--- - __-;,_-_-_-_:-_..; ________ ..

,
.,;-~..;"~-~;,_-_;..;,_-;_ · ;._- .--------- ------------ --- - ----I --=-·---,.;_;;..;;-_-
j -_:.,;-.,;-_- ..

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

SECTION 4 OF APPENDIX A

QUALITY ASSURANCE AND QUALITY CONTROL

 =='":-=--
--=-"'"-"""=
---===~

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-1 9-35-420

CONTENTS

1.0 Quality Management Requirements .... .... ..... ...... .. ..... .. ...... ........ .... .. ............. ............ ... .. ... ..... ..... ... . 2

1.1 Purpose ......................... ... .. .. .. .. ... ..... ............ .................... .................... ..... .. .... .. .. ....... ..... .. ...... 2

1.2 Definitions ... ............ .. ........... .. ..... ... .. .. .... .. .... ........... .. ........ .. .......... ..... ... ....... ..... ........ ..... .. ..... ... 2

1.3 Quality Assurance ....... ... ...................... ... ........................... ........... ....... ....... ... .. .................... .. . 2

1.4 Reference Standards ..... ..... ..... ... .... .... .... ........ ............. .. ........ .. .... .. .. .... ... .... .................... ..... ... 3

1.5 Contract Quality Plan ...... .. ........ .... .. ........ .. ........... .... ...................... ................... .. .... ... .......... ... 3

1.6 Quality Plan Contents and Implementation ...................... .. .. ...... .. ....... ...... ........ ...................... 3

1.7 Implementation of the Quality Plan .. .. ...... ...... ...... .. ...... .. ...... .. .......... ....... .... ...... ..... .. .. .. .. ........ . 4
,"")
1.8 Employer's Quality Activities ..... .... ........................................... .... ...... .... ...... .... ...... ........ ...... ... 4

1.9 Quality Control. .. ... ........ .. ....... ....... ....... ..... .. ............... ... .......... ......... .. ...... .. ... ...... .... .... ..... ..... ... 4

1.10 Quality Organization .. ............. .. .................... .... ... ...... .. ... .. .. ... .... ... .. ... ... ....... ......... .. .... ............. 7

1.11 Quality Control-Manufacturing/Fabrication Facility ...... .. .. .. ........ .. ... .... ... .... .. .. .. .. ...... ........ .. ..... 7

1.12 Test at Construction Site .. ........ .... .. .... ...... .. ..... .. ...... .......... ...... .... ........... .......... .... ..... ............ .. 8

1.1 3 Right of Access .. .... .. ............. .. ............. .. .... ....... .... .......... .. .... .. .... .. ................ .. ............ .. .... .. .... 9

1.14 Pre-inspection Meeting ...... .. ...... ..................... .... .. ........ .... ...... .... .... ......... .. ...... ....... ...... .......... 9

1.15 Non-Conformance ..... .. .................. ... ............... .... ... .... .... ... ... .. ........ ....... .... ................... ..... .. .. 10

1.16 Concessions ..................... ..... .......... .... ................... .. ... .. .. ..... ........ .. .. .. ... .. ... ......... .. ......... ... .... 10

1.17 Third Party Testing .... .. .... ....... ........ ......... ... .... ....... ......... .... ......... ...... ... ... ....... ..... ... ..... ... ... .... 10

1.18 Job Status Report ........ .. ...... .. .......... .. .... ...... .. .... .. .. ........ .. .......... .. .......... ... .. ........ .... ..... .... .... . 11

1.19 Sub-ordered Material or Components ...... .. ........ ........................ ...... ....... .. .... ......... .......... ..... 11
)
1.20 Quality Records & Documentation .. .. ............... .. .... ................................. ........... ........ .. .. .. .. ... 12

Page 1 of 14
r--------

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

1. Quality Management Requirements

1.1 Purpose

The purpose of this document is to specify the minimum Contractor Quality Assurance ("QA")
and Quality Control ("QC") requirements.

The Contractor shall provide and operate throughout the Contract a quality system which
meets the requirements of ISO 9001" Quality Systems- Model Quality Assurance in Design/
Development, Production, Installation and Servicing" or a comparable nationally or
internationally recognized Standard, in accordance with detailed guidelines to be agreed with
Employer prior to Contract award and adhere to the Project quality system (check sheets,
procedures) required to be completed.

The Contractor, quality assurance activities shall include, but are not limited to those functions
defined in this document, and any activities that the Employer may direct to prove conformity
to the Contract, including but not limited to Project Specification(s) I Purchase Orders (PO) .

The Contractor and his suppliers are responsible to make themselves aware of and complying
with all of the Employer Requirements and all relevant codes and standards applicable to the
Works.

1.2 Definitions

The following definitions shall apply and have the meanings set out below:

CQP Control Quality Plan

ITP Inspection and Test Plan

IVB Independent Verification Body

Vendor/ Sub-Contractor Legal entity contracted to perform the work/provide goods

and services to Project.

Purchase Order (PO) The formal agreement between Contractor and Vendor
defining scope of supply.

) QMS Quality Management System

Surveillance Activity Activities carried out by Contractor and/or Employer.

Schedule Design/ Production I Fabrication/ Testing/ Installation

Schedule.

SDR Supplier Document Requirements

TBA To Be Approved

1.3 Quality Assurance

1.3.1 General

The Employer requires that the Contractor supplies quality products in accordance with the
Contract specifications to achieve the Contract Requirements and ensure all facilities are
operating in a safe and reliable manner with high availability.
 Pearl Petroleum Company Limited
FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference : CPDG-19-35-420

The Contractor shall operate a quality management system in conformance with the latest
ISO 9001 standard, which shall be further specified in the purchase order/ contract.

The direct responsibility for achievement of the quality of goods/ service as specified in the
purchase order, including performance inspection and testing, remains with the Contractor
irrespective of the fact that the surveillance activity may be carried out by Employer

1.4 Reference Standards

The basic requirements in relation to quality assurance and quality control are established in
the following references.

• ISO 9004: 2000 Quality Management Systems Requirements Guidelines for Process
Improvements.

• ISO 9001: 2008 Quality Management Systems Requirements Fundamentals and

vocabulary.

• PD ISO/TS: 2001 Petroleum, Petrochemical, and Natural Gas Industries- Sector-specific

Quality Management Systems- Requirements for product and service supply
organisations.

• ISO 10005 Quality Management Systems- Guidelines for Quality Plans.

• ISO 29001 Quality Management System for Petroleum, Petrochemical & Natural Gas
Industries

• EN10204 Types of Inspection documents

1.5 Contract Quality Plan

Contractor shall develop a Contract Quality Plan, specific to the Contract requirements, which
shall describe how the Contractor's corporate Quality system is to be applied to the project
with regard to QA/QC activities. The Contract Quality Plan shall include the methodology for
the control of the Works, and reference applicable procedures and documentation. The
Contractor shall submit the Contract Quality Plan for Employer approval within thirty (30) days
(j of the Effective Date of the Contract. Any revisions to the Quality Plan shall also be subject to
Employer approval.

The Contract Quality Plan shall include a specific Quality Management System ("QMS" ) and
process audits schedules pertaining to the Works that shall take into account the schedule
and cover QMS audits of subcontractors and vendors; where an ongoing Corporate QMS audit
schedule is in effect, the Contractor shall ensure that some of the planned audits are
performed on activities directly associated with the Contract.

1.6 Quality Plan Contents and Implementation

The Contract Quality Plan shall describe the sequence of activities in order to ensure that the
Works are performed, from a QA/QC perspective, in accordance with the requirements of
the Contract and any respective purchase orders . For each sequenced activity the Quality
Plan shall refer to the relevant procedure and/or instruction that may be additionally
required for the specific purchase order requirements.

Page 3 of 14

l ~
•.
~-----~-----------===-=======-=======.....,..,.

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

The Contract Quality Plan shall identify all technical, procedural and organisational interfaces
between the Employer and the Contractor. The Contract Quality Plan shall demonstrate how
interface management with Subcontractors is to be controlled and how Vendors' data and
documentation requirements are to be tracked and implemented. The Contract Quality Plan
shall include the interface between the Employer, Contractor, and Contractors' vendors and
Subcontractors. The Contract Quality Plan shall further include organisation charts for the
Contractor's proposed key management team personnel as applicable to all phases of the
Works, including but not limited to design, manufacturing, inspection and testing as per the
Contract requirements. The prime responsibilities of such personnel shall also be described
in bullet points showing authority, responsibility, duties and inter-relationships.

The Contract Quality Plan shall also include a project audit schedule. The Contractor shall
execute a programme of planned systematic audits that effectively monitor the Contractor's
performance during all project phases I activities, including sub-suppliers . The protocol for
auditing should be in accordance with IS019011 "Guidelines for Quality and/or
Environmental Management Auditing".

The Contractor shall provide, at least ten {10) working days advance notice to Employer of
any planned audits, so as to permit Employer attendance to the audit. Copies of all completed
audit reports together with any associated corrective action reports shall be issued to the
Employer for information within five (5) working days of the audit.

The Contract Quality Plan shall also include an index of all supporting procedures and plans,
including a provisional timescale for their submission.

1.7 Implementation of the Quality Plan

The Contractor shall be responsible for implementing and maintaining the Contract Quality
Plan, which may be subject to audit and/or inspection by the Employer or his representatives,
throughout the Contract duration.

1.8 Employer's Quality Activities

The Contract Quality Plan shall include the identification of Employer activities, including hold,
witness, review and surveillance activities, etc. These hold points and surveillance activities
may include the verification of the Contractor, or his Subcontractor as deemed necessary by
the Employer or his representative . The Employer activities may include but are not limited to
the following:

i) A detailed audit at any phase of the Contract quality program or manufacturing process,
on a periodic basis (as per audit schedule) or as deemed necessary by the Employer.

ii) The review, witnessing, and/or hold point of activities as per the approved ITP.

iii) The review of applicable documentation as per the SDR and ITP.

iv) Final Quality records and documentation reviews

1.9 Quality Control

1.9.1 Inspection & Test Plan

The Contractor shall develop an Inspection and Test Plan {ITP) which shall be submitted to the
Employer for review and approval within thirty {30) days of the Effective Date of the Contract.

Page 4 of 14
 ---------- - ==~-=~===------.,....

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference : CPDG-19-35-420

The ITP shall clearly identify sequential work activities such as design (as appropriate),
procurement, manufacture and testing of the goods. Each work activity shall reference the
quality characteristic which shall include the clearly stated inspection standard or code to be
verified . The work activity should also reference the relevant clause number of the controlling
procedure and indicate the acceptance criteria, with a signature box to verify that the quality
characteristic has been achieved . Deliverables (quality records) related to each activity shall
be identified.

1.9.2 Inspection Procedures

The inspection procedures shall provide for continuing quality control of materials,
equipment, fabrication and erection work from the time materials, equipment and
construction consumables arrive at the Site, until Taking-over. These procedures shall also
describe plans for: - Inspection, testing and the use of control means such as specific work
checklists, anomaly resolution procedures, reports (including non-conformance reports),
waiver/deviation procedures and status through approval logs, installation and test records,
etc., to confirm performance ofthe Works in accordance with the Contract, -Implementation
of a control system that shall provide for early identification of deficiencies in order to
implement appropriate corrective action. Procedures shall provide for control of work quality
& associated risks in all areas of construction activity including but not limited to material and
equipment preservation, welding, civil work, structural steel work, handling and lifting, piping,
compressors and drivers, furnaces, pressure vessels, heat exchangers, tank, rotating
machinery, electrical, instrumentation/control systems, painting, insulation, marine, buildings
and architecture, infrastructure, etc. as applicable.

1.9.3 Inspection records

Inspection reports shall be issued to the Employer within two (2) working days following the
end of inspection, or in advance copy by email in urgent cases. These reports shall indicate in
particular:

-Subcontract/vendor number

-Part of work inspected

-Nature of inspection and tests performed

-Acceptance I rejection status with reasons

-All information about progress, quality and quantity aspects.

-Instrument used and copy of calibration and/or certifications

-Technician certificates

Reports shall include as attachments all relevant documents, material certificates etc. duly
identified.

1.9.4 Identification of Surveillance Activity

The Contractor shall submit the ITP and Inspection procedures for Employer review and
approval. During the review cycle the required inspection notification surveillance by the
Employer shall be identified and returned to the vendor/supplier/subcontractor for
incorporation into the ITP as : Review point; Witness point; or Hold point as defined below.

• Review indicates that the documentation referred to in the ITP shall be reviewed and
endorsed by the Employer or his designated representative(s) and Contractor. Such

Page 5 of 14

18
~
 --=------·-- ..... ····-===-======~=====

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

review may be retrospectively but shall be completed before final release for
shipment.

• Witness point indicates that the Employer or his designated representatives shall be
notified of the tim ing of the inspection or test, with appropriate advance notice. The
inspection or test shall be performed as scheduled. If the Employer or designated
representatives is not present, then the Contractor may proceed to the next activity.

• Hold point identifies that a hold shall be applied to the activity and that the inspection
or test shall not be carried out unless the Employer or his designated representative(s)
are in attendance. This requirement can only be waived by the Employer in writing.

The Employer retains the right, in his sole discretion, to modify these agreed surveillance
points taking into account the Contractor's actual quality performance.

1.9.5 Coordination & Correspondence

Formal notification shall be by letter followed by an advance email notification with copy of
the issued letter.

All correspondence related to inspection and all inspection notifications shall be addressed as
follows:

a) "Nominated Third Party Inspection Agencies (TPIA)" designated by Employer, Name and
location of nominated Inspection Agency will be provided separately.

b) Copy to Employer inspection/Expediting Representative: To be advised later

1.9.6 Employer Approvals

The Contractor shall obtain necessary Employer approvals, in a timely manner including:

• Technical approval by Employer of documentation as required (and associated SDR) in

advance of any related quality control activity

• Employer sign off as competed for each activity identified as requiring Hold or Witness
point surveillance on the Inspection and Test Plan at the time of activity

(Exception occurs when waived by Employer; this will be noted).

• Obtain a Employer Inspection Release Note prior to despatch of the goods

• Employer Review of documentation identified to be reviewed at Vendor end or premises

(and associated SDR)

• Release of all punch list items and non-conformance reports

1.9.7 Competency

The Contractor is responsible for ensuring competent personnel are employed and verifying
that this is supported by relevant qualifications. Any specific requirements identified in the
purchase order or related specifications shall be addressed. Employer reserves the right to
test the discipline knowledge of personnel in an oral or written examination.

1.9.8 Miscellaneous

Progressive inspection, not identified as observe/hold points by Employer, may be carried out
at various stages in production or manufacturing, in order to monitor compliance with defined
requirements and to observe that the right fabrication procedures are applied and adhered
to.

Page 6 of 14
 Pearl Petroleum Company Limited
FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

The completed equipment, or packaged item, may also be inspected prior to painting and
preparation for shipment.

Mill test report I certificates and /or code forms, required by the order or pertaining to
inspection and test plan activities, must be available for the inspector at the time of final
inspection.

Before commencing any repair, which may affect equipment integrity or operation; the
Contractor shall issue to the Employer a repair procedure and obtain Employer approval which
shall form part of SDR.

Materials and equipment that are subject to inspection and are shipped without Employer
inspection will be rejected .

1.9.9 Waiver

Written notice will be given by Employer whenever Employer will decide to waive inspection
Hold points, partially or totally, for material otherwise subject to inspection. Test reports and
( ) certificates relevant to test not witnessed must in any case be prepared by Contractor's quality
control organisation for review.

1.10 Quality Organization

1.10.1 Contractor Quality personnel

Contractor QA/QC Manager shall be regarded as " Key Personnel" for the execution of the
Contract and shall be subject to Employer approval.

1.10.2 Contractor Quality Organisation

The respective roles of Project Quality Manager and Corporate Quality Manager and their
interfaces shall be described inside the Contract Quality Plan in terms of responsibility and
authority within the Contract.

The Quality organization implemented and maintained for performing the Works shall be also
described at each phase ofthe Contract inside the Contract Quality Plan.

1.10.3 Quality Meetings and Reporting

In addition to a chapter concerning Quality Management in periodic Contract reports,

) Contractor shall address this subject in periodic work progress meetings.

Contractor shall also organize specific meetings to inform on, and discuss with the Employer,
progress and reconciliation of any Quality Management problem areas. At the closure of the
Contract, the Employer shall organize a debriefing meeting with Contractor on his quality
performance throughout the Contract.

1.11 Quality Control-Manufacturing/Fabrication Facility

1.11.1 General

All sub-assemblies shall be tested, preferably at the place of manufacture I fabrication, using
the associated electrical, lubrication, hydraulic and fluid services where practicable.

Testing of materials and sub-assemblies shall be successfully completed prior to painting or

other necessary coating except that polished parts shall be adequately protected at all times.

All records of test, including charts, diagrams, films and other related records, when
appropriate shall be suitably identified and made available for inspection by the Employer.
 ·-~
-=,..._,._._.._- --..---~--==============

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

1.11 . 2 Welding Procedures & others

Qualified personnel shall carry out all welding and testing of welds in accordance with the
Contract specifications, approved welding procedures and international standards and codes.

The Contractor must be aware of and fully comply with the National and International welding
policies and standards and any codes applicable to the Contract Works.

All related destructive and non-destructive tests and activities are to be carried out by
qualified personnel in accordance with the approved procedures.

Testing of welds shall include, but not be limited to, those in all areas of high working stress.
The Contractor shall show both on the drawings and in his Contract Quality Plan, the methods
of testing which he proposes to adopt in each case, both non-destructive and by means of test
specimens.

The Contractor shall carry out the tests approved and such additional tests as the Employer
l ) may require at any time to prove conformity with the specifications, if deemed necessary.

1 . 11 .3 Final Inspection Prior Shipment

The goods ready for delivery shall be subject to a visual final inspection prior to packing. In
particular, objects to be put in sealed bags, or cases and crates shall pass such inspections.
The Contractor shall propose the necessary procedures for final inspections, in accordance
with the procedures prescribed in the approved Contract Quality Plan .

All cargo shall pass the packing inspection by the Contractor in accordance with agreed
standards for packaging and shipping. Following inspection of the cargo for shipment, a
"Release Certificate" shall be issued by the Contractor. Final inspection and shipment is to be
carried out as per the purchase order details.

1.12 Test at Construction Site

1.12 .1 Test(s) will be carried out by the Contractor and may be witnessed by the Employer during
construction to ensure that the fabrication/ installation have been constructed to the
specified standards.

1.12. 2 The Employer will advise the Contractor if any further tests are required to meet, or
demonstrate compliance to, the Contract requirements .
()
1.12 .3 The Contractor shall be responsible for supervising and inspecting the progress of the work
and checking its accuracy to any extent that may be required .

1.12.4 Site testing shall be carried out under the Contractor's supervision, in accordance with the
agreed Quality Control procedure and applicable standards.

1.12.5 The Contractor shall set up and supervise quality control procedures, prior to construction
specifying those tests on material, plant and equipment necessary to confirm that the
installation, assembly and erection have been satisfactorily completed.

1.12.6 Individual quality control points, to ensure design continuity to Site, shall be incorporated in
the agreed Contract Quality Plan.

1.12.7 Reporting of site quality activities shall be mutually agreed between the Contractor and the
Employer. It shall include special reports on rejections, defects or damage. All test and
inspection reports shall be prepared by the Vendor/ Subcontractor. The Contractor shall also
maintain a complete set of records and reports at the Site.
 ....... ~-

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KMSOO GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

1.12.8 The Employer shall have unrestricted access to all site quality control records maintained by
the Contractor.·

1.13 Right of Access

1.13.1 General

During the performance of the Works, the Employer reserves the right of access for the
purpose of effecting quality and /or safety audits as well as performing routine surveillance
activity in accordance with the approved Contract Quality Plan, and/or Inspection and Test
Plan. This access right shall also encompass any manufacturing facilities and sub-suppliers.

All necessary assistance shall be provided to the Employer's personnel including access to :
measuring equipment, technical/engineering documentation reflecting Employer approvals;
specifications including referenced National/ International standards and codes; and record
documents such as inspection and test results, traceability documents etc.

() During any access periods the Contractor shall safeguard the Health and Safety of Employer
personnel by ensuring hazards are properly identified and preventive measures taken. A
safety induction shall be effected as relevant and personnel accompanied at all times.

1.13 . 2 Safety

For the sole purpose of safeguarding the Health and Safety of Employer Personnel during the
performance of their activities at Contractor premises (e.g. Inspection, visits, expediting
checks etc.) Contractor shall provide to visiting Employer personnel, possibly in writing, the
following information:

a) Any possible risk for health and safety incurred when operating at the Contractor
premises

b) Prevention and protection measures and individual protection means or equipment that
Contractor has foreseen.

c) Procedure relevant to fire protection and firefighting, evacuation of personnel in case of

serious and immediate danger, rescue, first aid and procedures for the management of
emergency.

Should the situation be modified in such a way as to change the possible risk for Employer or
representatives, it will be Contractor's duty to update the information formerly given with the
new risk and the relevant prevention and protection measures.

The Contractor is not relieved, by complying with the above request, from the due diligence
in the surveillance on Employer personnel presence.

Employer personnel will be obliged to strictly comply with the Contractor's safety rules, except
when these rules are in conflict with the Law or Employer safety standards.

1.14 Pre - inspection Meeting

A pre-inspection meeting shall be arranged for all complex/critical equipment to review the
requirements of the purchase order, this document and the Contractor's data and
documentation requirements specification, to ensure a clear and common understanding of
the requirements and how the interfaces between the parties are to be managed .
 Pearl Petroleum Company Limited
FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-1 9-35-420

1.15 Non-Conformance

Employer inspection supervisors, as well as their designated TPIAs, shall have the right to
reflect any material or equipment found to be defective, or showing poor quality or
workmanship, or that is not in conformance with purchase order requirements. In such cases
TPIAs will issue a Non-Conformance Report to the Contractor or his Subcontractor.

Upon receipt of the non-conformance report, the Contractor shall either take immediate action
to replace the defective part or component or advise Employer in writing on proposed
corrective actions to be taken, or issue a concession request seeking Employer acceptance of a
deviation.

Corrective actions implying repair activities shall be covered by a procedure that must be sent
to the Employer for prior approval. No repairs may be started prior to the receipt of Employer's
approval on the repair procedure .

When a concession has been approved, or corrections have been completed, and the
( \
confirmation of full compliance with the Contract requirements have been verified, the
Contractor shall obtain the Employer's acknowledgement of the clearance or resolution of the
pending non-conformance report(s) .

No equipment or material will be accepted until all pending non-conformance reports are
closed .

Any non-conformance shall be analysed by the Contractor to determine the cause, potential
extent of the problem and identify any deficiencies.

1.16 Concessions

Normally non-conforming products will not be accepted by the Employer. However, in the
event the Contractor considers there are sound reasons for the Employer to accept a non-
conforming product, a written request to grant a concession to the Contract requirement may
be issued, on the basis of an individual occurrence only, utilizing an agreed "Concession
Procedure" (to be developed by the Contractor and approved by the Employer) with the
associated registration form termed "Concession request" . Concession requests shall clearly
state any impact on quality, cost, and time associated with accepting the deviation.
Concession requests shall be signed by the Contractor Quality Representative before
\_ ) submission to the Employer; regardless of the nature of the issue, the signed originals shall be
stored as "Quality Records".

In the event the Employer accepts a non-conforming product, one copy of the Employer
signed concession request shall be included in the file of the non-conforming item and a
second copy shall be filed in the Completion Dossier to clearly identify that the product is in
non-conforming status but accepted.

No non-conforming product may be incorporated into the Works without issuance of such a
written consent from the Employer. In the event of any doubt, any request to deviate from
the specified Contract requirements shall be manage in accordance with the Concession
Procedure.

1.17 Third Party Testing

All testing and chemical analysis required by the specifications and drawings, whether
conducted by the Contractor, independent laboratories or other testing agencies, including
supply of relevant test reports in the required number of copies, shall be at Contractor's

Page 10 of 14
 ···-·--~-··-::-: ······ =·==--= =========

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

cost.

This requirement is also applicable in all the cases, if any, for which "Positive Material
Identification" (PM I) tests are required.

The Contractor is advised that whenever material cannot be easily identified, and reasonable
doubts exist as to the traceability to certificates, the Employer will require additional tests to
be carried out at Contractor's cost. The type of test will be defined by Employer as
appropriate.

1.18 Job Status Report

The Contractor shall issue a monthly Job Status Report for his supplies/ services.

Depending on the progress of the Works, the Employer may modify the frequency of issuance.

Even if the status of the various activities is shown in detail in the Contractor standard reports,
each specific topic shall be covered with a narrative highlighting the main achievements and
problems (if any), and indicating the actual versus planned overall progress, the areas of
concern and the relevant action required . The concept is that the narrative shall summarise
the analysis done by the Contractor Project Manager on all aspects of the Works.

The job status report shall include the update scheduled to reflect progress including an
electronic file.

1.19 Sub-ordered Material or Components

The Contractor shall ensure that Quality requirements specified in the Contract are provided
to all suppliers of goods and services. The originator of the sub-orders shall clearly state within
the sub-orders the extent of inspection surveillance which will actually be undertaken by the
originator or its representative at the source of the supply, and also indicate that inspections
at the source of supply can be carried out by the Employer.

Material or services provided by the sub-suppliers must be controlled and verified by the
Contractor in order to achieve quality requirements with regard to material, assembly,
function and fitness for purpose. Contractor must verify that material used in fabrication is
new and complies with detailed drawings, and that visual inspections of material have been
made to confirm that material identification has been properly maintained. Documentation
of verification and inspections must be available for the Employer review for the duration of
the Contract.

Inspection may also be performed at the source of supply of equipment and/or materials from
Subcontractors or vendors.

The Employer will establish which material among the ones listed, will be inspected at the
source of supply.

Each sub-order shall be identified with the following references and information

a) Contractor name & name of the Project

b) Main PO number or Vendors Job number

c) Full address of the point of inspection

d) Contact person, phone and fa x number

Page 11 of 14
 ==~- =====================================~=-=====

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

e) Contractor's Job number

Sub-orders (and sub-sub orders, if any) shall be written in the English language, shall clearly
describe the materials or equipment purchased and the applicable technical requirements,
and shall include all the applicable inspection and testing requirements.

1.20 Quality Records & Documentation

1.20.1 General

The Contractor shall prepare and maintain continuously and update throughout the Contract
duration the Quality Records Books, which shall consist of a compilation of quality assurance/
quality control documentation representative of the design material, manufacturer,
fabrication, erection, test and commissioning history of the installation design equipment
ordered and materials installed.

( ) The purpose of the Quality Record Book is to ensure that all control documents originating at
the engineering, procurement, fabrication, erection and other stages from multiple sources
(Contractor and their respective subcontractors and vendors and sub vendors) is easily
retrievable in order to provide evidence that equipment and materials used comply with the
Contract requirements at each stage of the Works.

In view of the requirement for full traceability of materials and dimensional control, the
Contractor shall include all drawings marked up with welding identification and material
certificate numbers.

The documents for the quality dossier shall be kept in specific quality files as soon as they are
issued and shall remain easily retrievable and available for consultation at all times during the
course of the Works.

Contractor shall organize the Quality Record Book by system and equipment category. There
shall be several Quality Record Books; each may consist of several volumes.

The final Quality Record Book shall be issued together with the other documents to be
included in the Final Documentation.

Contractor shall submit the details of the format and contents of the Quality Record Book for
Review.

1.20.2 Contents

The Quality Record Book shall include items such as but not limited to the following:

• Approved Contract Quality Plan

• Approved Quality Control Plan

• Approved drawings and As-Built drawings

• Signed Vendors I Subcontractors, quality plan(s) & Quality Control Plan(s)

• Technical Certificates of compliance as well as technical non-conformance certificates

(for the record if applicable)

• Fully traceable material mill certificates

• Other material/ material test certificates

Page 12 of 14
"""-~====----------------_.,-----
,
- ~~~::o;
- .:;o,
__ , __, __, __""
__ ,__ """"=========== ====:::=.='-=======---=-------------c--,=
:p;r= - - - - - - - --- -..._..- = r

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

• Weld procedures and qualification

• Weld repair procedures

• Welders qualifications

• NDT procedures

• Material/Welding and NDT location drawings (welding and NDT map)

• NDT report for examination of welds including X-ray films, UT test sheets

• NDT, Testing and Inspection Equipment certificates

• Other Non-destructive testing certificates

• Visual examination certificates

• Dimensional check reports

F
\ • Marking/ Mark-up drawings and associated traceability

• Contractor's Inspection Release notes (where appropriate)

• Heat treatment procedures

• Heat treatment charts

• Vessel nameplate details

• Weight and centre of gravity details

• Pressure test certificates and charts

• Paint Specification and Paint/Coating Inspection Reports

• Vibration reports

• Alignment reports

• Type Test and type Approval Certificates (where appropriate)

• Functional tests, either mechanical or electrical as required by national standard or

Employer Specification, whether witnessed or not (if applicable)
\ )
• Overall Performance Test Certificate

• Crane SWL certificate

• Electrical continuity/ resistance reports

• Instrument 1/0 reports

• Calibration certificates

• General electrical testing reports and certificates

• Full details of substances "Hazardous to health"

• Weight data sheets and certificates

• Purchase Inspection Release certificate

• Anomaly(s) and Repair Report(s)

Page 13 of 14
i=~-~=====""""""===-======-----=-:<~""""""""'~""='"--·=-- ====······ =---=-=""""""...,..= = = = = = - - = = = ; -;;

Pearl Petroleum Company Limited

FIRST 250MMSCFD TRAIN OF KM500 GAS TREATMENT PLANT
Contract Reference: CPDG-19-35-420

• All Survey Reports

• Subcontractor Certificates of Conformity

• Approved Subcontractor Deviation Request(s)

• Code Compliance certificate e.g. ASME/BS Form

• Concession Request Register

• Approved Concession Requests

• Certified Design Documentation (by certifying Authority)

• Copies of all Subcontractor correspondence related to quality aspects .

• Standard V.D.L Vendor Data list Checklists

• Pre-commissioning and commissioning check lists

f • Interim/ Provisional I Final acceptance certificates .

• Rotor Run out Reports

• Residual Unbalance Reports

• FAT (Factory Acceptance/Shop Test) Reports

1.20.3 Components Requiring

Where required by the applicable policies, standards, codes and Employer requirements
Certificates of Conformity/ Test Reports must be supplied to the Employer when requested
without delay (mill test reports, welding procedures, welders' qualifications, pressure test
reports, dimensional checks, painting reports, survey's, alignment records, IVB reports, etc.)

Page 14 of 14