Process Plant Construction A Handbook for Quality Management Patrick J. Noble @WILEY- BLACK WELL {A Joln Wiley & Sons, Le, Publication“This edition first published 2009 © 2009 Patrick J. Noble Blackwell Publishing was acquired by John Wiley & Sons in February 2007. Blackwell's publishing programme has been merged with Wiley's global Scientific, ‘Technical, and Medial business to form Wiley-Blackvell. Registered office Jolin Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, POI9 8SQ, United Kingdom Editorial offices 9600 Garsington Road, Oxford, OX4 2DQ, United Kingdom 350 Main Street, Malden, MA 02148-5020, USA. 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Designations used by companies to distinguish their products are often claimed as ‘uademarks, All brand names and product names used in this book are trade names, Service marks, trademarks or registered trademarks oftheie respective owners. The publisher is not associated with any product or vendor mentioned in this book. "This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold on the understanding that the publisher js not engaged in rendering professional services, If professional advice or other expert dssistance is required, the services ofa competent professional should be sought. Library of Congress Cataloging-in Publication Data ‘Noble, Patrick J. Process plant construction : a handbook for quality management / Patrick J Noble pcm. Includes bibliographical references and index ISBN 978-1-4051-8725-1 (hardback alk. paper| 1. Factories-Design and construction-Quality control. 2 Building-Superintendence. l Title, “THAS11.N63 2008, 690" 54 ~de22 2008022790 ‘A catalogue tecord for this book is available from the British Library. Set in 10.5/13 pt Trump Mediaeval by Newgen Imaging Systems Pvt, Ltd, Chennai, India Printed in Singapore by Utopia Press Pee Ltd 1 2009Contents Preface Acknowledgements Introduction 1 An Overview 1.1 Introduction 1.2 Material, equipment, materiel and works 1.3. Interested parties 1.4 Project strategy 1.5. Contractual environment 2 1809000 2.1 Introduction 2.2 Quality assurance 2.3. Difficulties met 2.4 The rationale for formal quality management systems 2.5 Certification of a quality management system 2.6 Quality/occupational health and safety/environment 3 On-Site Responsibilities and Interfaces 3.1 Introduction 3.2 The owner 3.3. The EPCM contractor 3.4 Construction contractors 3.5. Suppliers’ representatives 3.6. Special-service providers 3.7 Utility companies 3.8 The insurer 3.9 Authorities 3.10 The architect 3.11 Plant extensions and modifications 3.12 Small construction sites 4. The EPCM Contractor 4.1 Introduction 4.2. The corporate quality manual 4.3. Creating the site quality plan 33vi Contents 44 45 46 47 ‘The organization chart The site director ‘The site quality assurance manager Responsibilities for quality control Case study 5 Construction Contractors 5A 52 53 54 55 5.6 57 5.8 59 Introduction Selecting the construction contractors ‘The initial site meeting with each construction contractor Site quality plan Inspection and test plan Procedures and method statements Inspection and test records Construction quality file Inspection, measuring and test equipment Case study 6 Construction-Engineering Interface 6.1 62 63 64 65 66 67 68 69 6.10 Introduction Types and origins of engineering documents EPCM contractor's specifications and drawings Suppliers’ documentation Construction contractors’ specifications and drawings Engineering standards and codes of practice Document control Engineering site queries “As-built’ drawings Information technology infrastructure Case study 7 Materiel Management 7 72 73 74 75 Sources of materiel Purchase orders Materiel storage facilities ‘Materiel control procedure Incoming inspection, ongoing inspection and maintenance 39 72 72 74. 75 79 80 83 84 84 85 88. 88. 89Contents vii 7.6 Traceability oO 7.7 Spare parts 95 Case study, 95 8 Nonconformities ° 97 8.1 What are nonconformities and how do we ‘manage them? 97 8.2 Resolution 100 8.3 Model procedure 100 8.4. Few or many nonconformity reports 105, Case study 105 9 Quality Audits 107 9.1 Introduction 107 9.2 Guidelines for auditing, including a model procedure 107 9.3. Typical audit questions 116 Case study 120 10 Management Reviews and Completion Report 121 10.1 Introduction 1 10.2 Management reviews on site during construction 122 10.3 Construction completion report 125 11 Construction Completion and Turnover 127, 111 Activity phases on site 27 11.2 Contractual milestones 128 11.3. Responsibilities of parties present 129 11.4 Construction completion procedure 130 115. Procedure for turnover to the owner 132 11.6 Construction completion and turnover by functional systems 136 11.7 Conclusions 142, Case study 143 ‘Appendix A: Civil Works and Buildings 145 Appendix B: Mechanical Equipment 153 Appendix C: Heating, Ventilation and Air-Conditioning 161 Appendix D: Welding 166vili Contents Appendix E: Structural Steelwork Appendix F: Piping Appendix G: Electrical Installation Appendix H: Instrumentation and Control Appendix I: Painting Appendix |: Thermal Insulation Index 173 77 186 195 202 206 209Preface Head office engineering of process plant projects, together with the” associated procurement of materiel are, generally speaking, well structured within a framework of formal procedures. Unfortunately this is not always the case concerning quality management of the construction phase, for all too often serious thought is only given to it once the site is open, contracts are placed and work has started. Under these circumstances it may be possible to create a rudimen- tary system of quality management making the best of a bad job, but such an approach is to say the least unsatisfactory. My contribution to improving this situation is to present in this handbook a straightforward, commonsense model of quality man- agement, based on my own experience, which can be readily adapted to the needs of any process plant project. I trust that it will: * Prove to be a useful companion and guide to those persons directly involved, in particular the younger technicians and engi- neers, providing them with a ‘user-friendly toolkit’ to create and operate effective construction quality management systems + Also encourage top management of the various entities con- cerned to examine their culture and methods and, if necessary, bring about change, so that quality management of construction is a central facet of corporate and project strategy and not just an afterthought Although this handbook is focussed on quality management systems for the construction of process plants, most of the principles and procedures proposed can be applied to other types of project. Patrick J. NobleAcknowledgements I wish to express my sincere thanks to the following persons for their help and encouragement in creating this handbook: Karim Benziane, Robert Broatch, Philip Broos, Chris Fox, Patrick Hehenberger, Jacques Rozenwajn and last but not least my wife, Gilberte. Tam also grateful to the Institution of Engineering and Technology for permission to base Figures 1.1, 1.2, 4.2 and 11.7 on figures in my article, ‘Quality Assurance in Construction of Process Plants’, published in Engineering Management Journal, Vol. 7, no. 4. My thanks go also to Wiley-Blackwell, in particular to Madeleine ‘Metcalfe, James Sowden and Lucy Alexander, as well as the team at Newgen Imaging Systems, for their very professional work in producing this handbook.Introduction ‘Through the 11 chapters of the handbook, the reader is introduced progressively into a methodology for mastering the management of quality on a process plant construction site. The various principles presented are set into context by the inclusion of a number of case studies. Chapter 1 shows the pivotal role occupied by the construction phase of a project, at the same time defining the term ‘quality’ It goes on to identify the different parties concerned and the rela- tionships between them. Finally, the necessity of defining right from the outset project construction strategy is emphasised. Chapter 2 defines the concept of quality assurance, how it has been codified in the ISO 9000 series of standards and how the latter can be translated into a meaningful quality management system on a construction site. A negative image of ISO 9000 is not uncommon in the construction industry; this is explained and an appropriate response is given, Chapter 3 focuses on the site and the role of the various actors Present, whose relationships are illustrated in system terms. The sharing of responsibilities for attaining quality is presented in the form of a matrix. Then plant extensions and modifications are discussed as well as adapting quality management principles to small construction sites, Chapter 4 discusses the central role of the engineering, Procurement and construction management {EPCM) contractor on the construction site, its organization and the duties of key members of its staff. An approach is given for the preparation from scratch of quality plan for this organization and a typical organization chart is included. Chapter 5 concentrates on the part played by the various specialist construction contractors and how they can be selected. Guidelines are st out for the initial site meeting and then models are proposed for the various documents to define and then record the required Programme of inspection and tests Chapter 6 is concerned with the interface between the head office engineering design function and the construction site. The different types of documents concerned are defined, as well as the documentxiv. Introduction control function to ensure that the right ones are available to the persons who need them. A typical site-generated engineering query resolution system is proposed and the importance of establishing ‘as-built’ documents is stressed. The chapter closes with a discussion on the role of information technology to facilitate ‘management, storage, transmission of and access to documents. Chapter 7 covers the site management of materiel, starting with the different sources of supply and underlining the importance of effective upstream engineering, procurement and at-source inspection to avoid problems on site. Incoming inspection and ongoing maintenance are explained with model forms to manage these activities. The chapter concludes with a discussion on trace- ability and spare parts. Chapters 8 and 9 discuss, respectively, management of noncon- formities and quality audits, proposing model procedures com- plete with sets of forms. These two activities are vital, providing means of monitoring the quality management system to detect and correct anomalies, but they can generate resentment. An approach is proposed to avoid this situation and bring about cooperation. Chapter 10 cites another management tool, that of periodic reviews of the site quality management system, giving a model list of areas of investigation. The necessity of a final site project report is underlined to enable lessons learnt to be fed into the corparate pool of experience and know-how for the benefit of future projects. Chapter 11 is concerned with the formal completion of construction, leading on to the watershed milestone of turnover to the owner. The various stages are defined with model procedures and forms to complete and document the transfer. There are ten appendices (A to J], each devoted to a specific dis- cipline, starting with civil works and buildings, then progressing through mechanical equipment erection, electrical installation, and so on, terminating with painting and thermal insulation. The order of the appendices corresponds broadly speaking to the sequence in which the different works are put in hand on site. This part of the handbook is not in any way a technical treatise, for each discipline represents a vast range of knowledge meriting its own handbook. It is instead a management review aimed at the nonspecialist, pre- senting briefly for each discipline a description of the works likely to be met on site, evoking the parties involved and highlightingIntroduction xv the quality issues to be addressed. Typical inspection and test pro- grammes are outlined. However, the definition and the execution on an inspection and test programme for an actual project must be solidly based on the specifications, drawings, standards, procedures and other documents applicable to the project in question, with full account taken of the legal and regulatory requirements concerned, especially with regards to occupational health and safety, as well as the protection of the environment. Downloadable forms For those chapters proposing typical procedures with model forms concerning responsibilities on site, supplier site vis- its, quality plans and records, engineering queries, incoming inspection and maintenance, nonconformities, audits, manage- ment reviews and construction completion and turnover, the forms concerned can be downloaded from the Wiley-Blackwell website: www-blackwellpublishing.com/noble. They can serve as a basis for the reader to create his/her own forms adapted to the needs of a specific project.An Overview 1.1 Introduction A process plant is an industrial facility which transforms chemically and/or physically bulk raw or partly processed ‘material into a useful new product. Such plants are to be found in a wide range of industries, including oil and gas, chemicals, petrochemicals, water supply and food. The process plant, properly speaking, is supported by utilities, off-sites and infra structure to form a coherent functional whole The creation of a new plant or the extension of an existing one necessitates a preliminary design centred on the process. Further engineering develops the initial concept to the point where detailed specifications and drawings can be produced, leading to the procurement and delivery to the site of the necessary materials and equipment. Completion of construc- tion leads on to commissioning and start-up, when the opera- tional robustness of components and systems is demonstrated, as well as the ability of the plant as a whole to perform to specified requirements. Figure 1.1 is a sequential chart for a typical project showing the relationship between construc- tion and the other phases both upstream and downstream. Within this context, ‘quality’ of the finished plant is defined as the totality of features, characteristics and attributes that2. Process Plant Construction BASIC DESIGN a DESIGN soso Purchase orders Construction contracts ee Equipment and “or wareHousing level __ prerapricaTion, celnanardnanid Pb seen | CONSTRUCTION COMMISSIONING ‘START-UP PERFORMANCE TESTING ‘COMMERCIAL OPERATION Figure 1.1. Typical process plant project. enables the plant to satisfy specified requirements. More suc- cinctly, quality can be perceived as ‘fitness for intended pur- pose’, thus meeting the expectations of the parties involved. Failure to attain the desired level of quality may be due to root causes present at any stage of the project. These may be conceptual, physical or organizational.1.2 1.3 An Overview 3 From the viewpoint of quality, the construction phase is the project crossroads, for it is here that design and procurement activities come to fruition as the plant progressively assumes its physical existence and identity. Also it is here that the foundations are laid for trouble-free commissioning and start-up. Thus, effective quality manage- ment during construction makes a key contribution to suc- cessful completion of the project. Whilst this handbook is aimed at quality management of the construction of process plants, the principles, approach and methods proposed are to a large extent relevant to a range of other industrial installations. These include inter alia power plants, bulk liquid storage depots, sewage treatment works and waste disposal facilities. Material, equipment, materiel and works ‘These four words appear often in this handbook, so it is impor- tant to understand from the outset the meaning given to them. Material comprises items not having a specific designation and which could be incorporated into a number of different loca- tions on the site. Low-tension cables and fittings, cable trays, most pipes and fittings as well as building materials come under this category. Equipment comprises items which have a designation and usually a tag number, ‘Cooling Water Pump N° 1~ P 201’ for example, and which are to be installed in specific functional and/or geographical location. Materiel is a collective noun that we use to refer at the same time to both material and equipment. As for works, it is a wider concept embracing materiel used and the activities necessary to install, erect or transform it into the whole or part of the plant. Interested parties A number of different parties are involved in the realization of a process plant and they may all influence directly or indi- rectly the quality of the finished facility. There is, in fact,4. Process Plant Construction a range of different possible configurations concerning who finances the project, who initiates and realizes it, who will own the completed plant and commission it and who will run it on a commercial basis once it is operational. Traditionally, the same organization, an oil company for example, cculd initiate a project, finance it and steer it through the enginzer- ing, construction and commissioning phases, and then oper- ate it throughout its working life. If the company concemed possessed sufficient resources in terms of know-how and experienced and qualified manpower, the project could be handled in-house with minimal participation of other parties. More often, an engineering, procurement and construction management contractor would be appointed to be responsible for designing the plant, procuring the materiel and supervis- ing construction, before turning over the plant at a predeter- mined point after construction was finished. In recent years while the above cited scenario is still present, a number of alternative project structures have emerged, which require closer collaboration between the dif- ferent actors, with a redistribution of roles, risks and respon- sibilities. They appear under a range of appellations such as ‘joint venture’, ‘alliance’ or partnership’. A detailed analysis of these arrangements is beyond the scope of this handbook, but let us cite hereunder some of the more prevalent example: * A horizontal link such as a joint venture between two or more engineering, procurement and construction manage- ment contractors for the duration of a project to enable the partners to work from a stronger financial base, to share risks, to pool resources and know-how and to better respond to the expectations of the owner + A vertical link being an alliance between the owner and the engineering, procurement and construction management contractor integrating project management, simplifying the exchange of information and thus streamlining decision taking * Extending the vertical liaison downstream to include suppliers of major equipment items, generally on the criti- cal path and with long lead times, so as to inject supplier specialist knowledge early into the design, saving timeAn Overview 5 by avoiding the bidding process and improving quality by reducing the number of change orders in later stages and even improving constructability and simplifying mainte- nance of the finished plant * The ultimate in vertical integration where a consortium finances the plant, remains in ownership of it, designs, builds and commissions it and continues to maintain it throughout its working life, renting it out as an operational facility to a production company The vertical links cited above generally give rise to a higher initial nominal contract price, but which should be more than compensated by tangible savings downstream as well as intan- sible benefits. Avoiding costly and time-wasting adversarial situations, unfortunately all too common in the construction industry, has been the main driving force behind the promul- gation of these approaches. Results have been positive where mutual trust has been generated and maintained, objectives of the participants have been well defined and top management has provided the necessary inspiration. Failures have occurred where these factors have been lacking. ‘These innovative styles of managing process plant projects can be accompanied by a number of financing structures, for example: * Partners agree a target cost to be compared with ultimate actual cost, sharing the eventual savings or cost overrun, thus providing motivation to the parties concerned. * The plant remains the property of a bank, which has financed the project, to be handed over on a sale/lease-back arrangement to the company which has initiated the proj- ect, driven it through to commissioning and start-up and will take it forward into commercial production. * In certain situations the addition of regional, national or international public money to private investment as part of government policy will be made to encourage industry and employment. Whilst the introduction of these novel contractual and finan- cial structures generally revolutionizes many aspects of6. Process Plant Construction running a project, in fact they make little difference to the day-to-day management of quality on site. Whatever the arrangement chosen, there will always be specialist contrac- tors who do the work, there will always be an organization, whatever it may be called, which manages, coordinates and supervises everything which happens on the site, and there will always be an entity to whom the completed plant is turned over. The only effective difference between one project and another will be the identities and names of the parties fulfilling these roles. The essence of the relationships between them, as far as construction quality management is con- cerned, will remain substantially the same. So for the sake of simplicity and in order to give this handbook focus and coher- ence, we have retained a single traditional model, for which we have defined hereunder the appellations and roles of the parties concerned. However, the methodology is valid what- ever the financial, contractual and management structure, and so transposing the ideas proposed in this handbook into a form adapted to a specific project founded on another commercial/ contractual model should not present too much difficulty. In our chosen model the owner is the entity which initiates the project, finances it, carries out the basic design and which will take possession of it and operate it once it is complete. Let us assume that this organization does not possess engineering, procurement and construction departments of sufficient size and capability to run the project in-house. Consequently, the owner engages an engineering, procurement and construction management (EPCM) contractor. Suppliers under the supervision of the EPCM contractor furnish the necessary materiel for the project. The work on site will be carried out by construction contractors who are also under the supervision of the EPCM contractor. Special service providers may be engaged by the owner, by the EPCM contractor or by a construction contractor for duties such as surveying, civil site and laboratory testing, for carrying out destructive tests and nondestructive examination associated with welding or for the interpretation of results obtained from these activities. Finally, there are outside organizations whose exigencies have to be met if the project is to advance. There are, first14 An Overview 7 of all, the utility companies providing electricity, gas, water, telecommunication facilities and sometimes steam. They may be privately owned, nationalized industries or govern- ment departments. There is also the insurer of the project who will have requirements to be met. Finally, there are the authorities responsible for enforcing the applicable legislation and dependent regulations in the country in which the plant is to be built and also possibly in the country or countries of manufacture of materiel incorporated into the works. ‘These appellations of the parties involved and theirs roles as defined above will be assumed throughout this handbook. Whilst the perspective presented is essentially that of the EPCM contractor, the same principles can be adapted to the situation of the other participants. In Section 3.12 guidelines are given for applying the principles and procedures proposed in this handbook to the smaller construction site, where struc- tures and facilities are present on a smaller scale. Concerning the process technology, it may be owned or licensed by the owner or by the EPCM contractor. For the sake of simplicity we have assumed that this technology is ‘owned by the owner and embedded in the basic design. Project strategy Very early in the project, fundamental decisions have to be taken concerning the manner in which the totality of activi- tics and their corresponding responsibilities are to be divided into lots. The sort of questions to be addressed are as follows: ‘+ What are the depth and scope of the preliminary design to be provided by the owner to the EPCM contractor? + Will the EPCM contractor carry out all detailed design across all disciplines, or in certain specialized areas will this be part of the scope of work of the selected construction contractor, in the case of, for example, a complete water treatment plant or an electric substation? + What materiel will be freely issued to the construction contractors and what materiel will they be expected to8 Process Plant Construction procure? Taking the piping discipline for example, will valves, pipes and fittings be freely issued to the construction contractor or will the latter be required to supply them? + To what extent will procurement of materiel be grouped? Will, for example, valves, pipes and fittings be procured through a multiplicity of purchase orders awarded directly to a large number of suppliers, or alternatively will this procurement exercise be devolved to a single or a small number of stockists? + For each discipline will there be a single site-wide contract or will there be a split by geographical/process zone to form two or more contracts? + Will related disciplines be separated contractually or combined? For example, will mechanical equipment erection and piping prefabrication/erection be the subject of two distinct contracts or of a combined contract, which in effect shifts the interface between the two disciplines from the EPCM contractor to the single chosen construc- tion contractor? + Very importantly, what will be the responsibility interfaces between the owner and the EPCM contractor towards project completion and how will they evolve over time? What are the definitions of ‘construction comple- tion’, ‘commissioning’, ‘start-up’, ‘performance testing’ and ‘commercial operation’? Which organization will be reson- sible for each of these phases and how will the work scope be shared? These decisions are often perceived simply as a commer- cial, planning and administrative matter, but they are in fact also very much a quality issue, as they determine interfaces between the interested parties. In tangible terms, the outcome of the above exercise is a list of potential purchase orders and construction contracts as well as tables defining the scope of responsibilities between the owner and the EPCM contractor. ‘These are key control documents to be completed with more detail as the project advances, in particular, with the names of the appointed suppliers and construction contractors. To get a global image of this exercise of determining project strategy, let us look at Figure 1.2, where the diagram shows notionallyAn Overview 9 ‘AB9}BAS Wefosd Zp euNBIy suo} 8. un sss001g + FROUREI6006 ‘meuotoun10 Process Plant Construction the totality of a project represented as a cube, able to be sliced in three planes mutually at right angles representing: « The successive stages of the project from preliminary design through to completion « The various disciplines involved, which on a site are imple- mented broadly speaking in sequence starting with civil works and progressing through equipment installation, piping erection and so on «+ The split into functional/geographical divisions such as the various process units, off-sites and utilities ‘Therefore, project strategy is notionally deciding how to cut up the cubic ‘cake’, the resulting ‘pieces’ representing the responsibilities of the owner, the EPCM contractor, the suppliers and construction contractors, with the way the pieces fit together being the interfaces in terms of stage, dis- cipline and functional/geographical divisions. These ‘pieces’ representing work lots, become, as it were, the backbone of the project and are the basis on which purchase orders are placed and construction contracts are awarded (as well as providing the framework for planning and cost control). Interfaces are potentially where mistakes occur, so they should not be excessive in number and should be placed logically in terms of physical works and documentation. Bitter experience shows that indiscriminate division of a project into a multiplicity of contracts with badly dened boundaries is detrimental to quality inter alia because the EPCM contractor's supervision is diluted over too large a number of suppliers and construction contractors with their associated interfaces. 1.5 Contractual environment We can further examine the owner/EPCM. contractor/ construction contractors model chosen in Section 1.3, with two alternatives illustrated in Figure 1.3. Option 1 shows a project where the EPCM contractor is responsible entirely and solely to the owner of the project, based on a lump-sum price.An Overview 11 OPTION 1- LUMP SUM ‘Owner ‘Lump sum contract EPCM contractor ‘Construction subcontracts Purchase orders 1 1 Construction Materiel \(sub) contractors ‘suppliers OPTION 2 ~ REIMBURSABLE [omner] Construction contracts Purchase orders Reimbursable contract += [EPem contractor (Construction Materiel contractors suppliers ** Supervision of construction contractors and materiel suppliers by the EPCM contractor ‘for and on behalf ofthe owner. Figure 1.3 Contractual configurations.12. Process Plant Construction ‘The EPCM contractor in turn places contracts directly with construction contractors, who in effect become subcontrac- tors. Similarly purchase orders to suppliers for the provis.on of materiel are placed directly by the EPCM contractor. This arrangement, while it possesses apparent simplicity, requires the plant design to be defined in considerable detail before -he appointment of the EPCM contractor. Option 2 presents an alternative multiple contract arrangement with the construc- tion contractors and suppliers being contractually linked to the owner, but under the supervision of the EPCM contractor, acting for and on behalf of the owner. The EPCM contrac: tor’s contract with the owner is on a reimbursable basis. This arrangement enables the EPCM contractor to be appointed at an earlier stage in the project and gives greater flexibility throughout the project to meet the unexpected. A possible hybrid approach would be to start work on a reimbursable basis, then to change to a lump-sum contract when the design is sufficiently advanced Whatever the contractual roadmap of the project, the manner in which each contract is defined and administered can have a major influence, for better or for worse, on quality. Should an. adversarial situation arise, the contractor will have his atten- tion focussed on claims to the detriment of quality. The best way to minimize the risk of this happening is to ensure that, the contract is fair and unambiguous. This is a statemen: of the obvious, but it is surprising how often this simple precept is ignored. You do not have to be a lawyer to understand that a contract will run smoothly and disputes will be avoided or at east attenuated if the following are clearly defined in writing and accepted by both parties from the outset: + The precise nature and extent of the materiel and/or service in the scope of work to be provided + The types of documents to be produced by both parties, and the procedure to exchange and process them + How, where, when and by whom conformity to speci‘ied requirements is to be verified ‘+ Requirements of authorities, if any + Timing of the various stages, in particular time and place of deliveryAn Overview 13 + The price to be paid and terms of payment * How variations in scope are to be processed Itis essential that agreements made during the negotiations, in particular concerning the resolution of differences between the call for bid documents and the offer, are formalized and made contractual as carly as possible. Furthermore, the following situations must be avoided if a climate favourable to quality is to be generated and maintained: + Imposition of unreasonably low prices * Placing contracts late allowing no time for preparation + Excessive modification in the course of the contract, * Not identifying and resolving quality problems as soon as they arise To encourage the contractor to meet its obligations, noth- ing succeeds like attractive financial incentives. In practi- cal terms, this means linking each important milestone, for example, the satisfactory completion of a significant elerment of the works, together with the associated inspections and tests, duly documented, to a substantial payment It has become commonplace in recent years to empha- size the ‘togetherness’ of the personnel of the various parties working on a construction site rather than the contractual relationships between them. This takes the form of hold- ing ‘team-building sessions’ run by ‘facilitators’, leading to the drawing up of a ‘partnership charter’ expressing a com. mon goal of finishing the plant under the best possible conditions, and soon and so forth, This isa laudable approach to improving communication between individuals coming from different horizons, who have to work closely together. It can generate motivation and mutual respect as well as create a Project esprit de corps. However, it is naive to imagine that such arrangements can lessen the necessity to build relationships on a bedrock of sound robust contracts.ISO 9000 2.1 Intreduction ISO 9000 is a global term used to cover a whole family of standards relating to quality management systems, which are published by the International Organization for Standardi- zation, but which also appear in other formats. The reader is recommended, in particular, to familiarize himself or herself with the two most important of these standards, namely: + 150 9000:2005 Quality Management Systems ~ Fundamentals and Vocabulary ‘= 150 9001:2000 Quality Management Systems ~ Requirements Other standards in the ISO 9000 series treat certain areas in more detail. Why do we need ISO 9000? It gives a framework and a vocabulary widely recognized throughout the world for those creating and operating quality management systems. In fact, on most projects, for potential contractors to be entered on a list of bidders, they must be able to show that they have in place a quality management system comply- ing with ISO 9001:2000. The availability of these standards, or their equivalents, with identical content in a number of2.2 23 180 9000 15 different languages, can facilitate quality management on international projects. Quality assurance What are the benefits of applying a quality management system (QMS) as opposed to a traditional more informal approach simply relying on normal supervision? The applica- tion of an effective QMS, by its definition of procedures, its recording of inspection and test results, and its mechanisms for detecting and correcting anomalies, apart from its direct benefits, will give the necessary assurance that quality: + From the very beginning and throughout the construction phase will be attained * Upon completion has in fact been attained Thus, all actions organized in a structured, systematic man- ner with this objective in mind can be described as quality assurance (QA), Effective QA enables the EPCM contractor to master quality issues, ‘getting it right first time’ with the resulting economies of time, money and effort. Externally, QA exer- cised by the EPCM contractor helps give confidence to the ‘owner in the capacity of the former to deliver the plant to specified requirements. The same reasoning can be applied concerning suppliers and construction contractors. Their own QA measures produce internal benefits and, in addition, con- tribute to convincing the EPCM contractor and the owner as to their capabilities and the conformity of materiel supplied and works carried out. Difficulties met Unfortunately, the application of quality assurance (QA) in a construction context, and in particular the application of ISO 9001:2000, is often misunderstood or misapplied so that it does not realise its full potential. Let us examine these difficulties and see how they can be overcome.16 Process Plant Construction In the first place, it must be understood that ISO 9001:2000 is a generic standard which can be applied to practically any institutional, commercial or industrial situation, for example, fa school, a car hire agency, a washing machine factory or a construction site. So a considerable amount of effort has to be expended to translate the principles proposed therein into a format and expression relevant to a given context, In the case of this handbook, it has been written in the spirit of ISO 9001:2000, but expressed in terms which make sense on a pro- cess plant construction site. ‘Another problem which can arise is when a quality manage- ‘ment system (QMS) proposed is too complicated for the activ- ity ot situation in question, with the texts of documentation couched in pompous terms, which practical men on construction sites have difficulty in taking seriously. To quote the reaction of ‘one such person faced with this situation, “QA is an expensive ‘waste of time, generating unnecessary paperwork and stopping people getting on with the real work’. This state of affairs can be alleviated by top management exercising special care tc recruit to posts of responsibility in the quality domain competent individuals familiar with the industry. Too often these positions are considered as token posts to be filled on a stop-gap basis. Even though over the years effective formal QMSs have become more and more visible and seen to be relevant on site, there is still at all levels of the construction community, from. ‘operatives up to members of top management, a minority who are indifferent, sceptical or even hostile as to their relevance ‘nd utility. In answer to those who doubt, in the next section ‘we set out from first principles the rationale for QMSs. ‘The rationale for formal quality management systems Let us start by listing the essential conditions that must be met if quality of the finished plant is to be attained. These are: + Responsibilities for attaining quality must be defined. + Materiel arriving on site must be properly registered, stored, maintained and issued.180 9000 17 * The right documents must be available to the persons doing the work, * A procedure needs to be in place to process site generated queries. * Personnel shall be of appropriate levels of formation, skill and experience, * Critical processes shall be the subject of predefined and validated procedures, * Inspection, test and measuring equipment shall be regularly checked and calibrated. + An appropriate level of traceability must be defined and implemented. + The necessary physical and organizational means to successfully achieve the works shall be provided. * A programme of inspection and tests shall be defined and implemented, with records kept of results obtained. But surely meeting these requirements is simply good manage- ment, which any organization worth its salt would have being doing anyway? Yes, this is true and in the past this could have been handled in a relatively informal manner. However, today, with more and more complex projects, carried out to tight plan. ning schedules and set within a strict regulatory framework, there has to be a structured approach. This means in the first place, creating and applying relevant written procedures, Let us now group together the procedures into what we can call a quality management system (QMS). However, the system will not come into being and work effectively on its own. It needs complete, wholehearted and visible support of top management. ‘The latter will appoint a senior manager to be the guardian, champion and ‘apostle’ of the system ‘to sell it’ to the people who are going to have to make it work; let us call him or her the quality assurance manager. To sustain the system, a set of further procedures must be added to monitor its functioning, detect any anomalies and instigate corrective action, as well as to ensure its continuing improvement. At corporate level the complete definition of the QMS, together with a support ing statement from top management is presented in a quality manual. For a given project the manner in which the QMS will be applied to that project will be set out in a quality plan,18 Process Plant Construction 2.5 Using such an approach means that: * We do not have to reinvent the wheel every time we open anew site. é ‘+ The site team can become fully operational very quickly. * New staff can be rapidly introduced to project requirements. + Nothing essential is forgotten. * The existence of the system adds to the credibility of the organization and hence offers strategic advantage. + A structure exists which can be continually reviewed and improved. ‘The above advantages are particular relevant to the construction industry which has to function in a difficult environment, for ‘* Every project is to a greater or lesser extent a prototype. ‘+ The workforce is nomadic, sometimes with little continu- ity in team composition from one project to the next, ‘* In some parts of the world, there is a limited industrial infrastructure, a shortage of skilled personnel, cumbersome administrative requirements and corrupt officials Certification of a quality management system ‘An organization may call on an accredited third party to assess its quality management system (QMS) with a view to its certification of compliance with the requirements of ISO 9001:2000. This in fact is a commercial necessity, for certification has become a prerequisite for entry on a list of bidders. However, in launching the certification process, it is important that the organization be motivated by a con. viction of the intrinsic value of certification, rather than just ‘one of commercial necessity. Existing resources may be available in-house to analyze requirements and then create or adapt the necessary procedures constituting the QMs, Alternatively, an organization may engage an outside con sultant, in which case the selection of a suitable individual2.6 180 9000 19 is primordial. The latter should be a practical down-to-earth person who, in addition to his or her in-depth appreciation of the ISO 9000 standards, is familiar with the construction industry and credible to site personnel. Quality/occupational health and safety/ environment Parallels can be drawn between systems for managing quality, occupational health and safety and environmental protection issues, which can be respectively structured to meet the exigencies of ISO 9001:2000, BS-OHSAS 18001:2007 and ISO 14001:2004. Each needs to be formalized in a site specific plan, to be implemented and operated on an ongo ing basis and, above all, needs to receive the unreserved and visible support of top management. Moreover, each of these three management systems lends itself to the same monitor- ing, control and corrective action mechanisms implemented through the procedure for processing nonconformities, by auditing and through periodic management reviews. ISO 9001:2000 evokes the desirability for a quality management system to be compatible with systems covering other domains including occupational health and safety and environmen. tal protection. Some situations on site may involve two or even all three areas at the same time. For these reasons, there is a tendency to rationalize and integrate the format, documentation and application of systems for managing these three domains.On-Site Responsibilities and Interfaces 3.1 Introduction Having already determined the project strategy as proposed in Section 1.4, which defines how the job is to be cut up and responsibilities for the various parts allocated, it is essential that at as early a stage as possible, the owner and the EPCM. contractor formally review the project from start to finish in order to define relationships and interfaces. This joint exercise should include a review of the construction phase Figure3.1 outlines, in the form of a system, exchanges between the principal entities on site, that is, the owner, the EPCM contractor and the construetion contractors. Also shown are the links to their respective head offices and with the utility companies, the insurer and the authorities, which together constitute the environment in which the site system is set. ‘As the future arrangements take shape the discussion can focus onto a more detailed definition of ‘who does what’ on site in the form of a matrix, an example of which is shown in Table 3.1. This anticipates a more detailed treatment presented in subsequent chapters and sections. This is a good place to remind ourselves that responsibility for effective quality management of construction is not just the concern of the EPCM site quality assurance manager and his or her staff, but implies the full and active cooperetionOn-Site Responsibilities and Interfaces 21 a oe = Sten oar OWNER | ! HEAD OFFICE ow i Formal = aaa Informs, reviews, answers queries, accepts turnover of ‘comploted plant COMPANIES, INSURER, and Information, requests inspection Informs, aut, resolves queries EPH Inspect order ConTRACTOR ; rmosatons), HEAD OFFICE J cceptcertty oN ‘Reports, Raises quenas| i supervises, Jinspects, audits, : {accepts works Inform, ‘audit Report Site System Boundary Figure 3.1 Site relationships — as a system.sonpandns spmunes pur int lemons sou epg) snacaing sey vou alo 22 Process Plant Construction soolond | “aT a PP pap, OREN UNO sores wos WAI (ere pu gyi) sued om ur xpreU Ayyqjsvodses Ayenb ous WE IALOn-Site Responsibilities and Interfaces 23 [onuoo TuDuINGOP FPABUT, etsy soc song ome “qrseno moun, wom snags sng, speoas srsswos| wowed nya aD Tees | aywnb eau | sesuonig| uonoytos woponetoS ray resp peuroy rover oven ey porey orev espn reap rempay oveny opps spp | __ setae po sandy | oneran ee arta | sme ee Ce te bre —— URS 7uauTudoc 10198UOD WOE sealant | “ee aed Papin aoa ‘ou along ZouMO, soysenwo> Woda anunuog 1" PL24 Process Plant Construction at all levels of all parties present. In the first place, the top management of the owner, the EPCM contractor and the construction contractors must want, and be seen to want, to make the quality management system (QMS) work as part of their company culture and strategy. They in tum must motivate and require their senior management on site to take the necessary steps to create and sustain the MS, and then to encourage and motivate all levels of their staff including foremen and skilled tradesmen to collaborate ‘ully in attaining quality objectives. On construction sites it is common practice to publish news sheets and create awards for achievements in matters of progress and safety. Doing the same thing for quality issues would help to sustain interest and motivation. 3.2. The owner ‘The owner is represented on site so as to be able to follow construction from day-to-day and to provide guidance to and answer queries raised by the other parties. The culmination of the construction phase is the turnover of the plant to the owner. This implies that when the time comes, the owner will be capable of accepting it. In practical terms this means that the owner will be building up the future team which will run the plant, in particular the engineering, production, maintenance and safety departments, to become prozgres- sively operational as construction completion and turnover are approached. The presence of key owner personnel on site during construction is an excellent means for them to become familiar with the plant in preparation for their future respon- sibilities. This is especially true during final inspection and testing of complete systems. ‘A close working relationship between the representatives of the owner and of the EPCM contractor on site is essential for the smooth working of the project. However, requests on the part of owner's personnel for alterations and additions must be formalized; otherwise they can get out of hand. The ECM contractor must evaluate their technical impact as well as the impact on cost and delivery, and then the owner can decide3.3 3.4 On-Site Responsibilities and Interfaces 25 whether or not to implement them, A vehicle for achieving this could be based on the site engineering query procedure proposed in Section 6.8, possibly with some adaptation. The EPCM contractor The EPCM contractor fulfils a key role in that it is the coordinator of the activities of all parties present and the catalyst to ensure the smooth running of the site. In par- ticular, it selects the construction contractors and closely supervises their work. It is responsible for the issue of materiel and engineering documents to the construction contractors and ensures that the latter establish and continuously update quality records. The EPCM contractor identifies anomalies and launches the corresponding corrective action through a nonconformity management system, by auditing and by regular management reviews. It also liaises with other partici- pants, in particular suppliers’ representatives, special-service providers, utility companies, the insurer and the authorities, and is the main interlocutor on site for the owner. The on. going objective of the EPCM contractor is to be able to turn- over to the owner a complete plant to specified requirements (and of course on time and within budget] Chapter 4 presents a more detailed discussion concerning the EPCM contractor on site. Construction contractors Construction contractors are chosen for their competence in the various disciplines. They bring to the site the necessary human and physical resources together with the structure, organization and procedures necessary to meet their con. tractual obligations. With the prior permission of the ECM contractor, a construction contractor may subcontract part of its workscope, but in that case the construction contrac- tor is entirely responsible for the quality of work of the sub- contractor. The construction contractors receive engineering26 Process Plant Construction documents and materiel from the EPCM contractor, which they use to carry out the works, When required under the contract they may do some detailed design and procure mate- riel. They will have to submit a quality plan to the EPCM contractor for approval before putting it into operation. They shall perform the inspections and tests as per their quality plan, calling the EPCM contractor to witness when required to do so. Quality records shall be filed progressively to consti- tute a quality dossier. The ultimate aim of each construction contractor shall be to present the completed works for accep- tance by the EPCM contractor, to be eventually turned over to the owner as a component part of the whole plant. Chapter 5 presents a more detailed discussion conceming the construction contractors on site. 3.5. Suppliers’ representatives ‘The more complex items of equipment, in particular complete packaged units, often require visits by supplier's representa- tives [SRs] to supervise the critical phases of erection, testing, commissioning and start-up. Their presence may even be con- tinuous rather than on a visit basis. The purchase order will normally define the points at which visits are to be made and the costs and payment arrangements of such visits. Visits may be related to the question of guarantees, so it is important that they are organized on a sound basis. These services can be expensive, so the EPCM contractor needs to be firmly in control. This means: * Designating an appropriate member of its staff as the interlocutor for each SR * Making the SR report on arrival at site to define his or her scope of work and requirements in terms of assistance, materiel and services + Requiring the SR to produce a written report before leaving site, this being a precondition for ultimate payment, ‘This procedure can be implemented using the two-page form proposed in Figure 3.2.On-Site Responsibilities and Interfaces 27 EPCM contractor ‘Report SUPPLIER SITE VISIT REPORT NO. ns Name/Logo Page 12 Owner: - ‘Supplies Project no. = P.O.no. Project: “| B.O. - Th is tobe jointly completed by supplier/EPCM contractor/owner at beginning of visit before che start of any work. Supplier representative, sonny arrived on site at hours on. Expected duration of vi days. A. Object of visi (Define which items of equipment are concemed B. Services to be; by supplier's representative . Services /Assistance to be provided to supplier's representative (Uuilties/scaffolding/manpowerjete.) D. Permit to work required? Yes/No*, Permit No." E. Cost of visie Included in P.O,/ls an extra" E. Other remarks, “Delete as necessary. Forowner. Name: Signature: = : Date: ener ences asus erreenrseeai Figure 3.2 Supplier site visit report in two parts (1/2 and 2/2).28 Process Plant Construction EPCM contractor Repor SUPPLIER SITE VISIT REPORT. No. Name/Logo Page 12/2 Owner: nnn suse | Supplier: Project no, P.O. no. Project: Po. - G. Record of work earried out “To be completed by the supplier's representative before leaving site and to be countersigned by the EPCM contactor/owner. The following headings are to be used: GI. Summary of actions taken G4, Parts changed G2. Details of modifications made G5. Further action required G3, Details of inspections and tests G6. Conclusions/recommendations Continue on extra sheet if required. Attach inspection and test records. Numbe: of pages attached ‘Report received, contents duly noted. orsuppliee For EPCM contractor Forownsr Name: Names Name: Signature: Signatuce: Signature: - Date: “| Date: co Date: Figure 3.2 (Continued)3.6 3.7 On-Site Responsibilities and Interfaces 29 Special-service providers ‘These organizations provide services such as: * Surveying * Site and laboratory testing associated with earthworks and concrete * Destructive testing and nondestructive examination associ- ated with welding * The interpretation of results of such tests Depending on project structure, these services may be provided within a construction contract or alternatively by special-service providers (SSPs) independent of the construc- tion contractors. What is important is their availability, that is, to be on call to catry out a survey or test and to produce the report without delay. At remote sites, which may be a long way from suitable laboratories, it may be advantageous for the project to provide accommodation for the SSPs to be based on site. Utility companies Technical details concerning the supply of electricity, gas, water, telecommunications facilities and, where applicable steam, will normally have been settled before the site is open by collaboration between the utility companies, the owner and the EPCM contractor's engineering department, formal con- tractual arrangements being the responsibility of the owner. Besides supply arrangements to the future plant, temporary utilities will be needed during construction. It is important that site visits of representatives of the utility companies be arranged in a timely manner so that any potential problem areas are identified early and not left to be discovered at the last minute, possibly delaying commissioning and start up. Utility companies are interested in their interfaces with the plant, that is, incoming switchgear or main isolating valves and the arrangements for metering. In addition, they will30. Process Plant Construction want to be sure that the installations within the plant will be compatible with their supply networks, concerning protective relay discrimination for example. 3.8 The insurer The owner's insurer’s premiums will be determined accord- ing to its assessment of risk, so this organization will have defined requirements concerning certain aspects of the plant to be incorporated into the design. The insurer may well also want to be involved at the construction phase. So it will be necessary to define which documentation will be needed for review and which tests will the insurer wish to witress. An carly visit to site by a representative of the insurer is necessary so that all parties understand what is required. 3.9 Authorities It is essential that the plant meets the legal and regulatory requirements in the country (or countries) of manufacture of materiel and the country in which the future plant will be situated. The most effective way to ensure that nothing is missed is for the EPCM contractor to appoint at the begin- ning of the project an authorities engineer, who shall identify the exigencies of each authority ensuring that these require- ments are incorporated into the plant design. From then on he or she shall, in collaboration with the owner, coordinate the authorities’: * Design approvals * Visits to suppliers + Site visits During construction it might be preferable for the authorities engineer to be based on site. When the site is in a country with which the EPCM contractor is not familiar, it is essential to have an input of local knowledge. It is common practice alsoOn-Site Responsibilities and Interfaces. 31 for the owner to appoint a third-party organization to review plant design, followed by surveillance during subsequent operations, including construction and the related inspection and test programme, to ensure compliance with legal and reg- ulatory requirements. The status of such a third party would depend on the project in question and the country in which it is situated. In this handbook any such third party is deemed to be covered by the generic term ‘authorities’. We can extend the notion of ‘authorities’ further to include not only central government departments or their chosen representatives, but also the local authority, police and fire brigade, which may well have jurisdiction in one way or another over the site. The watchword is to establish a good working relationship with these entities because you may need their goodwill. There may well be considerable overlap between the responsibilities of the utility companies, the insurer and the authorities. For example, the electricity supply company may be the de facto or even the de jure authority for the plant electrical installation. In some countries the enforcement of regulations concerning boilers and lifting devices may in effect be left to the insurer. For this reason it may be advantageous for the EPCM contractor's authorities engineer also to be responsible for liaison with the insurer and the utility companies. 3.10 The architect All projects, even those designed for outdoor operation, include buildings such as offices, stores, workshops, a canteen, an infirmary, cloakrooms, toilets, control rooms, electri¢ substations and gatehouses. A rational conception of these buildings contributes to the future effective operation of the plant and to good company-workforce relations. They are generally subject to mandatory conformity to building codes and in addition are the shop window of the plant to the out- side world. For these reasons it is highly desirable, often oblig- atory, to employ a qualified architect; he or she could be from within the EPCM contractor’s own organization or could be an independent professional. Apart from the architect's role32. Process Plant Construction in conception, detailed design and choice of materials, his or her presence on site can contribute to the satisfactory achievement of the building programme. 3.11 Plant extensions and modifications When a project is an extension or modification of an existing process plant, rather than the creation of a new one, the ground rules have to be adapted accordingly. In the first place the owner is omnipresent and the EPCM contractor's staff on site must work in close harmony with the various operational departments of the plant. For example, new con- struction work would probably have to be executed for reasons of safety within the existing permit to work procedure. This is even more the case when the works are in effect embed- ded in the existing plant rather than situated in a distinctive adjacent zone. Engineering must produce drawings clearly identifying the interfaces between the existing installations and the future ones, and this in all disciplines. Then there must be a cleat definition of modifications to be made to the existing plant and the manner in which new and existing elements are to be tied-in. As far as possible any duplicate items of equipment should be procured from the original suppliers. Also ideally the same EPCM contractor and con- struction contractors should be used, especially if senior staff who participated in the initial project could be made avail- able, though this might not be attainable in practice. Various operations, in particular tie-ins, have to be accomplished ‘according to a strict timetable within narrow opportunity windows involving partial or complete plant shutdown. ‘Thus the extension/modification of an existing plant calls for meticulous attention to detail in pre-planning, in execu- tion and in completion. Written procedures for all phases must be prepared well in advance and accepted by those concerned. The necessary staff, in particular in the engineering disci- plines, must be available on site for monitoring and control. The respective responsibilities of EPCM contractor and owner have to be defined especially for construction completion, turnover and commissioning, Finally the project organizationOn-Site Responsibilities and Interfaces 33 must include provision, which means the necessary funds and staff being made available, to integrate new and existing documentation into a coherent whole to facilitate operation and maintenance of the future extended/modified plant. 3.12 Small construction sites The smaller construction site will generally be given a simplified management structure; in particular there may not be present on site a distinctive person or team to create and manage on a day-to-day basis a formal quality management system. However, whether these persons are present or not, the quality issues are still very much in evidence, because the objective must always be to complete construction and handover the works in conformity with specified require ments to facilitate subsequent commissioning and start-up. ‘The other idea to bear in mind is that a quality management system is not, or should not be, a heavy unyielding mass weighing down a project. It is rather of the very essence of the project directed towards simplifying rather than com- plicating the aim of advancing towards completion of con- struction to the satisfaction of all parties. This notion is developed in more detail in Section 2.4. So the question is not one of supposing that on a small site it is not possible to impose a quality management system, but rather one of how quality objectives can be achieved with the reduced means available. This must be discussed, decided and documented before the site is opened. Some or all of the following approaches can be used to simplify structures and procedures * Integrate owner and EPCM contractor site management. * Reduce the number of construction contractors, and combine related disciplines into one contract, mechanical and piping, or electrical and instrumentation and control, for example. * Include in the construction contracts procurement and warehousing of material, pipes and fittings, or electric cables, for example.34. Process Plant Construction * Where possible maximize the use of prefabrication with stringent testing and inspection under factory conditions before delivery, thus reducing site works and the corre- sponding quality concerns + Use known and tested construction contractors who will attain quality goals with minimal supervision on the part of the EPCM contractor. * Completely define and document the inspection and test programme with the corresponding set of record forms to be available the day the site opens, and make sure that the construction supervisors implement the programme. * Assign, train and motivate someone to run on a part time basis the nonconformity management system. * At the time of opening the site hold a workshop for all concerned individuals run by a competent quality professional and with the presence of top managemen:, to ‘explain what is required and to motivate everyone. + Arrange for this quality professional to return to the site at regular intervals to audit the proceedings, proposing corrective action for any shortcomings discovered. Most important of all is that senior management of all parties on site are motivated, believe in the validity and relevance of the simplified quality management system put in place, want to make it work and are able to transmit their commitment to their staff at all levels.The EPCM Contractor 4.1 Introduction This chapter examines how the EPCM contractor can organize its task on site, first of all in creating its quality plan and then in determining the composition of the site team. The attri- butes of key members of staff, whose actions and attitudes are crucial for attaining quality objectives, are then evoked, followed by a study of the division of responsibilities for quality control. 4.2. The corporate quality manual It is probably true to say that most EPCM contractors Possess a corporate quality manual, which, as the name implies, covers all of the organization's activities, structures and procedures ranging from those which are continuous and those which are shorter-termed ones created or adapted for use for the duration of a project. This document repre- sents the organization's accumulated collective know-how on quality management. Supporting documents are either included or reference is made to them36 Process Plant Construction 4.3 Creating the site quality plan In an ideal situation the corporate quality manual (CQM), evoked in Section 4.2 above, should include a complete set of site-related model procedures and typical organizational schemata so that a project specific site quality plan (SQP) can be created simply by adapting this information to the specific needs of the construction site in question. Unfortunacely, all too often in the CQM, the construction site clement is lacking in content and format. So what can we say to the individual who has to create a SQP at short notice without the backup of adequate recorded accessible corporate know- how? He or she could start out by reading ISO 9000:2005 and ISO 9001:2000 for background information (see Chapter 2 ‘The terms and definitions given in Section 3 of ISO 9000:2005 and the relationship diagrams presented in Annex A are particularly relevant. He or she could then, in consultation with site management, work through this handbook adapting the principles and model procedures/forms set out herein to the particular needs of the site being considered. This approach can be summarized thus '* Identify the interested parties (Section 1.3). * Identify how the retained project strategy has divided up the responsibility for the various phases of the project, in particular for construction (Section 1.4 and Figures 1.1-1.3}. * Define the role of each interested party on site and how the parties present relate to each other and with entities exterior to the site (Chapter 3 with Figures 3.1 and 3.2, and Table 3.1). * Define the EPCM contractor's site organization (Chapter 4 and Figure 4.1) and in particular responsibilities for quality control (Figure 4.2}. * Define what is required of the construction contractors, including the keeping of quality records (Chapter 5), * Define the role of the EPCM contractor's engineering department on site, including document control, and the site’s interface with the project information technology infrastructure (Chapter 6)The EPCM Contractor 37 uepuyoo) 'WeYO UoHezIUEB0 ey JeOIdAy— sOIDeAIUOS WO Ip eanGig eve; ‘SOBUUOJU) a qweuingog ~~ ste | ee ee ee, ea = — se | oe we |S | . emeaenipe _| woven | sa eee wmnces | aa ere “7 oy | | aoa a 05] — [omen] [aoa veutvatenmay| [sone ug ae] BREN) [ee I i I snmoniaas —— = aoa aon ante a Ene" (ene wo1sawa ans]38. Process Plant Construction ALTERNATIVE 1 Ste management ‘wae ‘Construction management management aA ac ‘Supervisors with auditing inspectors ‘Supenisory role Progress role ALTERNATIVE 2 ‘Ske ‘management Ga Construction management ‘management cry auditing Figure 4.2 EPCM contractor — quality control responsibilities. «+ Establish a materiel management procedure (Chapter 7]. + Define construction completion and turover, and possible technical assistance to the owner beyond turnover (Chapter 11). ‘The above constitutes the main working clements of the EPCM contractor's site quality management system,44 The EPCM Contractor 39 but how do we monitor, control and if necessary adjust and correct the system? There are three correction and feedback tools, namely: * Anonconformity management procedure (Chapter 8) * A quality auditing procedure (Chapter 9) ‘+ A management review procedure (Chapter 10) As construction draws to its completion and the works are soon to be turned over to the owner, it is highly desirable to carry out a systematic review of the whole site process in order to be able to identify and record lessons to be learnt and feed them back into the corporate management system in the form of a construction completion report as part of a policy of continuous improvement (Chapter 10}. The documents resulting from the above exercise can be grouped together to constitute the SQP, to be validated by top management before being issued and applied. The SQP has to be compatible with procedures concerning admin- istration, cost control, planning, occupational health and safety, environmental protection, site procurement and so on. In fact, some EPCM contractors create one single project site execution manual, embracing all facets of site manage- ment including quality. This has the advantage of present- ing quality as a mainstream concern rather than as a bolt-on extra. It goes without saying that all of the above cited procedures need to be created in liaison with and taking into account the remarks and views of those who will have to apply them. The organization chart Figure 4.1 shows a typical site organization chart for an EPCM. contractor. The number of persons present depends on the size, type and structure of the project. Job titles vary from one organization to the next, but whatever the titles, all of the functions shown must be covered in one way or another. ‘The following are brief comments on certain posts shown in40. Process Plant Construction the organization chart which have a significant impact on quality issues: Site director. This person must give his wholehearied and visible support to the quality management system (see Section 4.5 for a more detailed discussion). Quality assurance manager. This is a key position with responsibility for overseeing the functioning of the whole site quality management system (see Section 4.6]. Construction manager. This post is totally devoted to :he supervision of the works carried out by the construct:on contractors (see Section 4.7). Site engineer. This is the site representative of the EPCM contractor's head office engineering department; respon- sibilities can include document control {see Chapter 6}. Materiel manager. Responsibilities of this post are essen- tially receiving, storing and issuing of materiel on site {see Chapter 7}. 4.5 The site director The role of the site director is to manage the site in liaison with all interested parties such that construction is com- pleted on time, within budget and to specified requirements (quality). There is an increasing tendency to compress the time available for realization, in particular telescoping the construction phase, the buzzword for this being ‘fast-track’. So the site director is going to be under a lot of pressure to meet the construction completion deadline. However, there is really no point in going through the motions of complet- ing construction on time, or even ahead of time, as well as, remaining apparently within budget, if along the way a series of grave, unresolved quality problems have accumulated. The latter will have to be corrected with the subsequent delays and costs, wiping out any previous supposed advantage, as well as, generating concern on the part of the owner. For this reason itis vital for the site director to be of sufficient personal and professional calibre to resist pressure to deliver willy-nilly. He46 47 ‘The EPCM Contractor 41 or she must, instead, give to quality its appropriate status in the cost-delivery-quality triangle. So the right person to fill this post will be someone, who apart from his or her other attributes, will from the very beginning give unreserved sup- port to the creation and implementation of the site quality ‘management system. The site director shall above all perceive the latter as a vital tool to achieve project objectives includ. ing the mastery of delivery and costs) and not just a chore imposed by head office The site quality assurance manager ‘The site quality assurance manager (SQAM] is the person with over all responsibility for creating and implementing the site quality management system. He or she should be an engineer or senior technician possessing a sound general technical and professional education, followed by broad-based work experi- ence. Strong verbal and written communication skills, as well as the capacity to grasp the significance of matters across the whole spectrum of activities and situations present on a pro- cess plant construction site, are a sine qua non. The SQAM must in addition be diplomatic and be perceived by others as credible, Responsibilities for quality control Quality control (QC) encompasses surveillance, inspection and testing. Before going any further, let us define these terms Surveillance means monitoring the works on an ongoing basis to detect in a timely manner potential and existing prob- lems. Inspection is the formal verification of works presented as being in conformity with specified requirements. Testing is the formal verification on the basis of an established pro dure that the materiel or works presented possesses a defined characteristic. QC is the collective term covering all three. As a general principle it is important that the maximum responsibility for quality be exercised as close as possible to42. Process Plant Construction those carry out the physical work. It is a mistake to suppose that quality can be ‘inspected into’ the works. Instead, the underlying basis for achieving quality is to deploy skilled motivated workers under the surveillance of competent supervisors. The fundamental role of the construction con- tractors is to do just that. The latter shall only present to the EPCM contractor for inspection and witnessing of test the works already deemed to be in conformity with specified requirements. So this leads us to the question of how and by whom QC is managed within the EPCM contractor's organization. Figure 4.2 presents two alternative schemata: '* Alternative 1, with QC independent of construction and instead combined into an integrated QA-QC function. + Alternative 2, with QC integrated into the construction supervision function, Alternative 1 gives a powerful independent quality function which certainly has advantages. However, with this arrange- ment ‘quality’ can develop into an independent ‘empire’ in parallel with construction supervision. The resulting relation- ship can be conflictual. ‘Alternative 2 gives the EPCM contractor's construction supervisors global responsibility for the execution of the works, including supervision of the construction contractors’ progtammes of inspection and tests (all subject to audit by the QA function]. This second configuration has the advan- tage of placing responsibility for QC closer to the day-to-day action, but still independent of the construction contractors. Generally the second configuration is preferable, but it can only work if the construction supervisors are prepared to assume responsibility for quality, including ensuring that proper formal records are kept of inspection and test results. For reasons specific to the culture of the industry this is not always easy to attain, but with the new generation of more educated, trained and motivated individuals arriving on the scene, it is perfectly feasible. This latter arrangement is the one assumed in this handbook‘The EPCM Contractor 43 y manner. A quality a n a ch site, where quality issues. are considered a central element in day-to-day management. X is. certified to ISO 9001:2000; being re-audited to extend the certifica- tion does not present a major problem. Whilst X's quality manage- ‘ment performance on its sites is not perfect, the fact that ‘quality’ is ‘@ major preoccupation of the company’s top management means re an integral part of every project and is as such. Y's top ment prides itself in the ability and experience Of its long serving engineers and technicians, but does not attach much importance to creating a bank of formal corporate proce- dures. Consequently every time a new process plant site is opened, the wheel has to be reinvented, but this is not considered to be a problem since the staff ‘are competent and will thus succeed in doing whatever is necessary, so they don't need procedures’. Under commercial pressures Y has gone through the process of obtaining ISO 9001:2000 certification but without any real enthu- siasm, so it is not surprising that when the audit for renewal of the certification is a long way off, the quality management structure tends to evaporate. In spite of this negative ambiance, individuals ‘on one site managed to create and made to work in an effective manner major elements of a quality management system, ss Continued44 Process Plant ConstructionConstruction Contractors 5.1 Introduction Construction contractors are the organizations which Physically carry out the work on site. In fact, it is no exaggeration to say that the success of the construction phase of a project is very much bound up with the selection of competent contractors, engaging them under sound contrac- tual conditions and creating an environment on site to enable them to fulfil their role to the satisfaction of all parties With this in mind it is vital to define from the outset what is expected of a construction contractor concerning quality management. Construction contracts can be placed on the basis of covering a single discipline, or by grouping within the one contract two or more closely associated disciplines indicated with asterisks as follows: * Civil works" * Building + Structural steelwork* + Mechanical erection** + Piping** * Electricity*** + Instrumentation’ **46. Process Plant Construction 2 + Painting**** * Thermal insulation *** In addition, some contracts may be let on a multi-disciplinary basis, each being in effect a project within the project. Examples are complete buildings, water treatment plants and electric substations. Selecting the construction contractors What are we seeking in a potential construction contractor? [As far as quality on site is concerned, we are looking for: + A proven record of successful construction operations on sites comparable to those of the project in hand + Established simple, coherent and realistic corporate procedures and working methods, appropriate to and easily adaptable to the specific needs of the project * The above-mentioned procedures and working methods set within the context of a quality management system, which is a working reality, fully supported by top manage- ‘ment and not just a set of glossy folders gathering dust on a bookshelf + A pool of experienced individuals available to be deployed on the forthcoming site + Physical resources, ample and appropriate for the needs of the project How do we find out to what extent a potential construction contractor possesses these attributes? We can take all orsome of the following actions: + Visit the sites that have been completed by the potential contractor, better still visit a site or sites where itis actually engaged in construction «+ Talk with clients past and present + Visit corporate headquarters and review the comrany’s procedures and working methods5.3 Construction Contractors 47 * Review the company’s quality management system in the light of certification to a recognized quality management standard, if necessary by means of a formal audit * Interview key personnel presented to fill the posts on site in the event of a contract award All the above investigations should be the subject of written reports. The ensemble of these documents can then be analy- sed to give an overview as to the aptitude of the contractor to be able to respond to the needs of the project. A preliminary assessment can be made at the time of drawing up the list of bidders and a deeper investigation made as part of the bid evaluation of say the two or three most likely candidates. The initial site meeting with each construction contractor As soon as the contract has been awarded and the con- struction contractor has mobilized its staff on site, an ini- tial meeting must be held with the various departments of the EPCM contractor to establish lines of communication, clarify any anomalies and ensure that both parties put in hand the necessary arrangements for the smooth working of the contract. At this sort of meeting questions of qual- ity tend to take a low priority and hence get squeezed in at the closing stages of the meeting after safety, administra- tion, invoicing, and so on. It is preferable, instead, for the participants of both parties who are concerned with qual- ity matters to hold a separate parallel meeting and then to report their conclusions to the main meeting. This enables quality questions to receive the attention that they merit. It is essential that minutes be written as the meeting advances and then at the end signed by both parties. This ensures that no doubt subsists as to what has been agreed, even though the formal typed minutes may be signed and distrib- uted later. Against each action the person responsible for its implementation shall be named and a date defined for its completion48 Process Plant Construction ‘A model agenda for the initial site meeting is proposed hereunder. It can be adapted to the needs of a specific contract: Responsibilities and interfaces on and off site " Subcontractors Special-service providers Requirements of the contract and related requisitions, specifications and drawings * Construction contractor's site quality plan*, contents and date for presentation «Inspection and test plan‘, specimen forms for inspection and test records* + Weld procedure specifications* and procedure qualification records* + Other procedures and method statements* + Qualification of welders, nondestructive examination personnel and any other categories of personnel requiring formal qualification © Traceability * Calibration of inspection, measuring and test equipment * Document control “As-builts’ drawings Engineering queries resolution «= Information technology interfaces ‘+ Materiel control « Management of nonconformities * Auditing + Construction quality file* * Construction completion: + Any other matters ‘The asterisks identify documents for which timely presenta- tion is essential to the smooth running of the contract. The construction contractor shall be encouraged to deliver these on time by linking them to substantial payments defined contractually. Once the construction contractor is working on site, there will be regular progress meetings with the EPCM contractor. (On the same occasion parallel ‘quality meetings’ can be held. Items can be selected from the above agenda to establish a5.4 Construction Contractors 49 standard agenda for such meetings. It is particularly impor- tant that at each of these regular meetings the questions of outstanding nonconformities and audit findings are discussed and-expedited to close out. Site quality plan ‘The construction contractor's site quality plan (SQP) is a contractual document to be prepared and presented to the EPCM constructor’s site quality assurance manager as soon as possible after the arrival of the construction contractor on the site. It is a brief straightforward document that defines and explains how the contractor proposes to manage quality issues on site; that is to say, it is the roadmap of his quality management system. Chapter headings could be: Contract Workscope Breakdown Site Organization Chart Quality Assurance/Quality Control Functions Document Control Materiel Control Identification, Marking and Traceability Procedures/Method Statements Personnel Records Physical Resources Quality Records Nonconformity Management Quality Audits + Inspection, Measuring and Test Equipment * Other Relevant Details * Validation: Referring to the four-paged Figure $.1, there will be found a model SQP form where the above-listed chapter headings are set out with explanations and space to be filled in to complete the document. This form can be: * Included with the bid documents to indicate the type of SQP expected in case of award of contract50. Process Plant Construction wen caraar 7 conmmucmoncowmacton | $27 ‘SITE QUALITY PLAN Date: seasons Nang smauauremay | Pari Poke cre ‘A. CONTRACEN ae vexauon | Sees oie For joint Other partners Sub Others B. SIT ORGANIZATION CHART {leet interfaces with main contractor's head office) Distbuson Figure 6.1 Construction contactor ~ ste quality plan in four parts (14, 214, 3/4 and 4/4).Construction Contractors 51 E. IDENTIFICATION, MARKING AND TRACEABILITY (eee, Dne ay ls Re patti ppp G.PROcEDI STATEMENTS (Give complete li ofall eran document ling toe for pcialpoceses ‘cha welding sce wetment ete Inco copra cach tan spend DOC. No. REY pocumenT mnie Figure 5.1 (Continued) EPCM contractor SOP no CONSTRUCTION CONTRACTOR | Rev. aumarry eth Date: Name/Logo SITE QUALITE. Page: 2/4 ‘C. QUALITY ASSURANCE/QUALITY CONTROL FUNCTIONS (ho ropes NOC on te sin ti! Dee ci) D, DOCUMENT CONTROL (Dee decent cl cna ie with ape omens ci fom ‘Sotgecnmtor sn geet ons eros possi aprons atch sear so pel MATERIEL CONTROL, (Sete materiel cn esi oe ih ape mete fey thotre conan tbo cocmng au ped neyo ee rn ene pss oop and ak cp Space out sections as required52. Process Plant Construction K.NONCO? ITY, ENT {Th EREM onto wl rove stewie ste bat he eta of ny ita aie bythe HPCM inact, bev eal any EPCM contractor SOP 10. CONSTRUCTION CONTRACTOR | Rey Date ‘SITE QUAL - Name/Loo SUTEQUALITY PLAN Page: 3/4 HPERS RECORDS (unto pene nb aie ond ii pri LLPHYSICAL RESOURCES UL comstreton pen whi fic an faites) [QUALITY RECORDS [Lwinpcin od te pling inpeto nde ea a forthe tous eaty Uist perean tobe laredour oy the cnesor Ica acy ofeach document Steven Space out sections as required Figure 5.1 (Continued)Construction Contractors 53 VALIDATION ‘napa all wes aed ou he onturien cna ‘CERCA contact wl be oud ar tmunece seesog Figure 5.1 (Continued) P no. construction contractor | 32 a Date NamejLogo SITE QUALITY PI Page: dj x EASURING AND ute (Uses nd etn replat eam] N OTHER RELEVANT DETAILS Und futher dtl of cmtctrs i gay manag Space out sections as required This document with tached pyendina iated elow conetites the ite guly ‘ac tnd he forthe xc the sone diel conc Ar apal y Sense - - Dae vT OF APPENDI eee ee eee tee te eee Eee ee EEE |584. Process Plant Construction * Used as a questionnaire during a bid clarification meeting and form the basis of a report + Used by the construction contractor as a guide for preparing the SQP to its own format + Filled in directly on site by the construction contractor, the completed and signed document constituting its SQP The last use has proved to be a convenient and rapid way to establish a SQP, and in that it has been created on site by the individuals concerned, it may be more readily acceptable to them than a document imposed by their head office. It is also relevant to the smaller construction contractor, whose site organization will be minimal and whose corporate culture tends to be more informal than that found in a larger organi- zation (see Section 3.12). 5.5 Inspection and test plan ‘The purpose of an inspection and test plan (ITP) is to summarise and present in a user friendly tabular form the complete programme of inspections and tests for the whole contract scope or for a section thereof, based on information extracted from the relevant drawings, specifications, ccdes, standards and regulations. It is intended for day-to-day ready reference on site. The ITP can be produced contractually by the construction contractor, which has the advantage that it will in effect ‘own’ the document and benefit from hav- ing produced it, Alternatively, it could be produced by the EPCM contractor. This latter option would be appropriate in a fast-track project where there would be little time to prepare the document before putting it into application. ‘A model ITP form is presented in Figure 5.2. An explanation of the purpose of the first six columns is given hereunder, * Column 1 ~ Enables the inspection and test points to be numbered in chronological order * Column 2 — Definition of inspection or test point + Column 3 — Frequeney, such as ‘once per shift’ or ‘10% of welds’uid yet pue uonedsu) z's eun6ig56 Process Plant Construction 5.6 * Column 4 - Document and clause number defining requirement + Column 5 ~ Acceptance criteria, such as ‘60 bars for 1 hour’ or ‘deflection <1/ 750 of span’ * Column 6 ~ Defines the form or other document on which inspection and test results are to be recorded Columns 7 and 8 allow witness and hold points to be identified by the various parties, the first column being for the EPCM contractor, the second for the owner, insurer or author- ity according to need. Letters can be added in each of hese columns to indicate: + W = ‘Witness point’ means that the party so indicated will be given notice of the inspection or test, which shall proceed at the appointed time, whether the party's repre- sentative is present or not. + H = ‘Hold point’ means that the party so indicated must be present and the inspection or test shall not proceed without it. ‘The number of hold points should be kept within reasonable bounds. If there are too many, it will be difficult to honour them all. This can lead to delays and friction, In some con- texts quality can be adequately verified by simply inspecting andjor testing the finished works, but more often additional key inspection/test points have to be fixed at intermediate stages as the installation or construction advances, it being physically impossible to carry them out later. Procedures and method statements All activities having a significant impact on the quality of the works, and where information given in the contractual drawings and specifications is insufficient, shall be the sub- ject of a procedure or method statement to be submitted by the construction contractor to the EPCM contractor for review and acceptance before the start of the works. In the specific case of welding, these take the form of weld procedure57 Construction Contractors 57 specifications and the associated procedure qualification records. Other procedures and method statements may be necessary, for example, for operations such as casting of major concrete structures, heavy lifts, reservoir tank hydro tests and settlement checks. However, documents which merely para- phrase existing specifications are superfluous, lead to confu. sion and are thus to be actively discouraged. Each construction contractor shall set out in his or her SQP a list of procedures and method statements that it will be producing. In fact, for the more important ones, their creation, submission for approval and their eventual application should be contractual and the subject of a specific payment. Inspection and test records At appropriate points throughout the course of the works, the construction contractor must Propose and organize the inspections and tests defined in the inspection and test plan (ITP) mentioned in Section 5.5, giving appropriate notice to the EPCM contractor and any other parties indicated on the TTP for the operation in question. Inspection or test results obtained as well as the signatures of parties present/review. ing the document must be entered on inspection and test record (ITR} documents. Their format and contents shall be agreed upon before the start of the works. Ideally a con- struction contractor will already possess in its corporate pro. cedures a complete set of model forms corresponding to its normal scope of work, which can be readily adapted to the needs of each contract. This is the preferred arrangement as it enables the construction contractor's personnel to use docu. ments with which they are familiar. A set of ITR forms cov. ering the contract scope can be presented for approval with the ITP. Alternatively, the EPCM contractor may impose its own versions of the ITRs. Figure 5.3 presents a blank model TTR form upon which can be entered details of the project and materiel to be inspected, identifying the EPCM contrac. tor, owner and construction contractor, citing the reference document(s), and giving space for the inspection and test Points to be listed, allowing those which are hold points to be58 Process Plant Construction [oC couwcwr | INSPECTION AND TEST RECORD | Owner co {Undicate expe of materiel) Project no. Name/Logo Record no Project: ‘Construction contractor: Equipment: Contact no, Tag n. t Contract Supplier P.O no Reference document(s} TTF no, ‘Constr conte. | __EPCM cont. No. Inspection Test point inspected [Fold] Witnessed Initials/Date | poine |initials/Date} ‘Remarks and conclusions pages attched For construction contr Conforms to specified requirements Name: Signature: Date: tor | EOE nnn Namen Signature: Date Figure 5.3 Inspection and test record.5.8 Construction Contractors 59 indicated. As the inspection and test points progress, they can be signed off. At the foot of the page there is space for com- ments and signatures to sign off and close out the form. The time to start preparing the ITRs is as soon as possible after contract award. For example, if a construc- tion contractor possesses a model form for packaged boilers of which there are, say, three to be installed on site, it shall review the form against contract requirements and adapt and modify the inspection and test points accordingly. A separate copy of the form shall be filled in with basic information including designation, tag number and reference documents for each of the three packaged boilers and inserted in the construction quality file (see Section 5. 8) until required for recording inspection and test results. The same thing shall be done as far as possible for all materiel in all disciplines At the same time those inspection and test points which are chosen as hold points shall be identified with the letter ‘H in column 4 of the ITR form. Thus, when the time comes for an inspection or test, preparation is done and the form is avai- lable for immediate use. This will save a lot of time later and thus contributes to the smooth running of the inspection and test programme, Some ITRs will come from other parties, such as survey: ots, laboratories, concrete batching plants and suppliers and will in each case have a format specific to the organization concerned. Construction quality file Accumulating quality records as the works advance is not enough. If they are to become complete and accessible, they have to be assembled physically in a logical coherent manner. We therefore require each construction contractor to establish and continuously update a construction quality file (COF) The EPCM contractor will find it advantageous to impose on all construction contractors a standardized section title and numbering system. This can be taken a step further by the60 Process Plant Construction EPCM contractor supplying as free issue to each construc- tion contractor suitable folders and section separators. This canalizes the work of those responsible for the CQFs and facilitates the task of the EPCM contractor in monitoring the compilation of the documents and subsequently in reviewing and accepting them. It will also, during the future life of the plant, facilitate the task of anyone searching the COF for a particular document. The following is a speci- men outline list of contents to be adapted to the needs of a specific project. A Site Quality Plan B Materiel Procured by the Construction Contractor For all significant materiel purchased, sufficient documen- tation for future operation, maintenance and repair, which includes: * Unpriced copies of purchase orders + Material certificates + Suppliers’ instruction manuals € Specifications, Method Statements and Qualification Records For welding, these include all applicable: Weld procedure specifications + Procedure qualification records + Heat treatment procedures + Nondestructive examination (NDE) procedures This section could also include other significant proce- dures, for operations such as: * Heavy lifts ‘Tank hydro tests and settlement measurements Application of internal coatings for tanks and vessels Application of refractory materials D Personnel Qualification Records Lists and copies of qualification certificates of: * Welders + NDE operators and inspectors * ElectriciansConstruction Contractors. 61 E Inspection and Test Plans, and Inspection and Test Records A selection can be made from the list of documents cited hereunder corresponding to the discipline and scope of work of the contract, retaining the standard numbering for the sections chosen as appropriate for a given contract. EI General * Inspection and test plans * Inspection, test and measuring equipment calibration records E2 Site Preparation and Earthworks * Setting-out survey reports * Soil bearing test reports * Final survey reports E3 Piling * For bored piles, inspection and test records (ITRs} * For driven piles, ITRs both for prefabrication and for site works * Survey reports, out-of-position piles identified with cor- rective actions/concessions referenced back to noncon- formance reports E4 Concrete Batching Plant * Initial survey and audit report ‘+ Table of approved mix designs * Certificates of approved sources of course and fine aggre- gate, cement, additives and water *+ Test results of approved mixes B5 Reinforced/Pre-stressed Concrete Works, In situ and Prefabricated * Reinforcing bar material certificates * Tensioning records * Pre-pour inspection records * Pour records *+ Cube/cylinder crushing test records * Curing and final inspection records * Survey reports62. Process Plant Construction E6 Building Works * Foundation records ‘Main structure records : Roofing records Cladding and insulation records Building services records Finishing trade records E7 Underground Piping + Prefabrication records (see E15) + Compaction test records for bedding and backfill * Pipe site welding/coating records « Pipe, fittings, manholes, etc., lay and joint records + Hydrostatic test records E8 Roads and Parking Areas + Material certificates + Asphalt batching plant records + Bearing test records « Finishing, curbing, drains and marking inspection records * Survey reports E9 Structural Steelwork Prefabrication Material certificates Weld inspection records NDE records Destructive test records Surface preparation and paint records Dimensional inspection records Weld maps for traceability Final inspection records prior to shipment E10 Structural Steel Erection Grouting and bolting down records Bolt torque records Structure level/plumb survey records Site welding recordsConstruction Contractors 63 E11 Site Erected Storage Tanks Foundations records (see E2 and E8) Prefabrication records (see E9) Site welding records Site NDE records Site destructive testing records Site dimensional check records Site vacuum box test records Hydrostatic test/settlement measurement records Site surface preparation coating/painting records E12 Static and Rotating Equipment Erection Level, verticality, positioning and orientation inspec- tion records Grouting-in and bolting-down records Internals and accessories installation records Pressure test records Shaft alignment records ‘Auxiliary systems check records Preservation and maintenance records E13 Lifting Devices Assembly inspection records Electrical test records Safety devices and limit switch test records, No-load-test records Safe working load and overload test records. E14 Refractories Qualification test records Periodic sampling test records Repair records Stage and final inspection records E15 Piping Prefabrication Material certificates ‘Welding inspection records NDE records Destructive test records64. Process Plant Construction E16 E17 ELS. Heat treatment records Dimensional inspection records Surface preparation and painting records Weld maps for purposes of traceability Final inspection records prior to shipment Piping Erection (a seamless continuation of records estab- lished during prefabrication) * Welding inspection records NDE records Destructive test records Heat treatment records Pipe support records Flange bolt torque records Overall conformity to piping and instrumentation diagrams (P&ID) records Flushing/ait-blowing/reinstatement records Hydrostatic test records surface preparation and painting records Weld maps for purposes of traceability Electrical Installation + Equipment installation inspection records Cable support/protection inspection records * Cabling ITRs * Earthing ITRs « Equipment test/relay setting records * Lighting and low power circuits ITRs Instrumentation and Control * Field instrument, control valves and relief valves pre~ installation inspection and test records and calibration records + Field instrument, control valves and relief valves in situ installation/connection inspection and test records Cabinet and console installation inspection records Cabling ITRs Earthing ITRs Piping systems ITRs Loop test recordsConstruction Contractors 65 E20 Painting * Material certificates + ITRs E21 Insulation * Material certificates * Inspection records F Nonconformity Reports (NCRs} Lists and copies of all NCRs relevant to the contract cack complete with supporting documents G ‘As-buile’ Information. A complete list of ECM. contractor's and construction con- tractor’s drawings distinguishing between: * Those drawings marked up in red to show site modified ‘as-built’ * Those drawings already in effect ‘as-built’ without modification It may be more practical to deliver the ‘marked-up’ draw- ings separately rather than physically including them in the COE (see Section 6.9). H Incomplete Works A list of works included in the contract but which have not been for valid reasons completed (see Sections 114-116 and Figure 11.2) How many copies of the CQF are needed? The answer is as few as possible consistent with project needs. An excessive number of copies turns the site office into a printing shop and more importantly brings the system into disrepute. The sbso- lute minimum isa single CQF made up of original documents, but itis safer to establish a second COF copy in another loos, tion as a back-up. Very special attention must be focussed on documents required as part of the authorities approval pro. cess. The best way to ensure that a construction contractor is motivated to produce quality records and to continue to build up the CQF is to subject payment for works completed to the Presentation of the corresponding quality records,66 Process Plant Construction Documents in hard copy are needed for the day-to-day quality management of the site and also for the question df authentic signatures. If documents are to be scanned to present the CQF in electronic format, the necessary software) atabase must be provided in good time. 5.9 Inspection, measuring and test equipment For results to be valid and be perceived as such, it is essen- tial that all parties have confidence in the accuracy of the inspection, measuring and test equipment used. Those directly concerned are in the first place the construction contractors and special-service providers, but there may svall be others. This implies that their quality plans include provision for identifying and tagging all such equipment, defining the types, methods and frequencies of calibration required, either at timed intervals or immediately before lise, and setting realistic limits of acceptable tolerances. ‘The whole programme must be duly recorded on suitable documents, with responsibilities clearly defined for setting tup and for ongoing implementation, to be audited at regular ineervals. Items to be included for regular checking an¢ cali bration can include: «+ Levels and theodolites * Weighing equipment «+ Pressure gauges « Laboratory and test bay equipment « Electrical test apparatus insite there were 19 principal contract had been awarded on is from a short pre-selected list of s, the coritracts fan smoothly, any claims forConstruction Contractors 67 extra payments being resolved on an equitable basis. As part of the end of project report, the quality of the works completed by ‘each contractor was assessed. The overall ratings for quality of the works were as follows: * Unacceptable 1 firm ‘Concerning the ‘Unacceptable’ works, which were performed early in the construction phase, this was due in large part to poor Performance on the part of the management and supervisory staff the construction contractor had sent to site. Not surprisingly, the contractor performed badly in other areas, but some of the blame must go to the EPCM constructor whose own supervisory staff were at the time under strength. The contract was terminated, remedial works being undertaken by others, Both companies whose works were rated as ‘Poor’ had inadequate support from head office, mediocre management on site and not enough of their own skilled personnel to stiffen up their teams made up of a very large majority of temporary workers. Firms with an ‘Excellent rating ‘gave good support to their site, assigned high-quality managers and supervisors and drafted a solid core of their own long serving ‘skilled workers. In general, performance in other domains, such as satety and respect of the schedule, was also excellent. Lessons learnt + The main factor affecting quality of the works which emerged was the human one, that is, head office support, site management and supervision. A too large proportion of temporary staff could have a detrimental effect. * This needs to be taken into account during bid clarifications and contractor selection.Construction-Engineering Interface 6.1 Introduction ‘The EPCM contractor's engineering department (ED) will have been responsible for designing the plant and for the tech- nical input to purchase orders and construction contracts. ‘These tasks will not have been fully completed at the time the site is opened. The ED will now assume the additional responsibility of providing the EPCM contractor's site team with the following inputs: + Fumishing drawings and other documents ‘approved for construction’ ‘+ Answering site-generated engineering queries © When requested, defining the resolution required for site nonconformities + Providing technical liaison with utility companies, the insurer and authorities * Generally providing engineering support to the construc- tion effort + Overseeing site modifications and their recording on ‘as-built’ drawings * Giving support for and participating in final inspection and testing leading to ‘construction completion’ and ‘tumover’ to the owner6.2 6.3 Construction-Engineering Interface 69 So where should the interface be between construction and engineering? The availability of electronic means of commu. nication and transmission of documents certainly facilitates exchanges between construction personnel on site and the Read office ED. However, itis preferable, even essential, for the ED to be represented on site, by at least one person, Lec us call him or her the site engineer, to be the focus and the Gommunication channel forall ngineeringmatters. Depending on the size of the project there could be, not just one individe ual, but a team as suggested in the typical site organization chart presented in Figure 4.1 Types and origins of engineering documents The following classes of engineering documents will be required on site during the construction phase 1 EPCM contractor's specifications and drawings * Suppliers’ documentation corresponding to materiel furnished * Construction contractors’ specifications and drawings [When an clement of design is included in the contract seope] * Standards and codes of practice ‘An order of precedence between the different types of document should have been defined early in the project to be applied to any inconsistency which may come to light. Each of these categories of documents is discussed in more deca hereunder. These documents may be in hardcopy and/or elec- Gonic format to meet project requirements, but hardcopy documents are required at the work face by, those directly involved in construction, erection, inspection and testing EPCM contractor's Specifications and drawings These documents will have been created in the EPCM con- ‘ractor’s engineering department (ED) from the starting point70. Process Plant Construction of the basic design provided by the owner. They will have gone through the iterative process of review and comment within the ED and with other parties involved, in particular with the ‘owner and where applicable with the authorities concerned. Some of them will have been included, at least in preliminary form, in the bid packages and then as part of the construction. contracts. They will be issued to the EPCM constructor’s site team at ‘approved for construction’ (AFC) status, for forward issuing to the construction contractors for execution. There may be cases where preliminary versions of drawings may be ‘sent to site for information, but this should be the exception and their non-AFC status should be boldly indicated. ‘There will be a number of basic specifications for each dis- cipline, defining the ground rules, and then specifications applicable to specific works. It is important that the extent of applicability of the basic specifications to each construction contract be defined as soon as possible. If only a very small part of a given basic specification is applicable to given contract, it should be clearly stated. 6.4 Suppliers’ documentation ‘A purchase order (PO) from the EPCM contractor is the basis on which a supplier will provide materiel. The PO will require the supplier to generate a certain number of documents. These can include: * General arrangement drawings including weights, and lifting details ‘* Drawings of anchor bolt arrangements © Drawings of electrical and piping connections, thatis, flange and terminal box details * Electrical, hydraulic and pneumatic schematics and connection diagrams Data sheets for components Unpriced copies of suborders Material and test certificates for components Spare-parts listsConstruction-Engineering Interface 71 *+ Records of inspection and tests carried out before shipment * Certificates issued by an authority in the country of manufacture * Packing and shipping instructions * Erection instructions * Lubrication charts * Site inspection, test, start-up and commissioning instructions *+ Operating and maintenance instructions Certain of these documents will be transmitted to the EPCM contractor for review and eventual approval before ‘manufacture begins. When a supplier document once approved replaces an EPCM contractor's document, there must be a mechanism to formalize this change. For example, should the EPCM contractor create a preliminary schematic diagram for an electrical switchboard in order to define requirements, and the supplier from this starting point produces and manufac- tures according to its own definitive diagram duly approved by the EPCM contractor, it is the latter diagram which must be used on site during erection and testing. It is important that any modifications carried out on materiel to correct anomalies detected during shop inspection and testing are incorporated into the corresponding supplier documents to be raised to ‘as manufactured’ status. Other supplier documents will be verified at source by the EPCM contractor's inspectors. The PO will also define the number of copies and the presentation, that is, hardcopy and/ or electronic format. The documents from each PO will be assembled into a single volume or a set of volumes called ‘manufacturing data book’ (MDB) or something similar. It is advantageous that the format and presentation of these documents be standardized across all of the POs in order to facilitate their use. The MDB should be reviewed by the inspector before dispatch. In an ideal world the MDB would be available at the time that materiel is shipped, but in practice too often its assembly drags on, with the various documents scattered throughout the supplier's premises. Even when it is finished, it may not be where it is wanted on site. Linking a substantial72. Process Plant Construction payment to the delivery of the MDB should speed up delivery. ‘Another approach would be to make special arrangements to ‘ensure delivery of copies of those documents required early on-site for erection, including, in particular, general arrange ment drawings and anchor bolt drawings necessary for the associated civil works. 6.5 Construction contractors’ specifications and drawings For some contracts of a specialized nature, the scope of work of the construction contractor may include a design element giving rise to specifications and drawings. This could be the case for a cooling tower or a water treatment plant for example. These will go through a review and approval sequence with the EPCM contractor. They will be issued to site at ‘approved for construction’ status. When a construction contractor's document supersedes an initial EPCM contractor document, the change needs to be formalized. 6.6 Engineering standards and codes of practice Engineering standards, including codes of practice, are the basis on which a process plant is designed, specified and built. ‘They act as a common currency between the involved parties and enable full use to be made of accumulated knowledge and wisdom. ‘They can originate from international bodies such as: * International Organization for Standardization (ISO} « International Electrotechnical Commission (IEC} ‘There is a large range of standards published by or under the auspices of national bodies such as: « British Standards Institution (BSI) * Association Francaise de Normalisation (AFNOR)Construction-Engineering Interface 73 + Deutsches Institut fiir Normung (DIN) * American National Standards Institute (ANSI) ‘The publications of several American private organizations are often specified on process plant projects worldwide, the main ones including: + American Society of Mechanical Engineers (ASME) * American Society for Testing and Materials {ASTM} + American Petroleum Institute (API) + American Welding Society (AWS| On some process plant projects owners will be applying their ‘own standards and codes of practice. These can be significant and their implications must be understood and taken into account, Then there are also various standards and guides published by bodies of manufacturers, for example: * Tubular Exchanger Manufacturers Association (TEMA) ‘+ Conveyor Equipment Manufacturers Association [CEMA] The applicable standards are selected at the basic design stage 50 as to permeate detailed design and procurement. By the time construction is at hand, the requirements of the selected standards are already embedded in the documents received on-site ‘approved for construction’. However, there are some areas where the standards affect directly the site construction, erection, inspection and testing processes. These must be identified as soon as possible and access to them made avail- able to those on site. Unfortunately, on some Projects, there is a tendency in specifications to state that the materiel or works must com- ply with a multitude of standards, the objective being to cover all foreseeable possibilities, putting the onus on the supplier or construction contractor to ensure compliance. At the bid stage, the potential supplier or construction contractor may well simply ignore these requirements, or might not have the time to take them into account, and furthermore the exact application of the standard(s) may not be resolved during74 Process Plant Construction 6.7 bid clarification. As a result an ambiguous situation can develop on site. The only solution is to grasp the nettle as s00n as possible to clarify the situation, defining exactly not only which standards apply, but which specific sections of the documents are concemed. If a standard has, say, 200 pages, but only the content of a few of the pages applies, let us identify them as soon as possible. Document control ‘The EPCM contractor's document control system wil! be operative from start to finish embracing all phases of the project. The site document control system will be as it were an extension of the over all project system. The letter normally includes the following features: « Alphanumeric document identification encoded with such information as discipline/system/process_unit/off-sites/ infrastructure, and so on * Master lists of EPCM contractor's documents includ- ing drawings, specifications and requisitions, initially as lists of documents to be produced, subsequently recording generation of documents and successive revisions status « Similar lists for suppliers’ and construction contractors’ drawings and specifications provided contractually and inte grated into the project alphanumeric identification system « Registers listing equipment, pipe lines, cables, valves, instruments, ans so forth, with salient information indi- cated for each item + A dispatch facility for issuing documents to the various interested parties, recording all transactions made ‘An archive covering all documents past and present ‘The site document control function is sometimes treated as an administrative matter, but it is much better if it is under the authority of the site engineer. This function needs the necessary procedures, staff, computing facilities and suitably equipped and furnished offices. Responsibilities68 Construction-Engineering Interface 75 are essentially: * The receipt and registering into the site system of docu- ments coming from all sources * Issuing documents both within the EPCM contractor's site organization and to the construction contractors * Ensuring that out-of-date revisions of documents are withdrawn * Establishing and updating records of all the above transactions * Archiving for reference all revisions of all documents received Having engineering documents on site is of little use if they are not readily accessible to authorized persons. There is thus con siderable advantage to be gained in establishing and maintain. ing an open library space with adequate viewing facilities, both in terms of computing terminals and large sloping desks where drawings can be spread out. Regarding electronic transmission of documents between head office and site, see Section 6.10. Engineering site queries A member of the EPCM contractor's site team, the owner's Tepresentative or a construction. contractor, in fact any con- cemed party, may initiate a query concerning the on-site interpretation or application of an engineering document. The query could typically concern: ‘+ A proposed substitution of material + The resolution of a clash between two disciplines * The difficulty of applying specified requirements to site conditions * A mistake, real or suspected, in an engincering drawing already at ‘approved for construction’ status It is important that each query is documented and appropriately processed. In Figures 6.1 and 6.2 there are76 Process Plant Construction TEPCM contractor SITE ENGINEERING QUERY RECORD | Report Name/Logo NO. enon ‘Owner: vows | Contedctor/Supplier: Project no. | Gonteace/P 0. no - Project: * | Gontract/P.0. ‘A QUERY [Eventually with proposed solution) Reference document: Originaror Representing: Name: Signature Appendices AL to An. attached Date: [Aries AoA ade? —vovreee— REPLY [To be decided by site engineer, alone or after consultation with engine eae department or others, Copies of relevant correspondence to be attached] ‘Appendices BI to B .-.- attached ¢.cLOsE.ouT ‘Fic solution presented in Section B has been actioned, so this site engineering query is now closed out. Site engineer Name: Signature Date: Appenidices C1 to C..nw attached Distribution: Figure 6.1 Site engineering query record.Construction-Engineering Interface 77 ‘yoda! seis pue Boj Axonb Buwosutbue eis 29 eunBjy oT ] TRO TTS | PORTS mi Tormey | car TR PRUNE OMT ABA TWO sorta | RIG | oolong lig FP ponpdq, Borja, “ow sfong sonvenwes woag78 Process Plant Construction two forms which together are the basis of a procedure to manage site-generated engineering queries. It works as follows: « The originator uses Part A of the form proposed in Figure 6.1, site engineering query record |SEQR), to define the query and where applicable propose a solution, add. ing to the form any attachments he or she may consider necessary to illustrate the query; he or she presents the form and attachments to the EPCM contractor site engineer. «« The latter shall number the form and register the query into the site engineering query log and status report (SEQLSR), a model of which is shown in Figure 6.2. «« The site engineer is either able to answer the query himself or herself or has to refer it to the EPCM contractor's head office engineering department. « Once it is defined, the site engineer writes the answer/ solution on Part B, with attachments if necessary, and sues the form to the originator for information and where applicable as an instruction. «The originator receiving the instruction executes it and confirms in Part C that the instruction has been followed. « The query is closed out by the counter-signature of the site engineer in Part C. « The site engineer tracks the status of all engineering site queries through to close-out by means of the SEQLSR. Some overlap may be perceived between, on the one hand, fn ‘engineering query’ described above and a ‘nonconfornity’ discussed in Chapter 8. The dividing line between the two concepts is that should an anomaly be identified before the works have started, it can be processed as an engineering query, and if detected once the works in question have been started or even completed, then it can be treated as a noncon- formity. Borderline cases must be determined on a common sense basis.6.9 Pdeke Me aunaranran Construction-Engineering Interface 79 ‘As-built’ drawings Right at the beginning of a project a policy decision must be taken to ilecide: + What type of ‘as-built’ information must be recorded + By whom, how and when * At what point and in which manner is the information to be consolidated and eventually handed over to the owner As a minimum, site-generated changes to underground works such as piling, drains and buried cables as well as to electrical and instrument connections and other items affecting safety or operations must be recorded. Primary responsibility for this can best be included in the contracts awarded to construction contractors, but this needs very close on-going proactive supervision on the part of the EPCM con- tractor, in the person of its site engineer or one of his or her assistants. It is important that a specific list be established of drawings that are eventually to be raised to ‘as-built’ status. Input information can be derived from engineering site query records and nonconformity reports, but most of all as the works progress by going out on site to check what has been done against the drawings and marking-up the latter in red to record any divergences. When does the operation stop? Whilst there will be ‘as-built’ information generated during construction, it is, above all, during the commissioning and start-up phases that anomalies become apparent and modifications are made. At some predetermined point the marked-up information must be inputted into the drawing data base to raise the drawings therein to ‘as-built’ status. This should be done by the staff of the site engineer rather than in the head office, as. it permits any queries to be clarified by a visit in situ. The same principle applies to construction contractors’ drawings, Itis important to establish as soon as possible when and how ‘as-built’ information is transferred to the owner, who will from then on be responsible for any further updating (see Section 11.3).80. Process Plant Construction 6.10 Information technology infrastructure In recent years there has been a rapid development of progres- sively more and more powerful information technology (IT) Combined with increased capacity to transmit information Over telecommunication channels. This has transformed the manner in which information is created, stored, accessed, processed and transmitted. As a result process plant proj- vets today can be organized around an integrated, interactive information management system, where operations such as approvals, revisions, issues and transmission can take place jrithout handling hard copy, that is to say, a paper-free sys- tem, However, there is a gap, slowly narrowing, it is true, but nevertheless present, between what the IT industry can offer and what can be made to work simply, effectively and reliably on the average process plant project, in particular on the construction site. ‘At head office level, the information system could span the EPCM contractor, the owner and possibly some of the major suppliers and construction contractors depending on the degree to which management of the project is integrated. ‘Typically the EPCM could create and manage a server, which would host the documents prepared by all of the participants, cach of whom could update its own data base from that cf the Server, Alternatively, for a smaller project or where none of the partners possessed the necessary level of IT capability, the task of running the server could be undertaken by a special service provider. Either way there would be IT professionals monitoring the system, who would be able to intervene in case a problem occurred. However, with the opening of the construction phase, the successful extension of the project information management System to the EPCM contractor's office on the site where the plant is to be built will depend on the following requirements being met: © There has to be a secure, dependable telecommunication link of sufficient capacity between head office and site depending on the geographical location of the site, this could be difficult to obtain}Construction-Engineering Interface 81 * The site director must be IT competent, enthusiastic and must want to make the system work * There has to be a resourceful IT technician on site, who should be able to solve rapidly on his own any problems which may arise, this being especially vital for a site in a remote location, * All future users based on site need to receive appropriate and sufficient training. * Time is of the essence; so the system on site must be ready to be set up and rendered operational within an acceptably short time. Most important of all is that the system hardware and soft. ware be simple, robust and proven, with all the anomalies already expunged. A critical construction site with a very tight time scale is no place to resolve the teething troubles of a new untried system. It is better by far to have a basic sys- tem that works rather than one with the potential to provide 4 more extensive range of functions, but which is unreliable Depending on circumstances, if the telecommunications link were unsuitable, there could be occasions when it would be advantageous to send by courier CDs on which are registered large numbers of documents, In defining the requirements for the extension of the project information system to the site, the following questions need to be addressed: * What are the documents present in the main project database that can be accessed, viewed, downloaded and Printed by EPCM personnel on site (e.g. specifications, drawings, equipment lists, data sheets, etc.}? * Do these documents only become available when they have reached a certain status (e.g. ‘approved for constrae. tion’)? * What is the mechanism for alerting site as new documents become available, or existing ones are modified? * Which documents present in the project database, if any, can be modified from site (Pethaps only to raise them t ‘as-built’ status)?82 Process Plant Construction + What are the restrictions to be placed on individuals for access to documents on a ‘need to know’ basis and whet is the password system to enforce them? + What are the templates to be used for exchanges between head office and site as part of formal procedures (e.g. for processing engineering queries or nonconformities)? ‘The latter point is essential as unrestricted email exchanges can lead to formal procedures being bypassed and devaled, with all the potential dangers that that can represent. ‘The persons carrying out the physical work of building the plant will require hard copies of specifications and drawings. ‘The question then arises as to when and where the transition from electronic format to hard copy is made. Whilst it can be desirable for construction contractors on site to be able to screen view documents relevant to their respective contracts, do we expect cach of them, even the smaller ones, to invest in the equipment to print out the larger-size drawings? Do they have on site sufficient IT capability to participate fully in the EPCM contractor's IT structure and resolve any problems which might arise? Might it not be too complicated? There is a strong case for each new batch of ‘approved for construction’ drawings and other documents to be printed out by the ECM contractor on site and to be issued as hard copy in a traditional manner under cover of a transmittal note. This could give bet- ter control, both technically and contractually, especially as at the same time superseded revisions can be removed. ‘At the limit there could be circumstances, for example, on a small site situated close to head office, where it might be cheaper and simpler to send packets of documents to site by post or by courier rather than getting bogged down in the provision of an IT system disproportionately complicated for the size of the job. Tis evident that the IT plays a vital role in the over all site quality management system, so it needs to be continuously monitored and subjected to periodic audit.Construction-Enginecring Interface 83 0s on several floors of a steel-framed build- nd electric and instrumentation and control cabling acked with numerous wall and floor penetrations. The jon of structural steel had to be were fixed. Inevitably, pip- i This gave tise to a large number of ding to modifications, which were taking a long time to fesolve, as there was not a strong engineering presence on site and the EPGM contractor's head office engineering department was becoming involved in the next project. Although the construction contractors’ managements obviously perceived the modifications as an occasion to boost their profits on the project, their execution and supervisory staff were to say the least demoralized, ‘The situation was eventually improved by sending design engi neers and draughtsmen to site to decide changes on the spot with a streamlined procedure for engineering review and updating of ‘drawings, all tied in with a rapid change order system. Lessons learnt * This project may have been reaching its limits of ‘schedule compressibility’ ‘+ When prefabrication and construction have to proceed with many design details not yet fixed, extra space must be allowed, even at the cost of a slightly bigger building. Bigger wall and floor open- ings, and more of them, can be incorporated into the original design at little or no extra cost, to give flexibility in case piping and cable runs have to be rerouted. Excessive openings can always be filled in afterwards. * Given such a situation, the persons who design the plant can deal with engineering problems better and more rapidly if they are based on site,Materiel Management 7.1 Sources of materiel Depending on the contractual strategy decided for the preject (see Section 1.4], materiel received by the construction contractors for incorporation into the plant may come from several different sources as listed hereunder: * Procured by the EPCM contractor head office, then issued free to the construction contractors « Procured by the EPCM contractor site office, then issued free to the construction contractors « Free issued by the owner to the EPCM contractor, then in turn issued free to the construction contractors. + Procured directly by the construction contractors Major items of equipment are normally procured by the EPCM contractor's head office. The EPCM contractor's procure: ment from the site office is generally limited to minor items purchased locally for speed and convenience. Items issued free by the owner may be special process equipment. For civil works and buildings, the construction contractors normally procure items such as pre-mixed concrete, reinfore- ing bars, doors, windows, and so forth. Concerning piping con- tracts, pipes, valves and fittings may be procured either by the7.2 Materiel Management 85 EPCM contractor or by the construction contractor according to the strategy retained. The situation is similar for electrie cables, fittings, cable racks and trays. In the specific case of a construction contractor designing and building a complete self-contained facility, it will probably procure the complete range of materiel necessary. Effective management of materiel on site is an essential clement of mastering quality. This chapter is focussed on materiel management exercised by the EPCM contractor, but the principles evoked apply equally to the construction contractors. Figure 7.1 is a materiel flowchart outlining the Passage of materiel from the different sources to its incorpora. tion in the works. Purchase orders Purchase orders (POs) can be broadly classified into the following categories for the supply of: * Items of equipment such as pressure vessels, transformers or pump sets * A range of material for a given discipline such as piping, electricity or instrumentation * All materiel for a multidiscipline ensemble such as a major turbo-compressor unit, including control panel and auxilis. nies, virtually a self-contained project within the project In an ideal world, POs are placed with competent suppliers, cach operating an effective quality management system to ensure that the materiel conforms to the specifications, is inspected and tested, and is properly packed and treated with care during shipment. On arrival on site, materiel can then be readily incorporated into the works with no problems Unfortunately, reality sometimes falls short of this ideal, and S0 a procurement problem becomes a site problem. Engineering follow-up, inspection at source, expediting and shipping are outside the scope of this handbook, but it is important that all parties recognize that attention paid to procurement pays.86 Process Plant Construction ‘SOURCES OF MATERIEL ‘Suppliers with ‘Suppliers with “Supplirs with Epc contactor | | EPCMontractor | | Owner | | consiracion head offce POs" | | local ste POs* contractor POs EPCM CONTRACTOR ‘CONSTRUCTION SITE STORE co IR ‘SITE STORE Inspect Inspect matril smatoriel Quarantine ‘Quarantine materiel materiel __ ject Reject materiel materiel tear accept Acdept Clear, acept Actent ‘mato materiel materiel mater! toro materiel Store material (and maintain tit (and maintain tit necessary) ‘necoesary) {sue materiel Issue materi ‘CONSTRUCTION CONTRACTORS ‘CONSTRUCTION/ERECTION TEAMS Incorporate materia into works (and continue maintenance if necessary) Purchase order. Figure 7.1 Materiel flowchartMateriel Management 87 dividends in problems avoided on site. In particular, close care and attention must be directed on the following areas before materiel is shipped: «= Interfaces — anchor bolt arrangements, pipe flange connections, cable glands and cable terminals «Trial erections and dimensional checks ~ making sure items will fit together * Functional and performance tests ~ making sure everything works «System tests by hooking up the constituent items — checking compatibility and functionality * Labels and tags ~ making sure that all items are correctly identified + Authorities - meeting the requirements in the country ‘of manufacture and the requirements of authorities of the country in which the plant is being built as well as those of the utility companies and the insurer = Surface preparation and painting — properly carried out and not a rush job just before shipment + Packing - taking into account the form of transport, the cli: matic conditions and possible long delays waiting for cus- toms clearance + Packing lists - complete, accurate and tied back to the items of the purchase order to facilitate reception and identification on site * ‘As manufactured’ drawings, lubrication schedules, erec- tion, commissioning, start up, operating and maintenance instructions and spare parts lists ~ delivered to the site on time when they are needed * Spare parts for commissioning and start-up ~ ordered in time so that they can be delivered with the equipment Sub-contractors of a supplier - need to be closely monitored too Over all, problems are much more easily dealt with at the supplier's before shipment than after arrival on site. This is especially true when the site is in a remote area with little in the way of industrial infrastructure. However, this does not preclude the shipment to site of a major item of equipment,88 73 7A Process Plant Construction vital to maintain the construction schedule, but with a minor component missing, which can easily be fitted later, such as a missing pressure gauge on a pump. In these circumstances the decision to ship must be taken by the engineering department and not left to the discretion of an expeditor. Materiel storage facilities The EPCM contractor needs to build a warehouse and enclose, drain and surface an outdoor storage yard of adecuate dimensions to accommodate the types, volume and rate of throughput of the expected materiel. The EPCM contractor will possess a detailed procedure defining the type of storage for each category of materiel, either in the open, under cover, within a building under ambient conditions or in an air- conditioned space. The facility shall include an area for receiving and inspecting incoming goods and a quarantine zone. A grid reference system shall be established throughout the warehouse and yard to identify the geographical position of each item stored. For reasons of size and/or weight and to avoid double handling, some items of equipment may be deliv- ered directly to their place of installation. Another case where equipment is delivered directly concerns delicate items, in particular computing equipment, to be installed in a finished building, with its air-conditioning system already in operation, In these cases the equipment should still be submitted to the normal administrative procedure for receiving and processing incoming materiel, followed by its formal issue to the con- struction contractor concerned, even though the equipment has not physically passed through the warehouse. Materiel control procedure The EPCM contractor normally possesses a corporate mate- riel control procedure, which can be adapted to each spe- cific project. Items are listed at the requisition stage with an alphanumeric identification, and then followed through75 Materiel Management 89 Procurement, release for shipment, shipment, arrival on site, then issued for construction. Materiel control on site is thus facet of a larger system covering the whole project. Electronic exchange of information between head office and site is discussed in Section 6.10. Ideally the related software should be linked to that used for material take off, particularly in the piping discipline, so chat picking lists derived from piping isometric drawings can be compared with lists of piping mate. ial available on site. Thus, priorities and shortfalls can be iden. tified. As far as the site is concerned, the EPCM contractor's materiel control section’s activities embrace the following. * Incoming inspection of materiel for conformity to purchase order requirements in terms of quantities, marking, trace. ability to accompanying documents and absence of damage. * Storage of materiel, with, where necessary, regular ongoing documented inspection and preventative maintenance ‘* Issue of materiel to construction contractors correctly documented. * Establishment and continual updating of records to enable details of materiel available on site to be known at any moment. Once materiel has been issued to a construction contractor, the latter takes over responsibility for it up to the time of completion and turnover of the works. The construc- tion contractor is equally responsible for materiel it has procured directly. This implies the creation and operation by the construction contractor of a materiel control system incorporating those features present in that of the EPCM contractor, Incoming inspection, ongoing inspection and maintenance Site materiel control procedures habitually incorporate incoming administrative inspection based on the well-known concept of an ‘over, short and damaged (OS&D) report’, which90. Process Plant Construction is exactly that. Any discrepancies are resolved by informing the EPCM contractor's head office procurement department, which will, jf necessary, contact the suppliers and/or ship- pers as may be appropriate. It is highly desirable that this ‘administrative inspection by the warehouse staff based on the establishment of OS&D reports be consolidated by an incom- ing technical inspection carried out by suitably qualified staff seconded on a part-time or full-time basis from the EPCM. contractor's construction supervision team. Their objective will be to: «* Identify technical problems that may have slipped through the ‘at source’ inspection system run by the EPCM contrac tor's head office «Identify those items requiring ongoing inspection and maintenance The depth of incoming inspection can compensate for any shortcomings in the control exercised by the EPCM Contractor's head office at the supplier's before shipment. In Section 7.2 we have already highlighted the importance of resolving materiel problems at the supplier's rather than on site. However, in view of the complexity and pace of a process plant project, in spite of all the care taken, some materiel may be delivered with physical or quality documentation prob- ems, be they immediate or potential. So let us detect them as soon as the materiel arrives, so that corrective action can be launched without delay. ‘Another reason for incoming inspection is to identify where there is a need for ongoing inspection and maintenance. Items concemed included inter alia: « Vessels under inert gas purge, whose pressure has to be regularly checked and if necessary topped up «+ Electric motors whose shafts have to be regularly rotated by hand « Equipment enclosures to be kept free of moisture by use of desiccant bags or anti-condensation heaters connected to a temporary electrical supply, with where appropriate periodic checks of insulation resistance7.6 Materiel Management 91 Once identified, the items concemed will be subjected to regular inspection and maintenance. A model proce- dure is proposed based on the use of three forms shown in Figures 7.2-7.4. This programme must take full account of the suppliers’ instructions. Where appropriate, once equipment has been issued to the construction contractor, the latter becomes responsible for continuing the inspection and maintenance programme. Traceability Traceability is the mechanism by which it is possible to trace an element of the works from its final position on the site back through the various erection, prefabrication and manufacturing processes to its origins and to information concerning its characteristics. Its purpose is: * to be able to prove that materials and processes used conform to specified requirements (to meet authorities’ exigencies where applicable) * in case a problem arises with work in progress or with the finished works, to enable other locations likely to expe- rience the same difficulties to be identified, thus enabling the problem to be treated in its totality The physical essence of traceability is the cross-referencing between documents and from documents to the correspond. ing materiel and works. This means a traceability trail has to be established that can be followed linking all elements concemed. The level of traceability required must be defined as early as possible in writing and must be a contractual requirement in the purchase orders and construction con- tracts concemed. Special care must be taken to ensure that authority traceability exigencies are incorporated right from the start. Specified requirements should not be exceeded Excessive zeal in this direction is unnecessary, wastes money, can create frustration and diminishes the credibility of the mandatory requirements for traceability.92 Process Plant Construction [pGM contactor | srg INCOMING INSPECTION RECORD | cong Name/Logo EOUIEMENT - ‘Owner. Supoier - Projet no POno. Project BS 7.0. em no, on Shipping reference: = Equipment : : Tega. Reference documents : TRecepable emake noes "Yes [No] __ (Action eguired} “Transport damage Name/data plate [Anchor bolt hole configuration, anchor boles. Centee lines marked Pipe cannections/nozzle orientations flanges/gaskets/screwed Eleetricalfinstrument junction boxes) flands/earthing connections Internals/externalstrial erection Insulation, projections and supports Painting state Spare pats received Erection, maintenance and operating instructions received airconditioned” Ongoing inspection and maintenance: i resistance/other” “Delete as necessary “Type of storage required: outdoor/undercover/indoors/ shaft rotation/beating/dessicant bays/insulation ner gas purge! Distribution or EPCM. Name: Signature: Date: Figure 7.2 Site incoming inspection record — equipment.Materiel Management 93 ‘Traceability material/documents Protection arrangements Record No, P.O. item no, Material; . Reference documents: , ‘Remarks {nection point (Action required) ‘Transport damage Marking/tagging Mill/test certificates received ‘Type of storage required: Outdoos/undercaverfindoors* Maintenance required, if any* ‘Delete as necessary Distribution FocEPCM contractor Name: Signature: Date: Co Figure 7.3 Site incoming inspection record — es ‘material,94 Process Plant Construction + "EPCM contractor SITESTORAGE INSPECTION AND — |g Name/Logo ‘MAINTENANCE RECORD No. ‘Owner: supplier: Project no. P.O. no, Project BO. : Equipment nnn "Tago co perf inspoction/mainenance: Inert gas purge/shaft rotation/heates|desecant ‘bagafinsulation resistance check/other’ ‘Frequency: daily/weetly/ monthly other” onsen Delete as necessary Planned | Actual | Acceptable date | date_[Yes [No | (Action required) Distribution For EPCM contractor Name: Signa “I Figure 7.4 Site storage inspection and maintenance recorMateriel Management 95 Traceability requirements on site can vary widely from one project to another and can be required in any discipline. Appendices A and D discuss traceability respectively in the context of concrete arfd of welding. 7.7. Spare parts At the beginning of a new project the owner may decide that for some items of materiel the types, models and manufac- turers specified shall be similar to those present in its exist- ing plants, as this will simplify subsequent maintenance, in particular concerning the management of spare parts, with considerable savings in cost. This is particularly true when the project is an extension on the same site of an existing plant, and even without such a precedent, there is a good case for standardizing as much as possible across the different con- tracts and purchase orders. Certain major long-lead items, such as say a spare rotor for a turbine, must be ordered at the same time as the rotor of the machine concerned, so they can be manufactured together. For other items a scale of provision must be decided, generally in terms of quantities required, on the one hand for commissioning and start-up and later for say the first 2 years of commercial operation of the plant. There is an obvious advantage in including spares in a sup- plier’s scope from the beginning, to be delivered at the same time as the main materiel. On site they must be carefully stored and identified. At turnover, transfer of spare parts will be made from the EPCM contractor's site store to that of the owner. CASE STUDY On the construction site of a process plant, pipework prefab- rication and site erection were already well advanced when a number of significant surface defects on piping material came to light, potentially putting into doubt the integrity and safety of the Continued96 Process Plant Construction CASE STUDY (Continued) nga finished installation. A third party competent in metal. gy and nondestructive examination was engaged to inspect all known defective items, identifying the manufacturers and heat numbers concerned. Fortunately, from the very inception of the two piping ‘contracts, an appropriate traceability system had been instigated and diligently applied. This enabled other elements of pipe, from ‘the same heats as the defective ones, to be located and examined in the warehouse, in the prefabrication shops, in the blast and paint shop, in various buffer stocks and already erected on site. Defects ‘were ‘ground out and measurements of residual wall thickness were made on the ground-out areas to be compared with code requirements leading to rejection or acceptance. The whole opera- tion was controlled and documented through the site nonconformity management system, which, in addition to its quality function, also enabled a strong case to be buill up, leading to a financial sette- ‘ment out of court. The problem was in fact limited to piping material from a small number of heats from two litle-known manufacturers situated in a developing country, probably selected for their low prices. Before shipment to site only a rudimentary inspection had been made at the stockist through which the material transited. Lessons learnt * Procurement shortcomings, in this case poor selection of suppliors and inadequate inspection prior to shipment, can lead toasite problem. + Maintaining traceability is a chore requiring constant application, but if you run into trouble you will be very glad that you have it. + The formality and structure of a nonconformity management system enable a mass of detail to be marshalled to form a coherent record, which apart from its technical merit, can if required provide valuable evidence for resolving the question of contractual responsibility and damages.Nonconformities 8.1 What are nonconformities and how do we manage them? A noneonformity is deemed to exist when a significant deficiency in materiel, works, procedure, documentation or organization results in a condition not in conformity with specified requirements, and, moreover, which cannot be cor- rected using an existing procedure within the scope of normal supervision. The notion of nonconformity is not applied to works temporarily incomplete. The dividing line between what is and what is not a nonconformity can be woolly, but the examples given in Table 8.1 illustrate the principles to be followed when decid- ing how to react to a given case. Borderline cases have to be resolved on a common sense basis. Whether there is a formal system or not nonconformi- ties manifest themselves, so one way or another they have to be processed. On a construction site without a formal system, information concerning nonconformities may be scattered about in various files or may be simply unre- corded or even covered up, and so later it is difficult, if not impossible, to identify the problems and to learn how and98 Process Plant Construction Table 8.1 Examples of what is and what is not a nonconformity. sezgthe o below speciod Ait removal forme, some comet repre Structural weelwork Major sisaigpeest Beets prtsbeated element a Bstsioundacion Burrs no removed fen fled blo Mechanical equipment overeat eavelling rane fouls Pade serectse Shales of motorpump set maligned Repeated occurrence of hey weedene Occasional minor weld detec Pipework Flowneser lacks spied Senghe pe tength opseam Psining Siguficane deteinton vera Tage srace en Mino pi damage ina name tla ‘ue, Belctive concrete somes tobe dented comecsive ‘Seons/eoneessions be dined nginetng even needed. Do Ircchange steciwoek, concrete meat Enginering review needed 0 ‘ermine necenarymoifistion| Invention needed to find vot ‘ioe Spel weld ep procedure may be requis, Engineering review needed Do Iwereponton fowmeter or rant Investigation needed to find out ise Spero policy tobe roiowed rae “hina none sot non Concrete wks Step change in concrete crushing | Investigation neste ind oot Can be comectd with exon Can te removed following ial foal potce Can be conse ollowing nual ‘ene practice Mays ‘Beomlee woke canbe sted with xin Solel pir procedure. “This is incomplete work canbe pied using xsing ‘equirpocedaeNonconformities 99 by whom they were solved. On the other hand, with a formal system in place: + Nonconformities are identified as such. * They are processed in a logical sequence by the appropriate persons through to completion. * Recommendations/decisions/instructions/confirmation of close-out are in writing and duly signed all on a single form. * Copies of all relevant supporting documents are included in the nonconformity file so that the record of each nonconformity is complete and self-contained. * Recording all nonconformities in the one system gives an overview enabling tendencies to be detected revealing root causes previously unsuspected. ‘The best way to master nonconformities on site is for the EPCM contractor's quality assurance (QA) department to establish and run a site wide system covering the activities of all parties. Any of the latter, that is, the owner, the EPCM contractor or a construction contractor, can initiate a non- conformity. However, it is important that the nonconformity management system is closely supervised to prevent it from being flooded with trivial matters or contractual point scor- ing, which will tend to devalue it. Attention must also be paid to the introduction of the system, for the notion of nonconfor- mity is often misunderstood, and not only at the lower ech- clons of an organization. A formal system can be perceived by some senior managers as highlighting problems and thus being detrimental to their public image. The response to this, concem is that at least the system gives the means of clearly identifying anomalies and makes sure that they are appropri ately processed. Corrective and preventive action will tend to oot out underlying causes and thus improve effectiveness. An explanatory workshop given by the EPCM contractor site QA. ‘manager (SQAM), in the presence and with the full support of the site director, is a good way to evacuate any misgivings. The resolution and close-out of nonconformities needs rigorous management; otherwise they can accumulate to become a significant cause of project delay. The EPCM. contractor SQAM or one of his or her assistants must100 Process Plant Construction expedite the needed actions, especially when several parties are involved. This subject must be actively reviewed at every regular meeting between the owner and the EPCM contractor and between the latter and the construction contractors. ‘Above all, the nonconformity management system must be perceived by top management of all parties as a vital tocl for them to identify quality problems as they arrive and to follow them through to an acceptable documented outcome. 8.2 Resolution ‘Anonconformity may be resolved by choosing one or other of the following options: «# Reject, scrap and replace to specified requirements. + Rework to meet completely specified requirements. « Accept by granting a concession after repair, but stil! not fully meeting specified requirements. + Accept as it is by concession with no rework or repair. + Re-gtade materiel for use in less arduous conditions. ‘This is illustrated in flowchart form in Figure 8.1, which shows the paths taken through to close out according to the model procedure set out in Section 8.3. The above is written in terms applicable to materiel or works, For nonconformities centred on documentary or administrative matters, the same general principles apply Resolution implies applying corrective action to the imme- diate problem, but also backtracking to find and correct the underlying cause, Preventive action can then be taken to preclude repetition of the same problem. 8.3 Model procedure ‘A model procedure is proposed hereunder based on the use of two simple forms: + Nonconformity report (NCR), a model of which is shown in Figure 8.2Nonconformities 101 DEFINED REVIEWED NOT ACCEPTED AS NC, RESOLVED ELSEWHERE \CCEPTED AS NO ert TTC Reject scrap, Completely Partaly repair Use asitis Regrade, use replace rework elsewhere RESOLUTION PLEMENTED Rejected, Completely Partially Material removed, ‘scrapped, reworked repaired remarked replaced Ne. Contormity Conformity St Problem CLOSED OUT — completely Partaly” nonconforming evacuated restored restored" — accepted ~ accepted ~ accepted Figure 8.1 Nonconformity (NC) resolution and close out flowchart * Nonconformity log and status report (NCLSRJ, a model of which is shown in Figure 8.3 Each nonconformity is processed on an individual NCR, which records on a single sheet the successive stages of the process. ing of the nonconformity and carries the names and signatures of the persons involved. The information given on the NCR may be supplemented and validated by documents attached to and cross referenced to it. As each NCR is established it shall be entered on the NCLSR. The latter shall be continuously updated to reflect the status of all NCRs. It forms the basis for102, Process Plant Construction EPCM contractor | NONCONFORMITY REPORT | OWRer Project 20. Name/Logo. NcBae. Project ‘A. DEFINITION OF NONCONFORMITY Contract 20, wm Material reference: Reference document - Originaror Representing: Name: Signature: - ‘Appendices Al to A 0 attached Date: : 'B. DEFINITION OF RESOLUTION ‘The following organization/department/person is requested to define the esoluion of this nonconformity: - coe QA Department Name: Signature: Resolution proposed: Date: Name: Signature . ‘Appendices BI t0 B ... attached Date: ‘C. RESOLUTION APPROVAL AND INSTRUCTION TO IMPLEMENT ‘The above defined resolution is approved. Ie shall be implemented by: ‘QA Department Name: Signature Appendices Cl t0C. attached Date: . CLOsE-OUT ‘The resolution has been implemented. Representing: QA Department Name: Name: Signature: Signature: Date: : Date: Appendices DI to D. setached Distribution: Figure 8.2 Nonconformity reportNonconformities 103 “wodes snes pue Bo] AyuojuoouoN ¢'g eunBiy HOTTA Toa ‘ou walang “2K104 Process Plant Construction expediting NCRs and for reporting to management. A regular review of the NCLSR may reveal the same type of problem appearing repeatedly, perhaps concerning the same construc- tion contractor, zone, discipline or activity. An investigazion can then be instigated (by carrying out an audit for example) to identify and correct the underlying cause. NCRs shall be numbered consecutively NCR 001, NCR 002, and so on. If considered useful, a suffix can be added to iden- tify the geographical or process area/discipline concerned. ‘This can facilitate sorting and classification of the NCRs. We are now going to walk through the procedure for identifying and processing a nonconformity as follows: + The originator completes and signs Section A of the NCR, attaching any relevant back-up documents clearly marked Al, A2, A3, and so on. The problem, potentially a noncon- formity, is thus defined. * The EPCM contractor's quality assurance (QA) department decides whether or not this can be classified as a nonconfor- mity. If the decision is in the affirmative, it is entered ir. the NCLSR and a serial number is assigned to the NCR. The nonconformity now exists. + Should the problem not be classed as a nonconformity, the QA department shall suggest to the originator an alterna- tive for its resolution. The problem is to be resolved outside of the nonconformity management system «In Section B, the QA department designates the person to suggest an appropriate resolution. * This person completes Section B proposing a resoluticn, if necessary attaching supporting documents marked BI, B2, B3, and so on. * In Section C the QA department validates the proposed res- olution and designates a person to implement it, backed-up as necessary with documents marked Cl, C2, C3, and so. on. At this point the NCR defines what has to be done and who is responsible for seeing it is done, or in the case of a concession, indicates that nothing has to be done. + A copy of the NCR is sent to the designated person és an instruction to implement the corrective action. * Section D records close out of the NCR, with back-up documents D1, D2, D3, and so on, if required, signed by theNonconformities 105 Person designated in Section C and counter-signed by the QA department. * At each stage the NCLSR is updated to reflect the current status of the NCR. The regularly updated NCLSR covering all nonconformities can be a tool for expediting and reporting to top management. 8.4 Few or many nonconformity reports Suppose that on a process plant construction site, few NCRs are being registered, does it mean that this is a near perfect Project running like clockwork, or should we suspect that the problems are there anyway, but are being resolved informally {in a nonrigorous fashion’), and perhaps even being covered up? Suppose that on another site many NCRs are being regis- tered, can we suppose that this is a problem site, or should we congratulate the site management on identifying and resolv. ing problems in a structured manner as they arise? Deciding whether there are too few or too many NCRs is subjective, so thereisno point in citing figures from actual projects. However, if the system discovers individual problems and resolves them, the problems were there anyway; so, let us be happy that thei discovery and resolution are properly recorded within a logical framework. If in addition analysis of the ensemble of noncon- formities alerts management to a widespread, fundamental problem, this is even more beneficial CASE STUDY Let us compare the experience of applying a formal nonconformity (NC) management ‘system on two different process: Plant construc- Continued106 Process Plant Construction ‘ing on the office wall, site, no system of NC: management had been put in place. ith the civil works finished and the erection of mechanical equipment well advanced, the owner became concerned and tried to impose such a system on the EPCM contractor. The NC report form created had tobe of two pages to accommodate a cascade of signatures, which reflected the heavy decision-taking process imposed as part of the implication of the owner in site management detail. Even worse, key management figures on both the owner and EPCM manager sides, that is to say, the ones who ought to have been the driving force behind the new NC management system, were very sceoti- cal and never understood what was a NC. Only a handful of NC reports were completed and some months later the scheme was abandoned. Quality problems continued to be treated, but not under the integrating umbrella of a formal system. Lessons learnt * Site A shows that when a NC system is simple, receives full support from the top and is operated competently, it is a very useful management tool. * Site B is an example of a site with a complicated management structure, with no effective formal quality culture, and in which there ‘was strong opposition to the introduction of a NC management system. Not surprisingly, it never worked. One reaction might be, ‘So what! Does it matter?” Only a detailed investigation and analy- ‘sis would determine the gains and losses, tangible and intangible, to both approaches. However, if by use of a simple system we can in an obvious transparent manner follow-through, determine and record the resolution of quality problems (noncontormities), can there really be any real reason to oppose it? + Asa final point, a framed [SO 9001 ceriificate hanging on the wall can mean a lot, but it can also, as in this case, mean nothing.Quality Audits o1 9.2 Introduction A quality audit is a systematic review of an activity, of works or of a procedure to compare the actual situation with what it should be to project requirements. This enables any anomalies to be identified and corrective action to be defined and imple- mented. It is also an opportunity to gauge the effectiveness of specified arrangements and to propose possible improvements. The audit should be carried out by a competent and experi. enced auditor in close collaboration with the individual(s} responsible for the matter being audited. Total support of both head office and site management is essential In Table 3.1 we have already indicated the various audits which could take place. From the perspective of the EPCM contractor on site, the main auditing thrust will be an ongo- ing programme of auditing the various construction contractors present. The EPCM contractor's site organization should also be audited, but this could best be done by its head office. Guidelines for auditing, including a model procedure Auditing is a sensitive area, which if not handled properly, generates resentment and noncooperation. Problems arise108 Process Plant Construction when the auditor displays a nit-picking attitude dramatizing minor irregularities, which damages his or her credibility and brings the whole idea of auditing into disrepute. So it is important that audits are conducted by persons of sufficient personal calibre and possessing the necessary people skills, in particular being able to communicate in a persuasive and dip- Jomatic manner. A sense of humour is also an asset for gaining the confidence of the auditee. The full visible support of the EPCM contractor's site director is essential, which can best be demonstrated during a workshop held on site to present and explain quality auditing positively. An audit is not a blaming exercise, but rather a review to enable any problem aress to be detected and corrected for the benefit of all concerned, in particular for the auditee. Figure 9.1 is a flowchart giving an overview of the quality auditing process. Below are set out some guidelines incorpo- rating a procedure using the various model forms proposed in the figures attached to this chapter: + Quality auditing shall be conducted in a nonconfrontational manner. + Auditees on a construction site are busy people; so keep the ‘audit short and to the point, preferably not exceeding half a day’s duration as it is difficult to retain interest beyond this limit. Where a half day is insufficient, carry out two or more audits on different occasions. « The EPCM contractor QA manager shall prepare and update a quality audit schedule. Figure 9.2 proposes a suitable format. This facilitates management of the over all audit programme. « For a given activity typically three routine audits can be carried out, a preliminary one once the auditee has had time to set up his or her activity to project requiremen:s, an intermediate one halfway through the activity and the final audit towards completion of construction. + A special audit may be initiated in response to a situation giving rise for concer, for example loss of traceability in a piping prefabrication shop. «The auditor shall agree with the auditee a mutually convenient date, time and place and shall confirm theQuality Audits 109 AUDITOR AUDITOR/AUDITEE AUDITEE Agree subject, venue, date, time, persons to be present > Formally contims ‘arrangements (igure 9.3) Poses audit questions (Figure 9.4 (273) Gives verbal -s Discuss, agree waiten answers (igure 9.4 273) | Determines which __._ Define audit findings audit fincings are (Figure 9.4 (473) also noncontoemities (igure 9.4 (3/3), a 4 ‘Actions and closes ut audit findings yo Checks and closes out audit (ioure 9.4 (79)) Figure 9.1 Quality audit flowchart.‘ainpauos ypne Ayjend 26 OANBL THOUS, 10} 5, ACW, 2 PTE “ RivaraET aE 0p AUT, MHEP PET, HORREASTC] aparjosset | Petes | Paupar ger 110. Process Plant Construction epuoyy Hay ang ASS Toy POTMPSADE PNY purses | orseMTOS | MOTeTTUG maalaag pom Ba peppered, ‘H0T/>uEN ‘ou valent aes winaaHs Lan AUTIVAD nenQuality Audits 111 arrangement in writing, Figure 9.3 proposes a suitable notice form. At this point the auditee, in view of the forth- coming audit, may well review his/her activity and correct any irregularities before the audit takes place. If this occurs, so much the better. For the sake of credibility and relevance, an audit must be centred on concrete issues defined as a written requirement. By the same token, audit questions must be framed in such ‘a manner as to lead to factual objective answers. Before any questions are asked, a tour of the site where the activity takes place shall be made and a return to the site shall be made as and when required during the audit for any clarification. The three-page Figure 9.4 proposes model forms for the front page, the one or more questionnaire pages and the conclusion page of the audit report. ‘The auditor shall write his questions on the left hand side of the audit form Figure 9.4 (2/3}, but shall only reveal them to the auditee during the audit. ‘The subject matter of each audit shall be jointly investigated by the auditor and the auditee. An agreed response to each question shall be entered on the right-hand side of the form. If the question is properly framed and the auditor is experi- enced, there should be no difficulty in agreeing a response. Should the audit reveal a shortcoming on the part of the auditor's own organization, it shall be duly noted and actioned in a timely manner. At the end of the audit both parties shall review the completed questionnaire to identify anomalies to be desig- nated as audit findings (AFs), numbered AFI, AF2, and so on. The more significant AFs may, where appropriate, be classified as nonconformities to be entered into the noncon- formity management system described in Chapter 8. Each AF shall be entered on the conclusion sheet (Figure 9.4 (3/3}) together with a definition of corrective action and a target close-out date, Both the auditor and the auditee shall sign the conclusion sheet. ‘The audit report shall be completed, signed and distributed within two working days of the completion of the audit, any delay lessening the impact.112 Process Plant Construction TEPCM contractor ‘Owner: (QUALITY AUDIT NOTICE Project no. Name/Logo Project AUDIT No... Name of organization tobe audited . - CContrat/P.0. 90 “Tite of comtact/?.0 Location/address where audit isco be executed Date/time of Udit: foeefnenenn at hours Subject of audit: Reference documents to be used as basis of audit: We confiom out intention to audit your organization as defined above and we look forward to seceiving your fully cooperation in this matter. Would you please arrange for the following members of your staff to attend the audit: “The auditors) will be: For EPCM contractor Name: Signature: Date Distribution: Figure 9.3 Quality audit notice.Quality Audits 113 QUALITY AUDIT REPORT (Page 1/..) Name of organization audited: Contraet/?.0. no. Tite of contrac P.O. Location/adess where audit was executed Date of audit fen Subject of audit Reference documents forming basis of audit: Participants: Distribution: 1/8 Figure 9.4 Quality audit report in three parts (1/8, 23 and 3/3).114 Process Plant Construction BRCM conteaeioe ‘QUALITY AUDIT REPORT Owe Name/Logo (adie no Page fd) RSLS QUESTION/POINT RAISED ‘AGREED ANSWER Figure 9.4 (Continued) 28Quality Audits 115 (Ponunuog) p'6 aang ee soupy ] soupy SIIEERIS AT PMIIOTY —WOTTPATUERTS aueudoxe se ou sy to dn payee saorpuadde se pagent sated “~~ owp | ep TOrEONT wworrsmsnoy STORE arse | Tey TPO oe ‘waned 2940 Ur pozoiue axe pur Ou YON v pause ‘iv aso sap fuuiojuoguou se posse aq Kew aimee UWonoe aarioautoa tna say) spy 2ypne ay aumanstos pouonuaumpain ox vein paar [dwn ayy fo ma}A31 UIOLB FuRAOHTOR ‘afo7 aa sowenwo. woaa |116. Process Plant Construction 93 « Distribution of the audit report shall be restricted to those needing to know; this helps the auditee to ) seenvoo oars amon ) YOBAUOD SHHOM BID ou weeks rou waishs O prouueishs ¢ ou WeShs ‘SALSA TNOUONNS 0 zou weisksConstruction Completion and Turnover 141 * List of vessels and tanks * List of mechanical equipment * List of electric motors «+ List of switchgear and motor coritrols * List of cables * List of instruments * List of instrumentation and control loop diagrams Information can be extracted from these to generate specific new documents, or it may sometimes, in the case of a small Project, be simpler to annotate existing documents. The PAIDs can be marked up to define functional system limits. If this approach is decided, it is very important to recognize from the outset the very considerable amount of time and effort required A typical example of a functional system to be so processed is a river extraction cooling water system. The construction contractors for the various disciplines will be responsible for completion of the following works: * Civil contract Intake, sump and pump support structure, discharge * Structural steelwork Crane support structure contract * Mechanical contract Pump sets, intake screens and filters, valves, manifold, crane * Piping contract Piping prefabrication and erection with supports, connections to heat exchangers (interfaces with other systems} * Electrical contract Cabling and connections, earthing, cathodic protection* + Control and Low suction level and vibration instrumentation Protection on pumpsets, pressure contract and flow measuring systems, cabling, etc. * Painting contract Finish painting on equipment, blast and paint on structural steelwork and pipework142 Process Plant Construction The asterisk means that the corresponding motor starters could be included in this system or alternatively in one of the electrical systems with the associated substation, For the functional system-by-system case, the flow diagram in Figure 11.6, in principle, still applies, except that it does not apply to the whole plant, but is repeated for each system. 11.7. Conclusions The reaction of the reader might well be that the above proposed model procedures for construction completion and turnover to the owner, particularly those based on functional systems, are complicated, but whatever the approach, manag- ing completion and turnover is never simple, However, these procedures can work well provided that: + The decision to operate system by system is taken early in the project in complete agreement between the EPCM contractor and the owner. «The content and boundaries of each system are deter- mined early and are integrated into project engineering and documentation. * The order of priority of construction and turnover of the systems is defined. * Construction contractors know from the bid stage onwards that construction completion will be achieved and documented system by system, and that they will be encouraged to proceed expeditiously along this path by link ing substantial stage payments to this exercise. + Assingle competent interlocutor, if necessary on a full-time basis, is designated within the site organizations of the owner, of the EPCM contractor and of each construction contractor; they shall collaborate closely. + The necessary resources shall be engaged to manage and expedite the outstanding items to eventual close out + Most important of all, top management of all parties shall be resolutely committed to a dynamic approach leading toConstruction Completion and Tumover 143 the timely turnover of the complete plant, which on the ‘owner's side means having developed a team capable of accepting the turnover and taking it forward through com- missioning and start-up to commercial operation. : cess plant construction site, the erection of mechanical ipment es Neste ie es est finished, and electri- al installations and instrumentation and control systems were well advanced. Functional system content and limits had been defined ‘only recently. The construction contractors were under no contrac- tual obligation to complete their work prioritizing by systems. They ‘considered that to do so would disturb their planning schedules and manning arrangements. A large number of minor items were incomplete and it was difficult to ot lige the construction contractors concemed to attend to them, without becoming bogged down in Protracted discussions about extra payment. For the owner time was pressing, so it was decided to simplify the project structure. In the first Place the owner brought in one of its own engineers to head up the operation. He already pos- ‘sessed the experience of several plant construction completions and turnovers, had developed a Procedure and came armed with computer software to track the operation. An integrated team was formed, comprising staff from the owner and the EPCM contractor. ‘The contracts with the construction ‘contractors for the mechanical, piping, electrical and control and instrumentation disciplines were ‘closed out as such, and instead these firms made available teams of pipe fitters, welders, electricians, etc., to be integrated into the owner-EPCM contractor team. Their services would be paid for on the basis of time spent at hourly rates. ‘A team was assigned to the inspection of each system covering all disciplines, in order of Priority, so as to identify, locate and record unfinished works on lists of outstanding items (LOIs). These items were identified in situ by means of colour-coded labels and num- bered to be traceable to the functional | system and the LO! concerned, Reports could be printed out in several different formats, in particular ‘enabling items to be sorted by discipline for work assignment to the Continued144 Process Plant Construction pee, “different trade teams. Inspection and pe eons tieeae aie already hed nctio e ns of | The safety and w pneonsclaeoes ctly @ dd to take account of the “possibilty that in some places completion of construction and commissioning were proceeding simultaneously in close physical proximity. The programme of construction completion and turrover was completed without too many problems. Lessons learnt = Not. having identified functional systems. much earlier complicated the situation. + Interrupting the contracts before the construction contractors had themselves declared their works complete gave rise to a massive task of seeking out uncompleted work, which in turn generated a very large number of LOls, difficult to manage * Completing the construction contractors’ scopes of work with labour under the direct control of the owner could have given rise, in case of a defect or error causing an accident, to a dispute ‘on the question of responsibility = The operation went smoothly because an experienced individual came on the site armed with a proven methodology and the necessary software, and was given the authority to get ‘on with the job + The owner achieved his objective of a rapid turnover of the whole plant, which led on to successful commissioning and start-up, but it is still worth noting the real and potential difficulties cited above.Appendix A: Civil Works and Buildings eee cere eee ene eee ete eee EE The civil works construction contractor is the first to arrive on the site. Most of its work will have been completed before contractors of other disciplines can start, for civil works create the physical infrastructure upon which equipment is erected and piping and cabling supported. The principal types of civil works are: * Surveying * Earthworks * Piling * Underground drains * Reinforced concrete for machine plinths, foundations and structures * Roads and car parks This appendix also briefly evokes building works. Structural steelwork is sometimes considered to be part of the civil works scope, but in this handbook it is treated as a distinct discipline (see Appendix The parties involved on site can include the following. * The EPCM contractor * The architect + The civil construction contractor Possibly a separate building construction contractor Building subcontractors covering the different trades Suppliers of concrete mix Special-service providers for surveying and for laboratory and on site testing facilities for soils and concrete146 Appendix A: Civil Works and Buildings Early in the project a survey of the site will have been carried ‘out to determine its shape, dimensions and levels in relation to survey monuments, the latter being tied back to a national coordinate system and/or to features of an existing plant in the case where the project is an extension. This survey will be recorded on a site plan, which will be the starting point for the determination of the layout of the plant and the subsequent detailed design. During construction it is important to protect, the survey monuments and to regularly verify and record :heir positions. When the site is opened, the surveyor’s initial task will be to establish alignments, coordinates and levels and battery limits for the various process, utility and off-site areas ‘as well as those of access roads and car parks. From then on it will be necessary to set out positions of piles, drains, founda- tions, equipment plinths, structures and buildings. Accuracy of positioning of anchor bolts will facilitate equipment erec~ tion to close limits, which in turn will enable interconnect- ing piping to be realized with a minimum of mismatches ‘The axis of a pipe rack or of a pipeway can be a reference from which adjacent equipment can be positioned. Records comprise survey reports and marked up drawings. ‘The design and construction methods to be used for foundations for equipment, structures and buildings and of the associated roads and car parks, and also for earth retaining walls are dependent on the nature and physical properties of the soil on and under the site. For this reason the following factors will have been investigated by means of in sitw and laboratory tests carried out by specialists to determine: * The nature, thicknesses and stratification of the various layers « Their properties, in particular their load bearing capacities, information necessary for deciding the type of foundations to be provided, in particular whether or not piling will be required * The presence and extent of groundwater On-site earthworks include + Removal of unsuitable or excessive soil + Temporary storage of soilAppendix A: Civil Works and Buildings 147 * Earth moving, levelling and grading to create platforms for Process units, off-sites, utilities and infrastructure, with compaction per lift at optimum moisture content, respect. ing permitted lift heights * Excavating for drains, foundations and equipment plinths, including reinstatement and compaction * Drainage, de-watering, shoring-up and temporary works Once the platforms are completed and consolidated, battery limits, roads, foundations and plinth positions can be set out. Quality records comprise topographical survey reports, soil test reports carried out at various stages of the works and marked-up drawings Depending on bearing characteristics of the soil, strata depths and prospective loadings on foundations, piling may be necessary, There are many varieties of pile and piling techniques available. However, we can divide them into two broad categories: + Bored piles * Impact driven piles Whatever the type of pile used, an initial survey must be made to determine pile locations. Care must be taken to position the pile accurately and a survey will be required afterwards to determine the coordinates as installed. Prior to the pil. ing campaign there may be type tests carried out in situ on a small number of piles to determine resistance to loading. The results of these tests must be duly recorded. A bored pile is by definition formed by boring, removing the carth and generally ensuring that the hole does not collapse by the insertion of a temporary steel liner. Special arrangements may have to be made in the case of the ‘Presence of ground water. A steel reinforcing cage fitted with spacers is positioned in the bore. Conerete is then introduced according to a predefined Procedure, the steel liner being withdrawn progressively as the level of concrete rises. The inspection and test plan should include checking the boring rig position, for the reinforcing cage the grade of steel against mill certificates, the diameters and configuration of the re-bars, spacers for concrete cover, and the quality, placement and traceability of the concrete.148 Appendix A: Civil Works and Buildings Driven piles can be in different formats and materials. Should the piles be in pre-stressed concrete, their prefab- ication needs to be closely supervised. Besides concerns for the quality of the concrete, very close control must be exercised in tensioning the steel wires and in subsequent stress transfer to the concrete. Formal release for handling and subsequently driving the piles can only be given when crushing strengths of the corresponding concrete samples have reached or exceeded a predetermined value. Each pile should be identified with a serial number tied back to its quality records. Pile driving has to be carefully monitored and documented. Noting on the same form the designation of the pile geographical location and the pile manufacturing serial number enables traceability to be maintained between the operations on the prefabrication yard and those on the site, The pile is pre-marked at specified intervals along its length to enable the number of hammer blows between intervals to be counted and recorded as an indication of the resistance as the pile is driven deeper. Where a cluster of piles is driven, there may be interaction between them giv- ing rise to heave. It may be necessary to re-drive one or more of the piles. ‘Underground drains may be simply for rain water, but there may be other separate self-contained systems in pro cess areas to contain dangerous fluids in case of a leak or a spillage, possibly mixed with fire fighting water. A num- ber of different materials can be used for pipes and fit:ings for underground drains, in particular, reinforced concrete, steel pipe welded and wrapped, GRP or PVC. Special bed- ding and backfill material may be specified so as not to dam- age the drains, Close surveillance will be required during all stages of the works, and so an inspection and test plan needs to cover: Prior verification of materials Excavation, bedding, backfilling and compaction Laying, alignment and jointing between pipe lengths and with the manholes Hydrostatic testing Surveying at all stages for level, grade and alignmentAppendix A: Civil Works and Buildings 149 Reinforced concrete can be used on site for the realization of such works as: + Equipment plinths at ground level * Structures for supporting elevated equipment + Earth retaining walls * The whole or part of pipe rack/pipeway structures * Access bridges across pipeways + Underground ducting + Paving for certain process areas * Roads and car parks + Primary structures of buildings ‘The constituents of concrete are: * Fine aggregates * Coarse aggregates + Water * Cement * Additives (In response to ambient conditions or to produce a desired effect) These are brought together in a batching plant, which may be already existing external to the site or may be erected on site for the duration of the works. Prior to starting the concrete works, the plant should be audited to ensure that it is able to meet project requirements. This involves review. ing the operation of the plant and its vehicles, as well as the sources and characteristics of the raw materials. Trial mixes must be made and tested. Including the provision of pre~ mixed concrete within the scope of work of the civil works construction contractor is preferred as it means that there is @ single organization responsible for quality of concrete from raw materials, through batching, placement and curing to finished structure. On the site itself pre-pour investigations include checking the steel grade and diameters of reinforcing bars and their configuration, the dimensions of anchor bolts and their posi. tions, checking formwork, including reinforcing and supports and checking spacers to ensure adequate concrete cover of150 Appendix A: Civil Works and Buildings reinforcing bars. These verifications must lead to a formal written authorization for pouring the concrete. ‘As ach delivery truck arrives at the site where the concrete is to be*poured, a slump test is made to verify the plestic- ity of the mix. Water may be added within specified limits. Concrete placement shall be closely supervised and recorded. Samples in the form of cylinders or cubes shall be taken at a specified rate, duly cured and tested for crushing strength after 7 and 28 days, Since test results are only available long, after the completion of the works, the operation must be fully traceable so that in the event of the values obtained being less than the specified minimum, the location of the correspond ing concrete works can be located for investigation and pos sible corrective action. Traceability must also extend via the concrete delivery ticket back to the batching plant and to the raw materials. Where possible the special-service provider which is going to carry out the crushing tests can with advan tage be made responsible for taking the samples at the pour site, marking the serial numbers and dates and for supervising curing both as to method and duration. Figure Al illustrates how traceability of reinforced concrete can be achieved. Curing needs close supervision both in terms of method and duration. Clearance to strike the form work must be recorded as must subsequent inspection, survey, repair, ifany, and markings of the finished reinforced concrete structure. Roads and car parks will be specified in terms of the type of material and thickness of each layer up to the wearing course, that is, the finished surface. The starting point is a well com- pacted sub-base accurately surveyed to ensure level, grace and alignment. Each layer must be compacted respecting the limit of lift height and verified by tests carried out at selected points. If the wearing surface is to be reinforced concrete slabs, then the principles proposed above in this appendix must te fol- lowed, with care taken over the joints made between adjacent slabs. Should asphalt be specified, the batching plant needs to be audited, materials and mixes verified and arrangements for delivery defined. Curbing and gutters need to be set out to take account of the wearing layer levels and grades. Quality records include certificates for the materials, tests results, survey reports and drawings marked up ‘as built’.Appendix A: Civil Works and Buildings 151 ‘Ayiqeeoen 2y210U09 Ly eanBL152. Appendix A: Civil Works and Buildings Process buildings may include heavy reinforced concrete structures to support items of equipment and to carry the rails for overhead travelling cranes, such buildings in effect falling within the domain of ‘civil works’. Other buildings such as offices, stores, workshops, the canteen, the infirmary, cloakrooms, toilets, control rooms, electric substations and gate houses, already evoked in Section 3.10, are more logi- cally included in a contract awarded to a specialist build- ing construction contractor. The latter may well carry out detailed design of the buildings and will be responsible for the coordination of the various sub-contractors representing the different trades. A number of proprietary items such as windows, doors, locks, sanitary ware, shecting, insulation, panelling, suspended ceilings, floor and wall coverings. ete. will be incorporated into the works. It is useful to set aside a display area where samples of these items can be reviewed thus identifying potential problems early rather than when the works are well advanced. These reviews can be formal- ized as hold points. Buildings are generally subject to build- ing codes and regulations; this requires ongoing vigilance and coordination with the Authorities concerned. An inspee- tion and test plan is needed to be applied as the work of the various trades advances, in particular including hold points to be implemented at intermediate stages before the work is covered up.Appendix B: Mechanical Equipment This appendix outlines the major factors which have to be taken into account from the quality point of view for the erection of mechanical equipment, the more common items of which can be classified into one or other of the following broad categories: + Unfired pressure vessels * Boilers and furnaces * Cooling towers * Site erected storage tanks and spheres * Rotating machines + Lifting and material handling equipment In addition to the appointed mechanical construction contractor, there will be present on site suppliers’ representa- tives for certain categories of equipment in order to supervise the more critical phases of erection and testing. Items of equipment can be set on a concrete plinth or on a steel structure. Taking the first of these cases, the concrete structure upon completion of curing and of a survey ‘as built’, will be released for setting the item of equipment for which it is intended. The top surface must be roughened and anchor bolts sealed. The item of equipment or the base plate of a driver/ driven set must be positioned axially, transversally, vertically and to level. It is important to check the position and align- ment of any flanges to be connected to piping, Instructions of the equipment supplier and of the grout manufacturer must be closely followed for mixing, placing and curing of the grout and tightening of the anchor bolts. Depending on the application,184 Appendix B: Mechanical Equipment test cubes may be taken to be cured and then used for a crushing strength test of the grout. Some machines, instead of being mounted on a base plate, are positioned directly on metal sole plates previously grouted to the top of the plinth, Setting and levelling an item of equipment on a steel struc- ture is simpler, being essentially shimming and bolting to the support pads so that the load is distributed. Depending on the application a base plate may be attached to the struc. ture by welding ‘A typical process plant can include a large number of pressure vessels completely manufactured and tested in the Supplier's premises and delivered on site as a complete finished item. Exceptionally a large vessel may be delivered in two pieces to facilitate transport and then be welded together on site. This operation would almost certainly be carried out by the supplier's personnel. For pressure vessels the requirements of the concerned authority will be very much to the fore- front. There will be a quality file established in the country of manufacture with records of materials used, manufactur- ing processes, in particular concerning welding, with tace- ability, and the records of inspections and tests carried out. Cold-stamping on the vessel itself and on the name/data plate may be an indication of its conformity and acceptance status. Erection of pressure vessels is relatively straightforward. Once preliminary checks have been made, the vessel will be positioned, aligned, shimmed and, where applicable, grouted, with special attention being paid to nozzles positions and orientation. Where there is a sliding foot contact, it must be positioned, aligned and lubricated. Anchor bolts should be tightened to specified requirements. Access platforms, hand railing and ladders (if any) can be added. These are generally supplied within the vessel purchase order. Where appropri- ate an internal visit will be made to inspect for cleanliness and to install/check any accessories, which can include items such as baffles, trays, and weirs. In certain cases the internals require setting up and levelling to close limits. Site pressure testing can be for the vessel as such, for nozzle reinforcings, for internal pressurized items such as steam heating coils and in the case of heat exchangers, tests for both the tube and shell sides.Appendix B: Mechanical Equipment 155 For a packaged boiler delivered in one piece, depending on authority requirements, it will normally need to be pres- sure tested after installation. There will be accessories to be installed such’ as the chimney, exhaust ducting, burner, motor fan set(s}, gauge glasses, instruments, platforms and ladders, relief valves and dampers, with refractory linings to be completed. Concerning boilers and furnaces which are delivered as subassemblies and erected on site, the scope of work includes erection of supporting steelwork, erection and welding together of pressure retaining elements, erection of steel casings and the realisation of refractory linings using refrac- tory bricks or refractory concrete. These are complex works normally carried out or at least closely supervised by a specialist design and build contractor, with inspection and test results entered on a whole family of record forms. Welding of the pressure retaining systems is to be the sub- ject of rigorous and documented control, followed by pres- sure testing on completion. Refractory works must be based on a procedure defining preparation, mixing, placement, inspection, testing, repairs, curing and drying. Cooling towers in a process plant project may be required in connection with: * Air-conditioning * A process requirement * Power generation The simplest are the smaller prefabricated units, which do not require much more than to be set in place, and connect to the piping and electrical circuits. The larger units built in-situ are generally the work of specialized design and build contractors. They may be naturally ventilated, or more ust- ally of the forced or induced ventilated type. They can be of several cells grouped together, each cell comprising a basin at ground level, a concrete or sometimes wooden containing structure, a fan for upward air movement, a spray system with pipe work and nozzles as well as filler material over which the water will cascade and disperse to ensure maximum. heat exchange between the water and the air. The basin will156 Appendix B: Mechanical Equipment have a make up water connection to compensate for evaporation. Any concrete works can be dealt with in a classical manner as described in Appendix A. Obviously, water proofing is an essential element in the construction of the basin and the enclosing structures. An induction fan situated on the top of the tower is usually mounted with its shaft axis vertical, either belt driven or connected through a ‘gear box and shaft to the drive motor. The rate of air flow and hence the load on the motor can be adjusted by changing the blade angle. Only the smallest storage tanks can be delivered and erected in one piece. More usually a tank for atmospheric or low pressure duty will be welded in situ from previously cut, edge prepared and where appropriate rolled plates and prefabri- cated subassemblies. Some tanks are designed with a floating roof. The first success factor is the careful planning, execu- tion, supervision, inspection and testing of plate preparation and prefabrications, with formal clearance to be required before shipment to site. The prefabrication shop should be the subject of an audit before any work begins (see Appendices D and E}. A shop inspection and test plan supported by a com plete set of record forms must address the following issues: «+ Inspection of incoming material traceable to materia. and test certificates * Definition and documentation of welding, that is to say, weld procedure qualifications, procedure qualification records and welder qualifications + Nondestructive examination and destructive testing + Execution of plate cutting, rolling and edge preparation, and of prefabrications (manholes for example) + Markings for traceability and to facilitate erection + Packing for shipment to site, in particular providing cradles to support rolled plates ‘The above gives rise to a set of inspection and test records, leading to formal release before shipment to site. ‘Concerning the site erection works, there are a series of successive stages to be defined in the inspection and test plan with a set of model forms adapted to the specific needs