete.

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Company Quality System Procedure No: QAP-209

f. Methods of production, such as erection, installation or start-up

sequence where absence of such instructions would adversely affect
the work.

g. Approvals required before the next stage of the work may commence.
Approvals may be required from the responsible Company
personnel, the Client, or a third party organisation.

h. Special working environment requirements such as cleanliness,

segregation from other materials and contaminants, and control of
temperature and humidity.

i. Requirements for special processes as defined in Section 6.2.3.

j. Material identification and traceability requirements as defined in QAP-

208.

k. Records to be maintained as defined in Section 6.3.9.

Construction Instructions

The Project Construction Manager shall allocate responsibility for

developing and customising the Standard Project Procedures into Specific
Project Procedures so as to reflect the Client specific requirements for
construction.

Construction Department Project work instructions shall include the

following:

a. Quality Control/Inspection activities (see GPP 7EG 616).

b. Inspection and Test Plans (see Section 6.3.3 and GPP 7EG 616).

c. Mechanical completion, pre-commissioning and commissioning

activities (see GPP 7EG 701 and GPP 7EG 702).

d. Erection and installation.

e. Handling, storage, packaging, preservation and delivery (see GPP 7EG

606 and QAP-215).

f. Control of nonconforming product and corrective or preventive action

(see GPP 7EG 616, GPP 7EG 617, QAP-213, and QAP-214).

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Company Quality System Procedure No: QAP-209

Special Production Processes

These are production processes which cannot be readily verified by non-

destructive inspection or test after construction or installation. Special
processes shall be described in detailed Procedures prepared by
Engineering and Construction.

Production processes falling into this category include: welding,

concreting, heat treatment, paint testing, pipe coating, non-destructive
testing and hydraulic testing.

Qualification Requirements

Certain special processes, such as welding, need to be qualified prior to

use in production. The requirement shall be identified by the Engineering
Discipline and the method of qualifying both the Procedure and the
operator shall be specified, or agreed with the supplier or subcontractor.

Prequalified Procedures may be accepted with the written agreement of

Engineering.

Requirements specified by the Engineering Department for approval or

qualification of production processes shall, in accordance with QAP-204,
form part of the design output.

Approvals

The need for advance approval of a production process, including

approval of the equipment to be used, shall be decided by the Engineering
or Construction Disciplines as appropriate. The lead discipline engineers
and the Field Engineers shall identify the processes concerned and define
the means of gaining approval.

Engineering shall include the requirements in the Specifications and

Construction Department shall include both the Engineering and
Construction Departments' requirements in a Quality Control Plan and/or
Procedures.

Approval of specifications and drawings produced by Engineering shall be

in accordance with QAP-204 and GPP 7EG 209.

Records of approvals shall be maintained in accordance with Section 6.5.

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Company Quality System Procedure No: QAP-209

Acceptance Criteria

Criteria for accepting or rejecting materials and workmanship shall be

stipulated as far as possible in the project work instructions, or by means
of samples (e.g.: sample brick panels; colour charts; material samples) and
photographs (e.g.: surface finish; slag inclusions in welds).

Suppliers and Subcontractors

Where production activities have been performed under the terms of a

purchase order or subcontract, the supplier or subcontractor shall be made
responsible for developing the detailed instructions for his work.

Suppliers and subcontractors shall be required to seek approval of

production processes where stipulated in the specifications. The method of
submitting for approval and the records that are to be maintained shall also
be stipulated in the material requisition or contract documents.

Records resulting from purchase orders and subcontracts shall be

maintained in accordance with Section 6.5.

Distribution

Work instructions for production activities shall be treated as controlled

documents in accordance with QAP-205.

Copies of work instructions shall not be taken or distributed at the site

without the authorisation of the Project Field Engineer.

The Project Field Engineer shall, in accordance with GPP 7EG 624, be
responsible to the Site Manager for the correct distribution of work
instructions. Formal distribution shall be in accordance with the Project
Procedures and shall ensure that copies are readily available to personnel
who need them.

When a revised document is formally distributed to site, copies of the

previous revision shall be withdrawn and destroyed. Any that are to be
retained for record purposes shall be clearly marked as superseded in
accordance with GPP 7EG 601.

Quality Control

General

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Company Quality System Procedure No: QAP-209

Quality control of the production processes shall be maintained by

inspecting, testing and auditing to verify that work is proceeding in
accordance with the work instructions, and that acceptance criteria for
performance, physical characteristics and workmanship have been met. On
site this work is the responsibility of the Project Field Engineer. Where the
Company are responsible for direct hire labour activities on site, then
actual production activities will be controlled by Craft Supervisors who
are responsible through Area Superintendents to the Site Manager.

Special Production Processes

Monitoring of special production process activities described in 6.2.3

above shall include verification of the following:

a. Suitability of type of equipment in use.

b. Equipment is in good repair, operating with required accuracy, and

being used correctly at correct settings.

c. Training, experience, qualifications and ability of operators.

d. Suitability of working environment.

e. Correct use of specified materials.

f. Correct identification to comply with traceability requirements.

g. Correct sequence of operations.

h. Visual and non-destructive examination to the extent possible.

i. Records of qualification, calibration and certification of operators,

inspectors, processes, equipment and materials, as appropriate or where
specified as requirements.

Inspection and Test Requirements

The Project Construction Manager and the Site Manager shall ensure that
inspection and test requirements are identified at an early stage, prior to
the start of work on site.

The inspection requirements shall be detailed in the Quality Control Plans.

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Company Quality System Procedure No: QAP-209

The Quality Control Plans shall detail the QC activities to be performed at

each stage of production, relating them to the governing specifications,
codes and standards and to the documents that verify the results of the
inspection, or test operation. Hold and witness points shall also be
stipulated.

Where production activities are performed under the terms of a purchase

order or subcontract, the supplier or subcontractor shall be required to
develop the Quality Control Plans.

Monitoring, verification and control of the production processes shall be

made the direct responsibility of the supplier or subcontractor. In the case
of a Purchase Order Procurement shall, in accordance with the Supplier
Quality Manual, carry out a surveillance programme of these activities.

In the case of a subcontract or other situation where the Company is acting

as manager, the Construction Department shall, in accordance with GPP
7EG 616, carry out a surveillance programme of these activities including
pre-planned audits of the subcontractors' adherence to specified
requirements and work practices. Procedures and checklists shall be
prepared for these audits.

The Construction Quality Control Engineer shall be responsible to the

Project Field Engineer for ensuring that inspection and testing are carried
out in accordance with the Quality Control Plan and the governing work
instructions, codes and standards.

The Construction Quality Control Engineer shall also ensure that

inspection and testing are carried out by suitably qualified and experienced
personnel. This may involve the use of subcontracted testing agencies
either on site or at their own premises.

Inspection, Measuring and Test Equipment

This equipment shall be stored, maintained and calibrated in accordance

with the requirement of QAP-211.

Inspection and Test Status

The Project Field Engineer and the Construction Quality Control Engineer
shall maintain a record of the progress of the work and of the inspection
status of the materials, equipment, sub-assemblies and construction work.
This shall be in accordance with QAP-212.

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Company Quality System Procedure No: QAP-209

Record keeping shall be by means of any of the following:

a. Marked up drawings and schedules.

b. Computerised progress record.
c. Sequentially filed and indexed inspection and test reports.

Reports shall be traceable to the items concerned, and to the QC Inspector

or Field Engineer responsible.

Non-conformance

Materials, equipment, constructed or part constructed work, processes or

documents which are found not to conform to specified requirements
defined in the working instructions shall be controlled in accordance with
GPP 7EG 617, QAP-213, and QAP-214.

Records of acceptance of materials or workmanship shall be maintained in

accordance with Section 6.5.

Equipment

Production equipment for activities such as cutting, bending, forming,

welding, concreting or lifting shall be properly stored, used and
maintained in accordance with the manufacturers recommendations.

Material Control and Identification

The Construction Quality Control Engineer shall be responsible to the

Project Field Engineer for material control on the site.

Material control activities shall consist of receiving inspection, storage,

maintenance and issue, all in accordance with QAP-215. Control of Client
Supplied Materials and Equipment shall be in accordance with QAP-207.

In addition a material identification and traceability system shall be

established and maintained to the degree required by the project work
instructions in accordance with QAP-208.

Records

Records of inspections, tests, qualifications for processes, personnel and

equipment shall be maintained in accordance with Section 6.5.

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Company Quality System Procedure No: QAP-209

Audits

Where Construction carry out an audit visit to site, they shall discuss with
the Project Quality Assurance Manager the advantages of conducting these
visits with audits performed by Project Quality Assurance.

Schedule and Cost Control

Progress of production activities including subcontracted activities, shall be

monitored by suitably trained and experienced personnel from the
Construction and Business Management Departments.

Monitoring shall be performed in accordance with GPP 7EG 510 and GPP
7EG 504.

Regular reviews and reports of the progress of production activities shall be made
at intervals determined by the Project Manager and in accordance with the
contract requirements. Reviews shall be conducted in accordance with
GPP 7EG 623.

In evaluating progress, credit shall only be given for completed work

which meets the quality requirements of the contract.

Records

Records shall be maintained to demonstrate the quality attained by the production

processes and activities and the degree of monitoring performed.

Such records shall include the following as appropriate:

a. Quality control plan.

b. Material certification.
c. Operator qualifications.
d. Process qualifications.
e. Equipment certification.
f. Calibration certificates.
g. Inspection and test records and reports.
h. Acceptance and approval records.
i. Material traceability records.
j. Work approval packages.
k. Certifying Authority approvals.

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The records shall form part of the quality records for the project and their
maintenance, storage and disposition shall be in accordance with QAP-
216.

Where work has been let by Purchase Order or subcontract, the supplier or
subcontractor shall be made responsible for supplying the relevant records.

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Procedure Number QAP-209 Rev 4