000-ZA-E-09413 Construction Progress Meas Proc

CLIENT JOB UNIT
274219 000
PLANT LOCATION MEXICO

EL ENCINO - TOPOLOBAMPO NATURAL GAS SPC. 000-ZA-E-09413
TRANSPORTATION SYSTEM
PROJECT / UNIT Rev.
CONSTRUCTION PROGRESS MEASUREMENT Sh. 1 of 12 0
CONSTRUCTION PROGRESS MEASUREMENT PROCEDURE
_____
0 Issue
Rev. Description Prepared Checked Approved Date
000-za-e-09413 construction progress

measurement procedure.doc
This document is the property of Saipem who will safeguard its rights according to the civil and penal provisions of the law.
CLIENT JOB UNIT
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saimexicana, TRANSPORTATION SYSTEM
PROJECT / UNIT Rev.
INDEX
1. INTRODUCTION 3
1.1. Scope of work 3
1.2. Definitions 3
1.3. Abbreviations 4
1.4. Reference documents 5
_____
2. CONSTRUCTION CONTROL STRATEGY 5
2.1. Goals 5
2.2. Planning 5
2.3. Progress 5
3. CONSTRUCTION SCHEDULE AND PROGRESS CRITERIA 6

3.1. Work Breakdown Structures 6
3.2. Construction Activities 6
3.3. Standard Man Hours 7
3.4. CPM Analysis 7
4. CONSTRUCTION SCHEDULE 7

4.1. Level III (First phase development) 8
4.2. Working Level III 8
5. PROGRESS 9
5.1. Progress Monitoring – Level IV 9
5.2. Productivity Analysis (K Factor) 10
6. RESPONSABILITIES AND ACTIONS 11
7. CONSTRUCTION PBS 12

This document is the property of Saipem SpA who will safeguard its rights according to the civil and penal provisions of the law.
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1. INTRODUCTION
1.1. Scope of work
The scope of the Construction Scheduling Control Procedure is to describe the basic method of construction
planning and progress control on site.
1.2. Definitions
Client/COMPANY Transportadora de Gas Natural del Noroeste, TGNN
Contractor Saimexicana S.A. da C.V.

_____ Commissioning All activities performed after achievement of Ready for Commissioning
certificate for each Unit/System.
Contract Contract that governs the relations between Contractor and the Client
COPE COPE is used to record Subcontractor attendance, spent man hours and
mobilised equipment. It is related with COPR to measure the actual
productivity factor (K2).
COPR COPR is used to schedule the work loads in terms of standard man hours,
quantities, percentages of each SCMC and to produce the “s” curve. The
programme compares the actual progress vs. the schedule “s” curve for each
project level. COPR has structured standard reports that aid field
management with summary levels analysis.
Construction Management
Class Main activity to be carried out within a WP (for example piping steel
structures, equipment, etc.)
Home Office Saimexicana office (Mexico City)
Pre-commissioning The phase in which all the required cleaning, checks and tests (electrical,
instrumental, mechanical), are implemented without introduction of
hydrocarbons into the process.
PROM PROM is used to evaluate the progress of the SCMC on site at the level of
small elements easily measurable named items. Each item will have the same
PBS as the COPR programme.
A set of basic operations that cannot be broken down any further and that
form a typical work are assigned to each item present into the database and
then conveyed to the proper SCMC.
Punch List List of items or activities that are: not completed, outstanding or, in some way,
deficient and fails to meet the requirements of the project specifications,
drawings, procedures, etc. and are required to be provided or corrected.
Sub Construction
Management Class Sub activity of CMC (for example carbon steel pipe, heavy structures, light
structures, pumps, exchangers, etc.). Each SCMC is provided with relevant
standard efficiency.

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COSMO® Software suite that consists of a series of modules, each one designed to
manage and control specific activities or aspects of construction and its
completion.
Subcontractor Entity (and its legal successors in title) named as Subcontractor in the
Contractor purchase order and/or the contract awarded to the Subcontractor
to perform specific services and/or works.
Vendor Supplier of items or equipment.
Work Package: Discipline (Mechanical, Civil, etc.) or Subcontractor’s scope of work that is
carried out in the area or in the target function.
_____ 1.2.1. Operational Levels of Construction
Operational levels of Construction mean evaluation of work in term of SMH according to the following PBS:
 Lev. 0 total SMH of project and sub-projects

 Lev. 1 SMH of work areas (civil, mechanical, electrical, etc.) and target
function (on-site, offsite, utilities)
 Lev. 2 SMH of CMC of work areas e WP
 Lev. 3 SMH of sub-CMC of work activities and WP
 Lev. 4 SMH of item and/or price list item for work area and WP (i.e. one foundation and work
activities for its execution like excavation, formwork, steel bars, concrete pouring, back
filling, etc.)
1.3. Abbreviations
1.3.1. Project Organisation
CM Construction Manager
COM Commissioning Manager
DS Discipline Superintendent
FEM Field Engineering Manager
FCC Field Control Coordinator
PCL Project Construction Leader
PM Project Manager
SM Site Manager
1.3.2. Other
AMH Actual Man Hour

CMC Construction Management Class
CPM Critical Path Method
HSE Health, Safety and Environment
EMC Engineering Management Class
EMH Expected Man Hour
EPC Engineering, Procurement and Construction
NDE Non Destructive Examination
PBS Project Breakdown Structure
PMI Positive Material Identification
PMS Project Management Schedule
QA Quality Assessment

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QC Quality Control
SCMC Sub Construction Management Class
SMH Standard Man Hour
PBS Project Breakdown Structure
WP Work Package
1.4. Reference documents
000-ZA-E-09400 Site Coordination procedure

000-ZA-E-09402 Project Control for Piping
_____
2. CONSTRUCTION CONTROL STRATEGY
2.1. Goals
 Operative communication within construction team;

 Efficient “modus operandi” in terms of:
- methods;
- control;
- construction oriented” integration with engineering and procurement;
- organization;
- construction management for other disciplines (quality, safety).
 Ensuring an effective data tracking and forecasting analysis;
 Rewarding contractual terms and conditions.
2.2. Planning
 Level 3 EPC schedules shall be integrated; details of the construction program (schedule) shall be included.
 Integration of the Schedules will be obtained by implementing:
- shared PBS;
- shared path of construction;
- set-up of engineering and material deliverables dates, so called Required on Site (ROS), to support
construction activities, logically linked to scheduled tasks.
 PBSs and path of construction shall ensure an effective progress achievement and manageable control;
 Progressive development of Level 3 working schedule jointly achieved by Contractor and Subcontractors;
 In force and regular issuing of look ahead reports.
2.3. Progress
 Ensure an objective and straightforward physical progress measurement together with an effective data
tracking based on tested and reliable standard methodology.
 Collection of information organized by an agreed and organised coding system.

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3. CONSTRUCTION SCHEDULE AND PROGRESS CRITERIA
3.1. Work Breakdown Structures
A PBS has been developed to ensure the fulfilment of tender requirements.
The PBS is in fact a project planning and control technique which describes project tasks using a framework to
define the contractual scope of work related to the implementation of the integrated phase of the project.
The PBS is a level by level breakdown continued beyond the contract phase levels, through the project units, to
identify and codify manageable tasks and activities.
As a general definition the “project unit” (or work package) activity consists of manageable work units assigned
_____ to the responsibility of a functional manager, which can be planned, estimated, scheduled and controlled.
Level of the PBS are as follows:
Level 0 Level 1 Level 2
Project Train 1 UNIT 32
Train 2 UNIT 33
Train 3 UNIT 34
Train 4 UNIT 35
Inlet/Outlet Facilities UNIT 37
UNIT 45
UNIT 46
UNIT 47
Common Area and Offsite UNIT 39
Where:
Level 0: Overall Project

Level 1: Areas
Level 0: Plants
3.2. Construction Activities
Construction activities are classified according to the following levels:

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Level 1 - Discipline : i.e. civil works, mechanical works, etc.
Level 2 - CMC : i.e. concrete, piping, elect. cables, etc.
Level 3 - SCMC X PBS Area : i.e. lean concrete, small bore piping, etc
Level 4 - Object/Item and elementary operation : i.e. pump foundations, piping sketch, etc.
associated with SCMC
SCMC are used for scheduling and progress monitoring purposes. Physical quantities for each scheduled SCMC
are provided by the engineering during the design phase.
The PBS will be respected at all time during the preparation or updating of the data.
_____
3.3. Standard Man Hours
SMHs are obtained by dividing work quantities by the standard efficiency of construction Bill items.
SMHs are translated at each level into SMHs of construction.
The total SMHs comprises the overall construction workload.
The overall construction workload is subdivided in accordance with the PBS and by disciplines as described
above.
SMH are used as the basis for calculating the EMH for site, hence the workforce requirements.
Duration of each construction activity is established by taking into account the estimated quantities which have
been converted into SMHs, the expected availability of man power and the statistical data from previous project
achievements.
3.4. CPM Analysis
A network is prepared on the basis of the logical relationship between the various project activities.
The CPM analysis is developed in order to determine the critical path(s) and to compare actual progress versus
the planned progress in order to highlight any progress deficiencies that may impact the contract milestones or
the overall project completion date.
4. CONSTRUCTION SCHEDULE
The construction schedule is established as a part of the integrated overall PMS. As soon as commissioning and
start-up sequences are better defined, the Construction Working Level 3 is progressively revised switching the
general completion based on geographical strategy to the functional system completion.
The switching of the scheduling approach is statistically known to happen when construction progress reaches
60% of completion.
The workload of each PBS subdivision, following the logic of the construction network, is analysed. Logic links
with engineering/procurement activities are clearly identified.

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This results in a commissioning/start-up oriented project logic network, where the construction programme is
driven by the commissioning/start-up targets and defines the requirements for the engineering, procurement and
logistic activities.
4.1. Level III (First phase development)
The major steps to be performed to develop Level III schedule are:
- Definition of the major activities for each major area.

- An estimation of the quantities of work to be carried out on site.
- An estimation of the SMH for construction activities.
- A plan of the construction activities workload.
- An assessment of the free floats.
_____ - An assessment of the critical path using CPM.
The documentation issued at this level is:
- Construction work load charts or graphs.

- Programs, using network analysis for each discipline and SCMC.
- S curves for the total SMHs estimated for construction.
- S curves for SMHs estimated for each discipline.
The above reported operation shall be carried out with COPR and Primavera software.
4.2. Working Level III
Once analysis, logic network and requirements are defined the detailed construction schedule is developed
considering:
- Detailed activities.
- Logic networks by areas, with free float(s) and of critical path(s).
- Workload definition, analysis and assessment by areas, and Subcontractors.
- Material arrival analysis at SCMC level.
- Drawing availability analysis at SCMC level.
- An estimation of the quantities to be erected in each construction area.
- An estimation of SMHs for each construction area.
- An estimation of the EMH and direct workforce requirements
The documentation issued at this level is:
- Logic networks, with free floats and critical path by areas.

- Workloads distribution and programmes by Subprojects areas, discipline and Subcontractors.
- Expected manpower distribution by Subprojects area, discipline and Subcontractors.
- “S” curves and manpower histograms by Sub-project area, discipline and Subcontractors.
- Weight of each activity in the framework of the overall and of each Subcontractor.
- A list of construction areas.
- A list work packages.
Consistency analysis, workload distribution and feasibility/constructability analysis are then performed to confirm
the adequacy of the construction programme.
These procedures will be carried out with the aid of the COPR programme and Primavera software.

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The agreed schedule shall become the baseline on which all recorded and reported actual progress will be
measured.
The working Level III schedule shall be continually monitored and updated with actual progress and formally
issued to Company on a monthly basis.
5. PROGRESS
5.1. Progress Monitoring – Level IV

_____ The progress associated with each basic operation will be recorded on a weekly basis with PROM and this shall
automatically give a summary of progress values from basic operations to SCMC at each level of the PBS. The
method used is based on the breakdown of the SCMC into basic operations, which permits a more detailed
objective progress evaluation.
The progress of each of these basic operations will be evaluated on weekly basis as specified in SPC.00-ZA-
E02102
Construction progress is monitored with the same PBS used in scheduling to permit effective analysis of the
achieved progress against the planned. Construction progress is also defined by Subproject, by areas, by
disciplines and by Subcontractors. The consistency between schedule and progress control methodology is
maintained in order to guarantee the efficiency of the analysis and corrective actions, if required.
In order to evaluate the construction progress, the status of single basic physical activities is monitored. The
basic physical activity is the most detailed and so at the lowest level. This promotes accuracy and a clear audit
trail and ultimately an objective progress assessment.
Progress calculation
Construction quantities are transformed into construction SMHs. Once an activity is performed totally or partially,
the relevant SMHs are achieved, totally or partially, and are recorded as earned SMHs of progress.
Example
As example, the erection of a single isometric line has a certain amount of SMHs. The flow of the activity and the
relevant breakdown of that in SMH are:
- Handling from fabrication yard to job site 5 %
- Spool assembly and erection 30 %
- Welding and bolting 25 %
- NDE Execution 10 %
- Post weld heat treatment 25 %
- QC Certificate 5 %
100 %
If the isometric line, at the moment of progress measurement, is erected but not yet welded, the earned man-
hours would be 35% of the SMH allocated for work. The ratio of the earned SMHs and the SMHs is the progress
achieved for the activity:
Earned SMH
= % progress
SMH

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The ratio of total earned SMHs to total SMHs, is the overall progress achieved. The progress is evaluated and
reported weekly.
The progress is evaluated utilising PROM programme.
All production steps of the breakdown to measure the progress with relevant weights are to be formally approved
by Company.
The SMH and weighting by SCMC against which progress is calculated are shown in COPR reports.
Progress Reporting
_____
A weekly progress meeting shall be held between the Contractor and each Subcontractor responsible for each
Subcontract. The purpose of this meeting is:
- To evaluate and agree the status of construction in percentage progress terms.

- To analyse trends.
- To forecast manpower requirements.
- To evaluate the work plan for the coming four weeks with specific emphasis to the next week.
- To identify corrective actions if necessary.
A narrative and analytical report is issued for each target function, area, discipline and Subcontractor utilising the
findings of the above meeting. This report shall constitute the basis of the Monthly Construction and Progress
Report.
5.2. Productivity Analysis (K Factor)
At planning phase the calculated SMH for each Subcontractor are converted into EMH by multiplying an
expected productivity factor K1.
SMH x K1 = EMH
The Subcontractors EMH are utilised to plan the resources (manpower and equipment) that are required to
achieve the construction targets and end dates.
The expected productivity factor (K1) is defined by the experience gained in similar activities, circumstances and
environment.
AMHs for each work package are reported on a daily basis by the Subcontractor by means of the daily and
consolidated personnel reports. These reported man-hours are entered into COPE and utilised as detailed
below.
A productivity analysis of each Subcontractor is to be performed together with the progress evaluation. The
Subcontractor’s achieved productivity (K2) is defined as the ratio between the AMHs expended and the earned
SMHs achieved as measured from the installed quantities:

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AMH Subcontractor’s Productivity Factor
Earned SMH = (K2)
Example
If the actual man-hours expended = 150

If the earned SMHs = 100
150 = 1.5
100
The Subcontractor’s achieved productivity is expressed as a K2 factor of 1.5.

_____
At the end of every reporting period the Subcontractor’s achieved productivity factor (K2) is compared with the
expected productivity factor (K1) and the necessary planning readjustments made.
6. RESPONSABILITIES AND ACTIONS
It is responsibility of the Subcontractor to provide all actual information to update the established control system
and schedules described in this procedure on a weekly basis and with agreed formats.
Contractor’s Project control team will run all analyses in terms of (but not limited to):
- Changes in quantities.
- Differences between estimated K1 and actual K2 attributable to internal and external causes of the
Subcontractor.
- Deviation from planned sequences of work depicted from applicable schedules.
- Accrued delays against scheduled progress curves.
Progress analysis shall be run on weekly basis and results as well as impacts and proposed corrective actions
shall be passed to construction management to evaluate and eventually implement the most appropriate action
to correct the recorded situation.
If the situation is such that a revision of the schedule is required, then the revision shall incorporate the
followings:
- Updated status of E&P deliverables.

- Actual progress of construction activities.
- Changes in sequencing if necessary based on site situation.
- Available resources in terms of quality and quantity.
- Latest recorded productivity factors (K2).
- Other factors if any.
- Recovering of delays with the time defined by the PMS.

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7. CONSTRUCTION PBS (EXAMPLE)
_____


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CLIENT JOB UNIT

PLANT LOCATION MEXICO

CONSTRUCTION PROGRESS MEASUREMENT PROCEDURE