Professional Documents
Culture Documents
Details of revision
Effective date
Originated by
Checked by
Approved by
First Edition
SAH
AIE
HAT
Second Edition
SAH
FH
AFA
Document Originated by
Document Checked by
Document Approved by
Signature
Name &
Designation
Date
Consistency in practices among all projects being executed by PD and better Project Management
Maturity
Allowing the EPC Contractor to submit more accurate bid
Better control on project triple constraint (Scope, Time, Cost) & Quality
Enhancing Learning Curve for Project Coordinators
This guideline is property of Projects Directorate, hence, any amendment or modification to the content of this guideline
must be reviewed by subject matter experts at PD Project Management Center of Excellence and approved by Projects
Manager at PD I.
This guideline will be reviewed annually and updated revision will be issued accordingly. References and samples used in
guideline can also be found at PD Website.
References
This is to confirm that the content of Project Management Guideline is referenced to the following:
1. Quality Management System (QMS)
2. KNPC Capital Project Initiation & Control Procedure
3. KNPC Project Methodology Handbook (KPM)
4. Project Management Body of Knowledge- Fifth Edition
5. Organizational Project Management Maturity Module (OPM3) - Third Edition License#:
(8984b344-4ea3-4aeb-97eb-ID128ae6dc0c)
6. A Project Managers Book of Forms by Cynthia Stackpole Snyder
7. IMPA Project Excellence Baseline
8. ISO 21500:2012 - Guidance on Project Management
Table of Contents
Introduction
Message from Deputy CEO Projects
1. Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.1
12
1.2
18
1.3
24
1.4
38
1.5
56
1.6
68
1.7
75
1.8
81
1.9
85
1.10
92
99
2.2
103
2.3
106
2.4
109
2.5
123
2.6
125
2.7
127
2.8
132
2.9
135
2.10
141
146
147
III.
148
IV.
149
Appendix
I.
II.
Introduction
Introduction
Welcome
Dear Valuable Projects Managers,
I would like to thank you for your efforts in striving for excellence in Project Management and in light of this, I am
extremely pleased to introduce the PD Project Management Guideline for Project Design & Implement Stages, which
is enriched with international best practices in Project Management framework, processes, tools and techniques.
Implementation of this Guideline will increase knowledge sharing and make sure that KNPC Project Management
requirements are thoroughly understood and followed by all partners of the Project i.e. FEED Consultant, EPC Contractor
and KNPC Project management team thus ensuring the alignment of their efforts towards meeting project objectives.
I would highly recommend utilizing best practices available within this Guideline to ensure effective Project Management
on all upcoming KNPC capital projects.
Thank you,
Introduction (Contd.)
Projects Directorate Leadership
Introduction (Contd.)
KNPC Project Lifecycle
The following diagram outlines the KNPC project lifecycle that consists of five main stages:
Introduction (Contd.)
1. Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
10
1.1
12
1.2
18
1.3
24
1.4
38
1.5
56
1.6
68
1.7
75
1.8
81
1.9
85
1.10
92
11
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.1 Project Integration Management Guide
Project Integration Management is a group of activities performed in order to have all Project Management functions
managed effectively towards achieving project stated objective. Project Integration Management consists of the
following main processes:
Develop Project Charter
Develop Project Management Plan (PMP)
Direct and Manage Project
Monitor & Control Project
Integrated Change Control
Close Project
What is Project Management Plan?
Project Management Plan (PMP) is one key deliverable of Project Integration Management and it is developed During
Project Design (FEED) Stage to describe how the project will be executed (execution plan), monitored & controlled by
awarded Project Executer (EPC Contractor). PMP is composed of all management plans as per following:
Stakeholder Management Plan
Scope Management Plan
Schedule Management Plan
Cost Management Plan
Quality Management Plan
Human Resource Management Plan
Communications Management Plan
Risk Management Plan
Procurement Management Plan
Noting that, PMP consists of project Scope, Schedule & Cost baselines. Hence, project will be executed according to the
developed PMP during Project Implement Stage. Any changes to the PMP during Project Implement Stage have to go
through Integrated Change Control process.
Project Management Guideline along with its forms have been initiated to ensure consistency and avoid ambiguity due to
lengthy literature while developing Project Management Plan (PMP) for project execution by FEED developer. Noting
that most of these forms are enhanced version of the ones available in KNPC Project Control Procedure, KNPC Project
Methodology and internal Project Control practices. FEED developer to further customize the forms as per specific
project requirement and put reference numbers.
It must also be noted that forms (addressed in part I & II) are considered as a guideline for FEED Developer to ensure
availability of a complete PMP for project execution and therefore FEED Developer can modify them as deemed
necessary to better serve specific project need and avoid duplication, inconsistency and potential conflict with ITB
module.
It must be made sure that FEED Developer receives complete and updated version of for Project Management Guideline.
PMP (excluding Cost Management Plan, cost related information and schedule & resource estimate related information)
will be attached to tender document (attached to Part-I Instructions to Bidders) in order to provide better opportunity to
the interested Bidders to understand Project Scope of Work and implementation requirements and therefore, submit more
accurate bid.
Furthermore, requirements for Change Control process are also part of Project Integration Management where a Change
Management process is used to ensure that every change identified is formally communicated, documented, reviewed,
approved, and implemented and requirements should be addressed within the Change Management Plan during Project
Design (FEED) Stage.
12
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.1 Project Integration Management Guide (Contd.)
Project Management Plan
Responsibility
FEED Developer
Project Design (FEED) developer will develop Project Management Plan (PMP) during Project Design Stage for EPC
Type of Contract. FEED developer will start developing PMP immediately after readiness of high-level project
requirements, it will be reviewed and finalized progressively along with the completion of FEED. Once the developed
PMP is agreed and signed off, it should be attached to ITB Tender Document (attached to Part-I Instructions to Bidders,
excluding Cost Management Plan, any cost related information and schedule detailed estimate related information) and
the complete PMP should be base-lined and uploaded at PD Website under Project Management Database link by Project
Management Team.
KNPC
KNPC Project Coordinator will be reviewing the PMP and KNPC Team Leader of the Contract will approve the PMP and
is responsible for the quality of integration of all management plans during Project Design (FEED) Stage. In addition, he
should monitor and control project deviation from project plan during Project Implement Stage.
EPC Contractor
Awarded EPC Contractor is responsible to further develop, maintain and quarterly update the PMP during Project
Implement Stage or when any approved major change occurs. EPC Contractor should also measure project performance
and develop effective Recovery Plan (corrective action) in case of any deviation crosses the threshold level of the project
plan (baseline).
Change Management Plan
Responsibility
FEED Developer
Project Design (FEED) developer will develop Change Management Plan during Project Design Stage.
KNPC
KNPC Project Coordinator will review and approve Change Management Plan.
EPC Contractor
EPC Contractor will be responsible to implement the approved Change Management Plan.
13
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.1.1 Project Integration Management Flowchart & Template
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Expert
Judgment
Project
Management
Plan
Facilitation
Techniques
Change
Management
Plan
Project
Design
(FEED)
Stage
Project
Integration
Management
Develop Project
Management
Plan
Projects Departments
Processes, Procedures,
and Historical
Information
Note:
-
Approved PMP shall be distributed to the concerned Projects Manager, assigned Team Leader of the Contract,
Team Leader Project Control, Team leader QA/QC
14
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Key Deliverables
Idea Stage
Study Stage
Design Stage
Implement Stage
Description
1.Integration
2.Stakeholder
3.Scope
4.Schedule
5.Cost
6.Quality
7.Human Resources
8.Communication
9.Risk
10.Procurement
Assumptions
Constraints
Project Reviews
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
15
Definitions of Change :
Schedule change:
Budget change:
Scope change:
Project document changes:
Variance and Baseline Management
Schedule Baseline Management: (Describe how the schedule baseline will be
managed, including responses to acceptable, warning, and unacceptable variances. Define
circumstances that would trigger preventive or corrective action and when the change control
process would be enacted)
Cost Baseline Management: (Describe how the cost baseline will be managed,
including responses to acceptable, warning, and unacceptable variances. Define circumstances
that would trigger preventive or corrective action and when the change control process would
be enacted)
Cost Variance Threshold: (Define acceptable cost variances, variances that indicate a
warning, and variances that are unacceptable)
Scope Baseline Management: (Describe how the scope baseline will be managed,
including responses to acceptable, warning, and unacceptable variances. Define circumstances
that would trigger preventive or corrective action and when the change control process would
be enacted)
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
16
17
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.2.1 Project Stakeholder Management Guide
Stakeholder are parties that are actively involved in the project and their interest may affect project's outcomes. Hence, it
is very important to identify Stakeholder at early project stage, as their influence will be varied among Project Lifecycle.
Stakeholder Management Plan will be developed during Project Design (FEED) Stage to address the following
requirements:
Stakeholder Detail
Stakeholder major expectation and requirement
Stakeholder level of project awareness and interest
Communications Needs
1.
2.
3.
4.
Responsibility
FEED Developer
FEED Developer will develop Stakeholder Register and Stakeholder Management Plan during Project Design (FEED)
Stage and attached it to tender document.
KNPC
KNPC Team Leader of the Contract will approve Stakeholder Management Plan and will be responsible to Manage &
Control Stakeholder Engagement during Project Lifecycle.
Team Leader of the Contract should carryout workshop with project key stakeholder in order to identify stakeholder
requirements, interest, influence and impact on the assigned project.
Use Change Management Tools available within the KNPC Project Methodology Handbook (where applicable) during
project lifecycle. In addition, Team Leader of KNPC Contract is responsible to use Change Management Tools available
within the KNPC Methodology (where applicable) to ensure Stakeholders readiness for the Project.
Team Leader of the contract should use Issue Log & Decision Log in order to manage any issue with project stakeholder.
EPC Contractor
Awarded EPC Contractor will implement Stakeholder Management Plan and maintain it periodically.
18
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.2.2 Project Stakeholder Management Flowchart & Template
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Project
Stakeholder
Management
Main Process
Inputs
Tools &
Techniques
Project Charter
Stakeholder
Analysis
Procurement Document
Expert
Judgment
Output
Deliverables
Identify
Stakeholders
Stakeholder
Register
KNPC Polices & Practices
Meetings
Projects Departments
Processes, Procedures and
Historical Information
Note:
- Purple text refers to attached template.
-
Required Governance and Statutory approval shall be collected during project early stage. (Where applicable)
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
19
Influence
Low/High
Interest
Low/High
Intent
Negative/ Neutral/
Positive
Category
Key Player, Marginal,
Influential, Affected
20
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Strategy
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.2.2 Project Stakeholder Management Flowchart & Template
Project
Stage
Project
Management
Function
Main
Process
Inputs
Tools &
Techniques
Output Deliverables
Project
Management Plan
Expert
Judgment
Stakeholder Management
Plan
Stakeholder
Register
Meetings
Project Documents
(Updates)
Stakeholder Change
Impact & Readiness
Assessment
Project
Design
(FEED)
Stage
Project
Stakeholder
Management
Plan
Stakeholder
Management
Analytical
Techniques
Projects
Departments
Processes,
Procedures and
Historical
Information
Note:
- Purple text refers to attached template.
-
21
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Key Stakeholder
Stakeholder name, position , organization
Expectations
(input to Project Charter)
Main expectations of the project and
/ or product
Needs
(input to Project
Charter)
High-level needs for the
project and / or product
Objectives
(input to PMP)
List of requirements :
Project or Product
INTERNAL STAKEHOLDERS
EXTERNAL STAKEHOLDERS
22
KPI
(input to Quality
Management
Plan)
Quality assurance for
accepting each defined
objectives.
Remark
23
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.3.1 Project Scope Management Guide
Project Scope Management is the process of gathering all requirements and work to be done in order to achieve a target
objective.
The Project Scope Management process will be mainly consists of the following:
1. Plan Scope Management
- Plan Scope Management
- Plan Requirements Management
- Develop List of Requirements Documentation
- Develop Project Scope Statement
- List out Assumption & Constraint
- Develop Work Breakdown Structure (WBS)
- Develop Preliminary WBS Dictionary
- Develop Scope Baseline
2. Validate Scope
3. Control Scope
In addition, Project Acceptance Plan is Key deliverable within Project Scope Management that should be finalized during
the end of Project Design (FEED) Stage and it should address the following main requirements:
- A list of key milestone that should be achieved
- A list of deliverables that should be produced
- Standards and completion criteria that project deliverables will be reviewed and accepted by project end user
- Detail steps (process) to get project end user acceptance once the project deliverable is finalized and produced
Above mentioned Project Scope Management deliverables will be attached to ITB tender document in order to give
bidders better view and understanding of Project Scope Management. In addition, this deliverable will be referred to
during the entire Project Implementation and Project Closure Stages while project deliverables are produced for final
acceptance. Hence, these key deliverables should be maintained until the end of the project.
Responsibility
FEED Developer
Assigned FEED Developer should develop project Scope Management deliverables during Project Design (FEED) stage
through direct coordination with KNPC Project Coordinator and Project End User.
Also, Project Design (FEED) Developer is responsible to carry out integrated review on developed Project Scope of Work
in contrast to engineering module (for every discipline) to validate the effectiveness and completeness of the Project
Scope of Work. In addition, Value Engineering should be carried-out during Project Design (FEED) Stage and chaired by
third party.
During FEED stage, any mismatch or discrepancies observed in the Drawings and Documents with respect to site
conditions by Engineering consultant shall be highlighted to the User Refinery/ LM, for coordination of necessary actions
to correct the mismatch / discrepancies highlighted.
KNPC
KNPC Team Leader of the contract will be approve Scope Management Plan and monitor & control the overall quality of
Project Scope Management during Project Lifecycle. In addition, assigned Team Leader of the Contract should ensure all
Project Scope Management templates are developed completely by assigned FEED Developer and checked/ approved by
owner representative prior to ITB final development.
EPC Contractor
The awarded EPC Contractor will responsible to maintain the Project Scope Management deliverables during Project
Implement Stage.
24
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.3.2 Project Scope Management Flowchart & Template
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Charter
Expert
Judgment
Scope
Management
Plan
Discussions &
Meetings
Requirements
Management
Plan
Plan Scope
Management
Projects Department
Processes, Procedures,
& Historical
Information
Note:
- Purple text refers to attached template.
-
Project End User should update required project drawings and documents as per latest revision/condition
Feasibility of tie-ins shall be critically reviewed and explore the possibility of executing tie-in during preconstruction
phase
25
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
WBS Structure: Describe the WBS Structure and whether it will be arranged using phase, geography, major deliverables, or some other way.
The guidelines for establishing control accounts and work packages may also be documented in this section
Scope Baseline Maintenance : Identify the types of scope changes that will need to go through the formal change control process and how
the scope baseline will be maintained
WBS Dictionary : Identify the fields that will be used in the WBS Dictionary and the level of detail needed
Scope Change: Describe how the changes to scope will be managed. This includes articulating the difference between a scope change and a
scope revision
Deliverable Acceptance : For each deliverable identify how that deliverable will be validated for customer acceptance, including any tests
or documentation needed for signoff
Describe how project and product requirements will be addressed in the Project Scope
Statement and WBS. Identify the integration points and how requirements and scope validation will take place.
26
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Analysis : Describe how the requirements will be analyzed for prioritization, categorization, and impact to product or product approach
Categories : Identify categories for requirements such as business, stakeholder, quality, etc.
Traceability Structure : Identify the information that will be used to link requirements from their origin to the deliverables that satisfy them
Tracking : Describe how often and what techniques will be used to tract progress on requirements
Reporting : Describe how reporting on requirements will be conducted and indicate the frequency
Validation : Identify the various methods that will be used to validate requirements such as inspection, audits, demonstration, testing, and so
forth
Documentation: Define how requirements will be documented. The format requirements documentation may range from spreadsheet to more
elaborate forms containing detailed descriptions and attachments
27
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.3.2 Project Scope Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main Process
Inputs
Scope Management
Plan
Interviews
Output
Deliverables
Focus Groups
Requirements
Management Plan
Facilitated
Workshops
Group Creativity &
Decision-Making
Techniques
Project
Design
(FEED)
Stage
Project Scope
Management
Collect
Requirements
Stakeholder
Management Plan
Questionnaire &
Surveys
List of
Requirements
Documentation
Observations
Prototypes
Benchmarking
Project Charter
Context Diagram
Stakeholder
Register
Document Analysis
Note:
- Purple text refers to attached template.
-
Slit Trenching and Soil Condition testing should be done at early project stages (during project Design (FEED) Stage)
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
28
29
Requirements
Stakeholder
Stakeholder's name. If
you do not have name
you can substitute a
position or organization
until you have more
information.
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Validation Method
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.3.2 Project Scope Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main
Process
Inputs
Tools &
Techniques
Scope Management
Plan
Expert Judgment
Product Analysis
Output
Deliverables
Project Scope
Statement
Project Charter
Project
Design
(FEED)
Stage
Project Scope
Management
Alternatives
Generation
Define
Scope
Requirements
Documentation
Facilitated
Workshops
Projects Department
Processes, Procedures,
& Historical
Information
Project
Documents
(Updates)
Note:
- Purple text refers to attached template.
-
30
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Product Scope Description : Document the characteristics of the product, service or result The information should be
progressively elaborated from the project description in the project charter and the requirements in the requirement documentation
Project Deliverables: Identify any unique and verifiable product, result, or capability to perform a service that must be produced to
complete a process, phase, or project. Deliverables include project management reports and documentation
Project Acceptance Criteria: Document the criteria that need to be sent In order for a stakeholder to accept a deliverable.
Acceptance criteria can be developed for the entire project or for each component of the project
Project Exclusions : Clearly define what is considered out of scope for the project
Project Constraints: Constraints are limitations. Constraints that can impact the project include a fixed budget, hard deliverables
due dates, or specific technology
Project Assumptions : Document those assumptions about deliverables, resources, estimates, and any other aspect of the project that
the team holds to be true, real, or certain, but have not validated
31
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.3.2 Project Scope Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Scope Baseline
Scope Management
Plan
Project Scope
Statement
Project
Design
(FEED)
Stage
Project Scope
Management
Create WBS
Decomposition
Project Acceptance
Plan
Expert Judgment
Project
Documents
(Updates)
Requirements
Documentation
Assumption &
Constraints Log
Projects Department
Processes,
Procedures, &
Historical
Information
WBS Dictionary
Scheduling Software)
Note:
-
PD Stand by Contract is responsible to clear the site before EPC Contractor contract commitment
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
32
Milestone
Review Date
Insert milestone
planned date for
completion of the
review
Deliverable
Name &
Description
List out & describe
key project
deliverables /
products (i.e. Work
Package, System
and Engineering
Doc.)
Review
Approach
Describe the review
method used to ensure
the deliverable /
product acceptance
criteria have been met
Required
Reviewers
Disciplines
List out all
disciplines
required to review
Acceptance
Date
Insert the planned
approval date for
acceptance of the
deliverable/
product by project
end user
Basis and Assumption : Describe the basis and assumptions used during the development of the Project Acceptance Plan
Risk : Identify any related Risks that might impact the acceptance of project deliverables by project end user
Criteria
Project Deliverable / Product
Criteria (Measures)
List out all agreed measures to ensure that the requirements of project deliverables
and products are met by project end user (i.e. time frame, quality measure, budget
amount, functional performance)
33
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
34
ID
Category
Assumption/Constraint
Identifier
The category
of the
assumption/
constraint
Responsible
Party
The person who is
tasked with
following up on the
assumption to
validate it as true
or not
Due Date
Actions
Status
Comments
The date by
which the
assumption
needs to be
validated
Any additional
information
regarding the
assumption or
constraint
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
WBS Level
35
Level 0
Level 1
Level 2
Level 2 of the WBS shall include the major phases for each portion of work
Level 3
Level 3 of the WBS shall constitute the disciplines under each phase:
Level 4
Level 4 of the WBS shall divide the disciplines further packages of work
Level 5
Level 5 of the WBS shall divide the work package further in deliverables
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Description of Work :
Code of Account :
Resource
Identify the
resources,
usually from the
resources
requirements
Labor
Hours
Enter the
total effort
required
Material
Rate
Enter the
labor rate
from cost
estimate
Total Cost
Total
Units
Cost
Total
Multiply the
efforts hours
times the labor
rate
Enter the
amount of
material
required
Multiply the
material units
times the
material cost
Schedule Milestones :
List of milestones associated and due dates for milestones
associated with work package
Quality Requirements :
Document quality requirements or metrics associated with the
work package
Acceptance Criteria :
Describe the acceptance criteria for the deliverable
Technical Information :
Describe or reference any technical requirements or
documentation needed to complete the work package
Agreement Information :
Reference any contracts or other agreements that impact the work
package
36
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
37
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.1 Project Schedule Management Guide
The Project Schedule Management Plan sets the format and establishes criteria for developing and controlling the Project
schedule. During Project Design (FEED) Stage, Schedule Management Plan is developed to describe how the awarded
EPC Contractor will be managing in the timeframe for the undertaken project.
Project Schedule Management will mainly consists of the following processes:
1. Plan Schedule Management
2. Develop Schedule
2.1. Define Activities
2.2. Sequence Activities
2.3. Estimate Activity Resource
2.4. Estimate Activity Durations
2.5. Finalize Schedule
3. Control Schedule (during project implementation)
Responsibility
FEED Developer
Project Design (FEED) developer is responsible to develop Schedule Management Plan & Project Schedule (up to level 5)
using tools and techniques as indicated in this guideline. FEED Developer should develop practical and realistic Project
Schedule using different tools and techniques.
KNPC
KNPC Planning Engineer will coordinate & review the schedule and KNPC Team Leader of the contract has overall
responsibility for the quality of Schedule Management process.
Developed resource estimate should be kept for KNPC use and not to be shared with the Bidders.
Team Leader of the contract should make sure the schedule verification is conducted by subject matter experts outside the
project team to have cold eye review.
EPC Contractor
Awarded EPC Contractor will be responsible to develop Project Schedule (level 6) and maintain Schedule Management
Plan during Project Implement Stage.
A Guideline to develop EPC Schedule during Project Design Stage by FEED developer
EPC Schedule:
Development of EPC schedule commences once the draft scope of work is ready; schedule should fully align with
Project WBS. Top down approach should be taken with identifying key milestones and major elements for works in
each WBS; sequence of work elements and respective position in project time line. Once agreement on higher-level
schedule is achieved, FEED developer will go through the process as mentioned in the subsequent section for
identifying, sequencing, estimating resource, estimating duration and finally developing the EPC schedule for
approval by KNPC.
Project Management Guideline and forms must be used while developing the above schedule in co-ordination with
assigned KNPC Planning Engineer and Project Management Team.
38
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.1 Project Schedule Management Guide (Contd.)
Following are Key Elements, which must be taken care during finalization of EPC Schedule.
39
Project critical construction activities shall be identified during Project Design Stage (i.e. activities that are
resource or time based).
FEED developer is allowed to use historical data of past Projects of similar size and type from his archive;
preference is given to inputs from contemporary projects that he might be executing now or have done in
recent past. As every Project is unique, hence effort must be paid on critical and unique part of scope.
Due importance to be given in identifying, listing and scheduling Project Management deliverable related to
implementation of Project Management Guideline (Project Management Plan) for project implementation.
Detailed milestone schedule shall be developed by identifying and grouping milestones, naming them clearly
for start or finish of key activities.
WBS must be fully aligned with Project Management Plan giving due consideration of different work
packages.
Agree and finalize project Calendars for different phases of Project. (e.g. Engineering 5 days week,
Construction 6 days week, Shipping 7 days week, Commissioning 7 days week) indicating International /
national holidays, Ramadan / summer period for Construction.
Avoid including long duration level of effort activities in the schedule as these will mask the Critical path
and hinder Critical path analysis.
Keep the activities longer than 4 weeks duration to a bare minimum, activities in Manufacturing / Shipping
portion of schedule can be of long durations. This is essential to use the schedule as a controlling tool. Long
duration activities will mask the real critical path.
Plan Modularization and Fabrication in line with the project execution philosophy and WBS where
applicable.
Utilize the current shutdown windows of KNPC for schedule the tie-ins and if required making provision for
early Engineering and Procurement for this work. Issue EPC Schedule for review to relevant refinery
(stakeholders) also in order to get their early buy-in.
Include site clearance activities in the scope of EPC Contractor.
Review the interdependency schedule for ongoing Projects of KNPC and align project schedule to take
advantage of Shut-down/Tie-in opportunities.
Identification, Estimation and Loading of Resources e.g. Engineering Man-hours, Construction Man-hours
and Commodities, Pre-Commissioning and Commissioning Man-hours must be done.
Once the Schedule is ready, organize Schedule Workshop to quickly freeze the schedule by incorporating all
agreed comments.
Development of Project S-Curve and Manpower histogram must be based on agreed EPC Schedule.
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Project Schedule
Management
Main Process
Inputs
Tools &
Techniques
Project Management
Plan
Expert Judgment
Project Charter
Analytical
Techniques
Output
Deliverables
Schedule
Management
Plan
Plan Schedule
Management
KNPC Polices &
Practices
Projects Department
Processes,
Procedures, &
Historical
Information
Discussions &
Meetings
Note:
- Purple text refers to attached template.
-
40
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Schedule Tools : Identify the scheduling tools that will be used for the project. Tools can include scheduling software, reporting
software, earned value software (e.g. P6, Microsoft Project, Microsoft Office, Pert Master).
Schedule Controlling Process : Document frequency of schedule update and planned schedule revision
Schedule Assumptions (Basis): Describe any Assumptions for durations/ resources to create schedule. Also list down Project
Constraint, Schedule Calendar, Shutdown window, Contractual milestones etc.
41
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main Process
Inputs
Schedule
Management Plan
Decomposition
Output
Deliverables
Critical Activity
List
(with Attributes)
(To be derived using
Scheduling Software)
Scope Baseline
Project
Design
(FEED)
Stage
Project Schedule
Management
Rolling Wave
Planning
Define
Activities
KNPC Polices &
Practices
Projects
Department
Processes,
Procedures, &
Historical
Information
Expert Judgment
Project
Milestone List
(To be derived using
Scheduling Software)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
42
Activity
ID
Activity
Description
Unique
identifier at
Activity
Level
Use this
section to
provide
activity
description
Start Date
Finish Date
Predecessors Successors
Logical
Logical
Relationship Relationship
Lead or Lag Lead or Lag
Resource ID
/ Name
Resource
Unit
Unique
Identifier
The amount of
the resource
needed for the
activity
Primary
Constraint
Date
Any other
User
Defined
Data
Milestone ID
Milestone Description
Unique Identifier at
WBS Level
Milestone identifier
that uniquely
describes the
milestone
Start / Finish
Date Milestone
Plan Date during
Project Design
Stage
Type
44
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main Process
Inputs
Schedule
Management Plan
Precedence
Diagraming Method
(PDM)
Critical Activity
List
Critical Activity
Attributes
Project
Design
(FEED)
Stage
Dependency
Determination
Output
Deliverables
Project
Schedule
Network
Diagrams
(To be derived using
Scheduling
Software)
Milestone List
Project Schedule
Management
Sequence
Activities
Project Scope
Statement
KNPC Polices &
Practices
Leads & Lags
Project
Documents
(Updates)
Projects
Department
Processes,
Procedures, &
Historical
Information
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
45
46
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Schedule
Management Plan
Expert Judgment
Critical Activity
List
Critical Activity
Attributes
Resource Calendars
Project
Design
(FEED)
Stage
Project Schedule
Management
Estimate
Activity
Resources
Activity Resource
Assignments
Alternative
Analysis
Published
Estimating Data
Risk Register
Activity Cost
Estimates
Output
Deliverables
Resource
Register
Bottom Up
Estimating
(To be derived
using Scheduling
Software)
Project
Management
Software
Project
Documents
(Updates)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
47
48
WBS ID
Activity ID
Unique
Identifier
Unique identifier
at Activity Level
Activity
Description
Use this section to provide activity
description
Start Date
Finish Date
Resource ID /
Name
Unique Identifier
FEED developer to finalize the forms as per specific project requirement and put reference numbers
Resource Unit
The amount of the
resource needed
for the activity
49
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main
Process
Tools &
Techniques
Output
Deliverables
Expert Judgment
Activity
Duration
Estimates
Inputs
Schedule Management
Plan
Activity List
Activity Attributes
Analogous
Estimating
Activity Resource
Requirements
Resource Calendars
Project
Design
(FEED)
Stage
Project Schedule
Management
Estimate
Activity
Durations
Parametric
Estimating
Project Scope
Statement
Risk Register
Three Point
Estimating
Resource Breakdown
Structure
Group Decision
Making Technique
Project
Documents
(Updates)
Reserve Analysis
Note:
-
Minimum of three schedule estimation methods (tools) shall be used to estimate critical activities for level 5 EPC
schedule by FEED Developer and level 6 EPC schedule by EPC Contractor.
50
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Effort Hours
Resource Quantity
% Available
Unique Identifier
Performance
Factor
Duration
Estimate
Estimate a
Performance factor if
appropriate
Previous
Activity
Previous
Duration
Current
Activity
Multiplier
Enter a description
of the previous
activity
Document the
duration of the
previous activity
Duration
Estimate
Multiply the
duration for the
previous activity by
the multiplier to
calculate the
duration estimate
Optimistic
Duration
Most Likely
Duration
Pessimistic
Duration
Weighting
Equation
Determine an
optimistic duration
estimate
Determine a most
likely duration
estimate
Determine a
pessimistic
duration
estimate
Weight the
three
estimates
and divide
FEED developer to finalize the forms as per specific project requirement and put reference numbers
51
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.4.2 Project Schedule Management Flowchart & Template (Contd.)
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Project
Schedule
Management
Main
Process
Finalize
Schedule
Inputs
Schedule Network
Analysis
Output
Deliverables
Schedule Baseline
Project Schedule
Project Schedule Network
Diagrams
Resource
Optimization
Technique
Modeling Techniques
Activity Resource
Requirements
Resource Calendars
Activity Durations
Estimates
Schedule
Compression
Risk Register
Project Staff Assignments
Resource Breakdown
Structure
Critical Activity
Attributes &
Resource
Requirements
(Update)
Project
Management
Plan (Updates)
Scheduling Tools
Project
Documents
(Updates)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
52
53
54
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.1 Project Cost Management Guide
Project Cost Management is defined as a method used to identify cost for all required project resources (Labor,
equipment, material, and administration costs).
Project Cost Management consists of the following main processes:
1.
2.
3.
4.
Responsibility
FEED Developer
Project Design (FEED) developer is responsible to develop Cost Management Plan and Project Cost Estimate using tools
and technique as per attached Flowchart.
KNPC
KNPC Costing Engineer will review Cost and KNPC Project Team Leader of the Contract has overall responsibility for
the quality of Cost Management Process.
Developed Cost Estimate should be kept for KNPC use and not to be shared with awarded EPC Contractor.
Team Leader of the Contract should make sure that cost verification is conducted by third Party as a cold eye review at
the end of the Project FEED Stage or in case of major projects, after analyzing all the assumptions and risk factors, FEED
Consultant should determine contingency by utilizing @ risk software.
EPC Contractor
Awarded EPC Contractor shall report monthly cash forecasts and CAPEX spent locally to KNPC Project Team.
The FEED Developer shall prepare project cost estimate in line with following AACEI (Association for Advancement of
Cost Engineering International) Recommended Practices (RPs) to establish budget for project implementation, after
conducting Feasibility study and Front End Engineering Design (FEED), and to ascertain how expected funding (Base
line S-Curve template) will be spent during execution:
18R-97 Cost estimate classification system as applied in engineering, procurement & construction for process
industries.
34R-05 Basis of Cost Estimate
38R-06 Development of cost estimate plans
Following table highlights some of the key aspects of recommended practices, which the FEED Developer should comply
while estimating cost of a project.
55
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.1 Project Cost Management Guide (Contd.)
Key Aspects
Estimate classification
Estimate approach
Description
Feasibility Study
Class 4
Front End Engineering Design
Class 3
Feasibility Study
-30% to +50%
Front End Engineering Design (FEED)
-20% to +30%
Note:
The FEED Developer shall predict accuracy of estimate based on project scope
definition within above stated ranges, and present it as +/- percentage around base
estimate with stated confidence level of actual cost falling within quoted range.
Feasibility Study
Top-down / Bottom-up
Front End Engineering Design (FEED)
Bottom-up
Work package level (WBS)
Tagged items with quantity and unit cost
Work packages with quantity and unit cost
Recommended practice
Feasibility Study
Equipment factored or parametric models
Front End Engineering Design (FEED)
Semi-detailed unit cost with assembly level line items
Standard cost data sources :
Historical, In-house
Richardson Cost Estimating Standards for process industries.
Vendor price lists
Budgetary quotations
Recommend to utilize Aspen Capital Cost Estimation Software (ACCE) for Class 4
& Class 3 estimates of process units, suitably customized for local conditions.
Note:
Input for estimates often comes from person(s) most familiar with the scope and type of
work.
In addition, estimating always involve assumptions and guesses.
Thus, it is important not to rely solely on one source but if possible obtain estimates
from multiple sources and utilize three-point estimating technique for best estimate.
56
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.1 Project Cost Management Guide (Contd.)
Key Aspects
Location factor
Allowances
Escalation
Templates
Estimate structure
Contingency
Documentation
57
Description
Depending on cost data sources for the estimate, it is important to adjust the cost
from one geographical location to location of project site.
Location factors include productivities, labor rates, freight, taxes, duties, construction
equipment rentals, concrete-mix rates, reinforcement bar rates, field indirect,
governmental regulations etc.
Make allowances for known-unknowns in the base estimate. Such as:
Cut & waste
Material takeoff
Design growth
Market forces
Make provision for anticipated change in estimated cost due to inflation at the time
placement of orders / award of contracts.
Popular cost indices applicable for process plants:
Chemical Engineers Plant Cost Index (CEPCI)
Nelson-Farrar Cost Index
Templates included in the Project Management Guideline:
Cost Management Plan
Cost Estimating Worksheet
Bottom-up Cost Estimating Worksheet
Summary Cost Estimate
Cost Baseline (Project S-Curve)
Structuring of summary estimate, under following heads, is recommended to
analyze and establish cost ratios for future references.
Direct Field Costs
Indirect Field Costs
Contractor Home Office Costs
Contractor Other Costs
Owner costs
Contingency for large size projects should be determined by utilizing @ Risk Software
after conducting cost and schedule risk analysis.
Documentation of estimate related information / details /back-up data is extremely
important and a key deliverable, which should cover / include but not limited to
the following:
Project background
Purpose of estimate
Project scope in brief
Cost management plan
Basis of estimate
Allowances
Contingency
Escalation
Assumptions
Exclusions
Estimate work sheets with quantity takeoff
Estimate summary sheet
Cost Baseline S-curve
Quotations, etc.
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.1 Project Cost Management Guide (Contd.)
Key Aspects
Description
It is a good practice to get the estimates reviewed by a competent third party for any
omissions / commissions.
Unit rates for potential After completion of front-end engineering, the FEED Consultant shall identify potential
changes / additional works changes / additional works that EPC Contractor may encounter during execution and
during execution by EPC provide scope description of such items with estimated unit rates.
Contractor
The list of these items with estimated unit rates and quantities shall be included in ITB
and request bidder to quote his margin applicable for all the items. In case of any
changes / additions, the Contractor receives payment as per the rate given in the
Contract plus his margin.
This will help in controlling unreasonable rates quoted by the Contractor for changes /
additions.
Increase in contract price Based on level of scope definition at FEED stage, the Feed Consultant shall provide
due to change in quantity of expected change in quantities of major items such as Pipe & Pipe fittings, Cables,
major items from FEED to Valves, Structural, MCC Feeders etc., to establish threshold limits.
Detailed Engineering
58
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.3 Project Cost Management Flowchart & Template
Project
Stage
Project
Management
Function
Main
Process
Inputs
Project
Management Plan
Expert Judgment
Output
Deliverables
Project Charter
Project
Design
(FEED)
Stage
Analytical
Techniques
Project Cost
Management
Plan Cost
Management
Projects
Departments
Processes,
Procedures and
Historical
Information
Cost
Management
Plan
Meetings
Note:
-
59
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Units of measure :
Control Thresholds :
Rules for Performance Measurement : Identify the level in the WBS where progress and expenditures will be measured
Cost Reporting and Format : Document the cost information required for status and progress reporting
Process Management :
Estimating costs Indicate the estimating techniques
that will be used to arrive at cost estimates (Analogues,
Parametric or Three point estimate)
Developing the budget Document how the project
baseline will be developed. Include information on how
contingency and management reserve will be handled
Updating, monitoring and controlling
Document the process for updating the budget, including
update frequency, permissions, and version control.
Indicate the guidelines for maintaining baseline integrity
and re-base-lining if necessary
FEED developer to finalize the forms as per specific project requirement and put reference numbers
60
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.3 Project Cost Management Flowchart & Template (Contd.)
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Project Cost
Management
Main Process
Estimate
Costs
Inputs
Output
Deliverables
Cost Management
Plan
Expert Judgment
Cost Estimation
Worksheet
Human Resources
Management Plan
Analogues Estimating
Scope Baseline
Parametric
Estimating
Project Schedule
Three-point
Estimating
Risk Register
Bottom-up Estimating
Reserve Analysis
Basis of
Estimates
Cost of Quality
Projects
Departments
Processes,
Procedures and
Historical
Information
Project Management
Software (Historical
Data)
Project
Documents
(Updates)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
61
Cost Variable
Number of Units
Cost Estimates
Analogous Estimates
WBS ID
Previous
Previous Cost
Current Activity
Multiplier
Cost Estimate
Unique WBS
Identifier
Enter the
description of
previous activity
Optimistic Cost
Unique WBS
Identifier
Determine an
optimistic cost
estimate
Most Likely
Cost
Determine a most
likely cost estimate
Pessimistic Cost
Determine a
pessimistic cost
estimate
Weighting
Equation
Expected Cost
Estimate
FEED developer to finalize the forms as per specific project requirement and put reference numbers
62
10
11
12
WBS ID
WBS Description
Unit
Qty
Unique WBS
Identifier
Unit
adopted to
quantify
volume
Estimated
work volume
or extent
Labor
Hour
Labor
Rate
Material
Rate
Material
Price
Total
Price
Average
direct
labor cost /
man-hour
Unit rate
of direct
materials
Direct
material
price
Construction
Equipment
cost, etc.
Other
Expenses
Estimated
direct labor
man-hours
Labor
Price
Overheads
and Profit
(Labor +
Material +
Others)
Labor
Hour x
Labor Rate
Note :
For Engineering Columns 8, 9, 10 are not applicable.
For Procurement Column 10 is not applicable.
FEED developer to finalize the forms as per specific project requirement and put reference numbers
63
Sr.No.
Item Description
Key
Qty
Unit
Labor
Estimated Cost
Sub
Supply
Contract
Total
% of
EPC
64
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.5.3 Project Cost Management Flowchart & Template (Contd.)
Project
Stage
Project
Management
Function
Main
Process
Inputs
Output
Deliverables
Cost Management
Plan
Cost Aggregation
Cost Baseline
(S-Curve)
Scope Baseline
Reserve Analysis
Activity Cost
Estimates
Expert Judgment
Basis of Estimates
Project
Design
(FEED)
Stage
Project Cost
Management
Determine
Budget
Project Schedule
Project
Funding
Requirements
Historical
Relationship
Resource Calendars
Risk Register
Agreements
Projects
Departments
Processes,
Procedures and
Historical
Information
Funding Limit
Reconciliation
Project
Documents
(Updates)
Note:
-
Unit Rates for Scope Changes shall be restricted to potential Scope change items customized for the project including
indication and quantities
65
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Sample
Sample
66
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
67
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.6.1 Project Quality Management Guide
Project Quality Management is a process used to ensure that the quality of the project deliverables and products are as per
stated standards and requirements through implementation of effective Quality Assurance & Quality Control.
During Project Design (FEED) Stage, the Quality Management Plan will be developed in order to ensure the quality of the
project deliverable and quality of management processes that will be undertaken by awarded EPC (Contractor) during
Project Implement Stage.
Quality Management Plan will attached to the ITB tender document as it will provide detail information on the following:
- Role & Responsibility of the Quality Manager assigned by awarded EPC Contractor
- Project Quality Assurance, Control & Improvement approaches
- Quality Targets
Project Quality Management is mainly consists of the following processes:
1. Plan Quality Management
2. Perform Quality Assurance
3. Control Quality
Responsibility
FEED Developer
- Quality Management Plan will be developed by Project Design (FEED) developer during Project Design Stage.
KNPC Team Leader of the Contract will be monitoring and controlling the Quality Management processes during
Project Design (FEED) and Implement Stages.
- To better ensure effective Project Management within EPC Contractor Project Team, Quality Targets should be
developed and maintained during Project Design (FEED) Stage for every Project Management Function.
KNPC
-
Dedicated KNPC QMS Engineer will be assigned to the Project to coordinate all QA issues during Project Design
& Implement Stages. KNPC QMS Engineer will make sure that all internal & external Quality Audits are
conducted effectively and all audit findings are attended within 21 days.
In order to handle all quality functions, at least one dedicated QMS Engineer/ Coordinator shall be available in
each Project Division. Additional QMS Engineers/Coordinators shall be also included in the WER based on the
complexity & size of the Capital Projects handled by the Project Division.
Project Management peer review should be conducted within KNPC by a team of competent subject matter expert
minimum every six (6) months on all Project Management Function during Project Design (FEED) and
Implementation Stages.
To better ensure effective Project Management within KNPC Project Coordination Group, Project Quality
Measure should be introduced and Project Management Score Card for Design & EPC Stages to be developed
internally and maintained on quarterly basis by KNPC Project Team.
EPC Contractor
- Awarded EPC Contractor is responsible to implement Quality Management Plan, perform Quality Assurance, and
Control Quality.
- EPC Contractor should conduct internal Project Management Audit for every Project Management Function on
quarterly basis and report should be approved by KNPC.
68
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.6.2 Project Quality Management Flowchart & Template
Project
Stage
Project
Design
(FEED)
Stage
Project
Management
Function
Project
Quality
Management
Main
Process
Plan Quality
Management
Inputs
Output
Deliverables
Project Management
Plan
Cost-benefit
Analysis
Quality
Management
Plan
Stakeholder Register
Cost of Quality
Quality Targets
Risk Register
Process Review
Form
Requirements
Documentation
Benchmarking
Design of
Experiments
Projects
Departments
Processes,
Procedures and
Historical
Information
Statistical Sampling
Deliverable
Review Form
Project
Document
(Updates)
Meetings
Note:
-
69
1.
1.
2.
2.
3.
3.
4.
4.
role
Quality Planning Approach : Document the approach that will be used to plan quality for the project and deliverable
Quality Assurance Approach : Document the approach that will be used to manage the quality process
Quality Control Approach : Document the approach that will be used to measure the product and the project performance to ensure the project
deliverable meets the quality specification identified in the plan
Quality Improvement Approach : Document the approach that will be used to continuously improve quality for the project, process and
product
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
70
Project Deliverable
Quality Criteria
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
71
Quality Standard
Quality Achieved
Quality Criteria
Quality Level
Quality
Deviation
72
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Improvement Recommendation
Quality Achieved
Project
Deliverable
Quality
Criteria
Quality
Standards
Quality Level
Quality
Deviation
73
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Improvement Recommendation
74
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.7.1 Project Human Resource Management Guide
Project Human Resource Management identifies all resources required during Project Implementation Stage. During
Project Design Stage, Human Resource Management Plan is developed to address the detail of the following:
- Role, Responsibilities, Authority of EPC Contractors' Key Personnel
- Any requirements for Organization Structure of EPC Contractor
- Staffing Management Plan
Human Resource Management consists mainly of the following processes:
1. Plan Human Resource Management
2. Acquire Project Team
3. Develop Project Team
4. Manage Project team
Responsibility
FEED Developer
Project Human Resource Management Plan should be developed by FEED Developer during Project Design Stage using
the attached template and the assigned KNPC Team Leader of the Contract is responsible to monitor and control the
development of this document during Project Life Cycle.
KNPC
WER monitoring should be introduced as Quality Measure in Project Management Scorecard.
Team Leader of the Contract is responsible to monitor and update of WER for KNPC Staff on quarterly basis. In addition,
Team Leader of the Contract should add contract clause regarding having the right for KNPC to interview and accept EPC
Key Personnel after signing EPC Contract.
EPC Contactor
EPC Contractor have to develop responsibility matrix for each key personnel. Project Human Resource Management Plan
should be attached to ITB in order to have the EPC Contractor meet the requirements and maintain the document after the
contract award.
75
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.7.2 Project Human Resources Management Flowchart & Template
Project
Stage
Project
Management
Function
Main Process
Inputs
Project Management
Plan
Organization Charts
and position
descriptions
Activity Resource
Requirements
Project
Design
(FEED)
Stage
Project
Human
Resource
Management
Plan Human
Resource
Management
Networking
Organization Theory
Output
Deliverables
Human
Resource
Management
Plan for EPC
Stage
Responsibility
Assignment
matrix
Expert Judgment
Roles and
Responsibility
of Key
Personnel
Projects Departments
Processes, Procedures
and Historical
Information
Meetings
Note:
-
During project demobilization/transfer, succession plan should be considered for PMC, EPC key personnel and KNPC
Staff in systematic and progression way.
76
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Role
Head
Count
HUMAN RESOURCE MANAGEMENT PLAN FOR EPC CONTRACTOR DURING EPC STAGE
Roles, Responsibilities, and Authority of EPC Contractor Key personnel
Period Required
Role
as per Manpower
Level
Nationality
Classific Category
Responsibility
Authority
Budget Details
Report
/Grade
Preference
ation
From
Date
To Date
Staff Release Document how TPC Contractor staff members will be released from team,
including knowledge transfer, check-out procedures for staff and outsourced team members
Regulations, Standards, and Policy Compliance : Document any regulations, standards, or policies that must be used and how compliance will be demonstrated
Assumptions: List any assumptions made during this Resource Planning exercise. (Example: Project delivery dates will not change during this project, Resource requirements will not
change during this project, Resources identified will be available as required.)
Risks: List any risks identified during this Resource Planning exercise. Example include: (Examples : That key staff resign during the project, That further training is required to complete
the tasks allocated , That budget constraints lead to inferior resources being allocated)
77
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
RESPONSIBILITY ASSIGNMENT MATRIX FOR EPP CONTRACTOR STAFF DURING EPC STAGE
Resource 1
Work Package 1
Work Package 2
Work Package 3
Work Package 4
Etc.
Resource 2
Resource 3
Sample
R
Resource 4
Etc.
A
R
78
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
ROLES AND RESPONSIBILITIES FOR EPC CONTRACTOR KEY PERSONNEL DURING EPC STAGE
Roles : Define the key role for each personnel
Responsibility : Define the activities that the role carries out and the nature of the contribution to the final product
Qualifications : Describe any prerequisites, experience, license, or other qualifications necessary to fulfill the role
Competencies: Describe specific role or job skills and competencies. May include details on languages, technology, or other information
necessary to complete the roles successfully
Authority: Describe the authority for each personnel given (Approvals of document, Initials of documents) and required (gate pass, access
details etc.)
Project / Work Interface : Specify all the people that the role will be interfacing with (i.e. EPC, Contractors, FEED Developers etc.)
segmented in internal or external
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
All gate pass and site requests / clearance pre-requisites have to be submitted at-least 3-4 weeks in advance to
the Project manpower plan start date.
79
80
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.8.1 Project Communications Management Guide
Project Communications Management is mainly about identification of communication approach that EPC Contractor will
use to communicate within the project and with Project Key Stakeholder during Project Implement Stage. It describes
receivers, type of information, and frequency of communications. In addition, it addresses how decisions, issues will be
managed.
Project Communications Management mainly consists of the following processes:
Plan Communications Management
Manage Communications
Control Communications
Responsibility
FEED Developer
It is the responsibility of Project Design (FEED) developer to develop the Communications Management Plan using
attached tools & techniques. Developed Project Communications Management should be attached to ITB in order for the
assigned EPC Contractor to maintain during Project Implement Stage.
In addition, assigned Project FEED Developer will set out the basis for creating Project Communications Management
and do necessary analysis to describe strengths, weakness, opportunities and threats exist within KNPC communications
environment in order to develop effective Project Communications Management Plan.
KNPC
KNPC Team Leader of Contract will oversee the Communications to ensure the effective release of all communications
material during entire Project Lifecycle.
EPC Contractor
Awarded Project EPC Contractor is responsible to implement & maintain Project Communications
Management according to earlier developed Communications Management Plan.
81
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.8.2 Project Communications Management Flowchart & Template
Project
Stage
Project
Management
Function
Main Process
Inputs
Project
Management
Plan
Tools &
Techniques
Communications
Requirements
Analysis
Communications
Technology
Project
Design
(FEED)
Stage
Project
Communications
Management
Plan
Communications
Management
Stakeholder
Register
Communications
Models
KNPC Polices
& Practices
Communications
Methods
Projects
Departments
Processes,
Procedures and
Historical
Information
Output
Deliverables
Communications
Management
Plan
Project
Documents
(Updates)
Meetings
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
82
Information
Channels
Timing or
Frequency
List how often the
information is to be
provided
Assumptions
Constraints
Sender
Insert the name of the
person or the group that
will provide the
information
Risks: List any risks identified during the creation of this Communications Plan. (For Example : Key communications resources leave during the
project, The requirements of communications change during the project, The list of project stakeholders changes throughout the project)
Decision Approach : Describe how the decision will be taken and recorded
Issue Approach: Describe how the issues will be resolved and recorded
FEED developer to finalize the forms as per specific project requirement and put reference numbers
83
84
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.9.1 Project Risk Management Guide
Project Risk Management is an approach to forecast any future potential issue or opportunity is officially identified,
quantified and managed. Project Risk Management consists of the following main processes:
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Control Risks
Responsibility
FEED Developer
Project Design (FEED) developer is responsible to develop Project Risk Management Plan and conduct Project Risk
Assessment to identify potential Risks at early project stage and set a mitigation plan accordingly.
KNPC
KNPC Team Leader of the Contract should assign dedicated Risk Coordinator to coordinate both Project Risk during
Project Design & Implement Stages. In addition, Team Leader of the Contract is responsible to carry out monthly Risk
Assessment session during Project FEED and Implement Stages also ensure every identified Risk Factor should have a
comprehensive risk response.
EPC Contractor
Awarded EPC Contractor should further develop and implement Project Risk Management as per earlier developed Risk
Management Plan. Noting that Risk review workshop should be conducted every 3 months internally (by awarded EPC
Contractor &project team) and externally by KNPC Subject Matter Experts in order to validate Risk Management
effectiveness.
85
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.9.2 Project Risk Management Flowchart & Template
Project
Stage
Project
Management
Function
Main Process
Inputs
Project
Management Plan
Output
Deliverables
Analytical Techniques
Risk
Management
Plan
Probability &
Impact
Assessment
Project Charter
Expert Judgment
Project
Design
(FEED)
Stage
Project Risk
Management
Plan Risk
Management
Stakeholder
Register
Risk Register
Discussions &
Meetings
Critical Risk
Form
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
86
Roles and Responsibilities : Document the roles and responsibilities for various risk management activities
Risk Categories : Identify categorization groups used to sort and organize risks
Risk Management Funding : Document the funding needed to perform the various risk management activities, such as utilizing expert
advice or transforming risks to a third part
Contingency Protocols : Describe the guidelines for establishing, measuring, and allocating both budget contingency and schedule
contingency
Frequency and Timing : Document the frequency of conducting formal risk management activities and the timing of the specific activities
Stakeholder Risk Tolerances: Identify the risk tolerance levels of organization(s) and key stakeholders on the project with regard to each
objective. Cover at least scope, quality, schedule, and cost objectives
Risk Tracking and Audit: Determine how risk management activities such as quantitative risk analysis and contingency management will
be documented and tracked. Describe how often risk management process will be audited, which aspects will be audited, and how the
discrepancies will be addressed
FEED developer to finalize the forms as per specific project requirement and put reference numbers
87
Probability
Impact
Threat
Cost KD
Time
Wks/
Month
> 20%
> 20%
-1
Cost KD
Time
Wks/
Month
Exceptional
> 20%
> 20%
Opportunity
Highly
probable
>80%
Catastrophic
Probable
61%-80%
Critical
10% - 20%
10% - 20%
-2
Very
Substantial
10% 20%
10% - 20%
As likely as
not
41%-60%
Serious
5% - 10%
5% - 10%
-3
Substantial
5% - 10%
5% - 10%
Coud
happen
21%-40%
Marginal
< 5%
< 5%
-4
Significant
< 5%
< 5%
Improbable
1%-20%
Insignificant
0%
0%
-5
Minor
0%
0%
-4
-3
-5
-2
-1
Impact
Opportunities
Threats
Priority Bands
Highly probable
Probable
As likely as not
Coud happen
Very High
High
Medium
Low
Improbable
Click here to download this template.
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
88
Very Low
1
2
3
4
5
6
7
8
9
10
89
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
Priority - Post
Impact Time
Impact Scope
Probability
Response
Strategy
Summary
Post (Qualitative)
Risk Review
Date
Priority
Current
Impact Time
Impact Cost
Probability
Risk Status
Risk
Description
Risk Owner
Risk
Title
Date Raised
Risk ID
Current (Qualitative)
CRITICAL RISK DATA SHEET FORM FOR DESIGN AND EPC STAGES
Risk ID Enter a unique identifier
Probability
Impact
Score
Responses
Determine the
likelihood of the event
or condition occurring
Revised
Probability
Determine the likelihood
of the event or condition
occurring after the
response has been
implemented
Cost
Revised Impact
Describe the impact once the response has been
implemented
Cost
Revised
Score
Responsible
Party
Identify the
person
responsible for
managing the
risk
Actions
Describe any actions that
need to be taken to
respond to the risk
Contingency Plan Develop a plan that will Contingency Funds Determine the funds Contingency Time Determine the time
be initiated if specific events occur, such as
missing an intermediate milestone. Contingency
plans are used when the risk or residual risk is
accepted
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
90
91
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.10.1 Project Procurement Management Guide
Project Procurement Management is document developed in order to describe requirements related to all products and
services that will be outsourced during Project Implement Stage in order to allow EPC Contractor to submit an
accurate bid and to smooth procurement cycle during Project Implementation Stage.
Procurement Management Plan will be developed by Project Design (FEED) Stage and will mainly addresses the
following main items:
- Role & responsibility of KNPC Team Leader of the Contract
- Role & responsibility of the EPC Contractor Procurement representative
- Procurement Main Deliverable
- Detail of Purchase Orders requirements
Procurement Management consists of the following main processes:
1. Plan Procurement Management
2. Conduct Procurement
3. Control procurements
4. Close Procurements
Lessons Learned should be recorded from PMT, FEED Consultant and EPC Contractor and reported periodically.
Responsibility
FEED Developer
Project Design (FEED) developer is responsible to develop Project Procurement Management Plan and identify project
long lead items.
KNPC
KNPC Team Leader of the Contract will be monitoring and controlling the Procurement Management Process to
ensure that the undertaken process is efficiently by ensuring the following:
-
EPC Contractor
Awarded EPC Contractor should further develop and implement Project Procurement Management Plan as per earlier
developed Procurement Management Plan. EPC Contractor shall place and manage all Purchase Orders required to
complete their scope for the Project. EPC Contractor shall be responsible to verify the financial status prior to sourcing
the material / services.
92
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.10.1 Project Procurement Management Guide (Contd.)
Guidelines for ITB Preparation
Initiation of ITB Preparation Process
Inconsistency among different Project Teams as well anomalies while drafting ITB document. In order to avoid
anomalies in preparation of ITB documents, conduct awareness workshop for PMT for relevant ITB document to
emphasize on how to draft various Sections / Parts / Exhibits of ITB document in a structured as well consistent
manner to avoid anomalies including feedback based on lessons learned.
ITB Formulation
ITB document shall encapsulate the following:-
Ensure all such issues relevant to the Project which may have potential impact on Bidder's quote are duly
addressed in draft ITB document under Instructions to the Bidders for Bidders information, enabling them to
consider the same in their Bid price. Compile a list of such issues and use the same appropriately while
drafting new ITB documents, in future.
PMT members must familiarize themselves with all GCC clauses and terms.
Ensure that all specific issues related to the Project which are not addressed in GCC clauses, are duly
addressed under Particular Conditions of the Contract by either amending GCC clauses or adding new
clauses. In addition, compile such Particular Conditions which may be utilized, if so applicable, for future
Projects ITBs.
The Scope of Work to be defined clearly and specifically without using any generic terms using a structured
templates for defining the Scope of Work Exhibit, so that the Scope of Work for every Project could be
defined precisely in the same manner.
Only a comprehensive FINAL FEED document should form part of the ITB document. As FEED document
should be reviewed / verified comprehensively prior to its inclusion in ITB.
List all relevant backup supporting technical specifications, standards and the like documents / drawings etc.
and ensure their inclusion in ITB document squad check (PMT).
Verification to ensure that all ITB drawings reflect As-build status. In the event Refineries have carried out any
modification works, they should notify Projects Department in order to ensure as built drawings are updated.
Contract Administrative & Coordination Procedures included in ITB document should be clear, specific and
detailed without any ambiguities.
93
Avoid inclusion of unnecessary long list of Schedule of Unit Rates for Scope changes.
Part I: Project Design (FEED) Stage Project Management Plan for EPC Stage
1.10.2 Project Procurement Management Flowchart & Template
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Make-or-Buy
Analysis
Procurement
Management
Plan
Expert
Judgment
Procurement
Statement of
Work
Project
Procurement
Management
Plan
Procurement
Management
Procurement
Documents
Project Schedule
Market
Research
Activity Cost Estimates
Source
Selection
Criteria
Stakeholder Register
Make-or-Buy
Decisions
Meetings
Change Order
Project
Documents
(Updates)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
94
1.
1.
2.
2.
3.
3.
Standard Procurement Documents List any standard procurement forms, documents, polices, and procedure relevant to procurements
1.
2.
3.
Contract Type : Identify the contract type, incentive, or award fees and the criteria for such fee
Bonds and Insurance Requirements : Define bonding or insurance requirements that must be met by Bidders
Criteria
Procurement Assumptions and Constraints : Identify document relevant assumptions, and constraints related to the procurement
process
FEED developer to finalize the forms as per specific project requirement and put reference numbers.
-
95
96
97
2.1
99
2.2
103
2.3
106
2.4
109
2.5
123
2.6
125
2.7
127
2.8
132
2.9
135
2.10
141
98
Project
Stage
Project
Management
Function
Main Process
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Expert
Judgment
Deliverables
Approved Change
Orders
Project
Management
Information
System
Work
Performance
Data
Inputs
Project
Implement
(EPC)
Stage
Project
Integration
Management
Direct and
Manage
Project Work
Change Order
Meetings
Projects Departments
Procedures and
Practices
Project
Management
Plan
(Updates)
Project
Documents
(Updates)
Note:
-
99
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project
Integration
Management
Main Process
Monitor &
Control
Project Work
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Expert Judgment
Change Order
Schedule Forecasts
Analytical
Techniques
Work
Performance
Data
Cost Forecasts
Project
Management
Information
System
Project
Management
Plan
(Updates)
Meetings
Project
Documents
(Updates)
Approved Change
Order
Work Performance
Information
KNPC Policies and
Procedures
Projects Departments
Procedures and
Practices
Note:
-
100
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Expert
Judgment
Approved
Change
Order
Monthly Progress
Reports
Discussion &
Meetings
Change Log
Change Order
Project
Implement
(EPC)
Stage
Project
Integration
Management
Perform
Integrated
Change
Control
Project
Management
Plan
(Updates)
Projects Departments
Procedures and
Practices
Project
Documents
(Updates)
Note:
-
101
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
102
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Stakeholder
Management Plan
Communication
Methods
Issue Log
Communications
Management Plan
Project
Implement
(EPC)
Stage
Project
Stakeholder
Management
Manage
Stakeholder
Management
Engagement
Change Order
Interpersonal
Skills
Change Log
Projects Department
Processes, Procedures,
& Historical
Information
Management
Skills
Stakeholder
Management
Plan (Updates)
Project
Documents
(Updates)
Note:
-
103
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Document
Information
Management
System (DIMS)
Work
Performance
Information
Issue Log
Change Order
Expert Judgment
Project
Implement
(EPC)
Stage
Project
Stakeholder
Management
Control
Stakeholder
Management
Engagement
Monthly Project
Progress Report
Project
Management
Plan (Updates)
Project
Documents
(Updates)
Projects Documents
Meetings
Training
Evaluation
Feedback Tool
(Updated revision to
be collected from
KNPC Management
Support Dept.)
Note:
-
104
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
105
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Inspection
Accepted
Deliverables
Requirements
Documentation
Change
Order
Project
Implement
(EPC)
Stage
Validate Scope
Verified Deliverables
Monthly Progress
Report
Group
DecisionMaking
Techniques
Monthly
Progress
Report
Project
Documents
(Updates)
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
During first two months of EPC stage Contractor shall undertake FEED verification to check existing
drawings/documents with respect to actual plant conditions. Any discrepancy found in the drawings with respects
to site conditions, pertaining to the Scope of work should be highlighted to KNPC for correction and execution by
the Contractor.
106
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Monthly
Progress
Report
Project Management
Plan
Requirements
Documentation
Project
Implement
(EPC)
Stage
Change Order
Project Scope
Management
Control Scope
Project Acceptance
Plan
Variance
Analysis
Monthly Progress
Report
Projects Departments
Procedures and
Practices
Project
Management
Plan
(Updates)
Note:
-
107
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
108
109
2.4.3 Key Elements, which must be taken care during various phases of EPC Schedule development
OVERALLL
It is recommended to have the Schedule WBS in standard EPC format where the 2nd level of should be
Engineering, Procurement & Sub-Contract, Construction, Pre-Commissioning & Commissioning
Calendar shall be defined for the entire duration of the project taking into consideration all factors effecting the
project timeline including but not limited to public Holidays, Summer time restrictions, Ramadan windows,
Shutdown windows etc.
Schedule Risk Analysis must be done each time the schedule is revised adding details or revision for slippage
recover is undertaken. EPC Contractor is also responsible to install Schedule Risk Assessment Software on KNPC
Server.
Project Interdependency check for any overlap between KNPC and projects outside KNPC or shutdown activities.
Remaining duration of balance works to be mentioned in days separately apart from remaining work percentage.
ENGINEERING
110
EPC contractor to optimize the duration of document review cycle and identify list of critical documents at early
project stage (FEED Phase).
EPC Contractor to submit the list of critical documents after signing the contract along with plan on how to track
and optimize the review cycle with Project End User.
PD Project Management Guideline
Copy Right Reserved Projects Department I - 2016
All approval cycles must be taken into consideration including final submission. Time and resource has to be
allotted for these activities.
Link has to be established with Vendor data and Finalization of Model and Issue for Construction P&IDs, Layouts,
GAs, Data Sheets etc.
Plan for all the different underground systems e.g. oily water, open drains, fire water etc. in detail. Link has to be
established with Model and Layout finalization.
Planning of isometric and pipe supports to be done in detail, providing link to piping fabrication / installation.
It is not recommended to have long duration level of effort activities in the schedule. Hence, EPC Contractor shall
include those man-hours in its manpower histogram providing a back-up for major non-Deliverable activities per
discipline.
Engineering Discipline wise man hours must be loaded in the Activities, the man-hours may be arrived by mapping
the Schedule activities to deliverable register.
Man-hours for various disciplines must also be loaded in 3D modelling activity.
Planning of Multiple Bulk MTOs to be done in detail and linked with the Model review stages.
PROCUREMENT
RFQs issue to vendors must be planned early in the lifecycle of project, it is recommended that once the contractor
receives comments on the MRs from KNPC, they must issue the MRs to Vendors also incorporating the comments.
Any further comments by KNPC shall be transmitted to Vendor as addendum. Approved MRs are required prior to
finalizing the POs. The above will give longer time for bidding/evaluation etc. and avoid delays.
Key Vendor Documents must be approved prior to actual Manufacturing however Vendor shall commence all PreManufacturing activities including Material sourcing, finalizing of Sub-Orders etc. once the PO is placed. These are
parallel activities to Vendor Document review.
Spares part list activity shall be schedule early giving time to KNPC for finalization and decision to purchase.
Show Packing and Ex-Delivery activities, typically 1-2 week long activity happens after FAT and before
commencement of Shipping.
Material Record Book (MRBs) preparation to be planned much early in the procurement lifecycle and first
submission shall be done within a week of FAT. MRBs must be delivered to site before Equipment delivery to
support the Installation, Pre-Commissioning and Commissioning.
SAT should be included in Construction section of schedule.
Procurement and Sub-contracting section shall be loaded with man-hours in order to be able to have a complete
manpower histogram.
111
Contractor shall provide detail for each foundation in the schedule however, at the initial stage in E&P schedule an
appropriate window of time for miscellaneous foundations must be allocated for adding required level of detail.
Detailed planning has to be done for all offsite fabrication works. Links has to be established with Bulk
procurement and site Construction.
Link must be established with delivery of fabricated/purchased items and foundation readiness. Avoid double
handling of heavy lift items.
Link must be established for piping hook-up with installation of related equipment / tanks.
Cable Tray activities must be shown separately establishing links to the respective structure / shelter erection.
Link must be established for cable termination with related equipment / tanks/ panels/ JB installation.
Windows for Instrument and valves installation activities must be allocated by adding required level of detail in
schedule.
Contractor shall provide a detailed System / Sub-System wise schedule for Pre-Commissioning and
Commissioning, however at the initial stage in E&P schedule appropriate windows should be allocated for adding
required level of detail.
2.4.4 Typical EPC Schedule Milestones (Including Billable Milestones) for inclusion in Project Master Schedule
PROJECT MANAGEMENT
Project Organization Chart Approved
Project Co-ordination Procedures Approved
Project Schedule & Cost Control Procedures Approved
Project Invoicing & Payment Procedures Approved
E&P Schedule Approved
Project Document Register (PDR) Approved
Procurement Tracking Register (PTR) Approved
Project QA/QC Plan Approved
Project HSSE Plan Approved
Pre-Commissioning and Commissioning Execution Plan Approved
ENGINEERING
P&IDs Issued for Review
P&IDs Issued for HAZOP
P&ID Issued for Design
P&ID Issued for Construction/Final
Issue First Bulk Material MTOs
Issue all Bulk Material MTOs
30% Model Review
60% Model Review
90% Model Review
HAZOP Completed
HAZOP corrective actions cleared
First Set of Civil GA AFC
Last Set of Civil GA AFC
First Set of Structural Steel GA AFC
Last Set of Structural Steel GA AFC
First Set of Piping GA AFC
Last Set of Piping GA AFC
First Set of Piping Isometrics AFC
Last Set of Piping Isometrics AFC
First Set of Piping Support AFC
Last Set of Piping Supports AFC
First set of SLDs AFC
First Set of E&IT GA AFC
First set of Instrument Location. Diagram GA AFC
All E&IT Gas issues
All SLDs issued AFC
All Inst. Location Diagrams issued AFC
PROCUREMENT
112
114
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project
Schedule
Management
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Performance
Reviews
Progress
Reports
Project Schedule
Project Scheduling
Software
(Primavera)
Schedule
Update &
Forecasts
Work Performance
Data
Resource
Optimization
Techniques
Change Order
& Recovery
Plan
Project Calendars
Schedule Variance
Analysis &
Modeling
Simulation for
Recovery Plan
Project
Management
Plan (Updates)
Schedule Data
Critical Chain
Method
Control
Schedule
Projects
Departments
Procedures and
Practices
Mont-Carlo
Simulation
Technique
Project
Baseline &
Documents
(Updates)
Scheduling Tool
(EVM)
Note :
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
115
EPC Contractor shall utilize effective Schedule Control Tools such as Earned Value Method for schedule
update.
Schedule Progress update basis for each phase of project is as follows. Document register for Engineering,
Procurement Register / Expediting reports for procurement, Commodity reports for Construction etc. This
shall ease the process of approval for KNPC.
EPC Contractor shall use Integrated Data base package for handling Progress. Document Control should be
linked with Engineering / Vendor Document Progress. Material Management system should be linked with
Procurement progress. In addition, Pre-commissioning and Commissioning progress at site must be done
through Completions management software.
Progress data entry shall be done by the data owner namely Document Controller for Engineering,
Designers for 3D Model progress, Expediters for Procurement, Construction progress update shall be done
by QS and Pre-commissioning and Commissioning by Completions team.
Planning Engineers role shall primarily be in extracting the report from system and verifying it with backups etc. before incorporating in the Weekly /Monthly report for KNPC.
All Progress Updating and Tracking System has to be set-up on weekly basis. Thursday shall be the weekly
cut-off, EPC Contractor must update the weeks progress over the weekend and by Sunday latest weekly
status report must be issued.
Baseline and Intermediate Schedule should be maintained and updated periodically with an effective
Recovery Plan wherever medium risk occurs on project overall schedule (i.e. schedule slippage by 10%).
Project Management peer review by KNPC Subject matter expert from outside the Project team shall be
conducted once every six months.
The overall weightings for WBS Level elements as below shall be based on cost.
o
o
o
Engineering,
Procurement,
Construction, Pre-Commissioning & Commissioning Assistance
Engineering weightage shall be based on Man-hours; Further break-up of Engineering is recommended as below.
o
o
o
Detailed Engineering
Vendor Engineering
3D Model
Procurement weightage is determined based on Cost; Further break-up of Procurement is recommended as below
o
o
o
116
Construction, Pre Commissioning and Commissioning Assistance weightage shall be 100% linked to the
physical progress. Physical progress shall be based on Man-hours directly derived from Estimated
Quantities. This shall be revised with exact quantities as soon as the Detail Drawings are available.
117
Piping
Mechanical
o Equipment
Modeled
in
Primary Basic Shape with
preliminary dimensions
25%
o Nozzles modeled with Nozzle
Orientation 20%
o Equipment
checked
and
completed as per Preliminary
Vendor Drawing (along with
pipe support cleats) 20%
o Platforms & cleats Modeled
(Equipment platform and
platform cleats in Civil scope)
20%
o Equipment
checked
and
completed as per Final
Vendor Drawing & approved
15%
Steps
for
Civil,
Structural,
Electrical,
Instrument and Telecom
o Preliminary Modeled
25%
o Clash check done prior
to 30% Model Review
-10%
o 30% Model Review
comments
incorporated 5%
o Updated as per Vendor
Data (Partly) 10%
o Clash check done prior
to 60% Model Review
10%
o 60% Model Review
comments
incorporated 5%
Procurement of Bulks
Progress payments for cable, structural steel,
refractories, and pipe bulk materials shall be based on
Manufacturing (50%)
the following:
o Key Vendor Documents Approved by KNPC 5%
o Placement of purchase order: 10%
o Suborders Materials received at Vendors Shop 10%
o Final inspection / witness test or factory acceptance
o Manufacturing Completed FAT Notification issued
test: 10%
15%
o Receipt at site & Inspection: 20%
o FAT Successfully Completed Test Certificates Issued
o Based on physical progress of construction: 60%
10%
o SPIR Forms Approved by KNPC 5%
Progress payments for all other bulk materials shall be
o Packing and Delivery Ex-Works 5%
based on the physical progress of construction.
Delivery (30%)
o Items Delivered at worksite and accepted by KNPC
15%
o Site Acceptance Test (SAT) successfully completed
Test Certificates issued 5% (If applicable)
o Vendor Final Documentation Approved by KNPC
15% /10% (in case SAT is applicable)
118
Completed
PROGRESS FOR THE DAY
up to
Week
Completed To
D5 D6
D7
Balance D1 D2 D3 D4
Remarks
Prev.
Progress Till Date GO
Fri Sat Sun Mon Tue Wes Thu
Week
Note :
-
119
EPC Contractor to finalize the forms as per specific project requirement and put reference numbers
120
EPC Contractor to finalize the forms as per specific project requirement and put reference numbers
Deliverables per Discipline and status for document submission per discipline, submissions for the period etc.
Procurement Requisition Status showing cumulative and period performance for Procurement Requisitions per
discipline showing minimum information as Total Number of Requisitions per Discipline, Inquiry Issued, Bid received,
Evaluation done, PO Placed.
Material Delivery Status for major Equipment / bulks showing minimum information as Total Quantity, Planned /
Actual Delivery to date, Balance to go. Plan/Actual delivery for period.
Construction Commodity Summary tables for major Construction Commodity showing minimum information as Total
Commodity, Planned / Actual Liquidated to date, Balance to go. Plan/Actual for period, planned finish date etc.
Monthly Progress Report Detail Status
Safety Statistics: Cumulative and
Monthly at least for the following.
Man-hours for Engineering,
Project Support, OffsiteFabrication, Construction
Lost Time Incident
Medical Treatment Case
First Aid Case
Near Miss Incident
Property Damage
Environmental Damage
Training of Personnel Status
Progress Tables : Plan and Actual %
Engineering (Deliverables, 3D
Model and Vendor Data)
Procurement
Offsite Fabrication
Construction
Pre-Commissioning
Commissioning
Engineering Detailed Reports
Engineering Document Register
Vendor Document Register
3D Model Status Report
Status of Technical Queries
121
Quality Status
Quality Programs, Policies
And Procedures Status
Quality Audit Status
Non-Conformance Status
Inspection and Test Record
Status (Vendor and Site)
Qualification and Training of
Personnel Status
Contract
Billing and Payment Status along
with Payment Curve
Change Order Summary
Progress Curves
Overall
Engineering
Procurement
Construction PreCommissioning &
Commissioning
Manpower Histogram
Overall
Engineering
Procurement
Off-Site fabrication
Construction
Pre-Commissioning missioning
122
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Earned Value
Management
Monthly
Progress
Report
Project Funding
Requirements
Forecasting
Payment
Schedule
Project Cost
Management
Performance
Reviews
Control Cost
Change Order
Projects Departments
Processes, Procedures,
& Historical Information
Project
Management
Software
Project
Management
Plan (Update)
Project
Documents
(Updates)
123
124
Project
Stage
Project
Management
Function
Main Process
Inputs
Quality Management
Plan
Process Improvement
Plan
Project
Implement
(EPC)
Stage
Project Quality
Management
Perform
Quality
Assurance
Quality Metrics
Tools &
Techniques
Output
Deliverables
Change Order
Quality
Management &
Control Tools
Quality Audits
Quality Control
Measurement
Process Analysis
Project
Management
Plan
(Updates)
Project
Documents
(Updates)
Project Documents
Note:
-
External Project Management peer review to be conducted every six months on each Project Management Functions.
Random audit will be conducted by subject matter expert to check the quality of comments submitted by both EPC
Contractor and End User.
125
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
126
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Human Resource
Management Plan
Pre-Assignment
Output
Deliverables
Project Staff
Assignments
KNPC Policies and
Procedures
Project
Implement
(EPC)
Stage
Project
Human
Resource
Management
Negotiation
Acquisition
Acquire
Project Team
Projects Department
Processes, Procedures, &
Historical Information
Resource
Calendars
Virtual Teams
Multi-Criteria
Decision
Analysis
Project
Management
Plan
(Updates)
Note:
-
Mobilization of dedicated KNPC Project Coordination Group and Project End User to EPC Contractors Home Office
during the detailed engineering design in order to close follow-up and expedite approvals of Engineering Deliverables
KNPC has the right to interview and accept EPC Key Personnel after signing EPC Contract.
In case of Project demobilization/transfer, progressive handover/takeover should be considered for EPC Contractor
Key Personnel.
127
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Management
Function
Main Process
Inputs
Human Resource
Management Plan
Tools &
Techniques
Output
Deliverables
Interpersonal Skills
Training
Project Staff
Assignments
Project
Implement
(EPC)
Stage
Project
Human
Resource
Management
Develop Project
Team
Team Building
Activities
Ground Rules
Colocation
Resources Calendars
Team
Performance
Assessments
(To be done
internally within
the KNPC
Project Team)
Recognition and
Rewards
Personnel
Assessment Tools
Note :
-
128
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project
Human
Resource
Management
Main Process
Manage Project
Team
Inputs
Tools &
Techniques
Output
Deliverables
Human Resource
Management Plan
Observation &
conversation
Change
Order
Project Staff
Assignments
Project
Performance
Appraisals
Human
Resource
Management
Plan
(Updates)
Team Performance
Assessment
Conflict
Management
Issue Log
Monthly Progress
Report
Interpersonal
Skills
Projects Department
Processes, Procedures,
& Historical
Information
Personnel
Assessment
Tools
Project
Documents
(Updates)
Team
Operating
Agreement
(Optional)
Manpower
Histogram
(Updates)
Note:
- Purple text refers to attached template.
- The guideline and templates may be customized for applicable input, tools & techniques and desired output.
129
Meeting Guidelines: Identify guidelines that will keep meetings productive (i.e. decision makers must be present, start on time, stick to
the agenda, etc.)
1.
2.
3.
Communication Guidelines: List guidelines used to make effective communication (i.e. everyone voices their opinion, no dominating
the conversation, no interrupting, etc.)
1.
2.
3.
Decision-Making Process: Describe the process used to make decisions. Indicate the relative power of the project manager for
decision making as well as any voting procedure. Also indicate the circumstances under which a decision can be revisited
Conflict Management Approach : Describe the approach to managing conflict, when a conflict will be escalated, when it should be
tabled for later discussion, etc.
Other Agreements : List any other agreements or approaches to ensuring a collaboration and productive working relationship among
team members
Signature :
Date :
EPC Contractor developer to finalize the forms as per specific project requirement and put reference numbers.
130
131
Project
Stage
Project
Management
Function
Project
Project
Implement
Communications
(EPC)
Management
Stage
Main Process
Manage
Communications
Inputs
Tools &
Techniques
Output
Deliverables
Communications
Management Plan
Communication
Technology
Project
Communications
Material
Monthly Progress
Report
Communication
Models
Project
Management Plan
(Updates)
KNPC Policies
and Procedures
Communication
Methods
Projects
Department
Processes,
Procedures, &
Historical
Information
Information
Management
System
Project Document
(Updates)
Performance
Reporting
Note :
-
132
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project Management
Plan
Information
Management
System
Project
Monthly
Performance
Report
Project
Communications
Project
Project
Implement
Communications
(EPC)
Management
Stage
Change Order
& Change Log
Expert
Judgment
Control
Communications
Issue Log
Project
Management
Plan (Updates)
Work Performance
Data
Decision Log
Projects Department
Processes, Procedures,
& Historical
Information
Meetings
Issue Log
Lessons
Learned
Note:
-
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
EPC Contractor to provide Read-only access to online documentation software system to KNPC assigned project
team
Project End User should be involve in Project Monthly Progress Meeting and updated with list of Critical Documents
that will be reviewed by next month
133
134
Project
Management
Function
Main
Process
Inputs
Tools &
Techniques
Output
Deliverables
Documentation
Reviews
Schedule Management
Plan
Project
Implement
(EPC)
Stage
Project Risk
Management
Identify
Risks
Information
Gathering
Techniques
Human Resource
Management Plan
Checklist
Analysis
Scope Baseline
Activity Cost Estimates
Activity Duration
Estimates
Stakeholder Register
Assumptions
Analysis
Risk Register
Diagraming
Techniques
Project Documents
KNPC Policies and
Procedure
Projects Department Processes,
Procedure & Historical
Information
SWOT Analysis
Expert
Judgment
Note :
-
135
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project Risk
Management
Main
Process
Perform
Qualitative
Risk
Assessment
Inputs
Risk Management
Plan
Scope Baseline
Risk Register
Risk Categorization
Projects
Department
Processes,
Procedures &
Historical
Information
Output
Deliverables
Project
Documents
(Updates)
Risk Urgency
Assessment
Expert Judgment
Lessons Learned
System
Note :
-
136
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Managemen
t Function
Main Process
Inputs
Risk Management
Plan
Output
Deliverables
Cost Management
Plan
Schedule
Management Plan
Risk Register
Project
Implement
(EPC) Stage
Project Risk
Management
Perform
Quantitative
Risk
Assessment
Quantitative Risk
Analysis & Modeling
Techniques
Project
Documents
(Updates)
Expert Judgment
Lesson Learned
Systems
Note :
-
137
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Manageme
nt Function
Main Process
Inputs
Output
Deliverables
Project
Implement
(EPC) Stage
Strategies for
Positive Risks or
Opportunities
Project Risk
Management
Project
Management
Plan
(Updates)
Plan Risk
Responses
Contingent
Response
Strategies
Project
Documents
(Updates)
Risk Register
Expert Judgment
Note :
-
138
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
Project
Management
Function
Main
Process
Inputs
Project Management
Plan
Tools &
Techniques
Output
Deliverables
Risk Reassessment
Monthly
Project
Progress
Report
Risk Audit
Risk Register
Project
Implement
(EPC)
Stage
Project Risk
Management
Control
Risks
Work Performance
Data
Technical
Performance
Measurement
Variance and Trend
Analysis
Reserve Analysis
Monthly Progress
Report
Expert Judgment
Change
Order
Project
Management
Plan
(Updates)
Project
Documents
(Updates)
Note :
-
139
The guideline and templates may be customized for applicable input, tools & techniques and desired output.
140
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project
Procurement
Management
Main Process
Conduct
Procurements
Inputs
Tools &
Techniques
Procurement
Management Plan
Bidder Conference
& Campaign
Procurement
Documents
Proposal Evaluation
Technique
Selection Criteria
Independent
Estimates
Seller Proposals
Expert Judgment
Project Documents
Advertising
Procurement
Statement of Work
Analytical
Techniques
Projects Department
Processes, Procedures,
& Historical
Information
Lessons Learned
System
Procurement
Negotiation
Output
Deliverables
Selected
Sellers
Agreements
Resource
Calendars
Change
Order
Project
Management
Plan
(Updates)
Project
Document
(Updates)
Notes:
- The guideline and templates may be customized for applicable input, tools & techniques and desired output.
-
141
EPC Contractor shall be responsible to verify the financial status prior to sourcing the material / service.
Contract and Procurement Audits should be conducted in every 6 months by subject matter expert to validate
procurement progress, review contracts and practicing processes for completeness, accuracy and effectiveness.
In order to avoid defects and ensure quality of Long Lead Items after delivery on board, suggests the following:
- To develop a mechanism for inspection KNPC at Vendor / manufactures place before shipping.
- To engage reputed vendors.
- To have PD representative as part of VEC / CEC review committee.
To overcome the issue of poor contractors performance, PMT to ensure the following:
- Immediate Involvement of Top Management (Contractor & Company) at early stage where the project is not
progressing as per schedule.
- Ensure Specific and effective implementation of LD application as per contract for delay in provisional
turnover.
- Proper selection of the Contractors key personnel through interviewing Committee formed by PMT
Project
Stage
Project
Management
Function
Main Process
Inputs
Tools &
Techniques
Output
Deliverables
Project
Management Plan
Change Control
Procedure
Monthly Project
Progress Report
Procurement
Performance
Reviews
Change Order
Inspection &
Audits
Project
Management
Plan (Updates)
Procurement
Documents
Project
Implement
(EPC)
Stage
Project
Procurement
Management
Control
Procurements
Agreements
Performance
Reporting
Approved Change
Order
Payment Systems
Monthly Project
Progress Report
Change Log
Project
Document
(Updates)
Note:
- The guideline and templates may be customized for applicable input, tools & techniques and desired output.
-
EPC Contractor / Vendor should submit manufacturing progress report for critical equipment on monthly basis.
EPC Contractor should conduct Procurement Progress review Meeting with KNPC Project Team and Subcontractors/
Vendors in order to ensure accuracy of the Procurement Status Report/Progress.
EPC Contractor is responsible to notify KNPC about Subcontractor/Vendor with poor performance.
Contract & Procurement Audit will be conducted every six months by KNPC review contracts and practicing
processes for completeness, accuracy and effectiveness.
EPC Contractor is responsible to enhance the manufacturing cycle by confirming on the following:
- Identification of Vendors and Suppliers who are on or near the Project Critical Path Schedule.
- Prioritization of Vendor List and obtaining direct feedback.
- Development of action plan for regular visits to Vendor premises for better follow-up and expediting.
- Conducting of Vendor Campaign at EPC Contractor Home Office as and when required.
- Submitting Vendor Status Report for placed POs when required (minimum of monthly basis).
- Submitting of a detailed Vendors Manufacturing Schedule.
- Submitting predefined dates for Long Lead Items and payment (action plan).
142
Project
Stage
Project
Implement
(EPC)
Stage
Project
Management
Function
Project
Procurement
Management
Main Process
Inputs
Tools &
Techniques
Procurement
Management Plan
Procurement /
Contract Audits
Close
Procurements
Procurement
Negotiations
Output
Deliverables
Closed
Procurement
Procurement
Documents
Records
Management
System
Note:
- The guideline and templates may be customized for applicable input, tools & techniques and desired output.
-
143
Update Project Management Plan (PMP) should be attached to Project Closeout Report.
Appendix
144
145
Deliverable
Define scope of work and services
Review of lessons learned
Project Execution Plan
Quality Control Plan
Project Schedule
Cost Estimate for Implementation (Class 3)
Risk List (Updated)
Issue Management Plan / Issue Log
Resource Plan (Updated)
Design Stage Closure Report
Communication Plan
Training and Performance Support Plan
Data Gathering
Develop Basis of Design (BOD)
Function & Value Engineering
Site Conditions, Soil Report U/G Obstructions
P&ID, Data Sheets, Plot Plan, Equipment Layout
Automation Plan
Line List & Tie-in List
Control Philosophy
Single Line Diagram
FEED Document with Project Specifications
Constructability Report
Safety Constructability Report
HSE Plan and HAZOP Study Report
Fire Protection Philosophy
QRA Study
Final Environmental Impact Assessment
ITB Document & Bidder List
Requisition for Long Lead Equipment
Work stream
Project Management
Project Management
Project Management
Project Management
Project Management
Project Management
Project Management
Project Management
Project Management
Project Management
Communication & Engagement
Training & Capability Development
Solution
Solution
Solution
Solution
Solution
Solution
Solution
Solution
Solution
Solution
Solution
Solution (HSE)
Solution (HSE)
Solution (HSE)
Solution (HSE)
Solution (HSE)
Procurement
Procurement
Completed
Remarks
Criteria
Is a definitive scope of work for detail design work has been recommended and is it
most cost effective solution?
Work stream
D.2
Project Management
D.3
Project Management
D.4
Are all systems and procedures in place for adequate control of work activities?
Project Management
D.5
Have value improving practices been applied? If not, can any cost reduction exercise
be carried out at this stage?
Project Management
D.6
Project Management
D.7
Project Management
D.8
Project Management
D.9
Has the project's communication needs been identified and effectively planned?
D.10
Have all skill and capability development requirements been identified and training
courses effectively planned?
Communications &
Engagement
Training & Capability
Development
D.11
Has safety studies been completed and the Issues raised, addressed and answered?
HSE
D.12
HSE
D.13
Has the final BIA report been approved by K-EPA and the requirements
/recommendations in the report been incorporated in the proposal?
HSE
D.1
146
Project Management
Assessment
147
Sr.
Deliverable
Work stream
Im.1
Project Management
Im.2
Communications Materials
Im.3
Training Materials
Im.4
Solution
Completed
Remarks
148
Criteria
Have all implementation related activities, deliverables and milestones been
successfully completed?
Has the Project Implementation Closure Report can be completed, included
documentation of achievements, shortcomings and lessons learned?
Is the Benefits Realization Plan clearly understood, including definition of detailed
activities, timeframes and milestone for the Monitor and Operate stage?
Have any remaining risks and issues been identified, and monitoring responsibility
transferred to the operating department?
Work stream
Project Management
Project Management
Project Management
Project Management
Im.5
Project Management
Im.6
Have project team members been rolled off the project and reincorporated into their
Department functions? (if applicable)
Project Management
Im.7
Has the project's communication efforts been effectively executed as per plan?
Im.8
Have skill and capability development requirements been met through successful
execution of training courses as per plan?
Communications &
Engagement
Training & Capability
Development
Assessment
149