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Management of Medium-Size / Revamping Projects Oil & Gas Downstream Projects 9. Construction and Fabrication Management
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
Management of Medium-Size / Revamping Projects: course content I.
Introduction
II.
Preliminary Studies
III. Basic Engineering (or FEED)
IV. EPC Contracting V.
Organization and Engineering
VI. Procurement VII. HSE, Quality and Risk Management IX. Construction and Fabrication Management X.
Completion / Commissioning / Start-up / Closure
RC - PR GES - 08174_A_A - Rev.1 - 18/07/2013
© 2013 - IFP Training
VIII. Project Control (cost/schedule)
1
Construction Contracting Issues
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
2
Scope and objectives
Scope • Prefabrication of equipment and transportation to project site • Site preparation including civil works • Erection of main equipment, installation and connection
Objectives
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Assure prefabrication of equipment and transportation to the site • Confirm and implement the site construction strategy and organization • Ensure timely mobilization and control of field subcontractors • Achieve the construction challenges (Safety, Quality, Schedule, Cost) • Adequate communication with Owner, to prepare smooth handover
3
Construction challenges for Medium-Size and Revamp Projects
Availability of construction manpower: a medium-size project may still require up to 2000 workers at peak (typical in Middle East), with more than 30 different nationalities
Remote locations (South and North America, Australia, Deserts, Africa) with limited infrastructure and serious access difficulties
Local requirements often call for maximum use of local construction workforce (capability and productivity concerns)
Construction schedule pressure due to market pressure, weather issues, and shutdown durations for revamping projects © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
4
Fabrication contractors
Generally Fabrication / Integration Contractors are Yards / Shipyards
Fabrication cost (key issue) is continuously changing the landscape
Effective fabrication workshop are located sometime in Oil & Gas production areas • • • •
America: Mexico Gulf, Brazil, Venezuela Middle East: Arabic Gulf, Caspian Sea, Northern Russia Far East:, Korea, Singapore, Indonesia, Malaysia, Southern Thailand Europe: Northern England, Norway, Spain
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
… but this is sometimes very far from Project construction sites
5
Construction contractors
Construction Contractors are either locally established Companies or Companies operating in some areas, or relatively worldwide
In many countries, local companies are generally specialized by trades (Civil works, Structural Steel, Mechanical, E/I)
General Contractors exist in many locations
Direct Hiring for construction by EPC Contractor is a possibility
Experienced Construction personnel should be selected for
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Construction field supervision (extensive training may be required) • Revamping works during plant operation and shut-down
6
Unit-rate contracts
“Price schedule” or “unit rates” contracts: • extensively used for onshore Lump Sum projects to meet Project Schedule • Direct cost: unit price for each item of a detailed price schedule • Plus lump sum for indirect costs • The subcontractor guarantees a progress rate and completion dates
Flexibility advantage as:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Quantities cannot be known exactly until detail engineering is completed • The subcontractor can progress as long as work front is available, even if there are some delays for some activities of the construction schedule
7
Unit-rate contracts
The contract structure is prepared with a Master Subcontracting Package (MSP) and specifics are added for each contract type; e.g., typically: • Site preparation • Piling, Civil works, U/G piping, roads, Buildings (independent or together) • Structures fabrication • Piping pre-fabrication • Mechanical erection (equipment, piping, structures)
• Electrical works • Insulation, Painting (independent or together) RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Instrumentation works…
8
Transportation
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
9
Transportation
Minimize transportation cost / erection cost
Balance large lifting requirement cost versus advantage of direct delivery / erection onto foundations
Delivery of abnormal loads (heavy, large): • On-land Transportation studies to site foundation • Rigging study for erection
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
10
Heavy lifts & Transport on barge
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
320 tons Coke Drums
11
Heavy lifts - Rigging study
© 2013 - IFP Training
840 tons column RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
12
Modular approach
Modularization may save considerable time and/or cost for: • Projects in areas where construction manpower is limited and/or expensive
And for: • Revamping projects with modules which will be installed during shut-downs, instead of erecting corresponding facilities
Modularization may include all kinds of facilities:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• PAU: Process Assembled Units • PAR: Process Assembled Racks • Main constraints are due to transportation limits Discuss: what is the difference between modules and skids?
13
Modularized sulfur recovery unit
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
14
Module construction
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
15
Module transportation
Road transportation on low-bed trailers possible for smaller modules
Sea transport of modules requires
A MOF facility at or near site to berth barges or vessels for unloading: • RO/RO (Roll On – Roll Off) using SPMTs (Self Propelled Modular Transporters) • LO-LO (Lift On – Lift Off) using Heavy Lift Vessel cranes • Shore cranes
And a suitable hauling road from MOF to site.
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
Sea Transportation Vessels and SPMTs Transporters are in limited in numbers and should be hired well in advance (pre-commit before project sanction)
16
Module transportation + lifting
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
19
Site Construction Execution
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
20
Subcontractor selection process
Objective: select construction contractors who will ensure cost/schedule effective fabrication and construction
Surveys of potential contractors / pre-qualification criteria: • Motivated by the Project • Qualified for the works to be performed / similar successful experience • Qualified manpower resources available in the projected time window
Preparation of a list of acceptable Subcontractors
Competitive bidding (formal tendering procedure) leading to:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Acceptance of contract conditions • Good understanding of the scope • Most competitive rates
21
Strategic highlights
Construction / fabrication activities split by work packages, according to WBS: • By Process Units • Then, by discipline
Splitting allows to group several packages after analyzing bid responses
Splitting or not splitting is a trade-off between: • Securing enough contractor resources to provide reliable execution • Limiting the number of interfaces and of different contractors
Too many interfaces will make the project difficult to manage by Owner
Medium-size revamp projects, if too small, may not be split
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
22
Construction challenges for Revamping Projects
Construction must overcome general challenges, as discussed before: • • • •
Availability of construction resources, particularly manpower Remote or semi-remote locations Local Content requirements Schedule pressure from Project schedules shortening
But, revamping projects include works in live facilities (“pre-shutdown” works) and during facilities shutdowns (S/Ds); to be executed with specific methods:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
1. To protect safety of Site Operations & Project Construction personnel and integrity of the facilities with stringent work procedures: Site HSE Management System, PTW (Permit To Work) with detail Method Statements 2. To minimize facilities shutdown time due to project execution: prefabrication, modularization; use of planned « usual » S/D and of « given » S/D; controlled pre-shutdown cold works and « hot work » in live facilities 3. To tightly control execution time during S/Ds: use of a detailed planning & control system (“Job Cards”); to mobilize dedicated S/D construction teams (Project, Plant)
23
Skids: special concerns
Skids are often small (“EPC”) units; concerns for alignment with other facilities design, procurement & construction include: • Design capability of Vendor e.g. for instrumentation, electrical design to be carefully checked and controlled • Equipment standardization: consider free issue of components (instrumentation, minor piping parts, pump seals) • Process Control integration (PLCs: Programmable Controllers…): standardization, design, FATs, SATs
Logic
• Acceptance of “Vendors standards” in particular for utilities skids such as N2 production, instrument air, cooling systems © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
24
Execution Plan Highlights Occupational Health & Safety Plan, Security Plan
Organization, Management plan, Subcontractor administration
Accommodation, site offices, Accesses & Traffic, various Logistics
Construction methods, heavy lifts, prefabrication
Materials Management
Change Management
Field Engineering and Supervision, Schedule and Quality Control
Anticipation of Commissioning and Handover
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
25
Key Construction Management procedures
Interfaces Management
Roles and responsibilities between Subcontractors, and with Owner
Decision Process (changes, financial matters, safety issues)
Project quality documentation circulation, approval and follow-up
Communication presentations)
Deviation Requests authorities
Non-conformance procedure, near-misses, incident investigation
Change Order Procedure, Owner and Contractor rights, traceability
to
meetings,
construction
reporting, standards,
staff
approval
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
(periodic
28
Specific safety risks for projects in existing facilities
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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Construction HSE Prevention Plan components Subcontractors Commitment
Professional Competence (qualification and training of workers)
Safety Communication, Safety Information, Safety Meetings
Work Preparation and Organization, Risk Evaluation, Job Safety Analysis
Accidents / Near Miss Incidents Investigation and Reporting
Report and immediate correction of Unsafe Conditions and Behaviours
Field and System Audits, Continuous Improvement System
Permit To Work system for work in existing facilities
Safety awareness at site and at facilities used to work at site
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
Selection
Criteria,
Subcontractor
Management
© 2013 - IFP Training
30
Work permit types
Cold work permit
Hot work permit category 1 (involves positive source of ignition) • Naked flame, electric welding, grinding, hot air gun, electrical induction pre-heating / stress relieving
Hot work permit category 2 (involves potential source of ignition) • Dry grit shot blasting, cutting, chipping or wire brushing using air / hydraulic tools, use of electrical drills, use of equipment with portable diesel engines, use of non-certified electrical equipment, opening or working in live electrical junction boxes, use of radioactive sources, use of powered vehicles / cranes...
Enclosed space entry permit
Excavation permit
Radiography permit
Electrical isolation permit
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
31
Construction schedule drivers
Availability of up-to-date Engineering documents
Equipment and bulk timely delivery
Consistent progress by trades, consistent with planned progress
Workfront availability
Recovery measures in case of schedule slippage
Completion by systems, as soon as works complete © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
32
Construction schedule: taking advantage of shutdowns
Existing facilities are subject to maintenance S/D from time to time, to be considered when planning a project which requires stoppage of units or other facilities
Planned Shut-Downs (shown in the Plant; several years sliding operation calendar):
Unplanned Shut-Downs occur from time to time due to unexpected reasons within the existing facilities concerned by the project or upstream an provide possibility to perform “opportunity tie-ins”.
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Major Plant turn-around S/D for general inspection, repairs… (Typ. every 3 years; typ. duration several weeks) • Major unit turnaround S/D (if several trains or spared units or unit by-pass possible) • S/D for major overhaul of large unique equipment • Other intermediate shut-downs (e.g.: “hot path” inspection of GTs: typical every 8,000 oper. hrs; typ. duration 2 days) • S/D due to planned shut-downs of upstream facilities providing feedstock to the Plant (outage) • S/D for execution of other projects under way
33
Works during shutdown phase
Civil: foundations replacements and reinforcements (should be avoided due to duration)
Mechanical: equipment replacement (exchangers, vessels…); column trays and/or other internals replacement; rotating equipment modifications (pumps, compressors, GTS…); chemicals replacement (e.g. mole sieves); heaters modifications…
Piping completion: dismantling, remaining erection, remaining tie-ins, hydrotests, insulation, painting
Instrumentation completion: dismantling, remaining installation & connections; loop checks
Electricals completion: dismantling, remaining connections
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© 2013 - IFP Training
Dummy assembly of piping, structure, equipment internals, column trays… to avoid erection problems as far as possible; marking of items to be removed
34
Job cards
“Job Cards” sheets: a method to define and control revamping works (in particular S/D) by detail itemization of work & required resources, material & time
Work is defined by reference to Commissioning sub-systems; PIDs, GA drawings tie-ins list per discipline (showing work definition for ea. S/D)
Equipment card: new or modified equipment
Piping card: a piping network with limits defined by tie-ins, equipment nozzles or sub-systems limits (a commissioning sub-system includes 1 or several JC)
Job Cards identify applicable technical documents (PID, installation and dismantling dwgs, list of included isos & tie-ins), & include: Detail work description; sketches showing system dismantling, installation, tie-ins Safety requirements with required personnel Construction personnel & man-hours Construction equipment (scaffolding, crane, tools… with sketches for erection) Required material and Bill Of Materials by isometric Required QC
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• • • • • •
35
Job cards
The Job Card detail work split allows, ahead of Shutdown, to: • • • • •
Estimate man-hours by Card and globally required Plan/schedule Shutdown by Card, with manpower histograms Assign construction teams by geographical areas Use similar system for construction & commissioning Prepare materials by Card (piping spools are identified by their Card number, erection materials are bagged & tagged per Card)
During the Shutdown
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Progress report by Card and globally, daily • Quality control and punch list by Card • Better evaluation of completion progress
36
Typical Construction Schedule
Site Preparation Civil Works, Roads, Railways
Mechanical Completion
Structural Steel U/G Piping Installation Equipment Erection A/G Piping Erection
Generally on the critical path
U/G Electrical Cables
A/G Electrical Installation Electrical Tracing Instrumentation Painting - Insulation Precommissioning RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
Fire Proofing
37
Typical conditions for good piping erection
% of Isometrics Issued AFC*
% of Pipe Spools Available
% of Equipment Nozzles Available
Pipe Supports and Pipe Racks Available
Piping Material Supplied to Prefabrication Workshop
Construction Equipment Available
Construction Resources Mobilized
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
*AFC = Approved For Construction
38
Material management system
Major EPC Contractors have implemented an integrated Material Management System which incorporates all data on commodities requisitioned, bill of bulks materials and their procurement status.
Purchasing, expediting, inspection, shipping, receiving and site storage and handling information is loaded in the system, successively by engineering, procurement (expediting) and construction.
The system allows individual tracking of bulks items from MTOs to the site
At Site it allows to:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Continuously update the material warehouse inventory upon material receipts • Issue OS&D reports • Know the status of material deliveries and check or forecast availability of material for pre-fabrication or erection in order to plan the fabrication / construction or expedite lacking items (this can also be done at Home Office).
39
Monitoring of construction
Progress Measurement • Weekly Progress follow up by Work Quantities / Man-hours
Productivity Analysis
Man-hours Expenditure • Weekly man-hours follow up per trade
Trending and Forecasting • Compare Yields Man-hours per Work Quantities • Look for Trends • Permanently update the forecasted finishing date © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
40
Monitoring of construction Construction progress control allows to calculate a planned progress when implementing the system, and to calculate the physical progress and the forecast progress.
The construction work is divided into unitary works, all measured in the same unit (e.g. construction man-hours, using available estimated manhours and ratios).
These works are then aggregated into work item, category, construction trade, worksite
Achieved physical progress: work achieved / work planned. Checking of achieved items allows to calculate corresponding “earned man-hours”. Physical progress = earned man-hours / planned man-hours
“Productivity”: earned man hours / spent man hours
Reports are prepared weekly and monthly.
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
41
Temporary Construction Facilities
Adequate temporary facilities are essential: Owner/Contractor/Subcontractor offices with modern telecomm First Aid / Medical Aid Facilities Housing facilities for subcontractors, cafeteria, showers, toilets Construction Contractors Warehouse / Consumables Store Main Laydown Area Concrete Batching Plant (if on site) Piping site prefabrication area (in safe location) Dress-up area, Air coolers assembly area Plant & Vehicles maintenance facilities Painting & blasting workshop Hot insulation & cold insulation shops Access roads & gates
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• • • • • • • • • • • •
42
Construction quality control Detailed Quality Control Plans are prepared to check construction quality for all areas of construction by inspection and tests, as construction progresses and works are completed
Quality is controlled by the Quality Control teams (Construction Contractor, Main contractor, Company) which include:
Piping & mechanical inspectors
Civil works inspectors
Welding inspectors
E&I inspectors…
Non-conformance reports are prepared when works are not in conformity with specifications, drawings or construction specifications
Site Quality Control may also be controlled by an Independent Third Party, for instance for welding inspection
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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43
Reporting of non-conformances
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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Construction / Operation Interfaces
End of Construction • • • • •
Pressure Tests Static Mechanical Tests Precommissioning Mechanical Completion Handover to Commissioning Team
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
Operation • • • • • • • •
Operators Training Commissioning Start-up Nominal production Performance Tests Provisional Acceptance Mechanical Warranty Final Acceptance
Commissioning Manager
© 2013 - IFP Training
Construction Manager
45
Precommissioning
Precommissioning is the last phase of Construction (to be maximized): • Piping hydrotests
• Test Electrical Installation and Energize • Test Instrument Control Loops Continuity Tests • Align Rotating Equipment • Punch Lists − Prepared by both Construction and Operation Teams − Categorize Punch-List Items
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
A = Items to be completed before Mechanical Completion B = Items to be completed before Start-Up C = Items which can be completed post Start-Up D = Nice to have items, but not part of the scope, Items to be assessed later on their own merit by Operation
© 2013 - IFP Training
» » » »
46
Construction and Fabrication Management Key points to keep in mind
Always consider Safety and Health issues as first priority, and let it know
Set-up and maintain Trust between all field players
Clearly define roles and responsibilities (many players at the same time)
Assure effective and timely corrective actions
Maintain effective documentation system (issue and sharing)
Ensure effective implementation by each players of their own system for: • Safety and Health awareness • Quality control
Provide logistic site support for personnel (temporary facilities)
Assure clear Contract terms at the working level, no ambiguities
Give enough authority to the field organization (empowerment)
Keep close control on schedule – it will have a cost impact
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
47
Attachments I. Specific construction II. Pre-shutdown works © 2013 - IFP Training
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48
Attachment I Specific Construction
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
49
Execution Plan Highlights
Maximal weight acceptable for lifting, acceptable alternates
Coordination with local fabrication shop, load out procedures
Transportation procedures
Site installation and hook-up procedures, tie-ins
Equipment construction main procedures
Safety procedures © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
50
Typical work during turnaround
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
Exxon, Shell, BP, by courtesy
51
Turnaround work Exxon, Shell, BP, by courtesy
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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Refinery construction work Exxon, Shell, BP, by courtesy
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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Attachment II Pre-shutdown works
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
54
Works during pre-shutdown phase
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
Civil works: new buildings, foundations, structures; cables trenches (excavation may need to be done by hand; should be minimized: cable trays preferred) Mechanical: erection of new equipment on new foundations & structures; pre-dressing when possible; painting & insulation where possible Piping: all pre-fabrication; spool installation & erection on new equipment and on pipe racks, up to tie-ins; including supports; possibility of shop hydrotest with field welds 100% Gamma rayed Instrumentation: new cable trays, cable pulling (instrument cables trench closure), junction boxes, installation of instruments for new equipment / piping; connections of cables to new instruments Electricals: cable pulling (electrical trench closure), connections to new motors; new lighting & earthling Tie-ins which can be performed pre-shutdown: lines which may be individually shut-down, FW lines, hot taps; tie-ins during “given” S/Ds
55
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
Management of Medium-Size / Revamping Projects: course content I.
Introduction
II.
Preliminary Studies
III. Basic Engineering (or FEED)
IV. EPC Contracting V.
Organization and Engineering
VI. Procurement VII. HSE, Quality and Risk Management IX. Construction and Fabrication Management X.
Completion / Commissioning / Start-up / Closure
RC - PR GES - 08174_A_A - Rev.1 - 18/07/2013
© 2013 - IFP Training
VIII. Project Control (cost/schedule)
1
Construction Contracting Issues
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
2
Scope and objectives
Scope • Prefabrication of equipment and transportation to project site • Site preparation including civil works • Erection of main equipment, installation and connection
Objectives
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Assure prefabrication of equipment and transportation to the site • Confirm and implement the site construction strategy and organization • Ensure timely mobilization and control of field subcontractors • Achieve the construction challenges (Safety, Quality, Schedule, Cost) • Adequate communication with Owner, to prepare smooth handover
3
Construction challenges for Medium-Size and Revamp Projects
Availability of construction manpower: a medium-size project may still require up to 2000 workers at peak (typical in Middle East), with more than 30 different nationalities
Remote locations (South and North America, Australia, Deserts, Africa) with limited infrastructure and serious access difficulties
Local requirements often call for maximum use of local construction workforce (capability and productivity concerns)
Construction schedule pressure due to market pressure, weather issues, and shutdown durations for revamping projects © 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
4
Fabrication contractors
Generally Fabrication / Integration Contractors are Yards / Shipyards
Fabrication cost (key issue) is continuously changing the landscape
Effective fabrication workshop are located sometime in Oil & Gas production areas • • • •
America: Mexico Gulf, Brazil, Venezuela Middle East: Arabic Gulf, Caspian Sea, Northern Russia Far East:, Korea, Singapore, Indonesia, Malaysia, Southern Thailand Europe: Northern England, Norway, Spain
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
… but this is sometimes very far from Project construction sites
5
Construction contractors
Construction Contractors are either locally established Companies or Companies operating in some areas, or relatively worldwide
In many countries, local companies are generally specialized by trades (Civil works, Structural Steel, Mechanical, E/I)
General Contractors exist in many locations
Direct Hiring for construction by EPC Contractor is a possibility
Experienced Construction personnel should be selected for
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Construction field supervision (extensive training may be required) • Revamping works during plant operation and shut-down
6
Unit-rate contracts
“Price schedule” or “unit rates” contracts: • extensively used for onshore Lump Sum projects to meet Project Schedule • Direct cost: unit price for each item of a detailed price schedule • Plus lump sum for indirect costs • The subcontractor guarantees a progress rate and completion dates
Flexibility advantage as:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Quantities cannot be known exactly until detail engineering is completed • The subcontractor can progress as long as work front is available, even if there are some delays for some activities of the construction schedule
7
Unit-rate contracts
The contract structure is prepared with a Master Subcontracting Package (MSP) and specifics are added for each contract type; e.g., typically: • Site preparation • Piling, Civil works, U/G piping, roads, Buildings (independent or together) • Structures fabrication • Piping pre-fabrication • Mechanical erection (equipment, piping, structures)
• Electrical works • Insulation, Painting (independent or together) RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• Instrumentation works…
8
Transportation
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
9
Transportation
Minimize transportation cost / erection cost
Balance large lifting requirement cost versus advantage of direct delivery / erection onto foundations
Delivery of abnormal loads (heavy, large): • On-land Transportation studies to site foundation • Rigging study for erection
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
10
Heavy lifts & Transport on barge
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
320 tons Coke Drums
11
Heavy lifts - Rigging study
© 2013 - IFP Training
840 tons column RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
12
Modular approach
Modularization may save considerable time and/or cost for: • Projects in areas where construction manpower is limited and/or expensive
And for: • Revamping projects with modules which will be installed during shut-downs, instead of erecting corresponding facilities
Modularization may include all kinds of facilities:
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
© 2013 - IFP Training
• PAU: Process Assembled Units • PAR: Process Assembled Racks • Main constraints are due to transportation limits Discuss: what is the difference between modules and skids?
13
Modularized sulfur recovery unit
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
14
Module construction
© 2013 - IFP Training
RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
15
Module transportation
Road transportation on low-bed trailers possible for smaller modules
Sea transport of modules requires
A MOF facility at or near site to berth barges or vessels for unloading: • RO/RO (Roll On – Roll Off) using SPMTs (Self Propelled Modular Transporters) • LO-LO (Lift On – Lift Off) using Heavy Lift Vessel cranes • Shore cranes
And a suitable hauling road from MOF to site.
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Sea Transportation Vessels and SPMTs Transporters are in limited in numbers and should be hired well in advance (pre-commit before project sanction)
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Module transportation + lifting
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Site Construction Execution
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Subcontractor selection process
Objective: select construction contractors who will ensure cost/schedule effective fabrication and construction
Surveys of potential contractors / pre-qualification criteria: • Motivated by the Project • Qualified for the works to be performed / similar successful experience • Qualified manpower resources available in the projected time window
Preparation of a list of acceptable Subcontractors
Competitive bidding (formal tendering procedure) leading to:
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• Acceptance of contract conditions • Good understanding of the scope • Most competitive rates
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Strategic highlights
Construction / fabrication activities split by work packages, according to WBS: • By Process Units • Then, by discipline
Splitting allows to group several packages after analyzing bid responses
Splitting or not splitting is a trade-off between: • Securing enough contractor resources to provide reliable execution • Limiting the number of interfaces and of different contractors
Too many interfaces will make the project difficult to manage by Owner
Medium-size revamp projects, if too small, may not be split
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Construction challenges for Revamping Projects
Construction must overcome general challenges, as discussed before: • • • •
Availability of construction resources, particularly manpower Remote or semi-remote locations Local Content requirements Schedule pressure from Project schedules shortening
But, revamping projects include works in live facilities (“pre-shutdown” works) and during facilities shutdowns (S/Ds); to be executed with specific methods:
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1. To protect safety of Site Operations & Project Construction personnel and integrity of the facilities with stringent work procedures: Site HSE Management System, PTW (Permit To Work) with detail Method Statements 2. To minimize facilities shutdown time due to project execution: prefabrication, modularization; use of planned « usual » S/D and of « given » S/D; controlled pre-shutdown cold works and « hot work » in live facilities 3. To tightly control execution time during S/Ds: use of a detailed planning & control system (“Job Cards”); to mobilize dedicated S/D construction teams (Project, Plant)
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Skids: special concerns
Skids are often small (“EPC”) units; concerns for alignment with other facilities design, procurement & construction include: • Design capability of Vendor e.g. for instrumentation, electrical design to be carefully checked and controlled • Equipment standardization: consider free issue of components (instrumentation, minor piping parts, pump seals) • Process Control integration (PLCs: Programmable Controllers…): standardization, design, FATs, SATs
Logic
• Acceptance of “Vendors standards” in particular for utilities skids such as N2 production, instrument air, cooling systems © 2013 - IFP Training
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Execution Plan Highlights Occupational Health & Safety Plan, Security Plan
Organization, Management plan, Subcontractor administration
Accommodation, site offices, Accesses & Traffic, various Logistics
Construction methods, heavy lifts, prefabrication
Materials Management
Change Management
Field Engineering and Supervision, Schedule and Quality Control
Anticipation of Commissioning and Handover
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Key Construction Management procedures
Interfaces Management
Roles and responsibilities between Subcontractors, and with Owner
Decision Process (changes, financial matters, safety issues)
Project quality documentation circulation, approval and follow-up
Communication presentations)
Deviation Requests authorities
Non-conformance procedure, near-misses, incident investigation
Change Order Procedure, Owner and Contractor rights, traceability
to
meetings,
construction
reporting, standards,
staff
approval
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(periodic
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Specific safety risks for projects in existing facilities
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Construction HSE Prevention Plan components Subcontractors Commitment
Professional Competence (qualification and training of workers)
Safety Communication, Safety Information, Safety Meetings
Work Preparation and Organization, Risk Evaluation, Job Safety Analysis
Accidents / Near Miss Incidents Investigation and Reporting
Report and immediate correction of Unsafe Conditions and Behaviours
Field and System Audits, Continuous Improvement System
Permit To Work system for work in existing facilities
Safety awareness at site and at facilities used to work at site
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Selection
Criteria,
Subcontractor
Management
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Work permit types
Cold work permit
Hot work permit category 1 (involves positive source of ignition) • Naked flame, electric welding, grinding, hot air gun, electrical induction pre-heating / stress relieving
Hot work permit category 2 (involves potential source of ignition) • Dry grit shot blasting, cutting, chipping or wire brushing using air / hydraulic tools, use of electrical drills, use of equipment with portable diesel engines, use of non-certified electrical equipment, opening or working in live electrical junction boxes, use of radioactive sources, use of powered vehicles / cranes...
Enclosed space entry permit
Excavation permit
Radiography permit
Electrical isolation permit
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Construction schedule drivers
Availability of up-to-date Engineering documents
Equipment and bulk timely delivery
Consistent progress by trades, consistent with planned progress
Workfront availability
Recovery measures in case of schedule slippage
Completion by systems, as soon as works complete © 2013 - IFP Training
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Construction schedule: taking advantage of shutdowns
Existing facilities are subject to maintenance S/D from time to time, to be considered when planning a project which requires stoppage of units or other facilities
Planned Shut-Downs (shown in the Plant; several years sliding operation calendar):
Unplanned Shut-Downs occur from time to time due to unexpected reasons within the existing facilities concerned by the project or upstream an provide possibility to perform “opportunity tie-ins”.
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• Major Plant turn-around S/D for general inspection, repairs… (Typ. every 3 years; typ. duration several weeks) • Major unit turnaround S/D (if several trains or spared units or unit by-pass possible) • S/D for major overhaul of large unique equipment • Other intermediate shut-downs (e.g.: “hot path” inspection of GTs: typical every 8,000 oper. hrs; typ. duration 2 days) • S/D due to planned shut-downs of upstream facilities providing feedstock to the Plant (outage) • S/D for execution of other projects under way
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Works during shutdown phase
Civil: foundations replacements and reinforcements (should be avoided due to duration)
Mechanical: equipment replacement (exchangers, vessels…); column trays and/or other internals replacement; rotating equipment modifications (pumps, compressors, GTS…); chemicals replacement (e.g. mole sieves); heaters modifications…
Piping completion: dismantling, remaining erection, remaining tie-ins, hydrotests, insulation, painting
Instrumentation completion: dismantling, remaining installation & connections; loop checks
Electricals completion: dismantling, remaining connections
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Dummy assembly of piping, structure, equipment internals, column trays… to avoid erection problems as far as possible; marking of items to be removed
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Job cards
“Job Cards” sheets: a method to define and control revamping works (in particular S/D) by detail itemization of work & required resources, material & time
Work is defined by reference to Commissioning sub-systems; PIDs, GA drawings tie-ins list per discipline (showing work definition for ea. S/D)
Equipment card: new or modified equipment
Piping card: a piping network with limits defined by tie-ins, equipment nozzles or sub-systems limits (a commissioning sub-system includes 1 or several JC)
Job Cards identify applicable technical documents (PID, installation and dismantling dwgs, list of included isos & tie-ins), & include: Detail work description; sketches showing system dismantling, installation, tie-ins Safety requirements with required personnel Construction personnel & man-hours Construction equipment (scaffolding, crane, tools… with sketches for erection) Required material and Bill Of Materials by isometric Required QC
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• • • • • •
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Job cards
The Job Card detail work split allows, ahead of Shutdown, to: • • • • •
Estimate man-hours by Card and globally required Plan/schedule Shutdown by Card, with manpower histograms Assign construction teams by geographical areas Use similar system for construction & commissioning Prepare materials by Card (piping spools are identified by their Card number, erection materials are bagged & tagged per Card)
During the Shutdown
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• Progress report by Card and globally, daily • Quality control and punch list by Card • Better evaluation of completion progress
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Typical Construction Schedule
Site Preparation Civil Works, Roads, Railways
Mechanical Completion
Structural Steel U/G Piping Installation Equipment Erection A/G Piping Erection
Generally on the critical path
U/G Electrical Cables
A/G Electrical Installation Electrical Tracing Instrumentation Painting - Insulation Precommissioning RC - PR GES - 08175_A_A - Rev. 1 - 18/07/2013
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Fire Proofing
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Typical conditions for good piping erection
% of Isometrics Issued AFC*
% of Pipe Spools Available
% of Equipment Nozzles Available
Pipe Supports and Pipe Racks Available
Piping Material Supplied to Prefabrication Workshop
Construction Equipment Available
Construction Resources Mobilized
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*AFC = Approved For Construction
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Material management system
Major EPC Contractors have implemented an integrated Material Management System which incorporates all data on commodities requisitioned, bill of bulks materials and their procurement status.
Purchasing, expediting, inspection, shipping, receiving and site storage and handling information is loaded in the system, successively by engineering, procurement (expediting) and construction.
The system allows individual tracking of bulks items from MTOs to the site
At Site it allows to:
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• Continuously update the material warehouse inventory upon material receipts • Issue OS&D reports • Know the status of material deliveries and check or forecast availability of material for pre-fabrication or erection in order to plan the fabrication / construction or expedite lacking items (this can also be done at Home Office).
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Monitoring of construction
Progress Measurement • Weekly Progress follow up by Work Quantities / Man-hours
Productivity Analysis
Man-hours Expenditure • Weekly man-hours follow up per trade
Trending and Forecasting • Compare Yields Man-hours per Work Quantities • Look for Trends • Permanently update the forecasted finishing date © 2013 - IFP Training
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Monitoring of construction Construction progress control allows to calculate a planned progress when implementing the system, and to calculate the physical progress and the forecast progress.
The construction work is divided into unitary works, all measured in the same unit (e.g. construction man-hours, using available estimated manhours and ratios).
These works are then aggregated into work item, category, construction trade, worksite
Achieved physical progress: work achieved / work planned. Checking of achieved items allows to calculate corresponding “earned man-hours”. Physical progress = earned man-hours / planned man-hours
“Productivity”: earned man hours / spent man hours
Reports are prepared weekly and monthly.
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Temporary Construction Facilities
Adequate temporary facilities are essential: Owner/Contractor/Subcontractor offices with modern telecomm First Aid / Medical Aid Facilities Housing facilities for subcontractors, cafeteria, showers, toilets Construction Contractors Warehouse / Consumables Store Main Laydown Area Concrete Batching Plant (if on site) Piping site prefabrication area (in safe location) Dress-up area, Air coolers assembly area Plant & Vehicles maintenance facilities Painting & blasting workshop Hot insulation & cold insulation shops Access roads & gates
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• • • • • • • • • • • •
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Construction quality control Detailed Quality Control Plans are prepared to check construction quality for all areas of construction by inspection and tests, as construction progresses and works are completed
Quality is controlled by the Quality Control teams (Construction Contractor, Main contractor, Company) which include:
Piping & mechanical inspectors
Civil works inspectors
Welding inspectors
E&I inspectors…
Non-conformance reports are prepared when works are not in conformity with specifications, drawings or construction specifications
Site Quality Control may also be controlled by an Independent Third Party, for instance for welding inspection
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Reporting of non-conformances
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Construction / Operation Interfaces
End of Construction • • • • •
Pressure Tests Static Mechanical Tests Precommissioning Mechanical Completion Handover to Commissioning Team
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Operation • • • • • • • •
Operators Training Commissioning Start-up Nominal production Performance Tests Provisional Acceptance Mechanical Warranty Final Acceptance
Commissioning Manager
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Construction Manager
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Precommissioning
Precommissioning is the last phase of Construction (to be maximized): • Piping hydrotests
• Test Electrical Installation and Energize • Test Instrument Control Loops Continuity Tests • Align Rotating Equipment • Punch Lists − Prepared by both Construction and Operation Teams − Categorize Punch-List Items
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A = Items to be completed before Mechanical Completion B = Items to be completed before Start-Up C = Items which can be completed post Start-Up D = Nice to have items, but not part of the scope, Items to be assessed later on their own merit by Operation
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» » » »
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Construction and Fabrication Management Key points to keep in mind
Always consider Safety and Health issues as first priority, and let it know
Set-up and maintain Trust between all field players
Clearly define roles and responsibilities (many players at the same time)
Assure effective and timely corrective actions
Maintain effective documentation system (issue and sharing)
Ensure effective implementation by each players of their own system for: • Safety and Health awareness • Quality control
Provide logistic site support for personnel (temporary facilities)
Assure clear Contract terms at the working level, no ambiguities
Give enough authority to the field organization (empowerment)
Keep close control on schedule – it will have a cost impact
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Attachments I. Specific construction II. Pre-shutdown works © 2013 - IFP Training
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Attachment I Specific Construction
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Execution Plan Highlights
Maximal weight acceptable for lifting, acceptable alternates
Coordination with local fabrication shop, load out procedures
Transportation procedures
Site installation and hook-up procedures, tie-ins
Equipment construction main procedures
Safety procedures © 2013 - IFP Training
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Typical work during turnaround
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Exxon, Shell, BP, by courtesy
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Turnaround work Exxon, Shell, BP, by courtesy
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Refinery construction work Exxon, Shell, BP, by courtesy
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Attachment II Pre-shutdown works
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Works during pre-shutdown phase
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Civil works: new buildings, foundations, structures; cables trenches (excavation may need to be done by hand; should be minimized: cable trays preferred) Mechanical: erection of new equipment on new foundations & structures; pre-dressing when possible; painting & insulation where possible Piping: all pre-fabrication; spool installation & erection on new equipment and on pipe racks, up to tie-ins; including supports; possibility of shop hydrotest with field welds 100% Gamma rayed Instrumentation: new cable trays, cable pulling (instrument cables trench closure), junction boxes, installation of instruments for new equipment / piping; connections of cables to new instruments Electricals: cable pulling (electrical trench closure), connections to new motors; new lighting & earthling Tie-ins which can be performed pre-shutdown: lines which may be individually shut-down, FW lines, hot taps; tie-ins during “given” S/Ds
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