eppgep 312 - project management & execution procedure

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EPP/GEP 312 - Project Management & Execution Procedure - Procurement Phase (Certification of material/equipment at works)

Author(s): - unspecified –

Editor: Lionel Raynaud

Validated by: Leslaw Przybyl

Revision: 5 Revision date: 21/05/2002

Features of last Revisions: (no incrementation of revision number) Exported from DOQ to Word format without

significant modification of contents

Rev. 5: Modification of Inspection Report (now rev.e) contained in Appendix 1 to cover the case where report is not signed by the Surveyor having performed inspection.

Rev. 4: Minor modifications of the Appendices concerning the Inspection Report, Non-Conformity Report & End of Inspection Note

Rev. 3: Modification of title - other minor changes

Rev.2: Conversion under DOQ format from PEP/PTN database (former PTN "E&P IAW", rev.1, status "For implementation") - Minor modifications

Scope/Application: The purpose of this General Procedure is to describe the Organization / Execution System to be implemented by Bureau Veritas units involved in the execution of Certification Services carried out during a Project Procurement Phase (Inspection at Works).

The following paragraphs of this document highlight the main steps of Technical, Financial and Administrative Management of the CONTRACT related to Inspection at Works (Certification of Material / Equipment).

This procedure is applicable to Inspection at Works services carried out within the frame of the BV Contract covering overall Project Certification.

This document should be considered as a guideline for BV Coordinating Office (BV Contract Canter) and BV Performing Offices how to set a Contract Execution system. It is understood that any BV Unit in charge of a contract shall make all necessary adjustments / modifications of this procedure to meet all specific requirements of his contract.

However, whenever a BV contract does not specify the execution methods this General Procedure should be considered as a minimum requirement to be included in the specific Contract Execution Plan.

Bureau Veritas Head Office

17 bis, Place des Reflets

92077 Paris La Défense Cedex - France

E&P General Execution Procedure



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Table of contents

EPP/GEP 312 - Project Management & Execution Procedure - Procurement Phase (Certification of material/equipment at works).................................................................3

Sections............................................................................................................................3 Contract Execution - Initial stage: contract preparation phase .......................................3 Contract execution - 1st stage: Definition of BV intervention .........................................5 Contract Execution - 2nd stage: Purchase order identification.......................................6 Contract execution - 3rd stage: pre-manufacturing meeting ..........................................8 Contract Execution - 4th stage: During inspection .......................................................10 Contract Execution - 5th stage: upon completion of inspection....................................15

Appendices ....................................................................................................................17 Appendix 1: Inspection Report .....................................................................................17 Appendix 2: Non-Conformity Report.............................................................................17 Appendix 3: End of Inspection Note .............................................................................17 Appendix 4: Inspection Certificate ................................................................................17

E&P General Execution Procedure - EPP/GEP 312


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Revision: 5 - Date of revision: 21/05/2002

Sections

Contract Execution - Initial stage: contract preparation phase Immediately after contract award a Chief Executive of BV Contracted Office (BVCO) shall appoint the Contract Manager (BVCM) who will be responsible for all contractual, technical, financial and administrative matters related to the overall contract. The BVCM shall either appoint Inspection at Works Coordinator (BVIWC) to be the focal point for BVPC’s involved in the contract or he has to assume this responsibility himself.

In any case it is absolutely required that a person in charge of Inspection at Works coordination is clearly identified.

The first task of BVCM / BVIWC is a preparation of detailed Contract Execution Plan (Co-ordination Procedure). This document shall be issued before any Request for Intervention is issued to a BVPC. As a minimum the Contract Execution Plan shall include the following elements:

1. Brief description of the Project / Contract including all contract / Client references.

2. Detailed description of the contractual Scope of Work

3. BV Contract Organization including Key Personnel at the level of BVCO and lines of communication (a typical communication chart is given below)

4. Details of Intervention Request procedure including a form of Intervention Request, details of inspection mobilization such as approval of surveyor (required CV details), procedure of change of approved surveyor, time/cost estimation, etc.

5. Detailed description of inspection execution (steps / sequence of an intervention)

6. Detailed description of the reporting procedure including Reporting Forms, reporting frequency, contractual delay of reporting, Non Conformity Reporting (NCR), etc.

7. Detailed description of internal invoicing procedure

The above Contract Execution Plan shall be revised and distributed to all concerned offices whenever any detail of the contract execution is modified or adjusted.

At the initial stage of the contract BVCM / BVIWC shall tentatively agree with the Client the list of material / equipment to be inspected by BV. This list called BV Interventions List shall be updated whenever new material / equipment is added or any additional information is available.

The above Intervention List will indicate to the Client the overall extent of BV involvement during Project Procurement Phase and on the other hand will enable BVCM to make tentative Planning / Scheduling of the Project. Based on the above list the BVIWC will also obtain from BV Chief Executives of concerned countries the names of BVCC’s (BV Country Coordinators) together with their CV’s.



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CLIENT

BVCM / BVIWC(BV Contract Manageror Inspection at Works

Coordinator)Insp. Atn

Communication in accordancewith the Contract Document,and Contract Execution Plan

Supplier &Sub-suppliers

1

BVCC(BV Country Co-ordinators)

1, 2, 3, ......

BV E&P (HO)Projects Dept. - Internal Quality

Supplier &Sub-suppliers

2

Suppliers &Sub-suppliers

3, .....

Communication inaccordance with BVQuality Manual and E&PGeneral Procedures

Communication in accordancewith Contract Executioin Plan

Communication in accordancewith the Contract Document, andContract Execution Plan

Communication in accordancewith Contract Executioin Planand Local Procedures

BVPC(BV Performing Offices)

1, 2 3, ...



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Contract execution - 1st stage: Definition of BV intervention

CLIENT DUTY At the commencement of the project the Client shall submit to BVCM a complete list of Material Requisitions with necessary, complementary information such as a minimum description of supply, quantity, applicable specifications, preliminary Inspection-Testing Plan, etc. Whenever possible the list should include references of potential manufacturers or at least potential countries of manufacturing.

The Bureau Veritas feed back described below in Par. 2.2.2 will be included in Material Requisition Package sent by the Client to Vendors / Suppliers. Material Requisition should also include information for the manufacturer advising him about involvement of Bureau Veritas as Certification Authority appointed by the Client.

BUREAU VERITAS DUTIES In return BVCM will send back to the following requirements concerning certification of each equipment:

1. Requirements concerning Vendor Design Review

2. Requirements concerning certification of raw materials and prefabricated elements (3.1.c, 3.1.b, 2.a)

3. Marked up an Inspection-Testing Plans with proposed Bureau Veritas interventions (Witness, Hold point, Review of Records, Surveillance, etc.).

BVCM / BVIWC should consult the requirements concerning Vendor Design Review with BV Design Review Center (BV E&P) or Local Plan Approval having corresponding delegations.

Note: In the case of the Contract covering Third Part Inspection at Works (instead of overall Project Certification) the 1st Stage shall be as follows:

At the initial stage of the contract BVCM shall agree with the Client the list of material / equipment to be inspected by BV including foreseen extent of intervention. This list called BV Interventions List shall be updated whenever new material / equipment is added or additional information available. Typically such a document shall include the following information agreed between the Client and BVCM:

List of material / equipment subject to BV intervention Coordinates of Manufacture or possible Manufacturers if known at this stage Required BV involvement in Vendor Design appraisal and Level of BV Inspection

agreed with the Client or defined by the Client.

Possible Levels of Inspection should be agreed formally with the Client e.g.;

Level 1 - Attendance of pre-manufacturing meeting, intermediate inspections according to Inspection Test Plan, final inspection and / or witnessing Factory Acceptance Test and pre-shipment inspection including inspection of packing.

Level 2 - Attendance of pre-manufacturing meeting, review manufacturer Inspection Records, final inspection or witnessing of Factory Acceptance Test and pre-shipment inspection including inspection of packing.

Level 3 - Attendance of pre-manufacturing meeting, review manufacturer Inspection Records and pre-shipment inspection including inspection of packing.

The above definition of Inspection Levels is given for reference only. Different definition as well as number of Inspection Levels may be agreed with the Client.



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1st stage - Organization Flow Chart - Definition of Intervention

CLIENT

BVCM orBVIWC

BV Design ReviewOffice

1: Material Requisitionswith complementaryinformation

4: Provision of:• Design Review Requirements• Material Cert. Requirements• Marked ITP’s

2: Same as 1

4: Requirements concerningVendor Design Review

Contract Execution - 2nd stage: Purchase order identification

EPC CONTRACTOR TECHNICAL DUTIES As soon as a Supplier / Manufacturer is selected by the Client the BVCM / BVIWC shall receive from the Client an un-priced copy of Purchase Order with references of Manufacturer’s Contact Person (QC Rep.) in charge for the quality.

The Client will make all necessary arrangements with their suppliers to allow Bureau Veritas to carry out its mission in the best conditions.

BUREAU VERITAS DUTIES Upon receipt of the above Purchase Order the BVCM will immediately contact BVCC to nominate BVPC (BV Performing Center) and will assign the Intervention Number. The Intervention Number and coordinates of BVPC will be entered in the Intervention List.

BVPC will contact immediately Manufacturer to arrange the date and agenda of Pre-Inspection Meeting.

At the same time BVPC will assign a surveyor(s) to perform all inspections for the Purchase Order. BVCC will send resume of the proposed surveyor and the date of Pre-inspection meeting to BVIWC who will transmit the same for the Client review and approval. It is



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understood that only approved surveyor is authorized to perform any inspection related to the corresponding intervention (Purchase Order). To avoid any problem related to the availability of surveyor, BVPC should propose in advance additional CV’s for approval.

As a rule Bureau Veritas has no authority to change material descriptions or any other requirements specified on the Purchase Order. However, if they have any technical concerns or experience of problems that are not addressed in the Purchase Order package, ITP (Inspection Testing Plan) or specifications, Bureau Veritas shall immediately inform Client about such an event.

2nd stage - Organization Flow Chart - Purchase Order Verification

CLIENT

BVCM orBVIWC

BV CC(BV CountryCoordinator)

1: Purchase Order(un-priced copy) +references ofmanufacturer’scontact person

7: Same as 6 + coordinatesof BVPC’s and BVCC

2: Same as 1

6: Same as 5

Manufacturer

3: Same as 1

4: Date of Pre-inspection Meeting

5: Date of Pre-inspectionMeeting + CV’s of proposedsurveyors

BV PC(BV Performing Office)



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Contract execution - 3rd stage: pre-manufacturing meeting

BUREAU VERITAS DUTIES After review of the Purchase Order and applicable specifications, the approved surveyor of relevant BVPC (BV Performing Center) shall attend Pre-Inspection Meeting with the manufacturer at the earlier agreed date.

It is absolutely necessary that the attending surveyor has familiarized himself with all requirements of the Purchase Order and Bureau Veritas mission. Any doubts should be clarified with BVIWC before the meeting. During the meeting Bureau Veritas shall obtain from a manufacturer the manufacturing schedule, clarify all relevant requirements (from quality point of view), receive ITP (Inspection Testing Plan) with manufacturer QC interventions marked up and identify all possible sub-contractors (if applicable). In the case Bureau Veritas scope includes vendor’s design appraisal a list of required design documents and schedule of submittal has to be agreed.

After Pre-Manufacturing Meeting, BVPC shall finalize / prepare the following:

1. Minutes of Pre-Inspection Meeting

2. Inspection ITP (Inspection Testing Plan) with marked final BV Interventions.

3. The estimated time / cost for inspection and design review as applicable (number of hours / days, expenses, etc.).

The above information will be sent by BVPC to BVIWC who will transmit the same to the Client for review or necessary approvals as applicable.

4.1.2. CLIENT DUTIES After review of the above proposed BV involvement and estimations, Client will send to BVIWC / BVCM an approval of ITP and time / cost estimation. As soon as time estimation is approved the information shall be entered in the Intervention Number List.

In the case of any Client’s comment BVCM will take immediately necessary steps to resubmit estimation until its final approval.

No inspection at works should start until necessary Client’s approvals are obtained. Similarly in the case of any variation BVPC / BVCC should inform in advance BVIWC about necessary additional time / cost foreseen with necessary explanation / supporting information to enable BVCM obtaining Client’s approval.



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3nd stage - Organization Flow Chart - Pre-manufacturing Meeting

CLIENT

BVCM orBVIWC


5: Time / Costestimation approval

4: Same as 3

3: Same as 2

6: Same as 5

Manufacturer

7: Same as 6

1: Pre-Insp. Meeting:♦ Manufacturing Schedule♦ Subcontractors♦ PO Requirements♦ ITP

2: Minutes of Meeting + ITPmarked up + Time / Costestimation




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Contract Execution - 4th stage: During inspection

BUREAU VERITAS TECHNICAL DUTIES

SCOPE OF WORK As and when directed by BVIWC, approved surveyor(s) of BVPC shall commence Quality Surveillance Services at Vendor in accordance with the scope of work set forth in approved Inspection Testing Plan and agreed earlier by all other parties.

Similarly to previous steps it is absolutely necessary that all attending surveyors are familiarized with all requirements of the Purchase Order and Bureau Veritas mission including reporting system. Any doubts should be clarified with BVIWC.. It is understood that BVPC surveyors perform Quality Surveillance / QA function including monitoring and witnessing critical inspections and tests for the certification purpose. However, Bureau Veritas mission should not be considered as a duplication or substitution of vendor / manufacturer QC nor repetition of EPC contractor work.

Within allotted time BVPC’s approved surveyors shall review and monitor performance of vendor’s QC according to approved ITP and more specifically their compliance to Purchase Order requirement.

BV shall ensure that applicable level of quality is met and that the Vendor is using only approved drawings and documentation.

Whenever applicable BVPC will coordinate together with BVCC and BVIWC the review of vendor design. Such a review will be carried either in Design Review Center in Paris or nearest Plan Approval Center within its delegations granted by BV Head Office. In all cases the location of design review should be agreed with BVCM / BVIWC.

Any deficiencies noted shall be immediately reported to Client through NCR system (Non Conformity Report).

REPORTS & CORRESPONDENCE The reporting system described in the Contract Execution Plan should be strictly followed by all involved BVPC’s.

The special attention should be paid to the content of the report (all contractually required information must be included in the report), periodicity of reporting as well as reporting delay. Whenever contractually required, the reports should be sent in electronic form by Lotus Notes / E-mail. In such a case BVCM has to include all the details of E-mail reporting in the Contract Execution Plan.

Typically BVPC shall submit the following reports:

Report of Inspection BVPC will issue an Inspection Report after each visit or on a weekly basis in case of several visits are performed in the same week (the form of Inspection Report is shown in Annex 1).

Typically an Inspection Reports, together with all relevant attachments such as manufacturer’s testing reports and related technical data sheets have to be submitted after the inspection completion, within 3 working days by fax or E.mail or within next week of the end of inspection in case of weekly inspection.



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As a minimum, Inspection report has to include the following information completed by the attending surveyor:

Front Page Number of Inspection Report and BV Intervention Number. All project references completed (Project/Contract Name, Ref. No., BV Client, etc.) All items of Purchase Order / Subject of Inspection completed. Whenever applicable

equipment identification numbers and quantities shall be specified. All reference documents (contract specifications and applicable engineering

documents listed, ITP, etc.). To complete Inspection "box" To list NSR’s issued during the reported period and all outstanding NCR’s for the

supply (NCR’s Nos. and date of issue). Main Conclusions / Remarks including description of Areas of Concern and

outstanding items. It must be noted that this "box" should contain main conclusions and all details of inspection(s) performed must be given on Continuation Sheet(s).

In the case of Interim Report the date or indication concerning the Next Visit should be completed.

Continuation Sheet (mandatory) All details of inspection performed including (list not exhaustive):

o Details of all inspection scope activities (inspection and test points) covered during the visit(s) and reference to approved ITP items.

o Details of each inspection results. Whenever possible the digital camera photographs and scanned documents should be attached.

o List of reviewed QC Records including Mill Test Certificates (material certificates) and status of the review of each document

o Description of Non-conformities (if any)

Status of Vendor’s design approval (if applicable)

Any additional information specified in the Contract Execution Plan (time spent during the reported period, cumulative time spent, forecast of time required till completion, etc.).

Name of inspector(s), signature, date, etc.

Dispatching of Inspection Report The fax Copy or E.mail Report will be sent to BVCC / BVIWC who will carry out immediate transmission to the Client. If required original report will be sent to BVIWC by mail.

Non-Conformity Report Whenever any significant problem or discrepancy associated with the materials / product / services / result of test, etc. is revealed, BVPC shall issue without delay a Non-Conformity Report (the form of NCR is shown in Annex 2).

It is to be noted that that Bureau Veritas duty is to report and follow up any Non-conformity until it is satisfactorily closed / approved. In general there are three stages of non-conformity:

1. Rising non-conformity. Bureau Veritas surveyor issues NCR whenever any quality related deviation is revealed. Precise description of non-conformity is to be inserted in “box 1” (Description and Localization of the Non-conformity). It must be noted that this description must specify reference of criteria against which non-conformity is issued e.g. Technical Specification, applicable Standard, ITP, etc.



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2. Manufacturer proposal. Upon receipt of the NCR it is a duty of manufacturer to propose corrective action. It is to be noted that the manufacturer may in fact propose three solutions; any remedial work to remove reported deviation, he can issue to the Client Concession Request (approve as it is) or equipment can be rejected in the case remedial action is not possible or cost effective. It must be emphasized, however, that in the case of Concession Request or the Client approval is required. Bureau Veritas surveyor shall give no concession of any kind without earlier Client formal written approval.

3. When correction action is implemented and verified Bureau Veritas surveyor shall report the result of verification and close non-conformity.

If any extra time for inspection is required (in addition to time approved by Client) due to non-conformity, BVPC through BVIWC / BVCM shall apply to the Client for approval of extra time giving all necessary explanations.

BVCC will register and follow up closure of all NCR's for his country and BVIWC for the whole contract.

Any outstanding NCR's shall be referenced in section NCR’s of each Inspection Report.

If required BVIWC will be submit periodically to the Client an updated NCR Register which should list all NCR‘s with current status, proposed corrective action and expected date of closing NCR.

Dispatching of Non-conformity Reports All NCR’s shall be sent by fax or E.mail within 24 hours by BVPC directly to the Client with copy to the Manufacturer, BVCC, BVIWC.

Time Sheet BVPC shall issue Time Sheets using form specified in the Contract Execution Plan at the required date e.g. after each visit, before the tenth day of each month, etc. To avoid any delay of payments a form and content of the Time Sheet specified in the Contract Execution Plan should be strictly followed by each BVPC. The typical Time Sheet shall include Project / Contract references, Intervention Number, Purchase Order No., approved by Client inspection time, time / expenses spent during reported period, total time / expenses spent to date against the estimate and forecast of time required till completion of inspection.

If required and specified in the Contract Execution Plan each BVCC shall additionally submit to BVIWC monthly updated summary Intervention List for his country including the following information:

Intervention Numbers Material Requisition / Purchase Order No. Vendor Name / Location. BV performing office and name of surveyor. Approved by Client time of inspection, travel time and travel expenses. Inspection time, travel time and travel expenses spent to date. Amount invoiced till date.

Dispatching of Time Sheet The Time Sheet with all required Attachments shall be submitted to BVIWC for further processing / transmission to the Client.



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Invoice BVPC shall issue invoices (properly supported with approved Time Sheets / Expense Justification) to BVIWC at the agreed intervals. All invoices should include only fees related to Time Sheets (time / expenses) approved by the BVIWC. All Time Sheets issued by BVPC for which no comment has been received shall be considered as “approved”.

BVIWC shall issue final invoices to the Client according to the Contract.

Dispatch of Invoice Internal Invoices shall be submitted by BVPC / BVCC to BVIWC according to Project Execution Plan and BV DFI procedures.

Final Invoices shall be dispatch to the Client by BVIWC according to the Contract.

CLIENT TECHNICAL DUTIES Client duties will include

Review of Inspection Reports and NCR’s (Non Conformity Reports) Resolution of queries and approval of Concession Requests made by manufactures Comment / approve NCR Corrective Actions. If no comment is received from the

Client proposed by the Manufacturer Corrective Action shall be considered as accepted by the Client.

Review of requests for additional time for inspection for BV if any. pproval of Time Sheets



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4th stage - Organization Flow Chart - During Inspection

CLIENT

BVCM orBVIWC


5: Time SheetApproval

4: Same as 3

6: Same as 5

3: Same as 2

Manufacturer

7: Same as 6 1: InspectionReport, Time Sheet

1: NCR Step 1 Description of non-conformity (Copy to Client, BVCC &,BVIWC)

2: NCR Step 2 Proposed CorrectiveAction and Client Approval (copy toBVPC)

3: Verification ofCorrective Action

4: NCR Step 3Closing of NCR

5: Same as 4




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Contract Execution - 5th stage: upon completion of inspection

BUREAU VERITAS FINAL DUTIES After completion of all activities related to each Purchase Order / Intervention BVPC shall issue the following documents:

End of Inspection After completion of all inspections according to the ITP and closing all non-conformities BVPC will issue an End of Inspection Note (the form of End of Inspection Note is shown in Annex 3). The End of Inspection Note should be issued before shipment of equipment.

In the "box" Conclusion / Remarks BVPC surveyor should confirm satisfactory completion of BV inspections and refer (list) issued BV Inspection Reports. This part should also include any Outstanding Items (Punch List) if previously approved by the Client.

Inspection Certificate Within maximum delay specified in the Contract Execution Plan but not later then two (2) weeks after completion of inspections BVPC shall issue Inspection Certificate (the form of Inspection Certificate is shown in Annex 4).

As a minimum the Inspection Certificate should include the following information:

Number of Inspection Certificate and BV Intervention Number All project / contract references (Project/Contract Name, Ref. No., BV Client, etc.) All references of Purchase Order / Subject of Inspection. Whenever applicable

equipment identification numbers and quantities. All reference documents (contract specifications and applicable engineering

documents listed, ITP, etc.). It must be noted that since BV will certify conformity of a supply with reference documents it is very important to complete properly this item.

Brief description of inspection performed including reference to issued Inspection Reports and End of Inspection Note

Status of Vendor’s design approval (if applicable) List of any Outstanding Items approved by the Client Conformity Statement Name of inspector(s), signature, date and BV stamp.

Dispatching of End of Inspection Note and Inspection Certificate The End of Inspection Note shall be issued by BVPC immediately after completion of inspection and closing all Non-Conformities. This document shall be faxed or E-mailed directly to the Client with copy to BVCC, BVIWC and manufacturer

The Inspection Certificate should be issued by BVPC to BVCC and BVIWC within the maximum delay specified in the Contract Execution Plan but not later then two (2) weeks after completion of inspections. The original Inspection Certificate issued by BVPC shall be mailed to BVIWC for transmittal to Client.

CLIENT TECHNICAL DUTIES The Client duties at this stage include:

Technical comments / clarification of pending issues Final approval of BV Intervention.



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5th stage - Organization Flow Chart - During Inspection

CLIENT

BVCM orBVIWC

BV CC(BV Country Co-

ordinator)

2: Inspection Certificate(original)

1: Inspection Certificate

BV PC(BV Performing Offices)1: End of Inspection Note (copy to

BVCC, BVIWC & Manufacturer)



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Appendices

Appendix 1: Inspection Report

IR AdE1601 e.doc Re-recorded separately as EPP/FOR 701 Inspection Report

Appendix 2: Non-Conformity Report

NCR Ad E 1602 b.doc Re-recorded separately as EPP/FOR 702 Non-Conformity Report

Appendix 3: End of Inspection Note

EIN Ad E 1603 b.doc Re-recorded separately as EPP/FOR 703 End of Inspection Note

Appendix 4: Inspection Certificate

IC Ad Me 9613b.doc Re-recorded separately as EPP/FOR 704 Inspection Certificate

eppgep 312 - project management & execution procedure

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