project compliance audit terms of reference

Shell Petroleum Development Company of Nigeria

Classification Status: Confidential

Date: August 2015 Document Number:

Terms of Reference

Contractor Compliance Audit

Proprietary Information: This document contains proprietary information and may not be partly or wholly reproduced without prior written permission from Shell Petroleum Development Company

Revision Date Description Originator Checker Approved

ADDITIONAL AGREEMENT/APPROVAL RECORD

Party Ref Ind Name Sign Date

Revision Philosophy

All revisions for review will be issued at R01, with subsequent R02, R03, etc as required.

All revisions approved for issue or design will be issued at A01, with subsequent A02, A03, etc as required.

Documents approved for Construction will be issued at C01, C02, and C03 respectively.

Documents or drawings revised as “As built” will be issued as Z01, Z02 Z03 etc.

Narrative sections revised from previous approved issues are to be noted in the table below and/or highlighted in the RH margin (using the appropriate revision status) thus: | A02

Previous revision highlighting to be removed at subsequent issues.

Drawings/diagrams revised from previous approved issues are highlighted by 'clouding' the affected areas and by the use of a triangle containing the revision status.

Revision History

Revision No.

Date of issue

Reason for change

Terms of Reference: Contractor Compliance Audit

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CONTENTS

1.0 INTRODUCTION 4

2.0 AUDIT OBJECTIVE 4

3.0 AUDIT SCOPE 4

4.0 AUDIT CRITERIA 4

5.0 REFERENCE DOCUMENTATION. 4

6.0 AUDIT APPROACH 4

7.0 AUDIT TEAM 5

8.0 AUDIT REPORTING AND FOLLOW UP 5

9.0 AUDIT TIMETABLE 5


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1.0 INTRODUCTION

It is planned to carry out a Compliance Audit of ............................, during the Construction phase of the Project.

Table below indicates location and timings.

Project/Department Team

Location Date & Time

2.0 AUDIT OBJECTIVE

To verify that Contractor’s Quality Management System established and being implemented for its scope of work, is in line with SPDC OTUMARA Facilities Project Requirements.

To verify and appraise Contractor’s level of compliance with Approved Procedures, Plans, Specifications, Processes and relevant Guidelines for its scope of work in line with the SPDC OTUMARA Facilities Project Requirements.

To verify that there is adequate Contractor Supervision.

To verify existence of records to support the above

To identify areas for improvements

3.0 AUDIT SCOPE

The audit approach and limits will be centred on the following

Quality Management System: Project Quality Plans, Project Execution Plans, Inspection & Test Plans.

Project Management: Coordination and Execution, Contract Management, Contract Reporting and Risk Management.

Construction Management: Material Storage, Handling and Controls, Welding & Fabrication and Coating / Painting Operation

4.0 AUDIT CRITERIA

Approved Construction Procedures, Applicable Shell DEP, Standards, Codes, ISO 9001:2008 and Reference Documents

5.0 REFERENCE DOCUMENTATION

ISO 9001:2008: Quality Management Systems – Requirement DEP 82:00:10:10: Shell Project Quality Assurance Contractor’s Quality Surveillance and Control Plan Contractor’s Organization and Key Personnel Relevant Project Specification and Contractor’s Approved Procedures and Plan Key Contractor documentation / tools

6.0 AUDIT APPROACH

The audit approach will involve audit of the Contractor QMS processes and procedures, documents review, discussion with Contractor Project personnel involved in quality assurance and control activities in order to achieve the objectives in 2.0 above.

Other subject matters to be broached during the audit:

Working towards Flawless Project Delivery(FPD) – consistent delivery of integrity throughout the construction execution phases

Contractor Inspector Resources Contractor QA Practices – monitoring, checks, verification, walk-about and reporting Contractor QA Office, sites equipment, materials and commodities – inspection

strategy


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7.0 AUDIT TEAM

Name Audit Role

8.0 AUDIT REPORTING AND FOLLOW UP

This audit will form part of the FODA overall integrated audit and review programme for 2015. ........... is responsible for leading the Audit and will produce the report. He shall also follow up on any actions identified during the audit, and verify that any recommendations are fully explored or agreed actions closed out.

The Contractor Quality Manager shall be responsible for the implementation of any recommendations identified as a result of the Audit.

9.0 AUDIT TIMETABLE

Audit Schedule

Detail Audit Schedule

Day 1 Time Subject Remark

24th Aug. 2015

10:00 - 10:20 Opening Meeting (Introduction and Audit Protocol) 10:20 - 12:00 Project Quality Management System 12:00 - 13:00 Lunch 13:10 - 16:00 Project Quality Management System 16:00 - 16:30 Audit Daily Debrief


25th Aug. 2015

10:00 - 11:50 Construction Management 12:00 - 13:00 Lunch 13:10 - 16:00 Construction Management 16:00 - 16:30 Audit Daily Debrief


26th Aug. 2015

10:00 - 11:50 Project Management and Coordination 12:00 - 13:00 Lunch 13:10 - 14:10 Project Management and Coordination 14:10 - 14:30 Break (Audit Process Review) 14:30 - 15:00 Final Audit Debrief / Closing Meeting


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