Module 10 - Managing Construction and Completions Facilitator Guide Rev0

Managing Construction and Completions

Facilitator's Guide Module 10 Draft A 06/02/2008

Copyright 2007 WorleyParsons Services Pty Ltd This document has been prepared on behalf and for the exclusive use of WorleyParsons. This document may not be reproduced without the express permission of the Business Process Owner

Level 12, 333 Collins Street Melbourne Vic 3000 Australia Telephone: +061 3 8676 3500 Facsimile: +061 3 8676 3505 www.worleyparsons.com WorleyParsons Services Pty Ltd ABN 61 001 279 812

Facilitator's Guide Module 10 Managing Construction and Completions Rev Description Orig Review WorleyParsons

Approval Date

A Initial draft Jane Woodhead

Bruce Leigh

0 Issued for Use Bruce Leigh

Mike Reilly

Mike Reilly

07/03/08

Draft A 06/02/2008 Managing Construction and Completions Page i

Managing Construction and Completions

About this Facilitator Guide...................................................................................... 1 Before You Start ........................................................................................................ 2 Preparation.................................................................................................................. 2 Planning ...................................................................................................................... 2 Resources ................................................................................................................... 2 Agenda ........................................................................................................................ 2 Resources Checklist ................................................................................................. 3 Agenda ....................................................................................................................... 5 Construction Management and CompletionsFacilitators Guide ....................... 8

Draft A 06/02/2008 Managing Construction and Completions Page 1

ABOUT THIS FACILITATOR GUIDE

The Managing Construction and Completions Facilitator Guide has been designed to assist facilitators to effectively deliver the training module. The guide provides support and guidance in how to engage the participants and work through the training materials in an effective way.

This module is the 10th module in the suite of WorleyParsons Project Management Skills Development Training. The modules in the suite are:

Module 1 Project Initiation, Scope Management and Project Close-out Module 2 Project Controls and Commercial Management Module 3 Managing Project Risk Module 4 Business Management Systems Module 5 HSE Management Module 6 Proposals Module 7 Managing Project Quality Module 8 Team Leadership and Communications Module 9 Managing Project Procurement Module 10 Managing Construction and Completions

Managing Construction and Completions Draft A 06/02/2008

BEFORE YOU START

Preparation

Read the module 10, Managing Construction and Completions several times to thoroughly understand the content and be able to answer participants questions.

Planning

Plan to arrive at the training venue one hour before your presentation is due to start. Use this time to set up and check the technology, set out the materials and greet participants when they arrive. If you are well-prepared this will help create a relaxed environment that is supportive of learning.

Resources

For Resources Checklist, see page 3.

Agenda

For a sample Agenda, see page 5.


RESOURCES CHECKLIST

Resources 9 Training materials

Managing Construction and Completions Module 10 Participants Manual (one copy per participant)

Managing Construction and Completions Module 10 Facilitators Guide (one copy for facilitator)

Managing Construction and Completions Module 10 PowerPoint Presentation

Prepare flipcharts (Agenda)

Handouts: Constructability Input Procedure (FCP-0003) Construction Management Plan Task Sheet (FCP-9001) Construction Preliminary Planning Procedure (FCP-0002) Construction Progress Control Procedure (FCP-0007) Contractor Progress Meeting Minutes Template (FCF-1010) Detailed Construction Planning Procedure (FCP-0004) Direction and Monitoring of Contractor Performance Procedure (FCP-0012) Field Instruction Form (PSF-0069) Guideline: Contracts, Changes, Claims & Backcharges (incl Liquidated Damages)

(PSP-0346) HSE Subcontractor Selection and Management Procedure (CHP-0065) Industrial Relations Plan Task Sheet (FCP-9003) Management of Project Change Procedure (PCP-0010) Progress Measurement and Reporting Task Sheet (SCP-9003) Progress Measurement Construction Guideline (PCP-0005) Project Assurance Plan Task Sheet (PAP-9004) Site Based Contract Administration Procedure (FCP-0011) Site Establishment Procedure (FCP-0005) Site Queries Procedure(FCP-0016) Supplier Call Out Instruction Template (FCF-1026)

Attendance List

Evaluation sheet

Equipment

Tables and chairs in U-shape

Laptop with presentation loaded (and back up copy)

Data show

Projection screen

Flipchart

Flipchart paper

Flipchart pens

Whiteboard


Resources 9 Whiteboard pens

Water and glasses

Minties in bowls


AGENDA

This is a sample agenda for the Construction Management and Completions Module. This agenda assumes an 8.00am start and 5.00pm finish.

Topic Time Introduction

About this training session Safety Moment Emergency Procedures Introductions Learning Objective Leaning Outcomes Agenda Module 10, Managing Construction and Completions

20 mins 8.00-8.20

Overview Overview

20 mins 8.20-8.40

Roles and Responsibilities Role of the Project Manager Construction Managers Responsibilities Completions Managers Responsibilities

20 mins 8.40-9.00

Activity

Project Planning Key deliverables Pre-mobilization of Construction Pre-mobilization of Completions Construction Pre-mobilization Meeting Construction Methodology Brownfield vs Greenfield Prerequisites/Critical Construction Inputs Preliminary Construction Planning Detailed Construction Planning Construction Management Plan (CMP) Site Establishment and Logistics

30 mins 9.00-9.30

Constructability Construction Team Input into Execution Planning and Design Constructability Reviews Modularization and Pre-assembly

25 mins 9.30-9.55

Activity Break

15 mins 9.55-10.10


Topic Time Site Organization and Resource Management

Site Organization Resource Management

30 mins 10.10-10.40

Communication and Team Work Project Culture, Trust and Team Work Home Office and Site Office Communication and Teamwork Coordination Cooperation

20 mins 10.40-11.00

Issue Resolution Problem Action

20 mins 11.00-11.20

Quality Management Quality Assurance Plan Quality Inspection Construction Contractors Responsibilities for Quality Control Contractors Quality Control Plans Inspection and Test Plans Checklists and Rectification of Defects Inspection Completion and Punch Listing Quality Records

20 mins 11.20-11.40

Protocols for Construction Site Visits Security Plan Visitors Dress Code

20 mins 11.40-12.00

Lunch

60 mins 12.00-1.00

Health, Safety and Environment (HSE) Safety Zero Harm Strategies for Promoting Safety Environment

25 mins 1.00-1.25

Industrial Relations Industrial Relations Strategy Management of Construction Contractor Industrial Relations

20 mins 1.25-1.45


Topic Time Risk Management - Construction

Aligning with Zero Corporate Harm Construction Risk Key Elements Risk/Hazard Control Mitigation Plans

30 mins 1.45-2.15

Construction and Field Procurement Considerations for construction contracts Examples of construction contracts Interface between Construction and Procurement Mitigation Plans MARIAN Managing Site Contracts

30 mins 2.15-2.45

Construction Control and Reporting Construction Progress Measurement and Control Measurement Tools and Methodologies Construction Reports Project Meeting

30 mins 2.45-3.15

Break

15 mins 3.15-3.30

Document Management Controlled Documents Document Control Procedure for the Construction Site Document Review and Sign-off Document Control Registers

20 mins 3.30-3.50

Completions Commissioning and turnover to the Customer

Pre-commissioning Commissioning Completions Management Tool (CMT)

30 mins 3.50-4.20

Change Management Project Managers Responsibilities

20 mins 4.20-4.40

Summary and Feedback Summary and Feedback

20 mins 4.40-5.00


CONSTRUCTION MANAGEMENT AND COMPLETIONSFACILITATORS GUIDE

Introduction

Slide 1

1

Welcome to Worley Parsons Project Management Process (WPMP) Training

Module 10 Managing Construction and Commissioning

Slide 2

2

Introduction

X Welcome

X Safety Moment

X Emergency Procedures

X Introductions

X Learning Objectives

X Learning Outcomes

X AgendaModule 10 Construction Management and Completions

About this training session

Welcome Welcome participants to the Worley Parsons Managing

Construction and Completions training. Introduce yourself and your role at WorleyParsons. Check that the participants have a copy of the Participants

Manual. Explain that the Participants Manual is a valuable resource

during training and in the future. About this Training Session Explain the structure of the training session Explain that the training will be interactive and encourage

participants to contribute with questions and examples from their own experience.

Safety Moment Share a safety moment with the group. Emergency Procedures Explain the emergency procedures for the venue.

Participant Introductions Ask participants to introduce themselvesname, role and

expectations about the training Document participants expectations on the flipchart (optional)

Slide 3

3

Introduction

On completion of this module, you will have:

X A basic understanding of what the Construction and Completions functions provide to complete an EPCM project

X An understanding of the methodologies and tools that will enableyou to work with Construction to successfully deliver a project

Learning Objectives

Present Learning Objectives

Slide 4

4

Introduction

X Understand the reasons for requiring Construction and Completions involvement early in project planning

X Plan and incorporate constructability reviews and construction lessons learnt into project design and contracting

X Address design strategy opportunities for design standardization, modularization and pre-assembly

X Understand typical Construction and Completions organization charts and associated roles and responsibilities

On completion of this module, you will be able to:

Learning Outcomes

Present Learning Outcomes


Slide 5

5

Introduction

X Have a basic understanding of the key processes used by Construction and Completions

X Understand the needs of Construction, including AFC drawings and materials being available on time, and how this determines Engineering and Procurement priorities

X Have a basic understanding of the typical progress reporting provided by Construction and Completions

X Have a basic understanding of Industrial Relations (IR) requirements

On completion of this module, you will be able to:

Learning Outcomes (continued)

Present Learning Outcomes (continued)

Slides 6

6

Agenda

X IntroductionX OverviewX Roles and ResponsibilitiesX Project PlanningX ConstructabilityX Site Organization and Resource ManagementX Communication and Team WorkX Issue ResolutionX Quality ManagementX Protocols for Construction Site Visits

Present Agenda.

Slides 7

7

Agenda, continued

X Health, Safety and Environment (HSE)X Industrial RelationsX Risk Management ConstructionX Construction and Field ProcurementX Construction Control and ReportingX Document ManagementX Completions Commissioning and turnover to the CustomerX Change ManagementX Summary and Feedback

Present Agenda (continued).

Transition We have covered our Introduction, and we will now move on to discuss an Overview of managing construction and completions.


Overview

Slide 8

8

Overview

X What is Construction

X What is Completions

X What is Commissioning

Ask, participants I. What is construction?

II. What is completions? III. What is commissioning?

Refer to Participants Manual pages 4-7. Explain Figure 2 Stages in Construction and Completions. Ask Review Questions. Refer to Participants Manual page 8

Slide 9

9

Agenda


Transition We have covered the Overview, and we will now move on to discuss Roles and Responsibilities.


Roles and Responsibilities

Slide 10

10


X Establish management processes and controls that result in a successful project

X Responsible for total project delivery

What is the role of Project Manager?

Ask participants I. What is the role of the Project Manager with managing

construction and completions? II. What is the role of the Construction Manager?

Discuss Refer to Participants Manual page 9-11.

Slide 11

11


X Construction Planning

X Cost Management

X Time Management

X Quality Management

X Contract Administration

X Safety Management

X Construction Management

X Industrial Relations

What are the Construction Managers Responsibilities?

What are the responsibilities of the Construction Manager with managing construction? Discuss Refer to Participants Manual pages 9-10. Ask Review Questions on pages 13.

Slide 12

12


X Safety Management and promotion of HSE culture

X Completions Management Planning, Development & Execution

X Cost & Time Management

X Quality Management

X Site Operator Interfaces

X Site Administration after Construction

X Operator training

X Interim Facilities Turnover to the Customer/Operator, pending formal project Turnover by the Project manager

What are the Completion Managers Responsibilities?

What are the responsibilities of the Completions Manager with managing completions? Discuss Refer to Participants Manual pages 11-12. Ask Review Questions on pages 13.

Slide 13

12

Agenda


Transition We have covered Roles and Responsibilities and we will now move on to discuss Project Planning


Project Planning

Slide 14

14

Project Planning

X The project schedule should be driven from the back end

X Early Construction and Completions involvement is absolutely necessary

X Project WBS must meet with the minimum Contracting and Construction requirements

X Identify issue of key deliverables

Key schedule deliverables by the Project Team

The overall Project schedule aligns the logic, precedence and duration for each engineering, procurement and construction task. The construction schedule drives Engineering, Procurement, delivery and installation of the various components which make up the plant. Ask participants What are the key deliverables that the schedule gives to the project team? Discuss. Refer to Participants Manual pages 14-15.

Slide 15

15

Project Planning

X Construction Manager completes pre-mobilization details with Construction Team

X Project and Construction Managers ensures that the Construction team do not mobilize too early

X Project and Construction Managers ensure that the mobilization plan is based on an assured flow of ongoing work

Pre-mobilization of Construction

The Construction & Completions Managers should complete pre-mobilization details with their Teams.

I. What are the teams responsibilities for pre-mobilization? II. How are materials management, procurement and

contracts involved? Discuss. Refer to Participants Manual pages 16.

Slide 16

16

Project Planning

X When do you hold a pre-mobilization meetings

X What are the Project Managers responsibilities

Construction & Completions Pre-mobilization Meetings

Ask participants

I. When do you hold a pre-mobilization meeting? II. What are the Project Managers responsibilities?

Discuss. Refer to Participants Manual page 16.

Slide 17

17

Project Planning

X What is the difference between Brownfield vs Greenfield construction projects

X What expected delays on Brownfield projects may influence the estimate

Construction Methodology Brownfield vs Greenfield

Ask participants What is the difference between Brownfield vs Greenfield sites? Discuss. Refer to Participants Manual page 17.

Slide 18

18

Project Planning

X Environmental impact of job

X Successful scheduling

X Site safety

X Availability of materials

X Logistics (road transport, shipping schedules, resources, etc)

X Inconvenience to public caused by construction delays

X Preparing tender documents

Prerequisites/Critical Construction Inputs

Effective planning is essential.

I. What must you consider? II. What are the prerequisites/critical construction inputs?

Discuss. Refer to Participants Manual page 17-18.


Slide 19

18

Project Planning

Construction Manager is responsible for

X Completing construction preliminary planning Keeping Project Manager informed about issues and progress Making recommendations to Project Manager where issues

and needs may impact on planning by other disciplines

X Documenting the outcome of preliminary planning in a Construction Management Plan (CMP) outline

Preliminary Construction Planning

What are the Construction Managers responsibilities for preliminary construction planning? Discuss. Refer to Participants Manual page 19.

Slide 20

19

Project Planning

Detailed Construction Planning

Issue to project team

Customer approval

Revise at Approved for Construction (AFC) stage

EXECU

TE

Review CMP

DEFIN

E

Draft CMP

Detailed construction planning provides a basis and guidelines for construction in the form of a Construction Management Plan (CMP). The CMP is developed during the Define phase and a key deliverable at the gate prior to the Execution phase.

I. What is the process for developing a CMP? II. Walk through the diagram. III. What are the elements that are addressed by the CMP?


Slide 21

20

Project Planning

As Project Manager you are responsible for

X Ensuring CMP is prepared according to overall proejctrequirements

X Reviewing and approving the CMP

X Issuing the CMP to the customer

Construction Management Plan (CMP)

What are the Project Managers responsibilities? As Project Manager you are responsible for: Reviewing and approving the CMP Issuing the CMP to the customer. Discuss. Refer to Participants Manual page 21.

Slide 22

21

Project Planning

X Reviewing Construction Management Plan (CMP)

X Determining responsibilities at the siteCustomer and other stakeholders

X Reviewing Mobilization Plan and considering the support servicesrequirements for mobilization

X Reviewing the Contracts Plan and confirming the contracts strategy

X Determining the project layout for all temporary facilities

X Obtaining necessary licenses and permits

X Consideration of required temporary facilities

Site Establishment and Logistics

Before construction can begin, the site facilities and services must be set up. What are the Construction Managers responsibilities for site establishment and logistics? Discuss. Refer to Participants Manual page 21-22.

Slide 23

22

Project Planning

X Establishing utilities for and at the site

X Establishing facilities at the sitefor example, transport and storage, accommodation, sanitary arrangements, fire and other hazard protection

X Developing site administration procedures

X Developing a HSE plan for the site

X Setting up site offices and services

X Developing a plan to resolve site-related issues

X Developing site security procedure

Site Establishment and Logistics, continued

Discuss Refer to Participants Manual page 21-22 Ask Review Questions on pages 21-22


Slide 24

23

Agenda


Transition We have covered Project Planning, and we will now move on to discuss Constructability.


Constructability

Slide 25

25

Constructability

X Ensures that BOD covers all construction cases i.e. Fabrication location, transportation and installation techniques

X When is Construction Team input required in a project

X What questions does constructability address Can it be constructed and how best to do it efficiently Can it be maintained Can it be operated

Construction Team Input into Execution Planning and Design

Ask participants When is the Construction Teams input required in a project? Construction Team input is required early in a projects development and needs to be continued through to execution. This input is necessary to determine constructability and the projects schedule.

I. What questions does constructability address? II. What are your responsibilities as Project Manager for

constructability? Discuss. Refer to Participants Manual page 23.

Slide 26

26

Constructability

X Safety, including safety in design

X Interfaces with operations and other contracts

X Ability to pre-assemble as much as possible off site or on the ground prior to erection

X Installation access

X Transportability

X Ease of construction

X Standardization

X Ease of Commissioning

Constructability Reviews

I. When are constructability reviews conducted? During tender or feasibility stages. More detailed and thorough reviews during detailed

design stages. Often conducted at the 10-20% and 50-60$ stages.

II. What do constructability reviews include? Discuss. Refer to Participants Manual page 24-25.

Slide 27

27

Constructability

X Cost effectiveness

X Fabrication, Installation and Completions methodologies to reduce schedule

X A check that design cases cover Construction Phases as appropriate and not just operating conditions

Constructability Reviews continued


Slide 28

28

Constructability

X Inputs to ALL Plans including BOD and project schedule

X Specific constructability checklists across all functions, scope and disciplines

X Action lists for changes to design and procurement

X Early planning for proper activity sequencing including Completions

X Identifying any unusual factors affecting construction

X Identifying any unusual costs not identified by normal estimating methods

Constructability Reviews Outputs

What are the outputs of Constructability reviews? Discuss. Refer to Participants Manual page 25.


Slide 29

29

Constructability

X Identifying staffing requirements, facilities, warehousing, documentation, information flow, quality, safety, cost and schedule

X Identifying heavy lift/rigging plans requirements and development of cost options for major and complex lifts

Constructability Reviews Outputs Continued


Slide 30

30

Constructability

X Methodology Pre-assembly

X Methodology modularization

X Early definition

X Module grade levels

X Module configuration

X Module sizing

X Module contents

Modularization and Pre-assembly

I. What is modularization? A technique which involves and affects all phases of design, procurement and construction/erection.

II. What are the opportunities for modularization and pre-assembly?

Discuss. Refer to Participants Manual page 26-28. Ask Review Questions. Refer to Participants Manual page 28-29

Slide 31

28

Constructability

X What are five examples of benefits that constructability gives to a project?

X What would each benefit mean for a projects schedule and costs?

Activity One Group Discussion

Activity 1 Group Discussion Provide at least five examples that indicate the benefits that constructability gives to a project and what they would mean for a projects schedule and costs. Divide participants into small groups to answer questions and then share answers with large group. (Optional ask question to large group and discuss).

Slide 32

29

Agenda


Transition We have covered Constructability and we will now move on to discuss Site Organization and Resource Management.


Site Organization and Resource Management

Slide 33

33


X Mechanical / Piping / Structural Superintendent

X Electrical and Instrumentation Superintendent

X Civil and Earthworks Superintendent

X Scaffolding Superintendent

X HSEC Advisor(s)

X Tie-in Coordinator (BrownfieldsProjects)

Site Organization RolesThe organization structure is dependant on the size, contracting strategies and complexity of the project and may differ than what is typically shown in the charts

X Document Controller

X Field Engineering

X QA/QC Inspector

X Senior Planner/Scheduler

X Senior Cost Engineer

X Senior Contracts Engineer.

Key roles and reporting lines for projects should be set out in organization charts. The detail in the charts will depend on the: Size and complexity of the job Projects construction and contracting strategies. Discuss the roles that are included in the construction site organization. Refer to Participants Manual page 31.

Slide 34

31

Sample Project Organization Chart

Comm Org Chart

Lead Civil/Structural

Engineer

Lead Piping Engineer

Lead Electrical Engineer

Const Org

Chart

WorleyParsons Project Sponsor

Customer Project Manager

Project Quality Manager

Administrative Assistant

HSE Manager Procurement Manager

Project Engineer Manager

Engineering Manager

Construction Manager

Project Controls Manager

Commissioning Manager

Lead Cost Engineer

Prime Contract Administrator

Lead Planner

Lead Estimator

Project Accountant

Purchasing Supervisor

Materials Management Supervisor

Vendor Inspection

Coordinator

Contracts Supervisor

MCS Supervisor

Lead Document Controller

Lead Process Engineer

Piping Design Coordinator

Lead Mechanical Engineer

Lead Control Systems Engineer

WorleyParsons Project Manager

The construction organization and staffing arrangements must be documented in a Construction Staffing Plan that requires periodic updating. Refer to Participants Manual page 32.

Slide 35

32

Construction Site Organization Chart

Construction Engineering

Resident Engineer Office Engineer Field Engineer Document Control

Project Controls

Cost Planning Estimating Reports

Site Services

Office Services Human Resources Industrial Relations Accounting

Materials Management

Materials Control Warehouse Field Purchasing

Contract Administration

Quantity Surveyors

Construction Supervision

Civil/Structural Mechanical Electrical Piping I & C Welding Tools & Equipment

Construction Inspection

Civil/Structural Mechanical Electrical Piping I & C Welding

HSE

Health Safety Environment

Project Quality Manager

WorleyParsons Project Manager

Construction Manager

Explain Organization Chart. Refer to Participants Manual page 33.

Slide 36

36

Sample Completions Site Organization Chart

CompletionsManager

CommissioningSuperintendent

Permit To WorkCoordinator

Handover/Turnover

Coordinator

PunchlistCoordinator

CommissioningPlanner

SeniorCommissioning

DisciplineTechnicians

CommissioningDiscipline

Technicians

OperationsRepresentative

WorleyParsonsProject Manager

CommissioningEngineer

-Electrical-Instrument-Process-Mechanical


CompletionsManager

CommissioningSuperintendent

Permit To WorkCoordinator

Handover/Turnover

Coordinator

PunchlistCoordinator

CommissioningPlanner

SeniorCommissioning

DisciplineTechnicians

CommissioningDiscipline

Technicians

OperationsRepresentative

WorleyParsonsProject Manager

CommissioningEngineer



Explain Organization Chart. Refer to Participants Manual page 34.

Slide 37

37


X Construction Staffing Plan Preliminary plan to be developed at FEED to form basis of CM Labor

estimate

Project, Construction and HR Managers to formulate proposed construction organization resource plan

X Obtaining suitably experienced staff, subcontractors Project, Construction, Procurement and HR Managers to source

X Demobilization Conducted either by the Construction or Completions Managers

Resource Management

The Project Manager and the Construction Manager develop a proposed construction organization and resource plan for the project, involving human resources (HR) Proposed contracting strategies are discussed and agreed. A demobilization plan is prepared for the site. Discuss. Refer to Participants Manual page 35-36. Ask Review Questions Refer to Participants Manual page 36.


Slide 38

35

Agenda


Transition We have covered Site Organization and Resource Management and we will now move on to discuss Communication and Teamwork.


Communication and Team Work

Slide 39

39


X As a Project manager encourage a Positive project culture

X Mutual trust and team respect

X Team work Coordination Cooperation Communication Compromise, and Trust

Project Culture, Trust and Teamwork

Ask participants

I. How would you recognise a positive team culture? II. What, in your experience, undermines trust on a team? III. What, in your experience, does an effective Project

Manager do to build trust on a team? Discuss. Refer to Participants Manual page 37.

Slide 40

40


X Ensure Construction and Completions Managers are included in key project meetings

X Project meetings to be held on site at regular intervals during Construction phase

X Have engineering spend time on the construction site to conduct follow on engineering

X Have a well-defined and adequately resourced Field Engineering group to manage on-site engineering queries linking back to the Home Office

X Construction and Completions to be included in project team building sessions.

Home Office and Site Office Communication and Teamwork

What are the keys to success for a Project Manager do to improve home office and site office communication? Discuss. Refer to Participants Manual page 37.

Slide 41

41


X Regular on-the-job meetings

X Ensure work is organised according to schedule

X Ensure that the Site logistics plan supports all phases of the project

X Monitoring and expediting the processing of shop drawings, samples and other submittals for approval in a timely manner

X Immediate reporting of damage or loss

Coordination

Your role as Project Manager is to provide support and guidanceto the Construction and Completions Management Teams

How can a Project Manager provide support and guidance to support the project team? Refer to Participants Manual page 37.

Slide 42

39


X Settling money issues promptly

X Submission of progress and final payment applications using the contracts established procedure

X Communications between the construction Contractor and the engineer being facilitated through WorleyParsons

X Nurturing relationships being conducted between WorleyParsonsConstruction Management Team and construction Contractorsauthorized representatives

Cooperation

Your role as Project Manager is to encourage cooperation

What is the role of the Project Manager to foster cooperation? Discuss. Refer to Participants Manual page 38-39. Ask Review Questions. Refer to Participants Manual page 39

Slide 43

40

Agenda


Transition We have covered Communication and Team Work and we will now move on to discuss Issue Resolution.


Issue Resolution

Slide 44

41

Issue Resolution

X What is the effect of saving up issues for resolution later

Problem

X What should Project Managers do about resolving issues

Action

Ask participants

I. What is the effect of saving up issues for resolution later?

II. What should Project Managers do about resolving issues? Discuss. Refer to Participants Manual page 40.

Slide 45

42

Agenda


Transition We have covered Issue Resolution, and we will now move on to discuss Quality Management.


Quality Management

Slide 46

43

Quality Management

X Project procedures

X Quality processes used at project level

X Continuous improvement

X Audit program

Quality Assurance Plan

What does the Quality Assurance Plan cover? Are Construction Contractors accountable to the Project Manager? No. Construction Contractors are accountable to the Construction Manager and project personnel and are accountable to the Project Manager. Discuss. Refer to Participants Manual page 42.

Slide 47

47

Quality Management

X Reporting deficiencies that may affect delays in completion of work

X Issuing of Non-conformance Reports and Corrective Action Requests to the Construction Manager

X To accurately reflect the project Quality Plan expectations and desired outcomes

Construction Contractors Responsibilities for Quality Control

What are the Construction Contractors responsibilities for Quality Control? Discuss. Refer to Participants Manual page 41.

Slide 48

49

Quality Management

X Ensures the status of inspection and test is known at all times

X Provides documentary evidence of the satisfactory completion of required tests

Inspection and Test Plans

I. What is the purpose of the Inspection and Test Plans?

II. How are they used? Discuss. Refer to Participants Manual page 42.

Slide 49

50

Quality Management

X Checklists provide a verification record of a test

OR

the completion status prior to a non-reversible step

X An inspector produces a Defect List when they find defects or requirements for rework

Checklists and Rectification of Defects

How are checklists and rectification of defects used? Discuss. Refer to Participants Manual page 42.

Slide 50

51

Quality Management

X A construction contractor may request inspection clearance from the Site Inspector

X Where the inspector finds defects a punch list must be attached to the Inspection Release Certificate.

X Punch list Can only be cleared by the site supervisory team and forms

part of the contract quality records

Indicates the category of the punch list items and dates by which they will be completed.

Inspection Completion and Punch Listing

What happens if the Inspector discovers defects? Discuss. Refer to Participants Manual page 42.


Slide 51

52

Quality Management

X Construction contractors must provide a Manufacturers Data Report (MDR)

X MDR contains Documentary evidence of inspection and test activities As-built status of work Compliance status with relevant standards, codes and

specifications

Quality Records

I. What is an MDR?

II. How is it used by Construction Contractors? Discuss. Refer to Participants Manual page 42.

Slide 52

53

Agenda


Transition We have covered Quality Management, and we will now move on to discuss Protocols for Construction Site Visits.


Protocols for Construction Site Visits

Slide 53

53


X Is project-specific and covers legalities and that Customer requirements are addressed and who controls security and access

X Oversees project security measures

X Is reviewed by WorleyParsons Executive Project Management and the Customer

X Ensures that correct Inductions and Orientations are conducted i.e. Permanent Construction Personnel Visitors Inducted but infrequent visits Surveillance Visits

The Security Plan

What is the difference in protocol between: I. Visitors

II. Infrequent visitors III. Surveillance visits.


Slide 54

54


X Minimum PPE requirement Safety boots Hard hat Safety glasses Long trousers Long sleeve shirts High visibility vest or clothing

X Additional PPE requirement Mono-goggles Gloves Hearing protection Fire retardant clothes

Dress Code

What are the PPE requirements for dress code? Discuss. Refer to Participants Manual page 44. Ask Review Questions. Refer to Participants Manual page 44-45

Slide 55

56

Agenda, continued


Transition We have covered Protocols for Construction Site Visits, and we will now move on to discuss Health, Safety and Environment (HSE).


Health, Safety and Environment (HSE)

Slide 56

56


X Safety is the Number One Concern of Construction work as it is conducted in high risk areas

X Zero Harm applies to all projects

X Promotion of safety culture

Safety

I. What work experiences have reinforced the importance to you of Zero Harm?

II. Who is responsible for Zero Harm?


Slide 57

57


X Risk analysis Project Risk assessment Construction Risk Assessment Job hazard Analysis (JHA)

X Contractor selection Based on proven safety commitment and performance Documented proof of a Company Health and Safety Program Development of a Project specific OHS&E Management Plan Conscious effort to avoid hazardous situations by planning and risk

assessments

Strategies for Promoting Safety

As Project Manager, what strategies are available to you for promoting safety? Discuss. Refer to Participants Manual page 46-47.

Slide 58

58


X Other strategies Safety in design Plans and preparation for emergency conditions Periodic controlled audits on performance Quick and firm response if sub-standard performance found Recognition of safety performance and commitment Follow-up of OSH&E performance at contract close-out

X Proactive involvement of key Construction Contractors Involve Contractors in regular on site HSE meetings

Strategies for Promoting Safety, continued

Discuss. Refer to Participants Manual page 47

Slide 59

59


X Training and Inductions of Contractor personnel

X Site Safety policies and Procedures Develop a written safety policy of commitment to national and

state safety laws and regulations

Produce a comprehensive suite of safety procedures for use on site

Ensure that adequate safety equipment is available

Strategies for Promoting Safety, continued


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X Ensure a positive culture of relationships and communication by: Early analysis of project scope to identify key risk areas Early involvement of key Construction Contractors Clear communication of safety approach, programs, roles and

responsibilities

HSE incident reporting Regular Job Start meetings Toolbox meetings Job Hazard Analysis (JHA), Safe Working Instructions Take 5 Continuous Improvement activities Site notice board

Safety Communication


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X Project Environmental Plan All personnel are responsible for environmental observance

and accountability

X Impact of unforeseen environmental problems Ensure contingencies are in the budget for unforseen

problems

Resolve issues expediently Insurance concerns and project lenders liabilities Adverse impact on community

Environment

I. What issues does the Project Environmental Plan cover?

II. What might be the risks of unforeseen environmental problems?



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Agenda, continued


Transition We have covered Health, Safety and Environment (HSE) and we will now move on to discuss Industrial Relations.


Industrial Relations

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X What is the purpose of the Industrial Relations (IR) Strategy To manage Industrial relations during Define and Execute phases to

minimize time lost due to Industrial disputes The Industrial Relations must be jointly managed by the Project and

Construction Managers throughout the Project lifecycle

X What are the requirements of the IR Plan Where there is a need to have one within a project area To reflect our global requirements of managing IR That it be a sub-section of the PEP

X Who is in the IR Team The Customer, WorleyParsons IR specialist, Project Manager,

Construction Manager and collective Construction Contractors

Industrial Relations Strategy

I. What is the purpose of the IR Strategy?

II. What are the requirements of the IR Plan?

III. Who is in the IR Plan development team? Discuss. Refer to Participants Manual page 50.

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X Jointly responsible for policies, procedures and principles contained in the IR approach with the Construction Manager

X Workplace consultative committees

Management of Construction Contractor Industrial Relations

I. What are the main considerations for managing Construction Contractor Industrial Relations?

II. Why would you include Construction Contractors in

workplace consultative committees? Discuss. Refer to Participants Manual page 50-51. Ask Review Questions. Refer to Participants Manual page 51-52

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Agenda, continued


Transition We have covered Industrial Relations and we will now move on to discuss Risk ManagementConstruction.


Risk Management - Construction

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Risk Management Construction

X Risk Management Workshops Ensure that both Construction and Completions participate to

capture activity risks

X Planning and review process The process to capture all activities so that they can be

performed in a safe and timely manner

All activities should be aligned with the OneWay to Zero Harm philosophy

Aligning with Corporate Zero Harm

What experience do you have of planning and review for construction and pre-commissioning? Discuss. Refer to Participants Manual page 53.

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X Maximize Customer satisfaction

X Minimise risk Contractual/commercial exposures such as process and

performance guarantees, warranties, liabilities

Labor productivity risks for lump sum projects Supervisory quality Staff availability, morale, competency, retention HSE & security Intellectual Property (IP) protection Business ethics

Construction Risk Key Elements

How is construction risk managed to: I. Maximize customer satisfaction

II. Minimize risk? Discuss. Refer to Participants Manual page 53.

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The hierarchy of control is the systematic strategy used to:

X Elimination

X Substitution

X Engineering

X Administration

X Personal protection equipment

Risk/Hazard Control

I. What is the hierarchy of control? The systematic strategy is used to control exposure to the hazard.

II. How are controls ranked? In order of their effectiveness and desirability. Discuss. Refer to Participants Manual page 53-54.

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X Continuous education and training in safety and safety awareness

X Strict safety requirements and experienced safety supervision

X Regular safety inspections and audits to verify compliance

X Requirements of the Construction Safety Case

X Requirements of Operational Safety Case

X Permit to Work System (requires Permit Holders)

Mitigation Plans

What is included in Mitigation Plans? Discuss. Refer to Participants Manual page 54.

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X Excavation Procedure

X Works executed under an approved Work Instruction

X Construction HAZID Workshops and Risk Analysis Workshops

X Customer presence for tie-ins and shutdowns.

X Close interaction between construction and commissioning phases

Mitigation Plans, continued


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Agenda, continued


Transition We have covered Risk Management - Construction, and we will now move on to discuss Construction and Field Procurement.


Construction and Field Procurement

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X Market conditions

X Division of work

X Project Schedule (and other KPIs)

X Quality of scope definition

X Customer staffing model for the project

Considerations for Construction Contracts

I. What are the considerations for contract types?

II. What are examples of contract types? Discuss. Refer to Participants Manual page 55.

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X Lump sum

X Reimbursable

X Cost plus fixed fee

X Unit rate

X Mixed strategy

X Day work

X Incentive based

Examples of Construction Contracts

What types of contracts are there? Discuss. Refer to Appendix C Refer to Participants Manual page 55.

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X Key decisions and operational directions Construction Manager participates in key decision and

operational directions including assisting in the compilation ofSoW, Tender reviews and Construction Contractor selection

X Site requisitions These are primarily used where a service is not covered by a

project office issued contract or purchase order

X Program for site purchasing The Project Procurement Management Procedure will confirm

the limits set for site purchases

Interface between Construction and Procurement

I. What is the Construction Managers involvement with Procurement?

II. What are site requisitions used for?


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X Materials Management Inspection and expediting Materials receipt, quality control and inspection, identification

and resolution of deviations, item identity/tagging, and quarantine

Warehousing Issue control Material reconciliation Surplus identification Storage, packing and preservation requirements

MARIAN

I. What does materials management include?

II. What is the importance to the project of competent Construction Contractors?


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X The construction team administer the construction Contractors activities on site

X Vendor representations Construction and Completions interface with Engineering

office to establish vendor timing to site and arrange visit via Procurement

Contracts placed by the Customer

Encourage a Customer to relinquish control of the Contractor for the full duration of the Contract

Managing Site Contracts

I. What documents would you refer to in order to manage site contracts?

II. What happens if the customer wants to use an incumbent

contractor? Discuss. Refer to Participants Manual page 57-58. Ask Review Questions. Refer to Participants Manual page 58-59


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Agenda, continued


Transition We have covered Construction and Field Procurement and we will now move on to discuss Construction Control and Reporting.


Construction Control and Reporting

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X Construction progress against the budget and schedule

X Contractor reporting of all contracts involving works at a construction site

Construction Progress Measurement and Control

Who is involved in construction progress measurement and control? Discuss. Refer to Participants Manual page 60.

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X Construction KPIs Meet project health and safety requirements Meet project schedule Meet project budget Meet project quality objectives Minimize environmental impact during construction Minimize inconvenience to local community and landowners Meets the Customers expectations

Construction Progress

Progress is determined based on the measurement of physical quantity of work done

Measurement Tools and Methodologies

I. What are some of the relevant KPIs?

II. How is construction progress determined?

III. How are construction forecasts created?

IV. How is contractor performance measured? Discuss. Refer to Participants Manual page 60-61.

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Construction Forecasts

Baseline schedule is used to monitor progress Schedule critical paths is update weekly

Contractor Performance Measurement

Earned hours by task are calculated by the actual progress achieved

Performance against the budget is monitored comparing actual vs earned hours

Measurement Tools and Methodologies, continued


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X Report Format Reports must follow format as agreed between the Project Manager

and the Customer

X Construction Site Reports Safety Incidents, near misses and hazard identification Progress, summary of activities, key deliveries at site Details about these reports are listed in the Progress Measurement

Construction Guideline, PCP-0005 Numbers of personnel on site, broken down by Construction

Contractor and construction work, supplier, material and equipment Areas of concern Contractual issues, variations, field instructions raised Other as agreed

Construction Reports

I. What is included in the format for construction reports?

II. What is included in Construction Site Reports? Discuss. Refer to Participants Manual page 62.

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X Construction Project Meetings Construction Contractor progress meetings are convened

weekly

Shorter duration projects may require meetings twice a week Project Manager should attempt to participate in progress

meetings at least once per calendar month.

Agenda Minutes

Project Meeting

I. How often should construction site meetings be held?

II. How often should the Project Manager attend? Discuss. Refer to Participants Manual page 63. Ask Review Questions. Refer to Participants Manual page 63- 64


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Agenda, continued


Transition We have covered Construction Control and Reporting, and we will now move on to discuss Document Management.


Document Management

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Document Management

X Specific constructability checklist

X Construction Management Plan

X HSE Management Plan

X Environmental Management Plan

X Drawings

Controlled Documents

What are the controlled documents that you would include in a project? Discuss. Refer to Participants Manual page 65.

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Document Management

X Formal, documented procedure

X Procedure covers receipt, issue, transmittal and recording of drawings, specification and other documents

X Includes documents issued to or received from Contractors

X Documents must be uniquely numbered and registered

X Document Controller is responsible for document management and control

Document Control Procedure for Construction Site

All documents must be reviewed and signed off before issuing a transmittal. Discuss review and sign-off process. Discuss. Refer to Participants Manual page 65.

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Document Management

X A document and drawing library must be maintained at the Construction site office

Document Review and Sign-off

Document Control Registers

X Document Control Registers must be maintained for all drawings, documents and correspondence

Discuss Document Control Registers. Discuss. Refer to Participants Manual page 66.

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Agenda, continued


Transition We have covered Document Management and we will now move on to discuss Commissioning and Turnover Documentation.


Completions Commissioning and Turnover to the Customer

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X Pre-commissioning is now referred to as Commissioning Stage 1 Historically referred to as pre-commissioning

X Commissioning has four stages Commissioning Stage 1 Mechanical Completion Commissioning Stage 2 Function Testing Commissioning Stage 3 System Commissioning Commissioning Stage 4 Start-up and Ramp-up

Completions

I. Pre-commissioning is referred to as Commissioning Stage 1.

II. Commissioning has four stages. Discuss. Refer to Participants Manual page 67.

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X Commissioning Stage 1 Mechanical Completion Features of this phase will include: Single discipline activity. Static or un-energized checking of equipment and components to

ensure specification compliance and correct installation.

Includes device installation checks. Calibration checks. Includes cable insulation and continuity checks. Includes motor rotation checks using rotation instruments Piping hydro-testing (usually completed in the fabrication yard) and

flushing.

Leak testing. Bolt up and torqueing verification (usually in conjunction with QA

Inspection).

Completions

What are the features of Commissioning Stage 1? Discuss. Refer to Participants Manual page 67-68.

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Preparation of site teams for introduction of power and upcoming live plant testing.

First fill lubrication of equipment Alignment checking Preservation and warehousing. Acceptance of Red line As Built Documents. Inspection, agreement of the Mechanical Completion Punch List. Entry of all punch list items into CMT.

Completions, continued


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X Commissioning Stage 2 Function testing Single discipline activity. Energized function testing. Completions phase Permit to Work system is in place. Inspection and agreement of the Stage 2 Punch List. Entry of all punch list items into CMT.


What are the features of Commissioning Stage 2? Discuss. Refer to Participants Manual page 68.

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Customer Operations participation in these activities is now mandatory

X Commissioning Stage 3 System commissioning Transformation from static checking to live testing Dynamic testing of complete systems and sub systems Completions and placing into service the utility systems. Confirmation that systems are ready to start up or accept

product

Inspection and agreement of the Stage 3 Punch List A Pre-Start Safety Review (PSSR) Entry of all punch list items into CMT.


What are the features of Commissioning Stage 3? Discuss. Refer to Participants Manual page 68-69.

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All work will be completed by system or area previously identified and included in the completions schedule

X Commissioning Stage 4 Start-up and ramp-up Introduction of product (or inert medium, followed by product) Start up and ramp up to operating operational status Inspection and agreement of the Stage 4 Punch List Entry of all punch list items into CMT Turnover of process systems


What are the features of Commissioning Stage 4? Discuss. Refer to Participants Manual page 69


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X Operation & Performance Testing

X Interim Turnover to the Customer

X Interim Facilities Turnover

X Interim Facilities Turnover Features

What are the features of these functions? Discuss. Refer to Participants Manual page 70-71.

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Commissioning and Turnover Documentation

Facilities Turnover Meeting MOM Turnover Certificates Facilities Turnover Punch List Commissioning Dossier Outstanding Works Plan Site Administration Records and Reports Deliverables as per Commissioning Execution Plan


What is included in commissioning and turnover documentation? Discuss. Refer to Participants Manual page 71.

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X Effective, efficient and successful management of mechanical completion and function testing activities and interfaces between various stages

X CMT selected during BOD and implement during FEED

X Selection of CMT depends on size and complexity of project and client preference

Completions Management Tool (CMT)

I. What is the CMT? How is it used? II. What are some of the CMT issues you may find? III. How might they be addressed?

Discuss. Refer to Participants Manual page 71-72. Ask Review Questions Refer to Participants Manual page 72

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Agenda, continued


Transition We have covered Completions Commissioning and Turnover to the Customer and we will now move on to discuss Change Management


Change Management

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Change Management

X Approved procedures are in place and personnel are trained

X Compliance to procedures

X Construction Team are integrated into Management of Change process

Project Managers Responsibilities

What is the role of the Project Manager for change management on a construction project? Discuss. Refer to Participants Manual page 73.

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Change Management

X Management of Project Change Procedure

X Site Queries Procedure

X Site Based Contract Administration Procedure

Key Procedures

What are the key procedures for construction? Refer to Participants Manual page 73-74.

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Agenda, continued


Transition We have covered Change Management and we will now move on to summarise and get your feedback.


Summary and Feedback

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Summary and Feedback

X Review Learning Objectives and Outcomes

X Summary review topics

X Questions

X Evaluation

Invite final questions. Review training objectives and outcomes. Complete the training evaluation.

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Module 10 Managing Construction and Completions

Thank you for your participation

Thank participants.