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Construction Management Scope of Work

Contractor is responsible for the construction of all the Contract Objects. Contractor’s engineering team shall generate and issue AFC for procurement and construction activities.

Contractor shall fabricate and construct utilizing “Approved For Construction”

documentation only.

Contractor’s project management organization shall include an experienced Construction Manager with the necessary support organization in place from the Effective Date. At each work location, Contractor shall have a construction organization fully capable of directing and undertaking construction activities in order to achieve satisfactory completion of Contract Objects in accordance with the Contract Schedule.

Contractor shall manage construction using an industry recognized construction management system to track, record and control the fabrication, mechanical completion and testing process.

A Construction Execution Plan shall be submitted by Contractor to Company for review and approval within thirty (30) Days from the Effective Date. Contractor shall incorporate any Company comments and resubmit to Company for approval. Upon Company’s approval, Contractor shall issue the Construction Execution Plan for use and ensure implementation throughout performance of the Work.

Table 13 below shall be used a basis by Contractor for development of a detailed Construction Management Plan. Refer to Company’s Completion of Work as set out in Exhibit D.

The Construction Execution Plan will also include Contractor’s Constructability Plan. The objective of the Constructability Plan is to evaluate opportunities to optimize construction cost, schedule, and quality. Contractor’s Constructability Plan shall include at a minimum:

a. A formal constructability program that identifies constructability opportunities during Detail Design.

b. Resources to be used for constructability analyses (Contractor Group, Company Group, or others) who have experience and/or knowledge about the facilities and the Construction requirements of the Work;

c. Identify aspects of the Work that offer significant opportunities for constructability (modularization pre-fabrication, pre-assembly, onshore/offshore, logistics, lifting, vessel selection for offshore installation etc.). This shall include interfaces between new and existing facilities, weather windows and constraints, Construction and Installation methods optimization and sequencing.

d. List of lessons learned from previous projects with direct application opportunities related to the Work clearly identified;

e. Method for tracking constructability opportunities identified during the Work versus those selected for implementation, including selection criteria;

f. Tracking method to assure selected opportunities are incorporated and the effectiveness evaluated.

Quality and

HSE • Refer to Section 8 and Section 9 of this document.

Procedural • Cleanliness is a quality and safety issue and Contractor shall adhere to the Company Build Clean procedure and Valve Management procedure.

• Contractor shall establish a Mechanical Completion and Handover program to be reviewed and approved by Company.

• Central to the Mechanical Completion program shall be the principle objective to maximize the amount of onshore fabrication, pre-assembling, testing, and pre-commissioning.

• Contractor shall establish a construction-specific work planning and interfacing procedure for the development and management of system/sub-system work packages on a weekly, fortnightly and monthly look-ahead for anticipated Work conforming to the Master Baseline Schedule. The Work Packages shall include all required procedures and documentation including views from the 3D model of the specific piping, equipment or subsea area to be installed.

Any special tools and Company Furnished Material integration shall be clearly highlighted along with QA/QC requirements that must be adhered to.

• Work packages shall initially be organized and prioritized on an area based completion basis. Upon reaching seventy percent (70%) Construction completion, Work packages shall be organized and prioritized on a system based completion basis. Planning of work shall take into account existing routine North Belut Operations

Procedural (cont.)

• Contractor shall establish a rigorous Material Control process.

Fabrication and delivery schedules for equipment and bulks should be closely evaluated against the construction schedule to minimize double handling and long term offshore storage. Bulk material shipments shall be identified by area, system, location, structure, line number.

• Contractor shall establish an exotic materials handling procedure.

• Loose material from Contractor’s Suppliers shall be bagged, tagged and tracked by bar-coding.

• Contractor shall establish procedures for verifying the functional requirements of all components, sub-assemblies and constructed Contract Objects, and the integration of individual components, into an over all operational system and the integrity of the completed system or Contract Object.

• Contractor shall provide means of undertaking rectification or modification in areas if Work where defects and non-conformances exist.

• Contractor shall establish specific procedures for system and/or equipment testing under simulated operating scenarios, and plan tests in a manner that minimizes test duplication.

• Contractor shall establish a robust document control procedure to facilitate collection, checking, validating and signing off copies of relevant manufacturing and fabrication data, and test reports required by Company for its application of MIGAS certification.

Company may, at its discretion, consider verifying these through its appointed QA/QC Contractor to satisfy the quality of its applications.

Fabrication

• All subsea and topsides items shall be fabricated, inspected, tested and coated (painted) and preserved by Contractor in accordance with Company Supplied Data. Linepipe and piping spools shall be hydrotested onshore and flushed clean prior to box-up and load-out.

• Prefabrication of subsea and topsides piping spools shall be maximized and fabricated in a manner that will minimize the number of field welds. Topsides piping spools that have been painted shall be handled with care to avoid damage to the coating and wire slings shall not be used. All piping spools are to be coated (painted) hydrotested, flushed, cleaned and preserved onshore.

• Flushing of pipework and vessels shall be carried out onshore.

• Materials of fabrication shall be suitable for the intended service and shall be fully compatible throughout the Contract Object and with all interfacing equipment.

• Company Furnished Material shall include fabrication data, testing records, certification, material traceability, construction drawings, and handling, storage and installation documentation and any special tools. Contractor shall be responsible to incorporate any Company Furnished Material data and requirements into the Work.

• All mechanical test results shall be reviewed and approved by Company before final cleaning and coating application. The use of

“Field Proven” equipment is preferred to minimize qualification testing on the project. Contractor shall provide all required qualification test reports.

• All piping flanged connections shall be in accordance with the Flange Management procedure included as part of Exhibit G in this Contract.

• Testing and inspection of all fabricated assemblies and equipment items shall be in accordance with Company specifications. This includes valve function/torque testing at Fabrication Site, and MIGAS hydrotest certification of complete tie-in spools assemblies. Sufficient spare materials shall be prepared in the event that in-field modifications are required and shall be blasted and primed as a minimum prior to field shipment.

Inspection

• Operate a robust inspection and testing program for maintaining quality of Work. Methodologies shall establish a framework for verifying the correctness of manufacture and construction of all components, sub assemblies and constructed Contract Objects, in accordance with approved detailed AFC documentation, Quality Management Plan and Procurement Management Plan.

• Contractor shall establish an FAT plan covering the Work to prove that a unit or its components satisfy all specified requirements. .

Load-Out Preparation

• Vessels shall be inspected to ensure all internals are in place and installed correctly, and all flanges shall have plastic covers or plywood blanks to protect and preserve the flange faces and ring grooves. The vessels shall be then closed for shipment.

• Manholes shall be closed with temporary gaskets until a final inspection is completed by Company personnel after installation and all open nozzles shall be protected with plywood blanks as a minimum. Piping spools shall be cleaned internally of debris after blasting and painting.

• Pre-shipping preparations include, but are not limited to, temporary bracing required for load-out and transportation.

• All equipment shall be fitted with protection systems designed by Contractor to minimise potential transit damage during transportation to offshore, and during any unforeseen offshore hold

Lifting Operations

• Contractor shall perform all lifting operations in accordance with Company's Rigging, Lifting & Mechanical Handling Standard and procedures, ID-G-BU-GG0-STR-GN-00-0002, as enclosed in Exhibit G. This includes all lifting operations required for the execution of the Work. Any craneage, winches or lifting gear provided by the Contractor shall be verified for suitability by Company and where applicable have MIGAS certification.

• Contractor shall develop and maintain detailed Lift Plans identifying each lifting operation required for execution of the Work. The lifting operations shall be categorized as SIMPLE, COMPLICATED or COMPLEX. Contractor shall comply with all requirements as described in document no. ID-G-BU-GG0-PRO-GN-00-0033.

• With exception of lifts performed by the Contractor's Heavy Lift Vessel, the Contractor shall utilize the permanent NBCPP pedestal cranes for lifting equipment, prefabricated items and materials from the Contractor's supply boat or transportation barge on to the NBCPP, as well as for internal lifting operations on the NBCPP.

Everything that is lifted off the supply boat or transportation barge shall be packed in containers or baskets certified as per DNV 2.7-1 or BS EN 12079. No slinging on the supply boat or transportation barge will be allowed, other than attachment of a container lifting set masterlink to a crane hook. For these lifting operations, contractor shall provide containers certified as already stated complete with all required lifting accessories (slings, shackles, masterlinks etc).

• The above requirements shall also apply for lifting operations performed by temporary winches provided by the Contractor.

Suitability and planned installation of these winches on NB CPP shall be approved by Company.

• For any lifting of personnel, Company’s requirements are found in document no. ID-G-BU-00000-00000-00418

Table 13: Construction Management Plan Basis

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