Saudi Aramco 7180 (5/89)

G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 1 OF 11

CONTENT:
This General Instruction prescribes the roles and responsibilities between the Inspection Department (ID) and
Project Management (PM) during the various project phases under the Capital Program.

This General Instruction contains the following information:

1. Purpose
2. References
3. Definitions
4. Commitment
5. Team Organization Structure
6. Roles and Responsibilities for Major Projects
7. Roles and Responsibilities for Small Projects
8. Attachments
9. Approval Authority

1.0 PURPOSE:
This instruction defines the roles and responsibilities of the organizations and personnel directly
responsible for the quality of the facilities being provided to the Company under the Capital Budget for
all projects managed by Project Management.

2.0 REFERENCES:
2.1 SAEP-1023 "Contractor Quality Assurance And Quality Control Requirements"

2.2 SAEP-303 "Engineering Reviews of Project Proposal And Detailed Design Documentation"

2.3 SAEP-1150 "Inspection Coverage On Projects"

3.0 DEFINITIONS:
3.1 Functional Reporting: For the purposes of this document, when the ID Representative
functionally reports to the Project Manager, he is empowered to report and resolve all quality
issues, concerns and violations directly with the Project Manager or his representative in
accordance with SAEP-1023. In addition, the Project Manager will communicate all project
quality documentation review/approval requests directly to the ID Representative.

3.2 Administrative Reporting: For the purposes of this document, the ID representative will
continue to report to his Project Inspection Unit on his daily inspection activities and

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 2 OF 11

assignments. In addition, all of his personnel records, promotions, evaluations and all other
personnel activities will be retained by Inspection Department.

3.3 Major projects: Any project with a capital value more than $50MM, or any group of small
projects agreed to by Project Management and Inspection Department.

3.4 Small projects: Any project with capital value less than $50MM.

4.0 COMMITMENT:
4.1 Engineering and Operations Services (E&OS) is committed to providing facilities that are fit for
purpose and designed, procured and built to the highest quality in accordance with Saudi
Aramco Mandatory Engineering Requirements (SAMERs), Project Specifications and Contract
requirements.

4.2 PROJECT MANAGEMENT

4.2.1 As the Company Representative leading the project delivery effort, Project Management,
through Project Management Teams (PMT's), is responsible for the overall quality of the
projects in the capital program. Each Project Manager is responsible for implementation
of quality systems that will effectively deliver the project per Saudi Aramco specified
quality requirements.
4.2.2 Project Management will provide the leadership, management systems, and resources
required to effectively design, procure, construct and mechanically complete the
projects. In addition, Project Management will provide on site qualified PMT
supervision to insure that the Contractor adheres to all procedures and standards and the
built facilities meet with Saudi Aramco Mandatory Engineering Requirements
(SAMERs), Project Specifications and Contract requirements.
4.3 INSPECTION DEPARTMENT

4.3.1 Inspection Department is charged with the corporate responsibility to assure that an
effective quality management system is in place, so that materials and equipment
purchased, and equipment and facilities constructed for and by Saudi Aramco comply
with Saudi Aramco specified quality requirements.
4.3.2 Inspection Department will participate actively in the development of effective quality
systems, and monitor and assess capital program execution to ensure the project meets
specified quality requirements.
4.3.3 Inspection Department will provide the resources required to effectively support and
assess quality systems throughout all phases of the project: design, procurement,
construction and pre-commissioning. In addition, Inspection Department will provide
on site inspection in sufficient quality, quantity and detail to insure, through the Project
Manager, that the Contractor effectively and efficiently enforces the Saudi Aramco
Mandatory Engineering Requirements (SAMERs), Project Specifications and Contract
requirements.

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 3 OF 11

5.0 TEAM ORGANIZATION STRUCTURE:

5.1 The basis for better definition of Project Management Team (PMT) and Inspection Department
(ID) roles and responsibilities can be best illustrated in Attachment I, II & III which shows the
Project Team Organization Structure Models for major projects at various stages. This model
fosters a 'true' owner team that is aligned and fully responsible for Project Quality, Cost and
Schedule. The key element is the assignment of an ID Single Point Contact for all major
projects with capital value over $50MM.

5.2 The same concept will be adopted for a group of medium and small size projects.

6.0 ROLES AND RESPONSIBILITIES FOR MAJOR PROJECTS:

6.1 INSPECTION DEPARTMENT REPRESENTATIVES:

6.1.1 Assignment and Reporting

6.1.1.1 For each major project or group of small projects, where the Project(s) requires
more than one ID Representative, Inspection Department will assign a Single
Point Contact (SPC) who shall be responsible for coordinating all inspection
activities related to the project throughout all the work phases. The SPC will
interface and work with all Project Managers to ensure that the project quality
requirements are met. The SPC will be located IK at the location most effective
for the work involved. After Contractor mobilization, he will generally be lo-
cated at the construction site.
6.1.1.2 Design and Procurement phase: During this phase, the Inspection Department
SPC will form a vendor inspection team to cover the design and procurement
inspection activities. This team will consist of the ID SPC and Saudi Aramco
Inspection Representatives (SAIRs). During this phase each SAIR located at
the Design Office will report functionally to the most senior PMT Representa-
tive (Sr. Project Manager, Project Manager. Sr. PE, PE) located at the Design
Office and administratively to the SPC. The SAIR is responsible for the inspec-
tion activities during this phase of the project.
6.1.1.3 Design, Procurement and Construction Phases Simultaneously: During this
overlapping period and when the Site activities start, the Inspection Depart-
ment SPC will form a project inspection team to cover the Construction phase.
The inspection team will consist of Projects Inspection Division (PID) Super-
visor(s), Field Supervisor(s) and Inspectors. Each Inspection Field Supervisor
will functionally report to the respective PMT Site Representative and admin-
istratively to the PID Supervisor. The PID Supervisor will functionally report
to the senior PMT representative on site and administratively to the SPC. The
PID Supervisor will be responsible for the all project construction inspection
activities. Each inspection Field Supervisor is responsible for inspection activ-
ities in his assigned area of the project. Also, the PID Supervisor is responsible
for the inspection activities in his assigned project(s).

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 4 OF 11

At this stage of the project, Inspection Department SPC will assign a VID
coordinator over the SAIRs to coordinate all the Design and Procurement
inspection activities. At the Design and Procurement office, the SAIR located
at that Design offices will still functionally report to the most senior PMT
Representative (Sr. Project Manager, Project Manger. Sr. PE, PE) located at
the design office, and administratively to the VID coordinator.

6.1.1.4 Construction phase: the arrangement outlined in 6.1.1.3 will still apply; how-
ever, the PID Supervisor will report functionally to the Project Managers and
administratively to the SPC. Also, the VID coordinator and all the SAIRs will
move to the respective sites and continue their procurement phase inspection
activities. They will functionally report to the senior PMT member and admin-
istratively to the SPC. Once all materials have arrived on site, the VID coordi-
nator and SAIRs will report to VID.
6.1.2 Manning Level and Mobilization Plan
6.1.2.1 Immediately after Contract(s) award, the SPC will work with Projects Inspec-
tion Division (PID) Superintendent, Vendors Inspection Division (VID) Su-
perintendent and Project Manager(s) to determine the required ID QA/QC
manning level. He will assign Saudi Aramco Inspection Representatives
(SAIRs), PID Supervisor(s) and discipline inspectors to each site and/or con-
tract in sufficient numbers to effectively monitor the Contractor's quality sys-
tem and insure that all procedures and critical systems are inspected to
SAMERs, Project Specifications and Contract requirements.
6.1.2.2 The SPC will continue to work with PID & VID Superintendents and Project
Manager(s) to determine the ID inspectors Mobilization Plan during the vari-
ous phases of the project.
6.1.3 Responsibilities
6.1.3.1 Prior to Contract Award
a. The SPC or his representative(s) will actively work with Project
Manager(s) in the development of the project overall QA/QC plans.

b. As determined necessary by PM & ID, the SPC or his representative(s)

will participate in technically qualifying the Contractors, sub-
Contractors and vendors providing services and materials to the project.

6.1.3.2 Design and Procurement Phase

a. The ID representative(s) will review the quality manuals, QA/QC
Procedures and Inspection and Test Plans (ITP's) prepared by the
Contractors in accordance with SAEP-1023 to determine if the
Contractor's commitment, organization, quality system, personnel and
processes are adequate to achieve contractual and project requirements.

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 5 OF 11

b. The ID representative(s) will work with the project manager to identify

vendor inspection requirements, arrange for required inspection
coverage, insure appropriate Contractor QA/QC coverage, and conduct
spot vendor inspections to insure conformance to requirements.

c. The ID representative(s) will document any violation to the Contract

requirements in the Site Logbook. Also, he will issue NCR's and Work
Sheets to the PM as needed.

d. The ID representative(s) will keep the project manager appraised of all

relevant QA/QC activities.

6.1.3.3 Construction Phase

a. The ID representative(s) will review the quality manuals, QA/QC
Procedures and Inspection and Test Plans (ITP's) prepared by the
Contractors in accordance with SAEP-1023 to determine if the
Contractor's commitment, organization, quality system, personnel and
processes are adequate to achieve contractual and project requirements.

b. The ID representative(s) will conduct sufficient on-site inspections in

all disciplines to assure that the Contractor is effectively implementing
his approved quality plans, and report discrepancies to the project
manager.

c. The ID representative(s) will maintain inspection logs and issue NCR's

through the project manager to the Contractor as needed.

d. The ID representative(s) will keep the project manager appraised of all

relevant QA/QC activities.

6.1.3.4 Precommissioning Phase

a. The ID representative(s) will work with the project manager to develop
an effective QA/QC plan during pre-commissioning.

b. The ID representative(s) will provide sufficient QA/QC management

and inspection to assist the Project Manager to insure that all exception
items are identified, and assist the project manager as needed to insure
their effective resolution.

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 6 OF 11

6.1.4 Quality Assessments

The SPC or his representative(s) is responsible to conduct focused technical assessments

of the project work progress to ensure that the project quality activities and processes are
effective. The schedule of these assessments will be agreed upon by PMT and ID.
6.1.5 Quality Status Reporting
6.1.5.1 The Inspection Department Site Representatives shall provide QA/QC reports
to the Project Manager highlighting the deviations from the Contract,
SAMERs, Project Specifications or quality requirements and recommending
corrective action. The ID site representative will also report specific areas of
concern to Proponent, PMT and ES Executive Management in accordance with
SAEP-1150.
6.1.5.2 The SPC will analyze all the QA/QC reports and status data, and will report
any areas of concern to the Project Management Department Manager.
6.1.5.3 The SPC is responsible to promote and build awareness of the project QA/QC
requirements and systems within the PMT.
6.1.6 Design Reviews

In accordance with SAEP-303 "Engineering Reviews Of Project Proposal And Detail

Design Documentation", the SPC or his representative(s) will participate in the project
design reviews at appropriate stages.

6.2 PROJECT MANAGER

6.2.1 Project Quality

6.2.1.1 As the Company Representative, the Project Manager is responsible for the
overall project quality.
6.2.1.2 He is responsible for the effectiveness of the project QA/QC program on his
project(s).
6.2.1.3 He is responsible to have a PMT member acknowledge all logbook entries with
initials and dates. He will resolve deviations identified by ID with the Contrac-
tor. All open issues will be addressed in regular PMT/Contractor meetings.
6.2.1.4 Disagreements between the PMT and ID representatives shall first be resolved
by the Project Manager. If the disagreement persists, it shall be resolved by
the SPC and the Project Department Manager, or higher as appropriate.
6.2.1.5 He is responsible for the performance of the ID representatives that function-
ally report to him.

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 7 OF 11

6.2.2 Contractor Compliance

6.2.2.1 He must ensure through Inspection Department representatives that the Con-
tractor(s), Sub-Contractors and Vendors implement project QA/QC require-
ments in accordance with SAMERs, Project Specifications and Contract
requirements.
6.2.2.2 He is responsible to ensure Contractor remediation of deficiencies reported by
the inspection representatives.
6.2.3 Feedback

He will provide feedback on the ID QA/QC personnel performance to the Inspection

Department.

6.3 PROJECT MANAGEMENT DEPARTMENT MANAGER

6.3.1 Provide guidance and support to the Project Manager as needed to assure project quality
goals are met.
6.3.2 Set department quality objectives and provide means to achieve them.
6.3.3 Review project and departmental QA/QC programs and performance to insure effective
implementation of corporate objectives.
6.3.4 Periodically review project QA/QC results, and make appropriate policy adjustments to
achieve the desired results.
6.3.5 Interface with Inspection Department Manager as necessary.
6.3.6 Resolve ID/PMT disagreements or refer them to senior management.

6.4 INSPECTION DEPARTMENT MANAGER

6.4.1 Develop and maintain Quality Performance Indices to assess the status of the project and
benchmark at the Corporate level as a whole.
6.4.2 Monitor quality compliance performance indicators and take corrective actions when
deviations from plan start to appear.
6.4.3 Assign qualified ID Single Point Contacts (SPCs).
6.4.4 Call for and implement quality assessments to ensure compliance.
6.4.5 Assign an individual or a team to conduct spot assessments of work progress. The
objective of these assessments is to evaluate the effectiveness of the Contractor QA/QC
coverage of a project.
6.4.6 Provide feedback to executive management on quality issues as necessary.

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 8 OF 11

7.0 ROLES AND RESPONSIBILITIES FOR SMALL PROJECTS:

7.1 INSPECTION DEPARTMENT REPRESENTATIVES

7.1.1 The Project Inspection Unit Supervisor will be the Single Point Contact (SPC) for the
project.
7.1.2 All other roles and responsibilities assigned to other Inspection Department
Representatives listed in Section 6.1 are applicable.

7.2 PROJECT MANAGER

The same as Section 6.2.

7.3 PROJECT MANAGEMENT DEPARTMENT MANAGER

The same as Section 6.3.

7.4 INSPECTION DEPARTMENT MANAGER

The same as Section 6.4.

8.0 ATTACHMENTS:
The following attachments are provided with this General Instruction:

ATTACHMENT I: The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING

DESIGN AND PROCUREMENT PHASE.

ATTACHMENT II: The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING

DESIGN, PROCUREMENT AND CONSTRUCTION
SIMULTANEOUSLY.

ATTACHMENT III: The PROJECT TEAM ORGANIZATION STRUCTURE MODEL DURING

CONSTRUCTION ONLY.

9.0 APPROVAL AUTHORITY:

Concurred By:
Vice President ES Vice President PM:

Approved By:
Senior Vice President E&OS

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 9 OF 11

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 10 OF 11

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11

Saudi Aramco 7180 (5/89)
G.I. NUMBER
400.001
SAUDI ARABIAN OIL COMPANY (Saudi Aramco)
GENERAL INSTRUCTION MANUAL ISSUE DATE REPLACES
ISSUING ORG. INSPECTION DEPARTMENT 07/03/1999 NEW
SUBJECT: QUALITY SYSTEM ROLES AND RESPONSIBILITIES APPROVAL PAGE NUMBER
DAF 11 OF 11

* CHANGE ** ADDITION NEW INSTRUCTION X COMPLETE REVISION 11