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MINERA ESCONDIDA LIMITADA ESCONDIDA NORTE PROJECT
PROJECT EXECUTION PLAN FOR ESCONDIDA NORTE
Issued for Project Use
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MINERA ESCONDIDA LTDA. Proyecto Escondida Norte
PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0
Table Of Contents
1.0 Project Description
1.1 General Project Description and Objectives
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4
2.0 Project Scope of Work

2.1 MEL Expectations 2.2 Scope of Work by Hatch
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5 5
3.0 Project Organisation

3.1 MEL Organisation Chart 3.2 Hatch Organisation Chart 3.3 Team Effectiveness
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8 8 8
4.0 Scope of Work By Others 5.0 Performance Requirements

5.1 Market Performance 5.2 Business Performance 5.3 Key Performance Indicators 5.4 Project Key Completion Dates 5.5 Project Risk
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9 9 10 10 10
6.0 Execution Strategy

6.1 Work Breakdown Structure 6.2 Contract Packaging 6.3 Preferred Sub Contractors
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11 11 12
7.0 Roles and Responsibilities

7.1 MEL Responsibilities 7.2 Hatch Key Personnel Responsibilities 7.3 Authority Levels and Approvals 7.4 Responsibility Matrix
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12 13 16 17
8.0 Project Schedule and Resources

8.1 Project Kick-Off 8.2 Overall Project Schedule 8.3 Project Staffing Plan 8.4 Labour Requirements
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20 20 20 20
9.0 Project Management Deliverables

9.1 Management Plan 9.2 Project Systems 9.3 Scope Cost and Time Management
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21 23 25
10.0 Health, Safety, Environment and Community

10.1 Health and Safety 10.2 Environment and Community
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25 25
11.0 Engineering
11.1 Key Engineering Design Strategies 11.2 Engineering Deliverables Schedule 11.3 Design and Constructability Reviews 11.4 Engineering Progress Measurement 11.5 Drawing Signature Requirements 11.6 Engineering Deliverable History Files 11.7 Drawing Master Markup Files 11.8 Design Codes & Standards 11.9 Engineering Estimating
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26 26 27 27 28 29 30 30 31
12.0 Procurement Plan 13.0 Construction and Commissioning Plan 14.0 Industrial Relations Plan 15.0 Project Administration
15.1 Change Management 15.2 Meetings 15.3 Document Management 15.4 System Backup
Hatch Ltda. Project N 314137
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15.5 Project Identification & Numbers 15.6 Language and Engineering Units 15.7 Work Locations 15.8 Project Organization & Key Personnel 15.9 Confidentiality 15.10 Communications Protocol 15.11 Distribution Matrix 15.12 Project File 15.13 Expense Reports
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16.0 MEL Satisfaction Reviews 17.0 Quality Assurance / Quality Control Plan
17.1 General 17.2 Design Reviews 17.3 Equipment Quality Verification
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49 52 52
18.0 Project Reporting

18.1 Manhour and Expense Reporting and Invoicing 18.2 Engineering Progress Reporting 18.3 Procurement and Project Administration Reporting 18.4 Monthly Reports
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53 53 53 54
19.0 HANDOVER TO CLIENT 20.0 Project Close-Out

20.1 General 20.2 Project Archiving
Appendix A Organisation Chart Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Appendix I Appendix J Appendix K Appendix L Appendix M Appendix N Appendix O Appendix P Appendix Q Appendix R Appendix S Appendix T Appendix U Hatch Organisation Chart Authority Levels and Approval Limits Project Kick-Off Meeting (Minutes of Meeting) Overall Project Schedule Project Staffing Plan Engineering Deliverable Schedule Design Requirements Project Controls Plan Project Procurement Plan Project Change Control (PCA/DCN) Human Resources Management Plan HSEC Management Plan Engineering Management Plan Construction and Commissioning Management Plan Risk Management Plan QA/QC Management Plan Deliverable History Files and Checklists Contracts Plan MEL Satisfaction Review Engineering Procedure
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56 56
MEL
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1.0 1.1
PROJECT DESCRIPTION GENERAL PROJECT DESCRIPTION AND OBJECTIVES
Minera Escondida Limitada (MEL) has awarded the Engineering, Procurement, Construction Management Contract to Hatch for a new materials handling system for the Escondida Norte open pit. Ore from the Escondida Norte open pit mine will be crushed at the pit rim, and then transported by conveyor belts to the Escondida concentrators. The major infrastructure requirements include the facilities for crushing and transporting the ore, support workshops for equipment maintenance, offices, and a number of modifications to existing road and rail infrastructure. Work carried out by MEL to advance the Project to Basic Engineering level was based on the following objectives: Develop of Basic Engineering of the required infrastructure. Develop an estimate of the investment cost of the infrastructure with a precision of between 10% and 15%. Develop the infrastructure planning of the following phases of the Project, up to commissioning. Existing milling and concentrating facilities will be used to process the ore from the proposed Escondida Norte mine, but the Project will require the procurement and installation of a primary crusher and conveyor belts, and the construction of maintenance workshops and administrative offices. The overland conveyor system will deliver crushed ore to a distribution silo that will feed the existing Laguna Seca or Los Colorados concentrators. A pre-mine phase to be performed by the Owners Mine Operations (and not part of the Scope of Works of this Contract) will involve moving 450,000 tonnes / day of waste rock during a period of some 22 months and the acquisition of equipment for mining operations (shovels, mining trucks and supporting equipment). The pre mine activities will run concurrently with the EPCM activities and part of the overburden extracted from the mine area will be used by Mine Operations to construct various platforms for the Project. The Project life has been estimated to be at least 17 years. The following are the principal components of the Escondida Norte Project: Construction of roads within the mine area and joining Escondida Norte with existing Escondida road infrastructure. Procurement and installation of a primary crusher station. Procurement and installation of covered conveyor belts to transport ore. Procurement and installation of electrical substations and high and medium voltage power transmission lines. Procurement and installation of an ore discharge silo. Construction of railway and international road crossings, secondary roads and pipes.
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Construction of facilities for the storage and distribution of fuels for mine equipment. Construction of maintenance workshops. Construction of offices for administration and operations staff. Construction of a wastewater treatment plant. Construction of tanks for industrial and potable water. Procurement and installation of a reverse osmosis plant for the production of potable water. Use of an existing industrial solid residues dump. 2.0 2.1 PROJECT SCOPE OF WORK MEL EXPECTATIONS
The purpose of this section is to identify MELs expectations of project outcomes, perceptions of project performance and measures of success. To achieve zero lost time injuries. To increase the safety, productivity, efficiency and flexibility of the operation. To have zero equipment damage. To complete the project within the budget. To complete the project within the agreed completion date. To achieve or better the specified performance criteria of the new equipment. To provide a quality product that instills pride in all involved. 2.2 SCOPE OF WORK BY HATCH
The Scope of Work is the basic element of the plan for the Project. It provides descriptions of the Packages and is the basis for all technical documentation, the estimate and the project control schedule. A close relationship is maintained between the Scope of Work, Control Budget and Control Schedule and any modification to the Scope of Work is captured through the Project Change Management procedure identified in section 15.1. Refer to Appendix U for the current version of the Agreement. This is a controlled document and maintained by the Deputy Project Manager. Following is a brief overview of the Scope of Work Provided by Hatch as identified at Project commencement. The Scope of Work and required schedule for the Project requires close communication and coordination among all Project participants. Hatch will provide Engineering, Procurement and Construction Management services for MEL to create a cooperative, productive work environment and a positive relationship between all Project
participants to enable the success of the Escondida Norte Project. In addition to Hatchs knowledge of the facility and the Project, Hatchs locations in Santiago and Antofagasta provide an obvious advantage for the provision of EPCM services for the Project. Project Management Services Project success is an outcome of comprehensive preparation, planning and execution. Through the application of a comprehensive project delivery system, which includes the evaluation, selection and application of appropriate Value Added Engineering (VAE), project life cycle can be minimized, costs can be optimized and technical goals can be achieved. The VAE effort must take place in the initial periods of the Project and all aspects impacting the Scope of Work of the Project must be finalised to ensure cost, schedule and Project requirements are met or exceeded. Hatchs Project Management Services will be implemented throughout the Project, and include the following core and value-added features: The preparation and implementation of this Project Execution Plan, specifically tailored to the Escondida Norte Project. This Plan guides the activities of all project participants. Detailed design for all equipment facilities. Engineering detail design as further described below Procurement and contract administration including preparation of tender packages, tender management, assessment and preparation of letter of recommendation including daily management through to close out of the contracts/packages, including monitoring of contracts during the warranty period. Site construction management as further described below Project services in support of MEL procurement activities. These services include: coordination of technical and commercial activities required to complete the evaluation of Vendor quotes for the equipment packages and to enable MEL to award purchase orders for the equipment; coordination of technical and commercial activities required to facilitate MELs procurement of all other required equipment and services; expediting of all Vendor equipment; and management of a Vendor surveillance and source inspection/shop testing plan. Basis for this work is the outcome of the Basic Engineering Study Development, implementation and maintenance of a Project Master Schedule, including all engineering, procurement, construction and startup/testing/commissioning activities. Project scope control through implementation of a change control procedure. A disciplined approach to communication and coordination via project reports and access to information to enhance the ability of MEL and other key project participants to understand key issues and associated progress. Coordination and tracking of critical activities of all project participants through regularly conducted project status and review meetings. Establishment and maintenance of a Project Filing System. Assembly and distribution of the Equipment Operating & Maintenance Manuals provided by the OEM.
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Preparation of the start-up, testing and commissioning plan (with significant input from the crusher and OLC OEM, MEL operations / maintenance personnel and Hatch engineering personnel). Preparation of As Built Drawings. Utilization of the following Industry Best Practices or VAEs: Planning and Design for Safety; Planning and Design for Start-up; OEM Management; Constructability Analysis and Review and cost estimating and forecasting. Management of oversight and commitment to meeting or exceeding the Project goals and objectives.
Construction and Engineering Services Hatch will provide the following engineering services to support the procurement, Construction installation, start-up, testing and commissioning activities for the Escondida Norte Project: Develop and implement a Health, Safety, Environment and Community plan for the Project. Develop and implement an Industrial Relations Plan for the Project. Develop and implement a Design Basis for the project, including technical parameters and design criteria for Vendor and construction engineering. Implement Design for Start-up and Design for Safety features into the final design. Establish an engineering document production protocol and procedures, including definition of CAD requirements. Implement a Document Management & Control System and procedures for handling all engineering & controlled project documents, including Vendor, construction engineer and construction Contractor documents. Establish review and approval procedures for all engineering documents, including all Vendor, construction engineer and construction Contractor documents/submittals. Conduct periodic design review meetings at appropriate times throughout the Project to ensure proper coordination between all parties and disciplines involved in the design, as well as consistent quality of work and compliance with the design basis. Participate in constructability review meetings with MEL, the OEMs and the construction Contractor to facilitate the safest, most cost effective and most time effective installation effort. Provide technical consultation during construction, start-up, testing and commissioning. Provide technical consultation, information (i.e., drawings and technical data for permit applications) and assistance to MEL and the Construction Contractor for obtaining necessary permits. Prepare documentation to define the technical scope and requirements for construction work.
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Finalize the technical specifications and bid evaluations for all equipment. Prepare Facility Plans, Layouts and General Arrangement Drawings showing the new equipment (based on the selected OEMs equipment). Conduct layout review meetings with MEL and the crusher OEM and obtain MELs formal approval of the final facility layout and equipment arrangement. Prepare layout and detail design drawings as necessary to facilitate installation of the new equipment. Determine the electrical supply and distribution requirements. Develop and implement construction activities commensurate with the scope of the Project.
3.0 3.1
PROJECT ORGANISATION MEL ORGANISATION CHART
The MEL organisation chart is as shown in Appendix A of this document. A complete listing of all the MEL key project team members is identified in section 15.8. 3.2 HATCH ORGANISATION CHART
The Hatch organisation chart is as shown in Appendix B of this document. A complete listing of all the Hatch key project team members is identified in section 15.8. 3.3 TEAM EFFECTIVENESS
A functional, effective and efficient networked organisation that is focussed on specific goals is one of the major objectives for the Escondida Norte Project. With numerous parties being engaged on an as-required basis, through design briefs, consultancies and contracts, the need is increased for a shared vision, alignment, integration, communication and co-operation in the team. Initially the focus will be on integrating the Project team members and all key personnel, including the MEL Project team members located in the Carmencita Project office, into an effective group supplemented by alignment sessions as new members join the team through Project mobilisation. The Project Manager will place considerable emphasis on interpersonal communication in carrying out routine activities and will be supported in part by the following: Project Execution Plan being the basis for sharing of objectives, requirements, standards, procedures, scope of work, interfaces and quality. Regular formal and informal verbal and written communications on wide-ranging matters to ensure all people are kept informed on an as-needed basis. Establishment of meeting protocols. Implementing the latest available communication technologies as appropriate.
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Management of Project information and data using systems and tools. Regular and informal social gatherings. Regular peer and management reviews.
4.0
SCOPE OF WORK BY OTHERS
At the commencement stage of the Project four areas are known to involve scope to be supplied by Others. These areas include: The Primary Crusher by Fuller. The Overland Conveyor by Man Takraf. The Utility Facilities. The Main Power Supply.
5.0 5.1
PERFORMANCE REQUIREMENTS MARKET PERFORMANCE
Insert MELs comments on the Market performance Criteria etc Including describing the projects functional and/or performance requirements including MELs expectations in relation to: 5.2 Maintainability Operational level Availability Commonalty of equipment selection KPIs etc.
BUSINESS PERFORMANCE
Insert MELs comments on the business issues which are relevant to MEL including: Market Return on investment Flexibility of design Disposal at end of plant life etc
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5.3
KEY PERFORMANCE INDICATORS
Detailed project performance indicators are summarised below: [To be Agreed and Inserted] 5.4 PROJECT KEY COMPLETION DATES
The Project was approved by the MEL on July,14 2003, and the key completion dates are: Issue Tender documents for the Primary Crusher Issue Tender documents for the OLC Issue Tender documents for the Power Transmission Issue Tender documents for the Workshop Commence Construction Project Mechanical Completion Final completion date 5.5 PROJECT RISK 01/07/2003 21/10/2003 28/11/2003 31/08/2003 24/07/2003 30/06/2003 30/08/2005
The Project is exposed to particular areas of risk. These include; ROM Ore Supply Material Properties Contractor Performance Design Errors Reliability of Equipment Industrial Relations Materials handling Quality and Volume Inclement weather Availability and Skills of local labour Access to operational areas Foreign Exchange
To ensure areas of risk are identified and adequate management measures are implemented, a Project Risk Management Plan will be developed. The areas of focus for the Risk Management Plan include:
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Technical Consideration to operability and controllability of the entire installation under the stipulated parameters for operation by MEL in the short term but also for the long term, given the differing production requirements. Commercial Consideration to market fluctuation risk and the impact to Escondida. Production Consideration to Operational aspects of risk associated with the new installation. Environmental Consideration for the environmental risks associated with the installation of the Primary Crushing facility through the discharge points of the Los Colorados and Laguna Seca discharge points. Contracting Methodology Consideration will be given to the Contracting methodology for the control of the Sub Contractors providing services to the Project. As risk are identified they will be listed in the Project Risk Register, which will be updated on a monthly basis to ensure that optimum control and mitigation measures are maintained. 6.0 EXECUTION STRATEGY
The following section describes the broad execution strategy for the Escondida Norte Project including, the Contracting packaging methodology and the preferred Sub Contractors. Based on the packaging break up, a Contract Plan has been developed which indicates the Contracts to be awarded, interfaces involved, the type of Contract envisaged, preliminary bidders list, plus the responsible engineer and contract engineer allocated to the package. Refer to 314137 Project Execution\PEP\CPxxx for the Base Line version of the Contract Plan. This is a controlled document and maintained by the Contracts Manager. 6.1 WORK BREAKDOWN STRUCTURE
The Project has been divided into a Work Breakdown Structure suitable for the way the Project is to be managed and handed over to MEL. Refer to 314137 Project Execution\PEP\WBSxxx for the Base Line version of the Project Work Breakdown Structure. This is a controlled document and maintained by the Project Controls Manager. 6.2 CONTRACT PACKAGING
The Project will be broken down into distinct Contract packages and shall be standardised as much as possible with the existing Escondida Operation. The Project Scope of Work contents is described in section 2. The Contract Packaging structure is based around 4 major Design and Construct packages being: The Crusher. The Overland Conveyor .
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6.3
The Utilities and Buildings. The Power Supply to the Project.
PREFERRED SUB CONTRACTORS
Following is a list of the preferred Sub Contractors to be used on the Project. Prior to the Contract formation with any Sub Contractor, confirmation of MEL approval to the use of the preferred Sub Contractors will be undertaken by Hatch. Fuller Primary Crusher MANTakraff Overland Conveyor ARA Workshops, offices and auxiliaries Power Transmission Line Ingendesa
The Contracting methodologies for the management of the Sub Contractors shall be determined through the early stages of the Project. Each method will consider the risk to the Project, the Health, Safety, Environment, Community and Industrial Relations aspects of each Sub Contractor as well as the technical and commercial impacts associated with the execution. 7.0 7.1 ROLES AND RESPONSIBILITIES MEL RESPONSIBILITIES
The responsibilities of MEL, shall be as described in the EPCM Agreement for the Project and include: Set Project Objectives and prepare and/or approve the required specifications, setting out the design criteria and performance requirements for the Project. The specifications shall be periodically reviewed against the Project Scope of Work and Capital Estimate. Obtain Project approvals, including environmental, development and statutory approvals. Approval of expenditure and commitments in accordance with the Project Execution Plan. Liaise with Chilean Government representatives. Engagement of operating staff and arrange training for all Escondida Norte Operations Personnel. Facilitate payment of all project invoices. Approve appointment of Contractors, Subcontractors and Consultants.
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7.2
Approve the Project Team, implementation strategy and programme. Provide access to the Site in accordance with the Project Schedule. Approve any changes/variations to the Scope of Work, Capital Estimate and Schedule. Insurance of the Works. Set up commercial organisation and business systems. Set up maintenance and production structure and systems as a result of the Project. Management of Industrial relations issues other than those relating to the Project during Construction. Management of Employee Relations issues other than those relating to the Project during Construction. Participate in Risk Management, e.g. HAZOP processes
HATCH KEY PERSONNEL RESPONSIBILITIES
The following key Hatch personnel shall have responsibilities as identified (a detailed position description is available for each staff member): Project Sponsor [PS] Overviews the execution of the Project, with particular liaison with the Project Manager, to ensure that the project objectives are being met. Responsible for providing Hatch commitment to the Project at the highest levels.
Project Manager [PM] Overall responsibility for achieving the Companys Project objectives under Hatchs project management and construction function. Directs the Project work through area and functional managers, maintaining a focus on the Project objectives and the safe and effective delivery of the Works Principal and formal point of contact for all project communications Reviews design and project engineering outputs against scope. Monitors progress against plans for Hatch and other project activities. Overall responsibility for delivery of the Project. Reviews the Project Execution Plan Reviews the Project Change Control Register on a monthly basis.
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Reviews and provides comment on Project Monthly Report. Reviews Close-out of Project.
HSEC Manager [HSCM] Responsible for the development, maintenance and delivery of the Health, Safety Environment and Community Plan through all Project phases. Reports on all safety statistics including near misses and is responsible for the investigation into all accidents and incidents on the site and in the design office. Responsible for the management of hazard and personal risk requirements of the Project implementation. Responsible for generation and transfer of safety information to the workforce, safety compliance, reviews, induction programme, first aid centre establishment and operation of random safety auditing to ensure compliance. Responsible for establishing, auditing and reporting of the environmental issues associated with the Project through all Project phases.
Engineering Manager [ENGM] Responsible for the overall design of the Project. Responsible for coordinating the design by consultants or as part of the Contract Works, and all technical documentation for the Project. Responsible for the undertaking and implementation of Value Added Engineering. Responsible for the management and coordination of the safety and Hazard and Operability HAZOP studies for the Project. Responsible for the development of the overall design criteria for the Project and the engineering work carried out by Consultants. Manages the preparation of project operation manual
Quality Engineer [QE] Responsible for identifying, implementing, managing and continually improving the effectiveness of the processes that are necessary for the success of the Project. Responsible for the management of the interaction of the processes to achieve the objectives of the Project, including senior management action, project delivery, relevant support processes and monitoring and measurement of procedures. (Plan Do Check Act methodology)
Project Control Manager [PCM]
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Responsible for all project coordination and control systems involving estimates, scheduling, work packaging, cost control, progress claims, invoicing, administration, progress monitoring, reporting and forecasting. Responsible for the maintenance of the Project Execution Plan, Project Scope of Work, Project Estimate and Project Controls Schedule documents to ensure that they are current and the time and cost impact of any changes are assessed. Responsible for the control and impact assessment and incorporation of Project Change Authorisation (PCA) notices and Design Change Notices (DCN).
Procurement Manager [PRCM] Responsible for the preparation, issue and assessment of pre-qualification for selected packages. Responsible for preparation, issue, commercial assessment, Contract award and Contract management including warranties, guarantees for all supply and construction Contracts and Purchase Requisitions. Responsible for expediting, inspection and transportation of all Hatch supply items. Acts as the Project Managers nominated person for the management of Contracts.
Industrial Relations Manager [IRM] Establishes appropriate rates of pay, and conditions of employment for employees of Contractors on site. Co-ordinates Contractors Industrial Relations conduct (eg Site Procedures and Site Co-ordination Meetings). Assesses Industrial Relations capabilities of Tenderers and Contractors. Key member in settling industrial disputes. Negotiates and advises any new conditions of employment. Interviews Contractors, explaining site procedures. Liaises with MEL personnel. Provides advice to the Construction Manager on all Industrial Relations issues.
Construction Manager [CM] Responsible for the overall management of all construction activities on site to ensure completion of the Work in accordance with the safety, environmental, cultural, local community, time, cost, quality and industrial relations requirements. Responsible for the direction and coordination of the site activities of all Contractors.
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Responsible for the daily liaison with MEL regarding activities on site and reports directly to the Project Manager. Acts as the Project Managers nominated person to be the Companys representative in Contracts once they have been released to the Field.
Commissioning Manager [CMM] Responsible for identifying, implementing, managing and continually improving the effectiveness of the processes that are necessary for the success of the Project. Directs, controls and co-ordinates the Project commissioning activities. Ensures that the Project handover and training is carried out to MELs requirements. Ensures the Commissioning Schedule is met. Responsible for the development of a co-ordinated commissioning plan.
7.3
AUTHORITY LEVELS AND APPROVALS
The authority levels and approvals limit for Project personnel associated with package budgets, award of Contracts and orders and associated payment of progress claims and invoices shall be as set out in Appendix C. This document is a controlled document and is maintained by the Project Manager.
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7.4
RESPONSIBILITY MATRIX
The specifics of responsibilities of the parties involved are indicated in the following table: Table 7.4-1: Engineering, Procurement and Construction Management Assignment of Responsibilities
ACTIVITY ENGINEERING 1. Materials Handling Flowsheets 2. Equipment Specifications 3. Plot Plans 4. General Arrangements & Layouts 5. P & I.D.'s 6. Detail Engineering 7. Construction Contract Specifications 8. Quality Assurance/HAZ-OP 9. Spare Parts List 10. Manuals - Equipment - Start-up & operating PURCHASING 1. Formulate Purchasing Policies 2. Prepare Purchasing Procedures 3. Prepare General Conditions for Purchasing 4. Prepare List of Qualified Bidders 5. Prepare Inquiry Documents 6. Issue Inquiries 7. Receive Bids 8. Deal with Queries from Bidders 9. Bid Analysis and Recommendation and Selection of Supplier 10. Prepare Purchase Requisition 11. Approve and Issue Purchase Order 12. Maintain Purchase Order Register 13. Reporting on the status of all Purchase Orders EXPEDITING AND INSPECTION 1. Formulate Expediting Policies 2. Prepare Procedures for Expediting and Inspection 3. Evaluate Quoted Deliveries from Recommended Supplier 4. Prepare Expediting Visit Register 5. Expediting of Engineering Information 6. Expediting of Equipment, etc. 7. Co-ordinate Inland Freight and Warehousing 8. Obtain Shipping Documents 9. Co-ordinate Ocean Freight 10. Co-ordinate Inspections 11. Monitor Overall Quality Assurance (QA) Program 12. Issue of Periodic Reports MEL I A A I A A A I HATCH R R R R R R R R R R R1 R1 R R R R R R R R R R R R R MAN Takraf Crusher ARA
I I I (R2) I I (R2) I I R2 R2 R2
I I (R2) I I (R2) I R2 R2 R2
I I (R2) I (R2) I R2 R2 R2
A I I I A I
A A
R R R I I R R R R R R R R R
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ACTIVITY ESTIMATING 1. Prepare forms and Procedures for Cost Estimates 2. Review Plant Area Assignments & Descriptions 3. Prepare Initial Equipment, Material, Commodity, System List 4. Prepare Work Breakdown Structure 5. Prepare Definitive Estimate Used for Control 6. Prepare Estimates and Budgets for Change Orders Covering Changes in Scope 7. Prepare Check Bid Estimates 8. Prepare Check Estimates for Field Changes COST CONTROL 1. Prepare Forms and Procedures for Cost Control and Cost Monitoring 2. Prepare Code of Accounts for Asset Classification and Capitalisation 3. Allocate Budget Values from Control Estimate for Commitment Comparison 4. Issue Project Cost Statements Indicating Forecasts of Costs on the Overall Project 5. Issue Change Orders 6. Allocate Budgets for Change Orders 7. Prepare Forecasts and Charts of Commitments, Expenditures, Manpower and Progress 8. Receive Cost Data from Engineering, Accounting, Procurement and Construction and Incorporate in Monthly Project Cost Statements 9. Call Attention to any Significant Variation Between Actual and Scheduled Performance and Recommend Corrective Action 10. Prepare and Issue Following Reports: - Monthly Project Cost Statement - Cost and Commitment Reports - Actual -vs.- Forecast Purchase Commitments - Cash Flow Reports - Other Related Reports as Required 11. Process Invoices and Prepare Payment Certificates 12. Issue Payments PLANNING AND SCHEDULING 1. Prepare Initial Master Plan and Schedules Indicating the Sequence and Timing of Individual Activities 2. Prepare Summary Schedules of all Significant Activities of Engineering and Construction 3. Prepare Initial Detailed Schedule Showing Sequence and Timing of Individual Project Activities for Engineering 4. Prepare Procurement Schedule, Status Reports and Shipment Schedules Based on Overall Project Schedule, and Record Receipt of all Equipment and Materials 5. Monitor Equipment Procurement Schedule Reporting on all Activities from Specification to Issued P.O.'s
MEL I I I I A A I
HATCH R R R R R R R R R
MAN Takraf I I
Crusher I I
ARA I I
I I I
I I I
I I I
R R R
R R
I I R R
R R R R R R I R R R R I I I
A R A
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ACTIVITY 6. Prepare Detailed Schedules Showing Sequence and Timing for Individual Contracts for Construction (Input from Construction Contractor) 7. Revise Master Schedule, Detailed Schedules and Summary Schedules as Required 8. Prepare Performance Status Reports on Manhours for Engineering and Construction 9. Prepare Manpower Histograms and "S" Curves 10. Prepare Quantity Histograms and "S" Curves 11. Maintain and Report Actual Progress on Master Schedules, Detailed Schedules and Summary Schedules 12. Call Attention to any Significant variation Between Actual and Scheduled Performance, and Recommend Corrective Action CONTRACTS 1. Formulate Contract Policies 2. Prepare Procedures for Contracts 3. Prepare General Conditions of Contract 4. Prepare List of Qualified Bidders 5. Prepare Inquiries for Construction 6. Prepare Contract Price Breakdown 7. Issue Inquiries for Tender 8. Receive Tenders 9. Deal with Queries from Tenderers 10. Tender Analysis and Recommendation 11. Prepare Construction Contracts 12. Approve and Issue Contracts 13. Maintain Contract Register CONSTRUCTION MANAGEMENT 1. Prepare Health, Safety, Environment and Community Project Plan 2. Provision of Safety Officers 3. Area Supervision of Contractors (Quality, Schedule and Cost) 4. Engineering Supervision, Field Engineering and Co-ordination and Quality Control 5. Field Cost Control, Field Accounting, Control of Change Orders and Field Work Orders 6. Drawing Control and Site Distribution of Engineering and Vendor Drawings 7. Checking and Approval of Shop Drawings 8. Receiving of Materials and Equipment (Owner Supplied) and the Distribution to Contractor(s) 9. Liaison with Contractor to Determine Material/Equipment Required and Expediting from Field where Necessary 10. Scheduling of Construction Activities, Liaison with Contractor(s) and Reporting Performance Status of Contractor(s) 11. Provision of Security Services 12. Labour Relations 13. Site Administration 14. Medical Facilities 15. Provision of Fire Protection Services 16. Commissioning 17. Startup
MEL
HATCH R
MAN Takraf I
Crusher I
ARA I
R R R R R R
A A I A I
A A
R R R R R R R R R R R R R R R R R R R R R R R R R R R R R I I I I
I R
I I
I I
I I
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R (Responsible) Identifies the group responsible for the preparation of the Item. I (Involved) Identifies the group responsible to provide input into the preparation of the item. A (Approval) Identifies the group responsible for approving the prepared item. R1 Responsible for the review, acceptance and submission of documentation prepared by others. R2 Responsible for the preparation of documentation related only to their supply.
8.0 8.1
PROJECT SCHEDULE AND RESOURCES PROJECT KICK-OFF
The Project kick-off meeting occurred in the Santiago MEL Office on 29 th July 2003. Minutes of the kick-off meeting are included in Appendix D. 8.2 OVERALL PROJECT SCHEDULE
The overall Project schedule is included in Appendix E. 8.3 PROJECT STAFFING PLAN
The staffing plan for the project is identified in two stages, namely the Engineering effort in Santiago (Carmencita) office and the Construction effort on site. Engineering Staffing Plan is included in Appendix F and identifies the manhour loading of the Design Office. The Construction Staffing Plan is also included in Appendix F and identifies the manhour loading for the site Construction. This plan shall be reviewed once the site Construction Contracts have been awarded. 8.4 LABOUR REQUIREMENTS
The requirements and source of labour to deliver the project including Hatchs scope of services and work undertaken by consultants and Contractors is described in the Project Human Resources Plan. Engineering labour for the design effort will be located in the Escondida Norte Project office in Santiago. Hatch employees will undertake the key engineering roles, whilst the team built up around the key engineering staff will be either staff or contract employees. A similar structure will be the case for the Construction effort. The working conditions for Project personnel are identified in the Project Human Resources Plan. This plan identifies accommodation, housing, transport, allowances, salary uplifts, working conditions and hours of work in a typical week for people located in the Santiago Project office and at the Escondida site during construction. It also identifies recruitment practices of transferring staff, new staff and contracting staff, staff performance appraisals, planning and management of training programmes and administration of leave (annual, sick, special and long service).
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9.0 9.1
PROJECT MANAGEMENT DELIVERABLES MANAGEMENT PLAN
General The Escondida Project is to be managed in accordance with Hatchs Project management philosophies, preferred project structure and documented processes. The following sections describe how these will be implemented in relation to the Escondida Norte Project. Particular Management plans are referenced in this document. Those management plans and their target dates for completion are as follows; Human Resources Management Plan Health, Safety, Environment and Community Management Plan* Industrial Relations Management Plan* Engineering Management Plan* Procurement Management Plan* Construction and Commissioning Management Plan* Risk Management Plan* November 2003 December 2003 December 2003 December 2003 December 2003 December 2003 November 2003
Note: * Once the identified Management Plan has been prepared it will be included in the appendices to this Project Execution Plan
The following deliverables are to be developed by the Project Manager during the execution of the Contract. This list does not include deliverables to be provided as part of the Project Scope of Work (e.g. equipment, infrastructure etc.)
Deliverables Project Management Deliverables Project Execution Plan Health, Safety, Environment and Community Management Plan Engineering Management Plan Safety Procedures Environmental Procedures Safety Audits Environmental Audits Industrial Relations Plan Deliverables Industrial Relations Procedures Project Procedures
Responsibility PM HSCM ENGM HSCM HSCM HSCM HSCM ERM Responsibility ERM PCM
Number 1 1 1 As Required As Required As Required As Required 1 Number As Required As Required

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Project Human Resources Plan Contracting Plan Packaging Plan Project Control Schedule Engineering Progress Reports Commitment Forecasts Construction Progress Reports Physical Progress Reports Procurement Progress Reports Cash Flow Forecast Quotation and Purchase Register Contract Register Tender Evaluations - Technical Tender Evaluations - Commercial Construction Contracts Register Cost Reports Operating Manuals Definitive Estimate Definitive Schedule Environmental Management Compliance Reports Special Technical Reports Risk Management Plan Procurement Equipment and Materials Quality Assurance Criteria Quality Assurance Programme Equipment Standards Equipment Op and Maint. Manual Data Material Requisitions Tenderer Lists - Recommendations Invitation to Tender Conformed Contracts and Orders Inspection Reports Deliverables Expediting Reports Despatch and Receival Reports Material Status Reports
PM PM/CONM PM/CONM PCM ENGM PCM CM/PCM CM/PCM PRCM PCM PRCM PRCM ENGM PRCM CONM PCM ENGM PCM PCM HSCM ENGM QCM
1 1 1 1 Monthly Monthly Monthly Monthly Monthly Monthly 1 1 As Required As Required 1 Monthly As Required 1 1 As Required As Required 1
QCM QCM ENGM ENGM PRCM PRCM PRCM PRCM PRCM Responsibility PRCM PRCM PRCM
1 1 As Required As Required As Required 1 As Required As Required As Required Number As Required Monthly Monthly
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Construction Construction Plan Site Safety Plan Human Resources Forecast Transport and Logistics Plan Quality Assurance and Control Criteria Quality Assurance and Control Programme Quality Assurance Reports Schedules Commissioning Plan
Legend: PM Project Manager ENGM Engineering Manager ERM Employee Relations Manager CONM Contracts Manager PRCM Procurement Manager
CM HSCM CM PRCM QCM QCM QCM PCM CM
1 1 Monthly 1 1 1 As Required Monthly 1
HSCM HSEC Manager PCM Project Control and Contracts Manager CM Construction Manager QCM Quality Controls Manager
9.2
PROJECT SYSTEMS
The systems to be implemented during the Escondida Norte Project Execution Phase are broken down into groups/disciplines as shown in the following table. Systems to be Used Group / Discipline Project Management System IPAS IPAS Primavera P3 MySAP HEMS MS Office IPAS Workshare Description Project and Contracts Management Tools Project Document Management Module Planning and Scheduling Cost, Resource and Time Management Service Model for Project progress / Budget Forecast reporting Word documents, databases Excel and Access
Procurement System Module Bid Release through Internet Portal for Procurement and Contracts
Engineering Management
HEMS Eng Engineering Progress Management
Status
and
Progress
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Group / Discipline
System InfoStream MS Office AutoCAD
Description Engineering Drawing/Document Control Word documents, databases Piping and (P&IDs) Excel and Access Diagrams
Instrumentation
Civil & Structural
SpaceGas AutoCad
Structural Analysis Drawings Mechanical Equipment List and Design Data Word documents, databases Mechanical GAs Conveyor Design Software Instrumentation Design and Data Sheets Word documents, databases Excel and Access Excel and Access
Mechanical
Mechanical Equipment Database MS Office AutoCad Beltstat
Instrumentation
In-Tools MS Office AutoCad
Instrument Location GAs and Hook-Ups Word documents, databases Excel and Access
Electrical
MS Office MathCAD AutoCad
Electrical simulations and calculations for harmonic penetration analysis. SLDs, Schematics Diagrams, and GAs and Termination
Project Services
Infostream Project Directory
Document and Drawing Control Project Portal Materials and Cost Management HSEC Management and Reporting Word documents, databases Excel and Access
Construction & Commissioning
IPAS SiteSafe MS Office
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9.3
SCOPE COST AND TIME MANAGEMENT
The responsibility for monitoring and reporting on scope, cost, and time lies with the Project Contracts and Controls Manager. To facilitate this he will use the following tools: 10.0 IPAS Hatchs proprietary integrated Project Administration System database HEMS Hatchs proprietary Hatch Engineering Management System database Infostream Document Control Progress software Primavera P3 Scheduling software SAP Accounting software HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY
HSEC management is a non negotiable fundamental requirement for any Projects undertaken by Hatch and stipulated by MEL. The significant importance and consideration to the processes including measure, monitor, audit and act are defined in the HSEC Management Plan. The HSEC Management Plan is included in Appendix M. 10.1 HEALTH AND SAFETY There are potential risks with regard to project health and safety that will be addressed during the course of the project. The project safety goals are zero incidents during the engineering and construction effort, and turnover of a new facility that not only meets production goals, but one that is safe to operate and maintain. The engineering effort will implement designs that address safety aspects as they apply to construction, start-up, operation and maintenance of the newly facility. Safety will be a key element of discussion during design reviews. Design and construction activities will be conducted in accordance with the Chilean Health and Safety Act and BHP Billiton Requirements as a Minimum. A project-specific Incident Prevention Plan will be developed and implemented. It will combine the best elements of construction industry requirements with MELs site safety and health policy. A key component of the Incident Prevention Plan will be Pre-Task Safety Planning. All project team members who expect to enter the work site will be required to have site-specific safety training for construction site entry. The project will undergo a Pre-Startup Safety Review prior to finalizing designs, start-up and operating procedures. 10.2 ENVIRONMENT AND COMMUNITY Environmental considerations and community aspects are equally important in the Projects success. The impact on environmental conditions shall be incorporated into the design effort, MEL shall obtain a Certificate of Approval from the Chilean Ministry of Environment
to construct and operate the Escondida Norte Crushing and materials handling system. The application for the Certificate of Approval must demonstrate that the system will operate within compliance levels set forth by the Chilean Ministry of Environment. Community aspects related to the Project include consideration on the Projects impact to local township, employment, family and infrastructure. The HSEC Plan shall include considerations and local involvement in the management of the Projects resultant impact on the local community. 11.0 ENGINEERING
Responsibility for managing the engineering function rests with the Engineering Manager. The Project team recognizes the need to perform engineering efficiently and execute all the engineering functions in a manner that supports the project team objectives. The engineering for the Total Project is guided by positive management efforts to complete all engineering tasks in timely packages that support procurement, contract, and construction requirements with the objective of zero rework. This concept of once-through engineering will be encouraged throughout the project. 11.1 KEY ENGINEERING DESIGN STRATEGIES One of the early engineering activities is to work with Procurement in obtaining critical Vendor engineering. Other areas requiring emphasis during the early stages of the project would be: Freezing basic engineering by Project commencement. Complete Value added Engineering as quickly as possible Establish Engineering control systems to track progress and performance Development of P&IDs Work with procurement to issue material requisitions for Vendor engineering and obtain price quotations for release of fabrication Work with Construction, Project Controls and Procurement to initiate the engineering work on a priority basis Initiate constructability sessions to obtain installation input during design development of such items as materials of construction, standard sizing, standard details, prefabrication opportunities, modularization opportunities, etc. Conduct and coordinate formal and informal design reviews. 11.2 ENGINEERING DELIVERABLES SCHEDULE The engineering deliverable schedule is included in Appendix G. The schedule identifies the planned release of the engineering phase of the Escondida Norte Project commensurate with the goals of the overall Project Schedule.
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11.3 DESIGN AND CONSTRUCTABILITY REVIEWS Design and constructability reviews are important to identify the design as it is envisaged in the design office does not lose site of the requirements of the design Clients, namely Construction and MEL Operations. The reviews for constructability, involving the Construction team will take place at designated intervals to be identified on the Engineering Deliverable Schedule in Appendix G. 11.4 ENGINEERING PROGRESS MEASUREMENT The review and approval cycles for the Project shall, as identified in a Project work instruction, be developed as part of the Work Instruction requirements for the Project. The following progress measurement milestone criteria, as defined in the Appendix V, will form the basis for progress measurement for each phase. This appendix define progress percentage milestones for all engineering deliverables. Note deliverables do not necessarily pass through every milestone as listed. The Lead Discipline Engineer shall define each deliverable types milestone progress requirement no later than one month after Project commencement. ENGINEERING PHASE CONVENTIONAL 2D DRAWINGS CODE COM IDR IFR ICR CHK IFA IFC STATUS Drafting Commenced Issued for Discipline Review Issued for Interdiscipline Review Issued for Client Review Issued for Checking Issued for Approval* Issued for Construction PROGRESS % 10 30 50 75 80 90 100
TECHNICAL COMPONENT OF CONTRACT PACKAGES/MATERIAL REQUISITIONS CODE COM IFR IFA IFC/IFP STATUS Commenced Issued for Interdiscipline/Interdept. Review Issued for Approval (for Bid) Issued for Construction/Issued for Purchase PROGRESS % 10 50 90 100
SPECIFICATIONS & DATA SHEETS CODE COM IDR IFR ICR IFA IFC/IFP STATUS Draft Commenced Issued for Discipline Review Issued for Interdiscipline Review Issued for Client Review Issued for Approval* Issued for Construction/Issued for Purchase PROGRESS % 10 30 50 75 90 100
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CALCULATIONS CODE COM IFR APR STATUS Calculations Commenced Calculations Complete & Issued for Review Approved PROGRESS % 10 50 100
REPORTS & EVALUATIONS CODE STATUS COM Commenced IDR Issued for Discipline Review IFR Issued for Interdiscipline Review ICR Issued for Client Review IFA Issued for Approval* IFC/APR Issued for Construction/Approved * Issued for Approval includes MEL Approval where required. PROGRESS % 10 30 50 75 90 100
11.5 DRAWING SIGNATURE REQUIREMENTS The drawing signature requirements shall, as identified in a Project work instruction, be developed as part of the Work Instruction requirements for the Project. The following drawing signature matrix identifies the requirements for signatures at various stages of the revision process.
DRAWING SIGNATURE MATRIX
Revision Description Revision Status:
IFR - Issued for Interdiscipline Review (Note IFR may be used for internal review within a discipline if there is no need for the deliverable to be reviewed by other disciplines e.g. instrument cable schedules. The Lead Discipline Engineer may select this option.) INF - Issued for Information (if required)
P1, P2, Numeric)
etc
(Alpha
May be issued at any revision status but shall be clearly stamped FOR INFORMATION P2, P3, Numeric) etc (Alpha
ICR - Issued for MEL (and Interdiscipline*) Review (*Note: Interdiscipline review in parallel with Client Review is an option, which may be selected by the Lead Discipline Engineer.) CHK - Issued for Checking** (**Note: may not require a formal revision to the deliverable depending on deliverable type may only require an internal Issued for Checking Stamp e.g. cable schedules an option which may be selected by the Lead Discipline Engineer.) IFA - Issued for Approval
P2, P3 Numeric)
etc
(Alpha
P1,
P2
etc
(Alpha
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Numeric) IFB - Issued for Bid (if required) IFC Issued for Construction 0, 1, 2, (Numeric) 0, 1, 2, (Numeric) ALPHA NUMERIC Status Indicator Drawn Checked Design Engineer Approved Engineer by Lead IDR X X X X X CHK X X X X X INF (1) X X X X X IFR X X X X ICR X X X IFB (2) X X IFA (3) 3, 3, etc etc
NUMERIC REVISIONS IFC
Project Engineer Engineering Manager MEL
LEGEND: Notation X - no signature required Notation - signature required. NOTE: 1. If required to be issued for information, this may be done at any stage so long as the status/reliability of the information shown on the drawing is clearly identified. 2. If required to expedite the bid process, documents or drawings may be issued for bid purposes at any stage with the approval of the Engineering Manager if the documents or drawings reliably reflect the nature and extent of the work, as determined by the Lead Discipline Engineer. 3. MEL approval on key documents or drawings as nominated by MEL, but at this stage includes Design Criteria, Design Manuals, Process Flow Diagrams, P&IDs, Specifications, Standard Drawings, Data Sheets, SLDs and General Arrangements. 11.6 ENGINEERING DELIVERABLE HISTORY FILES History files shall be maintained for all engineering deliverables associated with the Project. The history files shall identify and track each deliverable in its progression to Issued for Construction status. The history file shall record all changes to the deliverables. The History File Front Sheet is included in Appendix R. Checklists for the associated types of drawing deliverables shall be attached to the History File. The associated drawing Checklists are included in Appendix R.
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11.7 DRAWING MASTER MARKUP FILES Engineering Master markup files shall be located in each discipline engineering section. The Master Markup shall contain a print of the latest status of each drawing deliverable and shall be managed in accordance with Work Instruction 314137WI005. 11.8 DESIGN CODES & STANDARDS The Escondida Norte Project shall be carried out in accordance with Applicable Codes and Standards of Chile (INN Standards). Where Chilean Codes and Standards are not available, the Services shall be performed in accordance with the Codes and Standards of the following international institutions: American Association of State Highway and Transportation Officials (AASHTO) American Conference of Governmental Industrial Hygienists (ACGIH) American Concrete Institute (ACI) American Gear Manufacturers Association (AGMA) American Institute of Steel Construction (AISC) American Iron and Steel Institute (AISI) American National Standards Institute (ANSI) American Petroleum Institute (API) American Society of Civil Engineers (ASCE) American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE) American Society of Mechanical Engineers (ASME) American Society for Testing and Materials (ASTM) American Waterworks Association (AWWA) American Welding Society (AWS) Antifriction Bearing Manufacturers Association (AFBMA) Compressed Gas Association (CGA) Conveyor Equipment Manufacturers Association (CEMA) Crane Manufacturers Association of America (CMAA) Factory Mutual (FM) Hydraulic Institute (HI)
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Insulated Cable Engineers Association (ICEA) International Electrotechnical Commission (IEC) Institute of Electrical and Electronic Engineers(IEEE) Instrument Society of America (ISA) Mechanical Power Transmission Association (MPTA) Metal Building Manufacturers Association (MBMA) Mine Safety and Health Administration (MSHA) Monorail Manufacturers Association (MMA) National Electric Code (NEC) National Electrical Manufacturers Association (NEMA) Naval Facilities Engineering Command (NAVFAC) U.S. National Electric Safety Code (NESC) National Fire Protection Association (NFPA) National Fire Code (NFC) National Occupational Safety Association (NOSA) Occupational Safety and Health Act (OSHA) Rubber Manufacturers Association (RMA) Sheet Metal and Air Conditioning Contractors National Association (SMACNA) Society of Automotive Engineers (SAE) Steel Structures Painting Council (SSPC) Uniform Building Code (UBC) Underwriter's Laboratories (UL)
11.9 ENGINEERING ESTIMATING Engineering estimates prepared by the disciplines for engineering activities shall be undertaken such that they identify the deliverable required, the quantity required and the manhours to produce the deliverable by classification. Each Engineering estimate shall be treated as a revision controlled document, so that the revision and reason for release is recognised by all who receive the estimate. The Hatch EPCM sheets shall be used to undertake all engineering estimates required during the execution of the Escondida Norte Project.
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12.0
PROCUREMENT PLAN
Responsibility for managing this function is the Procurement Manager. Project procurement status, schedule and commitment shall be managed on an ongoing basis through the Project with reviews being completed each month and a summary status included in the Monthly Report. The Project Procurement Plan is included in Appendix J and specifically includes the execution procedures for; 13.0 Planning Tenderer selection Tendering Contract award and kick-off Inspections and tests Principal supplied material Variations Progress assessment and claims Receiving and issuing information Practical completion Warranty period and final payments CONSTRUCTION AND COMMISSIONING PLAN
The construction and commissioning plan for Escondida Norte shall focus on the methodology to ensure a successful handover of the installation. It shall identify: Safety in construction requirements (By reference to the HSEC Plan) Site organisation structure Site Adminstration Site Industrial Relations management Site Construction Inductions and Training (By reference to the HSEC Plan) Management of Contractors personnel Site Security Construction approval levels Workforce manning levels Workforce Training
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Logistics Modularisation possibilities Constructability reviews Construction Sequencing Site inspection and acceptance testing Off-site Staging and storage requirements Temporary Construction Facilities Construction Services Site Laydown areas Construction Progress Measurement Precommissioning activities Dry Commissioning activities Wet Commissioning activities (by MEL) Facility hand-over activities
The construction and commissioning plan is included in Appendix O. 14.0 INDUSTRIAL RELATIONS PLAN
The main purpose of the Industrial Relations Plan is to develop strategies to avoid companies and projects being affected in their production process, work programmes, milestones, costs, labor environment or corporative image, due to industrial problems. The emphasis on working in cooperation rather than confrontation is paramount to the success of the industrial relations plan. The Industrial relations plan is closely linked to the community aspects of HSEC, extending beyond the site environment. Refer to 314137 Project Execution\PEP\IRPxxx for the current version of the Industrial Relations Plan. This is a controlled document and maintained by the Project Construction Manager.
15.0
PROJECT ADMINISTRATION
15.1 CHANGE MANAGEMENT OVERVIEW The management of changes to minimise their impact on project costs and schedule is a prime consideration in project management Change takes various forms and may include the following:
Changes to the scope of work or deliverables; Changes to performance or design criteria; Changes to work methods or sequencing of activities; Changes to the clients requirements; Changes to the commercial arrangements of the project or contracts; Changes to schedule information; Movement of funds within the project (other than at contract award); Changes to identified risks.
Changes can be initiated by any individual or group associated with the project but, before any change proposal can be implemented, it must be assessed and authorised in accordance with the project procedures for Change, as set out in this document. DEFINITIONS Changes can be separated into: a) Internal (Design) Changes These are changes that do not alter the original scope definition of the project. Internal changes may be engineering and/or construction changes and may involve additional costs, however the Project Budget includes contingency funds for internal changes. These types of changes are usually generated from within the project team. The Project Manager generally has the authority to approve Internal Changes, unless there is an effect on the EPCM cost to the Project. b) External (Scope) Changes These are major alterations required to adjust the project to changed circumstances. External changes are scope items or changes that are not covered by the Project Budget. A review of the project schedule may also be necessary. These types of changes are often client requests. Generally the Client must approve External Changes. Recognising which type of change is occurring, or preferably before it occurs, is an essential element in controlling the project. BASIC CHANGE PROCESS Hatchs standard change management procedure is as follows: Change may be initiated directly by the client, verbally, via e-mail or letter. Change may also be initiated by anyone in Hatch. It is the responsibility of the person receiving the request from MEL, or initiating the change, to inform the Project Controls Manager.
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The Project Controls Manager will register the request in the Change Log and notify the Project Manager and Engineering Manager.. The Department Lead prepares a Change Request form explaining in general terms what the change is, why it is necessary and how it may be carried out Input in the expected impact of the change is provided from Engineering, Procurement, Construction and Project Controls. The Project Controls Manager then summarises the effect of the change and decides whether the change is Internal or External. It is then necessary to complete the forms and advise MEL of the proposed change. Finally the Project Manager and/or Client approve or reject the change. The Project Manager can approve internal changes, if there is no effect on the EPCM manhours or cost. The client must approve external changes and changes to the EPCM manhours or cost.
If the change is approved, the Project Manager then confirms the change, to the project team. FLOW DIAGRAMS AND FORMS The standard process for the Escondida Norte EPCM project is outlined in flow diagrams and forms that supports the process, which are included in Appendix K The flow diagrams are: a) Change Notice Preparation Flow Diagram This flow diagram outlines the process to be followed when Hatch becomes aware of a change in the scope of work. b) Change Management Flow Diagram This flow diagram outlines the stages to manage change for the Escondida Norte and E3 projects.
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The forms are: a) Change Log (Hatch Document) The Change Log is where all the change requests on the project are recorded and tracked so that a summary of all changes can be presented at any time. b) Design Change Request (MEL Document) The Discipline Leader should submit this form wherever there is perceived to be a change in the scope of Design. The completed form should be submitted to the Project Controls Manager within two (2) days of becoming aware of a possible change. c) Scope Change Request (MEL Document) The Scope Change Request form provides the mechanism for changes to be identified and raised within the Project Team, and also records at a summary level the expected impacts on Engineering, Procurement, Construction, Costs and Schedule. d) Mutual Change Order Form, Schedule Q1 (MEL Document) The Hatch Project Manager should complete this summary form, when required by the EPCM Contract, after approval of the Engineers change order request form, to confirm a change to the EPCM manhours and costs. The completed form should be submitted in draft form to the MEL Project Manager for review.. e) Unilateral Change Order Form, Schedule Q2 (MEL Document) The MEL Project Manager will complete this summary form, when required by the EPCM Contract, to instruct a change to the EPCM scope.. f) Engineers Change Order Request form, Schedule Q3 (MEL Document) Following completion of either the Design Change Approval Request or the Scope Change Approval Request, the Hatch Project Manager should complete this summary form, for any Design or Scope change raised, to confirm a change to the EPCM manhours and costs. 15.2 MEETINGS Communication is a major factor in the success of Project. Formal meetings will be required through out all phases of the Project. The fundamental focus of the meetings is to communicate, identify actions, identify responsibilities for the actions and identify the date by which the actions are to be addressed. It is important that the dates identified to complete the actions are met. If at the following meeting the action by dates are not met an explanation as to the reasons why shall be incorporated in the minutes of the meeting. It is unacceptable to change the action by dates, without acceptable justification. Minutes of meeting will be prepared for all formal meetings. The format to be used shall be located from MS Word/File/New/MIS00/Minutes of Meeting Action By.dot.
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The following meetings are held: Meeting Name Steering Committee Attendees Project Sponsors Hatch Project Sponsors MEL Project Manager Hatch Project Manager MEL Safety Engineering Project Manager Engineering Manager HSEC Manager Safety Construction Project Director MEL Project Manager Contractor Representatives Construction Manager HSEC Manager Project Meeting Project Manager HSEC Manager Senior Project Engineer Engineering Manager Construction Manager Design Review Engineering Manager Design Team Leads Constructability Review Senior Project Engineer Design Team Leads Construction Manager Delegate Monthly Weekly Fortnightly Monthly Monthly Frequency/Timing Monthly
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15.3 DOCUMENT MANAGEMENT The responsible person for managing this function in the engineering office is the Engineering Document Controller who reports directly to the Engineering Manager. The responsible person for managing this function in the Escondida Norte Construction office is the Site Document Controller who reports directly to the Construction Manager. Each document shall have a unique document number. The document number is constructed as shown in Work Instruction 314137-WI-002. 314137\Facility Code-Document Identifier Code-Document Sequential NumberRevision Number All document numbers are given the 314137 prefix to indicate that the Escondida Norte Project document control system is being used. The Facility Code indicates the facility to which the document is applicable. The Document Identifier Code is a two letter code, which designates the type of document. The Document sequential number and applicable revision number are generated by the document controller for the Project. The following Facility Codes are used: AREA 000 050 100 200 300 760 761 762 765 766 767 768 770 DESCRIPCION rea General Caminos y FFCC Chancador Primario y Silo de Transferencia Correa Overland Silo de Distribucin y Correas de Distribucin Lnea de 69 KV Subestacin Escondida Norte Mina Lnea 13.8 KV Premina Lnea 13.8 KV Anillo Ao 15 Lnea 13.8 KV Chancador Primario Lnea 13.8 KV Plataforma Camiones Sistema de Comunicaciones
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900 913 935 970 980 990 995
Talleres y Servicios Escondida Norte General Plataforma de Neumticos Planta Bischufita Sistema Agua Industrial, Potable e Incendio Planta Tratamiento Aguas Servidas Oficinas Operaciones Mina Oficinas Escondida Norte
The following Document Identifier Codes are used: Document CA Code CO CV DD DP EI EN ES FA FN FO FS IN LE MA ME MM NO PE PG PM PO PP PR PS QP RE RT SP SS

Document Type Engineering calculations Contract Curriculum Vitae (Resume) Daily diary Design management plan Expression of interest Enquiry Local & International Estimate/Budget/Forecast Facsimile File note Form Flow sheet Invoice Letter Local & International Manual Memo Minutes of meeting Note Project execution plan Project programme Project management plan Purchase order Proposal Procedure Presentation Quality plan Report Registration of Tenderers Specification Spreadsheet
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Document SU Code SW TN TM TR UN WI WR
Document Type Submission Scope of work Tender Template Training manual Unclassificable Work instruction Work registration
The sequential number is the next number as given by the database. The footer of all documents shall include the document number and document issue or revision number. Handling Electronic Copies of Documents The document electronic filename shall be a unique name, the same as the document number without the 314137 prefix. The filename is constructed as follows: Applicable Facility Code - Document Identifier Code - Document Sequential Number, Revision Number E.g. filename 900-SP-00123A.DOC is Revision A of a specification for Facility 900 on Microsoft word with a Document Number of 314137\SP00123\A. Electronic files shall be stored in a directory structure, which is uniform on all the computers used by the Project Team. The philosophy behind the directory structure is that it is structured in the same way as the filing system for the hard copies. Thus, the electronic copy is stored in a directory, which represents the section of the relevant file in which the hard copy of the document would be stored. For example, document number 314137\FA00124 is an outgoing facsimile. The hard copy of this document is stored in file xxx and the electronic copy of the file (filename FA00124.DOC) is stored as 314137\xxx\yyyy\FA00124. All documents shall have the filename and the directory address shown in the document footer. If a file is revised after the output is given to an outside party, it is renamed with a filename that designates the next revision number. Copies of earlier revisions of files, whose output has been transmitted to an outside party, shall be kept. Document Distribution and Filing The Project Document Controller is responsible for the management of this aspect of the Project with assistance from the Administrative Officer. The Administrative Assistant receives all incoming mail and facsimiles. The Administrative Assistant shall stamp all correspondence with the Project distribution stamp and note the file number in the box provided by the stamp. Where the file number or distribution list is not clear the Administrative Assistant shall refer to the Project Document Controller for clarification.
The Administrative Assistant shall photocopy and distribute all correspondence and file the file copy. Any correspondence, which is received by any team member and which does not have the imprint of the Project distribution stamp, must be forwarded to the Administrative Assistant for the above procedure to be followed. The distribution list shall be added to the front of the document. distribution are: The basic rules of
The addressee will be copied in on the incoming correspondence All outgoing correspondence, the sender will be copied. The Project Manager will be copied in on all correspondence The Administrative Assistant will maintain the Project Files.
Project Distribution Stamp The Project Distribution Stamp for the correspondence will be a Project specific stamp and shall include the following: Project name Date correspondence is received File Number Action By Copy To
The person whose initials are in the Action By cell shall be responsible for the action required by the particular correspondence. If the person believes that their initials have been incorrectly placed in the Action By cell, then the onus is still on this person to ensure the action is directed to the correct person. In general, the addressees initials will be placed in the Action By cell in the first instance. Project Filing The Project Document Controller is responsible for the management of this aspect of the Project. All correspondence and documentation for the Project shall be kept in a central Project filing system (the Project Files) in the Project office on site. Project files are divided into three categories:
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General files Package files. Each package in the Project has its own files and the package number designates these files. These files are used to store all information relevant to the package, prior to the award of the contract. Contract files. When a Contract is awarded, a file shall be made for that Contract so that each Contract package shall have its own file. The Contract file shall contain all information prior to award, which forms the Contract document and all subsequent correspondence and documentation. The aim of the filing system is that it should be comprehensive enough to have a place for all documentation and be simple enough to provide an unambiguous location for each piece of documentation. In general, but with a limited number of exceptions, only one copy of each piece of information is kept. Project File Listing A list of all Project files, including the physical location of the file, is maintained by the Document Controller. While a package is being implemented, a file can be located in a convenient location for the engineer responsible for the work but a note or card shall be left in the place of the file indicating who has removed the file, when it was taken and where other Project Team members can find it. A list of files maintained in addition to files for each package is set out below:
File No.
Name MEL Project Management HSEC Engineering Construction Progress Reports Administration Human Resources Project Controls Information Technology Procurement Contracts
Location
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15.4 SYSTEM BACKUP All Project electronic information stored on the Project network shall be backed up daily. The system back up information shall be stored in San Sebastian Office i.e. not in the Escondida Project Office located at 25 Carmencita. All electronic information stored on the Project network shall be stored to DVD at the completion of each month. The DVD shall be filed in the San Sebastian Office in a fire proof and heat resistant location. 15.5 PROJECT IDENTIFICATION & NUMBERS The project is identified as: Hatch Project Number: Escondida Norte Project
314137
15.6 LANGUAGE AND ENGINEERING UNITS All documents including specifications, correspondence, and drawings shall be prepared in English or Spanish. Engineering documents shall be prepared using metric units. 15.7 WORK LOCATIONS It is intended that the engineering work for the project will be produced at Hatchs Carmencita office located at 25 Carmencita Santiago. The Construction office will be located at the Escondida site. 15.8 PROJECT ORGANIZATION & KEY PERSONNEL The Project Organization is defined in accordance with the organisation chart shown in sections 3.1 and 3.2. The project team will be comprised of the following key personnel from MEL and Hatch. Name MEL Title / Organization E-mail / Telephone / Fax
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Name
Title / Organization
E-mail / Telephone / Fax
HATCH
Dwayne Fentie
Project Sponsor
Cesare Celle
Project Sponsor
Paul Barbaro
Project Sponsor
Jim Weatherhead
Project Manager
Hctor Infante
HSEC Manager
Andrew Small
Project Engineering Manager
Des Rees
Construction Manager
Gonzalo Gaete
Project Controls Manager
Flavio Gonzalez
Procurement Manager
Roberto Lindsay
Contracts Manager
Alejandro Jara
IR Officer
Carlos Silva
Lead Area Mechanical Engineer
William Eade
Construction Superintendent
Freddy Troncoso
Lead Electrical & Controls Engineer
Jaime Alegria
Lead Civil / Structural Engineer
Dfentie@hatch.cl Ph 905 403 3909 Cell Fax Ccelle@hatch.cl Ph 430 2609 Cell Fax PBarbaro@hatch.cl Ph 430 2609 Cell Fax JWeatherhead@hatch.cl Ph 429 2305 Cell Fax Hinfante@hatch.cl Ph Cell Fax ASmall@hatch.cl Ph 430 2600 Cell Fax Drees@hatch.cl Ph Cell Fax GGaete@hatch.cl Ph Cell Fax FGonzales@hatch.cl Ph Cell Fax Rlindsay@hatch.cl Ph Cell Fax AJara@hatch.cl Ph Cell Fax CSilva@hatch.cl Ph Cell Fax WEade@hatch.cl Ph Cell Fax FTroncoso@hatch.cl Ph Cell Fax JAlegria@hatch.cl Ph Fax
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15.9 CONFIDENTIALITY It is essential that all information such as proprietary data, drawings, production, product quality cost, work processes, etc. be kept confidential. Confidentiality agreements must be executed by all prospective Vendors, sub-Vendors, Contractors, etc. prior to receiving any project information. All project participants will be responsible for facilitating this requirement with all of its sub-Vendors as may be required. Copies of executed confidentiality agreements shall be forwarded to the Hatch Project Manager. 15.10 COMMUNICATIONS PROTOCOL Project Correspondence All written correspondence for the project, of both technical and commercial content, shall be directed to: Hatch Ingenieros y Consultores Ltda Escondida Norte Project Office, Carmencita No. 25 Piso 2 Las Condes Santiago, Chile Attention: Mr. Jim Weatherhead, Project Manager Facsimile: (2) 429 2399 Email: JWeatherhead@hatch.cl One (1) copy of all technical correspondence shall be also directed to: Hatch Ingenieros y Consultores Ltda Escondida Norte Project Office, Carmencita No. 25 Piso 2 Las Condes Santiago, Chile Attention: Mr. Andrew Small, Engineering Manager Facsimile: (2) 429 2399 Email: ASmall@hatch.cl One (1) copy of all commercial correspondence shall be also directed to: Hatch Ingenieros y Consultores Ltda Escondida Norte Project Office, Carmencita No. 25 Piso 2 Las Condes Santiago, Chile Attention: Mr. Flavio Gonzalez, Procurement Manager Facsimile: (2) 429 2399 Email: FGonzalez@hatch.cl All correspondence transmitted to the Project Manager shall be transmitted and accepted by e-mail whenever possible. All e-mail transmissions shall also copy the Project
Managers Project Secretary (Shirley Montoya) Smontoya@hatch.cl. Transmittal of correspondence by fax is also acceptable, if required. Drawing Submittals All drawings shall be submitted in triplicate hardcopies and electronic file to the following: Hatch Ingenieros y Consultores Ltda Escondida Norte Project Office, Carmencita No. 25 Piso 2 Las Condes Santiago, Chile Attention: Document Controller Facsimile: (2) 429 2399 Email: Smontoya@hatch.cl Correspondence Log Hatch will maintain a log of all correspondence for the Project. Each item of correspondence shall include project reference information and a unique alphanumeric identification number, as defined in section 15.3, the senders reference number (if applicable), along with a subject line. An example of the reference line for a letter from MEL to Hatch is as follows: Reference: Escondida Norte Project Hatch Project No. H/314137 MEL Reference Number: Schedule Draft for Review
Subject: Shall be logged as:
Project Reference Number: 314137\LE\0001 Senders Reference Number: 1234 Subject: Schedule Draft for Review Communication Methods: Communications between the MEL and Hatch will be conducted by typed correspondence e.g. email, telephone conversations and meetings. In general, all correspondence directed outside of Hatch offices shall be typed to Hatch standard formats and signed by an authorized Hatch representative. Important telephone and verbal communications shall be recorded and confirmed in writing. All correspondence should deal with one subject only unless the content of the subject matter make this impracticable. Where multiple subjects are covered by one document, multiple filing codes shall be used.
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Identification, Numbering & Dating: All documents and written correspondence shall be clearly marked with the following: Date: Project Identification: Fill in as required Escondida Norte Project Hatch Project No. H/314137
Correspondence originating with Hatch shall indicate project number and correspondence number. 15.11 DISTRIBUTION MATRIX All documents are distributed according to their attached distribution list. The below Table indicates the minimum distribution requirements for all documentation. Table 15.11-1: Distribution of Documents
Document Client Letters & Faxes to Hatch Hatch Letters & Faxes to MEL Minutes of Meetings Project Reports Hatch Letters & Faxes to Others Design Related Documents Other Project Principal X X X Project Manager X X X X X X Project Engineer MEL Project File O O O O O O O
X X X
X X X(3)
Legend:
X - copy, O - original, (#) - number of copies, if more than 1.
15.12 PROJECT FILE Hatch will maintain a complete hard copy for the Project file. Filing of hard copies is the responsibility of the Project Support Co-ordinator. In addition, a complete electronic file of all computer generated items will be maintained within a project directory on the network. 15.13 EXPENSE REPORTS Expense reports for air travel must be completed and approved by the Project Manager or designate in advance of all travel. An approved Project expense report is required for all expenses and shall be submitted for approval to the Project Manager or designate as soon as possible. An expense report form is available from the Project Secretary. 16.0 MEL SATISFACTION REVIEWS
At the completion of each month a satisfaction review shall be undertaken by all key members of the MEL team. The review will rate Hatchs performance as seen by MEL and identify areas where Hatch can improve. The results will be recorded, graphed and included in the Monthly Report. The Satisfaction Review Template is included in Appendix T
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17.0
QUALITY ASSURANCE / QUALITY CONTROL PLAN
17.1 GENERAL Quality Assurance is the responsibility of the QA/QC Manager and shall include the undertaking of the following activities: Preparation of the QA/QC plan Engineering Standards Audit Design calculation Audits Drawings audits and coordination review Equipment quality verification Hazard and Operability (HAZ-OP) studies where needed Preparation and control of an active Lessons Learnt document to be made available to the Project team throughout all phases of the EPCM effort.
The QA/QC management plan is included in Appendix P. The QA/QC Management Plan: - Identifies procedures for deliverable identification and traceability. Ensures all processes necessary to assure the quality of the project deliverables are defined and included in the control system for the project. Describes the level of inspection required for products and equipment manufactured by Vendors and sub-Contractors. Describes the level of inspection and testing for products and equipment during construction. Describes inspection and testing which will be completed to demonstrate compliance of work with the contract. Specifies measurements, which will be made, required accuracy of the measurements, and measuring and test equipment, which will be used. Specifies the system for identifying the inspection status of products and equipment during all stages of production. Specifies the method for identification, segregation and disposition of non-forming products and equipment. Defines the system to detect and correct any conditions in the operations of design, development, purchase, manufacture, inspection, testing or other elements of contract performance that have, or could have, an effect on quality.
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Defines the system for the identification, preservation, segregation and handling of all items from the time of receipt through the entire production process to delivery and installation. Ensures all staff are suitably proficient and that the proficiency is maintained and recorded. Specifies any statistical techniques which are proposed or required by the Contract.
The following lists initial procedures, work instructions used to control the Project, plus the primary and secondary positions responsible for their use. Work instructions will be setup through the differing stages of the Project and a list of the work instructions will be maintained refer to 314137 Project Execution\PEP\WIxxx for the current version of the Work Instruction List. The list is a controlled document and maintained by the QA/QC Manager.
Number
314137WI001 314137WI002 314137WI003 314137WI004 314137WI005
Name
Incoming and correspondence outgoing mail
Primary Position
Project Manager Engineering Manager Engineering Manager Engineering Manager Engineering Manager
Secondary Position
Project Secretary Document Controller Lead Mechanical Engineer All Lead Discipline Designers Document Controller
Assignment of Drawing and Document numbers Assignment of Equipment numbering Document Master Mark Up Procedure Document Archiving Procedure
The following lists the topics of all procedures, work instructions and forms used to control the Project, plus primary and secondary responsibility for their use. The primary identified person is responsible for the preparation of the procedure, work instruction or form associated with the topic.
Name Project Manager
P P P P P P P P P S S S S S S S S S S S S S S
Engineering Manager
Construction Manager
Project Controls Manager

S
Invoices Project Kick-off Safety Requirements Safety Meetings Safety Inspections Emergency Procedures Accident Investigation and reporting Industrial Relations. Project Close-out Report
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Package Project Handover Engineering Process Guide Drawings Technical Documentation Design Calculations Estimating Estimate to Complete Man hours and internal cost forecasts Contingency and Risk Management Authorisation Review Authorisation Control Reports Cost Recording Scheduling Process Guide Milestones Bar Charts Critical Path Method Purchasing Guide Enquiry document preparation Managing of the Tender Process Selection of Tenderers Tender Evaluations Approval of Sub-Contractors Issue of information to Contractors Receive information from Contractors Contract Award Inspection and Test Monitor Progress and Expedite Process Payment Progress claims/Invoices for S
S P P P P S S S S
S S S S
P P P P P
S S S S S S S
S S S S S S S
P P P P P P
S S
Contractors Claims Contract Variations Completion Certificates, Defects Liability and Final Payment
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Contract and Project Close-out Insurance Responsibilities Insurance Claims Commissioning P P P
17.2 DESIGN REVIEWS The Design Review means formal multi-discipline reviews of the design. The requirements to be considered during the reviews include: Design intent and requirements have been followed Good engineering practice Personnel safety and compliance with regulations Constructability Compliance with environmental regulations Cost-effectiveness of construction Ease of maintenance and replacement MEL standards and practices Value engineering analysis Design Reviews will be held at two stages: - Completion of the design concept, when the design content is defined sufficiently to be able to evaluate feasibility, compliance with regulations and that design fundamentals are correct. - At the stage of engineering when general arrangement drawings have been completed, and the key design details have been defined. There will be two formal reviews for the Project as indicated in the Project Schedule in Appendix E. Both MEL and Hatch will attend the formal Project review meetings and comments will be recorded to ensure action, whether that action is inclusion or exclusion in design of the Project. The records will be signed by Hatch Engineering Manager and transmitted to all key members of the Project Team within Hatch and MEL. 17.3 EQUIPMENT QUALITY VERIFICATION Quality assurance of equipment will be specified where applicable, by reference to ISO 9000. The Bidders shall be asked to state:
If the equipment complies with the specified standard Does not comply What standard does the Vendor use Additional cost to comply with the specified standard
MEL is required to approve any additional costs incurred by the Vendor to meet the specified standard, which may exceed the Vendor's normal manufacturing standards. 18.0 PROJECT REPORTING
18.1 MANHOUR AND EXPENSE REPORTING AND INVOICING Hatch manhours are reported to SAP by the employee and approved by the Project Manager each Friday. Reporting is against a four level Work Breakdown Structure, equivalent to the 1000 1999 series in the Project WBS (Refer section 6.1). Expenses are recorded and entered into SAP after approval by the Project Manager. Each Monday, approved manhours and revenues are downloaded into HEMS and a Report compiled for presentation to the MEL Project Team, who will review and approved the hours each week. In addition, a weekly Expenses Report is generated in SAP and presented to the MEL Project Team for approval. Refer Appendix I for details. Each month, an Invoice is generated in SAP showing all manhour and expense expenditure, and forwarded to the MEL Project Team for processing. Cut-off date is the last Friday of each month. Refer Appendix I for details. 18.2 ENGINEERING PROGRESS REPORTING Engineering manhours are downloaded into HEMS from SAP each Monday morning. The HEMS Progress Module database carries a listing of all engineering controlled documents/drawings and the budget manhours for each group of documents. Progress (in the form of milestones and dates) on completion of documents is imported from Infostream as each document passes through the document management process and reaches the milestones defined in section 11.4. Schedule data for Engineering Progress is provided by HEMS Eng Progress, and curves and reports showing actual progress and actual cost compared to budget progress and cost are prepared for use by the Engineering Manager. Refer Appendix I for details. 18.3 PROCUREMENT AND PROJECT ADMINISTRATION REPORTING These functions are carried out in iPAS. The manhours expended each week are downloaded from SAP as the top two levels of the SAP WBS, and become the 1000 1999 second level series in the Project WBS (Refer section 6.1). Procurement and expediting documents are generated in iPAS, and schedule data is downloaded from Primavera. Reports showing actual procurement status and EPCM costs
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are generated, comparing actual status to budget for use by Project Management. Refer Appendix I for details 18.4 MONTHLY REPORTS A Project Monthly Progress Report will be generated and presented to the MEL Project Team by the sixth (6th) day of each month, in the format required by Clause 3.15(v) of the Agreement between MEL and Hatch, a copy of which is shown in Appendix I. In addition, a less comprehensive Progress Report (weekly or biweekly) will be generated and forwarded to the MEL Project team, showing progress on all activities being actioned. These Reports will largely be generated in HEMS, iPAS and Primavera, and will be the responsibility of the Project Controls Manager. Sample Reports are shown in Appendix I. Members of the MEL Project team will be able to view the current data in iPAS, and to print ad hoc reports as they require from the data available in HEMS & iPAS. Other Reports, as require by the Agreement, for minutes of meetings, daily diaries and Safety Reports, will be generated by Hatch Project Management as required. The monthly report will be prepared by Hatch and the following table identifies the topics of interest and the departments responsible for the preparation of a short brief, highlighting the monthly status.
Report Monthly Progress Report Change Status Engineering Progress Equipment list Status Drawing control Status Bulk Materials Status Purchase Order Status Status of major equipment and materials Received Material Status Safety Status Construction Progress Status Quality Control Non-conformance Status Project Master Schedules Status Project Cost and Commitment Status Manpower Status Critical Activity List Cash Flow Status and Forecast Responsible Department Project Controls Project Controls Engineering Engineering Engineering Procurement Procurement Procurement Procurement Construction Construction Quality Assurance Project Controls Project Controls Project Controls Project Controls Project Controls
The monthly report describes the progress of engineering, procurement and construction management activities. The report will be approved and issued by the Project Manager and distributed in accordance with an approved distribution list.
The monthly report contents shall include: An executive summary with a description of overall Project schedule status; CPM Schedule updated through the end of the previous Month and a 60 Day Look-Ahead Schedule; A description, as compared with the Project Schedule, of engineering status including actual percentage complete versus planned percentage, document status, significant activities accomplished the previous Month and significant activities planned for the current Month; A description, as compared with the Project Schedule, of procurement activities including actual percentage complete versus planned percentage, manufacturing and delivery status, significant activities accomplished the previous Month and significant activities planned for the current Month; A description, as compared with the Project Schedule, of construction activities including actual percentage complete versus planned percentage, progress summary, numbers of skilled, unskilled, and supervisory staff on Site compared to planned levels, significant activities accomplished the previous Month and significant activities planned for the current Month; A description, as compared with the Project Schedule, of start-up activities including actual percentage complete versus planned percentage, progress summary, significant activities accomplished the previous Month and significant activities planned for the current Month; A description of critical items, including an evaluation of problem areas and, to the extent applicable, of strategies to recover or accelerate the performance of the Services or the Work to comply with the Project Schedule; Certification that all amounts due and payable to all Subconsultants prior to the end of the period covered by a Monthly Progress Report, unless reasonably disputed, have been paid by Hatch in accordance with the terms of the Subconsultant Agreements; A description and detailed cost report (including variances, trends to date, and details of Change Orders), as compared to the Estimated Agreement Price, of the Fixed Fees and Recoverable Costs paid by MEL or incurred by Hatch through the end of the previous Month, and a detailed forecast of same through all Stages; A description and detailed cost report (including variances, trends to date, and details of Change Orders), as compared to the Estimated Agreement Price, of all amounts incurred by and paid to Subconsultants through the end of the previous Month, and a detailed forecast of same through all Stages; A description and detailed cost report (including contingency updates, variances, trends to date, and details of change orders), as compared to the Estimated Project Budget, of all amounts incurred by and paid to Contractors and Suppliers through the end of the previous Month, and a detailed forecast of same through Final Completion; A description of all Permitting and environmental issues;
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A description of all safety and security issues and statistics; A description of quality assurance activities; Progress photos, including a description of the photograph and the date taken; and any other information reasonably requested by MEL, including any material information of which Hatch is aware that could reasonably be foreseen to adversely affect the performance of the Services or the Work. HANDOVER TO CLIENT
19.0
(NEW SECTION) 20.0 PROJECT CLOSE-OUT
20.1 GENERAL A Project close-out report will be prepared for the Project. This report will include all benchmark information detailed in the Project Execution Plan, including: Project HSEC performance Identification of all Final EPCM Costs in summary format Project Close Out Meeting Minutes Project performance schedule charts Project Facility Handover Sheets Listing and brief of all lessons learnt Listing of all Archived documentation
20.2 PROJECT ARCHIVING All deliverables produced by Hatch during the EPCM effort of the Project shall be achived in accordance with Work Instruction 314137WI006. Work Instruction 314137WI006 caters for the archiving of both hardcopy and electronic versions of documentation produced throughout the Project.
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Appendix A
MEL Organisation Chart
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Appendix B
Hatch Organisation Chart
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Appendix C
Authority Levels and Approval Limits
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Appendix D
Project Kick-Off Meeting (Minutes of Meeting)
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Appendix E
Overall Project Schedule
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Appendix F
Project Staffing Plan
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Appendix G
Engineering Deliverable Schedule
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Appendix H
Design Requirements
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Appendix I
Project Controls Plan
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Appendix J
Project Procurement Plan
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Appendix K
Project Change Control (PCA/DCN)
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Appendix L
Human Resources Management Plan
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Appendix M
HSEC Management Plan
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Appendix N
Engineering Management Plan
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Appendix O
Construction and Commissioning Management Plan
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Appendix P
Risk Management Plan
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Appendix Q
QA/QC Management Plan
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Appendix R
Deliverable History Files and Checklists
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Appendix S
Contracts Plan
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Appendix T
MEL Satisfaction Review
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Appendix U
Engineering Procedure
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MINERA ESCONDIDA LIMITADA ESCONDIDA NORTE PROJECT

PROJECT EXECUTION PLAN FOR ESCONDIDA NORTE

Issued for Project Use

Rvsdo. G.Area G.Proy. Cliente

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

2.0 Project Scope of Work

3.0 Project Organisation

4.0 Scope of Work By Others 5.0 Performance Requirements

6.0 Execution Strategy

7.0 Roles and Responsibilities

8.0 Project Schedule and Resources

9.0 Project Management Deliverables

10.0 Health, Safety, Environment and Community

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

18.0 Project Reporting

19.0 HANDOVER TO CLIENT 20.0 Project Close-Out

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

PROJECT DESCRIPTION GENERAL PROJECT DESCRIPTION AND OBJECTIVES

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

PROJECT ORGANISATION MEL ORGANISATION CHART

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

SCOPE OF WORK BY OTHERS

PERFORMANCE REQUIREMENTS MARKET PERFORMANCE

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

KEY PERFORMANCE INDICATORS

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

The Utilities and Buildings. The Power Supply to the Project.

PREFERRED SUB CONTRACTORS

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

HATCH KEY PERSONNEL RESPONSIBILITIES

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

Project Control Manager [PCM]

Hatch Ltda. Project N 314137

MINERA ESCONDIDA LTDA. Proyecto Escondida Norte

PROYECT EXECUTION PLAN EN-000-0-XXXX Rev. 0

Hatch Ltda. Project N 314137