PMM Ver03 update – Executive Summary

Prepared for:
NATIONAL WATER COMPANY
Front Of Al Faysaliayh Tower, King Fahd Road
B.O. Box: 676, Postal Code: 11421, Riyadh, Saudi Arabia
Tel: 01-4409444 / +966-92-000-1744
Fax: 01-4409595
https://www.nwc.com.sa/English/OurCompany/Pages/default.aspx

Prepared by:
Hill International Company Limited
Tamkeen Tower, 2nd floor
Olaya street,.
Riyadh 12363 – Saudi Arabia
C. R. 1010806537
Tel.: +966 11 207 9559
Fax.: +966 11 207 9959
www.hillintl.com

National Water Company Page 1 of 5 PMM Ver03 Executive Summary

TABLE OF CONTENTS
PMM Ver03 update Executive Summary
1. Background and baselining: ........................................................................................................................... 3

3. PMM review findings ...................................................................................................................................... 3

4. Size reduction, enhanced readability and color strategy ............................... Error! Bookmark not defined.

5. PMM Ver03 Clusters Review .......................................................................................................................... 4

6. Comparison with Global Organizations. ........................................................................................................ 5

7. Final Roadmap ................................................................................................................................................. 5

National Water Company Page 2 of 5 PMM Ver03 Executive Summary

 Executive Summary PMM Ver03 update
1. Background and baselining:
1.1 The officially deployed version of PMM at NWC is PMM V02 issued 16/1/2022
1.2 The baseline for PMM Review & Update is IFR PMM V2.66 dated 28/7/2024
1.3 PMM V2.66 already contains several incremental improvements over PMM V02

2. Methodology followed to update the PMM Ver02 to PMM Ver03:

2.1 PMM Deep-Dive Review per knowledge area was accomplished utilizing Hill’s external Subject Matter Experts with
diverse worldwide experiences to provide Fresh-Eye perspective to the PMM.
2.2 In addition to creating practice-driven update requirements, Hill's PMO personnel offered feedback on external
remarks and local program experience.
2.3 NWC HQ Staff provided the perspective of Process Owner, PMO & Functional/Governance.
2.4 Clusters staff, NWC and Hill, added the End User perspective for PMM update and application.
2.5 PMM Review & Update Deliverable was led by a Senior Responsible Owner (SRO). [Hill-TCT (Mostafa)]

3. PMM update
3.1 Following the deep dives, inputs received from NWC HQ Staff from the perspectives of Process Owner, PMO &
Functional/Governance the PMM was updated. A few of the updates to the knowledge areas are listed below:
3.1.1 Project Lifecycle and Stage Gates
3.1.1.1 Updated PLC-010 policy to state the correct practice of the process.

3.1.1.2 Mandate updated PMP as prerequisite for review and Updated Risk Register as review exit criterion.

3.1.1.3 Corrected the number of possible decisions of SG review and detail it in PLC-010-030.

3.1.1.4 Detailed follow up action & risk allocation / mitigation planning.

3.1.1.5 Added Cluster Risk roles to RACI

3.1.2 Knowledge Area- Project Cost Management

3.1.2.1 Cluster Cost Control Director to report approved Monthly Cash Flow to HQ.

3.1.2.2 Cluster VP to provide approved Quarterly Cash Flow to HQ.

3.1.2.3 Updated statements in COS-080 Policies

3.1.2.4 Project Health, Safety and Environmental Management

3.1.2.5 Rename the activity from HSE Risk Assessment to Job Safety Assessment.

3.1.2.6 Create new attachment as template form for JSA.

3.1.2.7 Create new attachment as PTW register.

National Water Company Page 3 of 5 PMM Ver03 Executive Summary

3.1.2.8 Correct multiple errors and improve procedure writeup accuracy.

3.2 5 examples of finding were prepared and presented based on the client’s request which were extracted from the key
findings that were shortlisted for incorporation into PMM V03 update.
3.3 Several findings were not shortlisted for V03 implementation due to the need for further analysis, those are planned
to be analyzed and shortlisted for incorporation in the following update.
3.4 The approach adopted in the current Review & update effort has created a positive environment through stakeholder
engagement and professional collaboration at different levels of the PMC (Hill) and the client (NWC) which is to the
ultimate benefit of PMM improvement.

The PMM Ver03 has been enhanced for readability, number of pages reduced by ~ 44% from 746 to 415.
3.5 Improve Readability by formatting the document for font size, margins, size of flowcharts, tables, condition
statements, verbs etc...
3.6 A Color Strategy was adopted to enable ease of distinguishment between attachment, process/ procedure, the role
performing the step of the process and documents referenced by name.
3.7 Size Reduction was achieved by moving “Glossary & Abbreviations” section into a “PMM Dictionary”, “History” pages
into a “Volume History” etc.

4. PMM Ver03 Clusters Review

4.1 Based on the client’s direction an additional final round of review with Hill Clusters teams was carried before the
submittal and the received inputs were analyzed, updates that could be done for PMM Ver03 were carried out and
the other inputs have been logged for further analysis and incorporation in PMM Ver04.

National Water Company Page 4 of 5 PMM Ver03 Executive Summary

5. Comparison with Global Organizations.
5.1 The PMM Ver2.66 was compared to Organization for Security and Co-operation in Europe (OSCE) and U.S. Army Corps
of Engineers (USACE).

6. Final Roadmap
6.1 A 5 year Road Map was developed, based on which the annual PMM Updates would be carried out.

-------------------------------------------------x---------------------------------------------------x-------------------------------------------------------------

National Water Company Page 5 of 5 PMM Ver03 Executive Summary

 PROJECT MANAGEMENT
MANUAL (PMM)

This is the Reference English Version of PMM document.

Document Number : 00_PTS_MN_002.03

Issue Date : 24/01/2025

UPDATING
The BEE Department or the document owner will issue updates to all registered holders of each
“hard copy” of this document. The registered holder will be responsible for updating the
document by replacing pages or sections as instructed. Printed copies will automatically assume
as “unmaintained” status.

Copyright Notice ©Copyright 2023

All rights reserved. This is the property of National Water Company “NWC” The contents of this
document, either in full or in part, are not allowed to be copied in any form or used by anyone
outside NWC unless specifically authorized in writing by the document owner of other authorized
representative of NWC.
ISSUE PAGE
Prepared by
Name Signature Company - Designation Date

Fakhruddin B. Bilal HILL 30/1/2025

Process SME
HILL
Mostafa A. Ibrahim 30/1/2025
Project Management Excellence SME
HILL
Simhan Santosh 30/1/2025
Continuous Improvement Section Head

Reviewed by
Name Signature Company - Designation Date
NWC
Mohamed A. Adli / /
PMO Project Director
.

NWC
Mohamed M. Aljohani / /
Continuous Improvement Manager
.

NWC
Khalid Y. Alhomoud / /
Supply Chain VP
.

NWC
Amir Khan / /
Operational Excellence Director
.

NWC
Waleed K. Aggad / /
HSSE GM
.

NWC
Majed M. Alajmi / /
Corporate Governance & Enterprise Risk GM
.

NWC
Majed S. Alotaibi / /
Legal Affairs GM
.

Owned by
Name Signature Company - Designation Date
NWC
Khamees S. Alzahrani / /
Projects Services VP
.

Endorsed by
Name Signature Company - Designation Date
NWC
Saif A. Alhawwashi / /
Business Excellence GM
.

Approved by
Name Signature Company - Designation Date
NWC
Mansour M. Abuthnain / /
Capital Projects EVP
.

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 Table of Contents
I. Purpose .............................................................................................................................................................. 7
1 Glossary ............................................................................................................................................................. 7
II. Ownership .......................................................................................................................................................... 7
III. Application.......................................................................................................................................................... 7
IV. Maintenance of This Document .......................................................................................................................... 7
V. Document Authority Matrix ................................................................................................................................. 7
VI. Structure of this Manual ..................................................................................................................................... 8
1 Introduction ...................................................................................................................................................... 10
1.1 Project Management Manual (PMM) ................................................................................................ 10
1.2 PMM Sections .................................................................................................................................. 10
1.3 How to read PMM ............................................................................................................................. 12
1.4 Supporting Documents ..................................................................................................................... 14
2 Project Lifecycle and Stage Gates ................................................................................................................... 16
2.1 Project Lifecycle (PLC) ..................................................................................................................... 16
2.2 Stage Gate Review (Team and Deliverables) .................................................................................. 20
2.3 PMM-002-PLC-010 Stage Gate Review Process ............................................................................. 27
3 Five-Year Projects Portfolio Planning ............................................................................................................... 31
3.1 PMM-003-FYP-010 Develop Local and National Master Plans ........................................................ 33
3.2 PMM-003-FYP-020 Develop Cluster and NWC Initial Projects Portfolio Plans................................. 40
3.3 PMM-003-FYP-030 Screen NWC Initial Projects Portfolio ............................................................... 43
3.4 PMM-003-FYP-040 Develop Draft 5YPPP and Submit for Review .................................................. 49
3.5 PMM-003-FYP-050 Update 5YPPP and Prepare Annual Capital Works Plan.................................. 51
3.6 PMM-003-FYP-060 Develop Final 5YPPP and Annual Capital Works Plan and Submit to MOF
for Budget Approval .......................................................................................................................... 53
3.7 PMM-003-FYP-070 Five-Year Projects Portfolio Variation Control................................................... 55
3.8 PMM-003-FYP-080 Project Business Case Development ................................................................ 59
4 Project Governance Management .................................................................................................................... 66
4.1 PMM-004-GOV-010 Enterprise Environmental Factors and Organizational Process Assets ........... 66
4.2 PMM-004-GOV-020 Management Representative of PMM ............................................................. 69
4.3 PMM-004-GOV-030 Project Management Data Analysis ................................................................. 70
4.4 PMM-004-GOV-040 PMM Management Meeting ............................................................................. 72
4.5 PMM-004-GOV-050 PMM User Feedback and Inquires .................................................................. 73
4.6 PMM-004-GOV-060 Control PMM Documents ................................................................................. 75
4.7 PMM-004-GOV-070 Control Roles, Responsibilities and Authorities ............................................... 78
4.8 PMM-004-GOV-080 PMM Update and Improvement ....................................................................... 81
4.9 PMM-004-GOV-090 Monitoring the Implementation of PMM ........................................................... 85
4.10 PMM-004-GOV-100 PMM Application Audit ..................................................................................... 87
4.11 PMM-004-GOV-110 Investigate Violations of Project Management Manual .................................... 89
4.12 PMM-004-GOV-130 Work Environment ........................................................................................... 91
4.13 PMM-004-GOV-140 Project Initiator and Sponsor ............................................................................ 92
4.14 PMM-004-GOV-160 End User Participation ..................................................................................... 93
5 Project Integration Management ...................................................................................................................... 98
5.1 PMM-005-INT-010 Develop the Project Charter ............................................................................... 99
5.2 PMM-005-INT-015 Plan Integration Management .......................................................................... 100
5.3 PMM-005-INT-020 Develop the Project Management Plans .......................................................... 103
5.4 PMM-005-INT-023 Site Handover to Contractor and Work Commencement by Consultant .......... 108
5.5 PMM-005-INT-026 Conduct Project Kick Off Meeting .................................................................... 115
5.6 PMM-005-INT-030 Direct and Manage Project Execution .............................................................. 116
5.7 PMM-005-INT-040 Manage Project Knowledge ............................................................................. 119

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 5.8 PMM-005-INT-050 Monitor and Control Project Work ..................................................................... 123
5.9 PMM-005-INT-055 Identify and Avoid Potential Claims .................................................................. 124
5.10 PMM-005-INT-060 Variation Control ............................................................................................... 128
5.11 PMM-005-INT-070 Close Project .................................................................................................... 134
6 Project Scope Management ............................................................................................................................ 139
6.1 PMM-006-SCO-010 Plan Project Scope Management ................................................................... 140
6.2 PMM-006-SCO-030 Define Project Scope ...................................................................................... 145
6.3 PMM-006-SCO-040 Create the Work Breakdown Structure (WBS)................................................ 156
6.4 PMM-006-SCO-050 Control Scope ................................................................................................. 158
6.5 PMM-006-SCO-055 Testing & Commissioning ............................................................................... 160
6.6 PMM-006-SCO-060 Total Initial Acceptance & Handover of Project Scope ................................... 171
6.7 PMM-006-SCO-065 Partial Initial Acceptance & Handover of Project Scope ................................. 185
6.8 PMM-006-SCO-068 Change a Partial Initial Acceptance & Handover into a Total Initial
Acceptance & Handover ................................................................................................................. 196
6.9 PMM-006-SCO-070 Total Final Acceptance & Handover of Project Scope .................................... 199
6.10 PMM-006-SCO-075 Partial Final Acceptance & Handover of Project Scope .................................. 208
6.11 PMM-006-SCO-080 Consultant Scope Acceptance Certificate ...................................................... 216
7 Project Value Engineering .............................................................................................................................. 221
7.1 PMM-007-VEN-010 Plan Project Value Engineering Management................................................. 222
7.2 PMM-007-VEN-020 Plan for Value Engineering Study ................................................................... 225
7.3 PMM-007 VEN-030 Prepare and Conduct the Value Engineering Workshop ................................. 227
7.4 PMM-007-VEN-040 Value Engineering Study Report Preparation and Approval ........................... 230
7.5 PMM-007-VEN-050 Final Approval of VE Study and Monitoring and Controlling the Value
Improvement ................................................................................................................................... 233
8 Project Schedule Management ....................................................................................................................... 237
8.1 PMM-008-SCH-010 Plan Project Schedule Management ............................................................... 240
8.2 PMM-008-SCH-015 Schedule Management for Initial Planning ..................................................... 243
8.3 PMM-008-SCH-020 Schedule Management for Tendering ............................................................. 245
8.4 PMM-008-SCH-030 Schedule Management for Design .................................................................. 247
8.5 PMM-008-SCH-040 Schedule Management for Construction, Design & Construction, Testing &
Commissioning and Handover ........................................................................................................ 252
8.6 Key Performance Indicators (KPIs) ..................................................... Error! Bookmark not defined.
9 Project Cost Management .............................................................................................................................. 259
9.1 PMM-009-COS-020 Plan Project Cost Management ...................................................................... 261
9.2 PMM-009-COS-030 Cost Management During the Initial Planning Stage ...................................... 264
9.3 PMM-009-COS-035 Cost Management During the Tender for Design Stage ................................. 267
9.4 PMM-009-COS-040 Cost Management During the Design Stage .................................................. 268
9.5 PMM-009-COS-050 Cost Management During the “Tender for Construction” and “Tender for
Design & Construction” Stages ....................................................................................................... 274
9.6 PMM-009-COS-060 Cost Management during “Construction”, “Design & Construction”, “Testing
& Commissioning” and “Handover & Closeout” Stages ................................................................... 275
9.7 PMM-009-COS-080 Monitor and Control Budget and Cash Flow during the Project ...................... 282
9.8 Key Performance Indicators (KPIs) ..................................................... Error! Bookmark not defined.
10 Project Quality Management ........................................................................................................................... 288
10.1 PMM-00-QUA-010 Plan Project Quality Management .................................................................... 288
10.2 PMM-010-QUA-020 Quality Assurance .......................................................................................... 291
10.3 PMM-010-QUA-030 Quality Control ................................................................................................ 299
10.4 Key Performance Indicators (KPIs) ..................................................... Error! Bookmark not defined.
11 Project Human Resource Management .......................................................................................................... 305
11.1 PMM-011-HUM-010 Plan Project Human Resource Management ................................................. 306
11.2 PMM-011-HUM-020 Acquire NWC Project Team ........................................................................... 308

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 11.3 PMM-011-HUM-030 Develop NWC Capital Projects Department Team ........................................ 311
11.4 PMM-011-HUM-035 Interview and Approve Second Party Project Team Members ...................... 313
11.5 PMM-011-HUM-040 Manage the NWC Project Team .................................................................... 315
11.6 PMM-011-HUM-050 Close the NWC Project Team ........................................................................ 315
11.7 Key Performance Indicators (KPIs) ..................................................... Error! Bookmark not defined.
12 Project Communication Management ............................................................................................................ 318
12.1 PMM-012-COM-010 Plan Project Communications Management .................................................. 319
12.2 PMM-012-COM-015 Manage Stakeholders ................................................................................... 322
12.3 PMM-012-COM-020 Distribute Correspondence between NWC and the Second Parties .............. 325
12.4 PMM-012-COM-090 Distribute Submittals for Approval ................................................................. 328
12.5 PMM-012-COM-100 Distribute Non-Conformance Report (NCR) .................................................. 331
12.6 PMM-012-COM-110 Distribute Request for Information (RFI) ........................................................ 337
12.7 PMM-012-COM-113 Archive the Project Documents ..................................................................... 339
12.8 PMM-012-COM-115 Cascade Objectives ...................................................................................... 340
12.9 PMM-012-COM-120 Design Performance Reporting ..................................................................... 341
12.10 PMM-012-COM-130 Construction / Design & Construction Performance Reporting ...................... 345
13 Project Risk Management .............................................................................................................................. 352
13.1 PMM-013-RIS-010 Risk Management at Portfolio Level ................................................................ 353
13.2 PMM-013-RIS-020 Plan Project Risk Management ........................................................................ 355
13.3 PMM-013-RIS-025 Conduct Project Risk Workshops .................................................................... 358
13.4 PMM-013-RIS-030 Identify Risks at Project Level .......................................................................... 361
13.5 PMM-013-RIS-040 Qualitative Risk Analysis at Project Level ........................................................ 364
13.6 PMM-013-RIS-050 Quantitative Risk Analysis at Project Level ...................................................... 365
13.7 PMM-013-RIS-060 Plan Risk Responses at Project Level ............................................................. 366
13.8 PMM-013-RIS-070 Implement Risk Responses at Project Level.................................................... 368
13.9 PMM-013-RIS-080 Monitor Risks at Project Level ......................................................................... 369
13.10 PMM-013-RIS-090 Treat Project Risk Management at Stage End ................................................. 370
14 Project Procurement Management ................................................................................................................. 374
14.1 PMM-016-PRO-010 Provide Procurement Requirements to Portfolio Management ...................... 375
14.2 PMM-014-PRO-020 Plan Project Procurement Management ........................................................ 376
14.3 PMM-014-PRO-025 Acquire Project Land ...................................................................................... 379
14.4 PMM-014-PRO-030 Prepare Tender Documents ........................................................................... 380
14.5 PMM-014-PRO-040 Select a Bidder............................................................................................... 386
14.6 PMM-014-PRO-070 Contract Administration .................................................................................. 390
14.7 PMM-014-PRO-080 Suspend and Resume Project ....................................................................... 393
14.8 PMM-014-PRO-085 Change Project Status from Partial Suspension to Total Suspension ............ 398
14.9 PMM-014-PRO-090 Withdraw Project ............................................................................................ 400
14.10 PMM-014-PRO-100 Close Contract ............................................................................................... 411
14.11 PMM-014-PRO-110 Material Technical Study for Incorporation in NWC Approved Material List ... 413
15 Project Health, Safety and Environmental Management ................................................................................ 416
15.1 PMM-017-HSE-010 Plan Project HSE Management ...................................................................... 416
15.2 PMM-017-HSE-015 Environmental Impact Assessment ................................................................ 420
15.3 PMM-017-HSE-020 HSE Assurance .............................................................................................. 422
15.4 PMM-017-HSE-030 HSE Control ................................................................................................... 429
References: ......................................................................................................................................................... 433

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 ABOUT THIS DOCUMENT

ABOUT THIS DOCUMENT

01/01/2024 6 of 433 00_PTS_MN_002.03

ABOUT THIS DOCUMENT

I. Purpose
The purpose of this manual is to standardize the Project Management processes, procedures, templates and forms
applicable to all NWC Capital Projects that are managed by Capital Projects Departments at HQ & Clusters.

II. Glossary
Refer to PMM Dictionary.

III. Ownership
This document is owned by the NWC PMO GM.

IV. Application
This Project Management Manual (PMM) is applicable to all NWC Capital Projects.

V. Maintenance of This Document

This document will be maintained by the document owner and will follow the Change Management Process;
00_BEED_PP_001 - Change Management Process.
This document will be reviewed regularly.

VI. Document Authority Matrix

Thie below matrix defines the roles and responsibilities specifically related to this document including who is
responsible for the review / endorsement / approval of the document.
Prepare /
Maintain
Update / Review Endorse Approve Publish
Register
Amend

Owner YES

Affected Parties YES

Business Excellence YES YES YES

Projects EVP YES

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 ABOUT THIS DOCUMENT

VII. Structure of this Manual

This Manual consists of 15 sections presented in the following table:

Table VII-1 Project Management Manual Sections

Section
Abbreviation Title
No.

1 IND Introduction

2 PLC Project Lifecycle and Stage Gates

3 FYP Five-Year Projects Portfolio Plan

4 GOV Project Governance Management

5 INT Project Integration Management

6 SCO Project Scope Management

7 VEN Value Engineering

8 SCH Project Schedule Management

9 COS Project Cost Management

10 QUA Project Quality Management

11 HUM Project Human Resource Management

12 COM Project Communications Management

13 RIS Project Risk Management

14 PRO Project Procurement Management

15 HSE Project Health, Safety & Environmental Management

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 Section 1 - Introduction

Section 1 - Introduction

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 Section 1 - Introduction

1 Introduction
The subject of this particular section of the Project Management Manual (PMM) is to introduce the Project
Management Manual.
1.1 Project Management Manual (PMM)
The Project Management Manual (PMM) is a parent document that identifies the objectives, principles
and processes of the project management for NWC Capital Projects which must be adhered to, physically
or digitally, by the staff of the projects departments at the NWC HQ and Clusters including second parties.
The PMM includes process, procedures, policies, work flow charts, forms, guidelines and other
attachments. The manual identifies and describes each of these items in their context and serves to apply
them together into a unified and integrated set.
The implementation of PMM is continually audited by a specialized team from NWC and supported by
experience of second parties.
The manual is developed following the best practice framework of knowledge areas defined in the
PMBOK Guide, issued by the Project Management Institute (PMI). Development of the PMM considered
other international and national best practices, national regulations, and NWC current objectives and
policies.
The PMM is continually being updated to adopt latest project management advancement and fill any
monitored gaps in it.
1.2 PMM Sections
Each section of the manual has its own process map showing the processes. These processes are
numbered in the high-level process map within each section of the manual where user can find the
relevant detail in the format of a work flow chart.
The procedures also show how to use the relevant forms, templates or guidelines, which are also provided
as part of the manual and are uniquely identified with system document numbers.
An outline of each section is provided in the following sub-sections:
1.2.1 PMM-001-IND Introduction
The Introduction section (i.e., this section) provides an overview of the management system.
1.2.2 PMM-002-PLC Project Lifecycle
The Project Lifecycle section describes the stages of a project from inception to closure, and how
controlled transitions are made through formal stage gate reviews from one stage to the next stage.
1.2.3 PMM-003-FYP Five-Year Projects Portfolio Planning
The Five-Year Projects Portfolio Planning section describes the processes for preparing and
obtaining approval on Five-Year Projects Portfolio Plan and Annual Plans for NWC capital projects.
1.2.4 PMM-004-GOV Governance Management
The Governance Management section largely describes the ongoing roles and responsibilities of the
NWC Projects Cluster, who are the “custodians” of the project management system. The Projects
Cluster includes three main functions:
● High-level control and oversight of project planning and budgeting.
● High-level control and oversight of project execution.
● Project support services.
All of these functions are mirrored at a lower level in the Clusters.
1.2.5 PMM-005-INT Project Integration Management
The Project Integration Management section describes the project integration activities of the project
team, throughout the project lifecycle. Integration ensures that all aspects of the project are
considered and interlinked at all times. The key supporting document for integration is the NWC
Project Management Plan.

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 Section 1 - Introduction

1.2.6 PMM-006-SCO Project Scope Management

The Project Scope Management section describes how the scope of the project is initially defined,
then described in a structured manner as a work breakdown structure, which supports scope
validation and control. For ease of management and reporting, all projects must follow the standard
work breakdown structure defined in this section.
1.2.7 PMM-007-VEN Value Engineering
The Value Engineering section describes the processes and criteria for implementing Value
engineering concepts on NWC Capital Project.
1.2.8 PMM-008-SCH Project Schedule Management
The Project Schedule Management section describes how the work breakdown structure must
include work packages which shall decomposed into clearly defined and sequenced activities, with
clear identification of resource and duration. Thus, a unique schedule is developed for the project,
which can then be monitored, controlled and reported in a standardized manner. Much of the
discipline of Project Schedule Management is “owned” by the second parties who are procured to
execute the project. However, the NWC Project Manager has overall responsibility for ensuring that
the project is delivered in a timely manner. This section describes the mandated approach to Project
Schedule Management.
1.2.9 PMM-009-COS Project Cost Management
The Project Cost Management section describes how the cost of executing the project must initially
be estimated, then firmly budgeted and later it must be controlled to within the budget. Unlike Project
Schedule Management, much of the discipline of Project Cost Management is “owned” by the NWC
Project Manager, who has overall responsibility for ensuring that the project is delivered in a cost-
effective manner. This section describes the mandated approach to Project Cost Management.
1.2.10 PMM-010-QUA Project Quality Management
The Project Quality Management section is a very broad discipline, concerned with ensuring that
internal and external requirements, are properly defined and assuring that the requirements will be
met through effective work processes including control measures. The approach to quality
management follows the universally accepted plan-do-check-act model (the Deming Cycle) and is
described throughout the project lifecycle in this section of the manual.
1.2.11 PMM-011-HUM Project Human Resource Management
The Project Human Resource Management section describes how the project team is brought
together, how competence requirements are managed (especially in support of quality, health, safety,
environment, risk and value) and how the project team is ultimately closed, with capture of lessons
learned. The NWC approach to human resource management is a collaborative partnering approach.
This approach uses open communications and constructive feedback are given on issues,
performance feedback and opportunities for continuous improvement.
1.2.12 PMM-012-COM Project Communications Management
The Project Communications Management section describes effective communication processes,
through effective stakeholder management, communications planning, information distribution and
performance reporting. All are defined in this section of the manual.
1.2.13 PMM-013-RIS Project Risk Management
The Project Risk Management section describes how project risks are identified, analyzed, planned,
monitored and controlled to the point of mitigation or fruition. This applies throughout the project
lifecycle and the approach to be adopted is scaled to the cost and complexity of the project from an
early stage.
1.2.14 PMM-014-PRO Project Procurement Management
The Project Procurement Management section describes how procurement starts early in the project
with a clear strategy to decide the best contracting method for the project. The process also involves
maintaining a healthy climate of pre-qualification and re-qualification to NWC’s list of authorized
project vendors, as NWC seeks to build long-lasting and effective business relationships for repeated
successes in project execution. A key requirement of procurement is to include the NWC Project
Management Plan in the tender documents whenever seeking to procure Second Party services for

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 Section 1 - Introduction

project execution. All of these proactive steps, and the steps of regular contract administration right
up to contract closure, are described in this section of the manual.
In addition, this section describes the processes of Site Handover, Kickoff Meeting, Project
Suspension and Project Withdrawal.
The NWC Supply Management Policy and Procedure Manual is cross-referenced where appropriate.
1.2.15 PMM-015-HSE Project Health, Safety & Environmental Management
The Project Health, Safety and Environmental Management section describes where potential to
cause harm to persons and to the environment is proactively reduced to acceptable minimum levels.
The approaches to planning, assurance and control are described in this section of the manual.
1.3 How to read PMM
It is strongly recommended to read this section first (Introduction Section); then read Section 2 Project
Lifecycle before looking at other sections in any order.
Refer to PMM Dictionary occasionally as required for further details on certain Glossary and
Abbreviations.
Section 4 Governance shall be of most interest to PMO department.
Generally, each section consists of:
● An introduction to the section.
● The section processes, each process contains:
○ An objective which is the purpose that the process is performed to achieve such as obtaining
a result, changing a project artifact, controlling the relation with a second party, etc.
○ Number of Policies which includes:
- Measures.
- Criteria.
- Requirements that must be considered when implementing this process.
○ One work flow chart which is a graphical representation of the procedures of the process that
correlates procedures together and in some cases links them to other processes as
necessary.
○ Number of Procedures. A procedure is a set of activities and actions that to be performed to
contribute to developing the process objective:
- by clearly described responsible, accountable, consulted and informed persons.
- in support with forms, templates, guidelines, checklist.
- within mandatory durations.
The procedures are represented:
- Horizontally, by areas of the performing parties.
- Vertically, by the project life cycle stages.
The process (PMM-004-GOV-090 Monitoring the Implementation of PMM) presents number of Key
Performance Indicators (KPIs) relevant to each section that is to be implemented to measure the
compliance to the PMM processes using the form (PMF-004-GOV-015 KPI Report) which identifies
the KPIs of all PMM process. Each KPI explains the subject, the application frequency and
measurement criteria / scale.
Refer to PMM Attachments Register that presents references to the each sections’ forms, templates
and guidelines listing.
The sections “Introduction”, “Project Lifecycle and Stage Gates” deviate from this section structure as
they have no processes. They are structured as follows:
● An introduction to the section.
● The section details are represented.
All durations mentioned in this PMM are working days unless otherwise is indicated.

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To understand how work flow charts are read, take the below example for a hypothetical process PMM-
004-XXX-050 which is the fifth process in section 4. The letters XXX are the abbreviation of the section
name (e.g., PRO is for Procurement Section).
In procedure numbering, there is an additional number which distinguishes the procedure within the
process.
Figure 1-1 Example Work Flow Chart

● Horizontal lanes represent the Entities (HQ, cluster, design consultant, supervision consultant or
contractor) which shall perform the procedures in each. This process is performed by “Design
Consultant” and “Cluster”.
● Vertical lanes represent the stages (e.g., Tender for Design, Design, Tender for Construction,
Construction etc.) in which the procedures are performed. This process is performed in 2 stages
“Tender for Design Stage” and “Design Stage”.
● If a template is used in a procedure, it shall be located above the procedure.
● The person who is responsible to perform a procedure, his role shall be located below the
procedure.
● Every procedure located on a horizonal boundary (e.g., PMM-004-XXX-050-040) is performed
jointly by the two parties.
● Every procedure located on a vertical boundary (e.g., PMM-004-XXX-050-020) can be performed
during one or both of the stages.
● The shapes which are illustrated in the work flow chart are described in the below table.
TO PERFORM ANY PROCESS, DO NOT RELY ON ONLY WORK FLOW CHART APART OF THE
OBJECTIVE, POLICIES, PROCEDURES AND FORMS OF THE PROCESS.

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Table 1-1 Work Flow Chart Shapes Legend

Ser Item Shape Description

Related process belongs to the same

1 Process in blue
process section.

2 Procedure in blue Procedure belongs to this process.

Related process belongs to a different

3 Process in white
section.

Related procedure belongs to a different

4 Procedure in white
process.

The roles of responsible people that

5 Roles performs the procedure.
Observe, responsible not accountable.

Input or output document to a procedure or

6 Document
process.

Information related to a process or

procedure that describes a subsequent
7 Information
action by a department other than Projects
department.

1.4 Supporting Documents

The types of supporting document provided with the Project Management Manual include work flow
charts, forms, templates, guidelines, PMM Change History, PMM Dictionary, PMM Version Release
Information and PM Handbook.

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Section 2 - Project Lifecycle and Stage

Gates

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2 Project Lifecycle and Stage Gates

The subject of this section of the Project Management Manual (PMM) is Project Lifecycle and Stage Gates.
2.1 Project Lifecycle (PLC)
A project life cycle is the series of stages that a project passes through from its start to its completion.
A project stage is a collection of logically related project activities that culminates in the completion of pre
identified deliverables.
PMM adopts two project life cycles:
1. “Design-Bid-Build” PLC which consists of eight stages.
2. “Design & Build” PLC which consists of six stages. This PLC is also known as EPC for this PMM
purpose.
Only the following projects can be tendered as Design & Build (EPC) after a study that proves the
suitability of this PLC to the project.
1. Water Treatment Plants projects.
2. Wastewater Treatment Plant projects.
3. Water Tank projects.
In some projects, the project may be subdivided into parts based on geographical considerations or
relations to other projects. Each part can be subdivided into stages. In this case, the stage gate processes
should be repeated for each stage.

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2.1.1 Design-Bid-Build PLC

It is a PLC that consists of the following eight stages (see figure 2-1):
Figure 2-1 “Design-Bid-Build” Project Lifecycle

Five-Year Projects Portfolio Plan

MoF Fund Approval

Stage 1
Project Strategic Planning
Stage Gate 1

Stage 2
Initial Planning
Stage Gate 2

Stage 3
Tender for Design
Stage Gate 3

Stage 4
Design
Stage Gate 4

Stage 5
Tender for Constructon
Stage Gate 5

Stage 6
Construction
Stage Gate 6

Stage 7
Testing & Commissioning
Stage Gate 7

Stage 8
Handover & Closout
Stage Gate 8

Operations & Maintenance

2.1.1.1 Project Strategic Planning Stage.

The objective of this stage is to develop and approve the project business case in support with
required information and documents from NWC Five-Year Projects Portfolio Plan.
2.1.1.2 Initial Planning Stage.
In the Initial Planning stage, NWC sets up the Project Team under an appointed Project Manager
to:
● Define the project’s objectives as per the approved business case.
● Outline possible design options then select the most suitable option.

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● Establish the execution strategy for the selected design option.

● Establish the optimal Project Procurement Strategy.
● Establish the commissioning targets, to manage risks from an early stage.
● Develop an integrated NWC Project Management Plan.
The objective of this stage is to further plan, develop, test and refine the initial project parameters
established during the Five-Year Strategic Planning phase. This will help ensuring a reduction
in potential risks related to planning and design.
2.1.1.3 Tender for Design Stage.
The Tender for Design stage prepares the project for engagement of the Design Consultant
through technical and commercial inputs to the tender document, prequalification, evaluation
and selection.
The objective of this stage is to select an appropriately qualified engineering firm to complete
the project design. This selectin is based on Project Procurement Strategy which developed in
stage 2.
2.1.1.4 Design Stage.
In the Design stage, NWC ensures that an efficient, optimum and constructable design is being
delivered as per approved schedule, cost and quality. The detailed design to be developed by a
specialist design consultant.
The objective of this stage is that the selected Design Consultant completes the necessary
design work for the project.
2.1.1.5 Tender for Construction Stage.
In the Tender stage the project is prepared for engagement of the contractor through technical
and commercial inputs to the tender document, prequalification, evaluation and selection.
The objective of this stage is to select an appropriately qualified contracting firm to construct the
project design. This selectin is based on Project Procurement Strategy which developed in stage
2.
2.1.1.6 Construction Stage.
The objective of this stage is to ensure the satisfactory and safe construction of the assets by
the Contractor within the scope, Schedule, cost and quality targets set in the previous stages by
the selected Contractor.
2.1.1.7 Testing & Commissioning Stage.
The Testing & Commissioning stage may be included inside the construction stage and
construction stage gate review.
NWC’s objectives in the Testing & Commissioning stage include agreeing to / accepting:
● Handover plan and schedule.
● Acceptance criteria, including the provision of acceptable as-built information.
● Testing & Commissioning arrangements.
● Instructions for future operation and maintenance.
2.1.1.8 Handover and Closeout Stage.
The objective of this stage is that the project is handed over to operation and the project is
formally closed out.
Operation and Maintenance is neither a project management process nor a project stage. It is a
continuous business process undertaken to use the project deliverable (the built assets).

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2.1.2 Design & Build PLC (EPC)

It is a PLC that consists of the following six stages (see figure 2-2):
Figure 2-2 “Design & Build” Project Lifecycle

Five-Year Projects Portfolio Plan

MoF Fund Approval

Stage 1
Project Strategic Planning
Stage Gate 1

Stage 2
Initial Planning
Stage Gate 2

Stage 3
Tender
Stage Gate 3

Stage 4
Design & Construction
Stage Gate 4

Stage 5
Testing & Commissioning
Stage Gate 5

Stage 6
Handover & Closout
Stage Gate 6

Operations & Maintenance

2.1.2.1 Project Strategic Planning Stage.

The objective of this stage is to develop and approve the project business case in support with
required information and documents from NWC Five-Year Projects Portfolio Plan.
2.1.2.2 Initial Planning Stage.
In the Initial Planning stage, NWC sets up the Project Team under an appointed Project Manager
to:
● Define the project’s objectives as per the approved business case.
● Outline possible design options then select the most suitable option.
● Establish the execution strategy for the selected design option.
● Establish the optimal Project Procurement Strategy.
● Establish the commissioning targets, to manage risks from an early stage.
● Develop an integrated NWC Project Management Plan.

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The objective of this stage is to further plan, develop, test and refine the initial project parameters
established during the Five-Year Strategic Planning phase. This will help ensuring a reduction
in potential risks related to planning and design.
2.1.2.3 Tender Stage.
In the Tender stage the project is prepared for engagement of the contractor through technical
and commercial inputs to the tender document, prequalification, evaluation and selection.
The objective of this stage is to select an appropriately qualified contracting firm to complete the
project design and construct the project design. This selectin is based on Project Procurement
Strategy which developed in stage 2.
2.1.2.4 Design and Construction Stage.
In the Design and Construction stage, the NWC team ensures that the followings are provided
by the selected Contractor:
● Efficient, optimum and constructable design is developed by the contractor or
subcontracted specialist design consultant.
● Satisfactory and safe construction of the assets by the Contractor within the scope,
Schedule, cost and quality targets.
2.1.2.5 Testing & Commissioning Stage.
The Testing & Commissioning stage may be included inside the construction stage and
construction stage gate review.
NWC’s objectives in the Testing & Commissioning stage include agreeing to:
● Handover plan and schedule.
● Acceptance criteria, including the provision of acceptable as-built information.
● Testing & Commissioning arrangements.
● Instructions for future operation and maintenance.
2.1.2.6 Handover and Closeout Stage.
The objective of this stage is that the project is handed over to operation and the project is
formally closed out.
Operation and Maintenance is neither a project management process nor a project stage. It is a
continuous business process undertaken to use the project deliverable (the built assets).
2.2 Stage Gate Review (Team and Deliverables)
The Stage Gate process, which shall be performed according to “PMM-002-PLC-008 Stage Gate
Review”, is a comprehensive and systematic project delivery methodology to be performed at the end of
each stage in every capital project. It is performed allow the project’s stakeholders to make a decision on
the project’s advancement to the next stage of the project. The Stage Gate process contains a list of
deliverables that must be completed. The general frame of reference for the Stage Gate Review process
follows the principals of ISO/IEC/IEEE 15288:2023 “System and Software Engineering, System Life Cycle
Processes” to set the framework for project delivery.
2.2.1 Stage Gate Review Stakeholders
Stage Gate Process is performed by two members in collaboration with functional departments.
2.2.1.1 Gate Keeper
The Gate Keeper is responsible for making the decision whether the Stage Gate has been
passed or not and whether the project is allowed to move to the next stage.
The typical Gate Keeper is the Cluster Capital Projects VP.
The Gate Keeper is responsible for:
● Participating in the gate review meeting.
● Reviewing the gate review checklist.
● Deciding whether the project can proceed to the next stage or not based on the
completion of required stage deliverables.

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2.2.1.2 Gate Coordinator

The Gate Coordinator is responsible for managing the Stage Gate process.
The typical Gate Coordinator is the:
● Cluster Strategic Planning Director for the “Project Strategic Planning” Stage.
● Cluster Technical Services Director for the “Initial Planning” Stage
● Cluster Technical Services Director for the “Tender for Design” Stage
● Cluster Technical Services Director for the “Design” Stage
● Cluster Technical Services Director for the “Tender for Construction” Stage
● Business Unit Construction Director for the “Construction” Stage
● Business Unit Construction Director for the “Testing & Commissioning” Stage
● Business Unit Construction Director for the “Handover & Closeout” Stage
The Gate Coordinator is responsible for:
● Developing the stage gate checklist.
● Scheduling the gate review meeting.
● Collecting the stage deliverables completion evidences from the functional departments.
● Work on addressing stage deliverable issues (if any).
● Collecting the stage gate review decision.
2.2.1.3 Functional Department
The functional departments are:
● Cluster Strategic Planning department.
● Cluster Technical Services department.
● Cluster Project Scheduling & Control department.
● Cluster PMO department.
● BU Construction department.
The Functional Departments are responsible for providing the stage deliverables to the stage
gate coordinator.
The Functional Departments are responsible for:
● Completing the stage deliverables.
● Providing the stage deliverables completion evidences to the gate coordinator.
● Supporting the Gate Coordinator in addressing stage deliverable issues (if any).
2.2.2 Deliverables of Stages
There are 2 key standard deliverables of each stage;
1- The updated NWC Project Management Plan [must be updated with project information
to date prior to the Stage Gate Review process]
2- The Updated Risk Register [must be updated to with information from the Stage Gate
Review process before transitioning to the next stage]
2.2.2.1 Design-Bid-Build PLC
2.2.2.1.1 Stage 1: Project Strategic Planning Stage Deliverables
The following deliverables, which are created earlier in Five-Year Project Portfolio Planning,
are required to this stage:
● Initial Project Scope (PMM-003-FYP-080-008)
● Level 1 Schedule (PMM-003-FYP-080-036)
● Class 4 Cost Estimate (PMM-003-FYP-080-038)

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● Potential Risk Assessment (PMM-003-FYP-080-020)

● Approved Project Business Case (PMM-003-FYP-080-055)
2.2.2.1.2 Stage 2: Initial Planning Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Project Charter (PMM-005-INT-008)
● Land Acquisition Strategy (PMM-014-PRO-025-005)
● Stakeholder Engagement Plan (PMM-012-COM-013-030)
● Environmental Impact Assessment (PMM-015-HSE-013)
● Project Procurement Strategy (PMM-014-PRO-020-008)
● Land Acquisition (PMM-014-PRO-025-020)
● Scope of Work for the Design Contract (PMM-006-SCO-030-021)
● Deliverables List of the Design Project (PMM-006-SCO-030-021)
● Permitting Plan (PMM-005-INT-013-008)
● Updated Level 1 Project Schedule (PMM-008-SCH-013-008)
● Updated Class 4 Cost Estimate (PMM-009-COS-030-008)
● Risk Register (All Risk Management Section)
● Project Stakeholder Communication Plan (PMM-012-COM-013-040)
● Approved NWC Project Management Plan (PMM-005-INT-020-020) complete with
all sub-plans for all sections.
2.2.2.1.3 Stage 3: Tender for Design Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Updated Risk Register (All Risk Management Section)
● Request for Proposal (RFP) (PMM-014-PRO-030-008)
● Bid Evaluation Plan (PMM-008-SCH-020-008)
● Pre-Tender Meeting (PMM-014-PRO-040-011)
● Site Visit and Job Explanation Meeting (PMM-014-PRO-040-014)
● Tender Queries and Responses (PMM-014-PRO-030-018)
● Technical Evaluation Report (PMM-014-PRO-040-020)
● Commercial Evaluation Report (PMM-014-PRO-040-040)
● Level 2 Design Schedule (PMM-008-SCH-020-013)
● Contract Award Recommendation (PMM-014-PRO-040-050)
● Fund Allocation to the winning design consultant (Finance department)
● Design Contract (Capital Projects Procurement department)
● Updated NWC Project Management Plan (PMM-005-INT-020-040)
2.2.2.1.4 Stage 4: Design Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Level 3 Design Schedule (PMM-008-SCH-030-020)
● Design Project Management Plan (PMM-005-INT-020-050)
● 30% Design Package (PMM-008-SCO-030-035)
● Final Approved Value Engineering Study (PMM-007-VEN-040)
● Class 3 Cost Estimate (PMM-009-COS-040-020)
● Constructability Review (PMM-006-SCO-030)

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● 90% Design Package (PMM-006-SCO-030-048) with VE incorporation approval.

● O&M Design Review (PMM-006-SCO-030-026) and (PMM-006-SCO-030-050)
● Class 2 Cost Estimate (PMM-009-COS-040-030)
● Issued for Construction (IFC) Design (PMM-006-SCO-030-065)
● Construction Scope of Work (Scope Statement) for Construction Tender (PMM-006-
SCO-030-065)
● Deliverables List of the Construction Project (PMM-006-SCO-030-048)
● Independent Related Studies (if any such as geotechnical study) (PMM-006-SCO-
030-021) (PMM-006-SCO-030-023) (PMM-006-SCO-030-035) (PMM-006-SCO-
030-043) (PMM-006-SCO-030-048) (PMM-006-SCO-030-065)
● Progress Reports (PMM-012-COM-120)
● Variation Orders (if any) (PMM-005-INT-060)
● Updated Risk Register (All Risk Management Section)
● Stakeholder Approvals on 100% Design Package (PMM-006-SCO-030-065)
● 100% Design Package (PMM-006-SCO-030-070)
● Design Lessons Learned (PMM-005-INT-040)
2.2.2.1.5 Stage 5: Tender for Construction Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Updated Risk Register (All Risk Management Section)
● Request for Proposal (RFP) (PMM-014-PRO-030-008)
● Bid Evaluation Plan (PMM-008-SCH-020-008)
● Pre-Tender Meeting (PMM-014-PRO-040-011)
● Site Visit and Job Explanation Meeting (PMM-014-PRO-040-014)
● Tender Queries and Responses (PMM-014-PRO-030-018)
● Technical Evaluation Report (PMM-014-PRO-040-020)
● Commercial Evaluation Report (PMM-014-PRO-040-040)
● Level 2 Construction Schedule (PMM-008-SCH-020-013)
● Contract Award Recommendation (PMM-014-PRO-040-050)
● Fund Allocation to the winning contractor (Finance department)
● Site Access Granted (Shared Services)
● Design & Construction Contract (Capital Projects Procurement department)
● Updated NWC Project Management Plan (PMM-005-INT-020-040)
2.2.2.1.6 Stage 6: Construction Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Level 3 Construction Schedule (PMM-008-SCH-040-020)
● Construction Project Management Plan (PMM-005-INT-020-080)
● Revised BOQ (if required) (PMM-009-COS-060)
● Updated Risk Register (All Risk Management Section)
● Progress Reports (PMM-012-COM-130)
● Equipment Factory Acceptance Test Certificates (for project equipment) (PMM-010-
QUA-030-050)
● Variation Orders (if any) (PMM-005-INT-060)
● Closed Quality/HSE NCRs (PMM-012-COM-100-080)

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● Inspection Reports (PMM-010-QUA-030-050)

● As-Built Drawings (PMM-009-COS-070-020)
● Construction Lessons Learned (PMM-005-INT-040)
2.2.2.1.7 Stage 7: Testing & Commissioning Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● O&M Training (if any) (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-
006-SCO-065-040), (PMM-006-SCO-065-054) and (PMM-006-SCO-080)
● Testing & Commission Plan (T&C Plan) (PMM-006-SCO-055-070)
● Testing & Commission Method Statement (PMM-006-SCO-055-070)
● Updated Risk Register (All Risk Management Section)
● O&M Manuals (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-006-
SCO-065-040) and (PMM-006-SCO-065-054)
● Spares Parts List (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-006-
SCO-065-040) and (PMM-006-SCO-065-054)
● Accepted Testing & Commission Report (T&C Report) (PMM-006-SCO-055-133)
2.2.2.1.8 Stage 8: Handover & Closeout Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Warranty Documents (As per contractual requirements) (PMM-006-SCO-060-040),
(PMM-006-SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-SCO-065-
054)
● As-built and GIS information and drawings (PMM-006-SCO-060-040), (PMM-006-
SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-SCO-065-054)
● Assets information as per Assets Registration Manual template (PMM-006-SCO-
060-040), (PMM-006-SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-
SCO-065-054)
● Initial Acceptance & Handover Certificate (PMM-006-SCO-060-050) and (PMM-006-
SCO-065-050)
● Snag List Clearance (of initial acceptance process) (PMM-006-SCO-060-060) and
(PMM-006-SCO-065-060)
● Final Invoice (PMM-009-COS-070-020)
● Final Actual Cost (PMM-009-COS-070-020)
● Project Documents Handover to NWC (PMM-006-SCO-060-040) and (PMM-006-
SCO-065-040)
● Final Safety Incident Records (PMM-006-SCO-060-008)
● Snag List Clearance (of final acceptance process) (PMM-006-SCO-070-070)
● Final Acceptance Certificate (PMM-006-SCO-070-070)
● Resolution of Commercial Items (PMM-005-INT-070-020) and (PMM-014-PRO-100-
008)
● Project Lessons Learned Report (PMM-005-INT-040-030)
● Project Closure Notice (PMM-005-INT-070)
● Contractor Evaluation Records (PMM-005-INT-070-020)
● Updated NWC Project Management Plan (PMM-005-INT-020-040)
2.2.2.2 Design & Build PLC (EPC)
2.2.2.2.1 Stage 1: Project Strategic Planning Stage Deliverables
The following deliverables that are created earlier in the 5YPPP are required to this stage:
● Initial Project Scope (PMM-003-FYP-080-008)

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● Level 1 Schedule (PMM-003-FYP-080-036)

● Class 4 Cost Estimate (PMM-003-FYP-080-038)
● Potential Risk Assessment (PMM-003-FYP-080-020)
● Business Case (PMM-003-FYP-080-055)
2.2.2.2.2 Stage 2: Initial Planning Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Project Charter (PMM-005-INT-008)
● Land Acquisition Strategy (PMM-014-PRO-025-005)
● Stakeholder Engagement Plan (PMM-012-COM-013-030)
● Environmental Impact Assessment (PMM-015-HSE-013)
● Project Procurement Strategy (PMM-014-PRO-020-008)
● Land Acquisition (PMM-014-PRO-025-020)
● Permitting Plan (PMM-005-INT-013-008)
● Updated Level 1 Project Schedule (PMM-008-SCH-013-008)
● Risk Register (All Risk Management Section)
● 30% Design Package (PMM-006-SCO-030-023)
● Final Approved Value Engineering Study (PMM-007-VEN-040)
● Deliverables List of the Design & Construction Project (PMM-006-SCO-030-023)
● Class 3 Cost Estimate (PMM-009-COS-030-020)
● Project Stakeholder Communication Plan (PMM-012-COM-013-040)
● NWC Project Management Plan (PMM-005-INT-020-020)
2.2.2.2.3 Stage 3: Tender Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Updated Risk Register (All Risk Management Section)
● Request for Proposal (RFP) (PMM-014-PRO-030-008)
● Bid Evaluation Plan (PMM-008-SCH-020-008)
● Pre-Tender Meeting (PMM-014-PRO-040-011)
● Site Visit and Job Explanation Meeting (PMM-014-PRO-040-014)
● Tender Queries and Responses (PMM-014-PRO-030-018)
● Technical Evaluation Report (PMM-014-PRO-040-020)
● Commercial Evaluation Report (PMM-014-PRO-040-040)
● Level 2 Design & Construction Schedule (PMM-008-SCH-020-013)
● Contract Award Recommendation (PMM-014-PRO-040-050)
● Fund Allocation to the winning contractor (Finance department)
● Site Access Granted (Shared Services)
● Design & Construction Contract (Capital Projects Procurement department)
● Updated NWC Project Management Plan (PMM-005-INT-020-040)
2.2.2.2.4 Stage 4: Design & Construction Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Level 3 Design & Construction Schedule (PMM-008-SCH-040-020)
● Design & Construction Project Management Plan (PMM-005-INT-020-080)

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● Constructability Review (PMM-006-SCO-030)

● 90% Design Package (PMM-006-SCO-030-048) with VE incorporation approval.
● O&M Design Review (PMM-006-SCO-030-026) and (PMM-006-SCO-030-050)
● Issued for Construction (IFC) Design (PMM-006-SCO-030-065)
● Independent Related Studies (if any such as geotechnical study) Independent
Related Studies (if any such as geotechnical study) (PMM-006-SCO-030-021)
(PMM-006-SCO-030-023) (PMM-006-SCO-030-035) (PMM-006-SCO-030-043)
(PMM-006-SCO-030-048) (PMM-006-SCO-030-065)
● Stakeholder Approvals on 100% Design Package (PMM-006-SCO-030-065)
● 100% Design Package (PMM-006-SCO-030-070)
● Revised BOQ (if required) (PMM-009-COS-060)
● Updated Risk Register (All Risk Management Section)
● Progress Reports (PMM-012-COM-130)
● Equipment Factory Acceptance Test Certificates (for project equipment) (PMM-010-
QUA-030-050)
● Variation Orders (if any) (PMM-005-INT-060)
● Closed Quality/HSE NCRs (PMM-012-COM-100-080)
● Inspection Reports (PMM-010-QUA-030-050)
● As-Built Drawings (PMM-009-COS-070-020)
● Design & Construction Lessons Learned (PMM-005-INT-040)
2.2.2.2.5 Stage 5: Testing & Commissioning Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● O&M Training (if any) (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-
006-SCO-065-040), (PMM-006-SCO-065-054) and (PMM-006-SCO-080)
● Testing & Commission Plan (T&C Plan) (PMM-006-SCO-055-070)
● Testing & Commission Method Statement (PMM-006-SCO-055-070)
● Updated Risk Register (All Risk Management Section)
● O&M Manuals (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-006-
SCO-065-040) and (PMM-006-SCO-065-054)
● Spares Parts List (PMM-006-SCO-060-040), (PMM-006-SCO-060-056), (PMM-006-
SCO-065-040) and (PMM-006-SCO-065-054)
● Accepted Testing & Commission Report (T&C Report) (PMM-006-SCO-055-133)
2.2.2.2.6 Stage 6: Handover & Closeout Stage Deliverables
The following deliverables are to be developed in this stage as per the project type:
● Warranty Documents (As per contractual requirements) (PMM-006-SCO-060-040),
(PMM-006-SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-SCO-065-
054)
● As-built and GIS information and drawings (PMM-006-SCO-060-040), (PMM-006-
SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-SCO-065-054)
● Assets information as per Assets Registration Manual template (PMM-006-SCO-
060-040), (PMM-006-SCO-060-056), (PMM-006-SCO-065-040) and (PMM-006-
SCO-065-054)
● Initial Acceptance & Handover Certificate (PMM-006-SCO-060-050) and (PMM-006-
SCO-065-050)
● Snag List Clearance (of initial acceptance process) (PMM-006-SCO-060-060) and
(PMM-006-SCO-065-060)

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● Final Invoice (PMM-009-COS-070-020)

● Final Actual Cost (PMM-009-COS-070-020)
● Project Documents Handover to NWC (PMM-006-SCO-060-040) and (PMM-006-
SCO-065-040)
● Final Safety Incident Records (PMM-006-SCO-060-008)
● Snag List Clearance (of final acceptance process) (PMM-006-SCO-070-070)
● Final Acceptance Certificate (PMM-006-SCO-070-070)
● Resolution of Commercial Items (PMM-005-INT-070-020) and (PMM-014-PRO-100-
008)
● Project Lessons Learned Report (PMM-005-INT-040-030)
● Project Closure Notice (PMM-005-INT-070)
● Contractor Evaluation Records (PMM-005-INT-070-020)
● Updated NWC Project Management Plan (PMM-005-INT-020-040)

2.3 PMM-002-PLC-010 Stage Gate Review Process

2.3.1 Objective
The objective of this process is to ensure that the project progressively delivers the intended
deliverables within the targeted stages before allowing moving to the next stage.
2.3.2 Policies
Policies for this process are:
1. All capital projects shall apply stage gate reviews.
2. For every project, a stage gate review process should be performed by:
i. Gate Keeper who shall be the Cluster Capital Projects VP.
ii. Gate Coordinator who shall be the:
a. Cluster Strategic Planning Director for the “Project Strategic Planning” Stage.
b. Cluster Technical Services Director for the “Initial Planning” Stage
c. Cluster Technical Services Director for the “Tender for Design” Stage / “Tender”
Stage.
d. Cluster Technical Services Director for the “Design” Stage
e. Cluster Technical Services Director for the “Tender for Construction” Stage
f. Business Unit Construction Director for the “Construction” Stage / “Design &
Construction” Stage.
g. Business Unit Construction Director for the “Testing & Commissioning” Stage
h. Business Unit Construction Director for the “Handover & Closeout” Stage
3. The Functional Departments are responsible for providing the stage deliverables to the
stage gate coordinator.
4. The stage gate review meeting must be scheduled.
5. A typical prerequisite to conducting the Stage Gate Review meeting is the updated NWC
PMP with project information up to the date prior to conducting the meeting. The updated
Risk Register including all information prior to and after the meeting is also required as a
condition to conclude and approve the output of the Stage Gate review meeting. Both the
Updated PMP and Updated Risk Register are key entrance and exit criteria to the review
process.
6. Stage Gate process is performed to provide assurance that the required deliverables are
completed at each stage of the project.

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7. The Stage Gate Review process is not merely a “Checklist” process of counting
deliverables. The Stage Gate multi-disciplinary committee is responsible to challenge the
deliverables and “Validate” that each deliverable fulfills its intended purpose and value,
otherwise provide comments against the deliverable in the Stage Gate Checklist and plan
for follow up rectification of those comments or further risk allocation/mitigation measures
to be approved prior to concluding the stage gate review process.
8. The project must successfully pass through the stage gate before officially commencing the
next stage.
9. If a project is planned to be designed by an inhouse designer, the tender for design stage
shall be skipped.
2.3.3 Work Flow Chart
Figure 2-3 PMM-002-PLC-010 Stage Gate Review Process Work Flow Chart

2.3.4 Procedures
2.3.4.1 PMM-002-PLC-010-008 Schedule the Stage Gate Review Meeting

1. At the beginning of every stage, notify the Gate Keeper about the stage start.
2. Prior to the end of every stage, schedule the Stage Gate Review Meeting to verify the
completion of the stage deliverables.

Responsible: Gate Coordinator

Accountable: Gate Keeper

Consulted: Cluster Scheduling & Control Director NWC Project Manager (if assigned)

Informed: Gate Keeper NWC Project Manager (if assigned)

2.3.4.2 PMM-002-PLC-010-020 Collect the Deliverables Completion Evidences

1. After the Functional Departments complete the stage deliverables, the Stage Gate
Coordinator shall collect the deliverables completion evidences from the functional
departments.
Refer to the list of stage deliverables in paragraph (2.2.2 Deliverables of Stages) above.
Refer also to the RACI for deliverable completion Responsibility/Accountability.

Responsible: Gate Coordinator

Accountable: Gate Keeper

Cluster Technical Services Director NWC Project Manager (if assigned)
Consulted:
Cluster Scheduling & Control Director Design Consultant
Cluster PMO Director Supervision Consultant
Cluster Strategic Planning Director Contractor
Informed: Gate Keeper NWC Project Manager (if assigned)

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2.3.4.3 PMM-002-PLC-010-030 Conduct the Stage Gate Review Meeting

1. Prior to the stage gate review meeting, the Stage Gate Coordinator shall prepare the
stage deliverables checklist to the Stage Gate Keeper using (PMF-002-PLC-042 Stage
Gate Review Checklist).
2. If any, add new deliverables to the Stage Gate Checklist as per the project
requirements.
3. Conduct the Stage Gate Review Meeting by the Stage Gate Coordinator and the Stage
Gate Keeper and check the completion of the stage deliverables to the satisfaction of
the stage gate committee against (PMF-002-PLC-042 Stage Gate Review Checklist)
and provide the required evidence.
4. Decide one of the following three decisions as follows then sign the checklist:
a. “Pass” when all required deliverables found complete.
b. “Conditional Pass” When some deliverables have comments.
c. “No Pass” when some stage deliverables found not complete.
If the decision is:
d. “Pass”, the project is allowed to move to the next stage.
e. “Conditional Pass”, the project is allowed to move to the next stage only after
an action plan to rectify the comments on the deficient deliverables is
implemented to the satisfaction of the review committee and the remaining
residual risk allocation/mitigation is decided/planned and transferred to the next
stage through the updated risk register as approved by the committee.
f. “No Pass”, direct the functional departments to complete the stage deliverables
then repeat the whole process.

Responsible: Gate Coordinator Gate Keeper

Accountable: Gate Keeper

NWC Project Manager (if assigned)
Consulted: Cluster Technical Services Director
Design Consultant
Cluster Scheduling & Control Director
Supervision Consultant
Cluster PMO Director
Contractor
Cluster Strategic Planning Director
Cluster Risk Section Head
Technical Services GM
Informed: PMO GM
NWC Project Manager (if assigned)
Scheduling & Control GM
Cluster Risk Section Head

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Section 3 - Five-Year Projects Portfolio

Planning

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 Section 3 - Five-Year Projects Portfolio Planning

3 Five-Year Projects Portfolio Planning

The subject of this particular section of the Project Management Manual (PMM) is Five-Year Projects Portfolio
Planning. This section standardizes processes for developing and approving NWC:
● Five-Year Projects Portfolio Plan (5YPPP).
● Annual Capital Works Plan.
These two to be developed and approved:
● for the capital projects that to be performed by Projects Cluster.
● based on the Local and National Master Plans that are described in this section.
Five-Year Projects Portfolio Plans shall help clarifying the relationship between the National and NWC
objectives and the NWC’s Five-Year Capital Budget Cap. They are an important tool to assist NWC to identify,
plan, assess and prioritize the progressive delivery of their national infrastructure projects.
NWC shall adopt a strategic portfolio planning approach that culminates in the production of an Annual Capital
Works Plan for its projects within the 5YPPP. By undertaking annual, process driven, integrated forward
planning, NWC will be better equipped to identify the “right projects” for execution on best timing. NWC shall
prepare their Annual Capital Works Plan for submission to the MOF, for budget review and approval.
The NWC Annual Capital Works Plan is to be developed prior to submitting to the MOF for budget approval
and prior to any project be permitted to start Project Registration stage.
The Five-Year Projects Portfolio Planning enables the following key benefits:
● Early alignment of NWC initiatives with broader strategic objectives such as 2030 Vision and National
Transformation Program (NTP).
● Improved understanding of the project complexities.
● Early identification of potential investment risks.
● Establishment of a Business Case to assist with project feasibility assessment.
● Preparation of more coordinated initiatives, with increased levels of inter-disciplinary and cross sectoral
consensus.
● Improved levels of project prioritization within an NWC’s portfolio of project.
● Improved alignment of annual NWC CAPEX with MOF budgets.
The roadmap used in preparing the Five-Year Projects Portfolio Planning is illustrated below in Figure 3-1.
The high-level process map for the Five-Year Projects Portfolio Planning is illustrated next in Figure 3-2.

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Figure 3-1 Road Map for Five-Year Projects Portfolio Planning

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Figure 3-2 High-Level Process Map for Project 5YPPP

3.1 PMM-003-FYP-010 Develop Local and National Master Plans

3.1.1 Objective
The objective of this process is to develop Local and National Master Plans based on the defined
strategic objectives, existing infrastructure and supply & demand data to identify potential projects.
The development includes performing site options testing, preparing initial cost estimates and
schedules.

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3.1.2 Policies
Policies for this process are:
1. Every Cluster is responsible to develop its own Local Master Plan.
2. The supply and demand analysis shall be the basis for:
i. The establishment of potential projects.
ii. The identification of potential site locations for every project.
3. Every Local Master Plan to be reviewed and updated:
i. at least once every five years
ii. when major changes occur in city development or the supply system
4. In case of not assigning a Local Master Plan Consultant, the Cluster Strategic Planning
department shall perform the LMP Consultant activities.
5. The National Master Plan to be developed based on all the cluster master plans.
3.1.3 Work Flow Chart
Figure 3-3 PMM-003-FYP-010 Develop Local and National Master Plans Work Flow Chart

3.1.4 Procedures
3.1.4.1 PMM-003-FYP-010-010 Collect NWC Objectives for Local Master Plans

1. Collect, review and consider NWC policy framework and strategic objectives.
2. Collect, review and consider the objectives of the Projects Cluster.

Responsible: Local Master Plan Consultant

Accountable: Cluster Strategic Planning Director

Cluster Strategic Planning
Consulted: Cluster Capital Projects VP
Manager
Cluster O&M Director
National Master Plan Consultant
Informed: Cluster Strategic Planning Director National Master Plan Consultant

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3.1.4.2 PMM-003-FYP-010-020 Collect Primary Data for Local Master Plans

1. Identify, analyze and report the stakeholders and their engagements.

2. Identify, analyze and report the population projection such as changes in:
a. population
b. demographics
c. levels of urbanization
d. urban residential densities
3. Request all relevant stakeholders to communicate their needs.
4. Transfer stakeholder needs into projects requirements.
5. Rate the Relative Importance of Projects Requirements.
6. Achieve consensus on the project requirements and approach by the project
stakeholders.

Responsible: Local Master Plan Consultant

Accountable: Cluster Strategic Planning Director

Cluster Strategic Planning
Consulted: Cluster Capital Projects VP
Manager
Cluster O&M Director
National Master Plan Consultant
Informed: Cluster Strategic Planning Director National Master Plan Consultant

3.1.4.3 PMM-003-FYP-010-030 Identify Infrastructure Gap

1. Identify the demand for infrastructure.

2. Assess and confirm infrastructure gap within each of the six Clusters as follows:
a. Establish Baseline: Confirm the present baseline of the existing water and
wastewater infrastructures.
b. Generate Infrastructure Forecast: Generate the future infrastructure forecast,
for a minimum 30-year horizon, based on the anticipated rates of development
growth/change.
c. Establish Infrastructure Gap: Establish the gap for infrastructure, by assessing
the difference between the baseline and the forecast generated.
d. Identify Potential Projects: To address the confirmed infrastructure gap (per
Cluster), potential projects shall be identified and listed.
3. Develop and submit the infrastructure gap report.

Responsible: Local Master Plan Consultant

Accountable: Cluster Strategic Planning Director

Cluster Capital Projects VP
Consulted: Cluster Strategic Planning Manager
Cluster Asset Management Director
National Master Plan Consultant
Cluster O&M Director
Cluster Strategic Planning Director Strategic Studies Director
Informed:
Projects Portfolio Planning Director National Master Plan Consultant

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3.1.4.4 PMM-003-FYP-010-040 Approve Infrastructure Gap Report

1. The Cluster Strategic Planning Director shall review and endorse the Infrastructure
Gap Report and raise it within 7 days to the Cluster Capital Projects VP for approval.
2. Cluster Capital Projects VP shall review and approve the Infrastructure Gap Report it
within 3 days.

Responsible: Cluster Strategic Planning Director Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Local Master Plan Consultant
Consulted: Cluster Strategic Planning Director
National Master Plan Consultant
Cluster Technical Services Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Strategic Studies Director
Cluster PMO Director
Projects Portfolio Planning Director
Cluster HSSE Director
Cluster Operation VP
Capital Projects Strategic Planning GM
Informed: National Master Plan Consultant
Cluster Strategic Planning Director
3.1.4.5 PMM-003-FYP-010-050 Develop the Hydraulic Model and Calibration

1. Develop the water hydraulic model.

2. Develop the wastewater hydraulic model.
3. Perform model calibration.
4. Develop and submit a model report.

Responsible: Local Master Plan Consultant

Accountable: Cluster Strategic Planning Director

Engineering Director
Consulted: Cluster Asset Management Director
Cluster Capital Projects VP
Cluster O&M Director
Cluster Strategic Planning Director
Cluster GIS Specialist
Cluster Technical Services Director
Cluster Strategic Planning Director Strategic Studies Director
Informed:
Projects Portfolio Planning Director National Master Plan Consultant
3.1.4.6 PMM-003-FYP-010-060 Approve Hydraulic Model and Calibration Report

1. The Cluster Strategic Planning Director shall review and endorse the Hydraulic Model
and Calibration Report and raise it within 7 days to the Cluster Capital Projects VP for
approval.
2. Cluster Capital Projects VP shall review and approve the Hydraulic Model and
Calibration Report within 3 days.

Responsible: Cluster Strategic Planning Director Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Local Master Plan Consultant
Consulted: Cluster Strategic Planning Director
National Master Plan Consultant
Cluster Technical Services Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Strategic Studies Director
Cluster PMO Director
Projects Portfolio Planning Director
Cluster HSSE Director
Cluster Operation VP
Strategic Studies Director
Informed: National Master Plan Consultant
Cluster Strategic Planning Director

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3.1.4.7 PMM-003-FYP-010-070 Develop Local Master Plan

1. Perform every contractual activity and study that is essential to develop the Local
Master Plan such as:
a. Water Strategy Scheme
b. Wastewater Strategy Scheme
c. Cost Estimates
d. Private Sector Participation (PSP)
e. Capital Improvement Plan (CIP)
f. Implementation Plan
2. Consult the Cluster Operation VP and Cluster O&M department about the Local
Master Plan, collect and manage their feedback.
3. Compile and consolidate the produced deliverables to create the Local Master Plan.
4. Raise the Local Master Plan to Cluster Strategic Planning Director.

Responsible: Local Master Plan Consultant

Accountable: Cluster Strategic Planning Director

Cluster Strategic Planning Director
Consulted: Projects Portfolio Planning Director
Cluster Technical Services Director
Strategic Studies Director
Cluster Scheduling & Control Director
National Master Plan Consultant
Cluster PMO Director
Cluster Operation VP
Cluster HSSE Director
Informed: Cluster Strategic Planning Director National Master Plan Consultant

3.1.4.8 PMM-003-FYP-010-080 Approve the Local Master Plan

1. The Cluster Strategic Planning Director shall review and endorse the Local Master
Plan and raise it to the Cluster Capital Projects VP within 14 days for endorsement.
2. The Cluster Capital Projects VP shall review and endorse the Local Master Plan and
raise it to the Projects Execution VP within 2 days for endorsement.
3. The Projects Execution VP shall review and approve the Local Master Plan within 4
days.

Responsible: Cluster Strategic Planning Director Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

National Master Plan Consultant
Consulted: Cluster Strategic Planning Director
Business Unit Construction Director
Cluster Technical Services Director
Strategic Studies Director
Cluster Scheduling & Control Director
Projects Portfolio Planning Director
Cluster PMO Director
Capital Projects Strategic Planning
Cluster HSSE Director
GM
Local Master Plan Consultant
Cluster Operation VP
Capital Projects Strategic Planning GM
Informed: National Master Plan Consultant
Cluster Strategic Planning Director
3.1.4.9 PMM-003-FYP-010-090 Audit Cluster Local Master Plan

1. Strategic Studies Director shall direct the strategic planning team to monitor, review
and comment on the local master plan and its deliverables in consultation with:

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a. Capital Projects Strategic Planning GM.

b. Project Portfolio Planning Director.
c. Cluster Capital Projects VP
d. Cluster Strategic Planning Director
2. Cluster Strategic Planning Director shall forward any requested deliverables to the
Strategic Studies Director.
3. Cluster Strategic Planning Director shall provide any information related to the LMP
contract including project and consultant performance on regular basis and when
requested by strategic planning team at HQ.
4. Strategic Studies Director shall review the deliverables to ensure the alignment of the
Local Master Plan with the strategic objectives and Master Planning Guidelines.
5. Strategic Studies Director shall provide feedback and outcome of any audit or review
to the Cluster Capital Projects VP / Cluster Strategic Planning Director.
6. The Cluster Capital Projects VP / Cluster Strategic Planning Director shall inform the
consultant to consider the HQ observation.
7. Strategic Studies Director shall escalate any issue not resolved by the cluster team to
Capital Projects Strategic Planning GM / Projects & Technical Services VP.
Strategic Studies Director Cluster Capital Projects VP
Responsible:
Cluster Strategic Planning Director
Accountable: Capital Projects Strategic Planning GM
Cluster Strategic Planning Director Projects Portfolio Planning Director
Consulted:
Local Master Plan Consultant Capital Projects Strategic Planning
National Master Plan Consultant GM
Projects Execution VP Cluster Capital Projects VP
Informed:
Capital Projects Strategic Planning GM Cluster Strategic Planning Director
Cluster Operation VP Local Master Plan Consultant
3.1.4.10 PMM-003-FYP-010-100 Develop National Master Plan

1. Review the Local Master Plans that approved at cluster level.

2. Perform every contractual activity or study that is essential to develop the National
Master Plan (e.g., developing inception report, Master Plan Guidelines, Bulk Water
Development Plans, Water Leakage Study, etc.).
3. Compile, consolidate and integrate the Local Master Plans to create The National
Master Plan.
4. Identify and address:
a. Interfaces between Local Master Plans.
b. incompatibilities between Local Master Plans.
c. overlapping aspects such as objectives or resources.
5. Perform integration, from national perspective, between Local Master Plans to
eliminate any potential issues in both National and Local Master Plans.
6. Raise the National Master Plan to Capital Projects Strategic Planning GM for approval.

Responsible: National Master Plan Consultant

Accountable: Capital Projects Strategic Planning GM

Strategic Studies Director
Consulted: Local Master Plan Consultants
Projects Portfolio Planning Director
Cluster Capital Projects VP
Capital Projects Strategic Planning
Cluster Strategic Planning Directors
GM

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Capital Projects Strategic Planning GM

Informed: Local Master Plan Consultants
Cluster Capital Projects VP
3.1.4.11 PMM-003-FYP-010-110 Approve National Master Plan

1. Capital Projects Strategic Planning GM shall pass the National Master Plan to Strategic
Studies Director and Projects Portfolio Planning Director for review and endorsement.
2. Strategic Studies Director and Projects Portfolio Planning Director shall review the
National Master Plan and endorse it.
3. Capital Projects Strategic Planning GM shall review the National Master Plan and
approve it.
4. Capital Projects Strategic Planning GM shall forward the approved National Master
Plan to all Cluster Capital Projects VPs to adopt and formally make any required
adjustments in Local Master Plans.
Strategic Studies Director Capital Projects Strategic Planning
Responsible:
Projects Portfolio Planning Director GM
Accountable: Capital Projects Strategic Planning GM
PMO GM
Consulted:
Cluster Capital Projects VP Capital Projects Strategic Planning
National Master Plan Consultant GM
Local Master Plan Consultants Technical Services GM
Scheduling & Control GM Strategic Partnerships Management
GM
National Master Plan Consultant
Informed: Cluster Capital Projects VP
Projects Execution VP
3.1.4.12 PMM-003-FYP-010-120 Update Local Master Plan

1. The Cluster Strategic Planning Director shall review and update the Local Master Plan
and raise it to the Cluster Capital Projects VP for endorsement:
a. at least once every five years
b. when major changes occur in city development or the supply system
2. The Cluster Capital Projects VP shall review and endorse the updated Local Master
Plan and raise it within 4 days to the Capital Projects Strategic Planning GM for review.
3. The Capital Projects Strategic Planning GM shall review the updated Local Master
Plan in consultation with:
a. National Master Plan Consultant.
b. Strategic Studies Director.
c. Projects Portfolio Planning Director.
d. Cluster Capital Projects VP.
4. The Capital Projects Strategic Planning GM shall:
a. approve the updated Local Master Plan.
b. reflect the approved updates to the National Master Plan.
Cluster Capital Projects VP
Responsible: Local Master Plan Consultant
Capital Projects Strategic Planning
Cluster Strategic Planning Director
GM
Accountable: Capital Projects Strategic Planning GM

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Cluster Strategic Planning Director Local Master Plan Consultant

Consulted:
Cluster Technical Services Director National Master Plan Consultant
Cluster Scheduling & Control Director Business Unit Construction Director
Cluster PMO Director Strategic Studies Director
Cluster HSSE Director Projects Portfolio Planning Director
Informed: Projects Execution VP

3.2 PMM-003-FYP-020 Develop Cluster and NWC Initial Projects Portfolio Plans
3.2.1 Objective
The objective of this process is to develop cluster and NWC Initial Projects Portfolios. The
development is based on the Local and National Master Plans.
3.2.2 Policies
Policies for this process are:
1. NWC to collect from MOF Annual Capital Works Budget Cap, for the forthcoming Five-Year.
This cap will help guide the early identification of potential projects, their screening, cross-
sectoral integration and prioritization.
2. Every Cluster is responsible to develop its own Initial Projects Portfolio Plan.
3. The NWC Initial Projects Portfolio Plan must include all the Cluster Initial Projects Portfolio
Plans.
4. Every project in the Cluster Initial Projects Portfolio must have:
i. confirmed demands.
ii. confirmed site locations.
iii. updated Project Scope.
iv. class 5 cost estimate.
v. level 1 schedule.
vi. card for Adding a Project to 5YPP.
3.2.3 Work Flow Chart
Figure 3-4 PMM-003-FYP-020 Develop Cluster and NWC Initial Projects Portfolio Plans Work Flow Chart

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3.2.4 Procedures
3.2.4.1 PMM-003-FYP-020-010 Collect National and NWC Objectives for 5YPPP

1. Collect, review and consider NWC policy framework and strategic objectives.
2. Collect, review and consider the objectives of the Projects Cluster.
3. Develop 5YPPP objectives. These objectives shall:
a. completely be in line with NWC strategic objectives.
b. be “SMART” objectives (i.e., be Specific, Measurable, Achievable, Relevant
and Time related).
c. clearly state what the Projects Cluster intends to do to achieve the set strategic
objectives.
References to be reviewed by NWC include but not limited to:
d. Existing Royal Directives.
e. The National Water Strategy.
f. The KSA VISION 2030 - National Economic and Development Goals and
Objectives.
g. The National Transformation Program (NTP).
h. Other Vision Realization Programs and Initiatives.
i. The Current KSA Development Plans.
j. Existing NWC Strategy/Policies/Initiatives/Plans.

Responsible: Cluster Strategic Planning Manager Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Cluster Capital Projects VP Cluster Asset Management Director
Consulted:
Cluster Scheduling & Control Director Cluster O&M Director
Cluster Technical Services Director Capital Projects Strategic Planning
Cluster PMO Director GM
Capital Projects Strategic Planning
Informed: Cluster Capital Projects VP
GM
3.2.4.2 PMM-003-FYP-020-020 Develop Cluster Initial 5YPPP

1. Review the proposed projects in approved Local Master Plans against the NWC’s
medium-term Capital Budget.
2. Identify the projects to be included in Cluster Initial Projects Portfolio.
3. Utilizing information from the local master plan, review and update (if required) the
followings for every project in the Cluster Initial Projects Portfolio:
a. confirmed demands.
b. confirmed site locations.
c. updated Project Scope.
d. class 5 cost estimate.
e. level 1 schedule.
4. Develop for every project a card using (PMF-003-FYP-023 Card for Adding a Project
to 5YPP).
5. Review and update (if required) the projects prioritization in the Local Master Plan.
6. Develop the Cluster Initial Projects Portfolio.
7. Use (PMF-003-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist) to help
develop Cluster Initial Projects Portfolio.

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8. Send the Cluster Initial Projects Portfolio to the Projects Portfolio Planning Director for
inclusion in the NWC Initial 5YPPP.

Responsible: Cluster Strategic Planning Manager Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Cluster Finance GM
Consulted: Cluster Capital Projects VP
Operation Excellence GM
Cluster Scheduling & Control Director
Asset Management GM
Cluster PMO Director
Corporate Finance Planning &
Cluster Asset Management Director
Reporting GM
Cluster O&M Director
National Master Plan Consultant
Projects Portfolio Planning Director Cluster O&M Director
Informed:
Cluster Capital Projects VP Operation Excellence GM
Cluster Asset Management Director Asset Management GM
3.2.4.3 PMM-003-FYP-020-040 Develop NWC Initial 5YPPP

1. Review Cluster Initial Projects Portfolio Plans.

2. Review all projects against the NWC’s medium-term Capital Budget.
3. Confirm projects to be included in NWC Initial Projects Portfolio.
4. Ensure, for every project in NWC Initial Projects Portfolio, there are:
a. confirmed demands.
b. confirmed site locations.
c. updated Project Scope.
d. class 5 cost estimate.
e. level 1 schedule.
f. card for adding a project to 5YPP.
5. Prioritize projects.
6. Develop the NWC Initial Projects Portfolio.
7. Use (PMF-003-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist) to help
develop NWC Initial Projects Portfolio.
8. Send the NWC Initial Projects Portfolio to Capital Projects Strategic Planning GM for
confirmation.
This procedure shall be performed within 7 days.

Responsible: Projects Portfolio Planning Director Strategic Studies Director

Accountable: Capital Projects Strategic Planning GM

Capital Projects Strategic Planning
Consulted:
GM
Cluster Capital Projects VP
Technical Services GM
Cluster Strategic Planning Manager
Strategic Partnerships Management
Cluster Asset Management Director
GM
Cluster O&M Director
Operation Excellence GM
Scheduling & Control GM
Asset Management GM
PMO GM
Corporate Finance Planning &
Reporting GM
Informed: Capital Projects Strategic Planning GM

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3.2.4.4 PMM-003-FYP-020-050 Approve NWC Initial 5YPPP

1. Review and approve NWC Initial Projects Portfolio within 2 days.

2. Use (PMF-003-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist) to help
review and confirm NWC Initial Projects Portfolio.

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Cluster Capital Projects VP Strategic Studies Director
Consulted:
Cluster Strategic Planning Director Projects Portfolio Planning Director
Projects Execution VP
Informed: Cluster Capital Projects VP
Projects & Technical Services VP
Operation Excellence GM
Projects Portfolio Planning Director
Asset Management GM
Strategic Studies Director

3.3 PMM-003-FYP-030 Screen NWC Initial Projects Portfolio

3.3.1 Objective
The objective of this process is to upgrade the NWC Initial Projects Portfolio by screening the projects
by strategic case assessment, potential risk assessment, cross sectoral integration, monetary
threshold of CSE. It also includes the prioritizing the projects that pass the screening.
3.3.2 Policies
Policies for this process are:
1. Every Cluster is responsible for developing its own Cluster Initial Projects Portfolio Plan.
2. In this process, the proposed projects shall be converted into a Draft 5YPPP after:
i. adequate scrutinization on these projects for potential risks.
ii. assessing for strategic alignment (alignment with National and NWC objectives).
3. All potential projects are to be assessed for Cross-Sector Integration. This assessment is
to ensure proposed projects are:
i. well-coordinated with other projects that not performed by NWC.
ii. deliver efficiencies wherever possible.
4. All projects that pass the Strategic Outline Cases (Go/No-Go decision) are to be assessed
for potential private sector participation before being prioritized within the portfolio.

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3.3.3 Work Flow Chart

Figure 3-5 PMM-003-FYP-030 Screen NWC Initial Projects Portfolio Work Flow Chart

3.3.4 Procedures
3.3.4.1 PMM-003-FYP-030-010 Perform Project Strategic Assessment for 5YPPP

1. For every project in the Cluster Local Master Plan, Undertake Strategic Assessment
to:
a. provide initial justification for the need to invest.
b. provide the Strategic Case for the project.
2. Consider the key elements in this exercise which are:
a. Initiate proposal investment.
b. Identify key stakeholders and analyze stakeholder interests and influences.
These stakeholders shall participate in workshops to identify investment
drivers.
c. Arrange and facilitate workshops to describe the project, its strategic context
and alignment to existing policies or strategies, and to identify and agree
investment drivers (problems and opportunities). These workshops shall be
attended by the identified key stakeholders.
d. Finalize and compile the workshop outputs and draft the strategic assessment
document.
3. Use (PMF-003-FYP-007 Strategic Assessment Template) and (PMF-003-FYP-006
Strategic Assessment Checklist).
4. Send the Project Strategic Assessment to Cluster Capital Projects VP for approval

Responsible: Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Consulted: Projects Portfolio Planning Director

Informed: Cluster Capital Projects VP Projects Portfolio Planning Director

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3.3.4.2 PMM-003-FYP-030-020 Perform Project Potential Risk Assessment for 5YPPP

1. Perform Potential Risk Assessment exercise to examine risks at an early stage

through a Risk Workshop No. 1.
The attendees of the Risk Workshop No. 1 must be a diverse of SME of all project
disciplines such as strategic planning, risk management, projects interdependencies,
HSSE, stakeholders’ management, etc.
2. Combine the outputs from the impact assessments to determine the overall Potential
Risk Assessment.
3. Determine overall Potential Risk Assessment.
4. Review and make possible readjustments to the Strategic Assessment that prepared
in (PMM-003-FYP-030-010 Undertake Project Strategic Assessment)
5. Use (PMF-003-FYP-021 Risk Potential Assessment Template).
6. Send the Project Potential Risk Assessment to Cluster Capital Projects VP for
approval.

Responsible: Cluster Risk Section Head Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Cluster Technical Services
Consulted: Cluster Asset Management Director
Director
Cluster O&M Director
Cluster HSSE Director
Cluster Scheduling & Control Director
Risk Management Manager
Cluster Capital Projects VP Business Planning Director
Informed:
Projects Portfolio Planning Director Risk Management Manager
3.3.4.3 PMM-003-FYP-030-025 Approve Project Strategic Assessment and Project
Potential Risk Assessment

1. Review:
a. Project Strategic Assessment
b. Project Potential Risk Assessment
2. Approve the two assessments.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Strategic Planning Manager Cluster HSSE Director
Consulted:
Cluster Technical Services Director Strategic Studies Director
Cluster Risk Section Head Projects Portfolio Planning Director
Cluster Strategic Planning Director
Informed: Strategic Studies Director
Cluster Technical Services Director
3.3.4.4 PMM-003-FYP-030-030 Assess Project Cross-Sectoral Integration

1. Perform a cross-sectoral integration assessment to ensure that projects that NWC is

executing or planning to execute:
a. are based on a homogenous set of data and policies.
b. are place-based.
c. are well-coordinated with other affected or affecting Entities (i.e., external
stakeholders and their plans).
d. deliver an integrated cross sectoral outcome.
2. To perform cross-sectoral integration assessment, perform its three primary
assessments:

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a. Ensure consistency in the use of data, projections and policy assumptions

(population, education, growth rates, environmental and planning policies,
local content and Saudization, etc.).
b. Identify interdependencies (with other Entities) using (PMF-003-FYP-012
Inter-Dependency Matrix Template) such as forming cross-sectoral
partnerships through forming Working Groups to:
i. check for fragmentation.
ii. check for duplication of services.
iii. check for bottlenecks.
iv. facilitate information exchange.
v. etc.
c. Maximize solution enhancement through collaborative management across
related Entities.
3. Undertake a cross-sectoral integration assessment for every project in the Cluster
Initial Projects Portfolio using (PMF-003-FYP-013 Cross-Sector Integration Checklist).
It identifies areas of collaboration or conflict that to be addressed. It helps identify and
confirm which projects within its portfolio are suitable for potential private sector
participation.
4. Use (PMF-003-FYP-013 Cross-Sector Integration Checklist).
5. Send the Project Cross-Sectoral Integration Assessment to Cluster Capital Projects
VP for approval.

Responsible: Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Consulted: Projects Portfolio Planning Director

Informed: Projects Portfolio Planning Director Business Planning Director

3.3.4.5 PMM-003-FYP-030-033 Approve Project Cross-Sectoral Integration Assessment

Review and approve Project Cross-Sectoral Integration Assessment.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Strategic Planning Director Projects Portfolio Planning
Consulted:
Strategic Studies Director Manager
Informed: Cluster Strategic Planning Director Strategic Studies Director

3.3.4.6 PMM-003-FYP-030-036 Develop and Approve the Level 1 Schedule at Cluster

1. Utilizing information from the local master plan, in collaboration with Cluster Strategic
Planning Director, the Cluster Scheduling Section Head shall develop the project level
1 schedule for inclusion in the project cards list.
2. The Cluster Scheduling & Control Director shall review and approve the project level
1 schedule.
3. Send the approved project level 1 schedule to the Cluster Strategic Planning Manager
for inclusion in the project cards list.
Cluster Scheduling & Control
Responsible: Cluster Scheduling Section Head
Director
Accountable: Cluster Capital Projects VP

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Scheduling Control Director Cluster Risk Section Head

Consulted:
Cluster Technical Services Director Cluster Strategic Planning Director
Informed: Cluster Capital Projects VP Cluster Strategic Planning Director

3.3.4.7 PMM-003-FYP-030-038 Develop and Approve Class 5 Cost Estimate at Cluster

1. Utilizing information from the local master plan, in collaboration with Cluster Strategic
Planning Director, the Cluster Technical Support Manager and Cluster Cost
Estimation Specialist shall develop class 5 cost estimate.
2. Consider, under (Section 11 - Project Cost Management), the:
a. Table 11-1 Cost Estimate Classes.
b. Requirements to develop each Cost Estimate Class.
3. Utilize the NWC Cost Database.
4. The Cluster Technical Services Director shall review and approve the class 5 cost
estimate.
5. Send the class 5 cost estimate to the Cluster Strategic Planning Manager for inclusion
in the project cards list.
Cluster Technical Support Manager Cluster Technical Services
Responsible:
Cluster Cost Estimation Specialist Director
Accountable: Cluster Capital Projects VP
Cost Estimation Manager
Consulted: Cluster Scheduling Section Head
Cluster Engineering Manager
Cluster Risk Section Head
Cluster Strategic Planning Director
Cluster Capital Projects VP Capital Projects Strategic Planning
Informed:
Cluster Strategic Planning Director GM
3.3.4.8 PMM-003-FYP-030-040 Develop Project Cards List

1. The Cluster Strategic Planning Manager shall develop the project cards list using
(PMF-003-FYP-025 5YPP Project Cards List).
2. Cluster Strategic Planning director shall review and endorse the project cards list
then send it to Cluster Capital Projects VP.

Responsible: Cluster Strategic Planning Manager Cluster Strategic Planning Director

Accountable: Cluster Strategic Planning Director

Cluster Engineering Manager
Consulted: Cluster Scheduling Section Head
Business Unit Construction
Cluster Cost Estimation Specialist
Director
Cluster Risk Section Head
Projects Portfolio Planning Director
Informed: Cluster Capital Projects VP

3.3.4.9 PMM-003-FYP-030-050 Approve Project Cards List at Cluster

1. Cluster Projects VP shall review and endorse the project cards list using (PMF-003-
FYP-025 5YPP Project Cards List) then send it to the Capital Projects Strategic
Planning GM.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Consulted: Cluster Strategic Planning Manager

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Informed: Capital Projects Strategic Planning GM Projects Portfolio Planning Director

3.3.4.10 PMM-003-FYP-030-055 Approve Project Cards List at HQ

1. Review and approve the project cards list (PMF-003-FYP-025 5YPP Project Cards
List).
2. Send back the project cards list to the Cluster Capital Projects VP.

Responsible: Capital Projects Strategic Planning GM

Accountable: Capital Projects Strategic Planning GM

Projects Portfolio Planning
Consulted: Technical Services GM
Director
Scheduling & Control GM
Strategic Studies Director
PMO GM
Cluster Capital Projects VP
Informed: Projects Portfolio Planning Director

3.3.4.11 PMM-003-FYP-030-060 Confirm Projects Suitability for Private Sector Participation

1. Asses every project that in the project cards list to determine whether they are suitable
or not for potential private sector participation.
2. Forward all projects identified as potentially suitable for private sector participation to
the National Centre for Privatization (NCP) for formal assessment.
3. Receive the response from NCP and:
a. Projects that deemed (by the NCP) suitable for private sector participation,
shall follow the NCP’s defined project delivery route.
b. Projects that deemed (by the NCP) NOT suitable for private sector
participation, shall continue in 5YPP planning for further action.

Responsible: Cluster Capital Projects VP Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Strategic Studies Director
Consulted: National Master Plan Consultant
National Centre for Privatization
Projects Portfolio Planning Director
(NCP)
Informed: Capital Projects Strategic Planning GM

3.3.4.12 PMM-003-FYP-030-070 Prepare Project Prioritization

1. To perform this procedure use as a guide (PMF-003-FYP-019 Public Project

Prioritization Guidelines).
2. Develop prioritization criteria utilizing:
a. merit factors identified earlier such as:
i. Risk
ii. Benefit Cost Ratio
iii. Social and Environmental Index
b. Beside additional merit factors such as:
i. National Security
ii. Regional Equity
iii. Quick Wins

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3. In the criteria, assign a weight to every merit factor. It is possible to apply

normalization for each merit result for more realistic results.
4. Apply the criteria to prioritize the remaining projects of Cluster Initial Projects Portfolio
(i.e., those to be funded by the MOF). The value of each assessed project is known
as “overall investment score”.
5. Map projects from the highest overall scores to lowest on to a Five-Year Plan.
6. Ensure that the total cost estimates does not exceed the MOF budget cap.

Responsible: Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

National Master Plan Consultant Cluster Asset Management
Consulted:
Projects Portfolio Planning Director Director
Strategic Studies Director Cluster O&M Director
Cluster Capital Projects VP Cluster HSSE Director
Informed: Capital Projects Strategic Planning GM Cluster Capital Projects VP

3.4 PMM-003-FYP-040 Develop Draft 5YPPP and Submit for Review

3.4.1 Objective
The objective of this process is to collate the projects, along with all back up developed
documentation to form a draft 5YPP plan then submit it to the Joint Working Group to perform an
independent review on it.
3.4.2 Policies
Policies for this process are:
1. The draft 5YPPP with all its documentation must be submitted to the Joint Working Group
for formal review and written feedback.
3.4.3 Work Flow Chart
Figure 3-6 PMM-003-FYP-040 Develop Draft 5YPPP and Submit for Review Work Flow Chart

3.4.4 Procedures
3.4.4.1 PMM-003-FYP-040-010 Develop Cluster Draft 5YPPP

1. The Cluster Strategic Planning Director and Cluster Capital Projects VP shall:
a. Based on outcomes from the previous phase, prepare a Cluster Draft 5YPPP.
i. Include in the draft plan all projects which shall seek for MOF funding
approval.

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ii. Develop an initial financial plan for the 5YPPP.

iii. Attach documentations prepared in the previous processes to the
projects included within the draft plan.
b. Use (PMF-003-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist) to
help prepare Cluster Draft 5YPPP.
c. Endorse the Cluster Draft 5YPPP.
2. The Cluster Capital Projects VP shall raise the Cluster Draft 5YPPP to Capital Projects
Strategic Planning GM.

Responsible: Cluster Strategic Planning Director Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

National Master Plan Consultant Cluster Asset Management Director
Consulted:
Projects Portfolio Planning Director Cluster O&M Director
Strategic Studies Director Cluster HSSE Director
Informed: Capital Projects Strategic Planning GM

3.4.4.2 PMM-003-FYP-040-015 Develop NWC Draft 5YPPP

1. Receive from each cluster its Cluster Draft 5YPPP.

2. Compile, consolidate and integrate all Cluster Draft 5YPPPs to develop NWC Draft
5YPPP.
a. Include in the draft plan all projects which shall seek for MOF funding approval.
b. Attach documentations prepared in the previous processes to the projects
included within the draft plan.
3. Use (PMF-003-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist) to help
prepare NWC Draft 5YPPP.

Responsible: Projects Portfolio Planning Director Budgeting Manager

Projects Portfolio Planning Manager Strategic Studies Director

Accountable: Capital Projects Strategic Planning GM

Cluster Strategic Planning Director Asset Management GM
Consulted:
Cluster Capital Projects VP Corporate Finance Planning &
National Master Plan Consultant Reporting GM
Operation Excellence GM Projects & Technical Services VP
Cluster Capital Projects VP
Informed: Projects & Technical Services VP
Capital Projects Strategic Planning GM
3.4.4.3 PMM-003-FYP-040-020 Submit NWC Draft 5YPPP to the Joint Working Group for
Review

1. Submit the draft Five-Year Projects Portfolio Plan to the Joint Working Group for
review.
2. Present the draft Five-Year Projects Portfolio Plan and all its documentations to the
Joint Working Group.
3. If the Joint Working Group inquire about submitted plan, promptly reply.

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Cluster Capital Projects VP
Consulted: Joint Working Group
Projects & Technical Services VP

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Informed: Joint Working Group

3.5 PMM-003-FYP-050 Update 5YPPP and Prepare Annual Capital Works Plan
3.5.1 Objective
The objective of this process is to review the feedback received from the Joint Working Group and
update the NWC Draft 5YPPP by incorporating the Joint Working Group feedback.
Also, it includes preparation of the Annual Capital Works Plan which represents the key document
for requesting the Annual Budget from MOF.
3.5.2 Policies
Policies for this process are:
1. The feedback that received from the Joint Working Group must be incorporated in the NWC
Draft 5YPPP.
2. All Projects in the NWC Draft 5YPPP must be sub-categorized into five Annual Capital
Works Plans. Annual plan of the specific year shall be the supporting document in
requesting the Annual Budget of that year from MOF.
3.5.3 Work Flow Chart
Figure 3-7 PMM-003-FYP-050 Update 5YPPP and Prepare Annual Capital Works Plan Work Flow Chart

3.5.4 Procedures
3.5.4.1 PMM-003-FYP-050-010 Receive and Review the Formal Joint Working Group
Feedback

1. Capital Projects Strategic Planning GM shall:

a. receive from the Joint Working Group formal written feedback with potential
recommendations for revisions / additions, etc.
b. transmit the received feedback to Projects Portfolio Planning Director and
Strategic Studies Director to split the feedback into cluster packages.
2. Projects Portfolio Planning Director and Strategic Studies Director shall split the
feedback into cluster packages.
3. If needed, Capital Projects Strategic Planning GM, Projects Portfolio Planning Director
and Strategic Studies Director shall seek further clarification or discussion with Joint
Working Group.
4. When required, they shall seek a post-review consultation with Joint Working Group.

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5. If cluster team needs a clarification or post-review consultation from the Joint Working
Group, they shall obtain it through Capital Project Strategic Planning team at HQ.
Strategic Studies Director Capital Projects Strategic Planning
Responsible:
Projects Portfolio Planning Director GM
Accountable: Capital Projects Strategic Planning GM

Consulted: Joint Working Group National Master Plan Consultant

Cluster Capital Projects VP
Informed: Joint Working Group
Cluster Strategic Planning Manager
3.5.4.2 PMM-003-FYP-050-020 Update Cluster Draft 5YPPP and Develop the Final Cluster
5YPPP

1. Study the feedback received from Joint Working Group.

2. Update Cluster Draft 5YPPP by:
a. incorporating the feedback in the Cluster Draft 5YPPP.
b. performing any consequent change, revision, re-prioritization on the Cluster
Draft Five-Year Projects Portfolio Plan.
3. Develop the Final Cluster 5YPPP.
4. Endorse the Final Cluster 5YPPP.
5. Use (PMF-003-FYP-006 Final Five-Year Projects Portfolio Plan Checklist) to help
develop the Final Cluster 5YPPP.
Cluster Strategic Planning Manager
Responsible: Cluster Capital Projects VP
Cluster Strategic Planning Director
Accountable: Cluster Capital Projects VP
National Master Plan Consultant Cluster Asset Management
Consulted:
Projects Portfolio Planning Director Director
Strategic Studies Director Cluster O&M Director
Informed: Capital Projects Strategic Planning GM

3.5.4.3 PMM-003-FYP-050-030 Develop and Approve Cluster Annual Capital Works Plan

1. Cluster Strategic Planning Manager shall prepare the Cluster Annual Capital Works
Plan using the updated 5YPPP which is required by the MOF to formally assess and
ultimately grant annual budget to NWC and send it to the Cluster Capital Projects VP
for approval.
2. Cover in Cluster Annual Capital Works Plan the works from the Five-Year Projects
Portfolio Plan that shall be performed only in the forthcoming year. The required
associated financial obligations shall be attached to the Cluster Annual Capital Works
Plan.
3. Cluster Capital Projects VP shall review and approve the Cluster Annual Capital
Works Plan then forward it, along with the final Cluster 5YPPP within 2 days, to Capital
Projects Strategic Planning GM to obtain the annual budget from MOF.

Responsible: Cluster Strategic Planning Director Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Asset Management
Consulted: National Master Plan Consultant
Director
Cluster Technical Services Director
Cluster O&M Director
Cluster Scheduling & Control Director
Projects Portfolio Planning Director
Cluster PMO Director
Strategic Studies Director
Informed: Capital Projects Strategic Planning GM

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3.6 PMM-003-FYP-060 Develop Final 5YPPP and Annual Capital Works Plan and
Submit to MOF for Budget Approval
3.6.1 Objective
The objective of this process is to the objective of this process is to develop the Final NWC 5YPPP
and Final NWC Annual Capital Works Plan. It also includes submitting the NWC Annual Capital
Works Plan to MOF to obtain the annual approval.
3.6.2 Policies
Policies for this process are:
1. The Final NWC 5YPPP is the result of consolidation of the six Final Cluster 5YPPPs.
2. The Final NWC Annual Capital Works Plan is the result of consolidation of the six Final
Cluster Annual Capital Works Plan.
3. Every cluster is responsible to annually update the Cluster 5YPP in alignment with the Local
Master Plan. The cluster is to obtain approval on the updated Cluster 5YPP form Capital
Projects Strategic Planning GM as per the approved updating procedures. The guideline
(PMF-003-FYP-022 5YPP Update Guidelines) to be used in updating process.
3.6.3 Work Flow Chart
Figure 3-8 PMM-003-FYP-060 Develop Final 5YPPP and Annual Capital Works Plan and Submit to MOF for
Budget Approval Work Flow Chart

3.6.4 Procedures
3.6.4.1 PMM-003-FYP-060-010 Develop the Final NWC 5YPPP and Final NWC Annual
Capital Works Plan

1. Receive from clusters the finalized version of:

a. Cluster 5YPPP
b. Cluster Annual Capital Works Plan
2. Compile, consolidate and integrate the received Final Cluster 5YPPPs to develop Final
NWC 5YPPP.
3. Compile, consolidate and integrate the received Final Cluster Annual Capital Works
Plan to develop Final NWC Annual Capital Works Plan.
4. Use (PMF-003-FYP-006 Final Five-Year Projects Portfolio Plan Checklist) to help
develop the Final Cluster 5YPPP.
This procedure shall be performed within 7 days.
Projects Portfolio Planning Manager Strategic Studies Director
Responsible:
Budgeting Manager Projects Portfolio Planning Director
Accountable: Capital Projects Strategic Planning GM
Cluster Strategic Planning Director Asset Management GM
Consulted:
Cluster Capital Projects VP Corporate Finance Planning &
National Master Plan Consultant Reporting GM
Operation Excellence GM Projects & Technical Services VP

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Cluster Capital Projects VP

Informed: Projects & Technical Services VP
Capital Projects Strategic Planning GM
3.6.4.2 PMM-003-FYP-060-020 Submit Final NWC 5YPPP and Final NWC Annual Capital
Works Plan to the Joint Working Group for Approval

1. Capital Projects Strategic Planning GM shall endorse the Final NWC 5YPPP and Final
NWC Annual Capital Works Plan before sending to the Joint Working Group within 2
days.
2. Submit Final NWC 5YPPP and Final NWC Annual Capital Works Plan to the Joint
Working Group for approval.
3. Present the Final NWC 5YPPP and Final NWC Annual Capital Works Plan and all
related documentations to the Joint Working Group.
4. If the Joint Working Group provided comment about the submitted plans, the Cluster
Strategic Planning department shall fulfill the comments.

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Cluster Capital Projects VP
Consulted: Projects & Technical Services VP
Strategic Studies Director
Joint Working Group
Projects Portfolio Planning Director
Informed: Joint Working Group

3.6.4.3 PMM-003-FYP-060-030 NWC Approval on NWC 5YPPP and NWC Annual Capital
Works Plan

1. After receiving the Joint Working Group approval, give final approval on the NWC
5YPPP and NWC Annual Capital Works Plan.
2. Upload the approved NWC 5YPPP and NWC Annual Capital Works Plan to OPPM.

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Cluster Capital Projects VP
Consulted: Projects Portfolio Planning Director
Strategic Studies Director
Projects & Technical Services VP Strategic Studies Director
Informed:
Cluster Capital Projects VP Projects Portfolio Planning Director
3.6.4.4 PMM-003-FYP-060-040 Obtain Budget Approval on NWC 5YPPP and NWC Annual
Capital Works Plan from MOF

1. Submit to MOF the approved:

a. NWC 5YPPP
b. NWC Annual Capital Works
2. Receive the MOF response after the MOF:
a. reviews the NWC Annual Capital Works Plan in conjunction with NWC 5YPPP.
b. reviews and confirms the NWC Five-Year capital budget request against its
fiscal cap and formally responds by (approval / approval with conditions /
reject).

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

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Cluster Capital Projects VP

Consulted: Projects & Technical Services VP
Strategic Studies Director
MOF
Projects Portfolio Planning Director
Informed: MOF

3.6.4.5 PMM-003-FYP-060-050 Distribute the Approval from the Joint Working Group and
MOF for Implementation

1. Share with Projects & Technical Services VP and Cluster Capital Projects VP the:
a. 5YPPP and Annual Plan approvals from Joint Working Group.
b. Budget (approval / approval with conditions) from MOF
2. Share with Joint Working Group the Budget (approval / approval with comments) form
MOF.

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Consulted: Strategic Studies Director Projects Portfolio Planning Director

Cluster Capital Projects VP
Informed: Joint Working Group
Projects & Technical Services VP

3.7 PMM-003-FYP-070 Five-Year Projects Portfolio Variation Control

3.7.1 Objective
The objective of this process is to ensure that all projects to be executed are part of the Five-Year
Projects Portfolio and fulfill the 5YPP development requirements.
3.7.2 Policies
Policies for this process are:
1. Every project to be executed under Projects Cluster must be part of the Five-Year Projects
Portfolio Plan and must fulfill (by documented evidence) all 5YPP development requirements
that described in this section such as:
i. Need for the projects (the problem).
ii. Strategic Assessment.
iii. Class 5 Cost Estimation.
iv. Level 1 Schedule.
v. Preferred site option.
vi. Risk List.
vii. Cross Sector Integration.
viii. 2. CSE approval (obtained by Capital Projects Strategic Planning dept.).
2. Every request for a new project must have an approved project card whether new or
updated.
3. The (PMF-003-FYP-020 5YPP Variation Register) must be continuously updated during this
process.

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3.7.3 Work Flow Chart

Figure 3-9 PMM-003-FYP-070 Five-Year Projects Portfolio Variation Control Work Flow Chart

3.7.4 Procedures
3.7.4.1 PMM-003-FYP-070-010 Develop 5YPP Variation Documents

1. Monitor any need to make any change to 5YPPP such as:

a. execute a new project that not included in the approved 5YPPP.
b. make a change to an aspect of a project that included in the 5YPPP.
2. If monitored a need to:
a. create a new project:
i. Identify and document the need (the problem).
ii. Perform a Strategic Assessment for the needed project.
iii. Develop Class 5 Cost Estimation.
iv. Develop Level 1 Schedule for the project.
v. Identify a preferred site option.
vi. Identify, in a workshop, potential project risks and document the
identified risks in a list.
vii. Perform a Cross Sector Integration research and document the
activities and results using (PMF-003-FYP-012 Inter-Dependency
Matrix Template) and (PMF-003-FYP-013 Cross-Sector Integration
Checklist).
viii. Develop a Project Card using (PMF-003-FYP-023 Card for Adding A
Project to 5YPP).
b. change an aspect in a project in the 5YPPP:
i. Identify and document the need (the problem).
ii. Conduct and document a Strategic Assessment for the needed
change.
iii. Propose a revised version of the followings as needed after
performing required studies, consultation and investigations:
1. Class 5 Cost Estimation
2. Level 1 Schedule.

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3. preferred site location.

4. Risk Lists.
5. Cross Sector Integration research.
6. Project Card (PMF-003-FYP-025 5YPP Project Cards List).
3. Refer to the process (PMM-003-FYP-030 Screen NWC Initial Projects Portfolio).

Responsible: Cluster Strategic Planning Director Cluster Strategic Planning Manager

Accountable: Cluster Capital Projects VP

Business Unit Construction Director
Consulted: Cluster Scheduling & Control Director
Cluster Capital Projects VP
Cluster Technical Services Director
Capital Projects Strategic Planning
Cluster PMO Director
GM
Informed: Cluster Capital Projects VP

3.7.4.2 PMM-003-FYP-070-020 Develop and Raise the 5YPP Variation Request

1. Cluster Strategic Planning Manager and Cluster Strategic Planning Director shall:
a. develop an 5YPP Variation Request using (PMF-003-FYP-015 5YPP
Variation Request Approval) as per the project engagement.
b. Consolidate and attach the above created documents and any other needed
documents.
c. Raise the request to the Cluster Capital Projects VP.
2. Cluster Capital Projects VP shall:
a. review and endorse the:
i. Project Card (individually)
ii. The whole 5YPP Variation Request (PMF-003-FYP-015 5YPP
Variation Request Approval)
b. send the 5YPP Variation Request to Capital Projects Strategic Planning GM
for further process.
3. Cluster Strategic Planning Manager shall update the (PMF-003-FYP-020 5YPP
Variation Register).
This procedure shall be completed within 7 days.
Cluster Strategic Planning Director
Responsible: Cluster Capital Projects VP
Cluster Strategic Planning Manager
Accountable: Cluster Capital Projects VP
Cluster Technical Services Director Business Unit Construction Director
Consulted:
Cluster Scheduling & Control Director Capital Projects Strategic Planning
Cluster PMO Director GM
Informed: Capital Projects Strategic Planning GM

3.7.4.3 PMM-003-FYP-070-030 Review the 5YPP Variation Request and Identify the Impact
on the 5YPP

1. Projects Portfolio Planning Director and Strategic Studies Director shall:

a. review all documents of the 5YPP Variation Request with the relevant
departments in the Projects Cluster.
b. identify the 5YPP Variation Request impact on the Five-Year Projects
Portfolio.

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c. document this identification and add it to the 5YPP Variation Request.

d. raise the 5YPP Variation Request to Capital Projects Strategic Planning GM
2. Capital Projects Strategic Planning GM shall send the 5YPP Variation Request to Joint
Working Group for review and approval.
3. Notify the Cluster Strategic Planning Manager to update the (PMF-003-FYP-020 5YPP
Variation Register).
Projects Portfolio Planning Director Capital Projects Strategic Planning
Responsible:
Strategic Studies Director GM
Accountable: Capital Projects Strategic Planning GM
Cluster Strategic Planning Director
Consulted: PMO GM
Cluster Technical Services Director
Projects Portfolio Planning Director
Cluster Capital Projects VP
Strategic Studies Director
Technical Services GM
Project Requester
Scheduling & Control GM
Informed: Cluster Capital Projects VP

3.7.4.4 PMM-003-FYP-070-060 Submit the 5YPP Variation Request to the Joint Working
Group for Approval

1. Capital Projects Strategic Planning GM shall endorse the 5YPP Variation Request
before sending to the Joint Working Group within 2 days.
2. Submit the 5YPP Variation Request to the Joint Working Group for approval.
3. Present the 5YPP Variation Request and all related documentations to the Joint
Working Group.
4. If the Joint Working Group provided comment about submitted the 5YPP Variation
Request, the Cluster Strategic Planning Department shall fulfill the comments.
5. Notify the Cluster Strategic Planning Manager to update the (PMF-003-FYP-020 5YPP
Variation Register).

Responsible: Capital Projects Strategic Planning GM

Accountable: Capital Projects Strategic Planning GM

Projects Portfolio Planning Director Projects & Technical Services VP
Consulted:
Strategic Studies Director Joint Working Group
Informed: Joint Working Group

3.7.4.5 PMM-003-FYP-070-070 Approve the 5YPP Variation Request at CP Strategic

Department

1. After receiving the Joint Working Group approval, give the final approval on the 5YPP
Variation Request within 5 days.
2. Notify the Cluster Strategic Planning Manager to update the (PMF-003-FYP-020 5YPP
Variation Register).

Responsible: Capital Projects Strategic Planning GM

Accountable: Projects & Technical Services VP

Consulted: Projects Portfolio Planning Director Strategic Studies Director

Informed: Projects & Technical Services VP

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3.7.4.6 PMM-003-FYP-070-090 Implement the Approved 5YPP Variation

1. Capital Projects Strategic Planning GM shall send the approved 5YPP Variation to
Projects Portfolio Planning Director for implementations.
2. Projects Portfolio Planning Director shall:
a. notify all relevant stakeholders about approved variation and the variation
order.
b. implement the approved 5YPPP Variation and update all required documents.
c. publish the varied 5YPPP.
This procedure shall be completed within 5 days.
3. Notify the Cluster Strategic Planning Manager to update the (PMF-003-FYP-020 5YPP
Variation Register).
Capital Projects Strategic Planning
Responsible: Projects Portfolio Planning Director
GM
Accountable: Capital Projects Strategic Planning GM

Consulted: Strategic Studies Director

Informed: Relevant Stakeholders

3.8 PMM-003-FYP-080 Project Business Case Development

3.8.1 Objective
The objective of this process is to standardize the development of the Business Cases in manner
that ensures most accuracy by the far available information for capital projects.
3.8.2 Policies
Policies for this process are:
1. Every capital project must be issued a business case except the projects that financed by
other entities (Strategic Partners and External Clients). The strategic alignment and supply
& demand for these projects shall be reviewed by the Strategic Planning Department.
2. All business cases must be approved by the Capital Projects Strategic Planning GM except
the:
i. Construction projects of estimate cost < SAR 20M shall be approved by Projects
Execution VP.
ii. Projects for studies, design, supervision or any consultancy services that not related to
a capital project shall be approved by the Technical Services GM.
iii. PMO projects shall be approved by the PMO GM.
iv. Projects related to Non-Revenue Water (NRW) reduction, networks replacements and
enhancement shall be approved by the Smart Operations GM.
3. Always engage the specialists in Cost Estimation, scheduling and Risk Management in
Clusters to support the Business Case with a realistic budget estimate, an estimate of the
project duration, a consideration of sequencing and packaging within the program/portfolio.

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3.8.3 Work Flow Chart

Figure 3-10 PMM-003-FYP-080 Project Business Case Development Work Flow Chart

3.8.4 Procedures
3.8.4.1 PMM-003-FYP-080-010 Perform Project Strategic Assessment for the Business
Case

1. Undertake Strategic Assessment using (PMF-003-FYP-003 Initial Project Scope

Outline Form) to:
a. provide initial justification for the need to invest.
b. form the Strategic Case in the “Business Case” identifying the proposed
solution (Initial Project Scope).
2. Consider the key elements in this exercise which are:
a. Describe the needs and identify the proposed solution (Initial Project Scope).
b. Identify key stakeholders and analyze stakeholder interests and influences.
c. Draft the strategic assessment document.
3. Use (PMF-003-FYP-007 Strategic Assessment Template) and (PMF-003-FYP-006
Strategic Assessment Checklist).
4. Send the Project Strategic Assessment to Cluster Capital Projects VP for approval

Responsible: Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Consulted: Projects Portfolio Planning Director

Informed: Cluster Capital Projects VP Projects Portfolio Planning Director

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3.8.4.2 PMM-003-FYP-080-020 Perform Project Potential Risk Assessment for the Business
Case

1. Perform Potential Risk Assessment exercise to examine the risk.

2. Combine the outputs from the impact assessments to determine the overall Potential
Risk Assessment.
3. Determine overall Potential Risk Assessment.
4. Review and make possible readjustments to the Strategic Assessment that prepared
in (PMM-003-FYP-080-010 Perform Project Strategic Assessment for the Business
Case).
5. Use (PMF-003-FYP-021 Potential Risk Assessment).
6. Send the Project Potential Risk Assessment to Cluster Capital Projects VP for
approval.

Responsible: Cluster Risk Section Head Cluster Strategic Planning Director

Accountable: Cluster Capital Projects VP

Cluster Asset Management Director Cluster Technical Services Director
Consulted:
Cluster O&M Director Cluster HSSE Director
Cluster Scheduling & Control Director Risk Management Manager
Cluster Capital Projects VP Business Planning Director
Informed:
Projects Portfolio Planning Director Risk Management Manager
3.8.4.3 PMM-003-FYP-080-025 Approve Project Strategic Assessment and Project
Potential Risk Assessment

1. Review:
a. Project Strategic Assessment
b. Project Potential Risk Assessment
2. Approve the two assessments.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster HSSE Director
Consulted: Cluster Strategic Planning Manager
Strategic Studies Director
Cluster Technical Services Director
Projects Portfolio Planning
Cluster Risk Section Head
Director
Cluster Strategic Planning Director
Informed: Strategic Studies Director
Cluster Technical Services Director
3.8.4.4 PMM-003-FYP-080-036 Revise and Approve the Level 1 Schedule at Cluster

1. The Cluster Scheduling Section Head shall review and update the project level 1
schedule for inclusion in the business case.
2. Cluster Scheduling & Control Director shall review and approve the revised project
level 1 schedule.
3. Send the approved revised project level 1 schedule to the Cluster Strategic Planning
Manager for inclusion in the business case.
Cluster Scheduling & Control
Responsible: Cluster Scheduling Section Head
Director
Accountable: Cluster Capital Projects VP
Scheduling Control Director Cluster Risk Section Head
Consulted:
Cluster Technical Services Director Cluster Strategic Planning Director

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Informed: Cluster Capital Projects VP Cluster Strategic Planning Director

3.8.4.5 PMM-003-FYP-080-038 Develop and Approve Class 4 Cost Estimate at Cluster

1. The Cluster Technical Support Manager and Cluster Cost Estimation Specialist shall:
a. develop class 4 cost estimate.
b. consider, under (Section 11 - Project Cost Management), the:
i. Table 11-1 Cost Estimate Classes.
ii. Requirements to develop each Cost Estimate Class.
c. utilize the NWC Cost Database.
2. The Cluster Technical Services Director shall:
a. review and approve the class 4 cost estimate.
b. send the class 4 cost estimate to the Cluster Strategic Planning Manager for
inclusion in the business case.
Cluster Technical Support Manager
Responsible: Cluster Technical Services Director
Cluster Cost Estimation Specialist
Accountable: Cluster Capital Projects VP
Cost Estimation Manager
Consulted: Cluster Scheduling Section Head
Cluster Engineering Manager
Cluster Risk Section Head
Cluster Strategic Planning Director
Cluster Capital Projects VP Capital Projects Strategic Planning
Informed:
Cluster Strategic Planning Director GM
3.8.4.6 PMM-003-FYP-080-040 Develop Project Business Case

1. The Cluster Strategic Planning Manager shall prepare the business case within 2 days.
It should include the five cases of the Business Case Model, namely:
a. Strategic Case
b. Economic Case
c. Commercial Case
d. Financial Case
e. Management Case
2. In development, use (PMF-003-FYP-001 Business Case), (PMF-003-FYP-018 Five
Case Model Guidelines) and (PMF-003-FYP-004 Business Case Checklist).
3. Consult the Cluster Operation VP and Cluster O&M department about the Business
Case, collect and manage their feedback.
4. Cluster Strategic Planning director shall review and endorse the followings within 2
days:
a. Business Case.
b. Business Case Approval Form.
5. Send the two documents to Cluster Capital Projects VP for endorsement.

Responsible: Cluster Strategic Planning Manager Cluster Strategic Planning director

Accountable: Cluster Strategic Planning Director

Cluster Scheduling Section Head Cluster Engineering Manager
Consulted:
Cluster Cost Estimation Specialist Business Unit Construction Director
Cluster Risk Section Head Projects Portfolio Planning Director
Informed: Cluster Capital Projects VP

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3.8.4.7 PMM-003-FYP-080-050 Endorse the Project Business Case at Cluster

1. Review the business case using (PMF-003-FYP-004 Business Case Checklist).

2. Endorse the business case and the business case approval form within 2 days using
(PMF-003-FYP-002 Business Case Approval Form).
3. Raise the two documents for approval as follows:
a. The project of value < SAR 20M, to the Projects Execution VP.
b. The projects for studies, design, supervision and consultancy services that not
related to a capital project, to the Technical Services GM.
c. The projects related to Non-Revenue Water (NRW) reduction, networks
replacements and enhancement, to the Smart Operations GM.
d. The other Projects, to the Capital Projects Strategic Planning GM.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Consulted: Cluster Strategic Planning Manager Project Requester

Informed: Capital Projects Strategic Planning GM Projects Portfolio Planning Director

3.8.4.8 PMM-003-FYP-080-055 Approve Project Business Case at HQ

1. For projects of value < SAR 20M, the Projects Execution VP shall approve the
business case then send back the Business Case to the cluster.
2. For projects for studies, design, supervision and consultancy services that not related
to a capital project, the Technical Services GM shall approve the business case then
send back the Business Case to the cluster.
3. For projects related to Non-Revenue Water (NRW) reduction, networks replacements
and enhancement the Cluster Capital Projects VP shall receive the Business case that
approved by Smart Operations GM.
4. For other Projects:
a. The Capital Projects Strategic Planning GM shall redirect the business case
for review and endorsement to:
i. Projects Portfolio Planning Director.
ii. Strategic Studies Director.
b. The Projects Portfolio Planning Director and the Strategic Studies Director shall
review the business case using (PMF-003-FYP-004 Business Case Checklist)
and consult the:
i. Technical Services GM on Project Scope and Class 4 Cost.
ii. Scheduling & Control GM on Level 1 Project Schedule.
iii. PMO GM on Risk List.
c. The Projects Portfolio Planning Director and the Strategic Studies Director shall
endorse the business case and send it to the Capital Projects Strategic
Planning GM for approval.
d. The Capital Projects Strategic Planning GM shall approve the business case
then send back the business case to the cluster.
This procedure shall be completed within 7 days from cluster submission.
Projects Execution VP Strategic Studies Director
Responsible:
Technical Services GM Capital Projects Strategic Planning
Projects Portfolio Planning Director GM

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Accountable: Capital Projects Strategic Planning GM

Technical Services GM
Consulted: Strategic Studies Director
Scheduling & Control GM
Cluster Capital Projects VP
PMO GM
Project Requester
Projects Portfolio Planning Director
Informed: Projects Portfolio Planning Director

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Section 4 - Project Governance Management

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4 Project Governance Management

The subject of this particular section of the Project Management Manual (PMM) is Project Governance
Management.
The mission of the Projects Cluster team is to provide a management framework in which clusters are enabled
to deliver their projects and programs in line with NWC’s business objectives.
4.1 PMM-004-GOV-010 Enterprise Environmental Factors and Organizational
Process Assets
4.1.1 Objective
The objective of this process is to proactively ensure that:
● The external influences do not adversely affect the success of projects, as far as practicable.
● The PMM effectively and efficiently interfaces with other NWC department manuals and
policies.
● PMM is updated as per latest changes in the EEFs & NWC OPAs.
4.1.2 Policies
Policies for this process are:
1. Enterprise Environmental factors includes but not limited to:
i. Internal EEFs:
a. NWC’s culture.
b. NWC’s organizational structure.
c. Governance framework of NWC and of Capital Projects department.
d. Availability of human and physical resource in Capital Projects department at HQ
and clusters.
e. The available information technology software in Capital Projects department at
HQ and clusters and every related department.
f. The capability of employees of Capital Projects department at HQ and clusters
g. The availability and capacity of Infrastructures of Capital Projects department at
HQ and clusters.
h. The geographic distribution of:
- NWC facilities.
- Resources of Capital Projects department at HQ and clusters.
ii. External EEFs:
a. Marketplace conditions such as market share, brand recognition and trademarks.
b. Financial considerations such as currency exchange rates, inflation rates and
tariffs.
c. Commercial databases such as standardized cost estimating data, industry risk
study information, risk databases and benchmarking results. Commercial means
available in market for purchase.
d. Academic researches such as industry studies, publications and benchmarking
results.
e. Government or industry standards and best practices such as water standards,
operations standards, quality standards, environment regulations and
workmanship standards.
f. Legal restrictions such as
- Government Tender and Procurement System.
- Commercial Law.

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- Labor Law.
- Security Regulations.
g. Social and cultural influences and issues such as political climate, ethics and
perceptions.
h. Physical environmental elements such as:
- working conditions such as working hours and wages
- physical constraints such as check points and boarders.
- Infrastructure availability such as roads, train service, water service and power
service.
- weather rainy weather, sand stormy weather, hot weather in a desert and cold
weather.
- geographical locations such as continental, island, maritime and mountain.
- topographic nature (terrain) such as desert area, mountain area and cost area.
- soil such as sand, rock and silt.
2. Organizational process Assets includes but are not limited to:
i. Standardized Governing items which includes but are not limited to:
a. Policies
b. Procedures
c. Processes
d. Guidelines
e. Templates for reports, dashboards, etc.
f. Forms such as logs, registers, records, etc.
g. Checklists
h. Criteria
ii. Organizational Knowledge Base (Repositories):
a. Configuration management repository
b. Historical information repositories
c. Lessons learned repositories
3. The above mentioned OPAs are of all NWC departments.
4. A simi annual EEFs & OPAs review must be conducted to identify any:
i. changes that happened or expected to happen to the EEFs that may affect the PMM
and the capital projects (objectives, plans, performance, etc.).
ii. changes made by NWC departments to their OPAs.
iii. changes happened to the interfaces between capital projects department and the other
NWC departments (at HQ and clusters).
5. The review must be documented and discussed as part of a scheduled Management
Review Meeting.

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4.1.3 Workflow Chart

Figure4 4-1 PMM-004-GOV-010 Enterprise Environmental Factors and Organizational Process Assets
Workflow Chart

4.1.4 Procedures
4.1.4.1 PMM-004-GOV-010-010 Schedule EEFs and OPAs Reviews

1. Annually, schedule the following to be performed semi-annually:

• EEFs and OPAs reviews at cluster
• EEFs and OPAs reviews at HQ
Communicate the schedule to:
a. All Cluster PMO Directors.
b. Center of Excellence Director.
It is recommended to ordinate the schedule with the annual budgeting cycle to capture any
updates to the requirements of MOF and NWC.

Responsible: PMO GM

Accountable: Capital Projects Services VP

Cluster PMO Director
Consulted:
Cluster Capital Projects VP Scheduling & Control GM
Capital Projects Strategic Planning Technical Services GM
GM
Informed: Cluster PMO Director Center of Excellence Director

4.1.4.2 PMM-004-GOV-010-020 Conduct Semi-Annual EEFs & OPAs Reviews

1. Semi-annually, conduct an EEFs & OPAs review at clusters and HQ.

Create an EEFs & OPAs review report for each cluster and HQ describing the:
a. current and potential changes in EEFs & OPAs
b. expected impact of these changes
c. recommendations to face each change
Attach to the report the evidence documents.
Raise the reports to PMO GM.

Responsible: Cluster PMO Director Center of Excellence Director

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Accountable: PMO GM
Cluster Technical Services Director
Consulted: Cluster Strategic Planning Director
Cluster Scheduling & Control
Business Unit Construction Director
Director
Informed: PMO GM Cluster Capital Projects VP

4.1.4.3 PMM-004-GOV-010-040 Develop Simi-Annual NWC EEFs & OPAs Review Report

1. The PMO GM and Center of Excellence Director shall:

a. collect semi-annual EEFs & OPAs review reports that developed at clusters and HQ.
b. consolidate the cluster Semi-Annual EEFs & OPAs review reports into NWC Semi-
Annual EEFs & OPAs review report.
2. The PMO GM shall send the report to the:
a. Capital Projects Services VP
b. Projects Execution VP
to be cascaded to GMs and directors.

Responsible: PMO GM Center of Excellence Director

Accountable: Capital Projects Services VP

Cluster Capital Projects VP
Consulted: Scheduling & Control GM
Capital Projects Strategic Planning
Technical Services GM
GM
Informed: Capital Projects Services VP Projects Execution VP

4.2 PMM-004-GOV-020 Management Representative of PMM

4.2.1 Objective
The objective of this process is to ensure that there is a single responsible role for all issues related
to the management of the PMM and that role is endorsed by the Projects EVP.
4.2.2 Policies
Policies for this process are:
1. The role holder is the named PMO GM.
2. The Management Representative shall ensure that the processes needed for the PMM are
established (i.e., documented, reviewed and approved), and subsequently implemented
and maintained.
3. The Management Representative shall report to the Projects EVP on all matters regarding
the PMM, such as: its performance; any need for its improvement; and advice on resources
required to ensure its ongoing effectiveness and efficiency.
4. The Management Representative shall organize management review meetings and all
associated paperwork.
5. The Management Representative shall ensure promotion of suitable awareness of the PMM
throughout relevant project stakeholders in the NWC business, Consultants and
Contractors.
6. For other management representative responsibilities, see the role of the PMO GM as
described in other sections of the manual, including the Responsibility Assignment Matrix.

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4.2.3 Workflow Chart

Figure 4-2 PMM-004-GOV-020 Management Representative of PMM Workflow Chart

4.2.4 Procedures
4.2.4.1 PMM-004-GOV-020-010 Ensure the Management Representative is Authorized,
Named and Recorded

1. On annual basis, Projects EVP shall ensure that PMO GM is the PMM representative.
The role holder is the PMO GM, unless an alternative is authorized by the Projects EVP.
2. The Management Representative shall do but not limited to the following:
a. ensure that the processes needed for the PMM are established and subsequently
implemented and maintained.
b. report to the Projects EVP on all matters regarding the PMM and advice on resources
required to ensure its ongoing effectiveness and efficiency.
c. organize management review meetings and all associated paperwork.
d. ensure promotion of suitable awareness of the PMM throughout relevant project
stakeholders in the NWC business, Consultants and Contractors.

Responsible: Projects EVP

Accountable: Projects EVP

Consulted: PMO GM

Informed: PMO GM

4.3 PMM-004-GOV-030 Project Management Data Analysis

4.3.1 Objective
The objective of this process is to systematically collect and analyze various types of data from the
Project Management, to evaluate the suitability and effectiveness of the PMM and to evaluate the
potential areas where PMM improvements can be made.
4.3.2 Policies
Policies for this process are:
1. Useful data types include:
● Results of inspection and test activities.
● Results of audit activities.
● Reviewing of Non-Conformance Reports
○ For underlying performance trends.
○ For root causes indicating potential procurement problems.
○ For identification of opportunities to be disseminated across all clusters’
information regarding corrective and preventive actions for the mutual benefit
and improvement of all.
● Results of PMM User Feedback

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○ Through structured surveys.

○ Through verbal and written statements, both positive and negative in nature.
● KPI data from each manual section
2. An important outcome of the data analysis activities outlined above is to refer problems with
unacceptable performance, including missing data, directly back to the data owner and
process owner.
3. All such referral instances must be recorded by the Center of Excellence Director and
monitored for satisfactory closure, including the respondent’s given explanation.
4. All referrals and closure routines must be reviewed in periodic management review
meetings.
4.3.3 Workflow Chart
Figure 4-3 PMM-004-GOV-030 Project Management Data Analysis Workflow Chart

4.3.4 Procedures
4.3.4.1 PMM-004-GOV-030-010 Review the PMM Registers and KPI Reports

1. On semi-annual basis, review the Project Management registers and KPI reports.
Relevant Project Management registers include:
PMF-004-GOV-012 Local Work Instruction Register
PMF-011-HUM-002 Project Team Members Register
PMF-011-HUM-003 Induction and Training Register
PMF-004-GOV-024 PMM User Feedback Register
PMF-004-GOV-030 PMM Auditors Register
PMF-004-GOV-036 PMM NCRs Register
2. Review the monthly (PMF-004-GOV-015 KPI Report).
3. Consider interfaces with other NWC management systems (e.g., with Supply Chain
department management policies and procedures).
4. Make a written note of all perceived strengths and weaknesses, for potential inclusion in the
next PMM management review briefing paper.

Responsible: Continuous Improvement Lead

Accountable: Continuous Improvement Manager

Consulted: KPIs Lead Center of Excellence Lead

Informed: PMO GM Center of Excellence Director

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4.4 PMM-004-GOV-040 PMM Management Meeting

4.4.1 Objective
The objective of this process is to ensure that senior projects management at HQ and Clusters are
carrying out a formal, objective, periodic review on the PMM updating, distribution, application,
auditing, assessment and benefits.
4.4.2 Policies
Policies for this process are:
1. Management review meetings must be scheduled by the PMO GM to take place once every
quarter.
2. The PMO GM must maintain a standard agenda for management review meetings. See the
(PMF-006-GOV-016 PMM Management Review Meeting Agenda).
3. The PMO GM must provide appropriate briefing materials in advance of each scheduled
management review meeting. See the (PMF-004-GOV-017 PMM Management Review
Briefing Paper).
4.4.3 Workflow Chart
Figure 4-4 PMM-004-GOV-040 PMM Management Meeting Workflow Chart

4.4.4 Procedures
4.4.4.1 PMM-004-GOV-040-010 Compile a Briefing Paper and Agenda and Send an
Invitation for Management Review Meeting

1. Use the (PMF-004-GOV-017 PMM Management Review Briefing Paper) to develop PMM
Management Review Briefing Papers.
2. Use the (PMF-004-GOV-016 PMM Management Review Meeting Agenda) to develop the
PMM Management Review Meeting Agenda.
3. Schedule the meeting, attaching the briefing paper and agenda.
The attendees shall include HQ/Cluster Projects Cluster GMs.

Responsible: Center of Excellence Director

Accountable: PMO GM
Capital Projects Strategic Planning
Consulted: Scheduling & Control GM
GM
PMO GM
Technical Services GM
Informed: Required Attendees

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4.4.4.2 PMM-004-GOV-040-020 Attend the Management Review Meeting and Implement

the Agreed Action Plan

1. Follow the agenda and cover all points of the briefing paper.
2. Record all non-attendance.
3. Develop and distribute the meeting minutes using (PMF-012-COM-051 Standard Minutes
of Meeting Template), requesting a read receipt.
4. Start the actions and complete them by the due date.

Responsible: Center of Excellence Director Action Owners

Accountable: PMO GM
Capital Projects Strategic Planning
Consulted: Scheduling & Control GM
GM
PMO GM
Technical Services GM
Informed: Projects EVP

4.5 PMM-004-GOV-050 PMM User Feedback and Inquires

4.5.1 Objective
The objective of this process is to ensure that the PMM users are provided with a channel for:
● giving their feedback on
● any aspect of PMM.
● sending inquiries on any aspect of PMM and receiving their replies.
4.5.2 Policies
Policies for this process are:
1. Every feedback from a PMM user must be accepted, logged, escalated if needed, subjected
to remedial action and/or response, reviewed and then formally closed.
2. Feedback shall be provided individually or through PMM surveys.
3. Positive and negative feedback are welcomed. Both types represent opportunities to
improve the PMM.
4. Inquiries on any aspect of PMM, should be officially sent through the Cluster Capital Projects
VP.
5. The Center of Excellence Director must run a user survey at least twice a year. The survey
must solicit both positive and negative feedback from PMM users. The results of the survey
must be disseminated.
4.5.3 Workflow Chart
Figure 4-5 PMM-004-GOV-050 PMM User Feedback and Inquires Workflow Chart

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4.5.4 Procedures
4.5.4.1 PMM-004-GOV-050-010 Run Online Semi-Annual PMM Surveys

1. Run semi-annual PMM survey to measure PMM effectiveness using (PMF-004-GOV-039

Semiannual Survey for PMM Effectiveness Assess).
2. Run semi-annual PMM survey to collect feedback on PMM contents using (PMF-004-
GOV-040 Semiannual Survey for PMM Contents Update).
The feedback shall be received on (pmo@nwc.com.sa).
Continuous Improvement
Responsible:
Manager
Accountable: Center of Excellence Director

Consulted: PMO GM

Informed: PMO GM

4.5.4.2 PMM-004-GOV-050-020 Submit PMM users Feedback

1. For the two online PMM surveys:

a. Complete the online PMM survey using the received form.
b. Within the survey reply duration, send the reply to the email (pmo@nwc.com.sa).
2. For individual PMM user feedback:
a. Develop the feedback to identify PMM enhancement opportunities using (PMF-004-
GOV-023 PMM user feedback Record).
b. Send the feedback at any time to the email (pmo@nwc.com.sa).

Responsible: PMM User Feedback Originator

Accountable: Cluster Capital Projects VP

Consulted: Cluster Capital Projects VP Relevant Stakeholder

Informed: Center of Excellence Director

4.5.4.3 PMM-004-GOV-050-030 Register and Analyze the PMM Users Feedback

1. For the two online PMM surveys:

• Analyze the online PMM survey feedback.
• Update (PMF-004-GOV-040 Semiannual Survey for PMM Contents Update) with the
responses and send back to originator
2. For individual PMM user feedback:
• Analyze the PMM users’ feedback.
• Update (PMF-004-GOV-023 PMM user feedback Record) with the responses and
send back to originator.
3. Utilize all above feedback information in PMM update in process (PMM-004-GOV-080
PMM Update and Improvement).
4. Update the PMM user feedback register (PMF-004-GOV-024 PMM User feedback
register).

Responsible: Continuous Improvement Manager

Accountable: Center of Excellence Director

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Consulted: PMO GM Relevant Stakeholder

Informed: PMO GM PMM User Feedback Originator

4.5.4.4 PMM-004-GOV-050-040 Send and Receive Inquiries on PMM Aspects

1. When required, an NWC employee shall prepare and send an inquiry to the line Director
at the cluster using (PMF-004-GOV-041 PMM User Inquiry Record).
2. The line Director at the cluster shall review, comment and sign the inquiry then send it to
the Center of Excellence Director using (PMF-004-GOV-041 PMM User Inquiry Record).
3. The Center of Excellence Director in collaboration with the Continuous Improvement
Manager shall:
a. understand the request.
b. mention in the form the required information attaching any supporting document.
c. sign and send the form to the sending director at the cluster.
PMM User Inquiry Originator
Responsible: Continuous Improvement Manager
Line Cluster Director of the Inquiry
Center of Excellence Director
Originator
Accountable: PMO GM

Consulted: Relevant Stakeholder

Line Cluster Director of the Inquiry
Informed: PMO GM
Originator
Cluster Capital Projects VP
PMM User Inquiry Originator

4.6 PMM-004-GOV-060 Control PMM Documents

4.6.1 Objective
The objective of this process is to ensure that all project management manual documents and records
are identified, developed, disseminated, stored, archived, retained, retrieved and disposed in a
consistent manner. Examples of PMM documents and records are such as:
● Master Copy of PMM and its attachments.
● PMM application audit reports.
● PMM application NCRs.
● PMM user’s feedback documents (individually or in survey).
● Minutes of management meetings at HQ or clusters.
● Written delegations of authority.
4.6.2 Policies
Policies for this process are:
All PMM records must be uniquely identified as per (PMF-004-GOV-006 PMM Document
Numbering System).
1. Every project document number must be unique. If the document mandatorily shall have a
number by NWC systems such as BARQ, TATABOA or Capital Projects PMS, the
Document Controller is responsible for ensuring the uniqueness of this number.
2. Hard-copy records must be handled with due care and attention (i.e., ensure legibility and
no missing pages nor unidentified pages) and filed securely.
3. All electronic records must be securely stored by the Document Control Manager in Capital
Projects PMS.
4. All PMM records must be archived, retained, retrieved and disposed of according to clear,
written instructions.

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5. The default for hard-copy, project-level PMM records (such as printed design drawings) is
to retain in archival storage (boxed in dry, secure, fireproof storage) for a period of seven
years from handover, after which the boxes and contents may be permanently destroyed.
6. The default for soft-copy, project-level PMM records (such as original documents and
correspondence scan files) is to retain within Capital Projects PMS until handover, upon
which selective files may be retained “online” as a project management knowledge base,
and the remaining files may be retained “offline” as an archive disk in a fireproof and
waterproof safe; or may be moved with the help of NWC’s IT Dept. to an alternative file
server.
4.6.3 Workflow Chart
Figure 4-6 PMM-004-GOV-060 Control PMM Documents Workflow Chart

4.6.4 Procedures
4.6.4.1 PMM-004-GOV-060-010 Review Retention Requirements and Capacity on an
Annual Basis

1. As new versions of PMM and its attachments are developed, annually review the need for:
• larger secure storing area for hard copies in collaboration with Business Excellence
GM
• larger secured server for soft copies in collaboration with Document Control Manager.
2. Use the (PMF-004-GOV-009 Archival Instruction) and (PMF-004-GOV-010 Archival
Instruction Register) to review all archival and retention instructions.

Responsible: Center of Excellence Lead

Accountable: Center of Excellence Director

Consulted: Business Excellence GM Document Control Manager

Informed: Business Excellence GM Document Control Manager

4.6.4.2 PMM-004-GOV-060-020 Ensure Documents Are Uniquely Identified, Stored and

Secured

1. Uniquely number PMM documents, process and procedures using (PMF-004-GOV-006

PMM Document Numbering System).
2. File all PMM documents (either master copy or in use copies) using (PMF-004-GOV-008
PMM Document Filing Index).
3. Send to Business Excellence:
• The PMM documents for uploading to formal NWC website.

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• List of access authorities for users.

Responsible: Relevant Stakeholder

Accountable: Relevant Stakeholder

Consulted: Relevant Stakeholder

Informed: Relevant Stakeholder

4.6.4.3 PMM-006-GOV-060-030 Archive and Retain Documents

1. Use the (PMF-004-GOV-009 Archival Instruction) to make all archival and retention
decisions.
2. Keep the (PMF-004-GOV-010 Archival Instruction Register) up to date with all completed
actions.

Responsible: Relevant Stakeholder

Accountable: Relevant Stakeholder

Consulted: Relevant Stakeholder

Informed: Relevant Stakeholder

4.6.4.4 PMM-004-GOV-060-040 Retrieve, Review and Return the Archive as Needed

During the Retention Period

1. Access to project archives must be restricted to the following staff:

a. NWC Project Manager.
b. Business Unit Construction Director.
c. Cluster Capital Projects VP.
d. Projects VPs and GMs
e. Projects EVP
2. Access requests by others must be coordinated through the above staff.
The above staff are responsible and accountable for care of the archive materials whilst the
materials have been removed from the store and placed in their temporary possession, until
the archive materials are formally returned to the store.
3. The Cluster Document Control Section Head shall keep the (PMF-004-GOV-010 Archival
Instruction Register) up to date with all removals and returns during the retention period
and must check that the full-set of archive materials remains intact each time it is removed
and returned.

Responsible: Relevant Stakeholder

Accountable: Relevant Stakeholder

Consulted: Relevant Stakeholder

Informed: Relevant Stakeholder

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4.6.4.5 PMM-004-GOV-060-050 Define the Need for Further Retention or Final Disposal and
Implement Action

1. A review shall be carried out at the end of each defined retention period. In review
decide if there is a need for further retention or not.
2. Carry out the steps described on the (PMF-004-GOV-009 Archival Instruction).
3. Keep the (PMF-004-GOV-010 Archival Instruction Register) up to date with all
completed steps.
Final disposal decisions must be approved by the PMO GM.
4. Retain or dispose of the archive according to the written instruction.

Responsible: Relevant Stakeholder

Accountable: Relevant Stakeholder

Consulted: Relevant Stakeholder

Informed: Relevant Stakeholder

4.7 PMM-004-GOV-070 Control Roles, Responsibilities and Authorities

4.7.1 Objective
The objective of this process is to ensure that all Project Team positions have up to date written Job
Profiles at all times, and that all project management activities described by the PMM are included
in a Responsibility Assignment Matrix (RAM).
4.7.2 Policies
Policies for this process are:
1. Approved Organizational Structure and Job Profiles for HQ and Cluster are to be
implemented all over the HQ and clusters.
2. Changes on approved Organizational Structure for HQ and Cluster without formal approvals
are completely not allowed. These approvals are to be obtained through PMO GM from
authorized person in HQ as per NWC policies.
3. Where a cluster has valid reason to change the default RAM (PMF-011-HUM-004
Responsibility Assignment Matrix RAM), a Local Work Instruction (LWI) must be developed
to describe the change. This LWI must be approved by the PMO GM before implementation.
Examples for LWI are:
i. changing a responsibility to existing role due to staff lack.
ii. adding a role to a responsibility due to lack of experience of existing responsible role.
4. The Cluster PMO Director must create and maintain a central register of Local Work
Instructions, ensuring that no Local Work Instruction is allowed to transgress its expiry date
without formal renew.
5. A role can delegate part of his authorities as long as it does not conflict the NWC Delegation
of Authority. Every Delegation of Authority (DOA) must be written and approved by the PMO
GM before implementation. Verbal or mailed DOAs are not acceptable.
6. Accountabilities in RAM are NOT allowed to be changed, transferred or delegated.
7. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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4.7.3 Workflow Chart

Figure 4-7 PMM-004-GOV-070 Control Roles, Responsibilities and Authorities Workflow Chart

4.7.4 Procedures
4.7.4.1 PMM-004-GOV-070-010 Develop Organizational Structures for Projects Teams of
HQ and Clusters

1. Develop organizational structures for projects teams of HQ and Clusters in

collaboration with:
a. Project & Technical Services department staff
b. NWC Human Capital department
c. Any NWC department as required
2. Obtain required approvals from authorized person as per NWC policies.
3. Cascade the approved Organizational Structures for HQ and Clusters to all NWC
Project Team.
If a change request on approved Organizational Structure raised, it must be reviewed
and approved through PMO GM from the authorized person at HQ as per NWC policies.

Responsible: PMO GM

Accountable: Projects EVP

Consulted: NWC Capital Projects Team Human Capital GM

Informed: NWC Capital Projects Team

4.7.4.2 PMM-004-GOV-070-020 Develop Job Profiles for NWC Capital Projects Team

1. Develop Job Profiles for projects team members at HQ and Clusters in collaboration
with:
a. Project & Technical Services department staff
b. NWC Human Capital department
c. Any NWC department as required
2. Obtain required approvals from authorized person as per NWC policies.
3. Cascade the approved Organizational Structures for HQ and Clusters to all NWC
Project Team.

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If a change request on approved Job Profile(s) raised, it must be reviewed and

approved through PMO GM from the authorized person at HQ as per NWC policies.

Responsible: PMO GM

Accountable: Projects EVP

Consulted: NWC Capital Projects Team Human Capital GM

Informed: NWC Capital Projects Team

4.7.4.3 PMM-004-GOV-070-030 Develop a Responsibilities Assignment Matrix for NWC

Capital Projects Team

1. Based on current approved PMM, develop a Responsibilities Assignment Matrix

(RAM) for NWC Capital Projects Team in collaboration with:
a. NWC Capital Projects Team
b. NWC Human Capital department
2. Obtain required approvals from the authorized person within the Projects Cluster.
3. Cascade the approved RAM, as part of PMM documents, to all NWC Project Team.
If a change request on approved RAM raised, it must be reviewed and approved
through PMO GM from authorized person at HQ as per NWC policies.

Responsible: Center of Excellence Director

Accountable: PMO GM

Consulted: NWC Capital Projects Team

Informed: NWC Capital Projects Team

4.7.4.4 PMM-004-GOV-070-040 Prepare a Local Work Instruction for RAM Change and/or
a Delegation of Authority

1. For Local Work Instruction

a. Use the form (PMF-004-GOV-011 Local Work Instruction) to prepare the
request.
b. Attach to the request the current approved:
i. Organizational Structure.
ii. Job profile.
iii. RAM
2. For Formal Delegation of Authority:
a. Use the (PMF-004-GOV-013 Delegation of Authority Record) to prepare and
formally record a delegation of authority from an employee to an inferior of his.
b. Attach the delegation of authority by any required supporting document.
3. Submit to PMO GM for review and approval before implementation the Local Work
Instructions and/or Delegations of Authority
4. Send a copy the Cluster PMO Director to update the (PMF-004-GOV-012 Register of
Local Work Instruction and Delegation of Authority).

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

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Consulted: Cluster Projects Team PMO GM

Informed: PMO GM Cluster PMO Director

4.7.4.5 PMM-004-GOV-070-050 Approve a Local Work Instruction for RAM Change and/or
a Delegation of Authority

1. Review and approve/reject the submitted Local Work Instruction for RAM Change
and/or the Delegation of Authority.
2. Send the approved/rejected Local Work Instruction for RAM Change and/or the
Delegation of Authority to the Cluster Capital Projects VP for cascading.
3. Send a copy the Cluster PMO Director to update the (PMF-004-GOV-012 Register of
Local Work Instruction and Delegation of Authority).

Responsible: PMO GM

Accountable: PMO GM

Consulted: Cluster Capital Projects VP

Informed: Cluster Capital Projects VP Cluster PMO Director

4.8 PMM-004-GOV-080 PMM Update and Improvement

4.8.1 Objective
The objective of this process is to ensure that:
● the single Project Management Manual PMM that implemented on all NWC capital projects
contains the most appropriate processes, procedures, policies, KPIs, forms and guidelines to
the project requirements.
● The changes on the PMM are properly prepared, authorized and incorporated.
4.8.2 Policies
Policies for this process are:
1. The Project Management Manual PMM must be updated for better projects execution.
2. During PMM updating process, all changes are to be made only through Center of
Excellence through this procedure after obtaining formal approvals.
3. Sources of external requirements must be tracked and the tracking activity must be recorded
in a register.
4. The PMM and any developed PMM documents must be approved before being
implemented.
5. PMM documents of the same type must be developed on the same layout (i.e., all manual
sections must be identically laid-out and styled and all forms and guidelines must be
identically styled).
6. All PMM documents must be version controlled.
7. Version history information must be included in a table with the PMM document package.
8. All master electronic files must be securely stored by the Center of Excellence Director, to
prevent:
i. loss of files.
ii. unauthorized changes by users.
9. A working copy of the current version of all PMM documents must be made available to
NWC employees.

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10. Every project document number must be unique. If the document mandatorily shall have a
number by NWC systems such as BARQ, TATABOA or Capital Projects PMS, the
Document Controller is responsible for ensuring the uniqueness of this number.
11. The following documents and records are used to drive the continual provision of inputs for
the PMM update process (illustrated in Figure 4-2, below):
● NWC Organizational Struture.
● NWC policies.
● NWC strategic and tactical objectives.
● Internal and external audit reports.
● Analysis of data, principally the KPI reports.
● PMM Users Feedback (e.g. PMM users feedback records and semiannual Surveys).
● EEF & OPA Review Report.
● Management review.
Figure 4-8 The Recurring Cycle of Continual Improvement

12. All employees should be encouraged and empowered to suggest improvements to the
PMM.
13. A log of PMM changes should be maintained by the Continuous Improvement Manager.

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4.8.3 Workflow Chart

Figure 4-9 PMM-004-GOV-080 PMM Update and Improvement Workflow Chart

4.8.4 Procedures
4.8.4.1 PMM-004-GOV-080-010 Collect the PMM Improvements

1. Collect all PMM improvement opportunities from:

a. PMM user feedback records (PMM-004-GOV-050 PMM User Feedback).
b. Semiannual survey for PMM contents update (PMM-004-GOV-050 PMM User
Feedback).
c. Semiannual survey for PMM effectiveness assess (PMM-004-GOV-050 PMM
User Feedback).
d. KPIs analysis results such as (PMM-004-GOV-030 Project Management Data
Analysis).
e. PMM internal and external audit reports such as (PMM-004-GOV-100 PMM
Application Audit).
f. Management meetings at HQ and clusters (PMM-004-GOV-040 PMM
Management Meeting).
g. EEF & OPA Review Report (PMM-004-GOV-010 Enterprise Environmental
Factors and Organizational Process Assets).
h. Any other source.
2. For every improvement opportunity:
a. Communicate with the relevant stakeholders and the feedback originator to
collect more details about the improvement opportunity.
b. Analyze the collected data.
3. Update the PMM User Feedback Register (PMF-004-GOV-024 PMM User Feedback
Register).

Responsible: Continuous Improvement Manager

Accountable: Center of Excellence Director

Consulted: Relevant Stakeholder

Informed: Center of Excellence Director

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4.8.4.2 PMM-004-GOV-080-020 Develop an Improvement Opportunity Proposal

1. For every improvement opportunity:

a. the Continuous Improvement Manager shall:
i. develop an improvement proposal (process, procedure, form, etc.)
considering all impacts on any PMM element (i.e. process, procedure,
form, etc.).
ii. raise the proposal to the PMO GM to approve inclusion in PMM.
b. The PMO GM shall approve/reject the PMM Improvement proposal.
2. Update the PMM User Feedback Register (PMF-004-GOV-024 PMM User Feedback
Register).

Responsible: Continuous Improvement Manager PMO GM

Accountable: PMO GM

Consulted: Relevant Stakeholder

Informed: Center of Excellence Director

4.8.4.3 PMM-004-GOV-080-030 Prepare the Updated PMM

1. For every approved improvement opportunity, incorporate the improvement

opportunity in the PMM.
2. After incorporating all approved improvement opportunities, finalize the PMM as
follows:
a. Prepare updated PMM and its attachments ensuring the integrity between all
PMM elements (i.e. process, procedure, form, etc.).
b. Adjust numbering of all PMM elements using (PMF-006-GOV-006 PMM
Document Numbering System) form.
c. Update the version history of each section.
3. Distribute the updated PMM with its attachments to all users for feedback before final
approval using (PMF-006-GOV-024 PMM User Feedback Register).
4. Collect and analyze the users feedback as per (PMM-006-GOV-080-010 Collect the
PMM Improvements).
5. Approve the users feedback as per (PMM-006-GOV-080-020 Develop an
Improvement Opportunity Proposal).
6. Finalize the PMM as per mentioned above.
7. Collect the signatures of the developing team, reviewing team, PMM owner and
endorser.
8. Send the updated PMM and its attachments to the Projects EVP for approval.

Responsible: Continuous Improvement Manager

Accountable: Center of Excellence Director

Continuous Improvement Lead
Consulted: Business Excellence GM
Center of Excellence Director
Projects EVP
PMO GM
Informed: PMO GM Projects EVP

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4.8.4.4 PMM-004-GOV-080-040 Approve the Updated PMM

1. Approve the updated PMM.

2. Send to the approved updated PMM to the Business Excellence Department for
publishing.

Responsible: Projects EVP

Accountable: Projects EVP

Capital Projects Strategic Planning
Consulted: PMO GM
GM
Scheduling & Control GM
Technical Services GM
Informed: Business Excellence GM

4.8.4.5 PMM-004-GOV-080-050 Ensure the Publishing of the PMM Document(s)

1. Ensure that the Business Excellence department has published the updated version
of the PMM and all its attachments.
2. Notify all PMM users to implement.

Responsible: Center of Excellence Director

Accountable: PMO GM

Consulted: Continuous Improvement Manager

Informed: NWC Capital Projects Team

4.9 PMM-004-GOV-090 Monitoring the Implementation of PMM

4.9.1 Objective
The objective of this process is to maintain a defined set of KPIs and be able to monitor/measure
and report against the KPIs at the defined frequency of each KPI.
4.9.2 Policies
Policies for this process are:
1. PMM application on NWC Capital Projects by all PMM practitioners is mandatory.
2. It is not allowed for all PMM practitioners in capital projects to make any changes on:
i. Project Management Manual contents such as processes, procedures, policies,
workflow charts or KPIs.
ii. Project Management Manual attachments such as forms, templates or guidelines.
3. Each section of the manual has its own set of defined KPIs.
4. Feedback on project management system performance must be provided to Project Teams
via the periodic gathering and reporting of performance measurements and other Project
Management monitoring data, principally through a monthly KPI report. See the (PMF-006-
GOV-015 KPI Report).
5. The KPIs Lead in HQ must consolidate and report the KPI data obtained from the Clusters
and must ascertain the underlying reasons for any missing or unsatisfactory data.
6. The KPI report and its underlying trends must be discussed at all scheduled management
review meetings.

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4.9.3 Workflow Chart

Figure 4-10 PMM-004-GOV-090 Monitoring the Implementation of PMM Workflow Chart

4.9.4 Procedures
4.9.4.1 PMM-004-GOV-090-010 Apply Appropriate Resources to Collect PMM Application
Data

1. Ensure availability of resources (expertise, time, equipment) to collect the required data at
the required frequency, according to (PMF-04-GOV-015 KPI Report).
Cluster Project Performance
Responsible:
Monitoring Manager
Accountable: Cluster PMO Director

Consulted: NWC Project Managers

Cluster Capital Projects VP
Informed: KPIs Lead
Quality Assurance Director
4.9.4.2 PMM-004-GOV-090-020 Develop the KPI Report at Cluster Level

1. As per timing of every KPI, formally collect the required data from proper sources at
clusters and HQ to apply PMM KPIs.
2. Use the (PMF-004-GOV-015 KPI Report) to develop the KPI Report on monthly basis.
3. Justify for every missing data and/or unsatisfactory data from the Cluster.
Cluster Project Performance
Responsible:
Monitoring Manager
Accountable: Cluster PMO Director

Consulted: NWC Project Managers

Cluster Capital Projects VP
Informed: KPIs Lead
Quality Assurance Director
4.9.4.3 PMM-004-GOV-090-030 Consolidate All Cluster Reports into a Single Report

1. Receive KPI Reports from all cluster and consolidate them into one report.
2. Review the provided reasons of missing and/or unsatisfactory data.
3. Review the description of corrective actions already in-hand.
4. Analyze the reports to identify common trends across clusters and benchmarking
between clusters.
This procedure to be performed on monthly basis.

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Responsible: KPIs Lead

Accountable: Monitoring Manager

Consulted: PMO GM
Scheduling & Control GM
Informed:
PMO GM Technical Services GM
Capital Projects Strategic Planning Cluster Capital Projects VP
GM
4.9.4.4 PMM-004-GOV-090-040 Escalate Issues and Publish Final KPI Report

1. Review projects and cluster issues with the relevant Cluster Capital Projects VP and
agree with them any action plans and escalation requirements.
2. Escalate serious issues, trends and benchmarking problems to the Capital Projects
Services VP.
3. Record all referrals and escalations as part of the consolidated KPI Report.
4. Agree with the PMO GM which report elements should be published, including or
excluding referrals and escalations (which may be sensitive for a variety of reasons).
5. Publish the agreed, final KPI Report to HQ and Clusters.
This procedure to be performed on monthly basis.

Responsible: Monitoring Manager

Accountable: PMO GM

Consulted: Cluster Capital Projects VP

Informed: Capital Projects Services VP

4.10 PMM-004-GOV-100 PMM Application Audit

4.10.1 Objective
The objective of this process is to proactively put in place a Kingdom-wide, systematic regime where
audits are formally scheduled, properly prepared for, routinely executed and reported upon
satisfactorily to a uniform, best-practice standard.
4.10.2 Policies
Policies for this process are:
1. The following constitutes the main audit criterion for all audits for projects:
i. NWC Project Management Plan (by NWC project team)
ii. Design Project Management Plan (by the design consultant)
iii. Construction Project Management Plan (by the contractor)
iv. Design & Construction Project Management Plan (by the contractor)
v. Completion and approval of project schedule
vi. Commitment to the approved project schedule
2. All:
i. Cluster projects departments
ii. Business units departments
iii. Capital Projects (including all their stages)
are applicable for audits which must be scheduled in the Audit Schedule by the Quality
Assurance Director.

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3. Audits must be structured, using the standard checklist and report formats includes but not
limited to:
i. PMM Audit Report
ii. Non-Conformance Report NCR (General)
iii. PMM NCRs Register
4. Audits must be led by authorized Lead Auditors and carried out by authorized auditors.
5. The Quality Assurance department at NWC HQ is responsible for developing the PMM audit
checklist.
6. The Quality Assurance Director must create and maintain a central register of Lead Auditors
and auditors, providing assurance of competence to act in the role. See (PMF-006-GOV-
030 PMM Auditors Register).
7. Lead Auditors and auditors must actively participate in at least one audit per quarter to
remain on the register.
8. The Quality Assurance Director is responsible for overseeing the evaluation of performance
by Lead Auditors and auditors.
9. Follow-up audits should be scheduled to verify that the corrective and preventive actions
have been documented, approved, implemented and monitored.
4.10.3 Workflow Chart
Figure 4 -11 PMM-004-GOV-100 PMM Audit Workflow Chart

4.10.4 Procedures
4.10.4.1 PMM-004-GOV-100-010 Develop Cluster Audit Schedule

1. Schedule audits on Implementation of PMM and its attachments.

2. Use the (PMF-004-GOV-027 PMM Audit Schedule).

Responsible: Cluster QA Section Head

Accountable: Cluster Scheduling & Control Director

NWC Project Managers Cluster PMO Director
Consulted:
Cluster Scheduling & Control Director Cluster Strategic Planning Director
Cluster Technical Services Director Audit team
Quality Assurance Director Cluster Technical Services Director
Informed:
NWC Project Manager Cluster PMO Director
Cluster Capital Projects VP Cluster Strategic Planning Director
Cluster Scheduling & Control Director Audit team

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4.10.4.2 PMM-004-GOV-100-020 Prepare and Carry Out the Audit

1. Prepare for and perform the audit using (PMF-004-GOV-028 PMM Audit Checklist).
Official notification about the audit date and audit criteria shall be provided to the NWC
Project Manager two weeks in advance of the audit.
The date may be changed by NWC Project Manager at this point, within reason, but the
audit may not be cancelled.
The audit criteria must include the NWC Project Management Plan and second party’s
Project Management Plans.
2. Use the following:
PMF-004-GOV-029 PMM Audit Report.
PMF-010-QUA-123 Non-Conformance Report NCR (General).
The audit report is a draft at this stage.

Responsible: Audit Team

Accountable: Cluster QA Section Head

NWC Project Manager
Consulted: Supervision Consultant
NWC Project Team
Contractor
Design Consultant
NWC Project Manager
Informed: Supervision Consultant
NWC Project Team
Contractor
Design Consultant
4.10.4.3 PMM-004-GOV-100-030 Agree the Audit Findings and Recommendations and Issue
Final Report

1. Agree the audit findings with the auditees.

2. Finalize the (PMF-004-GOV-029 PMM Audit Report) attaching the documents that
stated in the report or any other required documents.
3. Update the (PMF-004-GOV-036 PMM NCRs Register) if a PMM NCR is issued.
4. Raise the Audit Report and all related documents to the Quality Assurance Director
and provide the auditee with a copy.
5. In the case of proposed corrective and preventive actions, it is important to consider
possible effects on other projects within the program.
6. Agree Schedule for Follow up.

Responsible: Audit Team

Accountable: Cluster QA Section Head

NWC Project Manager
Consulted: Supervision Consultant
NWC Project Team
Contractor
Design Consultant
Quality Assurance Director
Informed: Cluster Technical Services Director
NWC Project Manager
Cluster PMO Director
Cluster Capital Projects VP
Cluster Strategic Planning Director
Cluster Scheduling & Control Director

4.11 PMM-004-GOV-110 Investigate Violations of Project Management Manual

4.11.1 Objective
The objective of this process is to reduce the appearance of PMM violations that committed by PMM
practitioners and control its consequences.

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4.11.2 Policies
Policies for this process are:
1. PMM application on NWC Capital Projects by all PMM practitioners is mandatory.
2. This process to be performed when a violation committed to any part or aspect in the Project
Management Manual PMM.
3. The committee should include a member from Projects Cluster.
4. Every concerned department must instantly provide the investigation committee with any
information that required for the investigation.
4.11.3 Workflow Chart
Figure 4 -12 PMM-004-GOV-110 Investigate Violations of Project Management Manual Workflow Chart

4.11.4 Procedures
4.11.4.1 PMM-004-GOV-110-010 Report a Violation of PMM to General Manager

1. Continuously, any PMM practitioner shall escalate any action that violates processes,
procedures, policies, forms, templates and durations in Project Management Manual
PMM to his line General Manager (GM):
a. Cluster Capital Projects VP (if the violation is at cluster)
b. HQ Department GM (if the violation is at HQ)

Responsible: PMM Practitioner

Cluster Capital Projects VP (if the violation is at cluster) / HQ Department GM
Accountable:
(if the violation is at HQ)
Cluster Capital Projects VP (if the
Consulted: Cluster PMO Director (if the violation is
violation is at cluster)
at cluster)
HQ Department GM (if the violation is
PMO GM (if the violation is at HQ)
at HQ)
Cluster Capital Projects VP (if the
Informed:
violation is at cluster) / HQ Department
GM (if the violation is at HQ)
4.11.4.2 PMM-004-GOV-110-020 Request Forming Investigation Committee

1. The General Manager shall:

a. Collect information related to the violation to better understand the case and
justifications.
b. Assess the violation and prepare a violation report that:
i. describes violation description.
ii. describes violation parties.
iii. attached with any supporting documents.
c. Based on the violation nature, assign a Projects Department Representative
for the investigation committee from the:
i. PMO GM (if the violation is at HQ)

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ii. Cluster PMO Director (if the violation is at cluster)

iii. Nominee from the concerned department.
d. Submit the violation report and the nominations to the HQ Legal Affairs GM
requesting to form an investigation committee as per Legal department
policies.
This procedure shall be completed within 5 days.
Cluster Capital Projects VP (if the
Responsible:
violation is at cluster) / HQ Department
GM (if the violation is at HQ)
Cluster Capital Projects VP (if the violation is at cluster) / HQ Department GM
Accountable:
(if the violation is at HQ)
Cluster PMO Director (if the violation is
Consulted: HQ/Cluster Legal Affairs GM (as per
at cluster)
authority)
PMO GM (if the violation is at HQ)
Legal Affairs GM
Informed: PMO GM
Cluster PMO Director
4.11.4.3 PMM-004-GOV-110-030 Report a Violation of PMM to General Manager

1. After the Legal Affairs department forms the investigation committee, the Projects
Department Representative shall participate in Investigation Committee works which
includes:
a. Studying the case.
b. Finding the violation root cause.
c. Recommending authorizing the performed management activity (if required).
d. Propose solutions to rectify the violation consequences (corrective actions) (if
any).
e. Further recommendations such as preventive actions (if required).
f. Any other committee works.

Responsible: Projects Department Representative

Cluster Capital Projects VP (if the violation is at cluster) / HQ Department GM
Accountable:
(if the violation is at HQ)
Cluster Capital Projects VP (if the
Consulted: Cluster PMO Director (if the violation is
violation is at cluster)
at cluster)
HQ Department GM (if the violation is
PMO GM (if the violation is at HQ)
at HQ)
Cluster PMO Director (if the violation is Cluster Capital Projects VP (if the
Informed:
at cluster) / PMO GM (if the violation is violation is at cluster) / HQ Department
at HQ) GM (if the violation is at HQ)

4.12 PMM-004-GOV-130 Work Environment

4.12.1 Objective
The objective of this process is to ensure that all Project Team members are comfortably able to
work to according to the policies and procedures of the PMM regardless of their work location.
4.12.2 Policies
Policies for this process are:
1. “Soft” aspects of the work environment, such as social welfare, cultural respect, career
development, recognition of outstanding work and commitment, etc. are also essential to
the effective and efficient conduct of the business.
2. The characteristics of a good work environment must be managed proactively by
responsible managers, to be enjoyed as a right by all staff.

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3. Observed defects within the work environment must be recorded using the Non-
Conformance reporting system during carrying out audits.
4.12.3 Workflow Chart
Figure 4 -13 PMM-004-GOV-130 Work Environment Workflow Chart

4.12.4 Procedures
4.12.4.1 PMM-004-GOV-130-010 Keep Local Work Environment Under Review

1. Work environment problems shall be monitored and communicated to the Corporate

Governance & Risk Manager, who may consider escalating them if necessary.
2. During any audit or inspection, record and report all witnessed problems with the work
environment.
Cluster Risk Section Head
Responsible: Audit Team
Business Unit Safety Section Head
Accountable: Cluster Capital Projects VP

Consulted: Cluster Projects Team

Corporate Governance & Risk
Informed:
Manager

4.13 PMM-004-GOV-140 Project Initiator and Sponsor

4.13.1 Objective
The objective of this process is to proactively ensure that every project has a named Initiator and a
named Sponsor, both from within the NWC organization.
4.13.2 Policies
Policies for this process are:
1. Any project without a clearly named Project Initiator or a clearly named Sponsor must not
be allowed to go ahead.
2. NWC Project Managers must NOT act as Project Initiator or Sponsor. They also must NOT
be appointed to any project which does not have a clearly named Project Initiator and a
clearly named Sponsor.
3. Unless otherwise stated, the Project Initiator is always the named the “Cluster Capital
Projects VP”.
4. The Sponsor is always the named Projects EVP, who is accountable for securing and
controlling the financial resources to undertake the project.
5. The Project Initiator and Sponsor must always engage the specialists in Cost Estimation,
scheduling and Risk Management in Clusters to support the Business Case with a realistic
budget estimate, an estimate of the project duration, a consideration of sequencing and
packaging within the program/portfolio, and the early creation of risk registers through the
holding of a formal workshop.

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4.13.3 Workflow Chart

Figure 4 -14 PMM-004-GOV-140 Project Initiator and Sponsor Workflow Chart

4.13.4 Procedures
4.13.4.1 PMM-006-GOV-140-010 Ensure the Project Initiator is Named and Recorded

1. Before allowing the project to start its Initial Planning, check that the Project Initiator is
identified in the (PMF-004-FYP-001 Business Case).
2. Do not allow the project to start if the Project Initiator is not clear or maybe incorrect.

Responsible: Cluster Capital Projects VP

Accountable: Projects Execution VP

Consulted: Cluster Strategic Planning Manager Cluster Document Control Section Head

Informed: NWC Project Manager

4.13.4.2 PMM-006-GOV-140-020 Ensure the Sponsor is Named and Recorded

1. Before allowing the project to start its Initial Planning, check that the Project Sponsor
is identified in the (PMF-004-FYP-001 Business Case).
2. Do not allow the project to start if the Sponsor is not clear or maybe incorrect.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Consulted: Cluster Strategic Planning Manager Cluster Document Control Section Head

Informed: NWC Project Manager

4.14 PMM-004-GOV-160 End User Participation

4.14.1 Objective
The objective of this process is to proactively ensure that NWC’s experts in Cluster Asset
Management and O&M departments are given appropriate opportunity to participate in the project
during its planning, design, construction and, of course, handover stages.

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4.14.2 Policies
Policies for this process are:
1. NWC’s experts in Cluster Asset Management and O&M departments must be consulted by
the Cost Estimation in Clusters to allow for whole-life costing consideration during
estimation and budgeting exercises.
2. NWC’s experts in Cluster Asset Management and O&M departments must participate in
scheduled, formal workshops for project risk management.
3. NWC’s experts in Cluster Asset Management and O&M departments must participate in
scheduled, formal design reviews, optioneering and value engineering exercises, and
constructability reviews.
4. The design of the asset(s) to be delivered by the project must include consideration of how
the asset will be disposed of at the end of its useful life (this is usually a written strategy for
maintenance, technology refresh, refurbishment and demolition/replacement).
5. NWC’s experts in Cluster Asset Management and O&M departments must participate in
formal review and approval of submitted O&M documentation.
6. NWC’s experts in Cluster Asset Management and O&M departments must participate in
initial and final acceptance handover committees.
4.14.3 Workflow Chart
Figure 4 -15 PMM-006-GOV-160 End User Participation Workflow Chart

4.14.4 Procedures
4.14.4.1 PMM-004-GOV-160-010 Ensure That Operational Cost are Considered in the
Project Cost Estimation

1. Ensure that the operational cost is included and covered Design reviews and studies.
2. Ensure that the operational cost is provided by the Cluster Asset Management and
O&M departments.
3. Ensure that O&M experts fully participate in the reviews of designs and studies.

Responsible: Cluster Cost Estimation Specialist NWC Project Manager

Accountable: Cluster Technical Services Director

Consulted: Cluster Asset Management Director Cluster O&M Director

Informed: Cluster Technical Services Director

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4.14.4.2 PMM-004-GOV-160-020 Ensure That O&M Requirements are Considered in the

Project Designs and Studies

1. Ensure that the O&M requirements are included and covered Design reviews and
studies.
2. Ensure that the O&M requirements are provided by the Cluster Asset Management
and O&M departments.
3. Ensure that O&M experts fully participate in the reviews of designs and studies.

Responsible: Cluster Technical Support Manager NWC Project Manager

Accountable: Cluster Technical Services Director

Consulted: Cluster Asset Management Director Cluster O&M Director

Informed: Cluster Technical Services Director

4.14.4.3 PMM-004-GOV-160-030 Ensure That O&M Expertise Participate in the Project

Workshops

1. Ensure that O&M topics are included in the project workshops.

2. Ensure that O&M expertise fully participate in the project workshops.
The project workshops include but not limited to:
a. Business Case development workshops
b. Design workshops such as:
i. Requirements identification workshop
ii. Optioneering workshop.
c. Risk Workshops.
d. Value Engineering Workshops.
e. Lessons Learned Workshops.
3. In case of lack in O&M topics coverage in workshops, NWC Project Manager shall
inform Cluster Asset Management and O&M departments to participate in the project
workshops more effectively.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Local Master Plan Consultant Contractor
Consulted:
Design Consultant Supervision Consultant
VE Consultant Cluster Document Control Section Head
Informed: Cluster Asset Management Director Cluster O&M Director

4.14.4.4 PMM-004-GOV-160-040 Ensure That O&M Expertise Participate in the Project

Working Groups and Committees

1. Ensure that the O&M expertise fully participate in the project working groups and
committees.
The project working groups and committees include but not limited to:
a. Testing and commissioning working groups.
b. Initial Acceptance & Handover Committee.
c. Final Acceptance & Handover Committee.

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2. The NWC Project Manager shall inform the Cluster Asset Management and O&M
departments through the Cluster Capital Projects VP by the planned date for the
total/partial initial acceptance handover of the project one year before the date.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Cluster Asset Management Director Cluster O&M Director

Informed: Cluster Capital Projects VP

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5 Project Integration Management

The subject of this particular section of the Project Management Manual (PMM) is Project Integration
Management. The high-level process map for the Project Integration Management is illustrated below.
Figure 5 -1 High-Level Process Map for Project Integration Management

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5.1 PMM-005-INT-010 Develop the Project Charter

5.1.1 Objective
The objective of this process is to develop a document that formally authorizes the existence of the
project and provides the Project Manager with the authority to apply organizational resources to the
project activities. It provides direct link between the project and the strategic objectives of NWC and
shows the organizational commitment to the project. The business case is the main source for
information about the project’s objectives and how the project will contribute to the business goals.
5.1.2 Policies
Policies for this process are:
1. Every project is unique and must have its own Project Charter.
2. The Approved Business Case shall be the key data source for the Project Chatter.
3. Project Charter must identify the project manager in name. However, it is recommended to
identify him as earlier as possible.
5.1.3 Work Flow Chart
Figure 5 -2 PMM-005-INT-010 Develop the Project Charter

5.1.4 Procedures
5.1.4.1 PMM-005-INT-010-010 Prepare the Project Charter

1. Review Project information from the Business Case document.

2. Update existing information and collect new information that is needed to create the Project
Charter.
3. Use (PMF-005-INT-014 Project Charter) to prepare the project charter.
The NWC Project Manager must be named in the Project Charter.

Responsible
Business Unit Construction Director NWC Project Manager
:

Accountable
Cluster Capital Projects VP
:
Cluster Risk Section Head Cluster Scheduling Section Head
Consulted:
Cluster Technical Services Director Cluster Cost Estimation Specialist
Cluster Capital Projects VP
Informed: Projects Portfolio Planning Director
Business Unit Construction Director
PMO GM
Cluster Strategic Planning Manager
5.1.4.2 PMM-007-INT-010-020 Approve the Project Charter

1. Review the information included in the Project Charter.

2. Consult with the Cluster Projects Team as necessary.
3. Discuss with the NWC Project Manager.
4. Approve (sign) the Project Charter using (PMF-005-INT-014 Project Charter).
This procedure shall be performed within 7 days.

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Responsible
Cluster Capital Projects VP
:

Accountable
Cluster Capital Projects VP
:
NWC Project Manager Cluster Scheduling Section Head
Consulted:
Cluster Risk Section Head Cluster Cost Estimation Specialist
Cluster Technical Services Director Business Unit Construction Director
Business Unit Construction Director
Informed: PMO GM
Cluster Strategic Planning Manager
NWC Project Manager
Projects Portfolio Planning Director

5.2 PMM-005-INT-015 Plan Integration Management

5.2.1 Objective
The objective of this process is to establish a consistent guide to properly plan and perform the
integration processes by NWC, Design Consultant, and Contractor. Integration processes widely
impact all other project processes, so the preparation of the Integration Management Plan section in
the NWC Project Management Plan (PMP) must be performed with high degree care and focus.
5.2.2 Policies
Policies for this process are:
1. Each project must have a separate section for Integration Management in the NWC Project
Management Plan, created by the NWC Project Manager and used as the guiding document
by internal and external teams throughout the project.
2. The approved NWC Project Management Plan, including the Integration Management Plan
section, must be included in the tender document when NWC is procuring Second Party
services and products in support of project execution.
3. Second Parties must create their own Integration Management Plan sections for the project
as part of their PMPs during contract mobilization work. These Integration Management
Plan Sections must be approved by NWC during mobilization period.
4. The Integration Management Plans in PMPs of NWC, Design and Construction must be
kept up to date throughout the project life cycle.
5. The contractor should submit a local content progressive plan as per the local content
manual of supply chain department to fulfill the local content targets in the contractor bid
and contract. This plan should continuously be monitored by the NWC Project Manager who
should report any variances to the Local Content Department.
6. Planning for Integration must be specific and unique to the location, activities and
characteristics of the project. It must not be generic or wholesale copy-and-paste from
previous projects, else it will be rejected and the work will not be allowed to proceed.

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5.2.3 Work Flow Chart

Figure 5 -3 PMM-005-INT-015 Plan Project Integration Management

5.2.4 Procedures
5.2.4.1 PMM-005-INT-015-010 Develop the Project Integration Management Plan Section
of the NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001 NWC Project Management
Plan) to develop the NWC Project Management Plan which includes a dedicated
section for Integration management which shall cover at least:
a. Supporting PMPs
b. Responsibility for Monitoring and Controlling of Project Work
c. Land Acquisition Strategy (PMF-014-PRO-055 Project Land Acquisition
Strategy)
d. Site Handover / Work commencement
e. Permitting Plan (initial version) (PMF-005-INT-016 Permitting Plan)
f. Variation Management
2. Update the Project Integration Section throughout the lifecycle with the approved
changes using procedure (PMM-005-INT-020-040 Update the NWC Project
Management Plan).
3. Ensure that only changes approved through (PMM-005-INT-060 Variation Control)
process are implemented.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster PMO Director
Consulted: Cluster Capital Projects VP
Cluster Scheduling & Control
Business Unit Construction Director
Director
Cluster PMO Director
Informed: Cluster Capital Projects VP
Business Unit Construction Director

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5.2.4.2 PMM-007-INT-015-020 Approve the Project Integration Management Plan Section

of NWC Project Management Plan

1. Review and Approve the Integration Management Plan Section of NWC Project
Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project Integration Management Plan Section.
4. Ensure that only changes approved through (PMM-005-INT-060 Variation Control)
process are implemented.

Responsible: Business Unit Construction Director

Accountable: Cluster Capital Projects VP

Cluster PMO Director
Consulted: NWC Project Manager
Cluster Scheduling & Control
Business Unit Construction Director
Director
Cluster PMO Director
Informed: PMO GM
NWC Project Manager
5.2.4.3 PMM-005-INT-015-040 Develop Project Integration Management Plan Section in the
Design PMP

1. Develop Project Integration Management Plan Section in the Design PMP using (PMF-
005-INT-002 Design Project Management Plan).
2. Ensure that the Project Integration Management Plan Section in the Project Design
PMP is in alignment with the Project Integration Management Plan Section in the NWC
PMP.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Integration Management Plan Section.
4. Include the Project Integration Management Plan Section as part of the Project Design
PMP to be approved by NWC.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

5.2.4.4 PMM-005-INT-015-060 Develop Project Integration Management Plan Section in the

Construction / Design & Construction PMP

1. Develop Project Integration Management Plan Section in the:

Design & Construction PMP using (PMF-005-INT-003 Design & Construction
Management Plan).
Construction PMP using (PMF-005-INT-004 Construction Project Management Plan).
2. Ensure that the Project Integration Management Plan Section in the Project Construction
PMP is in alignment with the Project Integration Management Plan Section in the NWC
PMP.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Integration Management Plan Section.
4. Include the Project Integration Management Plan Section as part of the Project
Construction / Design & Construction PMP to be approved by NWC.

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Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

5.3 PMM-005-INT-020 Develop the Project Management Plans

5.3.1 Objective
The objective of this process is to proactively document how the project will be executed, monitored,
controlled and closed, and to communicate this information to all Project Team members.
5.3.2 Policies
Policies for this process are:
1. Every capital project is unique and must have its own NWC Project Management Plan, created
using (PMF-005-INT-001 NWC Project Management Plan).
2. The NWC Project Management Plan must be created by the NWC Project Manager in the initial
planning stage.
3. The NWC Project Management Plan requirements must be part of the tender documents for
the project.
4. The NWC Project Management Plan is a living document, which must be reviewed regularly
and updated by the Project Manager (as per approved inputs or approved variations) throughout
the project duration.
5. Updating the NWC Project Management Plan at the end of each stage (prior to the stage gate
review) is mandatory.
6. The NWC Project Management Plan, by the NWC Project Manager, is the overarching plan for
the entire project lifecycle. It must be supplemented by detailed second party Project
Management Plans during relevant stage of the project:
● Design Project Management Plan by the Design Consultant for design projects.
● Construction Project Management Plan, by the Contractor for construction project.
● Design & Construction Project Management Plan, by the D&B Contractor for design &
construction projects.
7. The NWC Project Management Plan, Design Project Management Plan, Construction 6.
Management Project Plan and Design & Construction Project Management Plan form the basis
for internal and external audits of the project.

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5.3.3 Work Flow Chart

Figure 5 -4 PMM-007-INT-020 Develop the NWC Project Management Plans

5.3.4 Procedures
5.3.4.1 PMM-005-INT-020-020 Develop the NWC Project Management Plan

1. During Initial Planning Stage, collect the complete to date sections of the NWC PMP.
2. Ensure that every section in the NWC PMP is approved by the relevant department as
identified in PMM processes that describe the development and approval of PMP sections.
Consolidate the approved sections in an integrated NWC PMP using (PMF-005-INT-001 NWC
Project Management Plan).
3. Ensure that the NWC PMP is applicable to the specific Project Life Cycle; “Design-Bid-Build”
vs “Design & Build”, as this determines the relationship between the Design PMP and
Construction PMP that will be used by Second Parties.
4. Ensure that the requirement “The Design Consultant / Contractor is required to create his
own PMP and must submit it during the contractual mobilization period” is clearly stated in
the NWC PMP.
5. Submit the NWC PMP to the Business Unit Construction Director for approval.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

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Cluster Contracts Administration

Consulted: Cluster Risk Section Head
Manager
Cluster Scheduling Section Head
Cluster Technical Services Director
Cluster Cost Estimation Specialist
Cluster Testing & Commissioning
Cluster Document Control Section
Section Head
Head
Cluster HSSE Director
Cluster QA Section Head
Business Unit Construction Director
Cluster Cost Control Section Head
Business Unit Safety Section Head
Informed: Business Unit Construction Director

5.3.4.2 PMM-007-INT-020-030 Approve the NWC Project Management Plan

1. Review the NWC Project Management Plan.

2. Ensure that, every section of the NWC Project Management Plan is reviewed and approved
separately by the relevant department at the cluster as identified in PMM processes that
describe the development and approval of PMP sections.
3. Approve the NWC Project Management Plan within 2 days.
4. Send a copy of the approved NWC Project Management Plan to the PMO GM.

Responsible: Business Unit Construction Director

Accountable: Cluster Capital Projects VP

NWC Project Manager Cluster Scheduling & Control
Consulted:
Cluster Technical Services Director Director
Informed: NWC Project Manager PMO GM

5.3.4.3 PMM-005-INT-020-040 Update the NWC Project Management Plan

1. If the NWC PMP is approved, updates to NWC PMP shall be applied only in response to:
a. approved changes processed through Variation Orders. So, NWC Project Manager shall
review the variation documents and ensure the Variation Order approvals then update
the PMP.
b. approved deliverables of every stage gate review. So, NWC Project Manager shall
review the stage gate review documents and ensure the approvals on the documents
then update the PMP.
2. NWC Project Manager shall submit the NWC PMP to the Business Unit Construction
Director for approval.
3. Business Unit Construction Director shall review and approve the Updated NWC PMP
within 2 days.

Responsible: NWC Project Manager Business Unit Construction Director

Accountable: Business Unit Construction Director

Cluster Risk Section Head Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Cost Estimation Specialist Cluster Technical Services Director
Cluster Document Control Section Head Cluster HSSE Director
Cluster QA Section Head Business Unit Construction Director
Cluster Cost Control Section Head Business Unit Safety Section Head
Cluster Scheduling & Control
Informed: Business Unit Construction Director
Director

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5.3.4.4 PMM-005-INT-020-050 Develop and Submit Design Project Management Plan

1. Use the up to date NWC PMP provided by the NWC Project Manager as an input to develop
the Design PMP.
2. The Design Consultant can use one of the followings:
The NWC form (PMF-005-INT-002 Design Project Management Plan).
a. The Consultant’s in-house processes and forms to produce a project-specific Design
PMP which must be in full compliance to the NWC Design PMP requirements.
3. Submit the Design PMP for approval within 30 calendar days from Work Commencement
Meeting.
4. Submit the followings during the mobilization period:
a. Resumes of Key Positions
b. Stakeholder Register
c. Updated Risk Register

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: Cluster Technical Services Director

Informed: NWC Project Manager Cluster Technical Services Director

5.3.4.5 PMM-005-INT-020-060 Approve the Design Project Management Plan

1. Review and approve the Design Project Management Plan.

2. Document and track the results of the reviews till they are closed out satisfactorily.
3. The Cluster Technical Services Director shall review and endorse the design PMP within 5
days.
4. The NWC Project Manager shall approve the Design PMP within 2 days.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Design Consultant
Consulted: Cluster Strategic Planning Director
Cluster Technical Services Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Cluster HSSE Director
Cluster PMO Director
Cluster Scheduling & Control Director VE Director
Informed:
Engineering Director Design Consultant
5.3.4.6 PMM-005-INT-020-070 Update and Approve the Design Project Management Plan
Based on Approved Variations

1. The Design Consultant shall formally update the Design PMP in response to Approved
Variations.
2. The Design Consultant shall ensure that Design PMP versions are correctly identified with
an incremental version identifier with reference to Approved Variations in the revision history
table of the PMP.
3. The Cluster Technical Services Director shall review and endorse the design PMP within 5
days.
4. The NWC Project Manager shall approve the Updated Design PMP within 2 days.
Design Consultant
Responsible: NWC Project Manager
Cluster Technical Services Director

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Accountable: NWC Project Manager

Cluster Technical Services Director Cluster Strategic Planning Director
Consulted:
Cluster Scheduling & Control Director Business Unit Construction Director
Cluster PMO Director Cluster HSSE Director
Informed: NWC Project Manager Cluster Technical Services Director

5.3.4.7 PMM-005-INT-020-080 Develop and Submit Construction / Design & Construction

Project Management Plan

1. The Contractor shall develop the Construction PMP / Design & Construction
PMP.
2. Use the up to date NWC PMP provided by the NWC Project Manager as an
input to develop the Construction / Design & Construction PMP.
3. The contractor can use one of the followings:
4. The NWC form (PMF-005-INT-004 Construction Project Management Plan)
/ (PMF-005-INT-003 Design & Construction Project Management Plan).
5. The Contractor’s in-house processes and forms to produce a project-specific
Construction / Design & Construction PMP which must be in full compliance
to the NWC PMP requirement.
i. The Construction / Design & Construction PMP shall be submitted during
the mobilization period.
ii. The submitted Construction / Design & Construction PMP shall consider
the Revised BoQ (if any).
6. Submit the Construction / Design & Construction PMP for approval within 30
calendar days from site handover.
7. Submit the followings during the mobilization period:
i. Resumes of Key Positions
ii. Stakeholder Register
iii. Populated Risk Register
iv. Design Verification/Deviation Remarks

Responsible: Contractor

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Supervision Consultant
Cluster Scheduling & Control Director
NWC Project Manager Cluster Scheduling & Control
Informed:
Cluster Contracts Administration Director
Manager Supervision Consultant
5.3.4.8 PMM-005-INT-020-090 Approve the Construction / Design & Construction Project
Management Plan

1. Review the Construction / Design & Construction PMP.

2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Supervision Consultant shall review and endorse the Construction / Design & Construction
PMP within 5 days.
4. NWC Project Manager shall approve the Construction / Design & Construction PMP within 2
days.

Responsible: Supervision Consultant NWC Project Manager

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Accountable: Cluster Capital Projects VP

Contractor
Consulted: Cluster Strategic Planning Director
Cluster Technical Services Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Cluster HSSE Director
Cluster PMO Director
Cluster Contracts Administration
Informed:
Manager Contractor
Cluster Scheduling & Control Director
5.3.4.9 PMM-005-INT-020-100 Update and Approve the Construction / Design &
Construction Project Management Plan Based on Approved Variations

1. The Contractor shall formally update the Construction / Design & Construction PMP in
response to Approved Variations.
2. The Contractor shall ensure that Construction / Design & Construction PMP versions are
correctly identified with an incremental version identifier with reference to Approved
Variations in the revision history table of the PMP.
3. The Supervision Consultant shall review and endorse the Construction / Design &
Construction PMP within 5 days.
4. The NWC Project Manager shall approve the Updated Construction / Design & Construction
PMP within 2 days.
Contractor
Responsible: NWC Project Manager
Supervision Consultant
Accountable: NWC Project Manager
Cluster Technical Services Director Cluster Strategic Planning Director
Consulted:
Cluster Scheduling & Control Director Business Unit Construction Director
Cluster PMO Director Cluster HSSE Director
NWC Project Manager
Informed: Cluster Scheduling & Control Director
Cluster Contracts Administration
Supervision Consultant
Manager

5.4 PMM-005-INT-023 Site Handover to Contractor and Work Commencement

by Consultant
5.4.1 Objective
The objective of this process is to formalize a proper project site handover to Contractor and adopt
the site handover date as project start date. It also formalizes the work commencement of
Design/Supervision Consultant.
5.4.2 Policies
Policies for this process are:
1. For every construction project, a project site handover process should be performed. The
site handover committee report should be issued maximum 15 calendar days from:
i. Project contract signing date for projects above SAR 5M.
ii. Project PO issuance date for projects less than SAR 5M (without contract as per supply
chain policy).
2. For every design or supervision project, a consultant work commencement meeting process
should be performed. The meeting should be conducted within maximum 15 calendar days
from:
i. Project contract signing date for projects above SAR 5M.
ii. Project PO issuance date for projects less than SAR 5M (without contract as per supply
chain policy).
3. In case there is an urgency that critically requires to handover the project site before signing
the project contract, a justified request should be raised to the Projects EVP to allow the site
handover.

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4. Contractor/Consultant must formally nominate, by a letter, a representative to participate in

project site handing over committee / work commencement meeting.
5. The date of project site handover / work commencement meeting shall be considered the
project start date.
6. Mobilization period duration for every project shall be:
i. 8% of project duration for projects with a duration ≥ 12 months.
ii. 10% of project duration for projects with a duration < 12 months.
7. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
5.4.3 Work Flow Chart
Figure 5 -5 PMM-005-INT-023 Site Handover to Contractor and Work Commencement by Consultant

5.4.4 Procedures
5.4.4.1 PMM-005-INT-023-010 Nominate a Representative for Project Site Handover
Committee / Work Commencement Meeting

1. For Construction or Design & Construction projects:

a. After issuing the contract to the contractor, the NWC Project Manager, within 1 day, shall:
i. prepare a nomination request for the site handover committee to be sent to
contractor using (PMF-005-INT-028 contractor authorized representative Nomination
Request for Site Handover).
ii. raise the request to the Cluster Capital Projects VP for signature and issuing to the
contractor.
b. The Cluster Capital Projects VP shall send the request to the Contractor to nominate his
representative for the Project Site Handover Committee within 1 day.
c. The NWC Project Manager, within 1 day, shall:

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i. notify the Supervision Consultant (if assigned) to nominate a representative for the
Construction Site Handover Committee.
ii. collect nominee names for the committee from departments that are relevant to the
project.
d. The Contractor shall send his nomination letters identifying his representatives within 1
day.
2. For design, supervision or consultancy projects:
a. After issuing the contract to the consultant, the NWC Project Manager, within 1 day, shall:
i. prepare a nomination request for the work commencement meeting to be sent to the
consultant using (PMF-005-INT-038 Consultant Representative Nomination Request
for Work Commencement Meeting).
ii. raise the request to the Cluster Capital Projects VP / HQ Department GM for
signature and issuing to the consultant.
b. The Cluster Capital Projects VP / HQ Department GM shall send the request to the
consultant to nominate his representative for the work commencement meeting within 1
day.
c. The NWC Project Manager, within 1 day, shall collect nominee names from departments
that are relevant to the project to participate in the meeting.
d. The Consultant shall send his nomination letters identifying his representatives within 1
day.
NWC Project Manager
Responsible:
Cluster Capital Projects VP (for Cluster HQ Department GM (for HQ Projects)
Projects)
Accountable: Cluster Capital Projects VP
Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Design Consultant
Supervision Consultant
5.4.4.2 PMM-007-INT-023-020 Form Project Site Handover Committee

For construction projects:

1. After receiving the nominations within 1 day, NWC Project Manager shall request from
Cluster Capital Projects VP to form a project site handover committee including
representatives from:
a. Cluster Projects department
b. Cluster Asset Management
c. O&M department
d. Representative of any related HQ/cluster department (as required)
e. Contractor
f. Consultant
The Cluster Capital Projects VP shall issue the administrative order (PMF-005-INT-029 Site
Handover Committee Forming Decision) for site handover committee formation within 1 day.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Consulted: Cluster Capital Projects VP Supervision Consultant

Contractor
Informed: Project Site Handover Committee
Supervision Consultant

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5.4.4.3 PMM-005-INT-023-023 Perform Site Visit to Handover the Site

For construction projects:

1. The committee shall conduct the scheduled site visit to handover the site to the Contractor.
The site handover shall be completed within maximum 15 calendar days from contract signing
date.
This duration includes the issuance of the site handover report or delay report.

Responsible: Project Site Handover Committee

Accountable: NWC Project Manager

Consulted: Cluster Capital Projects VP Supervision Consultant

Informed: Contractor Supervision Consultant

5.4.4.4 PMM-005-INT-023-026 Conduct Work Commencement Meeting

For design/supervision projects:

1. NWC Project Manager shall invite for the meeting the followings:
a. HQ/Cluster Technical Services Director (in design projects)
b. HQ/Cluster Scheduling & Control Director (in supervision projects)
c. representative of any related HQ/cluster department (as required).
d. Design/Supervision Consultant nominated representative.
2. The invitees shall conduct the scheduled work commencement meeting to enable
consultant’s work commencement.
The work commencement meeting shall be completed within maximum 15 calendar days from
contract signing date. This duration includes the issuance of the work commencement report
or delay report.
Work Commencement Meeting
Responsible: NWC Project Manager
Attendees
Cluster Capital Projects VP (for Cluster Projects) / HQ Department GM (for HQ
Accountable:
Projects)
Cluster Capital Projects VP (for Cluster HQ Department GM (for HQ
Consulted:
Projects) Projects)
Cluster Capital Projects VP
Informed: Design Consultant
Supervision Consultant
5.4.4.5 PMM-005-INT-023-030 Prepare and Issue Project Site Handover Report / Work
Commencement Report

1. For construction projects:

a. The Committee shall visit the project site to validate:
i. The project site clearance as stated in the contract and Contractor technical proposal.
ii. The matching between the project site and the project site layouts.
In case the Contractor attended the visit and no issues preventing the project site handover
were found, the committee shall prepare and sign a project site handover report (PMF-005-
INT-030 Site Handover Report) within 4 days.
iii. The report may include reservations by any party.
iv. The report date shall be considered the project start date.
b. The Cluster Capital Projects VP shall approve The Site Handover Report within 1 day.
c. The NWC Project Manager shall:

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i. upload the Site Handover Report and update the project status in Capital Projects PMS.
ii. inform Cluster Finance GM.
2. For design/supervision projects:
In case the Consultant attended the work commencement meeting and no issues preventing
the work commencement were found, the attendees shall prepare and sign a work
commencement report (PMF-005-INT-039 Work Commencement Report) within 2 days.
i. The report may include reservations by any party.
ii. The report date shall be considered the project start date.
b. Raise The Work Commencement Report to the Cluster Capital Projects VP / HQ department
GM for information within 1 day.
c. The NWC Project Manager shall:
i. upload the Work Commencement Report and update the project status in Capital
Projects PMS.
ii. inform Cluster Finance GM.
This procedure (whether Construction, Design or Supervision) shall be completed maximum 15
calendar days from contract signing date.
Cluster Capital Projects VP (for
Responsible: Project Site Handover Committee
Cluster Projects)
Work Commencement Meeting
HQ Department GM (for HQ
Attendees
Projects)
Cluster Capital Projects VP (for Cluster Projects) / HQ Department GM (for HQ
Accountable:
Projects)
Cluster Capital Projects VP (for Cluster
Consulted: Supervision Consultant (for site
Projects)
handover)
HQ Department GM (for HQ Projects)
Contractor
Informed:
Design Consultant PMO GM
Supervision Consultant Scheduling & Control GM
Cluster Contracts Administration Cluster Finance GM
Manager
5.4.4.6 PMM-005-INT-023-040 Prepare and Issue the Project Site Handover Delay Report /
Work Commencement Delay Report and Arrange Issues Removal

1. For construction projects:

In case the Contractor attended the visit and issues preventing the project site handover were
found, the committee shall prepare and sign a project site handover delay report (PMF-
005-INT-031 Site Handover Delay Report). The report must indicate the issues.
a. the Cluster Capital Projects VP shall approve The Site Handover Delay Report maximum
15 calendar days from contract signing date.
b. After the project site handover delay report issuance, NWC project manager shall escalate
the issues to resolve them to enable project site handing over to Contractor.
After issues removal, restart the process from (PMM-005-INT-023-010).
2. For design/supervision projects:
In case the Design/Supervision Consultant attended the work commencement meeting and
issues preventing the commencing of consultant’s work in the project were found, the
attendees shall prepare and sign a Commencement Delay Report (PMF-005-INT-040 Work
Commencement Delay Report). The report must indicate the issues.
a. Raise The Commencement Delay Report to the Cluster Capital Projects VP / HQ
department GM for information maximum 15 calendar days from contract signing date.
b. After the Commencement Delay Report issuance, the NWC Project Manager shall escalate
the issues to resolve them to enable Consultant Work Commencement.

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After issues removal, restart the process from (PMM-005-INT-023-010).

Project Site Handover Committee
Responsible:
Work Commencement Meeting HQ Department GM (for HQ
Attendees Projects)
Cluster Capital Projects VP (for Cluster NWC Project Manager
Projects)
Cluster Capital Projects VP (for Cluster Projects) / HQ Department GM (for HQ
Accountable:
Projects)
Cluster Capital Projects VP (for Cluster
Consulted: Supervision Consultant (for site
Projects)
handover)
HQ Department GM (for HQ Projects)
Contractor
Informed: Supervision Consultant
Design Consultant
5.4.4.7 PMM-005-INT-023-050 Issue Warning Letter to Contractor/Consultant

1. For construction projects:

In case the Contractor did not attend the scheduled visit:
The NWC Project Manager shall prepare a warning letter using (PMF-005-INT-032
Warning Letter due to Not Attending the Site Handover) and raise it to Cluster Capital
Projects VP:
i. rescheduling the site visit after 15 calendar days.
ii. stating that if he does not attend, the project site shall be handed over in absentia.
iii. stating that the absentia handover date shall be considered the project start date.
Cluster Capital Projects VP shall send the warning letter to the Contractor.
These two actions shall be performed within 2 days.
2. For design/supervision projects:
In case the Consultant did not attend the scheduled meeting, do the followings:
The NWC Project Manager shall prepare a warning letter using (PMF-005-INT-041
Warning Letter due to Not Attending the Work Commencement Meeting) and raise it to
the Cluster Capital Projects VP / HQ department GM:
i. rescheduling the work commencement meeting after 15 calendar days.
ii. stating the meeting shall be conducted even if he does not attend.
iii. stating the meeting date shall be considered the consultant commencement date.
The Cluster Capital Projects VP / HQ department GM shall send the warning letter to the
Consultant.
These two actions shall be performed within 3 days.
NWC Project Manager
Responsible:
Cluster Capital Projects VP (for Cluster HQ Department GM (for HQ Projects)
Projects)
Cluster Capital Projects VP (for Cluster Projects) / HQ Department GM (for HQ
Accountable:
Projects)
Cluster Contracts Administration
Consulted:
Manager
Contractor Scheduling Control Director
Informed:
Design Consultant Cluster Capital Projects Procurement
Supervision Consultant Manager
5.4.4.8 PMM-005-INT-023-055 Perform Rescheduled Project Site Handover Visit / Work
Commencement Meeting

1. For construction projects:

a. In case the Contractor again does not attend the visit, the committee shall, in
absence of Contractor, visit the site.

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b. If issues are found go to (PMM-005-INT-023-040).

1. If no issues are found the committee shall:
c. conduct an absentia site handover to Contractor.
d. prepare and sign a project site handover report. The committee shall consider the
followings in the report:
e. The report is in the form (PMF-005-INT-030 Site Handover Report).
1. The report date shall be considered the project start date.
2. The report may include reservations by any party.
f. The absentia site handover and report preparation shall be performed within 4 days.
g. The committee shall send the report to the Cluster Capital Projects VP for approval.
h. The Cluster Capital Projects VP shall approve the report within 1 day.
i. NWC Project Manager shall:
i. issue the Site Handover Report to the contractor.
ii. upload the site handover report and update the project status in Capital
Projects PMS.
j. If Contractor does not start the work, NWC shall apply contract terms which may
result in contract termination.
2. For Design / Supervision projects:
a. In case the Consultant again does not attend the meeting, the attendees shall, in
absence of the Consultant, conduct the meeting:
b. If issues are found go to (PMM-005-INT-023-040).
c. If no issues are found the attendees shall do the followings:
i. perform an absentia work commencement to the consultant.
ii. prepare and sign a work commencement report. The attendees shall
consider the followings in the report:
1. The report shall be in the form (PMF-005-INT-039 Work
Commencement Report).
2. The report date shall be considered the project start date.
3. The report may include reservations by any party.
The absentia site handover and report preparation shall be performed within 2 days.
d. NWC Project Manager shall send the report to the Cluster Capital Projects VP /
HQ department GM for approval.
e. the Cluster Capital Projects VP / HQ department GM shall approve the report within
1 day.
f. NWC Project Manager shall:
g. issue the Work Commencement Report the contractor.
h. upload the Work Commencement Report and update the project status in Capital
Projects PMS.
i. If Consultant does not start the work, NWC shall apply contract terms which may
result in contract termination.
Cluster Capital Projects VP (for
Responsible: Project Site Handover Committee
Cluster Projects)
Work Commencement Meeting
HQ Department GM (for HQ
Attendees
Projects)
Cluster Capital Projects VP (for Cluster Projects) / HQ Department GM (for
Accountable:
HQ Projects)

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Cluster Contracts Administration

Consulted:
Manager
Contractor
Informed: PMO GM
Design Consultant
Scheduling & Control GM
Supervision Consultant
Cluster Capital Projects VP
Cluster Contracts Administration
Cluster Finance GM
Manager
5.5 PMM-005-INT-026 Conduct Project Kick Off Meeting
5.5.1 Objective
The objective of this process is to Communicate the project management system and requirements
to the Contractor.
5.5.2 Policies
Policies for this process are:
1. Every capital project must have a kick off Meeting before work start.
2. Kick off Meeting minutes must be prepared and communicated to Kickoff meeting Attendees
beside the:
i. Business Unit Construction Director for cluster projects
ii. HQ department GM for HQ projects.
5.5.3 Work Flow Chart
Figure 5 -6 PMM-005-INT-026 Conduct Project Kick Off Meeting

5.5.4 Procedures
5.5.4.1 PMM-005-INT-026-010 Prepare the Kickoff Meeting Agenda and Invite Attendees

Prepare the agenda for the project Kick off meeting using (PMF-005-INT-033 Kick-off Meeting
Agenda).
1. Invite the key person from the following departments to attend the projects kickoff meeting:
a. Contractor/Consultant Project Manager and his management team
b. NWC Project Manager
c. HQ/Cluster Contracts department
d. HQ/Cluster QA department
e. HQ/Cluster Scheduling department
f. HQ/Cluster Cost Control department
g. HQ/Cluster Engineering department
h. HQ/Cluster Risk department
i. HQ/Business Unit Safety Section Head

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j. Supervision Consultant Project Manager and his management Team (for construction
projects)

Responsible: NWC Project Manager

Business Unit Construction Director (cluster projects) / HQ Department GM (HQ
Accountable:
projects)
Cluster Projects Team (for cluster
Consulted:
projects) Supervision Consultant (for
HQ Capital Projects Team (for HQ construction projects)
projects)
HQ Department GM (for HQ
Informed: Business Unit Construction Director (for
projects)
cluster projects)
Kickoff meeting Attendees
5.5.4.2 PMM-005-INT-026-020 Conduct the Kickoff Meeting and Write and Circulate the
Meeting Minutes

1. Conduct the meeting.

2. Discuss all agenda items.
3. Answer all Contractor’s questions.
Circulate the minutes of meeting using (PMF-012-COM-051 Standard Minutes of Meeting
Template).

Responsible: NWC Project Manager

Business Unit Construction Director (cluster projects) / HQ Department GM
Accountable:
(HQ projects)
Cluster Projects Team (for cluster
Consulted:
projects) Supervision Consultant (for
HQ Capital Projects Team (for HQ construction projects)
projects)
HQ Department GM (for HQ
Informed: Business Unit Construction Director (for
projects)
cluster projects)
Kickoff meeting Attendees

5.6 PMM-005-INT-030 Direct and Manage Project Execution

The objective of this process is to direct the performance of the planned project activities, and to manage
the various technical and organizational interfaces that exist within the project. This relies heavily on the:
● Cluster Technical Services Director (to direct and manage the design consultant).
● Supervision consultant (to direct and manage the contractor).
● NWC Project Manager (to direct and manage the Cluster Technical Services Director, supervision
consultant and contractor).
The NWC Project Manager must maintain sufficient direction and management to ensure that the desired
outcomes are accomplished by the work defined in the NWC Project Management Plan and executed
throughout the project. The NWC Project Manager is responsible for continuously and effectively
managing the project issues utilizing a project issue log (PMF-005-INT-050 Project Issue Log).
The approach of the NWC Project Manager is to ensure alignment between his NWC Project
Management Plan and the Second Party management plans (i.e., Design Project Management Plan by
the Design Consultant and Construction Project Management Plan by the Contractor). This is illustrated
below in Figure 5 - 7 (for Design-Bid-Build PLC) and Figure 5 - 8 (for Design & Build PLC):

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Figure 5 - 7 Directing the Design Project and Construction Projects in Design-Bid-Build PLC

Direct
Project
Management
Plan

NWC
Project Manger

Design Construction
Management Management
Plan Plan

Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant

Design Construction
Planned Planned
Activities Activities

Figure 5 - 8 Directing the Design & Construction Project in Design & Build PLC

Direct
Project
Management
Plan

NWC
Project Manger

Design and
Construction
Management
Plan

Contractor Supervising
Consultant

Design and
Construction
Planned
Activities

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The supporting approach of the Cluster Technical Services Director is to ensure accomplishment by the
Design Consultant of all work defined in the Design Project Management Plan. This is illustrated below
in Figure 5 -9 :

Figure 5 - 9 Managing the Design project in Design-Bid-Build PLC

Project
Management
Plan

NWC
Project Manger
Manage

Design Construction
Management Management
Plan Plan

Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant

Design Construction
Planned Planned
Activities Activities

The supporting approach of the Supervision Consultant is to ensure accomplishment by the

Contractor of all work defined in the Construction Project Management Plan. This is illustrated below
in Figure 5 -10 (for Design-Bid-Build PLC) and 5 -11 (for Design & Build PLC):
Figure 5 -10 Managing the Construction Project in Design-Bid-Build PLC

Project
Management
Plan

NWC
Project Manger
Manage

Design Construction
Management Management
Plan Plan

Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant

Design Construction
Planned Planned
Activities Activities

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Figure 5 -11 Managing the Construction Project in Design & Build PLC

Project
Management
Plan

NWC
Project Manger
Manage

Design and
Construction
Management
Plan

Contractor Supervising
Consultant

Design and
Construction
Planned
Activities

Refer to the Project Communications Management section of the manual for information on how work
progress is measured and reported, and to the Project Risk Management section of the manual for
information on how risks to project scope, Schedule, cost and quality are monitored and controlled
through action plans owned by named persons. A key role of the NWC Project Manager is to ensure
that resources are being applied to address any shortfalls likely to impact upon achievement of the
project’s objectives.

5.7 PMM-005-INT-040 Manage Project Knowledge

5.7.1 Objective
The objective of this process is to use the existing knowledge and create new knowledge to achieve
the project’s objectives and contribute to organizational learning and Lessons learned. This process
is applicable for project teams and cluster projects team.
5.7.2 Policies
Policies for this process are:
1. Lessons Learned or new knowledge can be identified by any project team member.
2. Lessons Learned workshops shall be periodically conducted at project level, cluster projects
department and Projects department at HQ.
3. A Lessons Learned registers must be developed in every project and made available to
every project team member.
4. Each cluster projects department should maintain a lessons learned register and database
and make it available to all project teams in the cluster.
5. A Master Lessons Learned registers must be developed by Center of Excellence at HQ and
made available to every member of cluster projects department or Projects department at
HQ.
6. Project team members to be motivated to perform knowledge and experience exchange
activities. knowledge and experience include both explicit and tacit knowledge.
7. This process to be implemented on a quarterly basis for all cluster projects team. In these
workshops:
i. The Cluster PMO Director shall play the roles that NWC Project Manager plays in this
process.

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ii. The Cluster Capital Projects VP shall play the roles that Business Unit Construction
Director plays in this process.
8. As managing knowledge is not:
● just documenting the knowledge to be shared.
● just obtaining and publishing lessons learned.
NWC Project Managers and Key persons in Projects Department at HQ and Clusters are
responsible for managing both tacit and explicit knowledges by:
● knowledge sharing.
● knowledge integration from project management or any different domain.
via workshops, meetings, emails or any communication tool to enable:
● reusing existing knowledge.
● creating new knowledge.
9. Lessons Learned Workshops will be conducted regularly on a quarterly basis at the three
levels (Project, Cluster & HQ) and will be scheduled such that the project conducts its
workshop at the first month of every quarter, the clusters hold workshops at the second
month and the HQ at the third in order to maintain a continuous flow of knowledge and
compilation of lessons learned.
5.7.3 Work Flow Chart
Figure 5 -12 PMM-005-INT-040 Manage Project Knowledge

5.7.4 Procedure:
5.7.4.1 PMM-005-INT-040-010 Identify Initial Lessons Learned / New Knowledge

1. Any Project Team Member shall Identify lesson learned / new knowledge once it occurs.
2. Document the:
Lesson learned by filling the (PMF-005-INT-025 Lessons Learned Form).
○ New knowledge in a suitable format.
3. Share it with direct supervisor/manager for acceptance and inclusion in the next lessons
learned workshop.

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4. The direct supervisor/manager shall:

○ review and assess the lesson learned / new knowledge then accept or reject it.
○ escalate the accepted lesson learned / new knowledge to the NWC Project Manager.
5. NWC Project Manager shall send the updated project lessons learned register to Cluster
PMO Director.

Responsible: Any Project Team Member NWC Project Manager

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster PMO Director

Informed: NWC Project Manager

5.7.4.2 PMM-005-INT-040-020 Conduct a Quarterly Project Lesson Learned Workshop

1. For the quarterly lessons learned workshop:

i. invite representatives from the Design Consultant, Contractor, Supervision Consultant
and NWC Cluster Projects department.
ii. conduct the workshop.
iii. during the workshop, lead the workshop.
After the workshop, the NWC Project Manager shall add applicable lessons learned to the
project lessons learned register (PMF-005-INT-020 Lessons Learned Register).
2. Send the updated project lessons learned register to Cluster PMO Director.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Design Consultant
Consulted: Cluster Projects Team
Contractor
Cluster PMO Director
Supervision Consultant
Informed: Cluster PMO Director

5.7.4.3 PMM-005-INT-040-025 Review and Publish the Lessons Learned Register / New
Knowledges

1. The Cluster PMO Director shall:

i. review the Project Lessons Learned Register / New Knowledges.
ii. for:
Lessons learned, insert the applicable Lessons Learned to the Cluster Lessons Learned
register using the (PMF-005-INT-020 Lessons Learned Register) from the received:
- lessons learned registers
- lesson learned reports
b. New knowledges, review and revise the new knowledges.
iii. Send the Updated Cluster lessons learned register to the Center of Excellence Director.
2. The Center of Excellence Director shall:
i. review the Project Lessons Learned Report / New Knowledges
ii. for:

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Lessons learned, insert the applicable Lessons Learned to the NWC Master Lessons
Learned register using the (PMF-005-INT-020 Lessons Learned Register) from the
received:
- lessons learned registers
- lesson learned reports.
b. New knowledges, review and revise the new knowledges.
iii. Upload the updated Lessons Learned / revised new knowledges to Capital Projects PMS
to be available to all project’s employees at HQ and Clusters.

Responsible: Cluster PMO Director Center of Excellence Director

Accountable: Center of Excellence Director

Design Consultant
Consulted: Cluster Projects Team
Contractor
Cluster PMO Director
Supervision Consultant
Informed: NWC Projects Team

5.7.4.4 PMM-005-INT-040-030 Prepare Project Lessons Learned Report

Prior to project closure, the NWC Project Manager shall prepare a detailed project lessons
learned report using (PMF-005-INT-021 Lessons Learned Report).
The project lessons learned register shall be the key input to the project lessons learned
report.
1. Attach to the report the documents that stated in the report or any other required documents.
2. NWC Project Manager shall submit the report to the Cluster PMO Director.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Supervision Consultant Cluster Projects Team
Consulted:
Contractor Cluster PMO Director
Informed: Cluster PMO Director

5.7.4.5 PMM-005-INT-040-040 Review the Lessons Learned Report / New Knowledges

1. The Cluster PMO Director shall:

○ review the project lessons learned report / new knowledges.
○ update the cluster master lessons learned register according to the received lessons
learned reports.
○ Send the updated cluster lessons learned register and lessons learned report to the Center
of Excellence Director.
2. The Center of Excellence Director shall:
○ review the project lessons learned reports / new knowledges.
○ update the NWC master lessons learned register according to the received cluster master
lessons learned register.
○ upload the updated NWC master lessons learned register and new knowledges to Capital
Projects PMS to be available to all project’s employees at HQ and Clusters.

Responsible: Cluster PMO Director Center of Excellence Director

Accountable: Center of Excellence Director

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Consulted: PMO GM NWC Project Manager

Informed: NWC Capital Projects Team

5.8 PMM-005-INT-050 Monitor and Control Project Work

In the context of this manual, the process for “Monitoring and Control of Project Work” is a supporting
activity of PMM-005-INT-030 Direct and Manage Project Execution. This is illustrated below in Figures 5-
13, 5-14 (for Design-Bid-Build PLC) and 5-15 (for Design & Build PLC):

Figure 5-13 Monitoring and Controlling the Design Project in Design-Bid-Build PLC

Project
Management
Plan

NWC
Project Manger

Monitor & Control

Design Construction
Management Management
Plan Plan

Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant

Design Construction
Planned Planned
Activities Activities

Figure 5-14 Monitoring and Controlling the Construction Project in Design-Bid-Build PLC

Project
Management
Plan

NWC
Project Manger

Monitor & Control

Design Construction
Management Management
Plan Plan

Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant

Design Construction
Planned Planned
Activities Activities

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Figure 5-15 Monitoring and Controlling the Design and Construction Project in Design & Build PLC

Project
Management
Plan

NWC
Project Manger

Monitor & Control

Design and
Construction
Management
Plan

Contractor Supervising
Consultant

Design and
Construction
Planned
Activities

5.9 PMM-005-INT-055 Identify and Avoid Potential Claims

5.9.1 Objective
The objective of this process is to describe how to act towards the inevitable aspect of claims by:
● having a clear understanding from the client’s point of view and the contractor’s point of view and
to document any potential claim under the contract which may results in extension of time and
increase of cost.
● minimizing the possibilities of identified potential claims by keeping the causes that create claims
under control by performing actions during project life.
5.9.2 Policies
Policies for this process are:
1. Project manager is responsible for raising the awareness about the typical causes of Claims
to help avoid potential claims. The early the identification of potential claims during project
life the better the probability to avoid the claim. Review the examples in (PMF-007-INT-047
Claim Management Guidelines).
2. NWC team, Design Consultant, Supervision Consultant and Contractor are responsible for
directing and managing the project in a manner to avoid claims through collaborative
working between the project parties and fair and accurate application of effective project
planning, communication, control and variation management.
3. All project team members must aim to proactively eliminate claims by:
i. Identifying potential claims and take steps to avoid or mitigate.
ii. Having frank discussions between parties to discourage spurious claims.
iii. Applying contract provisions for relief where justified.
iv. Creating prompt resolutions for acknowledged changes.
4. NWC team, Design Consultant, Supervision Consultant and Contractor are responsible for
making:
i. a thorough review on the project contract
ii. a proper study for the related Enterprise Environmental Factors (EEFs)
and gain a proper knowledge about them to identify, report and discuss potential claims.
5. Any identified cases of potential claims should be documented with supporting documents.

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6. In case of disagreements, escalation should be as following order:

● NWC Project Manager
● Cluster Capital Projects VP
● Projects Execution VP
● Projects EVP
● NWC CEO

5.9.3 Work Flow Chart

Figure 5-16 PMM-005-INT-055 Identify and Avoid Potential Claims

5.9.4 Procedures
5.9.4.1 PMM-005-INT-055-010 Raise the Awareness about the Typical Claim Causes

1. During all project life, the NWC Project Manager shall raise the awareness of the
project team members about the typical causes of Claims to help to early identify them
to avoid or manage.
Raising the awareness can be via:
a. periodic objectives cascading.
b. discussions in risk workshops.
c. discussions in lessons learned workshops.
d. progress meetings.
Rerefer to (PMF-005-INT-047 Claim Management Guideline).

Responsible: NWC Project Manager Supervision Consultant

Accountable: NWC Project Manager

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Cluster Contracts Administration

Consulted:
Manager
NWC Project Team Supervision Consultant
Informed:
Design Consultant Contractor
5.9.4.2 PMM-005-INT-055-020 Identify Potential Claims by Reviewing Contract Documents

1. During project mobilization period, review all contract documents which includes but
are not limited to:
a. Contract Terms and Conditions
b. Contract Scope
c. Contract Baseline Schedule and Schedule adjustments
d. Project Risk Register
e. Responsibility Matrix
f. Progress Reports and Forecasts
g. Manpower input Reports and Forecasts
h. Cost/Expenditure Reports and Forecasts
i. Project correspondence including Requests for Approvals and Information
j. Contract Documents
2. Encourage internal stakeholders to identify any potential claims.
3. Conduct meetings with stakeholders who are related to the identified potential claims
to:
a. plan to resolve/mitigate the circumstance leading to the potential claims.
NWC Project Manager shall manage resolving / mitigating the circumstance
leading to potential claims on case by case basis.
b. outline how to respond to claim if raised.
4. Monitor and document all identified potential claims.
Rerefer to (PMF-005-INT-047 Claim Management Guideline).
Cluster Contracts Administration
Responsible: NWC Project Manager
Manager
Accountable: NWC Project Manager
Cluster Scheduling Section Head
Consulted: Cluster Risk Section Head
Cluster Project Control Section Head
Informed: NWC Project Team

5.9.4.3 PMM-005-INT-055-030 Identify Potential Claims by Understating the Related

Enterprise Environmental Factors

1. During project mobilization period, review all internal and external Enterprise
Environment Factors (EEF) that are in relation with the project. For the typical EEFs
list, see the first policy under the process “PMM-004-GOV-010 Enterprise
Environmental Factors and Organizational Process Assets”.
2. Encourage internal stakeholders to identify any potential claims.
3. Conduct meetings with stakeholders who are related to the identified potential claims
to:
a. plan to resolve/mitigate the circumstances that lead to the potential claims.
NWC Project Manager shall manage resolving /mitigating the circumstance
leading to potential claims on case by case basis.
b. outline how to respond to claim if raised.

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4. Monitor and document all identified potential claims.

This procedure shall be repeated after mobilization period on periodic basis throughout the
project life cycle. Rerefer to (PMF-005-INT-047 Claim Management Guideline).
Cluster Contracts Administration
Responsible: NWC Project Manager
Manager
Accountable: NWC Project Manager
Cluster Scheduling Section Head
Consulted: Cluster Risk Section Head
Cluster Project Control Section Head
Informed: NWC Project Team

5.9.4.4 PMM-005-INT-055-040 Identify Potential Claims by Reviewing Constructability

1. During each design review:

a. Ensure that all related issues from constructability perspective have been
considered and implemented in the design
b. Review Project Risk Register to consider relevant Risks.
2. During each stage of the Project Life Cycle:
a. Receive, evaluate and respond to constructability suggestions submitted by
project team.
b. Add the approved constructability suggestions to the agenda of next design
review workshop and to the project lesson learned register.
3. Review Method Statements considering constructability. Arrange Method Statements
review conferences when necessary with Consultant/Contractor and:
a. Confirm compatibility of Design and Method Statements.
b. Review Safety Risk Assessment attached to Method Statement.
c. Review and confirm the Responsibilities.
Rerefer to (PMF-005-INT-047 Claim Management Guideline).
NWC Project Manager
Responsible: Supervision Consultant
Cluster Technical Services Director
Accountable: NWC Project Manager

Consulted: Cluster Risk Section Head

Informed: Continuous Improvement Manager

5.9.4.5 PMM-005-INT-055-050 Identify Potential Claims by Timely Responding to Second

Parties’ Requests

1. Timely respond to the submitted documents by the second party within the contractual
duration specially:
a. Requests for Approval.
b. Request for Information.
2. Provide quick and clear instructions for any required adjustments on the documents
submitted for approval. Use (PMF-012-COM-067 Comments Resolution Sheet) to track
submittal adjustments.
3. Rerefer to (PMF-057-INT-047 Claim Management Guideline).

Responsible: NWC Project Team

Accountable: NWC Project Manager

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Consulted: NWC Project Team

Informed: NWC Project Team

5.9.4.6 PMM-005-INT-055-060 Avoid/Manage Potential Claims

1. After identifying the potential claims:

a. Identify the required actions to avoid or manage the potential claims.
b. Assign these actions to owners.
c. Schedule these actions.
d. Monitor the implementation of these actions.
Every action shall fall under one or more of PMM sections; thus it shall be managed as per
the section processes. Rerefer to (PMF-005-INT-047 Claim Management Guideline).
NWC Project Manager
Responsible:
Cluster Contracts Administration Supervision Consultant
Manager
Accountable: NWC Project Manager

Consulted: Relevant Stakeholder

Informed: Cluster Capital Projects VP

5.10 PMM-005-INT-060 Variation Control

5.10.1 Objective
The objective of this process is to review all variation requests, approve variation requests and
manage the changes in the project contract and/or the project baselines (i.e., scope baseline, cost
baseline, schedule baseline).
5.10.2 Policies
Policies for this process are:
1. All parties must notify each other about any potential problem or change which may affect
costs, schedule or performance of the works in order to address it, possibly be through a
variation.
2. All Variation requests must be made in written form by the second party including:
i. a detail scope change description that rises due to the requested change.
ii. an inclusive quotation that covers all costs that rises due to the requested change.
iii. an impacted schedule proposal that covers the requested change.
3. The variation rejection is delegated only to:
i. Cluster Capital Projects VP
ii. Scheduling & Control GM
4. The second party variation request documents should be carefully and comprehensively
assessed including its impact on all project elements such as project objectives, baselines,
risk, procurement, staffing, etc.
5. Only approved variations are to be:
i. integrated in project scope, schedule and cost baselines; then reflected in the NWC
Project Management Plan.
ii. executed by the second party.
6. All approved variations are required to be:
i. recorded in the variation register.

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ii. included in the NWC project management plan, construction management plan (in
construction projects), design & construction management plan (in design &
construction projects) and design management plan (in design projects).
iii. monitored and reported in the formal project reports.
7. The project level is the first level for negotiations which at this level shall be in forms of
second party’s documents review. Any further negotiations at this level are informal.
8. Formal negotiation with the second party is held at HQ authorized persons as follows:
Formal negotiations must be on basis of open minds, fairness and commitment to contract.
i. As litigation creates complications in project progress due to that it usually takes long
time, it should be the last resort.
9. It is not allowed to assign any additional work to a Design Consultant or Contractor after
Initial Acceptance & Handover.
10. In case of time extension due to a resumption of:
i. total suspension, the NWC Project Manager shall start the variation process for time
extension once the resumption letter is issued.
ii. partial suspension that the Design Consultant / Contractor did not request for its time
extension within 15 calendar days from the resumption letter issuance date, the NWC
Project Manager shall start the variation process after this duration.
11. The Contractor should conduct a physical survey for the quantities of the Contract BoQ
based on actual site conditions. If the survey found:
i. There is a variance between the contract BoQ and actual quantities in the project site,
the contractor should submit a revised BoQ within 90 calendar days from the site
handover.
ii. There is NO variance between the contract BOQ and actual quantities in the project
site, the contractor should formally inform NWC Project Manager by this finding within
90 calendar days from the site handover.
12. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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5.10.3 Work Flow Chart

Figure 5-17 PMM-005-INT-060 Variation Control

5.10.4 Procedures
5.10.4.1 PMM-005-INT-060-010 Initiate Project Variation Notice by NWC

1. This procedure shall be performed to initiate this process if the needed change is
requested by NWC.
2. The NWC Project Manager shall prepare the definition of the scope, schedule and cost
of the variation notice in collaboration with:
a. the Supervision Consultant (in construction projects and EPC projects).
b. the cluster technical services department (in design projects).
3. NWC Project Manager shall prepare a Variation Notice including all related data,
drawings and documentation using (PMF-005-INT-013 Variation Notice).
4. Register The Variation Notice in the (PMF-005-INT-010 Project Variation Register).
a. As a minimum, the following items shall be included in the Variation Notice:
b. Descriptive scope of the variation.
c. Method of payment (lump sum, unit prices, or cost reimbursable).
d. Schedule adjustments (if known).
e. Directions to respond to the notice.
f. Technical Documents (Drawings, Specifications, Procedures, Plans, etc.).
5. Business Unit Construction Director shall review and sign the variation notice within 2
days.
6. NWC Project Manager shall send the Approved Variation Notice to the second party
within 2 days.

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Responsible: NWC Project Manager Business Unit Construction Director

Accountable: NWC Project Manager

Cluster Contracts Administration
Consulted: Cluster Capital Projects VP
Manager
Cluster Asset Management Director
Cluster Scheduling Section Head
Cluster O&M Director
Cluster Project Control Section Head
Supervision Consultant
Cluster Technical Services Director
Cluster Contracts Administration
Informed: Design Consultant / Supervision
Manager
Consultant / Contractor
Cluster Capital Projects VP
5.10.4.2 PMM-005-INT-060-020 Respond to the Variation Notice

1. The second party shall respond to the Variation Notice initiated by NWC within 5 days
from the notice date.
2. The second party shall submit for proposed work:
a. a detailed scope proposal.
b. a schedule proposal incorporated in project schedule (to identify the schedule
impact).
c. a cost change proposal.
d. If the variation reduces the project value by more 20%, a letter stating that the
second party accepts the variation reduction amount without currently or lately
requesting any claim from NWC.
3. NWC Project Manager shall Update the (PMF-005-INT-010 Project Variation Register)
accordingly.
Design Consultant / Supervision
Responsible:
Consultant / Contractor
Accountable: NWC Project Manager
NWC Project Manager
Consulted: Supervision Consultant
Cluster Technical Services Director
Informed: NWC Project Manager Supervision Consultant

5.10.4.3 PMM-005-INT-060-030 Demand a Variation by a Second Party

This procedure shall be performed to initiate this process if the needed change is demanded
by the second party.
1. For revising the contract BoQ in construction projects:
a. the Contractor shall perform a thorough survey for all project works included
in Contract BoQ based on the actual site conditions.
If the survey found that there is a variance between the contract BoQ and actual quantities in
the project site, the contractor shall develop and submit a revised BoQ incorporating his
findings within 90 calendar days from the site handover date using the form (PMF-005-INT-048
Revised BoQ Form).
2. For any other changes, the second party shall submit a Variation Demand that at least
describes variation aspects and their effects on the project aspects. The variation
aspects include but are not limited to:
a. a detailed scope proposal.
b. a project schedule (in Primavera P6 format) that includes the proposed
schedule of the variation works.
c. a cost change proposal.

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d. any supporting drawings and specifications.

e. any supporting documents.
f. If the variation request reduces the project value by more 20%, a letter stating
that the second party accepts the variation reduction amount without currently
or lately requesting any claim from NWC.
3. NWC Project Manager shall update the (PMF-005-INT-010 Project Variation Register)
accordingly.
Design Consultant / Supervision
Responsible:
Consultant / Contractor
Accountable: NWC Project Manager
NWC Project Manager
Consulted: Supervision Consultant
Cluster Technical Services Director
Informed: NWC Project Manager Supervision Consultant

5.10.4.4 PMM-005-INT-060-040 Develop the Variation Report

The NWC Project Manager in collaboration with Supervision Consultant (in construction
projects or EPC projects) / Cluster Technical Services Director (in design projects) shall review
the Second Party “Response” / “Submitted Variation Demand” and develop a variation report
using (PMF-005-INT-027 Variation Report) within 3 days. The variation report shall:
a. ensure verification of:
i. variation scope
ii. variation cost
iii. variation schedule
iv. variation risks
v. variation arithmetic
vi. variation impact on the other aspects of the project
vii. variation value tolerances (+10%/-20%)
b. include the Supervision Consultant recommendations.
2. In case of time extension for:
a. a resumption of a total suspension.
Or
b. a resumption of a partial suspension that the Design Consultant / Contractor
did not request a time extension to it within 15 calendar days from the
resumption letter date.
The:
c. NWC Project Manager in collaboration with the Supervision Consultant (in
construction projects or EPC projects).
d. Cluster Technical Services Director (in design projects).
shall develop a variation report as described in the first step.
3. The NWC Project Manager shall update the (PMF-005-INT-010 Project Variation
Register) accordingly.
NWC Project Manager
Responsible: Supervision Consultant (for
Cluster Technical Services Director (for
construction or EPC projects)
design projects)
Accountable: NWC Project Manager

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Cluster Contracts Administration

Consulted: Business Unit Construction Director
Manager
Cluster Asset Management Director
Cluster Technical Services Director
Cluster O&M Director
Cluster Scheduling Section Head
Design Consultant / Supervision
Cluster Project Control Section Head
Consultant / Contractor
Cluster Cost Control Section Head
Informed: Cluster Capital Projects VP

5.10.4.5 PMM-005-INT-060-050 Initiate Variation Request Approval Form

1. Ensure from Cluster Finance Department that the budget is available.

2. Use (PMF-005-INT-044 Variation Request Preparation Guideline).
3. Fill and Sign the variation request approval form (PMF-005-INT-008 Variation Request
Approval Form) and send with the Variation Report to Business Unit Construction
Director.
4. Update the (PMF-005-INT-010 Project Variation Register) accordingly.
5. This procedure shall be performed within 2 days.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Business Unit Construction Director
Consulted: Cluster Finance GM
Cluster Capital Projects VP
Informed: Cluster Capital Projects VP

5.10.4.6 PMM-007-INT-060-060 Review the Variation Request at Cluster

1. Business Unit Construction Director, within 2 days, shall:

a. review the variation request documents.
b. sign the variation report.
c. raise the variation request documents to the Cluster Scheduling & Control
Director.
2. Cluster Scheduling & Control Director, within 5 days, shall:
a. Review the variation request documents.
b. Forward the Variation Request documents to the Cluster Technical Services
Director for review and feedback if the variation includes new BoQ items.
3. The Cluster Technical Services Director shall review the variation request documents
and provide feedback to the Cluster Scheduling & Control Director within 4 days (out
of the 5 days).
a. Send the variation request documents to the Cluster Capital Projects VP for
review and endorsement.
4. The Cluster Capital Projects VP, within 2 days, shall:
a. review the variation request documents.
b. approve the variation report.
c. endorse the variation request approval form.
d. send the variation request documents to the Scheduling & Control GM.
5. NWC Project Manager shall update the (PMF-005-INT-010 Project Variation Register)
accordingly.
Business Unit Construction Director Cluster Technical Services Director
Responsible:
Cluster Scheduling & Control Director Cluster Capital Projects VP

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Accountable: Cluster Capital Projects VP

Contractor Cluster Scheduling Section Head
Consulted:
Supervision Consultant Cluster Project Control Section
Design Consultant Head
NWC Project Manager Cluster Technical Support Manager
Informed: Scheduling & Control GM NWC Project Manager

5.10.4.7 PMM-005-INT-060-070 Review the Variation Request at HQ

1. The Scheduling & Control GM within 5 days shall:

a. review the variation request documents.
b. if there is new BOQ items in the variation request, shall review the variation
request document with the Technical Services Department at HQ.
c. endorse the variation request approval form.
d. send the variation request documents to the Projects & Technical Services VP.
2. the Projects & Technical Services VP, within 2 days, shall:
a. review the variation request documents.
b. endorse the variation request approval form.
c. send the variation request documents for approval to the Authorized Person
(as per the authority matrix).

Responsible: Scheduling & Control GM Projects & Technical Services VP

Accountable: Projects & Technical Services VP

NWC Project Manager
Consulted: Cluster Technical Services Director
Technical Service GM
Cluster Capital Projects VP
Cluster Scheduling & Control Director
Informed: Projects EVP

5.10.4.8 PMM-005-INT-060-080 Approve the Variation Request by The Authorized Person

1. The Authorized Person (as per authority matrix) shall, within 7 days:
a. approve the variation request.
b. send the variation request to the Capital Projects Procurement GM.
Authorized Person (As per authority
Responsible:
matrix)
Accountable: Projects EVP

Consulted: Cluster Capital Projects VP Projects & Technical Services

Scheduling & Control GM VP
Capital Projects Procurement
Informed: NWC Project Manager
GM

5.11 PMM-005-INT-070 Close Project

5.11.1 Objective
The objective of this process is to close the project on Capital Projects PMS after verifying all the
project deliverables and any other related work have been completed and accepted and all the
administrative activities that are relevant to the completion and acceptance are properly performed
such as finalizing agreements, closing claims, updating the project records, archiving the project
documents, releasing the project team members.

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5.11.2 Policies
Policies for this process are:
1. A contract cannot go closed:
i. as there is an open variation request.
ii. as there is an unsettled claim.
iii. unless the initial handover and final handover are both successfully performed.
iv. unless all the contract documentation are collected, indexed, filed and archived.
v. unless all the contracts under the projects are formally closed.
2. The project closure includes administrative closure such as:
● Assembling project records.
● Gather lessons learned.
● Archive project information for future use.
● Releasing project team members
5.11.3 Work Flow Chart
Figure 5-18 PMM-005-INT-070 Close Project Work Flow Chart

5.11.4 Procedures
5.11.4.1 PMM-005-INT-070-010 Check the Project Entitlement for Closeout

Check the project entitlement for closeout using the (PMF-005-INT-011 Project Closeout
Checklist).
1. Send the Project Closeout Checklist with acceptance to Cluster Capital Projects VP for
approval.
This procedure is to be completed within 14 days from the date of the last contract closeout in
the project.
NWC Project Manager Cluster Contracts Administration
Responsible:
Business Unit Construction Director Manager
Accountable: Cluster Capital Projects VP
Technical Services Consultant / Design
Consulted: Cluster Strategic Planning Director
Consultant / Supervision Consultant /
Cluster Capital Projects Procurement
Contractor
Manager
NWC Project Manager
Cluster Capital Projects VP
Business Unit Construction Director
Cluster Finance GM
Cluster Technical Services Director
Cluster Asset Management Director
Cluster Scheduling & Control Director
Cluster O&M Director
Cluster PMO Director

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Informed: Cluster Capital Projects VP

5.11.4.2 PMM-005-INT-070-020 Approve the Project Closeout Checklist

1. Review and approve the Project Closeout Checklist.

2. Send the approved Project Closeout Checklist to the PMO GM to close the project on Capital
Projects PMS.
This procedure is to be completed within 4 days.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager Cluster Contracts Administration
Consulted:
Business Unit Construction Director Manager
Informed: PMO GM Cluster Capital

5.11.4.3 PMM-007-INT-070-030 Develop Project Closeout Report

3. Develop project closeout report as follows:

i. For Design Contract, use (PMF-005-INT-035 Design Project Closeout Report)
at the end of Design Stage.
For Supervision Contract, use (PMF-005-INT-037 Supervision Project Closeout
Report) after completion of the Initial Acceptance Process.
For Construction Contract, use (PMF-005-INT-036 Construction Project Closeout
Report) at the end Handover & Closeout Stage.
For Technical Support Contract, use (PMF-005-INT-045 Technical Support Project
Closeout Report) at the end Handover & Closeout Stage.
4. Attach to the report the documents that are stated in the report or any other required
documents.
5. Prepare each report before the stage gate review and submit it after the “Go Decision”
of the stage gate review.
6. Send the Project Closeout Report to:
i. Business Unit Construction Director
ii. Cluster Scheduling & Control Director
iii. PMO GM
iv. Scheduling & Control GM
v. Projects Portfolio Planning Director
vi. Cluster Asset Management Director
vii. Cluster O&M Director

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Business Unit Construction Director Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Project Control Section Head Cluster Asset Management Director
Cluster Cost Control Section Head Cluster O&M Director
Cluster Risk Section Head Supervision Consultant

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Business Unit Construction Director

Informed: Scheduling & Control GM
Cluster Asset Management Director
PMO GM
Cluster O&M Director
Projects Portfolio Planning Director
Cluster Scheduling & Control Director
5.11.4.4 PMM-005-INT-070-040 Close the Project in Capital Projects PMS

1. After the “Go Decision” of the gate review of the Handover & Closeout Stage, the PMO
GM shall review the project closeout checklist and direct Project Performance
Monitoring Director to close the project in Capital Projects PMS.
2. Project Performance Monitoring Director shall close the project in Capital Projects
PMS.
Project Performance Monitoring
Responsible: PMO GM
Director
Accountable: PMO GM
Business Unit Construction Director
Consulted: Cluster Capital Projects VP
Cluster Contracts Administration
NWC Project Manager
Manager
Scheduling & Control GM NWC Project Manager
Informed:
Cluster Capital Projects VP Business Unit Construction Director

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6 Project Scope Management

The subject of this particular section of the Project Management Manual (PMM) is Project Scope Management.
The high-level process map for the Project Scope Management is illustrated below in Figure 6-1:
Figure 6-1 High-Level Process Map for Project Scope Management

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6.1 PMM-006-SCO-010 Plan Project Scope Management

6.1.1 Objective
The objective of this process is to ensure that the NWC Project Management Plan includes
● a written project scope statement.
● the project processes for how the scope will be:
○ broken down
○ controlled
○ validated
○ communicated
○ agreed by all relevant stakeholders throughout the project’s lifecycle.
6.1.2 Policies
Policies for this process are:
1. Each project must have a separate section for scope management in the NWC Project
Management Plan, created by the NWC Project Manager and the Cluster Technical
Services Director and used as the guiding document for internal and external team
throughout the project.
2. The approved NWC Project Management Plan, including the scope management plan
section, shall be included in the tender document when NWC is procuring Second Party
services and products in support of project execution.
3. Second parties shall create their own management plans (design and/or construction) for
the project as part of their contract mobilization work. These management plans must
comply with the scope management requirements defined in the NWC Project Management
Plan and shall be approved by NWC before project execution activities commence.
4. The Scope Management Plans in PMPs of NWC, Design and Construction must be kept up
to date throughout the project life cycle.
5. The diagrams below illustrates the approach to be adopted for managing the scope of a
project throughout its lifecycle.

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Figure 6-2 Scope Development Map in Design-Bid-Build PLC

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Figure 6-3 Scope Development Map in Design & Build PLC

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6.1.3 Workflow Chart

Figure 6-4 PMM-006-SCO-010 Plan Project Scope Management Workflow Chart

6.1.4 Procedures
6.1.4.1 PMM-006-SCO-010-010 Develop the Project Scope Management Plan Section of
the NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001 NWC Project Management Plan)
to develop the NWC Project Management Plan which includes a dedicated section for
Scope management. Cluster Engineering Manager and Cluster Cost Estimation Specialist
shall develop this section in PMP.
2. Update the Project Scope Section throughout the lifecycle with the approved changed using
procedure (PMM-005-INT-020-040 Update the NWC Project Management Plan).
NWC Project Manager
Responsible: Cluster Cost Estimation Specialist
Cluster Engineering Manager
Accountable: NWC Project Manager
Cluster Capital Projects VP Cluster Technical Services Director
Consulted:
Business Unit Construction Director Engineering Director
Technical Services GM
Informed: Technical Services GM
Cluster Capital Projects VP
6.1.4.2 PMM-006-SCO-010-020 Approve the Project Scope Management Plan Section of
the NWC Project Management Plan

1. Review the Scope Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project Scope Management Plan Section.

Responsible: Cluster Technical Services Director

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Accountable: Cluster Capital Projects VP

Cluster Engineering Manager Business Unit Construction Director
Consulted:
Cluster Cost Estimation Specialist Cluster Capital Projects VP
NWC Project Manager Engineering Director
Cluster Engineering Manager
Informed: Cluster Capital Projects VP
Cluster Cost Estimation Specialist
Technical Services GM
NWC Project Manager
6.1.4.3 PMM-006-SCO-010-040 Develop Project Scope Management Plan Section in the
Design PMP

1. Develop Project Scope Management Plan Section in the Design Project Management Plan
using (PMF-005-INT-002 Design Project Management Plan).
2. Ensure that the Project Scope Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Scope Management Plan Section in the
NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Scope Management Plan Section.
4. Include the Project Scope Management Plan Section in the Project Design Project
Management Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

6.1.4.4 PMM-006-SCO-010-060 Develop Project Scope Management Plan Section in the

“Construction” / “Design & Construction” PMP

1. Develop Project Scope Management Plan Section in the:

Design & Construction Project Management Plan using (PMF-005-INT-003 Design &
Construction Management Plan).
Construction Project Management Plan using (PMF-005-INT-004 Construction Project
Management Plan).
2. Ensure that the Project Scope Management Plan Section in the Project Construction
Project Management Plan is in alignment with the Project Scope Management Plan Section
in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Scope Management Plan Section.
4. Include the Project Scope Management Plan Section in the Project Construction Project
Management Plan to be approved as part of the Project Construction Project Management
Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

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6.2 PMM-006-SCO-030 Define Project Scope

6.2.1 Objective
The objective of this process is to:
● capture and review the requirements collected in the Business case to be elaborated by
adding any requirements arose to date and incorporating any requirement changes occurred.
● develop a detailed project scope statement as the basis for construction contract.
6.2.2 Policies
Policies for this process are:
1. The project requirements that set in the business case are to be considered in the design
processes.
2. During Initial Planning Stage and before conceptual design (10% design) development, the
Cluster Technical Services Director shall develop an “Owner Project Requirements” (OPR)
by:
i. Analyzing business case and obtain its requirement.
ii. Updating any requirement that encountered changes after business case approval.
iii. Identifying and adding any new requirements that rose after business case approval.
3. The requirements, that should be collected and included in the OPR then incorporated in
the design, includes but not limited to:
i. Business requirements.
ii. Solution requirements (functional and nonfunctional).
iii. Operation requirements.
iv. maintenance requirements.
v. Assets management requirements.
vi. Handing over requirements.
vii. Environmental requirements.
viii. HSSE requirements.
ix. Constructability requirements.
The collection must be directly from the relevant department.
4. The assessment of and agreeing on the project requirements and needs shall be performed
in collaboration with the End-user department (Cluster Asset Management and O&M
departments).
5. For every design project, the Design Consultant is responsible to create a project specific:
i. Owner Project Requirements (OPR).
ii. Basic Design Data (BDD).
iii. Design Basis Report (DBR).
6. The project scope must be made explicit through clearly defined asset features and
functions to be delivered by the project.
7. Additional asset features and functions are to be excluded from the project unless agreed
through a formally Approved Variation.
8. The works to be performed to execute the project products that deliver the defined asset
functions and features must be made explicit through a planned set of milestones and
deliverables, which show that the project has been broken down into relevant and
achievable work packages.
9. Review and assessment of the design packages shall be done in participation with the End-
user department (Cluster Asset Management and O&M departments).

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10. The mandatory design package reviews are at 30%, 90% and 100%. Review for 60% design
package or any other design package shall be performed if stated in the contract.
11. For Design & Build projects and during design and construction stage, it is allowed to split
the project scope into more than one unit then independently the contractor develops the
design packages for each unit.
12. The elements of each design package in each project should be defined and agreed in
collaboration with the Technical Services department at NWC HQ.
13. For every project, a design register must be developed and timely updated by the
information of every submitted design package.
14. A copy of submitted 30% design package shall be forwarded to Value Engineering
Department to conduct a Value Engineering on this package.
15. A copy of submitted design package next to 30% design package which had a VE study
should be reviewed to ensure that the Value Engineering report recommendations are
implemented.
16. All drawings should be developed in accordance with the (PMF-008-SCO-036 CAD
Standards Manual).
6.2.3 Workflow Chart
Figure 6-5 PMM-006-SCO-030 Define Project Scope Workflow Chart

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6.2.4 Procedures
6.2.4.1 PMM-006-SCO-030-010 Analyze Business Case and Update Project Requirements

1. Review and analyze business case.

2. Compile project requirements from:
a. The approved business case.
b. Performed Geotechnical Study.
c. Performed Environmental Study.
d. Key stakeholders such as:
i. Cluster Asset Management team
ii. O&M team
iii. Business Unit Construction team.
iv. Cluster HSSE Director
v. Service end users.
vi. Municipality.
vii. Related formal authorities.
viii. Any other internal and external stakeholder.
3. Develop an Owner Project Requirements (OPR). The OPR shall include at least:
a. Business requirements.
b. Project Requirements.
c. Solution requirements (functional and nonfunctional).
d. Stakeholder requirements.
e. Handing over requirements.
4. Create a Requirements Traceability Matrix using (PMF-006-SCO-037 Requirements
Traceability Matrix)
Business Unit Construction Director
Responsible:
Cluster Technical Services Director Design Consultant (if a
NWC Project Manager shared/devoted Design Consultant
assigned)
Accountable: Cluster Technical Services Director
Cluster Value Engineering Lead
Consulted: Cluster HSSE Director
Cluster Capital Projects VP
Engineering Director
Cluster Asset Management Director
VE Director
Cluster O&M Director
Cluster Asset Management Director
Informed: Engineering Director
Cluster O&M Director
6.2.4.2 PMM-006-SCO-030-020 Identify Possible Project Design Options and Create the
Design Basis Report

1. Identify the feasible possible design options.

2. During Risk Workshop No. 2, discuss and evaluate design options and associated risks.
3. Complete any design optioneering actions arising from the workshop (as recorded in the
workshop report).
4. Decide which proposed design option is the best solution for each function.
5. Create the Design Basis Report DBR to describe the functions and deliverables that shall
be designed to fulfill all requirements in the approved OPR.

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6. Update the OPR to eliminate, merge and/or optimize the requirements.

7. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
NWC Project Manager
Responsible:
Cluster Technical Services Director Design Consultant (if a
Cluster Value Engineering Lead shared/devoted Design Consultant
assigned)
Accountable: Cluster Technical Services Director
Cluster Cost Estimation Specialist Cluster Cost Estimation Specialist
Consulted:
Cluster Engineering Manager Business Unit Construction Director
Cluster Technical Support Manager Engineering Director
Cluster Risk Section Head Material Approval & Laboratories
Cluster Asset Management Director Accreditation Section Head
Cluster O&M Director VE Director
Informed: Technical Services GM Custer Supply Chain Manager

6.2.4.3 PMM-006-SCO-030-021 Develop and Approve the Conceptual Design for Design
Projects

1. For developing the scope of work of design project, develop the project Conceptual Design
Package utilizing the updated:
a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
2. Perform any required studies.
3. Develop the deliverables list of the design project that shall be included in the design project
RFP.
4. Perform internal review for the Conceptual Design Package using:
a. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
5. Develop an internal design review report.
6. Incorporate the internal review comments and develop the IFA Conceptual Design
Package.
7. Submit the internal design review report as an integral part of the IFA conceptual design
package.
8. Update the OPR to eliminate, merge and/or optimize the requirements.
9. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
10. Send the Conceptual Design Package to NWC for review and approval by the NWC Project
Manager and the Cluster Technical Services Director.
11. The Cluster Technical Services Director shall review and approve the Conceptual Design
Package.
NWC Project Manager
Responsible: Cluster Technical Services Director
Design Consultant (if a
Cluster Engineering Manager
shared/devoted Design Consultant
Cluster Cost Estimation Specialist
assigned)
Accountable: Cluster Technical Services Director

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Cluster Cost Estimation Specialist Cluster Cost Estimation Specialist

Consulted:
Cluster Engineering Manager Business Unit Construction Director
Cluster Technical Support Manager Engineering Director
Cluster Risk Section Head Material Approval & Laboratories
Cluster Asset Management Director Accreditation Section Head
Cluster O&M Director VE Director
Informed: Technical Services GM

6.2.4.4 PMM-006-SCO-030-023 Develop the 30% Design Package for EPC Projects

1. In EPC projects, Develop the project 30% Design Package utilizing the updated:
a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
2. Perform any required studies.
3. Develop the deliverables list of the design & construction project that shall be included in
the design & construction project RFP.
4. Perform internal review for the 30% Design Package using:
a. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
5. Develop an internal design review report.
6. Incorporate the internal review comments and develop the IFA 30% design package.
7. Submit the internal design review report as an integral part of the IFA 30% design package.
8. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
9. Send the 30% Design Package to NWC Project Manager for review, approval and Value
Engineering. The submittal shall include soft and hard copies as per stated in the contract.
NWC Project Manager
Responsible: Cluster Technical Services Director
Design Consultant (if a
Cluster Engineering Manager
shared/devoted Design Consultant
Cluster Cost Estimation Specialist
assigned)
Accountable: Cluster Technical Services Director
Cluster Value Engineering Lead Engineering Director
Consulted:
Cluster Risk Section Head Material Approval & Laboratories
Cluster Asset Management Director Accreditation Section Head
Cluster O&M Director VE Director
Informed: Cluster Technical Services Director

6.2.4.5 PMM-006-SCO-030-026 Approve the 30% Design Package for EPC Projects

1. In EPC projects, NWC Project Manager shall review and send the 30% design package to
Cluster Technical Services Director within 2 days.
2. Cluster Technical Services Director shall:
a. send a copy of the submitted 30% Design Package to Value Engineering
department for Value Engineering conducting and feedback.
b. after VE study conducting, receive the VE study report.
c. review the package using:
i. (PMF-006-SCO-038 Design Review Guidelines) as much as possible
beside the following attachments.
ii. (PMF-006-SCO-077 Constructability Guidelines).

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iii. (PMF-006-SCO-040 Design Package Review Release to Reviewers).

d. ensure the participation of the Cluster Asset Management and O&M departments
in the review process.
e. develop a design review report.
f. Send the Design review report and the agree Value Engineering ideas to the design
consultant for incorporation and resubmission.
3. After incorporation and resubmission, approve the 30% design package using (PMF-006-
SCO-058 30% Design Package Submittal Approval Form in EPC Project).
a. send the approved 30% design package to NWC Project Manager for inclusion in
RFP.
4. NWC Project Manager shall:
a. update the scope management section in the NWC Project Management Plan.
b. update the (PMF-006-SCO-072 Design Package Submittals Register).
c. include the approved 30% design package in RFP.
This procedure shall be performed for 60% design package and/or any other design
package if stated in the contract.

Responsible: Cluster Technical Services Director NWC Project Manager

Accountable: Cluster Capital Projects VP

Business Unit Construction Director
Consulted:
Cluster Cost Estimation Specialist Design Consultant (if a
Cluster Engineering Manager shared/devoted Design Consultant
Cluster Technical Support Manager assigned)
Cluster Value Engineering Lead Cluster Asset Management Director
VE Director Cluster O&M Director
Cluster HSSE Director
NWC Project Manager
Informed: Technical Services GM
Cluster Capital Projects VP
6.2.4.6 PMM-006-SCO-030-035 Develop the 30% Design Package in Design Projects

1. In Design projects (of Design-Bid-Build PLC), Develop 30% Design Package utilizing, at
least, the updated:
a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
2. Perform any required studies.
3. Perform internal review for the 30% design package using:
a. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
4. Develop an internal design review report.
5. Incorporate the internal review comments and develop the IFA 30% design package.
6. Submit the internal design review report as an integral part of the IFA 30% design package.
7. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
8. Send the 30% Design Package to NWC Project Manager for review, approval and Value
Engineering. The submittal shall include soft and hard copies as per stated in the contract.
The procedure shall be performed for 60% design package and/or any other design
package if stated in the contract.

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Responsible: Design Consultant

Accountable: NWC Project Manager

NWC Project Manager VE Director
Consulted:
Cluster Value Engineering Lead Design Consultant
Informed: NWC Project Manager Cluster Value Engineering Lead

6.2.4.7 PMM-006-SCO-030-040 Approve the 30% Design Package in Design Projects

1. In Design projects (of Design-Bid-Build PLC), NWC Project Manager shall review and send
the 30% design package to Cluster Technical Services Director within 2 days.
2. Cluster Technical Services Director (and the shared cluster Design Consultant if assigned)
shall:
a. send a copy of the submitted 30% Design Package to Value Engineering
department for Value Engineering conducting and feedback.
b. after VE study conducting, receive the VE study report.
c. review the package using:
i. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
ii. (PMF-006-SCO-077 Constructability Guidelines).
iii. (PMF-006-SCO-040 Design Package Review Release to Reviewers).
3. ensure the participation of the Cluster Asset Management and O&M departments in the
review process.
4. develop a design review report.
5. After the VE Department ensures and approves the implementation of Value Engineering
report recommendations using the form (PMF-007-VEN-020 Value Engineering Final
Implementation Sheet) and (PMF-007-VEN-011 Value Engineering Study Approval Form),
attach it to the develop a design review report.
6. approve the design review report using (PMF-006-SCO-056 30%, between 30% & 90%,
100% Design Package Submittal Approval Form in Design Project).
7. send the approved 30% design package to NWC Project Manager for project records.
8. NWC Project Manager shall:
a. send the design review report to Design Consultant.
b. update the (PMF-006-SCO-072 Design Package Submittals Register).
c. update the scope management section in the NWC Project Management Plan.

Responsible: Cluster Technical Services Director NWC Project Manager

Accountable: NWC Project Manager

Cluster Cost Estimation Specialist Business Unit Construction Director
Consulted:
Cluster Engineering Manager Design Consultant
Cluster Technical Support Manager Cluster Asset Management Director
Cluster Value Engineering Lead Cluster O&M Director
VE Director Cluster HSSE Director
Design Consultant
Informed: Cluster Value Engineering Lead
Cluster Technical Services Director
6.2.4.8 PMM-006-SCO-030-043 Develop the Design Submittals between 30% & 90% in
EPC Projects

1. As per schedule, develop and submit the design Submittals between 30% & 90% in
batches.

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2. In development utilize, at least, the updated:

a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
d. 30% design package.
3. Perform any required studies.
4. Perform internal review for the design submitted design Submittals between 30% & 90%
using:
a. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
5. Develop an internal design review report.
6. Incorporate the internal review comments and develop the IFA Submittals between 30%
& 90%.
7. Submit the internal design review report as an integral part of the IFA Submittals between
30% & 90%.
8. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
9. Send the Submittals between 30% & 90% to NWC Project Manager for review and
approval. The submittal shall include soft and hard copies as per stated in the contract.

Responsible: Contractor

Accountable: NWC Project Manager

NWC Project Manager VE Director
Consulted:
Cluster Value Engineering Lead Design Consultant
Design Consultant
Informed: Cluster Value Engineering Lead
NWC Project Manager
6.2.4.9 PMM-006-SCO-030-046 Approve the Design Submittals between 30% & 90% in
EPC Projects

1. NWC Project Manager shall review and send the received design Submittals between 30%
& 90% to the supervision consultant within 2 days.
2. Supervision Consultant shall:
a. review the package using:
i. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
ii. (PMF-006-SCO-077 Constructability Guidelines).
iii. (PMF-006-SCO-040 Design Package Review Release to Reviewers).
b. ensure the participation of the Cluster Asset Management and O&M departments
in the review process.
c. develop a design review report.
d. endorse the package using (PMF-008-SCO-059 Between 30% & 90%, 100%
Design Package Submittal Approval Form in EPC Project).
3. NWC Project Manager shall:
a. approve the design Submittals between 30% & 90% that approved by Supervision
Consultant within 2 days.
b. send the design review report to the contractor.
c. update the (PMF-006-SCO-072 Design Package Submittals Register).
d. update the scope management section in the NWC Project Management Plan.

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Responsible: Supervision Consultant NWC Project Manager

Accountable: NWC Project Manager

Cluster Technical Services Director
Consulted: Contractor
Cluster Value Engineering Lead
Cluster Asset Management Director
VE Director
Cluster O&M Director
Design Consultant
Cluster HSSE Director
Business Unit Construction Director
Informed: Design Consultant Cluster Technical Services Director

6.2.4.10 PMM-006-SCO-030-048 Develop the 90% Design Package

1. Develop 90% design package utilizing the approved 30% design package (or 60% design
package if it is contractually stated) and the updated:
a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
2. Perform any required studies.
3. Develop the deliverables list of the construction project that shall be included in the
construction project RFP.
4. Perform internal review for the 90% design package using:
a. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
5. Develop an internal design review report.
6. Incorporate the internal review comments and develop the IFA 90% design package.
7. Submit the internal design review report as an integral part of the IFA 90% design package.
8. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
9. Send the 90% Design Package to NWC Project Manager for review and approval. The
submittal shall include soft and hard copies as per stated in the contract.
Design Consultant (in Design projects)
Responsible:
/ Contractor (in EPC projects)
Accountable: NWC Project Manager
NWC Project Manager VE Director
Consulted:
Cluster Value Engineering Lead Design Consultant
Design Consultant
Informed: Cluster Value Engineering Lead
NWC Project Manager
6.2.4.11 PMM-006-SCO-030-050 Approve the 90% Design Package

1. NWC Project Manager shall review and send the 90% Design Package for review and
endorsement to:
a. Supervision Consultant (in EPC projects).
b. Cluster Technical Services Director (in Design projects).
2. If the 90% design review is the next design review to the 30% design review that received
VE report, Supervision Consultant / Cluster Technical Services Director shall forward a
copy of the submitted design package to VE Department to ensure the implementation of
Value Engineering report recommendations.
The:
a. Supervision Consultant (in EPC projects)

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OR
b. Cluster Technical Services Director (and the shared cluster Design Consultant if
assigned) (in Design projects)
Shall:
c. review the package using:
i. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
ii. (PMF-006-SCO-077 Constructability Guidelines).
iii. (PMF-006-SCO-040 Design Package Review Release to Reviewers).
d. ensure the participation of the Cluster Asset Management and O&M departments
in the review process.
3. After the VE Department ensures and approves the implementation of Value Engineering
report recommendations using the form (PMF-007-VEN-020 Value Engineering Final
Implementation Sheet) and (PMF-007-VEN-011 Value Engineering Study Approval Form),
attach it to the a design review report.
4. For EPC projects:
a. The Supervision Consultant shall:
i. endorse the submitted 90% Design Package using (PMF-006-SCO-060
90% Design Package Submittal Approval Form in EPC Project).
ii. develop a design review report.
b. The NWC Project Manager within 2 days shall:
i. endorse the 90% design package
ii. send the 90% design package to the Cluster Technical Services Director.
5. For Design projects:
a. the Cluster Technical Services Director shall:
i. develop a design review report.
ii. collect the endorsement of NWC Project Manager using (PMF-006-SCO-
057 90% Design Package Submittal Approval Form in Design Project).
iii. endorse the submitted 90% Design Package.
6. Cluster Technical Services Director shall forward the 90% design package to Technical
Services GM for final approval within 2 days.
7. Technical Services GM, within 5 days, shall:
a. consult the VE Director, Engineering Director, Technical Support Director and
W&WW Technologies Director.
b. give final approval / reject the 90% Design Package.
8. After final approval, NWC Project Manager shall:
a. send the design review report to the design consultant / contractor.
b. update the (PMF-006-SCO-072 Design Package Submittals Register).
c. update the scope management section in the NWC Project Management Plan.
d. For Design projects, include the approved 90% design package in RFP.
Cluster Technical Services Director (in
Responsible:
Design projects) / Supervision
Technical Services GM
Consultant (in EPC projects)
NWC Project Manager
Accountable: NWC Project Manager

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Cluster Cost Estimation Specialist Business Unit Construction Director

Consulted:
Cluster Engineering Manager Design Consultant / Contractor
Cluster Technical Support Manager Cluster Asset Management Director
Cluster Value Engineering Lead Cluster O&M Director
VE Director Cluster HSSE Director
Cluster Technical Services Director (in
Informed: Design Consultant
EPC projects)
6.2.4.12 PMM-006-SCO-030-065 Develop the 100% Design Package

1. Collect the approvals from the relevant stakeholders on the 90% design package (such as,
Civil defense, Municipalities, High Commission of Industrial Security, etc.).
2. Retain records of stakeholder comments and acceptance/rejection records, for uploading
to the project folder in the Capital Projects PMS.
3. If the revision is rejected and cannot be resolved with the stakeholder(s) who raised the
objection, add the issue to the project issue log (PMF-013-RIS-017 Project Issue Log) and
escalate the issue to the NWC Project Manager for resolution or further escalation.
4. Develop 100% design package utilizing the approved 90% design package and, at least,
the updated:
a. Owner Project Requirements (OPR).
b. Basic Design Data (BDD).
c. Design Basis Report (DBR).
5. Perform any required studies.
6. Perform internal review for the 100% design package using:
a. (PMF-068-SCO-038 Design Review Guidelines) as much as possible.
b. (PMF-006-SCO-077 Constructability Guidelines).
7. Develop an internal design review report.
8. Incorporate the internal review comments and develop the IFA 100% design package.
9. Submit the internal design review report as an integral part of the IFA 100% design
package.
10. Update the (PMF-006-SCO-037 Requirements Traceability Matrix).
11. Send the 100% Design Package to NWC Project Manager for review and approval. The
submittal shall include soft and hard copies as per stated in the contract.
Design Consultant (in Design projects)
Responsible:
/ Contractor (in EPC projects)
Accountable: NWC Project Manager
NWC Project Manager VE Director
Consulted:
Cluster Value Engineering Lead Design Consultant
Design Consultant
Informed: Cluster Value Engineering Lead
NWC Project Manager
6.2.4.13 PMM-008-SCO-030-070 Approve the 100% Design Package

1. The NWC Project Manager shall:

a. review and send the 100% Design Package, for review and approval, to:
i. Supervision Consultant (in EPC projects).
ii. Cluster Technical Services Director (in Design projects).
b. ensure the participation of the Cluster Asset Management and O&M departments
in the review process.
The:

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Supervision Consultant (in EPC projects)

OR
Cluster Technical Services Director (and the shared cluster Design Consultant if
assigned) (in Design projects)
shall do the following:
c. review the package using:
i. (PMF-006-SCO-038 Design Review Guidelines) as much as possible.
ii. (PMF-006-SCO-077 Constructability Guidelines).
d. ensure that, the Design Consultant has collected the approvals of relevant
stakeholders as shown in (PMF-012-COM-060 Stakeholders Register).
e. distribute the 100% design package to the relevant reviewers using (PMF-006-
SCO-040 Design Package Review Release to Reviewers).
For Design projects, the Cluster Technical Services Director (in Design projects) shall:
a. approve/reject the submitted 100% Design Package using (PMF-006-SCO-056
30%, between 30% & 90%, 100% Design Package Submittal Approval Form in
Design Project).
i. develop a design review report.
ii. send the 100% design package to the NWC Project Manager.
For EPC projects:, the Supervision Consultant shall:
a. endorse the submitted 100% Design Package using (PMF-006-SCO-059 Between
30% & 90%, 100% Design Package Submittal Approval Form in EPC Project).
b. develop a design review report.
c. send the 100% design package to the NWC Project Manager.
2. The NWC Project Manager shall approve the 100% design package within 2 days using
(PMF-006-SCO-059 Between 30% & 90%, 100% Design Package Submittal Approval Form
in EPC Project).
3. After approval, NWC Project Manager shall:
a. send the design review report to the design consultant / contractor.
b. update the (PMF-006-SCO-072 Design Package Submittals Register).
c. update the scope management section in the NWC Project Management Plan.
Cluster Technical Services Director (in
Responsible:
Design projects) / Supervision NWC Project Manager
Consultant (in EPC projects)
Accountable: NWC Project Manager
Cluster Value Engineering Lead
Consulted: Cluster Asset Management Director
VE Director
Cluster O&M Director
Business Unit Construction Director
Cluster HSSE Director
Design Consultant / Contractor
Cluster Technical Services Director (in
Informed:
EPC projects) Scheduling & Control GM
Business Unit Construction Director Cluster Asset Management Director
Technical Services GM Cluster O&M Director
PMO GM
6.3 PMM-006-SCO-040 Create the Work Breakdown Structure (WBS)
6.3.1 Objective
The objective of this process is to subdivide the major project deliverables and project work into
smaller, more manageable work packages.

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6.3.2 Policies
Policies for this process are:
1. The project WBS shall be:
i. created and managed by the “Primavera P6” application.
ii. uploaded to the NWC P6 EPPM Platform.
2. The project WBS shall be appended to the NWC Project Management Plan and thereby
approved by all relevant stakeholders.
3. All changes to be made to WBS must be processed through the (PMM-005-INT-060
Variation Control) process.
6.3.3 Workflow Chart
Figure 6-6 PMM-006-SCO-040 Create the Work Breakdown Structure (WBS) Workflow Chart

6.3.4 Procedures
6.3.4.1 PMM-006-SCO-040-010 Create Work Breakdown Structure

1. Develop the project Work Breakdown Structure (WBS) (in Primavera P6 format) based on
the approved the scope definition, milestones and deliverables using (PMF-008-SCH-007
Sch. Manual App1 WBS Code and Structure)
2. Submit the project WBS to the NWC Project Manager for review and approval with the
Supervision Consultant.
The WBS shall be uploaded to the NWC P6 EPPM Platform as part of the level 3 schedule
when uploaded for approval.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant

NWC Project Manager Cluster Scheduling Section Head
Informed:
Supervision Consultant Scheduling Lead
6.3.4.2 PMM-006-SCO-040-020 Review and Accept the WBS

1. Supervision Consultant shall review and accept/reject the submitted project Work
Breakdown Structure.
2. Cluster Scheduling Section Head shall upload the project Work Breakdown Structure to
the NWC P6 EPPM Platform.
3. Update the scope section in NWC Project Management Plan by the created WBS.

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Responsible: Supervision Consultant

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Contractor
Cluster Scheduling & Control Director
Informed: NWC Project Manager Contractor

6.4 PMM-006-SCO-050 Control Scope

6.4.1 Objective
The objective of this process is to control changes to project scope, so that ad hoc changes are
prevented.
6.4.2 Policies
Policies for this process are:
1. Changes of the scope definition must be requested formally, accepted by all relevant
stakeholders, and then submitted through (PMM-005-INT-060 Variation Control) process
for business authorization to proceed.
2. Ad hoc scope changes (scope creep) are not allowed and must be prevented.
3. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
6.4.3 Workflow Chart
Figure 6-7 PMM-006-SCO-050 Control Scope Workflow Chart

6.4.4 Procedures
6.4.4.1 PMM-006-SCO-050-010 Draft a Scope Change

1. Make a clear, written description of the scope change considering the scope statement in
the current NWC Project Management Plan and highlight proposed changes.
2. The following stakeholders are authorized to raise a Variation Request:
a. Cluster Asset Management Director
b. Cluster O&M Director

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c. Business Unit Construction Director

d. Cluster Technical Services Director
e. NWC Project Manager
f. Design Consultant
g. Supervision Consultant
h. Contractor

Responsible: Relevant Stakeholder

Accountable: NWC Project Manager

Consulted: Cluster Technical Services Director

Cluster Asset Management Director Projects Portfolio Planning Director
Informed:
Cluster O&M Director Cluster Document Control Section
Cluster Technical Services Director Head
6.4.4.2 PMM-006-SCO-050-020 Perform Engineering Team Peer Review for the Draft
Scope Change

1. Distribute the new proposed scope statement based on the proposed changes for initial
review and comment to the Engineering Team.
2. Engineering team shall review and develop comments.
3. Retain a record of all design team comments.
Supervision Consultant (in
Responsible: Engineering Manager (at initial
Construction / “Design & Build”
planning stage)
projects)
Accountable: NWC Project Manager
Cluster Asset Management Director
Consulted: Design Consultant
Cluster O&M Director
Supervision Consultant
Business Unit Construction Director
Contractor
NWC Project Manager
Informed: NWC Project Manager

6.4.4.3 PMM-006-SCO-050-030 Perform Impact Analysis for the Draft Scope Change

1. Analyze the impact of the scope change.

2. Perform Impact Analysis for the scope change.
3. Retain all records of the impact analysis by a formal report.
NWC Project Manager Engineering Manager (at initial
Responsible:
Supervision Consultant (in planning stage)
Construction / “Design & Build” Technical Support Manger (at initial
projects) planning stage)
Accountable: NWC Project Manager
Cluster Technical Services Director Cluster Risk Section Head
Consulted:
Cluster Value Engineering Lead Cluster O&M Director
Cluster Asset Management Director Cluster Contracts Administration
Cluster Scheduling Section Head Manager
Informed: Cluster Technical Services Director

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6.4.4.4 PMM-006-SCO-050-040 Finalize Updates of the Draft Scope Change

1. Consolidate the proposed changes to the scope definition considering the documented
impact analysis.
2. Collate the change supporting documents, with the revised scope definition and impact
analysis records.
NWC Project Manager Supervision Consultant (in
Responsible:
Cluster Engineering Manager (at initial Construction / “Design & Build”
planning stage) projects)
Accountable: Business Unit Construction Director
Cluster Contracts Administration
Consulted: Cluster Technical Services Director
Manager
Cluster Contracts Administration
Informed:
Manager
6.4.4.5 PMM-006-SCO-050-050 Process the Change Through the Variation Control
Process

1. Complete the process as per (PMM-005-INT-060 Variation Control) process.

2. Up`date the Variation Register accordingly (PMF-005-INT-010 Project Variation Register).

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Cluster Contracts Administration
Consulted:
Manager Supervision Consultant
Cluster Project Control Section Head
Informed: Supervision Consultant

6.4.4.6 PMM-006-SCO-050-060 Update the NWC Project Management Plan as Per

Approved Variation

1. Update the NWC Project Management Plan as per Approved Variation.

2. Update records and project documents for all affected items and upload to the Capital
Projects PMS.
3. For an approved variation, ensure that a new baseline is created, approved and uploaded
to the NWC P6 EPPM Platform.
4. Ensure implementing the changes in the approved variation in all PMPs.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Cluster Contracts Administration
Consulted: Supervision Consultant
Manager
Cluster Contracts Administration
Informed: Cluster Scheduling & Control Director
Manager

6.5 PMM-006-SCO-055 Testing & Commissioning

6.5.1 Objective
The objective of this process is to identify the requirements and procedures for the Testing &
Commissioning (T&C) of installed systems/equipment/interfaces that Contractor creates. It is also to
identify the responsibilities and outputs of each party involved in the T&C process. It is also to identify
the holding points to be focused during the T&C Process from initial planning stage to handover &
close out stage.

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6.5.2 Policies
Policies for this process are:
1. The project scope section in Construction PMP must include a detailed T&C plan that
specifically and clearly identify the systems/equipment/interfaces (T&C Items) that must be
tested and commissioned.
2. All project systems/equipment/interfaces that included in the T&C Deliverable List shall be
tested and commissioned unless the list is changed after formal approval from both the 3.
NWC Project Manager and Supervision Consultant Project Manager.
3. Testing & Commission must be managed by a T&C Working Group that formed by Cluster
Capital Projects VP. The T&C Working Group must include:
i. NWC Project Manager.
ii. Business Unit Safety Section Head.
iii. Representatives from Cluster Asset Management department.
iv. Representatives from Cluster O&M department.
v. Representatives from the Supervision Consultant.
vi. Representatives from the Contractor.
vii. Representative from the Cluster T&C department.
viii. Representative from the Cluster Technical Services department.
ix. Representative from the Cluster HSSE department.
4. T&C department at HQ shall decide on participation of the following parties in the T&C
Working Group:
i. Representative from T&C department at HQ for:
a. All treatment plants.
b. All storage tanks.
c. All presurized networks.
d. All other projects of value ≥ SAR 100M.
ii. T&C Consultant (if assigned).
iii. Any Subject Matter Experts SME from inside or outside NWC (if required).
5. Testing & Commission in every project must have a project specific:
i. Testing & Commission Plan (T&C Plan)
ii. Testing & Commission Method Statement
6. The testing & commission results must be documented in a report by the T&C Working
Group and must be approved by Cluster Capital Projects VP.
7. Testing & Commissioning process can be performed on all project
systems/equipment/interfaces or part of them. If it is performed on part of a project
systems/equipment/interfaces, it must be re-performed when the complete systems is
tested.
8. Testing & Commissioning activities shall be described in Level 2 schedule (at tendering
stage) and Level 3 Construction Schedule.
9. The attachment (PMF-006-SCO-041 Project Testing & Commissioning Guideline) is the
reference for every procedure in this process.

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6.5.3 Workflow Chart

Figure 6-8 PMM-006-SCO-055 Testing & Commissioning Workflow Chart

6.5.4 Procedures
6.5.4.1 PMM-006-SCO-055-010 Pre-design T&C Activities

1. Ensure the followings at the initial planning stage:

a. Development of preliminary OPR document.
b. Establishment of project regulatory requirements.
c. Establishment of codes to be used to design, execute and commission the project
scope.
d. Identification of the cost of T&C works.
e. Integration of the cost into the project budget.
f. Inclusion of the T&C responsibilities in the responsibilities of NWC management
team, Design Consultant, T&C Consultant and Contractor.
2. Develop the Preliminary T&C Scope.
3. Develop the Preliminary T&C Plan.
4. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
Initial Planning Stage.
NWC Project Manager
Responsible: Testing & Commissioning Consultant
Cluster Testing & Commissioning
Cluster Technical Services Director
Section Head
Accountable: NWC Project Manager
Testing & Commissioning Director Cluster Cost Estimation Specialist
Consulted:
Cluster Strategic Planning Manager Business Unit Construction Director
Cluster Technical Services Director NWC Project Manager
Informed: NWC Project Manager Cluster Technical Services Director

6.5.4.2 PMM-006-SCO-055-020 T&C Activities During Design

1. Participate in reviewing and approving the following (as applicable in the project) which
prepared by the design consultant and sequentially submitted for approval.
a. Owner Project Requirements (OPR).

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b. Basic Design Data (BDD).

c. Design Basis Report (DBR).
d. 10% design package.
e. 30% design package.
f. 60% design package.
g. 90% design package.
h. 100% design package.
2. When Design Consultant inquires about any T&C aspect in the above mentioned
submittals, promptly clarify the inquiry.
3. Review and approve the followings which prepared and submitted along with 90% design
package:
a. Preliminary T&C Method Statement (with checklists)
b. T&C Items list
c. Updated Preliminary T&C Plan
4. Identify if there is a need for any addition T&C SME consultation during T&C Method
Statement development.
5. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
Design Stage.
Cluster Testing & Commissioning
Responsible: Testing & Commissioning Consultant
Section Head
NWC Project Manager
Cluster Technical Services Director
Accountable: Cluster Technical Services Director
Cluster Technical Services Director
Consulted: NWC Project Manager
Business Unit Construction Director
Informed: NWC Project Manager Cluster Technical Services Director

6.5.4.3 PMM-006-SCO-055-030 T&C Activities During Tendering for Construction / Design

& Construction stage

1. Ensure the inclusion of the T&C documents in project RFP:

a. Preliminary T&C Method Statement.
b. T&C Items list.
c. Preliminary T&C Plan.
2. Ensure the inclusion of a criteria to assess bidders’ capability to perform T&C process and
procedures in project RFP.
3. During Technical Evaluation process, with T&C Consultant (if assigned):
a. Respond to any clarification made by competing Contractors regarding T&C
aspects.
b. Assess capabilities of the bidding Contractors with regards to the T&C Works (by
T&C assessing criteria) during the technical assessment process.
4. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
Tender for Design Stage.
Cluster Testing & Commissioning
Responsible:
Section Head Testing & Commissioning Consultant
Testing & Commissioning Director
Accountable: Testing & Commissioning Director
Technical Evaluation Committee
Consulted: Cluster Technical Services Director
Design Consultant

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Informed: Technical Evaluation Committee

6.5.4.4 PMM-006-SCO-055-040 T&C Preparatory Works and Preparation of T&C

Documents

1. Continuously update the T&C Plan and T&C Method Statement during construction stage,
for instance, incorporating the implemented approved variations Accordingly.
2. Complete preparatory works for T&C process. Preparatory work shall include the following:
a. Signing-off of all Electro-mechanical installation.
b. Labelling and tagging for all electro-mechanical installation.
c. Labelling and tagging for all flow types and direction.
d. Preparing Lock-out and tag-out and any other HSE procedures and measures.
e. Preparing all required calculations that proves the resiliency and correctness of the
installation that submitted and approved by the Supervision Consultant and NWC
Project Manager.
3. Prepare all documents and studies that are required for completion of T&C process. These
documents shall be attached to / included in the T&C Plan and T&C Method Statement.
These documents include but not limited:
a. Control System Data Point Schedule, Sequence of Operation, Process and
Instrumentation Diagram (PID), Control Block diagram and Control Set Points.
b. Evacuation Plan.
c. As-Built Drawings.
d. Manufactures / Vendor contact list.
e. O&M manuals
f. Technical Data Sheets, Catalogs , etc.
g. Warranty certificates of equipment.
h. Calibration certifications.
i. GIS information (If required).
j. HAZOP and CHAZOP studies.
k. Short circuit analysis (a power study).
l. Coordination of Over Current Protective Devices (a power study).
m. Arc Flash Study (a power study).
n. Pre-startup Safety Review (PSSR).
4. Update the OPR and RTM during the course of construction stage up to Handover and
Closeout stage to incorporate T&C requirements that identified during the:
a. shop drawing development.
b. equipment selection.
c. development of the Systems Sequence of Operation.
d. approved variations implementation.
5. At the end of construction stage, assure availability at site of all resources that stated in the
T&C Plan and T&C Method Statement to perform the T&C activities such as potable water,
drainage system, needed chemicals and permanent/stable power.
6. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
Construction Stage.

Responsible: Contractor

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Accountable: NWC Project Manager

Supervision Consultant
Consulted:
Testing & Commissioning Consultant Testing & Commissioning Director
Cluster Testing & Commissioning NWC Project Manager
Section Head
Supervision Consultant
Informed: NWC Project Manager
Testing & Commissioning Consultant
6.5.4.5 PMM-006-SCO-055-050 Supervision and Approval of Preparatory Works and
Documentations

1. Ensure the completion of preparatory works for T&C process by the Contractor.
Preparatory works are identified in procedure (PMM-006-SCO-055-040 T&C Preparatory
Works and Preparation of T&C Documentations).
2. Ensure that, for all mechanical and electrical equipment, the following documentation which
required for T&C process have been submitted and approved.
a. Factory Acceptance Testing (FAT) Certificates.
b. Type Testing Certificate (TTC).
c. Site Acceptance Test (SAT).
3. Review and approve all documentations and studies that are required for completion of
T&C process are available. These documentations are identified in procedure (PMM-006-
SCO-055-040 T&C Preparatory Works and Preparation of T&C Documentations).
4. Monitor, review and approve the updates that the Contractor have made to the OPR, RTM
and T&C Plan to incorporate T&C requirements that identified during activities mentioned
in procedure (PMM-006-SCO-055-040 T&C Preparatory Works and Preparation of T&C
Documentations).
5. At the end of construction stage, ensure the availability and readiness of all resources that
stated in the T&C Plan and T&C Method Statement to perform the T&C activities such as
potable water, drainage system, needed chemicals and permanent/stable power. Report
any resource lack.

Responsible: Supervision Consultant NWC Project Manager

Accountable: NWC Project Manager

Contractor
Consulted:
Testing & Commissioning Consultant Testing & Commissioning Director
Cluster Testing & Commissioning NWC Project Manager
Section Head
Contractor
Informed: NWC Project Manager
Testing & Commissioning Consultant
6.5.4.6 PMM-006-SCO-055-060 Ensuring the Pass of Construction Tests

1. Ensure that Contractor has accepted WIRs for all construction tests (site acceptance tests
and site integration tests) for mechanical and electrical installations prior to conducting the
T&C Works by verifying documentations that proves the conducting and pass. Every unit
should have a separate accepted report using (PMF-008-SCO-043 Unit Test Report).
Attach to the report the documents that stated in the report or any other required documents
as applicable.
2. Construction tests shall include the following:
a. Mechanical installation pressure tests.
b. Mechanical installation gravity or air tests.
c. Plumbing flow tests.
d. Leakage testing for HVAC ducts.

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e. Complete mechanical system installation tests.

f. Electrical wiring continuity and insulation resistance tests.
g. Electrical cold tests.
h. Earth Grounding tests.
i. All test for control wiring such as point-to-point testing and loop tests.

Responsible: Supervision Consultant NWC Project Manager

Accountable: NWC Project Manager

Contractor
Consulted:
Testing & Commissioning Consultant Testing & Commissioning Director
Cluster Testing & Commissioning NWC Project Manager
Section Head
Contractor
Informed: NWC Project Manager
Testing & Commissioning Consultant
6.5.4.7 PMM-006-SCO-055-070 Finalize and Submit T&C Plan and T&C Method Statement

1. Develop finalized version of T&C Plan and T&C Method Statement for project
systems/equipment/interfaces.
2. At 80% completion of works to be tested and commissioned, submit these two submittals
to NWC, through the supervision consultant, for review and approval.
3. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
T&C Stage.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted:
Testing & Commissioning Consultant Testing & Commissioning Director
Cluster Testing & Commissioning NWC Project Manager
Section Head
Supervision Consultant
Informed: NWC Project Manager
Testing & Commissioning Consultant
6.5.4.8 PMM-006-SCO-055-080 Approve T&C Plan and T&C Method Statement

1. Supervision Consultant shall, within 5 days:

a. review and endorse the T&C Plan and T&C Method Statement for project
systems/equipment/interfaces that prepared and submitted by Contractor.
b. present the review results to the NWC Project Manager and incorporate his
comments.
c. transmit the two submittals to NWC Project Manager for further actions.
2. NWC Project Manager shall transmit the two submittals to T&C Consultant for review and
endorsement in 1 day.
3. T&C Consultant shall, within 3 days, review and endorse the two submittals then transmit
them back to NWC Project Manager for further actions.
4. NWC Project Manager shall, within 2 days, review and endorse the two submittals then :
a. for projects under the following categories:
i. All treatment plants.
ii. All storage tanks.
iii. All pressurized networks.

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iv. All other projects of value ≥ SAR 100M.

send the two documents to the T&C Director who shall, within 3 days, review and
approve the two submittals then transmit them back to NWC Project Manager to send
them to Contractor.
b. for projects not under the categories above, send the two documents to the Cluster
T&C Section Head who shall, within 3 days, review and approve the two submittals
then transmit them back to NWC Project Manager to send them to Contractor.
5. During every review, ensure the conformity of these two submittals to the adopted codes,
standards, and best construction practices.
6. Use (PMF-006-SCO-041 Project Testing & Commissioning Guideline) as a guideline during
T&C Stage.
Supervision Consultant NWC Project Manager
Responsible:
Testing & Commissioning Consultant Testing & Commissioning Director
Accountable: NWC Project Manager
Cluster Testing & Commissioning
Consulted: Contractor
Section Head
Cluster Technical Services Director
Business Unit Construction Director
Informed: Contractor Cluster Capital Projects VP

6.5.4.9 PMM-006-SCO-055-085 Pre-commissioning Activities at Testing & Commissioning

Stage

1. Provide and install field devices that used in T&C activities according to T&C schedule (part
of the T&C plan).
2. Confirm that certification shall be based on the date of completion of installation (not on
the date of the last test).
3. Perform Pre-startup Safety Review (PSSR).
4. Perform, with equipment suppliers if required, site Pre-Commissioning Tests (trial runs) to
test:
a. Equipment Pre-Start Up or Pre-energization Testing.
b. Functional or Operational testing.
c. Site Equipment Performance Testing.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted:
Testing & Commissioning Consultant Testing & Commissioning Director
Cluster Testing & Commissioning NWC Project Manager
Section Head
Supervision Consultant
Informed: NWC Project Manager
Testing & Commissioning Consultant
6.5.4.10 PMM-006-SCO-055-090 Request for Testing & Commissioning Project Works

1. Submit a written request for Testing & Commissioning project

systems/equipment/interfaces using (PMF-006-SCO-042 Contractor Commissioning
Request).
2. The request shall be attached with evidence for:
a. T&C Plan approval.
b. T&C Method Statement approval.
c. Quality Control acceptance.

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d. Construction tests for mechanical and electrical installation acceptance.

e. Completion of pre-commissioning activities.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted:
Testing & Commissioning Consultant NWC Project Manager
Cluster Testing & Commissioning Cluster Asset Management Director
Section Head Cluster O&M Director
Testing & Commissioning Director
Informed: Cluster Capital Projects VP

6.5.4.11 PMM-006-SCO-055-100 Form T&C Working Group

1. After receiving the request, NWC Project Manager and Supervision Consultant shall verify
the submitted request and its attachments within 2 days.
2. If NWC Project Manager accepts the request, he shall:
a. endorse the request.
b. in consultation with Cluster Testing & Commissioning Section Head, collect
nominees for T&C Working Group. The T&C Working Group must include:
i. NWC Project Manager.
ii. Representatives from Cluster Asset Management department.
iii. Representatives from Cluster O&M department.
iv. Representatives from supervision consultant.
v. Representatives from contractor.
vi. Representative from cluster technical services department.
vii. Representative from projects safety section at business unit.
viii. Representative from cluster T&C department.
ix. Representative from the cluster HSSE department.
x. Representative from HQ T&C department (for all Treatment Plants,
Storage Tanks and all projects above SAR 100M).
xi. T&C Consultant (if assigned).
xii. Any Subject Matter Experts SME from inside or outside NWC (if required).
3. create a working group forming request using (PMF-006-SCO-065 Testing &
Commissioning Working Group Forming Request) and raise it to Cluster Capital Projects
VP.
These three actions to be performed within 3 days.
4. Cluster Capital Projects VP shall approve the request and forming decision and transmit
them to NWC Project Manager for further actions within 2 days.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Testing & Commissioning
Consulted: Supervision Consultant
Section Head
Cluster Capital Projects VP
Testing & Commissioning Consultant

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Cluster Asset Management Director Testing & Commissioning Director

Informed:
Cluster O&M Director Contractor
NWC Project Manager Supervision Consultant
Cluster Technical Services Director Testing & Commissioning Consultant
Cluster Testing & Commissioning External Subject Matter Expert (if
Section Head needed)
6.5.4.12 PMM-006-SCO-055-120 Perform Commissioning Activities

1. Contractor, in coordination with T&C Working Group (and equipment suppliers if required),
shall conduct Commissioning Tests after energizing the electrical system.
2. Commissioning Tests shall include tests as per specified in the T&C Plan and T&C Method
Statement (with its checklist).
3. Firstly, the Contractor shall conduct all required tests for systems/equipment/interfaces as
stand-alone as applicable.
4. Secondly, once all stand-alone tests are completed, Contractor, in coordination with T&C
Working Group, shall conduct Commissioning Integration Tests (and any required
integration works) for:
a. Fire/Life Safety Systems
b. Low Current Systems
c. Mechanical systems
d. Electro-Mechanical Systems
e. Control System
5. Thirdly, upon the completion of Commissioning Integration Tests, Contractor, in
coordination with T&C Working Group, shall conduct “Emergency Situation Test” to
simulate an emergency situation during the normal and peak operation of the facility.
a. The test shall require transfer of the electrical power from the normal to essential
using the emergency power system when all facility systems are functioning. The
test shall also include occupant evacuation process and recording the evacuation
time.
b. The Emergency Situation Test shall be repeated until all facility systems are proven
and working as a single system for the purpose of functionality and safety.
6. Fourthly, upon completion of commissioning Integration Test and Emergency Test,
Contractor, in coordination with T&C Working Group (and equipment suppliers if required),
shall conduct “Reliability Test” to ensure that all systems are integrated and reliable to be
operated automatically (if included in SOW) for one month (or an agreed period by T&C
Working Group) with continuous run without interruption.
7. If required, the testing shall be witnessed and accepted by any authority such as Civil
Defense, Authority Having Jurisdiction, etc.
Testing & Commissioning Working
Responsible: Contractor
Group
Accountable: NWC Project Manager
Cluster Testing & Commissioning
Consulted: Testing & Commissioning Director
Section Head
Cluster Testing & Commissioning
Informed: Cluster Capital Projects VP
Section Head
NWC Project Manager
Testing & Commissioning Director
6.5.4.13 PMM-006-SCO-055-130 Develop T&C Report

1. If the T&C Working Group found the T&C is acceptable, using (PMF-008-SCO-044 Testing
& Commissioning Report), T&C Working Group shall prepare one of the followings stating
the acceptance:
a. T&C Report.

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OR
b. T&C Report with snag list.
2. T&C Working Group shall attach to the report the documents that stated in the report or
any other required documents as applicable.
3. If the T&C Working Group found the T&C is not acceptable, T&C Working Group shall
prepare and sign a T&C report with a rejection decision using the form (PMF-006-SCO-
044 Testing & Commissioning Report) and attaching to the report the documents that stated
in the report or any other required documents as applicable.
Testing & Commissioning Working
Responsible:
Group
Accountable: NWC Project Manager
Cluster Testing & Commissioning
Consulted: Contractor
Section Head
NWC Project Manager Cluster O&M Director
Informed:
Cluster Asset Management Director Contractor
6.5.4.14 PMM-006-SCO-055-133 Approve T&C Report

1. If the T&C Working Group found the T&C is acceptable, the Cluster Capital Projects VP
shall approve, within 3 day, the T&C report with:
a. acceptance
b. acceptance with snag list attaching the snag list (PMF-006-SCO-008 Snag List
Template).
2. If the T&C Working Group found the T&C is not acceptable, the Cluster Capital Projects VP
shall approve the rejection T&C report within 3 days.
3. As per the not accepted report, the contractor has to resolve the failure reasons and
resubmit for a new T&C process with a new T&C Plan and a new T&C Methodology.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Testing & Commissioning
Consulted: Contractor
Section Head
NWC Project Manager
Informed: Cluster Asset Management Director
Cluster Testing & Commissioning
Cluster O&M Director
Section Head
Contractor
Testing & Commissioning Director
6.5.4.15 PMM-006-SCO-055-135 Rectify the Required T&C Snag List Items

1. T&C Working Group should identify in the T&C snag list template the items to be rectified
during the T&C stage.
2. The NWC Project Manager shall transmit the T&C snag list to the IA&HO committee
include it in the IA&HO snag list.
3. Contractor shall fulfill all T&C snag list items which were identified by the T&C Working
Group in the first bullet.
4. After fulfilling all T&C snag list items, contractor shall request for reinspection.
5. T&C Working Group shall inspect the fulfillment of all T&C snag list items then sign the
completion of each fulfilled T&C snag list item within 2 days from the request for
reinspection.
6. After singing all T&C snag list items the T&C Working Group shall inform the followings by
the completion of T&C snag list fulfillment:
a. Contractor

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b. NWC Project Manager

c. Cluster Capital Projects VP
d. Testing & Commissioning Director
NWC Project Manager Testing & Commissioning Working
Responsible:
Contractor Group
Accountable: NWC Project Manager
Contractor
Consulted: Cluster Testing & Commissioning
Testing & Commissioning Working
Section Head
Group
NWC Project Manager
Informed:
Cluster Capital Projects VP Cluster Asset Management Director
Cluster Testing & Commissioning Cluster O&M Director
Section Head Contractor
Testing & Commissioning Director

6.6 PMM-006-SCO-060 Total Initial Acceptance & Handover of Project Scope

6.6.1 Objective
The objective of this process is to formalize the Total Initial Acceptance of the completed project
works that deliver all the functions that project is created to deliver.
6.6.2 Policies
Policies for this process are:
1. All construction project scope must go through Initial Acceptance process whether partially
or totally.
2. Handover processes should be described in Construction Tender Documents and in the
construction bids. It should address the following:
● whether the project works to be handed over on:
○ a total project works completion basis
○ a total facility completion basis
○ a building completion basis
○ a system basis
○ a combination of the above three
● the sequence of handing over if the project works are not handed over on a total
project works completion basis.
● the Operation and Maintenance strategy for the post Initial Handover such as:
○ whether there is maintenance and operation item in the contract BoQ.
○ whether there is specific training.
3. One year before the planned date for the Total Initial Acceptance Handover of the project,
the NWC Project Manager is responsible for informing the O&M department through the
Cluster Capital Projects VP by this planned date.
4. The Initial Acceptance process including acceptance decision and handing over must be
clearly defined in the Project Management Plan with sufficient resources and suitable
durations.
5. The decision of the Total Initial Acceptance & Handover committee (Acceptance Certificate
/ Rejection Report) shall be issued in only one written copy.
6. No completed part of project scope shall be initially accepted and handed over unless it is
verified through quality control process.
7. The Initial Acceptance process itself must be detail described in the NWC Project
Management Plan.

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8. If the contractor does not submit initial acceptance request for the project works by the
project end date, the Cluster Capital Projects VP shall form a committee to survey the actual
executed and remaining works for further action as per contract.
9. If the Initial Acceptance & Handover is rejected, the contractor shall resolve the rejection
reasons then resubmit another request.
10. Handing over the initially accepted works to O&M Department must immediately follow the
initial acceptance process. No lag time allowed without formal approval.
11. The Initial Acceptance & Handover Committee shall fulfill the following:
i. The committee head must be assigned by the committee approver.
ii. The NWC Project Manager must be a member of every Initial Acceptance & Handover
committee.
iii. The committee, shall comprise at least one representative from the following
functions/departments:
● Cluster Projects department
● Cluster O&M department
● Cluster Asset Management department
● Cluster HSSE department
● Supervision Consultant
● Contractor
● Nominee by Scheduling & Control GM (as per below criteria)
● External Subject Matter Expert (if needed)
12. The Cluster Capital Projects VP shall solicit from the Scheduling & Control GM a nomination
(from HQ or other clusters) to participate in the Initial Acceptance & Handover Committee
for the following projects:
● All Water / Wastewater Treatment Plant Projects.
● Any other project of a value ≥ 100M SAR.
13. The approval of:
● forming Initial Acceptance & Handover Committee.
● Initial Acceptance & Handover Certificate / Rejection Report / Survey Report.
shall be by:
● Projects Execution VP for:
○ All Water / Wastewater Treatment Plant Projects.
○ Any other project of a value ≥ 100M SAR.
● Cluster Capital Projects VP for any project < 100M SAR and is not a Water /
Wastewater treatment Plant projects.
14. The Total Initial Acceptance Committee is not authorized to request implementing a new
requirement that NOT previously included in the project scope.
15. The Total Initial Acceptance & Handover Committee shall NOT be dissolved unless it
inspects and accepts all snag list items and closes the snag list.
16. The issuance of the Initial Acceptance & Handover Certificate / Rejection Report / Survey
Report should be within 60 calendar days from the Contractor Initial Acceptance Request
submission date.
17. The date of the Initial Acceptance & Handover is the date of the contractor initial acceptance
request submission.
18. If the Initial Acceptance approvals are completed in more than 60 calendar days form the
Contractor Initial Acceptance Request submission date, a justification should be raised to
the Projects EVP.

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19. The contractual “liability and operation” period starts from the total Initial Acceptance &
Handover date.
20. No final invoice be paid to the contractor before the completion and formal acceptance of
the rectification of all snag list items of total Initial Acceptance & Handover whether the items
are rectified by the contractor or assigned to another contractor.
21. The handover process to O&M shall include but not limited to:
● Ensuring the scope to be handed over is initially accepted.
● Handing over of as-built and GIS drawings (digital copies).
● Handing over of O&M manuals and warranty documents.
● Physical handing over of the completed project works.
● Handing over of the project certificates and permits.
● Handing over project related software applications, databases and passwords.
● Handing over of spare parts and include them in one list.
● Training of operational staff.
● Handing over of keys.
● Addressing defects (if any) and its warranties.
● Undertaking contractual “liability and operation” period by Contractor.
● Assets information as per Assets Registration form (from Asset Management
department).
22. If the committee could not perform the total Initial Acceptance & Handover tests due to
reasons out of Contractor’s control, could not operate the project works due to reasons out
of Contractor’s control and estimated the preventing reasons demise period:
i. equals or less than six months from committee site visit date:
a. The committee shall prepare a “Work Survey Report Due to Inability for IA&HO
Inspection”.
b. The committee shall delay the Initial Acceptance & Handover till preventing
reasons demise.
c. If the preventive maintenance, security and storing of project works and materials
are found needed by the committee, they shall be assigned to the Contractor at
current market price by an approve variation order. This is to be applied after
negotiations with the contractor.
If the committee does not reach an agreement with the contractor, the Cluster
Projects department shall request from Supply Chain department to tender for the
preventive maintenance, security and storing of project works and materials in an
independent Contract to another contractor based on NWC approved policies and
procedures.
d. In case:
- the preventing reasons demised before the six months elapse, perform Initial
Acceptance & Handover process and tests then operate the project works.
- the six months elapsed without the preventing reasons demised go to case “ii”
below.

ii. more than six months from committee site visit date:
a. The committee shall prepare Initial Acceptance & Handover certificate
(with/without snag list).
b. If the preventive maintenance, security and storing of project works and materials
that are found needed by the committee, they shall be assigned to the Contractor
at current market price via an approved variation order. This is to be applied after
negotiations with the contractor.

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If the committee does not reach an agreement with the contractor, the Cluster
Projects department shall request from Supply Chain department to tender for the
preventive maintenance, security and storing of project works and materials in an
independent Contract to another contractor based on NWC approved policies and
procedures.
c. Contractor final invoice to be paid after that:
- The contractor rectifies all snag list items (if any).
- The contractor submits a commitment letter to perform the followings once the
preventing reasons demise:
▫ requirements of testing and operating the project works.
▫ rectifications due to poor contractor execution.
▫ pay all costs for rectifying all defects on project executed works.
d. The commitment letter must be attested by the Chamber of Commerce.
e. Based on the assessment of the Initial Acceptance Committee, the rectifications
on project works needed due to:
- poor contractor execution shall be on the Contractor expense.
- delaying the Initial Acceptance & Handover shall NOT be on Contractor expense.
f. In case the preventing reasons demised after the six months elapsed:
- perform Initial Acceptance & Handover tests then operate the project works.
- if the IA&HO tests are found accepted and the project is operated, issue to the
contractor a clearance from his commitment letter.
g. In case the preventing reasons demised after the final acceptance and handover,
the Cluster Capital Projects VP has the right to:
- form a new committee
OR
- add members to and/or eliminate members from the previous IA&HO committee
to perform the handover tests and operate the project works.
h. If contractor does not fulfill his commitments in paragraph “c”, the following shall
be performed:
- The Supply Chain department shall tender (without budget reservation) for
performing tests, operating the project works and/or rectifying the defects in an
independent Contract by another contractor.
- The budget of the independent contract which is tendered without budget shall
be reserved from the project bank guarantee (performance bond) of the main
contractor as per the Supply Chain policies and procedures.
- If the bank guarantee (performance bond) was lower than the required cost for
rectifying the defects, the Supply Chain department shall inform the Finance
Department to assign a due back charge on the Contractor to be deducted from
his invoices in his other contracts with NWC if any.
- If the deduction from the contractor invoices is found not sufficient, the Supply
Chain department shall inform the Legal Department to take legal actions against
the contactor to collect the deservings.
23. The contractor is required to submit to NWC Project Manager a local content final report as
per the local content manual of the Supply Chain department.
24. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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6.6.3 Workflow Chart

Figure 6-9 PMM-006-SCO-060 Total Initial Acceptance & Handover of Project Scope Workflow Chart

6.6.4 Procedures
6.6.4.1 PMM-006-SCO-060-010 Receive and Review a Total Initial Acceptance Request

1. The NWC Project Manager shall receive the total initial acceptance request from Contractor
(PMF-006-SCO-018 Contractor Total Initial Acceptance Request).
2. The NWC Project Manager shall ensure with the Supervision Consultant that the
Contractor has stated in the request that:
a. The clear identification of the whole scope that requested for acceptance is
described as per BoQ description.
b. The completion of the scope that requested for acceptance.
c. The scope that requested for acceptance is quality controlled.
d. The availability of technicians and labors required for the inspection.
e. The contractor authorized representative for the Total Initial Acceptance &
Handover Committee.
3. The NWC Project Manager shall check with the Supervision Consultant the completion of
the request attachments which must include but not limited to the following:
a. Project Contract including all approved variation orders.
b. Accepted Testing & Commissioning Report.
c. Shop drawings.
d. Quality control acceptance records.
e. Testing & Commissioning Report.
f. All Processed Claims.

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4. The supervision consultant shall develop a works status report within 2 days using (PMF-
006-SCO-078 Works Status Report for a Project Requested for IA&HO) indicating:
a. the project status.
b. the completed and remaining works.
c. recommendation whether proceeding in performing the total initial acceptance
process or not.
5. The supervision consultant shall collect the contractor signature on the report within 1 day.
6. The NWC Project Manager shall review and endorse the works status report and send it
to the Business Unit Construction Director within 1 day.
7. The Business Unit Construction Director shall review and endorse the works status report
within 1 day.
8. The Cluster Capital Projects VP shall review and approve the works status report within 2
days.
9. If the recommendation was NOT to proceed to perform the initial acceptance process, The
NWC Project Manager shall:
a. prepare a rejection letter for the Contractor Total Initial Acceptance Request using
(PMF-006-SCO-079 IA&HO Rejection Letter Based on Consultant Works Status
Report).
b. raise the rejection letter to the Cluster Capital Projects VP within 2 days.
10. The Cluster Capital Projects VP shall issue the rejection letter to the contractor within 1
day.
11. If the Contractor does not submit total initial acceptance request by the project end, start a
withdraw process form (PMM-014-PRO-090-003 Develop a Project Works Survey Report
for Not Requesting IA&HO at the Project End Date).
Contractor
Responsible: Business Unit Construction Director
Supervision Consultant
Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Cluster Testing & Commissioning
Consulted: Cluster Scheduling & Control Director
Section Head
Contractor Cluster Testing & Commissioning
Informed:
Supervision Consultant Section Head
NWC Project Manager Testing & Commissioning Director
6.6.4.2 PMM-006-SCO-060-020 Form a Total Initial Acceptance & Handover Committee

1. If the recommendation was to proceed to perform the initial acceptance process:

a. The NWC Project Manager shall request at least one representative from but not
limited to the following departments to participate in the Total Initial Acceptance &
Handover Committee:
i. Cluster Projects department
ii. Cluster O&M department
iii. Cluster Asset Management department
iv. Cluster HSSE department
v. Supervision Consultant
vi. Contractor
vii. External Subject Matter Expert (if needed).
NWC Project Manager can request representatives from other department as
required.

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The NWC Project Manager shall be nominated in the committee.

b. NWC Project Manager shall:
i. prepare the request for Initial Acceptance & Handover Committee forming
mentioning the received nominated persons beside the contractor
authorized representative and attaching Contractor acceptance request
using (PMF-008-SCO-015 Total Initial Acceptance & Handover Committee
Forming Request).
ii. raise it to the Cluster Capital Projects VP within 2 days.
c. The Cluster Capital Projects VP within 3 days shall:
i. approve the committee forming request if the project value is < 100M SAR
and is not a water / wastewater treatment plant projects.
OR
ii. solicit from the Scheduling & Control GM a nomination (from HQ or other
clusters) to participate in the Initial Acceptance & Handover Committee if:
1. the project is water / wastewater treatment plant project.
2. the project value is ≥ 100M SAR
iii. endorse the committee forming request and raise it to Projects Execution
VP.
d. The Projects Execution VP within 3 days shall approve the committee forming
request for:
i. All water / wastewater treatment plant projects.
ii. Any other project of a value ≥ 100M SAR.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Business Unit Construction Director Cluster O&M Director
Consulted:
Cluster Scheduling & Control Director Supervision Consultant
Cluster Technical Services Director Contractor
Cluster Testing & Commissioning External Subject Matter Expert (if
Section Head needed)
Cluster Asset Management Director Scheduling & Control GM
Scheduling & Control GM Supervision Consultant
Informed:
Contractor Business Unit Construction Director
6.6.4.3 PMM-006-SCO-060-040 Perform Total Initial Acceptance Inspection

1. After official committee formation, the committee shall conduct a meeting to review the
submitted documents to coordinate the committee inspection activities.
2. Conduct site visits to inspect and test the completed scope requested for initial acceptance.
3. Initial acceptance inspection shall cover ensuring the completion and validating of the
following:
a. Commissioning approval documents.
b. Operation and maintenance manuals of the works that requested for acceptance
are submitted.
c. Assets information as per the Assets Registration Manual template of the works
that requested for acceptance are filled and submitted.
d. The spare parts, if contractually stated, is handed over to Operation department
using (PMF-006-SCO-006 Spare Parts Record Template).

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e. The training, if contractually stated, is provided to the assigned Operation

individual/team prior to the physical handing over and accredited certificates are
issued to the trained individual/team.
f. The Project IT items. This shall include, if any, project related software applications,
databases, passwords, warranty documents and insurance documents.
g. The project records such as reports, registers, certificates, permits, etc.
h. The as-built and GIS drawings.
This procedure shall be completed within 23 working days.
Total Initial Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.6.4.4 PMM-006-SCO-060-045 Prepare Initial Acceptance & Handover Certificate /

Rejection Report / Survey Report

1. After site visits completion, the committee shall conduct a meeting to agree on the
inspection decision as follows:
2. Reject the Initial Handover Request, if the committee monitored deficiencies that prevents
the functional use of the project works and:
a. Prepare initial handover rejection report using (PMF-006-SCO-012 Total Initial
Acceptance & Handover Rejection).
b. The rejection report shall describe how the deficiencies prevent the functional use
of the project.
3. Accept the Initial Handover with a Snag List, if the committee monitored deficiencies that
does not prevent the functional use of the project works and:
a. Prepare Initial Acceptance & Handover Certificate using (PMF-006-SCO-011 Total
Initial Acceptance & Handover Certificate).
b. Prepare a snag list of the deficiencies using (PMF-006-SCO-008 Snag List
Template) for the snag list items to be rectified. Attach it to the acceptance
certificate.
c. Keep the original copy of the Snag List to update it by acceptances for the rectified
snag list items then send a copy to the Contractor.
d. The Contractor shall be granted 60 calendar days to complete rectifying all snag
list items. If any item requires more than 60 calendar days for completion, the
following shall be done during the rectification period:
i. The contractor shall request for additional rectification period.
ii. Based on the Contractor request, the NWC Project Manager shall raise a
request to Scheduling & Control GM for approval.
4. Accept the Initial Handover without a Snag List, if the committee did not monitor any
deficiency and ensured that the functional use of the project fully exists, prepare Initial
Acceptance & Handover Certificate using (PMF-006-SCO-011 Total Initial Acceptance &
Handover Certificate).
5. Delay the Initial Acceptance & Handover due to not performing the Initial Acceptance &
Handover tests and not operate the project works if the committee:
a. could not perform Initial Acceptance & Handover tests and could not operate the
project works due to reasons out of Contractor’s control.
AND

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b. estimated the duration of preventing reasons demise equal or less than six months
from committee site visit date then the committee shall:
i. delay the Initial Acceptance & Handover till preventing reasons demise
within six months.
ii. prepare a Survey Report, using (PMF-008-SCO-034 Work Survey Report
Due to Inability for IA&HO Inspection), that describes and states at least
the following:
1. executed works
2. supplied material
3. reasons that prevented testing and operating the project works.
4. whether the project needs preventive maintenance, security and
storing of project works and materials.
6. Accept the Initial Acceptance & Handover without performing the Initial Acceptance &
Handover tests and operate the project works if the committee:
a. could not perform Initial Acceptance & Handover tests and could not operate the
project works due to reasons out of Contractor’s control.
AND
b. estimated the duration of preventing reasons demise more than six months from
committee site visit date OR the preventing reasons, which expected to demise in
less than six months, lasted for more than six months, then the committee shall:
i. prepare Initial Acceptance & Handover certificate using (PMF-008-SCO-
064 Total Initial Acceptance & Handover Certificate without Tests) stating
whether the project needs preventive maintenance, security and storing of
project works and materials.
ii. If the committee monitored deficiencies on the executed works, prepare a
snag list of the deficiencies using (PMF-006-SCO-008 Snag List Template)
for the snag list items to be rectified. Attach it to the acceptance certificate.
This procedure shall be completed within 1 day.
Total Initial Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.6.4.5 PMM-006-SCO-060-050 Issue Initial Acceptance & Handover Certificate / Rejection

Report / Survey Report

1. All committee members shall sign the prepared Initial Acceptance & Handover Certificate /
Rejection Report / Survey Report then raise it to the Cluster Capital Projects VP within 1
day.
2. Within 2 days, the Cluster Capital Projects VP shall:
a. approve the document if the project value is < 100M SAR and is not a water /
wastewater treatment plant project.
OR
b. endorse the document and raise it to Projects Execution VP if:
i. the project is water / wastewater treatment plant project.
ii. the project value is ≥ 100M SAR.
3. If the Projects Execution VP receives the document, he shall approve it within 2 days.

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After obtaining approvals:

4. In case of “Rejection” Decision, issue the rejection report to the Contractor.
5. In cases of:
a. “Initial Acceptance with a Snag List” decision
b. “Initial Acceptance without a Snag List” decision
c. “Initial Acceptance without performing the Initial Acceptance & Handover tests”
decision
do the following:
a. Issue the prepared Initial Acceptance & Handover Certificate to the Contractor.
b. The contractual “liability and operation” period starts from the Initial Acceptance
date.
6. In case of “delay the Initial Acceptance & Handover due to not performing the Initial
Acceptance & Handover tests” decision, issue the survey report to the Contractor with a
cover letter describes the case using (PMF-006-SCO-035 Work Survey Letter to Contractor
Due to Inability for IA&HO Inspection).
This procedure to be completed within 60 calendar days from the Contractor request
submission.
Total Initial Acceptance & Handover
Responsible:
Committee Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Cluster Contracts Administration
Consulted:
Manager
Contractor Cluster Asset Management Director
Informed:
Business Unit Construction Director Cluster O&M Director
6.6.4.6 PMM-006-SCO-060-053 Actions to Maintain the Situation of Inability to Perform the
Tests and Operate within Six Months

If the committee:
a. could not perform Initial Acceptance & Handover tests and could not operate the
project works due to reasons out of Contractor’s control.
AND
b. estimated the duration of preventing reasons demise equaled or less than six
months from committee site visit date.
then, if the project needs preventive maintenance, security and storing of project works and
materials,
1. the cluster projects department shall negotiate with the contractor to perform the preventive
maintenance, security and storing of project works and materials at current market price.
2. If an agreement is reached, the NWC Project Manager shall request for a variation via the
process (PMM-005-INT-060 Variation Control).
3. If agreement is not reached with the contractor, the Cluster Capital Projects VP shall inform
the Supply Chain department to tender the preventive maintenance, security and storing
of project works and materials to another contractor via an independent agreement.
4. NWC Project Manager shall escalate the preventing reasons to Cluster Capital Projects
VP to resolve these issues.
5. NWC Project Manager shall keep monitoring the resolution of the issues to enable Initial
Acceptance & Handover.
Once the preventing reasons demised:

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6. The NWC Project Manager shall notify the contractor using (PMF-006-SCO-069
Notification to Contractor about the Demise of Reasons Prevented IA&HO).
7. The committee shall perform the operational tests and initial acceptance starting from
(PMM-006-SCO-060-040 Perform Total Initial Acceptance Inspection).
Initial Acceptance & Handover
Responsible:
Committee Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.6.4.7 PMM-006-SCO-060-056 Actions to Maintain the Situation of Inability to Perform the

Tests and Operate for More Than Six Months

If the committee could not perform the tests of Initial Acceptance & Handover and could not
operate the project works due to reasons out of Contractor’s control:
a. For more than six months as expected and issued an Initial Acceptance Certificate
to the contractor.
OR
b. For more than six months because the preventing reasons lasted despite it was
expected to demise in less than six months.
Then:
1. if the project is found needs preventive maintenance, security and storing of project works
and materials, the cluster projects department shall negotiate with the contractor to perform
the preventive maintenance, security and storing of project works and materials at current
market price.
2. If an agreement is reached, the NWC Project Manager shall request for a variation via the
process (PMM-007-INT-060 Variation Control).
3. If agreement is not reached with the contractor, the Cluster Capital Projects VP shall inform
the Supply Chain department to tender the preventive maintenance, security and storing
of project works and materials to another contractor via an independent agreement.
4. After the contractor rectifies all the snag list items, the NWC Project Manager shall direct
the contractor to submit:
a. the final invoice.
b. a commitment letter to perform, once the preventing reasons demise, all:
i. the Initial Acceptance & Handover tests and operate the project works.
ii. the required work rectifications that arose due to:
1. poor contractor execution at his expense.
2. late testing and operating at NWC expense.
The commitment letter must be attested by the Chamber of Commerce.
5. NWC Project Manager shall escalate the preventing reasons to Cluster Capital Projects
VP to resolve these issues.
6. NWC Project Manager shall keep monitoring the resolving of the issues to enable Initial
Acceptance & Handover.
Once the preventing reasons demised:
7. The NWC Project Manager shall notify the contractor using (PMF-006-SCO-070
Notification to Contractor about the Demise of Reasons Prevented Operational Tests).

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8. The committee shall perform the operational tests and initial acceptance starting from
(PMM-006-SCO-060-040 Perform Total Initial Acceptance Inspection).
Initial Acceptance & Handover
Responsible:
Committee NWC Project Manager
Cluster Capital Projects VP
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Cluster Capital Projects VP
Informed: Cluster Finance GM
Business Unit Construction Director
Legal Affairs GM
Cluster Supply Chain Manager
6.6.4.8 PMM-006-SCO-060-058 Issue Warning Letter Due to Not Request for Inspection for
Snag List Rectification

1. If the Contractor does not request for inspecting the snag list fulfilment within 60 calendar
days from the snag list issuance date:
2. NWC Project Manager shall prepare a warning letter for the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-021 Warning Letter due to Not Request for
Inspection for IHO Snag List Rectification).
3. NWC Project Manager shall raise the warning letter to Cluster Capital Projects VP for
issuance within 1 day.
4. Cluster Capital Projects VP shall issue the warning letter to the contractor within 1 day.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: Supervision Consultant
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.6.4.9 PMM-006-SCO-060-059 Rectify the Snag List Items by Another Contractor on Main
Contractor Expense

If after 15 calendar days from the warning letter issuance:

a. if the contractor does not request for re-inspecting the snag list fulfilment.
OR
b. if the re-inspection of snag list rectification found that, not all deficiencies are
rectified as per (PMM-006-SCO-060-066 Re-Inspect Snag List Fulfilment after 15
Days from Warning Letter).
1. Cluster Capital Projects VP shall, within 1 day, request from Supply Chain department
assigning another Contractor to complete the rectification on the contractor expense. If
there is no available budget, the Cluster Capital Projects VP shall request for tendering
without budget. The request shall be attached with:
a. Detailed description for the snag list items (suitable for tendering which includes
but not limited to a clear scope, cost estimate and execution duration).
b. Total Initial Acceptance & Handover Certificate.
c. Warning Letter to Contractor.
2. After receiving the best bided price from the Supply Chain department, submit to Finance
department the following:
a. The price that selected by Supply Chain department.
b. The final invoice including a deduction equals to the cost of the selected price.

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c. Initial Acceptance & Handover Certificate.

3. This submission is to enable Finance department to:
a. release an amount equals to the bided best price from the contract budget.
b. reserve and allocate the released amount for the best bidder.
c. Provide Cluster Projects Department with the number of budget reservation.
4. After receiving budget reservation number from Finance department prepare a Purchase
Requisition (PR) using (PMF-014-PRO-005 PR Approval Form) as per procedures:
a. (PMM-014-PRO-030-030 Prepare Purchase Requisition (PR)).
b. (PMM-014-PRO-030-040 Approve the Purchase Requisition (PR)).
5. After receiving the PO and Contract of the new contractor from Supply Chain department,
direct the new contractor to rectify the snag list items and request for inspecting the works.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted:
Cluster Contracts Administration Supervision Consultant
Manager
Contractor Cluster Supply Chain Manager
Informed:
NWC Project Manager Cluster Finance GM
6.6.4.10 PMM-006-SCO-060-060 Inspect Snag List Fulfilment

If the Contractor requests to inspect the Snag list fulfilment within (60 calendar days from the
snag list issuance) or (15 calendar days form the warning letter),
1. The Initial Acceptance & Handover Committee shall:
a. Coordinate to conduct a site visit to perform the requested inspection.
b. Conduct the inspection.
c. Update the snag list by accepting the rectified snag list items.
2. If all snag list items are satisfactorily rectified:
a. all Total Initial Acceptance & Handover Committee members shall update and sign
the closure of the snag list which developed by (PMF-006-SCO-008 Snag List
Template).
b. send a copy of the closed snag list to the contractor to submit the final invoice.
3. If all/some snag list items are not satisfactorily rectified, go to (PMM-006-SCO-060-063
Issue Warning Letter Due to Incomplete Snag List Rectification).
This procedure shall be completed within 7 days from the Contractor snag inspection request.
Total Initial Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP

Consulted: Contractor
Contractor Cluster Asset Management Director
Informed:
Cluster Capital Projects VP Cluster O&M Director
Business Unit Construction Director Cluster Finance GM
6.6.4.11 PMM-006-SCO-060-063 Issue Warning Letter Due to Incomplete Snag List
Rectification

After inspecting snag list fulfilment and the inspection found that all/some snag list items are not
satisfactorily rectified:

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1. Update the snag list.

2. the NWC Project Manager shall prepare a warning letter to Contractor to complete the
rectification within 15 calendar days using (PMF-006-SCO-031 Warning Letter due to
Incomplete IA&HO Snag List Rectification) then raise it to the Cluster Capital Projects VP
within 1 day.
3. The Cluster Capital Projects VP shall issue the warning letter within 1 day to the Contractor
to complete the rectification within 15 calendar days.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.6.4.12 PMM-006-SCO-060-066 Re-Inspect Snag List Fulfilment after 15 Days from Warning
Letter

After 15 calendar days form the warning letter (due to incomplete snag list rectification), the
Initial Acceptance & Handover Committee shall:
1. Coordinate to conduct a site visit for re-inspection.
2. Conduct the inspection.
3. Update the snag list by accepting the rectified snag list items.
if the re-inspection found that, all deficiencies are rectified:
1. Total Initial Acceptance & Handover Committee members shall update and sign
the closure of the snag list which developed by (PMF-006-SCO-008 Snag List
Template).
2. send a copy of closed snag list to the contractor to submit the final invoice.
if the re-inspection found that, not all deficiencies are rectified,
1. Cluster Capital Projects VP shall, within 1 day, request from Supply Chain
department to;
2. assign another Contractor to complete the rectification on contractor expense as
per procedure (PMM-006-SCO-060-059 Rectify the Snag List Items by Another
Contractor on Main Contractor Expense).
This procedure shall be completed within 7 days from the Contractor snag inspection request.
Total Initial Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor
6.6.4.13 PMM-006-SCO-060-070 Inspect Rectified IA&HO Snag List by Another Contractor
at Contractor’s Expense

1. After rectifying the outstanding snag list items by the new contractor and receiving a request
to inspect the outstanding deficiencies list fulfilment, the Initial Acceptance & Handover
Committee shall:
a. coordinate to conduct a site visit to perform the requested inspection.
b. complete the inspection within 7 days from the new Contractor snag inspection
request.

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After site visits completion:

2. If all/some snag list items are found not satisfactorily rectified:
a. A re-inspection shall be performed after 10 days.
b. The work delay provisions in the new contract shall be applied against the new
contractor.
3. If all snag list items are found satisfactorily rectified:
a. NWC Project Manager shall Direct the new contractor to submit his final invoice.
b. After processing the new contractor final invoice, NWC Project Manager shall close
the new contract as per the process (PMM-014-PRO-100 Close Contract).
c. NWC Project Manager shall notify the main contractor within 3 days:
i. by the snag lists are closed on his expense.
ii. to submit the final invoice.
Total Initial Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor

6.7 PMM-006-SCO-065 Partial Initial Acceptance & Handover of Project Scope

6.7.1 Objective
The objective of this process is to formalize the Partial Initial Acceptance of the completed parts of
the project works that deliver part of the functions that project is created to deliver.
6.7.2 Policies
Policies for this process are:
1. All construction project scope must go through Initial Acceptance process whether partially
or totally.
2. Handover processes should be described in Construction Tender Documents and in the
construction bids. It should address the following:
● whether the project works to be handed over on:
○ a total project works completion basis
○ a total facility completion basis
○ a building completion basis
○ a system basis
○ a combination of the above three.
● the sequence of handing over if the project works are not handed over on a total
project works completion basis.
● the Operation and Maintenance strategy for the post Initial Handover such as:
○ whether there is maintenance and operation item in the contract BoQ.
○ whether there is specific training.
3. One year before the planned date for the Partial Initial Acceptance Handover of the project,
the NWC Project Manager is responsible for informing the O&M department through the
Cluster Capital Projects VP by this planned date.
4. Initial acceptance request for a PART of executed works (partial initial acceptance request)
to be processed if the requested part of works is a system that simultaneously :

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i. can deliver the function that the system is created to deliver (system purpose) as part
of the project function (project purpose).
ii. can be put in service.
5. The partial initial acceptance process including acceptance decision and handing over must
be clearly defined in the Project Management Plan with sufficient resources and suitable
durations.
6. The decision of the partial Initial Acceptance & Handover committee (acceptance certificate
/ rejection report) shall be issued in only one original copy.
7. No completed part of project scope shall be initially accepted and handed over unless it is
verified through quality control process.
8. The Initial Acceptance process itself must be detail described in the NWC Project
Management Plan.
9. In case of that partial Initial Acceptance & Handover committee rejects the partial initial
acceptance request, the contractor shall resolve the rejection reasons then resubmit
another request.
10. Handing over the initially accepted works to O&M Department must immediately follow the
partial initial acceptance process. No lag time allowed without formal approval.
11. The Partial Initial Acceptance & Handover Committee, which will be formed after the
contractor requests for total initial acceptance, shall fulfill the following:
i. The committee head must be assigned by the committee approver.
ii. The NWC Project Manager must be a member of every Initial Acceptance & Handover
committee.
iii. The committee, shall comprise at least one representative from the following
functions/departments:
● Cluster Projects department
● Cluster O&M department
● Cluster Asset Management department
● Cluster HSSE department
● Supervision Consultant
● Contractor
● Nominee by Scheduling & Control GM (as per below criteria)
● External Subject Matter Expert (if needed)
12. The Cluster Capital Projects VP shall solicit from the Scheduling & Control GM a nomination
(from HQ or other clusters) to participate in the Initial Acceptance & Handover Committee
for the following projects:
● All Water / Wastewater Treatment Plant Projects.
● Any other project of a value ≥ 100M SAR.
13. The approval of:
● forming Initial Acceptance & Handover Committee.
● Initial Acceptance & Handover Certificate / Rejection Report / Survey Report.
shall be by:
● Projects Execution VP for:
○ All Water / Wastewater Treatment Plant Projects.
○ Any other project of a value ≥ 100M SAR.
● Cluster Capital Projects VP for any project < 100M SAR and is not a Water /
Wastewater treatment Plant projects.

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14. The Partial Initial Acceptance Committee is not authorized to request implementing a new
requirement that NOT previously included in the project scope.
15. The Patial Initial Acceptance & Handover Committee shall NOT be dissolved unless it
inspects and accepts all snag list items and closes the snag list.
16. The issuance of the Initial Acceptance & Handover Certificate / Rejection Report / Survey
Report should be within 60 calendar days form the Contractor Initial Acceptance Request
submission date.
17. The date of the Initial Acceptance & Handover is the date of the contractor initial acceptance
request submission.
18. If the Initial Acceptance approvals are completed in more than 60 calendar days form the
Contractor Initial Acceptance Request submission date, a justification should be raised to
the Projects EVP.
19. The contractual “liability and operation” period starts from the partial Initial Acceptance &
Handover date.
20. The handover process to O&M shall include but not limited to:
● Ensuring the scope to be handed over is initially accepted.
● Handing over of as-built and GIS drawings (digital copies).
● Handing over of O&M manuals and warranty documents.
● Physical handing over of the completed project works.
● Handing over of the project certificates and permits.
● Handing over project related software applications, databases and passwords.
● Handing over of spare parts and include them in one list.
● Training of operational staff.
● Handing over of keys.
● Addressing defects (if any) and its warranties.
● Undertaking contractual “liability and operation” period by Contractor.
● Assets information as per Assets Registration form (from Asset Management
department).
21. The last partial initial acceptance and handover shall be considered as total initial
acceptance and handover.
22. If the committee could not perform the Partial Initial Acceptance & Handover tests due to
reasons out of Contractor’s control and could not operate the project works due to reasons
out of Contractor’s control:
i. The committee shall prepare a “Work Survey Report Due to Inability for IA&HO
Inspection”.
ii. Delay the Initial Acceptance & Handover till (which take place first):
a. The preventing reasons demise.
b. The project finish date to be processed as part of the total Initial Acceptance &
Handover.
iii. If the preventive maintenance, security and storing of project works and materials are
found needed by the committee, they shall be assigned to the Contractor at current
market price by an approve variation order. This is to be applied after negotiations with
the contractor.
If the committee does not reach an agreement with the contractor, the Cluster Projects
department shall request from Supply Chain department to tender for the preventive
maintenance, security and storing of project works and materials in an independent
Contract to another contractor based on NWC approved policies and procedures.
iv. If the preventing reasons demised before the project finish date, perform Initial
Acceptance & Handover process and tests then operate the project works.

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v. If the project reached its finish date without the preventing reasons demised, the
requested part shall be processed as part of the total Initial Acceptance & Handover
23. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
6.7.3 Workflow Chart
Figure 6-10 PMM-006-SCO-065 Partial Initial Acceptance & Handover of Project Scope Workflow Chart

6.7.4 Procedures
6.7.4.1 PMM-006-SCO-065-010 Receive and Review the Partial Initial Acceptance &
Handover Request

1. Receive the Partial Initial Acceptance Request from Contractor (PMF-006-SCO-027

Contractor Partial Initial Acceptance & Handover Request).
2. Ensure with the Supervision Consultant that, the Contractor has stated in the request that:
a. The clear identification of the part of the scope that requested for acceptance is
described as per BoQ description.
b. The completion of the scope that requested for acceptance.
c. The scope that requested for acceptance is quality controlled.
d. The availability of technicians and labors required for the inspection.
e. The contractor authorized representative for the Partial Initial Acceptance &
Handover Committee.
3. Check the completion of the request attachments which must include but not limited to the
following:
a. Project Contract including all approved variation orders.
b. Issued for Construction drawings.

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c. Quality control acceptance records.

d. Accepted Testing & Commissioning Report.
e. Testing & Commissioning Report.
f. All Processed Claims
4. The supervision consultant shall develop a works status report within 2 days using (PMF-
006-SCO-078 Works Status Report for a Project Requested for IA&HO) indicating:
a. the project status.
b. the completed and remaining works.
c. recommendation whether proceeding in performing the total initial acceptance
process or not.
5. The Contractor shall sign the report within 1 day.
6. The NWC Project Manager shall review and endorse the works status report and send it
to the Business Unit Construction Director within 1 day.
7. The Business Unit Construction Director shall review and endorse the works status report
within 1 day.
8. The Cluster Capital Projects VP shall review and approve the works status report within 2
days.
If the recommendation was NOT to proceed to perform the initial acceptance process, The NWC
Project Manager shall:
1. prepare a rejection letter for the Contractor Total Initial Acceptance Request using (PMF-
006-SCO-079 IA&HO Rejection Letter Based on Consultant Works Status Report).
2. raise the rejection letter to the Cluster Capital Projects VP within 2 days.
3. The Cluster Capital Projects VP shall issue the rejection letter to the contractor within 1
day.
Contractor
Responsible: Business Unit Construction Director
Supervision Consultant
Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Cluster Testing & Commissioning
Consulted: Cluster Scheduling & Control Director
Section Head
Contractor Cluster Testing & Commissioning
Informed:
Supervision Consultant Section Head
NWC Project Manager Testing & Commissioning Director
6.7.4.2 PMM-006-SCO-065-020 Form a Partial Initial Acceptance & Handover Committee

If the recommendation was to proceed to perform the initial acceptance process:

1. The NWC Project Manager shall request at least a representative from but not limited to
the following departments to participate in the Total Initial Acceptance & Handover
Committee:
a. Cluster Projects department
b. Cluster O&M department
c. Cluster Asset Management department
d. Cluster HSSE department
e. Supervision Consultant
f. Contractor
g. External Subject Matter Expert (if needed).
NWC Project Manager can request representatives from other departments as required.

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The NWC Project Manager shall be nominated in the committee.

2. NWC Project Manager shall:
a. prepare the request for partial initial acceptance & handover committee forming
mentioning the received nominated persons beside the contractor authorized
representative and attaching Contractor acceptance request using (PMF-008-
SCO-025 Partial Initial Acceptance & Handover Committee Forming Request).
b. raise it to the Cluster Capital Projects VP within 2 days.
3. The Cluster Capital Projects VP within 3 days shall:
a. approve the committee forming request if the project value is < 100M SAR and is
not a water / wastewater treatment plant project.
OR
b. solicit from the Scheduling & Control GM a nomination (from HQ or other clusters)
to participate in the Initial Acceptance & Handover Committee if:
i. the project is water / wastewater treatment plant project.
ii. the project value is ≥ 100M SAR
c. endorse the committee forming request and raise it to Projects Execution VP.
4. The Projects Execution VP within 3 days shall approve the committee forming request for:
a. All water / wastewater treatment plant projects.
b. Any other project of a value ≥ 100M SAR.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Business Unit Construction Director Cluster O&M Director
Consulted:
Cluster Scheduling & Control Director Supervision Consultant
Cluster Technical Services Director Contractor
Cluster Testing & Commissioning External Subject Matter Expert (if
Section Head needed)
Cluster Asset Management Director Scheduling & Control GM
Scheduling & Control GM Supervision Consultant
Informed:
Contractor Business Unit Construction Director
6.7.4.3 PMM-006-SCO-065-040 Perform Partial Initial Acceptance Inspection

1. After official committee formation, the committee shall conduct a meeting to review the
submitted documents to coordinate the committee inspection activities.
2. Conduct site visits to inspect and test the completed scope requested for initial acceptance.
Initial acceptance inspection shall cover ensuring the completion and validating of the
following:
a. Commissioning approval documents.
b. Operation and maintenance manuals of the works that requested for acceptance
are submitted.
c. Assets information as per the Assets Registration Manual template of the works
that requested for acceptance are filled and submitted.
d. The spare parts, if contractually stated, is handed over to Operation department
using (PMF-008-SCO-006 Spare Parts Record Template).
e. The training, if contractually stated, is provided to the assigned Operation
individual/team prior to the physical handing over and accredited certificates are
issued to the trained individual/team.
f. The Project IT items. This shall include, if any, project related software applications,
databases, passwords, warranty documents and insurance documents.

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g. The project records such as reports, registers, certificates, permits, etc.

h. The s built and GIS drawings.
This procedure shall be completed within 23 working days.
Partial Initial Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.7.4.4 PMM-006-SCO-065-045 Prepare Partial Initial Acceptance & Handover Certificate /

Rejection Report / Survey Report

1. After site visits completion, the committee shall conduct a meeting to agree on the
inspection decision as follows:
2. Reject the Initial Handover Request if the committee monitored deficiencies that prevents
the functional use of the project works and:
a. Prepare initial handover rejection report using (PMF-006-SCO-024 Partial Initial
Acceptance & Handover Rejection).
b. The rejection report shall describe how the deficiencies prevent the functional use
of the project.
3. Accept the Initial Handover with a Snag List if the committee monitored deficiencies that
does not prevent the functional use of the project works and:
a. Prepare Initial Acceptance & Handover Certificate using (PMF-006-SCO-023
Partial Initial Acceptance & Handover Certificate).
b. Prepare a snag list of the deficiencies using (PMF-006-SCO-008 Snag List
Template) for the snag list items to be rectified. Attach it to the acceptance
certificate.
c. Keep the original copy of the Snag List to update it by acceptances for the rectified
snag list items then send a copy to the Contractor.
d. The Contractor shall be granted 60 calendar days to complete rectifying all snag
list items. If any item requires more than 60 calendar days for completion, the
following shall be done during the rectification period:
i. The contractor shall request for additional rectification period.
ii. Based on the Contractor request, the NWC Project Manager shall raise a
request to Scheduling & Control GM for approval.
4. Accept the Initial Handover without a Snag List if the committee did not monitor any
deficiency and ensured that the functional use of the project fully exists, prepare Initial
Acceptance & Handover Certificate using (PMF-006-SCO-023 Partial Initial Acceptance &
Handover Certificate).
5. Not Perform the Tests of Partial Initial Acceptance & Handover if the committee could not
perform the tests of the partial Initial Acceptance & Handover and could not operate the
project works due to reasons out of Contractor’s control,
a. the Initial Acceptance & Handover Committee shall prepare a survey report using
(PMF-006-SCO-034 Work Survey Report Due to Inability for IA&HO Inspection)
that adequately describes and states at least the following:
i. executed works.
ii. supplied material.
iii. reasons that prevented testing and operating the project works.

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iv. whether the project needs preventive maintenance, security and storing of
project works and materials
b. delay the partial Initial Acceptance & Handover to (which takes place first):
i. the date of the preventing reasons demise before the project finish date.
ii. the project finish date.
c. The committee shall attach to the report the documents that are stated in the report
or any other required documents.
This procedure shall be completed within 1 day.
Partial Initial Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted: Supervision Consultant
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.7.4.5 PMM-006-SCO-065-050 Issue Partial Initial Acceptance & Handover Certificate /

Rejection Report / Survey Report

1. All committee members shall sign the prepared Initial Acceptance & Handover Certificate /
Rejection Report / Survey Report then raise it to the Cluster Capital Projects VP within 1
day.
2. Within 2 days, the Cluster Capital Projects VP shall:
a. approve the document if the project value is < 100M SAR and is not a water /
wastewater treatment plant project.
OR
b. endorse the document and raise it to Projects Execution VP if:
a. the project is water / wastewater treatment plant project.
b. the project value is ≥ 100M SAR.
3. If the Projects Execution VP receives the document, he shall approve it within 2 days.
After obtaining approvals:
1. In case of “Rejection” Decision, issue the rejection report to the Contractor.
2. In cases of:
a. “Initial Acceptance with a Snag List” decision
b. “Initial Acceptance without a Snag List” decision
do the following:
a. Issue the prepared Initial Acceptance & Handover Certificate to the Contractor and
finance department.
The contractual “liability and operation” period starts from the Initial Acceptance date.
This procedure to be completed within 60 calendar days from the Contractor request
submission.
Partial Initial Acceptance & Handover
Responsible:
Committee Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Cluster Contracts Administration
Consulted:
Manager

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Contractor Cluster Asset Management Director

Informed:
Business Unit Construction Director Cluster O&M Director
6.7.4.6 PMM-006-SCO-065-054 Actions to Maintain the Situation of Inability to Perform the
Tests and Operate

If the committee:
a. could not perform partial Initial Acceptance & Handover tests and could not operate
the project works due to reasons out of Contractor’s control.
AND
b. found that the project needs preventive maintenance, security and storing of project
works and materials.
1. the cluster projects department shall negotiate with the contractor to perform the preventive
maintenance, security and storing of project works and materials at current market price.
2. If an agreement is reached, the NWC Project Manager shall request for a variation via the
process (PMM-005-INT-060 Variation Control).
3. If agreement is not reached with the contractor, the Cluster Capital Projects VP shall inform
the Supply Chain department to tender the preventive maintenance, security and storing
of project works and materials to another contractor via an independent agreement.
4. The NWC Project Manager shall escalate the preventing reasons to Cluster Capital
Projects VP to resolve these issues.
5. The NWC Project Manager shall keep monitoring the issues resolving to enable Partial
Initial Acceptance & Handover.
If the preventing reasons:
a. did not demise up to the project finish date, the requested part shall be processed
as part of the total Initial Acceptance & Handover.
b. demised before the project finish date:
i. The NWC Project Manager shall notify the contractor using (PMF-006-
SCO-069 Notification to Contractor about the Demise of Reasons
Prevented IA&HO).
ii. The committee shall perform the operational tests and initial acceptance
starting from (PMM-006-SCO-065-040 Perform Partial Initial Acceptance
Inspection).
Partial Initial Acceptance & Handover
Responsible:
Committee Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Supervision Consultant External Subject Matter Expert (if
Consulted:
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.7.4.7 PMM-008-SCO-065-058 Issue Warning Letter Due to Not Request for Inspection for
Snag List Rectification

If the Contractor does not request for inspecting the snag list fulfilment within 60 calendar days
from the snag list issuance:
1. NWC Project Manager shall prepare a warning letter for the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-021 Warning Letter due to Not Request for
Inspection for IHO Snag List Rectification).
2. NWC Project Manager shall raise the warning letter to Cluster Capital Projects VP for
issuance within 1 day.
3. Cluster Capital Projects VP shall issue the warning letter to the contractor within 1 day.

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Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: Supervision Consultant
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.7.4.8 PMM-008-SCO-065-059 Rectify the Snag List Items by Another Contractor on Main
Contractor Expense

If the Contractor, after 15 calendar days from the warning letter issuance, does not request for
re-inspecting the snag list fulfilment,
1. Cluster Capital Projects VP shall, within 1 day, request from Supply Chain department to
assign another Contractor to complete the rectification on the contractor expense.
2. If there is no available budget, the Cluster Capital Projects VP shall request for tendering
without budget. The request shall be attached with:
a. Detailed description for the snag list items (suitable for tendering which includes
but not limited to a clear scope, cost estimate and execution duration).
b. Total Initial Acceptance & Handover Certificate.
c. Warning Letter to Contractor.
3. After receiving the best bided price from the Supply Chain department, submit to Finance
department the following:
a. The price that selected by Supply Chain department.
b. The final invoice including a deduction equals to the cost of the selected price.
c. Initial Acceptance & Handover Certificate.
4. This submission is to enable Finance department to:
a. release an amount equals to the bided best price from the contract budget.
b. reserve and allocate the released amount for the best bidder.
c. Provide Cluster Projects Department with the number of budget reservation.
5. After receiving budget reservation number from Finance department prepare a Purchase
Requisition (PR) using (PMF-014-PRO-005 PR Approval Form) as per procedures:
a. (PMM-014-PRO-030-030 Prepare Purchase Requisition (PR)).
b. (PMM-014-PRO-030-040 Approve the Purchase Requisition (PR)).
6. After receiving the PO and Contract of the new contractor from Supply Chain department,
direct the new contractor to rectify the snag list items and request for inspecting the works.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted:
Cluster Contracts Administration Supervision Consultant
Manager
Contractor Cluster Supply Chain Manager
Informed:
NWC Project Manager Cluster Finance GM
6.7.4.9 PMM-006-SCO-065-060 Inspect Snag List Fulfilment

If the Contractor requests to inspect the Snag list fulfilment within (60 calendar days from the
snag list issuance) or (15 calendar days form the warning letter), the Initial Acceptance &
Handover Committee shall:

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1. Coordinate to conduct a site visit to perform the requested inspection.

2. Conduct the inspection.
3. Update the snag list by accepting the rectified snag list items.
If all snag list items are satisfactorily rectified:
1. all partial initial acceptance & handover committee members shall update and sign the
closure of the snag list which developed by (PMF-006-SCO-008 Snag List Template).
2. send a copy of closed snag list to the contractor to submit the final invoice.
If all/some snag list items are not satisfactorily rectified, go to (PMM-006-SCO-060-063 Issue
Warning Letter Due to Incomplete Snag List Rectification).
This procedure shall be completed within 7 days from the Contractor snag inspection request.
Partial Initial Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP

Consulted: Contractor
Contractor Cluster Asset Management Director
Informed:
Cluster Capital Projects VP Cluster O&M Director
Business Unit Construction Director Cluster Finance GM
6.7.4.10 PMM-006-SCO-065-063 Issue Warning Letter Due to Incomplete Snag List
Rectification

After inspecting snag list fulfilment and the inspection found that all/some snag list items are not
satisfactorily rectified:
1. Update the snag list.
2. the NWC Project Manager shall prepare a warning letter to Contractor to complete the
rectification within 15 calendar days using (PMF-006-SCO-031 Warning Letter due to
Incomplete IA&HO Snag List Rectification) then raise it to the Cluster Capital Projects VP
within 1 day.
3. The Cluster Capital Projects VP shall issue the warning letter within 1 day to the Contractor
to complete the rectification within 15 calendar days.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.7.4.11 PMM-006-SCO-065-066 Re-Inspect Snag List Fulfilment after 15 Days from Warning
Letter

After 15 calendar days form the warning letter (due to incomplete snag list rectification), the
Initial Acceptance & Handover Committee shall:
1. Coordinate to conduct a site visit for re-inspection.
2. Conduct the inspection.
3. Update the snag list by accepting the rectified snag list items.
if the re-inspection found that, all deficiencies are rectified:
1. all Partial Initial Acceptance & Handover Committee members shall update and sign the
closure of the snag list which developed by (PMF-006-SCO-008 Snag List Template).
2. send a copy of closed snag list to the contractor to submit the final invoice.

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if the re-inspection found that, not all deficiencies are rectified,

Cluster Capital Projects VP shall, within 1 day, request from Supply Chain department
assigning another Contractor to complete the rectification on contractor expense as per
procedure (PMM-006-SCO-060-059 Rectify the Snag List Items by Another Contractor on Main
Contractor Expense).
This procedure shall be completed within 7 days from the Contractor snag inspection request.
Partial Initial Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor
6.7.4.12 PMM-006-SCO-065-070 Inspect Rectified Snag List by Another Contractor at
Contractor’s Expense

After rectifying the outstanding snag list items by the new contractor and receiving a request to
inspect the outstanding deficiencies list fulfilment, the Initial Acceptance & Handover Committee
shall:
1. coordinate to conduct a site visit to perform the requested inspection.
2. complete the inspection within 7 days from the new Contractor snag inspection request.
After site visits completion:
If all/some snag list items found not satisfactorily rectified:
1. A re-inspection shall be performed after 10 days.
2. The work delay provisions in the new contract shall be applied against the new contractor.
If all snag list items found satisfactorily rectified:
The NWC Project Manager shall Direct the new contractor to submit his final invoice.
After processing the new contractor final invoice, NWC Project Manager shall
1. close the new contract as per the process (PMM-014-PRO-100 Close Contract).
2. NWC Project Manager shall notify the main contractor within 3 days:
a. by that the snag lists are closed on his expense.
b. to submit the final invoice.
Partial Initial Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor

6.8 PMM-006-SCO-069 Change a Partial Initial Acceptance & Handover into a

Total Initial Acceptance & Handover
6.8.1 Objective
The objective of this process is to ensure that changing a partial initial acceptance & handover into
a total initial acceptance & handover is applied just when all project works that not “initially accepted
& handed over” are formally eliminated from the project contract.
6.8.2 Policies
Policies for this process are:

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1. This process shall be performed only for projects that all its works which not “initially
accepted & handed over” are formally eliminated from the project contract.
2. The request to change the project status should be raised ONCE all project works that are
not “initially accepted & handed over” are formally eliminated from the project contract.
3. The date of the total initial acceptance & handover shall be the date of the latest partial initial
acceptance & handover.
4. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
6.8.3 Workflow Chart
Figure 6-11 PMM-006-SCO-069 Change a Partial Initial Acceptance & Handover into a Total Initial
Acceptance & Handover Workflow Chart

6.8.4 Procedures
6.8.4.1 PMM-006-SCO-069-010 Prepare a Request for Changing Partial Initial Acceptance
& Handover into a Total Initial Acceptance & Handover

If all project works that not “initially accepted & handed over” are formally eliminated from the
project contract,
1. NWC Project Manager, within 1 day, shall direct the supervision consultant to:
a. develop a report that explicitly describes all project works that not “initially accepted
& handed over” and are formally eliminated from the project contract.
b. initiate a request for changing the PARTIAL initial acceptance & handover into a
TOTAL initial acceptance & handover.
2. Supervision Consultant shall within 3 days from the direction:
a. Develop a report, using the form (PMF-006-SCO-080 Changing Partial IA&HO into
Total IA&HO Report), that explicitly states:
i. all project works that are not “initially accepted & handed over” are formally
eliminated from the project contract.
ii. all project works that “initially accepted & handed over” constitutes all the
project works (all project scope).
iii. a recommendation for changing the latest partial initial acceptance &
handover into a total initial acceptance & handover.
b. Initiate a request for changing the partial initial acceptance & handover into a total
initial acceptance & handover using the form (PMF-006-SCO-081 Changing Partial
IA&HO into Total IA&HO Approval Form).
3. The NWC Project Manager, within 2 days, shall:
a. review and approve the supervision consultant change report.
b. review and sign the request to change the partial initial acceptance & handover
into a total initial acceptance & handover.

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c. raise the request with its attachments to the Cluster Capital Projects VP.

Responsible: NWC Project Manager Supervision Consultant

Accountable: Business Unit Construction Director

Cluster Capital Projects VP
Consulted: Cluster Asset Management Director
Cluster Scheduling & Control Director
Cluster O&M Director
Contractor
Informed: Cluster Capital Projects VP

6.8.4.2 PMM-006-SCO-068-020 Endorse the Request for Changing Partial Initial

Acceptance & Handover into a Total Initial Acceptance & Handover

1. Review the report and the approval form (PMF-008-SCO-081 Changing Partial IA&HO into
Total IA&HO Approval Form).
2. Endorse/approve the approval form as per authority.
3. If the approval authority is by the Projects Execution VP, raise the report and the approval
form to the Projects Execution VP for review and approval.
This procedure shall be completed within 2 days.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Scheduling & Control GM Cluster Scheduling & Control Director
Consulted:
NWC Project Manager Contractor
Supervision Consultant Cluster Asset Management Director
Business Unit Construction Director Cluster O&M Director
NWC Project Manager
Informed: Projects Execution VP
Scheduling & Control GM
6.8.4.3 PMM-006-SCO-068-030 Approve the Request for Changing Partial Initial
Acceptance & Handover into a Total Initial Acceptance & Handover

If the approval authority is by the Projects Execution VP, he shall:

1. review the report and the approval form.
2. approve/reject the approval form.
3. forward the approval form to the Cluster Capital Projects VP for Changing Partial IA&HO
into Total IA&HO letter issuance.
This procedure to be completed within 3 days.

Responsible: Projects Execution VP

Accountable: Projects Execution VP

PMO GM
Consulted: Technical Services GM
Scheduling & Control GM
Informed: Cluster Capital Projects VP Scheduling & Control GM

6.8.4.4 PMM-006-SCO-068-040 Issue a Certificate for Changing Partial Initial Acceptance

& Handover into a Total Initial Acceptance & Handover

1. The NWC Project Manager shall prepare a letter for informing the contractor about
changing the partial initial acceptance & handover into a total initial acceptance & handover
using the form (PMF-006-SCO-082 Changing Partial IA&HO into Total IA&HO Certificate)
then raise it to the Cluster Capital Projects VP for approval.

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2. The Cluster Capital Projects VP shall review and endorse the form then shall send it to
the Projects Execution VP.
3. The Projects Execution VP shall review and approve the document then shall issue it to
the contractor.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP
Supervision Consultant
Consulted: Cluster Scheduling & Control Director
Business Unit Construction Director
Contractor
Informed: Cluster Asset Management Director
Supervision Consultant
Cluster O&M Director
Cluster Scheduling & Control Director
Scheduling & Control GM
Cluster Supply Chain Manager

6.9 PMM-006-SCO-070 Total Final Acceptance & Handover of Project Scope

6.9.1 Objective
The objective of this process is to formalize the Total Final Acceptance of the initially handed over
project works that deliver all the functions that project is created to deliver.
6.9.2 Policies
Policies for this process are:
1. All construction project scope must go through Final Acceptance process whether partially
or totally.
2. Final Handover processes should be described in Construction Tender Documents and in
the construction bids. It should address the following:
● whether the project works to be handed over on:
○ a system basis
○ a building completion basis
○ a total facility completion basis
○ a total project works completion basis
○ a combination of the above four.
● the sequence of handing over if the project works are not handed over on a total
project works completion basis.
3. The Total Final Acceptance & Handover Certificate shall be issued in only one original copy.
4. No completed part of project scope shall be finally accepted unless it is initially accepted
through initial acceptance process.
5. For projects that initially accepted, tested and operated, the Total Final Acceptance decision
shall be issued only if there is:
i. NO identified deficiency.
ii. NO open snag list item.
6. At the end of the Liability Period of projects that could not perform initial acceptance tests
and could not operate the project works due to reasons out of the contractor’s control:
i. perform final acceptance and handover process regardless of the demise of the
preventing reasons or not.
ii. release the Project Bank Guarantee (performance bond) to Contractor.
7. The final acceptance process including acceptance decision must be scheduled as per
contract conditions of the “liability” period.
8. The Project Bank Guarantee (performance bond) shall be released to the contractor at the
end of the Liability Period.

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9. If the Contractor does not submit a total final acceptance request by the liability period end
date:
i. a warning letter shall be issued to the contractor.
ii. If the contractor, after 15 calendar days from the warning letter issuance, does not
request for total Final Acceptance & Handover, the total final handover shall be
performed without contractor participation.
iii. If any snag list item that found during the total FA&HO process in the contactor
absence, the found snag list items shall be rectified on the contractor expense by
another contactor.
10. The total Final Acceptance & Handover Committee should fulfill the following:
i. The committee head must be assigned by the Cluster Capital Projects VP.
ii. The NWC Project Manager must be a member of every total Final Acceptance &
Handover committee.
iii. The committee, shall comprise at least one representative from the following
functions/departments:
● Cluster Projects department
● Cluster O&M department
● Cluster Asset Management department
● Cluster HSSE department
● Contractor
● Supervision Consultant (if still available for the project)
● Nominee by Scheduling & Control GM (as per below criteria)
● External Subject Matter Expert (if needed)
11. The Total Final Acceptance committee is not authorized to request implementing any new
requirement that was NOT previously included in the project scope.
12. The Cluster Capital Projects VP shall solicit from the Scheduling & Control GM a nomination
(from HQ or other clusters) to participate in the Final Acceptance & Handover Committee
for the following projects:
● All Water / Wastewater Treatment Plant Projects.
● Any other projects of a value ≥ 100M SAR.
13. The approval of:
● forming Final Acceptance & Handover Committee.
● Final Acceptance & Handover Certificate / Rejection Report / Survey Report:
shall be by:
● Projects Execution VP for:
○ All water / wastewater treatment plant projects.
○ Any other projects of a value ≥ 100M SAR.
● Cluster Capital Projects VP for any project < 100M SAR and is not a water /
wastewater treatment plant project.
14. The Total Final Acceptance & Handover Committee shall NOT be dissolved unless it
inspects and accepts all snag list items and closes the snag list.
15. The Final Acceptance process itself must be detail described in the NWC Project
Management Plan.
16. Existence of any Deficiencies at the time of inspection by the Total Final Acceptance &
Handover Committee should be followed by that:
i. the total final acceptance be postponed.

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ii. a snag list of deficiencies be issued to the Contractor that clearly describes the
deficiencies.
iii. the contractor be granted a period for rectifying the snag list.
17. Total Final Acceptance & Handover shall be formalized in writing.
18. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
6.9.3 Workflow Chart
Figure 6-12 PMM-006-SCO-070 Total Final Acceptance & Handover of Project Scope Workflow Chart

6.9.4 Procedures
6.9.4.1 PMM-006-SCO-070-010 Receive and Review the Total Final Acceptance Request

1. Receive the total final acceptance request from Contractor in the form (PMF-006-SCO-028
Contractor Total Final Acceptance & Handover Request) after the contractual “liability”
period finish.
2. Ensure the Contractor has stated in the request that:
a. The clear identification of the whole scope that requested for acceptance is
described as per BoQ description.
b. The requested scope was initially accepted.
c. The availability of technicians and labors required for the inspection.
d. The contractor authorized representative for the Total Final Acceptance &
Handover Committee.

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3. Check the completion of the request attachments which must include but not limited to the
following:
a. Initial acceptance certificate.
b. Closed snag list of the Initial Acceptance & Handover.
c. Project Contract including approved Variation Orders documents.
4. 14 days before the liability period end date, NWC Project Manager shall officially inform
the contractor to submit a “Total Final Acceptance & Handover Request” identifying his
nominees for the Total Final Acceptance & Handover Committee. The notification shall state
the contractual date for contractor request.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Contractor

Informed: Contractor

6.9.4.2 PMM-006-SCO-070-015 Issue Warning Letter due to Not Request for Total Final
Acceptance & Handover

If the Contractor does not request for Total Final Acceptance & Handover by the liability period
end date:
1. NWC Project Manager shall prepare a warning letter for the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-046 Warning Letter due to Not Request for
FA&HO). NWC Project Manager shall raise the warning letter to Cluster Capital Projects
VP for issuance.
2. Cluster Capital Projects VP shall issue the warning letter to the contractor.
3. If, after 15 calendar days from the warning letter issuance, the Contractor does not request
for Total Final Acceptance & Handover, the NWC Project Manager shall proceed in Total
Final Acceptance & Handover process by performing procedure (PMM-006-SCO-070-020
Request Forming a Total Final Acceptance & Handover Committee) without contractor
participation.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.9.4.3 PMM-006-SCO-070-020 Forming a Total Final Acceptance & Handover Committee

1. The NWC Project Manager shall request at least a representative from but not limited to
the following departments to participate in the Total Final Acceptance & Handover
Committee:
a. Cluster Projects department
b. Cluster O&M department
c. Cluster Asset Management department
d. Cluster HSSE department
e. Contractor
f. External Subject Matter Expert (if needed).
NWC Project Manager can request representatives from other departments as required.

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The NWC Project Manager shall be nominated in the committee.

2. NWC Project Manager shall:
a. prepare the request for Total Final Acceptance & Handover Committee forming
mentioning the received nominated persons beside the contractor authorized
representative and attaching Contractor acceptance request using (PMF-006-
SCO-016 Total Final Acceptance & Handover Committee Forming Request).
b. raise it to the Cluster Capital Projects VP within 2 days from the contractor request
submission date.
3. The Cluster Capital Projects VP within 2 days shall:
a. approve the committee forming request if the project value is < 100M SAR and is
not a water / wastewater treatment Plant projects.
OR
b. solicit from the Scheduling & Control GM additional nominations (from HQ or other
clusters) to participate in the Total Final Acceptance & Handover Committee if:
i. the project is water / wastewater treatment plant project.
ii. the project value is ≥ 100M SAR
c. endorse the committee forming request and raise it to the Projects Execution VP.
4. The Projects Execution VP within 3 days shall approve the committee forming request for:
a. All water / wastewater treatment plant projects.
b. Any other projects of a value ≥ 100M SAR.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Cluster O&M Director
Consulted: Business Unit Construction Director
Contractor
Cluster Scheduling & Control Director
External Subject Matter Expert (if
Cluster Technical Services Director
needed)
Cluster Asset Management Director
Scheduling & Control GM
Informed: Scheduling & Control GM

6.9.4.4 PMM-006-SCO-070-040 Perform Total Final Acceptance Inspection

1. After official committee formation, the committee shall conduct a meeting to review the
submitted documents to coordinate the committee inspection activities.
2. Conduct site visits to inspect the scope requested for total final acceptance. Inspection
shall include tests as required.
3. Total final acceptance inspection shall ensure that there are no deficiencies.
The inspection is to be completed within 14 days.
Total Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

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6.9.4.5 PMM-008-SCO-070-043 Issue Snag List

1. After site visits completion, the committee shall conduct a meeting to agree on the
inspection decision.
If any deficiency is found, the decision shall be postponing the total final acceptance as follows:
2. The committee shall prepare and issue to Contractor a snag list within 2 days from
inspection completion using (PMF-008-SCO-008 Snag List Template).
a. The list must clearly describe the deficiencies.
b. The contractor shall be granted 28 days for rectifying the outstanding deficiencies
then send a re-inspection request.
3. Keep the original copy of the Snag List to update it by acceptances for the rectified snag
list items then send a copy to the Contractor.
4. If no deficiency is monitored and the functional use of the project fully achieved, perform
(PMM-006-SCO-070-070 Issue Total Final Acceptance & Handover Certificate).
Total Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Informed: Contractor Business Unit Construction Director

6.9.4.6 PMM-006-SCO-070-046 Issue Warning Letter due to Not Request for Inspection for
Snag List Rectification

If the Contractor does not request for inspecting the snag list fulfilment within 28 days from the
snag list issuance:
1. NWC Project Manager shall prepare a warning letter to the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-022 Warning Letter due to Not Request for
Inspection for FA&HO Snag List Rectification).
2. NWC Project Manager shall raise the warning letter to Cluster Capital Projects VP for
issuance.
3. Cluster Capital Projects VP shall issue the warning letter to the contractor.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.9.4.7 PMM-006-SCO-070-048 Rectify the Snag List Items by Another Contractor on Main
Contractor Expense

If the Contractor, after 15 calendar days from the warning letter issuance, does not request for
re-inspecting the snag list fulfilment,
1. Cluster Capital Projects VP shall, within 1 day, request from Supply Chain department to
assign another Contractor to complete the rectification on Contractor expense.
2. If there is no available budget, the Cluster Capital Projects VP shall request for tendering
without budget. The request shall be attached with:
a. Detailed description for the snag list items (suitable for tendering which includes
but not limited to a clear scope, cost estimate and execution duration).

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b. Warning Letter to Contractor.

3. After receiving the best bided price from the Supply Chain department, submit the price
that selected by Supply Chain department to Finance department.
4. This submission is to enable Finance department to:
a. release an amount equals to the bided best price from the Project Bank Guarantee
(performance bond).
b. reserve and allocate the released amount for the best bidder.
c. provide Cluster Projects Department with the number of budget reservation.
5. After receiving budget reservation number from Finance department prepare a Purchase
Requisition (PR) using (PMF-014-PRO-005 PR Approval Form) as per procedures:
a. (PMM-014-PRO-030-030 Prepare Purchase Requisition (PR))
b. (PMM-014-PRO-030-040 Approve the Purchase Requisition (PR)).
6. After receiving the PO and Contract of the new contractor from Supply Chain department,
direct the new contractor to rectify the snag list items and request for inspecting the works.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.9.4.8 PMM-006-SCO-070-050 Inspect Snag List Items Fulfilment

1. If the contractor requests to inspect the snag list fulfilment within (28 days from the snag list
issuance) or (15 calendar days form the warning letter):
a. coordinate to conduct a site visit to perform the requested inspection.
b. complete the inspection within 7 days from the Contractor snag inspection request.
c. Update the snag list by accepting the rectified snag list items.
2. If all snag list items are satisfactorily rectified:
a. all total Final Acceptance & Handover Committee shall sign the closure of the snag
list which developed by (PMF-006-SCO-008 Snag List Template).
b. send a copy to the contractor who is, by the closed snag list, is entitled to request
the performance bond release.
3. If all/some snag list items are not satisfactorily rectified then go to (PMM-006-SCO-070-
053 Issue Warning Letter due to Not Complete Snag List Rectification).
Total Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Contractor Cluster Asset Management Director
Informed:
Cluster Capital Projects VP Cluster O&M Director
Business Unit Construction Director Cluster Finance GM
6.9.4.9 PMM-006-SCO-070-053 Issue Warning Letter due to Not Complete Snag List
Rectification

After inspecting snag list fulfilment and the inspection found that all/some snag list items are not
satisfactorily rectified:
1. the total FA&HO committee shall update the snag list.

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2. the NWC Project Manager shall prepare a warning letter to Contractor to complete the
rectification within 15 calendar days using (PMF-006-SCO-032 Warning Letter due to
Incomplete FA&HO Snag List Rectification) then raise it to the Cluster Capital Projects
VP.
3. the Cluster Capital Projects VP shall issue the warning letter to Contractor to complete
the rectification within 15 calendar days.
The snag list updating and warning letter issuance are to be completed within 2 days.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.9.4.10 PMM-006-SCO-070-056 Re-Inspect Snag List Fulfilment after 15 Days from Warning
Letter

1. After 15 calendar days form the warning letter (due to incomplete snag list rectification), the
Total Final Acceptance & Handover Committee shall:
a. coordinate to conduct a site visit for re-inspection.
b. complete the inspection within 7 days from the inspection date that stated in the
warning letter.
2. After completing the site visits of re-inspecting snag list fulfilment:
a. if the re-inspection found that, all deficiencies are rectified:
b. all Total Final Acceptance & Handover Committee members shall update and sign
the closure of the snag list which developed by (PMF-006-SCO-008 Snag List
Template).
c. send a copy of the closed snag list to the contractor.
d. if the re-inspection found that, not all deficiencies are rectified, Cluster Capital
Projects VP shall, within 1 day, request from Supply Chain department to assign
another Contractor to complete the rectification on contractor expense as per
procedure (PMM-006-SCO-070-048 Rectify the Snag List Items by Another
Contractor on Main Contractor Expense).
Total Final Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor
6.9.4.11 PMM-006-SCO-070-060 Inspect Total FA&HO Rectified Snag List by Another
Contractor at Contractor’s Expense

1. After rectifying the outstanding snag list items by the new contractor and receiving a request
to inspect the outstanding deficiencies list fulfilment, the Total Final Acceptance & Handover
Committee shall:
a. coordinate to conduct a site visit to perform the requested inspection.
b. complete the inspection within 7 days from the new Contractor snag inspection
request.
2. After site visits completion:
a. If all/some snag list items are found not satisfactorily rectified:

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i. A re-inspection shall be performed after 10 days.

ii. The work delay provisions in the new contract shall be applied against the
new contractor.
b. If all snag list items are found satisfactorily rectified:
c. NWC Project Manager shall Direct the new contractor to submit his final invoice.
d. After processing the new contractor final invoice, NWC Project Manager shall close
the new contract as per the process (PMM-014-PRO-100 Close Contract).
e. NWC Project Manager shall notify the main contractor about that the snag lists are
closed on his expense.
Total Final Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor
6.9.4.12 PMM-006-SCO-070-070 Issue Total Final Acceptance & Handover Certificate

1. In the meeting conducted by the committee after the site visits completion to agree on the
inspection decision, ensure that:
a. no deficiencies exist.
b. all snag list items are rectified and the snag list is closed.
c. the Contractor has archived and handed over all project documents.
2. Once the above three points are found fulfilled, the decision will be Total Final Acceptance.
3. The Committee shall prepare and send the total final accept certificate within 2 days using:
a. (PMF-006-SCO-013 Total Final Acceptance Certificate) if the functional use of the
project is fully achieved then send it to Cluster Capital Projects VP.
b. (PMF-006-SCO-075 Total Final Acceptance & Handover Certificate without Tests)
if the initial acceptance tests and project works operation could not be performed
due to reasons out of the contractor’s control.
4. Within 2 days, the Cluster Capital Projects VP shall:
a. approve the document if the project value is < 100M SAR and is not a water /
wastewater treatment Plant projects.
OR
b. endorse the document and raise it to Projects Execution VP if:
i. the project is water / wastewater treatment plant project.
ii. the project value is ≥ 100M SAR.
5. If the Projects Execution VP receives the document, he shall approve it within 2 days.
6. NWC Project Manager shall:
a. Send the approved final acceptance to the contractor.
b. notify related stakeholder and proceed about the project closure.
Total Final Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Projects Execution VP
NWC Project Manager
Accountable: Projects Execution VP/ Cluster Capital Projects VP
Cluster Contracts Administration
Consulted:
Manager

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Contractor
Informed: Cluster O&M Director
Business Unit Construction Director
Cluster Supply Chain Manager
Cluster Asset Management Director
6.10 PMM-006-SCO-075 Partial Final Acceptance & Handover of Project Scope
6.10.1 Objective
The objective of this process is to formalize the Partial Final Acceptance of the initially handed over
project works that deliver all the functions that project is created to deliver.
6.10.2 Policies
Policies for this process are:
1. All construction project scope must go through Final Acceptance process whether partially
or totally.
2. Final Handover processes should be described in Construction Tender Documents and in
the construction bids. It should address the following:
● whether the project works to be handed over on:
○ a system basis
○ a building completion basis
○ a total facility completion basis
○ a total project works completion basis
○ a combination of the above four.
● the sequence of handing over if the project works are not handed over on a total
project works completion basis.
3. The partial Final Acceptance & Handover certificate shall be issued in only one original
copy.
4. No completed part of project scope shall be finally accepted unless it is initially accepted
through initial acceptance process.
5. For projects that initially accepted, tested and operated, the Total Final Acceptance decision
shall be issued only if there is:
i. NO identified deficiency.
ii. NO open snag list item.
6. At the end of the Liability Period of projects that could not perform partial initial acceptance
tests and could not operate the project works due to reasons out of the contractor’s control
perform partial final acceptance and handover process regardless the demise of the
preventing reasons or not.
7. The partial final acceptance process including acceptance decision must be scheduled as
per contract conditions of the “liability” period.
8. If the Contractor does not submit a partial final acceptance request for a PART that initially
handed over by the liability period end date:
i. a warning letter shall be issued to the contractor.
ii. If the Contractor, after 15 calendar days from the warning letter issuance, does not
request for partial Final Acceptance & Handover, the partial final handover shall be
performed without contractor participation.
iii. If any snag list item that found during the partial FA&HO process in the contactor
absence, the found snag list items shall be rectified on the contractor expense by
another contactor.
9. The partial Final Acceptance & Handover committee should fulfill the following:
i. The committee heads must be assigned by the Cluster Capital Projects VP.
ii. The NWC Project Manager must be a member of every partial Final Acceptance &
Handover committee.

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iii. The committee, shall comprise at least one representative from the following
functions/departments:
● Cluster Projects department
● Cluster O&M department
● Cluster Asset Management department
● Cluster HSSE department
● Contractor
● Supervision Consultant (if still available for the project)
● Nominee by Scheduling & Control GM (as per below criteria)
● External Subject Matter Expert (if needed)
10. The Partial Final Acceptance committee is not authorized to request implementing a new
requirement that NOT previously included in the project scope.
11. The Cluster Capital Projects VP shall solicit from the Scheduling & Control GM a nomination
(from HQ or other clusters) to participate in the partial Final Acceptance & Handover
Committee for the following projects:
● All Water / Wastewater Treatment Plant Projects.
● Any other project of a value ≥ 100M SAR.
12. The approval of:
● forming Partial Final Acceptance & Handover Committee.
● Partial Final Acceptance & Handover Certificate / Rejection Report / Survey Report:
shall be by:
● Projects Execution VP for:
○ All water / wastewater treatment plant projects.
○ Any other projects of a value ≥ 100M SAR.
● Cluster Capital Projects VP for any project < 100M SAR and is not a water /
wastewater treatment plant project.
13. The Partial Final Acceptance & Handover Committee shall NOT be dissolved unless it
inspects and accepts all snag list items and closes the snag list.
14. The partial final acceptance process itself must be detail described in the NWC Project
Management Plan.
15. Existence of any Deficiencies at the time of inspection by the partial Final Acceptance &
Handover committee shall be followed by:
i. The partial final acceptance to be postponed.
ii. A snag list of deficiencies to be issued to the Contractor that clearly describes the
deficiencies.
iii. The contractor to be granted a period for rectifying the snag list.
16. Partial Final Acceptance & Handover shall be formalized in writing.
17. The last partial final acceptance and handover shall be considered as total final acceptance
and handover.
18. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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6.10.3 Workflow Chart

Figure 6-13 PMM-006-SCO-075 Partial Final Acceptance & Handover of Project Scope Workflow Chart

6.10.4 Procedures
6.10.4.1 PMM-006-SCO-075-010 Receive and Review the Partial Final Acceptance Request

1. Receive the partial final acceptance request from Contractor in the form (PMF-006-SCO-
029 Contractor Partial Final Acceptance & Handover Request) after the contractual “liability”
period finish.
2. Ensure the Contractor has stated in the request that:
a. The clear identification of the whole scope that is requested for acceptance is
described as per BoQ description.
b. The requested part of the scope was initially accepted.
c. The availability of technicians and labors required for the inspection.
d. The contractor authorized representative for the Partial Final Acceptance &
Handover Committee.
3. Check the completion of the request attachments which must include but not limited to the
following:
a. Partial initial acceptance certificate.
b. Closed snag list of the partial Initial Acceptance & Handover.
c. Project Contract including approved Variation Orders documents.
4. 14 days before the liability period end date, NWC Project Manager shall officially inform
the contractor to submit a “Partial Final Acceptance & Handover Request” identifying his

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nominees for the Partial Final Acceptance & Handover Committee. The notification shall
state the contractual date for contractor request.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Contractor

Informed: Contractor

6.10.4.2 PMM-006-SCO-075-015 Issue Warning Letter due to Not Request for Partial Final
Acceptance & Handover

If the Contractor does not request for Partial Final Acceptance & Handover by the liability period
end date:
1. NWC Project Manager shall prepare a warning letter to the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-046 Warning Letter due to Not Request for
FA&HO).
2. NWC Project Manager shall raise the warning letter to Cluster Capital Projects VP for
issuance.
3. Cluster Capital Projects VP shall issue the warning letter to the contractor.
4. If, after 15 calendar days from the warning letter issuance, the Contractor does not request
for Partial Final Acceptance & Handover, the NWC Project Manager shall proceed in Partial
Final Acceptance & Handover process by performing procedure (PMM-006-SCO-075-020
Request Forming a Partial Final Acceptance & Handover Committee) without contractor
participation.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.10.4.3 PMM-006-SCO-075-020 Forming a Partial Final Acceptance & Handover Committee

1. The NWC Project Manager shall request at least a representative from but not limited to
the following departments to participate in the Partial Final Acceptance & Handover
Committee:
a. Cluster Projects department
b. Cluster O&M department
c. Cluster Asset Management department
d. Cluster HSSE department
e. Contractor
f. External Subject Matter Expert (if needed).
NWC Project Manager can request representatives from other departments as required.
The NWC Project Manager shall be nominated in the committee.
2. NWC Project Manager shall:
a. prepare the request for Partial Final Acceptance & Handover Committee forming
mentioning the received nominated persons beside the contractor authorized
representative and attaching Contractor acceptance request using (PMF-006-
SCO-067 Partial Final Acceptance & Handover Committee Forming Request)

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b. raise it to the Cluster Capital Projects VP within 2 days from the contractor request
submission date.
3. The Cluster Capital Projects VP within 2 days shall:
a. approve the committee forming request if the project value is < 100M SAR and is not
a water / wastewater treatment Plant projects.
OR
b. solicit from the Scheduling & Control GM a nomination (from HQ or other clusters) to
participate in the Partial Final Acceptance & Handover Committee if:
i. the project is water / wastewater treatment plant project.
ii. the project value is ≥ 100M SAR
c. endorse the committee forming request and raise it to the Projects Execution VP.
4. The Projects Execution VP within 3 days shall approve the committee forming request for:
a. All water / wastewater treatment plant projects.
b. Any other projects of a value ≥ 100M SAR.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP / Cluster Capital Projects VP
Cluster O&M Director
Consulted: Business Unit Construction Director
Contractor
Cluster Scheduling & Control Director
External Subject Matter Expert (if
Cluster Technical Services Director
needed)
Cluster Asset Management Director
Scheduling & Control GM
Informed: Scheduling & Control GM

6.10.4.4 PMM-006-SCO-075-040 Perform Partial Final Acceptance Inspection

1. After official committee formation, the committee shall conduct a meeting to review the
submitted documents to coordinate the committee inspection activities.
2. Conduct site visits to inspect the scope requested for partial final acceptance. Inspection
shall include tests as required.
3. Partial final acceptance inspection shall ensure that there are no deficiencies.
The inspection is to be completed within 14 days.
Partial Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Informed: Cluster Capital Projects VP Business Unit Construction Director

6.10.4.5 PMM-006-SCO-075-043 Issue Snag List

1. After site visits completion, the committee shall conduct a meeting to agree on the
inspection decision.
2. If any deficiency found, the decision shall be postponing the partial final acceptance as
follows:
3. The committee shall prepare and issue to Contractor a snag list within 2 days from
inspection completion using (PMF-006-SCO-008 Snag List Template).
a. The list must clearly describe the deficiencies.

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b. The contractor shall be granted 28 days for rectifying the outstanding deficiencies
then send a re-inspection request.
c. Keep the original copy of the Snag List to update it by acceptances for the rectified
snag list items then send a copy to the Contractor.
4. If no deficiency is monitored and the functional use of the project fully achieved, perform
(PMM-006-SCO-070-070 Issue Total Final Acceptance & Handover Certificate).
Partial Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Informed: Contractor Business Unit Construction Director

6.10.4.6 PMM-006-SCO-075-046 Issue Warning Letter due to Not Request for Inspection for
Snag List Rectification

If the Contractor does not request for inspecting the snag list fulfilment within 28 days from the
snag list issuance:
1. NWC Project Manager shall prepare a warning letter to the contractor to submit the request
within 15 calendar days using (PMF-006-SCO-022 Warning Letter due to Not Request for
Inspection for FHO Snag List Rectification).
2. NWC Project Manager shall raise the warning letter to Cluster Capital Projects VP for
issuance.
3. Cluster Capital Projects VP shall issue the warning letter to the contractor.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.10.4.7 PMM-006-SCO-075-048 Rectify the Snag List Items by Another Contractor on Main
Contractor Expense

If the Contractor, after 15 calendar days from the warning letter issuance, does not request for
re-inspecting the snag list fulfilment,
1. Cluster Capital Projects VP shall, within 1 day, request from Supply Chain department to
assign another Contractor to complete the rectification on Contractor expense.
2. If there is no available budget, the Cluster Capital Projects VP shall request for tendering
without budget. The request shall be attached with:
a. Detailed description for the snag list items (suitable for tendering which includes
but not limited to a clear scope, cost estimate and execution duration).
b. Warning Letter to Contractor.
3. After receiving the best bided price from the Supply Chain department, submit the price
that selected by Supply Chain department to Finance department.
4. This submission is to enable Finance department to:
a. release an amount equals to the bided best price.
b. reserve and allocate the released amount for the best bidder.
c. provide Cluster Projects Department with the number of budget reservation.

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5. After receiving budget reservation number from Finance department prepare a Purchase
Requisition (PR) using (PMF-014-PRO-005 PR Approval Form) as per procedures:
a. (PMM-014-PRO-030-030 Prepare Purchase Requisition (PR))
b. (PMM-014-PRO-030-040 Approve the Purchase Requisition (PR)).
6. After receiving the PO and Contract of the new contractor from Supply Chain department,
direct the new contractor to rectify the snag list items and request for inspecting the works.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.10.4.8 PMM-008-SCO-075-050 Inspect Snag List Items Fulfilment

If the contractor requests to inspect the snag list fulfilment within (28 days from the snag list
issuance) or (15 calendar days form the warning letter):
1. coordinate to conduct a site visit to perform the requested inspection.
2. complete the inspection within 7 days from the Contractor snag inspection request.
3. Update the snag list by accepting the rectified snag list items.
a. If all snag list items are satisfactorily rectified:
4. all partial Final Acceptance & Handover Committee shall sign the closure of the snag list
which developed by (PMF-006-SCO-008 Snag List Template).
5. send a copy of closed snag list to the contractor.
6. If all/some snag list items are not satisfactorily rectified then go to (PMM-006-SCO-075-
053 Issue Warning Letter due to Not Complete Snag List Rectification).
Partial Final Acceptance & Handover
Responsible:
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Contractor Cluster Asset Management Director
Informed:
Cluster Capital Projects VP Cluster O&M Director
Business Unit Construction Director Cluster Finance GM
6.10.4.9 PMM-006-SCO-075-053 Issue Warning Letter due to Not Complete Snag List
Rectification

After inspecting snag list fulfilment and the inspection found that all/some snag list items are
NOT satisfactorily rectified:
1. the partial FA&HO committee shall update the snag list.
2. the NWC Project Manager shall prepare a warning letter to Contractor to complete the
rectification within 15 calendar days using (PMF-006-SCO-032 Warning Letter due to
Incomplete FA&HO Snag List Rectification) then raise it to the Cluster Capital Projects VP.
3. the Cluster Capital Projects VP shall issue the warning letter to Contractor to complete the
rectification within 15 calendar days.
The snag list updating and warning letter issuance are to be completed within 2 days.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

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Cluster Contracts Administration

Consulted: NWC Project Manager
Manager
Contractor
Informed: Cluster Supply Chain Manager
NWC Project Manager
6.10.4.10 PMM-006-SCO-075-056 Re-Inspect Snag List Fulfilment after 15 Days from Warning
Letter

After 15 calendar days form the warning letter (due to incomplete snag list rectification),
1. the Partial Final Acceptance & Handover Committee shall:
a. coordinate to conduct a site visit for re-inspection.
b. complete the inspection within 7 days from the inspection date that stated in the
warning letter.
2. After completing the site visits of re-inspecting snag list fulfilment:
if the re-inspection found that, all deficiencies are rectified:
3. all partial Final Acceptance & Handover Committee members shall update and sign the
closure of the snag list which developed by (PMF-006-SCO-008 Snag List Template).
4. send a copy of closed snag list to the contractor.
5. if the re-inspection found that, not all deficiencies are rectified, Cluster Capital Projects VP
shall, within 1 day, request from Supply Chain department to assign another Contractor to
complete the rectification on contractor expense as per procedure (PMM-006-SCO-075-
048 Rectify the Snag List Items by Another Contractor on Main Contractor Expense).
Partial Final Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)
Cluster Asset Management Director Cluster Supply Chain Manager
Informed:
Cluster O&M Director Contractor
6.10.4.11 PMM-006-SCO-075-060 Inspect Partial FA&HO Rectified Snag List by Another
Contractor at Contractor’s Expense

After rectifying the outstanding snag list items by the new contractor and receiving a request to
inspect the outstanding deficiencies list fulfilment,
1. the Partial Final Acceptance & Handover Committee shall:
a. coordinate to conduct a site visit to perform the requested inspection.
b. complete the inspection within 7 days from the new Contractor snag inspection
request.
After site visits completion:
a. If all/some snag list items found not satisfactorily rectified:
i. A re-inspection shall be performed after 10 days.
ii. The work delay provisions in the new contract shall be applied against the
new contractor.
b. If all snag list items found satisfactorily rectified NWC Project Manager shall notify
the main contractor that the snag lists are closed on his expense.
Partial Final Acceptance & Handover
Responsible: NWC Project Manager
Committee
Accountable: Cluster Capital Projects VP
External Subject Matter Expert (if
Consulted:
needed)

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Cluster Asset Management Director Cluster Supply Chain Manager

Informed:
Cluster O&M Director Contractor
6.10.4.12 PMM-006-SCO-075-070 Issue Partial Final Acceptance & Handover Certificate

1. In the meeting conducted by the committee after the site visits completion to agree on the
inspection decision, ensure that:
a. no deficiencies exist.
b. all snag list items are rectified and the snag list is closed.
c. the Contractor has archived and handed over all project documents.
2. Once the above three points are found fulfilled, the decision will be Partial Final Acceptance.
3. The Committee shall prepare and send the Partial final accept certificate within 2 days
using:
a. (PMF-006-SCO-030 Partial Final Acceptance & Handover Certificate) if the
functional use of the project is fully achieved then send it to Cluster Capital Projects
VP for endorsement.
b. (PMF-006-SCO-076 Partial Final Acceptance & Handover Certificate without
Tests) if the initial acceptance tests and project works operation could not be
performed due to reasons out of the contractor’s control.
4. Within 2 days, the Cluster Capital Projects VP shall:
a. approve the document if the project value is < 100M SAR and is not a water /
wastewater treatment Plant projects.
OR
b. endorse the document and raise it to Projects Execution VP if:
1. the project is water / wastewater treatment plant project.
2. the project value is ≥ 100M SAR.
5. If the Projects Execution VP receives the document, he shall approve it within 2 days.
6. NWC Project Manager shall send the approved final acceptance to the contractor.
Partial Final Acceptance & Handover
Responsible: Cluster Capital Projects VP
Committee
Projects Execution VP
NWC Project Manager
Accountable: Projects Execution VP/ Cluster Capital Projects VP
Cluster Contracts Administration
Consulted:
Manager
Contractor
Informed: Cluster O&M Director
Business Unit Construction Director
Cluster Supply Chain Manager
Cluster Asset Management Director
6.11 PMM-006-SCO-080 Consultant Scope Acceptance Certificate
6.11.1 Objective
The objective of this process is to formalize the acceptance of the services and works that provided
and performed by a consultant.
6.11.2 Policies
Policies for this process are:
1. In every design, supervision and technical support project a “Consultant Scope Acceptance
Certificate” must be issued to the Consultant after verifying every service, works and
deliverables in the project.
2. “Consultant Scope Acceptance Certificate” processes should be described in the tender
documents.
3. “Consultant Scope Acceptance Certificate” shall NOT be issued to the consultant before:

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i. The project finish date.

ii. Closing all consultant snag list items (if any).
4. The final invoice shall NOT be approved by NWC Project Manager for payment to the
consultant unless “Consultant Scope Acceptance Certificate” is issued to the consultant.
NO “Consultant Scope Acceptance Certificate”, NO final invoice.
5. The work and services verification shall include at least ensuring:
● The project works is performed as per the approved project scope.
● All contractual project deliverables are submitted such as studies, drawings, reports,
databases, etc.
6.11.3 Workflow Chart
Figure 6 -14 PMM-006-SCO-080 Consultant Scope Acceptance Certificate Workflow Chart

6.11.4 Procedures
6.11.4.1 PMM-006-SCO-080-010 Receive and Review the Consultant Scope Acceptance
Request

1. Receive the scope acceptance request from Consultant (PMF-006-SCO-061 Consultant

Scope Acceptance Request).
2. Ensure that the consultant has stated in the request that:
a. The completion of the scope that requested for acceptance.
b. The consultant representative for the Scope Acceptance Meeting.
3. Check the completion of the request attachments which must include but not limited to the
following:
a. All approved variation orders.
b. All Processed Claims.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Design Consultant / Supervision
Consulted:
Consultant / Technical Services
Consultant
Informed: Business Unit Construction Director

6.11.4.2 PMM-006-SCO-080-020 Conduct Consultant Scope Acceptance Meeting

1. Conduct a meeting with the consultant to review the submitted documents and ensure that
the consultant has submitted evidences for:
a. The project works are performed as per the approved project scope.
b. All studies, reports, drawings, specifications, records that contractually to be
provided by the consultant is submitted to NWC Project Manager.

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c. Every physical or digital asset that contractually to be provided by the consultant is

handed over to NWC Project Manager such as databases, computers, databases,
etc.
d. Every contractual activity by the consultant is performed such as training,
workshops, researches, etc.
2. For design projects, this review shall be performed using (PMF-006-SCO-004 Engineering
Closeout Checklist).
3. This meeting shall be attended by:
a. NWC Project Manager
b. Any relevant party from the cluster projects departments such as Business Unit
Construction Director, Technical Services department, PMO, etc.
c. Design Consultant / Supervision Consultant / Technical Services Consultant.
d. External Subject Matter Expert (if needed).
This procedure shall be completed within 10 days from the consultant request.
Relevant Parties from Cluster Projects
Responsible:
NWC Project Manager Department
Cluster Capital Projects VP / HQ External Subject Matter Expert
Department GM Design Consultant / Supervision
Business Unit Construction Director Consultant / Technical Services
Consultant
Accountable: Cluster Capital Projects VP / HQ Department GM

Consulted: Cluster Scheduling & Control Director

Informed: Cluster Scheduling & Control Director

6.11.4.3 PMM-006-SCO-080-030 Issue the Consultant Scope Acceptance Certificate

If the performed scope found acceptable:

1. NWC Project Manager, within 2 days, shall:
2. prepare the Consultant Scope Acceptance Certificate using the (PMF-006-SCO-062
Consultant Scope Acceptance Certificate).
3. raise the certificate to the Cluster Capital Projects VP / HQ Department GM for approval.
4. Cluster Capital Projects VP / HQ Department GM, within 1 day, shall approve the certificate
and issue it to the consultant.
If the performed scope found NOT acceptable,
5. NWC Project Manager shall prepare a snag list to the consultant using (PMF-006-SCO-
008 Snag List Template).
6. the consultant shall resubmit a new request attaching evidences for the fulfilment of the
snag list.
If the snag list items found:
a. appropriately fulfilled, the first bullet in this procedure shall be performed.
b. not fulfilled, the second bullet in this procedure shall be repeated.
Cluster Capital Projects VP / HQ
Responsible: NWC Project Manager
Department GM
Accountable: Cluster Capital Projects VP
Relevant Parties from Cluster Projects
Consulted: External Subject Matter Expert
Department

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Design Consultant / Supervision

Informed:
Consultant / Technical Services
Consultant

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Section 7 - Project Value Engineering

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7 Project Value Engineering

The subject of this particular section of the Project Management Manual (PMM) is Value Engineering.
Value Engineering (VE) is a systematic process used by a multidisciplinary team to improve the values of a
project, product, or process through the analysis of functions and resource. Value is represented as follows:
Performance (Function)
Value ~
Resources
Value Engineering ultimate objective is Optimization and Rationalization of projects/programs resources to
enhance performance and cost optimizations of studied projects/programs.
The Value Engineering Section is a governance procedure of Value Engineering processes as a cascade of
NWC Polices and Strategies, covering the following:
● Raise awareness and knowledge about Value Engineering and factors that affect them.
● Introduce standard methods to perform Value Engineering studies in a workshop format for a project
or a program.
● Formalize processes of Value Engineering studies and implementations
NWC shall apply Value Engineering to the following:
● A project with value equals or greater than SAR 20 million.
● A project that produces a standard design to be constructed repeatedly with value equals or greater
than SAR 5 million.
● A Design & Construction Project in a Design & Build PLC.
The Value Engineering study shall be conducted on the 30% design package during:
● Design stage in Design-Bid-Build PLC.
● Initial planning stage in Design & Build PLC.
The Value Engineering study adequate selected outcomes, shall be incorporated for:
● Design projects (in Design-Bid-Build PLCs), on the very next design package after the 30% design
package by the design consultant.
● Design & Construction projects (in a Design & Build PLC), on the 30% design package by cluster
technical services consultant before tendering. The final approval for the 30% design package shall be
conditioned by this incorporation.
The Value Engineering studies shall be managed by:
● HQ Value Engineering team:
○ All Water / Wastewater treatment plants
○ All transmission lines above 30M SAR
● Cluster Value Engineering Team:
○ All transmission lines below 30M SAR
○ All other projects.
All Value Engineering Studies shall be approved by the Value Engineering Department in the HQ.
All cost values mentioned above are the cost estimate without VAT.
However, additional Value Engineering studies can be performed during project life. Later Value Engineering
studies shall include constructability reviews, material selection, etc.
Value Engineering studies shall result in a Value Engineering Report with recommendation(s) as outcomes of
the VE study. Design Consultant/ Concerned technical party/ project owner, shall review, select, and validate
adequate Value Engineering recommendation(s)/outcome(s) out of the recommendation(s), included in VE
Report (listed in Implementation Sheet) or general recommendations and must ensure adequacy and
compatibility with, NWC policies, relevant regulations, technical specifications, designs requirements and
execution requirements. Acceptance or Partial acceptance of any of Value Engineering Recommendations,
MUST not relief Design Consultant or Design Reviewer/ modifier of his liabilities as solely responsible of the
design.

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For VE studied projects, Final Implementation Sheet after final design review, shall be shared with the value
engineering department to trace the changes and modifications (if any) and reasons/explanations, in case of
changes/modifications and/or deletion. Final Implementation Sheet shall be added to VE Lessons Learned
registry and VE database.
During the construction, the Contractor may request to conduct a value engineering study to identify any
potential performance improvements and unnecessary costs. At then, the NWC project manager and the
Supervision Consultant shall evaluate whether to conduct a value engineering study or not. If a Value
Engineering Study is to be conducted, the Value Engineering Methodologies and subsequent processes shall
be followed. The incorporation of the Value Engineering agreed adequate ideas shall be processed as per
(PMM-007-INT-060 Variation Control) process.
Value Engineering studies are led by a:
1. Certified Value Specialist (CVS®).
OR
2. Value Engineering qualified expert who is certified in applying Value Engineering Methodology and
demonstrated competency in the application of the VM Job Plan.
Team members of every Value Engineering workshop shall have a good understanding of VE principles.
The high-level process map for the Project Value Engineering is illustrated below in Figure 7-1:

Figure 7-1 High-Level Process Map for Project Value Engineering

7.1 PMM-007-VEN-010 Plan Project Value Engineering Management

7.1.1 Objective
The objective of this process is to ensure that the performed Value Engineering on a projects scope
is properly performed by a multidisciplinary team and is improving the values of a project, product,
or process.
7.1.2 Policies
Policies for this process are:

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1. Each project must have a separate section for value engineering management plan in the
NWC Project Management Plan, created by the NWC Project Manager and the Cluster
Value Engineering Lead and used as the guiding document for internal and external team
throughout the project.
2. The approved NWC Project Management Plan, including the value engineering
management plan section, shall be included in the tender document when NWC is procuring
Second Party services and products in support of project execution.
3. Second parties shall create their own management plans (design and/or construction) for
the project as part of their contract mobilization work. These management plans must
comply with the value engineering management requirements defined in the NWC Project
Management Plan and shall be approved by NWC before project execution activities
commence.
4. The Value engineering Management Plans in PMPs of NWC, Design and Construction must
be kept up to date throughout the project life cycle.
7.1.3 Workflow Chart
Figure 7-2 PMM-007-VEN-010 Plan Project Value Engineering Management Workflow Chart

7.1.4 Procedures
7.1.4.1 PMM-007-VEN-010-010 Develop the Project Value Engineering Management Plan
Section of the NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001 NWC Project Management Plan)
to develop the NWC Project Management Plan which includes a dedicated section for
Value Engineering management. Cluster Value Engineering Lead and NWC Project
Manager shall develop this section in PMP.
2. Update the Project Value Engineering Section throughout the lifecycle with the approved
changed using procedure (PMM-005-INT-020-040 Update the NWC Project Management
Plan).

Responsible: NWC Project Manager Cluster Value Engineering Lead

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Accountable: NWC Project Manager

Cluster Technical Services Director Business Unit Construction Director
Consulted:
Cluster Capital Projects VP Technical Services GM
Technical Services GM
Informed: Technical Services GM
Cluster Capital Projects VP
7.1.4.2 PMM-005-VEN-010-020 Approve the Project Value Engineering Management Plan
Section of the NWC Project Management Plan

1. Review the Value Engineering Management Plan Section of NWC Project Management
Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project Value Engineering Management Plan Section.

Responsible: Cluster Technical Services Director

Accountable: Cluster Capital Projects VP

Cluster Value Engineering Lead Cluster Capital Projects VP
Consulted:
NWC Project Manager VE Studies & Implementation Manager
Business Unit Construction Director VE Director
Cluster Value Engineering Lead Cluster Capital Projects VP
Informed:
NWC Project Manager VE Director
7.1.4.3 PMM-007-VEN-010-040 Develop Project Value Engineering Management Plan
Section in the Design PMP

1. Develop Project Value Engineering Management Plan Section in the Design Project
Management Plan using (PMF-007-INT-002 Design Project Management Plan).
2. Ensure that the Project Value Engineering Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Value Engineering Management
Plan Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Value Engineering Management Plan Section.
4. Include the Project Value Engineering Management Plan Section in the Project Design
Project Management Plan to be approved as part of the Project Design Project
Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Technical Services Director
Cluster Value Engineering Lead
Informed: NWC Project Manager

7.1.4.4 PMM-007-VEN-010-060 Develop Project Value Engineering Management Plan

Section in the Construction / “Design & Construction” PMP

1. Develop Project Value Engineering Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-007-INT-003 Design
& Construction Management Plan).
b. Construction Project Management Plan using (PMF-007-INT-004 Construction
Project Management Plan).
2. Ensure that the Project Value Engineering Management Plan Section in the Project
Construction Project Management Plan is in alignment with the Project Value Engineering
Management Plan Section in the NWC Project Management Plan.

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3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Value Engineering Management Plan Section.
4. Include the Project Value Engineering Management Plan Section in the Project
Construction Project Management Plan to be approved as part of the Project Construction
Project Management Plan.

Responsible: Contractor

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Supervision Consultant
Cluster Value Engineering Lead
Informed: NWC Project Manager

7.2 PMM-007-VEN-020 Plan for Value Engineering Study

7.2.1 Objective
The objective of this process is to create the appropriate plan for Value Engineering Study for a
project to ensure best and timely Value Engineering outcomes.
7.2.2 Policies
Policies for this process are:
1. The members of every Value Engineering study must be selected to represent a diverse
background such as technical design, operation and maintenance, cost estimation,
procurement, material, construction, and quality.
2. The Value Engineering Study shall follow the Six Phases Value methodology Job plan
defined by SAVE International.
3. A Value Engineering study scope statement must be developed. The statement must clearly
define the limits and exclusions of the study.
4. Typically, the followings are used to measure the effectiveness of Value Engineering
studies:
i. Total number of Value Engineering studies/year
ii. Total cost of projects studied
iii. Avg. % of cost avoidance identified
iv. Avg. number of generated ideas in each workshop
v. Avg. number of developed ideas in each study
vi. Avg. number of agreed ideas in each implementation sheet
vii. Avg. cost of Value Engineering studies
viii. Avg. Return on Investment (ROI) of a Value Engineering study

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7.2.3 Workflow Chart

Figure 7-3 PMM-007-VEN-020 Plan for Value Engineering Study Workflow Chart

7.2.4 Procedures
7.2.4.1 PMM-007-VEN-020-010 Request for Value Engineering Study

1. Upon receiving the 30% design package, the NWC Project Manager shall prepare and
send a Value Engineering Study Request using (PMF-007-VEN-007 Value Engineering
Study Request Form) to Cluster Value Engineering Lead to process a VE study on the
submitted design package
2. The Cluster Value Engineering Lead shall ensure the completion of the documents of
design package within 5 days.

Responsible: NWC Project Manager Cluster Value Engineering Lead

Accountable: Cluster Technical Services Director

Consulted: NWC Project Manager Design Consultant

Informed: VE Director

7.2.4.2 PMM-007-VEN-020-020 Define the Scope of Value Engineering Study

1. Develop the Scope Statement of Value Engineering Study.

2. Define the limits of the study.
3. Identify Value Engineering study goals and project objectives.
The scope statement shall clarify, whenever required, the overlaps, boundaries, and exclusions
of the study.
VE Specialist
Responsible: VE Studies & Implementation Manager
Cluster Value Engineering Lead
Accountable: VE Director
Design Consultant
Consulted: NWC Project Manager
Technical Services GM
VE Director
Cluster Technical Services Director
Informed: VE Director NWC Project Manager

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7.2.4.3 PMM-007-VEN-020-030 Collect and Compile Required Information for the VE Study

1. Information sources are mainly:

a. People sources which include, but not limited to, operation, Designer, cost or
estimating group, maintenance, Contractors, and Consultants, suppliers.
b. Documentation sources which include, but not limited to, drawings, project
specifications, bid documents and project plans, design standards, regulations,
Value Engineering Data base.
2. Collect information related to the project. For information examples, see the (PMF-009-
VEN-019 Value Engineering Study Guidelines).
VE Specialist
Responsible: VE Studies & Implementation Manager
Cluster Value Engineering Lead
Accountable: VE Director
Design Consultant Cluster Technical Support Manager
Consulted:
Technical Services GM NWC Project Manager
Cluster Technical Services Director VE Study Team Leader (Facilitator)
Informed: VE Director NWC Project Manager

7.2.4.4 PMM-009-VEN-020-040 Approve Value Engineering Team Composition

1. The VE Study Team Leader (Facilitator) shall submit the Value Engineering Team
composition for approval.
2. VE Specialist shall, in coordination with the Cluster Value Engineering Lead, review the
Value Engineering Team composition.
3. VE Director shall approve the team of the Value Engineering Team composition.
VE Study Team Leader (Facilitator)
Responsible: VE Studies & Implementation Manager
VE Specialist
VE Director
Cluster Value Engineering Lead
Accountable: VE Director

Consulted: VE Director Cluster Technical Services Director

Informed: VE Study Team Leader (Facilitator)

7.3 PMM-007 VEN-030 Prepare and Conduct the Value Engineering Workshop
7.3.1 Objective
The objective of this process is to conduct a Value Engineering workshop as planned and develop
the Value Engineering study report.
7.3.2 Policies
Policies for this process are:
1. A Value Engineering workshop must be conducted for Every Value Engineering study.
2. In case of similar projects with similar technical conditions and circumstances, a careful
representation samples, can be selected based on thorough assessment to be studied. The
outcomes shall be reflected on the assessed similar projects.
3. Every Value Engineering workshop should be conducted with the attendance of:
● Project or Program Manager
● Value Engineering division representatives
● Relevant technical disciplinary experts
● Cost analyst
● Technical Services Dept. reps.

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● Relevant Cluster reps

● O&M reps.
● Asset Management Reps.
● Technical Services Dept. reps.
● Design Consultant
● Important Stakeholders
4. The Value Engineering Study workshop shall include the following phased activities:
i. Information Phase
ii. Function Analysis Phase
iii. Creative Phase
iv. Evaluation Phase
v. Development Phase
vi. Presentation Phase
5. In the beginning of every value engineering workshop the following should be introduced:
i. Confirmation of the study scope, study goals and project objectives.
ii. Explanation of the Six Phases of the Job Plan workshop activities within the study.
iii. Confirmation of any missing information with the design consultant.
iv. Request for any additional information from the design consultant.
v. The information gathering techniques to obtain the data needed.
6. Each value alternative (independently or in conjunction with other proposed alternatives)
must be generated, evaluated, and developed.
7. Every Value Engineering Study should have a study specific report upon completion of the
study. If the study consists of multiple projects, each project shall have a separate report.
8. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
7.3.3 Workflow Chart
Figure 7-4 PMM-007-VEN-030 Prepare and Conduct the Value Engineering Workshop Workflow Chart

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7.3.4 Procedures
7.3.4.1 PMM-007-VEN-030-010 Schedule Value Engineering Study

1. The VE Specialist shall, in coordination with the Cluster Value Engineering Lead and VE
Study Team Leader (Facilitator), schedule the Value Engineering study/workshop.
2. Use the (PMF-007-VEN-019 Value Engineering Study Guidelines) as a guide in the whole
process.
VE Study Team Leader (Facilitator) Cluster Value Engineering Lead
Responsible:
VE Specialist VE Studies & Implementation Manager
Accountable: VE Director
Cluster Technical Services Director
Consulted: Design Consultant
Cluster Technical Support Manager
VE Director
NWC Project Manager
Design Consultant Technical Support Director
Informed:
NWC Project Manager Cluster O&M Director
VE Director Cluster Asset Management Director
Engineering Director Scheduling & Control GM
7.3.4.2 PMM-007-VEN-030-020 Prepare for Value Engineering Workshop

1. Use the (PMF-007-VEN-019 Value Engineering Study Guidelines) as a guide in the whole
process.
2. VE Study Team Leader (Facilitator) shall:
a. prepare Value and Data Models.
b. develop Workshop Agenda using (PMF-007-VEN-014 Value Engineering Study
Agenda) and distribute it before the workshop.
3. In collaboration with VE Specialist and Cluster Value Engineering Lead, prepare a list of
the workshop attendees (PMF-007-VEN-015 Value Engineering Study Attendees) which
shall, selectively according to facilitator assessment of the study, include but not limited to:
i. Value Engineering Team.
ii. HQ attendees:
1. Value Engineering Dept. Reps.
2. Technical Services Dept. Reps.
iii. Cluster attendees:
1. Value Engineering Dept. Reps.
2. O&M Reps.
3. Asset Management Reps.
4. Technical Services Dept. Reps.
5. Projects Scheduling & Control Dept. Reps.
6. HSSE Dept. Reps.
7. PMO Dept. Reps.
8. NWC Project Manager
9. Design Consultant
10. Contractor (for EPC projects)
4. The VE Specialist shall invite the identified workshop attendees to participate in the
workshop based on need, necessity and nature of the study.
VE Study Team Leader (Facilitator) Cluster Value Engineering Lead
Responsible:
VE Specialist VE Studies & Implementation Manager

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Accountable: VE Director
NWC Project Manager VE Director
Consulted:
Cluster Capital Projects VP Cluster Technical Services Director
NWC Project Manager VE Director
Informed:
Design Consultant Value Engineering Team
Cluster Technical Services Director Cluster Capital Projects VP
7.3.4.3 PMM-007-VEN-030-030 Organize Logistics for Value Engineering Study

1. VE Study can be conducted either in-presence or online based on resources availability

and assessment of VE facilitator.
2. Regarding in-presence workshops, the VE Study Team Leader (Facilitator), in coordination
with VE Specialist and Cluster Value Engineering Lead, shall Secure a workshop venue
off-site with proper logistics. See (PMF-007-VEN-019 Value Engineering Study Guidelines).

Responsible: VE Study Team Leader (Facilitator) Cluster Value Engineering Lead

Accountable: Cluster Technical Services Director

VE Specialist NWC Project Manager
Consulted:
VE Studies & Implementation Manager VE Director
Design Consultant VE Director
Informed:
Cluster Technical Services Director Value Engineering Team
7.3.4.4 PMM-007-VEN-030-040 Conduct Value Engineering Workshop

1. Use the (PMF-007-VEN-019 Value Engineering Study Guidelines) as a guide in the whole
process.
2. Conduct the Value Engineering workshop following the “Six-Step Value Engineering Job
Plan”. For the detailed steps see (PMF-007-VEN-019 Value Engineering Study Guidelines).
3. During workshop, use:
a. (PMF-007-VEN-003 Functions List Example)
b. (PMF-007-VEN-005 Value Engineering Agenda Sample)
c. (PMF-007-VEN-018 Value Engineering Study Functions List)
d. (PMF-007-VEN-016 Value Engineering Study Creativity List)
e. (PMF-007-VEN-017 Value Engineering Study Evaluation List)
f. (PMF-007-VEN-012 Value Engineering Idea Development Sheet)
VE Study Team Leader (Facilitator)
Responsible: NWC Project Manager
Value Engineering Team
Design Consultant
VE Specialist
VE Studies & Implementation Manager
Cluster Value Engineering Lead
Accountable: VE Director
Cluster Capital Projects VP Engineering Director
Consulted:
Cluster Technical Services Director Technical Support Director
Informed: Cluster Capital Projects VP Technical Services GM

7.4 PMM-007-VEN-040 Value Engineering Study Report Preparation and

Approval
7.4.1 Objective
The objective of this process is to develop and submit the Value Engineering Study Report for
approval and to identify the adequate selected ideas to be implemented into the project design
package.

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7.4.2 Policies
Policies for this process are:
1. After every Value Engineering workshop and before communicating to the design
consultant:
i. a draft for “Value Engineering Study Report” must be developed and submitted to NWC
for review and feedback.
ii. The submitted report must include cost estimates, life cycle cost analysis (where
applicable), technical suggestions and sketches.
iii. After incorporating the NWC feedback, the report must be finalized and submitted for
approval.
2. The Cluster Technical Support / Design Consultant, shall evaluate and select adequate and
applicable recommendations which can be incorporated into design.
7.4.3 Workflow Chart
Figure 7-5 PMM-007-VEN-040 Value Engineering Study Report Preparation and Approval Workflow Chart

7.4.4 Procedures
7.4.4.1 PMM-007-VEN-040-010 Develop the Value Engineering Study Report

1. Develop a draft Value Engineering Study Report using (PMF-007-VEN-009 Value

Engineering Study Report).
2. Submit the draft report to the Cluster Value Engineering Lead.

Responsible: VE Study Team Leader (Facilitator)

Accountable: NWC Project Manager

VE Specialist NWC Project Manager
Consulted:
Cluster Value Engineering Lead Design Consultant
Informed: Cluster Value Engineering Lead

7.4.4.2 PMM-007-VEN-040-020 Review and Finalize the Value Engineering Study Report

1. The Cluster Value Engineering Lead shall forward the draft Value Engineering Study
Report to the VE Specialist.
2. The VE Specialist shall:
a. review the draft report
b. prepare a feedback based on the review findings.

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c. send the draft report with feedback for comments incorporation.

3. VE Study Team Leader (Facilitator) shall:
a. incorporate the feedback.
b. develop the final Value Engineering Study Report.
c. send the final report to Cluster Value Engineering Lead.
4. The Cluster Value Engineering Lead shall forward the finalized Value Engineering Study
Report to the VE Specialist.
5. The VE Specialist shall review the finalized report.
6. The Cluster Value Engineering Lead shall initiate the (PMF-009-VEN-013 Value
Engineering Implementation Sheet) and attach it to the report
Cluster Value Engineering Lead VE Study Team Leader (Facilitator)
Responsible:
VE Specialist VE Studies & Implementation Manager
Accountable: VE Director
Cluster Technical Services Director
Consulted: Engineering Director
Cluster Value Engineering Lead
Technical Support Director
NWC Project Manager
VE Director
Design Consultant
VE Director
Informed: Cluster Value Engineering Lead
Technical Services GM
7.4.4.3 PMM-007-VEN-040-030 Approve the Value Engineering Study at Cluster

1. Prepare a Value Engineering Study Approval Form using (PMF-007-VEN-011 Value

Engineering Study Approval Form)
2. Collect cluster endorsements.
3. Send Value Engineering Study Approval Form with the Value Engineering study to the VE
Studies & Implementation Manager.

Responsible: Cluster Value Engineering Lead

Accountable: Cluster Technical Services Director

Consulted: Cluster Technical Services Director VE Studies & Implementation Manager

Informed: VE Studies & Implementation Manager

7.4.4.4 PMM-007-VEN-040-040 Approve the Value Engineering Study at HQ

1. The VE Studies & Implementation Manager shall endorse the VE Approval Form (for the
VE Study) and send it to the VE Director for endorsement.
2. The VE Director shall endorse the VE Approval Form (for the VE Study) and redirect the
approved Value Engineering Study to the Cluster Technical Services Director.

Responsible: VE Studies & Implementation Manager VE Director

Accountable: VE Director
VE Consultant
Consulted: Cluster Value Engineering Lead
NWC Project Manager
Cluster Value Engineering Lead
Informed: Cluster Technical Services Director
VE Specialist

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7.5 PMM-007-VEN-050 Final Approval of VE Study and Monitoring and

Controlling the Value Improvement
7.5.1 Objective
The objective of this process is to:
● Grant final approval of Value Engineering Study and incorporation of the adequate selected
Value Engineering Outcomes.
● Monitor the results of the value engineering studies and update the Value Engineering
database.
7.5.2 Policies
Policies for this process are:
1. The Actual value improvement results and cost avoidance to be monitored and Calculated
at project level and published on the value engineering database.
2. The Final Implementation sheet shall be submitted to ensure the consideration of the value
engineering studies adequate selected Value Engineering outcomes and to be part of the
Value Engineering lessons learned register.
7.5.3 Workflow Chart
Figure 7-6 PMM-007-VEN-050 Final Approval of VE Study and Monitoring and Controlling the Value
Improvement Workflow Chart

7.5.4 Procedures
7.5.4.1 PMM-007-VEN-050-010 Prepare a Value Engineering Final Implementation Sheet

1. Prepare a Value Engineering Final Implementation sheet using (PMF-007-VEN-020 Value

Engineering Final Implementation Sheet) to describe in detail:
a. The implementation of adequate selected value engineering ideas into the design
package and their cost impact.
b. The not implemented value engineering ideas with explanation(s).
2. Submit the Value Engineering Final Implementation sheet along:
a. with revised 30% design package (for EPC Projects).
b. with the next submitted design package (for Design Bid Build Projects).

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Responsible: Design Consultant

Accountable: NWC Project Manager

Cluster Value Engineering Lead
Consulted: Engineering Director
Cluster Technical Services Director
VE Specialist
VE Studies & Implementation Manager
NWC Project Manager Cluster Technical Services Director
Informed:
Cluster Value Engineering Lead VE Director
7.5.4.2 PMM-007-VEN-050-020 Review the Final Implementation of the Value Engineering
Study Through the Next Design Review at Cluster

1. Receive the revised/next design package with the value engineering final implementation
sheet.
2. Review revised/next design package to ensure final implementation of the adequate
selected value engineering ideas.
3. Review the actual cost avoidance or additional costs.
4. Send to the VE Specialist:
a. revised/next design package
b. Value Engineering final implementation Sheet
c. review results
d. recommended decisions

Responsible: Cluster Technical Services Director

Accountable: NWC Project Manager

Consulted: VE Specialist Design Consultant

Informed: VE Specialist VE Director

7.5.4.3 PMM-007-VEN-050-030 Final Approval of the Value Engineering Study and Final
Implementation Sheet at HQ

1. The VE Studies & Implementation Manager shall endorse the VE Approval Form (for Final
Implementation Sheet) and send it to the VE Director for endorsement.
2. The VE Director shall endorse the VE Approval Form (for Final Implementation Sheet) and
send it to the Technical Services GM for final approval.
3. The Technical Services GM shall approve the VE Approval Form and send it to the VE
Director.
4. The VE Director shall redirect the approved Value Engineering Study to the Cluster
Technical Services Director.
VE Studies & Implementation Manager
Responsible: Technical Services GM
VE Director
Accountable: Technical Services GM
VE Consultant
Consulted: Cluster Value Engineering Lead
NWC Project Manager
Cluster Value Engineering Lead
Informed: Cluster Technical Services Director
VE Specialist

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7.5.4.4 PMM-007-VEN-050-040 Update and Publish the Value Engineering Database

1. Update the Value Engineering database with the implemented Value Engineering ideas
and its actual results/lessons learned.
2. Publish the updated Value Engineering database to Technical Services teams at HQ and
clusters to be considered for current and future projects.
3. Forward applicable lessons learned to the Continuous Improvement Manager.

Responsible: VE Specialist VE Studies & Implementation Manager

Accountable: VE Director
Cluster Value Engineering Lead Cluster Technical Services Director
Consulted:
VE Director Cluster Value Engineering Lead
VE Director
Informed: Technical Services GM
Cluster Value Engineering Lead
7.5.4.5 PMM-007-VEN-050-050 Value Engineering Study During “Construction” / “Design &
Construction” Stage

1. During the construction, if a value engineering study is requested (whether by NWC team,
contractor or supervision consultant) to identify any potential performance improvements
and/or unnecessary costs, the NWC project manager and the Supervision Consultant shall:
a. Evaluate whether to conduct a value engineering study or not.
b. Notify the VE Director about the decision.
2. If the decision is to conduct a Value Engineering study, the Value Engineering shall be
performed as per the Value Engineering processes in Value Engineering section in PMM.
3. The implementation of the agreed Value Engineering Implementation sheet shall be via
(PMM-007-INT-060 Variation Control) process.
Contractor
Responsible: Supervision Consultant
NWC Project Manager
Accountable: NWC Project Manager
VE Specialist Cluster Project Control Section Head
Consulted:
VE Studies & Implementation Manager Cluster Risk Section Head
VE Director Cluster Contracts Administration
Technical Services GM Manager
Cluster Value Engineering Lead Cluster Engineering Manager
Cluster Technical Services Director Cluster Strategic Planning Manager
Cluster Cost Estimation Specialist Supervision Consultant
Cluster Scheduling Section Head Contractor
Cluster Value Engineering Lead VE Director
Informed:
Cluster Technical Services Director Technical Services GM

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Section 8 - Project Schedule Management

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8 Project Schedule Management

The subject of this particular section of the Project Management Manual (PMM) is Project Schedule
Management.
During the project life cycle, the project is described by one of the following statuses. Each status has its
unique identification.
Table 8-1 Project Status

Project Status Description

Under Initial Handing This status means the initial handing over process is not completed.
Over

Initially Handed Over This status means the initial handing over process is completed.

Finally Handed Over This status means the final handing over process is completed.

Closed This status means that the entire project has been completed.

Cancelled This status indicates that a decision has been made to terminate the project.

Suspended This status indicates that a decision has been made to suspend the project.

Withdrawn This status indicates that the project is withdrawn from the Contractor.

Troubled This status indicates that one or more of the following is true:
● the variance between planned and actual progress is more than 25%.
● the project time overrun is more than 25%.
● there is no approved schedule after 60 calendar days from site
handover to Contractor.

Delayed This status indicates that 10% < variance between planned and actual
progress ≤ 25%.

On Schedule This status indicates that the variance between planned and actual progress
≤ 10%.

Ahead of Schedule This status indicates that the actual progress exceeds the planned progress.

The project schedule is developed through five versions, which known as “Level”. The below two tables
describe the key feature of every schedule level over the two project life cycles.

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Table 8-2 Schedule Levels Layout Over Project Life Cycle (Design Bid Build)
Project Life Cycle
NWC Five-Year
Project
Projects Portfolio Initial Tender for Constructio Testing & Handover &
Strategic Tender for Design Design
Planning Planning Construction n Commissioning Closeout
Planning
Level 1 Schedule for the project.
Covers all stages in project life cycle.
Level 1
Created by NWC and National Master Plan Consultant.
Schedule
Created during Five-Year Planning and elaborated in next stages.
Created in milestone level to be used: 1. as a basis for next levels. 2. for reporting to high management
Level 2 Schedule for Level 2 Schedule for
Design activities. Construction
Covers Design activities.
Stage. Covers Construction,
Created by Design Testing &
Consultant. Commissioning and
Created During Handover & Closeout
Level 2 Tender for Design stages.
Schedule Stage. Created by
Created to be a part Contractor.
of the technical Created During
proposal. Tender for
Construction Stage.
Created to be a part of

238 of 433
the technical
proposal.
Level 3 Schedule for Level 3 Schedule for Construction activities.
Design activities. Covers Construction, Testing & Commissioning
Covers Design Stage. and Handover & Closeout stages.
Created by Design Created by Contractor.
Level 3
Consultant. Created at the beginning of Construction Stage.
Schedule
Created at the beginning Created to be used for project control.
of Design Stage.
Created to be used for
project control.
Level 4 Schedule for Construction activities (if
required).
Covers in greater detail, certain area of concern
in Construction, Testing & Commissioning and
Handover & Closeout stages.
Created by Contractor.
Level 4
Created During Construction or Testing &
Schedule
Commissioning Stages.
Created to address specific situations that
demand a greater level of detailing than that
available on Level 3 schedule such as
mobilization, 3 months look ahead or a case
with an external party.
Level 5 Schedule for Construction activities.
Covers Construction, Testing & Commissioning

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and Handover & Closeout stages.
Created by Contractor.
Created During Construction or Testing &
Commissioning Stages.
Level 5
Created to quantify the works in tables at
Schedule
maximum practical details on hourly, daily or
weekly basis such as procured material, design
deliverables, a specific work deliverable, etc. to
be used by site execution persons. Dates/times
are mentioned in the table headers instead of
time scale.
 01/01/2024
Table 8-3 Schedule Levels Layout Over Project Life Cycle (Design & Build EPC)
NWC Five-Year Project Life Cycle
Projects Portfolio Project Strategic Design and Testing &
Initial Planning Tender Handover & Closeout
Planning Planning Construction (EPC) Commissioning
Level 1 Schedule for the project.
Covers all stages in project life cycle.
Level 1
Created by NWC and National Master Plan Consultant.
Schedule
Created during Five-Year Planning and elaborated in next stages.
Created in milestone level to be used: 1. as a basis for next levels. 2. for reporting to high management
Level 2 Schedule for
EPC activities.
Covers Design,
Construction, Testing &
Level 2 Commissioning and
Schedule Handover & Closeout
stages.
Created by Contractor.
Created During Tender
Stage.

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Created to be a part of
the technical proposal.
Level 3 Schedule for EPC activities.
Covers Design, Construction, Testing & Commissioning and Handover &
Level 3 Closeout stages.
Schedule Created by Contractor.
Created at the beginning of Design & Construction Stage.
Section 8 - Project Schedule Management

Created to be used for project control.

Level 4 Schedule for EPC activities (if required).
Covers in greater detail, a certain area of concern in Design &
Construction, Testing & Commissioning and Handover & Closeout stages.
Created by Contractor.
Level 4
Created during Design & Construction or Testing & Commissioning
Schedule
Stages.
Created to address specific situations that demand a greater level of
detailing than that available on Level 3 schedule such as mobilization, 3
months look ahead or a case with an external party.
Level 5 Schedule for Construction activities.
Covers Design & Construction, Testing & Commissioning and Handover
& Closeout stages.
Created by Contractor.
Created during Design & Construction or Testing & Commissioning

00_PTS_MN_002.03
Level 5
Stages.
Schedule
Created to quantify the works in tables at maximum practical details on
hourly, daily or weekly basis such as procured material, design
deliverables, a specific work deliverable, etc. to be used by site execution
persons. Dates/times are mentioned in the table headers instead of time
scale.
 Section 8 - Project Schedule Management

The high-level process map for the Project Schedule Management is illustrated below in Figure 8-1:

Figure 8-1 High-Level Process Map for Project Schedule

Management

8.1 PMM-008-SCH-010 Plan Project Schedule Management

8.1.1 Objective
The objective of this process is to develop the Schedule Management Plan Section of the NWC
Project Management Plan and ensure that all schedules are timely and properly developed. This
process also covers planning for monitoring schedule update throughout the project life cycle.
8.1.2 Policies
Policies for this process are:
1. Each project must have a separate section for schedule management in the NWC Project
Management Plan, created by the NWC Project Manager and the Cluster Scheduling
Section Head and used as the guiding document for internal and external team throughout
the project.
2. Second Parties must create their own management plans (design and/or construction)
including Schedule Management Plan Section for the project as part of their contract
mobilization work. These management plans must comply with the schedule management
requirements defined in the NWC Project Management Plan and must be approved by NWC
during mobilization period.
3. Second Parties must create their own management plans (design and/or construction)
including Schedule Management Plan Section for the project as part of their contract
mobilization work. These management plans must comply with the schedule management

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requirements defined in the NWC Project Management Plan and must be approved by NWC
during mobilization period.
4. The Schedule Management Plans in PMPs of NWC, Design and Construction must be kept
up to date throughout the project life cycle.
5. Second parties must provide the design project / construction project / design & construction
project detailed schedule level 3 within 15 calendar days from project site handover date for
NWC review and approval.
6. The Schedule management plan must cover the Schedule Levels as planned in tables (10-
2) and (10-3) from strategic period to project closeout based on the stage deliverables,
required accuracy and any applicable other factors. These tables introduces the schedule
levels layout over the project life cycle.

8.1.3 Workflow Chart

Figure 8-2 PMM-008-SCH-010 Plan Project Schedule Management Workflow Chart

8.1.4 Procedures
8.1.4.1 PMM-008-SCH-010-015 Develop the Project Schedule Management Plan Section
of the NWC Project Management Plan

1. The NWC Project Manager and Cluster Scheduling Section Head shall use (PMF-005-INT-
001_03 NWC Project Management Plan.docx)
2. To develop the NWC Project Management Plan which includes a dedicated section for
Schedule management.
Update the Project Schedule Section throughout the lifecycle with the approved changes using
procedure (PMM-005-INT-020-040 Update the NWC Project Management Plan).

Responsible: NWC Project Manager Cluster Scheduling Section Head

Accountable: NWC Project Manager

Cluster Capital Projects VP Business Unit Construction Director
Consulted:
Cluster Scheduling & Control Director Scheduling Control Director

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Cluster Scheduling & Control Director

Informed:
Cluster Capital Projects VP
Scheduling Control Director
8.1.4.2 PMM-008-SCH-010-020 Approve the Project Schedule Management Plan Section
of NWC Project Management Plan

1. Review the Schedule Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project Schedule Management Plan Section.
Cluster Scheduling &
Responsible:
Control Director
Accountable: Cluster Capital Projects VP
Cluster Scheduling Section
Consulted:
Head
Cluster Capital Projects VP
NWC Project Manager
Scheduling Control Director
Business Unit Construction
Director
Cluster Scheduling Section
Informed: Cluster Capital Projects VP
Head
Scheduling Control Director
NWC Project Manager
8.1.4.3 PMM-008-SCH-010-040 Develop Project Schedule Management Plan Section in the
Design PMP

Develop Project Schedule Management Plan Section in the Design Project Management Plan
using (PMF-005-INT-002_03 Design Project Management Plan.docx).
Ensure that the Project Schedule Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Schedule Management Plan Section in the
NWC Project Management Plan.
Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Schedule Management Plan Section.
Include the Project Schedule Management Plan Section in the Design Project Management
Plan to be approved as part of the Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Scheduling Section Head
Cluster Technical Services Director
Informed: NWC Project Manager

8.1.4.4 PMM-008-SCH-010-060 Develop Project Schedule Management Plan Section in the

Construction / “Design & Construction” PMP

1. Develop Project Schedule Management Plan Section in the:

Design & Construction Project Management Plan using (PMF-005-INT-003_03 Design &
Construction Management Plan.docx).
Construction Project Management Plan using (PMF-005-INT-004_03 Construction Project
Management Plan.docx).
2. Ensure that the Project Schedule Management Plan Section in the Construction / Design &
construction Project Management Plan is in alignment with the Project Schedule
Management Plan Section in the NWC Project Management Plan.

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3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Schedule Management Plan Section.
4. Include the Project Schedule Management Plan Section in the Construction / Design &
construction Project Management Plan to be approved as part of the Construction / Design
& construction Project Management Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

8.2 PMM-008-SCH-015 Schedule Management for Initial Planning

8.2.1 Objective
The objective of this process is to update the activities in level 1 schedule for initial planning to be
used in tender for design stage and tender for construction.
8.2.2 Policies
Policies for this process are:
1. The level 1 schedule of every project must be updated at initial planning.
2. The level 1 schedule should be:
i. created and managed by the “Primavera P6” application.
ii. uploaded to the NWC P6 EPPM Platform.
3. Level 1 schedule must be changed if only there is an approved variation.
4. The Level 1 schedule must be updated weekly during the initial planning stage by the actual
progress.
5. The NWC Project Manager, liaising with the Cluster Scheduling Section Head, must weekly
review the updated level 1 schedule to identify whether the activities are on-schedule or not.
6. At the end of every stage (before the stage gate review), NWC Project Manager shall ensure
updating the level 1 schedule by the new information (actuals) in the completed stage.
8.2.3 Workflow Chart
Figure 8-3 PMM-008-SCH-015 Schedule Management for Initial Planning Workflow Chart

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8.2.4 Procedures
8.2.4.1 PMM-008-SCH-015-010 Update the Level 1 Schedule for a New Project

1. To tender a project, enter the project level 1 schedule (from the Business Case) in the NWC
P6 EPPM Platform.
2. If there are new requirements in a new project, the Cluster Scheduling Section Head shall
update the level 1 schedule and send the updated level 1 schedule to Cluster Scheduling
& Control Director for approval.

Responsible: NWC Project Manager Cluster Scheduling Section Head

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Supply Chain Manager
Cluster Technical Services Director
Informed: Projects Portfolio Planning Director Scheduling & Control GM

8.2.4.2 PMM-008-SCH-015-020 Approve the Updated Project Level 1 Schedule for a New
Project

1. Review and approve the updated project level 1 schedule.

2. Send the approved updated project level 1 schedule to NWC Project Manager for inclusion
in the:
a. Project RFP documents.
b. NWC Project Management Plan.

Responsible: Cluster Scheduling & Control Director

Accountable: Cluster Capital Projects VP

Consulted: Scheduling Section Head

Informed: Cluster Capital Projects VP

8.2.4.3 PMM-008-SCH-015-030 Revise Project Level 1 Schedule of a Withdrawn Project

3. To retender a withdrawn project, revise the project level 1 schedule then upload it to the
NWC P6 EPPM Platform.
4. Send the revised level 1 schedule to Cluster Scheduling & Control Director for
endorsement.

Responsible: NWC Project Manager Cluster Scheduling Section Head

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Supply Chain Manager
Cluster Technical Services Director
Informed: Projects Portfolio Planning Director Scheduling & Control GM

8.2.4.4 PMM-008-SCH-015-040 Approve the Revised Project Level 1 Schedule of a

Withdrawn Project

5. Cluster Scheduling & Control Director shall review and endorse the project level 1
schedule.
Send the approved project level 1 schedule to NWC Project Manager for inclusion in the project
RFP documents.

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The Scheduling & Control GM shall review and approve the project level 1 schedule that
included in the Project RFP documents using PMF-014-PRO-057_03 RFP Approval Form -
Withdrawn Project.docx).
Cluster Scheduling &
Responsible: Scheduling & Control GM
Control Director
Accountable: Scheduling & Control GM

Consulted: Scheduling Control Director Scheduling Section Head

Informed: Cluster Capital Projects VP

8.3 PMM-008-SCH-020 Schedule Management for Tendering

8.3.1 Objective
The objective of this process is to develop a detailed activity schedule for:
● Tender for design stage
● Tender for construction stage
● Tender for Design and Construction stage
to monitor and control these schedules within the agreed duration of each stage.
8.3.2 Policies
Policies for this process are:
1. The development and management of the detailed procurement schedule for the tendering
activities is a responsibility of the Supply Chain department. However, the NWC Project
Manager, Cluster Scheduling & Control Director and Cluster Technical Services Director
should participate in the schedule development.
2. The Design Consultant / Contractor shall submit a level 2 schedule for project in his
technical bid proposal.
3. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
8.3.3 Workflow Chart
Figure 8-4 PMM-008-SCH-020 Schedule Management for Tendering Workflow Chart

8.3.4 Procedures
8.3.4.1 PMM-008-SCH-020-005 Include Scheduling Requirements and Technical
Evaluation in the Design/Construction Tender Documents

1. Include the requirements in the Design/Construction RFP:

a. “The Design Consultant / Contractor is required to create his own Schedule
Management Plan and must submit it during the contractual mobilization period”.

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b. “The Design Consultants / Contractors are required to create level 2 schedule and
submit it as a component of the bid documents”.
For:
a. contractual scheduling requirements.
b. schedule reporting requirements for design and construction contracts.
do the following:
i. Develop the two requirements using (EPM-KPP-PR-000005_03 Project Contractor
Requirements for Planning & Scheduling Procedure.pdf) as a guideline.
ii. Ensure the inclusion of the two requirements in the RFP.
2. Ensure that the technical evaluation criteria for submitted technical proposals includes
schedule assessment criteria, which addresses:
a. the project requirements.
b. the past performance of the bidders.
Refer to the file (PMF-008-SCH-017 Schedule Level Definitions).

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster Scheduling Section Head
Consulted:
Cluster Technical Services Director
Scheduling Control Director
Technical Evaluation Committee
Technical Evaluation Committee
Informed:
Scheduling Control Director
8.3.4.2 PMM-008-SCH-020-010 Participate in Developing the Procurement Schedule

1. As tendering process is a Supply Chain department’s responsibility, participate during

every tendering stage with Supply Chain team in the preparation of procurement schedule
as follows:
a. Identifying the procurement activities.
b. Adjusting the tendering stage duration appropriately as needed and obtain approvals for
these adjustments if required.
c. Identifying the relationships and dependencies between procurement activities.
d. Identifying the duration of each procurement activity.
e. Developing the procurement schedule.
2. Collect a copy of the procurement schedule.
Cluster Technical Services Director
Responsible: Cluster Scheduling Section Head
NWC Project Manager
Accountable: Business Unit Construction Director
Cluster Supply Chain Manager
Consulted: Projects Portfolio Planning Director
Business Unit Construction Director
Informed: Business Unit Construction Director Cluster Supply Chain Manager

8.3.4.3 PMM-008-SCH-020-015 Develop Level 2 Schedule in the Technical Proposal

1. Create the level 2 schedule and include it his technical proposal.

2. During developing the level 2 schedule the, consider the followings from the tender
documents:
a. contractual scheduling requirements.

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b. schedule reporting requirements for design and construction contracts.

Responsible: Design Consultant / Contractor

Accountable: Design Consultant / Contractor

Consulted: Technical Evaluation Committee

Informed: Technical Evaluation Committee

8.3.4.4 PMM-008-SCH-020-020 Participate in Updating the Procurement Schedule with

Actual Progress and in Controlling the Schedule

1. Participate during every tendering stage with Supply Chain team in:
a. weekly updating to the procurement schedule.
b. Identifying the impacts and proposing the mitigations on the procurement schedule.
2. Participate during every tendering stage with Supply Chain team in:
a. Checking the progress and identifying any ahead or behind schedule activities.
b. For behind schedule procurement activities, agreeing an appropriate course of action
with the Procurement Team to bring the procurement schedule back on track (recovery).
c. Adjusting the tendering stage duration appropriately as needed and obtain approvals for
these adjustments if required.
3. Collect a copy of the:
a. updated procurement schedule.
b. progress status.
c. procurement recovery schedule (if any).

Responsible: NWC Project Manager Cluster Scheduling Section Head

Accountable: Business Unit Construction Director

Cluster Supply Chain Manager
Consulted: Projects Portfolio Planning Director
Business Unit Construction Director
Informed: Business Unit Construction Director Cluster Supply Chain Manager

8.4 PMM-008-SCH-030 Schedule Management for Design

8.4.1 Objective
The objective of this process is to develop a detailed activity schedule for the Design Stage of the
project and subsequently to monitor and control this activity schedule within the agreed duration of
the stage.
8.4.2 Policies
Policies for this process are:
1. The detailed level 3 schedule of design projects should cover all the activities in the design
stage.
2. The Contractor must submit a level 3 schedule for the design stage at maximum 15 calendar
days from the work commencement date.
3. The level 3 schedule should be:
i. created and managed by the “Primavera P6” application.
ii. uploaded to the NWC P6 EPPM Platform.
4. The approved level 3 schedule must be updated on weekly and monthly basis during the
project to show actual progress of the project activities.

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5. The Supervision Consultant and NWC Project Manager are responsible for ensuring the
validity of all weekly and monthly updated level 3 schedule.
6. Entering INCORRECT progress information (actual progress, planned progress, SV and
SPI) shall be considered a violation and shall be formally investigated.
7. The level 3 schedule baseline can be changed only if there is an approved variation (i.e.,
create a new baseline).
8. In case of creating a recovery schedule by the Contractor, NWC acceptance on the recovery
schedule does not make it a baseline. All progress indicators and measures are still taken
from the approved baseline NOT the recovery schedule.
8.4.3 Workflow Chart
Figure 8-5 PMM-008-SCH-030 Schedule Management for Design Workflow Chart

8.4.4 Procedures
8.4.4.1 PMM-008-SCH-030-020 Develop and Submit Level 3 Design Schedule

1. After design contract award, the Design Consultant shall use “Primavera P6” to:
a. identify the project activities clearly.
b. show the intended relationships and dependencies between the activities.
c. load the resources for activities.
d. show the duration of each activity.
2. include a procurement schedule for critical material and equipment using (PMF-008-SCH-
003 Procurement Schedule for Critical Materials and Equipment).
• develop the detailed level 3 schedule (in Primavera P6 format).
Develop and attach the narrative report using (PMF-008-SCH-009_03 Sch. Manual App3
Narrative Report Template) to the submitted level 3 schedule.
Explain to the Supervision Consultant and NWC Project Manager:
• the adopted assumptions

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• how the contractual constraints are respected in the level 3 schedule.

• how the contract BoQ is distributed across the level 3 schedule.
Within maximum 15 calendar days after the work commencement date, submit the detailed
level 3 design schedule to the NWC for review and approval.
Refer to the file (PMF-008-SCH-017 Schedule Level Definitions).

Responsible: Design Consultant

Accountable: NWC Project Manager

Cluster Technical Services Director
Consulted: NWC Project Manager
Cluster Scheduling Section Head
NWC Project Manager
Informed: Cluster Scheduling Section Head
Cluster Technical Services Director
8.4.4.2 PMM-008-SCH-030-030 Approve Level 3 Design Schedule at Cluster

1. Within 15 calendar days from submission date, the design level 3 schedule shall be
reviewed and endorsed at cluster as follows:
a. The NWC Project Manager shall receive the design level 3 schedule and redirect it to
the Cluster Scheduling & Control Director in 1 day.
b. The Cluster Scheduling & Control Director shall within 8 days: review the design level 3
schedule against the (PMF-008-SCH-013 Design Schedule Review Checklist).
a. communicate with the Design Consultant for any required information, changes or
corrections.
i. endorse the design level 3 schedule and send it to the NWC Project Manager.
c. The NWC Project Manager shall endorse the design level 3 schedule and send it to the
Cluster Capital Projects VP within 4 days.
d. The Cluster Capital Projects VP, within 2 days, shall:
i. review the design level 3 schedule.
ii. endorse the design level 3 schedule and send it to Scheduling & Control GM for
review and approval.
Cluster Scheduling & Control Director
Responsible: Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Design Consultant
Consulted: Scheduling Lead
Cluster Technical Services Director
Informed: Cluster Scheduling & Control Director Scheduling & Control GM

8.4.4.3 PMM-008-SCH-030-033 Approve Level 3 Design Schedule at HQ

Scheduling Control Director, within 5 days: shall

1. Review the level 3 schedule using (PMF-008-SCH-013 Design Schedule Review
Checklist).
• Raise the level 3 schedule to the Scheduling & Control GM with a recommendation.
Scheduling & Control GM, within 2 days, shall:
• approve the level 3 schedule.
b. send the level 3 schedule back to Cluster Scheduling Section Head for uploading in
Capital Projects PMS.

Responsible: Scheduling Control Director Scheduling & Control GM

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Accountable: Scheduling & Control GM

NWC Project Manager
Consulted: Engineering Director
Cluster Scheduling Section Head
Scheduling Lead
Cluster Technical Services Director
Informed: NWC Project Manager Cluster Scheduling Section Head

8.4.4.4 PMM-008-SCH-030-036 Upload Level 3 Design Schedule to Capital Projects PMS

1. Within 1 day from the HQ approval, the Scheduling Section Head shall upload the approved
Level 3 Design Schedule to the NWC P6 EPPM Platform.

Responsible: Scheduling Section Head

Accountable: Scheduling Control Director

Consulted: NWC Project Manager PMIS Section Head

Cluster Scheduling Section Head Cluster Technical Services Director
Informed:
NWC Project Manager Design Consultant
8.4.4.5 PMM-008-SCH-030-040 Update the Approved Level 3 Design Schedule with Actual
Progress

1. During the design stage, update the approved level 3 design schedule in the “Primavera
P6” to reflect the actual progress of the project activities on:
• Weekly basis
b. Monthly basis
2. Upload the updated Level 3 Design Schedule to the NWC P6 EPPM Platform for review
and approval by the NWC Project Manager.

Responsible: Design Consultant

Accountable: NWC Project Manager

Cluster Technical Services Director
Consulted: NWC Project Manager
Cluster Scheduling Section Head
NWC Project Manager
Informed: Cluster Scheduling Section Head
Cluster Technical Services Director
8.4.4.6 PMM-008-SCH-030-050 Check the Actual Design Progress Versus Planned
Progress

1. Check the progress in the weekly and monthly updated Level 3 Design Schedule.
2. Meet with the Design Consultant in the events of uncertainty or ambiguity.
3. For behind schedule activities, in the weekly/monthly progress meeting, agree an
appropriate course of action with the Design Consultant to bring the design schedule back
on track.
4. Include the schedule status in weekly and monthly progress reports.
5. Upload the project status to Capital Projects PMS using the form (PMF-008-SCH-014
Monthly Project Status Update Card).
6. To correct a project status information that uploaded to the Capital Projects PMS use the
form (PMF-008-SCH-016_03 Project Progress Revision Card.docx).

Responsible: NWC Project Manager

Accountable: NWC Project Manager

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Project Performance Monitoring

Consulted: Cluster Technical Services Director
Director
Cluster Scheduling Section Head
Design Consultant
Business Unit Construction Director Project Performance Monitoring
Informed:
Cluster Technical Services Director Director
Cluster Scheduling Section Head Scheduling Control Director
8.4.4.7 PMM-008-SCH-030-055 Revise the Incorrect Actual Progress

1. If the actual progress uploaded to the Capital Projects PMS is incorrect, the NWC Project
Manager shall:
a. collect the Cluster Capital Projects VP approval on a correction request using the form
(PMF-008-SCH-016_03 Project Progress Revision Card.docx).
b. Send the correction request to the Scheduling Control Director.
2. If the requested change is found:
a. Acceptable (in a way that does not affect the status of the project), the Scheduling
Control Director shall revise the actual progress.
b. NOT acceptable, the Scheduling Control Director shall escalate the case to the
Scheduling & Control GM to implement the process (PMM-004-GOV-110 Investigate
Violations of Project Management Manual) to obtain approval on the revised actual
progress.
NWC Project Manager
Responsible: Scheduling Control Director
Cluster Capital Projects VP
Accountable: Scheduling & Control GM

Consulted: Cluster Scheduling & Control Director Scheduling & Control GM

Cluster Scheduling Section Head
Informed:
Project Performance Monitoring Scheduling & Control GM
Director PMO GM
Scheduling Control Director
8.4.4.8 PMM-008-SCH-030-060 Accept the Design Recovery Schedule

1. When both of below happen:

a. the project status becomes behind schedule.
b. the NWC Project Manager, the Cluster Scheduling Section Head and the Design
Consultant agree on the need to develop a recovery schedule.
2. the Design Consultant shall develop and submit a:
a. delay analysis
b. course of actions to bring the schedule back on track
c. recovery schedule
3. The NWC Project Manager and the Cluster Scheduling Section Head shall:
a. check and review the delay analysis report and course of actions.
b. check the incorporation of the agreed course of actions in the submitted recovery
schedule (in Primavera P6 format).
c. ensure that the contractual milestones are in line with the contractual dates.
d. if the recovery schedule found satisfactory, accept it. THIS ACCEPTANCE DOES NOT
MAKE THE RECOVERY SCHEDULE AN APPROVED BASELINE.

Responsible: Cluster Scheduling Section Head NWC Project Manager

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Accountable: NWC Project Manager

Design Consultant
Consulted: Scheduling Control Director
Cluster Technical Services Director
Business Unit Construction Director
Informed:
Cluster Contracts Administration Scheduling Control Director
Manager
8.4.4.9 PMM-008-SCH-030-070 Review Revised Design Schedule in Case of Time
Extension Variation Request

3. Check and review the revised schedule proposed by the Design Consultant for a Variation
Request which includes time extension. Use as applicable (PMF-008-SCH-010 Sch.
Manual App4 Schedules Review Checklist).
2. Check differences between current design schedule and proposed revised schedule based
on the variation request to ensure the fulfillment of the variation objectives.
3. In the proposed schedule, ensure the contractual milestones that not included in the
variation request are in line with the contractual dates.
4. Check the stage duration appropriately.
5. Recommend approval or disapproval on the revised design schedule for further processing
through (PMM-005-INT-060 Variation Control) process.
Cluster Scheduling Section
Responsible:
Head Cluster Technical Services Director
NWC Project Manager
Accountable: NWC Project Manager

Consulted: Design Consultant Scheduling Control Director

Business Unit Construction
Informed:
Director
Scheduling Control Director
Cluster Contracts
Administration Manager
8.5 PMM-008-SCH-040 Schedule Management for Construction, Design &
Construction, Testing & Commissioning and Handover
8.5.1 Objective
The objective of this process is to develop a detailed activity schedule for the Construction stage,
Design & Construction stage and Testing & Commissioning stage and subsequently to monitor and
control this activity schedule within the agreed duration of the stage.
8.5.2 Policies
Policies for this process are:
1. The detailed level 3 schedule of construction and of the design and construction projects
should cover all activities of the:
i. Construction stage (in Construction projects).
ii. Design & Construction stage (in EPC projects).
iii. Testing & commissioning stage.
iv. Initial Acceptance & Handover Activities (at least submitting the Initial Acceptance &
Handover request).
2. The Contractor must submit a level 3 schedule for the above mentioned stages at maximum
15 calendar days from the site handover date.
3. The level 3 schedule should be:
i. created and managed by the “Primavera P6” application.
ii. uploaded to the NWC P6 EPPM Platform.

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4. The approved level 3 schedule must be updated on weekly and monthly basis during the
project to show actual progress of the project activities.
5. The Supervision Consultant and NWC Project Manager are responsible for ensuring the
validity of all weekly and monthly updated level 3 schedule.
6. Entering INCORRECT progress information (actual progress, planned progress, SV and
SPI) shall be considered a violation and shall be formally investigated.
7. The level 3 schedule baseline can be changed only if there is an approved variation (i.e.,
create a new baseline).
8. In case of creating a recovery schedule by the Contractor, NWC acceptance on the recovery
schedule does not make it a baseline. All progress indicators and measures are still taken
from the approved baseline NOT the recovery schedule.
8.5.3 Workflow Chart
Figure 8-6 PMM-008-SCH-040 Schedule Management for Construction, Design & Construction, Testing &
Commissioning and Handover Workflow Chart

8.5.4 Procedures
8.5.4.1 PMM-008-SCH-040-020 Develop and Submit Level 3 Construction / Design &
Construction Schedule

4. After contract award, the Contractor shall use “Primavera P6” to:
a. identify the project activities clearly.
b. show the intended relationships and dependencies between the project activities.
c. load the resources for activities.
d. show the duration of each activity.
2. include a procurement schedule for critical material and equipment using (PMF-008-SCH-
003 Procurement Schedule for Critical Materials and Equipment).
a. develop the detailed level 3 schedule (in Primavera P6 format).

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Develop and attach the narrative report using (PMF-008-SCH-006 Scheduling Management
Manual Rev.01.2) to the submitted level 3 schedule.
Explain to the Supervision Consultant and NWC Project Manager:
a. the adopted assumptions
b. how the contractual constraints are respected in the level 3 schedule.
c. how the contract BoQ is distributed across the level 3 schedule.
Within maximum 15 calendar days after site handover date, submit the detailed project
schedule to the Supervision Consultant for review and approval.
Refer to the file (PMF-008-SCH-017 Schedule Level Definitions).

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant Cluster Scheduling Section Head

Cluster Scheduling Section Head
Informed: Supervision Consultant
Cluster Contracts Administration
NWC Project Manager
Manager
8.5.4.2 PMM-008-SCH-040-030 Approve Level 3 Construction / Design & Construction
Schedule at Cluster

5. Within 15 calendar days from submission date, the Construction / Design & Construction
level 3 schedule shall be reviewed and endorsed at cluster using (PMF-008-SCH-010_03
Sch. Manual App4 Construction Schedule Review Checklist.xlsx) as follows:
a. The Supervision Consultant shall within 8 days:
i. review the level 3 schedule against the (PMF-008-SCH-010_03 Sch. Manual App4
Construction Schedule Review Checklist.xlsx).
ii. communicate with the Contractor for any required information, changes or
corrections.
iii. endorse the level 3 schedule and send it to the NWC Project Manager.
b. The NWC Project Manager shall endorse the level 3 schedule and raise it to the BU
Construction Director within 1 day.
c. The BU Construction Director shall endorse the level 3 schedule and raise it to the
Cluster Capital Projects VP within 4 days.
d. Cluster Capital Projects VP, within 2 days, shall:
i. in collaboration with the Cluster Scheduling & Control Director, review the level 3
schedule.
ii. endorse the level 3 schedule and send it to Scheduling & Control GM for review
and approval.
Supervision Consultant Business Unit Construction Director
Responsible:
NWC Project Manager Cluster Capital Projects VP
Accountable: Cluster Capital Projects VP
Contractor Cluster Scheduling Section Head
Consulted:
Cluster Scheduling & Control Director Scheduling Lead
Informed: Cluster Scheduling & Control Director Scheduling & Control GM

8.5.4.3 PMM-008-SCH-040-033 Approve Level 3 Construction / Design & Construction

Schedule at HQ

1. Scheduling Control Director, within 5 days: shall

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3. Review the level 3 schedule using (PMF-008-SCH-010_03 Sch. Manual App4 Construction
Schedule Review Checklist.xlsx)
a. Raise the level 3 schedule to the Scheduling & Control GM with a recommendation.
Scheduling & Control GM, within 2 days, shall:
a. approve the level 3 schedule.
b. send the level 3 schedule back to Cluster Scheduling Section Head for uploading in
Capital Projects PMS.

Responsible: Scheduling Control Director Scheduling & Control GM

Accountable: Scheduling & Control GM

NWC Project Manager
Consulted: Scheduling Lead
Cluster Scheduling Section Head
Informed: NWC Project Manager Cluster Scheduling Section Head

8.5.4.4 PMM-008-SCH-040-036 Upload Level 3 Construction / Design & Construction

Schedule to Capital Projects PMS

1. Within 1 day from the HQ approval, the Scheduling Section Head shall upload the approved
Level 3 construction / design & construction Schedule to the NWC P6 EPPM Platform.

Responsible: Scheduling Section Head

Accountable: Scheduling Control Director

Consulted: NWC Project Manager PMS Section Head

Cluster Scheduling Section Head Supervision Consultant
Informed:
NWC Project Manager Contractor
8.5.4.5 PMM-008-SCH-040-050 Update the Level 3 Construction / Design & Construction
Schedule with Actual Progress and Submit Look-Ahead Schedule

1. During the stages Construction, Design & Construction, Testing & Commissioning and
Handover, update the approved level 3 schedule in the “Primavera P6” to reflect the actual
progress of the project activities on:
a. Weekly basis
b. Monthly basis
2. Upload the updated level 3 schedule to the NWC P6 EPPM Platform for review and
approval by the Supervision Consultant and NWC Project Manager.
3. Prepare/update 2 weeks look ahead schedules every week (PMF-008-SCH-005_03 Two
Weeks Lookahead.xlsx).
4. Submit the 2 weeks look ahead schedules to the Supervision Consultant.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant Cluster Scheduling Section Head

NWC Project Manager
Informed: Cluster Scheduling Section Head
Supervision Consultant
8.5.4.6 PMM-008-SCH-040-060 Check the Actual Progress Against the Planned Progress

1. Check the progress in the weekly and monthly updated Level 3 Schedule.

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2. Meet with the Contractor in the events of uncertainty or ambiguity.

a. For behind schedule activities, in the weekly/monthly progress meeting, agree an
appropriate course of action with the Contractor to bring the schedule back on track.
b. Include schedule status in the weekly and monthly progress reports.
c. Upload the project status to Capital Projects PMS using the form PMF-008-SCH-
014_03 Monthly Project Status Update Card.docx).
To correct a project status information that uploaded to the Capital Projects PMS use the form
(PMF-008-SCH-016_03 Project Progress Revision Card.docx).

Responsible: Supervision Consultant NWC Project Manager

Accountable: NWC Project Manager

Cluster Contracts Administration
Consulted:
Manager Contractor
Cluster Scheduling Section Head
Project Performance Monitoring
Informed: Business Unit Construction Director
Director
Cluster Scheduling Section Head
Scheduling Control Director
8.5.4.7 PMM-008-SCH-040-065 Revise the Incorrect Actual Progress

1. If the actual progress uploaded to the Capital Projects PMS is incorrect, the NWC Project
Manager shall:
a. collect the Cluster Capital Projects VP approval on a correction request using the form
(PMF-008-SCH-016_03 Project Progress Revision Card.docx).
b. Send the correction request to the Scheduling Control Director.
If the requested change found:
a. Acceptable (in a way that does not affect the status of the project), the Scheduling
Control Director shall revise the actual progress.
b. NOT acceptable, the Scheduling Control Director shall escalate the case to the
Scheduling & Control GM to implement the process (PMM-004-GOV-110 Investigate
Violations of Project Management Manual) to obtain approval on the revised actual
progress.
NWC Project Manager
Responsible: Scheduling Control Director
Cluster Capital Projects VP
Accountable: Scheduling & Control GM
Business Unit Construction Director
Consulted: Scheduling & Control GM
Cluster Scheduling & Control Director
Business Unit Construction Director
Informed: Scheduling Control Director
Cluster Scheduling Section Head
Scheduling & Control GM
Project Performance Monitoring
PMO GM
Director
8.5.4.8 PMM-008-SCH-040-070 Accept the Construction Recovery Schedule

1. When the project status becomes behind schedule, the Contractor shall develop and
submit
a. delay analysis
b. course of actions to bring the schedule back on track
c. recovery schedule
The NWC Project Manager and the Supervision Consultant shall:
a. check and review the delay analysis report and course of actions.

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b. check the incorporation of the agreed course of actions in the submitted recovery
schedule which must be in “Primavera P6”.
c. ensure that the contractual milestones are in line with the contractual dates.
d. if the recovery schedule found satisfactory, accept it. THIS ACCEPTANCE DOES NOT
MAKE THE RECOVERY SCHEDULE AN APPROVED BASELINE.
Contractor
Responsible: NWC Project Manager
Supervision Consultant
Accountable: NWC Project Manager
NWC Project Manager Scheduling Control Director
Consulted:
Cluster Scheduling Section Head Contractor
NWC Project Manager Cluster Scheduling Section Head
Informed:
Business Unit Construction Director Scheduling Control Director
Cluster Contracts Administration Project Performance Monitoring
Manager Director
8.5.4.9 PMM-008-SCH-040-080 Review Revised Level 3 Construction / Design &
Construction Schedule in Case of Time Extension Variation Request

3. Check and review the revised schedule proposed by the Contractor for a Variation
Request which includes time extension. Use (PMF-008-SCH-010_03 Sch. Manual App4
Construction Schedule Review Checklist.xlsx).
4. Check differences between current construction schedule and proposed revised schedule
based on the variation request to ensure the fulfillment of the variation objectives.
5. In the proposed schedule, ensure the contractual milestones that not included in the
variation request are still in line with the contractual dates.
6. Check the stage duration appropriately.
7. Recommend approval or disapproval of the revised construction schedule for further
processing through (PMM-005-INT-060 Variation Control) process.

Responsible: Supervision Consultant NWC Project Manager

Accountable: NWC Project Manager

Cluster Scheduling Section Head
Consulted: Scheduling Control Director
Contractor
Business Unit Construction Director
Informed: Cluster Scheduling Section Head
Cluster Contracts Administration
Scheduling Control Director
Manager

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9 Project Cost Management

The subject of this particular section of the Project Management Manual (PMM) is Project Cost Management.
The high-level process map for the Project Cost Management is illustrated below in Figure 9-1:

Figure 9-1 High-Level Process Map for Project Cost Management

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Cost estimate is classified into five estimate classes which range from the lowest class of project definition
and accuracy in Class 5 to the highest class in Class 1.

Table 9-1 Cost Estimate Classes for Design-Bid-Build PLC

Cost Estimate
Development Stage Developed at Accuracy Range
Class

5YPPP Initial Cost Estimate for “Card

Class 5 -50% to +50%
Initiate Portfolio for Adding a Project to 5YPP”

5YPPP Final Business Case

Class 4 -30% to +40%
Screen Initial Portfolio Development

Class 3 30% Design Completion -20% to +30%

Class 2 Design Stage 90% Design Completion -15% to +20%

Class 1 Upon request -5% to +10%

Table 9-2 Cost Estimate Classes for Design & Build PLC

Cost Estimate
Development Stage Developed at Accuracy Range
Class

5YPPP At Initial Cost Estimate for “Card

Class 5 -50% to +50%
Initiate Portfolio for Adding a Project to 5YPP”

5YPPP At Final Business Case

Class 4 -30% to +40%
Screen Initial Portfolio Development

Class 3 Initial Planning Stage At 30% Design Completion -20% to +30%

Class 2 At 90% Design Completion -15% to +20%

Design & Construction Stage
Class 1 Upon request -5% to +10%

Estimation Requirements
● For Class 5 cost estimate:
○ For transmission line projects (identification of line routs, identification of line lengths).
○ For network projects (identification of served area).
○ For water tank projects (identification of tank location, identification of tank capacity).
○ For STPs projects (identification of STP capacity, identification of STP location, distance
between the STP and discharge/disposal site).
○ For boosting stations (identification of station capacity, identification of station altitude).
○ For water treatment plants (identification of plant capacity, identification of plant location,
targeted water quality, water treatment technology).
● For Class 4 cost estimate:
○ For transmission line projects (identification of line routs, identification of line lengths, required
micro tunneling length, number road crosses, approximate line diameter, line pipe materials).

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○ For network projects (identification of street lengths in served area, Approximate line diameter
average, Line pipe materials).
○ For water tank projects (identification of tank location, identification of tank capacity, tank
material).
○ For STPs (identification of STP capacity, identification of STP location, identification of STP
altitude, sewage treatment technology, identification of distance between the STP and
discharge/disposal site).
○ For boosting stations (identification of station capacity, identification of station altitude, inlet
and outlet diameters, pump types).
○ For water treatment plants (identification of plant capacity, identification of plant location,
targeted water quality, water treatment technology, water resource).
● For Class 3 cost estimate:
○ Completion of 30% design package.
● For Class 2 cost estimate:
○ Completion of 90% design package.
● For Class 1 cost estimate:
○ Rigorous estimating effort and generally used to support fixed-priced construction proposals.

Figure 9-2 Stages of Cost Estimate Approvals

9.1 PMM-009-COS-020 Plan Project Cost Management

9.1.1 Objective
The objective of this process is to develop the Cost Management Plan Section of the NWC Project
Management Plan and ensure that all cost estimates are timely and properly developed. The
planning is also undertaken to ensure that adequate cost monitoring and update are performed
throughout the project life cycle.
9.1.2 Policies
Policies for this process are:
1. Each project must have a separate section for cost management in the NWC Project
Management Plan, created by the NWC Project Manager, Cluster Cost Control Section
Head and the Cluster Cost Estimation Specialist and used as the guiding document for
internal and external team throughout the project.
2. Second Parties must create their own management plans (design and/or construction)
including Cost Management Plan Section for the project. These management plans must

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comply with the cost management requirements defined in the NWC Project Management
Plan and must be approved by NWC during mobilization period.
3. The Cost Management Plans in PMPs of NWC, Design and Construction must be kept up
to date throughout the project life cycle.
4. The NWC Cost management plan shall cover all Cost Estimate Classes from Initial Planning
stage to project closeout based on the stage deliverables, required accuracy and any
applicable other factors.
9.1.3 Workflow Chart
Figure 9-3 PMM-009-COS-020 Plan Project Cost Management Workflow Chart

9.1.4 Procedures
9.1.4.1 PMM-009-COS-020-010 Develop the Project Cost Management Plan Section of
NWC Project Management Plan

8. The NWC Project Manager shall use (PMF-005-INT-001_03 NWC Project Management
Plan.docx) to develop the NWC Project Management Plan which includes a dedicated
section for Cost management. Cluster Cost Estimation Specialist and Cluster Cost Control
Section Head shall develop this section in PMP.
9. Update the Project Cost Section throughout the lifecycle with the approved changed using
procedure (PMM-005-INT-020-040 Update the NWC Project Management Plan).
NWC Project Manager
Responsible: Cluster Cost Control Section Head
Cluster Cost Estimation Specialist
Accountable: NWC Project Manager
Cluster Capital Projects VP
Consulted: Cost Control Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Informed: Cost Control Director
Cluster Capital Projects VP

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9.1.4.2 PMM-009-COS-020-020 Approve the Project Cost Management Plan Section of

NWC Project Management Plan

1. Review the Cost Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
The Cluster Scheduling & Control Director shall approve.
Cluster Scheduling & Control
Responsible:
Director
Accountable: Cluster Scheduling & Control Director
Cluster Cost Estimation Specialist Business Unit Construction Director
Consulted:
Cluster Cost Control Section Head Cluster Capital Projects VP
NWC Project Manager Cost Control Director
Cluster Cost Control Section Head Cluster Capital Projects VP
Informed:
NWC Project Manager Cost Control Director
9.1.4.3 PMM-009-COS-020-040 Develop Project Cost Management Plan Section in the
Design PMP

1. Develop Project Cost Management Plan Section in the Design Project Management Plan
using (PMF-005-INT-002_03 Design Project Management Plan.docx).
2. Ensure that the Project Cost Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Cost Management Plan Section in the
NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Cost Management Plan Section.
4. Include the Project Cost Management Plan Section in the Project Design Project
Management Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

9.1.4.4 PMM-009-COS-020-060 Develop Project Cost Management Plan Section in the

Construction / “Design & Construction” PMP

1. Develop Project Cost Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-005-INT-003_03 Design
& Construction Management Plan.docx).
b. Construction Project Management Plan using (PMF-005-INT-004_03 Construction
Project Management Plan.docx).
2. Ensure that the Project Cost Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Cost Management Plan Section in the
NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Cost Management Plan Section.
4. Include the Project Cost Management Plan Section in the Project Construction Project
Management Plan to be approved as part of the Project Construction Project Management
Plan.

Responsible: Contractor

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Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

9.2 PMM-009-COS-030 Cost Management During the Initial Planning Stage

9.2.1 Objective
The objective of this process is to re-validate the project budget, taking account of elapsed time and
possible changed circumstances since the Five-Year Projects Portfolio plan took place.
9.2.2 Policies
Policies for this process are:
1. Reserves (if any) must be updated and re-substantiated against formally recorded
assumptions, issues and risks.
2. Electronic source files associated with cost management during the project lifecycle must
be locked to prevent tampering and corruption.
3. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
9.2.3 Workflow Chart
Figure 9-4 PMM-009-COS-030 Cost Management During the Initial Planning Stage Workflow Chart

9.2.4 Procedures
9.2.4.1 PMM-009-COS-030-010 Update Class 4 Cost Estimate

1. To tender a project:
a. capture class 4 cost estimate from Final Business Case.
b. Consider the key studies and plans that influence the cost estimate which include but
not limited to the following:
i. Concept Masterplan and Development Framework
ii. Related executed projects from the Portfolio
iii. Environmental Assessment
iv. Land Acquisition Strategy
v. Risk Assessment Update
2. Review and update the class 4 cost estimate.
This procedure is performed to enable the inclusion of the level 1 schedule in the:

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a. Project RFP documents.

b. NWC Project Management Plan.
If this update is by a Design Consultant, the Design Consultant shall submit the class 4 cost
estimate to the Cluster Technical Services Director for approval.
Cluster Cost Estimation Specialist
Responsible: NWC Project Manager
Design Consultant (if assigned)
Accountable: NWC Project Manager
NWC Project Manager
Consulted: Cost Estimation Manager
Cluster Scheduling Section Head
Cluster Risk Section Head
Cluster Asset Management Director
Cluster Value Engineering Lead
Cluster O&M Director
Informed: Cluster Scheduling & Control Director Projects Portfolio Planning Director

9.2.4.2 PMM-009-COS-030-015 Approve the Revised Class 4 Cost Estimate

1. Review and approve the revised class 4 cost estimate.

2. Send the approved revised class 4 cost estimate to NWC Project Manager for inclusion in
the:
a. Project RFP documents.
b. NWC Project Management Plan.

Responsible: Cluster Technical Services Director

Accountable: Cluster Capital Projects VP

Cluster Cost Estimation Specialist
Consulted:
NWC Project Manager
Cost Estimation Manager
Cluster Capital Projects VP
Informed:
NWC Project Manager
9.2.4.3 PMM-009-COS-030-020 Develop Class 3 Cost Estimate for EPC Projects

1. Develop the class 3 cost estimate considering:

a. The NWC/Commercial cost databases as required.
b. The studies and plans that related to preparation of the class 3 cost estimate and budget
requirements which include but not limited to the following:
i. Concept Masterplan and Development Framework
ii. Scope in the 30% Design package
iii. Environmental Assessment
iv. Land Acquisition Strategy
v. Permitting Activities
c. The forecast cost details of the preferred option.
d. The latest version of the project risk register.
e. The formally recorded assumptions and constraints.
2. If this development is by a Design Consultant, the Design Consultant shall submit the class
3 cost estimate to Cluster Cost Estimation Specialist for review.

Responsible: Cluster Cost Estimation Specialist Design Consultant (if assigned)

Accountable: NWC Project Manager

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NWC Project Manager

Consulted: Cost Estimation Manager
Cluster Scheduling Section Head
Cluster Risk Section Head
Cluster Asset Management Director
Cluster Value Engineering Lead
Cluster O&M Director
NWC Project Manager Cluster O&M Director
Informed:
Cluster Asset Management Director Projects Portfolio Planning Director
9.2.4.4 PMM-009-COS-030-023 Approve Class 3 Cost Estimate for EPC Projects at Cluster

1. Cluster Cost Estimation Specialist shall:

a. review the Class 3 Cost Estimate for the developed 30% Design Package ensuring the
alignment to:
i. The NWC cost databases.
ii. The studies and plans that related to preparation of the class 3 cost estimate and
budget requirements which include but not limited to the following:
▫ Concept Masterplan and Development Framework
▫ Scope in the 30% Design package
▫ Environmental Assessment
▫ Land Acquisition Strategy
▫ Permitting Activities
iii. The forecast cost details of the preferred option
iv. The latest version of the project risk register.
v. The formally recorded assumptions and constraints.
vi. provide adequate comments and feedback.
b. submit the class 3 cost estimate to Cluster Technical Services Director for approval.
2. The Cluster Technical Services Director shall:
a. review and endorse/reject the class 3 cost estimate.
b. submit class 3 cost estimate to the Technical Services GM for approval.
This procedure shall be performed within 7 days.

Responsible: Cluster Cost Estimation Specialist Cluster Technical Services Director

Accountable: Cluster Technical Services Director

NWC Project Manager Cost Estimation Manager
Consulted:
Cluster Scheduling Section Head Design Consultant (if assigned)
Informed: Technical Services GM NWC Project Manager

9.2.4.5 PMM-009-COS-030-026 Approve Class 3 Cost Estimate for EPC Projects at HQ

1. Review Class 3 Cost Estimate for the developed 30% design package.
2. Approve/Reject Class 3 Cost Estimate providing adequate comments and feedback.
This procedure shall be performed within 7 days.

Responsible: Technical Services GM

Accountable: Technical Services GM

NWC Project Manager Cluster Technical Services Director
Consulted:
Cluster Cost Estimation Specialist Cost Estimation Manager
Informed: Cluster Technical Services Director NWC Project Manager

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9.2.4.6 PMM-009-COS-030-040 Update the NWC P6 EPPM, PMP and RFP

3. Cluster Scheduling Section Head shall:

a. Update the NWC P6 EPPM by Class 4 / class 3 Cost Estimate.
b. Check with Cluster Finance Department that the update has been reflected in the NWC
Finance System.
NWC Project Manager shall:
a. update the NWC Project Management Plan by the Class 4 / Class 3 Cost Estimate.
b. incorporate the class 3 cost estimate in the RFP of the project.

Responsible: Cluster Scheduling Section Head NWC Project Manager

Accountable: NWC Project Manager

Consulted: Cluster Cost Estimation Specialist Cluster Finance GM

Business Unit Construction Director
Informed:
NWC Project Manager
Cluster Cost Estimation Specialist
9.3 PMM-009-COS-035 Cost Management During the Tender for Design Stage
9.3.1 Objective
The objective of this process is to include the class 4 cost estimate in the tender documents of the
design project.
9.3.2 Policies
Policies for this process are:
1. A pre-tender cost estimate for the design project must be produced as a priced design BoQ
format.
2. The pretender budget for the design project must be re-aligned with the value of the
awarded design contract.
3. Reserves (if any) must be updated against the formally recorded assumptions, issues and
risks.
4. Electronic source files associated with cost management during the project lifecycle must
be locked to prevent tampering and corruption.
5. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
9.3.3 Workflow Chart
Figure 9-5 PMM-009-COS-035 Cost Management During the Tender for Design Stage Workflow Chart

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9.3.4 Procedures
9.3.4.1 PMM-009-COS-035-010 Collect Tender Cost Estimate (Class 4) from Business
Case and Include in RFP Package

1. Collect the updated Class 4 Cost Estimate.

2. Ensure that the used BoQ template is the relevant one for project type.
3. Compare the resulting cost estimate against the project target budget. If found not
acceptable, then escalate to the Cluster Capital Projects VP for discussion and agreement
on action to be taken.
4. Include the tender cost estimate (Class 4) in RFP package.

Responsible: Cluster Cost Estimation Specialist NWC Project Manager

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Scheduling & Control Director
Cluster Cost Estimation Specialist
Cost Estimation Manager
Cluster Technical Services Director
Informed: Technical Services GM

9.3.4.2 PMM-009-COS-035-020 Update the NWC P6 EPPM

1. Update the NWC P6 EPPM by Class 4 Cost Estimate.

2. Check with Cluster Finance Department that the update has been reflected in the NWC
Finance System.

Responsible: Cluster Scheduling Section Head

Accountable: NWC Project Manager

Cluster Cost Estimation Specialist
Consulted: Cluster Finance GM
NWC Project Manager
Business Unit Construction Director Cluster Cost Estimation Specialist
Informed:
NWC Project Manager Projects Portfolio Planning Director

9.4 PMM-009-COS-040 Cost Management During the Design Stage

9.4.1 Objective
The objective of this process is to ensure the appropriate performing of the:
● Design Consultant payments.
● cost estimation of the construction project.
● analysis of cost impact of variations.
9.4.2 Policies
Policies for this process are:
1. The construction cost estimation records must be developed and dispatched confidentially.
2. Any cost forecast for the design project must be maintained up to date (on monthly basis
minimum) for reconciliation of project forecasted final cost versus the project budget.
3. As the design schedule maintained in “Primavera P6” format, the project cash flow and cost
forecasts must be produced by “Primavera P6” application or the NWC P6 EPPM Platform.
4. Invoices from the Design Consultant shall be submitted on monthly basis, as there is a
project progress in the month, on maximum the 7th day of every month. The invoice should
cover at least the month works.
5. Every invoice shall be approved only if all works in the submitted invoice are:
i. formally accepted by NWC or NWC representative.

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ii. does not have an open Quality NCR.

6. Based on the approval of the NWC Project Management department on every submitted
invoice via approved payment certificates, the payment of the submitted invoice be
processed through NWC financial system.
7. The project cost baseline (the approved budget) can be changed only if there is an approved
variation (i.e., create a new baseline).
8. The approved project cost baseline must be updated on weekly and monthly basis during
the project, as part of the update of the level 3 schedule, to show actual progress of the
project activities.
9. Reserves (if any) must be updated and re-substantiated against formally recorded
assumptions, issues and risks.
10. Consultants and Contractors are not allowed to access to NWC cost database.
11. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
9.4.3 Workflow Chart
Figure 9-6 PMM-009-COS-040 Cost Management During the Design Stage Workflow Chart

9.4.4 Procedures
9.4.4.1 PMM-009-COS-040-010 Approve Design Consultant Invoice

3. The Design Consultant shall prepare and submit a hardcopy of his monthly invoice and
its supporting documents (if any) maximum the 7th of the month.
a. If Design Consultant does not submit the current, NWC Project Manager shall send an
urge letter to the Design Consultant.
4. NWC Project Manager shall within 7 days from invoice submission:
a. With Cluster Cost Control Section Head and Cluster Technical Services Director, shall
check the submitted monthly invoice and its supporting documents.
b. Discuss with Design Consultant any discrepancies and receive from him any required
corrections.
c. Review and endorse the monthly invoice considering:
i. Verify the overall invoice format and calculations for accuracy and compliance with
the Contract’s terms and conditions.

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ii. Verify the inclusion of any due deductions such as advance payment recovery,
penalties, back charges, agreed retention.
iii. Verify the invoice items, prices, quantities are in conformity with the BoQ included
in the Contract Documents and the quantities are verified against actual installed
units of Work or Services completed in the period to which the Application refers.
iv. Verify that all required deliverables have been inspected and accepted to the
Authorized Representative or Department Representative.
v. Verify that any insurances, bonds, securities are still valid and in effect for the Works
or Services.
vi. Create a “Completion” / “Work Confirmation” Certificate in iSupplier system, print a
hardcopy and sign the hardcopy.
vii. Send a copy the of all invoice documents to the Design Consultant including a
copy of the signed “Completion” / “Work Confirmation” Certificate.
viii. Design Consultant shall upload the signed copy of the monthly invoice to NWC
system within 1 day.
The NWC Project Manager shall endorse the uploaded monthly invoice 3 days.
The Cluster Capital Projects VP shall approve the monthly invoice, then forward it to Finance
Department within 3 days.
The NWC Project Manager shall update the progress and invoices status on Capital Projects
PMS within 1 day.
For final invoices perform the same steps above and ensure the package completion as
applicable using (PMF-009-COS-021_03 Final Invoice Checklist.docx).
Design Consultant
Responsible: Cluster Cost Control Section Head
NWC Project Manager
Cluster Capital Projects VP
Cluster Technical Services Director
Accountable: Cluster Capital Projects VP
Design Consultant Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Informed: Cluster Finance GM Cost Control Director

9.4.4.2 PMM-009-COS-040-020 Develop Class 3 Cost Estimate in 30% Design Package

5. Develop Class 3 Cost Estimate within the 30% Design package considering:
a. The NWC/Commercial cost databases as required.
b. The studies and plans that related to preparation of the class 3 cost estimate and budget
requirements which include but not limited to the following:
i. Concept Masterplan and Development Framework
ii. Scope in the 30% Design package
iii. Environmental Assessment
iv. Land Acquisition Strategy
v. Permitting Activities
c. The forecast cost details of the preferred option.
d. The latest version of the project risk register.
e. The formally recorded assumptions and constraints.
6. Include the Class 3 Cost Estimate in the 30% Design Package that to be submitted to NWC
for review and approval.

Responsible: Design Consultant

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Accountable: NWC Project Manager

Cluster Scheduling Section Head
Consulted: NWC Project Manager
Cluster Contracts Administration
Cluster Technical Services Director
Manager
Cluster Cost Control Section Head
Cluster Capital Projects VP
Informed: NWC Project Manager Cluster Technical Services Director

9.4.4.3 PMM-009-COS-040-025 Approve Class 3 Cost Estimate in 30% Design Package

7. NWC Project Manager shall extract the Class 3 Cost Estimate from the submitted 30%
Design Package and send it to Cluster Technical Services Director for review and approval
with Cluster Cost Estimation Specialist.
8. The Cluster Technical Services Director and the Cluster Cost Estimation Specialist shall:
a. Review the Class 3 Cost Estimate in the submitted 30% Design package ensuring the
alignment to:
i. The NWC cost databases.
ii. The studies and plans that related to preparation of the class 3 cost estimate and
budget requirements which include but not limited to the following:
▫ Concept Masterplan and Development Framework
▫ Scope in the 30% Design package
▫ Environmental Assessment
▫ Land Acquisition Strategy
▫ Permitting Activities
iii. The forecast cost details of the preferred option
iv. The latest version of the project risk register.
v. The formally recorded assumptions and constraints.
b. Approve/Reject Class 3 Cost Estimate providing adequate comments and feedback.
9. NWC Project Manager shall:
a. Ensure the inclusion of the approval/rejection of Class 3 Cost Estimate in the 30%
Design package feedback that to be sent to Design Consultant.
b. Update the NWC Project Management Plan by the class 3 cost estimate.
c. Incorporate the class 3 cost estimate in the RFP of the construction project.
This procedure shall be performed within 7 days.
NWC Project Manager
Responsible: Cluster Cost Estimation Specialist
Cluster Technical Services Director
Accountable: NWC Project Manager
NWC Project Manager
Consulted: Cost Estimation Manager
Cluster Scheduling Section Head
Design Consultant
Cluster Technical Services Director
Informed: NWC Project Manager

9.4.4.4 PMM-009-COS-040-030 Develop Class 2 Cost Estimate in 90% Design Package

10. Develop Class 2 Cost Estimate for the developed 90% Design package. During
development ensure:
a. Performing adequate quantity survey and measurements from design drawings.

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b. Consideration of the formal Technical Services forms, policies, specifications, database

and requirements that related to Cost Estimation,
c. Consideration of studies and external plans and requirements that related to preparation
of the Class 3 Cost Estimate which include but not limited to the following:
i. Concept Master plan and Development Framework
ii. Initial Environmental Assessment
iii. Land Acquisition Strategy
iv. Permitting Activities
v. Risk Assessment Update
d. Assumptions, issues and risks are formally recorded and considered in Class 3 Cost
Estimate.
e. Development of a BoQ including adequate preamble.
11. Include the Class 2 Cost Estimate in the 90% Design Package that to be submitted to NWC
for review and approval.

Responsible: Design Consultant

Accountable: NWC Project Manager

Cluster Scheduling Section Head
Consulted: NWC Project Manager
Cluster Contracts Administration
Cluster Technical Services Director
Manager
Cluster Cost Control Section Head
Cluster Capital Projects VP
Informed: NWC Project Manager Cluster Technical Services Director

9.4.4.5 PMM-009-COS-040-035 Approve Class 2 Cost Estimate in 90% Design Package at

Cluster

12. Receive and review Class 2 Cost Estimate for the developed 90% Design package
ensuring the alignment to:
a. The formal Technical Services forms, policies, specifications, database and
requirements that related to Cost Estimation,
b. Studies and external plans and requirements that related to preparation of the Class 3
Cost Estimate which include but not limited to the following:
i. Concept Master plan and Development Framework
ii. Initial Environmental Assessment
iii. Land Acquisition Strategy
iv. Permitting Activities
v. Risk Assessment Update
c. Formally recording and considering the assumptions, issues and risks in Class 2 Cost
Estimate.
d. Comparing to NWC Cost Database as required.
13. The Cluster Technical Services Director shall Approve/Reject Class 2 Cost Estimate
providing adequate comments and feedback.
14. Ensure the inclusion of the approval/rejection of Class 2 Cost Estimate in the 90% Design
package feedback that to be sent to Design Consultant.
This procedure shall be performed within 7 days.

Responsible: Cluster Cost Estimation Specialist Cluster Technical Services Director

Accountable: NWC Project Manager

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NWC Project Manager

Consulted: Cost Estimation Manager
Cluster Scheduling Section Head
Design Consultant
Cluster Technical Services Director
Informed: Technical Services GM NWC Project Manager

9.4.4.6 PMM-009-COS-040-038 Approve Class 2 Cost Estimate in 90% Design Package at

HQ

1. Review Class 2 Cost Estimate for the developed 90% Design package.
2. Approve/Reject Class 2 Cost Estimate providing adequate comments and feedback.
This procedure shall be performed within 7 days.

Responsible: Technical Services GM

Accountable: Technical Services GM

NWC Project Manager Cluster Technical Services Director
Consulted:
Cluster Cost Estimation Specialist Cost Estimation Manager
Informed: Cluster Technical Services Director NWC Project Manager

9.4.4.7 PMM-009-COS-040-040 Update the NWC P6 EPPM Platform

1. Update the NWC P6 EPPM Platform by class 2 Cost Estimate.

2. Use only the information provided in Class 2 Cost Estimate.
3. Check with Cluster Finance Dept. if any updates need to be reflected in the NWC Finance
System.

Responsible: Cluster Scheduling Section Head

Accountable: NWC Project Manager

Consulted: Cluster Cost Estimation Specialist

Cluster Finance GM
Informed: NWC Project Manager
Business Unit Construction Director
9.4.4.8 PMM-009-COS-040-050 Perform Cost Impact Analysis in Case of Design Variation
Request

1. Perform Cost Impact Analysis considering all following bullets.

2. Assess the cost suitability and cost distribution fairness.
3. Take-off measurements from the submitted drawings, or from a detailed sketch of the
requested design change.
4. Use the relevant Cost Estimate Form and the BoQ that approved by Technical Services
Department to develop the variation BoQ.
5. Refer to the Cost Database as required.
6. Assist the Project Manager to ensure that assumptions, issues and risks are formally
recorded and attached to the completed form, as well as included in the NWC Project
Management Plan.

Responsible: Cluster Cost Estimation Specialist

Accountable: NWC Project Manager

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NWC Project Manager

Consulted: Cluster Value Engineering Lead
Cluster Scheduling Section Head
Cost Estimation Manager
Cluster Risk Section Head
Design Consultant
Cluster Technical Services Director
NWC Project Manager
Informed: Cluster O&M Director
Cluster Asset Management Director

9.5 PMM-009-COS-050 Cost Management During the “Tender for Construction”

and “Tender for Design & Construction” Stages
9.5.1 Objective
The objective of this process is to include the:
● class 3 cost estimate in the tender documents of the design & construction project.
● class 2 cost estimate in the tender documents of the construction project.
9.5.2 Policies
Policies for this process are:
1. A pre-tender cost estimate for the construction / “design & construction” project must be
produced as a priced BoQ format.
2. The pretender budget for the construction / “design & construction” project must be re-
aligned with the value of the awarded construction / “design & construction” contract.
3. Reserves (if any) must be updated against the formally recorded assumptions, issues and
risks.
4. Electronic source files associated with cost management during the project lifecycle must
be locked to prevent tampering and corruption.
5. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
9.5.3 Workflow Chart
Figure 99-7 PMM-009-COS-050 Cost Management During the “Tender for Construction” and “Tender for
Design & Construction” Stages Workflow Chart

9.5.4 Procedures
9.5.4.1 PMM-009-COS-050-010 Collect Tender Cost Estimate (Class 2 / Class 3) from
Design Package and Include in RFP

1. For Construction projects:

a. Collect the Class 2 Cost Estimate that developed from 90% design package that
approved during the design stage.
b. Ensure that the used BoQ template is the relevant one for project type.

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c. Compare the resulting cost estimate against the project target budget. If found not
acceptable, then escalate to the Cluster Capital Projects VP for discussion and
agreement on action to be taken.
2. For Design & Construction projects (EPC projects):
a. Collect the Class 3 Cost Estimate that developed from the 30% design package that
approved during the initial planning stage.
b. Ensure that the used BoQ template is the relevant one for project type.
c. Compare the resulting cost estimate against the project target budget. If found not
acceptable, then escalate to the Cluster Capital Projects VP for discussion and
agreement on action to be taken.
d. Include the tender cost estimate (Class 2 / Class 3) in RFP package.

Responsible: Cluster Cost Estimation Specialist NWC Project Manager

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Scheduling & Control Director
Cluster Cost Estimation Specialist
Cost Estimation Manager
Cluster Technical Services Director
Informed: Technical Services GM

9.5.4.2 PMM-009-COS-050-040 Update the NWC P6 EPPM Platform

1. Update the NWC P6 EPPM Platform by Class 2 Cost Estimate.

2. Check with Cluster Finance Department that the update has been reflected in the NWC
Finance System.

Responsible: Cluster Scheduling Section Head

Accountable: NWC Project Manager

Cluster Cost Estimation Specialist
Consulted: Cluster Finance GM
NWC Project Manager
Business Unit Construction Director Cluster Cost Estimation Specialist
Informed:
NWC Project Manager Projects Portfolio Planning Director

9.6 PMM-009-COS-060 Cost Management during “Construction”, “Design &

Construction”, “Testing & Commissioning” and “Handover & Closeout”
Stages
9.6.1 Objective
The objective of this process is to:
● ensure the appropriate performing of the cost estimation of the construction project.
● control the impact of requested variations on the Construction BoQs.
● ensure the appropriate processing of the:
○ advance payment
○ monthly invoices
○ final invoice
9.6.2 Policies
Policies for this process are:
1. The construction cost estimation records must be developed and dispatched confidentially.
2. Any cost forecast for the construction / “design & construction” project must be maintained
up to date (on monthly basis minimum) for reconciliation of project forecasted final cost
versus the project budget.

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3. As the construction / “design & construction” schedule maintained in “Primavera P6” format,
the project cash flow and cost forecasts must be produced by “Primavera P6” application or
the NWC P6 EPPM Platform.
4. Invoices from the Contractor and the Supervision Consultant shall be submitted on monthly
basis, as there is a project progress in the month, on maximum the 7 th day of every month.
The invoice should cover at least the month works.
5. Every invoice shall be approved only if all works in the submitted invoice are:
i. formally accepted by NWC or NWC representative.
ii. does not have an open Quality NCR.
6. Based on the approval of the NWC Project Management department on every submitted
invoice via approved payment certificates, the payment of the submitted invoice of the
Contractor or the Supervision Consultant be processed through NWC financial system.
7. The project cost baseline (the approved budget) can be changed only if there is an approved
variation (i.e., create a new baseline).
8. The approved project cost baseline must be updated on weekly and monthly basis during
the project, as part of the update of the level 3 schedule, to show actual progress of the
project activities.
9. Reserves (if any) must be updated and re-substantiated against formally recorded
assumptions, issues and risks.
10. The advance payment request shall be disapproved if it exceeds the limit of advance
payment that stated in NWC Finance Department Policy.
11. The following supporting documents shall be submitted along with the advance payment
request:
i. Purchase Order.
ii. Proforma invoice (for payment).
iii. Contract/agreement.
iv. Bank Guarantee.
v. Commercial Registration Certificate.
vi. Certificate of Subscription to Chamber of Commerce & Industry.
vii. Certificate of GOSI.
viii. Saudization Certificate.
ix. Certificate of Zakat & Income.
x. Safety and Security Plan approved by NWC or the Supervision Consultant.
12. The bank guarantee against the advance payment must:
i. be issued with VAT.
ii. be equal to the value of the requested advance amounts.
iii. its expiration date be the current project finish date.
13. Paid advance payment shall be recovered at installments (deductions) from all monthly
invoices starting from first invoice in the contract at the percent (advance payment value to
contract value).
14. If a project went terminated for any reason, NWC Project Manager shall immediately request
to settle the advance payment.
15. The payments to the Contractor and Supervision Consultant should be processed through
NWC financial system against approved payment certificates raised by the Project
Management Team for the value of executed and accepted works on monthly basis.
16. Every invoice shall be approved only if all works in the submitted invoice are:
i. formally accepted by Supervision Consultant.

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ii. do not have an open Quality NCR.

17. The Contractor final invoice to be submitted only after the closure of all initial acceptance
snag list items.
18. Consultants and Contractors are not allowed to access to NWC cost database.
19. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
9.6.3 Workflow Chart
Figure 9-8 PMM-009-COS-060 Cost Management during “Construction”, “Design & Construction”, “Testing &
Commissioning” and “Handover & Closeout” Stages Workflow Chart

9.6.4 Procedures
9.6.4.1 PMM-009-COS-060-010 Develop and Approve Contractor Invoices

1. The Contractor shall prepare and submit a hardcopy of his monthly invoice and its
supporting documents (if any) maximum the 7th of the month.
a. If Contractor does not submit the current invoice, NWC Project Manager shall send an
urge letter to the Contractor.
i. For the Contractor monthly invoice:
ii. The Supervision Consultant and NWC Project Manager shall review the monthly
invoice and its supporting documents as follows:
iii. Ensure that the HSE certificate using “00_BS01_FM_021.01 HSSE Commitment
Certificate for Invoicing” is attached.
iv. Ensure that the as-built drawings and GIS information for works invoiced two
months earlier (digital copies) by the form (PMF-010-QUA-128_03 Drawing
Submittal Approval Form (General).xlsx) is attached.
v. Verify the overall invoice format and calculations for accuracy and compliance with
the Contract’s terms and conditions.

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vi. Verify the inclusion of any due deductions such as advance payment recovery,
penalties, back charges, agreed retention.
vii. Verify the invoice items, prices, quantities are in conformity with the BoQ included
in the Contract Documents and the quantities are verified against actual installed
units of Work or Services completed in the period to which the Application refers.
viii. Verify that all required deliverables have been inspected and accepted to the
Authorized Representative or Department Representative.
ix. Verify that any insurances, bonds, securities are still valid and in effect for the
Works or Services.
x. Create a “Completion” / “Work Confirmation” Certificate in iSupplier system, print a
hardcopy and sign the hardcopy.
xi. Send a copy the of all invoice documents to the Contractor including a copy of the
signed “Completion” / “Work Confirmation” Certificate.
b. The Supervision Consultant and NWC Project Manager shall endorse the monthly
invoice within maximum 7 days.
c. The Contractor shall upload the signed copy of the monthly invoice to NWC system
within 1 day.
d. The NWC Project Manager shall endorse monthly invoice within 3 days.
e. The Cluster Capital Projects VP shall approve monthly invoice within 3 days, then
forward it to Finance Department.
f. The project manager shall update the progress and invoices status on Capital Projects
PMS.
g. For the Contractor final invoice, perform the same steps above ensuring the package
completion using (PMF-009-COS-021_03 Final Invoice Checklist.docx).
Contractor NWC Project Manager
Responsible:
Supervision Consultant Cluster Capital Projects VP
Accountable: Cluster Capital Projects VP
Cluster Cost Control Section Head Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Cost Estimation Specialist Contractor
Informed: Cluster Finance GM Cost Control Director

9.6.4.2 PMM-009-COS-060-020 Develop and Approve Supervision Consultant Invoice

1. The Supervision Consultant shall prepare and submit a hardcopy of his monthly invoice
and its supporting documents (if any) maximum the 7th of the month.
2. If Supervision Consultant does not submit the current, NWC Project Manager shall send
an urge letter to the Supervision Consultant.
3. For the Supervision Consultant monthly invoice:
a. The NWC Project Manager with the Cluster Cost Control Section Head shall review the
monthly invoice and its supporting documents as follows:
i. Check the submitted monthly invoice and its supporting documents.
ii. Verify the overall invoice format and calculations for accuracy and compliance with
the Contract’s terms and conditions.
iii. Verify the inclusion of any due deductions such as advance payment recovery,
penalties, back charges, agreed retention.
iv. Verify the invoice items, prices, quantities are in conformity with the BoQ included
in the Contract Documents and the quantities are verified against actual installed
units of Work or Services completed in the period to which the Application refers.

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v. Verify that all required deliverables have been inspected and accepted to the
Authorized Representative or Department Representative.
vi. Verify that any insurances, bonds, securities are still valid and in effect for the Works
or Services
vii. Create a “Completion” / “Work Confirmation” Certificate in iSupplier system, print
a hardcopy and sign the hardcopy.
viii. Send a copy the of all invoice documents to the Supervision Consultant including
a copy of the signed “Completion” / “Work Confirmation” Certificate.
b. The NWC Project Manager shall endorse the monthly invoice within maximum 7 days.
i. Supervision Consultant shall upload the signed copy of the monthly invoice to NWC
system within 1 day.
c. The NWC Project Manager shall endorse the uploaded monthly invoice within 3 days.
d. The Cluster Capital Projects VP shall approve monthly invoice, then forward it to
Finance Department within 3 days.
e. The project manager shall update the progress and invoices status on Capital Projects
PMS within 1 day.
f. For Supervision Consultant final invoices, perform the same steps above ensuring the
package completion as applicable using (PMF-009-COS-021_03 Final Invoice
Checklist.docx).
Supervision Consultant Cluster Cost Control Section Head
Responsible:
NWC Project Manager Cluster Capital Projects VP
Accountable: Cluster Capital Projects VP
Cluster Cost Control Section Head Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Cost Estimation Specialist Supervision Consultant
Informed: Cluster Finance GM Cost Control Director

9.6.4.3 PMM-009-COS-060-030 Submit Advance Payment Request

3. Submit to NWC an advance payment request using (PMF-009-COS-027 Advance

Payment Request) to be recovered from the monthly invoices.
4. Attach supporting documents to the request.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted: Cluster Capital Projects VP
NWC Project Manager
Informed: NWC Project Manager

9.6.4.4 PMM-009-COS-060-040 Approve Paying Advance Payment to Contractor at Cluster

1. The Supervision Consultant shall:

a. review and assess the Contractor request within 3 days.
2. Provide recommendation for approving/disapproving the Contractor request using the
advance payment approval form (PMF-009-COS-028_03 Advance Payment Approval
Form.docx). Attach to the report the documents that stated in the report or any other
required documents as applicable.
3. NWC Project Manager shall:
a. Review and assess the Contractor request.
b. Ensure from Cluster Finance Department that financial liquidity to pay this advance
payment is available.

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c. in consultancy with Supervision Consultant, create a technical report justifying paying

the advance payment to the Contractor.
4. Endorse/disapprove the Contractor request within 2 days using advance payment
approval form (PMF-009-COS-028_03 Advance Payment Approval Form.docx) and raise it
to the Cluster Capital Projects VP.
5. Cluster Capital Projects VP shall endorse the advance payment approval form (PMF-009-
COS-028_03 Advance Payment Approval Form.docx) within 2 days and forward it to the
Scheduling & Control GM.
Supervision Consultant
Responsible: Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Cluster Contracts Administration
Consulted: Cluster Cost Control Section Head
Manager
Cluster Scheduling Section Head
Cluster Finance GM
Cluster Cost Estimation Specialist
Contractor
Informed: Scheduling & Control GM

9.6.4.5 PMM-009-COS-060-050 Approve Paying Advance Payment to Contractor at HQ

6. The Scheduling & Control GM shall endorse the advance payment approval form (PMF-
009-COS-028_03 Advance Payment Approval Form.docx) within 3 days and raise it to
Capital Projects Services VP.
7. The Capital Projects Services VP shall endorse the advance payment approval form (PMF-
009-COS-028_03 Advance Payment Approval Form.docx) within 3 days and raise it to the
Authorized Person (as per the authority matrix) for approval.
8. The authorized person shall approve the advance payment approval form using (PMF-009-
COS-028_03 Advance Payment Approval Form.docx) within 8 days.
4. When the approval been obtained, the Scheduling & Control GM shall:
a. Forward the approved request to Finance Department for processing.
b. Notify the Cluster Capital Projects VP to follow up that Contractor collects the approved
advance payment from Cluster Finance Department.
Scheduling & Control GM Authorized Person (as per the
Responsible:
Capital Projects Services VP authority matrix)
Accountable: Projects EVP
Cluster Capital Projects VP
Consulted:
Cluster Contracts Administration Cost Control Director
Manager
NWC Project Manager
Informed: Cluster Capital Projects VP
Cluster Cost Control Section Head
Contractor
Cluster Finance GM
9.6.4.6 PMM-009-COS-060-060 Monitoring and Controlling Approved Advance Payment

1. When the advance payment gets approved, update the status on (Capital Projects PMS)
by the approval.
2. When Contractor receives the advance payment:
a. Update (Capital Projects PMS) accordingly.
b. Continuously, ensure the advance payment recovery in Contractor submitted invoices
(current and final).

Responsible: NWC Project Manager

Accountable: NWC Project Manager

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Consulted: Contractor

Informed: NWC Project Manager Cluster Cost Control Section Head

9.6.4.7 PMM-009-COS-060-070 Perform Cost Impact Analysis in Case of Construction

Variation Request

1. In Case of Construction Variation Request, perform a detailed Cost Impact Analysis on

project cost.
2. Use the form (PMF-011-COS-025_03 Analysis of New BoQ Items Cost.xlsx) to compare
the different proposed costs.
3. Take-off measurements from the submitted Variation Request drawings, or from a detailed
sketch of the requested change.
4. Use the relevant Cost Estimate Form and the BoQ that approved by Technical Services
Department to develop the variation BoQ.
5. Refer to the Cost Database as required.
6. Assist the Project Manager to ensure that assumptions, issues and risks are formally
recorded and attached to the completed form, as well as included in the NWC Project
Management Plan.
7. Pass the results of the cost impact analysis to NWC Project Manager to integrate it in
Variation documents then process it in the process (PMM-005-INT-060 Variation Control).

Responsible: Cluster Cost Estimation Specialist

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster Value Engineering Lead
Cluster Scheduling Section Head
Cost Estimation Manager
Cluster Risk Section Head
Design Consultant
Cluster Technical Services Director
NWC Project Manager Cluster Asset Management Director
Informed:
Projects Portfolio Planning Director Cluster O&M Director
9.6.4.8 PMM-009-COS-060-080 Develop Class 2 Cost Estimate in 90% Design Package in
EPC Project

1. Develop Class 2 Cost Estimate for the developed 90% Design package. During
development ensure:
a. Performing adequate quantity survey and measurements from design drawings.
b. Consideration of the formal Technical Services forms, policies, specifications, database
and requirements that related to Cost Estimation,
c. Consideration of studies and external plans and requirements that related to preparation
of the Class 3 Cost Estimate which include but not limited to the following:
i. Concept Master plan and Development Framework
ii. Initial Environmental Assessment
iii. Land Acquisition Strategy
iv. Permitting Activities
v. Risk Assessment Update
d. Assumptions, issues and risks are formally recorded and considered in Class 3 Cost
Estimate.
e. Development of a BoQ including adequate preamble.
2. Include the Class 2 Cost Estimate in the 90% Design Package that to be submitted to NWC
for review and approval.

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Responsible: Contractor

Accountable: NWC Project Manager

Cluster Scheduling Section Head
Consulted: NWC Project Manager
Cluster Contracts Administration
Cluster Technical Services Director
Manager
Cluster Cost Control Section Head
Cluster Capital Projects VP
Informed: NWC Project Manager Cluster Technical Services Director

9.6.4.9 PMM-009-COS-060-090 Update Capital Projects PMS and the NWC P6 EPPM
Platform

1. Whenever a new information arises, update the Capital Projects PMS and the NWC P6
EPPM Platform by the information of the:
a. advance payment
b. revised BoQ
c. monthly invoice
d. class 2 cost estimate
e. final invoice
2. Use only the information provided in the approved documents.
3. Check with Cluster Finance Dept. that the update has been reflected in the NWC Finance
System.
Cluster Scheduling Section
Responsible:
Head
Accountable: NWC Project Manager
Cluster Cost Control Section
Consulted:
Head Cluster Finance GM
NWC Project Manager
Business Unit Construction
Informed:
Director Cluster Cost Estimation Specialist
NWC Project Manager
9.7 PMM-009-COS-080 Monitor and Control Budget and Cash Flow during the
Project
9.7.1 Objective
The objective of this process is to create, monitor and control the project budget and cash flow during
Design, Construction, Design & Construction, Testing & Commissioning and Handover & Closeout
Stages which to be according to the contract cost conditions and planned cash flows.
9.7.2 Policies
Policies for this process are:
1. No project must be started, or continued, unless an approved budget has been formally
reserved.
2. For every project, a cash flow to be developed and updated (at least) on monthly basis for
reconciliation of anticipated final cost versus the project target budget.
3. Only the allocated budget be spent during the project.
4. Payments must only be made against invoices which have been certified by:
i. For design projects: NWC Project Manager, Cluster Technical Services Director,
Cluster Capital Projects VP.
ii. For EPC/construction projects: Supervision Consultant, NWC Project Manager and
Cluster Capital Projects VP.

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5. The project cost baseline (the approved budget) can be changed only if there is an approved
variation (i.e., create a new baseline).
9.7.3 Workflow Chart
Figure 9-9 PMM-011-COS-080 Monitor and Control Budget and Cash Flow during the Project Workflow Chart

9.7.4 Procedures
9.7.4.1 PMM-009-COS-080-010 Develop Project Cash Flow

This procedure shall be performed at the beginning of:

a. Initial Planning Stage.
b. Design Stage.
c. Construction Stage
1. Capture the initial Project Cash Flow in the Project Business Case.
2. Review the finance related requirements in procurement strategy and finance related
provisions in project contract to avoid discrepancies with the project cash flow such as
contractual payment terms which may cash flow.
3. In project risk workshops, include and manage financial risks then consider them in the
project Financial Plan. See examples below.
4. In all project meetings discuss potential variances then consider them in the project
Financial Plan.
Examples for aspects that may increase of decrease the cost and viability of a project:
a. External factor such as political, regulatory, economic and social factors.
b. Availability of materials, special Design Consultant / Contractor / Subcontractor /
Equipment.
c. Land Availability.
d. Municipality Permits Availability.
e. Potential problems regarding interfaces with other projects.
f. Project site accessibility.
5. Utilize financial historical information to better develop the project cash flow.
6. Develop a project cash flow ensuring that planned payments equal to the project approved
budget using (PMF-008-SCH-012_03 Sch. Manual App6 Cash Flow Report.xlsx).
7. NWC Project Manager shall update the:
a. NWC Project Management Plan by the Developed Project Cash flow.

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b. Project cash flow as per approved variations; then update NWC Project Management
Plan accordingly.
Cluster Cost Control Section Head
Responsible: NWC Project Manager
Cluster Cost Estimation Specialist
Accountable: NWC Project Manager
Business Unit Construction Director
Consulted: Cost Control Director
Cost Estimation Manager
Cluster Technical Services Director
Informed: Cost Estimation Manager
Cluster Scheduling & Control Director
Cost Control Director
Cluster Capital Projects VP
9.7.4.2 PMM-009-COS-080-020 Monitor Payment of Invoices

9. Ensure that the second party payment is processed with formal approval as follows:
a. For design projects: NWC Project Manager, Cluster Technical Services Director, Cluster
Capital Projects VP.
b. For EPC/construction projects: Supervision Consultant, NWC Project Manager and
Cluster Capital Projects VP.
After second party invoice is processed form projects department to Finance department,
monitor on ISupplier whether the Second party has timely received his payment as per finance
policies.
2. If the second party has not received his payment, escalate the issue.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Cluster Capital Projects VP Supervision Consultant (in
Consulted:
Business Unit Construction Director Construction Projects)
Cost Control Section Head Contractor (in Construction Projects)
Design Consultant (in Design Projects) Cluster Finance GM
Informed: Cluster Capital Projects VP

9.7.4.3 PMM-009-COS-080-030 Review of Finance System Report

10. Receive a Monthly Finance System Reports from Finance Department.

11. Review the report to ensure that payments are timely being made and if any adjustment
has taken place.
12. If the second parties are not timely receiving their payments, escalate these issues.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Cluster Capital Projects VP Supervision Consultant (in
Consulted:
Business Unit Construction Director Construction Projects)
Cost Control Section Head Contractor (in Construction Projects)
Design Consultant (in Design Projects) Cluster Finance GM
Informed: Cluster Capital Projects VP

9.7.4.4 PMM-009-COS-080-040 Update Project Cash Flow

13. Update the project cash flow as per actual information of:
a. Processed invoices.
b. Paid payments.

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c. Payment adjustments.
d. Approved variations.
e. Any other related information.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Supervision Consultant (for
Consulted: Cluster Capital Projects VP
Construction projects or Design &
Business Unit Construction Director
Construction Projects)
Cost Control Section Head
Cluster Finance GM
Informed: Cluster Capital Projects VP

9.7.4.5 PMM-009-COS-080-050 Create Cash Flow Forecast

14. On monthly basis, create a cash flow forecast for the whole project.
15. When requested or as planned, provide the Cluster Finance Department by created cash
flow forecast.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Cluster Capital Projects VP Supervision Consultant (for
Consulted:
Business Unit Construction Director Construction Projects)
Cost Control Section Head Cluster Finance GM
Informed: Cluster Capital Projects VP

9.7.4.6 PMM-009-COS-080-060 Report Budget and Cost

16. Ensure the inclusion of budget and cost aspects in every monthly progress report.
17. Ensure discussing budget and cost aspects in the weekly and monthly meetings.
Keep key stakeholders informed by financial issues.
4. Use the guideline (PMF-009-COS-022_03 Cost Control Reporting Guidelines.docx) to
develop the project monthly cost report input form using (PMF-009-COS-019_03 Monthly
Project Cost Report Input Form.xlsx).

Responsible: NWC Project Manager Supervision Consultant

Accountable: NWC Project Manager

Cluster Capital Projects VP
Consulted:
Business Unit Construction Supervision Consultant (in Construction
Director Projects)
Cost Control Section Head Contractor (in Construction Projects)
Design Consultant (in Design Cluster Finance GM
Projects)
Informed: Relevant Stakeholder

9.7.4.7 PMM-009-COS-080-070 Develop and Submit Monthly Cluster Cost Report

1. For this procedure use the guideline (PMF-009-COS-022_03 Cost Control Reporting
Guidelines.docx).
2. The Cluster Cost Control Section Head shall:

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a. Collect relevant cost data for all cluster projects using (PMF-009-COS-019_03 Monthly
Project Cost Report Input Form.xlsx). Attach to the report the documents that stated in
the report or any other required documents as applicable.
b. Develop Monthly Cluster Cost Report (PMF-009-COS-020_03 Monthly Cluster Cost
Report Template.xlsx). Attach to the report the documents that stated in the report or
any other required documents as applicable.
c. Submit the Monthly Cluster Cost Report to Cluster Scheduling & Control Director.
3. The Cluster Scheduling & Control Director shall review the report and submit it to
Scheduling & Control GM.
Cluster Cost Control Section Head
Responsible:
Cluster Scheduling & Control Director
Accountable: Cluster Scheduling & Control Director
NWC Project Managers
Consulted:
Cluster Scheduling Section Head
Cluster Contracts Administration Manager
Cluster Cost Estimation Specialist
Supervision Consultant (if required)
Cluster Capital Projects VP
Informed:
Cost Control Director
Scheduling & Control GM

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Section 10 - Project Quality Management

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10 Project Quality Management

The subject of this particular section of the Project Management Manual (PMM) is Project Quality
Management.
The high-level process map for the Project Quality Management is illustrated below in Figure 10-1:

Figure 100-1 High-Level Process Map for Project Quality Management

10.1 PMM-00-QUA-010 Plan Project Quality Management

10.1.1 Objective
The objective of this process is to develop the Quality Management Plan Section of the NWC Project
Management Plan and ensure that all project technical requirements of the project are met to the
satisfaction of NWC.
Also, this process targets that, the quality planning responsibility through the project lifecycle passes
from the NWC Project Manager, who sets out the strategic quality requirements at project level, to
the Design Consultant and Contractor, who develop and deploy tactical quality plans to ensure that
the strategic quality requirements are met in full.
10.1.2 Policies
Policies for this process are:
1. NWC Projects Cluster fully supports the high standards and quality policy of the business.
There are no exceptional circumstances where the quality policy may be ignored at the level
of a Cluster program or at individual project level.
2. Prevention of quality issues is better than cure, all the time and every time.

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3. Each project must have a separate section for quality management in the NWC Project
Management Plan, created by the NWC Project Manager and used as the guiding document
for internal and external team throughout the project.
4. The approved NWC Project Management Plan, including the Quality Management Plan
section, must be included in the tender document when NWC is procuring Second Party
services and products in support of project execution.
5. Second Parties must create their own Quality Management Plan sections for the project as
part of their contract mobilization work based on ISO9001:2015 QMS and ISO10005:2018
Quality Planning Guidelines. These Quality Management Plan Sections must be approved
by NWC during mobilization period.
6. Second Parties Quality Management Plan Sections must be supported by competent
material testing and works inspection regime, which must be subjected to periodic
inspections and audits by NWC.
7. The Quality Management Plans in PMPs of NWC, Design and Construction must be kept
up to date throughout the project life cycle.
8. Planning for quality must be specific and unique to the location, activities and characteristics
of the project. It must not be generic or wholesale copy-and-paste from previous projects,
else it will be rejected and the work will not be allowed to proceed.
10.1.3 Workflow Chart
Figure 100-2 PMM-010-QUA-010 Plan Project Quality Management Workflow Chart

10.1.4 Procedures
10.1.4.1 PMM-010-QUA-010-010 Develop the Project Quality Management Plan Section of
NWC Project Management Plan

18. The NWC Project Manager shall use (PMF-009-COS-020_03 Monthly Cluster Cost Report
Template.xlsx) to develop the NWC Project Management Plan which includes a dedicated
section for Quality management. Cluster QA Section Head shall develop this section in PMP.
The template includes a dedicated section for quality management which shall be developed
considering the quality requirements in ISO 9001 QMS.

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2. Update the Project Quality Section throughout the lifecycle with the approved changed using
procedure (PMM-005-INT-020-040 Update the NWC Project Management Plan).
3. The Quality Management Plan Section of the NWC Project Management Plan shall describe
how to perform at least the following:
a. Project quality requirements including interpretations and expectations
b. Vision of high quality performance including key performance indicator (KPIs) metrics that
reflect quality performance
c. measurement methods, frequency of measurement, communication methods, corrective
action responsibility
d. Customer satisfaction
e. Quality audits
f. Non-conformances, Root cause and corrective actions.
g. Repeated violations
h. Management reviews
i. Document and control records
j. Quality Trainings
k. Quality Meetings
l. Job Roles & Responsibilities

Responsible: NWC Project Manager Cluster QA Section Head

Accountable: NWC Project Manager

Cluster Capital Projects VP
Consulted: Quality Assurance Director
Business Unit Construction Director
Cluster PMO Director
Informed: Quality Assurance Director
Cluster Capital Projects VP
10.1.4.2 PMM-010-QUA-010-020 Approve the Project Quality Management Plan Section of
NWC Project Management Plan

19. Review the Quality Management Plan Section of NWC Project Management Plan.
20. Document and track the results of the reviews till they are closed out satisfactorily.
21. Approve the submitted Project Quality Management Plan Section.

Responsible: Cluster PMO Director

Accountable: Cluster Capital Projects VP

Cluster QA Section Head
Consulted: Cluster Capital Projects VP
NWC Project Manager
Quality Assurance Director
Business Unit Construction Director
Cluster QA Section Head Cluster Capital Projects VP
Informed:
NWC Project Manager Quality Assurance Director
10.1.4.3 PMM-010-QUA-010-040 Develop Project Quality Management Plan Section in the
Design PMP

22. Develop Project Quality Management Plan Section in the Design Project Management Plan
using (PMF-009-COS-020_03 Monthly Cluster Cost Report Template.xlsx).
23. Ensure that the Project Quality Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Quality Management Plan Section in the
NWC Project Management Plan.
a. The Design Quality Management Plan shall strictly be in alignment with (PMF-010-QUA-
121_03 Quality Requirements for Construction Contractors & Design Consultants.pdf)

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which the Design Consultant is responsible to fulfill during the stages from construction
to closeout.
24. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Quality Management Plan Section.
25. Include the Project Quality Management Plan Section in the Design Project Management
Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

10.1.4.4 PMM-010-QUA-010-060 Develop Project Quality Management Plan Section in the

Construction / “Design & Construction” PMP

26. Develop Project Quality Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-005-INT-003 Design &
Construction Management Plan).
b. Construction Project Management Plan using (PMF-005-INT-004 Construction Project
Management Plan).
27. Ensure that the Project Quality Management Plan Section in the Construction / “Design &
Construction” Project Management Plan is in alignment with the Project Quality
Management Plan Section in the NWC Project Management Plan.
a. The Project Quality Management Plan Section shall strictly be in alignment with (PMF-
010-QUA-121 Quality Requirements for Construction Contractors & Design Consultants)
which the Contractor is responsible to fulfill during the stages from construction to
closeout.
28. Include in Project Quality Management Plan Section the coordination procedures for
inspection and audit with:
a. Notification actions
b. Inspection and audit formats
c. Inspection registers
29. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Quality Management Plan Section.
30. Include the Project Quality Management Plan Section in the Construction Project
Management Plan to be approved as part of the Project Construction Project Management
Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

10.2 PMM-010-QUA-020 Quality Assurance

10.2.1 Objective
The objective of this process is to apply the previously planned and approved quality related activities
in a systematic manner, to ensure that the project employs all processes needed to meet its quality

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requirements and obligations in full. The ultimate goal of performing quality assurance is to improve
project processes and activities.
10.2.2 Policies
Policies for this process are:
1. Assurance must be provided, through objective evidence, that the planned quality-related
activities and control measures have been properly integrated into the other project
activities, and that their execution has been effective and efficient.
2. Results of the quality related activities and control measures should be analyzed and
evaluated on a regular basis and formally reported in the Contractor’s monthly project
progress report, to the satisfaction of the Supervision Consultant and NWC Project
Manager.
3. Method Statements must be specific and unique to the location, activities and
characteristics of the project. They must not be generic or wholesale copy-and-paste from
previous projects, else they will be rejected.
4. All quality inspection & testing plans and associated quality assurance records are subject
to periodic audits by NWC and/or Supervision Consultant.
5. All material that are to be used in the project works must be must be in the Supply Chain
Approved Materials List and sourced from the vendors in the Supply Chain Approved
Vendor List.
6. All the followings must be approved by NWC Capital Project Department and included in
the Supply Chain Approved Vendors List:
i. Subcontractors that are provided by a Contractor to work or provide services in the
project.
ii. Suppliers that are provided by a Contractor to supply materials to the project.
iii. Manufacturers that manufacture equipment, machines or tools that are included in the
Supply Chain Approved Materials List.
7. There must be provision for training of workers in the importance of method statements and
how method statements must be followed at all times for all activities, without exception.
8. The NWC Project Manager shall ensure that all Project Team members have been trained
to the project Quality procedures according to training procedures included in the Project
Quality Management Plan Section.
9. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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10.2.3 Workflow Chart

Figure 100-3 PMM-010-QUA-020 Quality Assurance Workflow Chart

10.2.4 Procedures
10.2.4.1 PMM-010-QUA-020-010 Perform Quality Inspections and Audits on Design Activities

31. Perform periodic scheduled inspections, surveillance and audits on design activities to
ensure that the Design Consultant / Contractor is performing the design activities as per the
approved methods and resources.
a. For Quality audits follow the following steps:
i. Develop Schedule for audits.
ii. For next audit, determine audit purpose and scope.
iii. Send audit notification and plan to the auditee.
iv. Conduct a pre-audit meeting with the auditee to introduce the audit purpose, scope
and process.
v. Conduct the audit using the audit checklists.
vi. Conduct a post-audit closing meeting.
vii. Prepare and distribute audit report complete with Corrective Action Notices (CANs)
/ Non-Conformance Reports (NCR).
viii. Verify CANs / NCRs
ix. Close the audit.
2. Issue quality assurance observation in one of the following forms:
a. (PMF-010-QUA-121_03 Quality Requirements for Construction Contractors & Design
Consultants.pdf).
b. (PMF-010-QUA-121_03 Quality Requirements for Construction Contractors & Design
Consultants.pdf).
3. For any quality assurance audit report, attach the quality observation records or/and NCRs
to the audit report.
Cluster Technical Services Director
Responsible: Supervision Consultant
Cluster QA Section Head

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Accountable: NWC Project Manager

Design Consultant (in Design projects) Cluster Value Engineering Lead
Consulted:
Contractor (in EPC projects) Technical Services GM
NWC Project Manager Quality Assurance Director
NWC Project Manager
Informed: Quality Assurance Director
Technical Services GM
10.2.4.2 PMM-010-QUA-020-020 Address the Quality Assurance Observations on Design
Activities

32. The Design Consultant / Contractor (as per the PLC) shall perform root cause analysis for
the design quality assurance observations that created in quality inspections and audits on
design activities using the root cause analysis section in the received:
a. (PMF-010-QUA-006 Quality Observation Record)
b. (PMF-010-QUA-123 Non-Conformance Report NCR (General))
2. The Design Consultant / Contractor (as per the PLC) shall define corrective and preventive
actions for each root cause with a clear implementation plan using the Corrective and
Preventive Actions section in the received:
a. (PMF-010-QUA-006 Quality Observation Record)
b. (PMF-010-QUA-123 Non-Conformance Report NCR (General))
3. The Design Consultant / Contractor (as per the PLC) shall resolve the observations by
Implementing the corrective and preventive actions.
4. NWC Project Manager, Cluster Technical Services Director, Cluster QA Section Head
and/or the Supervision Consultant shall review and accept/reject the fulfilment of the
quality assurance comments.
Design Consultant (in Design projects) Cluster Technical Services Director
Responsible:
Contractor (in EPC projects) Cluster QA Section Head
NWC Project Manager Supervision Consultant
Accountable: NWC Project Manager
Design Consultant (in Design projects) Cluster Technical Services Director
Consulted:
Contractor (in EPC projects) Cluster QA Section Head
NWC Project Manager Supervision Consultant
NWC Project Manager Cluster QA Section Head
Informed:
Cluster Technical Services Director Supervision Consultant
10.2.4.3 PMM-010-QUA-020-030 Approvals of Subcontractors and Materials

The (PMF-010-QUA-121_03 Quality Requirements for Construction Contractors & Design

Consultants.pdf) shall be followed in requesting and issuing approvals in this procedure.
1. The Contractor shall develop and submit to the Supervision Consultant the following forms
(as needed) for approval:
a. PMF-010-QUA-011_03 Material Approval Request (General).xlsx
b. PMF-010-QUA-125_03 Subcontractor Approval Request (General).xlsx
2. The Supervision Consultant shall:
a. Review the form and its attachments.
b. Type recommendation and sign on the form.
c. Send the form and attachments to NWC Project Manager.
3. NWC Project Manager shall:
a. Review the request and its attachments.
b. Develop for:

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i. Material approval form using (PMF-010-QUA-113_03 NWC Material Approval Form

(General).xlsx).
ii. Subcontractor approval form using (PMF-010-QUA-126_03 NWC Subcontractor
Approval Form (General).xlsx).
a. Type recommendation and sign on the form.
b. Send the form and attachments to the Business Unit Construction Director for approval.
4. Business Unit Construction Director shall:
a. Review the approval form and its attachments.
b. Approve/disapprove the “Subcontractor approval request” / “material approval form”.
c. Send the approval form and attachments to the NWC Project Manager to redirect to the
Supervision Consultant to redirect to the Contractor.
5. The Supervision Consultant shall send the form and attachments and record the status of
each approval request using:
a. PMF-010-QUA-019_03 Material Approval Log (General).xlsx
b. PMF-010-QUA-127_03 Subcontractors Register (General).xlsx
Contractor
Responsible: Cluster Technical Services Director
Supervision Consultant
Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP
Contractor Cluster Technical Services Director
Consulted:
Supervision Consultant Cluster QA Section Head
NWC Project Manager Cluster Supply Chain Manager
Informed: Contractor Supervision Consultant

10.2.4.4 PMM-010-QUA-020-040 Develop a Method Statement

33. For each type of work, develop the method statement using (PMF-010-QUA-004_03
Method Statement (General).docx).The method statement shall clearly:
a. Include identified steps to ensure that the quality of work and safety of working team are
as per project adopted standards.
b. Consider safety aspects such as HSE procedures, risk analysis, surveillance prior to
work start and reporting criteria.
2. Submit the method statement for approval.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant Cluster QA Section Head

Informed: Cluster QA Section Head Supervision Consultant

10.2.4.5 PMM-010-QUA-020-050 Approve the Method Statement

34. Review and approve the Method Statement (PMF-010-QUA-004_03 Method Statement
(General).docx) with the associated attachments within 5 days.
35. The review of each Method Statement, including the associated attachments, is performed
by the Supervision Consultant.

Responsible: Supervision Consultant

Accountable: NWC Project Manager

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NWC Project Manager

Consulted: Business Unit Safety Section Head
Cluster QA Section Head
Informed: Contractor

10.2.4.6 PMM-010-QUA-020-060 Develop an Inspection and Testing Plan (ITP)

36. The Contractor shall develop the ITP using (PMF-010-QUA-122_03 Inspection & Testing
Plan Form (General).xlsx)
a. Use the following forms as a guide while developing the ITP:
i. PMF-010-QUA-021_03 Inspection & Testing Plan for Asphalt (Asphalt).xlsx
ii. PMF-010-QUA-031_03 Inspection & Testing Plan for Reinforced Concrete
(Concrete).xlsx
iii. PMF-010-QUA-051_03 Inspection & Testing Plan for House Connections
(Wastewater HC).xlsx
iv. PMF-010-QUA-061_03 Inspection & Testing Plan for Manholes and Chambers
(Manholes and Chambers).xlsx
v. PMF-010-QUA-071_03 Inspection & Testing Plan for Wastewater Pipelines
(Wastewater Pipelines).xlsx
vi. PMF-010-QUA-071_03 Inspection & Testing Plan for Wastewater Pipelines
(Wastewater Pipelines).xlsx
2. The Contractor must, as a minimum, implement the quality control measures listed in the
relevant work ITP.
The activities covered in a Method Statement may contain more than one ITP.
3. The Contractor shall develop a separate ITP for each discipline, equipment and type of
work.
4. Submit the ITP to the Supervision Consultant for approval.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant Cluster QA Section Head

Informed: Supervision Consultant

10.2.4.7 PMM-010-QUA-020-070 Approve the Inspection and Testing Plan (ITP)

1. Review and approve the ITP (PMF-010-QUA-122_03 Inspection & Testing Plan Form
(General).xlsx) with its attachments and quality forms within 3 days.
2. The review of each ITP, including the associated attachments, is performed by the
Supervision Consultant.

Responsible: Supervision Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster QA Section Head

Informed: Contractor

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10.2.4.8 PMM-010-QUA-020-080 Perform Quality Surveillances and Audits on Execution

Activities

3. The Contractor shall perform internal audits using (PMF-010-QUA-005_03 Construction

Internal Audit Checklist (General).xlsx) to raise quality-related aspects in his performance.
4. For Quality audits follow the following steps:
a. Develop Schedule for audits.
b. For next audit, determine audit purpose and scope.
c. Send audit notification and plan to the auditee.
d. Conduct a pre-audit meeting with the auditee to introduce the audit purpose, scope and
process.
e. Conduct the audit using the audit checklists.
f. Conduct a post-audit closing meeting.
g. Prepare and distribute audit report complete with Corrective Action Notices (CANs) /
Non-Conformance Reports (NCR).
h. Verify CANs / NCRs
i. Close the audit.
3. Supervision Consultant and/or the Cluster QA Section Head shall perform periodic
scheduled surveillance and audits at the construction site to::
a. Ensure that the Contractor has introduced briefings and toolbox talks associated with
the work and has clearly used the approved permit to work.
b. Ensure that the contractor performs construction activities in accordance with the
approved contract specifications, including but not limited to the approved Shop
Drawings, Method Statement, and Inspection and Test Plan.
c. Give guidance on his observations and any questions raised during the visit.
4. For Quality Surveillance follow following steps:
a. Determine surveillance purpose and scope.
b. Send surveillance notification to the auditee.
c. Conduct a brief post-surveillance meeting with the auditee Project Manager to provide
an overview of the Surveillance process.
d. Conduct the surveillance using the checklists.
e. Prepare and distribute surveillance report complete with CANs/NCRs
f. Verify CANs/NCRs.
g. Close the surveillance.
5. Manage corrective and preventive actions as per the process (PMM-012-COM-100
Distribute Non-Conformance Report (NCR))
Supervision Consultant
Responsible: Contractor
Cluster QA Section Head
Accountable: NWC Project Manager
Supervision Consultant
Consulted: Quality Assurance Director
Contractor
NWC Project Manager Contractor
Informed:
Supervision Consultant Quality Assurance Director
10.2.4.9 PMM-010-QUA-020-090 Address the Quality Assurance Observations on
Construction Activities

0. The Contractor shall perform root cause analysis for construction quality assurance
observations that created in quality audits on construction activities using the root cause

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analysis section in the received (PMF-010-QUA-123_03 Non-Conformance Report NCR

(General).xlsx).
1. The Contractor shall define corrective and preventive actions for each root cause with a
clear implementation plan using the Corrective and Preventive Actions section in the
received:
a. PMF-010-QUA-006_03 Quality Observation Record (General).docx
b. PMF-010-QUA-123_03 Non-Conformance Report NCR (General).xlsx
2. The Contractor shall resolve the observations by Implementing the corrective and
preventive actions.
3. The Supervision Consultant and NWC Project Manager shall review and accept/reject the
fulfilment of the quality assurance comments.
Contractor
Responsible: Cluster QA Section Head
Supervision Consultant
Accountable: NWC Project Manager
Supervision Consultant NWC Project Manager
Consulted:
Cluster QA Section Head Contractor
Supervision Consultant NWC Project Manager
Informed:
Cluster QA Section Head Contractor
10.2.4.10 PMM-010-QUA-020-100 Develop the Monthly Quality Report and Monthly Quality
KPIs Follow Up Matrix

1. On monthly basis, the Design Consultant / Contractor shall develop the monthly quality
report and submit it to the NWC Project Manager (as attachment to the monthly progress
report) using (PMF-010-QUA-114_03 Monthly Quality Report (General).docx
2. The NWC Project Manager (and the Supervision Consultant in construction or design and
construction projects) shall:
a. Review and revise the report with Design Consultant / Contractor.
b. Send a copy of the report to the Cluster QA Section Head.
3. The Cluster QA Section Head shall:
a. Collect all required data for the monthly Quality KPIs Follow Up Matrix.
4. Create the Quality KPIs Follow Up Matrix using (PMF-010-QUA-114_03 Monthly Quality
Report (General).docx).
a. Distribute the Matrix to Cluster PMO Directors, NWC Project Managers and Quality
Assurance Director.
Contractor
Responsible: Supervision Consultant
Design Consultant
Cluster QA Section Head
NWC Project Manager
Accountable: Cluster Capital Projects VP

Consulted: NWC Project Manager Contractor

Cluster PMO Directors
Informed: Quality Assurance Director
NWC Project Managers
10.2.4.11 PMM-010-QUA-020-110 Capture Lessons Learned on Project Regarding Quality
Management

1. Review quality-related issues and document to identify lessons learned.

2. The Design Consultant / Contractor shall document and register quality related lessons
learned shall be in the (PMF-005-INT-020_03 Lessons Learned Register.xlsx). Refer to
(PMM-005-INT-040 Manage Project Knowledge).

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Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Cluster QA Section Head Continuous Improvement Manager

Informed: Quality Assurance Director Continuous Improvement Manager

10.3 PMM-010-QUA-030 Quality Control

10.3.1 Objective
The objective of this process is to apply the specific method statement steps, which were previously
planned and documented in permit to work to ensure the product compliance to quality requirements
to ultimately ensure project deliverables are conforming to the contractual quality standards.
10.3.2 Policies
Policies for this process are:
1. Construction activities in the approved permit to work must be followed at all times, without
exception.
2. All materials that used in the project must be approved by NWC Capital Project Department.
3. NWC reserves the right to stop work by any party on the grounds of unsatisfactory Quality
management performance based on the NWC Project Management Plan and the
supporting project Quality register as criteria for satisfactory performance. Stopping shall be
applied only through formal notice.
4. Stopped works be resumed only by a resumption approval by NWC which includes approval
of appropriate corrective and preventive actions proposed by the stopped party.
5. Any delays or additional costs incurred by the party due to their proven unsatisfactory
Quality management performance will not be accepted as grounds for a claim and may be
counter-claimed (i.e., penalized) by NWC if there is consequential loss as a result.
6. Prevention is better than cure! Quality is not inspected-in after completion. Quality is pro-
active actions. Effort must be expended in identifying potential quality defects and
eradicating their root causes. This applies to process defects as well as to product defects.
7. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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10.3.3 Workflow Chart

Figure 10-4 PMM-010-QUA-030 Quality Control Workflow Chart

10.3.4 Procedures
10.3.4.1 PMM-010-QUA-030-010 Perform Internal Design Review on a Design Package

1. As per described in procedures:

a. PMM-006-SCO-030-023 Develop the 30% Design Package for EPC Projects
b. PMM-006-SCO-030-035 Develop the 30% Design Package in Design Projects
c. PMM-006-SCO-030-043 Develop the Design Submittals between 30% & 90% in EPC
Projects
d. PMM-006-SCO-030-048 Develop the 90% Design Package
e. PMM-006-SCO-030-065 Develop the 100% Design Package
Perform internal review on the Design Package using:
2. Develop an internal design review report.
3. Incorporate the internal review comments and develop the IFA design package.
4. Submit the internal design review report as an integral part of the IFA design package.

Responsible: Design Consultant (in Design projects) Contractor (in EPC projects)

Accountable: NWC Project Manager

Cluster Technical Services Director Cluster Value Engineering Lead
Consulted:
Cluster QA Section Head Supervision Consultant
Informed: NWC Project Manager Cluster Technical Services Director

10.3.4.2 PMM-010-QUA-030-020 Perform Design Review on a Design Package

1. As per described in the procedures:

a. PMM-006-SCO-030-026 Approve the 30% Design Package for EPC Projects
b. PMM-006-SCO-030-040 Approve the 30% Design Package in Design Projects

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c. PMM-006-SCO-030-046 Approve the Design Submittals between 30% & 90% in EPC
Projects
d. PMM-006-SCO-030-050 Approve the 90% Design Package
e. PMM-006-SCO-030-070 Approve the 100% Design Package
the NWC Project Manager and Cluster Technical Services Director and/or Supervision
Consultant (as per the PLC) shall:
i. Review the design package.
ii. Send a copy of the submitted design package for VE if required.
iii. Develop a design review report with the VE study report.
iv. Approve/reject (as per authority) the design review report.
v. Update the scope management section in the NWC Project Management Plan.
NWC Project Manager Cluster QA Section Head
Responsible:
Cluster Technical Services Director Supervision Consultant
Accountable: NWC Project Manager
Design Consultant (in Design projects) Cluster Value Engineering Lead
Consulted:
Contractor (in EPC projects) Technical Services GM
NWC Project Manager Quality Assurance Director
Design Consultant (in Design projects)
Informed:
Contractor (in EPC projects)
10.3.4.3 PMM-010-QUA-030-030 Address the Observations in the Design Package Review
Report

1. The Design Consultant / Contractor (as per the PLC) shall:

a. Perform root cause analysis for the observations in the design review report.
b. Define corrective and preventive actions for each root cause.
c. Implement the corrective actions (observations in the design package review report).
2. NWC Project Manager, Cluster Technical Services Director, Cluster QA Section Head
and/or the Supervision Consultant shall review and accept/reject the incorporation of the
observations in the design package review report.
Design Consultant (in Design projects) Cluster Technical Services Director
Responsible:
Contractor (in EPC projects) Cluster QA Section Head
NWC Project Manager Supervision Consultant
Accountable: NWC Project Manager
Design Consultant (in Design projects) Cluster Technical Services Director
Consulted:
Contractor (in EPC projects) Cluster QA Section Head
NWC Project Manager Supervision Consultant
NWC Project Manager Cluster QA Section Head
Informed:
Cluster Technical Services Director Supervision Consultant
10.3.4.4 PMM-010-QUA-030-035 Approvals of Shop Drawing and As Built Drawings

1. The (PMF-005-INT-020_03 Lessons Learned Register.xlsx) shall be followed in requesting

and issuing approvals in this procedure.
2. The Contractor shall develop and submit to the Supervision Consultant the form (PMF-
010-QUA-128 Drawing Submittal Approval Form) attaching the shop drawings or as-built
drawings that requires approval.
3. The Supervision Consultant shall:
a. Review the form and all attachments.
b. Type recommendation and sign on the form.

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c. Send the form and attachments to NWC Project Manager.

4. NWC Project Manager shall:
a. Review the form, all attachments and previous recommendations.
b. Type recommendation and sign on the form.
c. Send the form and attachments to the Supervision Consultant to redirect to the
Contractor.
4. The Supervision Consultant shall send the form and attachments and record the status of
each approval request using (PMF-010-QUA-129_03 Drawing Submittals Register
(General).xlsx).
Contractor
Responsible: NWC Project Manager
Supervision Consultant
Accountable: NWC Project Manager
Contractor Cluster Technical Services Director
Consulted:
Supervision Consultant Cluster QA Section Head
Informed: Contractor Supervision Consultant

10.3.4.5 PMM-010-QUA-030-040 Perform Quality Inspections and Tests on the Executed

Works and Delivered Materials

1. Perform periodic scheduled inspections and tests at the construction site to ensure that the
executed works and the delivered materials fulfill the contractual specifications.
Inspections and tests shall be performed at every witness or hold point identified in the ITP
after receiving a WIR/MIR as per the steps stated in (PMF-010-QUA-118_03 Quality Control
Procedures (General).docx):
2. Work Inspection Request WIR shall use the form (PMF-010-QUA-013_03 Work Inspection
Request WIR (General).xlsx).
3. Material Inspection Request MIR shall use the form (PMF-010-QUA-012_03 Material
Inspection Request MIR (General).xlsx).
Inspections and Tests shall be performed as per the approved Inspection and Testing Plan
that attached to the approved Method Statement of the specific executed works.
4. Issue the observations of the inspection and/or tests via:
a. (PMF-010-QUA-006_03 Quality Observation Record (General).docx
b. PMF-010-QUA-123_03 Non-Conformance Report NCR (General).xlsx
5. Register the issued observation records and NCRs in:
a. PMF-010-QUA-007_03 Observation Records Register (General).xlsx
b. PMF-010-QUA-124_03 NCRs Register (General).xlsx
6. Update the WIR log and/or MIR log using:
a. PMF-010-QUA-090_03 Material Inspection Log (General).xlsx
b. PMF-010-QUA-091_03 Work Inspection Log (General).xlsx
7. Manage corrective and preventive actions as per the process (PMM-010-COM-100
Distribute Non-Conformance Report (NCR))
Rejected WIRs/MIRs shall be re-inspected before proceeding to next activity.
8. Source inspections and tests are applicable to be performed on materials at the
manufacturer factory.
9. If stated in the approved ITP, an independent testing agency (from the NWC qualified
vendors list) shall perform inspection and tests under supervision of the Supervision
Consultant.

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Responsible: Supervision Consultant

Accountable: NWC Project Manager

Consulted: Cluster QA Section Head Business Unit Safety Section Head

Informed: NWC Project Manager

10.3.4.6 PMM-010-QUA-030-050 Address the Observations from Quality Inspections and

Tests on the Executed Works and Delivered Materials

1. The Contractor shall perform root cause analysis for observations from quality inspections
and tests on the executed works and delivered materials using the root cause analysis
section in the received:
a. PMF-010-QUA-006_03 Quality Observation Record (General).docx
b. PMF-010-QUA-123_03 Non-Conformance Report NCR (General).xlsx
2. The Contractor shall define corrective and preventive actions for each root cause with a
clear implementation plan using the Corrective and Preventive Actions section in the
received:
a. PMF-010-QUA-006_03 Quality Observation Record (General).docx
b. PMF-010-QUA-123_03 Non-Conformance Report NCR (General).xlsx
3. The Contractor shall resolve the observations by Implementing the corrective and
preventive actions.
4. The Contractor shall resubmit for a new inspections and/or tests:
a. Work Inspection Request WIR using PMF-010-QUA-123_03 Non-Conformance
Report NCR (General).xlsx
b. Material Inspection Request MIR using PMF-010-QUA-012_03 Material Inspection
Request MIR (General).xlsx
5. The Supervision Consultant and NWC Project Manager shall:
a. Reinspect and/or retest the works/material then accept/reject the fulfilment of the
contractual specifications.
b. Continuously update the WIR log and/or MIR log using:
i. PMF-010-QUA-090_03 Material Inspection Log (General).xlsx
ii. PMF-010-QUA-091_03 Work Inspection Log (General).xlsx

Responsible: Contractor Supervision Consultant

Accountable: NWC Project Manager

Supervision Consultant NWC Project Manager
Consulted:
Cluster QA Section Head Contractor
Supervision Consultant NWC Project Manager
Informed:
Cluster QA Section Head Contractor

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Section 11 - Project Human Resource

Management

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11 Project Human Resource Management

The subject of this particular section of the Project Management Manual (PMM) is Project Human Resource
Management.
The roles that perform the project management processes in the NWC Capital projects include:
● Cluster roles.
● HQ roles.
● Second Party roles (e.g. Design Consultant, Supervision Consultant and Contractor).
These roles in PMM are strictly as per the latest approved organizational structures of HQ and Clusters.
Some roles are hands-on with the project and others interact with the projects from time-to-time or on a
periodic basis, such as at month-end or project start.
All roles in PMM are described in detail in the attached detailed Responsibility Assignment Matrix (RAM)
(PMF-011-HUM-004 Responsibility Assignment Matrix RAM).
Generally, the roles of second parties are mentioned in PMM as Design Consultant, Supervision Consultant
and Contractor; but in some processes, a role of second party team is mentioned as per the process
requirements such as “Contractor Project Manager” or “Consultant Document Controller”.
The Supervision Consultant should always be appointed before the Contractor, so that when the Contractor
starts work, there will already be a supervision in place.
The high-level process map for the Project Human Resource Management is illustrated below in Figure 13-1:
Figure 11-1 High-Level Process Map for Project Human Resource Management

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11.1 PMM-011-HUM-010 Plan Project Human Resource Management

11.1.1 Objective
The objective of this process is to ensure the utilization of best available NWC staff with the suitable
qualifications and experience to work in the project to best achieve project objectives. The selection
to be based on the latest approved organization chart of HQ and clusters defines.
Also, to ensure that the second party staff are competent with the best suitable qualifications and
experience to perform the project activities and achieve the project objectives.
11.1.2 Policies
Policies for this process are:
1. Each project must have a separate section for Human Resource management in the NWC
Project Management Plan, created by the NWC Project Manager and used as the guiding
document for internal and external team throughout the project.
2. The approved NWC Project Management Plan, including the Human Resource
Management Plan section, must be included in the tender documents when NWC is
procuring Second Party services and products in support of project execution.
3. The Human Resource Management Section in NWC Project Management Plan must
consider and be in full alignment with the latest approved NWC Organizational Structure.
4. A project team organization chart must be included in Human Resource Section in the
Human Resource Management Plans in PMPs of NWC, Design and Construction.
5. Second Parties Human Resource Management Plan Sections must include a clear staffing
plan in line with the project activities in the submitted project level 2 schedule. It must be
updated once the level 3 schedule gets approved.
6. The Human Resource Management Plans in PMPs of NWC, Design and Construction must
be kept up to date throughout the project life cycle.
7. Planning for Human Resource must be specific and unique to the location, activities and
characteristics of the project. It must not be generic or wholesale copy-and-paste from
previous projects, else it will be rejected and disciplinary actions to be taken.
11.1.3 Workflow Chart
Figure 11-2 PMM-011-HUM-010 Plan Project Human Resource Management Workflow Chart

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11.1.4 Procedures
11.1.4.1 PMM-011-HUM-010-010 Develop the Project Human Resource Management Plan
Section of NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001_03 NWC Project Management
Plan.docx) to develop the NWC Project Management Plan which includes a dedicated
section for Human Resource management. Business Unit Construction Director and NWC
Project Manager shall develop this section in PMP.
2. Update the Project Human Resource Section throughout the lifecycle with the approved
changed using procedure (PMM-005-INT-020-040 Update the NWC Project Management
Plan).

Responsible: NWC Project Manager Business Unit Construction Director

Accountable: Cluster Capital Projects VP

Cluster Capital Projects VP Cluster PMO Director
Consulted:
Business Unit Construction Director Cluster Scheduling & Control Director
Cluster PMO Director
Informed: Cluster Capital Projects VP
Business Unit Construction Director
11.1.4.2 PMM-011-HUM-010-020 Approve the Project Human Resource Management Plan
Section of NWC Project Management Plan

2. Review the Human Resource Management Plan Section of NWC Project Management
Plan.
3. Document and track the results of the reviews till they are closed out satisfactorily.
4. Approve the submitted Project Human Resource Management Plan Section.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted: Cluster PMO Director
Business Unit Construction
Cluster Scheduling & Control Director
Director
Informed: NWC Project Manager Cluster Capital Projects VP

11.1.4.3 PMM-011-HUM-010-040 Develop Project Human Resource Management Plan

Section in the Design PMP

1. Develop Project Human Resource Management Plan Section in the Design Project
Management Plan using (PMF-005-INT-002_03 Design Project Management Plan.docx).
2. Ensure that the Project Human Resource Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Human Resource Management
Plan Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Human Resource Management Plan Section.
4. Include the Project Human Resource Management Plan Section in the Project Design
Project Management Plan to be approved as part of the Project Design Project
Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

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Informed: NWC Project Manager

11.1.4.4 PMM-011-HUM-010-060 Develop Project Human Resource Management Plan

Section in the Construction / “Design & Construction” PMP

1. Develop Project Human Resource Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-005-INT-003_03
Design & Construction Management Plan.docx).
b. Construction Project Management Plan using (PMF-005-INT-004_03 Construction
Project Management Plan.docx).
2. Ensure that the Project Human Resource Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Human Resource Management
Plan Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Human Resource Management Plan Section.
4. Include the Project Human Resource Management Plan Section in the Project Construction
Project Management Plan to be approved as part of the Project Construction Project
Management Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

11.2 PMM-011-HUM-020 Acquire NWC Project Team

11.2.1 Objective
The objective of this process is to ensure that named persons from the latest approved organizational
chart, are allocated to the individual project.
Within each Cluster office, there will be a “pool” of competent management resources from which
suitable candidates can be drawn down. These will include the following:
● NWC Project Managers
● Technical Staff
● Project Team
11.2.2 Policies
Policies for this process are:
1. The NWC Project Manager must be appointed early to manage the project lifecycle from
Initial Planning to Handover and Closure.
2. The project team organization chart that included in Human Resource Section in the NWC
Project Management Plan must be followed.
3. All positions in the project organizational structure must be occupied with suitable,
competent staff to provide the NWC Project Manager with full project lifecycle support.
4. It is the responsibility of line managers to ensure that their subordinate staff is in complete
understanding of the described Project Team role, responsibilities, competence
requirements and cascaded objectives for the projects they are working on.
5. NWC Capital Project department team members must have the necessary skills and
competencies to allow them to fulfill their responsibilities to the required level and agreed
standard.

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6. A register of all project team members must be developed, retained and continually be
updated using (PMF-011-HUM-002 Project Team Members Register).
7. A register of all project inductions and role-based training events must be retained and
continually be updated using (PMF-011-HUM-003 Induction and Training Register).
8. For every employee replacement, a formal handover must be performed between the
incumbent position holder and the new position holder.
9. If there is an NWC Project Manager change during a project execution, then there must be
a formally recorded handover from the outgoing Project Manager to the incoming Project
Manager. See (PMF-011-HUM-001 Project Manager Role Handover Checklist).
10. The organizational structures of the second parties are to be:
i. crated and approved at project level in full alignment with the project contract
provisions.
ii. changed after NWC approval on the variation request in full alignment with the project
contract provisions.
11.2.3 Workflow Chart
Figure 11-3 PMM-013-HUM-020 Acquire the Project Team Workflow Chart

11.2.4 Procedures
11.2.4.1 PMM-011-HUM-020-010 Assign NWC Project Manager

5. Cluster Program Manager shall review project scope and requirements and propose a
suitable NWC Project Manager to manage the project.
6. Considering the current workload of the proposed NWC Project Manager, Business Unit
Construction Director shall ensure that the NWC Project Manager has suitable experience
in the following areas:
a. National regulations.
b. Working on project of similar estimated value.
c. Working on projects of similar complexity.
d. Experience of any specialist work required.
3. Cluster Program Manager shall discuss with Cluster Capital Projects VP the nomination
and request for approval.
4. Cluster Capital Projects VP shall approve assigning the nominated NWC Project Manager.

Responsible: Cluster Program Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Consulted: Cluster Capital Resource Manager Human Capital GM

Informed: NWC Project Manager

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11.2.4.2 PMM-011-HUM-020-015 Perform Formal Handover to a New Project Manager

7. For changing NWC Project Manager, the outgoing NWC Project Manager shall handover
to the new NWC Project Manager using the form (PMF-011-HUM-001_03 Project Manager
Role Handover Form.docx).
8. The two NWC Project Managers shall sign the form and raise it to Cluster Capital Projects
VP for approval.
9. Cluster Capital Projects VP shall approve the handover form.

Responsible: NWC Project Manager (outgoing) NWC Project Manager (incoming)

Accountable: Cluster Capital Projects VP

Consulted: Cluster Capital Projects VP Cluster PMO Director

Informed: Cluster Capital Projects VP

11.2.4.3 PMM-011-HUM-020-020 Develop NWC Staffing Plan and NWC Project

Organizational Structure

1. Review project scope and requirements.

2. In collaboration with the directors in the cluster projects department identify:
a. the required roles in the project.
b. the responsibilities, Authorities and required commence date in the project for every
identified role.
3. In collaboration with the directors in the cluster projects department and considering current
workload and the project workload, select suitable employees from the team of the cluster
projects department to work in the project.
4. Develop the staffing plan.
5. Develop the NWC project organizational structure.

Responsible: Business Unit Construction Director NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster Scheduling & Control Director Cluster Scheduling Section Head
Consulted:
Cluster Technical Services Director Cluster Capital Resource Manager
Informed: Cluster Capital Projects VP

11.2.4.4 PMM-011-HUM-020-030 Approve the NWC Staffing Plan

10. For every identified personnel:

a. Ensure there are no outstanding issues or concerns may prevent working in the project.
b. Ensure having the required level of experience and skills to allow for the successful
implementation and completion of the project.
c. Review performance reviews if available from previous projects.
d. Review current workload and upcoming projects to ensure the availability.
11. Approve the staffing plan.
Any change to the staffing plan shall be formally approved.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

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Cluster Scheduling & Control Director

Consulted: Cluster Scheduling Section Head
Cluster Technical Services Director
Cluster Scheduling & Control Director NWC Project Manager
Informed:
Cluster Technical Services Director NWC Project Team
11.2.4.5 PMM-011-HUM-020-040 Acquire the Identified Staff Members

As per the approval from Cluster Capital Projects VP, begin acquiring the resources for the
project.
12. Ensure all identified positions have been resourced and confirmed.
13. Provide the appropriate Job Profile to every team member.
14. Register every project team member in the form (PMF-011-HUM-002_03 Project Team
Members Register.xlsx). Continually, keep this register updated.

Responsible: NWC Project Manager Business Unit Construction Director

Accountable: Business Unit Construction Director

Cluster Scheduling Section
Consulted:
Head
Business Unit Construction
Informed:
Director

11.3 PMM-011-HUM-030 Develop NWC Capital Projects Department Team

11.3.1 Objective
The objective of this process is to ensure that NWC Capital Project department team members (at
HQ and clusters) are competent on the basis of appropriate education, training, skills and experience.
11.3.2 Policies
Policies for this process are:
1. The following must be performed for every NWC Capital Project department team members
that newly assigned, relocated, reassigned, promoted and demoted:
i. Formal induction
ii. PMM briefings
iii. PMM orientation training
iv. Role-based training (as required)
2. Feedback from NWC team members, that had the above mentioned developments, must
provide a feedback on the development activity.
3. Rotation training amongst NWC Capital Project department team members must be
performed to effectively share duties.
4. All trainings must be organized in accordance with the NWC Human Capital Manual.
11.3.3 Workflow Chart
Figure 11-4 PMM-011-HUM-030 Develop NWC Capital Project Department Team Workflow Chart

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11.3.4 Procedures
11.3.4.1 PMM-011-HUM-030-010 Perform Induction and Objectives Briefing

1. Perform to every NWC Capital Project department team member that is new to the projects
department an:
a. induction
b. objective briefing
c. PMM orientation
2. Register the performed inductions in a register using (PMF-011-HUM-003_03 Induction
and Training Register.xlsx).
3. Update the cluster induction and training register (PMF-011-HUM-003_03 Induction and
Training Register.xlsx).
Center of Excellence Director
Responsible:
Cluster PMO Director
Accountable: Business Unit Construction Director
Business Unit Construction Director
Consulted:
Cluster Capital Projects VP
Informed: NWC Capital Projects Team

11.3.4.2 PMM-011-HUM-030-020 Nominate Staff Members for Training

1. NWC Project Manager shall:

a. continually, monitor the performance of NWC Capital Projects Team members and
identify the training needs for each member.
b. annually, perform a training needs assessment and nominate NWC Capital
Projects Team members for training.
c. based on the above two actions, raise the nominations to Cluster PMO Director.
2. Cluster PMO Director shall:
a. Request from each cluster projects department to identify the training needs for
every cluster projects department team member.
b. Collect the data from cluster projects departments of the training needs of every
cluster projects department team member.
c. Raise all collected data from projects and from departments to Center of Excellence
Director to arrange the suitable training programs.

Responsible: NWC Project Manager Cluster PMO Director

Accountable: NWC Project Manager

NWC Capital Projects Team
Consulted: Center of Excellence Director
Cluster PMO Director
Center of Excellence
Informed:
Director
11.3.4.3 PMM-011-HUM-030-030 Provide Training to NWC Capital Projects Team Members

1. In collaboration with Human Capital department, Center of Excellence Director shall

schedule and provide the suitable training programs.
2. At cluster level, specific role-based training material can be used to provide in-house
training when needed. This training is to be introduced in collaboration with the Center of
Excellence department.

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3. Update the cluster induction and training register (PMF-011-HUM-003_03 Induction and
Training Register.xlsx).

Responsible: Center of Excellence Director

Accountable: Center of Excellence Director

NWC Capital Projects Team
Consulted: Center of Excellence Director
Cluster PMO Director
Informed: Center of Excellence Director

11.4 PMM-011-HUM-035 Interview and Approve Second Party Project Team

Members
11.4.1 Objective
The objective of this process is to ensure that Second Party Project Team Members are competent
on the basis of appropriate education, training, skills and experience.
11.4.2 Policies
Policies for this process are:
1. Second Party (Design Consultant / Supervision Consultant / Contractor) must submit during
the mobilization period a staffing plan which is to be approved by the NWC Project Manager.
2. The Key Project Team Members of second party must be interviewed and approved by
Cluster Projects Department.
3. The second party is not allowed to mobilize and utilize any team member that has not
passed the NWC Interviews.
11.4.3 Workflow Chart
Figure 11-5 PMM-011-HUM-035 Interview and Approve Second Party Project Team Members Team Workflow
Chart

11.4.4 Procedures
11.4.4.1 PMM-011-HUM-035-010 Form Interview Working Group for Second Party Project
Team

1. NWC Project Manager shall review the submitted staffing plan in consultation with:
a. Cluster Technical Service for Design Consultant team.
b. Cluster Scheduling & Control for Supervision Consultant team.
c. Supervision Consultant for Contractor team.
2. If NWC Project Manager approved the staffing plan, NWC Project Manager shall create a
working group forming decision and raise it to Cluster Capital Projects VP for approval. The
request shall nominate representatives from the following departments beside NWC Project
Manager:
a. Cluster Technical Services department.
b. Cluster Scheduling & Control department.

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c. Cluster PMO department.

d. Directorate Construction department.
3. Cluster Capital Projects VP shall add to the Interview Working Group any additional suitable
members as required.
4. Cluster Capital Projects VP shall approve the request and forming decision and transmit
them to NWC Project Manager for further actions.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted: Cluster PMO Director
Cluster Technical Services Director
Business Unit Construction Director
Cluster Scheduling & Control Director
Informed: NWC Project Manager

11.4.4.2 PMM-011-HUM-035-020 Conduct Interviews for Second Party Project Team

1. Conduct a preparation meeting to at least:

a. Identify the second party key team members to be interviewed.
b. Identify required documents that the second party has to submit for each role such
as resume, academic degree, accreditation, proof of experience, etc.
c. Establish assessment criteria for each role.
d. Agree on interviews schedule based on the approved staffing plan.
any other arrangements for the interviews.
2. Inform the second party by the agreed schedule.
3. Conduct the interviews.
4. After interviews, develop a report describing:
a. the applied assessment criteria.
b. the interview activities.
c. the interview results and recommendations.
5. Raise the report to Cluster Capital Projects VP for approval and approve the second party
staff.

Responsible: Interview Working Group

Accountable: Cluster Capital Projects VP

Consulted: Cluster Capital Projects VP

Informed: Cluster Capital Projects VP

11.4.4.3 PMM-011-HUM-035-030 Approve the Second Party Project Team

15. Review and approve the report that raised from Interview Working Group.
16. Direct the second party to:
a. Mobilize the accepted team members as per the staffing plan.
b. Introduce other team members for interviews to fill the vacant positions as per the
staffing plan.

Responsible: Cluster Capital Projects VP

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Accountable: Cluster Capital Projects VP

Consulted: Interview Working Group

Informed: Interview Working Group PMO GM

11.5 PMM-011-HUM-040 Manage the NWC Project Team

Managing the Project Team is an ongoing process of:
● Tracking the team members performance.
● Tracking the team members behavior.
● Providing feedback to team members.
● Managing conflicts between team members.
● Resolving issues facing the team members.
● Coordinating required changes on team members.
11.6 PMM-011-HUM-050 Close the NWC Project Team
11.6.1 Objective
The objective of this process is to:
● Finalize the participation of the NWC Project Team Members on the project
● Close the NWC project team at the end of the project.
11.6.2 Policies
Policies for this process are:
1. At the closure of a project or if an NWC project team member leaves the project, there must
be a:
i. Leave debriefing (exit interview).
ii. Performance appraisals (as per HR department procedures).
These two must be linked to the cascaded objectives and project KPIs.
2. Staff debriefing must be used in a constructive manner to learn lessons from the
performance of the project and to contribute towards improvement suggestions for the
project management framework.
11.6.3 Workflow Chart
Figure 11-6 PMM-011-HUM-050 Close the NWC Project Team Workflow Chart

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11.6.4 Procedures
11.6.4.1 PMM-011-HUM-050-010 Perform Debriefing for Leaving NWC Capital Project
Department Member

1. In case an NWC project team member leaves the project during the project or at the project
completion, conduct a leave debriefing (exit interview) with the leaving member.
2. NWC Project Manager shall develop lessons learned from the debriefing information to
contribute to enhancing the project performance then send it to the Cluster PMO Director
for further processing as per the process (PMM-005-INT-040 Manage Project Knowledge).
NWC Project Manager
Responsible: Cluster PMO Director
Business Unit Construction Director
Accountable: Business Unit Construction Director
Cluster Contracts Administration
Consulted: Cluster Capital Resource Manager
Manager
Informed: Cluster PMO Director Cluster Capital Resource Manager

11.6.4.2 PMM-011-HUM-050-020 Inform NWC Project Team Members and Cluster

Functional Managers about the Project Closure

17. One month before the project closure, inform NWC Project Team Members and Cluster
Functional Managers by the project closing date by a formal release notification.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Cluster Contracts Administration Manager

NWC Project Team Members
Informed:
Cluster Capital Resource Manager
11.6.4.3 PMM-011-HUM-050-030 Perform Performance Appraisals for NWC Project Team
Members

1. At the project closure, carryout performance appraisals for NWC team members
associated with the project.
The appraisal should focus solely on their performance on the project.
This should be completed in conjunction with Human Resources Procedure Manual.
2. Identify training needs based on performance appraisal/weak points.
NWC Project Manager
Responsible: Cluster PMO Director
Business Unit Construction
Cluster Capital Projects VP
Director
Accountable: Business Unit Construction Director
Cluster Capital Resource
Consulted:
Manager
NWC Project Team Members
Informed: Cluster Capital Resource Manager
Cluster Capital Projects VP

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Section 12 - Project Communication

Management

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12 Project Communication Management

The subject of this particular section of the Project Management Manual (PMM) is Project Communication
Management.
The high-level process map for the Project Communication Management is illustrated below in Figure 12-1:

Figure 112-1 High-Level Process Map for Project Communication Management

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12.1 PMM-012-COM-010 Plan Project Communications Management

12.1.1 Objective
The objective of this process is to proactively plan for how project communication shall be conducted
to assure the adequate communication of the project documentation to the considered stakeholder
throughout the duration of the project.
12.1.2 Policies
Policies for this process are:
1. Each project must have a separate section for communication management in the NWC
Project Management Plan, created by the NWC Project Manager and used as the guiding
document for internal and external team throughout the project.
2. The approved NWC Project Management Plan, including the Communication Management
Plan section, must be included in the tender document when NWC is procuring Second
Party services and products in support of project execution.
3. The Communication Management Plans in PMPs of NWC, Design and Construction must
be kept up to date throughout the project life cycle.
4. Planning for communication must be specific and unique to the location, activities and
characteristics of the project. It must not be generic or wholesale copy-and-paste from
previous projects, else it will be rejected and the work will not be allowed to proceed.
5. Capital Projects PMS shall be used to host the project management system documents and
records and is the primary channel of internal communication.
6. All projects shall have a formally appointed person responsible for document control (hard-
copy and soft-copy). This requirement shall be clearly stated in the NWC Project
Management Plan. This also applies in second party’s project communication plan.
7. Second Parties must create their own management plans (design and/or construction)
including Communications Management Plan Section for the project. These management
plans must comply with the Communications management requirements defined in the
NWC Project Management Plan and must be approved by NWC during mobilization period.
8. The Communications Management Plans in PMPs of NWC, Design and Construction must
be kept up to date throughout the project life cycle.

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12.1.3 Workflow Chart

Figure 12-2 PMM-012-COM-010 Plan Project Communications Workflow Chart

12.1.4 Procedures
12.1.4.1 PMM-012-COM-010-010 Develop the Project Communication Management Plan
Section of NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001 NWC Project Management Plan)
to develop the NWC Project Management Plan which includes a dedicated section for
Communication management. Document Control Section Head shall develop this section
in PMP.
2. Create NWC Communication Management Plan.
3. Develop a stakeholder communication plan as per process (PMM-012-COM-015-040
Develop Project Stakeholder Communication Plan) and include it in the communication
management plan section.
4. Update the Project Communication Section throughout the lifecycle with the approved
changed using procedure (PMM-005-INT-020-040 Update the NWC Project Management
Plan).
Cluster Document Control Section
Responsible: NWC Project Manager
Head
Accountable: NWC Project Manager
Cluster Capital Projects VP
Consulted: Document Control Manager
Business Unit Construction Director
Cluster Scheduling & Control Director
Informed: Document Control Manager
Cluster Capital Projects VP
12.1.4.2 PMM-012-COM-010-020 Approve the Project Communication Management Plan
Section of NWC Project Management Plan

1. Review the Communication Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project Communication Management Plan Section.

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Responsible: Cluster Scheduling & Control Director

Accountable: Cluster Capital Projects VP

Cluster Document Control Section Business Unit Construction Director
Consulted:
Head Cluster Capital Projects VP
NWC Project Manager Document Control Manager
Cluster Document Control Section
Informed: Cluster Capital Projects VP
Head
Document Control Manager
NWC Project Manager
12.1.4.3 PMM-012-COM-010-040 Develop Project Communication Management Plan
Section in the Design PMP

1. Develop Project Communication Management Plan Section in the Design Project

Management Plan using (PMF-005-INT-002 Design Project Management Plan).
2. Ensure that the Project Communication Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Communication Management
Plan Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Communication Management Plan Section.
4. Include the Project Communication Management Plan Section in the Project Design
Project Management Plan to be approved as part of the Project Design Project
Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

12.1.4.4 PMM-012-COM-010-060 Develop Project Communication Management Plan

Section in the Construction / “Design & Construction” PMP

1. Develop Project Communication Management Plan Section in the:

• Design & Construction Project Management Plan using (PMF-005-INT-003 Design &
Construction Management Plan).
• Construction Project Management Plan using (PMF-005-INT-004 Construction Project
Management Plan).
2. Ensure that the Project Communication Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Communication Management
Plan Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Communication Management Plan Section.
4. Include the Project Communication Management Plan Section in the Project Construction
Project Management Plan to be approved as part of the Project Construction Project
Management Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

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12.2 PMM-012-COM-015 Manage Stakeholders

12.2.1 Objective
The objective of this process is to ensure that all stakeholders that are internal or external to the
project are identified and included in the stakeholder communication plan of the project.
12.2.2 Policies
Policies for this process are:
1. The lead of the stakeholder management in every capital project should be assigned to a
specialized individual from the project team.
2. Every capital project must have a carefully prepared:
i. Stakeholders Register.
ii. Stakeholder Mapping.
iii. Stakeholder Engagement Matrix.
iv. Stakeholder Communication Plan.
3. The above mentioned documents must be developed at the beginning of each stage and
revised on monthly basis during the whole project life.
4. The above mentioned documents must be formally approved by the NWC Project Manager
once developed or revised.
12.2.3 Workflow Chart
Figure 122-3 PMM-012-COM-015 Manage Stakeholders Workflow Chart

12.2.4 Procedures
12.2.4.1 PMM-012-COM-015-010 Identify the Project Stakeholders

1. At the beginning of every project stage, extract the stakeholders register that included in
the:
• Existing stakeholders register (at the beginning of all other stages).
• Project Business Case (at the beginning of the Initial Planning stage).
2. Using (PMF-012-COM-060 Stakeholder Identification Guidelines), revise the extracted the
stakeholders register by adding, eliminating and modifying the stakeholders by information
collected:
• from cluster projects team, design consultant, supervision consultant, contractor, SMEs,
etc.
• in meetings, interviews and workshops.
3. Finalize and develop the project stakeholders register covering all internal and external
project stakeholders using (PMF-012-COM-062 Stakeholders Register).

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Supervision Consultant (during

Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Capital Projects VP Cluster Scheduling & Control Director
Consulted:
Cluster Strategic Planning Director Cluster PMO Director
Cluster Technical Services Director Business Unit Construction Director
Design Consultant (in design projects)
Informed: Cluster Technical Services Director (in
/ Contractor (in “Design &
design projects) / Business Unit
Construction” projects and
Construction Director (in “Design &
“Construction” projects) / Supervision
Construction” projects and
Consultant (in “Design & Construction”
“Construction” projects)
projects and “Construction” projects)
12.2.4.2 PMM-012-COM-015-020 Conduct the Project Stakeholder Mapping

1. At the Initial Planning stage, perform the project stakeholder mapping using (PMF-012-
COM-061 Stakeholder Mapping Guidelines) as follows:
2. extract stakeholders’ information in the Project Stakeholders Register (such as name,
position, role in project, location, etc.).
3. perform the stakeholder mapping analysis for the identified project stakeholders:
i. with cluster projects team, design consultant, supervision consultant, contractor,
SMEs, etc.
. in meetings, interviews and workshops.
4. Finalize and develop the project stakeholder map using (PMF-012-COM-062 Stakeholders
Register).
5. Update project stakeholder map at the beginning of every project stage.
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Capital Projects VP Cluster Scheduling & Control Director
Consulted:
Cluster Strategic Planning Director Cluster PMO Director
Cluster Technical Services Director Business Unit Construction Director
Cluster Technical Services Director (in Design Consultant (in design projects)
Informed:
design projects) / Business Unit / Contractor (in “Design &
Construction” projects and
Construction Director (in “Design &
“Construction” projects) / Supervision
Construction” projects and
Consultant (in “Design & Construction”
“Construction” projects) projects and “Construction” projects)
12.2.4.3 PMM-012-COM-015-030 Develop Project Stakeholder Engagement Plan

1. At the Initial Planning stage, conduct project stakeholder engagement analysis using
(PMF-012-COM-064 Stakeholder Engagement Guidelines), as follows:
2. extract and analyze stakeholders’ information in the:
i. Project Stakeholders Register (such as name, position, role in project, location, etc.)

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i. Project Stakeholder Map (power, influence, interest, category, management

approach, etc.).
3. identify the current and desired engagement position of the identified stakeholders:
i. with cluster projects team, design consultant, supervision consultant, contractor,
SMEs, etc.
ii. in meetings, interviews and workshops.
4. Finalize and develop the project stakeholder engagement plan using (PMF-012-COM-065
Stakeholder Engagement Matrix).
5. Update project stakeholder engagement plan at the beginning of every project stage.
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Capital Projects VP Cluster Scheduling & Control Director
Consulted:
Cluster Strategic Planning Director Cluster PMO Director
Cluster Technical Services Director Business Unit Construction Director
Design Consultant (in design projects)
Informed: Cluster Technical Services Director (in
/ Contractor (in “Design &
design projects) / Business Unit
Construction” projects and
Construction Director (in “Design &
“Construction” projects) / Supervision
Construction” projects and
Consultant (in “Design & Construction”
“Construction” projects)
projects and “Construction” projects)
12.2.4.4 PMM-012-COM-015-040 Develop Project Stakeholder Communication Plan

1. At the Initial Planning stage, develop project stakeholder communication plan as follows:
2. extract and analyze stakeholders’ information in the:
i. Project Stakeholders Register (such as name, position, role in project, location, etc.)
iii. Project Stakeholder Mapping (power, influence, interest, category, management
approach, etc.).
iv. Project Stakeholder Engagement (current and desired).
3. collect communication requirements of the identified stakeholders:
i. from cluster projects team, design consultant, supervision consultant, contractor,
SMEs, etc.
v. in meetings, interviews and workshops.
4. Finalize and develop the project stakeholder communication plan using (PMF-012-COM-
066 Project Stakeholder Communication Plan).
5. Update project stakeholder communication plan at the beginning of every project stage.
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager

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Cluster Capital Projects VP Cluster Scheduling & Control Director

Consulted:
Cluster Strategic Planning Director Cluster PMO Director
Cluster Technical Services Director Business Unit Construction Director
Design Consultant (in design projects)
Informed: Cluster Technical Services Director (in
/ Contractor (in “Design &
design projects) / Business Unit
Construction” projects and
Construction Director (in “Design &
“Construction” projects) / Supervision
Construction” projects and
Consultant (in “Design & Construction”
“Construction” projects)
projects and “Construction” projects)

12.3 PMM-012-COM-020 Distribute Correspondence between NWC and the

Second Parties
12.3.1 Objective
The objective of this process is to control the distribution of project correspondences between NWC
and the second parties to ensure the proper correspondence dispatching to the relevant stakeholders
and timely correspondence register updating.
12.3.2 Policies
Policies for this process are:
1. All project information must be communicated through Document Controller s, so that it shall
be recorded and retained by NWC.
2. Each project must be allocated a unique Project ID.
3. The Project ID must be common between the components of the Capital Projects PMS.
4. Communication records must be developed and maintained during whole project life cycle.
5. All hard copies of any project document must be securely stored.
6. All electronic source files of outgoing project information (correspondences, documents,
drawings, etc.) shall be stored in Capital Projects PMS. Where such information bears an
NWC authorization signature, the signature-copy must be scanned, uploaded and
registered accordingly.
7. All incoming project information (correspondences, documents, drawings, etc.) shall be
scanned, uploaded and registered in the Capital Projects PMS.
8. All project information (correspondences, documents, drawings, etc.) shall include the
unique Project ID and the agreed project name.
9. The NWC Project Manager shall monitor the status of team member actions relating to all
incoming and outgoing project information.
10. Manual Transmittals Project correspondence shall:
● Use the mandated Project templates.
● Address the appropriate contact or group for the relevant organization.
● Use a unique reference number and issued date.
● Use a clear and concise subject line.
● Be authorized by the principal contact or designated authority.
11. Every document (hard or electronic) that sent from/to NWC must include the following
information. If the document is created or dispatched in the Capital Projects PMS, these
information to be registered in the system. The information are:
● Reference Number (which include Project ID)
● Development date
● Submission date
● “Confidential” stamp (if the document is confidential)
● Project Name

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● Document title
● Document subject (content)
● Response Required Date (if applicable)
● Attachments list
● Recipient organization
● Recipient position and name
● Sender organization
● Sender position and name
12. When issuing the manual transmittal and documents via email the following information
shall be included:
● The reason for Issue should be noted i.e., Issued for Information, Issued for Review,
etc.
● The documents and the associated manual transmittal being issued will either have
a secure link to the transmittal package via the Capital Projects PMS or are
electronically attached to the email.
● To reduce the cost of tracking the “acknowledgement” copies of transmittals,
consideration should be given to utilizing the “Read Receipt” function within Microsoft
Outlook.
● Documents issued externally are to be in PDF format.
13. Records of projects shall be, during all project stages, continually archived and retained for
a duration as per identified in process (PMM-004-GOV-060 Control Project Management
Documents).
14. Further retention or disposal of project archives at the end of the stipulated archival period
shall be formally instructed as per identified in process (PMM-004-GOV-060 Control Project
Management Documents).
15. The NWC project team and second party team must perform proper document controlling
for all project documents.
16. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
12.3.3 Workflow Chart
Figure 12-4 PMM-012-COM-020 Distribute Correspondence between NWC and the Second Parties Workflow
Chart

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12.3.4 Procedures
12.3.4.1 PMM-012-COM-020-010 Issue the Correspondence

1. The Project Document Controller (from the sending organization) shall:

• receive from the concerned developer (from the sending organization) the draft
correspondence and attachments which to be prepared and sent to the receiving
organization.
• Indicate if the correspondence should be handled as confidential or not.
• ensure the proper details of (policy 11) of this process are provided.
• send the original hard copy correspondence to Project Manager (from the sending
organization) for his review and signature.
2. The Project Manager (from the sending organization) shall:
• review, revise and sign the correspondence.
• send the correspondence to the Organization Document Controller (from the sending
organization).
3. The Organization Document Controller (from the sending organization) shall:
• scan the correspondence and upload the scanned copy to the Enterprise Document
Management System (of the sending organization).
• send the hard copy original correspondence to the receiving organization with extra
cover page for the “Received” stamp.
• Update the project correspondences register (of the sending organization).
Project Document Controller (from the
Responsible:
sending organization) Organization Document Controller
Project Manager (from the sending (from the sending organization)
organization)
Accountable: Project Manager (from the sending organization)

Consulted: Relevant Stakeholder

Organization Document Controller
Informed:
(from the receiving organization)
12.3.4.2 PMM-012-COM-020-020 Receive the Correspondence

1. Receive the correspondence from the carrier of the sending organization.

2. Review the correspondence and ensure that the minimum details of (policy 11) of this
process are provided.
3. Stamp the original and cover page with “Received” and type the date, time and signature.
4. Send back the stamped cover page to the sending organization through his carrier for filing.
5. Simultaneously:
• Scan the correspondence and upload the scanned copy to the Enterprise Document
Management System (of the sending organization).
• Stamp the correspondence (front page) with distribution stamp and send it to the Project
Manager (from the receiving organization).
Organization Document Controller
Responsible:
(from the receiving organization)
Accountable: Project Manager (from the receiving organization)

Consulted: Relevant Stakeholder

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Document Controller (from the sending Project Manager (from the receiving
Informed:
organization) organization)
12.3.4.3 PMM-012-COM-020-030 Review the Correspondence and Define Distribution

1. Receive the correspondence.

2. Review the correspondence and check the confidentiality.
3. If the correspondence is confidential, maintain it confidentially and alert every related
stakeholder to the correspondence confidentiality.
4. Identify all the persons for distribution, if required, by filling in the distribution stamp and
define the required action from each.
5. If the correspondence is directed to the Project Manager (from the receiving organization),
commence performing the appropriate action as response to the correspondence which
may include developing and sending a replying correspondence to the sending organization
via the process (PMM-012-COM-020 Distribute Correspondence between NWC and the
Second Parties).
6. In the correspondence requires interim follow up, use the form (PMF-012-COM-067
Comments Resolution Sheet).
7. Send the correspondence to the Project Document Controller (from the receiving
organization) for distribution and filing.
Project Manager (from the receiving
Responsible:
organization)
Accountable: Project Manager (from the receiving organization)

Consulted: Relevant Stakeholder

Project Document Controller (in the
Informed: Recipients in the Distribution List
receiving organization)
12.3.4.4 PMM-012-COM-020-040 Distribute and File the Correspondence

1. Receive the correspondence.

2. Distribute the correspondence as per the distribution list to commence performing the
appropriate action as a response to the correspondence which may include developing and
sending a correspondence to the sending organization by the process (PMM-012-COM-
020 Distribute Correspondence between NWC and the Second Parties).
3. File the signed received document in the Enterprise Document Management System (of
the sending organization).
4. Update the project correspondences register (of the receiving organization).
Project Document Controller (in the
Responsible:
receiving organization)
Accountable: Project Manager (from the receiving organization)
Project Manager (from the receiving
Consulted:
organization)
Project Manager (from the receiving
Informed: Relevant Stakeholder
organization)

12.4 PMM-012-COM-090 Distribute Submittals for Approval

12.4.1 Objective
The objective of this process is to control the distribution of construction project submittals for
approval for prescribed purposes, such as approval, review and consultation, in a timely manner to
the relevant project stakeholders, and to ensure that proper records are made of all such
communications.

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12.4.2 Policies
Policies for this process are as in paragraph (12.3.2 Policies).
12.4.3 Workflow Chart
Figure 12-5 PMM-012-COM-090 Distribute Submittals for Approval Workflow Chart

12.4.4 Procedures
12.4.4.1 PMM-012-COM-090-010 Issue the Submittal

1. A submittal is any document that contractually:

a. to be developed by the design consultant / contractor.
b. should be approved by NWC.
such as:
a. Approval request for subcontractors and materials (which processed via PMM-
010-QUA-020-030 Approvals of Subcontractors and Materials)
b. Design Submittals (which processed via PMM-06-SCO-030 Define Project
Scope)
c. Shop Drawings
d. As-Built Drawings
e. GIS information
f. Studies
g. Specifications
2. The Originator shall prepare the documents and attachments.
3. The Contractor Document Controller shall check the details:
a. Reference Number (which include Project ID)
b. Revision
c. Date
d. Document Description
e. Signature

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f. Stamp
g. Attachments list
4. The Contractor Document Controller shall send hard copy original Submittal to
Contractor Project Manager for his review and signature.
5. The Contractor Document Controller shall scan the submittal and upload to the Capital
Projects PMS related workflow.
6. The Contractor Document Controller shall copy the submittal and place the copy (hard)
in the Contractor filing system.
7. The Contractor Document Controller shall send the hard copy original Submittal to
Consultant Document Controller with extra cover page for the “Received” stamp.

Responsible: Contractor Project Manager

Accountable: Contractor Project Manager

Consulted: Originator

Informed: Consultant Document Controller

12.4.4.2 PMM-012-COM-090-020 Receive the Submittal

1. Upon receiving, review the submittal and check for:

a. Reference Number (which include Project ID)
b. Revision
c. Date
d. Document Description
e. Signature
f. Stamp
g. Attachments list
2. Stamp the original and cover page with “Received”, date, time and sign.
3. Give the stamped copy to the carrier to return to the Contractor for his filing.
4. Distribute the submittal as per approved Project Document Distribution Matrix.

Responsible: Consultant Document Controller

Accountable: Consultant Project Manager

Consulted: Consultant Project Manager

Informed: Recipients in the Distribution List

12.4.4.3 PMM-012-COM-090-030 Review and Endorse the Submittal

1. Review the submittal and provide comments.

2. Communicate with NWC Project regarding the submittal subject.
3. Decide on submittal approval status and sign the hard copy.
4. Send the submittal to the NWC Project Manager for approval.
5. This procedure shall be performed within 10 days from the submission date.

Responsible: Consultant Project Manager

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Accountable: Consultant Project Manager

Consulted: NWC Project Manager

Informed: Consultant Document Controller

12.4.4.4 PMM-012-COM-090-040 Approve the Submittal

1. Receive the Capital Projects PMS notification message about the new document upload (if
included in workflow distribution).
2. Open the document in Capital Projects PMS and review the contents.
3. Decide on submittal approval status and sign the hard copy.
4. Inform the Consultant Project Manager in case of having comments or recommendations.
5. This procedure shall be performed within 2 days from the submission date.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Consulted: Consultant Document Controller

Informed: Consultant Project Manager

12.4.4.5 PMM-012-COM-090-050 Return the Submittal

1. Scan the submittal and upload to the Capital Projects PMS Fill-up all the necessary fields.
2. Send the hard copy original submittal to Contractor Document Controller with extra cover
page for the “Received” stamp.
3. File the signed received submittal in the Consultant filing system.
4. Update the submittal register.
5. Review automatically updated document status via Capital Projects PMS.

Responsible: Consultant Document Controller

Accountable: Consultant Project Manager

Consulted: Consultant Project Manager

Informed: Contractor Document Controller

12.5 PMM-012-COM-100 Distribute Non-Conformance Report (NCR)

12.5.1 Objective
The objective of this process is to control the distribution of Non-Conformance Report (NCR)for
prescribed purposes, such as approval, review and consultation, in a timely manner to the relevant
project stakeholders, and to ensure that proper records are made of all such communications.
12.5.2 Policies
Policies for this process are as in paragraph (12.3.2 Policies) beside the following policies:
1. NCRs can be crated for aspects of QA, QC or HSE.
2. All corrective and preventive actions must be formally proposed on the associated non-
conformance report and approved in principle before implementation.
3. Corrective action should be designed to remedy the observed non-conformance and to treat
its root cause to prevent recurrence.

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4. Preventive actions should be designed to eliminate the causes of potential non-

conformances, which are related to the actual non-conformance report and its root cause.
5. No NCR be closed before the approved corrective and preventive actions be taken and
validated.
6. All NCRs must be closed before approving the final invoice.
7. ANY BoQ ITEM THAT RELATED TO AN OPEN NCR SHALL NOT BE PAID UNLESS THE
OPEN NCR BE CLOSED.
8. All corrective and preventive actions related to PMM application must be recorded in a
central register by the Quality Assurance Director.

12.5.3 Workflow Chart

Figure 12-6 PMM-012-COM-100 Distribute Non-Conformance Report (NCR) Workflow Chart

12.5.4 Procedures
12.5.4.1 PMM-012-COM-100-010 Draft the Non-Conformance Report (NCR)

1. If a non-conformance monitored, prepare a Non-Conformance Report (NCR) using (PMF-

012-QUA-123 Non-Conformance Report NCR (General)).
2. Send the NCR to:
• Consultant Project Manager (Construction or design & construction projects)
• NWC Project Manager (Design projects)
• Quality Assurance Director (HQ QA audits)
• Cluster Quality Assurance Section Head (Cluster QA audits)
• Business Unit Construction Director (Cluster HSE audits)
3. The NCR originators may exceed the roles mentioned in the below responsible cell to any
team member from NWC or the supervision consultant.

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Supervision Consultant Quality

Responsible:
Engineer (construction or design &
construction projects) / Supervision
Consultant HSE Engineer
(construction or design & construction
projects) / Cluster Technical Services
Director (in design projects or
construction projects) / Audit Team
leader (HQ or Cluster QA audits) /
Business Unit Safety Section Head (for
cluster HSE audits)
Consultant Project Manager (Construction or design & construction projects) /
Accountable:
NWC Project Manager (Design projects) / Quality Assurance Director (HQ QA
audits) / Cluster Quality Assurance Section Head (Cluster QA audits) /
Business Unit Construction Director (Cluster HSE audits)
NWC Project Manager
Consulted:
Consultant Project Manager Cluster Quality Assurance Section
(Construction or design & construction Head (Cluster QA audits)
projects) Business Unit Construction Director
Quality Assurance Director (HQ QA (Cluster HSE audits)
audits)
Consultant Project Manager
Informed:
(Construction or design & construction
Cluster Quality Assurance Section
projects)
Head (Cluster QA audits)
NWC Project Manager (Design
Business Unit Construction Director
projects)
(Cluster HSE audits)
Quality Assurance Director (HQ or
Cluster QA audits)
12.5.4.2 PMM-012-COM-100-020 Review, Sign and Issue the Non-Conformance Report
(NCR)

1. Review, evaluate and sign the NCR provided.

2. Send the hard copy of the original NCR to the NWC / Supervision Consultant Documents
Controller.
3. The Supervision Consultant / NWC Documents Controller shall:
a. Scans the NCR and upload to the Capital Projects PMS.
b. Sends the original hard copy to the Contractor / Design Consultant Document
Controller.
c. Sends extra cover page for the receive stamp copy.
d. Sends copy to the NWC Project Manager for his information
4. Update the NCR register accordingly using (PMF-012-QUA-124 NCRs Register (General)).
Supervision Consultant Project
Responsible:
Manager (Construction or design &
construction projects) / NWC Project
Supervision Consultant Documents
Manager (Design projects) / Quality
Controller (Construction or design &
Assurance Director (HQ QA audits) /
construction projects) / NWC
Cluster Quality Assurance Section
Document Controller (All other cases)
Head (Cluster QA audits) / Business
Unit Construction Director (Cluster
HSE audits)
NWC Project Manager (in projects) / Quality Assurance Director (for QA audits)
Accountable:
/ Business Unit Construction Director (for cluster HSE audits)

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NWC Project Manager

Consulted:
Supervision Consultant Quality Cluster QA Section Head
Engineer Cluster HSSE Director
Supervision Consultant HSE Engineer Cluster Technical Services Director
Cluster Technical Services Director Quality Assurance Director
Audit Team leader Business Unit Construction Director
Business Unit Safety Section Head
Contractor Document Controller (in
Informed: Design Consultant Document
construction or design & construction
Controller (in design projects)
projects)
12.5.4.3 PMM-012-COM-100-040 Receive the Non-Conformance Report (NCR)

1. Upon receipt, review the NCR and check for:

a. NCR Number (which include Project ID).
b. Description of non-conformity.
2. Stamp the original and cover page with “Received”, date, time and sign.
3. Give the stamped copy to the carrier to return to the Supervision Consultant (in
construction projects) / NWC (in design projects) for his filing.
4. Distribute to:
a. Contractor / Design Consultant Project Manager (for his information).
b. Contractor / Design Consultant Quality Manager (if it is a Quality issue).
c. Contractor / Design Consultant HSE Manager (if it is an HSE issue).
Contractor Document Controller
Responsible:
(construction projects) / Design
Consultant Document Controller
(design projects)
Contractor Document Controller (construction projects) / Design Consultant
Accountable:
Document Controller (design projects)
Contractor Quality Manager Design Consultant Quality Manager
Consulted:
(construction projects) (design projects)
Contractor HSE Manager Design Consultant HSE Manager
(construction projects) (design projects)
Consultant Document Controller
Informed:
(construction projects) Contractor / Design Consultant Quality
NWC Project Document Controller Manager (for Quality issue).
(design projects) Contractor / Design Consultant HSE
Contractor / Design Consultant Project Manager (for HSE issue)
Manager
12.5.4.4 PMM-012-COM-100-050 Propose Corrective and Preventive Actions

1. The Contractor Quality Manager (for Quality issue) / Design Consultant Quality
Manager (for Quality issue) / Contractor HSE Manager (for HSE issue) / Design
Consultant HSE Manager (for HSE issue) shall:
a. review and evaluate the NCR and its attached documents.
b. discuss findings and propose corrective and preventive actions with agreed
completion dates.
c. return the NCR to the Document Controller for submission.
2. The Documents Controller shall submit the NCR with proposed corrective and
preventive actions to the Supervision Consultant Documents Controller (Construction
or design & construction projects) / NWC Document Controller (All other cases).
3. This procedure shall be performed within 2 days from receiving the NCR.

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Contractor Quality Manager (for Contractor Document Controller

Responsible:
Quality issue) / Design Consultant (construction projects) / Design
Quality Manager (for Quality issue) / Consultant Document Controller
Contractor HSE Manager (for HSE (design projects)
issue) / Design Consultant HSE
Manager (for HSE issue)
Contractor Project Manager / Design Consultant Project Manager
Accountable:
Contractor Quality Manager Design Consultant Quality Manager
Consulted:
(construction projects) (design projects)
Contractor HSE Manager Design Consultant HSE Manager
(construction projects) (design projects)
Supervision Consultant Documents
Informed:
Controller (Construction or design &
construction projects) / NWC
Document Controller (All other cases)
12.5.4.5 PMM-012-COM-100-060 Approve the Proposed Corrective and Preventive Action

1. Distribute as required to one or more of the following:

a. Supervision Consultant Quality Engineer (in construction projects)
b. Supervision Consultant HSE Engineer (in construction projects)
c. NWC Project Manager
d. Cluster QA Section Head
e. Cluster Technical Services (in design projects)
2. Review and discuss with NWC project manager.
3. Approve/reject the proposed corrective and preventive actions.
4. Send for issuance the NCR form which updated with the corrective and preventive
actions approval/rejection to:
a. Consultant Document Controller (in construction projects)
b. Cluster Document Control Section Head (in design projects)
5. Issue the NCR which updated with the proposed corrective and preventive actions
approval/rejection to Contractor / Design Consultant.
6. The response to contractor shall be within 2 days.
7. In case of rejecting the corrective and/or preventive actions, the procedures (PMM-012-
COM-100-050 Propose Corrective Action) and (PMM-012-COM-100-060 Review and
Approve the Proposed Corrective Action) shall be repeated until corrective actions
approval.
8. Update the NCR register accordingly using (PMF-012-QUA-124 NCRs Register
(General))
Supervision Consultant Project
Responsible:
Manager (Construction or design &
construction projects) / NWC Project
Supervision Consultant Documents
Manager (Design projects) / Quality
Controller (Construction or design &
Assurance Director (HQ QA audits) /
construction projects) / NWC
Cluster Quality Assurance Section
Document Controller (All other cases)
Head (Cluster QA audits) / Business
Unit Construction Director (Cluster
HSE audits)
NWC Project Manager (in projects) / Quality Assurance Director (for QA audits)
Accountable:
/ Business Unit Construction Director (for cluster HSE audits)

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Contractor Quality Manager (in

Consulted: Design Consultant HSE Manager (in
construction projects)
design projects)
Contractor HSE Manager (in
Cluster Technical Services Director (in
construction projects)
design projects)
Design Consultant Quality Manager (in
Cluster QA Section Head
design projects)
Contractor Document Controller (in Design Consultant Document
Informed:
construction projects) Controller (in design projects)
12.5.4.6 PMM-012-COM-100-070 Implement the Approved Corrective and Preventive
Actions

1. After implementation of the approved corrective and preventive actions and receiving
acceptance document on the implementation such as accepted WIR, request for closing
the NCR by submitting it with the acceptance document.
2. Update the NCR register accordingly using (PMF-002-QUA-124 NCRs Register (General))
Contractor Document Controller (in
Responsible:
construction projects) / Design
Consultant Document Controller (in
design projects)
Contractor Document Controller (in construction projects) / Design Consultant
Accountable:
Document Controller (in design projects)
Contractor Quality Manager (in Design Consultant Quality Manager (in
Consulted:
construction projects) design projects)
Contractor HSE Manager (in Design Consultant HSE Manager (in
construction projects) design projects)
Supervision Consultant Document Cluster Document Control Section
Informed:
Controller (in construction projects) Head (in design project)
12.5.4.7 PMM-012-COM-100-080 Close Non-Conformance Report (NCR)

1. Distribute the NCR as per approved Project Document Distribution Matrix.

2. Verify corrective action implementation through the approved WIR.
3. Sign NCR closure section.
4. Close the NCR to Contractor / Design Consultant and upload it to Capital Projects PMS.
5. Update the NCR register accordingly using (PMF-010-QUA-124 NCRs Register (General))
Supervision Consultant Quality
Responsible:
Engineer (in construction projects) /
Supervision Consultant HSE Engineer
(in construction projects) / NWC
Project Manager (in design projects) /
Quality Assurance Director / Cluster
QA Section Head
Accountable: NWC Project Manager / Quality Assurance Director
Supervision Consultant Quality
Consulted: Cluster Technical Services Director (in
Engineer (in construction projects)
design projects)
Supervision Consultant HSE Engineer
Cluster QA Section Head
(in construction projects)
Contractor Project Manager (in
Informed:
construction projects)
NWC Project Manager
Design Consultant Project Manager (in
design projects)

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12.6 PMM-012-COM-110 Distribute Request for Information (RFI)

12.6.1 Objective
The objective of this process is to control the distribution of project Request for Information (RFI) for
prescribed purposes, such as approval, review and consultation, in a timely manner to the relevant
project stakeholders, and to ensure that proper records are made of all such communications.
12.6.2 Policies
Policies for this process are as in paragraph (12.3.2 Policies).
12.6.3 Workflow Chart
Figure 12-7 PMM-012-COM-110 Distribute Request for Information (RFI) Workflow Chart

12.6.4 Procedures
12.6.4.1 PMM-012-COM-110-010 Issue the Request for Information (RFI)

1. Originator shall prepare the RFI and attachments using (PMF-012-COM-014 Request
for Information).
2. Contractor Document Controller shall check the details:
a. Reference Number (which include Project ID)
b. Revision
c. Date
d. Document Description
e. Attachments list
3. Contractor Document Controller shall send hard copy original RFI to Contractor Project
Manager for his review and signature.
4. After Contractor Project Manager signature, Contractor Document Controller shall scan
the RFI and upload to the Capital Projects PMS related workflow.
5. Contractor Document Controller shall copy the RFI and place the copy (hard) in the
Contractor filing system.
6. Contractor Document Controller shall send the hard copy original RFI to Consultant
Document Controller with extra cover page for the “Received” stamp.

Responsible: Contractor Project Manager

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Accountable: Contractor Project Manager

Consulted: Originator
Supervision Consultant Document
Informed:
Controller
12.6.4.2 PMM-012-COM-110-020 Receive the Request for Information (RFI)

1. Upon receiving, review the RFI and check for:

a. Reference Number (which include Project ID),
b. Date,
c. Required Date,
d. Information Required
e. Attachments list
2. Stamp the original and cover page with “Received”, date, time and sign.
3. Give the stamped copy to the carrier to return to the Contractor for his filing.
4. Distribute the RFI as per approved Project Document Distribution Matrix.
Supervision Consultant Document
Responsible:
Controller
Accountable: Supervision Consultant Project Manager
Supervision Consultant Project
Consulted:
Manager
Informed: Recipients in the Distribution List

12.6.4.3 PMM-012-COM-110-030 Review the Request for Information (RFI)

1. Receive the Capital Projects PMS notification message about the new RFI uploaded (if
included in workflow distribution).
2. Open the RFI in Capital Projects PMS and review the contents within 2 days.
3. Inform the Consultant Project Manager in case of having comments/recommendations.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Supervision Consultant Document
Consulted:
Controller
Supervision Consultant Project
Informed:
Manager
12.6.4.4 PMM-012-COM-110-040 Review the Request for Information (RFI) and Provide the
Requested Information

1. Review the RFI and provide the information requested, if required, discuss with the NWC
Project Manager within 3 days.
2. Sign the RFI.
3. Return hard copy original RFI to the Document Controller for issue to the Contractor.
Supervision Consultant Project
Responsible:
Manager
Accountable: Supervision Consultant Project Manager

Consulted: NWC Project Manager

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Supervision Consultant Document

Informed:
Controller
12.6.4.5 PMM-012-COM-110-050 Return the Request for Information (RFI) and Collated
Information

1. Scan the RFI and upload to the Capital Projects PMS Fill-up all the necessary fields.
2. Send the hard copy original RFI to Contractor Document Controller with extra cover page
for the “Received” stamp.
3. File the signed received RFI in the Consultant filing system.
4. Review automatically updated document status via Capital Projects PMS.
Supervision Consultant Document
Responsible:
Controller
Accountable: Supervision Consultant Project Manager
Supervision Consultant Project
Consulted:
Manager
Informed: Contractor Document Controller

12.7 PMM-012-COM-113 Archive the Project Documents

12.7.1 Objective
The objective of this process is to ensure that a copy of every project document is properly secured
in the Capital Projects PMS.
12.7.2 Policies
Policies for this process are as in paragraph (12.3.2 Policies) beside the following policies:
1. Every project document must be uploaded and secured in the capital projects PMS once it
is formally issued.
2. Every uploaded document must be formally signed by an authorized person.
12.7.3 Workflow Chart
Figure 12-8 PMM-012-FYP-113 Archive Project Management Documents Workflow Chart

12.7.4 Procedures
12.7.4.1 PMM-012-COM-113-010 Upload a Project Document

1. The NWC Project Manager shall upload the project document to the Capital Projects PMS.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Cluster Document Control Section
Consulted:
Head
Cluster Document Control Section
Informed:
Head

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12.7.4.2 PMM-012-COM-113-020 Check and Accept the Project Document Properness

1. The Cluster Document Control Section Head shall check the properness of the uploaded
project document then forward the project document to the Document Control Manager.
2. The Document Control Manager shall check the properness of the uploaded project
document and accept it on the Capital Projects PMS.
Cluster Document Control Section
Responsible: Document Control Manager
Head
Accountable: Document Control Manager

Consulted: NWC Project Manager

Informed: Contract Director

12.8 PMM-012-COM-115 Cascade Objectives

12.8.1 Objective
The objective of this process is to ensure proper cascade of Project Management Objectives
(business, department, cluster and/or project objectives) to all users of the PMM, including second
party Consultants and Contractors.
12.8.2 Policies
Policies for this process are:
1. A formal cascade of NWC strategic and tactical objectives must take place for alignment by
every Project Team member. See the objective cascade model below.
Figure 12-9 Objectives Cascade Model

2. Objectives to be disseminated through a variety of channels, including posters, notice

boards, competitions, occasional bulletins, alerts and periodic newsletters.

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12.8.3 Workflow Chart

Figure 12-10 PMM-012-COM-115 Cascade Objectives Workflow Chart

12.8.4 Procedures
12.8.4.1 PMM-012-COM-115-010 Cascade Objectives

1. As per the (PMF-012-COM-047 Objectives Cascade Model), every level head in

consultation with his team shall:
• receive, comprehend and adopt objectives from the higher levels.
• develop objectives for his level and gain agree upon them.
• collect approval on these objectives.
• cascade the objectives to the level individuals and lower level leaders.
2. The Projects Execution VP shall periodically, ensure the continuous objectives
development and cascading.
Projects EVP
Responsible: Business Unit Construction Director
Projects Execution VP
NWC Project Manager
Cluster Capital Projects VP
Accountable: Projects Execution VP
Projects EVP
Consulted: Business Unit Construction Director
Projects Execution VP
NWC Project Manager
Cluster Capital Projects VP
Projects EVP
Informed: Business Unit Construction Director
Projects Execution VP
NWC Project Manager
Cluster Capital Projects VP

12.9 PMM-012-COM-120 Design Performance Reporting

12.9.1 Objective
The objective of this process is to assure standardized distribution of design project progress reports
and management reports for the NWC Clusters and HQ.
12.9.2 Policies
Policies for this process are:
1. Every design project should:
i. conduct a weekly progress meeting.
ii. develop a progress report on monthly basis.
iii. conduct a monthly progress meeting.
2. Monthly progress reports by Design Consultant must include the following (as applicable):
● Updated schedule in “Primavera P6” format
● Progress curves
● Forecasts

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● Critical Item Action

● Budget information
● Cashflow update
● Invoices log
● Variation Order
● Design status
● Risk register
● Submitted and potential claims
● Issues status
3. Every progress report must be issued a MOM that duly signed by all meeting attendees.
After signature, the MOM of any progress meeting is a formal project document.
12.9.3 Workflow Chart
Figure 12-11 PMM-012-COM-120 Design Performance Reporting Workflow Chart

12.9.4 Procedures
12.9.4.1 PMM-012-COM-120-010 Conduct Weekly Design Progress Meetings

1. The NWC Project Manager shall arrange conducting weekly meetings to discuss the
progress of the design project covering at least the agenda in (PMF-012-COM-021 Weekly
Progress Meeting Agenda).
2. Conduct this meeting in attendance of:
• NWC Project Manager.
• Cluster Technical Services Director.
• Relevant NWC Projects department members.
• Design Consultant.
• any relevant internal or external stakeholder.
3. The attendees shall highlight any issues or concerns which may affect design progress.

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4. The NWC Project Manager shall write and distribute MOM using (PMF-012-COM-051
Standard Minutes of Meeting Template).
Cluster Technical Services Director
Responsible: Design Consultant
NWC Project Manager
Accountable: NWC Project Manager

Consulted: Design Consultant Cluster Scheduling Section Head

Informed: NWC Project Team Design Consultant

12.9.4.2 PMM-012-COM-120-020 Develop Design Consultant Monthly Progress Report

1. Develop Design Consultant monthly progress report based on outcome of weekly meetings
using (PMF-012-COM-058 Monthly Progress Report - Design Project)
2. Highlight any issues or concerns which may affect design progress.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: Cluster Scheduling Section Head

Informed: NWC Project Manager

12.9.4.3 PMM-012-COM-120-030 Evaluate the Design Consultant’s Monthly Progress Report

1. Distribute the monthly progress report as per approved Project Document Distribution
Matrix.
2. Evaluate the Design Consultant’s monthly progress report.
3. Identify any issues highlighted as concern relating to progress.
4. Utilize (PMF-012-COM-018 Performance Report Checklist).

Responsible: Cluster Technical Services Director NWC Project Manager

Accountable: NWC Project Manager

Cluster Scheduling Section Head
Consulted:
Cluster Contracts Administration Cluster Cost Estimation Specialist
Manager
Informed: Design Consultant

12.9.4.4 PMM-012-COM-120-040 Conduct Design Monthly Progress Meeting

1. The NWC Project Manager shall arrange conducting monthly meetings to discuss the
progress of the design project covering at least the agenda in (PMF-012-COM-023 Monthly
Progress Meeting Agenda).
2. Conduct this meeting in attendance of:
• NWC Project Manager.
• Cluster Technical Services Director.
• Relevant NWC Projects department members.
• Design Consultant.
• any relevant internal or external stakeholder.
3. The attendees shall highlight any issues or concerns which may affect design progress.

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4. The NWC Project Manager shall write and distribute MOM using (PMF-012-COM-051
Standard Minutes of Meeting Template).

Responsible: Cluster Technical Services Director NWC Project Manager

Accountable: NWC Project Manager

Consulted: Design Consultant Cluster Scheduling Section Head

NWC Project Team
Informed: Cluster Scheduling & Control Director
Design Consultant
12.9.4.5 PMM-012-COM-120-050 Add an Executive Summary to the Design Consultant’s
Report

1. Add an executive summary to the design consultant’s report.

2. Ensure all major issues identified within the progress reports are included.
3. Distribute the executive summary to NWC Project Manager for review.

Responsible: Cluster Engineering Manager

Accountable: Cluster Technical Services Director

Cluster Scheduling Section Head
Consulted:
Cluster Project Control Section Head NWC Project Manager
Cluster Contracts Administration Design Consultant
Manager
NWC Project Manager Scheduling Control Director
Informed:
Design Consultant Cost Control Director
Cluster Technical Services Director Project Performance Monitoring
Cluster Scheduling & Control Director Director
Business Unit Construction Director Engineering Director
12.9.4.6 PMM-012-COM-120-060 Approve the Monthly Design Report and Design Executive
Summary

1. Review the design monthly report and design executive summary.

2. Ensure all issues discussed previously have been identified clearly.
3. Identify any issues highlighted as concern relating to progress including quality.
4. NWC Project shall approve and forward the construction monthly progress report and the
design executive summary to:
• Cluster Technical Services Director
• Cluster Scheduling & Control Director
• Project Performance Monitoring Director

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster Technical Services Director Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Project Control Section Head Cluster Cost Estimation Specialist
Cluster Technical Services Director Project Performance Monitoring
Informed:
Cluster Scheduling & Control Director Director
12.9.4.7 PMM-012-COM-120-070 Discuss the Reported Design Projects Progress in the
Monthly Cluster Progress Meeting

1. In the monthly Cluster Management meeting:

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• Discuss the reported design projects progress and the current status of these projects.
• Discuss the executive summaries that created by the Cluster Technical Services
Director.
• Identify any areas of concern which need to be addressed.
• Develop action items with responsibilities.
Cluster Capital Projects VP Cluster PMO Director
Responsible:
Cluster Technical Services Director Business Unit Construction Directors
Cluster Scheduling & Control Director NWC Project Managers
Accountable: Cluster Capital Projects VP

Consulted: Design Consultants

Cluster Capital Projects VP Cluster PMO Director
Informed:
Cluster Technical Services Director Business Unit Construction Directors
Cluster Scheduling & Control Director NWC Project Managers
12.9.4.8 PMM-012-COM-120-080 Receive the Monthly Cluster Progress Report

1. Receive the monthly cluster progress report.

2. Perform the actions that assigned to the NWC Project Manager in the report.
3. Escalate any issue that cannot be resolved at project level.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Consulted: Cluster Technical Services Director

Informed: Cluster Technical Services Director

12.10 PMM-012-COM-130 Construction / Design & Construction Performance

Reporting
12.10.1 Objective
The objective of this process is to assure standardized distribution of construction project progress
reports and management reports for the NWC Clusters and HQ.
12.10.2 Policies
Policies for this process are:
1. Every construction project should:
i. develop a progress report on daily basis.
ii. develop a progress report on weekly basis.
iii. conduct a weekly progress meeting.
iv. develop a progress report on monthly basis.
v. conduct a monthly progress meeting.
2. Monthly progress reports by Contractors must include the following (as applicable):
● Updated “Primavera P6” schedule
● Progress curves
● Forecasts
● Critical Item Action
● Budget information
● Cashflow update

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● Invoices log
● Variation Order
● Long lead items status
● Shop drawings status
● Design status (EPC Projects)
● Risk register
● Submitted and potential claims
● Issues status
● NCR Status
● HSE Summary
● Local Content Progress Report
3. Every progress report must be issued a MOM that duly signed by all meeting attendees.
After signature, the MOM of any progress meeting is a formal project document.
12.10.3 Workflow Chart
Figure 12-12 PMM-012-COM-130 Construction / Design & Construction Performance Reporting Workflow
Chart

12.10.4 Procedures
12.10.4.1 PMM-012-COM-130-010 Develop Contractor Daily, Weekly and Monthly
Construction Progress Report

1. Develop and submit Contractor daily construction report (PMF-012-COM-050 Daily

Construction Report).
2. At the agreed day in every week, develop and submit contractor weekly progress report:
• (PMF-012-COM-048 Weekly Progress Report - Construction Project) for construction
projects.

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• (PMF-012-COM-049 Weekly Progress Report - Design & Construction Project) for

design & construction projects.
3. Attach to the report the documents that stated in the report or any other required documents
as applicable.
4. At the agreed date in every month, develop and submit Contractor monthly progress report
• (PMF-012-COM-057 Monthly Progress Report - Construction Project)
OR
• (PMF-012-COM-059 Monthly Progress Report - Design & Construction Project)
based on outcome of weekly meetings attaching to the report the documents that stated in
the report or any other required documents as applicable.
5. Attach to the monthly progress report the:
• Monthly quality report (PMF-010-QUA-114 Monthly Quality Report).
• Monthly HSE report (PMF-015-HSE-014 Monthly HSE Report).
• Updated risk register (PMF-013-RIS-003 Project Risk Register).
• Soft copy of updated schedule in “Primavera P6” format.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant NWC Project Manager

Informed: Supervision Consultant NWC Project Manager

12.10.4.2 PMM-012-COM-130-020 Conduct Weekly Construction Progress Meeting

1. The Supervision Consultant shall arrange conducting weekly meetings to discuss the
progress of the construction project covering at least the agenda in (PMF-012-COM-021
Weekly Progress Meeting Agenda).
6. Conduct this meeting in attendance of:
• NWC Project Manager.
• Supervision Consultant.
• Relevant NWC Projects department members.
• Contractor.
• any relevant internal or external stakeholder.
7. The attendees shall highlight any issues or concerns which may affect construction
progress.
8. The Supervision Consultant shall write and distribute MOM using (PMF-012-COM-051
Standard Minutes of Meeting Template).
NWC Project Manager
Responsible: Contractor
Supervision Consultant
Accountable: NWC Project Manager

Consulted: Contractor Supervision Consultant

NWC Project Manager
Informed: Business Unit Construction Director
Contractor

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12.10.4.3 PMM-012-COM-130-025 Approve the Daily and Weekly Construction Progress

Report

1. For the daily construction report (PMF-012-COM-050 Daily Construction Report), the
supervision consultant shall review and approve the report.
2. For the weekly progress report (PMF-012-COM-048 Weekly Progress Report -
Construction Project) or (PMF-012-COM-049 Weekly Progress Report – Design &
Construction Project), the followings shall be performed on the next day to day of the
construction weekly progress meeting:
• the contractor shall revise the report as per the agreed MOM then resubmit
• the supervision consultant shall review and endorse the report.
• the NWC Project Manager shall review and approve the report.
NWC Project Manager
Responsible: Contractor
Supervision Consultant
Accountable: NWC Project Manager

Consulted: Contractor Supervision Consultant

NWC Project Manager
Informed: Business Unit Construction Director
Supervision Consultant
12.10.4.4 PMM-012-COM-130-030 Evaluate the Monthly Construction Progress Report

1. Distribute the contractor’s construction monthly progress report as per approved Project
Document Distribution Matrix.
2. Evaluate the contractor’s construction monthly progress report.
3. Identify any issues highlighted as concern relating to progress.
4. Utilize the performance report checklist (PMF-012-COM-018 Performance Report
Checklist).

Responsible: Supervision Consultant

Accountable: NWC Project Manager

Cluster Project Control Section Head
Consulted: Supervision Consultant
Cluster Contracts Administration
NWC Project Manager
Manager
Cluster Scheduling Section Head
Cluster Cost Estimation Specialist
Informed: Contractor NWC Project Manager

12.10.4.5 PMM-012-COM-130-040 Conduct Monthly Construction Progress Meeting

1. The Supervision Consultant shall arrange conducting monthly meetings to discuss the
progress of the construction project covering at least the agenda in (PMF-012-COM-023
Monthly Progress Meeting Agenda).
2. Conduct this meeting in attendance of:
• NWC Project Manager.
• Supervision Consultant.
• Relevant NWC Projects department members.
• Contractor.
• any relevant internal or external stakeholder.
3. The attendees shall highlight any issues or concerns which may affect construction
progress.

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4. The Supervision Consultant shall write and distribute MOM using (PMF-012-COM-051
Standard Minutes of Meeting Template).
NWC Project Manager
Responsible: Contractor
Supervision Consultant
Accountable: NWC Project Manager

Consulted: Supervision Consultant Contractor

NWC Project Manager Business Unit Construction Director
Informed:
Contractor Cluster Scheduling & Control Director
12.10.4.6 PMM-012-COM-130-050 Add an Executive Summary to the Construction Monthly
Report

1. Review the Construction Monthly report and identify improper information.

2. Create an executive summary to the Construction Monthly progress report highlighting the
improved information using (PMF-012-COM-056 Executive Summary of the Monthly
Progress Report) which follows same structure of the monthly progress report to ensure the
inclusion of all aspects of the progress reports.
3. Distribute the executive summary to NWC Project Manager and Cluster Contracts
Administration Manager for review.

Responsible: Supervision Consultant

Accountable: NWC Project Manager

Consulted: Supervision Consultant Contractor

Scheduling Control Director
Informed: NWC Project Manager
Cost Control Director
Contractor
Project Performance Monitoring
Business Unit Construction Director
Director
12.10.4.7 PMM-012-COM-130-060 Approve the Construction Monthly Report and
Construction Executive Summary

1. Review the Construction Monthly report and construction executive summary.

2. Ensure all issues discussed previously have been identified clearly.
3. Identify any issues highlighted as concern relating to progress including quality and HSE.
4. NWC Project shall approve and forward the Construction Monthly Progress report and the
construction Executive Summary to:
• Business Unit Construction Director
• Cluster Scheduling & Control Director
• Scheduling Control Director
• Project Performance Monitoring Director

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Supervision Consultant Cluster Contracts Administration
Consulted:
Cluster Scheduling Section Head Manager
Cluster Project Control Section Head Cluster Cost Estimation Specialist
Scheduling Control Director
Informed: Business Unit Construction Director
Project Performance Monitoring
Cluster Scheduling & Control Director
Director

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12.10.4.8 PMM-012-COM-130-070 Discuss the Reported Construction Projects Progress in

the Monthly Cluster Progress Meeting

1. In the monthly cluster management meeting:

• Discuss the reported design projects progress and the current status of these projects.
• Discuss the executive summaries that created by the supervision consultants.
• Identify any areas of concern which need to be addressed.
• Develop action items with responsibilities.
2. After the meeting, escalate any issues which have been identified to date which cannot be
resolved at project level.
Cluster Capital Projects VP Cluster PMO Director
Responsible:
Cluster Technical Services Director Business Unit Construction Directors
Cluster Scheduling & Control Director NWC Project Manager
Accountable: Cluster Capital Projects VP

Consulted: Supervision Consultants Contractors

Cluster Capital Projects VP Cluster PMO Director
Informed:
Cluster Technical Services Director Business Unit Construction Directors
Cluster Scheduling & Control Director NWC Project Managers
12.10.4.9 PMM-012-COM-130-080 Receive the Monthly Cluster Progress Report

1. Receive the monthly cluster Progress Report.

3. Direct to perform the actions that assigned to the NWC Project Manager in the report.
4. Escalate any issue that cannot be resolved at project level.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Consulted: Supervision Consultant Business Unit Construction Directors

Informed: Business Unit Construction Directors

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13 Project Risk Management

The subjects of this particular section of the Project Management Manual (PMM) are Project Risk
Management. Its purpose is to establish a comprehensive Risk Management process that facilitates proactive
and timely responses to potential risks, while maximizing opportunities.
This is achieved through the systematic identification, assessment, and mitigation of risks, ensuring that risk
exposure is minimized and opportunities are fully realized.
It also aims to ensure that risk management at the portfolio level is conducted in an integrated manner, taking
into account the entire organizational framework. This approach ensures alignment and coherence in
managing overall risks, thereby supporting the achievement of NWC's strategic goals through the following:
● Ensure Adherence to the Risk Management Process:
To ensure that all employees, departments, functions, consultants, and contractors across all NWC
Clusters adhere to the established Risk Management Process. NWC aims to maintain a robust risk
management framework that seamlessly integrates risk management practices into daily decision-making
processes.
● Implement Systematic Risk Identification and Assessment:
To systematically identify and assess risks at the project, program, and portfolio levels, ensuring
alignment with NWC’s risk appetite and overall risk strategies.
● Enhance Project Risk Management:
To ensure that all projects actively manage risks within their respective areas of operation. Projects will
be required to develop and implement appropriate risk response strategies aimed at mitigating identified
risks, minimizing potential negative impacts, addressing critical issues, reducing disruptions, and
capitalizing on opportunities.
● Integrate Risk Management into Stage Gate Processes:
To integrate risk management practices into the stage-gate processes, ensuring that risks and
uncertainties are identified, assessed, and mitigated at each stage of the project lifecycle.
● Foster a Culture of Risk Awareness and Accountability:
To cultivate a culture of risk awareness and accountability across all NWC entities, enabling effective
management of project risks and safeguarding the success of all projects.
● Ensure Compliance with International Standards:
To ensure that the Risk Management Process is fully compliant with the requirements of:
○ ISO 31000:2018 Risk Management Principles and Guidelines
○ EXPRO - National Manual for Project Management - Volume 13, Chapter 2: Risk Management
Procedure
○ PMI - The Standard for RISK Management in Portfolios, Programs and Projects.
For further details, refer to (PMF-013-RIS-019: Risk Management Process).

The high-level process map for the Project Risk Management is illustrated below in Figure 13-1:

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Figure 13-1 High-Level Process Map for Project Risk Management

13.1 PMM-013-RIS-010 Risk Management at Portfolio Level

13.1.1 Objective
The objective of this section is to ensure that risk management at the portfolio level is carried out in
an integrated manner, considering the entire organizational framework, thereby aligning risk
management strategies across all levels of the organization by adhering to the following:
● Develop the Risk Management Plan:

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To develop the Risk Management Plan section under NWC Project Management Plan, ensuring a
proactive and early response to potential risks and opportunities.
● Maximize Value from Opportunities:
To ensure that opportunities are systematically identified and planned for, with strategies designed
to maximize the value attained from these opportunities.
● Minimize the Impact of Threats:
To plan for and address potential threats, implementing strategies that minimize their impact and
reduce any adverse effects on project outcomes.
13.1.2 Policies
Policies for this process are:
1. The NWC Projects Cluster fully supports the organization's risk appetite and consistently
takes all necessary steps to ensure that the Project Management System remains aligned
with the risk appetite and strategies. There are no exceptional circumstances under which
the prevailing Risk Management policies of NWC may be disregarded at the Cluster,
program, or individual project level.
2. The planning of Risk Management initially starts at Cluster program level (i.e., for groups of
inter-related and connected projects) during the Inception phase and then cascades to
individual project level during the feasibility phase of each individual project.
3. When a project is part of a program, the Program Manager at the Cluster level is responsible
for ensuring that the Risk Management plans of the individual projects within the program
are consistent, optimized, and free from conflict or contradiction.
4. In case that, the project is part of a program, the program Manager in the cluster is
responsible for ensuring that the Risk Management plans of the individual projects within
his program are consistent, optimized and free from conflict or contradiction.
13.1.3 Workflow Chart
Figure 13-2 PMM-013-RIS-010 Risk Management at Portfolio levels Workflow Chart

13.1.4 Procedures
13.1.4.1 PMM-013-RIS-010-010 Portfolio Risk Management

1. Any newly needed asset shall be considered when identifying risk on project portfolio level.
The project portfolio level shall take into consideration the following:
a. Current risk appetite of NWC (PMF-013-RIS-021 Risk Appetite and Risk Threshold)
b. Current risk tolerance identification criteria in NWC (PMF-013-RIS-021 Risk Appetite
and Risk Threshold)
c. Lessons learned from previous projects
d. Existing Consolidated High Risk Items in Project Risk Register
e. Hierarchal risks sources (PMF-013-RIS-013 Hierarchical Sources of Risk)

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1. A risk workshop will be facilitated by the Cluster Risk Section Head, involving relevant
stakeholders, to identify and assess potential portfolio risks associated with the
interactions between NWC, consultants, and contractors, and to evaluate how these
activities may impact overall NWC objectives.
2. Refer to (PMF-013-RIS-018 Portfolio and Program Risk Management Process) for detailed
guidelines on Portfolio and Program risk identification, analysis, risk response planning, risk
implementation, risk monitoring and reporting.

Responsible: Risk Management Manager

Accountable: PMO GM
Design Consultant (during design
Consulted:
stage)
Cluster PMO Director Supervision Consultant (during
Business Unit Construction Director “Construction” stage and “design &
NWC Project Manager construction” stage)
Cluster Risk Section Head Contractor (during “Construction”
stage and “design & construction”
stage)
Informed: PMO GM Cluster PMO Director

13.2 PMM-013-RIS-020 Plan Project Risk Management

13.2.1 Objective
The objective of this process is to adopt a proactive, early-warning approach that maximizes
opportunities to enhance the value delivered, while effectively addressing threats that may reduce
the value to be delivered.
The Risk Management is carried out based on formal scheduled series of project workshops.
13.2.2 Policies
Policies for this process are:
1. Every individual NWC Project Management Plan must have a clear section for Risk
Management.
2. The risk management process should be an integral part of day to day project management.
It is vitally important that the context surrounding project initiation, delivery and execution is
established, understood, and communicated.
3. The approved NWC Project Management Plan, including the Risk Management Plan
Section, must be included in the tender document when NWC is tendering for design,
supervision and construction.
4. The approved NWC Risk Management Section must:
i. include a risk register template to continually be updated.
ii. include an approved project risk workshops schedule as per project risk workshop
criteria.
5. The project risk register at initial planning stage must consider:
i. Project assumptions.
ii. Design options.
iii. known risks identified during the 5YPPP stage (not a part of PLC).
6. Every project risk register should be managed throughout the project lifecycle:
i. During “Initial Planning”, “Tendering” and “Handover & Closeout” stages by the NWC
Project Manager with support of the Cluster Risk Section Head.
ii. During “Design” stage by the design consultant under full NWC Project Manager
accountability on the risk register as a whole.
iii. During “Construction”, “Design & Construction” and “Testing & Commissioning” stages

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by the supervision consultant under full NWC Project Manager accountability on the
risk register as a whole.
7. NWC Project Manager is duly the ultimate responsible and accountable person for the
project risk register throughout the project life cycle. NWC Project Manager is responsible
for:
i. ensuring that the project risk register is continuously updated throughout the project
lifecycle.
ii. approving the adequate risk owners and response action owners.
iii. reporting the project risk register to the Cluster PMO Director on monthly basis.
8. The Cluster PMO Director is responsible for reporting the project risk register to the Risk
Management Manager at HQ on monthly basis.
9. Second Parties must create their own management plans (design and/or construction)
including Risk Management Plan Section for the project. These management plans must
comply with the Risk management requirements defined in the NWC Project Management
Plan and must be approved by NWC during mobilization period.
10. The Risk Management Plans in PMPs of NWC, Design and Construction must be kept up
to date throughout the project life cycle.
13.2.3 Workflow Chart
Figure 13-3 PMM-013-RIS-020 Plan Project Risk Management at Project Level Workflow Chart

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13.2.4 Procedures
13.2.4.1 PMM-013-RIS-020-010 Develop the Project Risk Management Plan Section of NWC
Project Management Plan

1. The NWC Project Manager in collaboration with Cluster Risk Section Head shall use the
form (PMF-005-INT-001 NWC Project Management Plan) to develop the NWC Project
Management Plan which includes a dedicated section for Risk management.
2. The form (PMF-013-RIS-001 Project Risk Management Plan Guidelines) shall be used as
a guideline to create the NWC Risk Management Plan.
3. The (PMF-013-RIS-022 Risk Probability and Impact Matrix) describes the definition and the
5x5 matrix process for risk analysis which needs to be included in the risk management
plan section.
4. Utilizing organization risk appetite information and the organizational standardized risk
thresholds, develop the project risk threshold in accordance with (PMF-013-RIS-021 Risk
Appetite and Risk Threshold Guidelines).
5. Update the Project Risk Section throughout the lifecycle with the approved change using
procedure (PMM-005-INT-020-040 Update the NWC Project Management Plan).

Responsible: NWC Project Manager Cluster Risk Section Head

Accountable: NWC Project Manager

Cluster Capital Projects VP
Consulted: Risk Management Manager
Business Unit Construction Director
Cluster PMO Director
Informed: Risk Management Manager
Cluster Capital Projects VP
13.2.4.2 PMM-013-RIS-020-020 Approve the Project Risk Management Plan Section of NWC
Project Management Plan

1. The NWC Project Manager shall review and approve the Risk Management Plan Section
of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster Risk Section Head
Consulted: Cluster Capital Projects VP
NWC Project Manager
Risk Management Manager
Business Unit Construction Director
Cluster Risk Section Head Cluster Capital Projects VP
Informed:
NWC Project Manager Risk Management Manager
13.2.4.3 PMM-013-RIS-020-040 Develop Project Risk Management Plan Section in the
Design PMP

1. Develop Project Risk Management Plan Section in the Design Project Management Plan
using (PMF-005-INT-002 Design Project Management Plan).
2. Ensure that the Project Risk Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Risk Management Plan Section in the
NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Risk Management Plan Section.
4. Include the Project Risk Management Plan Section in the Project Design Project
Management Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

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Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

13.2.4.4 PMM-013-RIS-020-060 Develop Project Risk Management Plan Section in the

Construction / “Design & Construction” PMP

1. Develop Project Risk Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-005-INT-003 Design
& Construction Management Plan).
b. Construction Project Management Plan using (PMF-005-INT-004 Construction
Project Management Plan).
2. Ensure that the Project Risk Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project Risk Management Plan Section in the
NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Risk Management Plan Section.
4. Include the Project Risk Management Plan Section in the Project Construction Project
Management Plan to be approved as part of the Project Construction Project Management
Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

Informed: NWC Project Manager

13.3 PMM-013-RIS-025 Conduct Project Risk Workshops

13.3.1 Objective
The objective of this process is to maximize the involvement of relevant subject matter experts in
managing project risks, while fostering collaboration among all stakeholders to identify potential risks,
brainstorm control measures, and assess the level of risk for each respective project.
13.3.2 Policies
Policies for this process are:
1. Every project above SAR 25M should conduct risk workshops.
2. The conduct of project risk workshop is mandatory at the beginning of:
i. Initial planning stage (in both PLC’s)
ii. Design Stage (in design-Bid-build PLC) (maximum at the end of the mobilization period)
iii. Construction Stage (in Design-Bid-Build PLC) (maximum at the end of the mobilization
period)
iv. Design and Construction stage (in Design & Build PLC) (maximum at the end of the
mobilization period)
v. Testing & Commissioning stage (in both PLC’s)
The risks of “Handover & Closeout” stage to be covered in the workshop of the “T&C” stage.
3. The project risk workshops shall be represented by all relevant stakeholders, as far as
practicable and shall effectively contribute in participating in the workshop.
4. The workshops must be facilitated by the NWC Project Manager. The respective risk owners

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(e.g., the Construction Project Manager/Design Lead Consultant) shall ensure that all
information for the risk workshop are available. An external Consultant if the project is
particularly complex, novel or strategic/critical may be consulted.
5. The risk workshop facilitator shall invite the NWC Risk Section Head, PMO Sr. Program
Manager or the PMO Sr. Risk Engineer and other relevant function in the project for every
conduct of risk workshop. The PMO Sr. Risk Engineer may assist the NWC Project Manager
in facilitating the risk workshop to ensure compliance with the agenda and workshop topics.
13.3.3 Workflow Chart
Figure 13-4 PMM-013-RIS-025 Conduct Project Risk Workshops Workflow Chart

13.3.4 Procedures
13.3.4.1 PMM-013-RIS-025-010 Prepare for a Project Risk Workshop

1. Use the (PMF-013-RIS-014 Risk Identification Guidelines) as an input to the risk workshop
agenda for each stage gate.
2. Prepare for the workshop as follows:
a. Develop and distribute the project risk workshop agenda to the invited individuals
with any necessary information.
b. Set a date, identify location for the project risk workshop.
c. The Cluster PMO Director is responsible for sponsoring the Risk Workshop.
d. The NWC Project Manager (or a nominated representative from the Construction
Supervision Consultant) will facilitate the workshop assisted by Sr. Risk Engineer.
e. The risk workshop should focus on identifying risks and completing the entire risk
management process (from risk identification to risk treatment), through workshop
breakouts (as applicable). This ensures effective management of stakeholders'
time and the facilitator's time.
f. The participants should be selected to ensure an equal mix of relevant stakeholders
from various areas of the project or cluster.
g. While a face-to-face risk workshop is preferred, stakeholders from other clusters or
the Head Office can also be invited via a Teams meeting or similar virtual platform.
h. The facilitator will assign a risk owner for each identified risk. Additionally, the risk
owner will serve as the record keeper, responsible for developing and finalizing the
Risk Workshop Report.

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Supervision Consultant (during

Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster PMO Director
Consulted: Risk Management Manager
Business Unit Construction Director
Cluster Strategic Planning Director
Informed:
Cluster PMO Director
Cluster Asset Management Director Design Consultant (during design
Cluster O&M Director stage)
Cluster HSSE Director Supervision Consultant (during
Business Unit Construction Director “Construction” stage and “design &
Cluster Technical Services Director construction” stage)
Cluster Scheduling & Control Director Contractor (during “Construction”
stage and “design & construction”
stage)
13.3.4.2 PMM-013-RIS-025-020 Conduct a Project Risk Workshop

1. Conduct the project risk workshop on the set date.

2. During the workshop perform:
a. brainstorming.
b. peer review and refinement to the brainstorming ideas.
to:
c. Understand the Project Objective, Issues, Constraints, Assumptions and Enterprise
Environmental Factors
d. identify potential risks.
e. Causes and consequences
f. asses the occurrence probabilities for each identified risk.
g. estimate the risk impact on the project works from each risk.
h. suggest a prioritization level for each potential risk (risk score).
i. suggest a response approach (treatment plans) including reference document as
an output, action owner, treatment control.
3. Identify issues and risk. If there are risks that already occurred on-site, transfer the risk
item which becomes an issue in the project issue log. Refer to (PMF-005-INT-050 Project
Issue Log Template) and (PMF-005-INT-049 Project Issue Guidelines).
4. After the workshop, the risk owner/risk workshop recorder shall develop a formal project
risk workshop report which clearly states the:
a. identified potential risks.
b. tentative qualitative risk analysis (probability and impact – if applicable)
c. suggested a prioritization level for each potential risk.
d. suggested high level responses response action plan.
e. proof of documentation to monitor implementation of action plans
5. Update the project risk register (PMF-013-RIS-003 Project Risk Register) with complete
information as per the template.
6. Refer to (PMF-013-RIS-023 Risk Workshop Report)

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NWC Project Manager (during initial Supervision Consultant (during

Responsible:
planning stage) “Construction” stage and “design &
Cluster Risk Section Head (during construction” stage)
initial planning stage) Contractor (during “Construction”
Design Consultant (during design stage and “design & construction”
stage) stage)
Accountable: NWC Project Manager
Cluster Asset Management Director
Consulted: Cluster Scheduling & Control Director
Cluster O&M Director
Cluster Strategic Planning Director
Cluster HSSE Director
Cluster PMO Director
Business Unit Construction Director
Risk Management Manager
Cluster Technical Services Director
Informed: Projects Portfolio Planning Director Risk Management Manager

13.4 PMM-013-RIS-030 Identify Risks at Project Level

13.4.1 Objective
The objective of this process is to systematically identify potential risks across all phases of the
project lifecycle, ensuring that both internal and external factors are considered. This process aims
to proactively uncover risks that may impact project objectives, enabling timely and effective
mitigation strategies to be developed.
13.4.2 Policies
Policies for this process are:
1. All Project Team members are responsible for identifying risks in a timely manner.
2. The project team of NWC, Design Consultant, Supervision Consultant and Contractor are
responsible to continuously monitor any potential risk during the project lifecycle regardless
of the ongoing stage.
3. Every identified potential risk must be immediately reported to NWC Project Manager. The
five processes after the process “PMM-013-RIS-030 Identify Risks at Project Level” shall
continually be performed on urgent basis for the identified risks.
4. The Risk register must be specific and unique to the project.
5. Every Risk must be linked to:
i. one or more project objectives.
ii. one or more business objectives.
6. The NWC Project Manager shall act as the overall risk owner of all identified risk in a project
and is accountable for the project risk register as a whole.
7. The NWC Project Manager may delegate risk owner responsibility to any project team
member from NWC, design consultant, supervision consultant and contractor.
8. Risk Owners must have suitable knowledge and adequate authority to make decisions and
act appropriately to effectively manage risks assigned to the.

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13.4.3 Workflow Chart

Figure 13-5 PMM-013-RIS-030 Identify Risks at Project Level Workflow Chart

13.4.4 Procedures
13.4.4.1 PMM-013-RIS-030-010 Review and Understand Project Documents, Baselines and
Plans

1. Projects risk identification shall be carried out using the (PMF-013-RIS-014 Risk
Identification Guidelines) as reference for early identification of any potential project risk,
which shall be done:
a. at the beginning of every stage of project life cycle.
b. often repeated during the project lifecycle.
2. Collect and understand the:
a. project objectives from the business case and the project charter.
b. latest approved project baselines (Scope, Schedule and cost).
c. latest updated version of the (as applicable) such as project issue log, project
constraints list, project assumptions list.
d. current Organizational Process Assets (OPA) which are the organization’s risk
categories and the organization’s risk breakdown structure, current organizational
risk policy, risk lessons learned.
e. current Enterprise Environmental Factors (EEF) which are the:
i. organization’s risk appetite and risk thresholds.
ii. external EEFs to identify any potential change in them which may
constitute a risk to the project.
3. The risk register (PMF-013-RIS-003 Project Risk Register) shall be updated taking into
consideration the (PMM-013-RIS-030-010 Review and Understand Project Documents,
Baselines and Plans), and (PMF-013-RIS-014 Risk Identification Guidelines), risks
identified during the workshops and risk identified during execution of the work.
4. The project risk owner shall ensure that all information in the risk register (PMF-013-RIS-
003 Project Risk Register) are transferred and updated in primavera unifier and reviewed
and approved by NWC Project Manager as per the Primavera Unifier Workflow.
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)

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Accountable: NWC Project Manager

Cluster Risk Section Head
Consulted: Design Consultant (if assigned)
Capital Projects Strategic Planning GM
Supervision Consultant (if assigned)
Cluster Asset Management Director
Contractor (if assigned)
Cluster O&M Director
Informed: Cluster Risk Section Head

13.4.4.2 PMM-013-RIS-030-030 Identify Project Risks

1. Utilizing the information from the procedure (PMM-013-RIS-030-010 Review and

Understand Project Documents, Baselines and Plans), identify any potential project risks
using (PMF-013-RIS-014 Risk Identification Guidelines) during:
a. the continuous monitoring of the project activities during the project lifecycle
b. the project risk workshop.
2. If any team member identifies a potential risk:
a. during a project risk workshop, the team member shall communicate the identified
risk to the workshop facilitator.
b. during the continuous monitoring, the team member shall report the identified
potential project risk to the line manager which shall be one of the following:
i. Design Consultant (at design stage)
ii. Contractor (at “design & construction” and “construction” stages)
iii. Cluster Risk Section Head (at any other stage)
3. Make an initial investigation and identify the cause of the risk to enable proper determining:
a. the likelihood of occurrence.
b. the potential impact of the risk.
4. Nominate a risk owner for every identified risk. NWC Project Manager shall approve this
nomination.
5. Formally record all identified risks in the Project Risk Register.
6. Clearly identify all items that describe the identified risks as per mentioned in the (PMF-
013-RIS-014 Risk Identification Guidelines).
7. Assign a risk category from the RBS for each identified risk.
8. Update the project risk register (PMF-013-RIS-003 Project Risk Register).
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Asset Management Director
Consulted: Cluster Scheduling & Control Director
Cluster O&M Director
Cluster Strategic Planning Director
Cluster HSSE Director
Cluster PMO Director
Business Unit Construction Director
Risk Management Manager
Cluster Technical Services Director
NWC Project Manager
Informed: Cluster PMO Director
Risk Management Manager

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13.5 PMM-013-RIS-040 Qualitative Risk Analysis at Project Level

13.5.1 Objective
The objective of this process is to define the probability of occurrence and the impact of the identified
individual project risks to:
● prioritize them for risk response planning.
● Assess the level of risk by their probability and impact to determine the risk priority level
● provide inputs for the quantitative analysis (if necessary).
13.5.2 Policies
Policies for this process are:
1. All identified individual project risks must be subjected to qualitative analysis.
2. The qualitative risk analysis is performed regularly throughout project life cycle.
13.5.3 Workflow Chart
Figure 13-6 PMM-013-RIS-040 Qualitative Risk Analysis at Project Level Workflow Chart

13.5.4 Procedures
13.5.4.1 PMM-013-RIS-040-020 Perform Qualitative Risk Analysis

1. Perform a qualitative analysis of each individual risk by:

a. Identifying the probability and severity of impact for each risk item on cost, time,
health and safety, quality, environment, reputation, community and security.
2. Providing priority score using the (PMF-013-RIS-022 Risk Probability and Impact Matrix).
3. Use (PMF-013-RIS-015 Qualitative Risk Analysis Guidelines) as guidelines to perform this
process.
4. Update the project risk register (PMF-013-RIS-003 Project Risk Register).
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Asset Management Director
Consulted: Cluster Scheduling & Control Director
Cluster O&M Director
Cluster Strategic Planning Director
Cluster HSSE Director
Cluster PMO Director
Business Unit Construction Director
Risk Management Manager
Cluster Technical Services Director

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NWC Project Manager

Informed: Cluster PMO Director
Risk Management Manager

13.6 PMM-013-RIS-050 Quantitative Risk Analysis at Project Level

13.6.1 Objective
The objective of this process is to numerically analyze and quantify the combined effect of identified
risks and to identify the overall risk appetite to ultimately support risk response planning. However,
this process is not required for every risk assessment for project, program or portfolio level.
13.6.2 Policies
Policies for this process are:
1. Performing the quantitative risk analysis is not mandatory for all projects.
2. The agreed criteria should consider the followings:
i. The criteria of performing or not the quantitative risk analysis should consider as much
as possible the following:
a. The project size, complexity and strategic importance.
b. The availability of appropriate resources (cost, human and technical) to perform a
quantitative analysis.
c. To obtain accurate information about the probability of completing the project on
schedule and within budget.
ii. For technical case, quantitative analysis may be requested if:
a. There is a need to decide whether to continue the ongoing project or terminate it.
b. need to make a significant change to the project scope baseline, project schedule
baseline and/or project cost baseline.
c. need to reduce the contingency reserve.
3. The cost of the quantitative risk analysis should be included in the project budget as the
analysis requires:
i. specialized risk software applications.
ii. SMEs in risk models interpretation.
13.6.3 Workflow Chart
Figure 13-7 PMM-013-RIS-050 Quantitative Risk Analysis at Project Level Workflow Chart

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13.6.4 Procedures
13.6.4.1 PMM-013-RIS-050-010 Perform Quantitative Risk Analysis

1. If Quantitative Risk Analysis will be requested, the process owner or the risk owner may
use the following quantitative risk analysis tools but not limited to: Monte Carlo Analysis,
Expected Monetary Value (EMV) risk analysis, Decision Tree Analysis, Sensitivity Risk
Analysis, etc. whatever quantitative risk software is applicable.
2. The result of the quantitative analysis shall be recorded by the risk owner and will be
distributed to relevant stakeholders to aid in decision making to justify the intent of applying
the quantitative analysis.
3. Update the project risk register (PMF-013-RIS-003 Project Risk Register).
4. Discuss the result of the quantitative risk analysis in one of the risk workshop session and
shall be included in the (PMF-013-RIS-023_03 Risk Workshop Report) for recording
purposes.
Supervision Consultant (during
Responsible:
NWC Project Manager “Construction” stage and “design &
Cluster Risk Section Head construction” stage)
Design Consultant (during design Contractor (during “Construction”
stage) stage and “design & construction”
stage)
Accountable: NWC Project Manager
Cluster Asset Management Director
Consulted: Cluster Scheduling & Control Director
Cluster O&M Director
Cluster Strategic Planning Director
Cluster HSSE Director
Cluster PMO Director
Business Unit Construction Director
Risk Management Manager
Cluster Technical Services Director
NWC Project Manager
Informed: Cluster PMO Director
Risk Management Manager

13.7 PMM-013-RIS-060 Plan Risk Responses at Project Level

13.7.1 Objective
The objective of this process is to ensure that effective control measures are in place to mitigate risks
by determining options to control the severity of their impact, selecting the most suitable strategies,
agreeing on specific actions, and allocating resources accordingly. These measures will help address
the overall project risk exposure and maintain an acceptable or tolerable risk threshold.

13.7.2 Policies
Policies for this process are:
1. Every action in every risk response plan must be assigned to an appropriate action owner
from design consultant team, supervision consultant team, contractor team or NWC project
team. The action owner must have suitable knowledge and adequate authority to make
decisions and act appropriately to effectively manage risks assigned to them.
2. Action owner is responsible for the managing the risk formally assigned to him as follows:
i. Developing the response plan for the assigned risk including activities, durations and
proposed resources in collaboration with the project team, SME and NWC department
teams.
ii. Obtaining approval from NWC Project Manager on the proposed response plan.
iii. Ensuring the assigned risk information in the risk register is accurate, timely and
complete.
iv. Monitoring and timely reporting to NWC Project Manager the:
a. assigned risk status.
b. response plan progress.

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c. effectiveness of taken response actions

13.7.3 Workflow Chart
Figure 13-8 PMM-013-RIS-060 Plan Risk Responses at Project Level Workflow Chart

13.7.4 Procedures
13.7.4.1 PMM-013-RIS-060-010 Prepare Risk Response Plan

1. For every identified risk, the risk owner shall develop the following plans to reduce the
likelihood and impact of negative risks (threats) and increase them for positive risks
(opportunities) using (PMF-013-RIS-016_03 Risk Response Planning Guidelines):
2. Based on the risk urgency level that was identified during the qualitative analysis, the risk
owner shall identify the due date for every risk response plan.
3. The proposed mitigation action shall indicate appropriate treatment plan whether risk is to
mitigate, to transfer, escalate, avoid or accept for threats and to enhance, escalate,
share, exploit or accept for opportunities.
4. If the risk owner’s response plan is mitigation, a proper treatment control shall also be
identified. The risk owner and action owner shall assign a suitable risk response strategy
which can either be a control plan, action plan, contingency and fallback plan and specific
course of action shall be described in the response plan column of the risk register (PMF-
013-RIS-003 Project Risk Register). Refer to (PMF-013-RIS-016 Risk Response Planning
Guidelines).
5. Risk response plan shall be agreed upon by relevant stakeholders and NWC Project
Manager.
6. The risk owner shall ensure complete and accurate information are updated in the risk
register (PMF-013-RIS-003 Project Risk Register) related to mitigation plan section.

Responsible: Risk Owner NWC Project Manager

Accountable: NWC Project Manager

Design Consultant (during design
Consulted:
stage)
Supervision Consultant (during
“Construction” stage and “design & Cluster Scheduling & Control Director
construction” stage) Cluster Strategic Planning Director
Contractor (during “Construction” Cluster Asset Management Director
stage and “design & construction” Cluster O&M Director
stage) Cluster HSSE Director
Business Unit Construction Director Risk Management Manager
Cluster Risk Section Head
Cluster PMO Director
Cluster Technical Services Director
NWC Project Manager
Informed: Cluster PMO Director
Risk Management Manager

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13.8 PMM-013-RIS-070 Implement Risk Responses at Project Level

13.8.1 Objective:
The objective of the process is to ensure that agreed risk responses are effectively and efficiently
executed to minimize threats and to maximize opportunities.
13.8.2 Policies:
Policies for this process are:
1. All the planned risk responses shall be implemented and monitored by action owners.
2. Under any circumstance, implementing the actions of approved risk response plan will not
be accepted as ground for a claim.
3. Ensuring the assigned risk response information (Treatment Plan) in the risk register is
accurate, timely, complete and effective.
13.8.3 Workflow Chart
Figure 13-9 PMM-013-RIS-070 Implement Risk Responses at Project Level Workflow Chart

13.8.4 Procedures
13.8.4.1 PMM-0153RIS-070-020 Implement Risk Response According to the Risk Response
Plan

1. The action owner shall ensure that the proposed mitigation plan is implemented and
evidence of effective implementation is documented and referred to in reference document
column of the risk register (PMF-013-RIS-003 Project Risk Register).
2. Action owner shall:
a. report the implementation progress of risk response plan to the NWC Project
Manager on weekly progress meeting or during regular coordination meeting
b. manage providing any requested resources and required support to every risk
owner to enable appropriate implementation of risk response plans.
c. escalate any issue in implementation of the risk response actions to the NWC
Project Manager.
3. The action owner shall update the risk register (PMF-013-RIS-003 Project Risk Register)
for any changes or the need for additional response action..

Responsible: Action Owner Risk Owner

Accountable: NWC Project Manager

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Design Consultant (during design

Consulted:
stage)
Supervision Consultant (during
Cluster Risk Section Head
“Construction” stage and “design &
Cluster Technical Services Director
construction” stage)
Cluster Scheduling & Control Director
Contractor (during “Construction”
Cluster Strategic Planning Director
stage and “design & construction”
stage)
Business Unit Construction Director
Risk Owner
Informed: Cluster Risk Section Head
NWC Project Manager

13.9 PMM-013-RIS-080 Monitor Risks at Project Level

13.9.1 Objective
The objective of this process is to continuously evaluate the effectiveness and relevance of the Risk
Management Process, the project manager shall monitor risk activities by:
● Reviewing the current risk profile and identify changes in risk probabilities and impacts
regularly;
● Monitor the implementation of risk responses and implement any necessary changes
regularly;
● Update for any new risks and associated responses based on changes in scope, progress of
work, risk triggers, emerging risks and lessons learned.
● Reviewing management actions (giving priority to the more significant risks) to ensure that
actions are effective and being progressed within agreed timescales.
13.9.2 Policies
Policies for this process are:
1. Cluster Risk Section Head and/or the project manager is responsible for consolidating risks
from project level up to the program levels within the cluster.
2. The NWC Project Manager and Cluster Risk Section Head are responsible for ensuring that
all projects have their risk registers updated in Primavera Unifier.
3. Any contractor that does not comply with the required submission date of risk register shall
be monitored and escalated to the NWC Contract Director and Cluster Capital Projects Vice
President for appropriate action.
13.9.3 Workflow Chart
Figure 13-10 PMM-013-RIS-080 Monitor Risks at Project Level Workflow Chart

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13.9.4 Procedures
13.9.4.1 PMM-013-RIS-080-010 Monitor Project Risks

1. On a weekly basis, the risk owners shall perform and report the followings to the NWC
Project Manager:
a. Monitoring the progress of implementing the risk response plans.
b. Tracking the status of the identified risks (e.g. treated, transferred, open - requires
additional action)
c. Identifying new risks if any.
d. Evaluating the risk process effectiveness throughout the project.
2. On a weekly and monthly basis, the NWC Project Manager shall:
a. review and discuss the above reported information.
b. evaluate the effectiveness of risk processes throughout the project.
c. escalate to (Cluster Capital Projects VP during “Initial Planning” and “Design”
Stages) or (Business Unit Construction Director during the other stages) any:
i. risk that its response strategy is “Escalate”.
ii. out of control deviated risk response plan.
3. If any new potential risk identified, notify the NWC Project Manager to perform (PMM-013-
RIS-030 Identify Risks at Project Level).
4. The risk owner shall update the project risk register (PMF-013-RIS-003 Project Risk
Register).
5. All risk registers must be updated in Primavera Unifier. The risk information will be
automatically compiled into statistics and displayed on the risk dashboard, which the cluster
will use to monitor the overall project risk status.
6. If any risk occurred (happened), it will be terminated in the Unifier and will be added into the
project issue log (PMF-005-INT-050 Project Issue Log Template) and shall be effectively
managed through (PMM-005-INT-030 Direct and Manage Project Execution).

Responsible: Risk Owner NWC Project Manager

Accountable: NWC Project Manager

Design Consultant (during design
Consulted:
stage)
Supervision Consultant (during
“Construction” stage and “design & Cluster Scheduling & Control Director
construction” stage) Cluster Strategic Planning Director
Contractor (during “Construction” Cluster Asset Management Director
stage and “design & construction” Cluster O&M Director
stage) Cluster HSSE Director
Business Unit Construction Director Risk Management Manager
Cluster Risk Section Head
Cluster PMO Director
Cluster Technical Services Director
NWC Project Manager Cluster Risk Section Head
Informed:
Business Unit Construction Director Risk Management Manager

13.10 PMM-013-RIS-090 Treat Project Risk Management at Stage End

13.10.1 Objective
The objective of this process is to ensure:
● Risks are managed and treated to the lowest possible level.
● Transfer of open risks, residual risks and carry over risk onto the next stage.

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13.10.2 Policies
Policies for this process are:
1. Risk registers should formally be treated at the end of each stage.
2. NWC Project Manager is responsible for reviewing the residual risks and transferring it into
the next stage through the stage gate review processes.
3. The project risk register should be introduced and reviewed in the stage gate review.
13.10.3 Workflow Chart
Figure 13-11 PMM-013-RIS-090 Treat Project Risk Management at Stage End Workflow Chart

13.10.4 Procedures
13.10.4.1 PMM-013-RIS-090-010 Close the Risk Register at The Stage End

This procedure shall be performed at the end of every stage.

1. The NWC Project Manager shall ensure that all the identified risks are under one of the
following categories:
a. The risk is treated for effectively implementing risk response plan (the residual risks
are tolerable).
b. The objective that is expected to be impacted is successfully achieved.
c. The risk would have an impact to the objectives of the next stages of the project
and risks are planned to be transferred to the next stage.
2. The NWC Project Manager shall inform the Cluster PMO Director on the treated risks
through the (PMF-013-RIS-003 Project Risk Register).
3. The following should be clearly stated in the project risk register:
a. The project risk register is with status “Treated”.
b. The risk is transferred into Watch List.
4. The Cluster PMO Director shall review the risk register with the Cluster Risk Section Head
then approve the risk register watchlist.
Design Consultant Contractor
Responsible:
Supervision Consultant NWC Project Manager
Accountable: NWC Project Manager

Consulted: Supervision Consultant Cluster Technical Services Director

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NWC Project Manager

Informed: Cluster PMO Director
Cluster Risk Section Head
13.10.4.2 PMM-013-RIS-090-020 Submit the Risk Register for Stage Gate Review

1. At the end of every stage, the NWC Project Manager shall submit the closed project risk
register (PMF-013-RIS-003_03 Project Risk Register) to the Stage Gate Coordinator to
review and discuss it in the stage gate review.

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Design Consultant (during design
Consulted: Contractor (during “Construction”
stage)
stage and “design & construction”
Supervision Consultant (during
stage)
“Construction” stage and “design &
Business Unit Construction Director
construction” stage)
Informed: Stage Gate Coordinator Cluster PMO Director

13.10.4.3 PMM-013-RIS-090-030 Transfer Risks to The Second Parties Through the Tender
Documents

1. At the beginning of every tendering stage, submit the following items to the Cluster
Technical Services Director for inclusion in the tender documents of “Design Stage” /
“Construction Stage” / “Design & Construction Stage”:
a. Updated NWC Project Management Plan (PMP) that includes an updated Risk
Management Plan Section.
b. Updated (PMF-013-RIS-003 Project Risk Register) highlighting the risks
transferred to the Design Consultant / Contractor

Responsible: NWC Project Manager

Accountable: NWC Project Manager

Design Consultant (during design
Consulted: Contractor (during “Construction”
stage)
stage and “design & construction”
Supervision Consultant (during
stage)
“Construction” stage and “design &
Business Unit Construction Director
construction” stage)
Informed: Cluster Technical Services Director

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Section 14 - Project Procurement

Management

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 Section 14 - Project Procurement Management

14 Project Procurement Management

The subject of this particular section of the Project Management Manual (PMM) is Project Procurement
Management.
The alternative delivery methods for a project include:
● Design Bid Build: The Project Design & Construction Stages are executed independently and by
separate Contractors, after competitive tendering. The Build stage follows the completion of the Design
stage, on which it is based. This is widely known as the “traditional” method.
● Design & Build: Both the design and construction of a project are procured from the same organization
(i.e., a Contractor with in-house design capability).
The high-level process map for the Project Procurement Management is illustrated below in Figure 14-1:

Figure 14-1 High-Level Process Map for Project Procurement Management

The processes described in this section are intended to ensure compliance with current versions of the NWC
Supply Chain Policies and Procedures.

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14.1 PMM-016-PRO-010 Provide Procurement Requirements to Portfolio

Management
14.1.1 Objective
The objective of this process is to plan purchases and acquisitions for the entire Five-Year Projects
Portfolio Plan such as:
● items or materials in high-volume
● items or materials in long-lead
● specialty items
14.1.2 Policies
Policies for this process are:
1. Capital projects should provide to portfolio management the following needs of all portfolio
projects to enable NWC to aggregately provide them (strategic procurement):
i. High Volume Materials.
ii. Long Lead Materials.
iii. Special Materials.
14.1.3 Workflow Chart
Figure 14-2 PMM-014-PRO-010 Provide Procurement Requirements to Portfolio Management Workflow Chart

14.1.4 Procedures
14.1.4.1 PMM-014-PRO-010-010 Summarize and Send High Volume, Long Lead and Special
Materials Requirements to Portfolio Management

1. At the beginning of the Five-Year Projects Portfolio Plan, review the plan to identify the
planned projects.
2. Review the scope of every project in the portfolio then summarize the procurement
requirements of Portfolio of:
a. High volume materials.
b. Long lead materials.
c. Special materials.
3. Refer to the following to support the exercise:
a. Approved Suppliers List
b. Material Requirements Database
c. Cost Database
d. Portfolio Risk Register
4. Produce a summary report for the cluster showing the procurement requirements.
5. Forward the summary report to the Cluster Supply Chain Manager.

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6. At Initial Planning Stage, consider decisions of the Cluster Supply Chain Manager
regarding aggregate supply in RFP preparation.
Cluster Technical Services
Responsible: Business Unit Construction Directors
Director
Accountable: Cluster Capital Projects VP

Consulted: Cluster Quantity Survey Lead Cluster Scheduling Section Head

Informed: Cluster Capital Projects VP Cluster Supply Chain Manager

14.2 PMM-014-PRO-020 Plan Project Procurement Management

14.2.1 Objective
The objective of this process is to develop the Procurement Management Plan Section of the NWC
Project Management Plan and to ensure proper planning for how NWC shall enter in a contractual
relationship with a second parties. It includes describing the activities that Capital Projects
Department shall perform before, during and after the contract duration.
It also targets to standardize the relationship with the relevant stakeholders such as Supply Chain
department.
14.2.2 Policies
Policies for this process are:
1. The “Procurement Management Plan” must be:
i. developed at initial planning stage at least for all project contracts (e.g., design,
construction, supervision, construction, design & construction, supplies by NWC, etc.).
ii. reviewed and endorsed as a standalone document.
iii. reviewed and approved as part of the integrated NWC Project Management Plan.
2. The formal process requires that all purchasing decisions are consistently documented and
recorded, in relation to project requirements that can best be met by the direct contracting
of external suppliers.
3. The plan must state the criteria for selecting the winning bidder that is from the Approved
Suppliers List and the criteria for tender evaluation.
4. Selection criteria must be included as a part of the “Procurement Management Plan”. These
criteria are developed and used to rate or score bidder proposals objectively.
5. Second Parties must create their own management plans (design and/or construction)
including Procurement Management Plan Section for the project. These management plans
must comply with the Procurement management requirements defined in the NWC Project
Management Plan and must be approved by NWC during mobilization period.
6. The Procurement Management Plans in PMPs of NWC, Design and Construction must be
kept up to date throughout the project life cycle.
7. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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14.2.3 Workflow Chart

Figure 14-3 PMM-014-PRO-020 Plan Project Procurement Management Workflow Chart

14.2.4 Procedures
14.2.4.1 PMM-014-PRO-020-010 Develop the Project Procurement Management Plan
Section of NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-014-PRO-001_03 Project Procurement

Strategy.docx) to develop the NWC Project Management Plan which includes a dedicated
section for Procurement management. NWC Project Manager and Cluster Contracts
Administration Manager shall develop this section in PMP.
2. Use (PMF-014-PRO-050_03 Procurement Management Plan Guidelines.docx) as a
guideline to create NWC Procurement Management Plan.
3. Develop the Project Procurement Strategy using (PMF-014-PRO-001_03 Project
Procurement Strategy.docx) and (PMF-014-PRO-054_03 Project Land Acquisition Strategy
Guidelines.docx).
4. Update the Project Procurement Section throughout the lifecycle with the approved
changed using procedure (PMM-005-INT-020-040 Update the NWC Project Management
Plan).
Cluster Contracts Administration
Responsible: NWC Project Manager
Manager
Accountable: NWC Project Manager
Cluster Capital Projects VP Contract Director
Consulted:
Business Unit Construction Director Cluster Supply Chain Manager
Cluster Scheduling & Control Director
Informed: Contract Director
Cluster Capital Projects VP
14.2.4.2 PMM-014-PRO-020-020 Approve the Project Procurement Management Plan
Section of NWC Project Management Plan

1. Review the Procurement Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.

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3. Approve the submitted Project Procurement Management Plan Section.

Responsible: Cluster Scheduling & Control Director

Accountable: Cluster Capital Projects VP

Cluster Contracts Administration
Consulted:
Manager Cluster Capital Projects VP
NWC Project Manager Contract Director
Business Unit Construction Director
Cluster Contracts Administration
Informed: Cluster Capital Projects VP
Manager
Contract Director
NWC Project Manager
14.2.4.3 PMM-014-PRO-020-040 Develop Project Procurement Management Plan Section in
the Design PMP

1. Develop Project Procurement Management Plan Section in the Design Project

Management Plan using (PMF-005-INT-002_03 Design Project Management Plan.docx).
2. Ensure that the Project Procurement Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Procurement Management Plan
Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project Procurement Management Plan Section.
4. Include the Project Procurement Management Plan Section in the Project Design Project
Management Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Cluster Technical Services Director

Informed: NWC Project Manager

14.2.4.4 PMM-014-PRO-020-060 Develop Project Procurement Management Plan Section in

the Construction / “Design & Construction” PMP

1. Develop Project Procurement Management Plan Section in the:

Design & Construction Project Management Plan using (PMF-005-INT-003_03 Design &
Construction Management Plan.docx).
Construction Project Management Plan using (PMF-005-INT-004_03 Construction Project
Management Plan.docx).
2. Ensure that the Project Procurement Management Plan Section in the Project Design
Project Management Plan is in alignment with the Project Procurement Management Plan
Section in the NWC Project Management Plan.
3. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project Procurement Management Plan Section.
4. Include the Project Procurement Management Plan Section in the Project Construction
Project Management Plan to be approved as part of the Project Construction Project
Management Plan.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: NWC Project Manager Supervision Consultant

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Informed: NWC Project Manager

14.3 PMM-014-PRO-025 Acquire Project Land

14.3.1 Objective
The objective of this process is to early acquire the project land before tendering for design to lever
the design accuracy by the Design Consultant.
14.3.2 Policies
Policies for this process are:
1. Land acquisition must be completed before tendering for design.
2. The Project Land Acquisition Strategy shall be developed for the preferred project site.
14.3.3 Workflow Chart
Figure 14-4 PMM-014-PRO-025 Acquire Project Land

14.3.4 Procedures
14.3.4.1 PMM-014-PRO-025-005 Develop and Approve the Project Land Acquisition Strategy

1. Using (PMF-014-PRO-055_03 Project Land Acquisition Strategy.xlsxand (PMF-014-PRO-

054_03 Project Land Acquisition Strategy Guidelines.docx), NWC Project Manager shall
develop a Project Land Acquisition Strategy and raise it to Cluster Capital Projects VP for
approval.
2. Cluster Capital Projects VP shall approve the Project Land Acquisition Strategy.
3. NWC Project Manager shall incorporate the approved Project Land Acquisition Strategy
in the project management plan.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Capital Projects VP
Consulted: Cluster Scheduling & Control Director
Business Unit Construction Director
Cluster PMO Director
Cluster Technical Services Director
Informed: Cluster Technical Services Director

14.3.4.2 PMM-014-PRO-025-010 Request for the Project Land Acquisition

As per the prepared land acquisition plan (PMF-014-PRO-055 Project Land Acquisition
Strategy) NWC Project Manager shall:
a. Prepare a land acquisition request using the forms of the Deputy-Ministry for Land
& Survey (MEWA).
b. Attach all required information, documents and maps to the request.

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c. Send the request to the Cluster Capital Projects VP acquiring the lands specified
in the project Business Case.
2. Cluster Capital Projects VP shall raise the request to the Projects Execution VP.
3. Projects Execution VP shall send the request to the Shared Services for processing.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP
Business Unit Construction Director
Consulted: Technical Services GM
Cluster Technical Services Director
Informed: Shared Services VP

14.3.4.3 PMM-014-PRO-025-020 Receive the Project Land Acquisition Documents

1. NWC Project Manager shall receive the formal land acquisition documents before the
project site handover.
2. NWC Project Manager shall add the location of the acquired land to the “Request for
Proposal RFP” of the design tendering and the construction tendering.
3. If land acquisition process had obstacles, NWC Project Manager shall escalate the issue.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Technical Services GM

Informed: Cluster Technical Services Director Technical Services GM

14.4 PMM-014-PRO-030 Prepare Tender Documents

14.4.1 Objective
The objective of this process is to ensure the properness of technical and commercial requirements
from Projects Cluster to a project tendering.
14.4.2 Policies
Policies for this process are:
1. Every capital project must have a detailed Request for Proposal (RFP) based on an
approved Business Case. The RFP shall include but not limited to the contents in the
following table:

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Table 14-1 RFP Required Components

For For
For
Ser Documents in RFP design construction
EPC projects
projects projects

1 Approved Business Case Required Required Required

2 Project Scope Required Required Required
3 Design Drawings Conceptual 90% Design 30% Design
Specifications
4 Required Required
(as per Standard Specifications)
Required Required
Required
Bill of Quantities (for (for design &
5 (for design
(as per Standard BoQ) construction construction
deliverables)
deliverables) deliverables)
6 Project Level 1 Schedule Required Required Required
7 Cost Estimate Class 4 Class 2 Class 3
Special Conditions & Deviation
8 Request Required Required Required
(if any)
9 Land Acquisition Required Required Required
10 Geotechnical Soil Report Required Required
11 Environmental Permit Required Required Required
External Authorities Approvals
12 Required Required Required
(as applicable)
Value Engineering Study
13 (for projects must have VE Required Required
study)
14 Technical Evaluation Criteria Required Required Required

2. For retendering a withdrawn project:

i. the project level 1 schedule shall be reviewed by Scheduling & Control department.
ii. the project cost estimate shall be reviewed by Technical Services department.
3. Every capital project must have a separate Purchase Requisition (PR).
4. Before forwarding tender documents to Supply Chain department, a Project Pre-Tender
Review Form must be filled and signed from related parties. It must be included in the
forwarded tender documents.
5. The local content requirements in the local content manual from supply chain department
must be followed in the tendering process.
6. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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14.4.3 Workflow Chart

Figure 14-5 PMM-014-PRO-030 Prepare Tender Documents Workflow Chart

14.4.4 Procedures
14.4.4.1 PMM-014-PRO-030-010 Prepare Request for Proposal (RFP)

1. The NWC Project Manager shall compile the RFP Package within 5 days in collaboration
with:
a. Cluster Technical Services Director (for cluster projects).
b. Technical Support Director (for HQ projects).
2. Ensure that the RFP Package is in line with the up to date NWC Project Management Plan,
including all applied approved changes.
3. Ensure that the NWC requirements of quality, risk and HSE are included in the RFP.
4. Ensure that the:
a. technical and commercial evaluation criteria for submitted technical and
commercial proposals is included in the RFP.
b. technical evaluation criteria includes assessment for management of scope,
schedule, cost, quality, risk, HSE, HR, procurement and communication.
Every component of the RFP must before consolidation be separately:
c. Prepared
d. Reviewed
e. Approved
5. Use:
a. (PMF-014-PRO-008_03 RFP Approval Form - New Project.docx) to tender a new
project.
b. (PMF-014-PRO-057_03 RFP Approval Form - Withdrawn Project.docx) to tender a
withdrawn project.
6. For cluster projects:
a. The NWC Project Manager shall send the RFP for endorsement to the Cluster
Capital Projects VP.
7. Cluster Capital Projects VP shall endorse the RFP then raise it to the Technical Services
GM for approval within 1 day.
8. For HQ projects:

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a. The NWC Project Manager shall send the RFP for endorsement to the HQ
department GM of the requesting department.
9. HQ department GM of the requesting department shall endorse the RFP then raise it to the
Technical Services GM for approval within 1 day.
NWC Project Manager
Responsible: Cluster Capital Projects VP / HQ
Cluster Technical Services Director /
department GM
Technical Support Director
Accountable: Cluster Capital Projects VP
Cluster Capital Projects VP Cost Control Director
Consulted:
Business Unit Construction Director Testing & Commissioning Director
Cluster Scheduling & Control Director Engineering Director
Cluster PMO Director VE Director
Cluster Strategic Planning Director Cost Estimation Manager
Cluster Supply Chain Manager Material Approval & Laboratories
Scheduling Control Director Accreditation Section Head
Informed: Technical Services GM

14.4.4.2 PMM-014-PRO-030-020 Approve the Request for Proposal (RFP)

For a new project RFP:

1. Review and approve the Request for Proposal (RFP) using (PMF-014-PRO-008_03 RFP
Approval Form - New Project.docx).
a. Return the RFP to NWC Project Manager at cluster.
For a withdrawn project RFP:
2. The Technical Services GM shall forward the RFP approval form (PMF-014-PRO-057 RFP
Approval Form - Withdrawn Project) to the Scheduling & Control GM to approve the project
level 1 schedule in the RFP approval form.
a. The Scheduling & Control GM shall review and approve the project level 1
schedule in the RFP approval form then send it to the Technical Services GM.
b. The Technical Services GM shall review and approve the Request for Proposal
(RFP).
c. Return the RFP to NWC Project Manager at cluster.
This procedure to be completed within 7 days.

Responsible: Technical Services GM Scheduling & Control GM

Accountable: Technical Services GM

Scheduling & Control GM
Consulted: Cost Estimation Manager
Capital Projects Strategic Planning GM
Technical Support Director
Engineering Director
Supply Chain VP
VE Director
Informed: Cluster Capital Projects VP

14.4.4.3 PMM-014-PRO-030-023 Issue and Endorse a Request to Tender without Budget

Reservation at Cluster

1. The NWC Project Manager shall:

a. Prepare a request to tender without Budget Reservation
b. Raise it to the:
i. Cluster Capital Projects VP, for the Cluster Projects.
ii. HQ department GM, for the HQ Projects.

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2. The request shall include a consistent justification.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP / HQ Department GM

Cluster Contracts Administration
Consulted:
Manager Cluster Supply Chain Manager
Cluster Technical Services Director
Informed: Capital Projects Services VP

14.4.4.4 PMM-014-PRO-030-026 Approve the Request to Tender without Budget

Reservation at HQ

1. The Cluster Capital Projects VP / HQ Department GM shall:

a. Review the request.
b. Approve / endorse and raise it to the authorized person for approval (as per the
authority matrix).
Cluster Capital Projects VP / HQ Authorized Person (as per the
Responsible:
Department GM authority matrix)
Accountable: Projects EVP
Cluster Capital Projects VP
Consulted: PMO GM
Scheduling & Control GM
Capital Projects Strategic Planning GM
Technical Services GM
Cluster Capital Projects VP
Informed: Supply Chain VP
HQ department GM
14.4.4.5 PMM-014-PRO-030-030 Prepare Purchase Requisition (PR)

1. NWC Project Manager shall ensure from Cluster Finance Department that the financial
liquidity is available.
2. Cluster Capital Projects VP / HQ department GM in collaboration with the NWC Project
Manager shall prepare the Purchase Requisition (PR) attaching (PMF-014-PRO-008_03
RFP Approval Form - New Project.docx) to reserve the project budget.
3. Raising to the Capital Projects Services VP shall be as follows:
a. For Cluster Projects, the Cluster Capital Projects VP shall review, endorse and
raise the PR to the Capital Projects Services VP.
b. For HQ Projects, the HQ department GM shall review, endorse and raise the PR
to the Capital Projects Services VP.
This procedure shall be completed within 4 days.
NWC Project Manager
Responsible: HQ department GM
Cluster Capital Projects VP
Accountable: Capital Projects Services VP
Cluster Technical Services Director
Consulted:
Cluster Scheduling & Control Director Cluster Supply Chain Manager
Cluster Contracts Administration Cluster Finance GM
Manager
Informed: Capital Projects Services VP

14.4.4.6 PMM-014-PRO-030-040 Approve the Purchase Requisition (PR) and Reserve a

Budget

The Capital Projects Services VP shall (as per the authority matrix):
1. Review and approve the PR within 2 days.

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OR
2. Review, endorse and raise the PR within 2 days to the Authorized Person for approval.
3. The authorized person shall review and approve the Purchase Requisition (PR) within 2
days. This approval shall include a provision of a budget reservation number.
Authorized Person (as per the
Responsible: Capital Projects Services VP
authority matrix)
Accountable: Projects EVP

Consulted: Cluster Capital Projects VP

Informed: Technical Services GM

14.4.4.7 PMM-014-PRO-030-050 Develop the Project Pre-Tender Review Form

For construction projects and after:

a. receiving the PR approval (budget reservation)
OR
b. receiving the approved tender without budget reservation.
2. The following departments shall fill and sign the form (PMF-014-PRO-008_03 RFP
Approval Form - New Project.docx):
a. Cluster Technical Services department
b. Business Unit Construction department
c. Cluster Asset Management department
d. Cluster O&M department
3. Add this document to the tender documents.
For design projects tendering, this procedure is not required.
NWC Project Manager Cluster Asset Management Director
Responsible:
Cluster Technical Services Director Cluster O&M Director
Accountable: Cluster Technical Services Director

Consulted: Cluster Strategic Planning Manager Cluster Technical Services Director

Informed: Cluster Capital Projects VP

14.4.4.8 PMM-014-PRO-030-060 Forward the Tendering Document for Tendering

1. The authorized person shall forward the tendering documents which includes but not
limited to:
a. Request for Proposal RFP
b. PR approval form (if to tendered with a budget reservation)
c. Project Pre-Tender Review Form (for construction projects)
To the Supply Chain VP / Cluster Supply Chain Manager (as per authority) for tendering.
Authorized Person (As per authority
Responsible:
matrix)
Accountable: Authorized Person (As per authority matrix)

Consulted: Cluster Capital Projects VP

Supply Chain VP / Cluster Supply
Informed: Technical Services GM
Chain Manager (as per authority)

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14.5 PMM-014-PRO-040 Select a Bidder

14.5.1 Objective
The objective of this process is to ensure the selection the most appropriate bidders in full compliance
with the NWC Supply Chain processes and procedures.
14.5.2 Policies
Policies for this process are:
1. Detailed procedures and processes, for the selection of bidders, can be found in the NWC
Supply Chain processes and procedures.
2. All bidders must be included in the Supply Chain Approved Vendors List.
3. The bidder proposals should be prepared in response to the tender documents.
4. The bidder proposals are the basis of the bidder evaluation for the selection of one or more
successful bidders.
5. A formal evaluation review process should be agreed and performed by the
technical/commercial evaluation team. On completion of the evaluation, an Evaluation
Report will be produced stating the evaluation results and the most favorable bid.
6. The technical and commercial proposals of each bidder should be evaluated separately.
7. The bidder capabilities to be evaluated by a technical evaluation process then the not
passing bids shall be eliminated from the commercial evaluation which to be performed
next.
8. The technical and commercial evaluation committees should include members from the
Projects department to participate in the commercial review process.
9. Contract is a legally binding document, subject to remedy in the courts describing the
obligations and the rights of the two contracted parties.
10. The Capital Projects department has the right to add to the contract any document that
considered required to be attached such as:
a. Quality Requirements for Construction Contractors & Design Consultants.
b. HSSE Requirements of Contract Appendix.
11. In case of any conflict between the procurement policies and procedures in PMM and latest
approved Supply Chain department policies and procedures, the Supply Chain's supersede.
12. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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14.5.3 Workflow Chart

Figure 14-6 PMM-016-PRO-040 Select a Bidder Workflow Chart

14.5.4 Procedures
14.5.4.1 PMM-014-PRO-040-010 Nominate Representative for the Technical Evaluation

1. The Cluster Capital Projects VP shall nominate representatives to be part of the Technical
Evaluation Committee to participate in technical evaluation process.
2. Send the nominees to Supply Chain VP / Cluster Supply Chain Manager (as per authority).

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted: Cluster PMO Director
Business Unit Construction Director
Cluster Strategic Planning Director
Cluster Technical Services Director
Cluster Supply Chain Manager
Cluster Scheduling & Control Director
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.2 PMM-014-PRO-040-013 Participate in Pre-Tender Meeting

1. Participate in the pre-tender meeting. This meeting is conducted for projects above 200M
SAR or special projects.
This meeting to be attended by participants from the HQ/Cluster Projects department. The
least participants to attend this meeting are:
a. NWC Project Manager
b. Cluster Technical Services Director (for cluster projects)
c. Engineering Director (for HQ projects)
NWC Project Manager
Responsible:
Cluster Technical Services Director Engineering Director (for HQ projects)
(for cluster projects)
Cluster Capital Projects VP (for cluster projects) / Technical Services GM (for
Accountable:
HQ projects)

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Business Unit Construction Director Cluster PMO Director

Consulted:
Cluster Scheduling & Control Director Cluster Supply Chain Manager
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.3 PMM-014-PRO-040-016 Participate in Site Visits and Job Explanation Meeting

1. Arrange and participate in site visit and walkthroughs to explain the scope of project and
its conditions.
2. Review the Job Explanation meeting Agenda and provide comments.
3. Participate in the Job Explanation meeting and provide responses to bidder’s questions.
4. If required, group bidder requests for information and answers, for presentation at the Bid
Conference.
5. Receive and review the conference minutes.

Responsible: NWC Project Manager Cluster Technical Services Director

Accountable: Cluster Capital Projects VP

Business Unit Construction Director Cluster PMO Director
Consulted:
Cluster Scheduling & Control Director Cluster Supply Chain Manager
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.4 PMM-014-PRO-040-018 Respond to Bidder’s Questions

After the HQ/Cluster Supply Chain department (as per authority):

a. Finalizes tender Documents.
b. Sends invitation to bid (ITB) to the prequalified Contractors:
c. Receives Bidders’ requests for information and questions.
d. Sends the technical questions to NWC Project Manager.
2. Then the NWC Project Manager shall:
a. Confidentially, distribute the Bidders’ requests for information and questions to the
relevant department.
b. Collect the relevant department’s responses.
c. Send the responses to the Supply Chain department.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Business Unit Construction Director
Consulted: Cluster PMO Director
Cluster Technical Services Director
Cluster Supply Chain Manager
Cluster Scheduling & Control Director
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.5 PMM-014-PRO-040-020 Participate in Evaluating the Technical Proposals

1. The Projects department representative in the Technical Evaluation Committee shall

participate in the following:
a. Checking tender submission compliance.
b. Performing initial evaluation for short listing.
c. Evaluating bidders technically.

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d. During evaluation, issuing tender clarifications to tenderers when required and

register all clarifications.
e. Ranking bidders and recommending the passing bidders.
2. Develop the technical evaluation report using (PMF-014-PRO-012_03 Technical Bid
Evaluation Form.docx) within 14 days and raise it to the authorized person (as per authority
matrix) for approval.

Responsible: Projects Department Representative

Accountable: Supply Chain VP / Cluster Supply Chain Manager (as per authority)
Cluster Capital Projects VP Cluster Scheduling & Control Director
Consulted:
NWC Project Manager Cluster PMO Director
Business Unit Construction Director Cluster Strategic Planning Director
Cluster Technical Services Director Cluster Supply Chain Manager
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.6 PMM-014-PRO-040-030 Approve the Technical Evaluation

1. The authorized person (as per authority matrix) shall approve the technical evaluation
report within 7 days.

Responsible: Authorized Person (as per authority matrix)

Accountable: Authorized Person (as per authority matrix)

Technical Evaluation Committee Cluster Capital Projects VP
Consulted:
Cluster Supply Chain Manager Supply Chain VP
Supply Chain VP
Informed: Capital Projects Services VP
Cluster Capital Projects VP
14.5.4.7 PMM-014-PRO-040-035 Nominate Representative for the Commercial Evaluation

1. The Cluster Capital Projects VP shall nominate representatives to be part of the

commercial evaluation committee to participate in commercial evaluation process.
2. Send the nominees to Supply Chain VP / Cluster Supply Chain Manager (as per authority).

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

NWC Project Manager
Consulted: Cluster PMO Director
Business Unit Construction Director
Cluster Strategic Planning Director
Cluster Technical Services Director
Cluster Supply Chain Manager
Cluster Scheduling & Control Director
Supply Chain VP / Cluster Supply
Informed:
Chain Manager (as per authority)
14.5.4.8 PMM-014-PRO-040-040 Participate in Evaluating the Commercial Proposals and
Approve the Commercial Evaluation Report

1. The Projects department representative in the Commercial Evaluation Committee shall

participate in the following:
a. Check tender submission compliance.
b. Perform initial evaluation for short listing.
c. Evaluate bidders commercially.
d. During evaluation, issue tender clarifications to tenderers when required and
register all clarifications.
e. Rank bidders and recommend a winner.

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f. Developing the commercial evaluation report within 14 days and raising it to the
authorized person (as per authority matrix) for approval.

Responsible: Projects Department Representative

Accountable: Supply Chain VP / Cluster Supply Chain Manager (as per authority)
Cluster Capital Projects VP Cluster Scheduling & Control Director
Consulted:
NWC Project Manager Cluster PMO Director
Business Unit Construction Director Cluster Strategic Planning Director
Cluster Technical Services Director Cluster Supply Chain Manager
Informed: Supply Chain VP

14.5.4.9 PMM-014-PRO-040-045 Approve the Commercial Evaluation

1. The authorized person (as per authority matrix) shall approve the commercial evaluation
report within 7 days.
Authorized Person (as per authority
Responsible:
matrix)
Accountable: Authorized Person (as per authority matrix)
Technical Evaluation Committee Cluster Capital Projects VP
Consulted:
Cluster Supply Chain Manager Supply Chain VP
Supply Chain VP
Informed: Capital Projects Services VP
Cluster Capital Projects VP
14.5.4.10 PMM-014-PRO-040-050 Ensure the Approval of the Selected Bidder

After recommendations on the approved technical and commercial reports, the NWC
Project Manager shall:
a. If the project was tendered with a budget reservation:
2. Ensure the approval by the authorized person within 5 days on the selected bidder.
3. Ensure the issuance of the Purchase Order (PO) within 5 days by the HQ/Cluster Supply
Chain department (as per authority).
a. If the project was tendered without a budget reservation:
4. Perform the procedures “PMM-014-PRO-030-030 Prepare Purchase Requisition (PR)” and
“PMM-014-PRO-030-040 Approve Purchase Requisition (PR)”.
5. Ensure approval by the authorized person within 5 days on the selected bidder.
6. Ensure issuance of the Purchase Order (PO) within 5 days by the HQ/Cluster Supply Chain
department (as per authority).

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Supply Chain VP / Cluster Supply Authorized Person (As per authority
Consulted:
Chain Manager (as per authority) matrix)
Informed: Cluster Capital Projects VP

14.6 PMM-014-PRO-070 Contract Administration

14.6.1 Objective
The objective of this process is to describe the management of the contractual relationship between
the Consultant/Contractor and NWC, making sure that both parties fulfil their contractual obligations
to each other.

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14.6.2 Policies
Policies for this process are:
1. NWC Project Manager and his NWC project team must be aware of all project contract
provisions the legal implications of their decisions when:
i. administering the contract and directing the second parties.
ii. manage the interfaces between the second parties.
2. The required performance of the second parties is:
i. described in the contract documents
ii. monitored documented in progress reports.
3. The second party is contractually totally responsible for all works executed by his
Subcontractors, vendors, suppliers and testing facilities.
4. NWC have the right to review, analyze and assess any project document by NWC team or
any second or third party.
5. Every Variation Orders (VO) should be requested and approved in writing. Verbal requests
or approvals are completely prohibited and shall not be considered on any project activity.
6. The second party accounting department should properly manage the contractual invoicing
as per the PMM procedures, timing and forms.
7. In dispute cases, claims must be administered in accordance with the contract conditions.
Dispute resolution through negotiation should always be the preferred option.
8. If the NWC project team and/or its representative requests for any of this information from
a second party, the second party must immediately provide the requested information.
9. Capital Projects PMS is to be used to store, retrieve and/or archive all the documentation
created during the life cycle of a Project. Access with controlled authorities to be granted to
the key members of NWC and/or second party project management teams.
10. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
14.6.3 Workflow Chart
Figure 14-7 PMM-016-PRO-070 Contract Administration Workflow Chart

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14.6.4 Procedures
14.6.4.1 PMM-014-PRO-070-010 Ensure the Contract Financial Status

This procedure shall be performed for all cluster projects.

1. At the beginning of every project, ensure that the second party has received all contract
documents.
2. On monthly basis, ensure that the performance bond is valid.
3. On monthly basis, ensure that all project insurance certificates (if any) are valid.
4. Ensure that the final invoice is issued only after the issuance of the closed snag list
rectification.
Cluster Contracts Administration
Responsible:
Manager
Accountable: Cluster Capital Projects VP
NWC Project Manager
Consulted: Contractor
Design Consultant
Cluster Supply Chain Manager
Supervision Consultant
Informed: NWC Project Manager

14.6.4.2 PMM-014-PRO-070-020 Performance Review

1. On monthly basis, review in detail the aspects of the followings against the contract
provisions:
a. The actual project progress.
b. The project progress forecast.
c. The project costs such as paid values, advance payment recovery, projected cash
flow, etc.
d. The project variations.
e. The project suspensions.
f. The initial acceptances & handovers.
g. The final acceptances & handovers.
h. The Contractor liabilities.
i. The project reports such as design reports, quality, procurements, HSE.
Supervision Consultant (in
Responsible: NWC Project Manager
Construction and Design &
NWC Project Document Controller
Construction projects)
Accountable: NWC Project Manager
Contractor (in Construction and Design
Consulted:
& Construction projects)
Supervision Consultant (in Cluster QA Section Head
Construction and Design & Cluster Scheduling Section Head
Construction projects) Cluster Project Control Section Head
Design Consultant (in Design projects) Cluster Risk Section Head
Cluster Technical Services Director (in Cluster Cost Control Section Head
Design projects)
Business Unit Safety Section Head
Scheduling Control Director
Informed: Cluster Supply Chain Manager
Cost Control Director
Supply Chain VP
Project Performance Monitoring
Cluster Scheduling & Control Director
Director

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14.6.4.3 PMM-014-PRO-070-040 Project Documentation and Records Management

1. Receive and file all the contractual documents including:

a. project drawings, shop drawings and all their revisions.
b. works execution Baseline schedule and all schedule revisions.
c. manpower records.
d. plant and equipment records.
e. permanent material records.
f. records of equipment and material incorporated in the works with their operation
manuals, warranties and staff training records.
g. works progress records including the related photographic records.
h. inspection and audit records.
i. Design Consultant / Contractor payments records including closeout check report.
j. variation and claim submissions.
k. Design Consultant / Contractor information requests and subsequent responses.
2. Use the Capital Projects PMS to upload and store above documents.

Responsible: NWC Project Manager NWC Project Document Controller

Accountable: NWC Project Manager

Cluster Technical Services Director
Consulted: Cluster Project Control Section Head
Cluster Supply Chain Manager
Supervision Consultant
Business Unit Safety Section Head
Supply Chain VP
Cluster QA Section Head
Cluster Finance GM
Cluster Scheduling Section Head
Informed: NWC Project Manager

14.7 PMM-014-PRO-080 Suspend and Resume Project

14.7.1 Objective
The objective of this process is to ensure that the project suspension and resumption are as per valid
reasons and timely activated.
14.7.2 Policies
Policies for this process are:
1. The suspension request should be raised within maximum 60 calendar days from
suspension reasons occurrence. Any exception to this duration must be raised to the
Projects EVP detailing the reasons of delay for his approval.
2. The partial suspension shall not be allowed before consuming the floating time of the related
activities.
3. The Design Consultant / Contractor is not allowed to work at projects sites during the total
suspension period.
4. The Design Consultant / Contractor shall be granted extension period to project duration:
i. (against total suspension) equals to the total suspension period plus 3 days against
every sequential thirty days of total suspension for resumption mobilization. The total
granted resumption mobilization periods shall not exceed 45 calendar days.
ii. (against partial suspension) equals to the affection on the project schedule critical path
that calculated by Supervision Consultant (in construction projects) or Cluster Technical
Services department (in design projects).
5. A variation for time extension should be initiated once the resumption letter is issued to the
Design Consultant / Contractor.

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6. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
14.7.3 Workflow Chart
Figure 14-8 PMM-014-PRO-080 Suspend and Resume Project Workflow Chart

14.7.4 Procedures
14.7.4.1 PMM-014-PRO-080-010 Submission and Review of the Suspension Justifications

1. Within maximum 60 calendar days from suspension reasons occurrence:

a. Design Consultant / Contractor / Supervision Consultant shall request for a
suspension.
or
b. Any other project stakeholder shall notify NWC Project Manager about the need
to suspend the project.
2. The Supervision Consultant / Cluster Technical Services Director shall assess the project
suspension issues that:
a. raised through suspension request from Design Consultant / Contractor / Any
Project Stakeholder.
or
b. identified by any project stakeholder.
3. Supervision Consultant (in construction projects) or Cluster Technical Services Director (in
design projects) shall develop a report with recommendations using (PMF-014-PRO-044
Partial Suspension Request Report) or (PMF-014-PRO-045_03 Total or Partial Greater
than 50% Suspension Request Report.docx) within 3 days from the letter submission date
that submitted by Design Consultant / Contractor / Stakeholder. Attach to the report the
documents that stated in the report or any other required documents as applicable.

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Contractor / Design Consultant /

Responsible:
Supervision Consultant
Supervision Consultant (in
Relevant Stakeholder
construction projects) / Cluster
Technical Services Director (in design
projects)
Accountable: NWC Project Manager
Design Consultant / Contractor
Consulted: Cluster Scheduling Section Head
Cluster Asset Management Director
Cluster Project Control Section Head
Cluster O&M Director
Informed: NWC Project Manager

14.7.4.2 PMM-016-PRO-080-015 Endorse / Approve Suspension Request at Cluster

1. The project Manager shall:

a. Review the Supervision Consultant / Cluster Technical Services Director report.
2. Initiate suspension request attaching form (PMF-014-PRO-045_03 Total or Partial Greater
than 50% Suspension Request Report.docx) or (PMF-014-PRO-042_03 Partial Less than
50% Suspension Request Approval Form.docx) as per the suspension case.
a. Sign the request and collect the signature of the Supervision Consultant / Cluster
Technical Services Director.
b. Send it to Cluster Capital Projects VP within 3 days.
3. The Cluster Capital Projects VP, within 3 days, shall review the suspension report then:
4. Approve the partial suspension for less than 50% of remaining works using (PMF-014-
PRO-042_03 Partial Less than 50% Suspension Request Approval Form.docx).
or
5. Endorse the total suspension / partial suspension for more than 50% of remaining works
using (PMF-014-PRO-009_03 Total or Partial Greater than 50% Suspension Request
Approval Form.docx) and forward it to Projects Execution VP for review and approval.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Supervision Consultant (in
Consulted:
construction projects) / Cluster
Technical Services Director (in design Cluster Scheduling & Control Director
projects)
Business Unit Construction Director
Informed: Scheduling & Control GM Projects Execution VP

14.7.4.3 PMM-014-PRO-080-020 Approve Total / Partial Project Suspension for More Than
50 % of Remaining Works at HQ

1. The Projects Execution VP shall review and approve the project suspension request of
total suspension / partial suspension for more than 50% of remaining works.
2. Projects Execution VP shall forward the approved request to the Cluster Capital Projects
VP for issuance.
This procedure to be completed within 7 days.

Responsible: Projects Execution VP

Accountable: Projects Execution VP

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Technical Services GM
Consulted: Scheduling & Control GM
PMO GM
Informed: Cluster Capital Projects VP

14.7.4.4 PMM-014-PRO-080-030 Issue a Formal Letter for Total/Partial Project Suspension

1. Issue a formal letter to Design Consultant / Contractor to suspend the project

totally/partially within 3 days from the approval date using PMF-014-PRO-026_03
Suspension Letter.docx).
The suspension shall be for defined duration or till further notice.
2. Update the project status in Capital Projects PMS.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Supervision Consultant (in construction projects) / Cluster Technical Services
Consulted:
Director (in design projects)
Cluster Asset Management Director
Cluster O&M Director
Business Unit Construction Director
Design Consultant / Contractor
Informed:
Supervision Consultant (in construction projects) / Cluster Technical Services
Director (in design projects)
Cluster Capital Projects VP
Cluster Scheduling & Control Director
Cluster Supply Chain Manager
Scheduling & Control GM
14.7.4.5 PMM-014-PRO-080-040 Issue Resumption Recommendation

1. Participate in resolving the resolution of the suspension reasons.

If the resolution of the suspension reasons is out of the control of NWC and the Supervision
Consultant, keep monitoring the resolution.
2. After resolving suspension reasons, assess the situation and develop resumption report
using (PMF-014-PRO-046_03 Resumption Report.docx) within 2 days form suspension
reasons resolution.
3. Attach to the report the documents that stated in the report or any other required documents
as applicable.
Supervision Consultant (in
Responsible:
construction projects) / Cluster
Technical Services Director (in design
projects)
Accountable: NWC Project Manager

Consulted: Design Consultant / Contractor Relevant Stakeholder

Informed: NWC Project Manager

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14.7.4.6 PMM-014-PRO-080-050 Issue a Formal Letter to Resume the Work

1. The project Manager shall: review the report from the Supervision Consultant / Cluster
Technical Services Director.
2. Initiate resumption request attaching form (PMF-014-PRO-007_03 Resumption Approval
Form.docx). Sign the request and collect the signature of the Supervision Consultant /
Cluster Technical Services Director.
3. Send it to Cluster Capital Projects VP within 2 days.
4. The Cluster Capital Projects VP shall:
a. Review the resumption request and recommendation.
b. Approve the request.
5. Issue a formal letter to Design Consultant / Contractor to resume the suspended work
(whole or partial project) within 2 days using (PMF-014-PRO-022_03 Resumption
Letter.docx).
6. Within 1 days from the resumption letter issuance date, the NWC Project Manager shall
update the project status in Capital Projects PMS.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Supervision Consultant (in
Consulted:
construction projects) / Cluster
Cluster O&M Director
Technical Services Director (in design
Business Unit Construction Director
projects)
Cluster Asset Management Director
Design Consultant / Contractor
Informed:
Supervision Consultant (in
construction projects) / Cluster Cluster Supply Chain Manager
Technical Services Director (in design Scheduling & Control GM
projects)
Cluster Scheduling & Control Director
14.7.4.7 PMM-014-PRO-080-060 Request a Variation for a Time Extension

1. For resumption of total suspension, once the Resumption Approval Form is approved, the
NWC Project Manager shall request for time extension starting from the procedure (PMM-
005-INT-060-040 Develop the Variation Report).
2. For resumption of partial suspension:
a. Once the resumption letter of a partial suspension is issued to the Design
Consultant / Contractor, and the Design Consultant / Contractor shall request for
time extension within 15 calendar days from the partial resumption letter issuance
date starting from the procedure (PMM-005-INT-060-030 Claim for a Variation by
a Second Party).
b. If the Design Consultant / Contractor does not submit for time extension for 15
calendar days from the partial resumption letter issuance date, the NWC Project
Manager shall request for time extension starting from the procedure (PMM-005-
INT-060-040 Develop the Variation Report).
Design Consultant /
Responsible: NWC Project Manager
Contractor
Accountable: Cluster Capital Projects VP
Supervision Consultant (in
Consulted:
construction projects) /
Business Unit Construction Director
Cluster Technical Services
Director (in design projects)

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Design Consultant /
Informed:
Contractor
Supervision Consultant (in Cluster Capital Projects VP
construction projects) / Cluster Scheduling & Control Director
Cluster Technical Services
Director (in design projects)
14.8 PMM-014-PRO-085 Change Project Status from Partial Suspension to Total
Suspension
14.8.1 Objective
The objective of this process is to ensure that changing the project status from partial suspension to
total suspension is applied just when all the available works are completed.
14.8.2 Policies
Policies for this process are:
1. This process shall be performed only for projects that are under partial suspension only.
2. The request to change the project status should be:
i. raised when the suspended works reaches 50% of the all the remaining works.
THEN
ii. activated when all available works are completed.
3. The completion of all available project works in the project must be proven by updated
project schedule and a letter from the Supervision Consultant.
4. The total suspension start date must be next date to the available works completion date.
5. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
14.8.3 Workflow Chart
Figure 14-9 PMM-016-PRO-085 Change Project Status from Partial Suspension to Total Suspension
Workflow Chart

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14.8.4 Procedures
14.8.4.1 PMM-014-PRO-085-010 Develop a Report of Changing Project Status from Partial
Suspension to Total Suspension

1. For construction projects:

a. When the suspended works become 50% of the remaining works, NWC Project
Manager shall direct the consultant to:
2. Create a report regarding the project progress status using (PMF-014-PRO-043_03
Changing Partial Suspension to Total Suspension Report.docx).
i. Attach to the report the documents that stated in the report or any other
required documents as applicable.
3. Supervision Consultant shall develop within 3 days from the direction a report that clearly
clarifies:
i. that the suspended works reached 50% of the remaining works.
ii. the existence of suspension reasons for the suspended works.
iii. a recommendation for changing the project status from partial suspension
to total suspension when all available works are completed.
4. The project Manager, within 2 days, shall:
i. Review the Supervision Consultant suspension change report.
ii. Develop a request to change the project status from partial suspension to
total suspension when all available works get completed using (PMF-014-
PRO-040 Changing Partial Suspension to Total Suspension Approval
Form) attaching the Report on Changing Partial Suspension to Total
Suspension.
iii. Collect the Supervision Consultant signature on the request then raise it
to Cluster Capital Projects VP.
5. For Design Projects, NWC Project Manager shall perform all above actions once the
suspended works become 50% of the remaining works.

Responsible: NWC Project Manager Supervision Consultant

Accountable: Business Unit Construction Director

Design Consultant (in design projects)
Consulted: NWC Project Manager
Cluster Technical Services Director (in
Contractor (in construction projects)
design projects)
Informed: Cluster Capital Projects VP

14.8.4.2 PMM-014-PRO-085-020 Raise a Request for Changing the Project Status from
Partial Suspension to Total Suspension

1. The Cluster Capital Projects VP, within 3 days, shall:

a. Review the report and the approval form.
b. Endorse the approval form.
c. Raise the report and the approval form to the Projects Execution VP for review and
approval.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

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NWC Project Manager

Consulted: Cluster Scheduling & Control Director
Supervision Consultant
Cluster Asset Management Director
Business Unit Construction
Cluster O&M Director
Director
NWC Project Manager
Informed:
Cluster Scheduling & Projects Execution VP
Control Director
14.8.4.3 PMM-014-PRO-085-030 Approve Changing to Total Project Suspension

1. The Projects Execution VP shall:

a. Review the Report on Changing Partial Suspension to Total Suspension and the
approval form.
b. Approve/reject the approval form.
c. Forward the approved approval form to the Cluster Capital Projects VP for
suspension change letter issuance.
This procedure to be completed within 7 days.

Responsible: Projects Execution VP

Accountable: Projects Execution VP

Cluster Capital Projects VP Scheduling & Control GM
Consulted:
PMO GM Technical Services GM
Cluster Capital Projects VP
Informed: Supply Chain VP
Cluster Supply Chain Manager
14.8.4.4 PMM-014-PRO-085-040 Issue a Formal Letter for Total Project Suspension

1. Cluster Capital Projects VP shall issue a formal suspension change letter to Design
Consultant / Contractor within 3 days from the notification using (PMF-014-PRO-041_03
Changing Partial Suspension to Total Suspension Letter.docx). The total suspension shall
be for a defined duration or till further notice.
2. When the suspension reasons demise, perform (PMM-014-PRO-080-040 Issue
Resumption Recommendation) and (PMM-014-PRO-080-050 Issue a Formal Letter to
Resume the Work).
3. NWC Project Manager shall update the project status in Capital Projects PMS to total
suspension.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Supervision Consultant
Consulted: Scheduling & Control GM
Business Unit Construction Director
Design Consultant / Contractor Cluster Supply Chain Manager
Informed:
Supervision Consultant Cluster Asset Management Director
Cluster Scheduling & Control Director Cluster O&M Director
Cluster Capital Projects VP Scheduling & Control GM
14.9 PMM-014-PRO-090 Withdraw Project
14.9.1 Objective
The objective of this process is to ensure that projects are withdrawn when the second party fails to
fulfill his contractual responsibilities.
14.9.2 Policies
Policies for this process are:
1. NWC has the right to withdraw all or part of the remaining works of any project if the second
party fails to fulfill its contractual obligations after being warned.

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i. When NWC withdraws all the remaining project works, this case is known as Total
Withdraw.
When NWC withdraws part of the remaining project works, this case is known as Partial
Withdraw such as the “PMM-006-SCO-060-059 Rectify the Snag List Items by Another
Contractor on Main Contractor Expense”.
2. NWC has the right to withdraw all or part of the remaining works if the second party:
i. fails to submit an initial acceptance request within 15 calendar days from final warning
letter that issued him due to not submitting it at the project contractual end date.
ii. fails to reduce the schedule variance under 20% after 15 calendar days from final
warning that issued to him due to that schedule variance reached 20%.
iii. fails to submit a project level 3 schedule within 15 calendar days from final warning
letter that issued to him due to not submitting it within 15 calendar days from project
start date.
The final warning letters should be preceded by a first warning letter.
3. All approved time extensions must be considered before issuing a warning letter.
4. If the Contractor resolved the reasons of an issued warning letter(s), this/these issued
warning letter(s) will be considered void. Consequently, if the Contractor become entitled
for a warning letter again, this warning letter shall be considered first warning letter.
5. The Project Works Survey Committee, in addition to the NWC Project Manager, shall
include at least representatives from:
i. Cluster Projects department
ii. Cluster O&M department
iii. Cluster Asset Management department (in construction projects)
iv. Cluster HSSE department
v. Cluster Finance department
vi. Supervision Consultant (in construction projects)
vii. Design Consultant / Contractor
6. Surveying the project works up to report approval should not exceed 21 calendar days from
the withdrawal letter issuance date.
7. RFP preparation should not exceed 42 calendar days from the withdrawal letter issuance
date.
8. The PO issuance to the new Contractor should be maximum 180 calendar days form the
withdrawal letter issuance date.
9. If the durations in policies 6 and 7 are expected to be exceeded, an approval from the
Projects EVP must be obtained by a request. The request should detail the reasons of delay.
10. The executed works (assets), equipment, material and any other project items at site are
considered under the NWC custody when the withdraw letter issued as follows:
i. The Contractor construction equipment (owned and rentals such as cranes,
excavators, loaders, etc.) shall not be included in custody except specific equipment
that the committee recommends keeping under NWC custody that not easily be
provided by the new Contractor.
ii. The project materials and equipment that contractually to be supplied and installed in
project works (such as transformers, pumps, pipes, etc.) shall be assessed by the
survey committee to decide whether it shall be included in or excluded from the custody.
iii. The assessment for inclusion/exclusion of the contractual material and equipment must
take into account the following factors beside any other factor the committee agrees
upon:
a. the requirements of transporting and storing during the retendering period.
b. the required duration to re-supply the materials and equipment.

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iv. The materials and equipment that the committee decided to include in NWC custody
shall be transported to and stored in NWC warehouses (if any) or rental warehouses
(that has the required storing conditions).
v. Any costs of transportation, storing rent and securing the custodied materials and
equipment within first six months from withdraw letter issuance date shall be on
Contractor expense.
vi. The sites and executed works shall be secured during the retendering period by a
security third party. The cost shall be on Contractor expense for the first six months
from withdraw letter issuance date.
vii. After the duration in above points (v) and (vi) exceeds six months from withdraw letter
issuance date (which is the retendering period), the costs shall be after then on NWC
expense.
11. For mutual project termination agreement, the supply chain’s procedure shall be
implemented.
12. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.
14.9.3 Workflow Chart
Figure 14-10 PMM-014-PRO-090 Withdraw Project Workflow Chart

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14.9.4 Procedures
14.9.4.1 PMM-014-PRO-090-003 Develop a Project Works Survey Report for Not Requesting
IA&HO at the Project End Date

1. If Contractor does not submit initial acceptance request at the project contractual end date,
NWC Project Manager shall request for forming a project works survey committee to
assess the project status and make survey for the completed works by doing the following
actions. NWC Project Manager shall start these actions 5 days before the contractual
project end date:
2. Collect nomination confirmations from at least the following parties to participate the
committee beside the NWC Project Manager within 2 days:
i. Cluster Projects department
ii. Supervision Consultant
iii. Contractor
3. The committee may include more nominated representatives from other parties if required.
4. Each party can confirm one or more nominated representatives.
5. NWC Project Manager shall raise to the Cluster Capital Projects VP a request within 1 day
to form a project works survey committee using the form (PMF-014-PRO-053_03 Project
Works Survey Committee for Not Requesting IA&HO Forming Request.docx) to:
i. Do project works survey.
ii. Identify the project status.
iii. Describe the project works status indicating the executed and remaining
works.
6. Within 2 days before the project end date, Cluster Capital Projects VP shall form the
requested project works survey committee.
7. The project works survey committee shall survey the projects works, assess the project
situation and develop a committee report using (PMF-014-PRO-048_03 Project Works
Survey Report for Not Requesting IA&HO.docx) within 7 days. The documents that stated
in the report or any other required documents shall be attached.
8. The Cluster Capital Projects VP shall review and approve the report within 2 days.
9. NWC Project Manager shall upload the approved report to Capital Projects PMS.
Supervision Consultant Project Works Survey Committee
Responsible:
NWC Project Manager Cluster Capital Projects VP
Accountable: Cluster Capital Projects VP

Consulted: Contractor Cluster Scheduling & Control Director

Informed: Cluster Scheduling & Control Director

14.9.4.2 PMM-014-PRO-090-006 Develop a Project Status Report at 20% Time Overrun and
Recommend Grace Period

1. After 20% time overrun, if the:

a. NWC Project Manager, the Cluster Scheduling & Control Director and Cluster
Capital Projects VP (for construction projects)
b. NWC Project Manager, the Cluster Technical Services Director and Cluster Capital
Projects VP (for design projects)
Jointly believed to grant a grace period to the Contractor:
a. For construction projects

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i. The NWC Project Manager shall direct the Supervision Consultant to

develop a project status report.
2. The Supervision Consultant shall develop the report recommending granting a grace
period using (PMF-014-PRO-047 Status Report for a Grace Period at 20% Time Overrun).
a. The NWC Project Manager shall review and sign the report and raise it to Cluster
Capital Projects VP.
b. For design projects, the NWC Project Manager, in consultation with the Technical
Services director, shall develop a report recommending granting a grace period
using (PMF-014-PRO-047_03 Status Report for a Grace Period at 20% Time
Overrun.docx).
3. The Cluster Capital Projects VP shall review and sign the report and forward it to the
Scheduling & Control GM.
The above actions shall be completed within 3 days after reaching 20% time overrun.
Supervision Consultant
Responsible: Cluster Capital Projects VP
NWC Project Manager
Accountable: Cluster Capital Projects VP

Consulted: Contractor / Design Consultant Cluster Scheduling & Control Director

Informed: Scheduling & Control GM

14.9.4.3 PMM-014-PRO-090-008 Approve the Status Report and the Grace Period
Recommendation

1. The Scheduling & Control GM shall review and sign the project status report and raise it
to the Capital Projects Services VP within 7 days.
2. The Capital Projects Services VP shall review and sign the project status report and raise
it to the Capital Projects Services VP within 2 days.
3. The Projects EVP shall decide within 2 days whether to:
a. Grant the Contractor / Design Consultant a Grace Period. After the grace period
end, the recommendation generating shall be repeated starting from procedure
(PMM-014-PRO-090-006 Develop Project Status Report at 20% Time Overrun and
Recommend Withdrawal / Grace Period).
4. Go through a withdraw process starting by procedure (PMM-014-PRO-090-020 Issue first
warning letter to Design Consultant / Contractor).
Scheduling & Control GM
Responsible: Projects EVP
Capital Projects Services VP
Accountable: Projects EVP

Consulted: Cluster Capital Projects VP

Informed: Cluster Capital Projects VP NWC Project Manager

14.9.4.4 PMM-014-PRO-090-010 Issue Urge Letter to Design Consultant / Contractor

1. During the project duration, if the reported Schedule Variance reached 15%, the NWC
Project Manager shall prepare an urge letter using form (PMF-014-PRO-011_03 Urge
Letter.docx) to the Design Consultant / Contractor within 1 day after that the SV reaches
15%.
2. The Cluster Capital Projects VP shall issue the urge letter using form (PMF-014-PRO-
011_03 Urge Letter.docx) to the Design Consultant / Contractor within 1 day.

Responsible: NWC Project Manager Cluster Capital Projects VP

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Accountable: Cluster Capital Projects VP

Supervision Consultant
Consulted: Cluster Asset Management Director
Cluster Contracts Administration
Cluster O&M Director
Manager
Supply Chain VP
Cluster Supply Chain Manager
Informed: Design Consultant / Contractor Supply Chain VP

14.9.4.5 PMM-014-PRO-090-020 Issue First Warning Letter to Design Consultant /

Contractor

1. Issue first warning letter to Design Consultant / Contractor when:

a. The Projects EVP approves to go through a withdraw process due to that Design
Consultant / Contractor does not submit an initial acceptance request at the
contractual project end date. Use (PMF-014-PRO-051_03 First Warning Letter Due
to Not Requesting IA&HO.docx).
b. Project Schedule Variance (SV) reaches 20% during project duration. Use (PMF-
014-PRO-010_03 First Warning Letter Due to Schedule Variance.docx)
c. Design Consultant / Contractor does not submit a project schedule within 15
calendar days from contractual project start date. Use (PMF-014-PRO-027_03 First
Warning Letter Due to Not Submitting Project Schedule.docx).
The first warning Letters for above mentioned cases shall be issued with a grace period of
30 calendar days to take corrective actions.
2. The NWC Project Manager shall prepare the 1st warning letter to the Design Consultant /
Contractor and raise it to Cluster Capital Projects VP within 1 day.
3. The Cluster Capital Projects VP shall sign and issue the 1st warning letter to the Design
Consultant / Contractor within 1 day.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Supervision Consultant
Consulted:
Cluster Contracts Administration Cluster O&M Director
Manager Supply Chain VP
Cluster Supply Chain Manager Legal Affairs GM
Cluster Asset Management Director
Design Consultant / Contractor Cluster Asset Management Director
Informed:
Cluster Capital Projects VP Cluster O&M Director
Cluster Supply Chain Manager Supply Chain VP
14.9.4.6 PMM-014-PRO-090-030 Issue Final warning letter to Design Consultant / Contractor

1. Issue final warning letter to Design Consultant / Contractor when:

a. The Design Consultant / Contractor fails to submit an initial acceptance request
after 30 calendar days from the first warning letter that issued for this reason. Use
form (PMF-014-PRO-052_03 Final Warning Letter Due to Not Requesting
IA&HO.docx).
b. The reported Schedule Variance is still more than 20% after 30 calendar days from
the first warning letter. Use form (PMF-014-PRO-013_03 Final Warning Letter Due
to Schedule Variance.docx).
c. the Design Consultant / Contractor fails to submit the project level 3 schedule after
30 calendar days from the first warning letter that issued for this reason. Use form
(PMF-014-PRO-025 Final Warning Letter for Not Submitting Project Schedule).
The final warning Letters for above mentioned cases shall be issued with a duration of 15
calendar days to take corrective actions.

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2. The NWC Project Manager shall prepare the final warning letter to the Design Consultant
/ Contractor and raise it to the Cluster Capital Projects VP within 1 day.
3. The Cluster Capital Projects VP shall endorse the final warning letter to the Design
Consultant / Contractor and raise it to the Projects Execution VP within 1 day.
4. The Projects Execution VP shall sign and issue the final warning letter to the Design
Consultant / Contractor within 1 day.
NWC Project Manager
Responsible: Projects Execution VP
Cluster Capital Projects VP
Accountable: Projects Execution VP
Supervision Consultant
Consulted: Cluster O&M Director
Cluster Contracts Administration
Scheduling & Control GM
Manager
Supply Chain VP
Cluster Supply Chain Manager
Legal Affairs GM
Cluster Asset Management Director
Design Consultant / Contractor
Informed: NWC Project Manager
Cluster Supply Chain Manager
14.9.4.7 PMM-014-PRO-090-040 Develop and Submit a Project Status Report

1. If the Design Consultant / Contractor doesn’t take any corrective actions after receiving the
final warning up to the end of the final warning period (15 calendar days), the Cluster
Technical Services Director / Supervision Consultant shall prepare and submit a detailed
project status report within 5 days which shall include but not limited to the following:
a. The work progress.
b. The seriousness of Design Consultant / Contractor in taking the corrective actions.
c. Recommendation of withdrawal.
d. In construction project, identifying whether the project site and/or works requires or
not:
i. immediate safety actions or not such as backfilling excavations, installing
barricades or light signs, isolate power cables, secure pressurized units,
etc.
ii. a security team to guard the project site and works.
iii. preventive maintenance for the executed project works.
Cluster Technical Services Director (in Supervision Consultant (in
Responsible:
design projects) construction projects)
Accountable: NWC Project Manager

Consulted: NWC Project Manager

NWC Project Manager Cluster Asset Management Director
Informed:
Business Unit Construction Director Cluster O&M Director
Supply Chain VP Legal Affairs GM
Cluster Capital Projects VP Cluster Supply Chain Manager
14.9.4.8 PMM-014-PRO-090-060 Review the Project Status / Supervision Consultant’s
Report and Recommendation and Approve the Withdraw Approval Form

1. Review and endorse the project status report for withdraw.

2. Using (PMF-014-PRO-018_03 Withdraw Approval Form.docx):
a. Develop a withdraw approval form.
b. Sign the form.
c. Collect the signature of the:
i. Supervision Consultant (in construction projects)

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or
ii. Cluster Technical Services Director (in design projects)
3. Forward the form and the report within 2 days to the Cluster Capital Projects VP for review.

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Cluster Supply Chain Manager
Consulted: Supply Chain VP
Cluster Asset Management Director
Legal Affairs GM
Cluster O&M Director
Informed: Cluster Capital Projects VP

14.9.4.9 PMM-014-PRO-090-070 Endorse the Project Withdrawal at Cluster

1. The Cluster Capital Projects VP shall within 2 days:

a. Review the project status report for withdraw and the withdraw approval form.
b. Endorse the withdraw approval form.
c. Raise the project status report for withdraw and the withdraw approval form to the
Capital Projects Services VP.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Scheduling & Control Director
Consulted: Cluster O&M Director
Cluster Strategic Planning Manager
Cluster Supply Chain Manager
Cluster PMO Director
Legal Affairs GM
Cluster Asset Management Director
Cluster Asset Management Director
Informed: Scheduling & Control GM
Cluster O&M Director
Capital Projects Services VP
Cluster Supply Chain Manager
14.9.4.10 PMM-014-PRO-090-075 Approve the Project Withdrawal at HQ

1. The Capital Projects Services VP Within 2 days shall:

a. Review the project status report for withdraw and the withdraw approval form.
b. Endorse the withdraw approval form.
c. Forward the project status report for withdraw and the withdraw approval form to
the Authorized Person (as per the authority matrix) for approval.
2. The authorized person shall approve the withdrawal approval form within 7 days.
Authorized Person (as per the
Responsible: Capital Projects Services VP
authority matrix)
Accountable: Projects EVP
Scheduling & Control GM
Consulted: Legal Affairs GM
Capital Projects Strategic Planning GM
Capital Projects Services VP
PMO GM
Projects Execution VP
Supply Chain VP
Cluster Capital Projects VP Supply Chain VP / Cluster Supply
Informed:
Capital Projects Services VP Chain Manager (as per authority)
14.9.4.11 PMM-014-PRO-090-083 Issue Withdraw Letter to Design Consultant / Contractor

1. The Supply Chain VP / Cluster Supply Chain Manager (as per authority) shall perform,
within 2 days, the following:
a. Review the withdrawal documentation.

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b. Execute any contract related penalties.

c. Update the Consultant / Contractor evaluation records.
2. Prepare the Withdraw Letter using (PMF-014-PRO-018_03 Withdraw Approval Form.docx)
which shall include the following:
i. Demobilization instructions.
ii. Requesting the Design Consultant / Contractor to identify his
representative in The Actual Quantity Survey Committee.
iii. Compensation details.
b. Issue the withdraw letter to the Design Consultant / Contractor.
c. Inform the Cluster Capital Projects VP by the withdraw letter issuance.
Supply Chain VP / Cluster Supply
Responsible:
Chain Manager (as per authority)
Accountable: Supply Chain VP / Cluster Supply Chain Manager (as per authority)
Projects EVP
Consulted: NWC Project Manager
Legal Affairs GM
Design Consultant (for design projects)
Informed: Supply Chain VP
Contractor (for construction projects)
Cluster Asset Management Director
Supervision Consultant (for
Cluster O&M Director
construction projects)
Cluster HSSE Director
Cluster Capital Projects VP
14.9.4.12 PMM-014-PRO-090-086 Update the Project Status in Capital Projects PMS

1. After the withdraw letter issuance, the NWC Project Manager shall update the project status
in Capital Projects PMS.

Responsible: NWC Project Manager

Accountable: Cluster Capital Projects VP

Cluster PMO Director
Consulted: Business Unit Construction Director
Cluster Scheduling & Control Director
Informed: Cluster Capital Projects VP Cluster Finance GM

14.9.4.13 PMM-014-PRO-090-088 Secure and Save the Project Site

In construction projects, once the withdrawal letter is issued, if the project site needs one
or more of:
a. Security actions.
b. Safety actions.
c. Preventive maintenance.
2. As per the recommendations in the withdrawn project works survey report, the Cluster
Capital Projects VP shall:
a. Request from HSSE department to take the immediate security guarding for the
project site and works.
i. If the Contractor does not take the safety action and not close the
excavations that are required in the withdraw letter, manage the provision
of the immediate safety actions for the project site and works from the
department resources.
ii. Request from the cluster Supply Chain department to assign a Contractor
to perform the preventive maintenance for the project site and works.

Responsible: Cluster Capital Projects VP

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Accountable: Cluster Capital Projects VP

Cluster HSSE Director
Consulted:
Business Unit Construction Director
Projects Execution VP
Cluster HSSE Director
Informed:
Projects Execution VP
14.9.4.14 PMM-014-PRO-090-090 Form Project Works Survey Committee

1. For construction projects and after withdraw letter issuance, the NWC Project Manager
shall request for forming a Project Works Survey Committee within 2 days from withdraw
letter issuance using (PMF-014-PRO-016 Withdrawn Project Works Survey Committee
Forming Request).
2. The Cluster Capital Projects VP, within 2 days using (PMF-014-PRO-016_03 Withdrawn
Project Works Survey Committee Forming Request.docx), shall form the Project Works
Survey Committee which, beside the NWC Project Manager, shall including at least
representatives from:
a. Cluster Projects department
b. Cluster O&M department
c. Cluster Asset Management department
d. Cluster HSSE department
e. Cluster Finance department
f. Supervision Consultant
g. Contractor
3. In case the Contractor did not nominate his representative, the NWC Project Manager shall
proceed in committee forming without the Contractor authorized representative.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Scheduling &
Consulted: Technical Services GM
Control Director
PMO GM
Scheduling & Control GM
Cluster Asset Management
Informed: Contractor
Director
Supervision Consultant
Cluster O&M Director
Cluster Finance GM
Cluster HSSE Director
14.9.4.15 PMM-014-PRO-090-093 Perform Survey on Actual Executed and Remaining Works

1. To perform this procedure, consider the policy 10.

2. The Committee shall perform survey on the following:
a. all executed and remaining works.
b. all material and equipment on site.
3. The committee shall assess the project materials and equipment that contractually to be
supplied and installed in project works (such as transformers, pumps, pipes, etc.) to decide
whether it shall be included in or excluded from the custody.
During assessing the inclusion/exclusion of the contractual material and equipment,
consider the following factors besides any factor the committee agrees upon:
a. the requirements of transporting and storing during the retendering period.
b. the required duration to re-supply the materials and equipment.
4. The committee shall develop a formal report (PMF-014-PRO-028_03 Withdrawn Project
Works Survey Report.docx) with signatures of all representatives. If Contractor authorized

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representative doesn’t attend at the determined date, he shall not have a right to object the
committee report.
This procedure shall be completed within 15 calendar days.

Responsible: Project Works Survey Committee

Accountable: Cluster Capital Projects VP

Cluster Asset Management Director Contractor
Consulted:
Cluster O&M Director Supervision Consultant
Cluster HSSE Director Cluster Supply Chain Manager
Informed: Cluster Capital Projects VP

14.9.4.16 PMM-014-PRO-090-096 Approve the Project Works Survey Committee Report

1. Approve the report within 2 days (This approval shall be made maximum 21 days from the
withdraw letter issuance date).
2. Once the committee report is approved, request for transporting and storing the materials
and equipment that the committee decided to include in NWC custody in NWC warehouses
(if any) or rental warehouses that has the required storing conditions.

Responsible: Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Project Works Survey Committee Cluster O&M Director
Consulted:
NWC Project Manager Cluster Supply Chain Manager
Cluster Asset Management Director Cluster HSSE Director
Project Works Survey Committee Cluster O&M Director
Informed:
Cluster Asset Management Director Cluster Supply Chain Manager
14.9.4.17 PMM-014-PRO-090-100 Request for Assigning Another Design Consultant /
Contractor to Complete the Contract Scope

1. Prepare request for proposal package (RFP) for the remaining work within maximum 42
calendar days from the withdrawal letter issuance date as per process (PMM-014-PRO-030
Prepare Tender Documents). The quantities in the BoQ in this RFP shall be the same
quantities in the Project Works Survey Committee Report.
2. The Supply Chain VP shall, within maximum 180 calendar days from the withdrawal letter
issuance date, assign another Contractor (and issue PO) for completion of the remaining
work via one of the following methods in sequence:
a. Negotiate with project bidders consequently to complete the project at the contract
prices.
b. Negotiate with project bidders consequently to complete the project at current
market prices.
c. Award to a Contractor through direct purchase process at current market prices to
complete the project.
d. Tender to Select New Contractor to complete the project.
Supply Chain VP / Cluster Supply
Responsible: Cluster Capital Projects VP
Chain Manager (as per authority)
Accountable: Cluster Capital Projects VP
Cluster Supply Chain Manager
Consulted: Supply Chain VP
Cluster Asset Management Director
Legal Affairs GM
Cluster O&M Director
Supply Chain VP
Informed: Legal Affairs GM
Cluster Asset Management Director
Technical Services GM
Cluster O&M Director

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14.10 PMM-014-PRO-100 Close Contract

14.10.1 Objective
The objective of this process is to verify that the contract has been properly implemented with all the
administrative activities from contract signing to contract closure.
The verification includes ensuring that the followings have performed as per the contract:
● every contractual deliverable is delivered and every requirement have been met.
● all open claims had an agreement and closed.
● all project records are updated to reflect the final results and statuses.
This process also Ensures the archiving of all project documents and records for future use.
14.10.2 Policies
Policies for this process are:
1. For projects the include more than one contract, this process should be repeated for each
Contract.
2. This process should be performed once the contract reaches its contractual end regardless
the current stage.
3. The closure of a contract requires all the contract documentation to be collected, indexed,
filed and archived.
4. Contract Entitlement for Closeout should be based on formal information on the final project
schedule and scope, quality and cost performance, variations documentation, invoicing
records and inspection and audit records.
5. Early termination is a special case of contract closure which may result from reasons such
as:
i. Mutual agreement between the two parties
ii. For convenience of the employer if it is so provided in the Contract
6. A contract cannot go closed as there is an open Variation Request.
7. In the case of unresolved claims, the contract is closed after:
i. an accrual is made on the project account until the claim is resolved to cater for any
potential costs.
OR
ii. an accrual is made in a special holding account for unresolved and subject to litigation
claims.
NWC Project Manager is responsible for requesting for these solutions.
8. In case of any conflict between authorities stated in this manual and authorities in the latest
approved NWC Delegation of Authority, the latest approved NWC Delegation of Authority
shall supersede.

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14.10.3 Workflow Chart

Figure 14-11 PMM-016-PRO-100 Close Contract Workflow Chart

14.10.4 Procedures
14.10.4.1 PMM-014-PRO-100-010 Check the Contract Entitlement for Closeout

1. Using the (PMF-014-PRO-032_03 Contract Closeout Checklist.docx), check the contract

entitlement for closeout.
This procedure is be completed within 7 days form the formal final acceptance of the
contract deliverables.

Responsible: NWC Project Manager Cluster Contracts Administration Manager

Accountable: NWC Project Manager

Technical Services
Consulted:
Consultant / Design
Consultant / Supervision
Consultant / Contractor Cluster Strategic Planning Director
NWC Project Manager Cluster Supply Chain Manager
Business Unit Construction Cluster Capital Projects VP
Director Cluster Finance GM
Cluster Technical Services Cluster Asset Management Director
Director Cluster O&M Director
Cluster Scheduling &
Control Director
Cluster PMO Director
Informed: NWC Project Manager

14.10.4.2 PMM-014-PRO-100-020 Issue the Contract Closeout Notification

1. If the contract found entitled for closeout:

a. the NWC Project Manager shall formally, in 2 days, shall:
i. Close the contract on the Capital Projects PMS.
ii. Request from Cluster Capital Projects VP to issue a contract closeout
notification to:
1. Cluster Supply Chain Manager
2. Cluster Finance GM
3. Cluster Asset Management Director
4. Cluster O&M Director

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b. The Cluster Capital Projects VP shall formally, in 2 days, issue the contract
closeout notification.
2. If the contract found NOT entitled for closeout, the NWC Project Manager shall resolve the
reasons that prohibited the entitlements then repeat the whole process.

Responsible: NWC Project Manager Cluster Capital Projects VP

Accountable: Cluster Capital Projects VP

Cluster Capital Projects VP
Consulted: Supervision Consultant
Cluster Contracts Administration
Cluster Supply Chain Manager
Manager
Cluster Capital Projects VP
Informed: Cluster Asset Management Director
Cluster Supply Chain Manager
Cluster O&M Director
Cluster Finance GM
14.11 PMM-014-PRO-110 Material Technical Study for Incorporation in NWC
Approved Material List
14.11.1 Objective
The objective of this process is to enable selecting most appropriate materials to be added to the
NWC approved materials list to ultimately enrich the list.
14.11.2 Policies
Policies for this process are:
1. Accepting a vendor in the NWC approved vendor list does not considered an acceptance
for all of his products.
2. The technical study for incorporation in the approved material list of:
i. Related core business materials (such as pipes, pumps, valves, etc.) is by the
Technical Services Department.
ii. Not related core business materials (such as screws, asphalt, uniforms, etc.) is by the
NWC project management team and the Supervision Consultant.
14.11.3 Workflow Chart
Figure 14-12 PMM-016-PRO-110 Material Technical Study for Incorporation in NWC Approved Material List
Workflow Chart

14.11.4 Procedures
14.11.4.1 PMM-014-PRO-110-010 Material Technical Study for Incorporation in NWC
Approved Material List

1. Receive the material technical study request from the Vendor Relationships Management
Department. for incorporation in NWC approved material list for:
a. a new material
b. a renew material
c. a one use new material
2. If the material is:

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a. Related to the smart operation systems, solicit a technical material study for the
product from Smart Operation Department.
b. Not related to the smart operation systems, conduct a material technical study
using the (PMF-014-PRO-058 Material Technical Study Guidelines) and develop a
technical study.
3. Based on the study, develop a decision report.
4. Send the study and the report to the Vendor Relationships Management Department.
Material Approval & Laboratories
Responsible:
Accreditation Section Head
Accountable: Water & Wastewater Technologies Director

Consulted: Compliance & Vendor Relationships

Technical Services GM
Informed: Smart Operation Manager
Compliance & Vendor Relationships

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Section 15 - Project Health, Safety and

Environmental Management

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15 Project Health, Safety and Environmental Management

The subject of this particular section of the Project Management Manual (PMM) is Project Health, Safety &
Environmental Management.
The high-level process map for the Project Health, Safety & Environmental Management is illustrated below
in Figure 15-1:

Figure 15-1 High-Level Process Map for Project Health, Safety & Environmental Management

15.1 PMM-017-HSE-010 Plan Project HSE Management

15.1.1 Objective
The objective of this process is to plan for proactive HSE management on every NWC capital project
to ensure the following prevention of:
● accidents and injury to project team members, future operators of the built asset and public.
● occupational health problems.
● negative environmental impacts from construction, operation and disposal of the built asset.
15.1.2 Policies
Policies for this process are:
1. The HSE planning responsibility through the project lifecycle passes:
i. from the NWC Project Manager who transmits the strategic HSE requirements at
project level.
ii. to the second parties design consultant, supervision consultant and contractor who
develop and deploy tactical plans to ensure that the strategic HSE requirements are
met in full.

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2. The key reference to all HSE processes and procedures in PMM is the latest approved
NWC HSSE Policies and Regulations. In case of conflict, the HSSE policies and procedures
supersede.
3. The NWC Projects Cluster fully supports the high standards and HSE policies of the
business. There are no exceptional circumstances where the HSE policies may be ignored
at the level of a Cluster, program or individual project.
4. Regarding all HSE aspects, all Projects stakeholders must act safely and proactively avoid
HSE violations and accidents. Prevention is always before recovery or cure.
5. Each project must have a separate section for HSE management in the NWC Project
Management Plan, created by the NWC Project Manager and Business Unit Safety Section
Head and used as the guiding document for internal and external team throughout the
project.
6. The approved NWC Project Management Plan, including the HSE Management Plan
Section, must be included in the tender document when NWC is procuring a second party
services and products in support of project execution.
7. Second Parties must create their own management plans (design and/or construction)
including HSE Management Plan Section for the project. These management plans must
comply with the HSE management requirements defined in the NWC Project Management
Plan and must be approved by NWC during mobilization period.
8. The HSE Management Plans in PMPs of NWC, Design and Construction must be kept up
to date throughout the project life cycle.
9. Second party HSE Management Plans must include clear policies and procedures for staff
induction and on-the-job training. In addition, second party HSE Management Plans shall
include or refer to the related guidelines/procedures included in appendices table as
applicable to the scope of work.
10. Planning for assessments of health and safety risk and environmental impact must be
specific and unique to the location, activities and characteristics of the project. It must not
be generic or copy-and-paste from previous projects, otherwise it will be rejected.
11. All activities in the project shall be in full alignment with the general requirements for all
Safety and Fire Protection (SAF) Directives from the High Commission of Industrial Security
(HCIS) which includes the submission of SAF submittals. These requirements to be
collected from NWC HSSE department.

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15.1.3 Workflow Chart

Figure 15-2 PMM-017-HSE-010 Plan Project HSE Management Workflow Chart

15.1.4 Procedures
15.1.4.1 PMM-017-HSE-010-010 Develop the Project HSE Management Plan Section of
NWC Project Management Plan

1. The NWC Project Manager shall use (PMF-005-INT-001 NWC Project Management Plan)
to develop the NWC Project Management Plan which includes a dedicated section for HSE
management. Business Unit Safety Section Head shall develop this section in PMP.
2. Consider approved NWC HSSE Policies and Regulation when creating NWC HSE
Management Plan.
3. Business Unit Safety Section Head shall consult Cluster HSSE Director as follows:
a. Provide him by the draft Project HSE Management Plan.
b. Obtain his feedback.
c. Discusses with him about the feedback until agreeing on all feedback items.
d. Incorporate the agreed feedback items.
4. Update the Project HSE Section throughout the lifecycle with the approved changes using
procedure (PMM-007-INT-020-040 Update the NWC Project Management Plan).

Responsible: NWC Project Manager Business Unit Safety Section Head

Accountable: NWC Project Manager

Cluster HSSE Director
Consulted: HSSE GM
Business Unit Construction Director
Cluster PMO Director HSSE GM
Informed:
Cluster Capital Projects VP Cluster PMO HSSE

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15.1.4.2 PMM-017-HSE-010-020 Approve the Project HSE Management Plan Section of

NWC Project Management Plan

1. Review the HSE Management Plan Section of NWC Project Management Plan.
2. Document and track the results of the reviews till they are closed out satisfactorily.
3. Approve the submitted Project HSE Management Plan Section.

Responsible: Cluster HSSE Director

Accountable: Cluster Capital Projects VP

Business Unit Safety Section Head
Consulted: Cluster Capital Projects VP
NWC Project Manager
HSSE GM
Business Unit Construction Director
Business Unit Safety Section Head Cluster Capital Projects VP
Informed:
NWC Project Manager HSSE GM
15.1.4.3 PMM-017-HSE-010-040 Develop Project HSE Management Plan Section in the
Design PMP

1. Develop Project HSE Management Plan Section in the Design Project Management Plan
using (PMF-005-INT-002 Design Project Management Plan).
2. Ensure that the Project HSE Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project HSE Management Plan Section in the
NWC Project Management Plan.
3. The Design HSE Management Plan shall strictly be in alignment with latest approved
version of (00_BS01_FM_022.01 HSSE Requirements in Contracts) which the Design
Consultant is responsible to fulfill during the Design Stage.
4. Consult with NWC Project Manager and Cluster Technical Services Director about the
development of the Project HSE Management Plan Section.
5. Include the Project HSE Management Plan Section in the Project Design Project
Management Plan to be approved as part of the Project Design Project Management Plan.

Responsible: Design Consultant

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster HSSE Director
Cluster Technical Services Director
Informed: NWC Project Manager

15.1.4.4 PMM-017-HSE-010-060 Develop Project HSE Management Plan Section in the

Construction / “Design & Construction” PMP

1. Develop Project HSE Management Plan Section in the:

a. Design & Construction Project Management Plan using (PMF-005-INT-003 Design
& Construction Management Plan).
b. Construction Project Management Plan using (PMF-005-INT-004 Construction
Project Management Plan).
2. Ensure that the Project HSE Management Plan Section in the Project Design Project
Management Plan is in alignment with the Project HSE Management Plan Section in the
NWC Project Management Plan.
3. The Construction HSE Management Plan shall strictly be in alignment with the following
which the Contractor is responsible to fulfill during the stages from construction to closeout.
a. (00_BS01_FM_022.01 HSSE Requirements of Contracts)
b. (PMF-015-HSE-232 Construction HSE Management Plan Guidelines).

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4. Consult with NWC Project Manager and Supervision Consultant about the development of
the Project HSE Management Plan Section.
5. Include the Project HSE Management Plan Section in the Project Construction Project
Management Plan to be approved as part of the Project Construction Project Management
Plan.

Responsible: Contractor

Accountable: NWC Project Manager

NWC Project Manager
Consulted: Cluster HSSE Director
Supervision Consultant
Informed: NWC Project Manager Cluster PMO HSSE

15.2 PMM-017-HSE-015 Environmental Impact Assessment

15.2.1 Objective
The objective of this process is to ensure the alignment of NWC Capital project to governmental
Environmental regulations; to effectively participate in environment protection.
15.2.2 Policies
Policies for this process are:
1. During all project stages, the capital projects that include:
i. environmental impact, shall consider the regulations of the National Center for
Environmental Compliance (NCEC).
ii. waste management (segregation, handling, transportation and disposal), shall
consider the regulations of the National Center for Waste Management (MWAN).
This consideration includes issuing required licenses.
2. For landfill projects a Landfill Construction License should be issued from the National
Center for Waste Management (MWAN):
i. after obtaining the environmental construction permit.
ii. before the contractor starts the project execution (before project site handover).
3. Environmental Impact Assessments (EIA) study and report shall be created as per National
Center for Environmental Compliance (NCEC) requirements. Every Water and Wastewater
project shall have an EIA as per NCEC criteria.
4. EIA report must be reviewed by NWC Environmental department at HQ before submitted to
NCEC.
5. EIA study and report should be approved by NCEC for the project.
6. For Treated Sewage Effluent (TSE) discharges to the environment a permit should be
obtained from NCEC.
7. The approved EIA shall be binding to the contractor and the project works. The project works
should be executed as per NCEC requirements. This requires timely consultation with
Environmental planning and studies department.

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15.2.3 Workflow Chart

Figure 15-3 PMM-017-HSE-015 Environmental Impact Assessment Workflow Chart

15.2.4 Procedures
15.2.4.1 PMM-017-HSE-015-010 Prepare Environmental Impact Assessment

1. Perform Environmental Impact Assessment study scope, using (PMF-015-HSE-231

Environmental Impact Assessment Guidelines), by Environmental Consultant that
approved by the National Center for Environmental Compliance (NCEC).
2. The Environmental Consultant shall submit the Environmental Impact Assessment study
to Cluster Technical Services Director.

Responsible: Environmental Consultant

Accountable: Cluster Technical Services Director

Environmental Planning & Studies
Consulted: Cluster Technical Services Director
Director
Cluster Environmental Manager
NWC Project Manager
Cluster Environmental Compliance
Informed:
Manager Environmental GM
Cluster Technical Services Director NWC Project Manager
Environmental Planning & Studies Cluster PMO HSSE
Director
15.2.4.2 PMM-017-HSE-015-020 Obtain NCEC Approval on Environmental Impact
Assessment

1. Cluster Technical Services Director shall send the EIA study to the Cluster Environmental
Manager for review and obtaining confirmation from the Environmental Planning & Studies
Director before submitting to NCEC.
2. After the Environmental Consultant receives the confirmed EIA study by the Cluster
Environmental Manager, the Environmental Consultant shall obtain approval from the
National Center for Environmental Compliance (NCEC) prior to Design and land acquisition.
3. The Environmental Consultant shall:
a. receive the approved EIA study from the NCEC.
b. obtain environmental construction permit from the NCEC.
c. submit the approved EIA and Environmental Permit to the Cluster Technical
Services Director to be:
i. included in the Project RFP during tendering.
ii. provided to the NWC Project Manager before the contractor starts the
project execution (before project site handover).

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Responsible: Cluster Technical Services Director Environmental Consultant

Accountable: Cluster Technical Services Director

Cluster Technical Services Director
Consulted: Environmental GM
Environmental Planning & Studies
NWC Project Manager
Director
Cluster Environmental Manager
Informed:
Cluster Technical Services Director Environmental GM
Environmental Planning & Studies NWC Project Manager
Director
15.3 PMM-017-HSE-020 HSE Assurance
15.3.1 Objective
The objective of this process is to ensure the appropriate application of the:
● HSE measures in the approved permits to work.
● agreed corrective actions and preventive actions for any monitored unsafe performance.
to ensure meeting the NWC HSE requirements to ultimately avoid any fatal, injury, material loss,
equipment defect or time loss.
15.3.2 Policies
Policies for this process are:
1. Assurance must be provided, through objective evidence, that the planned HSE-related
activities and control measures have been properly integrated into the other project
activities, and that their execution has been effective and efficient.
2. Results of the HSE-related activities and control measures must be evaluated on a weekly
and monthly basis and formally reported in the Construction monthly project progress report.
3. Second Party HSE Management Plans must be supported by competent Job Safety
Analysis (JSA) and method statements.
4. Work activities by Second Parties must only be carried out if there are associated HSE
assurance documents in place, such as Job Safety Analysis, impact assessments, method
statements, construction safety guidelines, induction training records, toolbox training
records and, for all works, an approved permit to work specific for construction activities
identified in the method statement.
5. PTW submissions and approval are mandatory to start any work activity at site. The NWC
Project Manager and Supervision Consultant must ensure that the Contractor does not
commence any work until the planned work activities have been assessed from a quality
perspective, supported by the HSE perspective, and have been granted an approved NWC
Permit to Work.
6. Every PTW must be issued and received by qualified and trained individuals.
7. Training workers in the importance of method statements and how method statements must
be followed at all times for all activities, is a must without exceptions. This principle must be
covered in the workers’ induction training and subsequent toolbox style training must be
given to cover each approved method statement, using the supporting HSE guidelines from
the NWC library and highlighting the specific steps in the method statement, which have
been added as mitigation against identified HSE risks and impacts.
8. All activities in the project shall be in full alignment with the general requirements for all
Safety and Fire Protection (SAF) Directives from the High Commission of Industrial Security
(HCIS) which includes the submission of SAF submittals. These requirements to be
collected from NWC HSSE department.
9. NWC reserves the right to stop any work by any party on the grounds of unsatisfactory HSE
performance.

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15.3.3 Workflow Chart

Figure 15-4 PMM-017-HSE-020 HSE Assurance Workflow Chart

15.3.4 Procedures
15.3.4.1 PMM-017-HSE-020-010 Develop and Submit the HSE Related Design Studies in
Design Packages

1. Develop the design packages including the following as a minimum, unless there are other
studies that are contractually required to be developed:
a. Hazard and Operability (HAZOP) study.
b. Process Hazard Analysis (PHA) (as per HCIS).
c. Security Risk Analysis (SRA) (as per HCIS).
d. Failure Mode, Effect and Criticality Analysis (FMECA) study.
2. The number and frequency of HSE related studies shall be identified as per design project
contract.
3. Each HSE related design study must be submitted as an integral package with the
appropriate design deliverables, such as drawings, calculations, etc.

Responsible: Design Consultant

Accountable: NWC Project Manager

Cluster Technical Services Director Business Unit Safety Section Head
Consulted:
Cluster HSSE Director Cluster Risk Section Head
NWC Project Manager
Informed: Business Unit Safety Section Head
Cluster Technical Services Director
Cluster Risk Section Head
Cluster HSSE Director

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15.3.4.2 PMM-017-HSE-020-020 Review the HSE Aspects in Submitted Design Review

Packages and Approve the HSE Related Design Studies

1. Review the HSE Aspects in Submitted Design Review Packages.

2. Consult Cluster HSSE Director:
a. obtain his feedback.
b. discusses with him about the feedback until agreeing on all feedback items.
c. incorporate the agreed feedback items.
3. Review the implementation of comments on the previous reviewed packages.
4. HSE-related design study reports must be approved with the associated design information
(drawings, calculations, etc.)
5. The review of each design deliverable package, including the associated HSE- related
study reports, is led by the Cluster Technical Services Director, assisted by the Business
Unit Safety Section Head, as part of the review and approval activity
6. Include all HSE-related design study documentation comments and suggestions for
improvements in the design review package response.

Responsible: Cluster Technical Services Director Business Unit Safety Section Head

Accountable: NWC Project Manager

Design Consultant
Consulted: Cluster Risk Section Head
Cluster HSSE Director
Informed: NWC Project Manager Technical Services GM

15.3.4.3 PMM-017-HSE-020-030 Perform Job Safety Analysis for a PTW

1. Use (PMF-015-HSE-006 HSE Assessment Checklist for Method Statement) in HSE

assessment.
2. Use (PMF-015-HSE-007 HSE Observations Register) as an input as this includes risks
observed from applying previous method statements.
3. The Job Safety Analysis for a Method Statement is an attachment to the Permit to Work
(PTW).
4. The rationale is as follows for a Job Safety Analysis to support a method statement:
a. Method statements must describe the activities in terms of the execution
methodology, materials which will be consumed, the tools and equipment to be
used, the personal protective equipment (PPE) required for the activities, and an
accompanying Job Safety Analysis.
b. The Job Safety Analysis must show the HSE corrective and preventive actions as
part of the method statement, to minimize and control the identified risks if they
cannot be entirely eliminated.
c. The Job Safety Analysis is further supported by the attachment of relevant HSE
forms and guidelines provided by NWC. If a form is not covered in NWC forms set
Contractor shall develop the form and obtain NWC approval.

Responsible: Contractor

Accountable: NWC Project Manager

Consulted: Supervision Consultant

Informed: Supervision Consultant NWC Project Manager

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15.3.4.4 PMM-017-HSE-020-040 Approve the Submitted Job Safety Analysis

1. The Job Safety Analysis must be approved before the method statement approval.
2. The review of each Job Safety Analysis, including the associated attachments, is performed
by the Supervision Consultant.

Responsible: Supervision Consultant

Accountable: NWC Project Manager

Consulted: NWC Project Manager Business Unit Safety Section Head

Contractor
Informed: Business Unit Safety Section Head
NWC Project Manager
15.3.4.5 PMM-017-HSE-020-050 Prepare and Submit a Permit to Work for Project Works

1. Use (PMF-015-HSE-005 Permit to Work Form) for every project work in the project defined
in the approved Construction Project Management Plan.
2. Develop and attach the following documents to the draft PTW. All must be approved:
a. Method Statement
b. ITP(s)
c. Job Safety Analysis
d. Shop Drawings
e. Material Approval
f. Quality forms and guidelines
g. HSE forms and guidelines
h. HSE Assessment Checklist
i. Municipality PTW (if required)
j. Traffic PTW (if required)
3. Consider the HSE procedures that attached to the HSE section in identifying HSE
measures in the PTW. It can be included in the PTW or attached to it.
4. Discuss the set of documents with the Supervision Consultant prior to formal submission.
5. Submit PTW package for approval to the Supervision Consultant.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted: Business Unit Safety Section Head
Cluster QA Section Head
NWC Project Manager Cluster QA Section Head
Informed:
Business Unit Safety Section Head Supervision Consultant
15.3.4.6 PMM-017-HSE-020-060 Approve the Submitted PTW

1. The PTW must be approved with the associated attachments.

2. The review of each PTW, including the associated attachments, is led by the Supervision
Consultant, with consultation by the Cluster QA Section Head, Business Unit Safety Section
Head, as part of the review and approval activity.
3. Update the PTW log (PMF-015-HSE-233 Permit To Work Log).

Responsible: Supervision Consultant

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Accountable: NWC Project Manager

NWC Project Manager Cluster QA Section Head
Consulted:
Business Unit Construction Director Business Unit Safety Section Head
Informed: Contractor

15.3.4.7 PMM-017-HSE-020-070 Request Closing the PTW

1. For any work carried out under an NWC PTW, the contractor in coordination with the
Supervision Consultant shall formally request for closing of the PTW when:
a. The work successfully completed.
b. The contractor plans not to continue this work.
2. The closure request shall be recorded on the PTW Form itself and be submitted for closure.
3. The PTW is formally considered closed without a closing request if the PTW expires.

Responsible: Contractor

Accountable: NWC Project Manager

Supervision Consultant
Consulted: Business Unit Safety Section Head
Cluster QA Section Head
Informed: Supervision Consultant

15.3.4.8 PMM-017-HSE-020-080 Agree Closure of the PTW

1. The Supervision Consultant shall schedule a visit to the construction site, to close the
permit in a professional manner.
2. The Supervision Consultant shall ensure that all inspection and testing have been carried
out as per approved ITP.
3. If the closure request is denied, then Supervision Consultant shall inform the Contractor
verbally during the visit and write the reasons on the PTW form.
4. If the closure request is accepted, then Supervision Consultant shall inform the Contractor
verbally during the visit and record the closure on PTW form.
5. In either case, Supervision Consultant shall return the updated PTW form to the Contractor
for filing.
6. Update the PTW log (PMF-015-HSE-233 Permit To Work Log).

Responsible: Supervision Consultant

Accountable: NWC Project Manager

Contractor
Consulted: Business Unit Safety Section Head
Cluster QA Section Head
Informed: NWC Project Manager Contractor

15.3.4.9 PMM-017-HSE-020-090 Perform HSE Inspections and Audits and Recommend

Penalties

1. The Supervision Consultant and/or Business Unit Safety Engineer shall perform periodic
and occasional inspections and audits for the processes that performed at the construction
site to ensure the appropriate application of the:
a. HSE measures in the approved permits to work.
b. agreed corrective actions and preventive actions for any monitored unsafe
performance.

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2. They shall use the audit checklists (00_BS01_FM_001.01 Audit of Contractor Safety
Performance) or any other audit check list that jointly approved by the NWC Project
manager and the Business Unit Safety Section Head.
3. If any HSE violation found, the Supervision Consultant and/or Business Unit Safety
Engineer shall use the following forms, as required, to formally inform the Contractor by the
HSE violation:
a. (PMF-015-HSE-012 HSE Observation Record). The observation record shall be
managed as per the procedures (PMM-015-HSE-020-100 Address the HSE
Violation).
b. (PMF-010-QUA-123 Non-Conformance Report NCR (General)). The NCR shall be
managed as per the procedure (PMM-012-COM-100 Distribute Non-Conformance
Report (NCR)).
4. If an HSE violation found under a provision in (00_BS01_GD_002.01 Fines and Penalties
of Contractor HSE Violations):
a. the Supervision Consultant and/or Business Unit Safety Engineer shall:
i. recommend penalties on Contractor as per the provision using the form
(00_BS01_FM_026.01 HSSE Contractors Violation Form for Fine Report).
ii. attach the recommendation to the developed (PMF-017-HSE-012 HSE
Observation Record) and/or (PMF-010-QUA-123 Non-Conformance
Report NCR (General)).
iii. raise them to NWC Project Manager for further processing.
b. The NWC Project Manager shall send the violation documents to the Business Unit
Safety Section Head for endorsement.
c. The Business Unit Safety Section Head shall endorse the form
(00_BS01_FM_026.01 HSSE Contractors Violation Form for Fine Report) then
send the violation documents to the Cluster HSSE department for further
processing.
d. After receiving an approval notification from Cluster HSSE department, NWC
Project Manager shall include the HSE penalty on the next monthly invoice.
5. If findings of HSE inspection / audit included an HSE violation that requires to stop an
ongoing work activity:
a. Direct the contractor to stop the work using the form (00_BS01_FM_011.01 Stop
Work Activities by HSSE for HSE Issue).
b. Raise a copy to NWC Project Manager for further processing.
NWC Project Manager Business Unit Safety Engineer
Responsible:
Supervision Consultant Business Unit Safety Section Head
Accountable: NWC Project Manager

Consulted: Contractor Cluster HSSE Director

NWC Project Manager
Informed: Cluster HSSE Director
Contractor
15.3.4.10 PMM-017-HSE-020-0100 Address the HSE Violation

1. The Contractor shall:

a. Review and evaluate the observation record / audit report and its attached
documents.
b. Perform the mentioned corrective and preventive .
c. Individually, request for inspecting the violation address.
2. The supervision consultant shall:
a. inspect the violation address.

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b. if the address found satisfactory, provide the contractor with an acceptance

evidence.
c. The contractor shall use the received violation form to request for closing the
observation record / audit report. This request should be supported by the
acceptance evidence.
3. The (PMF-010-QUA-007 Observation Records Register (General)) shall be continuously
updated.
Contractor
Responsible: NWC Project Manager
Supervision Consultant
Accountable: NWC Project Manager
Contractor
Consulted: NWC Project Manager
Supervision Consultant
Contractor
Informed: NWC Project Manager
Supervision Consultant
15.3.4.11 PMM-017-HSE-020-110 Assess the Contractor HSE Performance and Develop the
Monthly HSE Report

This procedure shall be performed on monthly basis.

1. Regarding the Contractor HSE Performance:
a. Supervision Consultant shall evaluate the contractor’s HSE performance and
report it using the form (00_BS01_FM_025.01 Periodic Evaluation of Contractor
HSSE Performance).
b. The supervision consultant shall submit the HSE evaluation report to NWC Project
Manager who shall forward a copy to the Cluster HSSE Director.
2. Regarding the monthly HSE report:
a. The contractor shall develop the monthly HSE report using the form (PMF-015-
HSE-014 Monthly HSE Report) and submit it to the Supervision consultant and
NWC Project Manager (as attachment to the monthly progress report)
b. The supervision consultant shall review contractor’s monthly HSE report and
feedback about it on the executive summary to the construction monthly report.
c. The NWC Project Manager shall send a copy of the Monthly HSE Report and the
feedback from the supervision consultant to the Business Unit Safety Section Head
for information.
Contractor
Responsible: NWC Project Manager
Supervision Consultant
Accountable: NWC Project Manager
Contractor
Consulted: Business Unit Safety Section Head
NWC Project Manager
NWC Project Manager
Informed: Cluster HSSE Director
Business Unit Safety Section Head
15.3.4.12 PMM-017-HSE-020-120 Capture the HSE Lessons Learned

1. Review HSE-related issues and document to identify lessons learned.

2. The HSE related lessons learned shall be documented and registered in the (PMF-005-
INT-020 Lessons Learned Register). Refer to (PMM-005-INT-040 Manage Project
Knowledge).

Responsible: NWC Project Manager

Accountable: Business Unit Construction Director

Consulted: Business Unit Safety Section Head Continuous Improvement Manager

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Informed: HSSE GM Continuous Improvement Manager

15.4 PMM-017-HSE-030 HSE Control

15.4.1 Objective
The objective of this process is to ensure the appropriate application of the corrective actions,
preventive actions and defect repair for any fatal, injury, material loss, equipment defect or time loss
that happens due to unsafe performance.
15.4.2 Policies
Policies for this process are:
1. All construction activities in projects must have an approved permit to work without
exception.
2. Stopped works be resumed only upon approval by NWC of appropriate corrective and
preventive actions proposed by the party and accepted by NWC.
3. Any delays or additional costs incurred by the party due to their proven unsatisfactory HSE
management performance will not be accepted as grounds for a claim and may be counter-
claimed (i.e., penalized) by NWC of there is consequential loss as a result.
4. All accidents and incidents must be reported and registered (no matter how apparently
minor) and must be investigated to a meaningful and satisfactory conclusion.
5. Monthly HSE Report shall be submitted monthly by Contractor and verified by Supervision
Consultant.
15.4.3 Workflow Chart
Figure 15-5 PMM-017-HSE-030 HSE Control Workflow Chart

15.4.4 Procedures
15.4.4.1 PMM-017-HSE-030-010 Investigate the Reported Incidents and Accidents

1. Report all accidents, incidents and near misses on (00_BS01_FM_010.01 Accident

Reporting Form) whenever happens.
2. Register the reported incidents, accidents and near misses in (PMF-015-HSE-009 Accident
Incident Register).
3. Rigorously investigate every reported incidents and accidents using (00_HSE_FM_009.01
HSE Accident Investigation Report).

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4. For the lessons learned, the Supervision Consultant shall make an internal investigation
report using (PMF-015-HSE-010 Internal HSE Accident Investigation Report for Lessons
Learned). Attach to the report the documents that stated in the report or any other required
documents as applicable.
NWC Project Manager Business Unit Safety Section Head
Responsible:
Supervision Consultant Contractor / Design Consultant
Accountable: NWC Project Manager
NWC Capital Projects Team
Consulted:
Supervision Consultant / Cluster Contractor / Design Consultant
Technical Services Team
Business Unit Construction Director /
Informed: NWC Project Manager
Cluster Technical Services Director
Cluster HSSE Director
Cluster Capital Projects VP
15.4.4.2 PMM-017-HSE-030-020 Perform HSE Inspections and Audits and Recommend
Penalties

1. The Supervision Consultant and/or Business Unit Safety Engineer shall carry out periodic
and occasional inspections and audits to ensure there is no fatal, injury, material loss,
equipment defect or time loss that happened at project site due to unsafe performance.
They shall use the audit checklists (00_BS01_FM_001.01 Audit of Contractor Safety
Performance) or any other audit check list that jointly approved by the NWC Project
manager and the Business Unit Safety Section Head.
2. If any HSE violation found, the Supervision Consultant and/or Business Unit Safety
Engineer shall use the following forms, as required, to formally inform the contractor /
design consultant by the HSE violation:
a. (PMF-015-HSE-012 HSE Observation Record). The observation record shall be
managed as per the procedures (PMM-017-HSE-020-075 Address the HSE
Violation).
b. (PMF-010-QUA-123 Non-Conformance Report NCR (General)). The NCR shall be
managed as per the procedure (PMM-014-COM-100 Distribute Non-Conformance
Report (NCR)).
3. If an HSE violation found under a provision in (00_BS01_GD_002.01 Fines and Penalties
of Contractor HSE Violations):
a. the Supervision Consultant and/or Business Unit Safety Engineer shall:
i. recommend penalties on the contractor / design consultant as per the
provision using the form (00_BS01_FM_026.01 HSSE Contractors
Violation Form for Fine Report).
ii. attach the recommendation to the developed (PMF-015-HSE-012 HSE
Observation Record) and/or (PMF-010-QUA-123 Non-Conformance
Report NCR (General)).
iii. raise them to NWC Project Manager for further processing.
b. The NWC Project Manager shall send the violation documents for endorsement to
the Business Unit Safety Section Head.
c. The Business Unit Safety Section Head shall endorse the form
(00_BS01_FM_026.01 HSSE Contractors Violation Form for Fine Report) then
send the violation documents to the cluster HSSE department for further
processing.
d. After receiving an approval notification from the cluster HSSE department, NWC
Project Manager shall include the HSE penalty on the next monthly invoice.
4. If findings of HSE inspection/audit included an HSE violation that requires to stop an
ongoing work activity:
a. Direct the Design Consultant / Contractor to stop the work using the form
(00_BS01_FM_011.01 Stop Work Activities by HSSE for HSE Issue).

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b. Raise a copy to NWC Project Manager for further processing.

NWC Project Manager Business Unit Safety Engineer
Responsible:
Supervision Consultant Business Unit Safety Section Head
Accountable: NWC Project Manager

Consulted: Contractor / Design Consultant Cluster HSSE Director

Cluster HSSE Director
Informed: NWC Project Manager
Cluster Technical Services Director
Contractor / Design Consultant
(for design projects)
15.4.4.1 PMM-017-HSE-030-030 Address the HSE Violation

1. The contractor / design consultant shall:

a. Review and evaluate the observation record / audit report and its attached
documents.
b. Perform the mentioned corrective and preventive.
c. Individually, request for inspecting the violation address.
2. The supervision consultant (in construction projects) / NWC Project Manager (in design
projects) shall:
a. inspect the violation address.
b. if the address found satisfactory, provide the contractor with an acceptance
evidence.
3. The contractor shall use the received violation form to request for closing the observation
record / audit report. This request should be supported by the acceptance evidence.
4. The (PMF-010-QUA-007 Observation Records Register (General)) shall be continuously
updated.
Supervision Consultant / NWC Project
Responsible: Contractor / Design Consultant
Manager
Accountable: NWC Project Manager
Contractor
Consulted: NWC Project Manager
Supervision Consultant
Contractor
Informed: NWC Project Manager
Supervision Consultant
15.4.4.2 PMM-017-HSE-030-040 Address the HSE Issues in Regular Design/Construction
Progress Meetings

1. Address the HSE issues in all regular site meetings, as well as regular progress reports by
the Contractor. The addressing must:
a. be collaborative between NWC and second parties.
b. consider the construction and operating periods.
2. Clearly identify the addressing actions of the HSE issues in the weekly and monthly MOMs.
NWC Project Manager
Responsible: Contractor / Design Consultant
Supervision Consultant
Accountable: NWC Project Manager

Consulted: NWC Project Manager Business Unit Safety Section Head

Informed: NWC Project Manager

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 References

References

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 References

References:

1. PMBOK R6 and PMBOK R7 - (PMI)

2. National Guide to Project Management - 2022 (EXPRO)
3. Entity Five-Year Projects Portfolio Planning - 2023 (EXPRO)
4. Stage Gates Process - 2018 (EXPRO)
5. Cost Estimate Classification System - 2019 (AACE)
6. Value Methodology Standard Reference - 2020 (SAVE International)
7. ISO 9001 Quality Management Systems - Requirements (ISO)
8. Project Management Manual PMM - 2012 (NWC)
9. Capital Projects Policy - 2024 (NWC)
10. Governance Document - 2020 (NWC)
11. Projects Processes and Procedures Manual - 2014 (NWC)
12. Government Tender and Procurement System and Regulations - 2020 (MOF)
13. NWC Delegation of Authority Matrix - 2024 (NWC)
14. HSSE Policies and Procedures (2024)

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