Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure

Sohar Refinery Improvement Project S-000-5131-312

Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

TABLE OF CONTENTS

1. PURPOSE ....................................................................................................................................... 3

2. SCOPE ............................................................................................................................................. 3

3. DEFINITION OF TERMS ............................................................................................................. 3

4. RESPONSIBILITY ......................................................................................................................... 3

5. BASIS OF MEASUREMENT OF PROGRESS ...................................................................... 3

6. REFERENCES ............................................................................................................................... 3

7. PROGRESS EVALUATION BASIS .......................................................................................... 4

8. PROGRESS MEASUREMENT .................................................................................................. 5

8.1 Engineering Progress............................................................................................................................... 6

8.2 Procurement Progress ............................................................................................................................. 7

8.3 Construction Progress ............................................................................................................................. 8

8.4 Pre-commissioning Progress ............................................................................................................... 15

8.5 Commissioning Progress ...................................................................................................................... 15

9. PROGRESS PLAN & “S’ CURVES ....................................................................................... 15

9.1 Progress Plan: ......................................................................................................................................... 15

9.2 ‘S’ Curves: ................................................................................................................................................ 15

10. PROGRESS MONITORING AND STATUS EVALUATION ......................................... 16

10.1 Engineering Progress............................................................................................................................. 16

10.2 Procurement Progress ........................................................................................................................... 16

10.3 Construction Progress ........................................................................................................................... 17

11. CUT-OFF DATE OF PROGRESS MEASUREMENT .................................................... 17

2 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

1. PURPOSE

The purpose of this procedure is to provide a consistent method for measuring and reporting
the physical progress and thereby providing a basis for checking and analyzing progress and
forecasting.
The progress measurement includes Engineering, Procurement and Construction (including
Pre-commissioning, Commissioning, Start-up) for Sohar Refinery Improvement Project, ORPC,
Oman.

2. SCOPE

The scope of this procedure covers progress measurement for the purpose of progress
reporting and also to get the progress which is consistent with the weightings assigned in
Appendix S, Attachment 1 – Payment Schedule Volume 1, Part 5, Attachment 1-5-3 Payment
Schedule Table 2.2 for Engineering and Table-4.1 for Construction and Clause 1.1 weightings
of Appendix-B for Procurement Equipment and Bulk.

3. DEFINITION OF TERMS

ORPC – Owner (Oman Refineries and Petrochemicals Company, Sohar, Oman)

DPJV – Contractor (Daelim- Petrofac SRIP Joint Venture)
SRIP – Sohar Refinery Improvement Project

4. RESPONSIBILITY

The Project Controls Manager of DPJV is responsible for the progress calculation, assessing
and reporting of all works associated with the Contract.

5. BASIS OF MEASUREMENT OF PROGRESS

DPJV will develop the Progress Measurement System to cover the complete scope of work
based Contract requirement of SRIP and DPJV’s own procedures.

6. REFERENCES

S-000-5110-003 Rev1 Vol. 6.1 Part-2 Job Instructions Section 2 Project Controls
Appendix-S Attachment 1 – Payment Schedule Volume 1 and Attachment-3 – Breakdown of
Lump Sum Price - attachment of SRIP Contract
1.0 Payment Terms of Appendix-B Payment Terms & Payment Schedule - attachment of
SRIP Contract

3 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

7. PROGRESS EVALUATION BASIS

The Project Detailed Schedule (Level 3) under the structured Work Breakdown Structure
forms the basis for progress measurement system. Activities corresponding to Engineering,
Procurement and Construction (including Pre-commissioning) (hereinafter, referred to as
Phases) having physical work volume in Level 3 Schedule, will be measured for the progress.
As one of the component in invoicing for the project is related to % progress, the invoicing
requirement of weightings has been built in the physical progress measurement.
Each Phase is monitored as a discrete package and the relative percentage weighting is
allotted to each phase based on the relative cost of the phases. The overall weightings
established will remain fixed.
Any change in scope by way of Variation order of addition will be measured and monitored
separately. Any deletion in scope will be jointly agreed between DPJV and ORPC. The
merging of Original scope and Variation scope progress will be done at the Project Phase
Level or Project Level without effecting Progress Measurement.
As the engineering progresses and if there are changes in estimated work scope of a
magnitude which calls for change in relative weightings at an activity level (within already
defined weightings at higher level), it will be managed by DPJV based on revised contents of
the group of activities. Any such change will be informed to ORPC by DPJV. The methodology
of this change will be mutually agreed between ORPC and DPJV.
The basis of weightings for phases is as below:
Table-1

Weight
Project Phase Value in USD % % Weightings
points

Engineering 315,000,000 15.0 15 1,500,000

Procurement 1,174,000,000 55.9 55 5,500,000
Construction 611,000,000 29.1 30 3,000,000
Total 2,100,000,000 100.0 100 10,000,000

The 10 million weight points is considered for the whole project (100%) to assign weight
points to measurable Level 3 activities and for further breakdown to Level 4
activities/deliverables.
The progress will be measured under the following heads for the above defined phases:
- Engineering (E)
4 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

- Procurement (P)
- Construction (Composite) (CC)
o Construction & Pre commissioning (C&P)
o Commissioning including start-up (Com) (excluded for % Progress)

The weightings for Construction is broken down as below:

Project Phase % Weightings Weight points

Construction (Composite) (CC) 30 3,000,000

 Construction & Pre commissioning
30 3,000,000
(C&P)
o Construction 27 2,700,000
o Pre commissioning 3 300,000

 Commissioning including start-up - -

As a principle, weightings assigned to each activity is based on internal estimates of man-

hours for Engineering, Construction activities and estimated cost for Procurement activities as
explained below:

% Weighting for an Engineering activity = Estimated man-hours for an activity X 100

Overall man-hours for Engineering

% Weighting for a Procurement activity = Estimated cost for an activity X 100

Overall cost for Procurement

% Weighting for a Construction activity = Estimated man-hours for an activity X 100

Overall man-hours for Construction

The above philosophy is generally applied to generate the progress measurement system
listing the activities under respective phases in line with Level 3 schedule. However, DPJV is
using ORPC assigned weightings at discipline level and accordingly above illustrated
calculation will be followed within the assigned weightings.

8. PROGRESS MEASUREMENT

The relative weightings of the phases will be utilized to determine the Overall Progress
(physical) of the Project.
The further weighting break-down of phases E, P, C&P is detailed as below:

5 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

8.1 Engineering Progress

Engineering progress will be measured based on the established weightings per deliverable
and gateways for the progress for a deliverable. Discipline level weightings are described in
below table in accordance with the Table 2.2, ITT Attachment 1-5-3 given below:

S. No. Description Description Breakdown %

Process ISBL 10
1 Process
Process OSBL + General 5
Mechanical Static + Mechanical Static +
2 10
Package Package

3 Mechanical Rotating Mechanical Rotating 5

4 Piping Piping 15

5 Civil Civil 10

6 Structural Structural 10

7 Electrical Electrical 10

8 Instrumentation Instrumentation 20

9 HSE HSE 5

Total 100

The deliverable based work progress will be measured by using the Master Deliverable List
(Document Control Index) along with non-deliverables. DPJV will establish engineering
deliverables and non-deliverables for each discipline. The weighting of each within discipline
will be apportioned according to the estimated man-hours to complete the work.
Deliverables/non-deliverables classified under the Engineering Work Packages will fix the
weightings of work package. The L-3 activity weightings will be submitted for approval of
ORPC as a part of the schedule. Any addition or deletion in the work package will not change
the weightings of work package. However, any major changes will be reviewed with ORPC.
The progress of each deliverable will be calculated by progress gateways of a deliverable as
detailed below:
The following progress gateways and respective percentage figures for completion of each
deliverable will be monitored on a monthly basis:
6 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

Increment % Cum % Fixed/Progressive

1. Class A (For Approval)
1) Commence Drafting 20 20 Fixed
2) Issued for Approval 50 70 Progressive
3) Issued for Design/Construction 30 100 Fixed
Design/ConstructionDesign/Constructi
2. Class R (For Review)
1) Commence Drafting 20 20 Fixed
2) Issued for Approval 50 70 Progressive
3) Issued for Design/Construction 30 100 Fixed
3. Class I (For Information)

1) Commence Drafting 20 20 Fixed

Issued for Information/ Issued for

2) 100 100 Progressive
Construction

In case, the subsequent stage of deliverable issue is not required, the current stage will be
deemed achieved 100%. Non-deliverable progress will be on pro-rata basis determined by
progress estimates by Engineering.
8.2 Procurement Progress

Procurement progress will be measured based on the established weightings per each
requisition and gateways for the progress. Each equipment and package requisition will be
further broken down to feasible equipment tag level. Wherever tag level break-down of
weighting not feasible like packages/instrument tags/electrical tags, it will be in lots which will
be defined later. Equipment will cover all equipment tags, Instruments, electrical equipment. In
case of bulk materials like piping materials, cables, manual valves, etc., requisition level
weightings will be broken down to MTO lots based on MTO philosophy. The content of lots will
be quantum of materials in numbers, running length or MT as the case irrespective of material,
size thickness etc.

 Piping materials/Electrical/Instrumentation/Telecom cables – MTO-1 (70%); MTO-2 (20%)

and MTO-3 (10%)

 Other Electrical/Instrumentation/Telecom Bulk – MTO-1 (80%) and MTO-2 (20%)

 Manual Valves – MTO-1 (80%), MTO-2 (15%) and MTO-3 (5%)

DPJV will establish weightings for the above breakdown based on estimated cost breakdown
between Equipment and bulk or 50-50% break-up. L-3 activity weightings will be submitted for
approval of ORPC as a part of the schedule.

7 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

The following progress gateways with respective percentage for completion of each
equipment/package/bulk items as described above will be monitored on a monthly basis:
1) Equipment

S. No. Equipment Increment % Cum % Fixed/Progressive

1 Ordering 10 10 Progressive

2 Vendor Document Review 10 20 Progressive

3 Sub-ordering of major materials 10 30 Progressive

3 Inspection Release Note (IRN) 50 80 Progressive

4 Ex-Works 10 90 Fixed
Delivered at assembly vendor
5 10 100 Fixed
shop/Site

2) Bulk Materials

S. No. Bulks Increment % Cum % Fixed/Progressive

1 Ordering 10 10 Progressive
2 Inspection Release Note (IRN) 70 80 Progressive
3 Ex-Works 10 90 Fixed
4 Delivered at fabrication shop/Site 10 100 Fixed

The Equipment and Bulks Ordering progress will be measured with the following progress
gateways for each inquiry:

S. No. Description Increment % Cum % Fixed/Progressive

1 Issue Inquiry Requisition 20 20 Fixed
2 Receive Bids 10 30 Fixed
3 TBE Complete 50 80 Fixed
4 Place order 20 100 Fixed

8.3 Construction Progress

Construction Progress will be measured based on the established weightings for construction
activities and gateways for the progress.
The weightings of each discipline will be based on the Table 4.1, ITT Attachment 1-5-3 of the
SRIP Contract.

8 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

S. No. Description Break-down %

1 Civil Works 25
2 Structural Works 12
3 Mechanical Works 10
4 Piping Works 35
5 Instrumentation Works 10
6 Electrical Works 8
Total 100

1) Weighting for each Construction Work Packages

Disciplines of construction at Sr no 1, 4, 5 and 6 shall be further broken down into the work
packages (Table-4.2, ITT Attachment 1-5-3):

S. No. Description Break-down %

1 Civil
1.1 Road and Paving 10
1.2 Sewer and Drainage 5
1.3 Steel Structures 10
1.4 Trenches 5
1.5 Foundations 15
1.6 Pipe Sleepers 5
1.7 Concrete Structures 20
1.8 Buildings 20
1.9 Miscellaneous 10
2 Piping Works
AG Piping on Rack/ AG Piping on
2.1/2.2/2.3 Sleepers/ AG Piping around 50
Equipment
2.4 UG ISBL 15
2.5 UG OSBL + General 15
2.6 Insulation 10
2.7 Painting 10
S. No. Description Break-down %
3 Electrical Works
3.1 Substation Equipment Installation 20

3.2 Earthing & Lighting Layout 10

3.3 Power Cabling 30
3.4 Electrical Consumer Installation 20
3.5 Lighting 10
9 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

S. No. Description Break-down %

3.6 Cathodic Protection 5
3.7 Heat Tracing 5
4 Instrumentation Works
4.1 Control & ESD Systems Installation 10
4.2 Field Instrument Installation
All Field instruments/cabling/
60
Analysers
4.3 Field Bus installed and tested 20
4.4 Fire Alarm System 5
4.5 Communication System 5

Weighting of each work packages will be further broken down to each construction activity
(Level-3) based on the estimated man-hour for the related commodity based on the
weightings. The construction activities at Level-3 will be further broken down to Level-4
activities and weightings of the Level-4 activities (children activities) will be within weightings
of Level-3 (Mother activity). Level-4 activities will have progress gateways as defined below.

2) Measuring Gateways

Gateways for progress will be used for monitoring each construction activity’s completion
percentages except miscellaneous activities which will be prorated based on assessment by
construction supervisor.
Progress gateways for construction activities shall be defined considering the type of work as
given below.
o Equipment Foundations (M3)

Description Increment % Cum %

Excavation 20 20
Blinding 5 25
Rebar 20 45
Shuttering 15 60
Pouring 25 85
Coating 5 90
Backfill 10 100

10 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

o Tank Foundations (M3)

Description Increment % Cum %

Excavation 15 15
Ring Beam Concrete 25 40
Compacted Fill 25 65
Slab concrete / Bituminous Layer 25 90
Area clearance 10 100

o Building Construction

Description Increment % Cum %

Excavation 3 3
Foundations / Footings 20 23
Pedestals / Columns 10 33
Brick wall / Plastering 17 50
Roof 20 70
Door / windows fixing 3 73
Flooring / Painting / False Ceiling 7 80
MEP works 10 90
Finishing works 10 100

o Structural Steel Fabrication (MT)

Description Increment % Cum %

Fabrication 50 50
Erection 40 90
Painting/Finishing works 10 100

o Structural Steel Erection (MT)

Description Increment % Cum %

Installation on foundation 60 60
Welding / Bolt-up 30 90
NDT 10 100

11 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

o Site Fabricated Tanks (MT)

Description Increment % Cum %

Marking & cutting 30 30

Laying & Fit-up 20 50
Welding 40 90
NDT 10 100

o Static Equipment (MT)

Description Increment % Cum %

Install on Foundation 50 50
Alignment & Bolt-up 25 75
Install Internals 20 95
Grouting 5 100

o Rotating Equipment (MT)

Description Increment % Cum %

Install on Foundation 50 50
Preliminary Alignment 20 70
Grouting 20 90
Final Alignment 10 100

o Piping Spool Prefabrication (WID)

Description Increment % Cum %

Fit-up 30 30
Welding 50 80
NDT 10 90
Painting 5 95
Final release 5 100

12 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

o Piping Erection (IM)

Description Increment % Cum %

Installation Inch-M 60 60
Supports 30 90
NDT 10 100

o Piping Erection (WID)

Description Increment % Cum %

Fit-up 35 35
Welding 55 90
NDT 10 100

o U/G Piping (IM/RM)

Description Increment % Cum %

Fabrication 30 30
Erection 50 80
Jt Wrapping & Coating 10 90
Hydotesting/Leak Testing 10 100

o Electrical Equipment & Panels (Nos)

Description Increment % Cum %

Support Structure / Preparatory work 15 15

Erection 50 65
Internals & Wiring 25 90
Inspection & acceptance 10 100

o Instrument Equipment & Panels (Nos)

Description Increment % Cum %

Support Structure/Preparatory work 15 15

Handling & setting 45 60
Levelling & fixing 30 90
Inspection & acceptance 10 100

13 of 17
Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

o Electrical / Instrumentation Cables Laying (RM)

Description Increment % Cum %

Lay Cables 75 75
Dress/Install clips / cleats 20 95
Release for backfilling 5 100

o Instruments Installation (Nos)

Description Increment % Cum %

Supports Installation 15 15
Instruments Installation 75 90
Inspection 10 100

o Painting (M2/IM)

Description Increment % Cum %

Shot blasting & Prime Coat 65 65

Intermediate Coat 15 80
Final Coat (including Inspection) 20 100

Similarly progress gateway break-up for the other major construction activities will be
developed and progress will be measured based on the gateways. The complete progress
measurement system will be developed during construction stage. The above cited table will
be used as guidelines.
The gateways will be modified or clubbed while finalizing the progress measurement during
the construction stage. Once finalized, it will not be modified subsequently. The weightings will
be used based on the mutual discussion and approval of ORPC.
The progress of some of the activities as indicated below will be calculated based on
‘Completed Quantities, as per ‘Unit’ indicated against the respective:
 Site Grading (M2)
 Piles (Nos. or Dia X Depth)
 Pathways / Walkways (M2)
 Cable Trays (RM)
 Lighting Poles (Nos)
14 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

 Distribution Boards (Nos)

 Junction Boxes (Nos)
 Valves Installation (Nos)
 Fireproofing Structure / Equipment (M2)
 Insulation (M2)
 Lighting Fixtures (Nos)
 Earthing Cable Laying / Strip Laying (RM)
 Earthing Pits (Nos)
 Lighting Cables including Clamping (RM)
 Paving(M2)
 Motor No Load Run (Nos)
The progress construction activities will be monitored on a weekly basis.
8.4 Pre-commissioning Progress

The pre-commissioning progress will be calculated based on check sheets under sub-
systems/systems. Weightings of the systems/subsystems will be assessed by Commissioning
Manager, DPJV based on the check sheets for turnover, IM piping involved, equipment
involved etc. The weightings will be used based on the mutual discussion and approval of
ORPC. The check sheets for construction completion and pre-commissioning completion will
be used for Pre-commissioning progress.
8.5 Commissioning Progress

Commissioning and Performance Test progress will be measured only in terms of System
completion/check sheet and will not form part of p% progress evaluation.

9. PROGRESS PLAN & “S’ CURVES

9.1 Progress Plan:

Plan weightings of each project execution phase Engineering, Procurement, Construction,

Pre-commissioning, Commissioning and Overall progress will be developed from Level-3
schedule.
9.2 ‘S’ Curves:

As an aid Project Management, progress curves will be developed to monitor progress based
on the approved Schedule. This will include breakdowns for all phases and for the overall
project.

15 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

The 'S' curves will have following elements:

o Planned Progress- based on Early dates from L3 Schedule

o Actual progress- based on Progress Measurement System

o Forecast progress – based on Monthly Schedule update(upon Schedule approval)

An overall ‘S’ curve for percentage progress is derived for the project based on early dates
and the weightings. The percentage progress curve thus obtained will be used to assess the
performance. Actual project progress is calculated using the agreed Progress Measurement
System.
These curves will be updated periodically to compare actual progress versus planned.

10. PROGRESS MONITORING AND STATUS EVALUATION

The physical progress of each phase will be measured on monthly basis. Progress
measurement unit for a work group shall be linked to visible deliverables as much as the
nature of the work group allows. The visible deliverables will be for example design drawings
or specifications in the engineering phase, requisition or purchase order documents in the
procurement phase, and physical quantities of work performed in the construction phase, etc.

10.1 Engineering Progress

The physical progress of engineering activities will be measured based on weighting for
engineering activities.
Each discipline lead engineer through the review of respective work item status will monitor
such physical progress representing the achievement of engineering activities.
Status data necessary for engineering progress analysis will be derived from the status report
by discipline key engineers and from the Engineering Document Management System
(EDMS).
During periodical engineering coordination meeting, reasons, forecasts and/or backgrounds of
any problem areas will be identified and discussed to find effective countermeasures.

10.2 Procurement Progress

The physical progress of procurement will be measured based on milestone events of

individual purchase orders as well as manufacturing progress respectively for equipment and
bulk materials.

16 of 17
 Oman Refineries and Petrochemicals Company LLC Progress Measurement Procedure
Sohar Refinery Improvement Project S-000-5131-312
Sultanate of Oman Rev.1
Contract No. 21297
Job No : 120476 / JI-02022

Status data necessary for procurement progress analysis will be derived from the Purchasing
Status Report and Material Status Report.
During periodical procurement coordination meetings, reasons, forecasts and/or backgrounds
of any problem areas will be identified and discussed to find effective countermeasures.

10.3 Construction Progress

Progress will be measured by physical progress, based on the commodity installed and
completed in the construction work packages.
Such installed quantities will be converted into earned weightings allocated for each work item
with estimated man-hours.
Besides the physical progress, the Schedule Control Team will monitor work formation, direct
labor man-hour expenditure, labor productivity, equipment mobilization status and material
delivery information.
During weekly meetings between the Schedule Control Team and the construction disciplines,
reasons, forecasts and/or backgrounds of any problem areas will be identified and discussed
to find effective countermeasures.
Similar systems will be also be adopted during pre-commissioning and commissioning stages.

11. CUT-OFF DATE OF PROGRESS MEASUREMENT

Cut-off date for progress measurement will be defined in line with the agreed project calendar.

17 of 17