Engineering Encyclopedia

Saudi Aramco DeskTop Standards

Managing Quality During Construction

Note: The source of the technical material in this volume is the Professional
Engineering Development Program (PEDP) of Engineering Services.
Warning: The material contained in this document was developed for Saudi
Aramco and is intended for the exclusive use of Saudi Aramco’s employees.
Any material contained in this document which is not already in the public
domain may not be copied, reproduced, sold, given, or disclosed to third
parties, or otherwise used in whole, or in part, without the written permission
of the Vice President, Engineering Services, Saudi Aramco.

Chapter : Project Management For additional information on this subject, contact

File Reference: PMT10506 Rod Kuan on 873-9701
Engineering Encyclopedia Project Management
Managing Quality During Construction

Content Page

ROLE OF QUALITY MANAGEMENT DURING THE CONSTRUCTION PHASE .......... 1

Introduction .............................................................................................................. 1
Importance of Quality Management .......................................................................... 2
Responsibility for Implementation ............................................................................ 4
DEVELOPING GUIDELINES FOR THE IMPLEMENTATION OF A
CONSTRUCTION CONTRACTOR'S QUALITY MANAGEMENT PROGRAM............... 6
Introduction .............................................................................................................. 6
Contractor Fabrication/Construction QA & QC Requirements .................................. 7
Quality Assurance and Quality Management Plans.................................................... 8
Coordination Meeting Requirements ......................................................................... 9
Quality Procedures, Documentation and Report .......................................................10
Procedures....................................................................................................10
Documents ...................................................................................................10
Reports.........................................................................................................11
Waiver of Requirements ...............................................................................11
Waiver of Saudi Aramco Standards or Specifications ...................................11
QUALITY MANAGEMENT OF PROJECT MATERIALS AND CONSTRUCTED
FACILITIES .......................................................................................................................12
Introduction .............................................................................................................12
Inspection Procedures ..............................................................................................12
Quality Control/Quality Assurance Responsibilities......................................13
Quality Management at Vendor Shops .....................................................................14
Inspection Reports for Constructed Facilities ...........................................................17
Project Inspection Non-Conformance Report................................................17
Inspection Worksheet ...................................................................................17
Projects Inspection Worksheet Clearance......................................................18
WORK AID 1: GUIDELINES IN THE EVALUATION OF THE CONSTRUCTION
CONTRACTOR'S QUALITY MANAGEMENT PLAN AND PERFORMANCE...............19

GLOSSARY........................................................................................................................20

ADDENDUM......................................................................................................................21

Saudi Aramco DeskTop Standards

Engineering Encyclopedia Project Management
Managing Quality During Construction

ROLE OF QUALITY MANAGEMENT DURING THE CONSTRUCTION PHASE

Introduction

For engineering and construction projects, "Quality" term is used to infer compliance with the
company specifications, codes, standards, and project requirements. In this respect, what meets
the requirements should be considered quality work i.e. work done as specified. Narrowly
interpreted, quality means quality of work done on a project. Broadly interpreted, quality means:

• Quality of work

• Quality of service

• Quality of information

• Quality of work processes

• Quality of staff

From this it can be seen that modern quality management concepts and their application on the
project go beyond the narrow interpretation of the term quality as "being fitness for use."

In implementing quality on a project, the first challenge for the construction management on a
construction project is to clearly define "Quality" as it is applicable to the project environment.
Even the "quality gurus" differ on their interpretation of the term quality. According to the
Construction Industry Institute:

"The quality is conformance to the established requirements/specifications.

Not degree of goodness."

A product or service either meets the requirements or it does not. For quality to have meaning,
these requirements must be measurable. Quality management then encompasses three related
activities:

• Quality planning

• Quality control

• Quality improvement

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To achieve quality on a project, the Saudi Aramco Project Manager must ensure that all the
parties involved in the construction have a clear understanding of Saudi Aramco's procedures
project requirements. The next level of these requirements then become the project
specifications and performance standards. This process continues throughout the construction
phase and 'until the facilities are transferred to the operations group.

By combining the following two quality management concepts, the expectation are raised to
meet the project objectives in the most efficient and cost effective manner:

• Conformance to project requirements

• Compliance to performance standards

This leads to the quality management goal of:

" Do the right thing right the first time."

Repeated experience has shown that more attention to doing the job right the first time by
conforming to specifications, eliminates construction waste such as materials, rework,
inefficiencies, etc. The application of quality management principles on the construction project
not only results in a better constructed project but also helps in getting the project done
efficiently and cost-effectively.

Importance of Quality Management

It is important to clarify at the outset what quality management is and is not. A Quality
Management Program is not a replacement for project specifications, procedures, execution
plans, and project control requirements, or any of the other standard tools traditionally used in
good construction management. Rather it is a program to ensure that these construction
management tools are implemented efficiently and cost effectively. Implementation of quality
management helps to:

• Improve construction work processes

• Conform to project requirements

• Meet performance standards

Quality management helps to focus on the critical issues which are vital to the construction
success. By signaling out these critical construction success/failure issues, the Saudi Aramco
Project Management Team (SAPMT) and the other project participants concentrate on these
issues in order to meet the project objectives. Thus, the overall project success considerations
such as cost, schedule, safety, operability, etc. are positively affected by the Quality Management
Program.

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To achieve positive results from quality management on a construction project, the SAPMT must
clearly specify quality management goals and objectives. The quality goals, though relatively
general at the management level, should be further broken down into specific measurable
elements. For example at the management level the quality goal could be:

" Improve the construction quality in the critical project

success area of pipe erection."

The next level of quality management is to identify specific areas where piping quality should be
achieved along with measurable targets e.g.

• Limit the pipe rework to less than 3%

• Reduce the pipe weld rejection rate to 2%

• Increase the random weld x-rays to 25%

This will ensure that a set of specific measurable goals and standards are established in order to
meet the project's quality objectives.

The next step will be to ensure that certain actions are taken to achieve this performance criteria.
Example of these actions can be:

• Piping isometrics are thoroughly checked to eliminate design flaws

• Reinforce inspection at the pipe fabricator

• Institute welder certification program

• Train welders for complex pipe work, etc.

The above actions will ensure that concrete steps are being taken to achieve the project's quality
goals. The SAPMT must ensure that all the project participants take the quality goals seriously
and contribute in meeting these goals.

Implementing a well thought out Quality Management Program on a construction program can
result in:

• Reliable facility for operations and maintenance

• Improved cost and schedule performance

• Safe and performance-driven work environment

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Responsibility for Implementation

Quality is a matter of corporate survival and the entire work force must be involved in the
planning and implementation of a quality program. Attaining quality performance must be a
personal commitment of the construction staff who are involved in the planning and execution of
a project. All the project participants must understand the project's quality goals, guidelines and
incorporate these in performing their everyday tasks e.g.

• Writing construction specifications

• Inspecting the field work

• Performing the construction activities

• Supervising construction

• Managing the contractors

Awareness of Saudi Aramco's management's commitment to quality, and project's specific

quality goals are essential to get participant's active involvement in the quality implementation.
To get acceptance of the quality work concept, the first major step is to make each project
participant and their staff accountable for their work performance. This will make them conform
to the project specifications and performance standards.

Each party involved in the construction phase of a Saudi Aramco project should also identify the
key individuals responsible for the implementation of the quality program. The construction
organization charts should clearly identify the following key quality control positions:

• Quality Control Manager

• Quality control staff

• Construction Inspection staff

The quality control staff's specific roles, responsibilities, and their interfaces with other project
participants should be clearly defined. This will ensure that the specific quality tasks and
expectations are identified and project's quality goals are achieved under the guidance and
direction of assigned quality staff.

Clearly defined roles, responsibilities, interfaces, and performance expectations enhance the
communication among project participants and in achieving quality goals without unnecessary
conflicts and confusion.

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The company representative in conjunction with the Saudi Aramco Inspection Department, is
responsible for ensuring that QA/QC activities are implemented by all the Contractor's according
to the Saudi Aramco standards, specifications, requirements and procedures. The
responsibilities include:

• Overall quality audit functions

• Review and agreement of all contractor's quality manuals and plans

• Review and agreement of contractor's QA/QC manning levels including

qualification of such personnel

• Monitoring the contractor's QA/QC performance during all phases of a project

• Assisting contractors by recommending and interpreting the Saudi Aramco

standards and specifications

• Final resolution of QA/QC problems

• Designating Saudi Aramco's inspection representative(s)

• The right to take over the QA/QC functions on a project, if they are (in their
opinion) not satisfied with the contractor's QA/QC performance

• The contractor is responsible for providing Quality Assurance (QA) to ensure that
all the requirements of Saudi Aramco's standards and specifications are met.
Contractor's QA activities shall include Quality Control (QC) functions, such as
inspection, testing, etc.

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DEVELOPING GUIDELINES FOR THE IMPLEMENTATION OF A CONSTRUCTION

CONTRACTOR'S QUALITY MANAGEMENT PROGRAM

Introduction

In order to achieve the quality work on Saudi Aramco projects, the Saudi Aramco's Engineering
Procedure SAEP-1023, provides specific guidelines and requirements that the project
participants should follow. This procedure defines the minimum Quality Assurance (QA) and
Quality Control (QC) requirements for all types of contract. This procedure sets forth the
contractor's quality requirements in five distinct phases:

• Design

• Procurement

• Fabrication

• Construction

• Program Management (PM) and Construction Management (CM)

When the contract covers a specific project phase, Appendix "A", (Addendum 1) should be used
to define the quality elements required by the contractor.

The Saudi Aramco's QA and QC procedures for the construction phase are provided to ensure
that the facilities are constructed in accordance with the Saudi-Aramco approved system of
standards and specifications. Similarly the Construction Management phase guidelines are
included to ensure that the construction contractors meet the contract requirements. The
Construction Management's Quality Assurance Representative should prepare a quality plan
addressing the quality elements of Appendix "B" (Addendum 2).

In implementing the quality management on the Saudi Aramco's construction projects, the
following company documents are used:

• Saudi Aramco Engineering Standards (SAES)

• Saudi Aramco Materials System Specifications (SAMSS)

• Aramco Inspection Procedures (00-AIP-02-P)

• Saudi Aramco Engineering Procedures (SAEP)

• Aramco Construction Specifications (ACS)

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• Project Execution Plan (PEP)

• Applicable Project Documents (drawings, scope of work, contract terms, etc.)

All of these documents contain have procedures and guidelines that provide specific standards
and codes that the contractor should follow to meet Saudi Aramco's quality objectives.

Contractor Fabrication/Construction QA & QC Requirements

The SAEP-1023 provides the following QA and QC requirements that the contractors should
follow during the fabrication and construction phases of a Saudi Aramco project:

• The contractor shall provide all QA/QC activities in the fabrication/construction

and pre-commissioning of the facilities

• The contractor shall perform all QA/QC functions to ascertain that all fabrication,
construction and pre-commissioning are performed in accordance with the
requirements of:

- Approved fabrication and construction drawings

- Saudi Aramco Engineering Standards (SAES)

- "Approved for Construction" Fabrication procedures and specifications

- Contractor approved QA/QC Manual and Plan

• The contractor may subcontract with qualified persons or agencies to provide

QA/QC services, including the administration thereof. Upon contract award, the
contractor shall submit to the Saudi Aramco Representative the proposed name,
location and qualifications of all QA/QC personnel and agencies to be used in
construction phase QA/QC services. Saudi Aramco may, at its sole option,
administer tests to and conduct interviews with the contractor's and
subcontractor's proposed candidates. The Saudi Aramco Company
Representative reserves the right to disqualify any individual(s) or agency(ies) on
technical grounds.

• The contractor shall require all subcontractors to conform to this procedure.

Further, the contractor shall require subcontractors to meet the project
specifications as defined in the contract. Failure of the subcontractor to meet the
specifications and standards of the contract shall not relieve the contractor of his
responsibility to meet such specifications and standards.

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• The contractor shall reject work which does not meet the job specifications, or
which was not inspected, tested or examined in full compliance with the
requirements of the company system of standards and specifications.

• The contractor shall be responsible for all required inspection, tests, and
examination at the fabrication yard(s) and work sites. This shall include repair of
defects discovered by radiography or by other non-destructive or destructive
testing or inspection performed by the contractor. Only in the case when the
company required additional testing and inspection reveals no defects shall the
cost of the additional testing be borne by the company.

• A company inspection team will monitor and audit the contractor's QA/QC
activities and will advise, recommend and interpret applicable standards,
specifications, codes and other requirements. Saudi Aramco reserves the right to
monitor said activities, and to visit inspection locations with or without prior
notice to the contractor.

• The Saudi Aramco Representative shall notify the contractor of any deficiencies
or problems observed during performance of the work, or during any inspection
visits conducted by the company. The contractor shall maintain a log of
deficiencies or equipment and the facilities or separable portions thereof, and
report on their status at intervals and in a format agreed upon by the Saudi
Aramco Representative.

Quality Assurance and Quality Management Plans

As early as possible, but no less than sixty (60) calendar days prior to any
fabrication/construction activities, the contractor shall submit to the Saudi Aramco
Representative a QA/QC Manual and Plan for review. Saudi Aramco shall review such plan
within twenty (20) days and shall return it with comments, if any. The contractor shall thereafter
return the comments addressed, within a further ten (10) days. The contractor shall obtain an
agreement on the QA/QC Manual and Plan before commencing any fabrication/construction
activities.

The contractor's QA/QC Plans for fabrication, construction, and precommissioning shall be
prepared to a level of detail appropriate for the work to be performed by the contractor, and shall
cover all fabrication, construction and precommissioning activities through final construction
and mechanical completion. As a minimum, the plans shall include:

• An organizational chart showing the relationship between management, quality

control, and other departments. Persons performing QA/QC functions shall have
sufficient and well-defined responsibility, qualifications, authority, and
organizational freedom to identify quality problems and to initiate, recommend
and provide solutions.

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• Control of the issue, use and revision of the contractor's QA/QC Plans for
fabrication/construction.

• Control of fabrication/construction activities to assure that all the Saudi Aramco

specifications, inspection and documentation requirements will be met. In this
regard, an Integrated Work Sequence Plan shall be utilized which incorporates
fabrication and QC activities in their required sequence during the execution of
the fabrication phase work.

• Control of material to assure only technically acceptable items are used.

• Control and disposition of non-conforming materials.

• Control of the approval, issue, use, revision and qualification of procedures for
welding, nondestructive examination, heat treatment, painting, insulation and
fireproofing, etc.

• Control of the selection and assignment of qualified personnel to witness tests and
ensure compliance with procedures.

• Control of the orderly collection and retrieval of all documentation of material

inspection, tests and examinations.

• Control methods showing fabrication, construction and precommissioning

milestones requiring Saudi Aramco's and the contractor's QA/QC witnessing and
signing off.

• The professional qualifications of any subcontractor, person and/or agency

employed by the contractor to satisfy any of the requirements.

• Provisions for auditing all of the above activities on a scheduled basis.

Refer to Appendix "B" (Addendum 2) for detailed specifications of the above requirements.

Coordination Meeting Requirements

The contractor shall participate in the fabrication/construction phase QA/QC coordination

meetings for the purpose of establishing a complete understanding by the contractor of Saudi
Aramco QA/QC requirements while the contractor's quality plan is under company review.

The contractor and any subcontractor should initiate meetings when an QA/QC matter requires
coordination or clarification prior to fabrication/construction activity. The Saudi Aramco
Representative shall have the right to initiate such meetings for the purpose of establishing the
QA/QC plans' application to fabrication/construction activities.

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The contractor shall maintain at the contractor's fabrication yard (s) and work site office (s) a
copy of all documentation in reference to fabrication specifications, procedures and inspection of
equipment and materials used in the fabrication and construction of the facilities.

Quality Procedures, Documentation and Report

The SAEP-1023 outlines the quality procedures that the construction contractors should follow,
the documentation that they should develop, and the reports that they should provide to the
SAPMT.

Procedures

The following procedures should be followed by the construction contractors in implementing a

Quality Management Program:

• The contractor shall perform QA/QC activities in conformance with the Saudi
Aramco agreed QA/QC plans and procedures.

• The contractor shall use good construction practices in conformity with the
requirements of the Saudi Aramco system of standards and specifications. The
contractor's fabrication/construction activity shall conform, at the minimum, to
Saudi Aramco standards and other related documents.

• The contractor shall require subcontractors to conform, at a minimum, to the

requirements of the Saudi Aramco company standards.

• The contractor shall monitor activities of all subcontractors and ensure that
subcontractors have properly conveyed construction standard requirements to all
tiers of activity.

Special QC Requirements -In the event that the requirements of the Saudi Aramco system of
standards and specifications cannot be applied to a fabrication/construction activity, the
contractor's QA/QC Supervisor shall submit, in writing, a proposed QC procedure. This
procedure may be devised by a subcontractor, outside agency, or contractor, at the contractor's
option. The contractor's QA/QC Supervisor shall allow thirty (30) calendar days prior to
implementation of such procedure for Saudi Aramco's review and comment.

Documents

The following general requirements are applicable to the contractor's QA/QC documentation:

• Documentation shall be in English

• All documentation shall be legible and of microfilmable quality

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In instances where a site visit is not required or is waived, the contractor shall obtain from
vendors and subcontractors such data as may be required by Saudi Aramco for its records. The
contractor shall compile all necessary documentation required to complete the Project Inspection
Record Books as required by Saudi Aramco Engineering Procedure AEP-122. The Project
Inspection Record Books shall be forwarded to the Saudi Aramco Representative for review,
comment and approval thirty (30) days prior to facility completion.

Reports

The contractor shall provide the Saudi Aramco Representative with a schedule covering each
week's QC activities at least one week in advance of such activities. The schedule shall be in a
form agreed upon by Saudi Aramco.

The contractor shall supply legible copies of reports of QC activities by his personnel, on a
weekly basis.

Waiver of Requirements

The Requirements for the contractor's inspection, testing or examination during the procurement
and fabrication/construction phases may be waived only with Saudi Aramco's written approval.
Saudi Aramco reserves the right to waive inspection of material or equipment to be
purchased/fabricated for the facilities.

Waiver of Saudi Aramco Standards or Specifications

Waiver by the company of Saudi Aramco standards or specifications during either the design,
procurement, fabrication or construction phases requires the approval of the SAPMT. Requests
for waivers must be submitted to the Saudi Aramco Representative on Saudi Aramco Form 6409
at least four (4) weeks prior to the date of inspection of the material, equipment or fabrication
activity, which is the subject of the waiver request. The request must include all reasonable
technical and cost documentation to justify the waiver. Rejection of a waiver shall not be
grounds for a schedule delay or contract change.

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QUALITY MANAGEMENT OF PROJECT MATERIALS AND CONSTRUCTED

FACILITIES

Introduction

Quality management is crucial in the successful procurement of construction materials and in

ensuring that quality control procedures are implemented for the Saudi Aramco supplied
materials. Quality of project materials should never be compromised by pressure of expediency,
schedule or cost.

Quality management for project materials starts with the correct specifications and selection of
materials for the intended purpose with appropriate design margins and safeguards. Once the
materials have been selected and specified, the next step is to select a supplier with a proven
track record of providing materials:

• On time

• Good quality

• Tested and inspected

• Proper handling and shipping

The material vendor/supplier should ensure that the material meets the required specification and
project requirements. The final step is to ensure that field installation strictly conforms to the
specifications and requirements laid down by the design engineers and manufacturers.

Quality control is maintained by having qualified personnel involved in the key material
selection and procurement phases, and by following formalized procedures and checklists
throughout the procurement and construction phases of a project. By procuring good quality
materials, the SAPMT ensures that not only the construction work will be accomplished
efficiently but also the constructed facility will achieve the established operability and
maintainability criteria.

Inspection Procedures

Construction inspection includes the field activities that are designed to ensure that the entire
construction work is faithfully constructed as specified by the engineering documents, resulting
in construction facilities that conforms to the Saudi-Aramco requirements. Saudi Aramco's
Inspection Procedures 00-AIO-02-P provides detailed guidelines and instructions in
implementing inspection procedures for Saudi Aramco's construction projects. This procedure
provides a summary of major inspection activities on new construction projects. Inspection and
construction agencies may use this procedure in defining the role of the Inspection Department,
and the activities and responsibilities of inspectors.

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Quality Control/Quality Assurance Responsibilities

Project Inspection Division (PID), in association with the SAPMT, monitors the QA/QC at the
jobsite, and Vendor Inspection Division (VID) does the QA/QC at the Vendor Shops for
contractor provided or Saudi Aramco supplied materials.

The inspection procedures defines the responsibilities of the Inspection Department on a

construction project. The Inspection Procedures do not relieve the Construction Management
Team (CMT) of their responsibilities and obligations to construct the project in accordance with
project specifications. In general, the Inspection Department provides the following inspection
services as it relates to the project materials:

• Provides quality assurance services for the design, procurement, fabrication and
construction phases of projects.

• Provides quality control functions when necessary, i.e. radio-graphic, ultrasonic,

magnetic particle and dye penetrant.

• Vendor Inspection Division is responsible for quality assurance related to the

design, procurement, and fabrication of materials before arrival on site.

• Inspection will randomly inspect materials received during the construction phase
for compliance to the Saudi Aramco standards, specifications and for any possible
damage. Non conformance will be reported immediately to the Construction
Agency for resolution and to Vendor Inspection for follow-up with the vendor.

• Prior to the inspection of foundations or other concrete structures, inspection will

verify that an approved laboratory has performed analysis of cement, sand, water,
and aggregate to determine that these materials meet the job design specification
and Aramco Engineering Standards. Material analysis of asphaltic concrete will
also be reviewed.

• Equipment will be inspected for vendor/equipment deficiencies, and for possible

damage during installation. For vessels requiring internal inspection, final closure
may not be accomplished prior to sign-off by inspection and other agencies Safety
Instruction Sheets (SIS) or data sheets must be reviewed before equipment is
pressure tested as required by AES-A-4.

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Quality Management at Vendor Shops

The SAEP-1023 outlines Saudi Aramco's QA and QC requirements for the vendors supplying
materials for the Saudi Aramco projects. Strict adherence to these requirements and guidelines
will ensure that the vendor's perform their work in strict compliance to Saudi-Aramco's
specifications. The following QA/QC procedures are applicable to vendor shops providing
materials to Saudi-Aramco.

• The contractor shall monitor all vendors for conformance with this procedure
when supplying material and equipment to Saudi Aramco. Further, the contractor
shall require that vendors, subvendors, subcontractors, agencies, and
manufacturers meet Saudi Aramco standards and specifications.

• The contractor shall instruct manufacturers and vendors that inspection by the
contractor or monitoring by Saudi Aramco shall not relieve them of:

- Their obligation to provide their own Quality Assurance/Quality Control

- Their guarantees as to materials, workmanship or performance.

• The contractor shall reject any material or equipment which does not meet the
requirements of this procedure or which was not inspected, tested or examined.
The contractor shall be responsible for all required inspections, tests, and
examinations at the point of manufacture.

This shall include repair of defects discovered during inspection performed by the
contractor or performed at Saudi Aramco's request. Only in the case the Saudi
Aramco requested additional testing and inspection reveals no defects, shall the
costs for the additional testing be borne by Saudi Aramco.

• Generally, QC activities will be performed at the manufacturer's plant. When

determined by the contractor, quality control may be accomplished in a
subvendor's plant. For example, when a subvendor supplies custom fabricated
equipment, requiring a significant amount of welding, quality control may be
performed at the subvendor's plant. Similarly, in cases where equipment is to be
shipped from the plant directly to the work site, quality control should be
performed at the subvendor's plant.

• The contractor shall maintain an effective system for continuity or order

identification which ensures that drawings, specifications, and inspection
requirements are properly transmitted to vendors at all tiers of order placement.

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• Saudi Aramco may require that independent verification tests be made in the
event that:

- Material to be used in the project cannot be identified; or

- Reasonable doubt exists as to the genuineness of its identity. Such tests

shall be made to Saudi Aramco's satisfaction, and at no cost to Saudi
Aramco.

• The contractor shall ensure that all vendors and manufacturers have and maintain
acceptable QA/QC programs. The contractor shall perform quality audits and
maintain reports for this purpose.

• The contractor and any subcontractor or vendor should initiate meetings when any
QA/QC matter requires coordination or clarification before manufacturing begins.
The Saudi Aramco Representative shall have the right to initiate such meetings
for the purpose of establishing the QA/QC plans application to individual
procurement orders.

• When requesting bids and placing orders with vendors or manufacturers, the
contractor shall use procurement practices in conformity the Saudi Aramco's
system of standards and standard specifications.

• The contractor's orders to vendors shall include as attachments:

- The summary of Saudi Aramco inspection and testing requirements in a

format similar to Saudi Aramco Form 175.

- Pertinent Saudi Aramco Material System Specification (SAMSS) for the

ordered material and equipment. Where a subvendor will be involved, the
contractor shall require the vendor to distribute said attachments to the
subvendor as part of the order to subvendor.

- Pertinent Project/Contract specifications and drawings.

• The contractor shall further require vendors, subvendors and subcontractors to

provide the contractor with copies of purchase orders (these may be unpriced
copies). The contractor shall monitor purchase orders and ensure that vendors
and subcontractors have properly conveyed contract requirements including
inspection requirements to all tiers of order placement.

• Saudi Aramco shall have access to all purchase order inspection report files.

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• Within ten (10) calendar days of acceptance of an order by a vendor, the

contractor shall compile and forward to the Saudi Aramco representative, the
contractor's Inspection Assignment Package. This shall include:

- A complete copy of the contractor's unpriced purchase order/subcontract

including all attachments;

- Copies of subvendor purchase orders form;

- Information required to perform the inspection;

- An inspection assignment sheet specifying QC person or agency that will

perform the QC function.

• The vendors' manufacturing procedures including, but no limited to the welding,

non-destructive examination, heat treatment, and major repair procedures shall be
reviewed and approved by the contractor prior to start of manufacturing.

• The contractor shall provide the Saudi Aramco Representative with a schedule
covering each week's QA/QC activities at least one week on advance of such
activities. The schedule shall be in a form approved by the Saudi Aramco
Representative. The contractor shall supply legible copies in English of reports or
QA/.QC activities by his personnel, on a weekly basis.

• A final Disposition Report shall be supplied to Saudi Aramco upon acceptance of

material or equipment which has been tested in accordance with company
specifications. This report shall be based upon the contractor's review of the
inspection file, and shall provide details of QA/QC activities performed during
manufacturing/fabrication.

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Inspection Reports for Constructed Facilities

All inspection reports, comments and recommendations concerning the project materials should
be submitted to the construction agency for implementation of corrective actions. The inspection
group will ensure that all the essential information to document the material quality is
maintained. If a Project Inspector finds any problem with the Saudi Aramco supplied materials,
then he generates an "Equipment Deficiency Report" for VID's action. All project records will
be submitted to project proponent after completion of the project. some of the material
inspection reports are described below:

Project Inspection Non-Conformance Report

• When work has been observed by Inspection which does not conform to the
applicable standards or specifications, a Non-Conformance Report (NCR) will be
submitted to the construction agency. This is normally written when no response
is given to Log Book or the response is not satisfactory to the Inspection.

• This report will identify the equipment number and location, note the specific
standard violated, and include sufficient information for the construction agency
to correct the deficiency.

• The Inspector shall inspect the corrective action taken and indicate on the NCR
when the corrective action has been completed and approved.

• On minor items, if corrective action is not taken, the NCR will be discussed with
the proponent for action.

• On major items, if no corrective action is taken a worksheet will be issued.

Inspection Worksheet

• The worksheet is utilized to inform the construction agency and other interested
departments that construction does not comply with the standards. Outstanding
worksheets must be listed on the exception lists attached to the partial or final
completion certificate.

• Worksheets may be issued anytime, but normally are submitted after the
construction agency has been given adequate time to correct deficiencies listed in
the Inspection Log Book, or con-conformance report.

• Worksheets will be approved by the Unit Supervisor or the Senior Supervisor

prior to typing and must be signed by the Unit Supervisor or Senior Supervisor
prior to transmission.

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• The worksheet will identify the equipment number and location, note the specific
standard violated and outline and Inspections' recommendations.

• A Project Inspection Worksheet Clearance Form (A-8213-2) will be attached to

the Action Recipient's copy of each worksheet.

Projects Inspection Worksheet Clearance

• It is for the use by the Construction Agency to notify the inspector what actions
they intend to take to clear the worksheet.

• When the inspector agrees that the remedial action has been completed, he will
sign the clearance portion of the worksheet.

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WORK AID 1: GUIDELINES IN THE EVALUATION OF THE CONSTRUCTION

CONTRACTOR'S QUALITY MANAGEMENT PLAN AND
PERFORMANCE

The Work Aid provides guidelines in the evaluation of contractor's Quality Management Plan
and performance.

Guidelines:

Question 1.

The participants should refer to the subject matter under the heading "Quality Assurance
& Quality Management Plans" and check all the contents and issues are covered in the
contractor's Quality Management Plan.

Question 2.

The participants should review the plans and identify the measurable quality goals.
These goals should conform to Saudi Aramco's project objectives and requirements.

Question 3.

Refer to the information sheets for the EO#3 and identify the steps to ensure the quality
of project materials.

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GLOSSARY

ACS Aramco Construction Specifications

CMT Construction Management Team

NCR Non-Conformance Report

PEP Project Execution Plan

Quality Assurance A well defined plan of action designed to provide and produce
consistent workmanship which meets the level of quality required.
Verification of the plan's implementation shall be through regular
monitoring/ auditing functions. This will be done on an as-needed-
basis to insure that the end product meets the preplanned and
approved requirements.

Quality Control A direct function which measures, tests, records, and regulates
engineering, procurement, construction activities through
established methods, specifications and standards in all disciplines
involved. Normally, this is accomplished through the
implementation of the approved project scope and it is the
responsibility of the PMT/CMT and contractor from start to finish.

QC Quality Control

SAEP Saudi Aramco Engineering Procedures

SAES Saudi Aramco Engineering Standards

SAMSS Saudi Aramco Materials System Specifications

SAPMT Saudi Aramco Project Management Team

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ADDENDUM

1. Appendix "A" - Quality Requirements By Contract Type

2. Appendix "B" - QA/QC Program Guidelines

3. Projects Inspection Report

4. Projects Inspection Non-Conformance Report

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Addendum 1

SAEP-1023, Appendix "A"

Quality Requirements By Contract Type

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Addendum 2

SAEP-1023, Appendix "B"

QA/QC Program Guidelines

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Addendum 3 - Projects Inspection Report

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Addendum 4 - Projects Inspection Non-Conformance Report

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