NFPS Offshore Compression Complexes Project COMP2

COMPANY Contract No.: LTC/C/NFP/5128/20

CONTRACTOR Project No.: 033734

Document Title

: PROJECT QUALITY PLAN

COMPANY Document No.

: COMP2-SPM-QM-PLN-00001

Saipem Document No.

: 033734-Z-Z-00-SPM-QA-P-10001

Discipline

: QUALITY MANAGEMENT

Document Type

: PLAN

Document Category/ Class

: 1

Document Classification

: INTERNAL

00

26-MAR-2023 Approved for Construction Muhsin Perincheeri

Sergio Mezzotero

Ennore Paoli

C

B

A

14-MAR-2023

Issued for Approval

Muhsin Perincheeri

Sergio Mezzotero

Ennore Paoli

13-FEB-2023

Issued for Review

Krishna Katkam

Sergio Mezzotero

Ennore Paoli

22-NOV-2022

Issued for Review

Sergio Mezzotero

Sergio Mezzotero

Ennore Paoli

REV.

DATE

DESCRIPTION OF REVISION

PREPARED BY

CHECKED BY

APPROVED BY

Saipem S.p.A.

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REVISION HISTORY

Revision

Date of Revision

Revision Description

A1

A

B

C

00

15-NOV-2022

22-NOV-2022

13-FEB-2023

14-MAR-2023

26-MAR-2023

Issued for IDC

Issued for Review

Issued for Review

Issued for Approval

Approved for Construction

HOLDS LIST

Hold No

Hold Description

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TABLE OF CONTENTS

1

2

3

4

5

6

INTRODUCTION … 5

1.1 PROJECT OBJECTIVE …5 1.2 PROJECT SCOPE …5

DEFINITIONS AND ABBREVIATIONS … 7

2.1 DEFINITIONS …7 2.2 ABBREVIATIONS …8

REFERENCE, RULES, CODES AND STANDARDS … 9

3.1 COMPANY REFERENCE DOCUMENTS …9 3.2 PROJECT REFERENCE DOCUMENTS … 10 3.3 CODES, STANDARDS AND REGULATIONS … 10

PURPOSE … 11

AREA OF APPLICATION … 11

PROJECT QUALITY MANAGEMENT SYSTEM … 12

6.1 GENERAL … 12 6.2 PROJECT QUALITY POLICY … 12 6.3 PROJECT QUALITY ORGANIZATION … 12 6.4 MANAGEMENT RESPONSIBILITY & LEADERSHIP … 12

6.4.1 Company Focus … 13

6.4.2 Quality Management Reporting … 13

6.4.3 Project Quality Key Performance Indicators … 14

6.4.4 Project Roles & Responsibilities … 14

6.4.5 Processes Interface… 20 6.5 CONTRACT REVIEW … 23 6.6 PROJECT RISK ASSESSMENT & MANAGEMENT … 23 6.7 PROJECT QUALITY AUDITS: … 23 6.8 CONTROL OF NON-CONFORMING PROCESS … 24 6.9 QUALITY AND FLAWLESS TRAINING PROGRAM … 25 6.10 QUALITY WALKS … 25 6.11 QUALITY ALERT … 26 6.12 QUALITY INDUCTION & TRAINING … 26

6.12.1 Project Quality Induction in Home Office … 26

6.12.2 Training & Project Induction in Worksite(S) & Site Office … 27 6.13 PROVISION OF RESOURCES … 27 6.14 CONTROL OF TESTING, MEASURING & MONITORING EQUIPMENT FOR PRODUCT CONFORMITY … 27 6.15 DOCUMENTS & DATA CONTROL … 28

6.15.1 General … 28

6.15.2 Document & Data Approval & Issue … 28

6.15.2.1 Control of Documented Information … 29

6.15.3 Manufacturers Data Books … 29

6.15.4 Documentation Handover Process … 30

7

DESIGN & ENGINEERING … 30

7.1 GENERAL … 30

7.1.1 Design & Development Process … 30 7.2 DESIGN PLAN … 30 7.3 ORGANIZATIONAL & TECHNICAL INTERFACES … 31

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7.4 DESIGN INPUT … 31 7.5 DESIGN OUTPUT … 31 7.6 DESIGN REVIEW … 31 7.7 DESIGN VERIFICATION … 32 7.8 DESIGN VALIDATION … 32 7.9 DESIGN CHANGES … 32

8

PROCUREMENT … 32

8.1 GENERAL … 32 8.2 OUTSOURCED PROCESSES … 32 8.3 QUALIFICATION & EVALUATION OF VENDORS (CRITICAL VENDORS) … 33

8.3.1 Critical Vendors Monitoring & Control … 34 8.4 PURCHASING DATA … 35 8.5 VERIFICATION OF PURCHASED PRODUCTS … 35 8.6 CONTROL OF COMPANY ASSIGNED ITEMS … 36 8.7 PRODUCT IDENTIFICATION & TRACEABILITY … 36

8.7.1 Procured Products Identification & Traceability … 37

8.7.2 Yard and Site Identification & Traceability … 37 8.8 PACKING, PRESERVATION & DELIVERY … 37

9

CONSTRUCTION/FABRICATION/INSTALLATION … 38

9.1 GENERAL … 38 9.2 QUALITY CONTROL TEAM TO SUPERVISE MAJOR SUBCONTRACTORS SCOPE OF WORK … 38 9.3 QUALITY CONTROL TEAM DURING INSTALLATION (ON-BOARD VESSELS) … 39 9.4 CONSTRUCTION/FABRICATION/INSTALLATION PLANNING … 39 9.5 CONSTRUCTION/ FABRICATION/ INSTALLATION REQUISITION … 39 9.6 CONSTRUCTION/ FABRICATION CONTROL … 40

9.6.1 Final Inspection & Testing … 40

9.6.2

Inspection & Test Records … 41 9.7 START-UP, COMMISSIONING, PRE-COMMISSIONING AND MECHANICAL COMPLETION … 41

9.7.1 Deficiency Reports … 42

9.7.2 Deviations & Concessions … 42 9.8 HANDLING, WAREHOUSING & PRESERVATION … 42

9.8.1 Handling … 43

9.8.2 Warehousing … 44

9.8.3 Preservation … 44

10

11

12

QUALITY METRICS … 44

CONTINUOUS IMPROVEMENT PROCESSES & TOOLS … 44

ATTACHMENTS … 45

ATTACHMENT A- PROJECT QUALITY POLICY … 46 ATTACHMENT B- PMT ORGANIZATION CHART (REF: COMP2-SPM-PM-ORG-00001) … 47 ATTACHMENT C- PROJECT QUALITY ORGANIZATION CHART (REF: COMP2-SPM-PM-ORG-00001) … 48

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INTRODUCTION

The North Field is the world’s largest natural gas field and accounts for nearly all of the state of Qatar’s gas production. The reservoir pressure in the North Field has been declining due to continuous production since the early 1990s. The principal objective of the NFPS Project is to sustain the plateau from existing QG South Operation (RL Dry Gas, RGE Wet gas) and existing QG North Operation (QG1 & QG2) production areas by implementing an integrated and optimum investment program consisting of subsurface development, pressure drop reduction steps and compression. Refer to the figure below for a schematic of the North Field.

Qatargas Operating Company Limited is leading the development of the North Field Production Sustainability (NFPS) Project.

1.1 Project Objective

The objective of this Project includes:

• Achieve standards of global excellence in Safety, Health, Environment, Security and Quality

performance.

• Sustain the Qatargas North Field Production Plateau by installing new Compression Complex facilities CP6S & CP7S in QG south with integration to the existing facilities under Investment #3 program.

• Facility development shall be safe, high quality, reliable, maintainable, accessible, operable, and

efficient throughout their required life.

1.2 Project Scope

The Project Scope includes detailed engineering, procurement, construction, transportation & installation, hook-up and commissioning, tie-in to EXISTING PROPERTY and provide support for start-up activities of the following facilities and provisions for future development. The WORK shall be following the specified regulations, codes, specifications, and standards, achieves the specified performance, and is safe and fit‐ for‐purpose in all respects.

Offshore

CP6S and CP7S Compression Complexes that are part of QG-S RGE facilities as follows:

• CP6S Compression Complex • Compression Platform CP6S, Living Quarters LQ6S, Flare FL6S • Bridges BR6S-2, BR6S-3, BR6S-4, BR6S-5 • Bridge linked Tie-in to RP6S

Production from existing wellheads (WHP6S & WHP10S) and new wellhead (WHP14S) are routed via riser platform RP6S to compression platform CP6S to boost pressure and export to onshore via two export lines through the existing WHP6S pipeline and a new 38” carbon steel looping trunk line from RP6S (installed by EPCOL). CP6S is bridge-linked to RP6S.

• CP7S Compression Complex • Compression Platform CP7S, Living Quarters LQ7S, Flare FL7S • Bridges BR7S-2, BR7S-3, BR7S-4, BR7S-5 • Bridge linked Tie-in to RP7S

CP7S shall receive production from existing wellheads (WHP5S & WHP7S) and new wellhead (WHP13S). There is only one export line for CP7S through the existing export pipeline from WHP7S. CP7S is bridge- linked to RP7S.

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RGA Complex Destressing

Migration of the Electrical power source, Telecoms, Instrumentation and Control systems from WHPs and RHPs hosted by RGA to the respective Compression Complexes listed below:

• WHP6S, WHP10S, WHP14S, RP6S and RP10S to CP6S Compression Complex • WHP5S, WHP7S, WHP13S and RP7S to CP7S Compression Complex

Destressing of Telecoms, Instrumentation and Control system in RGA Complex Control Room, which would include decommissioning and removal of telecom system devices and equipment that would no longer be required post migration and destressing activity.

Onshore

An Onshore Collaborative Center (OCC) will be built under EPC-9, which will enable onshore based engineering teams to conduct full engineering surveillance of all the offshore facilities. The OCC Building will be located in Ras Laffan Industrial City (RLIC) within the Qatar Gas South Plot. MICC & Telecommunication, ELICS related scope will be performed in the OCC building.

Figure 1.2.1: NFPS Compression Project COMP2 Scope

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DEFINITIONS AND ABBREVIATIONS

2.1 Definitions

Audit

Certification

COMPANY

Systematic, independent, and documented process for obtaining objective evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled

The authoritative act of documenting compliance with requirements

Qatargas Operating Company Limited

CONTRACTOR

Saipem S.p.A.

Corrective Action

Action to eliminate the causes of an existing nonconformity or other undesirable situation to prevent recurrence.

Criticality

Deliverables

EDMS

A process of undertaking a risk assessment to establish project risk level and unit risk level.

All products (drawings, equipment, services) which shall be submitted by CONTRACTOR to COMPANY at times specified in the contract.

A software system for organizing and storing various kinds of documents. This type of system is a more particular kind of document management system, a more general type of storage system that helps users to organize and store paper or digital documents.

HOLD POINT

A mandatory verification point beyond which a work cannot proceed without APPROVAL by CONTRACTOR / COMPANY.

Improvement

Activity to enhance performance.

Inspection

An activity such as measuring, examining, testing, or gauging one or more characteristics of an entity and comparing the results with specified requirements to establish whether conformity is achieved for each characteristic.

Inspection Assignment Package

A set of documents that include details of purchased material/equipment and their quality requirements needed to perform full inspection at the VENDOR/sub-VENDOR facility.

IPR

MAY

Independent Project REVIEWS to be conducted periodically by COMPANY

Form used to indicate a course of action permissible within the limits of the document.

Non-Conformity

The non-fulfilment of a specified requirement

Pre-Commissioning

Testing of system components for continuity, operability and in the case of the process plants, their ability to withstand operating pressure prior to the introduction of feedstock or other final products into the facility.

Procedure

A specified way to perform an activity or a process

Process

Product

PROJECT

Quality

Set of inter-related resources and activities which transform inputs into outputs.

Result of activities or processes.

NFPS Offshore Compression Complexes Project COMP2.

Fitness for intended use/ meeting or exceeding customer expectations.

Quality Control

Part of Quality Management focusing in fulfilling quality requirements. This includes inspection and testing.

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Quality Control Plan

Quality Management System (QMS)

This document specifies the processes of control, inspection, testing, references documents or defined acceptance criteria traceability and requirements-making applicable to individual components, assembled units or packages. These identify the Hold, Witness, Monitor and REVIEW points of the COMPANY, Contractor and any appointed third party. Also known as an Inspection and Test Plan.

All activities of the overall management function that determine the quality policy, objectives, and responsibilities, and implement them by means such as quality planning, quality control, quality assurance and quality improvement with CONTRACTOR’s Quality System.

Record

Document stating results achieved or providing evidence of activities performed.

Quality Surveillance

Additional quality measure to verify and to ensure the quality of the work.

Root Cause Analysis

A set of analyzing and problem-solving techniques to identify reason for the nonconformity.

SHALL

SHOULD

Form used to indicate requirements strictly to be followed to conform to the document.

to

indicate

Form used is recommended as particularly suitable, without mentioning or excluding others, or that a certain course of action is preferred but not necessarily required.

that among several possibilities one

SUBCONTRACT

Contract signed by SUBCONTRACTOR and CONTRACTOR for the performance of a certain portion of the WORK within the Project.

SUBCONTRACTOR(S)

Any organization selected and awarded by CONTRACTOR to supply a certain Project materials or equipment or whom a part of the WORK has been Subcontracted.

SUPPLIER

Organization that provides a product.

SUPPLY / WORK

The provision of goods / the performance of services, or both.

Unit

VENDOR(S)

2.2 Abbreviations

A component / assembly as one item in the activity as detailed on the Quality Control Plan.

CONTRACTOR’s SUPPLIER(s) of CONTRACTOR procured item(s) - Synonym of SUPPLIER.

Code

CCA

CR

DPD

EDMS

EPCI

QKPI

IAP

IPR

ITP

KOM

Definition

CONTRACT COMPLIANCE ASSESSMENT

CONCESSION REQUEST

Deputy Project Director

Electronic Data Management System

Engineering, Procurement, Construction & Installation

Quality Key Performance Indicator

Inspection Assignment Package

Independent Project Reviews

Inspection and Test Plan

Kick Off Meeting

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Mechanical Completion

Master Document Register

Monthly Quality Report

Manufacturer’s Record Book

Non-Conformity

Non-Destructive Testing

North Field Production Sustainability

Onshore Collaborative Center

Project Director

Project Execution Plan

Project Manager

Positive Material Identification

Project Management Team

Purchase Order

Project Procurement Plan

Project Quality Manager

Project Quality Management System

Project Quality Plan (the present document)

Procedure Qualification Record

Procurement Quality Control Manager

Project Quality Team

Project Specialist Leader

Quality Assurance

Quality Control

Quality Control Manager at fabrication yard or Offshore construction site

Quality Control Plan

Request for Quotation

Specification Deviation Request

Technical Manager

Welding Procedure Specification

Welder Qualification Test

MC

MDR

MQR

MRB

NC

NDT

NFPS

OCC

PD

PEP

PM

PMI

PMT

PO

PPRP

PQM

PQMS

PQP

PQR

PQCM

PQT

PSL

QA

QC

QCM

QCP

RFQ

SDR

TM

WPS-

WQT

3

REFERENCE, RULES, CODES AND STANDARDS

3.1 Company Reference Documents

Ref

Document Number

Title

Exhibit 5 - Final Contract

PROJECT Instructions

Exhibit 6 - Final Contract

Scope of Work

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200-20-CC-PRC-00093

Preservation Plan

200-20-CC-PRC-00094

Specification for preservation

200-20-QM-PRC-00098

Quality Assurance Requirements for SUPPLIERs

200-20-QM-PRC-00099

Quality Control Requirements for SUPPLIERs

COMP-QG-QM-PLN-00002

Procurement Criticality Matrix

COMP-QG-QM-PLN-00003

Procurement Quality Surveillance Plan

PRJ-PJL-PRC-073

Major Project Quality Plan

10. PRJ-000-PRC-008

Lessons Learned

11. PRJ-PJL-PRC-006

Project Information Handover Procedure

3.2 Project Reference Documents

Ref

Document Number

Title

COMP2-SPM-QM-SPC-00002 Quality Requirements for Suppliers

COMP2-SPM-QM-PRC-00001 Project Lesson Learned Procedure

COMP2-SPM-IM-REG-00001 Master Document Register

COMP2-SPM-PM-PLN-00001 Project Execution Plan

COMP2-SPM-PO-PLN-00001 Project Procurement Plan

COMP2-SPM-QM-PLN-00002 Project Quality Audits Program

COMP2-SPM-QM-PRC-00002 Project Non-Conformity Management Procedure

COMP2-SPM-QM-PRC-00003 Project Quality Audits Procedure

COMP2-SPM-QM-SPC-00002 Project Quality Requirements for Suppliers

10. COMP2-SPM-PM-PLN-00002 Risk Management Plan

11. COMP2-SPM-IM-PRC-00001

Document Control Procedure

12. COMP2-SPM-PM-ORG-00001 Project Organization Chart

13. COMP2-SPM-QM-PLN-00004 Project Quality Key Performance Indicator’s (KPI’s)

14. COMP2-SPM-SH-PLN-00001

Project HSE Plan

15. COMP2-SPM-QM-SPC-00001 Project Quality Requirements for Subcontractors

16. COMP2-SPM-QM-PRC-00005 Source Inspection Procedure

17. COMP2-SPM-PE-PLN-00002

Engineering Management Plan

18. (TBA)

Flange Management & System Completion Plan

3.3 Codes, Standards and Regulations

Ref

Document Number

Title

1

2

3

ISO 9000:2015

ISO 9001:2015

ISO 10005:2018

“Quality Management Systems - Fundamentals and Vocabulary”

“Quality Management Systems – Requirements”

Quality Management Systems - Guidelines for Quality Plans.

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4

5

6

7

8

ISO 17025:2017

ISO 10006:2017

General Requirements for the competence of testing and calibration laboratories

Quality Management Systems – Guidelines for Quality Management in Projects

ISO 10005:2018

“Quality Management – Guidelines for Quality Plans”

BS EN 10204:2004

Metallic products. Types of inspection documents

ISO 19011:2011

Guidelines for Auditing Management Systems

4

PURPOSE

This Project Quality Plan describes the Quality Program that shall be used for the COMP2 Scope of Work including Engineering, Procurement, Construction, and Installation as described in the COMP2 project specifications.

The major Sub-Contractor (s) for Fabrication Activities shall comply with the Project Quality Requirements. Project Specific Quality Plan (PQP), pertaining to their scope of work shall be prepared by both the Sub Contractors and submitted for CONTRACTOR/COMPANY REVIEW & APPROVAL in execution stage.

5

AREA OF APPLICATION

The document applies to the supply of services and fabricated works for the NFPS OFFSHORE COMPRESSION COMPLEXES PROJECT COMP2.

All requirements prescribed within this document shall be flowed down the supply chain by the SUBCONTRACTOR to their TIER-SUBCONTRACTORS/SUB-SUPPLIERs for on the base of their relevant Scope of Supply and Scope of Work.

The Project Quality Plan provides description of the key arrangements established within Contractor for the planned and systematic delivery of project Quality performance. The plan includes the following Appendices;

Distribution of the Project Quality plan

All project team members should have access to the latest version of the plan through Contractor EDMS Page.

Revision of the Project Quality Plan

The Project Quality Manager is responsible for the periodic review and update of this Project Quality Plan (at least 1 time per year).

Revisions to the plan shall be subject to review under control of the project document control system. The minimum review participants shall be the Project Managers, the Project Director, and Quality Manager.

Project Quality Plan Involvement Matrix

Function/Organization

Project Director

Deputy Project Director

Project Quality Manager

Project Managers

Prepare/ Revise

Check Approve Implement

✓

✓

✓

✓

✓

✓

✓

Project Deputy Quality Manager

✓

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Project Site QA/QC Coordinators

Project Team

Company

6

PROJECT QUALITY MANAGEMENT SYSTEM

6.1 General

✓

✓

✓

The intention of the QMS is to ensure that products and services supplied to Company are in full compliance with the contract requirements and the Contractor Corporate Standards; this is achieved through the implementation of planned and systematic ways of operating. The system provides for monitoring and surveillance to verify that activities are being performed in accordance with planned measures and permits for corrections/corrective actions in the event of identified nonconformity.

6.2 Project Quality Policy

The Project Management, in accordance with the quality policy, shall establish, implement, and maintain an effective Project Quality System for the duration of PROJECT.

The Quality Policy is enclosed in Attachemnt A of this document.

6.3 Project Quality Organization

The Project management team responsibilities, with respect to Quality can be briefly described below:

• Project Management Team: led by the Project Director, the Project Management Team has the ultimate responsibility to ensure that the Project tasks are achieved in accordance with the project specifications, objectives and goals at all levels and sites; quality is a responsibility of all the PMT.

• Project Quality Team: led by the Project Quality Manager (reporting directly to the Project Director), the Project Quality Team has the responsibility to define, implement, audit, communicate, maintain, and propose improvement to the Quality Management System,

• Discipline/Departments/Project managers: responsible for the definition and implementation of the relevant procedures on the project within their area of responsibility and in line with project and system guidelines as detailed in this plan. Individually, everyone involved in the Project has the obligation to know and apply the statements defined in this Project Quality Plan and associated documents.

The Quality Manager reports to the Project Director and is responsible for all the Quality personnel (Specialists in the areas of Quality Assurance and Control) and related activities.

Project Organization Chart has been established and available in Contractor EDMS and are updated on regular basis. Copy of PMT Organization Chart and Project Quality Chart are enclosed as attachments B & C respectively for ready reference.

6.4 Management Responsibility & Leadership

CONTRACTOR Project Top Management show their leadership and commitment by developing the following activities:

communicating to the functions involved in the PROJECT the importance of complying with contractual and applicable regulatory requirements and of meeting COMPANY expectations and enhance COMPANY satisfaction.

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approve the Project Quality policy in line with the Quality Principles and based on the strategic objectives, taking into consideration the organizational and operational activities required to guarantee greater competitiveness and sustainability of products. approve and monitor the Project Quality Key Performance Indicators agreed with the COMPANY ensuring risks and opportunities are identified and managed at PROJECT level. conducting management REVIEWS and promoting improvement actions continuously at PROJECT level. ensuring the availability of competent resources. supporting other management roles on Project to demonstrate their leadership as it applies to their areas of responsibilities. assuring the implementation of this Project Quality Plan (PQP).

The Project Quality Manager has direct access to the Project Top Management and Process Owners involved in activities affecting quality activities affecting Quality.

6.4.1 Company Focus

The needs and expectations of COMPANY are identified and satisfied by means of:

• Compliance with Contractual requirements defined by the COMPANY, with the applicable statutory

and regulatory requirements.

• Periodic REVIEW of the processes during PROJECT execution including determining and

addressing risks & opportunities.

• Communication and involvement of the functions concerned regarding the above requirements.
• Focusing on improvement actions of WORK processes

6.4.2 Quality Management Reporting

COMPANY and CONTRACTOR PMT shall analyze quality metrics and reports including REVIEW of trends to identify opportunities for corrective actions in Monthly Progress Meetings, Weekly QAQC Meetings etc.

Characteristics to be measured shall include document REVIEW statistics, management of change, deviation requests, NCR/CAR, audits and assessments, Contract assessment and Pre-Inspection Meetings conducted, request for inspection conducted, VENDOR punch listing, weld repair rates, measurement & analysis of the critical processes performance, effectiveness, and efficiency, etc. Such metrics shall be graded/assessed by CONTRACTOR’s quality management to signify quality performance within a benchmarked system, e.g., satisfactory, cause for concern or unsatisfactory.

Based on the above documents, PQM collects pertinent current PROJECT data and calculates various quality parameters and their trends for the given period and on cumulative basis. This information forms part of Monthly Quality Report. This information is then distributed internally to the nominated recipients in the PMT and to the COMPANY as part of MQR.

CONTRACTOR PQM reports directly to the PD who constitute the top management together with the Project Sponsor. PQM discusses PROJECT quality concerns routinely informally with PD / PM and formally during periodic PROJECT Management REVIEW Meetings.

PQM is given full freedom and authority within the PROJECT scope to

conduct ad-hoc audits in the problematic processes, locate system non-conformances and identify opportunities for improvement, report to the PD/PM and Project Management Team about quality related matters

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facilitate and monitor the correction/corrective actions to resolve non-conformities launch improvement action plans conduct Quality inductions and training and alignment meetings concerning the interfaces between the several disciplines/processes involved in the project scope of work

6.4.3 Project Quality Key Performance Indicators

CONTRACTOR PQM shall be responsible reporting quality objectives based on up-to-date PROJECT data and reported to COMPANY periodically.

CONTRACTOR has established PROJECT Quality KPIs Objectives which are measurable and consistent with the PROJECT Quality Policy, including the commitment to continual improvement.

PROJECT Team concurs to the achievement of Quality objectives, under the guide and the control of the PD/PM and PQM.

The capability to achieve the above objectives is continuously monitored through the periodical monitoring of Key Performance Indicators.

6.4.4 Project Roles & Responsibilities

Everyone assigned to, or indirectly supporting, the project has a responsibility for ensuring that related Quality requirements are satisfied, whether these requirements are defined by legislation, contract or Contractor system. Whilst full job descriptions exist for these personnel, this section details specific Quality responsibilities for key project and support personnel, about the project activities conducted directly by Contractor.

Few Key Personnel’s roles & responsibilities are briefed here:

• Project Director

• Single point of contact with COMPANY for all matters pertaining to the CONTRACT.
• Authorize all external communications.
• Ensures that the level of performance is in accordance with the CONTRACT requirements and with

all the stakeholders’ expectations.

• Authorize all Expenditures and Procurement Requests related to the PROJECT.
• Has the ultimate responsibility for the correct implementation of the Quality and HSE programs within

the Project with the cooperation of all functions, specifically with Project Quality Manager.

• Ensuring that processes needed for quality management system are established, implemented, and

maintained.

• Ensuring promotion of awareness of COMPANY requirements within the Project.

• Project Manager

• Coordinate the engineering and constructions activities consulting with relevant disciplines’

managers.

• Support the Project Director in the coordination of the procurement activities.
• Manage subcontracts.
• Represent Contractor towards Clients, Licensors, Partners, and Subcontractors managing also

Involved in Interface management both external and internal.

contractual aspects.

• Behave in accordance with the Contractor leadership Model and make sure the full PMT does the

same.

• Ensure the proper analysis and the review of contractual documents.

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• Ensure the implementation of methodologies related to risk/opportunity, knowledge management,

lessons learned, cost of non-quality.

• Ensure the implementation of the project strategies and the project activities planning (Project Execution Plan, Quality Plan, Procurement Plan, HSE Plan, Fabrication Plan, Installation Plan, etc.).
• Supervise all project activities with regards to Quality, HSE and Sustainability topics supported by

the other project organization roles.

• Stay abreast of the evolution of and implement the project management tools and methodologies.

• Ensure the issue and the implementation of all required home office and project procedures Approve and supervise planning and cost control activities supported by the other project organization roles, implementing the corrective actions needed to achieve the established project objectives and ensure the issue of project reports (including the economics).

• Facilitate generation of Project and Portfolio Dashboards / reports to the Division Management.

• Supervise home office engineering and procurement activities supported by the other project

organization roles.

• Supervise site/yard and offshore activities supported by the other project organization roles.
• Negotiate with the Client to reach agreement on the outstanding pricing, commercial, contractual,

and technical aspects of the variation orders.

• Ensure the issue of project reports to the Client.
• Maintain a valuable trusting relationship with the Client and monitor its satisfaction, supported by the

other project organization roles.

• Monitor final back charges to be applied to any third party (vendors, subcontractors, etc.).
• Ensure the collection of project feedbacks issuing final project reports (e.g., Close-out Report, root

cause analysis, etc.).

• Ensure the issue of completion and delivery certificates.
• Ensure the assistance to the Client during the guarantee period.

• Project SHES Manager

• Responsible for all SHSE related activities in cooperation with Project Director and all functions.
• Prepares all HSE documentation.
• Ensures continual improvement through the preparation and execution of audits.
• Manage on site SHSE personnel.
• Has the authority to halt operations if not performed in compliance with required SHSE requirements.

• Project Quality Manager

• Ensure the definition and implementation of the Project Quality Management System and the identification, preparation and distribution of needed Project Quality Plans and procedures in accordance with the Project requirements.

• Ensure that the integrity of the Company QMS is maintained when changes are made to the system

for the project.

• Ensure that the correct implementation of the Project QMS is checked and monitored through the

planning of a quality audits.

• Ensure that the correct implementation of planned quality audits, taking in account all project

processes, including the issue of relevant audit reports.

• Conduct external audit to Vendors and Subcontractors QMS.
• Ensure, within the project organization, the planning of activities aimed at promoting the applicable

Contractual Quality Requirements.

• Plan and allocate Quality resources to the various area of the project, managing them in liaison with

involved Quality functions.

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• Support the Project Manager in relations with the Client and with the Authorities responsible for

quality matters.

• Participates to Project Management meetings, to ensure coordination between Quality activities and

Project Management activities.

• Ensure the preparation and issue of QC specifications for the works, coordinating and agreeing the

checks by the Technical Departments and Client.

• Ensure the issue of quality requirements to be incorporated, in the contractual documents, with

Vendors and Subcontractors and organizations in charge of works.

• Ensure the Site QC activities implementation, including the monitoring of QC management tool

updating.

• Ensure management of nonconformities.
• Promote appropriate actions to prevent or eliminate potential non-conformities and their causes
• Ensure the management of Cost of Non-Quality process.
• Ensure knowledge and awareness of Quality requirements within the Project Team, also performing

Quality Training activities.

• Collect and analyze project quality data also to organize and lead the Project Quality Management

Review.

• Facilitate the management of lessons learned process.
• Ensure Customer satisfaction process implementation.
• Report Project information and data to Company’s Quality Manager by means of Corporate

methodologies and tools and keep the Project Quality Reporting tools updated.

• Deputy Project Quality Manager

• Provide the necessary back-up to the Project Quality Manager (PQM) regarding quality contractual

issues relating to Quality both during tender and project execution phase

• Support the PQM for the following activities:

• Ensure the definition and implementation of the PQM S and the identification, preparation and distribution of needed Project Quality Plans and procedures in accordance with the Company Quality Management System (QMS)

• Ensure that the correct implementation of the PQMS is checked and monitored through the planning

of quality audits

• Ensure, within the project organization, the planning of activities aimed at promoting the applicable

Contractual Quality Requirements

• Participates to Project Management meetings, to ensure coordination between Quality activities and

Project Management activities

• Ensure the issue of quality requirements to be incorporated, in the contractual documents, with

Vendors and Subcontractors and organizations in charge of works

• Ensure that the integrity of the Company QMS is maintained when changes are made to the system

for the project

• Ensure the correct implementation of planned quality audits, taking in account all project processes,

including the issue of relevant audit reports

• Conduct external audit to Vendors and Subcontractors QMS
• Ensure management of nonconformities
• Promote appropriate actions to prevent or eliminate potential non-conformities and their causes
• Ensure the management of Cost of Non-Quality process
• Ensure knowledge and awareness of Quality requirements within the Project Team, also performing

Quality Training activities

• Collect and analyze project quality data also to organize and lead the Project Quality Management

Review

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• Ensure the management of lessons learned process
• Ensure Customer satisfaction process implementation
• Report Project information and data to Company’s Quality Manager by means of Corporate

methodologies and tools

• Quality Control Coordinator/ Project Quality Engineer

• Support the PQM / QCM in defining the Project Quality Control System and in identifying needed project quality control plans and QC procedures in accordance with the Company Quality Management System

• Support the PQM / QCM in planning and allocating Q C Supervisor functions to the various area of

the project, ensuring coordination of assigned personnel

• Review Quality Control Plans, verify that tests, controls, and inspections are conducted according to Quality Control Plans/Inspection Test Plans and that personnel have access to all required project documentation

• Check procedures and equipment to be used in tests, controls and inspections and agrees on the

applicable operating procedures with the organization in charge of the works

• Review applicable QC procedures, including those relating to special processes
• Check that material and equipment are correctly received, stored, identified, traceable preserved and

handled (if needed)

• Verify the implementation of the inspection, control, and test notification process
• Check documents certifying tests, controls and inspections conducted and their orderly collection

and management, mechanical completion included

• Verify that tests, controls, and inspections are conducted by contractors
• Verify the correct implementation and application of Quality Tools
• Provide specialist support to the PQM / QCM in interfacing with the Client and third parties
• Verify the correct application and, whenever necessary, the update of site Quality Control

Plans/procedures

• Ensure training of Site Personnel on QC topics
• Verify proper Non-Conformity detection and recording, as well as relevant corrective actions

implementation

• Verify the preparation of the Quality section of the final dossier. In case of subcontracted activities,

verify the QC section of the dossier is properly collected

• Verify that inspection/control/test reports are verified, recorded, filed and traceable
• Collect and analyze project QC data to be provided to PQM / QCM, also in view of the Project Quality

Management Review preparation

• Support PQM / QCM in the management of lesson learned process
• Report Project QC information and data to PQM / QCM by means of Corporate methodologies and

tools.

• Business Manager

• Support the Project Team in the CONTRACT and SUBCONTRACT management.
• Coordinate Quantity Surveyors.
• Prepare Invoices to COMPANY defining the needs of back up documentation and consulting with

Implement COMPANY invoicing procedure.

Project Control function.

• Consult with Corporate legal department in case of legal disputes related to the CONTRACT.

• Project Control Manager

• Manage planning, cost control, risk management and document control activities.

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• Prepare the Progress Control and Monitoring Procedure defining planning scheme, WBS and

weighting in accordance with the CONTRACT.

• Prepare weekly and monthly reports.
• Prepare and keep updated the control budget.
• Collect and provide backup documentation for all projects related costs.
• Control progress against baseline schedule providing estimates to completion.
• Collects information and statistical data on the completed project to increase the Project

Management and Engineering database.

• Supply Chain Manager

Issues the project procurement procedure in accordance with the CONTRACT.

• Prepare and keep updated the procurement plan.
• Define VENDOR lists and subcontracting strategy.
• Manage and implement the procurement process granting competitive solutions; Manage procurement of material until the material is delivered to site (incl. expediting, logistic and quality) and subcontracting till the signature of the subcontract.
• Prepare Procurement Packages for COMPANY APPROVAL.

Issue Purchase Orders and Subcontracts gathering authorization CONTRACTOR’s Proxy of Authorities.

in accordance with

•

Project Engineering Manager

• Verification of COMPANY data completeness and definition of Technical Queries.
• Design activities in accordance with contractual requirements, including Preliminary Design

Verification, Design REVIEWs and Studies.

• Development of engineering documentation for Detail engineering and material / packaged equipment procurement (calculation notes, IFC & As Built drawings, procedures, reports, MR, data sheets, project specifications).

• Coordination of Engineering Internal Interfaces between the relevant facilities within the PROJECT,

in liaison with relevant Project Managers.

• Coordination of Engineering external interfaces with other parties / facilities and interaction with

COMPANY.

• Consolidation of internal and external interface matrix.

• Quality Control Manager - Construction:

• Management and Coordination of relevant Fabrication Yard activities.
• Direct Management of relevant dedicated Yard for on-site implementation of engineered solutions.
• Sub-Contractors management on site.
• Consult with onsite COMPANY Rep.
• Report to Project Quality Manager

• Quality Control Manager Procurement

• Plan and implement the quality activities in compliance with Project Procurement Quality Plan.
• Plan and supervise the Project Quality activities within the project.
• Ensure the quality of all material requisitions prior to submittal for COMPANY REVIEW.
• Ensure VENDOR/ SUPPLIER ITP & Quality Control Procedures in compliance with requirement

specified in related APPROVED Purchase Order.

• Ensure and coordinate Inspection Assignment Package for COMPANY APPROVAL, Pre-Inspection

Meeting and Contractor or COMPANY APPROVED third party inspectors.

• Report to Project Quality Manager project information and data in line with project requirement.
• Consult with counterpart from COMPANY onsite.

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• Evaluation of suppliers and qualification of new suppliers as needed.
• Consult with COMPANY counterpart to ensure the TPI inspector from COMPANY and Contractor

are different and only approved TPI’s are utilized.

• Quality Lead - Procurement - Fabrication Yard

• Ensure full compliance with Project Procurement Quality Plan.
• Ensure VENDOR/ SUPPLIER ITP & Quality Control Procedures in compliance with requirement specified in related APPROVED Purchase Order, Track and resolve all NCR’s before dispatch.
• Ensure receipt of COMPANY/ CONTRACTOR inspected materials from VENDOR/ SUPPLIERs in

the Yard.

• Responsible for receiving inspection in compliance with COMPANY Quality Requirements
• Report to Quality Control Manager: Procurement

Liaise with counterpart from COMPANY onsite and ensure COMPANY is notified of upcoming inspection interventions.

• Senior QC Inspector

• Execute the field inspection, surveillance, and Quality Control activities on site in accordance with all

relevant Quality Control Plans/Inspection Test Plans

• Prepare and collect the relevant documented information in accordance with all relevant Quality

Control Plans/Inspection Test Plans

• Reporting to the QC Manager
• Consult with counterpart from COMPANY onsite.
• Reporting to the Project Quality Control Manager.

Implement the inspection, control, and test notification process (RFI).

• Welding & Material Quality Lead

• Responsible for the implementation of CONTRACTOR’s and COMPANY’s Quality requirements for

all material and welding activities

• Plan and confirm welding procedures required on the project based on material and design

configurations.

• Ensure all Welding procedures and inspection procedures are qualified in accordance with

international standards and Company specifications.

• Ensure all weld procedures from suppliers and sub-contractors are reviewed and are in compliance

to project specifications.

• Verify that materials for fabrication and procurement comply with Company specifications

Lead audits and assessments of welding and inspection activities, ensure lessons learned related to welding and inspection are implemented during all phases of the WORK provide training to inspection teams to ensure compliance to requirements.

• Report to Project Quality Manager
• Consult with counterpart from COMPANY onsite.

• VENDOR Inspectors

• Conduct inspections at Manufacturers/VENDORs Premises with respect to APPROVED ITP.
• Assist Procurement QA/QC Coordinator

for planned and scheduled

inspections at

VENDORs/manufacturers locations.

• Coordinate with COMPANY’s Inspector for conductance of inspections with planed inspection

schedule.

• Reporting Quality Control Manager: Procurement.

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6.4.5 Processes Interface

Project Quality Team shall conduct its own Kick-off meetings (KOM), Contract Assessment and Pre- inspection meetings (PIM) with COMPANY representatives at each WORKSITE and SITE, and for each Project Phase and shall issue formal MOM and an Actions List from each event to COMPANY.

Typical minimum interfaces for CONTRACTOR include conduct Kick-off meetings (KOM) and Contract Assessment/Pre-inspection meetings (PIM) with SUBCONTRACTORs and SUPPLIERs. CONTRACTOR shall issue meeting agenda and provide formal notification for COMPANY attendance.

Typical interfaces between CONTRACTOR and COMPANY quality activities include, but are not limited to:

Contractor project activity

Supplemental activity requirements

Company interface actions

1. Prepare and submit a project specific quality plan within 30 days of contract award (PQP)

Refer to exhibit 5, appendix U (example EPC project quality plan).

APPROVE plan. Conduct periodic quality audits to verify compliance.

2. Update / prepare and submit project specific control procedures and a listing of procedures that will be used by contractor to control the work.

Refer to quality specifications and project in requirements to Vol 1, instructions. Refer Appendix contractor’s deliverables.

the

H1

3. Perform pre-qualification / pre-bid assessments SUB CONTRACTORs.

of

Per APPROVED prequalification procedures agreement and requirements.

4. REVIEW and APPROVE design output.

REVIEW

company.

Technical and APPROVAL matrix for contractor Quality and of representative for technical quality compliance requirements, of inspection and test requirements.

REVIEW specifications with REVIEW

5. Conduct design REVIEW and verification (Plot Plan, HAZOP, HAZID, SIL, 3d Model, P&ID etc.).

6. Control design changes.

types of REVIEWs Specific required, including HAZOPs, milestone REVIEWs etc. Prepare design verification plan.

Contractor’s control procedures to company with interface specification and requirements.

7. Assess and SUBCONTRACTORs / VENDORs.

/ or prequalify

Refer to exhibit 6 (description of work) appendix h

8. Prepare RFQ packages for procurement of materials, equipment, and construction.

To include REVIEW by quality professional for compliance with quality requirements.

SUBCONTRACTOR/ 9) Assess VENDOR bid prepare summaries, and select qualified CONTRACTORs.

bids,

To include REVIEW by quality professional for compliance with quality requirements.

APPROVE control procedures prior to start of work. Conduct periodic quality assessments to verify compliance.

Assess procedure implementation and compliance with agreement requirements. APPROVE sub- contractor prior to sub-contract issuance.

REVIEW formats. document Identify APPROVAL requirements. REVIEW technical specifications, inspection, and test requirements.

REVIEW design REVIEW plan / schedule. Participate in REVIEWs and verifications.

APPROVE procedure and individual changes.

design

change

APPROVE pre bid assessments. APPROVE Contractors’ list and prospective SUBCONTRACTORs. Assess compliance with procedure and contract requirements.

REVIEW RFQ package for technical and quality compliance.

technical and

REVIEW bid for quality compliance. Endorse SUBCONTRACTOR/VENDOR and SUB-VENDOR selection.

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10. Prepare pos and subcontracts.

11. Establish change control for pos and subcontracts.

To include REVIEW by quality professional for compliance with quality requirements.

Contractor’s control procedures to interface with company. To include REVIEW by quality professional for compliance quality requirements.

with

REVIEW POs/contracts, technical and quality elements.

verify

Audit change control practices.

and

12. REVIEW APPROVE SUBCONTRACTOR and VENDOR quality plans, inspection and test plans, and control procedures.

Refer to project instructions exhibit 5 (project instructions). Refer to quality management system requirements and Exhibit 5, appendix U (EPC project quality plan – typical contents).

quality

plans, APPROVE all inspection and test plans, and control procedures prior to start of work. Conduct periodic quality assessments & surveillance to verify compliance.

13. Prepare and submit project audit plans and schedule.

and

14. REVIEW contractor’s SUBCONTRACTORs VENDOR’s pre-bid.

APPROVE proposed and

Audit schedule to include design selected SUBCONTRACTORs, construction VENDORs, SUBCONTRACTOR(s) and contractor activities.

Per procedure.

APPROVED

project

APPROVE schedule needed.

audit

plans

and Participate

and as

list. VENDORs APPROVE bid proposed to supply equipment for facilities must be selected from APPROVED VENDOR list

15. REVIEW RFQ/ITB packages prior to issue.

and

APPROVE

and

APPROVE 16) REVIEW SUBCONTRACTOR/VENDOR bid summary and assist in selection of qualified CONTRACTORs.

To include REVIEW by quality professional for compliance with quality requirements.

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW RFQ/ITB package technical and quality compliance.

for

REVIEW bids for technical and quality Endorse compliance. SUBCONTRACTOR/VENDOR selection.

APPROVE 17) REVIEW Purchase Orders and contracts prior to issue.

and

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW technical and quality elements.

pos/contracts,

verify

18. Monitor changes to POs/ RFQs

To include REVIEW by quality professional for compliance with quality requirements.

REVIEW changes for technical and quality compliance.

19. Conduct pre-inspection meetings with SUBCONTRACTOR and VENDORs and participate in pre- inspection meetings conducted by contractor.

20. Conduct compliance assessment prior manufacturing

VENDOR

PO to

Agenda to be prepared in advance and copy provided to company. Specification quality for management sub-contractors and VENDORs to be followed.

requirements

for

for

quality Specification for management sub-contractors and VENDORs to be followed.

requirements

21. Define and conduct VENDOR inspection activities.

Refer to quality specifications in project instructions.

Attend pre-inspection meetings. REVIEW PIM agenda and provide additional company agenda items if any

Participate critical equipment/materials

in assessments

for

execution inspection REVIEW contractor’s Verify procedure. inspection activities. Add company intervention points onto all ITPs.

22. Prepare contractor’s inspection procedures.

Refer to specification for quality requirements for contractors.

APPROVE contractor procedures.

inspection

23. REVIEW VENDOR quality record book

and

APPROVE

to

specification

Refer for generation of VENDOR quality record books

Monitor alignment of VENDOR quality record books to company requirements.

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24. Oversee field engineering.

procurement, field 25) Oversee including selection, VENDOR APPROVAL, oversight planning and execution.

site

storage

26. Verify and preservation of equipment and materials during construction and pre-mechanical completion activities.

27. Oversee and verify PMI is by conducted where contract and traceability maintained.

required

28. Provide procedure, control/verification, critical components are weighed.

weight conduct

control weight ensure

and

REVIEW and requests/technical requests for information (RFIs).

APPROVE queries,

List of VENDORs and intended scope of work. Field procurement, including VENDOR selection shall be done as described in exhibit 5 section 4.3

Manufacturer’s recommendation for site storage and preservation. Requirements & activities shall be per the APPROVED preservation procedure (in line with company specification.

PMI and traceability requirements via technical specification.

REVIEW technical queries, RFIs for technical and quality compliance.

REVIEW VENDOR selection. Monitor critical VENDOR activities and implementation of inspection execution procedure.

implementation. Conduct Monitor periodic and/or assessments surveillance to verify compliance. APPROVE preservation procedure for quality requirements.

REVIEW results/monitor activity. Conduct periodic assessments and/or verify compliance. APPROVE contractor, SUBCONTRACTOR, & VENDOR. PMI procedures.

surveillance

to

Criteria frequency technical specifications.

for components and via

for weighing

REVIEW and verify procedure. REVIEW results.

29. Oversee witness qualification of welding procedures, welders.

and

Qualification technical specifications.

requirements

via

30. Monitor welder performance evaluation.

Per procedure.

APPROVED

control

Monitor welder procedure qualification programs. APPROVE welding procedures.

and welding

require records and REVIEW retraining/ requalification to correct adverse trends.

31. Monitor dimensional activities elements completed items).

control for critical and primary and

(subassemblies

32. Witness production welding, inspection, and testing.

33. Conduct audits

34. Control non-conforming product and and processes, REVIEW APPROVE contractor, SUBCONTRACTOR and VENDOR NCR dispositions.

35. Provide quality status monthly.

36. Monitor and verify control of special processes, PWHT (local & furnace), NDE etc.

37. Provide as-built drawings and job data book.

Criteria for acceptance, timing, and technical via frequency specifications.

REVIEW reports.

dimensional

control

code

and via

company Ruling requirements technical specifications. Include verification of production welding parameters in line with company specifications.

Monitor welding performance REVIEW inspection/testing results.

Per APPROVED audit procedure, and APPROVED quality audit schedule.

Per approved NCR and CAR procedures.

APPROVE quality audit procedure schedule. Monitor/ and audit Participate audit schedule and performance, REVIEW audit results and required follow-

APPROVE NCR dispositions where “repair” or “use-as-is” is proposed. Monitor disposition and resolution of “corrective actions (CARs).”

Per project APPROVED quality metrics procedure.

Applicable code and specifications.

technical

APPROVE NCR, CAR, and quality metrics procedures. APPROVE metrics report.

REVIEW and Approve process procedures, monitor/oversee implementation.

Technical specifications.

REVIEW

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38. Prepare specification deviation request (SDR) procedure

Refer to Exhibit 5 instructions) appendix T.

(project

APPROVE procedure. SDR REVIEW all SDRs and APPROVE those that are acceptable and verify closure per defined conditions.

6.5 Contract Review

In the initial phase of the PROJECT, the contractual documents are REVIEWED by the PROJECT positions within their specific competence.

• The contractual documents include documents related to management, economic and financial aspects such as: contract, scope of WORK, prices, penalties, financing, insurance, legal aspects, obligations of the CONTRACTOR and COMPANY, commercial agreements such as joint ventures, pre-bidding agreements, letters of intent, licensing agreements, confidentiality agreements, etc. technical documents: drawings and specifications, block diagrams, other diagrams, technical data, environmental information, programs, codes, standards, regulatory laws, and regulations.

• The above REVIEW allows the development of the “Coordination Procedure with COMPANY” and

of the “Basic Engineering Design Data” respectively.

Change can occur in several ways and recognizing and reporting the change, is the duty of all PROJECT personnel. Change can occur for:

• Scope or procedure changes introduced by the COMPANY.
• Any alterations requested, and unavoidable, by SUPPLIERs and/or Construction CONTRACTORs.
• Changes introduced by the PROJECT for strategic, schedule or cost saving reasons.
• Change due to rework or inefficiencies that require additional effort from the base plan to overcome.
• Change to the base estimate due to an omission or estimating inaccuracy causing a cost.
• Change to COMPANY operating system parameters, procedures, or design.
• Details for the change management are described in the “Change Order Procedure.”

6.6 Project Risk Assessment & Management

CONTRACTOR has established a systematic approach to risk to operate actively rather than reactively to prevent or reduce undesired effects and to promote continual improvement. Risk Management shall be accomplished based on the Project Risk Management Procedure. Risk Register shall give details of discipline wise identified risks, their risk score calculated based on probability of realization and impact in case of realization, classification, mitigating action plan for critical and high risks, responsible person / department for mitigating action, schedule, risk score after mitigating action. Risk register shall be REVIEWED periodically along with COMPANY.

Macro-actions taken by CONTRACTOR to address risks and opportunities, can be considered as:

addressing risk from different points of view. assigning responsibilities to personnel through risk ownership for the implementation of risk- treatment actions. assessing risks and opportunities. employing tools for assessing risks, evaluating inherent risks, and defining risk-treatment actions in operational activities.

• managing lessons learned.

6.7 Project Quality Audits:

CONTRACTOR has established an Audit Program/schedule that effectively monitors the performance of the CONTRACTOR activity to ensure compliance with Contract specifications, Quality Plan and associated procedures, and Technical Specifications.

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Audits shall be conducted on internal CONTRACTOR activities and on SUBCONTRACTORS and key VENDORS and shall ensure that all project activities are audited at appropriate intervals.

CONTRACTOR PQM has developed a Project Audits Procedure that describes how the audit program shall be implemented, and shall include the following:

Audits are planned and conducted in compliance with ISO 19011 with the below objectives verify that the activities are performed in accordance with the provisions of the Project Quality System.

assess the adequacy and effectiveness of the Quality Management System for the Project in relation to established Quality objectives, particularly considering the congruence and integration among activities. identify deficiencies, determine the causes of such and, where necessary, recommend appropriate corrective action. verify the application and effectiveness of the adopted corrective action. provide the PD and the responsible of Quality department with the elements of knowledge and of assessment of the state of the system of management for the quality of the PROJECT and of its implementation.

• PQM has the necessary authority for agreeing and implementing audit program including assignment

of audit team, and issuing of audit reports

• Audits will be led by an assigned competent Lead Auditor that shall be independent of the activity

being audited

• An Audit notification shall be prepared for each audit which identifies the audit scope, date, location, and audit team. Each Audit notification shall be submitted to COMPANY via EDMS at least 14 Working days before the audit date.

• COMPANY may participate in these audits as an auditor or as an active observer.

• Any procedural non-conformity or deficiency identified during the audit shall be agreed and presented

during the audit

• CONTRACTOR shall prepare an Audit Report including details of any observations, findings, or deficiencies within 5 Working days. This shall identify positive findings as well as findings that requires corrective actions, which shall be addressed and closed in a timely manner.

• CONTRACTOR will submit Audit Reports to COMPANY via EDMS within 5 Days of Audit Completion; follow up audit’s reports, proposed corrective actions to close the audit findings, concerns and observations

• Audit performance shall be monitored and reported as a Key Performance Indicator (KPI)

Based on project audits results, PD/PM ensures that effective corrective actions are implemented. Audit findings are discussed with Project Management in Project Management REVIEW Meetings.

6.8 Control of Non-Conforming Process

CONTRACTOR has established a Project Non-Conformities Management Procedure, COMP2-SPM-QM- PRC-00002.

All product and/or system non-conformance shall be captured on a CONTRACTOR NCR Report. CONTRACTOR shall ensure all Corrective/Preventive Actions are properly implemented.

NCR Status will be managed via CONTRACTOR specific KPI’s and will be reported in CONTRACTOR Monthly Report and will be presented in the Monthly Management Meeting to COMPANY including any overdue NCR’s, necessary corrective, and preventive actions and any critical NCR will be shared to COMPANY promptly.

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Supporting evidence that prescribes and justifies completion of all Corrective/Preventive Actions shall accompany the completed NCR submission.

Any non-conformance(s) reported and documented by COMP2 PROJECT personnel that cannot be brought to compliance with the project requirements and/or is proposed for a disposition of use-as- is/Accept as it shall be submitted formally to COMPANY though the concession request template for COMPANY APPROVAL.

6.9 Quality and Flawless Training Program

Contractor PMT supported by the Quality Team shall develop and implement a ‘Quality & Flawless Program’ to supplement the formal Quality Control arrangements described in relevant Inspection & Test Plans to ensure that ongoing construction activities to do not impact on completed Works or adjacent activity and avoids any disruption during commissioning and startup. The program is applicable to the major Construction SUBCONTRACTORS, and it shall include as a minimum:

• Cleanliness

• Pipe spools to have end caps to prevent ingress of dirt & debris.
• Prevent grinding debris contaminating nearby equipment.
• Remove all construction debris and prevent buildup.

• Flange Management

• Ensure flange faces are protected from damage before closing.
• Gasket installation program to ensure correct and undamaged gaskets installed and flanges labelled

accordingly

• Flange torque management system to ensure traceability of torqueing with labelling tag system

• Assembled flanges to be identified and controlled.

• CONTRACTOR shall utilize a third-party specialty services SUBCONTRACTOR for flange management activities. Selection of this flange management SUBCONTRACTOR shall be APPROVED by COMPANY prior to mobilization.

• Flange assembly and bolt-up inspection test records (ITR) shall be mapped to the CONTRACTOR’s System Completion Database and tracked as ongoing deliverables. Records shall be provided for flange Repairs and flange Bolt-up connections including manual tightening.

• Protection & Preservation

• Cover all electrical & instrumentation equipment to prevent ingress of water or debris.
• Provide physical protection to sensitive equipment such as gauges, transmitters etc. – particularly

during scaffolding operations.

• Check on pressure gauges of items preserved under Nitrogen blanket or Dry Air to ensure minimum

pressure maintained.

CONTRACTOR shall implement a ‘Quality & Flawless’ training program for all Construction Supervision team (not limited to QC Team) who shall have responsibility for implementing program including conducting regular surveillance patrols and taking immediate action to rectify observed deficiencies.

6.10 Quality Walks

CONTRACTOR Quality Personnel and Site Management shall conduct and participate in a Site quality walk at each fabrication or construction location on a weekly basis and shall provide to COMPANY a report on identified gaps, recommendations, good practices, findings, and plan to correct and/or prevent any noticed deficiencies, hazards, etc. CONTRACTOR shall submit a Quality walk schedule to COMPANY for APPROVAL prior to commencement of fabrication, installation, and Construction activities.

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6.11 Quality Alert

CONTRACTOR has established “Quality Alert System” to identify potential non-conformances beforehand and brought to the notice of the PMT for resolution.

CONTRACTOR has in place a “Quality Alerts” system ALERTS that could be generated by the System are including, but not limiting, to the following list:

• Audit Results
• REVIEW of Head Office
• Nonconformity Register
• PD/PM internal Indication
• PMT Member request on the same matter
• Quality alerts coming from other CONTRACTOR PROJECTs, similar in terms of Technical Scope of

WORK

• Communication coming from COMPANY
• Major NC in similar WORK area in another component of the PROJECT

Once the “Quality Alerts” is identified and defined, it shall be formalized in the dedicated form, and recorded in the dedicated register.

Further steps are to:

• Communicate the “Quality Alert” to all the PROJECT team.
• Explain it during the planned PROJECT QUALITY SURVEILLANCE
• Keep in consideration by the PROJECT team the quality alert and if necessary, proceed with the

sections, toolbox talks.

implementation of the preventive action

• Quality Alert management by PROJECT team shall be evaluated during internal audit session and general trend of this tool will be analyzed in dedicated internal meetings within PROJECT Quality Management REVIEW.

6.12 Quality Induction & Training

PQM REVIEWS competence of Quality resources based on the CONTRACTOR internal procedures. After successful REVIEW, candidate may be interviewed in person or through Skype/Teams.

Once candidature is accepted and HR formalities are over, the candidate becomes part of PQT.

The records attesting the competence, experience and skillfulness of the resources are validated by the CONTRACTOR’s Functional Department from which the resources are obtained and filed by the CONTRACTOR’s Human Resources Department.

Familiarization with the PQP is held for all the personnel involved in the PROJECT, who shall fully comply with the requirements and procedures indicated herein.

6.12.1

Project Quality Induction in Home Office

PQM along with HR Department shall implement an ongoing induction training program for home office to introduce and familiarize all PROJECT personnel with the PROJECT quality requirements for their area of responsibility.

Project Quality Induction shall include

• Brief Overview of PROJECT scope of WORK, COMPANY etc.
• Project Quality Policy

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• Project Quality Organization
• Brief Overview of Project Quality Requirements, Acceptance Criteria and Acceptance protocols and

documentation requirements

• Major SUBCONTRACTORs

Records of induction and training shall be kept at the quality department of the work location.

6.12.2

Training & Project Induction in Worksite(S) & Site Office

PQM along with Fabrication Yard Management (for yards) or Offshore Vessel Management (for offshore marine spread) shall implement an ongoing induction training program for Quality resources joining respective Quality teams in order that these resources are introduced and familiarized with the PROJECT quality requirements in their area of responsibility. The quality induction shall be essential part of quality resource induction into PQT.

Area Quality Lead and PQM shall collectively decide the training requirement, inhouse or external training, trainer, training delivery and shall conduct such training.

Records of induction and training shall be kept at the quality department of the work location.

6.13 Provision of Resources

CONTRACTOR shall, to the satisfaction of COMPANY, demonstrate commitment to work deliverable Quality through provision of an overall WORK management organizational structure tailored to efficient and effective delivery of WORK. CONTRACTOR Quality Management organization shall be independent of organizations, groups, teams, and other functional entities whose activities are to be verified and inspected.

CONTRACTOR and its SUBCONTRACTORs and VENDORs shall provide qualified quality assurance and inspection personnel with adequate resources to effectively implement COMPANY quality requirements at all WORKSITES and SITE.

CONTRACTOR’s personnel shall not be assigned a dual role and responsibility of involving construction progress reporting or inspection and expediting of equipment and material.

6.14 Control of Testing, Measuring & Monitoring Equipment for Product Conformity

PQM and Site Quality Managers/Coordinators collectively shall be responsible for control of testing and control of Measuring and Monitoring Equipment used for inspection and testing at that work location. Such inspection and tests include those required in ITPs and QCPs like dimensional test, functional tests, leak tests, operational tests, proof tests and pressure tests.

Test Procedures shall be established prior to the test with acceptance criteria, sequential steps of testing, monitoring, and measuring test equipment details, calibration status, test operative competence requirements, test preparation criteria, acceptance specifications and standards, Job Safety Analysis, Certification Authority, and its acceptance protocols.

CONTRACTOR at its work locations, including Sub-CONTRACTORs, VENDORs work locations shall maintain a list of Measuring and Monitoring tools and equipment. The list shall include all Measuring & Monitoring tools and equipment that may impact conformity of the process output with the acceptance criteria. The details of such list shall include:

• Description of the test tool or equipment
• Unique Number (Such number shall be established permanently on the test tool or equipment)

Latest Calibration date / Calibration Document Number

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• Next Calibration Date
• Calibration Procedure

Such list of monitoring and measuring resources shall be audited in periodic PROJECT Quality assessment/verifications/audits.

6.15 Documents & Data Control

6.15.1

General

The Project Quality Management System is composed by the listed documents as per COMPANY requirements.

Project Overall Plans (PEP and PQP) are developed to cover all the primary and support processes of the Project; for each process, general procedures, specifications and/or requirements are developed.

Each document is assigned to be prepared, verified, and APPROVED by Project Functions, with Department Managers supporting the verification of the most important ones.

Other documents, according to Project scope, the documentation includes:

• Contractual documents.

• Project management Plans and Procedures

• Technical and construction documents, specifications, and drawings.

• Correspondence between CONTRACTOR and other Parties (COMPANY, Partners, SUPPLIERs, Construction CONTRACTORs, Third Parties, Authorities), including reports and minutes of meetings;

• Quality records

6.15.2

Document & Data Approval & Issue

The method for preparing identifying and controlling Project documents, including those produced by external parties shall follow the project Document Management Procedure. Any changes to documents are formalized according to these procedures.

It is intended that this will be the main reference for the control of documentation produced by Contractor, its subcontractors and suppliers and documents received from external parties such as COMPANY.

Document Control Management Procedure covers:

• Document Management Organization

• Preparation and revision

Issuing and approval

• Distribution and filing

The EDMS that is used by the CONTRACTOR is Documentum based PAGE. This is the CONTRACTOR standard Document Management System developed for the tracking, managing, and reporting of Documents for the project. PAGE is designed for multi office location usage to ensure the project has just one document control system, commonality of Document processing, tracking, and reporting. All CONTRACTOR Document Controllers shall receive full training for the use of PAGE and have full read and write access.

Records required to provide evidence of conformity to requirements and of the effective operation of the quality management system are retained for a minimum of five year. Changes to documents are REVIEWED and APPROVED by the same functions that performed the original REVIEW. Distribution,

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filing, and storage are conducted in accordance with the project Document Management Procedure. All obsolete documents are marked “superseded” or destroyed.

6.15.2.1 Control of Documented Information

The valid revision and distribution of Project documents are controlled through a dedicated Electronic Data Management System (EDMS) at PROJECT level. The software covers the measures for identification, controlled distribution of the documents and drawings, their APPROVAL, and revisions in compliance with the identification and verification principles of the quality system. Distribution, filing, and storage are conducted in accordance with the project Document Management Procedure. The software application manages both the issue and revision of all PROJECT documents and the storage of electronic files; this eliminates the possibility of using obsolete documents or revisions.

The EDMS has inbuilt functionalities which assist to record progress of each contractual deliverable, calculates its progress over project control metrics and supplies feed to Projects Control Department which can be accessed on real time basis for calculation of project documents progress. In addition, Project Document Controller maintains sophisticated and comprehensive database of inward and outward flow of letters, correspondence, design documents, drawings etc. which can be accessed in real time by PMT members with authorized access permission to get information about any document, its status during execution of the project.

On site, technical documents shall be managed according to a specific PROJECT procedure, Site Document management and control procedure” and “Management of “as built” documents.” Project documents are prepared, checked, APPROVED, and managed in compliance with specific criteria and methods defined in accordance with the applicable procedures.

Controlled document management processes ensure:

traceability.

correctness of the content of the document.

document development and revision status.

availability of current documentation to all personnel.

filing and storage.

The development and revision status of Project documents are recorded in the Project EDMS that can be accessed by all personnel involved.

Specific records are taken and kept in a controlled way to provide objective evidence of compliance with requirements and to guarantee the implementation of the management system. Those records are organized according to specific procedure that define responsibilities and control methods needed for their identification, filing, protection, retrieval, storage, and elimination. Records shall be legible, easily identifiable, and retrievable.

6.15.3

Manufacturers Data Books

CONTRACTOR shall REVIEW the FINAL DOCUMENTATION provided by its SUBCONTRACTORs, and VENDORs to ensure that the Project requirements have been met prior to issuing to COMPANY for REVIEW and APPROVAL.

CONTRACTOR, all VENDORs, and all SUBCONTRACTORs shall prepare, compile, and handover Manufacturing Record Books and VENDOR Mechanical Catalogues (VMC) & Fabrication Record Books (FRB) and any other compiled or collated material to COMPANY in accordance with the Project requirements.

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6.15.4

Documentation Handover Process

CONTRACTOR shall REVIEW and APPROVE all DOCUMENTATION and DATA including “AS-BUILT” DRAWINGS and FINAL DOCUMENTATION provided by CONTRACTOR, its SUBCONTRACTORs, and VENDORs to ensure that the Project requirements have been met prior to issuing to COMPANY for REVIEW and APPROVAL.

CONTRACTOR FINAL DOCUMENTATION including database shall comply with COMPANY requirement as applicable and detailed in the following documents:

• PRJ-PJL-PRC-006: Project Information Handover Procedure.

CONTRACTOR shall be responsible for providing electronic documentation as per the AGREEMENT in a manner that enables integration by COMPANY into COMPANY electronic document and data management systems.

CONTRACTOR shall supply evidence that all electronic files are aligned with corresponding document revision, have been virus and quality checked and meet COMPANY requirements prior to handover to COMPANY.

CONTRACTOR shall supply updated registers and indices that detail all documentation to be retained by CONTRACTOR and its SUBCONTRACTORs and / or VENDORs/ SUPPLIERs.

7

DESIGN & ENGINEERING

7.1 General

Appropriate measures are established to ensure that design is executed, REVIEWED, verified, and checked in a controlled manner, in accordance with the established plans and requirements and taking into due account safety, environmental protection and reliability issues.

In addition to the Project Engineering Management Plan, appropriate project procedures define, for each activity, the various work process, the information required, the documents issued, the checking and APPROVAL criteria, specifying the responsibilities, both for single discipline and multidisciplinary activities.

The Project Quality Team led by the PQM shall be responsible for Engineering phase Quality Assurance activities in the form of Quality Audits and Quality Surveillance Program in accordance with the APPROVED Audit Schedule and Quality Surveillance Program.

7.1.1 Design & Development Process

The Project Engineering Management Plan contains, as a minimum, the description of how inter-discipline coordination between and among the various technical disciplines is assured, including a plan for managing internal and external interfaces; a description of design REVIEW and interdisciplinary checking process is also included, as well as the basic Design REVIEW;

• Design verification.

• Design validation.

• Control of design changes; as detailed in the following sections.

7.2 Design Plan

The Design Plan shall be made based on contractual requirements. The Project Engineering Management Plan gathers all the general information needed as a basis for PROJECT engineering planning and design control activities.

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7.3 Organizational & Technical Interfaces

Project Engineering Work requires coordination work between

different engineering disciplines like mechanical, structural, pipeline, electrical, instrumentation, telecom etc.

• Engineering departments of COMPANY, CONTRACTOR, Engineering SUBCONTRACTOR and

VENDORs/SUBCONTRACTORs.

Project Technical Manager shall be responsible for defining protocols with regards to:

• Selection criteria for design documents requiring inter-disciplinary checks

• Document Matrix indicating requirements for inter-disciplinary checks

• COMPANY, VENDOR and Sub CONTRACTORs gateway for submission of documents

• Protocols for grading of documents REVIEWED, making comments on the documents

• Gateway for returning documents to VENDOR and Sub CONTRACTORs, receiving from COMPANY

• Protocols for final APPROVAL of drawings

• Protocols for preparation of in-process construction and post commissioning as built drawings

Project Engineering work is accomplished with specialized and APPROVED software’s.

7.4 Design Input

Based on contractual requirements, the “Basic Engineering Design Data (BEDD)” is prepared: this document gathers all the general technical data and/or contractual information needed as a basis for PROJECT engineering.

7.5 Design Output

The WORK processes for engineering and development are described in the Project Engineering Management Plan.

Design outputs include drawings, specifications, operational and maintenance manuals, Process Flow Diagrams (PFD), Piping & Instrument Diagrams (P&ID), data sheets, Bill of Quantities (BOQ), etc. addressed to the specific use of procuring materials, goods, and equipment and/or for performing fabrication/construction/erection/installation activities.

7.6 Design Review

The design REVIEWs aim to identify and solve critical aspects of the PROJECT through an analysis of the solutions adopted, the optimization measures taken and the feasibility within the established times and costs. These REVIEWs are conducted in accordance with applicable quality management procedures, considering PROJECT objectives, requirements and needs.

The REVIEW meetings are called, co-coordinated and recorded by the Technical Manager and/or the PM and are attended by all CONTRACTOR’s personnel/positions concerned, as described in the Project Engineering Management Plan.

In accordance with the design planning, at least the following interdisciplinary REVIEWs are performed:

• REVIEW of Piping & Instruments Diagram (P&ID REVIEW)

• REVIEW of Plot Plans and 3D Model

• REVIEW of Electrical Single-Line diagrams

• REVIEW of underground facilities

• REVIEW of hazards (HAZID, HAZOP)

• Constructability

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7.7 Design Verification

The verification and APPROVAL of PROJECT documents are conducted according to the methods and responsibilities defined in the Project Engineering Management Plan. The criteria, verification methods and documented evidence are defined in specific CONTRACTOR’s standards for each specialist department.

The PROJECT outputs are APPROVED by the concerned PROJECT personnel only if the verification result satisfy the specified applicable requirements.

7.8 Design Validation

The final design validation is conducted, whenever applicable, after the successful completion of test runs of the plant or parts of it. The above validation is formalized by the PROJECT Engineering Manager in the “Close out Engineering Report.” This report states the results achieved, the problems encountered and the adopted solutions, and is distributed to the CONTRACTOR’s Department Managers and COMPANY (if applicable).

7.9 Design Changes

The identification and indication of the need for a design change, which does not deviate from PROJECT specification requirements, can be made by anyone involved in the PROJECT.

The design changes can be originated by the following causes:

• Requests from the COMPANY.

• Variations in design solutions.

• Work processes or operating methods different from the established program.

• Changes or delays in the activities of a department that could impact the activities of other

departments

• Specification Deviation Requests processing at the design change.

Activities regarding the change cannot start before the PD/PM’s/Engineering Management Team APPROVAL, which is granted after an inter-disciplinary REVIEW addressing all aspects and consequences of change. On completion of the design change the “Design change register” is updated under the responsibility of the Technical Manager. The specific forms to be used and the WORK process to be followed are described in the PROJECT specific procedure Design Change Management.

8

PROCUREMENT

8.1 General

The PROJECT Procurement plan defines PROJECT procurement control organization, with responsibilities and duties, the methods to be followed in the performance of the activities to avoid impact on PROJECT schedule and to ensure the achievement of PROJECT targets, the methods, tools, and data flow to be used for measuring progress and reporting of the procurement activities, and sets-up the applicable General Terms and Conditions and/or any special conditions. APPROVED Project VENDOR List shall be followed.

8.2 Outsourced Processes

The two main Project Quality Specifications “Quality requirements for SUPPLIERs” and the “Quality requirements SUBCONTRACTORs” have been issued and shall be included by the PMT in the bidding/purchasing documentation.

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These documents define the minimum level of quality requirements to be implemented by Construction VENDORs/SUBCONTRACTORs to ensure full compliance with the requirements of the Purchase Order/Contract relevant to quality, regular monitoring and coordination of testing and inspections during construction/fabrication activities.

8.3 Qualification & Evaluation of Vendors (Critical Vendors)

The VENDOR qualification is coordinated by the PROJECT Procurement Department, supported by other competent departments. The Department also ensures the CONTRACTOR’s Corporate information system and the filing of records in specific archives.

the recording of qualification

in

The objective is to evaluate and qualify the capability of SUPPLIERs to satisfy CONTRACTOR’s requirements, through the acquisition and management of information on the VENDORs themselves, according to objective and documented criteria. Project Procurement Manager carries overall responsibility of Procurement function and its deliverables – compliance with specifications and schedule.

The equipment, materials, services, and construction activities to be purchased are grouped into product classes, according to Criticality Ratings and Inspection Levels assigned by COMPANY and the list of VENDORs qualified by CONTRACTOR is regularly updated.

Criticality Rating Process/Matrix/Reports

Procurement QA/QC Coordinator shall be responsible for the performance of required source inspection to verify the quality of product purchased by CONTRACTOR, and shall document its procedures, processes, and controls in a Source Inspection Procedure. CONTRACTOR’s process for the development of inspection levels shall be based on criticality ratings, with appropriate adjustments for specific procurement risks, and include provisions for REVIEW and APPROVAL by CONTRACTOR’s and COMPANY’s Quality, Engineering, and Project Management personnel.

The type and amount of source inspection required are defined by the inspection level that is assigned to each product.

Inspection Levels:

Inspection Level

Level 1+

Generic Definition

Resident Inspection: Full Stage Inspection as below plus full-time resident Inspector(s)

Level 1

Level 2

Level 3

Full Stage Inspection: Minimum 2 inspection visits per week and all selected ITP points

Systematic Stage Inspection: Minimum 1 inspection visit per week and all selected ITP Points

Selected Stage Inspection: Selected ITP points, Factory Acceptance Test & Final Inspection

Level 4

Final Inspection only

Not Inspected

No Source Inspection: Document REVIEW Only

Typical relation to Purchasing Criticality Rating

I

I or II

II

III

IV

IV

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8.3.1 Critical Vendors Monitoring & Control

CONTRACTOR shall be responsible for the performance of required source inspection to verify the quality of product purchased by CONTRACTOR, and shall document its procedures, processes, and controls in a Source Inspection Procedure.

CONTRACTOR Procurement QC Manager will play a key interface role with COMPANY and VENDOR QA/QC Representatives in implementing the Procurement Quality Surveillance Program at Worldwide VENDOR Locations.

CONTRACTOR has in place an inspection database updated and communicate updates to COMPANY on a weekly basis.

Important steps of VENDOR monitoring and control are:

• Procurement Kickoff Meeting KOM

• Pre-Production Procurement Contract Meeting clarifying person(s) responsible for the execution of

contract, Engineering, manufacturing, QA/QC, documentation from VENDOR side,

• Confirmation of PO requirements, technical and QA/QC requirements,

details of communication channel from parties involved in Inspection and testing,

• Schedule confirmation,

• VENDOR reporting requirements,

design documents submission protocols and schedule, number of prints and formats,

• Confirmation of sub-VENDORs

• Pre-Inspection Meeting PIM

• This shall be conducted regardless of Inspection Level of the purchased item.

• This shall be attended by COMPANY, CONTRACTOR, VENDOR, and major Sub VENDORs.

• The suggestive agenda for PIM is as below. The detail agenda shall be developed prior to PIM based

on VENDOR, quality requirements of products.

Introductions and sign-in Inspection Notification process flow chart, contact points

▪ Preview (number, change orders, line items, etc. ▪ ▪ ▪ Shop/Plant walk-through ▪ Engineering status ▪ Drawings, codes, and specifications ▪ REVIEW of sub-orders ▪ Primary / Sub- SUPPLIER QC responsibilities (REVIEW ITP’s, hold points) ▪ Shop / Plant safety and accessibility controls ▪ Primary / Sub- SUPPLIER manufacturing, production & testing milestones ▪ Material traceability control ▪ Material substitutions ▪ Welding procedures and operator qualification controls ▪ NDE procedures and operator qualification controls ▪ Control of non-conforming product / material ▪ Welding repairs ▪ Post welding heat treatment requirements and controls ▪ Protective coatings, linings, and painting ▪ Control of inspection, measuring, test equipment ▪ Tagging, marking, and packing requirements ▪ Special and/or long-term storage requirements ▪ VENDOR data / doc. Requirements (main & sub- SUPPLIERs) ▪ Purchaser’s hold and witness points ▪ Exceptions taken and concessions granted ▪ Action points

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In process and final Inspections as per APPROVED d Inspection and Test Plans

▪ ▪ PO compliance Audits ▪ Quality Walk / Alert Program ▪ Preparation and distribution Periodic Procurement Quality Report

8.4 Purchasing Data

The documents relevant to the procurement of materials and services shall contain information on the product to be purchased, such as:

• COMPANY and CONTRACTOR Specifications and drawings, including reference to codes and

standards (with applicable edition).

Inspection Data Sheets (IDS) issued by the PSL, according to PMC (Project Material Classification) for material supplies.

requirements for Quality management of VENDORs.

The Quality requirements are triggered in function of the identified level of risk associated to the SUBCONTRACTORs and VENDORs.

The IDS provide the list of tests and inspections to be performed on the products and indicate those which the. CONTRACTOR and COMPANY may attend and the level of Surveillance.

They also list the Quality records and the material certifications to be issued by the VENDOR. Based on the IDS, the VENDOR prepares the Inspection and Test Plans (ITP) for APPROVAL by the CONTRACTOR Engineering Team.

In procurement data is also defined the structure of the final dossier that is expected to be produced by VENDORs / SUBCONTRACTORs; the index of the document shall reflect also specific contractual requirements and shall be agreed with the COMPANY.

Purchasing activities are supported by Project-specific plan and procedures

• Project Procurement Plan

• Quality requirements for VENDORs/SUBCONTRACTORs

• Shipping and Custom Procedure

• Packing and marking procedure

• Project Purchasing and Subcontracting Procedure

• Spare Parts Procedure

The above documents are produced by the relevant Project function, according to the CONTRACTOR’s Quality Management System procedures.

8.5 Verification of Purchased Products

Project Procurement Manager is responsible for preparation and issue of Purchasing document including Inspection Assignment Package. Project Procurement QC Manager is responsible for REVIEWING Inspection assignment package and assignment of CONTRACTOR inspectors for purchase order.

Inspection Assignment Package shall consist of the following:

• Unpriced copies of CONTRACTOR Purchase Order / Work Order and sub-orders/sub-contracts

• Copies of Sub VENDOR Purchase Orders

Inspection and Test Plan, procedures and forms required for inspection.

Inspection schedule

• Assigned inspectors / third party agency assigned to perform inspections and their contact details

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Project Procurement QC Manager shall be responsible for the performance of required source inspection to verify the quality of product purchased by CONTRACTOR, and shall document its procedures, processes, and controls in a Source Inspection Procedure. CONTRACTOR’s process for the development of inspection levels shall be based on criticality ratings, with appropriate adjustments for specific procurement risks, and include provisions for REVIEW and APPROVAL by CONTRACTOR’s and COMPANY’s Quality, Engineering, and Project Management personnel.

The type and amount of source inspection required are defined by the inspection level that is assigned to each product.

Inspection activity of CONTRACTOR and COMPANY or their Quality representative shall perform inspection in the following ways:

• Conformity of material or equipment with the requirements of Purchase Order

• Fabrication and workmanship shall meet standards of COMPANY specifications, standards and

specified procedures and plans in Inspection Assignment Package

• Testing shall meet requirements of Purchase Order specifications and COMPANY specifications

• Packing and shipping shall meet COMPANY specifications and Purchase Order specifications

• Nonconformities are identified, recorded, acted upon, and resolved.

Inspector shall keep accurate records of each inspection visit with proper documentation which includes inspection report, visit report, test report, calibration report, material test certificates, photographs, drawings etc. These documents shall be clearly identified with inspector name, signature, date, PROJECT number, contract number, PO number, PO item number and other pertinent details.

VENDOR shall prepare an Inspection & Test Plan for each Purchase Order placed that identifies the minimum inspection and testing requirements to ensure that ensure that all purchased equipment, material and services are fully compliant with specified requirements.

All works release by Contractor, sub-contractor or VENDORs shall be executed via an Inspection Release Process using a project standardized inspection release certificate (IRC). Any outstanding work shall be captured on an APPROVED d Punch List, a Carry-over Work Plan and shall be documented in the MC completion’s database.

8.6 Control of Company Assigned Items

With the purpose of identifying responsibilities related to COMPANY’s property and to protect its value, CONTRACTOR manages parts or components provided by COMPANY that are incorporated in the final product and/or COMPANY’s intellectual property including specifications, drawings, and confidential information in compliance with contract specifications.

Therefore, CONTRACTOR:

identifies COMPANY’s property.

verifies if COMPANY’s property is damaged.

keeps records of the damage and notifies COMPANY.

protect COMPANY’s property, as specified recommendations, CONTRACTOR internal guidelines and PROJECT preservation matrix.

in specific PROJECT procedures, VENDOR

8.7 Product Identification & Traceability

This section establishes the system and instructions for product identification and traceability. It applies to all materials, in-process materials, products, and final products purchased and delivered to fabrication yard, onshore site or offshore vessel and installed / assembled as the final plant handed to the COMPANY. Discipline Managers, lead engineers including departments of Quality, safety are responsible for

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identification, planning and revision of processes directly affecting quality and ensure that these processes are conducted in controlled conditions and products, documents in question are properly identified and traceability is maintained.

Product Identity could be preserved using any of the following:

Lot number: A homogeneous production volume of finished product that is held in a single container where representative samples are taken and analyzed to provide an authentic certificate of analysis for the specific volume.

• Heat number: A heat number is an identification coupon number that is stamped on a material plate after it is removed from the ladle and rolled at a steel mill. Heat Number code, depending upon manufacturer system identifies furnace, melt, time, manufacturer, and facility etc.

• Batch number: Unique number identifying a volume of “in-process” product.

• Raw material: Purchased (or internally produced) materials which are required to produce the

COMPANY’s finished products. VENDOR, dates, and lot numbers provide traceability.

• Certificate of Analysis: A document listing the specification requirements for the product comprising

a unique lot with the actual results obtained from specification testing for that lot.

• Other documents: Heat charts, Inspection checklists, Standard Operating Procedures, Route cards, travelers or Operation Sheets, Inward material identification reports: These are manufacturing process trackers which defines a sequence of operations and/or maintain product ID and traceability.

8.7.1 Procured Products Identification & Traceability

VENDOR is responsible for maintaining product ID and traceability throughout its manufacturing process as per quality requirements applicable for the product with regards to PROJECT specifications, applicable codes, and standards. VENDOR shall conserve identification of individual products / lots as required in applicable Inspection Level of the product, inspection test standard and PROJECT quality standards.

Identification and traceability shall be ensured during in-process and final inspections by VENDOR Quality department, CONTRACTOR Quality inspectors and COMPANY inspectors. Inspection and test records shall clearly indicate these identification details clearly.

8.7.2 Yard and Site Identification & Traceability

Identification on products shall be legible and durable enough to take up outside weather damages during transportation. Sub-CONTRACTOR Warehousing / Receiving inspection at yard and CONTRACTOR Receiving department / Offshore QA/QC department at Offshore Site shall be able to locate the identification details of products received at the respective location and shall be able to trace their inspection and test records. These details shall remain traceable after delivery to yard / site and during assembly and incorporation into the final assembly. Inspection and test records generated at these workplaces shall clearly indicate the identification and incorporation into assembly details.

8.8 Packing, Preservation & Delivery

The packing, preservation, shipping, marking and delivery of products from VENDOR shop shall be suitable to ensure that

• Suitable for long-distance transportation (using several means of travel)

• Suitable for repeated handlings

• Suitable for repeated loading and unloading (indoor and outdoor)

• Suitable for long term storage period (minimum 12 months- storage code declared by VENDOR and marked on package must involve good preservation of material during required 12month storage period under declared and marked storage code)

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• According to their characteristics, adopt moisture, mold, rust, and corrosion resisting measures to ensure the equipment can reach the site of installation without damage or corrosion under multiple handling, normal shipping and storage conditions, no damage or corrosion shall occur to equipment and/or materials under harsh marine environment for period including transport and marine onboard storage

The release of each component to be installed is performed by Procurement Dept. under the control of Project Procurement Manager, once all the inspections and tests required and listed in the APPROVED d VENDOR’s ITPs are completed with satisfactory results or for the final handover to COMPANY.

CONTRACTOR sets the processes for monitoring of activities and for the measurement of products that are necessary to demonstrate the compliance with the requirements established by the parties involved (COMPANY, CONTRACTOR, VENDOR) in the ITPs or Construction QCPs.

The ITPs specify the characteristics to be measured, the reference documents and acceptance criteria to be adopted, the records to be produced. After completion of manufacturing, VENDOR, CONTRACTOR, and COMPANY Quality inspectors shall REVIEW and ensure that all manufacturing activities on the product are completed and product is ready for dispatch.

Depending upon Inspection level and CR assigned to the product, COMPANY, CONTRACTOR, VENDOR QA/QC inspectors or representatives shall inspect and make sure packing, preservation of the product for the transportation is completed as per APPROVED d design documents and shall sign the inspection release note.

CONTRACTOR Project Specific Procedure for Marking, Packaging, preservation, and Delivery shall be used as guidance during the above activities. VENDOR shall submit his instructions / procedure for CONTRACTOR and COMPANY APPROVAL and Quality department shall inspect the activity as per this procedure and shall record their findings. Inspection release note shall not be given unless the APPROVED procedure standards are met.

CONTRACTOR shall develop project specific procedure for ‘Packing, Preservation & Storage’ in line with 8.13 of Exhibit 5.

9

CONSTRUCTION/FABRICATION/INSTALLATION

9.1 General

CONTRACTOR has three proposed Esteemed Fabrication Yards (COOEC China, Karimun & QCON, Qatar), which are all IS0 9001:2015 certified Organizations. An additional yard is under selection for the scope of work concerning the living quarters (LQs) construction.

9.2 Quality Control Team to Supervise Major Subcontractors Scope of Work

The PQM defines a QC Team to monitor SUBCONTRACTOR’s activities, witness inspections as planned in relevant Quality Control Plans/Inspection and Test Plans, REVIEW resulting records and perform surveillance/inspection activities as deemed necessary.

Typically, the QC Team is setup as follows:

QCM: coordinates QC supervisors, liaises with Sub CONTRACTOR’s QC manager on any Quality related issue, coordinates inspections and monitors/ REVIEWS assembly of SUBCONTRACTOR’s QA/QC dossier, ensures, when there is an impact on QC activities, that closeout section of Site Instructions and Site Technical Queries have been properly signed off by both SUBCONTRACTOR and CONTRACTOR QA/QC, confirming that the Job has been executed accordingly;

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• Quality Control Supervisor(s): the number and competence of QC Supervisors are determined by the extent and the complexity of the Subcontract and are agreed with PM, based on HR mobilization plan. Typically, for each discipline involved, a QC Supervisor shall be appointed, as per following examples:

• Fabrication of structures: Welding QC Supervisor, Piping/Mechanical QC Supervisor, Painting QC

Supervisor, E/I Supervisor, NDT QC Supervisor, Dimensional QC Supervisor.

QC Supervisors monitor the correct implementation of the QCPs, coordinate QC Inspectors within their field of expertise, witness inspections as planned, REVIEW and endorse resulting Quality Records, ensure the availability and completeness of all QC records for the QA/QC dossier for their discipline and support QC Manager as per competence.

9.3 Quality Control Team During Installation (On-Board Vessels)

With reference to Installation activities on-board Contractor vessels, a Vessel Quality Control Coordinator will be appointed to support the Vessel Management Team in the monitoring of the Quality deliverables, and he/she will be the connection point between the Project Quality Management Team Onshore and the Vessel Management Team.

9.4 Construction/Fabrication/Installation Planning

Project Controls Department is responsible for construction planning based on work packs. A Work Pack (WP) is a sequence of Work Phases, a succession of elementary fabrication operations, which are needed for the transformation of a product or perform simple activities involving productive man-hours. Starting from the analysis conducted during Project Set-up, Operative WP are calculating based shop drawings available, inside each WP is establish construction sequence the man-hours and involved equipment necessary to execute the WP

A WP contains:

• Description of the main operations – phases.

• Related resources (personnel, equipment,).

• Quantities of materials involved by phases (number of pieces, welding volumes, surfaces, etc.…) if

available.

WPs are completed with all needed information to perform production activities (cutting sheets, material withdrawal or other technical documentation). All production activities are executed based on instructions to production included in Work Packs where man-hours are assigned. Hours are assigned after estimation targeting the most effective methodology of work.

The WP are prepared by the Time and Method analyst the man-hour is calculate based on the shop drawings so the more detailed fabrication document. This represents the most correct estimation of the manhours and are based on activities by workstation, line of product or specific area of work.

All the productive man-hours must be preventively allocated in one Work Pack. The estimation of man- hours to be spent, referred to each Work Pack permit to highlight potential deviations from previous Scope of Work estimation.

9.5 Construction/ Fabrication/ Installation Requisition

Procurement department contributes to the definition of subcontracted scope of work according to the subcontracting strategy defined by Yard management through analysis of the scope of work, production scheduling and workload.

The management of subcontracted scope of work is conducted with the same approach used for internal activities.

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9.6 Construction/ Fabrication Control

Inspection and testing to be performed on construction activity are conducted in accordance with Quality requirement specified in the document “Project Quality Requirements for SUBCONTRACTORs.”

The planning, coordination and control of site activities is ensured by specific PROJECT procedures about field coordination, construction progress measurement.

“Site coordination procedure with COMPANY”

“Construction progress measurement”

“Site coordination procedure with Construction CONTRACTORs”

The site coordination procedures above illustrate the methods to be followed for the coordination between COMPANY and CONTRACTOR and between CONTRACTOR and major SUBCONTRACTORs representatives on site. The following aspects are detailed: organization, correspondence, meetings, WORK planning and coordination, material delivery, daily reports, quality control, as-built drawings.

9.6.1 Final Inspection & Testing

In general, site quality controls are aimed at establishing, at defined intervals of completion, the conformity of the Installation/Fabrication/Construction works with the specified requirements. This activity must be conducted in accordance with previously APPROVED ITPs / QCPs.

The responsibilities of the individual site functions, including their direct and indirect involvement in final inspection activities, are as follows:

ans of assigned QA/QC personnel, the implementation of all quality control activities, within the competence of the discipline, in accordance with the established plans for each inspection and completion phase.

• QCS ensures, either directly or by means of assigned inspection personnel, the implementation of

quality control activities as defined in QCPs/ITPs.

• Th QC supervisor shall be responsible for all the incoming material inspections at site with the support of material group who are responsible for preservation and control of materials. The QC supervisor supported by the QC Material Inspector is also responsible to check the documentation of the consigned material and to sign the incoming material inspection records.

• The Material Controller is responsible for the correct receiving, identification, storage, handling, and

preservation of material.

• Site Discipline Engineer and Discipline Superintendent ensure a visual inspection to check the

correct assembly of lines and pipe supports and authorize tests on pressurized circuits.

• Respective Discipline Engineers are assigned responsibilities for preservation, quality control and

mechanical completion of the equipment.

• Discipline Leads ensure the availability of equipment and personnel for VENDORs involved on SAT for the coordination and implementation of Inspections and within the scope of contract management activities, for the implementation of checks to evaluate the completeness of assembly works.

• The respective Discipline Engineers witnesses the tests in accordance with the Commissioning Quality Control Plan and signs the respective Inspection Form. For quality control activities concerning technical disciplines (rotating or complex machinery, electrical systems, instrumentation, and automation), the Commissioning Manager ensures the above with the support of skilled personnel from the technical departments present at site.

• Engineering Department provides support to the Site Engineering Manager position with regards to the acceptability of deviations from project requirements requested at site or evaluates the results of specific tests aimed at design validation.

• Field Engineering Manager ensures, with the support of the Technical Manager, the check and APPROVAL of requests to deviate from the specified project requirements for materials and assemblies.

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9.6.2 Inspection & Test Records

Site Quality Control Manager ensures the recording and filing of the following documents:

updated master copy of the Project Quality Control Plans

certificates of materials, other than Certificates of Manufacturer Record Book

• Certificates of inspections conducted at site

reports of nonconformities, problems, deficiencies, corrective actions, and related results

other Quality documentation defined for the project.

The original records of inspections conducted at site are systematically collected, kept, and registered in a data system under the responsibility of the Site Quality Control Manager, which assures, by weekly checking, the implementation of this collection and recording.

Site Quality Control Manager regularly informs the PQM of the status of recording and Filing.

In case when the WORK is performed directly by SUBCONTRACTOR, above responsibilities are taken by SUBCONTRACTOR Quality department with Site Quality Control Manager overseeing the Quality deliverables/activities.

9.7 Start-Up, Commissioning, Pre-commissioning And Mechanical Completion

The operating methods for the achievement of mechanical completion (end of plant construction), and commissioning are based on Project-specific procedures, issued according to the relevant procedures of the quality management system and contractual requirements.

“Mechanical completion procedure”

“Commissioning Procedure including Pre-commissioning”

CONTRACTOR Completions Manager shall be responsible for mechanical completion activities. He shall be supported by computer operators, punch list coordinators and discipline completion coordinators.

Mechanical completion is achieved in any of 3 ways for a subsystem:

Case 1. Mechanical Completion is achieved before the Construction Completion i.e., mechanical completion covers only part of the activities defined under Completion Certificate.

Case 2. Mechanical Completion and the Construction Completion are contemporaneous i.e., construction completion and mechanical completion definitions and activities are coincident.

Case 3. Mechanical Completion is achieved after the Construction Completion i.e., mechanical completion includes part of Pre-commissioning/Commissioning activities.

A minimum requirement for the signature of the Mechanical Completion Certificate is that all the mechanical completion certificate of the single subsystem is signed off by all concerned parties. There shall be one Single subsystem Mechanical Completion Certificate for each Subsystem.

CONTRACTOR shall formally invite COMPANY to conduct a walkdown for each discipline and generate items for Master Punch List, according to Punch List Procedure.

In the written notice, CONTRACTOR shall include:

• A description of Subsystem and Marked Up Drawing showing relevant boundaries.

• The status of all inspections/checks foreseen by the Project Quality Control Plan.

• The official notification of the readiness of a discipline part of a subsystem happens through the

signature of the relevant discipline Construction Completion Check List.

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For case 1 and 2 (mentioned above), Single subsystem Mechanical Completion Certificate shall be signed when the following minimum conditions are met:

• All the Construction Completion Check List of each single discipline associated to the relevant

subsystem are signed off as indicated in relevant flowchart.

• Proof provided that all inspections/checks foreseen by the Project Quality Control Plan have been performed and relevant forms signed (the tools to be used to demonstrate this must be agreed at PROJECT level).

• All items in the punch list “to be closed prior Mechanical Completion” as per Punch List procedure

(typically named Punch List Category A) have been completed and signed off.

For case 3, the Single sub-system Mechanical Completion Certificate shall be signed when the following minimum conditions have been met:

• All the Construction Completion Check List of each single discipline associated to the relevant

subsystem are signed off as indicated in checklist.

• Proof provided that all inspections/checks foreseen by the Project Quality Control Plan have been

performed and relevant forms signed.

• All items in the punch list “to be closed prior mechanical completion” as per Punch List procedure

(typically named Punch List Category A) have been completed and signed off.

• Subsystem Ready for Commissioning Check Lists (RFCCL) signed off. The RFCCL is a check list issued by commissioning department, at subsystem level, which shows all the checks necessary to be performed under commissioning department responsibilities prior to sign the Single sub-system Mechanical Completion Certificate.

For case 1 and 2 commissioning activities shall start only after the signature of the Single sub-system Mechanical Completion Certificate of the reference subsystem. For case 3 since some commissioning activities must start before achievement/signature of Single sub-system Mechanical Completion Certificate, an internal handover must be set up between construction and commissioning based on Construction Completion Check List signature, completion of quality certification and closure of specific punch item (typically punch list category A).

9.7.1 Deficiency Reports

Where CONTRACTOR observes potential deficiencies during routine surveillance, quality walk-throughs of Work-in-progress, then CONTRACTOR shall issue a Deficiency Report. This shall record all relevant details including but not limited to location; system; subsystem; specification requirements; actual situation; required corrective action to bring the process back under control.

If the required corrective action is not implemented within 2 Working days, then an NCR shall be issued.

9.7.2 Deviations & Concessions

Where the CONTRACTOR is unable to meet with specified requirements and requires that these are modified or waived, prior to execution of activity, then CONTRACTOR shall submit a Specification Deviation Request in accordance with the related Project procedure.

Where the CONTRACTOR has already completed activity, which is not in accordance with specified requirements, and requires that these are modified or waived retrospectively, then CONTRACTOR shall submit a Concession Request for consideration. This shall contain the same information required as for the Specification Deviation Request and shall follow the same APPROVAL process.

9.8 Handling, Warehousing & Preservation

CONTRACTOR shall implement and manage a Preservation Compliance Program to detail the preservation requirements of tagged and packaged equipment, bulks, fabricated sub-systems, system,

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and equipment in accordance with the Project Preservation Specifications. There shall be separate Preservation Specifications cover; One - VENDORs and Two- All Fabrication Yards, Site and Offshore. The Key CONTRACTOR Deliverables emanating from these Specifications include;

• Preservation Program and Schedule.

• Preservation and Maintenance Procedure.

• Preservation Team and Organization Chart.

• Preservation Records.

CONTRACTOR’s Preservation Compliance Program shall include e-tracking of all phases of equipment and MATERIALS preservation and it shall be submitted for COMPANY REVIEW and APPROVAL within sixty (60) days of the EXECUTED DATE. During this period, CONTRACTOR shall make a comprehensive presentation of capability and workforce resources to accomplish the Preservation program to COMPANY representatives.

CONTRACTOR must use its Project Completions System and Database to Plan, Monitor, Execute and Follow Up all Preservation Activities. The Database shall be always made available to COMPANY for REVIEW and all Preservation Records must be part of CONTRACTOR Completions Dossiers and Database.

9.8.1 Handling

Material Storekeeper shall supervise the receiving, offloading and verification of receiving documentation in accordance with the dedicated Project Specific Procedure.

Materials and components shall be received in yard or offshore barge into a defined “receiving area”; this area shall be used to check, test, or inspect materials and components prior to storage or issue for use to Construction department. Where it is not possible to inspect the materials and components at the point of receipt (i.e., that packaging must remain intact to protect and preserve its condition during storage and shipment, or time factors prevent on-receipt inspection) then the inspection shall be conducted at the destination.

Materials urgently required for fabrication use, prior to completion of all necessary checks, tests, and inspections, may only be issued if the following criteria are satisfied:

If still possible to satisfactorily perform the required checks, tests and inspections after the material has been issued to fabrication.

• Full traceability can be ensured by having consistencies on materials grade, class, and heat numbers

(or tag numbers) as stated on Material Test & Inspection Certificates.

Inspection Release Notes certified stamped and signed from Third Party Companies is suggested to cross-reference to verify such checks.

Materials shall be handled in a manner which ensures its quality and condition are maintained, no deterioration, damage, or loss, considering of shelf-life period and/ or shall include e-tracking of all phases of equipment and MATERIALS preservation’s instructions and any health and safety or environmental considerations etc.

The handling, storage, packaging, and delivery of material to the established destination specified in the order shall conform to Project Specific Procedure.

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9.8.2 Warehousing

All materials and components shall be stored in appropriate areas clearly designated and identified. Materials will be stored such that several types and grades are readily identifiable and retrievable. Project Warehouse Material storekeeper shall ensure that materials and/ or components received shall be protected from theft, damage or adverse climatic conditions when placed in storage. Warehouse/ Yard personnel shall be responsible for monitoring the condition of stored materials in during their normal duties, reporting any anomalies to the Material Storekeeper.

9.8.3 Preservation

Methods adopted for the handling and storage of materials from receiving through installation (including when in transit and during storage prior to use) must be used such as to prevent damage, deterioration, or loss. VENDOR recommendations for Handling and Storage will be considered. Preservation procedures shall be established to keep the initial preservation intact and maintained in accordance with COMPANY and VENDOR preservation requirements.

Material storekeeper shall establish a list of specific preservation maintenance requirements for the three main disciplines (mechanical, electrical, instrumentation). This list should include a preservation maintenance plan. The preservation records shall document that preservation is performed in accordance with PROJECT’s requirements. Appropriate preservation labels shall be attached to equipment, clearly visible, signed with date of preservation action.

Preservation oils and greases shall be compatible with process fluids and service lubricants as much as possible to minimize the need for removal and pre-commission clean-up. Preservation products detrimental to the process shall not be used without specific APPROVAL from COMPANY.

A Project Specific Preservation Procedure shall be developed in accordance with COMPANY Specifications:

200-20-CC-PRC-00093: Preservation Plan

200-20-CC-PRC-00094 Specification for Preservation

10 QUALITY METRICS

CONTRACTOR has been established a set of Quality Key Performance Indicators (KPIs) that measure the compliance with project quality objectives through all stages of the Project.

11 CONTINUOUS IMPROVEMENT PROCESSES & TOOLS

CONTRACTOR shall determine and select opportunities for improvement and implement any necessary actions to meet COMPANY requirement. This shall include but not limited to the followings,

Analysis and Evaluations of:

a) Lessons Learned

b) Audit Findings

c) NCR

d) Corrective Actions & Preventive Actions

e) COMPANY satisfaction

f) Quality Objectives and Performance Metrics

g) The effectiveness of actions taken to address risks and opportunities

h) Performance and effectiveness of the Quality Management Systems

i)

Issues and Complaints raised during the projects

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Improvement action plans and completed action reports with evidence shall form part of MQR and those shall be distributed internally and to the COMPANY on periodic basis.

As part of Improvement process and in line with the requirements of section 8.3 of Exhibit 5, CONTRACTOR shall form a Quality Steering Team, which shall include, but not be limited to, PROJECT, engineering, and construction management. CONTRACTOR shall make provisions to allow COMPANY participation in the Quality Steering Team. The Quality Steering Team shall perform the following:

• Meet monthly during all PROJECT execution phases

• REVIEW quality performance metrics and key quality issues

Identify quality program improvements and adjustments to resources using a documented Action Tracking Plan.

• Promote quality awareness through actions

12 ATTACHMENTS

A. Project Quality Policy B. PMT Organization Chart (Ref: COMP2-SPM-PM-ORG-00001) C. Project Quality Organization Chart (Ref: COMP2-SPM-PM-ORG-00001)

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Attachment A- Project Quality Policy

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Attachment B- PMT Organization Chart (Ref: COMP2-SPM-PM-ORG-00001)

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Attachment C- Project Quality Organization Chart (Ref: COMP2-SPM-PM-ORG-00001)

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Project: Q-21699 - Saipem COMP2 Folder: QAQC