Professional Documents
Culture Documents
SAEP-14
20 September 2006
Project Proposal
Document Responsibility: Project Support and Controls Dept.
1
2
3
4
5
6
7
8
Introduction......... 2
Applicable Reference Documents... 3
Proposal Contents and ER Estimate...... 5
Project Improvement Effort. 21
Reporting and Review Requirements....... 27
Approvals and Waivers....... 30
Contract Bid Package.. 33
Exhibits...... 34
36
38
40
42
46
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SAEP-14
Project Proposal
Introduction
This procedure outlines the requirements for preparing the Project Proposal and
Expenditure Request (ER) Estimate package. The procedure is not intended to give
instructions on the engineering effort, but to cover requirements that are important
during the Project Proposal process. In summary it covers:
The intent of the checklists is to insure compliance with key requirements. They are not
intended to cover all detailed requirements of this procedure.
1.1
Definition
The Project Proposal is a document, which establishes the preliminary (front
end) engineering scope definition, cost estimate basis and schedule for a
proposed facility from the requirements included in the Design Basis Scoping
Paper (DBSP) and the approved Project Execution Plan (SAEP-12). This
includes the proposed facility design, general layout and the appropriate
functional and performance specifications including the recently published
applicable standards & codes. Project Proposal shall be of sufficient detail to
prepare a 10% accuracy ER estimate, provide sufficient technical information
for Saudi Aramco review and (where applicable) provide sufficient information
to obtain detailed engineering, procurement and construction contract bids in
accordance with the approved Contracting Plan.
1.2
Purpose
The Project Proposal documents the agreement on, and commitment to, the
project scope, the project cost and design basis by the Saudi Aramco Project
Management Team (SAPMT), Facilities Planning Department, Project Support
& Controls Department, Proponent and other technical support groups. This is
accomplished through careful evaluation of the project objectives during Project
Proposal preparation to ensure the optimum results. The Project Proposal
establishes the basis for Expenditure Request (ER) funding and is the baseline
from which all subsequently considered scope changes are measured.
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1.3
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Project Proposal
Preparation Timing
Project Proposals must be completed and approved in time to support the
Expenditure Request Approval (ERA) date.
A complete ER Estimate Package must be submitted to Project Support &
Controls Department / Project Controls & Estimating Division (PS&CD/PCED)
at least 4 weeks prior to the 56D Estimate submittal due date to FPD Budget
Director, as per the Capital Program ER Processing Schedule for Board
EXCOM and local approval. Refer to Section 3.4.2 through 3.4.6 for ER
Estimate Preparation requirements. Approved Project Proposal from SAPMT
Department Manager, Facilities Planning and Proponent organization signatory
is a mandatory requirement prior to issuance of the ER Estimate (Saudi Aramco
Form 56D) to Budget Director.
1.4
Application
With the exception of Master Appropriation projects, Saudi Aramco requires a
Project Proposal and ER Estimate for all Capital, Non-Capital and Expense
Projects, valued more than $2 million, under the control of Engineering and
Operations Services (E&OS). The Project Proponent and SAPMT shall agree
and document the level of detail needed prior to start of the Project Proposal.
Projects that combine the preparation of DBSP and Project Proposal into one
effort shall ensure that the requirements identified in this document which are
relevant to the Project are met.
SAEP-13
SAEP-25
SAEP-31
SAEP-140
SAEP-302
SAEP-303
SAEP-14
Project Proposal
General Instructions
GI-0005.002
GI-0020.500
GI-0020.520
GI-0202.309
GI-0202.451
GI-0400.001
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SAEP-14
Project Proposal
Table of Contents
3.2
Technical Requirements
3.2.1
Project Summary
This section provides a history of the existing conditions, a brief
discussion of the proposed facilities and their justification, outlines the
project objectives/scope and schedule, and briefly describes how these
objectives will be achieved.
3.2.2
Project Description
This section provides scope and design information that establishes the
performance specifications for the facilities, process, waivers or
limitations. It shall address details concerning the design basis, proposed
facilities including equipment design, capacities, location/layouts and
other project related information. The list below provides common
elements found in a typical scope.
1)
2)
3)
4)
5)
6)
7)
8)
9)
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Project Proposal
2.
3.
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B)
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Project Proposal
4.
5.
Site investigations
C)
D)
3.2.4
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Project Proposal
Communication Requirements
Saudi Aramco construction projects normally require both temporary
(during construction) and permanent communication systems. As
procurement approval for radio frequencies and materials involves long
lead times, communication systems require early identification and
coordination between Information Technology organization and
SAPMT. To facilitate these requirements, the Project Proposal shall
contain the following:
3.2.5
a)
b)
c)
d)
3.2.6
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Project Proposal
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3.2.8
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Project Proposal
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3.2.8.3
3.2.9
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Project Proposal
General
The Project Proposal provides a table of major materials and equipment
identified for the project. During preliminary engineering, the
Engineering Contractor, with guidance from the SAPMT, shall review
the Company DC (9COM) Surplus and Excess (9CAT) using SAP
MMBE transaction to identify all acceptable or substitute materials
which are available in Saudi Aramco inventories for possible use on the
project, with the objective of:
a)
b)
c)
d)
SAEP-14
Project Proposal
2.
The purchase order transferred to the LSTK Contractor will cover the
complete scope involving engineering and manufacture. Use of novated
purchase orders should be approved by Services Review Committee
(SRC) either as part of the contracting plan or as an individual item.
3.3.2
b)
c)
d)
3.3.3
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Project Proposal
e)
f)
g)
3.3.4
3.3.5
3.3.6
SAEP-14
Project Proposal
Scheduling Requirements
This section contains a Level III project summary schedule that shall be
developed during the Proposal phase based on information from the
Project Milestone Schedule, WER Schedule and other data as they
become available during the DBSP and Project Proposal.
Project Summary Schedule should be developed as soon as Preliminary
Engineering starts and will be used as a "working" tool in the absence of
a detailed schedule by Contractor. The Project Summary Schedule shall
be used as a guide for ER estimate preparation, early identification of
long lead material procurement items, Contracting Strategy and technical
evaluation of Contractors and start-up planning. As-Built schedules
from similar projects can be made available from PC&ED Scheduling
Group to be used as a guide for the initial preparation of the Level III
schedule.
Project Summary Schedule addresses all the project life cycle activities
in a summary format. It must be logic driven, based on the Critical Path
Method (CPM). The Schedule should contain sufficient detail to show
potential material or equipment novation, long lead items, contract
procurement activities, detailed engineering by discipline leading to
major deliverables, mobilization, early works, shutdown, tie-ins, testing,
loop checks, pre-commissioning, start-up, interface with Proponent and
other projects.
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SAEP-14
Project Proposal
ER Estimate Requirements
Project Proposals must be completed and approved in time to support the
Expenditure Request Approval (ERA) date. A complete ER Estimate
Package must be submitted to PS&CD, at least four (4) weeks prior to
submittal of 56D Estimate to FPD Budget Director as per Capital
Program ER Processing Schedules for Board, EXCOM and local
approvals.
SAPMT shall be responsible for preparation of the ER Estimate package:
using the Estimating Tool Aspentech Kbase, particularly for oil and
gas process facilities, as a preferred estimating software. Selection of
any other estimating tool should be discussed with PS&CD.
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Project Proposal
B)
ER Estimate Basis
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C)
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Project Proposal
D)
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Project Proposal
ER Estimate Plan
SAPMT shall be responsible for developing an ER Estimate Plan which
will be reviewed and discussed during the initial kick-off meeting. At
the minimum, the ER Estimate Plan should contain:
3.4.5
SAEP-14
Project Proposal
ER Estimate Deliverables
The ER estimate will be based on 100% Project Proposal which includes
equipment lists, equipment sizing, plot plans, P&ID, single line
diagrams, cable schedules, instrument index summaries, I/O counts, bulk
material take-offs, and other related project documents and drawings.
The following major contents of deliverables should be included in the
ER estimate package:
A complete list of all scope changes from the DBSP that will be
implemented in the Project Proposal. The list will include itemized
scope changes with justification and cost/schedule impact for each
deviation item
SAEP-14
Project Proposal
Any other factor that can impact the future cost of the project
3.5
Trade Organizations
Trade Magazines
Appendix
The Appendix shall include letters, minutes, land use permits and other pertinent
documents written during Project Proposal development.
3.6
Numbering Project
All Project Proposals shall be numbered by the issuing office as follows:
Saudi Aramco
ASC
3.7
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Project Proposal
3.7.1
3.7.2
Value Engineering
Value Engineering (VE) is an organized analytical process that can be used to
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Project Proposal
optimize the life cycle cost and performance of a facility or system. The VE
process systematically identifies opportunities to increase value by removing
unnecessary costs without sacrificing quality, function, or reliability.
4.1.1
4.1.2
The estimated BI value is between $10 $50 million, and the preplanning or DBSP stage VE Report recommends that a Project
Proposal stage VE study is required.
4.1.3
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Project Proposal
The status and resolution of all accepted and pending VE proposals shall
be documented in the Value Engineering Section of the Project Proposal.
A copy of the final VE Report shall be distributed to the PS&CD/CPOD
Division Head.
4.2
Benchmarking
Benchmarking is an improvement process used to discover and incorporate
project cost, schedule, front-end loading, value improvement and operability
into project execution strategy.
The benchmarking process will be centralized so that all benchmarking activities
are managed through PS&CD/PCED. Benchmarking will be conducted at
study, late stages of the DBSP, early stages of the Project Proposal as well as
towards the completion of a project. Projects will be selected by PS&CD for
either external or internal benchmarking.
The objective of Benchmarking analysis at the early stage of Project Proposal is
to identify and compare key project parameters such as project scope, quantity,
cost, schedule, value practices and execution strategy, against the Companys
internal historical statistics of similar projects. The project data also are used for
benchmarking against the industry world class projects with similar scope. The
result of the benchmarking analysis can be used for improving project execution
plan.
4.2.1
4.2.2
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Project Proposal
Execution strategies
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Driver Selection
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Project Proposal
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
The optimum time to conduct such a study is the earliest possible date after
preliminary PFDs, including heat and material balances, are available, and the
plant fuel/power consumption estimates have been determined. Generally, this
would be after 30% completion of the Project Proposal, but no later than 60%
Project Proposal completion.
The full energy optimization study report, including all supporting data and
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Project Proposal
Constructability
Effective and timely integration of construction knowledge into the
conceptual planning, design, construction and field operations of a project.
Optimum timing during project proposal phase is at 30% Project Proposal.
Lessons Learned
Systematic search for applicable existing lessons learned from Saudi
Aramco Project Management Lessons Learned database and other sources.
Implement applicable lessons to avoid repetition of problems and build on
successes experienced by other projects. Also collect and submit new
lessons learned per SAEP-329 Project Close-out Report.
SAEP-14
Project Proposal
Schedule Optimization
Utilization of Schedule Reduction and Schedule Compression
techniques to optimize the schedule for project completion.
Other
PS&CD will identify and implement other value practices that become
available between revisions of SAEP-14 that offer value improvement to the
project.
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SAEP-14
Project Proposal
Executive Management:
-
General Management:
-
Proponent organization
Management:
-
Purchasing Department
Inspection Department
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5.2
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Project Proposal
5.3
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Project Proposal
Saudi Aramco
SAPMT shall send copies of the approved Project Proposal to:
-
Technical Information Center (TIC), Room E-3100, EOB, Dhahran one electronic copy for archival purpose.
Approval Process
6.1.1
Approvals
SAPMT shall be responsible for obtaining Saudi Aramco approval for
the Project Proposal from the appropriate individuals listed. Executive
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Project Proposal
6.1.2
Unresolved Items
If unresolved items exist that would preclude obtaining approvals as
described in section 6.1.1, SAPMT shall refer any unresolved item(s)
through appropriate channels of authority until resolution is obtained.
The Project Proposal minutes shall show the estimated cost and schedule
effects of any changes from the DBSP/Project Proposal as originally
prepared.
6.1.3
6.2
SAEP-14
Project Proposal
Request
For selected projects, Project Management may request to waive the
requirement for a Project Proposal / Front End Engineering Design
(FEED) and proceed directly with detailed design using preliminary
engineering funds. This request will permit SAPMT to use TC-68 funds
to carry out detailed design, perform selected project proposal
requirements and to prepare an ER quality estimate for funding approval.
Project Proposal waiver does not exempt ER Estimate and any other
Value Practices requirements.
6.2.2
Approval
The following steps are required to obtain a waiver of project proposal
and proceed with detailed design:
SAEP-14
Project Proposal
Issue for Bid package (normally prepared by Engineering Contractor) which includes,
but is not limited to, drawings, specifications, applicable reports, and other relevant
documents necessary to define the project requirements and clearly describes the
contract scope of work. SAPMT should take into consideration the current project
execution plan and responsibilities of all contractual parties when revising the Project
Proposal package to Issue for Bid Package.
The following Sections in the Project Proposal should be reviewed carefully to
determine if they are applicable for inclusion in the bid package. If they are to be
included, SAPMT shall modify as required to ensure that Contractors scope of work is
clearly defined in the Issue for Bid Package:
Project Schedule
Training requirements
Land Permits
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Project Proposal
Exhibits
The intent of the checklists is to facilitate the review and ensure all key requirements
are considered, but not to cover all detailed requirements as stated in this procedure.
8.1
8.2
8.3
8.4
Sample of Benchmarking
8.5
28 June 2000
29 January 2003
15 August 2006
20 September 2006
Revision Summary
Major revision.
Editorial revisions.
Major revision.
Editorial revision to paragraph 3.7.
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Project Proposal
EXHIBITS
TABLE OF CONTENTS
EXHIBIT I
EXHIBIT II
EXHIBIT III
EXHIBIT IV
EXHIBIT V
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Project Proposal
Ref.
Section
3.2.2
Description
Included
3.2.4
3.2.5
3.2.6
3.2.6
3.2.7
3.2.8
3.2.9
3.2.10
10
3.3.1
11
3.3.2
12
3.3.3
13
3.3.4
Page 36 of 48
Item
Ref.
Section
14
3.3.5
15
3.3.6
16
3.4.1
17
3.4.2
18
3.7
19
4.1
20
4.2.1
21
4.2.2
22
4.3
23
4.4
Description
SAEP-14
Project Proposal
Included
1. Constructability Study
2. Project Definition Rating Index (PDRI)
3. Lesson Learned
4. Project Execution Planning Workshop
5. Schedule Optimization
6. Planning for Startup
7. Scope Control and Change Management
Page 37 of 48
SAEP-14
Project Proposal
Description
10
Control system (DCS) scope with I/O counts, Block Flow Diagrams and Vendor
Quotations
11
12
13
14
15
DC Surplus, etc,
16
Included
Page 38 of 48
Item
Description
17
18
19
20
21
22
23
Exploratory Trenching
24
25
26
27
28
29
30
31
32
33
34
35
Recent (valid for 3 months) quotations for major equipment & material
SAEP-14
Project Proposal
Included
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SAEP-14
Project Proposal
Description
Included
Contracting Strategy
Enter and maintain data on all contract action covered by the Contracting
Strategy in to the PMIS Contracting Action Development and Administration
(CADA) module.
Pro Forma Contract & Specific Instructions to Bidders (SIB)
Secure approvals for all singe source procurement and included appropriate
language in Schedule H.
10
Prepare, in conjunction with other members of the Bid Review Team, data to be
used for allowed bid conditioner (e.g., different PMT cost for various locations).
Page 40 of 48
Item
Description
SAEP-14
Project Proposal
Included
Review of Contract and Contract Supplement as Part of the Bid Review Team
11
Ensure the Contract is structured correctly for SAP SRV releases (for lump
sum, three items lump sum price, change orders, and other expenditures; and
use of VAL with the amount in the quantity column).
12
Ensure that that AEL includes reasonable amounts for all applicable Other
Expenditures (e.g., incidental services, Saudi manufacturer equalization, standby time, reimbursable start-up and commissioning assistance, variations from
target quantities, etc.).
13
14
After award of the contract, provide copies of the bidders price breakdowns
and quantity lists to PS&CD.
Note: For a project using an LSTK contracting strategy, these actions are required during or just after the Project
Proposal period. For other strategies (e.g., GES + LSPB) some of the activities take place at later stages of
the project.
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Project Proposal
ERA
ERC
DESCRIPTION
AREA NAME
INLET FACILITY
PRODUCTION
TRAP
PARAMETER
UOM
EACH
EACH
EACH
EACH
QUANTITY
UNIT
COST
COST
$
DOLLARS
UNIT CAPACITY
MBD
EACH
EACH
WATER CUT
% VOL
DOLLARS
UNIT CAPACITY
MMSCFD
HP COMPRESSORS QUANTITY
EACH
EACH
IP COMPRESSORS QUANTITY
EACH
EACH
LP COMPRESSORS QUANTITY
EACH
EACH
HP COMPRESSORS TOTAL HP
HP
EACH
GAS GATHERING
IP COMPRESSORS TOTAL HP
HP
LP COMPRESSORS TOTAL HP
TOTAL INSTALLED COST (GAS
GATHERING)
HP
DOLLARS
Page 42 of 48
WET CRUDE
HANDLING &
WOSEP
CONDENSATE
STABILIZATION
CRUDE
STABILIZATION
WATER INJECTION
FACILITY
COGENERATION
FACILITY
PIPERACK &
PIPING
SUPPORT
INFRASTRUCTURE
SAEP-14
Project Proposal
EACH
UNIT CAPACITY
TOTAL INSTALLED COST (WET CRUDE
HANDLING & WOSEP)
MBD
DOLLARS
UNIT CAPACITY
TOTAL INSTALLED COST (CONDENSATE
STABILIZATION)
MBD
DOLLARS
UNIT CAPACITY
MBD
UNIT CAPACITY
MBD
QUANTITY OF PUMPS
EACH
PUMPS TOTAL HP
HP
EACH
DOLLARS
ISO RATING
MW
TONS
TONNAGE PIPE
TONS
WIDTH OF PIPERACK
LM
LENGTH OF PIPERACK
LM
HEIGHT PIPERACK
LM
LEVELS OF PIPERACK
EACH
LM
DOLLARS
DOLLARS
SITE PREPARATION
SM
CONCRETE
CM
STRUCTURAL STEEL
TONS
FENCING
LM
SM
SM
SM
SUBSTATION
TOTAL INSTALLED COST (SUPPORT
BLDGS ONLY)
TOTAL INSTALLED COST
(INFRASTRUCTURE)
SM
DOLLARS
DOLLARS
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OFFSITES &
UTILITIES
ELECTRICAL
PROCESS
CONTROLS
COMMUNICATIONS
OTHERS
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Project Proposal
BOILER QTY
EACH
BOILER CAPACITY
LBS/HR
BOILER PRESSURE
PSIG
GPM
EACH
SCFM
FLARE SIZE
SCFM
GPM
SCFM
GPM
DOLLARS
KM
KV
SWITCHYARD VOLTAGE
KV
MAIN SUBSTATION
EACH
MAIN SUBSTATION
KVA
UNIT SUBSTATION
EACH
UNIT SUBSTATION
KVA
LM
ELECTRICAL CABLE
LM
DOLLARS
I/O
I/O
I/O
WORKSTATIONS QTY
EACH
EACH
LM
INSTRUMENTATION CABLE
TOTAL INSTALLED COST (PROCESS
CONTROLS)
LM
DOLLARS
LM
COMMUNICATION EQUIPMENT
TOTAL INSTALLED COST
(COMMUNICATIONS)
EACH
DOLLARS
EACH
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ENGINEERING
CONSTRUCTION
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Project Proposal
MHRS
MHRS
MHRS
DOLLARS
DIRECT CONSTRUCTION
MHRS
INDIRECT CONSTRUCTION
MHRS
MHRS
DOLLARS
MBD
ACTIVITY
DESCRIPTION
IN MONTH(S)
ERA-MCC DURATION
CONSTRUCTION DURATION
START-UP & COMMISSIONING DURATION
MATERIAL & EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME
DELIVERY
VALUE
PRACTICES
CONTRACTING
STRATEGY
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SAEP-14
Project Proposal
PROJECT TITLE
CONTRACT
NUMBER
CONRTACT TYPE
BI
JO
:
:
SUMMARY OF COST
BY WORK BREAKDOWN STRUCTURE (WBS)
AREA OF WORK
BULK
MATERIALS
ENGINEERING
CONSTRUCTION
TOTALS
AREA OF WORK 1
AREA OF WORK 2
AREA OF WORK 3
AREA OF WORK 4
DEMOLITION
(SCA 007)
CIVIL / STRUCTURE
(SCA 200 & 400)
DESCRIPTION
UNIT
QUANTITY
COST
UNIT COST
LUMPSUM
SITE PREPARATION /
DEVELOPMENT
(PLOT SIZE)
SM
CONCRETE
CM
FENCE
LM
SM
STRUCTURAL STEEL
TONS
SM
MHRS
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MECHANICAL/
PROCESS
EQUIPMENT
(SCA 500)
PIPING
(SCA 600)
ELECTRICAL
(SCA 700)
COMMUNICATIONS
(SCA 780)
Project Proposal
STATIC EQUIPMENT
EACH
HEAT EXCHANGERS
EACH
AIR COOLERS
EACH
PUMPS
EACH
COMPRESSORS
EACH
EACH
TOTAL MECHANICAL/PROCESS
EQUIPMENT MANHOURS & COST
MHRS
LM
TONS
LM
LM
TONS
MHRS
KM
MAIN SUBSTATION
MW
UNIT SUBSTATION
MW
LM
LM
LM
MHRS
I/O
EACH
EACH
LM
LM
LM
MHRS
LM
COMMUNICATION EQUIPMENT
TOTAL COMMUNICATIONS
MANHOURS & COST
EACH
MHRS
LENGTH OF PIPERACK
TONNAGE CARBON STEEL
(PIPERACK)
UNDERGROUND CARBON STEEL
PIPING
ABOVEGROUND CARBON STEEL
PIPING
SAEP-14
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INSULATION &
COATINGS
(SCA 900)
CONSTRUCTION
ENGINEERING
Project Proposal
MHRS
MHRS
MHRS
MHRS
MHRS
DOLLARS
ACTIVITY
SCHEDULING
SAEP-14
IN MONTH(S)
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