KLM Technology PROGRESS MEASUREMENT Page 1 of 23 Group PROCEDURE Rev: 01 Project Engineering Standard (PROJECT STANDARDS AND SPECIFICATIONS) Feb 2012 TABLE OF CONTENTS PURPOSE PROGRESS PLANNING OVERALL PROGRESS BASELINE PROGRESS MEASUREMENT BASELINE Engineering Progress Measurement Procurement Progress Measurement Construction Progress Measurement PROGRESS MONITORING AND STATUS EVALUATION Engineering Progress Procurement Progress Construction Progress ATTACHMENTS Attachment 1 Engineering Weight Value List Attachment 2 Procurement Weight Value List Attachment 3 Construction Weight Value List Attachment 4 Overall Progress Table Attachment 5 Project Summary Progress Table Attachment 6 Engineering progress Sheet (from EDMS) Attachment 7 Procurement progress Sheet Attachment 8 Weighted Factors for Work Step (for Construction Progress) 12 12 13 14 15 16 7 18 19Page 2 of 23 KLM Technology | PROGRESS MEASUREMENT Group PROCEDURE Rev of Project Engineering Standard (PROJECT STANDARDS AND | Feb 2012 SPECIFICATIONS) PURPOSE The purpose of this procedure is to establish a method for the progress measurement of engineering, procurement and construction for the PROJECT. This procedure defines the physical progress measurement and progress calculation method for the PROJECT. PROGRESS PLANNING In parallel with schedule planning, CONTRACTOR will carry out progress planning in accordance with the project schedules. The following studies will be conducted. 1, Project Management Progress Plan Project Management Progress Plan will be prepared by project mobilization milestones and by proportion of overall project physical progress achieved. 2. Engineering Progress Plan Engineering Progress Plan will be prepared by engineering milestones and by engineering deliverables for each category. Weight point of engineering deliverables for each category will be based on the estimated man-hours by CONTRACTOR. This engineering progress plan will be prepared based on the Project Master Schedule of the CONTRACT and on statistical analysis of CONTRACTOR's historical data obtained from past projects. 3. Procurement Progress Plan Procurement Progress Plan will be covered equipment and bulk materials to be purchased by CONTRACTOR. This plan will be prepared respectively for the milestones of purchase commitment, receipt of major raw materials to vendor shops, FOB and/or ex-works and arrival at the Site. Weight percentages for categories will be based on the costs defined in the CONTRACT. This procurement progress plan will be prepared based on the Project Master Schedule of the CONTRACT and on statistical analysis of CONTRACTOR's historical data obtained from past projects.Page 3 of 23 KLM Technology | PROGRESS MEASUREMENT Group PROCEDURE Rev of Project Engineering Standard (PROJECT STANDARDS AND | Feb 2012 SPECIFICATIONS) 4, Construction Progress Plan Construction Progress Plan will be prepared construction milestones covering mobilization, demobilization, management, temporary facilities and by construction including pre-commissioning progress for permanent facilities. For construction including pre-commissioning progress, the representative Bills of Quantities (B/Q) will be allocated to work packages Relative weight value of each discipline will be based on the Contract Price Breakdown in Annex 1, 2 of CONTRACT. Commissioning and Start-up progress will be separately prepared based on the cost and man-hours defined in the AGREEMENT of the CONTRACT. These plans will be prepared based on the Project Master Schedule of the CONTRACT and on statistical analysis of CONTRACTOR's historical data obtained from past projects. 5. Overall Progress Plan The Overall progress plan will be prepared by integrating the progress plans generated in above (1), (2), (3) and (4). The weight percentages for engineering, procurement, construction including pre-commissioning will be based on the Provisional Contract Price defined in the CONTRACT and AGREEMENT. OVERALL PROGRESS BASELINE Contractor will be prepared the progress reports based on the progress measurement system described Work Breakdown Structure. Overall progress will be composed sum of the value of each phase with following weighted percentage PHASE WEIGHTED % Engineering 6.88% Procurement 59.97% Construction 38.15% OVERALL TOTAL 10.00%KLM Technology Group Project Engineering Standard PROGRESS MEASUREMENT PROCEDURE (PROJECT STANDARDS AND SPECIFICATIONS) Page 4 of 23 Rev: 01 Feb 2012 PROGRESS MEASUREMENT BASELINE Engineering Progress Measurement Engineering Progress will be measured integrating three groups of deliverables base progress, and weight percentages for each group are follows: PORTION WEIGHTED % Project Management 18.38% Engineering Design 83.82% ENGINEERING TOTAL 100.00% A. Project Management Progress The Project Management Progress will be measured as follows: Engineering Progress Total General Management Progress Project Management progress will be calculated by proportion of Overall Engineering and procurement physical progress achieved respectively.KLM Technology Group Project Engineering Standard PROGRESS MEASUREMENT PROCEDURE (PROJECT STANDARDS AND SPECIFICATIONS) Page 5 of 23 Rev 01 Feb 2012 B. Engineering Design Progress 1. Discipline Breakdown with Weighted Percentage. The weight value for each discipline is apportioned by a ratio of the engineering man-hours assigned to each discipline as follows: DISCIPLINE WEIGHTED % Piping Electrical Instrument Civil Basic Engineering Process (including HSE) Rotating Equipment Static Equipment Structure & Building Fire Fighting & HVAC Environmental ENGINEERING DESIGN TOTAL 100.0% 2, Engineering Deliverables Progress measurement for engineering works shall be conducted on a monthly basis. The overall progress will be calculated by summing up the achieved Physical progress of each discipline and the physical progress for each discipline will be measured by engineering deliverables. Each discipline is divided into several engineering deliverable and weighted value of each engineering deliverables assigned to each discipline is a ration of the man-hours required for each deliverable.KLM Technology Group Project Engineering Standard Page 6 of 23 PROGRESS MEASUREMENT PROCEDURE Rev: 01 (PROJECT STANDARDS AND | Feb 2012 SPECIFICATIONS) The basis of percentage for engineering design and weighted value of each deliverable by discipline are shown in Attachment 1. 3, Completion Milestone Percentage A milestone completion method will be used for monitoring individual document completion percentage. The following milestones and respective percentage figures for completion of each document will be monitored on a monthly basis. © For Approval/Review Start Drafting Check Issue Approval 1 Total 100% * For information Start 20% Issue 80% Total 100% * Paid Start 10% Drafting 10% Check 10% Issue for Review 30% Issue for Design 30% Issue for Construction 10% Total 100%