Saudi Aramco: Company General Use

Issue 2

August 2021

Inside this issue:

reg@aace-ags.org | reg.aacei.ags@gmail.com

www.aacei.org | www.aace-ags.org

Newsletter

Platinum AwardArticle of Author

(Bassam Samman)

QuizCalendar of

Certifications

Article of Author

(Yahya Khatib)

Certification Seminars

Announcement

Saudi Aramco: Company General Use

Upcoming Technical Webinars……

The second technical webinar is scheduled to be

held on September 8, 2021 from 7 PM – 8 PM

(Riyadh Time Saudi Arabia). Mr Bader M. Al-Saleh,

Capital Planning Supervisor, Saudi Aramco will

deliver the technical presentation on “Success

Factors for Implementing Value Engineering

Proposals in Saudi Arabia”.

The third technical webinar will be held on October

6, 2021, Wednesday from 7 PM – 8 PM (Riyadh

Time Saudi Arabia). Mr. Ghaith Al-Hiyari, President,

AACE Toronto Section, Cananda, would be the

Speaker of this webinar. The presentation title is

"Untangling the Control Baseline and the

Authorized Funding Budget Concepts in the

Capital Projects Environment“

1

The AACE-Arabian Gulf Section honored with the

PLATINUM AWARD for the year 2020-2021 by

the AACE International. The AGS has bagged

the best chapter award multiple times in the past

and has won the Platinum Award for this year.

The current AGS President, Ghassan AlDossary

advised all the board that we shall keep to

maintain the same level of the spirit in the coming

years also.

The Section activities purely on a volunteer basis,

such as, promoting and developing AACE

International activities in this region, such as,

AACE International Membership, Certifications,

and Technical Seminars etc.

The Arabian Gulf Section Board is working

towards filling the gap between the availability

and requirement. The Arabian Gulf Section Board

is supported with an excellent team of

professional expertise for grooming the potential

candidates for the AACE International

Membership and the Certifications, which are the

most widely recognized professional certification

in this field.

delivered a technical presentation on “Covid-19

Cost and Schedule Impact on Construction

Projects & Costs Data Collect”. Around 105 +

participants from the middle east were attended

this technical webinar.

Issue 2

August 2021

Cost Certification Refresher Seminars

The Virtual Cost Certification Refresher

Seminars/Exam prep workshops has started from

August 20, 2021 with total six participants.

Technical Webinars

The AACE-Arabian Gulf Section has conducted

its first Technical Webinar of this new board cycle

on August 11, 2021 Wednesday at 07:00 PM –

08:00 PM. The speaker John G. McConville, CCP

Operations Director of Compass International has

John G. McConville, CCP

Operations Director of Compasshttps://www.linkedin.com/in/john-g-mcconville-ccp-96303222/

Arabian Gulf Section honored with

PLATINUM AWARD for 2020-2021

Saudi Aramco: Company General Use

QUIZ 2

Issue 2

August 2021

1. A cost that represents funds already spent by virtue of past decision is:

a) Opportunity Cost

b) Sunk Cost

c) Book Cost

d) Inflation

2. Which of the following is the primary characteristic that determines the class of

estimate being prepared?

a) The end usage of the estimate

b) The degree of project definition

c) The effort required to prepare the estimate

d) The estimating methodology

3. In today’s difficult and challenging business environment, what are the three

major, essential elements or overall objectives? For example, “quality of

engineering and construction, “would be one. Which of the following is not?

a) Identifying risks

b) Maximizing cost savings

c) Minimizing time delays

d) Maximizing change orders

4. What is the definition of a project?

a) It is comprised of the development of scope, in terms of risk, cost, time and

resources

b) It is comprised of major phases that may overlap

c) A project can be loosely defined as an item of work which requires planning,

organizing, dedication of resources and expenditure of funds, in order to

produce a concept, a product, or a plant.

d) A project will have phases that overlap; the degree of overlap will depend on

the work content of each phase and the efficiency of decision-making present

in the project

5. What is the conflict often encountered in large projects between efficiency and

effectiveness of the project teams?

a) Quality and safety

b) Safety and cost

c) Quality and quantity

d) Personnel and communication

Answers: 1-b, 2-b, 3-d, 4-c, 5-c

Saudi Aramco: Company General Use

3

Issue 2

August 2021

Article on

Successful implementation of Project

Management Information Systems

Yahya Khatib, CCP, CEP, PSP,

yahyaalkhatib@hotmail.com

The Project Management Information System (PMIS) implementation is becoming prevalent in medium

and large organizations involved in the projects’ management. Successful implementation of PMIS

ensures proper integration and monitoring of all aspects of the project and promotes successful

management. On the other side, several cases of unsuccessful implementation of PMIS have hindered

the effective management and ended up with “helpless” PMIS systems that become a burden on the user

and rather than a useful tool.

It would be helpful for the project managers and cost managers involved in the PMIS implementation to

consider the below points:

The project management is an integrated and iterative process; it shall be viewed holistically. When we

design the project management process to implement it on the PMIS, we shall ensure that processes are

integrated and not standalone independent processes. For instance, if we consider Schedule and Cost as

examples, the delay of the schedule will incur additional costs (due to the preliminaries prolongation). On

the other side, the schedule time extension may allow for resource-leveling which, in turn, can reduce the

project cost and so on.

The PMIS should be viewed as automation to an existing and validated project management process, so

make sure that you are automating what you are really doing. A fatal mistake is to implement the PMIS to

an organization that does not have a project management process and/or to use a general process that

does not reflect the actual business. This will lead to a quick failure in implementation. A good practice for

companies that do not have established project management processes is to hire a special consultant to

“build” the processes in a practical way reflecting that actual business, then to pursue the automation.

The PMIS developer may be interested to implement his ready-made software packages that need less

development effort compared to implementing your custom requirements. Remember that the system at

this stage is being designed to serve the operation and not the reverse. It is not acceptable that we need

to disfigure the operation in order to satisfy the system.

The AACE Total Cost Management (TCM) framework includes total cost management processes to cover

the whole asset lifecycle, in particular, the project management processes. TCM framework processes are

designed to be easily automated and integrated. Hence it serves as a good foundation for PMIS

processes. Even the project management aspects that are not clearly related to cost (like risk, quality,

reporting) are also covered under the TCM Framework since they are related to the cost indeed, either

directly or indirectly.

It is worth mentioning that TCM Framework processes are very detailed and comprehensively designed to

match the large-scale and complicated business, always make sure to simplify it as much as practical to

suit your business needs.

Saudi Aramco: Company General Use

Article onUsing Technology to Enable Equator Principles Financial

Institutions (EPFIs) to Monitor, Evaluate and Report on the

Adoption of Social and Environmental Performance

StandardsBassam A. Samman, PMP, PSP, EVP

Bassam.Samman@CMCS-MENA.com

4

Issue 2

August 2021

There is a growing trend among financial institutions in adopting the Equator Principles when it comes to

financing large infrastructure and industrial Projects. Those institutions want to ensure that the projects they

finance are developed in a manner that is socially responsible and reflect sound environmental management

practices. For those institutions which are known as Equator Principles Financial Institutions (EPFIs) they

recognize the importance of climate change, biodiversity, and human rights, and believe negative impacts on

project-affected ecosystems, communities, and climate should be avoided where possible.

The Equator Principles comprise a voluntary credit risk management framework, adopted by financial institutions,

for determining, assessing and managing environmental and social risk in project finance. It is primarily intended

to provide a minimum standard for due diligence to support responsible risk decision-making. There are ten (10)

Equator Principles that EPFIs need to adopt to determine, assess and manage environmental and social risk in

projects they finance.

•Classify projects based on IFC criteria to determine the magnitude of expected environmental impacts

EP01 Project Categorization

•Conduct SEA for Category A and B Projects

EP02 Social and Environmental

Assessment

•project must conform to the host country’s relevant environmental laws and regulations as well as applicable international standards, for example IFC standards

EP03 Applicable Social and Environmental

Standards

•Action Plan and Management System to developand implement mitigation measures, correctiveactions, monitoring for the impacts and risks

EP04 Action Plan and Management

•Demonstrate effective engagement with rightful stakeholders in the project development

EP05 Stakeholder Engagement

•Grievance mechanisms in the Management System for affected communities during construction and operation

EP06 Grievance Mechanism

•SEA, Action Plan and Consultation Review by Independent Technical Experts

EP07 Independent Review

•EPFI to include environmental related covenants in the loan agreementEP08 Covenants

•Periodic independent environmental and social monitoring and auditing

EP09 Independent Monitoring and Reporting

•EPFI to make publicly available and accessible information on environmental and social aspects of their project involvements

EP10 EPFI Reporting

Using a Project Management Information

System (PMIS) like PMWeb, EPFIs can use

PMWeb to support the implementation of the

Equator Principles as well as monitor,

evaluate and report on the adoption of the

social and environmental standards. Initially,

PMWeb will be used to capture the details for

all projects that the EPFI might consider

financing as well as all projects being

financed. User defined fields will be added to

PMWeb project module to capture the details

needed to identify the project category which

could be A, B or C. Category A Project is a

project that has significant adverse social and

environmental impacts, Category B Project is

a project that has limited adverse social and

environmental Impacts while Category C

Project is a project that has no adverse social

and environmental Impacts. For category A

and B projects, those projects would need

Social and Environmental Assessment (SEA)

and an Action Plan to develop and implement

mitigation measures, corrective actions,

monitoring for the impacts and risks.

Saudi Aramco: Company General Use

Continued… Article Using Technology…5

Issue 2

August 2021

PMWeb Form Builder will be used to create the Social and Environmental Assessment (SEA) checklist also

known as Sustainability Assessment Checklist. The checklist will include the three sustainability principles, the

five components for each principle and the screening questions for each component that will be used as a

guide to help the project owner to assess the sustainability of the capital project. For each question, the project

owner needs to decide if the question is relevant? And if yes, had the project owner considered it? This will

become the basis for detailing how the project will have a positive, negative or neutral sustainability impact on

the component being assessed and what mitigation measures should be undertaken when there are negative

impacts.

Similar to other PMWeb modules, the attachment tab will be used to attach all supportive documents used in

responding to the checklist. Those could include the proposed project location plan, pictures, studies done by

third parties, details of meetings held with the local communities among others. It is highly recommended that

all those supportive documents are uploaded and stored into PMWeb document management repository under

a folder that will be titled Sustainability Assessment Checklist. In addition, links to other PMWeb records like

meeting minutes among others as well as imported MS Outlook emails be linked to the SA checklist form.

To ensure the formal review and approval of the Sustainability Assessment Checklist response including the

justification provided for each sustainability principle component, a workflow will be assigned to the SA

checklist form. This will enforce the needed accountability in submitting, reviewing and approving the

Sustainability Assessment Checklist.

Depending on the location where the capital project will be financed, the EPFI needs to determine what will be

the applicable social and environmental performance standards for identifying and managing environmental

and social risks. If there is no specific performance standard requirement, then the International Finance

Corporation (IFC) benchmark for identifying and managing environmental and social risk will be used. The IFC

eight performance standards include:

PS1 Social and Environmental Assessment and

Management Systems (SEAMS)

PS2 Labor and Working Conditions

PS3 Pollution Prevention and Abatement

PS4 Community Health, Safety and Security

PS5 Land Acquisition and Involuntary Resettlement

PS6 Biodiversity Conservation and Sustainable

Natural Resource Management

PS7 Indigenous Peoples

PS8 Cultural Heritage

Using PMWeb Form Builder module, a form will be created to capture the details of the Environmental and

Social Due Diligence. The form will identify the key elements and questions to be considered for each

performance standard as well as the key findings and the action plans to treat those findings.

The EBFI could have his own team to perform the due diligence or seek the support of specialists in particular

for performance standards PS5, PS6, PS7 and PS8. The Environmental and Social (E&S) Due Diligence will

become the basis for preparing the Action Plan which will be used to develop and implement mitigation

measures, corrective actions, monitoring for the impacts of the identified risks.

The implementation of the Equator Principles requires on-going monitoring and reporting after Financial Close

and over the life of the loan, for all category A and category B projects, by the appointment of an independent

environmental and social consultant. The consultant will track and follow-up with companies about

environmental and social project-specific information, as per the loan agreement and report on the identified

environmental and social risks and the action plans that were identified and implemented to mitigate the

adverse impacts of those risks. The reporting will also monitor the number and nature of adverse

environmental and social events that have actually occurred.

Saudi Aramco: Company General Use

AACE-AGS Calendar of Certifications June 2021- May 2022 6

Issue 2

August 2021

AACE offers a number

of membership and

partner options

including Regular,

Corporate, Military

Service, Public, and

Student.

Registration https://web.aacei.org/membership

TYPES OF AACE INTERNATIONAL MEMBERSHIP

Calendar of Certification Seminars for June 2021 to May 2022AACEI-AGS is pleased to announce the schedule for the upcoming Certification Refresher Seminars and

Exam Preparatory Workshop which are to be conducted on weekends, 02:00 PM to 7:00 PM in Saudi

Arabia and Bahrain

Month Venue Certification Name

Jun-Aug 2021 Virtual CCP & CEP – Certification Seminars & Exam Prep Workshop

Oct-Nov 2021 Virtual CCP & CEP – Certification Seminars & Exam Prep Workshop

Nov-Dec 2021 VirtualPSP-Planning & Scheduling Professional Seminars & Exam

Prep Workshop

Jan-2022 Al-Khobar, Jubail & Riyadh CEP/EVP/PSP- Certification Seminars & Exam Prep Workshop

Feb-Mar 2022Al-Khobar, Riyadh &

BahrainCEP/PSP – Certification Seminars & Exam Prep Workshop

Mar-Apr 2022 Khobar, Jubail & BahrainCCP – Cost Certified Professional Seminars & Exam Prep

Workshop

Apr-May 2022Al-Khobar, Riyadh &

BahrainCEP/PSP – Certification Seminars & Exam Prep Workshop

In-house Training Programs

AGS also provides in-house training programs for companies / organization on their premises during the 5-

days work week.

The AACE international certification program has been designed to provide the industry with Certified

Professionals to perform as cost engineers, estimators, planners & schedulers. Additionally, the workshops

enhance abilities of Cost Engineering Professionals by gaining special recognition of their peers and

highlighting those who meet prescribed standards of performance and conduct and have demonstrated their

excellence by maintaining a high level of competence.

For registration please contact at reg@aacee-ags.org / reg.aacei.ags@gmail.com

For more updates please log on our website: www.aace-ags.org / www.aacei.org

Saudi Aramco: Company General Use

Virtual CEP Certification Refresher Seminars/Exam

preparatory Workshops7

Issue 2

August 2021

Dear Professional Colleagues, Greetings

AACEI-AGS is pleased to announce the commencement of the following CEP Certification Refresher Seminars and

Exam preparatory Workshops as per the below given schedule (tentative): Please note that the sessions will be held on

virtual via Zoom Application.

REGISTRATION: Interested professionals can register by submitting the registration form along with the complete fee

paid into the AGS Bank Account.

AACE-Arabian Gulf Section, an international body with headquarters in USA, widely spread and well recognized across

the world, in the field of “Total Cost Management”, “Planning & Scheduling”, “Earned Value Management” “Cost

Estimating”, etc.

Cost Management, the ultimate baseline for the success of any industry right from Project initiation, has very high under-

tapped potential across the Middle East with the heavy investment happening in various sectors like, Oil & Gas,

Infrastructure etc. There is a noticeable shortage of trained and certified professionals in this region and AACE-AGS is

working towards filling the gap between the availability and requirement. The Arabian Gulf section which awarded the

best chapter awards many times is supported with an excellent team of professional expertise for grooming the potential

candidates for the CCP (Certified Cost Professional), PSP (Planning & Scheduling Professional) and CEP (Cost

Estimating Professional) certifications, which are the most widely recognized professional certification in this field.

We conduct CCP/CEP/PSP evening courses every year, and the response and passing rate have been overwhelming. If

you are in the Project Management / Project Controls / Estimation / Costing / Manufacturing or any related management

areas and are still not formally and professionally certified, this could be a great opportunity to accelerate your career

growth and contribute better to the industrial community worldwide.

AACE-AGS representatives will be more than happy to assist you with further details, if required for deciding on joining

the program. Furthermore, we invite you to visit our websites www.aacei.org /www.aace-ags.org for an in-depth

understanding of the association and its worldwide and regional activities. Please find attached herewith the Course

Brochure and Registration Forms.

Note: Arabian Gulf Section also provides in-house training programs for companies / organizations on their premises

during the 5-day workweek.

With best regards,

Hamad A Bahli

Director-CET, AACEI-AGS 2020-21 Mobile# +966 50923020

Fridays/Saturdays: 02:00 PM – 06:00 PM Register before 8 September 2021

Certification DatesFee for with valid AACE

International Membership

Fee for Non-

Members

CEP17 Sep Friday, 18 Sep Saturday, 1 Oct Friday ,

2 Oct Saturday & 8 Oct 2021 Friday SR 1250/- SR 1500/-

CCP/CEP/PSP Certifications are supported by HRDF

Saudi Aramco: Company General Use

https://www.facebook.com/AACE-Arabian-Gulf-Section-259245197511137/

https://www.linkedin.com/in/arabiangulfsection-aace-b1179378/

www.aace-ags.org / www.aacei.org

Issue 2

August 2021

Please contact for registration

reg.aacei.ags@gmail.com / reg@aace-ags.org

Hamad A Bahli, Director CET, +966 509230201

Josue E. Garcia, VP Technical, +966 564805410

Shaik Alimoddin, Administrator +966 567113479

Issue 2

August 2021