Module 10 - Managing Construction and Completions PowerPoint Presentation_Rev1

(1)

Welcome to WorleyParsons Project Management

Process (WPMP) Training

(2)

Introduction

 Welcome  Safety Moment  Emergency Procedures  Introductions  Learning Objectives  Learning Outcomes

 Agenda—Module 10 Construction Management and Completions

(3)

Introduction

On completion of this module, you will have:

 A basic understanding of what the Construction and Completions

functions provide to complete an EPCM project

 An understanding of the methodologies and tools that will enable

you to work with Construction and Completions to successfully deliver a project

(4)

Introduction

 Understand the reasons for requiring Construction and

Completions involvement early in project planning & TIC Estimate

 Plan and incorporate constructability reviews and construction

lessons learnt into project design and contracting

 Address design strategy opportunities for design standardization,

modularization and pre-assembly

 Understand typical Construction and Completions organization

charts and associated roles and responsibilities On completion of this module, you will be able to:

(5)

Introduction

 Have a basic understanding of the key processes used by

Construction and Completions

 Understand the needs of Construction, including AFC drawings

and materials being available on time, and how this determines Engineering and Procurement priorities

 Have a basic understanding of the typical progress reporting

provided by Construction and Completions

 Understand the importance of HSE in Construction and

On completion of this module, you will be able to: Learning Outcomes (continued)

(6)

Agenda

 Introduction

 Overview

 Roles and Responsibilities

 Project Planning

 Constructability and Commissionability

 Site Organizations and Resource Management

 Communication and Team Work

 Issue Resolution

 Quality Management

(7)

Agenda, continued

 Health, Safety and Environment (HSE)

 Industrial Relations

 Risk Management – Construction

 Construction and Field Procurement

 Construction Control and Reporting

 Document Management

 Completions – Commissioning and turnover to the Customer

(8)

Overview

 What is Construction

 What is Completions

(9)

Agenda

 Introduction

 Overview

 Roles and Responsibilities

 Constructability

 Site Organization and Resource Management

(10)

Roles and Responsibilities

 Establish management processes and controls that result in a

successful project

 Responsible for total project delivery

(11)

Roles and Responsibilities

 Safety Management and promotion of HSE culture

 Construction Management Planning

 Cost Management

 Time Management

 Contract Administration



(12)

Roles and Responsibilities

 Safety Management and promotion of HSE culture

 Completions Management Planning, Development & Execution

 Cost & Time Management

 Site Operator Interfaces

 Site Administration after Construction

 Operator training

 Interim Facilities Turnover to the Customer/Operator, pending formal project Turnover by the Project manager

(13)

Agenda

 Introduction

 Overview

 Project Planning

(14)

Project Planning

 The project schedule should be driven from the back end

 Early Construction and Completions involvement is absolutely

necessary

 Project WBS must meet with the minimum Contracting and

Construction requirements

 Identify issue of key deliverables

(15)

Project Planning

 Construction Manager completes pre-mobilization details with

Construction Team

 Project and Construction Managers ensures that the Construction

team do not mobilize too early

 Project and Construction Managers ensure that the mobilization

plan is based on an assured flow of ongoing work

(16)

Project Planning

 When do you hold a pre-mobilization meetings

 What are the Project Manager’s responsibilities

(17)

Project Planning

 What is the difference between Brownfield vs Greenfield

construction projects

 What expected delays on Brownfield projects may influence

the estimate

(18)

Project Planning

 Environmental impact of job

 Successful scheduling

 Site safety

 Availability of materials

 Logistics (road transport, shipping schedules, resources, etc)

 Inconvenience to public caused by construction delays

 Preparing tender documents

(19)

Project Planning

Construction Manager is responsible for:

 Completing construction preliminary planning

•

Keeping Project Manager informed about issues and progress

•

Making recommendations to Project Manager where issues

and needs may impact on planning by other disciplines

 Documenting the outcome of preliminary planning in a

Construction Management Plan (CMP)

(20)

Project Planning

Detailed Construction Planning

Issue to project team Customer approval

Revise at Approved for Construction (AFC) stage

EX ECU TE Review CMP D EFINE Draft CMP

(21)

Project Planning

As Project Manager you are responsible for:

 Ensuring CMP is prepared according to overall project

requirements

 Reviewing and approving the CMP

 Issuing the CMP to the customer

(22)

Project Planning

 Reviewing Construction Management Plan (CMP)

 Determining responsibilities at the site—Customer and other

stakeholders

 Reviewing Mobilization Plan and considering the support services

requirements for mobilization

 Reviewing the Contracts Plan and confirming the contracts strategy

 Determining the project layout for all temporary facilities

 Obtaining necessary licenses and permits

(23)

Project Planning

 Establishing utilities for and at the site

 Establishing facilities at the site—for example, transport and

storage, accommodation, sanitary arrangements, fire and other hazard protection

 Developing site administration procedures

 Developing a HSE plan for the site

 Setting up site offices and services

(24)

Agenda

 Introduction

 Overview

 Constructability

(25)

Constructability

 Ensures that BOD covers all construction cases i.e. Fabrication

location, transportation and installation techniques

 When is Construction Team input required in a project

 What questions does constructability address

•

Can it be constructed and how best to do it efficiently

•

Can it be maintained

•

Can it be operated

Construction Team Input into Execution Planning and

Design

(26)

Constructability

 Safety, including safety in design

 Interfaces with operations and other contracts

 Ability to pre-assemble as much as possible off site or on the ground prior to erection  Installation access  Transportability  Ease of construction  Standardization  Ease of Commissioning

Constructability Reviews

(27)

Constructability

 Cost effectiveness

 Fabrication, Installation and Completions methodologies to reduce schedule

 A check that design cases cover ‘Construction Phases’ as appropriate

and not just operating conditions

(28)

Constructability

 Inputs to ALL Plans including BOD and project schedule

 Specific constructability checklists across all functions, scope and

disciplines

 Action lists for changes to design and procurement

 Early planning for proper activity sequencing including

Completions

 Identifying any unusual factors affecting construction

 Identifying any unusual costs not identified by normal estimating

methods

(29)

Constructability

 Identifying staffing requirements, facilities, warehousing,

documentation, information flow, quality, safety, cost and schedule

 Identifying heavy lift/rigging plans requirements and development

of cost options for major and complex lifts

(30)

Constructability

 Methodology – Pre-assembly

 Methodology –modularization

 Early definition

 Module grade levels

 Module configuration

 Module sizing

 Module contents

(31)

Constructability

 What are five examples of benefits that constructability gives to a

project?

 What would each benefit mean for a project’s schedule and costs?

(32)

Agenda

 Introduction

 Overview

 Site Organization and Resource Management

(33)

Site Organization and Resource Management

 Mechanical / Piping / Structural Superintendent

 Electrical and Instrumentation Superintendent

 Civil and Earthworks Superintendent

 Scaffolding Superintendent

Site Organization – Roles

The organization structure is dependant on the size, contracting strategies and complexity of the project and may differ than what is typically shown in the charts

 Document Controller

 Field Engineering

 QA/QC Inspector

 Senior Planner/Scheduler

 Senior Cost Engineer

(34)

Sample Project Organization Chart

Comm Org Chart Const Org Chart WorleyParsons Project Sponsor Customer Project Manager Project Quality Manager Administrative Assistant

HSE Manager Procurement Manager Project Engineer Manager Engineering Manager Construction Manager Project Controls Manager Commissioning Manager Lead Cost Engineer Prime Contract Administrator Lead Planner Lead Estimator Project Accountant Purchasing Supervisor Materials Management Supervisor Vendor Inspection Coordinator Contracts Supervisor MCS Supervisor Lead Document Controller WorleyParsons Project Manager

(35)

Sample Construction Site Organization Chart Project Controls * Construction Manager Construction Management HSE Manager * Construction Engineering * Construction Inspection * Contract Administration * Contracts Administrator Contracts Engineers Cost Eng Planning Eng Estimating Eng Reports Eng Superintendents Supervisors ? Civil ? Structural ? Mechanical Resident Engineer Field Engineers Document Control Site Services * Project Quality Manager Materials Management * Project Manager Materials Controller Warehouse Field Purchasing Office Services Human resources Industrial Relations Accounting Safety Advisors Training Security Environment Community Inspectors ? Civil ? Structural ? Mechanical ? Electrical ? Instrumentation

(36)

Sample Completions Site Organization Chart Completions Manager Commissioning Superintendent Permit To Work Coordinator Handover/ Turnover Coordinator Punchlist Coordinator Commissioning Planner Senior Commissioning Discipline Technicians Commissioning Discipline Technicians Operations Representative WorleyParsons Project Manager Commissioning Engineer -Electrical -Instrument -Process -Mechanical Completions Manager Commissioning Superintendent Permit To Work Coordinator Handover/ Turnover Coordinator Punchlist Coordinator Commissioning Planner Senior Commissioning Discipline Technicians Commissioning Discipline Technicians Operations Representative WorleyParsons Project Manager Commissioning Engineer -Electrical -Instrument -Process -Mechanical

(37)

Site Organization and Resource Management

 Construction Staffing Plan

•

Preliminary plan to be developed at FEED to form basis of CM Labor estimate

•

Project, Construction and HR Managers to formulate proposed construction organization resource plan

 Obtaining suitably experienced staff, subcontractors

•

Project, Construction, Procurement and HR Managers to source

 Demobilization

(38)

Agenda

 Introduction

 Overview

 Communication and Team Work

(39)

Communication and Team Work

 As a Project manager encourage a Positive project culture

 Mutual trust and team respect

 Team work

•

Coordination

•

Cooperation

•

Communication

•

Compromise, and

(40)

Communication and Team Work

 Ensure Construction and Completions Managers are included in

key project meetings

 Project meetings to be held on site at regular intervals during

Construction phase

 Have engineering spend time on the construction site to conduct

follow on engineering

 Have a well-defined and adequately resourced Field Engineering

group to manage on-site engineering queries linking back to the Home Office

 Construction and Completions to be included in project team

Home Office and Site Office Communication and

Teamwork

(41)

Communication and Team Work

 Regular on-the-job meetings

 Ensure work is organised according to schedule

 Ensure that the Site logistics plan supports all phases of the

project

 Monitoring and expediting the processing of shop drawings,

samples and other submittals for approval in a timely manner

Coordination

Your role as Project Manager is to provide support and guidance to the Construction and Completions Management Teams

(42)

Communication and Team Work

 Settling money issues promptly

 Submission of progress and final payment applications using the

contract’s established procedure

 Communications between the Construction Contractor and the

Engineer is being facilitated through WorleyParsons

 Nurturing relationships being conducted between WorleyParsons

Construction Management Team and Construction Contractors’ authorized representatives

Cooperation

(43)

Agenda

 Introduction

 Overview

 Issue Resolution

(44)

Issue Resolution

 What is the effect of saving up issues for resolution later

Problem

 What should Project Managers do about resolving issues

(45)

Agenda

 Introduction

 Overview

(46)

Quality Management

 Project procedures

 Quality processes used at project level

 Continuous improvement

 Audit program

(47)

Quality Management

 Reporting deficiencies that may affect delays in completion of work

 Issuing of Non-conformance Reports and Corrective Action

Requests to the Construction Manager

 To accurately reflect the project Quality Plan expectations and

desired outcomes

Construction Contractor’s Responsibilities for Quality

Control

(48)

Quality Management

 Ensures the status of inspection and test is known at all times

 Provides documentary evidence of the satisfactory completion of

required tests

(49)

Quality Management

 Checklists provide a verification record of a test

OR

the completion status prior to a non-reversible step

 An inspector produces a Defect List when they find defects or

requirements for rework

(50)

Quality Management

 A Construction Contractor may request inspection clearance from

the Site Inspector

 Where the inspector finds defects a punch list must be attached to

the Inspection Release Certificate

 Punch list

•

Can only be cleared by the site supervisory team and forms

part of the contract quality records

•

Indicates the category of the punch list items and dates by

which they will be completed

(51)

Quality Management

 Construction Contractors must provide a Manufacturer’s Data

Report (MDR)

 MDR contains

•

Documentary evidence of inspection and test activities

•

‘As-built’ status of work

•

Compliance status with relevant standards, codes and

specifications

(52)

Agenda

 Introduction

 Overview

(53)

Protocols for Construction Site Visits

 Is project-specific and covers legalities and that Customer requirements are addressed and who controls security and access

 Oversees project security measures

 Is reviewed by WorleyParsons Executive Project Management and the Customer

 Ensures that correct Inductions and Orientations are conducted i.e.

•

Permanent Construction Personnel

•

Visitors

(54)

Protocols for Construction Site Visits

 Minimum PPE requirement

•

Safety boots

•

Hard hat

•

Safety glasses

•

Long trousers

•

Long sleeve shirts

•

High visibility vest or clothing

 Additional PPE requirement

•

Mono-goggles

•

Gloves

•

Hearing protection

•

Fire retardant clothes

(55)

Agenda, continued

 Health, Safety and Environment (HSE)

(56)

Health, Safety and Environment (HSE)

 Safety is the Number One Concern of Construction work as it is

conducted in high risk areas

 Zero Harm applies to all projects

 Promotion of safety culture

(57)

Health, Safety and Environment (HSE)

 Risk analysis

•

Project Risk assessment

•

Construction Risk Assessment

•

Job hazard Analysis (JHA)

 Contractor selection

•

Based on proven safety commitment and performance

•

Documented proof of a Company Health and Safety Program

•

Development of a Project specific OHS&E Management Plan

(58)

Health, Safety and Environment (HSE)

 Other strategies

•

Safety in design

•

Plans and preparation for emergency conditions

•

Periodic controlled audits on performance

•

Quick and firm response if sub-standard performance found

•

Recognition of safety performance and commitment

•

Follow-up of OSH&E performance at contract close-out

 Proactive involvement of key Construction Contractors

•

Involve Contractors in regular on site HSE meetings

(59)

Health, Safety and Environment (HSE)

 Training and Inductions of Contractor personnel

 Site Safety policies and Procedures

•

Develop a written safety policy of commitment to national and

state safety laws and regulations

•

Produce a comprehensive suite of safety procedures for use

on site

•

Ensure that adequate safety equipment is available

(60)

Health, Safety and Environment (HSE)

 Ensure a positive culture of relationships and communication by:

•

Early analysis of project scope to identify key risk areas

•

Early involvement of key Construction Contractors

•

Clear communication of safety approach, programs, roles and responsibilities

•

HSE incident reporting

•

Regular Job Start meetings

•

Toolbox meetings

•

Job Hazard Analysis (JHA), Safe Working Instructions

•

Take 5

•

Continuous Improvement activities

•

Site notice board

(61)

Health, Safety and Environment (HSE)

 Project Environmental Plan

•

All personnel are responsible for environmental observance

and accountability

 Impact of unforeseen environmental problems

•

Ensure contingencies are in the budget for unforseen

problems

•

Resolve issues expediently

•

Insurance concerns and project lenders liabilities

(62)

Agenda, continued

 Industrial Relations

 Change Management

(63)

Industrial Relations

 What is the purpose of the Industrial Relations (IR) Strategy

•

To manage Industrial relations during Define and Execute phases to minimize time lost due to Industrial disputes

•

The Industrial Relations must be jointly managed by the Project and Construction Managers throughout the Project lifecycle

 What are the requirements of the IR Plan

•

Where there is a need to have one within a project area

•

To reflect our global requirements of managing IR

•

That it be a sub-section of the PEP

 Who is in the IR Team

(64)

Industrial Relations

 Jointly responsible for policies, procedures and principles

contained in the IR approach with the Construction Manager

 Workplace consultative committees

Management of Construction Contractor Industrial

Relations

(65)

Agenda, continued

 Risk Management – Construction

(66)

Risk Management – Construction

 Risk Management Workshops

•

Ensure that both Construction and Completions participate to

capture activity risks

 Planning and review process

•

The process to capture all activities so that they can be

performed in a safe and timely manner

•

All activities should be aligned with the OneWay to Zero Harm

philosophy

(67)

Risk Management – Construction

 Maximize Customer satisfaction

 Minimise risk

•

Contractual/commercial exposures such as process and

performance guarantees, warranties, liabilities

•

Labor productivity risks for lump sum projects

•

Supervisory quality

•

Staff availability, morale, competency, retention

•

HSE & security

•

(68)

Risk Management – Construction

The hierarchy of control is the systematic strategy used to:

 Elimination

 Substitution

 Engineering

 Administration

 Personal protection equipment

(69)

Health, Safety and Environment (HSE)

 Continuous education and training in safety and safety awareness

 Strict safety requirements and experienced safety supervision

 Regular safety inspections and audits to verify compliance

 Requirements of the Construction Safety Case

 Requirements of Operational Safety Case

 Permit to Work System (requires Permit Holders)

(70)

Health, Safety and Environment (HSE)

 Excavation Procedure

 Works executed under an approved Work Instruction

 Construction HAZID Workshops and Risk Analysis Workshops

 Customer presence for tie-ins and shutdowns.

 Close interaction between construction and commissioning phases

(71)

Agenda, continued

 Construction and Field Procurement

(72)

Construction and Field Procurement

 Market conditions

 Division of work

 Project Schedule (and other KPIs)

 Quality of scope definition

 Customer staffing model for the project

(73)

Construction and Field Procurement

 Lump sum

 Reimbursable

 Cost plus fixed fee

 Unit rate

 Mixed strategy

 Day work

(74)

Construction and Field Procurement

 Key decisions and operational directions

•

Construction Manager participates in key decision and

operational directions including assisting in the compilation of SoW, Tender reviews and Construction Contractor selection

 Site requisitions

•

These are primarily used where a service is not covered by a

project office issued contract or purchase order

 Program for site purchasing

•

The Project Procurement Management Procedure will confirm

the limits set for site purchases

(75)

Construction and Field Procurement

 Materials Management

•

Inspection and expediting

•

Materials receipt, quality control and inspection, identification

and resolution of deviations, item identity/tagging, and quarantine

•

Warehousing

•

Issue control

•

Material reconciliation

• MARIAN

(76)

Construction and Field Procurement

 The construction team administer the construction Contractors

activities on site

 Vendor representations

•

Construction and Completions interface with Engineering

office to establish vendor timing to site and arrange visit via Procurement

► Contracts placed by the Customer

• Encourage a Customer to relinquish control of the Contractor

for the full duration of the Contract

(77)

Agenda, continued

 Construction Control and Reporting

(78)

Construction Control and Reporting

 Construction progress against the budget and schedule

 Contractor reporting of all contracts involving works at a

construction site

(79)

Construction Control and Reporting

 Construction KPIs

•

Meet project health and safety requirements

•

Meet project schedule

•

Meet project budget

•

Meet project quality objectives

•

Minimize environmental impact during construction

•

Minimize inconvenience to local community and landowners

•

Meets the Customers expectations

(80)

Construction Control and Reporting

► Construction Forecasts

•

Baseline schedule is used to monitor progress

•

Schedule critical paths is update weekly

► Contractor Performance Measurement

•

Earned hours by task are calculated by the actual progress

achieved

•

Performance against the budget is monitored comparing

actual vs earned hours

(81)

Construction Control and Reporting

 Report Format

•

Reports must follow format as agreed between the Project Manager and the Customer

 Construction Site Reports

•

Safety Incidents, near misses and hazard identification

•

Progress, summary of activities, key deliveries at site

•

Details about these reports are listed in the Progress Measurement Construction Guideline, PCP-0005

•

Numbers of personnel on site, broken down by Construction

Contractor and construction work, supplier, material and equipment

•

Areas of concern

(82)

Construction Control and Reporting

 Construction Project Meetings

•

Construction Contractor progress meetings are convened

weekly

•

Shorter duration projects may require meetings twice a week

•

Project Manager should attempt to participate in progress

meetings at least once per calendar month.

•

Agenda

•

Minutes

(83)

Agenda, continued

 Document Management

(84)

Document Management

 Specific constructability checklist

 Construction Management Plan

 HSE Management Plan

 Environmental Management Plan

 Drawings

(85)

Document Management

 Formal, documented procedure

 Procedure covers receipt, issue, transmittal and recording of

drawings, specification and other documents

 Includes documents issued to or received from Contractors

 Documents must be uniquely numbered and registered

 Document Controller is responsible for document management

and control

(86)

Document Management

 A document and drawing library must be maintained at the

Construction site office

Document Review and Sign-off

Document Control Registers

 Document Control Registers must be maintained for all drawings,

(87)

Agenda, continued

 Completions – Commissioning and turnover to the Customer

(88)

Completions – Commissioning and turnover to the Customer

 Pre-commissioning is now referred to as Commissioning Stage 1

•

Historically referred to as pre-commissioning

 Commissioning has four stages

•

Commissioning Stage 1 — Mechanical Completion

•

Commissioning Stage 2 — Function Testing

•

Commissioning Stage 3 — System Commissioning

•

Commissioning Stage 4 — Start-up and Ramp-up

(89)

 Commissioning Stage 1 – Mechanical Completion

•

Features of this phase will include:

•

Single discipline activity.

•

Static or un-energized checking of equipment and components to ensure specification compliance and correct installation.

•

Includes device installation checks.

•

Calibration checks.

•

Includes cable insulation and continuity checks.

•

Includes motor rotation checks using rotation instruments

•

Piping hydro-testing (usually completed in the fabrication yard) and flushing.

(90)

•

Preparation of site teams for introduction of power and upcoming live plant testing.

•

First fill lubrication of equipment

•

Alignment checking

•

Preservation and warehousing.

•

Acceptance of Red line As Built Documents.

•

Inspection, agreement of the Mechanical Completion Punch List.

•

Entry of all punch list items into CMT.

(91)

 Commissioning Stage 2 – Function testing

•

Single discipline activity.

•

Energized function testing.

•

Completions phase Permit to Work system is in place.

•

Inspection and agreement of the Stage 2 Punch List.

•

(92)

Customer Operations participation in these activities is now mandatory

 Commissioning Stage 3 – System commissioning

•

Transformation from static checking to live testing

•

Dynamic testing of complete systems and sub systems

•

Completions and placing into service the utility systems.

•

Confirmation that systems are ready to start up or accept

product

•

Inspection and agreement of the Stage 3 Punch List

•

A Pre-Start Safety Review (PSSR)

•

(93)

All work will be completed by system or area previously identified and included in the completions schedule

 Commissioning Stage 4 – Start-up and ramp-up

•

Introduction of product (or inert medium, followed by product)

•

Start up and ramp up to operating operational status

•

Inspection and agreement of the Stage 4 Punch List

•

Entry of all punch list items into CMT

•

Turnover of process systems

(94)

Completions, continued



Operation & Performance Testing



Interim Turnover to the Customer



Interim Facilities Turnover

(95)

► Commissioning and Turnover Documentation

•

Facilities Turnover Meeting MOM

•

Turnover Certificates

•

Facilities Turnover Punch List

•

Commissioning Dossier

•

Outstanding Works Plan

•

Site Administration Records and Reports

•

Deliverables as per Commissioning Execution Plan

(96)

 Management of mechanical completion and function testing

activities and interfaces between various stages

 CMT selected during BOD and implement during FEED

 Selection of CMT depends on size and complexity of project and

Customer preference

(97)

Agenda, continued

(98)

Change Management

 Approved procedures are in place and personnel are trained

 Compliance to procedures

 Construction Team are integrated into Management of Change

process

(99)

Change Management

 Management of Project Change Procedure <insert hyperlink to

PCP-0010>

 Site Queries Procedure <insert hyperlink to FCP-0016>

 Site Based Contract Administration Procedure <insert hyperlink

to FCP-0011>

Key Procedures

(100)

Agenda, continued

 Change Management

(101)

Summary and Feedback

 Review Learning Objectives and Outcomes

 Summary – review topics

 Questions

(102)