1.ProjectManagementPhilosophy

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1. Project Management Philosophy

The following philosophy is the basis which forms the Bidders project management

plan:

Ensure that Bidders staffs are aligned towards achievement of a set of common

project goals through a cooperative effort in a spirit of teamwork

Maximize the use of local resources in Vietnam

Maximize Employers satisfaction with the performance, operability,

maintainability, safety and quality of the facilities handed over

Ensure that the project execution process meets the highest standards for safety,

quality and efficiency of performance

Project Management plan will conform to the Quality Policy which is in compliance

with the requirements of the International Standard ISO 9001:2008.

Project QA Manager to manage, monitor and maintain the Project quality management

system by preparing the Project Quality Plan, conducting quality induction training of theproject personnel and planning and conducting project quality audits.

The Project Quality Plan provides the basis to guide, direct and instruct the Project Team in

execution of their work to achieving the required quality for its services and products. Soon

after Contract Award, the Project QA Manager will issue the project specific quality plan

addressing the quality requirements for the full scope of work for project management and

control, engineering, procurement, and construction work.

Project personnel are responsible for implementing this plan, which as a minimum, specifies

the following:

Quality objectives and quality requirements for the project

Organization and responsibilities Work processes, documentation, and resources

Review, verification and validation process for Engineering phase, Monitoring

and Inspection for Procurement and Construction phase

Records needed to provide evidence that the processes and resulting product

meet requirements

All vendor and subcontractor quality manuals will be reviewed by Bidder to ensure their

QMS are established according to ISO 9001, or an equivalent standard. After contract

award, vendors and subcontractors shall submit their quality plan to Bidder to ensure

conformance with the project established QA/QC procedures.

2. Engineering Execution Philosophy

Bidders objective will be to execute engineering effectively to produce a plant that

satisfies the Employer requirements outlined in the Employer documents. The

execution plan will achieve safety, quality, reliability, availability, constructability,


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operability and maintainability with no adverse environmental impacts within the

agreed cost and schedule criteria.

Bidders engineering execution philosophy will be based on the following:

Draw upon Bidder s and Employers experience gained, and lessons learned,

from similar projects already completed or under implementation. Meet the Project requirements for safety, quality, reliability, constructability,

operability, maintainability, environmental impacts within the agreed cost and

schedule goals.

Quick start and proper performance of design and safety reviews,

documentation, and resolution of outstanding items.

Develop a construction and start-up driven schedule utilizing proven designs

and promoting constructability.

Ensure that design reviews are properly performed, documented, and

implemented, including plot plan review and P&ID review.

Ensure consultation, participation and involvement of the local authorities in

the identification of local regulations, and getting applicable local approvals

and permits related to design aspects.

Encourage vendor to maximize vendors standards and international codes to

obtain the best proven design.

Ensure open communication and effective coordination with Employer

representatives.

Ensure an effective communication and coordination with subcontractors and

vendors.

Conduct early activities to identify and set the critical front-end activities.

Align engineering progress such as Engineering Required Date (ERD) to

achieve the planned construction progress such as Construction Required Date

(CRD).

3. Procurement Execution Philosophy

Bidders procurement execution philosophy is to purchase equipment and materials;

in conformance with the required schedule, project specifications, quality, Project

requirements; and from the project vendor list approved by Employer. Bidders

extensive international procurement experience ensures the highest ethical standardsare adhered to during all procurement activities and that product quality and

performance meet Project requirements.

Sourcing will be on a worldwide basis, unless agreed otherwise, and in

accordance with the Employer Approved Project Vendor List. This list is a

live document and will be continuously updated through the life of the project

with new sources submitted for Employer review.


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Bidder will limit the number of vendors, thus minimizing investment for stock of

spare parts, especially for similar types and groups of equipment, Bidders

engineering team will develop technical requisition requirements that ensure

alignment and commonality of equipment to the maximum extent practical.

Purchasing will be performed on a fast track basis. In particular, the purchasing

of long lead items and critical items, such as Jet-A1 Tank, Water Tank, Pump,MOV and Cathodic Protection System will start as soon as possible after

Contract Award in order to supply the engineering group with certified vendor

data to allow the development of detailed engineering.

4. Construction Execution Philosophy

Bidder recognizes that the ultimate deliverable to the Employer is the timely and

efficient handover of the facilities at mechanical completion to suit the

commissioning needs. To achieve this, the planning of commissioning and start-up

will commence in the engineering phase and continue through procurement into the

construction phase. To cope with this plan, Bidder will focus on priority andsequence of the work to complete systems and sub-system in a manner that supports

the planned handover schedule.

Construction activities are completed and aligned to ensure a smooth transition from

an area execution to a system completion method if required. To achieve this, the

entire focus of construction will be the safe and timely mechanical and

commissioning completion of the plant, in accordance with all the project

requirements.

4.1. Home Office Construction Management

Construction planning and constructability studies will be managed by Construction

Manager. A construction group will be mobilized in Hanoi office to participate in the

overall project planning and conduct the construction activities in conjunction with

the engineering and procurement groups.

The construction group will also lead finalization of the Construction Master

Schedule in line with the Project Master Schedule (PMS) to define the shortest and

most efficient path for construction. Home Office Construction Management team

will define Construction Required Dates (CRDs) that will set the priorities for the

engineering deliverables and delivery of equipment/materials.

In particular, they will coordinate their planning with the commissioning group to

support the commissioning schedule to ensure the earliest possible hand over of the

plant.

The construction group will begin, at this stage, the selection of the subcontractors,

who must be mobilized in time to participate in the detailed construction planning.


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The construction group will also begin the planning of the temporary facilities such

as site office, camp accommodation, etc., as required that must be completed very

early in the project to support site activities.

The other activities associated with Home Office Construction Management will

include the following:

Finalize the field organization structure and nominate personnel for each

position and develop a mobilization plan

Review resource loading of construction work force and construction equipment

to achieve planned Construction Master Schedule

Coordinate with commissioning group and Employer to finalize the handover

sequence, the system and sub-system target dates, the commissioning schedule,

and acceptance procedures

Develop detail of temporary facilities plan to meet project requirements

Implement the subcontract plan, inquirers, bidding, selection and qualification of

subcontracts required for construction work Provide constructability input

Participate in the development of the Project Master Schedule to include

Construction Required Dates(CRDs) for engineering deliverables and delivery

of equipment/materials

Develop field HSE program and procedures

Develop field QA/QC program and procedure

Develop and implement heavy lift plan and procedures

Prepare project specific construction procedures

4.2. Site Operation Management

Construction management will be led by the Site Manager. The Site Manager is

responsible for establishing and maintaining a safe work environment for all

employees and providing the necessary tools, resources and guidance to complete the

project as designed.

The main activities associated with the Site Operation Management will be as

follows:

Lead all construction activities performed on site

Implement HSE program to achieve safety goals

Avoid adverse health and environmental issues

Implement field QA/QC program to achieve quality policy

Achieve schedule requirements

Manage subcontractors efficiently

Coordinate the handover activities

Coordinate the systems completion to support commissioning

Identify and control interfaces among related parties on construction site

Maintain communications with all parties


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5. Pre-commissioning and Commissioning

Pre-commissioning, commissioning and performance testing will comply with local

safety regulations, Employers safety rules and Bidders safety programs.

Experienced engineers will be assigned to the pre-commissioning and

commissioning team and they will prepare the pre-commissioning and

commissioning procedures carefully to complete the activities safely.

5.2.1 Scope of Work for Pre-commissioning and Commissioning

A brief description of Bidders scope of work during pre-commissioning and

commissioning is as follows:

1. Engineering Stage

(1) Preliminary Activities

Commissioning engineers will develop the following:

(a) Schedule

Commissioning engineers will issue a pre-commissioning and commissioning

schedule to be incorporated in the overall schedule.

(b) Procedures

Commissioning engineers will issue the following procedures:

Pre-commissioning & Commissioning procedure

Performance Test Procedure

(c) Operating Manuals

Process engineers will prepare the Operating Manuals and commissioning engineers

will review and comment on them.

(2) Reviewing Engineering Deliverables

Commissioning engineers will review the following engineering deliverables with

regard to pre-commissioning and commissioning.

Process and Utility Flow Diagrams

Piping and Instrument Diagrams


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Cause and Effect Diagrams

Plot Plan

Vendor Instruction Sheets

Piping Layouts and Plant Model

2. At Site

(1) Preparation Activities

Commissioning engineers will prepare the following at site:

Detailed pre-commissioning and commissioning procedures, check lists and

test sheets

Punch list

Pre-commissioning and commissioning report formats

(2) Execution Activities

Commissioning engineers will carry out the following:

Mechanical completion witness, such as:

Closing up of vessels and drums and tank

Non-operational pipe cleaning done by the construction group

Line checking before hydrostatic testing

Pre-commissioning activities

Commissioning activities

Performance testing

5.2.2 Pre-commissioning

Pre-commissioning comprises those activities carried out to prove that equipmentand facilities within a unit or system have been properly installed and tested.Pre-commissioning activities are checks and tests, typically including:

Operational cleaning of piping and equipment where necessary

Motor solo run


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Mechanical run in of machinery

Alignment of rotating equipment

Lubrication of motors, pumps and gearboxes

Control system site acceptance tests (SAT)

Instrument loop checking

Instrument functional test

Flushing of fuel oil line

Especially, the fuel oil line shall be paid attention to be clean during the construction

and the flushing work shall be started after the piping inside is confirmed to be clean.

A system is Ready for Commissioning (RFC) when all pre-commissioning

activities on that system are complete.

5.2.3 Commissioning

Commissioning comprises those activities carried out subsequent to RFC and prior to

Start-up, which are necessary to prepare equipment and facilities for the first

introduction of hydrocarbons.

As soon as a portion or the whole of the facilities have been commissioned, Bidder

will submit commissioning reports to the Employer for approval.

5.2.4 Handover to the Employer

Bidder will apply in writing to the Employer for Certificate of Completion and

Provisional Acceptance for any particular portion or the whole of the facilities as

appropriate when:

Pre-commissioning of complete system

Commissioning of complete system

Carrying out a successful Performance Test

5.3 Training


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5.3.1 General

This section presents the criteria based on which Bidder will prepare the Training Program in

accordance with Employers requirement. Bidder will provide all training materials,

professionals and specialists required for the training. The terms of the training courses will

be agreed upon with Employer, at least two (2) months before the beginning ofPrecommissioning at the Site.

5.3.2 Objectives and Scope of Training

Bidder proposes the training program as on-the job training by Vendor specialist during the

Commissioning stage. The following training by Vendor specialist will be planned and the

trainee assignment will be planned preliminary as shown in Table 5.7-1.

Automation System (DCS)

Leak Detection System

Radar Tank Gauging System Unloading Meter

Diesel Engine Generator

Switchgear and MCC

Access Control System(ACS)

Intruder Detection System

CCTV System

Laboratory equipment

Fire Fighting System

5.3.3 Coordination of Training

Engineering Manager will be responsible for planning, coordinating and supervising thetraining program fully satisfying the Employers requirements cooperating with Discipline

engineer.

The Engineering Manager will develop the training program in consultation with the other

project groups, such as

- Construction Groups to ensure integration of schedules and availability of site

facilities, and to avoid any interference with site work

- Precommissioning and Commissioning Groups to ensure coordination of schedules

The Engineering Manager will plan and coordinate the training at a location in site when

Vendor specialist comes to site during Precommissioning and Commissioning work.

Documents

1.ProjectManagementPhilosophy