project quality and management services for ag solutions projects

Project Quality and Management Services for AG Solutions Projects

Section IV Scope of Work Tender No. S18091 of 48

PART (4) – PROPOSED CONTRACT DOCUMENTS

SECTION IV – PQMS SCOPE OF WORK

for

AG SOLUTIONS GAS HANDLING FACILITIES PROJECT

S-18091



TABLE OF CONTENTS

1 GENERAL........................................................................................................................... 3

1.1 DEFINITIONS.............................................................................................................. 3

1.2 ABBREVIATIONS........................................................................................................ 5

1.3 REFERENCE DOCUMENTS....................................................................................... 7

2 GENERAL DESCRIPTION OF THE AG SOLUTIONS GAS HANDLING FACILITIES

PROJECT.................................................................................................................................. 8

2.1 INTRODUCTION ......................................................................................................... 8

2.2 AG SOLUTIONS GAS HANDLING FACILITIES SCOPE ............................................. 8

2.3 OVERALL AG SOLUTIONS GAS HANDLING FACILTIES PROJECT EXECUTION

STRATEGY............................................................................................................................ 9

2.4 PQMS CONTRACT SCHEDULE TO FIT OVERALL AG SOLUTIONS PROJECT

SCHEDULE...........................................................................................................................10

3 CONTRACTOR SCOPE OF WORK – PROJECT SERVICES ...........................................13

3.1 WORK LOCATIONS...................................................................................................13

3.2 GENERAL – CONTRACTOR RESPONSIBILITY TO SHELL......................................14

3.3 GENERAL – RESPONSIBILITY OF SHELL TOWARDS CONTRACTOR...................16

3.4 MANAGEMENT OF THE WORKS..............................................................................16

3.5 MANAGEMENT OF THE WORKS..............................................................................18

4 CONTRACTOR SCOPE OF WORK – QUALITY MANAGEMENT SERVICES ..................20

4.1 APPROACH TO QUALITY MANAGEMENT ...............................................................20

4.2 GENERAL REQUIREMENTS FOR QUALITY MANAGEMENT SERVICES................21

4.3 CONTRACTOR QUALITY MANAGEMENT SYSTEM ......................................................23

4.4 EXECUTION CONTRACTOR(S) QUALITY MANAGEMENT SYSTEM ................................23

5 CONTRACTOR SCOPE OF WORK – QUALITY MANAGEMENT SERVICES ..................32

5.1 GENERAL ....................................................................................................................32 5.2 PQMS PROJECT MANAGEMENT SUPPORT PERSONNEL FOR DESIGN, PROCUREMENT

AND FABRICATION PHASES OF THE WORK ...........................................................................33 5.3 PROJECT MANAGEMENT SUPPORT PERSONNEL FOR EXECUTION PHASE IN NIGERIA

34

5.4 PROJECT PHASES ......................................................................................................34

5.5 SAFETY MONITORING .................................................................................................35

6 PERSONNEL REQUIREMENTS .......................................................................................36

6.1 GENERAL ....................................................................................................................36

6.2 PROFILE AND QUALIFICATION REQUIREMENT ............................................................37

6.3 WORKING HOURS AND LEAVE ENTITLEMENT .............................................................42

6.4 ACCOMMODATION AND TRANSPORT ....................................................................43

6.5 HEALTH AND SAFETY..................................................................................................45

7 PQMS SCOPE OF WORK DELIVERABLES .....................................................................46



1 GENERAL

1.1 DEFINITIONS

The following Definitions shall have the meaning assigned to them for the purposes of this PQMS

Contract S-18091.

EXECUTION CONTRACT A set of documents containing the details of the legally binding agreement between SHELL and the Execution CONTRACTOR(S) responsible for performing the Main Design, Supply, Manufacturing, Transportation, Construction and Commissioning WORKS. EXECUTION CONTRACTOR The Execution CONTRACTOR responsible for performing the Main Design, Supply, Manufacturing, Transportation, Construction and Commissioning WORKS and holding a CONTRACT with SHELL with the purpose of achieving same within defined cost and time constraints. CORE CONTRACTOR’s QUALITY ASSURANCE PERSONNEL The full-time CONTRACTOR’s Quality Assurance Personnel based in Nigeria and dedicated to completing the CONTRACTOR’s Quality Assurance Workscope under the PQMS Contract S-18091 as defined in paragraph 2. BASE QA SUPPORT SCOPE OF WORK The work carried out by the full-time CONTRACTOR’s Quality Assurance Personnel based in Nigeria and dedicated to completing the CONTRACTOR’s Quality Assurance Workscope (specifically CTR’s 1,2,3,4,5,6, 7,8,9 and 10) under the PQMS Contract S-18091 NON CTR SCOPE OF WORK The work carried out by CONTRACTOR Personnel and dedicated to completing additional Non CTR related Quality Assurance and PMS Workscope under the PQMS Contract S-18091 CRITICAL COMPONENT Any pressure-containing, flow controlling, pressure-controlling, temperature-controlling, level-controlling or load-bearing device, materials or equipment. CRITICALITY ASSESSMENT A Quality document produced at the beginning of a project showing the ranked relative criticality of all major equipment items and materials. It describes the specific Quality activities to be undertaken for each of these before, during and after manufacture to assure that the desired acceptable level of quality and fitness-for-purpose will be achieved. CONTRACT S-18091 A set of documents containing the details of a legally binding agreement between SHELL and the CONTRACTOR responsible for providing the Project & Quality Management Services under this PQMS Contract S-18091. The PQMS Contract S-18091 shall contain, as a reference document, at least the workscope(s) and schedule(s) of the AG SOLUTIONS and DOMGAS Execution CONTRACTOR(s) CONTRACT(s) defining the Main Design, Supply, Manufacturing, Transportation, Construction and Commissioning WORKS to be monitored and reported to SHELL by the CONTRACTOR. CONTRACTOR The contractor providing the Project & Quality Management Services under this PQMS Contract S-18091.



QUALITY ASSURANCE All of the planned and systematic activities implemented within a Quality Management System and demonstrated as needed to provide adequate confidence that a completed facility or its components will meet the specified requirements for Safety, Quality and Fitness-for-Purpose. QUALITY AUDIT A systematic review and examination to determine whether Quality Assurance activities and related results comply with planned arrangements, whether these arrangements are implemented effectively and are suitable to achieve their objectives. An internal Quality Audit may be carried out by the CONTRACTOR under his Quality Plan as an internal review and attended by the CONTRACTOR or SHELL as witnesses only. SHELL and the CONTRACTOR may carry out an external Quality Audit of the CONTRACTOR, whenever an appropriate advance notice period is given and the agenda for the Audit is preagreed. The findings of all Quality Audits under the CONTRACT shall be reported promptly to SHELL via the CONTRACTOR. Any Non-Conformance and its associated Corrective Actions shall be defined and mutually agreed as to extent, persons responsible and the time limit for completion. QUALITY CONTROL Operational measurement techniques and testing activities of CONTRACTOR that fulfil the contractual requirements for Quality Assurance. The key Quality Control activities of CONTRACTOR(s) shall be monitored by the CONTRACTOR and reported to SHELL. QUALITY CONTROL PLAN A document which describes in detail the specific operational techniques and activities with the relevant acceptance and rejection criteria aimed at monitoring a process and at eliminating causes of unsatisfactory performance (or products) throughout all stages of the WORK under the CONTRACT(s). The CONTRACTOR is primarily responsible for preparing the Quality Control Plan in sufficient detail to enable the CONTRACTOR to schedule his personnel’s visits, as representative of SHELL, to the CONTRACTOR Design, Manufacturing, Transportation and Construction sites and those of his Subcontractors, Suppliers and Vendors; also known as the Inspection & Test Plan (ITP) and Witness Inspection & Test Plan (WITP). QUALITY MANAGEMENT SYSTEM The organisational structure and defined responsibilities, procedures, processes and resources for implementing Quality Assurance Management under a CONTRACT. QUALITY PLAN A document which sets out the specific Quality Control practices, resources, sequence and schedule of Quality Assurance activities of the CONTRACTOR and his Subcontractors, Suppliers and Vendors within his Quality Management System as applicable to the overall project workscope. The Quality Control Plan is a part of the Quality Plan. THIRD-PARTY CERTIFICATION

Refers to services and documentation provided by an independent Internationally Accredited Third

Party Certification Company, employed by the EXECUTION CONTRACTOR (as required by law) to certify

that the materials and equipment provided by EXECUTION CONTRACTOR have been manufactured and

tested in accordance with the applicable International Safety Codes and Standards, are fit for the

intended purpose and to assure SHELL that the WORK has been completed in accordance with the

CONTRACT. The CONTRACTOR shall witness all Third-Party Certification activities on behalf of SHELL and

shall issue separate Certificates of Compliance, Completeness and Acceptance primarily on the basis of

the Third Party Certificates and the CONTRACTORONTRACTOR’S witnessing of all other successful tests

of materials and equipment carried out by the EXECUTION CONTRACTOR(s) under their Quality

Management System(s).



1.2 ABBREVIATIONS

Abbreviation Definition Abbreviation Definition

A Ampere AFC Approved for construction

AFP Approved for Procurement ALARP As Low As Reasonably Practicable

AG Associated gas AGG Associated gas-gathering

ASNT American Society of Non-Destructive

Testing. API American Petroleum Institute

ASME American Society of Mechanical

Engineers ASTM

American Society of Testing and

Materials

AVR Automatic Voltage Regulator AWS American Welding Society

B. Eng. Bachelor of Engineering BLEVE Boiling Liquids Expanding Vapour

Explosion

BOP Blowout Preventor BPEO Best Practical Environmental Option

BS British Standard B.Sc Bachelor Of Science

CA Circulating Air CAO Computer Assisted Operations

CASHES Community Affairs, Safety, Health,

Environment & Security CBO Community Based Organisation

CCR Central Control Room (Tunu CPF) CCTV Closed Circuit Television

CMMS Computerised Maintenance

Management System CP Cathodic Protection

CPF Central Processing Facility

CSV Control Safety Valve CT Current Transformer

CV Curriculum Vitae CoWD Certificate of Work Done

DC Direct Current DCS Distributed Control System

DEP Design & Engineering Practice DQMF Data Quality Management Framework

DCC Document Control Centre DT Destructive Testing

EIS Engineering Information Specification EP Exploration & Production

EPCOM

Engineering, Procurement,

Construction, Commissioning,

Operations and Maintenance

EPIC Engineering Procurement, Installation

& Commissioning

ER Emergency Response ESR Electrical Safety Rules

F&G Fire and Gas FAT Factory acceptance test

FDP Field Development Plan FEED Front-End Engineering Design

FF Foundation Fieldbus FIREPRAN Fire Protection Analysis

FLB Field Logistics Base FT Function Test

Ft Foot

HAZOP Hazard and Operability HEMP Hazard and Effects Management Plan

HMI Human Machine Interface HNC Higher National Certificate

HND Higher National Diploma HP High Pressure

Hr Hour HSE Health, Safety & Environment

HSES Health, Safety, Environment and HVAC Heating, Ventilation and Air



Security Conditioning

IASS Integrated Automation and Safety

System

ICAO International Civil Aviation

Organisation

IDC Inter-discipline Checking IFC Issued For Construction

IFS Integrated Flowstation in Inch

IOS Integrated Operations Standard IP Institute of Petroleum

IRCA International Register of Certified

Auditors ISO

International Standardization

Organisation

ITP Inspection and Test Plan ITT Instructions to Tenderers

J Joule JV Joint Venture

KO Knock Out kV Kilovolt

KvA Kilovolt-amp kW Kilowatt

KWh Kilowatt-hour

LNG Liquefied Natural Gas LP Low Pressure

LPI Low Pressure Indicator LTI Lost Time Incident

LTIF Lost Time Injury Frequency LTO License to Operate

LTS Low Temperature Separator LV/HV Low Voltage/High Voltage

m Metre M Milli = Roman numeral for 1000

MAC Main Automation Contractor MBPD Thousand Barrels per Day

MCC Motor Control Centre min Minute

Mm Millimetre MM Roman numerals for 1 million

MMscfd Million standard cubic feet per day MJR Maintenance Job Routine

MPI Magnetic Particle Inspection MTO Material Take-off

N Newton NACE National Association of Corrosion

Engineers

NDT Non-Destructive Testing NB Nominal Bore (inside diameter of pipe)

NGO Non-Governmental Organisation NLNG Nigerian Liquefied Natural Gas

NNPC Nigerian National Petroleum Company NPSH Net Positive Suction Head

O&M Operations & Maintenance OCC Operations Control Centre (at Tunu

FLB)

Pa Pascal PABX Private Automatic Branch Exchange

PAC Project Advisory Committee PAS Process Automation System

PCS Process Control System PEFS Process Engineering Flow Scheme

PFS Process Flow Scheme PMS Project Management System

PQMS Project Quality Management Services PR Public Relations

PSA Pressure Swing Absorption PSFS Process Safeguarding Flow Scheme

Psia Pounds per square inch absolute psig Pounds per square inch gauge

PTT Prototype Testing

QA Quality Assurance QA/QC Quality Assurance & Control

QC Quality Control QCP Quality Control Plan

QEP Quality Execution Plan QMS Quality Management System



RBM Reliability Based Maintenance RCM Reliability Centered Maintenance

RFSU Ready For Start Up ROW Right Of Way

RT Radiographic Testing

S Second SAFOP Safety and Operability (Electrical

HAZOP)

SAP-PM System Application Product – Plant

Maintenance SCD Sustainable Community Development

Scf Standard cubic feet (of gas) scfd Standard cubic feet (of gas) per day

SDRL Supplier Document Review List SDS Supplier Document Schedule

Sec Second SHELL Shell Petroleum Development

Company

SIL Safety Integrity Level SPDC Shell Petroleum Development

Company

SPIR Spare Parts and Interchangeability

Record SSAGG

Southern Swamp Associated Gas

Gathering

SSIOGP Southern Swamp Integrated Oil And Gas Project

TCN Third Country National TCoO Total Cost of Ownership

TEG Tri-ethylene Glycol TRP Trans Ramos Pipeline

UAT Unit acceptance test UEFS Utility Engineering Flow Scheme

UPS Uninterruptible Power Supply UT Ultrasonic Testing

V Volt VOWD Value of Work Done

W Watt

XXHP Extra Extra High Pressure XS Extra Strong

XXS Extra Extra Strong

1.3 REFERENCE DOCUMENTS

The latest issue of the following documents as at the date of submission of Tender shall apply.

ISO 9001:2008 - Quality Management Systems – Requirements ISO 9000:2000 - Quality Management Systems – Fundamentals and Vocabulary ISO 9004:2000 - Quality Management Systems - Guidelines for Performance Improvement ISO 10005:1995 - Quality Management - Guidelines for Quality Plans ISO 10006:1995 - Quality Management - Guidelines for Quality in Project Management ISO 10011:1991 - Guidelines for auditing Quality Systems ISO 10012:1992 - Quality Assurance Requirements for Measuring Equipment ISO 10013:1995 - Guidelines for Quality Manuals ISO / TR 10014 - Guidelines for managing the economics of quality ISO 10015:1999 - Quality Management - Guidelines for training BS 7000 - Design management systems BS 7373 - The preparation of specifications ISO/IEC GUIDE 25 - General requirements for the competence of calibration and testing laboratories. EN 45001 - General criteria for the operation of testing laboratories. DEP 00.00.20.10 GEN - General requirements. DEP 82.00.10.10 GEN - Project Quality Assurance



2 GENERAL DESCRIPTION OF THE AG SOLUTIONS GAS HANDLING

FACILITIES PROJECT

2.1 INTRODUCTION

The AG Solutions Gas Handling Facilities Project is a suite of flares-out and gas utilisation facilities

to be installed adjacent to SHELL’s existing oil & gas production assets in Nigeria. The project

supports SHELL’s commitment to end routine flaring of Associated Gas and to process it for

economic use.

The Project includes the installation of new gas evacuation, treatment and compression facilities,

some located on Land and some in Swamp terrain, spread over the Eastern and Western Divisions

of SHELL in the Niger Delta.

The Project began in 2004 with the identification of the AG Solutions Phase 1 workscope,

consisting of Otumara, Umuechem, Ahia and Adibawa nodes.

The Conceptual Design work for Phase 1 has been completed. The other nodes remaining are in

either the Concept Selection or Conceptual Design phase and will follow the Phase 1 design,

selection and construction processes after detailed evaluation is complete and all necessary formal

approvals secured.

2.2 AG SOLUTIONS GAS HANDLING FACILITIES SCOPE

The AG Solutions Gas Handling Facilities project scope covers the Engineering Design,

Procurement, Manufacture, Fabrication, Integrated Testing, Transportation, Installation, Site

Construction and Commissioning of several new oil & gas processing facilities.

The facilities to be installed include High Pressure Centrifugal Gas Compressors, Reciprocating

Booster Gas Compressors, Gas Processing Equipment, and Non-Associated Gas (NAG)

processing facilities, Multiphase Pumps, Electric Power Generators, Pipelines, Submarine Cables,

Involute Separators and Ejectors.

Table 1 shows the various packages, which is the primary basis for defining both the AG Solutions

Gas Handling Facilities Execution CONTRACTS workscope and the synchronized PQMS Contract

S-18091 workscope.

Some of the new facilities will be installed either adjacent to or inside SHELL’s existing oil and gas production facilities and therefore there are the usual Quality, Health, Safety & Environmental (QHSE) challenges whilst carrying out construction activities near existing live oil and gas production installations. Other facilities will be located in green field areas.

Table 1 THE PACKAGES FOR THE EXECUTION CONTRACTORS EXECUTION AND THE

CONTRACTORS BASE BID



The PackageS for a 5 Year Period.

Package No.

Description Nominal Capacity

1A Swamp Based Central Processing Facility (WAGP Otumara Typical)

30 MMscfd (10 Mw)

2A Swamp Based Multiphase Booster Station - Typical Opuama

5 MBbl / day

3A Land Based LP Gas Booster Compressor - Typical Umuechem

20 MMscfd

1B Land Based Central Processing Facility (WAGP Otumara Typical)

30 MMscfd (10 Mw)

1C Swamp Based Central Processing Facility – NLNG 30 MMscfd (10 Mw)

1D Land Based Central Processing Facility - NLNG 30 MMscfd (10 Mw)

1E Land Based Central Processing- NAG+AG Compression – NLNG

30-180 MMscfd (10 Mw)

1F Swamp Based Central Processing - NAG+AG Compression – NLNG

30-180 MMscfd (10 Mw)

2B Land Based Multiphase Booster Station 5 MBbl / day

3B Land Based Low Pressure (LP) Booster 5 MMscfd

3C Land Based LP Booster 10 MMscfd

3D Land Based LP Booster 15 MMscfd

3E Swamp Based LP Booster 5 MMscfd

3F Swamp Based LP Booster 10 MMscfd

3G Swamp Based LP Booster 15 MMscfd

4A Land Based HP booster 5 MMscfd

4B Land Based HP Booster 10 MMscfd

4C Swamp Based HP Booster 5 MMscfd

4D Swamp based HP booster 10 MMscfd

5A Land Based NAG Processing Plant 50-150 MMscfd

5B Swamp Based NAG processing Plant 50-150 MMscfd

This PQMS Contract S-18091 tender invitation is aimed at obtaining Commercial proposals for

Quality Assurance and Project Management Services to cover all of the works to be performed

under the Execution & Supply contracts

2.3 OVERALL AG SOLUTIONS GAS HANDLING FACILTIES PROJECT EXECUTION

STRATEGY

The adopted contracting strategy is to engage separate Design, Supply and Execution

CONTRACTORs to execute each of the project activities including:

• Front-end Engineering Design (FEED)

• Detailed Engineering Design and follow-on Engineering.

• Procurement (including Manufacturing, Fabrication, Assembly and Factory Acceptance

Tests)



• Construction (including Site Preparation, Civil Works, Site Installation, Site Pre-

commissioning, Testing, Commissioning, Startup, Running Performance Tests and Initial

Operations).

Meanwhile, the Project and Quality Management Services (PQMS) Contractor will provide, as

SHELL’s Representative, Project Management Staffing, Expediting and Quality Assurance

Services during:

• Design,

• Manufacturing,

• Fabrication,

• Transportation,

• Construction and Commissioning

as well as witnessing of the EXECUTION CONTRACTOR’s Independent Third Party Safety &

Quality Certification services on SHELL’s behalf.

2.4 PQMS CONTRACT SCHEDULE TO FIT OVERALL AG SOLUTIONS PROJECT

SCHEDULE

This CONTRACT S18091 shall cover the Quality Assurance activities for discrete packages of

CONTRACTOR works that may mature at different times over a duration of five years (2010-2014).

Although the execution period for each nodal component is expected to span only 28-36 months,

there is no assurance that individual project elements will not be extended due to unforeseen

constraints. Hence, the CONTRACTOR shall base his bid for his full-time NIGERIA-BASED Core

Personnel dedicated to the PQMS Contract, Administrative and all direct and indirect Overhead

Costs, on a continuous period of 60 months, commencing in the first half of 2010, to be paid for by

SHELL in 60 pre-agreed monthly amounts, commencing from the date of signing of the PQMS

Contract (refer to PQMS pricing schedule in the COMMERCIAL TENDER documents).

The above has been considered in the structuring of the CONTRACTOR’s Scope of Work and the commercial aspects of this PQMS Tender.

The following paragraphs 2.4.1 through 2.4.4 are for CONTRACTOR’s information:

The Execution Strategy for each of the Execution CONTRACTOR’s project phases is described

below:

2.4.1 Front-End Engineering Design (FEED) or Conceptual Engineering

2.4.1.1. FEED shall be performed within SPDC. The output from this process is the Project

Specification, which includes drawings, specifications, construction and operating philosophies

and detailed workscope description to be used for Tendering and preparing Purchase Orders for

equipment.

2.4.1.2.The CONTRACTOR’s responsibility shall be to examine the Project Specification with the

objective of confirming to SHELL that it is entirely Fit-for-Purpose and that each draft Purchase



Order describes materials or equipment in sufficient detail to ensure that it will conform to all

applicable Safety and Quality codes and standards.

2.4.2 Detailed Design and follow-on Engineering.

2.4.2.1. A DESIGN CONTRACTOR selected by SHELL shall execute detailed Design. The

detailed design output is the detailed specifications, Approved for Construction (AFC) drawings

(which are part of the Manufacturing, Transportation and Construction CONTRACT packages),

Material Take-offs, etc. The Detailed Design CONTRACTOR shall be retained during fabrication

and site construction to provide general and interdisciplinary clarifications.

The CONTRACTOR’s responsibility shall be to examine each section of the detailed

specifications with the objective of confirming to SHELL that they are entirely Fit-for-Purpose and

conform to all applicable legislation, Safety and Quality codes and standards.

The DESIGN CONTRACTOR shall provide overall engineering disciplines leadership and shall

ensure and maintain the overall design integrity for the plant/field equipment and facilities. Whilst

he may not do the package engineering, the Detailed Design CONTRACTOR shall ensure that

the Packager’s Design Output is in conformance with the overall plant design intent and that all

interfacing facilities and details have been considered and implemented.

The CONTRACTOR shall independently confirm to SHELL that all such interfacing dimensions

and fits are shown correctly on the AFC drawings and that there are no hazards to personnel

such as tripping, head-banging or eye-gouging obstacles incorporated inadvertently in the

Detailed Design.

2.4.3 Procurement including Manufacturing, Fabrication, Assembly and Factory Acceptance

Tests (FATs).

The MANUFACTURING/FABRICATION CONTRACTOR’s shall provide discrete processing

equipment packages that have been tested offsite as far as reasonably practicable without

delaying overall progress towards installation, hookup and commissioning.

The CONTRACTOR shall work with the MANUFACTURING/FABRICATION CONTRACTOR to

confirm to SHELL that all of the manufacturing / fabrication processes conform with the approved

specifications.

For swamp locations, the MANUFACTURING/FABRICATION CONTRACTOR shall construct,

pipe, wire and test each module in the MANUFACTURING/FABRICATION CONTRACTOR’s

fabrication and assembly yard, then transport the completed module(s) by barge or supply-vessel

and set it on a pre-piled supporting structure at its designated swamp location.

The CONTRACTOR shall witness, on behalf of SHELL, all critical work including FATs, loadout

and tiedown operations and shall assess and confirm to SHELL that the

MANUFACTURING/FABRICATION’s calculations for the centre-of-gravity (CoG) position,

metacentric height and stability report as part of his Warranty Survey Certificate report are

accurate and further confirm that the module or equipment skid is fit-for-transport to site and that

the installation method and construction equipment planned for each item is fit-for-purpose.



The CONTRACTOR shall have the right to witness or otherwise validate all Materials Mill

Certificates tests including place and date of manufacture, all test results, chemical analysis,

surface hardness, yield and tensile strength tests. Critical-fit dimension measurements by

MANUFACTURING/FABRICATION CONTRACTOR prior to fit-up or assembly for all critical

components of each equipment item shall be witnessed by the CONTRACTOR and a certified

copy provided to the CONTRACTOR by the EXECUTION CONTRACTOR as supporting

documentation for the CONTRACTOR’s Quality dossier to SHELL.

For land locations, the Procurement / Fabrication Contractors shall mount the equipment on

Skids, transport and deliver to specified locations in Nigeria.

The CONTRACTOR shall witness, document and participate in a similar monitoring role to that

described above for swamp-based equipment.

2.4.4 Transportation, Construction & Installation

The CONSTRUCTION CONTRACTOR shall be responsible for carrying out all of the field-location-based construction and installation activities. This will include the collection of skidded equipment from Storage Warehouse facilities and transportation of same, to site. The CONTRUCTION CONTRACTOR shall be responsible for all civil, structural & foundation works, pipeline construction, construction and installation of interconnecting piping, site instrumentation, touch-up painting, etc., as defined in detail in the Construction & Installation CONTRACT. The CONSTRUCTION CONTRACTORs shall work with AFC drawings and procedures issued by the Design CONTRACTOR and verified (on a sampling basis) by the CONTRACTORs.

At each site, the CONTRACTOR shall witness and intervene on behalf of SHELL, in the

Construction Activities, in accordance with pre-approved Inspection and Test Plans (ITPs). The

CONTRACTOR shall intervene in all construction and installation activities of the

CONSTRUCTION CONTRACTOR and shall Verify and countersign as confirmation, where

required all of CONSTRUCTION CONTRACTOR’s Quality Control documents at site. Activities

that shall be verified shall include but not be limited to the following; site-surveys for level and

foundation position, concrete mix and water quality, concrete wet and dry density, 7-day and 28-



day compressive strength tests, reinforcement steel placement and fixing, pile driving records, pile-load tests, slings and lifting-tackle certification-load-tests, crane and hoist brakes, overturning stability, SWL and lifting-radius tests, annual recertification, welding procedures qualification and welder qualification tests, welding radiography and ultrasonic quality records, flushing and cleaning of pressure vessels and pipelines, gauge-pigging, hydrotesting, dewatering & vacuum-drying of pipelines, etc.

Above Table indicates the tentative schedules for the various initial works that will be carried out. Scope

will span FIVE years from expected CONTRACT AWARD date of January 2010.

3 CONTRACTOR SCOPE OF WORK – GENERAL

The CONTRACTOR’s Scope of Work is to provide SHELL with experienced, qualified specialist personnel to provide the Quality Management Services and with Project Management Support throughout all phases of the AG Solutions Gas Handling Facilities Project, over a continuous period of 60 months, from 2010 till of 2014.

3.1 WORK LOCATIONS

The CONTRACTOR’s work will be executed in several different locations. The CONTRACTOR

personnel will be required to work at all of these sites, with some assigned and required on a full-

time basis and others on a part-time occasional day-visit basis. When not required in the field or

fabrication sites, the CONTRACTOR Nigeria-based Core Staff will be based in SHELL AG

Solutions Project offices in Lagos, Port Harcourt or Warri as directed by SHELL. Although most of

the project activities will be located in Nigeria, substantial equipment manufacturing, fabrication,

testing, packing, loadout and shipping activities will be carried out in other regions of the world,



such as Europe, North America, Middle-East, Asia, Australasia and other African countries. The

CONTRACTOR shall make arrangements to cover the Quality works outside Nigeria using his

personnel and resources available in those or nearby countries as far as practicable. The Nigeria-

based PQMS Project Quality Manager shall be responsible for all PQMS activities, within and

outside Nigeria.

The PQMS Project Quality Manager or his designate from the Nigeria-based Core Personnel may

at the request of SHELL, attend key meetings outstide his project base. Examples of where this

may occur include manufacturing kick-off meetings, major equipment Factory Acceptance Tests,

loadout, tiedown for transportation and preservation packaging for storage.

3.2 GENERAL – CONTRACTOR RESPONSIBILITY TO SHELL

The CONTRACTOR shall provide and support the following full-time Nigeria-based key Core

PQMS Personnel, each with appropriate experience, wide skills, qualifications and ability to

execute the entire CONTRACTOR’s Quality Assurance workscope inside Nigeria and shall make

all coordination and logistics planning arrangements for his Quality Assurance workscope to be

executed outside Nigeria by drawing upon and transmitting detailed instructions to his worldwide

pool of internationally-based experienced, skilled and qualified personnel resources to take timely,

appropriate action:

BREAKDOWN OF SEVEN NUMBER KEY CORE PERSONNEL

3.2.1 PQMS Project Quality Manager (PQMS Leader & Key interface with SHELL and

CONTRACTORS) (ONE NUMBER PERSONNEL)

3.2.2 PQMS Senior Quality Assurance Engineer & Lead Auditor (ONE NUMBER PERSONNEL)

3.2.3 PQMS Quality Assurance Engineer & Auditor (ONE NUMBER PERSONNEL)

3.2.4 PQMS Principal Design, Manufacturing & Construction Engineer (ONE NUMBER PERSONNEL)

3.2.5 PQMS Senior Design, Manufacturing & Construction Engineer (ONE NUMBER PERSONNEL)

3.2.6 PQMS Design, Manufacturing & Construction Engineer (ONE NUMBER PERSONNEL)

3.2.7 Document Controller, Administration, Cost Control, Secretarial and Clerical Services (ONE

NUMBER PERSONNEL)

BREAKDOWN OF THIRTEEN NUMBER KEY CORE PERSONNEL

3.2.8 PQMS Project Quality Manager (PQMS Leader & Key interface with SHELL and

CONTRACTORS) (ONE NUMBER PERSONNEL)

3.2.9 PQMS Senior Quality Assurance Engineer & Lead Auditor (TWO NUMBER PERSONNEL)

3.2.10 PQMS Quality Assurance Engineer & Auditor (TWO NUMBER PERSONNEL)

3.2.11 PQMS Principal Design, Manufacturing & Construction Engineer (TWO NUMBER PERSONNEL)

3.2.12 PQMS Senior Design, Manufacturing & Construction Engineer (TWO NUMBER PERSONNEL)

3.2.13 PQMS Design, Manufacturing & Construction Engineer (TWO NUMBER PERSONNEL)

3.2.14 Document Controller, Administration, Cost Control, Secretarial and Clerical Services (TWO

NUMBER PERSONNEL)

The above list and job-titles of Core CONTRACTOR’s personnel is indicative of the

CONTRACTOR’s Quality Assurance Services workscope. As far as practicable, each and all of

the above personnel (3.2.1 to 3.2.7) shall be mutually experienced, skilled, qualified and

interchangeable with at least two other Core Team members, multi-disciplined, experienced and

fully qualified to individually perform specific Quality activities of the CONTRACTOR. Each of



these Core CONTRACTOR personnel shall share the PQMS site-works duties in Nigeria on a

roster to be prepared by the PQMS Project Quality Manager and approved by SHELL.

Note 1: The PQMS Contract schedule planning, progress reporting and cost-control functions will

be performed by the PQMS Project Quality Manager supported by the other full-time

members of the PQMS Core Team. The PQMS Contract schedule is interdependent with

those of the Design, Manufacturing and Construction CONTRACTORs.

Note 2: The PQMS Project Quality Manager shall be supported by and shall report internally,

within his own Nigeria-organization, directly to a PQMS Project Director, being the most

senior active full-time Nigeria-Resident Officer of that organization. The SHELL Company

Representative shall have unrestricted access to the PQMS Director in the event of any

unresolved dispute or grievance with the PQMS Project Quality Manager and PQMS

Core Team members.

The CONTRACTOR shall provide and maintain the necessary in-house procedures to control and

manage the work to ensure compliance with the requirements of the PQMS Contract.

The CONTRACTOR shall provide and maintain documents and reports in a format that is subject

to the approval of SHELL.

The CONTRACTOR shall be responsible for developing and supplying the following PQMS Contract Control Documents:

PQMS Contract Weekly Highlights and Monthly Progress Report

PQMS Document Register in the PQMS DCC

PQMS Man-Day Summaries and Lost-Time Injury (LTI) Reports.

PQMS Non-Conformance, Preventive and Corrective Action Registers

The CONTRACTOR shall be responsible for provision of all accommodation, transportation,

facilities, retainer clinics and support for his activities at all work sites, both within Nigeria and

outside Nigeria, except as defined below in paragraph 3.3 SHELL’S Responsibilities towards

CONTRACTOR.

The CONTRACTOR shall provide office space for up to two SHELL Staff that are visiting any of

his office premises in or out of Nigeria, as and when required, together with all necessary support

facilities including but not limited to computer usage, telephone, secretarial services, clerical

services, etc.

The CONTRACTOR shall be responsible for the provision of personal protective equipment for all

its Staff at all work sites.

The CONTRACTOR shall be responsible for the management of project planning of the PQMS

Contract work for the duration of the CONTRACT and shall ensure that SHELL is fully informed of

the status of all aspects of the CONTRACT work at all times.

The CONTRACTOR shall be responsible for seeking out relevant information from the AG

Solutions Project documentation as required for the execution of the CONTRACT work.



The CONTRACTOR shall provide SHELL with recommendations for remedial action for any

identified shortcomings or non-conformances of the EXECUTION CONTRACTOR.

3.3 SHELL’S RESPONSIBILITY TOWARDS CONTRACTOR

SHELL shall provide (or arrange for the provision of) lockable, air-conditioned office space, accommodation and access to communal messing facilities for CONTRACTOR Staff, while visiting sites located in Nigeria (Feeding Arrangements shall not apply in Shell offices, and other Contractors offices where communal messing arrangements do not exist). SHELL shall also arrange for the provision of a convenient office space in each of the Manufacturing, Fabrication, Vendor Yards located outside Nigeria.

The CONTRACTOR shall be responsible for the arrangement of logistics for transportation of its authorised personnel to and from work sites. Where there is a requirement for air transportation to and from worksites in Nigeria, SHELL shall make the arrangements for the CONTRACTOR’s personnel, in accordance with approved SHELL policies and procedures.

3.4 MANAGEMENT OF THE WORKS

SHELL cannot guarantee an even flow nor continuity of work and it is an express requirement of

the CONTRACT that the CONTRACTOR accepts his obligations to manage and administer his

resources to enable him to fully comply with the service levels and meet emergencies and peaks in

workload requirements. The CONTRACTOR must ensure that sufficient suitably experienced,

skilled, qualified manpower with effective management and logistical support are in place to ensure

a successful operation.

The full-time PQMS Core personnel required to be available in Nigeria for the 60-month

CONTRACT period are as described above and restated here:

• PQMS Project Quality Manager (Key interface with SHELL and EXECUTION

CONTRACTORS)

• PQMS Senior Quality Assurance Engineer & Lead Auditor

• PQMS Quality Assurance Engineer & Auditor

• PQMS Principal Design, Manufacturing & Construction Engineer

• PQMS Senior Design, Manufacturing & Construction Engineer

• PQMS Design, Manufacturing & Construction Engineer

• Document Controller, Administration, Cost Control, Secretarial and Clerical Services

The CONTRACTOR shall have in place a strategy for ensuring that a resource of high quality

candidates is sustained and available for mobilisation throughout the CONTRACT. This shall

include the maintenance of an up to date database of professional PERSONNEL for all the

various categories that could be called upon at short notice to provide service to SHELL. The

above CONTRACTOR Core personnel shall have a clear understanding and signed written

agreement that their planned leave-breaks will be flexible and only may be taken with the consent

of the SHELL Company Representative. Any lull in the CONTRACTOR workload due to the

EXECUITION CONTRACTOR’s rate of progress being less than planned will be an ideal time for

CONTRACTOR personnel to take their leave, with the express understanding that they may be

recalled and shall return to duty within 72-hours of receiving notice to resume.



The CONTRACTOR shall recognise that Quality surveillance at Pipe mills, Vendor’s works,

Fabrication yards, etc., will be required generally at stages identified in the Quality Plan as Hold

or Witness points. Taking this into account, as part of the Project Manual under Clause 2.5 below,

the CONTRACTOR shall advise how he intends to manage this type of arrangement especially

noting that SHELL requires the CONTRACTOR to maintain continuity of PERSONNEL as far as

reasonably practicable for each particular Quality surveillance activity.

The CONTRACTOR shall be responsible to maintain contact with its PERSONNEL at the

workplaces so as to provide logistical and other support. As a minimum, the CONTRACTOR shall

attend the workplace once per month to discuss any concerns its PERSONNEL may have. Such

meetings between the CONTRACTOR and its PERSONNEL shall take place outside of SHELL’s

normal working hours. Only under exceptional emergency circumstances shall the

CONTRACTOR nominate or use any of the PERSONNEL providing service to SHELL to provide

support services to its other PERSONNEL working for SHELL.

SHELL may require the CONTRACTOR to immediately remove any PERSONNEL from the

workplace if the person has contravened any SHELL rules and regulations, or whose

performance, presentation, or behaviour is unacceptable to SHELL. SHELL will provide written

justification in the event of such a decision. Under such circumstance, the CONTRACTOR shall

immediately provide an acceptable replacement at no additional cost to SHELL.

All costs associated with the CONTRACTOR sourcing, locating and providing PERSONNEL for

interview and/or work at any of the work locations shall be considered part of the

CONTRACTOR’s overhead costs and shall be deemed included in the SCHEDULE OF PRICES

& RATES.

The CONTRACTOR shall ensure its PERSONNEL have direct access to the relevant versions

and latest editions of, but not necessarily limited to, Nigerian Statutory Acts and Regulations, ISO,

API, ASME, BS, ASTM, NACE, DEPs, International Codes & Standards and any other necessary

supporting information required to perform the PQMS work.

The CONTRACTOR shall recognise that his Quality Surveillance PERSONNEL may be required

to perform PQMS work at any of the PQMS WORK locations specified. This being the case, the

CONTRACTOR shall retain an up to date database of suitable candidates in all of the PQMS

WORK locations that he can be called upon at short notice to perform the PQMS WORK. The

intent will be to minimise the cost to SHELL associated with airfares for PERSONNEL required to

be mobilised from one geographical location to another.

Where the CONTRACTOR is instructed by SHELL to provide PERSONNEL who are not

Nationals of the Country where the PQMS WORK shall take place, it shall ensure that these

PERSONNEL and any accompanying dependents:

• Hold and maintain all necessary certificates of vaccinations and inoculations to enable

them to enter and reside in that particular Country.

• Hold and maintain valid travel documents, work permits, alien cards, visas and any other

documents required to legally entitle them to be lawfully in employment in, or visiting as a

business visitor, that particular Country.



3.5 MANAGEMENT OF THE WORKS

The CONTRACTOR shall develop and maintain a Project Manual, which shall be presented to

SHELL for approval. The Project Manual shall be a full development of the “Draft Project Manual”

to be submitted as a deliverable in the Technical Tender. The Project Manual Shall contain

details of Contract Procedures required for the management of each phase of the PQMS WORK,

including detailed flowcharts to be used by the CONTRACTOR to manage the project.

The preliminary Project Manual shall be included in the CONTRACTOR's Technical Tender

submission, making distinction between Quality Management Services and PROJECT

MANAGEMENT SUPPORT.

Upon contract award, the preliminary Project Manual shall be updated and submitted by the

CONTRACTOR for SHELL acceptance within fifteen (15) calendar days from CONTRACT

signature and thereafter kept up to date and reissued monthly as part of the Monthly Report.

The Project Manual shall comprise a number of stand-alone sections for each phase of the

PQMS Contract further divided into various sub-sections as follows:

Structure of Project Manual

Section Description

A QUALITY MANAGEMENT SERVICES

1 Introduction

2 Worldwide & Nigerian PQMS AG Solutions Project Organisation

3 Project Execution Plan

4 QMS Key Positions – CORE PERSONNEL

5 Quality Plans and Procedures

6 Criticality Assessment and Intervention Plans

7 Audits

8 Quality Control Surveillance

9 Document Control Centre

10 Resources Allocation Chart

11 Current ISO 9001: 2000 and other pertinent Certification

12 Communications and Reporting

B PROJECT MANAGEMENT SUPPORT

1 Introduction

2 Global / Nigerian Organisation and Reporting Structure

3 Recruitment Policy

4 Minimum qualification requirements

5 Manpower Requirements and Loading

6 Key positions held by Nigerian Nationals

7 Origin of other key Personnel

8 CV’s of key Personnel

9 Sub-Contractors

10 Conditions of Employment

11 Medical Procedures



12 Housing Arrangements

13 Transport Arrangements

14 Visas and Permits

15 Certification and Specifications

16 Communications

17 Maintaining Contact and Welfare

18 Previous Experience and Current Contracts

The nature of the CONTRACT is such that a close and cooperative working relationship must be

maintained between the parties. These requirements may therefore need to be further developed

during the execution of the CONTRACT to facilitate an effective work regime.

SHELL reserves the right to monitor and audit compliance by the CONTRACTOR against the

Project Manual. In such event, the CONTRACTOR shall make available, on demand, those

documents such as medical insurance policies, clinic retainers, employment contracts, etc.

Furthermore, SHELL reserves the right to audit the accommodation and vehicles provided by the

CONTRACTOR for its Personnel and in the event they do not meet the minimum standards

required by SHELL, the CONTRACTOR shall take immediate steps to remedy same at no extra

cost or expense to SHELL.

The CONTRACTOR’s monthly update of the Project Manual shall always address actions the

CONTRACTOR has taken to identify suitably qualified Nigerian Nationals for WORK in Nigeria to

take over any key positions that are being initially filled by Expatriate Personnel.

3.5.1 Procedures/ Systems

The CONTRACTOR shall streamline his procedures and systems and shall use computer-based systems/procedures as much as possible to ensure efficiency, and minimise time, effort and resources (including paper), that is required to implement the procedures.

The CONTRACTOR shall ensure that all procedures required under this PQMS Contract for any particular phase of the Work are presented to SHELL for approval at least two calendar weeks prior to commencement of that phase of the work unless otherwise agreed in writing by SHELL

3.5.2 Changes to Project Manual The Project Manual shall be subjected to a formal Change Control process to be approved by

SHELL. Changes to the project manual shall be notified in the Monthly reports, for the duration of

the PQMS Contract.

The CONTRACTOR shall ensure that the procedures defined in the Project Manual shall be fully

compatible and integrated with all other procedures and systems defined under this PQMS

Contract S-18091.

The CONTRACTOR shall provide with this Tender:

• Proposed Content for the Project Manual

• Overall Flowchart showing exactly how the various procedures, systems, databases,

registers and lists, including Quality and CASHES management will be integrated.



4 CONTRACTOR SCOPE OF WORK – QUALITY MANAGEMENT SERVICES

4.1 APPROACH TO QUALITY MANAGEMENT

4.1.1 The approach to Quality Management described in this section is specific to the AG Solutions

projects, but is based on ISO 9001:2000, the requirements of the Project Quality Plan, the Project

Management Guideline and the DEP on Project Quality Assurance DEP 82.00.10.10 GEN.

4.1.2 The strategy for the Project & Quality Management Services Contract is premised on the fact that

the EXECUTION CONTRACTOR shall establish and implement a Quality Management System

such that he has an overall overview of the activities of his Sub-CONTRACTORs and Vendors.

The primary responsibility for meeting contractual and product specifications rests with the

EXECUTION CONTRACTORs.

4.1.3 Whilst recognising the EXECUTION CONTRACTOR’s responsibility, it is imperative that SHELL

intervenes in the activities of the EXECUTION CONTRACTORS, Sub-CONTRACTORs, Vendors

and Suppliers, in order to provide a reasonable assurance that the project specification is being

met.

4.1.4 The CONTRACTOR shall monitor the activities of the EXECUTION CONTRACTORs and it’s

SubCONTRACTORs in order to give SHELL reasonable assurance that the EXECUTION

CONTRACTORs are meeting the requirements of the Project Specification, with particular

emphasis on the Safety & Quality objectives of the project.

4.1.5 The CONTRACTOR shall issue the following set of documents as a means of assuring SHELL

that the EXECUTION CONTRACTORs have fulfilled the requirement of the Project Specification

4.1.5.1 Quality Assurance Completion Note for Detailed Design.

To be issued in VENDOR yards for equipment that has been manufactured and tested in a

Vendor yard or factory. These certificates shall confirm that each item of equipment has met its

purchase order and requisition requirements in full and is fit for its intended purpose.

4.1.5.2 Certificates of Compliance to specification for equipment:

To be issued in VENDOR yards for equipment that has been manufactured and tested in a

Vendor yard or factory. These certificates shall confirm that each item of equipment has met its

purchase order and requisition requirements in full and is fit for its intended purpose..

4.1.5.3 Certificate of Compliance to specification for systems or modules:

These certificates will be issued in the fabrication yards, when individual systems and modules

have passed all specified tests, such as load tests, combined tests, systems and function tests,

pressure tests and all other tests that are required for the equipment to proceed to the

transportation, delivery, installation, hookup and commissioning phases.

4.1.5.4 Certificate of Compliance to specification for facilities:

This Certificate shall be issued for each integrated field facility that has passed the 72-hour

running performance test. This certificate shall be issued for each discrete facility.



4.1.5.5 Certificate of Compliance to Project Specification:

This certificate shall be issued at the successful completion of the three-months reliability running

test, when all field facilities and systems have run in an integrated manner and all Safety and

Quality related punchlist items have been acquitted.

SHELL recognises that all activities may not be covered with the same level of attention if value for money is to be achieved. In view of this, the intervention scope of the CONTRACTOR in the activities of the EXECUTION CONTRACTORS, SUBCONTRACTORS AND VENDORS shall be based on the Criticality Assessment of equipment and processes, with the items with the highest Criticality Rating receiving the highest level of attention.

Notwithstanding the foregoing, it is the CONTRACTOR’s responsibility to familiarise himself with the Scope of the EXECUTION CONTRACTs described above and all relevant documents, including the Project Specification, Quality Plan and Statutory requirements. The CONTRACTOR shall satisfy all of the Quality intervention requirements of the Project Specification and the applicable International Codes and Standards.

4.2 GENERAL REQUIREMENTS FOR QUALITY MANAGEMENT SERVICES

The CONTRACTOR shall assume responsibility for and provide SHELL, a PROJECT QUALITY ASSURANCE SERVICE required for the Scope of Work described above, on behalf of SHELL for the AG Solutions Project . The CONTRACTOR shall perform its Quality Management Services workscope as a SHELL Representative, performing surveillance and Quality verification, of the activities of the EXECUTION CONTRACTORs. Whilst performing this duty, the CONTRACTOR shall be working on behalf of SHELL in executing its Project Quality Plan and confirming that the requirements of the Project Specification are met. In performing this workscope, the CONTRACTOR shall perform the following duties amongst others and as more specifically detailed below:

• CONTRACTOR to develop a Quality Plan and Procedures to guide its own activities

• Prepare Intervention Plans for EXECUTION CONTRACTORs activities

• Audit the EXECUTION CONTRACTOR’s Quality Management System in accordance with the requirements of the Contracts and ISO 9001:2000 Quality Management Systems Requirements.

• Review and advise SHELL on EXECUTION CONTRACTOR's Project Quality Plans, Audit Plans & Schedules

• Review and advise SHELL on EXECUTION CONTRACTORs’ Quality procedures, data packages, quality reports, etc.

• Audit the EXECUTION CONTRACTOR's compliance with the agreed Project Quality Plans, detailed design requirements, project specifications, International Codes & Standards, Local (Nigerian) and International statutory laws & regulations.

• Maintain a database of Audit/Review Non-Conformances, reporting and expediting on Closeout

• Perform Criticality Assessments to establish the focus for Quality related activities.



• Advise SHELL on the EXECUTION CONTRACTOR's Quality Management System’s application for the different types of pressurised equipment, pigging systems, pipelines, coatings, structural steel, etc. This shall include the review of inspection directives and profiles for selected commodities, third party inspector’s commodity qualifications and performance records on Vendors and Fabricators.

• Develop intervention plans, to enable proper coverage and monitoring of CONTRACT activities, and confirm that applicable Hold, Monitor, Witness and Review Points on EXECUTION CONTRACTORs’ Inspection and Test Plans, are in line with SHELL’s Quality requirements.

• Intervene in CONTRACTOR activities in line with Approved Intervention Plans.

• Provide Quality Control Surveillance during Fabrication, Manufacturing, Transportation, Installation, Construction and Commissioning activities.

• Witness and report results of inspections, non-destructive testing (NDT), destructive testing (DT), welding procedures, welder qualifications and quality control of the EXECUTION CONTRACTOR, his Vendors and Fabricators.

• Report to SHELL any deficient equipment, system or anomaly provided by the EXECUTION CONTRACTOR in a professional, consistent and impartial manner. In this respect, the CONTRACTOR shall bring to the attention of SHELL any errors or omissions, as early as possible to minimise the amount of abortive rework or other adverse consequence.

• CONTRACTOR shall issue a Non-Conformance Report (NCR) on behalf of SHELL, where EXECUTION CONTRACTOR deviates from the Requirement of the Project Specification and Quality Plans.

• Perform spot checks of weldments, radiographic film records, site measurements and other

Site activities to confirm compliance with applicable standards and codes.

• Maintain a daily log to record and document all Quality Control activities concerning radiographs, including all marked up drawings and reports, cross-referenced to enable identification of welds and components radiographed by the EXECUTION CONTRACTORS.

• Provide advice to SHELL (inspection recommendations) on any weld repairs including repair procedures, choice of materials, etc.

• Identify and, if necessary, supervise the removal of unacceptable defects.

• Ensure execution of services in a safe manner in compliance with the Minerals Oil Safety Act (1997). Ensure that all valid Permits-to-Work (PTW) are in place prior to and throughout execution of work and the EXECUTION CONTRACTOR’s own and SHELL’s standing instructions on safety are observed for all PERSONNEL, equipment and facilities.

• Maintain a formal monitoring and reporting system for quality checks.

• Review, assess and advise on contingency planning.

• Verify technical integrity and certification of plant and equipment to be used in the works.

• Review all manufacturing data packages for completeness in accordance with the contractual requirements including specific inspection details, e.g. Baseline Inspection details and approvals on any quality waivers required for the subsequent inspection activities.

• Inspect Material and verify certification to ensure they comply with strength, manufacturing, packaging and delivery requirements of the relevant project specifications.



• Ensure that materials delivered by SHELL or the EXECUTION CONTRACTORS are adequately preserved and stored to ensure maintenance of their technical integrity.

• Issue Compliance Certification during equipment procurement, fabrication, Installation and Commissioning to confirm Execution CONTRACTOR’s compliance with the Project Specification.

4.3 CONTRACTOR QUALITY MANAGEMENT SYSTEM

The CONTRACTOR shall establish a Quality Management System to cover the requirement of this project. The Procedures and Documents for the establishment and regulation of this system shall be presented to SHELL not later than two calendar weeks after the EFFECTIVE DATE of the contract.

Documents to be submitted to SHELL shall include but are not limited to;

1. CONTRACTOR’s Quality Plan covering the scope of the project. The plan shall be prepared in accordance with the requirement of DEP 82.00.10.10 Gen. and ISO 10005:1995- Guidelines for Quality plans.

2. Quality Execution Plan (QEP) based on the EXECUTION CONTRACTOR schedule describing the key Intervention activities, including Audits, reviews, surveillance activities

The Execution Plan, shall be a full development of the Contents of the “Draft Execution Plan” submitted as a deliverable in the Technical Tender.

The Execution Plan shall detail what work will be executed (and shall be in accordance with the defined contract workscope), how this work will be executed and by whom and when.

The CONTRACTOR shall also provide a Quality Plan and an HSE Plan - both being subordinate to the Execution Plan.

The Execution, Quality and HSE plans shall be submitted to SHELL for approval. While SHELL will not unreasonably delay approval, no payment of invoices will be undertaken until all three plans are approved.

3. Audit Schedule for the EXECUTION CONTRACTOR/SUB-CONTRACTOR activities

4. Procedure documents including, but not limited to the following

Non–Conformance reporting

Corrective action follow-up

Change identification and documentation

Punchlist and action items administration

Internal Audit

External Audit

Document Control

Design review and Verification

Communication with Client

Communication with EXECUTION CONTRACTORs

Appraisal of CONTRACTOR Quality Management System.

4.4 EXECUTION CONTRACTOR(S) QUALITY MANAGEMENT SYSTEM

4.4.1 APPRAISAL OF EXECUTION CONTRACTOR(S) QUALITY MANAGEMENT SYSTEM



The CONTRACTOR shall review Quality Management Systems Documents, Plans and

Procedures that shall be submitted by the EXECUTION CONTRACTOR during mobilisation. The

documents to be reviewed shall include but not be limited to the following:

Corporate Quality Manual

Project Quality Plan

All Quality Management Systems Procedures, including but not limited to;

Non-Conformance Identification and Reporting

Corrective and Preventive actions

Document Control

Quality records keeping

Internal and External auditing

Change Control, etc

4.4.2 QUALITY SYSTEM CONTROLS

The CONTRACTOR shall advise SHELL on the effectiveness of the EXECUTION CONTRACTOR’s Quality Management Control System, and shall make recommendations for improvement where appropriate. It shall be the responsibility of the CONTRACTOR to identify Critical areas where the EXECUTION CONTRACTOR’s QMS is not providing adequate attention/Cover and inform SHELL accordingly.

The following Systems, which are considered critical to the success of the project, shall be appraised amongst others;

- System for updating the EXECUTION CONTRACTOR’s Quality Plan and/or procedures/manuals to encompass controls necessary to manage the WORK in accordance with the Contract and Project Specification

- System for preparation, checking and approval of documents/procedures. - System for application of unfamiliar standards and codes. System for dealing with Project changes, design changes/revision of construction procedures,

etc. - System for application of codes, standards and specification requirements (Internationally

recognised and/or Project specifics). - System of selection, qualification and control of Subcontractor’s including VENDORS/SUB-

VENDORS and AGENTS, especially with respect to the acceptance and monitoring of their Quality system.

- System for specifying MATERIALS, fabrication, inspection and test requirements, including acceptance criteria and certification.

- System for evaluation of the content of Vendor data reports, final inspection reports, manufacturing data records and subsequent review and approval for completeness.

- Control of interface activities and co-ordination measures between various departments and offices during all phases of the WORK.

- System to implement clear, effective and efficient information and documentation systems. - System to qualify personnel and ensure the suitability of staff.

A list of procedures to be used on the Project, indicating current revision status of each procedure, and a brief description of the application of the procedure.



4.4.3 EVALUATION OF SUB CONTRACTOR/ VENDOR QUALITY MANAGEMENT SYSTEM

The CONTRACTOR shall participate in assessment audits and evaluation of SUB-CONTRACTORS, VENDORS AND SUPPLIERS that are proposed by the EXECUTION CONTRACTOR. Contractor’s intervention in the activities of VENDORS shall be based on the Criticality of the Items to be supplied or manufactured.

4.4.4 REVIEW OF QUALITY PLAN/ PROCEDURE DOCUMENTS

The CONTRACTOR shall review quality plans and procedure documents that are submitted by the EXECUTION CONTRACTOR and Sub-CONTRACTOR, and advise SHELL as to the suitability of such documents to the target activities.

4.4.5 CRITICALITY ASSESSMENT/ MINIMUM INTERVENTION

The CONTRACTOR shall carry out two types of criticality assessments for the project based on a

Criticality Assessment Procedure.

Product based assessment: This assessment will consider all the equipment hardware that will be

applied to the Project Process /activity based assessment: This assessment will cover processes

and key activities to be performed by the Contractor or his sub-Contractors and Vendors.

This procedure shall determine SHELL’s minimum Intervention in Contractors’ activities. Each

main CONTRACTOR shall prepare a Criticality assessment procedure, for Shell’s approval as

part of his Quality Plan. The CONTRACTOR shall, on the basis of the approved procedure,

indicate his intervention scope in the SUBCONTRACTORS and VENDOR activities, above that

defined by SHELL as the minimum. The Criticality analysis shall be established on the risk of

failure, comprised of probability of failure and the consequence of failure.

The following factors shall be considered in the Criticality Assessment:

Probability of Failure

Complexity of design

Maturity and Stability of products design

Production Process complexity

Production characteristics

Standby availability

Nature of Work

Organisation of work

Work location

Consequence of Failure

Economics

Product safety

Personnel Safety

Environment

Loss of production

Loss of Asset



The following categorisation shall be adopted as guideline:

Table 2. Criticality Ratings categorisation

Category Criticality Description

A Extremely

Critical

Highly complex design, and complex process, expensive item, new design,

Failure shall lead to unsafe operation and serious risk to personnel and

environment, requires third party certification. No standby availability.

B Very Critical

Existing technology, design fairly matured, expensive item, process is fairly

standardised, and available. Failure may lead to unsafe operation leading to

substantial risk to personnel and environment. There is a standby available.

C Critical

Generally available technology, simple process, can be easily replaced.

Failure may not lead to an unsafe condition. May be temporarily out of

service without an effect on production, safety and environment.

D Non-Critical Generally available, no significant effect on production, safety and

environment

Table 3.3.6 below shall form the basis of intervening in the CONTRACTOR and SUB-CONTRACTOR

activities.

Table 3.3.6 Minimum Quality Assurance and Control Intervention

Criticality Rating

Category Item

No. • LEVEL OF QUALITY INTERVENTION REQUIRED A B C D

1 CLIENT shall review Contractor/Sub-Contractors QA competence, prior to

enquiry X X X X

2 Contractor/Sub-Contractor shall possess a valid ISO 9001:2000 certificate. X X X X

3

Contractor/Sub-Contractor shall submit with the bid an overview of their QA

system (Quality Manual): this shall be reviewed and approved by

Supplier/CLIENT

X X X

4 Contractor/Sub-Contractor shall submit with the bid a typical Quality Plan for

a similar commodity- to be reviewed by Supplier and CLIENT X X X X

5

Contractor/Sub-Contractor shall submit with the bid an updated Requisition

for Engineering Documents confirming scope of requirements and delivery

times

X X X X

6 Contractor/Sub-Contractor shall submit 10 days after order a master

Document Register. X X X

7 Contractor/ Sub-Contractor shall submit 10 days after order Spare

PartsInterchangeability Record. X X X X

8 Supplier shall approve any Sub-Vendors employed by the Sub-Contractor. X X X X

9 Supplier shall agree scope of Sub-Contractors and Sub-Vendors QA/QC. X X X X



Criticality Rating

Category

10

Scope of Quality Surveillance to be agreed and all Hold and Witness Points

for Supplier, Sub-Contractor, Third party agencies and Clients to be included

in Suppliers and Sub-Contractors Quality Control Plans and Inspection and

Test plans

X X X

11 Supplier shall hold a pre-production meeting with the Sub-Contractor;

CLIENT shall be in attendance. X X X

12 Contractor/Sub-Contractor shall include in status report, the Sub-Vendors

performance. X X X X

13 CLIENT independent third party to monitor Sub-Contractors and any Sub-

Vendor and to issue Certificate of Compliance. X X X X

14 Supplier shall audit the Sub-Contractors Quality Plan during execution of the

order. X X X X

15 Client shall Audit the Sub-Contractors Quality Management System/Plan

during execution of order X X

16 Supplier shall review Sub-Contractors corrective actions to rectify non-

conformances. X X X X

17 Supplier’s specialist engineer shall witness Factory Acceptance Test. X X X X

18 CLIENT shall witness Factory Acceptance Test. X X X

19 Suppliers specialist engineer shall witness site Acceptance Test X X X X

20 CLIENT shall witness site Acceptance Test. X X X X

Note:

Supplier = Main Execution CONTRACTOR.

Client = SHELL &/or CONTRACTOR

Sub-Contractor = Any Vendor or Sub-Supplier employed by the Supplier.

Sub-Vendor = Any Company employed Sub-Contractor.

Commodity = All plant, machinery, equipment and materials.

Note: All of the above Quality Intervention activities are to be reviewed, finalized and details

agreed by SHELL, the Execution CONTRACTORs and the CONTRACTOR before

implementation for any major equipment item.

4.4.6 AUDITS

The CONTRACTOR shall submit the following documents to SHELL within Fifteen (15) calendar

days of CONTRACT EFFECTIVE date:

• Internal Audit Schedule (For Auditing Own Quality Management System)

• Plan of Audit on Contract Materials, Processes, Quality Systems and Services (This plan

shall be based on approved criticality assessments).

• Plan for Audit of EXECUTION CONTRACTOR and Sub-CONTRACTORs based on the

EXECUTION CONTRACTORs’ Level-II & III plans.

In addition to the above



• The CONTRACTOR shall review and re-issue the above documents to SHELL by the 15th of

every Month for the duration of the CONTRACT.

• The CONTRACTOR shall provide experienced, technically competent and skilled Auditors,

Assessors and Engineers to perform Quality audits throughout the duration of the

CONTRACT.

• The Auditors shall perform audits in accordance with Guidelines for Auditing Quality Systems.

ISO 10011:1991. Audits shall be against approved documents such as the CONTRACT,

Quality Plan, Approved Purchase documents, etc.

• The nature, scope and intent of the audit shall be determined jointly between the

CONTRACTOR, SHELL and the EXECUTION CONTRACTOR.

• The CONTRACTOR shall prepare audit checklists or guidance notes for the purpose of the

audit. The CONTRACTOR shall submit to SHELL copies of the checklists/guidance notes

prior to the audit. The CONTRACTOR shall thereafter undertake periodic audits of the

EXECUTION CONTRACTOR’s compliance with the agreed quality plan.

• Results of audits shall be reported to SHELL within three (3) calendar days of the audit. The

format & content of audit reports shall be provided by SHELL.

4.4.7 NON CONFORMANCE/ CORRECTIVE ACTION

The CONTRACTOR shall, where found, raise non-conformance reports in accordance with an

approved procedure for non-conformance reporting and submit to SHELL within 24 hours of

raising it. The CONTRACTOR and CONTRACTOR shall follow-up on corrective actions and

preventive actions to ensure closure to all reported non-conformances.

Where there is insufficient evidence of a nonconformance, the CONTRACTOR shall raise notes

of observations, which shall state explicitly the concern of the surveillance staff.

All nonconformances shall be formally reported, and recorded in a database which shall be

circulated weekly to the SHELL REPRESENTATIVE.

4.4.8 PROCUREMENT/ MANUFACTURE

CONTRACTOR shall review Procedure documents, plans, etc., submitted by the EXECUTION

CONTRACTOR during this phase, such Documents shall include but not be limited to the

following;

Preparation of requisitions

Qualification of work, inspection and test procedures and plans

Quality and Identification of incoming materials

Calibration and maintenance of inspection and test equipment

Packing, shipping, protection, storage and preservation of finished product

Preparation and supply of finished product documentation.

Identification of Quality related process, tests and inspections

Quality of Subsupplier products

The CONTRACTOR shall intervene in the manufacturing activities on the basis of intervention

plans that shall be developed by him and approved by SHELL. The intervention plan shall be

based on the schedule of activities developed by the Manufacturers (EXECUTION

CONTRACTOR). The CONTRACTOR shall in addition to the requirement of the Purchase



Specification, and requisition, intervene in Manufacturing activities as per the Minimum Quality

intervention (Table 3.3.6)

SHELL shall rely on the quality systems, procedures and plans of established manufacturers.

These shall be subject to periodic reviews and audits by the CONTRACTOR. Where a new

process or product is being introduced into the Manufacturers production line, the

CONTRACTOR shall develop and agree with SHELL a programme for qualifying, reviewing and

auditing the process/product so that it meets the requirement of the project specifications.

Where required, the CONTRACTOR shall carryout spot surveillance checks and audits on

suppliers of components and sub-components, to ascertain that the items meet the purchase

specifications.

The CONTRACTOR shall review and certify all factory tests records and certificates that

accompany manufactures items. The activities of the CONTRACTOR shall not be seen as

substituting that of third party inspectors or certifying agencies that are engaged by

Manufacturers.

The CONTRACTOR shall issue a Certificate of Compliance to Specification for each item of

vendor equipment (in the Vendor’s Yard). The Certificate of Compliance shall confirm that the

equipment has met its purchase order and requisition requirements and is fit for its intended

purpose.

4.4.9 FABRICATION YARDS The CONTRACTOR shall establish a system of audits, reviews and site surveillance in the

modules fabrication/assembly yards that would enable him to function effectively as the SHELL

discipline Inspection/Intervention agency. The activities of the CONTRACTOR in the fabrication

yards shall include but not be limited to the following;

• Review of quality plans/procedures, work instructions and work schedules. Procedures to be

reviewed shall include, but not be limited to:

o Review of contract requirements.

o Preparation and circulation of fabrication drawings, specifications and work

procedures

o Specification of conditions under which work can be performed.

o Specification of criteria for workmanship and inspection.

o Selection and control of Sub-CONTRACTORs and Suppliers.

o Control of engineering documents, their supply, transmittal, review, approval and

distribution.

o Control of the Engineering Dossier.

o Control of incomplete work punch-lists.

o Control of activities required for certification by Government departments, or their

agencies.

o Control of weight and Centre of Gravity locations, including weighing procedures.

o Control of interfaces between disciplines, structures and systems.

o Formal review and submission of proposed changes to approved contract drawings

or specifications, including minor changes.

o Qualification of work processes, e.g. welding, non-destructive testing.



o Surveillance and control of work procedures, e.g. welding.

o Final inspection of completed items.

o Indication of inspection status.

o Effective communication between QC personnel and those involved in construction

and materials control concerning concessions and corrective actions.

o Qualification and identification of operators.

o Control, calibration and maintenance of inspection and test equipment.

o Recording the results of inspections and tests.

o Review of commissioning plans, requirements and resources

o Intervening in Site activities, in accordance with the Inspection and Test plans, which

would be prepared by the EXECUTION CONTRACTOR in accordance with an

approved Intervention Plan. The following levels of intervention shall be adopted;

Review (R): Appraisal for appropriateness and conformity to specifications of documents

referenced and pertinent to a process.

Monitor (M): A continuous surveillance and verification of status of a process and / or

products and the review and analysis of records to ensure that specified requirements are

being met.

Witness (W): A point defined as when the customer will be informed to come and observe an

activity in order to attest to compliance of a process or product to specified requirement(s).

Hold Point (H): A predefined point in a process beyond which the process must not advance

without the approval of the customer or the customer’s representative. Hold points must be

respected at all times.

CONTRACTOR shall ensure that Staff with appropriate experience and qualifications is engaged

on intervention activities. SHELL reserves the right to refuse any activity that is performed by

inexperienced or unqualified personnel. The CONTRACTOR shall witness and report on:

• All function and Performance testing, Factory Acceptance tests, strength and pressure

tests.

• Carrying out confirmatory specialised tests and product sampling verification to validate

work with respect to the contractual specifications, procedures;

Examples of such verification activities will include:

• Traceability and certification of materials and work methods

• Qualifications of weld/NDT procedures and operators/personnel

• Observation of weld procedures and heat treatment parameters

• Verification of non-destructive Testing results

• Make-up of compression fittings

• Make-up of cable glands

• Loop and earth impedance measurement checks

• HV cable termination

• Installation of electrical equipment in hazardous areas

• CONTRACTOR QC record

• Interface specification records



• Pipe extrusion yards

4.4.10 WARRANTY SURVEY/ RELEASE INSPECTION

To mitigate the risks associated with transportation, equipment modules and major equipment

shall be subjected to warranty surveys by the Modules fabricators prior to loadout from the

fabrication yard. The CONTRACTOR shall employ a surveyor who will review all EXECUTION

CONTRACTOR procedures for packing /preservation, load out , seafastening and protection,

load transfer proposals and shall interface with the warranty surveyors.

The CONTRACTOR shall review all plans and proposals for loadout, towing, load transfers and

installation of modules on site. He shall make known any concerns to the PMT, for resolution

before the equipment sails from site.

4.4.11 CERTIFICATE OF COMPLIANCE TO SPECIFICATIONS FOR SYSTEM MODULES

The CONTRACTOR shall issue a certificate of compliance to specification for every system or

module in the fabrication yards when the following conditions are met:

Modules or Systems have passed all specified tests, such as load tests, combined tests, systems

and functional tests and all other tests that are required for the equipment to proceed to the

commissioning phase.

All Certificates of Compliance that pertain to the equipment, are collated, reviewed and adjudged

to be complete.

4.4.12 SITE ACTIVITIES

The CONTRACTOR shall act as SHELL QA/QC representatives on all project sites and

construction yards in Nigeria. The CONTRACTOR shall maintain a team of qualified and

experienced staff who will conduct surveillance activities and intervene in the site civil,

mechanical, electrical and instrumentation works in Nigeria.

The CONTRACTOR shall be in constant liaison with the PMT and the EXECUTION

CONTRACTOR(S) and shall have the organisational freedom to intervene in all site activities.

All site surveillance activities shall be in strict compliance with the requirements of the project

specification and SPDC Standard Construction Specification

The CONTRACTOR shall participate in the evaluation and appraisal of Procedures, work method

statements, Construction Plans and documentation submitted by the EXECUTION

CONTRACTOR and Sub-CONTRACTORs. The CONTRACTOR shall identify critical areas in

Sub-CONTRACTOR’s activities and works to be verified.

The CONTRACTOR shall intervene in the activities of the EXECUTION CONTRACTOR and Sub-

CONTRACTORs, based on marked Inspection and Test Plans, and the surveillance requirements

of the SPDC Standard Construction Specifications. The CONTRACTOR shall check the

compliance of the EXECUTION CONTRACTOR with the specific QC requirements of the SPDC

Standard Construction Specifications.



SHELL may require the CONTRACTOR to carry out specific QC Activities if the EXECUTION

CONTRACTOR QC cover is considered inadequate.

4.4.13 PRE COMMISSIONING

CONTRACTOR shall review pre-commissioning plans, Procedures, Checklists and ITP for all

function-tests, Loop tests, pressure tests, etc. The CONTRACTOR shall as a minimum, witness

all Pre-commissioning Checks in line with the SHELL approved Checklists. The CONTRACTOR

shall endorse all such Checklists. The CONTRACTOR shall witness all site pre-commissioning

tests including Functional Tests, Loop Tests, Pressure Tests, etc, and endorse all test

certifications. Only qualified and experienced discipline CONTRACTOR staff shall witness

specialised tests.

4.4.14 CERTIFICATE OF COMPLIANCE TO SPECIFICATION FOR FACILITIES

The CONTRACTOR shall, as a minimum, witness all pre-commissioning tests and functional

tests, and issue Certificates of Compliance on a system-by-system basis. A Certificate of

Compliance to specification shall be issued for each facility when the following conditions are

met:

1. When the Facility has passed specified functional tests such as the 72-hour performance

test.

2. When all Certificates of Compliance that pertain to the systems and modules that comprise

the facility are collated, reviewed and adjudged to be complete.

3. All relevant documentation has been approved and punch list items that may affect safe

commissioning of systems are properly closed.

4.4.15 COMMISSIONING AND HANDOVER

Certificates of Compliance to Project Specification

The purpose of a Certificate of Compliance to Project Specification is to assure SHELL, that all

the facilities, their inter-connections and interfaces have met the requirement of the project

specification and hence the objectives of the project.

The CONTRACTOR shall issue a Certificate of Compliance to the Project Specification,

when all the following are achieved;

1. All the field facilities and systems have run in an integrated manner, during the 3 months

reliability run.

2. All concession requests have been closed out or acquitted.

3. All Safety and Quality related punchlist items are closed out.

5 CONTRACTOR SCOPE OF WORK – PROJECT MANAGEMENT SERVICES

5.1 GENERAL



In addition to the CONTRACTOR’s Quality Assurance activities and Core Personnel as described

in paragraphs 2.0 and 3.0 above the CONTRACTOR is required to support the SHELL Project

Management Team (PMT) by providing additional experienced, qualified specialist manpower

services to cover other aspects of project execution. All such additional personnel so provided shall

be required to provide their services for a continuous period of not less than ONE (1) calendar

months and up to one calendar year on an annual renewable basis if required.

It is anticipated that the CONTRACTOR shall engage and mobilize suitably experienced, qualified

specialist Nigerian, Expatriate, and/or Nationals of the Country where the PQMS WORK will be

undertaken for those key positions to be filled for working outside of Nigeria.

For PQMS WORK to be undertaken in Nigeria, the CONTRACTOR is strongly encouraged to fill all

of the key PROJECT MANAGEMENT SUPPORT positions with suitably experienced, skilled,

trained and qualified Nigerian Nationals. Where suitable Nigerian Nationals are not immediately

available for the key positions, the CONTRACTOR shall search for and identify acceptable

Nigerian Nationals for on-the-job training on a continuous basis, reporting progress to SHELL on a

monthly basis as part of the Monthly Report.

The services that may be required on a call off basis comprise the provision of administrative,

engineering design, construction supervision and survey personnel to monitor the various project

phases through detailed engineering, procurement, transportation, construction and fabrication

activities, and to ensure compliance with the EXECUTION CONTRACT requirements. Specifically,

the CONTRACTOR’s PROJECT MANAGEMENT SUPPORT personnel may be required to:

• Provide an experienced and qualified Project Contracts Manager to oversee all aspects of the

CONTRACT.

• Provide experienced, qualified Specialist Engineers as identified by SHELL

• Provide Surveyors for route surveys and position monitoring.

• Provide Safety monitoring services to oversee the Health, Safety and Environmental

performance of the EXECUTION CONTRACTOR.

• Supervise fabrication of facilities

• Supervise onshore construction activities.

• Provide contract administration services such as cost control, scheduling, progress reporting,

progress payment review, etc., during the EXECUTION contract period.

• Supervise pre-commissioning and commissioning activities.

• Etc.

5.2 PQMS PROJECT MANAGEMENT SUPPORT PERSONNEL FOR DESIGN, PROCUREMENT

AND FABRICATION PHASES OF THE WORK

The categories of CONTRACTOR PROJECT MANAGEMENT SUPPORT PERSONNEL that may

be required to be provided for the PROJECT MANAGEMENT SUPPORT WORK during the

detailed design, procurement and fabrication phases outside of Nigeria are as follows:

Contracts Manager

Deputy Project Manager

Engineering Design PERSONNEL for disciplines such as:

Mechanical



Electrical

Piping

Civils, Instrumentation

Telecommunications

Welding

Cost

Planning

Surveying

PROJECT MANAGEMENT SUPPORT PERSONNEL to monitor WORK at:

Pipemills

Vendor’s works

Construction Base locations

Fabrication Site (s)

Commissioning

Administration support PERSONNEL

The above PROJECT MANAGEMENT SUPPORT PERSONNEL, when required, may be seconded initially to WORK at the EXECUTION Contractor’s Engineering Base Location.

5.3 PROJECT MANAGEMENT SUPPORT PERSONNEL FOR EXECUTION PHASE IN NIGERIA

During the project execution phase in Nigeria, the CONTRACTOR may be required to provide

identical PROJECT MANAGEMENT SUPPORT PERSONNEL as provided during the detailed

design, procurement and fabrication phase of the WORK to support SHELL by monitoring and

reporting on the following EXECUTION CONTRACTOR activities:

Line Pipe coating

Yard Fabrication

Installation Barges

Construction Sites

Furthermore, the CONTRACTOR may be required to provide a Safety Officer(s) and a Document

Controller along with other Administration Support Personnel to be based at the EXECUTION

CONTRACTOR’s or SHELL’S Offices in Warri or elsewhere at the various onshore/offshore

locations where the WORK will be performed.

5.4 PROJECT PHASES

DESIGN

The CONTRACTOR shall provide experienced, qualified Specialist Multi-disciplined Design

Engineers as required, working as an integral part of the SHELL project team, to ensure full

compliance by the EXECUTION CONTRACTORs with the contractual design requirements. This

will include Engineering design calculations verification checks and formal engineering design

reviews. The CONTRACTOR shall, when required by SHELL, provide discipline Engineers to

perform the following work associated with design:

• Review and verify project plans, schedules, FEED documentation etc.



• Review and advise on the EXECUTION CONTRACTOR’s drawings, calculations, data

sheets, specifications, etc. during the detailed design phase and continuously monitor

CONTRACTOR’s compliance with the agreed engineering design criteria during the project

execution phase.

• Review and advise on the EXECUTION CONTRACTOR’s installation methods and

procedures, testing, pre-commissioning and start up methods and procedures.

• Review and advise on the EXECUTION CONTRACTOR’s as-built drawings and

documentation, operating manuals, maintenance manuals, procedure guidelines, certification

availability/compliance, etc., prior to hand over to SHELL.

• Over and above the discipline Engineers that may be required during the Design Phase, the

CONTRACTOR may be required to supply CONTRACTOR PERSONNEL to establish,

manage and maintain a Document Control Centre.

PROCUREMENT

• SHELL may place an order for linepipe directly with the pipemill, and subsequently assign the

order to the EXECUTION CONTRACTOR. The CONTRACTOR may be required to provide

Quality and inspection surveillance services during line pipe procurement including the

coating of the linepipe.

• The CONTRACTOR may also be required to identify other project materials being procured

by the EXECUTION CONTRACTOR that should be subject to verification and prepare a

report detailing the critical issues, the reasons for selection and the proposed type of

intervention/surveillance required. In addition, the report should indicate the level of risk and

how this may affect the project execution programme. Inspection surveillance visits to

vendor’s factories for critical material items purchased by the EXECUTION CONTRACTOR

may also be required.

CONSTRUCTION AND COMMISSIONING

• Prior to the start of construction activities, the CONTRACTOR may be requested to assess

the EXECUTION CONTRACTOR’s planned work systems relating to site activities, examine

the implementation plans and report and advise on areas that need to be strengthened,

particularly with respect to Safety and practicality, based on past experience.

• If called for by SHELL during the construction phase, the CONTRACTOR will be responsible

for monitoring the implementation of the EXECUTION CONTRACTOR’s quality systems.

Suitably experienced, qualified engineers will be required to oversee each phase of the

construction, both onshore and offshore. Under such circumstances, the CONTRACTOR

shall provide PROJECT MANAGEMENT SUPPORT PERSONNEL at civil construction,

prefabrication, construction, offshore installation, pipelaying, pre-commissioning, etc., at

various locations in Nigeria including along the new pipeline construction routes.

5.5 SAFETY MONITORING

The CONTRACTOR Safety Officer shall as a minimum undertake the following duties:

• Educate all the EXECUTION CONTRACTORS Personnel at the WORK in all aspects of

safety and industrial hygiene



• Undertake safety audits of the WORK to ensure strict compliance with the SHELL

CASHES policy EP 95-0000

• Produce safety statistics

• Assist in organising safety committee meetings

The CONTRACTOR Safety Officer’s objectives shall include:

• To ensure that the operations at the WORK are carried out in such a manner that does not

jeopardise the health and safety of PERSONNEL and equipment

• Administering the incident reporting/investigation system with a view to providing a

statistical database for future reference

• Drawing lessons from incidents &/accidents and educating all PERSONNEL on the

necessary safety precautions to be put in place to avoid a recurrence.

• Ensuring that all activities on the site are carried out in strict compliance with SHELL

CASHES policy.

6 PERSONNEL REQUIREMENTS

6.1 GENERAL

• SHELL is an equal opportunity employer of its own staff and it is a requirement of the CONTRACT

that in carrying out its duties, the CONTRACTOR fully observes all legislation from time to time in

force in the field of equal opportunities with respect to PERSONNEL supplied to SHELL.

• The CONTRACTOR is strongly encouraged to engage suitably experienced and qualified Nigerian

Nationals for the work. Where experience and qualifications are not currently commensurate with the

job requirements, the CONTRACTOR shall put into place an on-the-job training programme for

Nigerian Nationals to ultimately meet the competence requirements of this CONTRACT.

• The CONTRACTOR’s PERSONNEL shall be expected to make an active and positive contribution to

the promotion of ideas and incentives encouraging the implementation of improvements to the safety,

efficiency and cost effectiveness of the work.

• All CONTRACTOR PERSONNEL provided by the CONTRACTOR shall be fluent in the English

language, able to read drawings and specifications where necessary, have the necessary

qualifications and requisite skills and experience using best engineering practices, good professional

skills, man management techniques and any other pertinent requirements to perform the WORK in a

professional manner.

• The CONTRACTOR’s PERSONNEL, where applicable, shall be experienced and sufficiently skilled

such that they have detailed knowledge of, and have kept abreast with, any and all technical

developments in the field of Inspection, NDT, DT and Quality Control.

• All CONTRACTOR PERSONNEL provided by the CONTRACTOR shall be trustworthy, diligent,

capable and efficient in performing the work. Any CONTRACTOR PERSONNEL found not to meet

these basic requirements shall be promptly removed and a replacement provided entirely at the



CONTRACTOR’s cost and expense, including those costs associated with demobilising the originally

provided CONTRACTOR PERSONNEL and mobilising replacements.

• The CONTRACTOR shall submit CV’s of all its proposed CONTRACTOR PERSONNEL to be

engaged under this contract indicating as a minimum the name, date of birth, job title, schools

attended with dates of formal qualifications achieved and currently held, complete work experience

history in reverse date order with the current job first (with CONTRACTOR certified copies of such

qualifications), details of courses attended and any other items of interest such as fluency in

languages other than English.. The proposed CONTRACTOR PERSONNEL shall be interviewed

jointly by SHELL and CONTRACTOR’s Project Manager prior to deployment and shall in all cases

require to be formally accepted by SHELL. It shall always be expected of the CONTRACTOR to have

undertaken its own audit and vetting of CONTRACTOR PERSONNEL proposed to be engaged on

the WORK especially with regard to experience, capability, competence, qualification requirements,

etc. to maintain the high standards expected by SHELL. SHELL reserves the right to reject any

CONTRACTOR PERSONNEL proposed by the CONTRACTOR.

• All CONTRACTOR PERSONNEL proposed by the CONTRACTOR may be subjected to a verbal,

manual or written test examination prior to acceptance or during the work. Should SHELL reject the

proposed or engaged CONTRACTOR PERSONNEL (within a probation period of one month),

immediate steps shall be taken by the CONTRACTOR to replace such CONTRACTOR PERSONNEL

at no extra cost to SHELL.

• All the CONTRACTOR’s PERSONNEL shall be willing to and able to undertake alternative similar or

lesser technically demanding tasks than those for which they were initially engaged.

• The CONTRACTOR and all of the CONTRACTOR’s PERSONNEL shall be required to sign a

secrecy agreement with SHELL undertaking not to divulge any information on SHELL’s operations,

assets and facilities to any party. Furthermore, all of the CONTRACTOR’s PERSONNEL shall also

sign a “Conflict of Interest Declaration” to certify that they have no family or business connections

relating to the WORK..

• SHELL and the CONTRACTOR acknowledge that the arrangements herein are such that no

contractual relationship exists between the CONTRACTOR PERSONNEL and SHELL. In the event

any person claims or a court, tribunal or Government body finds for any purpose that the

CONTRACTOR PERSONNEL is an employee of SHELL, the CONTRACTOR undertakes to defend

such claims and to indemnify SHELL against all legal and other costs incurred by SHELL as a direct

or indirect result of such claim or finding.

• The CONTRACTOR shall not change the nominated and accepted CONTRACTOR PERSONNEL

without prior written approval of SHELL. Any change of CONTRACTOR PERSONNEL shall be

notified in writing by the CONTRACTOR and such notice (minimum 30 days) shall always be

supported with CV details of the CONTRACTOR’s proposed replacement

6.2 PROFILE AND QUALIFICATION REQUIREMENT

• It is envisaged that experienced and qualified skilled CONTRACTOR PERSONNEL will fill the

key positions.



• For all positions, valid qualifications and experience are mandatory and must be verified by the

CONTRACTOR prior to submission to SHELL.

• Generally, all CONTRACTOR PERSONNEL proposed by the CONTRACTOR must be computer-

literate and shall as a minimum be able to use the following software: Microsoft Excel, Word &

PowerPoint.

• The minimum qualifications for the various positions are as follows:

6.2.1 QUALITY ASSURANCE MANAGER

• Multi-disciplined engineer with a B. Eng or internationally recognised equivalent qualification

in Mechanical Engineering or a related discipline;

• Minimum of 20 years experience in the oil & gas construction industry, and a proven

background in Quality Assurance, Design, Manufacturing, Testing, Construction &

Commissioning;

• Comprehensive knowledge of manufacturing technology, materials, etc;

• Comprehensive knowledge of welding, welding techniques, all main NDT techniques and on

and off stream inspection techniques, such as RT, UT, MPI, LPI, coating/painting, mechanical

testing etc;

• Knowledge of construction/fabrication techniques (including repairs) and International Codes

of Practice related to design, fabrication, installation and inspection (ASME, BS, ASTM, API,

DIN, ISO, DEP’s etc);

• Quality Auditing experience e.g. Quality Management Systems, Quality Plans, QA/QC

procedures etc;

• Able to conduct pre-manufacturing meetings, review and advise on material selection, able to

critically review and advise on inspection test plans and able to prepare detailed technical

reports;

• Proven track record on offshore and lay barge work;

• Good co-ordinating, supervising and man management skills;

• Communicative skills are a prerequisite as the Quality Manager will be required to relate

technical issues arising from the WORK to SHELL and the EXECUTION Contractor;

• CONTRACTOR PERSONNEL should be self-motivated and accustomed to working alone

with the minimum of supervision; Must possess good communications and report writing

skills;

6.2.2 QUALITY SURVEILLANCE PERSONNEL

• Holding a BSc/HND or Internationally recognised equivalent qualification in Mechanical

Engineering or a related discipline;

• At least 20 years experience in the Oil and Gas Industry associated with design, inspection

and certification.

• A comprehensive knowledge of repair techniques to International codes of practice related to

design, fabrication and construction. Full familiarity with International Codes of Practice

related to design, fabrication and installation (ASME, BS, ASTM, API, DIN, ISO, DEP’s etc);

Comprehensive knowledge of welding, welding techniques, all main NDT and inspection

techniques such as RT, UT, MPI, LPI, coating/painting, mechanical testing etc;



• For offshore work, excellent track record in offshore and pipeline laybarge work; Competency

in inspection failure modes and having a comprehensive knowledge of potential failure

modes not necessarily limited to process fluid control, material selection and corrosion

mitigation methods;

• Comprehensive knowledge of on-stream and off-stream inspection techniques and codes of

practice for the inspection of in service oil and gas related equipment i.e. the pressure

envelope, such as piping, pressure vessels, columns, risers, offshore structures, etc;

• Quality auditing experience e.g. Quality Management Systems, Quality Plans, Quality

procedures;

• Membership of a professional institute relating to the work such as:

• Welding specialist: Certified AWS, PCN Level II or ERS Inspector. Qualified by an

independently approved body and with an HNC or equivalent in Metallurgy;

• Pipeline specialist: ERS or PCN Senior Pipeline Inspectors certificate with radiography and

ultrasonic with an HNC or equivalent in Metallurgy; NDE specialist: ERS, PCN Level II and

ASNT Level II multi-disciplined approved inspector. Qualified by an approved body; Painting

specialist: NACE or ERS


with a minimum of supervision; Must possess good communication and report writing skills;

6.2.3 SENIOR AUDITORS

• At least 10 years experience with a BSc or HND or an Internationally recognised equivalent in

an Engineering or Science based discipline;

• Participated in a minimum of 25 Quality audits as Lead Auditor;

• Hold a qualification as a Lead Auditor or Assessor grade in the International Register of

Certified Auditors (IRCA);

• Wide range of experience in auditing Project Management, Engineering, Procurement,

Manufacturing, Construction and Commissioning processes particularly in the Oil and Gas

Industry;

• Quality Auditing experience e.g. Quality Management Systems, Quality Plans, Quality

procedures, etc.,

• Full familiarity with International Codes of Practice related to design, fabrication and

installation (ASME, BS, ASTM, API, DIN, ISO, DEP’s etc);


with the minimum of supervision;

• Must possess good report writing skills;

6.2.4 AUDITORS

• At least 10 years experience with a BSc or HND or an Internationally recognised equivalent in

an Engineering or Science based discipline;

• Participated in a minimum of 25 Quality audits

• Hold a qualification as a Auditor or Assessor grade in the International Register of Certified

Auditors (IRCA);

• Wide range of experience in auditing Project Management, Engineering, Procurement,

Manufacturing, Construction and Commissioning processes particularly in the Oil and Gas

Industry;



• Quality Auditing experience e.g. Quality Management Systems, Quality Plans, Quality

procedures, etc.,

• Full familiarity with International Codes of Practice related to design, fabrication and

installation (ASME, BS, ASTM, API, DIN, ISO, DEP’s etc);




6.2.5 PRINCIPAL ENGINEERS

• A B.Eng. or Internationally recognised equivalent qualification in the related Engineering

Discipline capable of reading and interpreting design drawings.

• Over 15 years experience in the Oil and Gas industry associated with Major Oil or Gas

development activities , including detailed design, technical specification writing, process

control, fabrication, commissioning etc;

• Full familiarity with International Codes of Practice related to design, fabrication and installation (ASME, BS, ASTM, API, DIN, ISO, DEP’s etc);

• Comprehensive knowledge of potential failure modes and risks in Oil and Gas facilities; not

necessarily limited to process fluid corrosion, process control failures, material selection and

corrosion mitigation methods.

• Should be self-motivated and accustomed to Supervising others.

• Must possess good report writing skills.

6.2.6 SENIOR ENGINEERS

• A B.Eng. or Internationally recognised equivalent qualification in the related Engineering

Discipline capable of reading and interpreting design drawings.

• Over 10 years experience in the Oil and Gas industry associated with Major Oil or Gas

development activities , including detailed design, technical specification writing, process

control, fabrication, commissioning etc;





• Should be self-motivated and accustomed to Supervising others.

• Must possess good report writing skills.

6.2.7 ENGINEERS

• Holding a B.Eng. or Internationally recognised equivalent qualification in the related

Engineering Discipline capable of reading and interpreting design drawings.

• Between 8 and 14 years experience in the Oil and Gas industry associated with Major Oil or

Gas development activities, including detailed design, technical writing, process control,

fabrication, commissioning etc;







• Should be self-motivated and accustomed to working alone with the minimum of supervision;


6.2.8 SENIOR SAFETY OFFICER

• Above 15 years HSE experience in the onshore and offshore oil industry with a minimum of

HND in Civil, Electrical or Mechanical Engineering or approved equivalent capable of reading

and interpreting design drawings;

• Familiar with Mineral Oils (Safety) Regulations of 1963, Factories Decree No. 16 of 1987 and

International Oil Industry HSE Regulations and Policies;

• Fully trained with up to date certificates in the administration of First Aid;

• Fully familiar with International Oil Industry Medevac and Emergency Procedures;

• Able to assist with Environmental impact studies and assessments;

• − Able to present lecture papers and undertake hands-on training of personnel in all

aspects of HSE,− Ability to prepare contingency plans, undertake drills and simulate

emergency scenarios;

• Fully familiar with procedures and techniques for fire fighting in the Oil Industry;

• Ability to maintain good records;

• Should be self-motivated and accustomed to working alone with the minimum of supervision;


6.2.9 SAFETY OFFICER

• 10 years HSE experience in the onshore and offshore oil industry with an HND in Civil,

Electrical or Mechanical Engineering or approved equivalent;

• Familiar with Mineral Oils (Safety) Regulations of 1963, Factories Decree No. 16 of 1987 and

International Oil Industry HSE Regulations and Policies;

• Fully trained with up to date certificates in the administration of Industrial First Aid;

• Fully familiar with International Oil Industry Medevac and Emergency Procedures;

• Able to assist with Environmental impact studies and assessments;

• Able to present lecture papers and undertake hands on training so as to educate and train

personnel in all aspects of HSE;

• Ability to prepare contingency plans, undertake drills and simulate emergency scenarios;

• Fully familiar with procedures and techniques for fire fighting in the Oil Industry;

• Ability to maintain good records;

• Must possess good communications and report writing skills;

6.2.10 DOCUMENT CONTROLLER/ADMINISTRATIVE OFFICER

• Educated to a high academic standard and having achieved a professionally recognised

qualification such as HNC;

• With at least 5 years experience in the Oil and Gas Industry;

• Experience in managing and operating manual and electronic document management

systems;



• Experience in supervising and training staff in document management;

• Knowledge of Engineering drawing terminology;



6.2.11 HYDROGRAPH AND WARRANTY SURVEYOR

• At least 25 years experience in the offshore oil industry with a BSc or HND or Internationally

recognised equivalent in Marine Warranty Surveys with a Master Mariner rating, hydrographic

survey experience in echo-sounder, side-scan sonar, sub-bottom geophysical surveys and

celestial and triangulation land surveys.

• Having attended offshore surveys industry-relevant equipment and software courses he must

possess:

• Wide range of experience in offshore and onshore surveying of pipeline related projects

including deep and shallow water, land, swamps, etc. environments;

• Comprehensive knowledge of Quality and operational software packages associated with

survey planning, DGPS positioning systems, acoustic positioning systems and post

processing.

• Experience and knowledge of work associated with the operation of survey equipment

including echo-sounder, sidescan sonar, sub-bottom profiler (pipeliner), magnetometer,

ROV’s etc.

• Significant previous experience in working offshore/onshore in/around the West African

continental shelf;




6.3 WORKING HOURS AND LEAVE ENTITLEMENT

The CONTRACTOR’s PERSONNEL shall work those hours required by SHELL as specified below.

Certain grades of CONTRACTOR’s PERSONNEL shall be required to perform 12 hour shift work

and in such circumstance, the same day rates as normal working shall apply.

Generally, SHELL’S normal working hours are:

40 hours per week Monday to Friday 0700 hours until 1600 hours with a lunch break of one

(1) hour from 1200 to 1300 hours.

The CONTRACTOR shall ensure that CONTRACTOR PERSONNEL recognise that due to the

nature of the work, there may be a requirement to work in excess of the stipulated hours and work

may also be required on Saturdays, Sundays and/or Public Holidays. In consideration of this, the

CONTRACTOR’s PERSONNEL shall be expected to work to meet SHELLS operational

requirements. Where work is performed on a Saturday, Sunday and/or Public Holiday, the

CONTRACTOR shall be paid for the days worked at the daily rate stated in the SCHEDULE OF

RATES without any premium for unsociable hours/days working.



The CONTRACTOR shall recognise that offshore works maybe on a continual 24 hours basis. As

such, those CONTRACTOR PERSONNEL working offshore shall be required to work a shift

rotational 12 hours per day.

SHELL shall only pay for those days worked by the CONTRACTOR’s PERSONNEL, including

travelling to and from the work locations from Warri or Port Harcourt.

All Expatriate PERSONNEL supplied by the CONTRACTOR for office and onshore work shall

normally be entitled to thirty (30) calendar days with two (2) calendar days travel time for leave

every ninety one (91) to one hundred and twenty six (126) calendar days worked. SHELL and the

CONTRACTOR will mutually agree the most suitable arrangements for both parties at each

scheduled leave cycle for each individual. Where the CONTRACTOR’s PERSONNEL are required

to WORK in excess of their scheduled leave entitlement after 91 days, SHELL may allow those

CONTRACTOR PERSONNEL additional proportionate leave entitlement, always subject to the

requirements of the WORK.

All Expatriate PERSONNEL supplied by the CONTRACTOR for offshore/swamp locations WORK

shall normally be entitled to twenty eight (28) calendar days leave with two (2) calendar days travel

time for leave every thirty (30) to forty five (45) calendar days worked. SHELL and the

CONTRACTOR will mutually agree the most suitable arrangements for both parties at each

scheduled leave cycle for each individual.

Where the CONTRACTOR is providing CONTRACTOR PERSONNEL for Quality Surveillance

activities at the pipemills, vendor's facilities, factories, fabrication yards, etc., at locations other than

in Nigeria, any required leave and the duration shall be agreed with SHELL to suit WORK

requirements. Where these CONTRACTOR PERSONNEL are providing Quality Surveillance in

Nigeria, the leave entitlements shall be those specified above for office/onshore WORK or offshore

WORK as the case may be.

Where the CONTRACTOR’s Expatriate PERSONNEL have not taken their full leave entitlement

over one calendar year (4 months per annum), the CONTRACTOR shall reimburse its

PERSONNEL the cost of the return Business Class airfare(s) for journeys or part thereof not taken.

6.4 ACCOMMODATION AND TRANSPORT

6.4.1 CONTRACTOR PERSONNEL WORKING IN OFFICES AND ONSHORE LOCATIONS

The CONTRACTOR shall provide safe and comfortable furnished and serviced accommodation for

its CONTRACTOR PERSONNEL complete with potable water, constant power supply, recreational

facilities such as TV, Video, etc. The accommodation shall be at such locations so as to safeguard

against disruption of availability and response time. The accommodation shall meet SHELL

minimum standards with regards to facilities and location.

All meals for CONTRACTOR PERSONNEL shall be provided by the CONTRACTOR. The

CONTRACTOR shall come to an arrangement with its CONTRACTOR PERSONNEL to either



provide food at the accommodation or provide an allowance to enable them to cater for

themselves.

Transportation to and from the work and for all off-duty and recreational activities shall be the

responsibility of the CONTRACTOR. All fuel, lubes, spares, maintenance, full comprehensive

insurance, local taxes and duties and any other requirements necessary to operate and maintain

the CONTRACTOR’s vehicles shall be the responsibility of the CONTRACTOR.

6.4.2 CONTRACTOR PERSONNEL WORKING IN OFFSHORE/ SWAMP LOCATIONS

Where the CONTRACTOR’s PERSONNEL are required to work offshore for SHELL, full board

and serviced accommodation will be provided by SHELL .

The CONTRACTOR shall provide full board serviced accommodation for such CONTRACTOR

PERSONNEL during periods of rest and recreation onshore and for stopover during vacation

periods with the cost thereof deemed included in the CONTRACTOR’s overhead costs under the

SCHEDULE OF RATES.

SHELL shall arrange at its own cost to transport the CONTRACTOR PERSONNEL offshore from

its onshore jetty location. All land transport for the CONTRACTOR’s PERSONNEL during periods

of rest/recreation/leave and to/from the onshore jetty location shall be the responsibility of the

CONTRACTOR.

6.4.3 CONTRACTOR QUALITY SURVEILLANCE PERSONNEL

The CONTRACTOR shall provide all accommodation, messing and transport for its

CONTRACTOR PERSONNEL deployed to undertake Quality Surveillance activities at pipemills,

vendor’s facilities, factories, fabrication yards etc associated with WORK outside Nigeria. It shall

be the CONTRACTOR’s responsibility to ensure that Quality Surveillance PERSONNEL are

readily available to provide the required services in accordance with the PQMS Contract.. In the

event the CONTRACTOR is unable to provide PERSONNEL in the particular geographical

location where the WORK is due to take place, all costs associated with mobilising and

demobilising Quality Surveillance PERSONNEL to and from the WORK location shall be to the

CONTRACTOR’s account.

Where PQMS WORK is being undertaken in Nigeria, the clauses associated with CONTRACTOR

PERSONNEL working in offices and onshore locations and CONTRACTOR PERSONNEL

working offshore shall apply.

6.4.4 COMPUTERS

The CONTRACTOR shall provide a portable laptop computer and associated hardware &

software for the use of each of its CORE STAFF to at least the following specification:

Pentium 5 2Ghz, 2GB RAM, 60GB Hard Disk, 24 x CD-ROM/DVD Reader & Writer, and

Windows Vista Ultimate or equivalent, with 4 or more USB ports, LAN and telephone socket-jack

ports..

Canon IP90v Portable Colour Printer with rechargeable battery pack and USB cable connection.

US-ROBOTICS Type 5690 56K Internal Voice/Fax Modem or equal

Microsoft Office Professional latest version



Microsoft Project for Windows associated with Planning or equal

AutoCAD R14 or later version

Automanager for Drawing Management including red line facility

Latest version Anti-Virus tools (Norton or equal)

Microsoft Outlook E-Mail

6.5 HEALTH AND SAFETY

The CONTRACTOR shall obtain and issue to SHELL copies of Medical Fitness Certificates for

each person employed confirming that the individual has undergone an appropriate medical fitness

examination, CONTRACTOR PERSONNEL above 40 years age shall also undergo a cardiac test.

The CONTRACTOR shall ensure that all CONTRACTOR PERSONNEL deployed under this

PQMS Contract are medically and mentally fit for the duration of their assignments under the

PQMS Contract, And are fully inoculated against all known diseases in the areas they will be

deployed to perform the work.

The CONTRACTOR shall establish procedures and where necessary training programmes to

ensure that all CONTRACTOR PERSONNEL for deployment to swamp or water-borne operations

have undergone and passed a SHELL swimming competency test and have been issued with a

current SHELL Swimming Certificate.

Without prejudice to its right as defined elsewhere in the PQMS Contract, SHELL reserves the right

to refuse access to or remove from any premises of SHELL, any CONTRACTOR PERSONNEL or

visitor who, is or appears to be in possession of or under the influence of alcohol, drugs or any

other intoxicating substances.

The CONTRACTOR shall provide for all CONTRACTOR PERSONNEL, full emergency medivac

repatriation services. If required, the CONTRACTOR shall make available to SHELL on demand

copies of such medivac arrangements.

The CONTRACTOR shall ensure that CONTRACTOR PERSONNEL have access to medical care

and shall ensure that occupational health aspects of their jobs are recognised and managed.

In the event of a medical emergency offshore, SHELL shall provide emergency treatment for

stabilisation of the patient. SHELL shall not provide consultation or treatment facilities for general

sickness, any medication, ongoing treatment, hospitalisation, evacuation or any other medical

condition/requirement. Where the CONTRACTOR’s PERSONNEL are affected, the

CONTRACTOR shall be responsible to maintain contact with their next of kin, as appropriate, on

24 hours per day basis. The CONTRACTOR shall maintain up to date CONTRACTOR

PERSONNEL records, including names, ages, nationality, addresses, contact telephone numbers,

e-mail addresses, details of next of kin, etc.

The CONTRACTOR’s responsibility to its CONTRACTOR PERSONNEL during employment shall

include, but not be limited to:

Ensuring availability of satisfactory medical care for CONTRACTOR PERSONNEL including

routine medical examinations.



Identify special risk groups (such as exposure to high noise, vibration, asbestos, chemicals,

vapours, dust, heat exposure, etc) among its CONTRACTOR PERSONNEL and provide

monitoring and surveillance of affected persons where necessary.

Controlling occupational hazards with a view to their elimination with strict record keeping of

known hazards.

Maintain records of sickness absence.

Provide education to CONTRACTOR PERSONNEL in matters relating to occupational health

hazards at their workplace and ensuring that workplaces are kept in a safe and maintained

condition.

Adhering to accepted standards of hygiene, sanitation and food preparation.

SHELL shall have the right to audit the CONTRACTOR’s adherence to these requirements.

The CONTRACTOR shall provide protective clothing, as appropriate and necessary, for his

CONTRACTOR PERSONNEL for the particular WORK. The list below is indicative in terms of

quality and type of protective clothing to be provided. Where alternatives are used, they shall be of

no lesser standard in terms of durability and degree of protection provided. This list is by no means

exhaustive and the CONTRACTOR shall allow for any additional protective clothing necessary for

its CONTRACTOR PERSONNEL to perform the work in a safe and efficient manner.

Coveralls: Manufactured from Flame Retardant treated cotton. Fire retardant ability should be

in accordance with EN 531 or equivalent, minimum rating A, B1, C1. Coveralls

shall have long sleeves.

Other Coveralls Manufactured from lightweight 100% cotton.

Safety Boots: Oil resistant, skid resistant sole, minimum stitching, flexible sole and upper,

lightweight, internal padding on steel or fibreglass toecap.

Safety Helmet: MSA Super V-Guard 2 or equivalent (BS 5240, EN 397) with Chinstrap.

Bump Hats (for working in Confined Spaces) Multi purpose low dome type helmet

manufactured from high-density polyethylene.

Safety Glasses: Clear shield with side shields for all around protection (EN 166). Optional clipon

polaroid for daytime.

Thermals: Manufactured from inherently fire retardant or treated flame retardant materials.

Waterproofs: Manufactured from fire retardant PVC or Polyurethane coated fabric with

reflective safety tape.

Gloves: Yellow hide or synthetic nitrile equivalent.

Ear Defenders: Suitable to clip onto helmet (EN 352).

Welding Goggles & Shields: To be state-of-the-art furnished by the CONTRACTORs as and when required.

7 PQMS SCOPE OF WORK DELIVERABLES

The Tenderer shall review the Scope of Work, drawings and specifications for each of the Execution

Contracts attached in Appendix IV.1 and together with their own scope of work develop a detailed list

of activities in an MS Excel spreadsheet for each of the (13) deliverables in Table 7.1 below. Each of

the deliverables will be broken down into a detailed activity listing encompassing all Execution

Contract activities along with those for the Contractor themselves. These activities shall be

estimated (manhours only) by job title and function in line with the Attachment 1 to Appendix A5 –

Programme of Work – Part (2) Instructions to Tenderers. The final spreadsheet shall total both

horizontally (to give sub-totals for each detailed activity) and vertically (to give sub-totals by



deliverable). The spreadsheet shall show total manhours for all deliverables and for each of the job

title / function columns.

Table 7.1 – Detailed PQMS Scope of Work and Deliverables.

PROJECT MANAGEMENT NIGERIA & OVERSEAS

CTR/ Group Title Scope Deliverable

SODA/19081/001 PROJECT MANAGEMENT, CONTRACT MANAGEMENT

AND QUALITY PLANNING OF CTR WORKS FOR 60

MONTHS

Review and advise on the PMT quality procedures,

contingency planning, key intervention and surveillance plans.

PMT audit & planning

reports

Organise and administer audits of the PMT quality systems,

project quality meetings, minute results and progress actions.

Minutes of quality meetings

Register the findings of all quality related activities including

inspection and expediting reports, audits and close-outs.

Activity register

Identify, register, track, follow-up, maintain and feedback all

project related PM and QM risks and issues via EZrisk

EZrisk report Issue

Register.

Direct Management support/administration/co-ordination.

Planning/resourcing/procedures, etc.

Weekly Reports Including

Highlights

Contract control/reporting/liaison. Design appraisal co-

ordination. Monitor non-QA review close-out. Monthly Reports

Site Administration Support management of the technical

aspects of the project.

Minutes of Meeting

Prepare & maintain the Project Manuals, Overall Organisation

Chart, Site Organisation Chart, Site Team Database, and

DCC.

Prepare & maintain Project Quality Plan & Audit Plan,

Intervention Planning. Corrective action control, CAR

closure

Project Quality Plan &

Audit Plan Updates

Quality Performance monitoring and reporting on Execution

Contractors Quality Assurance

Performance Reports

SODA/19081/002 TRAINING

On the job quality management training for identified Shell

personnel for the duration of the contract.

Monthly

Progress/Performance

Reports

Reviews and Audits, Assessing and Advising. Training and

certification to an Approved training program

SODA/19081/003 CRITICALITY ASSESSMENTS

Assess and appraise critical areas and items of plant, assign

intervention points. Schedule outlining key focus areas.

Criticality assessment

reports

SODA/19081/004 DESIGN CONCEPT VALIDATION & DETAILED DESIGN

REVIEWS (EXECUTION CONTRACTS)

Review BfD, Standards Register, Project Specification (multi-

discipline review) & Detailed Design key elements.

BfD Review Report, Prelim.

& Final DR Reports

SODA/19081/005 ISO9001:2000 QMS COMPLIANCE AUDITS – ALL

EXECUTION CONTRACTORS

Assess compliance of Contract QMS with ITT and ISO 9000

requirements Audit Reports

SODA/19081/006 SURVEILLANCE– OVERSEAS INCLUDING FACTORY



ACCEPTANCE TESTS, RELEASE INSPECTIONS AND

WARRANTY SURVEYS Identify/review key documentation, test procedures,

acceptance criteria, Statutory Requirements in line with

agreed Quality Planning. Timely issue of Work Instructions,

applicability to work, Review site systems & procedures

including precommissioning and commissioning in line with

agreed Quality Planning. Final Inspection & Dossier review,

Preservation and packing, Pre/post Load-out, Sea fastening,

Stability

Visit Reports

SODA/19081/007 SURVEILLANCE– NIGERIA INCLUDING FACTORY

ACCEPTANCE TESTS, RELEASE INSPECTIONS AND

WARRANTY SURVEYS

Identify/review key documentation, test procedures,

acceptance criteria, Statutory Requirements in line with

agreed Quality Planning. Timely issue of Work Instructions,

applicability to work, Review site systems & procedures

including precommissioning and commissioning in line with

agreed Quality Planning. Final Inspection & Dossier review,

Preservation and packing, Pre/post Load-out, Sea fastening,

Stability

Event Reports, Quality

Assurance Completion

Note, release note,

Warranty Survey

Certificates.

SODA/19081/008 QUALITY RECORDS REVIEW – OVERSEAS As-Built Dossier/ Supplier Dossiers /Construction Dossier,

Handover Punchlist status Reports

SODA/19081/009 QUALITY RECORDS REVIEW – NIGERIA

As-Built Dossier/ Supplier Dossiers /Construction Dossier,

Handover Punchlist status Reports

SODA/19081/010 CERTIFICATE OF FITNESS TO OPERATE Preliminary Certificate of

Fitness

Log of confirmed findings, NCRs, concessions & their

outcomes and close out status. All Quality Documentation

Quality Assurance

Completion Note for

Fitness to Operate

project quality and management services for ag solutions projects

Documents

project quality

pqms scope of work

scope of work tender

ag solutions projects

work locations

general description

general requirements

pqms contract schedule