Rules of Credit

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Exhibit I, Part B

Attachment 1

Progress Measurement Requirements

General Budgeted direct manhours and quantities with units of measure shall be in the progress measurement system.

Schedule resource loading will be reconciled with the hours in the progress management system to ensure proper loading.

Construction

• Report Frequency - Progress will be issued on a weekly basis by the construction contractor (CC).

• Progress measurement

Progress will be based on earned manhours that will be earned at the detailed work activity level.

• Partial credit guidelines as proposed by the CC will be reviewed and approved by the Company prior to t)le start of work. See Attachment 4 in this procedure for minimum requirements.

- Progress curves will be provided for overall and discipline progress against the baseline curves. Forecast and actual curves will be displayed as well.

Budget manhour details will be submitted by the CC at the beginning of construction for Company review and approval.

• Direct manhours - craft hours directly advancing the work. • Indirect manhours will be displayed using a series of work-off curves for each

category of indirect manhours. The schedule curve will be a direct reflection of the CC staffmg plan. Actual and forecast manhour curves will be displayed as well. Examples of indirect hours - superintendent, general foreman, material control, document control, equipment operators, scaffolding, holewatch, firewatch, etc.

Overall Progress

• Report Frequency - Progress and perfonnance measurement results will be issued on a monthly basis to the PMT.

• The weighting of the overall project percent complete will be submitted to the Company prior to the first invoice.

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Exhibit I, Part B

Attachment 2 Commodity Curves

Civil and Site - percent complete: • excavation / backfill in CY • concrete in CY cast • paving cast in SF • epoxy grout CY • cementitious grout CY

Structural Steel- percent complete: • steel erected in tons

Equipment·Vessels & Exchangers - percent complete

Equipment-Rotating - percent complete

Equipment-Fired - percent complete

Fireproofing - percent complete: • structural in CY • skirts in SF

Piping - percent complete: • Spools - total, received, erected • Welds

- field erection, Small bore and large bore, each - field fab, Small bore, each

• footage erected • footage pre-hydro'd • footage hydro'd • footage post-hydro'd

Steam Tracing - percent complete • footage bare • footage pre-insulated • footage tested .

Insulation - percent complete • pipe insulation LF • equipment insulation SF

Electrical - percent complete • conduit LF • cable tray LF • wire LF • motor run-in each • MCC/Switchgear each

• starters each • breaker panels each • transformers each • light fixtures each • low/med voltage terms each • high voltage terms each

Instrumentation - percent complete • devices bench calibration each • devices mounted each • devices mounted each • devices tubed each • devices tubing tested each • loops punch listed each

Buildings - percent complete

Partial Credit Guidelines Construction

Sample Project, Location Milestone Description Percent Complete

MISC. OR PKG. SYS RECEIVE SET ALIGN FOR GROUT SELL-OFF

CRANESIHOISTS RECEIVE PRE-ASSEMBLE ERECT FINAL ALIGNMENT SELL-OFF

TOWER/COLUMNS RECEIVE SET/ALIGN FOR GROUT INTERNALS INSPECT/CLEAN SELL-OFF

SHOP FAB VESSEL DRUMS (ASSUMES DELIVERY TO HOOK)

RECEIVE SET INSTALL INTERNALS (consider separate category) INSPECT/CLEAN CLOSE UP (sell-off)

HEAT EXCHANGERS RECEIVE SET EXCHANGER FINAL ALIGNMENT FOR GROUT SELL-OFF

AC EXCHANGERS RECEIVE PRE-ASSEMBLE ERECT REMOVE BELT FOR RUN IN FINAL ALIGNMENT SELL-OFF

HEATERS (ASSUMES SHOP PREFAB/MODULAR)

RECEIVE SET/ASSEMBLE BOLT OUT WELD OUT REFRACTORY HYDRO TEST COILS SELL-OFF

Exhibit I. Part B. Attachmerit 4

0 30 40 30 100

0 40 45 10 5

100

0 35 40 20 5

100

0 35 40 20 5

100

0 70 25 5

100

0 20 45 20 10 5

100

0 20 20 20 20 15 5

100

Page 1 of11

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Sample Project, Location Milestone Description

STACKS RECEIVE PRE-ASSEMBLE ERECT STACK SELL-OFF

PUMPS RECEIVE SET ON FOUNDATION ALIGN: READY FOR GROUT COUPLED FINAL ALIGNMENT READY FOR STRESS SELL-OFF

COOLING TOWER RECEIVE ERECTION HYDRO TEST SELL-OFF

COOLING WATER FANS RECEIVE INSTALL FANS ROUGH ALIGN CPL FOR RUN IN FINAL ALIGNMENT

FANS & BLOWERS RECEIVE INSTALL ROUGH ALIGN CPL FOR RUN IN FINAL ALIGNMENT SELL-OFF

COMPRESSORS & AUX EQUIP RECEIVE SET READY FOR GROUT ROUGH ALIGN CPL FOR RUN IN RUN IN FINAL ALIGNMENT SELL-OFF

FLD ERECT TANKS FOUNDATION BOTTOM SHELL & INTERNAL ROOF& INTERNAL ACCESSORIES

Exhibit I. Part B. Attachment 4

Percent Complete

o 35 50 5

100

o 10 30 30 20 10

100

o 70 25 5

100

o 30 30 30 10

100

o 35 25 25 10 5

100

o 25 20 20 15 10 10 100

18 12 25 15 10

Page 2 of 11

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Sample Project, Location


Milestone Description Percent Complete

TESTING 5 PAINTING & CONTROLS 5 INSULATION 10

100 FLD ERECT TANKS

FOUNDATION 18 BOTTOM 12 SHELL & INTERNAL 30 ROOF & INTERNAL 20 ACCESSORIES 10 TESTING 5 PAINTING & CONTROLS 5

100 CONVEYORS

RECEIVE 0 PRE-ASSEMBLE 40 ERECT READY FOR GROUT 30 FINAL ALIGNMENTIBELT TRAIN 25 SELL-OFF 5

100 ELEVATORS

RECEIVE 0 ERECTELEV 80 CHECK OUTIFUNCTIONAL TEST 15 SELL-OFF 5

100 CRUSHERSIMILLS

RECEIVE 0 SET 30 ROUGH ALIGN 20 CPL FOR RUN IN 30 RUN IN 10 FINAL ALIGNMENT 5 SELL-OFF 5

100 EDUC, FILTERS, ETC.

RECEIVE 0 INSTALL 85 SELL-OFF 15

100 AGITATORS

RECEIVE 0 INSTALL 70 RUN IN 25 SELL-OFF 5

100

REACTORS RECEIVE 0 SET <60

Exhibit I, Part B, Attachment 4 Page 3 of 11

· . Partial Credit Guidelines

Construction Sample Project, Location

Milestone Description

INSTALL INTERNALS INSPECT / CLEAN CLOSE / SELL-OFF

BINIHOPPERISILO RECEIVE SET INSTALL ACCESSORIES SELL-OFF

GATESIDIVERTERS RECEIVE INSTALL SELL-OFF

AIR DRYERS RECEIVE SET ALIGN FOR GROUT SELL-OFF

SCALES/CHLORINATORS RECEIVE INSTALL ROUGH ALIGN FINAL ALIGNMENT SELL-OFF

COKE DRILL STEMS RECEIVE INSTALL ROUGH ALIGN FINAL ALIGNMENT FOR GROUT SELL-OFF

HYDRAULIC EQUIPMENT RECEIVE INSTALL FINAL ALIGNMENT FILL SYS WITH HYDR FLUID SELL-OFF

DUCTWORK RECEIVE PRE-ASSEMBLE ERECT WELD OUT

Exhibit I, Part B, Attachment 4

Percent Complete

>20 15 5

100

o 75 20 5

100

o 85 15

100

o 60 30 10

100

o 40 45 10 5

100

o 30 55 10 5

100

o 40 35 20 5

100

o 35 35 30 100

Page 4 of 11

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GROUT CHIP AND FORM 40 POUR GROUT 40 STRIP AND PATCH 20

100 FDN <2.3m3 (<3cy)

TIE REBAR 15 Set Rebar 10 Excavate 10 FORMIPOUR CONCRETE 45 STRIP FORMS! FINISH 10 BackfilVSell 10

100 FDN 2.3 -38.23 m3 (3-50 cy)

PREFAB REBAR 15 Excavate 10 SET REBAR 20 SET FORMS 20 POUR CONCRETE 20 STRIP FORMS! FINISH 10 BACKFILL 5

100 FDN> 38.23 m3 (>50cy)

PREFAB REBAR 10 Excavate 10 SET REBAR 30 SET FORMS 20 POUR CONCRETE 10 STRIP FORMS! FINISH 10 BACKFILL 10

100 SPECIAL SLABS @ GRADE

PREFAB REBAR 15 PREP GRADE IS SET REBAR 25 SET FORMS 30 PLACE CONCRETE 10 STRIP FORMS / FINISH 5

100 ELEV. FDNS -PIERIW ALL 1.22m A/G

PREFAB REBAR 15 SET REBAR 30 SET FORMS 30 PLACE CONCRETE 15 STRIP FORMS ~ FINISH 10

100 ELEVATED STRUCTURES

PREFAB REBAR 20 SET REBAR 10 SET FORMS/SHORING 40

Exhibit I, Part B, Attachment 4 Page 5 of 11

· . Partial Credit Guidelines



PLACE CONCRETE STRIP FORMS / FINISH

ERECT PRECAST CONCRETE MOVE FROM LA YDOWN ERECT POUR JOINT

ELEVATED SLABS W/Q-DECKING o DECKING FORMING FABREBAR SET REBAR POUR CONCRETE STRIP FORMS / FINISH

ELEVATED SLABS WI SHORING PREFAB REBAR SET REBAR SET FORMS SHORING POUR CONCRETE STRIP FORMS / FINISH

PlPE SUPPORTS POURED IN-PLACE TIE REBAR F AB A . BOLTIEMBEDS FORMIPOUR CONCRETE STRIP FORMS / FINISH

RETAIN1NG WALLS PREFAB REBAR SET FORMS SET REBAR POUR CONCRETE STRIP FORMS / FINISH

GROUT CHIP & FORM POUR GROUT STRIP& PATCH

DRILLED FOOTINGS DRll..L, SET REBAR, POUR CONCRETE

PITS & BASINS PREFAB REBAR EXCAVATE SET REBAR


Percent Complete

10 20 100

25 50 25 100

30 15 10 15 20 10 100

20 10 20 20 10 20 100

15 10 65 10 100

15 40 25 10 10 100

40 40 20 100

100

15 15 15

Page 6 of11

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SET FORMS POUR CONCRETE STRlP FORMS / FINISH BACKFILL

CIVIL STRUCTURES PREFAB REBAR EXCAVATE -SET REBAR SET FORMS POUR CONCRETE STRlP FORMS / FINISH BACKFILL

ABOVE GROUND SPOOL FABRICATION CUT AND TACK WELD OUT RECENE ON SITE

PIPE SPOOL ERECTION (L B ) ERECTION CONNECT TRIM OUTSUPPORTS PRE~HYDRO

TESTING POST-HYDRO

FIELD RUN PIPE FAB ERECT SUPPORT PRE-HYDRO TESTING POST-HYDRO

STEAM TRACE MANIFOLDS FAB MANIFOLDS INSTALL

LUBE OIL TUBE TRAY / SUPPORT INSTALL TUBE TEST (AIR)

PROCESS SIDE PIPING AND HOOK-UP TUBERACEWAYSUPPORT -PROCESS TUBING HOOK-UPS


Percent Complete

25 10 10 10 100

15 15 15 25 10 10 10 100

40 40 20 100

40 25 15 10 5 10 100

20 35 20 10 5 10

100

80 20 100

50 40 10

100

60 40 100

Page 7 of 11

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Sample Project, Location Milestone Description Percent Complete

PIPE TESTING

STEAM TRACE TUBING

TIE-INS LOCATE EXECUTE TIE-IN/COMPLETE

MISCSTEELFAB CUT & TACK WELD OUT RECEIVE ON SITE

ERECT MAJOR FRAME SHAKEOUT PRE-ASSEMBLE ERECTION BOLT-UP ALIGNIHARD BOLT FINISH / SELL

LADDERS, CAGES & EQUIP PLTFRMS SHAKEOUT PRE-ASSEMBLE ERECTION BOLT-UP ALIGN I HARD BOLT FINISH / SELL

PIPERACKS PRE-ASSEMBLE ERECTION BOLT-UP ALIGN / HARD BOLT FINISH I SELL

MISCSTEEL PRE-ASSEMBLE ERECTION

INSTRUMENT DEVICES RECV ICAL/SPEC CHECK INSTALL DEVICES ELECTRlCALL Y COMPLETE SELL-OFF

ANALYTICAL INSTRUMENTS RECV ICAL/SPEC CHECK INSTALL DEVICES


15 85 100

50 30 20 100

10 20 25 20 20 5

100

10 20 25 20 20 5

100

20 30 35 10 5

100

55 45 100

10 60 20 10

100

10 60

Page 8 of 11

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ELECTRICALLY COMPLETE VERIFY CONNECTIONS

IN-LINE DEVICES STORAGE/SPEC CHECK/CAL. .INSTALL ELECTRICALLY COMPLETE VERIFY CONNECTIONS

INSTRUMENTS AND CONTROLS

Percent Complete

20 10

100

10 60 20 10

100

THIS ACCOUNT NOT USED-ALL ITEMS ACCOUNTED FOR IN OTHER ACCOUNTS

CONTROL PANELS SET 20 WIRING 40 CHECK-OUT 20 FINAL SELL-OFF 20

100 PNEUM IPROC CNTRL TUBING

TRAY / SUPPORTS 50 INSTALL TUBING 30 CLEANITEST 10 SELL-OFF 10

100 STANDS, MOUNTS, AND SUPPORTS

FAB 60 INSTALL 40

100 WINTERIZATION

STEAM TRACE 75 INSTALL HEAT PACK 25

100 SPEC CHECK AND PRE-CAL. THIS ACCOUNT NOT USED-ALL ITEMS ACCOUNTED FOR IN OTHER ACCOUNTS

LOOP COMPONENTS INSTALLED LOOP READY TO SELL SELL-OFF

PAINT EQUIPMENT BLAST & PRIME COAT INTERMCOAT FINAL COAT

PAINT PIPE BLAST & PRIME COAT INTERMCOAT FINAL COAT


40 60 100

35 30 35 100

60 20 20 100

Page 9 of 11

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PAINT STEEL BLAST & PRIME COAT 50 INTERMCOAT 25 FINAL COAT 25

100 MCC I SWITCHGEAR

SETINPLACE 25 ALIGNMENT 25 TERMINATE AND TEST 40 ENERGIZE 10

100 UPS SYSTEMS

SET IN PLACE 25 ALIGNMENT 25 TEST 25 ENERGIZE 25

100 CABLE TRA Y/J-BOXES

INSTALL 85 TRAY COVER 15

100 POWER BREAKERS AND EQUIPMENT

SETILEVEL 25 TERMINATE 50 CHECKOUT 25

100 EQUIPMENT INSULATION

INSULATE 40 METAL 50 SELL 10

100 PIPE INSULATION (SINGLE LAYER)

INSULATE 40 METAL 50 SELL 10

100 CONCRETE PAVING

PREFAB REBAR 15 PREP ARE GRADE 15 SET REBAR 15 SET FORMS 15 POUR CONCRETE & FINISH 30 STRlP FORMS / FINISH / BACKFILL 10

100 CONCRETE DITCH LINING

PREFAB REBAR 15 PREPARE GRADE 15 SET REBAR 15 SET FORMS 15

Exhibit I, Part B, Attachment 4 Page 10 of11

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c ... Partial Credit Guidelines



POUR CONCRETE & FINISH STRIP FORMS / FINISH

LIGHT POLE FDNS. TIE REBAR FAB A. BOLTIEMBEDS FORM / POUR CONCRETE STRIP FORMS / FINISH

GUARD POSTIRAILING PREFAB POST INSTALL POST

VALVE BOXES, MANHOLES, CB PREFAB ENTIRE VL V BOX EXCAVATE PLACE SEAL SLAB SET AND ALIGN BACKFILL

UNDERGROUND PIPE "CIS" EXCAVATION BED INSTALLED FAB PIPE PIPE INSTALLED TEST BACKFILL

UNDERGROUND PIPE "RCP" EXCAVATION BED INSTALLED FABPIPE PIPE INSTALLED TEST BACKFILL

EQUIP FIREPROOFING PREPARATION PLACE FIREPROOFING & CLEAN

CAULK


Percent Complete

30 10 100

15 10 65 10

100

50 50 100

60 20 10 10 100

10 10 30 35 5 10

100

20 10 20 35 5 10 100

45 50

5 100

Page 11 of11

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Rules of Credit