Post on 14-Apr-2018
7/29/2019 Subcontractor Plan Notes.docx
1/72
23-Apr-2012
HomeAboutNewsProductsToolsLibraryForumContact
ain Menu
HomeAboutNewsProductsToolsLibraryForumContact
ibraryontent Menu
QA StandardsGeneral
ProceduresDepartment
ProceduresWork
InstructionsGeneral GuidesDesign GuidesEngineering
GuidesGeneral
Standards
DesignStandardsEngineering
StandardsSpecificationsRequisitionsFormsCost CodesPapers
PCC Software
Software for creation of pipe classes and mechanical calculation ofpiping components.Read more ...
VES Softwar
Softwvessel
search...
Home General Procedures CM-PE-705 Subcontracts Procedure
CM-PE-705 SubcontractsProcedureTable of Contents
1. Purpose2. Subcontract Responsibility and Management Policy
3. Responsibilities
4. Subcontracts Plan
5. Subcontracts Schedule
6. Subcontracts Package
7. Subcontractors List
8. Bidding Period
9. Bid Opening and Analysis
10.Negotiation and Award of Subcontract
11.Kick-Off Meeting with the Subcontract
12.Revisions to Subcontract Documents
13.Variations in Scope and Extra Work
14.Claims
15.Issue of Purchase Order Amendments
16.Progress Payment Certifcates
17.Payments to Subcontractors
18.Subcontract Close-Out19.References
http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/index.php/contacthttp://www.red-bag.com/jcms/index.php/contacthttp://www.red-bag.com/jcms/http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/contact.htmlhttp://www.red-bag.com/jcms/contact.htmlhttp://www.red-bag.com/jcms/quality-assurance-system-procedure-standard.htmlhttp://www.red-bag.com/jcms/quality-assurance-system-procedure-standard.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/department-procedures.htmlhttp://www.red-bag.com/jcms/department-procedures.htmlhttp://www.red-bag.com/jcms/department-procedures.htmlhttp://www.red-bag.com/jcms/work-instructions.htmlhttp://www.red-bag.com/jcms/work-instructions.htmlhttp://www.red-bag.com/jcms/work-instructions.htmlhttp://www.red-bag.com/jcms/general-guides.htmlhttp://www.red-bag.com/jcms/general-guides.htmlhttp://www.red-bag.com/jcms/design-guides.htmlhttp://www.red-bag.com/jcms/design-guides.htmlhttp://www.red-bag.com/jcms/engineering-guides.htmlhttp://www.red-bag.com/jcms/engineering-guides.htmlhttp://www.red-bag.com/jcms/engineering-guides.htmlhttp://www.red-bag.com/jcms/general-standards.htmlhttp://www.red-bag.com/jcms/general-standards.htmlhttp://www.red-bag.com/jcms/general-standards.htmlhttp://www.red-bag.com/jcms/design-standards.htmlhttp://www.red-bag.com/jcms/design-standards.htmlhttp://www.red-bag.com/jcms/design-standards.htmlhttp://www.red-bag.com/jcms/engineering-standards.htmlhttp://www.red-bag.com/jcms/engineering-standards.htmlhttp://www.red-bag.com/jcms/engineering-standards.htmlhttp://www.red-bag.com/jcms/specifications.htmlhttp://www.red-bag.com/jcms/specifications.htmlhttp://www.red-bag.com/jcms/requisitions.htmlhttp://www.red-bag.com/jcms/requisitions.htmlhttp://www.red-bag.com/jcms/forms.htmlhttp://www.red-bag.com/jcms/forms.htmlhttp://www.red-bag.com/jcms/cost-codes.htmlhttp://www.red-bag.com/jcms/cost-codes.htmlhttp://www.red-bag.com/jcms/papers.htmlhttp://www.red-bag.com/jcms/papers.htmlhttp://www.red-bag.com/jcms/index.php/software-products/pipe-class-component-softwarehttp://www.red-bag.com/jcms/index.php/software-products/pipe-class-component-softwarehttp://www.red-bag.com/jcms/index.php/software-products/pipe-class-component-softwarehttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#purposehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#purposehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#policyhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#policyhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#responsibilitieshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#responsibilitieshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subplanhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subplanhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subschedulehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subschedulehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subpackagehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subpackagehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#sublisthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#sublisthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#biddinghttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#biddinghttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#analysishttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#analysishttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#negotiationhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#negotiationhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#negotiationhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#kickoffhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#kickoffhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#kickoffhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#revisionshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#revisionshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#revisionshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#variationshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#variationshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#variationshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#claimshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#claimshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#claimshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#issuehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#issuehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#issuehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#progresshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#progresshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#progresshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#paymentshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#paymentshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#paymentshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#closeouthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#closeouthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#closeouthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#referenceshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#referenceshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#referenceshttp://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/component/mailto/?tmpl=component&link=12a34c5d8b280c485be67ca6fe53935c188b95c9http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html?tmpl=component&print=1&page=http://www.red-bag.com/http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#referenceshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#closeouthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#paymentshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#progresshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#issuehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#claimshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#variationshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#revisionshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#kickoffhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#negotiationhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#analysishttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#biddinghttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#sublisthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subpackagehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subschedulehttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#subplanhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#responsibilitieshttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#policyhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#purposehttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/http://www.red-bag.com/jcms/index.php/software-products/pipe-class-component-softwarehttp://www.red-bag.com/jcms/papers.htmlhttp://www.red-bag.com/jcms/cost-codes.htmlhttp://www.red-bag.com/jcms/forms.htmlhttp://www.red-bag.com/jcms/requisitions.htmlhttp://www.red-bag.com/jcms/specifications.htmlhttp://www.red-bag.com/jcms/engineering-standards.htmlhttp://www.red-bag.com/jcms/engineering-standards.htmlhttp://www.red-bag.com/jcms/design-standards.htmlhttp://www.red-bag.com/jcms/design-standards.htmlhttp://www.red-bag.com/jcms/general-standards.htmlhttp://www.red-bag.com/jcms/general-standards.htmlhttp://www.red-bag.com/jcms/engineering-guides.htmlhttp://www.red-bag.com/jcms/engineering-guides.htmlhttp://www.red-bag.com/jcms/design-guides.htmlhttp://www.red-bag.com/jcms/general-guides.htmlhttp://www.red-bag.com/jcms/work-instructions.htmlhttp://www.red-bag.com/jcms/work-instructions.htmlhttp://www.red-bag.com/jcms/department-procedures.htmlhttp://www.red-bag.com/jcms/department-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/general-procedures.htmlhttp://www.red-bag.com/jcms/quality-assurance-system-procedure-standard.htmlhttp://www.red-bag.com/jcms/contact.htmlhttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/http://www.red-bag.com/jcms/index.php/contacthttp://www.red-bag.com/jcms/red-bag-forum.htmlhttp://www.red-bag.com/jcms/red-bag-engineering-library.htmlhttp://www.red-bag.com/jcms/free-online-engineering-tools.htmlhttp://www.red-bag.com/jcms/software-products.htmlhttp://www.red-bag.com/jcms/news.htmlhttp://www.red-bag.com/jcms/about-red-bag.htmlhttp://www.red-bag.com/jcms/7/29/2019 Subcontractor Plan Notes.docx
2/72
20.Responsibility Checklist-Part I
21.Responsibility Checklist-Part II
22.Flowchart
1. Purpose
This procedure describes the basic management policy, organization and techniques employed i
field labour purchase orders, with or without supply of materials (hereafter referred to a
erection part of all supply with erection purchase orders. (The erection part hereafter ref
labour part of all purchase orders for field services, including temporary facilities. (The
The supply part of supply and erection purchase orders is handled in accordance with existingwhat subcontracting activities and/or documents are required.
This procedure does not apply to orders for engineering services only.
Note: Responsibilities of the various departments or individuals are shown in the Responsibilit
2. Subcontract Responsibility and Management Policy
Subcontracting is the responsibility of the Company Procurement Department both during prop
For fiscal reasons the functions of formulation, issue, adjudication and the administration of su
The formulation of Subcontracts is executed in the home office by a Project Subcontracts Mana
Continuity is assured by the fact that each subcontract is a stand alone document and that there
2.1 Formulation of Subcontracts
The formulation of subcontracts is performed by a Project Subcontracts Manager who is directl
The Project Subcontracts Manager as a member of the Project Management team and reports to
2.2 Administration of Subcontracts
The administration of subcontracts is also performed by the Project Subcontracts Manager who
The Project Subcontracts Manager is a member of the Site Management team and reports to the
3. Responsibilities
3.1 Manager of Subcontracts
The home office based Manager of Subcontracts has a supervisory and monitoring responsibilit
The responsibilities of the Home Office Manager of Subcontracts include:
http://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#flowcharthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#flowcharthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#flowcharthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#flowcharthttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partIIhttp://www.red-bag.com/jcms/general-procedures/461-cm-pe-705-subcontracts-procedure.html#partI7/29/2019 Subcontractor Plan Notes.docx
3/72
a. General
developing, issuing and maintaining general procedures and policies for subcontracting
maintaining the Procurement Department's computerized and worldwide Subcontractors
Directing the improvement and standardization of subcontract documents.
b. Individual projects
preparing subcontract write-ups at qualification and bidding stages of proposals in cons
advising the Project Subcontracts Manager in his contribution to the subcontracts plan.
advising the Project Subcontracts Manager in the preparation of the Special Conditions
ensuring that the subcontract progress and cost control structures have a sound technical
ensuring that client and Company subcontract requirements for the individual projects a
ensuring that the following documents will be presented to the Manager of Procurement
1. list of qualified bidders
2. bid analysis
3. award of subcontract
3.2 Project Subcontracts Manager (Home Office Activities)
The Project Subcontracts Manager has direct responsibility and authority to accomplish the foll
preparing the subcontracts plan. preparing the Special Conditions of Subcontract for the project and for the individual S
preparing sensitivity studies.
coordinating the preparation of subcontract packages with the Subcontract Coordinator
compiling of subcontract packages; ensuring that they are checked by all disciplines con
preparing of subcontract bids analyses.
organizing meetings with subcontractors.
obtaining safety and quality information, programs and procedures from potential subco
participating in project planning and scheduling of work related to Subcontracts, as well organizing and maintaining a complete file of all prequalification and bid corresponden
initiating the order preparation/issue.
The Project Subcontracts Manager informs the Project Manager, the Project Construction Mana
3.3 Project Subcontracts Manager (Site Activities)
The Project Subcontracts Manager has direct responsibility and authority to accomplish the foll
administering the subcontracts including scope and commercial matters.
acting as the single point contact for the subcontractor.
7/29/2019 Subcontractor Plan Notes.docx
4/72
controls subcontractors' manpower and progress.
controls, trends and forecasts the costs of the subcontractors.
handling of scope changes.
handling of extra work.
handling of claims, within the given limits.
closing out of the subcontracts.
preparation of subcontractor performance reports.
3.4 Project Construction Manager/Construction Coordinator
The Project Construction Manager participates in home office subcontracting activities until he
The Project Construction Manager is responsible for the project construction operations and thu
3.5 Subcontract Coordinator
The Project Manager will assign a coordinator for each subcontract early in the project.
The subcontract coordinators will ensure that drawings and free issue materials arrive in time a
The information must be channelled through the Subcontracts Manager.
4. Subcontracts Plan
4.1 Subcontract Strategy
As early as practical the Project Subcontracts Manager will consult with the Project Managercontract with the client, country where the construction work is to be done and location of tProcedure and Execution Manual (ref.19.8).
In case an initial subcontract plan has been prepared during the proposal phase then this will be
The subcontract plan should be updated regularly to implement any changes in the strategy, esti
4.2 Basic Items to be Addressed in the Subcontracts Plan (ref.19.7)
requirements for client's participation and approval.
bidding procedure.
number and type of subcontracts. (Subcontract specification).
pre-qualification requirements.
preferred price basis and the quantification requirements of each subcontract related to t
listing of anticipated supply with erection orders. (Subcontract specification).
subcontracting requirements related to the erection part of supply with erection orders.
subcontracts which require a pre-bid or bid clarification meeting.
content and status of subcontract documents.
7/29/2019 Subcontractor Plan Notes.docx
5/72
special requirements by country with regard to the selection of subcontractors and/or ad
subcontract schedule with key dates and manpower histograms.
a listing of estimated quantities (Quantity status summary).
listing of anticipated free issue materials per type of subcontracts.
5. Subcontracts Schedule
The Project Subcontracts Manager will prepare together with the Planning Engineer, the SubcoManager.
The Subcontracts Schedule indicates the individual subcontracts and defines for each subcontra
the period of preparing the subcontract package for bids.
the bidding period.
the evaluation period ending in award of the subcontract. start on site date.
documents complete.
mechanical completion date.
start-up/commissioning date.
The Subcontracts Schedule will be monitored by the Project Subcontracts Manager who will ini
6. Subcontract Package
The subcontract package "for bids" comprises all technical, commercial and scheduling inform
A bid package includes the following sections: Ref.
0 Cover Sheet + Contents (CSC)
1 Instructions to Bidders (ITB)
2 General Conditions of Subcontract (GCS) 19.2
3 Special Conditions of Subcontract, if required (SCS)
4 Safety, Health, Welfare and Environmental PolicySafety Rules and Site Regulations (SPSR)
19.3
5 Requisition (REQ)
6 List of Applicable Documents (LAD)
7 Key-date Schedule (KDS)
8 Form of Tender Descriptions (FOTD)
9 Form of Tender (FOT)
10 Specification for Site Quality Assurance/Quality Control for Subcontracts (QAM)
19.4
11 Other special documents, if required, specifications,not forming part of the technical documents as per list
of applicable documents.
7/29/2019 Subcontractor Plan Notes.docx
6/72
A package for mechanical work further includes:
12 Equipment Erection Description (EED)
Packages for work in The Netherlands may further include (depending onthe contract between client and Company):
13 Subcontracting Under the Chain Liability Act Data 19.1
Sect. 1 Instructions to Bidders
This document comprises the following:
a. The introduction, definitions, bidder's qualifications and general bid conditions (para. 1 throu
b. Special bid information, example tender statement and complete bid (para. 6 and further). Tsafety and quality to be submitted with the quotation.
Sect. 2 General Conditions of Subcontract
This document is a company standard comprising the standard conditions that apply to all subc
This document will neither be changed, nor given a job number. Any deviations will be include
Sect. 3 Special Conditions of Subcontract
Special Conditions of Subcontract are written by the Project Subcontracts Manager if and when
The (draft) Special Conditions of Subcontract will be sent to the Law Department, the H.O. Ma
The evaluation of specific country requirements will be made by the Project Subcontracts Man
Sect. 4 Safety, Health, Welfare and Environmental Policy, Safety Rules and Site Regulations
As a rule the client's safety policy and site regulations are applicable.
This document will be reviewed by the Project Construction Manager and by the home officeSPSR).
The SPSR will be checked by the Project Subcontracts Manager for consistency with the subco
If there is no client document available the Project Construction Manager will use the company
Sect. 5 Requisition
The requisition of which typical subcontract-formats are available within the Procurement Depfor quotation/purchase.
Sect. 6 List of Applicable Documents
The List of Applicable Documents shows all technical documents that (may) have a bearing on
7/29/2019 Subcontractor Plan Notes.docx
7/72
The Engineering Specialist will identify these documents and submit a draft list including docu
The completed list will be reviewed by the Project Manager or his delegate.
As the list shows documents that relate to pricing, it will not be updated to show current revisio
The Subcontracts Coordinator will arrange for printing the documents shown in the List of App
Sect. 7 Key-Date Schedule
For each subcontract the Project Subcontracts Manager with the Planning Engineer will prepare
the key-date schedule will include:
start date of construction.
periods during which the technical documents will be supplied to the subcontractor.
periods during which the equipment and/or materials will be supplied to the subcontract
key dates or milestones for certain parts of the construction work as required.
date of contractual completion.
date of subcontractors' commissioning activities.
Sect. 8 Form of Tender Descriptions
The Project Subcontracts Manager will select the sections of the standard Form of Tender Desc
Sect. 9 Form of Tender
The Project Subcontracts Manager will select the sections of the standard Form of Tender relev
The schedules available are:
ScheduleSchedule 2Schedule 3 rSchedule 4Schedule 5
ScheduleScheduleScheduleSchedule 9
A package for piling further includes:
Schedule 10 subcontractor's rig and pile data
Sect.10 Specification for Site Quality Assurance/Quality Control for Subcontracts
This specification (company standard) defines what is required from Subcontractors concerning
7/29/2019 Subcontractor Plan Notes.docx
8/72
This section should be discussed during a Clarification and/or Pre-award meeting and should be
Sect.11 Equipment Erection Description
This section only to be added with subcontract packages for mechanical work.
It gives detailed description how the equipment and in some cases in which sequence should be
This existing format should be prepared and completed by the specialist engineer in coordinatio
Sect.12 Chain Liability Act Data
This section (company standard) should be added in subcontract packages for work in The Net
It describes to the subcontractor what Company and Subcontractor have to do to meet the requi
During the negotiations with potential subcontractors, Company has to make sure that we achie
The following basic principles to be maintained and where applicable to be discussed with and
1. careful screening and selection of Subcontractors.
2. withholding from the payments to SUBCONTRACTOR amounts equal to the actual am
3. monitoring of SUBCONTRACTOR's actual manhour expenditure.
4. not assuming the role of SUBCONTRACTOR's tax and/or premiums consultant.
7. Subcontractors List
7.1 As soon as the Subcontracts Plan for the Project has been approved, the Project SubcontrDepartment's computerized Subcontractors Register.
The potential bidders' quality, past performance on safety, experience, capability, organization,package for bids (ref 19.5).
For each individual subcontract the Project Subcontracts Manager will discuss and prepare the
If required, the list will be submitted to the client for review and approval.
7.2 The number of valid bids to be obtained depends on the nature of the subcontract. The mini
8. Bidding Period
8.1 Invitation to Bid
Following approval of a subcontract package for bids, the Project Subcontracts Manager willcontact person.
8.2 Expediting of Bids
The Project Subcontracts Manager will ensure that all bidders promptly acknowledge receipt of
7/29/2019 Subcontractor Plan Notes.docx
9/72
8.3 Questions from Bidders
All communications with the bidders will be through the Project Subcontracts Manager, who w
In case a question from a bidder reveals a need for clarification or change of the bid informatio
and the Project Subcontracts Manager.
8.4 Sealed Bids
Sealed bids will be required for reimbursable projects and in those other cases where a sealed bi
8.5 Confidentiality
Bid information (bidders lists, minutes of pre-award meetings), bids and bids analyses will be d
9. Bid Opening and Analysis
9.1 Bids Receival
The Project Subcontracts Manager will receive and keep safe all bids.
9.2 Bids Opening
As soon as practical after the bid closing date, all sealed bids will be opened by the Project Sub
A bid opening protocol will be filled out by the Project Subcontracts Manager and signed by all
9.3 Subcontract Bids Analysis, Preliminary Issue
Bid evaluation criteria and/or weighing factors agreed upon early in the project in consultation
The Project Subcontracts Manager will make a detailed commercial evaluation of the bids. Wiand will submit this for review/approval to the appropriate parties.
Clarification may be obtained by telephone. However, for auditing purposes the bidder shall al
For unit rate subcontracts the Project Subcontracts Manager will prepare a sensitivity study to e
The preliminary issue of the bid analysis includes a recommendation which bidder(s) is/are tosum contracts if the final estimated costs exceed the budget. Executive involvement should be s
The approved preliminary issue of this bid analysis is the authorization for the Project Subcontr
Approval of the preliminary and final bid analysis by the client is limited to subcontracts that ar
9.4 Technical Bid Evaluation
If bidders have submitted technical alternates to their bids, the Engineering Specialist will make
Bids including detail design by the subcontractor will always be completely evaluated by the E
7/29/2019 Subcontractor Plan Notes.docx
10/72
In all other cases approval of engineering will be required for the recommendation which bidde
10. Negotiation and Award of Subcontract
10.1 Bid Clarification Meetings
The selected bidder(s) will be called in for final negotiations. The principal purpose of these many questions concerning the bidder(s) response to Subcontract Package for Bids. The meetin
properly marked-up to reflect any variations agreed to, and that minutes are kept. Samples of aof the meeting. The Project Procurement Manager as well as the Project Construction Manager
10.2 Minutes of "Pre-award" Meetings
The minutes will be numbered and distributed in accordance with the project numbering/distrib
The minutes will be numbered in sequential order.
The minutes of the meeting will be distributed (at the end of the meeting) as follows:
subcontractor
client, if applicable
Company : Project Engineer/Project Manager
Company : Project Construction Manager
10.3 Subcontract Bids Analysis, Final Issue
After the "pre-award" meeting(s) the Project Subcontracts Manager will update and finalize the
This final issue should clearly indicate the selected subcontractor with the reason(s) for the sele
Approval by the Engineering Specialist is required if a technical alternate has been selected or i
In both cases the Engineering Specialist will approve the proposed subcontractor on technical g
Approval by the General Manager or an other executive is required if the estimated final cost e
Approval by the client is required for subcontracts that are reimbursed by the client.
The approved final issue is the authorization for the Project Subcontracts Manager to inform th
10.4 Updating of Subcontract Package for Purchase
Following the selection of the subcontractor, the Project Subcontracts Manager will update the
The subcontract package "for execution" shall include all relevant sections indicated in 6.1 of t
The formal Purchase Order will be presented to the Manager of Purchasing/Subcontracts for sig
10.5 Purchase Order Acknowledgement
7/29/2019 Subcontractor Plan Notes.docx
11/72
The Project Subcontracts Manager shall ensure that the subcontractor returns the signed ackno
10.6 Unsuccessful Bidders
After receipt of the signed acknowledgement copy of the order the Project Subcontracts Manag
11. Kick-Off Meeting with the Subcontractor
After Purchase Order issue and before the subcontractor establishes himself at the site, the Prowho will decide on his or his representative's presence at this meeting.
12. Revisions to Subcontract Documents
12.1 Responsibility and Procedure
The responsibility for the preparation, input, review and approval of revisions to subcontract do
The Project Manager will arrange for all such documents to be sent to the subcontractor either:
through the Project Subcontracts Manager if the subcontractor is not established at the site, who
through the Project Construction Manager if the subcontractor is established at the site, whotransmittal acknowledgement slip.
Formal notification or confirmation of revised contractual documents will always be by the Pro
12.2 Red Flags
As soon as the home office makes significant changes to the subcontract package contents suchProject Construction Manager.
13. Variations in Scope and Extra Work
13.1 Definitions
"Variations in scope" or "scope changes" shall mean increases or decreases to the quantities sho
"Extra Work" shall mean modifications or alterations to work in progress or completed which a
13.2 Administration
Variations in scope shall be covered in an update of the Form of Tender.
On a monthly basis the Project Subcontracts Manager will determine if a Form of Tender updatthere is concern for the overall commitment. If the Project Subcontracts Manager recommends
Extra work shall be covered by Extra Work Authorizations (EWA's), which describe the work t
13.3 Pricing
7/29/2019 Subcontractor Plan Notes.docx
12/72
The Project Subcontracts Manager will prepare the required documents, will review these withManager, the Project Subcontracts Manager will advise the subcontractor accordingly.
13.4 Updating of the Purchase Order
The Project Subcontracts Manager will issue a purchase order amendment to formally incorpor
14. Claims
14.1 Definition
"Claim" shall mean a demand for payment by one party which is disputed by the other party.
14.2 Handling of Claims from Subcontractors
All claims from the subcontractor will be submitted through the Project Construction Manager
be countered by claims from Company to the subcontractor.
After review with and approval by the Project Construction Manager the Project Subcontracts
The Project Manager and the Manager of Purchasing/Subcontracts will be kept informed by the
All claims outside the limits of the Project Construction Manager's authority as well as all clai
14.3 Company Claims Against Subcontractors and Vendors
If a subcontractor fails to meet its contractual obligations Company will examine the possibility
Action will be taken with the approval of the Manager Construction.
Recoveries from vendors are usually referred to as "back-charges" and should be dealt with as o
15. Issue of Purchase Order Amendments
Purchase Order Amendments will be issued to formally incorporate in the subcontract:
all changes to subcontract documents
all approved Extra Work Authorization Reports (EWAR's)
all settled claims
Amendments will be prepared by the Project Subcontracts Manager or the Project Procurement
16. Progress Payment Certificates
At the end of each month and upon establishing and approval of the actual progress achieved,Manager and will be approved by the Project Construction Manager and the Client for reimburs
This means that all checking has been done and agreement on the amount to be paid to the subc
7/29/2019 Subcontractor Plan Notes.docx
13/72
The certificate further serves as the back-up to the invoice and must be attached thereto.
17. Payments to Subcontractors
Payments to subcontractors will be made in accordance with the agreed payment conditions inc
Invoices are usually paid by the Project Accountant following processing by the Field.
Payment may be made by the Client or by Company site personnel dependent upon the contract
When payment is by the Company site personnel a periodic audit will be carried out by the Proj
Final payment can only be made after receipt of the final payment certificate signed by the Proj
18. Subcontract Close-Out
18.1 Release of Liens
As soon as acceptance of subcontractor's work has been given by Company and where applicabLaws, Client requirements and approved by the Company Law Department.
A sample of release of liens or an equivalent document will be provided by the Project Subcont
18.2 Bank Guarantee
Company will, upon request from the subcontractor and if all above mentioned conditions a
subcontract.
18.3 Subcontractor Performance Report
For future reference the Project Subcontracts Manager, in conjunction with the Site EngineerProcurement Vendor Information system (P.C.S.).
18.4 Storage of the Subcontract File after Close-out
18.4.1 For Lump Sum Contracts
Upon completion of his work the Project Subcontracts Manager will submit his complete subco
18.4.2 For Reimbursable Contracts
After subcontract close-out the Project Subcontracts Manager will submit the complete subcont
19. References
Document Number Title Level
19.1 BN-W-UP001 Subcontracting Under the Chain Liability Act 4
19.2 BN-S-UP103 (SE00GCS) General Conditions of Subcontract 519.3 BN-S-UC002 (SC00SPSR) Safety, Health, Welfare and 5
7/29/2019 Subcontractor Plan Notes.docx
14/72
Environmental Policy, Safety Rules and SiteRegulations
19.4 BN-SP-UK001 (SE00QAM) Specification of Site QualityAssurance/Quality Control Requirements forSubcontracts
5
19.5 CM-PE-710 Procedure for the Assessment of ConstructionCapabilities of Subcontractors.
2
19.6 CM-PE-708 Purchasing Procedure 2
19.7 CM-PE-312 Planning and Quantification of Subcontracts 2
19.8 CM-PE-303 Project Procedure and Execution Manual 2
19.9 BN-CO-109 Subcontracts 3
19.10 BN-UC-107 E1 Subcontract Bid Analysis (preliminary) 5
19.11 BN-UC-107 E2 Subcontract Bid Analysis (final) 5
20. Responsibility Checklist - Part I
Part I of this checklist shows the responsibilities for subcontracts preparation up to and includin
Legend: MS = (Home Office) Manager of Purchasing/Subcontracts
PM = Project Manager
PSM = Project Subcontracts Manager
ES = Engineering SpecialistPL = Planning Engineer
PCM = Project Construction Manager
PPM = Project Procurement Manager
SC = Subcontract Coordinator
Note: 1 = Law Department
2 = Manager of Construction
3 = Manager of Procurement
4 = Client (if applicable)
5 = Manager QA & Safety
ReferenceSection
MS PM PSM ES PL PCM PPM SC Note
4.2 GENERAL
Subcontracts Plan
-Preparation by: x-Input x x x x 4
7/29/2019 Subcontractor Plan Notes.docx
15/72
-Check by: x 4
- Approval(initial/sign)
x
5.0 Subcontracts Schedule
-Preparation by: x-Input x x x x
-Check by: x
-Approval (initialsign)
x
7.1 List of Qualified Bidders
-Preparation by: x
-Input x x x
-Review x 3/4
-Approval (sign) x
6.0 SUBCONTRACT PACKAGE
Cover Sheet and Contents
-Preparation x
-Check by: x
-Approval (sign) x
6.1 Instructions to Bidders
-Preparation by: x-Input x x x
-Approval (sign) x
6.2 General Conditions of Subcontract(Company Standard)
6.3 Special Conditions of Subcontract
-Preparation by: x
-Input x x x 1/4
-Check by: x 1
-Approval (sign) x6.4 Safety, Health, Welfare and
Environmental Policy, Safety
Rules and Site Regulations(if company standard needs update)
-Preparation by: x
-Review x
-Approval x
6.5 Requisition
-Preparation x-Input x x
7/29/2019 Subcontractor Plan Notes.docx
16/72
-Review x
-Approval x
6.6 List of Applicable Documents
-Preparation x
-Input x x
-Reviewxor
x x
-Approval (sign) x
Expedite documents x
Compile sets x
6.7 Key Dat Schedule
-Preparation x x
-Input x x x x x
-Review x
-Approval (sign) x
6.8 Form of Tender Descriptions
-Preparation x
-Input x
-Review x
-Approval (sign) x
6.9 Form of Tender
-Preparation x
-Input x x
-Input quantities x
-Review x
-Approval (sign) x
10 Specification of Site Quality Assurance/Quality ControlRequirements for Subcontracts(Company Standard)
11 Equipment Erection Description
-Preparation by: x-Input x
-Approval (sign) x
12 Chain Liability Act Distribution(Company Standard)
6.0 Total S/C Package with Transmittal Letter
-Checking x
-Approval (sign) x
8.0 BIDDING PERIOD
7/29/2019 Subcontractor Plan Notes.docx
17/72
7.1 Shortlist of Bidders
- Action x
- Approval (sign) x x 4
8.1 Invitation to Bid
-Action x
-Signature x
8.2 Bids
-Expediting x
-Receipt,distribution andsafekeeping
x
8.3 Questions fromBidders
- Handling x
BIDS EVALUATION PERIOD
9.2 Bids Opening
-Action x
-Witnessing (sign) xor x x
9.3 Bids Evaluation1. Commercial
-Action x
-Review x9.4 2. Technical Evaluation
-Action x
-Review x x x x
Bid Analysis Preliminary Issue
-Preparation x
-Approval (sign) x x x x 3(1)4
10.1 Bid Clarification Meetings
-Action x
-Participation x x x x x 4/5
-Participation asrequired/on call
x
10.3 Bid Analysis, Final Issue
-Preparation x
-Review x x x
-Approval(sign) x x x x 3(1)4
10.4 Update of S/C Package for Execution
7/29/2019 Subcontractor Plan Notes.docx
18/72
-Preparation x
-Review x
-Approval (sign) x
10.4 Purchase Order
-Preparation x
-Approval x x(2) 3(1)
10.5 Purchase Order Acknowledgement
-Action x
(1) will sign together with(2) at site by Construction Manager provided authorization letter has been issued
21. Responsibility Checklist - Part II
Part II of this checklist shows the responsibilities for subcontracts administration up to and incl
Legend: MS = (Home Office) Manager of Subcontracts
PM = Project Manager
PCM = Project Construction Manager
ES = Engineering Specialist
PPM = Project Procurement Manager
PSM = Project Subcontracts Manager
SI = Site EngineerSC = Subcontract Coordinator
Note: 3 = Manager of Procurement
4 = Accountant
ReferenceSection
MS PM PSM ES PCM PPM SI SC Note
11. Kick-off Meeting withSubcontractor
-Action x
Final Drawing Quantity Take-off
-Preparation x x
-Review x
-Transmit to Subcontractor x
Form of Tendere Update
-Decision to implement x x
-Preparation x
7/29/2019 Subcontractor Plan Notes.docx
19/72
-Forecast of Quantities x x
-Review x x
-Approval x
-Implementation x
13.2 Extra Work Authorization -Specific Job Procedure
-Prepartion x
-Input x x x
-Review x
-Approval (sign) x x
14.0 Claims and Backcharges
-Preparation x
-Input x x x
-Review x
-Approval x x
-Processing x
16.0 Progress Payment Certificates
-Preparation x
-Input x
-Review x x
-Approval x
17.0 Payment to Subcontractors-Approval x x
-Action 4
12.0 Revision to S/C Documents
-Approval x x
-Processing x
15.0 Issue of P.O. Amendments
-P.O.A.R. x
-Approval (sign)x x x 3
4
-Action x
18.0 Subcontract Close-Out
-Preparation x
-Input x
-Review x x
-Approval x x
-Final P.O. amendment x
22 Flowchart
7/29/2019 Subcontractor Plan Notes.docx
20/72
Image A-D
7/29/2019 Subcontractor Plan Notes.docx
21/72
Image A
Image B
7/29/2019 Subcontractor Plan Notes.docx
22/72
Image C
7/29/2019 Subcontractor Plan Notes.docx
23/72
Image D
7/29/2019 Subcontractor Plan Notes.docx
24/72
7/29/2019 Subcontractor Plan Notes.docx
25/72
'reliability is yet to become the most important characterstic of modern companies'home|privacy|legal 2001 - 2011 Red-Bag
http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/http://www.red-bag.com/jcms/index.php/about-red-bag/privacyhttp://www.red-bag.com/jcms/index.php/about-red-bag/privacyhttp://www.red-bag.com/jcms/index.php/about-red-bag/privacyhttp://www.red-bag.com/jcms/index.php/about-red-bag/legalhttp://www.red-bag.com/jcms/index.php/about-red-bag/legalhttp://www.red-bag.com/jcms/index.php/about-red-bag/legalhttp://www.red-bag.com/jcms/index.php/about-red-bag/legalhttp://www.red-bag.com/jcms/index.php/about-red-bag/privacyhttp://www.red-bag.com/jcms/7/29/2019 Subcontractor Plan Notes.docx
26/72
23-Apr-2012
HomeAboutNewsProductsToolsLibraryForumContact
Main Menu
Home
About
News
Products
Tools
7/29/2019 Subcontractor Plan Notes.docx
27/72
Library
Forum
Contact
Library Content Menu
QA Standards
General Procedures
Department Procedures
Work Instructions
General Guides
Design Guides
Engineering Guides
General Standards
Design Standards
Engineering Standards
Specifications
Requisitions
Forms
Cost Codes
Papers
PCC Software
Software for creation of pipe classes and mechanical calculation of piping components. Read
more ...
VES Software
Software for the design and mechanical calculation of pressure vessels and heat exchangers.
Read more ...
7/29/2019 Subcontractor Plan Notes.docx
28/72
Home General Procedures CM-PE-705 Subcontracts Procedure
CM-PE-705 Subcontracts Procedure
Table of Contents
Purpose
Subcontract Responsibility and Management Policy
Responsibilities
Subcontracts Plan
Subcontracts Schedule
Subcontracts Package
Subcontractors List
Bidding Period
Bid Opening and Analysis
Negotiation and Award of Subcontract
Kick-Off Meeting with the Subcontract
Revisions to Subcontract Documents
Variations in Scope and Extra Work
Claims
Issue of Purchase Order Amendments
Progress Payment Certifcates
Payments to Subcontractors
Subcontract Close-Out
References
Responsibility Checklist-Part I
Responsibility Checklist-Part II
Flowchart
7/29/2019 Subcontractor Plan Notes.docx
29/72
1. Purpose
This procedure describes the basic management policy, organization and techniques employed in
subcontracting programs. This procedure applies to orders, placed or intended to be placed, foractivities involving site labour. This includes:
field labour purchase orders, with or without supply of materials (hereafter referred to as
"Subcontracts").
erection part of all supply with erection purchase orders. (The erection part hereafter referred to as
"Subcontracts")
labour part of all purchase orders for field services, including temporary facilities. (The labour parthereafter referred to as "Subcontracts")
The supply part of supply and erection purchase orders is handled in accordance with existing
Procurement procedures (ref.19.6). For the erection part of such orders, (ref.19.9) to which this
Subcontracts Procedure applies, the Manager of Subcontracts decides on a case-by-case basis what
subcontracting activities and/or documents are required.
This procedure does not apply to orders for engineering services only.
Note: Responsibilities of the various departments or individuals are shown in the Responsibility
checklist at the end of the procedure.
2. Subcontract Responsibility and Management Policy
Subcontracting is the responsibility of the Company Procurement Department both during proposal
and project execution phases.
For fiscal reasons the functions of formulation, issue, adjudication and the administration of
subcontracts are kept strictly separate.
The formulation of Subcontracts is executed in the home office by a Project Subcontracts Manager
who will also execute the administration on site. Progress reporting regarding the status of each
subcontract to be coordinated with the Project Procurement Manager.
7/29/2019 Subcontractor Plan Notes.docx
30/72
Continuity is assured by the fact that each subcontract is a stand alone document and that there is
maximum standardization in subcontract format, layout, contents and text.
2.1 Formulation of Subcontracts
The formulation of subcontracts is performed by a Project Subcontracts Manager who is directly
responsible for all subcontracting activities in the home office, from preparation up to and including
award of the Subcontracts.
The Project Subcontracts Manager as a member of the Project Management team and reports to
the Project Manager, who has ultimate responsibility for all subcontracting activities including client
liaison and approvals.
2.2 Administration of Subcontracts
The administration of subcontracts is also performed by the Project Subcontracts Manager who is
directly responsible for all subcontracting and subcontract administration activities on site up to and
including subcontract close-out.
The Project Subcontracts Manager is a member of the Site Management team and reports to the
Project Construction Manager who has ultimate responsibility for all subcontracting activities on
site. Where required he will be supported by the Manager of Subcontracts.
3. Responsibilities
3.1 Manager of Subcontracts
The home office based Manager of Subcontracts has a supervisory and monitoring responsibility for
all construction subcontracts handled by Company, during proposal and project execution phases.
He reports to the Manager of Procurement.
7/29/2019 Subcontractor Plan Notes.docx
31/72
The responsibilities of the Home Office Manager of Subcontracts include:
a. General
developing, issuing and maintaining general procedures and policies for subcontracting operations.
maintaining the Procurement Department's computerized and worldwide Subcontractors Register.
Directing the improvement and standardization of subcontract documents.
b. Individual projects
preparing subcontract write-ups at qualification and bidding stages of proposals in consultation with
the H.O. Construction Manager.
advising the Project Subcontracts Manager in his contribution to the subcontracts plan.
advising the Project Subcontracts Manager in the preparation of the Special Conditions of
Subcontract for the project
ensuring that the subcontract progress and cost control structures have a sound technical, financialand economical basis and that the proper control systems are selected.
ensuring that client and Company subcontract requirements for the individual projects are met.
Ensuring that specific project procedures are made.
ensuring that the following documents will be presented to the Manager of Procurement for his
review/approval:
list of qualified bidders
bid analysis
award of subcontract
3.2 Project Subcontracts Manager (Home Office Activities)
The Project Subcontracts Manager has direct responsibility and authority to accomplish the
following for the Project(s) he is nominated for:
preparing the subcontracts plan.
7/29/2019 Subcontractor Plan Notes.docx
32/72
preparing the Special Conditions of Subcontract for the project and for the individual Subcontracts
incorporate any deviations, if required.
preparing sensitivity studies.
coordinating the preparation of subcontract packages with the Subcontract Coordinator fromEngineering (see 3.5).
compiling of subcontract packages; ensuring that they are checked by all disciplines concerned for
completeness, correctness and clarity before being issued for bids.
preparing of subcontract bids analyses.
organizing meetings with subcontractors.
obtaining safety and quality information, programs and procedures from potential subcontractors
for review by the Safety Engineer, and Manager of Quality Assurance and Safety and the ProjectConstruction Manager.
participating in project planning and scheduling of work related to Subcontracts, as well as reviewing
detailed plans, schedules and manpower loadings submitted by subcontractors.
organizing and maintaining a complete file of all prequalification and bid correspondence,
subcontract documents, minutes of meetings and correspondence between Company and
subcontractors.
initiating the order preparation/issue.
The Project Subcontracts Manager informs the Project Manager, the Project Construction Manager
and the Manager of Purchasing/ Subcontracts promptly about major problems with regard to
subcontract activities.
3.3 Project Subcontracts Manager (Site Activities)
The Project Subcontracts Manager has direct responsibility and authority to accomplish thefollowing:
administering the subcontracts including scope and commercial matters.
acting as the single point contact for the subcontractor.
controls subcontractors' manpower and progress.
controls, trends and forecasts the costs of the subcontractors.
handling of scope changes.
7/29/2019 Subcontractor Plan Notes.docx
33/72
handling of extra work.
handling of claims, within the given limits.
closing out of the subcontracts.
preparation of subcontractor performance reports.
3.4 Project Construction Manager/Construction Coordinator
The Project Construction Manager participates in home office subcontracting activities until he
leaves for the site. Prior to his assignment the Project Construction Manager is represented in the
home office by a Construction Coordinator.
The Project Construction Manager is responsible for the project construction operations and thus
has ultimate responsibility for all site subcontracting and subcontract administration activities
including client liaison and approvals.
3.5 Subcontract Coordinator
The Project Manager will assign a coordinator for each subcontract early in the project.
The subcontract coordinators will ensure that drawings and free issue materials arrive in time and
that quantities are kept up-to-date and trended.
The information must be channelled through the Subcontracts Manager.
4. Subcontracts Plan
4.1 Subcontract Strategy
As early as practical the Project Subcontracts Manager will consult with the Project Manager and the
Project Construction Manager and the H.O. Manager of Subcontracts, to establish the subcontract
strategy, taking into account the specific requirements of the project, such as the contract with the
client, country where the construction work is to be done and location of the site, specific site
7/29/2019 Subcontractor Plan Notes.docx
34/72
conditions and experience with subcontractors in the area. This strategy will be laid down in the
Subcontracts Plan. The Subcontract Plan will be issued as per Project Procedure and Execution
Manual (ref.19.8).
In case an initial subcontract plan has been prepared during the proposal phase then this will be
further developed as described above.
The subcontract plan should be updated regularly to implement any changes in the strategy,
estimated quantities, subcontract schedules etc.
4.2 Basic Items to be Addressed in the Subcontracts Plan (ref.19.7)
requirements for client's participation and approval.
bidding procedure.
number and type of subcontracts. (Subcontract specification).
pre-qualification requirements.
preferred price basis and the quantification requirements of each subcontract related to theexpected state of design engineering at the time of the request for bids. (Subcontract specification).
listing of anticipated supply with erection orders. (Subcontract specification).
subcontracting requirements related to the erection part of supply with erection orders.
subcontracts which require a pre-bid or bid clarification meeting.
content and status of subcontract documents.
special requirements by country with regard to the selection of subcontractors and/or
administration of the subcontracts. (Subcontract strategy)
subcontract schedule with key dates and manpower histograms.
a listing of estimated quantities (Quantity status summary).
listing of anticipated free issue materials per type of subcontracts.
5. Subcontracts Schedule
7/29/2019 Subcontractor Plan Notes.docx
35/72
The Project Subcontracts Manager will prepare together with the Planning Engineer, the
Subcontracts Barchart Schedule based on the Subcontracts Plan and the overall requirements of the
Project Summary Schedule, in consultation with the Project Manager and the Project Construction
Manager.
The Subcontracts Schedule indicates the individual subcontracts and defines for each subcontract:
the period of preparing the subcontract package for bids.
the bidding period.
the evaluation period ending in award of the subcontract.
start on site date.
documents complete.
mechanical completion date.
start-up/commissioning date.
The Subcontracts Schedule will be monitored by the Project Subcontracts Manager who will initiate
corrective action whenever there is a risk of any activity falling behind schedule.
6. Subcontract Package
The subcontract package "for bids" comprises all technical, commercial and scheduling information
to provide the qualified bidders with a sound basis for their bids.
A bid package includes the following sections: Ref.
0 Cover Sheet + Contents (CSC)
1 Instructions to Bidders (ITB)
2 General Conditions of Subcontract (GCS) 19.2
3 Special Conditions of Subcontract, if required (SCS)
4
Safety, Health, Welfare and Environmental Policy
7/29/2019 Subcontractor Plan Notes.docx
36/72
Safety Rules and Site Regulations (SPSR)
19.3
5 Requisition (REQ)
6 List of Applicable Documents (LAD)
7 Key-date Schedule (KDS)
8 Form of Tender Descriptions (FOTD)
9 Form of Tender (FOT)
10 Specification for Site Quality Assurance/
Quality Control for Subcontracts (QAM) 19.4
11 Other special documents, if required, specifications,
not forming part of the technical documents as per list
of applicable documents.
A package for mechanical work further includes:
12 Equipment Erection Description (EED)
Packages for work in The Netherlands may further include (depending on the contract between
client and Company):
13 Subcontracting Under the Chain Liability Act Data 19.1
Sect. 1 Instructions to Bidders
This document comprises the following:
a. The introduction, definitions, bidder's qualifications and general bid conditions (para. 1 through
5). This text is standard and will be used unaltered for all bidding.
b. Special bid information, example tender statement and complete bid (para. 6 and further). This
text will be reviewed by the Project Subcontracts Manager and modified and/or extended, if
required, to suit specific project needs. It should also contain the requirements with regard to safety
and quality to be submitted with the quotation.
7/29/2019 Subcontractor Plan Notes.docx
37/72
Sect. 2 General Conditions of Subcontract
This document is a company standard comprising the standard conditions that apply to all
subcontracts.
This document will neither be changed, nor given a job number. Any deviations will be included in
Special Conditions of Subcontract.
Sect. 3 Special Conditions of Subcontract
Special Conditions of Subcontract are written by the Project Subcontracts Manager if and when the
main contract with the client or the country of operation requires conditions deviating from or in
addition to the General Conditions.
The (draft) Special Conditions of Subcontract will be sent to the Law Department, the H.O. Manager
of Subcontracts and the Project Manager for their review and approval.
The evaluation of specific country requirements will be made by the Project Subcontracts Manager
and the Manager of Subcontracts, in conjunction with the Project Construction Manager.
Sect. 4 Safety, Health, Welfare and Environmental Policy, Safety Rules and Site Regulations
As a rule the client's safety policy and site regulations are applicable.
This document will be reviewed by the Project Construction Manager and by the home office
construction Safety Manager. Any additional requirements will be incorporated in Company's
"Safety, Health, Welfare and Environmental Policy, Safety Rules and Site Regulations" (SE 00 SPSR).
The SPSR will be checked by the Project Subcontracts Manager for consistency with the subcontract
package and edited as required.
7/29/2019 Subcontractor Plan Notes.docx
38/72
If there is no client document available the Project Construction Manager will use the company
standard "Safety, Health, Welfare and Environmental Policy, Safety Rules and Site Requirements"
(ref.19.3).
Sect. 5 Requisition
The requisition of which typical subcontract-formats are available within the Procurement
Department will be modified by the Engineering Department in consultation with the Project
Subcontracts Manager to suit the specific project needs. The requisition will be issued with a request
for quotation/purchase.
Sect. 6 List of Applicable Documents
The List of Applicable Documents shows all technical documents that (may) have a bearing on the
pricing.
The Engineering Specialist will identify these documents and submit a draft list including document
name, document number, issue status and number of sheets per document to the Project
Subcontracts Manager for processing.
The completed list will be reviewed by the Project Manager or his delegate.
As the list shows documents that relate to pricing, it will not be updated to show current revisions of
documents unless those revisions have been submitted to the bidders.
The Subcontracts Coordinator will arrange for printing the documents shown in the List of Applicable
Documents and will submit the necessary number of complete and checked sets of these documents
to the Project Subcontracts Manager.
Sect. 7 Key-Date Schedule
7/29/2019 Subcontractor Plan Notes.docx
39/72
For each subcontract the Project Subcontracts Manager with the Planning Engineer will prepare a
key-date schedule defining sufficient key-dates and periods to enable bidders to schedule
construction activities, manpower, equipment, materials, supplies etc.
the key-date schedule will include:
start date of construction.
periods during which the technical documents will be supplied to the subcontractor.
periods during which the equipment and/or materials will be supplied to the subcontractor.
key dates or milestones for certain parts of the construction work as required.
date of contractual completion.
date of subcontractors' commissioning activities.
Sect. 8 Form of Tender Descriptions
The Project Subcontracts Manager will select the sections of the standard Form of Tender
Descriptions relevant to the chosen price basis and will make, in consultation with the Engineering
Department, any modifications required as a result of modifications to the Form of Tender.
Sect. 9 Form of Tender
The Project Subcontracts Manager will select the sections of the standard Form of Tender relevant
to the chosen price basis and review these sections in consultation with the Engineering
Department who will modify these sections, if required, to suit the specific project needs.
The schedules available are:
Schedule 1 lump sums
Schedule 2 rates for units of work
Schedule 3 rates for units of operation
Schedule 4 rates for units of time
Schedule 5 rates for units of supply
7/29/2019 Subcontractor Plan Notes.docx
40/72
Schedule 6 spare
Schedule 7 spare
Schedule 8 spare
Schedule 9 subcontract value adjustment
A package for piling further includes:
Schedule 10 subcontractor's rig and pile data
Sect.10 Specification for Site Quality Assurance/Quality Control for Subcontracts
This specification (company standard) defines what is required from Subcontractors concerning site
quality assurance and quality control.
This section should be discussed during a Clarification and/or Pre-award meeting and should become
an integral part of an order.
Sect.11 Equipment Erection Description
This section only to be added with subcontract packages for mechanical work.
It gives detailed description how the equipment and in some cases in which sequence should behandled and erected at site.
This existing format should be prepared and completed by the specialist engineer in coordination
with the Project Construction Manager.
Sect.12 Chain Liability Act Data
7/29/2019 Subcontractor Plan Notes.docx
41/72
This section (company standard) should be added in subcontract packages for work in The
Netherlands only. This also depends on the type of contract between Company and the Client.
It describes to the subcontractor what Company and Subcontractor have to do to meet therequirements of the Chain Liability Act of 1 July, 1982 and to safeguard that the GAK/SAB and the tax
office can collect premiums and taxes due to them.
During the negotiations with potential subcontractors, Company has to make sure that we achieve
maximum protection at minimum costs therewith satisfying the requirements of the Chain Liability
Act.
The following basic principles to be maintained and where applicable to be discussed with and to
impose on the Subcontractor.:
careful screening and selection of Subcontractors.
withholding from the payments to SUBCONTRACTOR amounts equal to the actual amounts of
premiums and taxes to be paid to SUBCONTRACTOR and paying such amounts directly to the
authorities.
monitoring of SUBCONTRACTOR's actual manhour expenditure.
not assuming the role of SUBCONTRACTOR's tax and/or premiums consultant.
7. Subcontractors List
7.1 As soon as the Subcontracts Plan for the Project has been approved, the Project Subcontracts
Manager, in conjunction with the H.O. Manager of Purchasing/Subcontracts and the Project
Construction Manager, will prepare the list of potential bidders based on the ProcurementDepartment's computerized Subcontractors Register.
The potential bidders' quality, past performance on safety, experience, capability, organization,
capacity and financial stability will be investigated by the H.O. Manager of Subcontracts or the
Project Subcontracts Manager and the Project Construction Manager to issuing the subcontract
package for bids (ref 19.5).
7/29/2019 Subcontractor Plan Notes.docx
42/72
For each individual subcontract the Project Subcontracts Manager will discuss and prepare the
"short list" of bidders about one month prior to going out for bids.
If required, the list will be submitted to the client for review and approval.
7.2 The number of valid bids to be obtained depends on the nature of the subcontract. The
minimum number shall be three valid bids.
8. Bidding Period
8.1 Invitation to Bid
Following approval of a subcontract package for bids, the Project Subcontracts Manager will send
the packages with a covering letter to the bidders. The covering letter will be signed by the Project
Subcontracts Manager. His name will be indicated in the Subcontract package as the contact person.
8.2 Expediting of Bids
The Project Subcontracts Manager will ensure that all bidders promptly acknowledge receipt of the
package and timely submit their quotation.
8.3 Questions from Bidders
All communications with the bidders will be through the Project Subcontracts Manager, who will
consult with the relevant departments as required.
In case a question from a bidder reveals a need for clarification or change of the bid information,
both the question and the answer will be transmitted to all bidders. Extension to the bidding period
may be given in exceptional cases only and requires the approval of the Project Manager and the
Project Subcontracts Manager.
7/29/2019 Subcontractor Plan Notes.docx
43/72
8.4 Sealed Bids
Sealed bids will be required for reimbursable projects and in those other cases where a sealed bid
requirement may support a timely submission and an accurate quotation.
8.5 Confidentiality
Bid information (bidders lists, minutes of pre-award meetings), bids and bids analyses will be
distributed as per Project Distribution Schedule. Any deviation requires prior approval by the Project
Manager.
9. Bid Opening and Analysis
9.1 Bids Receival
The Project Subcontracts Manager will receive and keep safe all bids.
9.2 Bids Opening
As soon as practical after the bid closing date, all sealed bids will be opened by the Project
Subcontracts Manager, witnessed by the Project Manager or the Manager of Subcontracts and, if
applicable, by the client.
A bid opening protocol will be filled out by the Project Subcontracts Manager and signed by all
present. Sealed bids received after the closing date will be stored unopened or returned to the
Bidder.
9.3 Subcontract Bids Analysis, Preliminary Issue
Bid evaluation criteria and/or weighing factors agreed upon early in the project in consultation with
Project Manager/Project Construction Manager and/or Client will form the basis for the bid analysis.
7/29/2019 Subcontractor Plan Notes.docx
44/72
The Project Subcontracts Manager will make a detailed commercial evaluation of the bids. Will
contact bidders to clarify their bids if required, will evaluate commercial alternates if submitted by
the bidders, will prepare the preliminary issue of the subcontract bids analysis (ref.19.10) and will
submit this for review/approval to the appropriate parties.
Clarification may be obtained by telephone. However, for auditing purposes the bidder shall always
be required to confirm the clarification in writing (telex, fax). This correspondence should be
distributed to the engineer involved with the evaluation.
For unit rate subcontracts the Project Subcontracts Manager will prepare a sensitivity study to
establish which bidder may be expected to have the lowest overall price upon completion of thework, taking into account safety, quality and scheduling aspects.
The preliminary issue of the bid analysis includes a recommendation which bidder(s) is/are to be
invited for negotiations. Signatures for approval are to be obtained in accordance with the relevant
authorization list. Executive involvement is required for major subcontracts and in lump sum
contracts if the final estimated costs exceed the budget. Executive involvement should be stated in
the Project Subcontract Plan.
The approved preliminary issue of this bid analysis is the authorization for the Project Subcontracts
Manager to invite the selected bidder(s) for negotiations.
Approval of the preliminary and final bid analysis by the client is limited to subcontracts that are
reimbursed by the client.
9.4 Technical Bid Evaluation
If bidders have submitted technical alternates to their bids, the Engineering Specialist will make a
technical evaluation of such alternates when requested by the Project Subcontracts Manager.
Bids including detail design by the subcontractor will always be completely evaluated by the
Engineering Specialist.
7/29/2019 Subcontractor Plan Notes.docx
45/72
In all other cases approval of engineering will be required for the recommendation which bidder(s)
will be invited for further clarification meetings. Approval of a technical bid analysis may be required
by the Client.
10. Negotiation and Award of Subcontract
10.1 Bid Clarification Meetings
The selected bidder(s) will be called in for final negotiations. The principal purpose of these
meetings is to ensure that the bidder(s) fully understand the scope of work and all technical and
commercial aspects of the subcontract. They also provide an opportunity for Company to clarify any
questions concerning the bidder(s) response to Subcontract Package for Bids. The meeting(s) will be
chaired by the Project Subcontracts Manager, who will make sure that the Subcontract Package
including the detailed construction schedule and the manpower chart/curve are properly marked-up
to reflect any variations agreed to, and that minutes are kept. Samples of a progress curve, a
monthly report, a detailed schedule and a safety plan to use for further clarification to the selected
bidder(s). The handwritten minutes shall be signed by all parties at the end of the meeting. The
Project Procurement Manager as well as the Project Construction Manager shall attend these
meetings.
10.2 Minutes of "Pre-award" Meetings
The minutes will be numbered and distributed in accordance with the project
numbering/distribution system for such meetings.
The minutes will be numbered in sequential order.
The minutes of the meeting will be distributed (at the end of the meeting) as follows:
subcontractor
client, if applicable
Company : Project Engineer/Project Manager
7/29/2019 Subcontractor Plan Notes.docx
46/72
Company : Project Construction Manager
10.3 Subcontract Bids Analysis, Final Issue
After the "pre-award" meeting(s) the Project Subcontracts Manager will update and finalize the
subcontract bids analysis, if required (ref.19.11) and submit this for review/approval to the
appropriate parties.
This final issue should clearly indicate the selected subcontractor with the reason(s) for the
selection.
Approval by the Engineering Specialist is required if a technical alternate has been selected or if the
package includes detail design.
In both cases the Engineering Specialist will approve the proposed subcontractor on technical
grounds only.
Approval by the General Manager or an other executive is required if the estimated final cost
exceeds the budget and the project is on a lump sum basis and for those major subcontracts which
are mentioned in the Subcontract Plan.
Approval by the client is required for subcontracts that are reimbursed by the client.
The approved final issue is the authorization for the Project Subcontracts Manager to inform the
successful bidder, in writing, that he has been selected as the subcontractor.
10.4 Updating of Subcontract Package for Purchase
Following the selection of the subcontractor, the Project Subcontracts Manager will update the
subcontract package to reflect all agreements reached with the successful bidder, and shall prepare
the formal Purchase Order.
7/29/2019 Subcontractor Plan Notes.docx
47/72
The subcontract package "for execution" shall include all relevant sections indicated in 6.1 of this
procedure with the exception of section 1, Instruction to Bidders. The minutes of the "pre-award"
meeting with the successful bidder will be typed and incorporated in the package.
The formal Purchase Order will be presented to the Manager of Purchasing/Subcontracts for
signature.
10.5 Purchase Order Acknowledgement
The Project Subcontracts Manager shall ensure that the subcontractor returns the signed
acknowledgement copy of the purchase order/ subcontract within ten working days after receipt ofthe purchase order.
10.6 Unsuccessful Bidders
After receipt of the signed acknowledgement copy of the order the Project Subcontracts Manager
will advise all other bidders by standard letter that they were not successful.
11. Kick-Off Meeting with the Subcontractor
After Purchase Order issue and before the subcontractor establishes himself at the site, the Project
Construction Manager will hold a kick-off meeting with the subcontractor to ensure a smooth start
of field activities. The Project Construction Manager will inform the Project Manager who will decide
on his or his representative's presence at this meeting.
12. Revisions to Subcontract Documents
12.1 Responsibility and Procedure
The responsibility for the preparation, input, review and approval of revisions to subcontract
documents and the Purchase Order is the same as for the original ones.
7/29/2019 Subcontractor Plan Notes.docx
48/72
The Project Manager will arrange for all such documents to be sent to the subcontractor either:
through the Project Subcontracts Manager if the subcontractor is not established at the site, who
will forward them directly to the subcontractor's head office.
through the Project Construction Manager if the subcontractor is established at the site, who will
forward them to the subcontractor's field representative. The Company site office shall ensure that
the subcontractor acknowledges receipt of the documents by signing and returning the transmittal
acknowledgement slip.
Formal notification or confirmation of revised contractual documents will always be by the Project
Subcontracts Manager with a purchase order amendment, based on a revised request for purchase
initiated by Engineering.
12.2 Red Flags
As soon as the home office makes significant changes to the subcontract package contents such as
large variations in the quantities or changes to delivery dates of drawings or materials, the Project
Manager will, pending the revision of the subcontract documents, immediately inform the Project
Construction Manager.
13. Variations in Scope and Extra Work
13.1 Definitions
"Variations in scope" or "scope changes" shall mean increases or decreases to the quantities shown
in the Form of Tender as well as additions of items not previously shown in the Form of Tender.
"Extra Work" shall mean modifications or alterations to work in progress or completed which are not
covered by the existing contract.
7/29/2019 Subcontractor Plan Notes.docx
49/72
13.2 Administration
Variations in scope shall be covered in an update of the Form of Tender.
On a monthly basis the Project Subcontracts Manager will determine if a Form of Tender