9R4944 - 0426 - EPC BD Vol II - Exhibit E - Contract Program and Execution Plan

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Azzawiya Oil Harbour Bid DocumentsVolume II of III Exhibit E Contract Program and Execution

Plan

Azzawiya Oil Refining Company Inc

23 June 2009

Final Report

9R4944Q0


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A COMPANY OF

Document title Azzawiya Oil Harbour Bid Documents

Volume II of III Exhibit E ContractProgram and Execution Plan

Document short title EPC BD Azzawiya Vol II Exhibit E

Status Final Report

Date 23 June 2009

Project name Azzawiya Oil Harbour Project

Project number 9R4944Q0Client Azzawiya Oil Refining Company Inc

Reference RH 9R4944Q0/0426/902503/Rott/Rev0

Reference ARC 1620-ZA-A4-007

George Hintzenweg 85

Postbus 8520

Rotterdam 3009 AM

The Netherlands

+31 (0)10 443 36 66 Telephone

+31 (0) 10 4433 688 Fax

[email protected] E-mail

www.royalhaskoning.com Internet

Arnhem 09122561 CoC

HASKONING NEDERLAND B.V.

MARITIME

Drafted by G. Bosman

Checked by A. Woods

Date/initials check 23/06/2009Approved by H. Altink

Date/initials approval 24/06/2009 .


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EPC BD Azzawiya Vol II Exhibit E - i - 9R4944Q0/0426/902503/Rott/Rev0

Final Report 23 June 2009

CONTENTS

Page

1 INTRODUCTION 1

2 PROGRAMMES AND SCHEDULES 22.1 Engineering, Procurement and Construction

Programme 22.2 Pre-commissioning, Commissioning, Start-up and Test-

run Schedule 4

3 INSTRUCTIONS 53.1 Harbour construction stages 53.1.1

Harbour construction stages 5

3.2 Engineering instructions 53.2.1 Specific Instructions for Engineering of the Breakwater 53.2.2 Specific Instructions for Engineering of Berth 4 5

3.3 Procurement instructions 63.3.1 General 63.3.2 Expediting 73.3.3 Logistics 83.3.4 Spare parts 83.3.5 Surplus Equipment and Materials 8

3.3.6

Material Controls 9

3.4 Cost Control Instructions 103.5 Construction and Commissioning Instructions 103.5.1 Specific Instructions for the Construction of Berth 4 103.5.2 Specific Instructions for Dredging 11

3.6 Preliminary Program and Execution Plan 133.6.1 Completion of works 13


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EPC BD Azzawiya Vol II Exhibit E 9R4944Q0/0426/902503/Rott/Rev0

Final Report - 1 - 23 June 2009

1 INTRODUCTION

This document describes the Contract Program and Execution Plan for theWorks of the new Azzawiya Oil Harbour. This document is for informationonly and supports the Volume I Invitation to Bidder.

The relation of this document to the complete set of Bid Documents is givenbelow:

BID DOCUMENTS AZZAWIYA OIL HARBOUR:

VOLUME I - INVITATION TO BIDDER

VOLUME II - OWNER'S REQUIREMENTSExhibit A Scope of WorksExhibit B Compensation of PaymentExhibit C1 Performance Specifications and Design CriteriaExhibit C2 Technical Data and SpecificationsExhibit D DrawingsExhibi t E Contract Program and Execution Plan (this document)Exhibit F Coordination ProceduresExhibit G Guide to Safety Regulations in the ARC Refinery Facilities

VOLUME III - SITE INFORMATION


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2 PROGRAMMES AND SCHEDULES

2.1 Engineering, Procurement and Construc tion Programme

The Contractor shall produce a detailed programme of the works and submitit for the Engineer's approval within 14 days from the Effective Date.

The Contractor shall immediately after the Effective Date or after the date ofacceptance of the Contractor's Bid, whichever shall be the earlier, submit tothe Engineer for approval a programme (hereinafter referred to as "the CPMProgramme") showing the order and method in which he proposes to carryout the Works.

The CPM Programme shall be in the form of a Network Analysis System,commonly referred to as "CPM" or "Critical Path Method"," designed toindicate the rate of progress of the Works and the necessary dates of allsignificant events, including interfaces with other contractors, to ensuresubstantial completion of the Works within the time allowed and the inter-relationship of the major elements of erection/construction, purchasing,subcontracting and commissioning. Electronic data processing equipmentshall be used as required.

The network analysis shall be presented in a form prescribed in the followingparagraphs of this Clause and shall be subject to the approval of the

Engineer. All work in establishing and maintaining the CPM Programme shallbe paid for by the Contractor with a progress report advising the Engineer ofnecessary actions for procurement of plant, labour and material.

Copies of the initial CPM Programme and of all subsequent updates,changes, amendments and variations thereto shall be furnished by theContractor to both the Owner and the Engineer.

The Contractor shall be solely responsible for all scheduling to be done forthe Works and for meeting the completion requirements of the Contract.

The CPM Programme shall be prepared in network form to show the earliestand latest start and finish times and the float associated with each activity.

The network analysis system shall consist of logic diagrams and supportingcomputer analysis and schedules. The activities shall include all works to beperformed by the Contractor, all sub-contractors and the Employer and shallhave the following minimum data for each activity.

It shall also detail the production of information for review during theEngineering. The information should be produced in a phased manner, andthe phasing is to be agreed with the Engineer


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The analysis shall also address the timing of handing over of working areas

from the Contractor.

Activity number

Description of work

Area of work to be performed

Duration (workdays)

Code number referring to applicable specification section

Early start date (calendar)

Late start date (calendar)

Early finish date (calendar)

Late finish date (calendar) Total float (workdays)

Estimate crew and gang sizes size.

Logic diagrams shall be based on precedence of work item logic and shallshow activities and milestones. Each activity shall display the activitynumber, description duration in work and total float. Blank spaces shall beprovided for recording of actual start and finish dates. The critical path shallbe clearly marked.

Material procurement items and sequences shall not be displayed on thelogic diagrams, but shall be handled as outlined below.

Once the initial CPM Programme has been approved, it shall not bechanged, amended or varied without the approval of the Engineer. TheContractor shall record the actual starts and finishes and remaining durationsand, using this data, shall update the computer analysis.

The updated mathematical analysis shall be accompanied by a narrativereport and shall be used by the Engineer as a basis for evaluating anyrequest by the Contractor to change, amend or vary the CPM Programme.

Revisions to the schedule logic shall be provided by the Contractor on theoccurrence of any of the following events:

A change in work sequence instituted by the Contractor.

The initial CPM Programme has been delayed by more than thirty (30)calendar days.

An instruction is given by the Engineer which will significantly affect theprogress of the Works.

As necessary in order to accommodate the Work carried out by othercontractors.


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The Contractor shall perform the Work in accordance with the approvedProgramme. If any Work is found not to be on schedule during any regularreview of the Works the Contractor shall immediately advise the Engineer in

writing of action proposed to bring the Works up to schedule and shall submita revised Programme indicating such action, together with a typed list of suchrevisions. Correction and updating of the Programme will be done as often asnecessary until the Works are on schedule.

Float shall be utilised so as to complete the Works on time. Any existing floatshall be used to the maximum extent possible to offset unexpected delays tothe Works.

In the event of the Contractor failing to submit a CPM Programme or

submitting a CPM Programme which is not in compliance with therequirements of this Clause the Engineer shall be entitled to employ and payother persons to carry out the same. All expenses consequent thereon orincidental thereto shall be recoverable from the Contractor by the Owner, ormay be deducted by the Owner from any monies due or which may becomedue to the Contractor.

2.2 Pre-commissioning, Commissioning, Start-up and Test-runSchedule

The contractor is to formulate a schedule for all testing and commissioning,to be agreed with the Engineer, in accordance with the OwnersRequirements, that will be necessary to demonstrate that the project iscomplete and that the Completion Certificate can be issued.


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3 INSTRUCTIONS

3.1 Harbour construction stages

3.1.1 Harbour construction stages

The harbour shall be delivered in two stages:

Construction stage 1:The first part of the main breakwater protects berth 4 from the extreme waves(from the northwest sector) and allows for the transfer of activities fromCBM2 to berth 4, before the second part of the main breakwater is builtduring construction stage 2.

Construction stage 2:This is the final envisaged harbour layout, as portrayed in the Final HarbourLayout [refer to Exhibit D - Drawings]. The main and lee breakwaters protectberth 4, berth 5, berth 6, the small craft harbour and the material offloadingfacility.

3.2 Engineering instruct ions

3.2.1 Specific Instructions for Engineering of the Breakwater

The harbour will be delivered in two stages as described above Duringconstruction stage 1, only the first part of the main breakwater will be built(approximately 500m). This will allow for the transfer of all product handlingfrom CBM2 to berth 4 before the second part of the main breakwater is built.During construction stage 2, the rest of the main breakwater and the leebreakwater will be built. There will be a time period during which the rear sideof the first part of the main breakwater will be exposed to a more severewave climate than designed for. The possible damage during this time periodshould be checked.

A return period of 10 years may be applied due to the temporary character ofthe situation (approximately 2 years).

3.2.2 Specific Instructions for Engineering of Berth 4

The full breakwater shall be constructed in 2 stages. This is required becauseof the existing CBM2 buoy, which is still in use during the construction of thefirst part of the breakwater during stage 1. Only when Berth 4 is fullyoperational, the further construction of the harbour can take place. For theabove mentioned reason Berth 4 shall be designed for the situation withoutthe protection of the full breakwater (refer to Exhibit D Drawings).


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3.3 Procurement instruct ions

3.3.1 General

3.3.1.1 The Contractor shall provide all personnel and be solely responsible for allProcurement activities associated with delivery of the Work, ensuring that allenquiry and purchase requisitions are processed correctly and on schedule.

3.3.1.2 The Contractors procurement of goods and services shall adhere to thehighest ethical standards. The Contractor shall develop and implementprocurement policies that:

o Comply with the Contract technical requirementso Comply with Libyan procurement regulationso Deliver goods and services to satisfy project schedule requirementso Comply with the Owner requirement to maximise Libyan Content

3.3.1.3 The Contractor shall prepare procurement procedures for the execution ofthe Work, including procedures for purchasing, inspection, progressmonitoring, material control, expediting, batch crating and packaging, trans-shipping, consolidating and transportation.

3.3.1.4 The Contractor shall be responsible for the procurement of all construction,commissioning spare parts and special tools required for start up and test,

initial operation, up to Acceptance of each Stage of the Work.

3.3.1.5 The Contractor shall be responsible for the provision of all first fill material,oils, chemicals, catalysts, refrigerants, etc, as required and agreed by theOwner, and for their continued replenishment if necessary up to hand over ofthe Work.

3.3.1.6 The Contractor shall be responsible for arranging the complete handling,storage, protection of all Materials, all Construction Equipment, all temporaryfacilities and all other materials and supplies, lubricants, chemicals,construction consumables, utilities power, fuel used in the performance of the

Work, including the shipping, forwarding, transporting, storage in transit,expediting, unloading receiving and storage on Site.

3.3.1.7 The Contractor shall be responsible for the provision of all equipment,foodstuffs, drinking water, and supplies, domestic cleaning equipment,necessary to effectively run and operate the Work Areas and the Contractorsaccommodation, providing welfare provision to the Contractor personnel.The Contractor shall also be responsible for the provision of all-necessarymedical supplies and specialist equipment as described in Exhibit G - HealthControl and Environmental Regulations.


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3.3.1.8 The Contractor shall plan all cargo loads to minimize risk of loss for anysingle component of the Work.

3.3.1.9 Procurement procedures shall define activities for preparation, review,approval and control of procurement documents. Procurement documentsshall clearly describe the product required, including the following essentialinformation:

o Description of the equipment or service being procuredo All applicable project procedures, standards and design specification

requirementso Listing of Subcontractor documents to be prepared and submitted to

the Contractor for review and approval, and the format the data is tobe received.

o

Identification of all required documentation; this information shall befully indexed.

3.3.1.10 The Owner reserves the right to periodically audit the Contractorsprocurement process to ensure compliance with agreed procedures.

3.3.1.11 The Contractor shall maintain all records of all materials procured and alltests carried out, for information and provide these to the Owner uponrequest, and in the Handover dossier. Procured surplus materials shall beremoved by the Contractor at the finish of the works, unless the Owner

requests in writing to purchase these surplus materials.

3.3.1.12 The Contractor shall handle all procured materials with proper care, andcomply fully with the guidelines set by the manufacturer, with regards tostoring, stacking, lifting and preservation prior to use.

3.3.2 Expediting

3.3.2.1 The Contractor shall assign expediting personnel to the project to performproactive expediting, including identification and early resolution of potential

problem areas. Responsibilities shall include:o Monitoring and expediting Subcontractors submittal of engineering

data.o Monitoring and expediting Subcontractors, to ensure that materials

and components are available for timely completion.o Monitoring the progress of Engineerings review of Subcontractor data

for timely completion and returning the documents to supportSubcontractor schedules.

o Reporting the manufacturing and delivery status of Materials on aregular basis.

o Expediting Subcontractors to maintain delivery of Materials.


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3.3.3 Logistics

3.3.3.1 The Contractor shall be fully responsible for the transportation, including

importation and customs clearance. All procured items shall be governed bythe Contract with regard to taxation, customs fees, duties and associatedcosts.

3.3.3.2 The Contractor shall provide all necessary documentation required forobtaining import licenses for all shipments arriving in Libya in connection withthe Work.

3.3.3.3 The Contractor shall be responsible for obtaining all aspects of customsclearance requirements for the Work.

3.3.3.4 The Contractor shall be responsible for inspecting all shipments at the time ofoff loading, at Site or port of entry, giving adequate notification to the Ownerfor participation in the inspection.

3.3.3.5 The Contractor shall develop a Logistics Management Plan, giving aschedule of deliveries requiring customs documentation and release. Thisplan will address the appropriate segregation and quarantine activitiesnecessary to comply with Customs regulations.

3.3.4 Spare parts

3.3.4.1 The Contractor shall be responsible for providing commissioning, Start-Upspares, and one year operating spare parts for all mechanical and electricalitems provided including but not limited to HVAC, water treatment, sewagetreatment, fire water, power generation/distribution, etc.

3.3.5 Surplus Equipment and Materials

3.3.5.1 The Contractor shall be responsible for the disposal, including re-export, of

all Materials, where required, surplus or otherwise, purchased for but notused in connection with the Work.

3.3.5.2 Remaining commissioning and start up spares shall be the property of TheOwner.

3.3.5.3 The Contractor shall be responsible for the re-export of ConstructionEquipment on completion of the Work.


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3.3.6 Material Controls

General

3.3.6.1 The Contractor shall submit procedures within thirty (30) Days of theEffective Date for material control, and implement them throughout all stagesof the Contract. The Contractor shall use computerized systems for materialreceipt, issue allocation and stock control. The system shall have the abilityto trace an item from origin to issue.

3.3.6.2 The Contractor shall:

(a) Import and receive all items delivered to the Site, unload, unpack,inspect, store and protect same.

(b) Ensure that all Materials are used correctly and no Materials aresubstituted without prior Approval.

(c) Be responsible for safekeeping, in accordance with theSubcontractors guidelines/instructions for preservation of allMaterials on Site and to ensure that all Materials are marked asbeing provided for the Work.

(d) Be responsible for establishing an adequate security system to

control access to storage sites and prevent theft or otherwise loss.

(e) Maintain records and account for all Materials delivered andinstalled and for surplus and scrap for the same.

(f) Maintain a Materials Delivery Report, which shall be regularlyupdated.

(g) Develop and implement a Care and Maintenance Plan forMaterials.

(h) Implement a Surveillance and Inspection System forSubcontractors.

Storage

3.3.6.3 The Contractor shall be responsible for storage, protection and maintenanceof all materials and equipment in accordance with Contract Specifications,the Subcontractors preservation requirements, and Good Engineering andConstruction Practices. The Contractor shall also ensure that access to allstorage areas is possible only via official stores personnel during normalworking hours, and when unmanned all areas must be secure against

unofficial entry.


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Site Receipt of Materials

3.3.6.4 Materials arriving on Site shall be examined against Procurement documents

including shipping documents and/or delivery notes for quantity, description,overages, shortages and damage or any other variation to the Subcontract.

3.3.6.5 Materials shall be delivered to Site with all relevant QA anddesign/installation documentation. No Materials shall be installed without thissupporting documentation.

3.4 Cost Control Instruct ions

The contractor will be responsible for all cost issues on the project, includingthe payment of all duties, fees, charges and taxes required to complete theproject.

Where, under Libyan tax laws, the Owner requires receipts or otherdocuments evidencing tax payments made, the contractor will provide.

3.5 Construction and Commissioning Instructions

3.5.1 Specific Instructions for the Construction of Berth 4

Due to the unprotected situation in Stage 1, Berth 4 will be subjected torelative high waves. In order to prevent wave slamming against the civilstructure and installations, piping and other equipment, a higher elevation ofthe jetty might be required. Therefore the following construction approach issuggested:

o Stage 1:- Construct the loading and turning platform of Berth 4 such that

these structures can resist the relative high wave conditionsduring stage 1;

- Construct the dolphins of Berth 4, but without the electricalequipment to prevent damage due to the expected amount ofovertopping and splashing (therefore it is recommended toprovide e.g. bollards in the first stage, which can be replaced byquick release hooks in the second stage). It is also notrecommended to place the catwalks at this stage, as these willthen also be subject to wave slamming. Mooring lines shall bebrought to the dolphins by means of launches;

- Create a temporary pipe- and road bridge connecting theturning platform (Berth 4) with the breakwater;

- Construct a temporary pipe rack on top of the breakwater next

to the inspection road at a safe level.


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- Place the piles for the first part of the access trestle (nosuperstructure yet) as a preparation for the second stage;

o Stage 2:- Construct the access trestle to berths 5 and 6;- Install the electrical equipment at the dolphins at jetty 4;- Install the piping for Berth 4 on the access trestle and following

remove the piping on top of the breakwater;- Remove the temporary road- and pipe bridge connecting the

turning platform with the breakwater;

3.5.2 Specific Instructions for Dredging

The design vessel during construction stage 1 is equal to the design vesselof Berth 4 as this is the only berth active. Because this vessel has smallerdimensions than the largest design vessel during construction stage 2, theapproach channel and turning basin (harbour area A and B) may be smaller.These areas are determined analogously to those of construction stage 2.Harbour area D is equal to that of construction stage 2.

An overview of the different harbour areas to be dredged can be found inFigure 3-1, Figure 3-2 and Table 3-1.

Figure 3-1. Construction stage 1: Overview of harbour areas


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Figure 3-2. Construction stage 2: Overview of harbour areas

Table 3-1. Harbour areas to be dredged

Area Construction stage 1 Construction stage 2

A Outer approach channel Outer approach channel *

BTurning basin and innerapproach channel

Turning basin and innerapproach channel *

C NA Berth 5

D Berth 4 NA **

E Tugboats manoeuvring area Small craft harbour

F NA Material offloading facility

G NA Berth 6

Quaywalls

NA Full

* These areas have been partly dredged during construction stage 1. As thedesign vessel of construction stage 2 for these areas is more significantthan that of construction stage 1, these areas need to be expanded anddeepened.

** Harbour area D has already been fully dredged during construction stage

1.


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3.6 Preliminary Program and Execution Plan

3.6.1 Completion of works

The Works (construction stage 1 and 2) shall be completed within 36 monthsafter the Effective Date.

Construction stage 1 shall be completed within 20 months after the EffectiveDate.

The programme and execution plan are to compiled and issued inaccordance with the Owners Requirements. (see Volume 1 Invitation toBidder)

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9R4944 - 0426 - EPC BD Vol II - Exhibit E - Contract Program and Execution Plan

Documents

Transcript of 9R4944 - 0426 - EPC BD Vol II - Exhibit E - Contract Program and Execution Plan