Construction Execution Plan1

Scope of Work Guidelines for Preparing a
Construction Execution Plan

Prepared for

International Construction Consulting, LLC

Revision 0
19 February, 2002

by

Greg Lamberson

Record of Revisions

Rev. Date Description Prepared
By
Checked
By
Client
Accept
Approved
By
0
Guidelines for Construction
Execution Plan Preparation
FGL

International Construction Consulting, LLC CEP Preparation Guidelines

Scope of Work Guidelines
for Preparing the Construction Execution Plan

Table of Contents
1.0 CONSTRUCTION EXECUTION PLAN OVERVIEW............................................ 4
2.0 CONSTRUCTION EXECUTION PLAN DETAILS ................................................ 4
2.1 Executive Summary................................................................................... 4
2.2 Introduction................................................................................................ 4
2.3 Temporary Facilities .................................................................................. 6
2.4 Construction Plan ...................................................................................... 8
ATTACHMENT 1: SAMPLE TABLE OF CONTENTS ................................................... 11
ATTACHMENT 2: PIPELINE PRODUCTIVITY ANALYSIS SAMPLE........................... 12
APPENDIX 1: EXAMPLES OF APPENDICES OF TABLES TO BE INCLUDED ......... 13
APPENDIX 2: EXAMPLES OF PROCEDURES ............................................................ 15

Page 3 of 3
Scope of Work Guidelines for Preparing International Construction Consulting, LLC
The Construction Execution Plan Greg Lamberson



1.0 Construction Execution Plan Overview
The Construction Execution Plan (CEP) is a critical part of the Project
Execution Plan and is a driver for many of the engineering and design
aspects of the project. The CEP will address all aspects of the
construction execution process in a practical and understandable
document to support the overall execution philosophy and schedule. An
early start on this work is needed as part of the contractors engineering
work effort. This document provides some guidance on the Owners
expectations for the contents of an acceptable first draft of the CEP.
A sample Table of Contents is included to provide an outline of the level
of detail expected, see Attachment 1.
2.0 Construction Execution Plan Details
2.1 Executive Summary
The Executive Summary is a high level summary describing the key
elements of the CEP. It should be suitable for a management level
audience who may not be familiar with the project. It should be essentially
stand-alone, such that it could be separated from the CEP and circulated
independently. Other than possibly referring to the main report as a source
of additional information, the Executive Summary does not refer the
reader to specific sections of the CEP.
The Executive Summary should be brief. A reasonable length for the
Executive Summary is one to two pages.
2.2 Introduction
The Introduction Portion of the CEP should present a very broad overview
of the scope of work. As well, the Introduction should address broad areas
such as:
Construction Execution Philosophy. Describes how the work is
broken down, for example weather windows, geotechnical
considerations, access restraints, and the rationale used. The
number and type of spreads to be used should be spelled out.
Overall strategies and construction modes to be used to meet the
project schedule should be stated.

Page 4 of 4

Project Contracting Strategy. Should describe the project
construction contracting strategy that formed the underlying basis
for the CEP. This should include portions of the work to be sub-
contracted, who will perform the work, how will they be supervised,


managed and integrated into the Contractors organization. It should
be stated implicitly that the Contractor will be responsible for each
subcontractors compliance with all of the project specifications,
codes, etc.
Project Office. Assumptions should be stated regarding the Project
office, its location, staffing, its start up date and its demobilization
date.
Project Organization. All assumptions about the project
organization, staffing/rotation should be detailed. A copy of the
organizational chart should be included as an appendix, showing
the organization and reporting for construction management as well
as field activities and how they report to the contractors
Construction Management Team (CMT) and to the Project
Management Team (PMT).
Project Schedule. Should be a reasonably detailed schedule (level
3) showing the seasons (summer/winter) and generally what
activities will be engaged. A brief narrative should be included that
explains how the schedule flows and any assumptions that have
been made.
Construction Overview. This should be an overview, with a
reasonable amount of detail, where each of the respective spreads
will be working throughout the course of the project up to
completion. Winter work areas should be detailed. Camp locations
and support to complement each of the spreads activities should be
included. Any specific logistical constraints should be noted along
with mitigations and contingency plans.
Codes and Standards. This section should reiterate that the
contractor will construct the pipeline system according to the codes
and standards as set out in the Invitation to Tender (ITT).
Land Requirements. This should cover the ROW width and how the
work will be accomplished within the ROW boundaries; i.e., snow
removal, timber stacking, ice road construction, spoil and topsoil
management, etc. Further any additional temporary land
requirements that will needed for construction such as:
At the beginning and end of each construction spread for spread
mobilization and demobilization;
For stringing truck turnaround areas,

Page 5 of 5



Where the pipeline crosses under buried features (i.e., foreign
pipelines, utility lines, fault crossings, etc.);
On both sides of roads, railroads, and water bodies (rivers,
creeks, bogs, wetlands, etc);
Where the push/pull technique will be used to cross wetlands;
and
Other areas where extra space for spoils storage and
construction activities are needed

2.3 Temporary Facilities
There are numerous temporary facilities that must be constructed to
support pipeline construction. These should be detailed. Some examples
of Temporary Facilities include:
Camps. Camp locations should be indicated, including the hectares
needed. Camp utilization should be detailed, for example will
several cores be used per spread and the sleepers leap-frogged as
crews progress.
Camp management philosophy should be spelled out, quality of
meals and service, and how re-supply of consumables, fire,
medical emergencies, security, fuel, etc. are to be managed.
Further, details of the camp infrastructure should be provided,
including:
Kitchen/Dining units
Recreation units
Laundry unit
Dormitory units
Office units
Warehouses
Equipment shops
Potable water treatment unit
Sewage treatment unit
Solid waste treatment (incinerators)

Page 6 of 6



Propane storage
Gasoline/Diesel storage
Medical aid facilities
Fire fighting equipment
Power plant
Parking for equipment and vehicles
Airports/Airstrips/Helipads. The existing airports and airstrips that
are planned to be used should be indicated along with any required
upgrades that need to be made. All helipad locations or a
philosophy for their use should be spelled out. For example, will
each camp location have a helipad? Will any be located at
intermediate or special locations, etc? If helicopters will be used, a
brief Helicopter Management Plan overview should be included as
an Appendix.
Pipe Storage and Material Storage Yards. The location of each pipe
storage yard or material storage site should be noted, including
how they will be constructed and eventually restored. As well, the
distances between each and the estimated average road speed
used for arriving at the number of transport trucks required.
Co-use of Existing Facilities. In addition to any existing facilities that
are planned to be used, this will also include any synergies within
the EPC-2 contractors execution teams, i.e shared camps,
organization, medical services, etc.
Access Roads. Details should be provided regarding the use of
existing access roads and any planned upgrades; i.e., grading,
bridges, etc. Further, any new access roads that will be
constructed should be detailed as to location and method of
construction, the resources needed to perform the work and where
those resources will be acquired from for the construction effort and
utilized after (i.e., will they be used for road maintenance or
incorporated into contractors work crews?). The planned use of the
pipeline ROW for transportation and general movements should be
explained. Lastly, details of how these roads and accesses will be
maintained should be indicated, including dust control, drainage
schemes, snow removal, etc.

Page 7 of 7



It should be expected there will be a certain amount of repair and
upgrades to existing roads and bridges. The heavy weight and
track type equipment will require some upgrading prior to
mobilization and to facilitate movement of equipment from site to
site. In addition, after work has been completed, some areas will
require repair and replacement to restore areas to their original
intended use, or in some cases to be removed completely.
The CEP should identify the upgrades and new construction
required as fully and as possible as these works are critical to the
successful execution and completion of the work.

2.4 Construction Plan
There should be a short introduction that explains the general sequencing
of the work crews. After the introduction, the following points should be
addressed:
Estimated production rates for each distinct section of the work
should be provided as well as a rationale for the expected
productivity. A full productivity work up could be included as an
Appendix. See attached for an example.
The down time assumption that is used in the CEP should be
based on benchmark data from the regions crossed by this
pipeline. Blanket, undocumented assumptions are unacceptable as
a basis for the CEP. The lay rate calculation methodology shown in
the attached includes a method for accounting for weather down
time.
A detailed section or paragraph should be included for each work
crew (see Table of Contents for examples of crews used).
Sufficient detail should be provided for each crew, what their
respective responsibilities are, how they will perform their
responsibilities, and any special requirements to be performed by
each. For example, it should be shown where concrete coated pipe
will be used, where and how it will be coated, who will coat it, how it
will be transported to the work site. If it is to be performed on site,
provisions for environmental controls should be stipulated.

Page 8 of 8

Special Construction areas should be addressed in detail, such as
railroad crossings, river crossings, wetlands, faults, etc. Further it
should be noted in general how these are to be performed and
what crews and resources will be used. Many of the special


construction areas will require site-specific construction plans,
these areas should be noted and it should be stated that additional
plans will be developed and submitted for approval prior to
performing the work.
Water crossings should be addressed in detail. The expected
crossing methods as well as special requirements that will be
incorporated, i.e., preparation of approaches, fueling, restoration,
etc. Again, many of the water crossings will require site-specific
construction plans, these crossings should be noted and it should
be stated that additional plans will be developed and submitted for
approval prior to performing the work.
The following functions should be addressed in detail of how the work
function will be performed and how they will interface with the main
construction spread:
Construction Field Support. This should detail the support that will
be provided to each spread and should include personnel
(mechanics, carpenters, fabricators, etc.), facilities (warehouse,
mechanics shops, tires shops, etc.), and supervision.
Construction Equipment and Rolling Stock. This should be an
overview of the Contractors philosophy regarding equipment and
rolling stock maintenance, repairs, contingencies, etc.
Mainline Block Valves (MLVs) and Launchers/Receivers. It should
be stated how and where the MLVs and launchers./receivers will
be fabricated, tested, transported, protected, and installed. Details
as to who will install these appurtenances, when they will be
installed and what sequence should be shown.
Corrosion Protection System (CP). It should be clear how the
installation of the CP system will be accomplished, who will do the
work and how they will interface with mainline construction.
Fiber Optic Cable (FOC). It should be clear how the installation of
the FOC system will be accomplished, who will do the work and
how they will interface with mainline construction.
Environmental Compliance. This is not meant to be an
Environmental Management Plan. This should detail the
contractors environmental monitoring and mitigation methods and
the resources that will be provided to accomplish the tasks.

Page 9 of 9



Included should be training of personnel, how the inspection will be
accomplished and what the reporting functions are.
Quality Control (QC) Inspection. This section is not meant to be a
Quality Control Plan or a description of inspection procedures.
The general activities for QC inspection should be shown; i.e.,
assuring the work is done according to the procedures,
specifications and drawings; and the crews that will have dedicated
QC inspectors. The reporting requirements should be clearly
indicated. Any additional responsibilities the QC inspectors will be
expected to perform should be noted, such as reporting on the
physical progress of the construction crews.
Security. This section is not meant to be a Security Plan. It should
provide an overview of the scope of the security to be provided and
the organization, with reporting requirements, which will be used to
carry out the work.
Labor Employment and Training. Complete details of the
contractors training program will be included in the Socioeconomic
Plan, therefore this section is meant to provide an overall
understanding of how construction will interface and coordinate with
the Training Manager for the timely acquirement of the required
quantities of the skill levels needed.

Page 10 of 10



Attachment 1: Sample Table of Contents

Page 11 of 11

Scope of Work Guidelines for Preparing the

Typical Table of Contents

EXECUTIVE SUMMARY .............................................................5
1.0 INTRODUCTION..................................................................6
1.1. GENERAL...................................................................................................................... 6
1.1.1. Construction Execution Philosophy .................................................................................... 6
1.1.2. Project Contracting Strategy............................................................................................... 7
1.1.3. Project Office....................................................................................................................... 7
1.1.4. Project Organization............................................................................................................ 8
1.1.5. Project Schedule................................................................................................................. 8
1.1.6. Pipeline Construction Spread Overview........................................................................... 11
1.2. CODES AND STANDARDS............................................................................................. 15
1.3. LAND REQUIREMENTS........................................................................................... 15
1.3.1. Construction Right-of-Way (ROW).................................................................................... 15
1.3.2. Pushouts ........................................................................................................................... 17
1.3.3. Temporary Extra Workspaces .......................................................................................... 18
2.0 PIPELINE TEMPORARY FACILITIES................................................21
2.1. CAMPS ....................................................................................................................... 21
2.1.1. Medical and Fire................................................................................................................ 22
2.1.2. Security ............................................................................................................................. 23
2.1.3. Camp Infrastructure Facilities ........................................................................................... 24
2.2. AIRPORTS, AIRSTRIPS, HELIPADS................................................................................ 27
2.3. PIPE COATING YARDS ................................................................................................. 28
2.4. PIPE STORAGE YARDS (PSYS) ................................................................................... 28
2.5. MATERIAL SITES (MS)................................................................................................. 30
2.6. USE (OR CO-USE) OF EXISTING FACILITIES................................................................... 32
3.0 PIPELINE CONSTRUCTION PLAN...................................................34
3.1. GENERAL.................................................................................................................... 34
3.2. ACCESS ROADS.......................................................................................................... 35
3.2.1. New Access Road Construction ....................................................................................... 35
3.2.2. Gravel Access Roads........................................................................................................ 36
3.2.3. Ice Access Roads ............................................................................................................. 38
3.3. PRODUCTION / LAY RATE ............................................................................................ 39
3.4. DOWN TIME ................................................................................................................ 39
3.5. GENERAL CONSTRUCTION ACTIVITIES.......................................................................... 40
3.5.1. ROW Staking and Surveying ............................................................................................ 40
3.5.2. Fencing and Clearing........................................................................................................ 41
3.5.3. Topsoil Stripping ............................................................................................................... 43
3.5.4. Cultivated Land ................................................................................................................. 43
3.5.5. Summer Graded ROW...................................................................................................... 44
3.5.6. Workpad............................................................................................................................ 44
3.5.7. Winter Construction........................................................................................................... 45
3.5.8. Winter and Summer ROW................................................................................................ 46
3.5.9. Ice or Snow Pads.............................................................................................................. 47
3.5.10. Frost Packing .................................................................................................................... 53
3.5.11. Winter Grading.................................................................................................................. 54
3.5.12. Summer Grading............................................................................................................... 54
3.5.13. Strengthening.................................................................................................................... 55
3.5.14. Workpad............................................................................................................................ 56
3.5.15. Temporary Erosion Control ............................................................................................... 57
3.5.16. Rock and Frozen Soils Blasting........................................................................................ 59
3.5.17. Stringing............................................................................................................................ 61

Page 3 of 132
Scope of Work Guidelines for Preparing
The Construction Execution Plan


3.5.18. Bending and Set-Up.......................................................................................................... 61
3.5.19. Line-Up and Welding......................................................................................................... 62
3.5.20. Non-Destructive Weld Examination .................................................................................. 64
3.5.21. Field Joint Coating ............................................................................................................ 66
3.5.22. Ditch Excavation ............................................................................................................... 66
3.5.23. Bedding............................................................................................................................. 72
3.5.24. Lowering-In ....................................................................................................................... 73
3.5.25. Buoyancy Control.............................................................................................................. 73
3.5.26. Ditch Breakers, Padding and Backfill................................................................................ 75
3.5.27. Tie - Ins ............................................................................................................................. 78
3.5.28. ROW Cleanup, Erosion Control and Restoration ............................................................. 79
3.5.29. Cleaning, Hydrotesting and Drying ................................................................................... 83
3.6. SPECIAL CONSTRUCTION AREAS ................................................................................. 86
3.6.1. Road and Railroad Crossings........................................................................................... 86
3.6.2. Foreign Pipeline and Utility Crossings .............................................................................. 87
3.6.3. Active Cropland with Tile Drainage Systems.................................................................... 88
3.6.4. Unstable Soils ................................................................................................................... 89
3.6.5. Permafrost, Frost Heave, Thaw Settlement and Frost Bulbs ........................................... 90
3.6.6. Fault Crossings ................................................................................................................. 92
3.6.7. Avalanche Hazards........................................................................................................... 92
3.6.8. Residential Areas.............................................................................................................. 92
3.7. WATERBODY CROSSINGS............................................................................................ 93
3.7.1. Clearing and Grading of Waterbody Approaches............................................................. 95
3.7.2. Equipment Crossing.......................................................................................................... 95
3.7.3. Fueling and Fuel Storage.................................................................................................. 96
3.7.4. Restoration / Revegetation ............................................................................................... 97
3.8. PIPE INSTALLATION METHODS FOR WATERBODIES....................................................... 98
3.8.1. Open-cut Method .............................................................................................................. 99
3.8.2. Dam and Pump Method.................................................................................................. 101
3.8.3. Flume Method ................................................................................................................. 102
3.8.4. Channel Diversion........................................................................................................... 103
3.8.5. Aerial Pipeline Crossings................................................................................................ 103
3.8.6. Lake Crossings ............................................................................................................... 105
3.8.7. Horizontal Directional Drilling.......................................................................................... 106
3.8.8. Wetland Crossings.......................................................................................................... 106
3.8.9. Muskeg Terrain ............................................................................................................... 111
3.8.10. Shallow Muskeg.............................................................................................................. 112
3.8.11. Intermediate Muskeg ...................................................................................................... 112
3.8.12. Deep Muskeg.................................................................................................................. 112
3.9. MAINLINE BLOCK VALVES AND LAUNCHER/RECEIVERS ............................................... 113
3.10. CORROSION PROTECTION SYSTEMS.......................................................................... 115
3.11. ENVIRONMENTAL COMPLIANCE, TRAINING, AND INSPECTION ...................................... 116
3.12. QUALITY CONTROL INSPECTORS ............................................................................... 117
3.13. WORK SITE SECURITY............................................................................................... 117
3.14. LABOR EMPLOYMENT AND TRAINING PROGRAM ......................................................... 119
Appendix A - Ditching Modes and Rates for RDAS ........................121
Appendix B - Soil Codes ....................................................124
Appendix C - Gradations for Soil Types ..................................125
Appendix D - Permafrost Codes.............................................126
Appendix E - Pipeline Installation Productivity Analysis ............127

Page 4 of 132


Appendix E - Pipeline Installation Productivity Analysis

The following analysis follows a detailed analytical process at attempting to develop a
realistic productivity analysis as suggested by certain classic pipeline cost estimating
literature. It is not intended to be the last word in estimating productivity, just a method that
has worked on some estimates.

J. S. Page in his reference book entitled cost Estimating Manual for Pipelines and Marine
Structures wrote: "Before one thinks in terms of labor costs, many things must be
considered, the most important of which are called Productivity Efficiencies and
Production Elements."

After extensive comparison of many projects, J. S. Page found that production
percentages could be classified into five categories and that production elements can be
grouped into six different listings or classifications:

Production Elements
1. General Economy
2. Project Supervision
3. Labor Relations
4. Job Conditions
5. Equipment
6. Weather

Productivity Efficiency Percentages

Percentage Range
10 through 40
41 through 60
61 through 80
81 through 90
91 through 100
Type
1. Very Low
2. Low
3. Average
4. Very Good
5. Excellent

By evaluating each of the six elements, a site specific Productivity Efficiency
Percentage can be derived for any given situation.
Productivity Factor Adjustment Calculation

Page 127 of 132


Page 128 of 132

Objective:

To correct for productivity, efficiency, terrain, soils conditions, and weather.
Production Element Analysis

General Economy:

The general economic conditions in Alaska and Canada will need to be
accesses. Due to the size of the project regional economic conditions may
need to be considered. Recent contracts / project completion costs
benchmarks should be collected and analyzed. The influx of project related
activities will likely cause economic conditions to change along some
sections of the routes. All these factors and any others considered significant
in evaluating the General Economic conditions should be considered in this
category. The route is so diverse and the economic conditions may be so
varied along the route that a single factor in this category may be insufficient
to capture all the impacts for this element. If this is the case then regional
factors should be considered and appropriate adjustments made to
productivity on a section by section basis.

Project Supervision:

Assumptions on local content and the availability experienced local/regional
supervisors may be considered in this element. Some resources will be
brought in and a proactive training program could be activated early to
enhance performance. Assumptions on how pay scales of workers may
impact Project Supervision should be captured in this element. Any
assumptions included in the basis for cost estimating and productivity
having to do with completion incentive bonus plans should be captured in
this element.

Labor Conditions:

The following analysis leads to a rating for this element:
Factor to Consider Rating
Are existing labor relations good
Are there skilled craftsmen locally
Available

Experience level of craftsmen in the
Region

Human resource pool size
Pay levels expected


Page 129 of 132

Analyze the employment situation in all regions crossed by this project. To
reach a rating for this element consider the diverse labor conditions along
the route. The labor conditions may be so varied that a single factor in this
category may be insufficient to capture all the impacts for this element. If
this is the case then regional factors should be considered and
appropriate adjustments made to productivity on a section by section
basis.

Job Conditions:

This project and cross-country pipeline associated with it will be one of
the largest variations in local conditions in recorded history.

Assume that the project schedule will be managed tightly and on a "Just in
Time" basis.

Working conditions will be remote. Document assumptions on camp
locations and local infrastructure that will be employed to mitigate time
loses traveling to and from the job site. Document assumptions on the
condition of roads and include a summary of any assumed upgrades
envisioned when setting the factor for this element.

Construction will be over varied terrain mostly parallel to existing linear
features such as existing pipelines and/or power line corridors. Document
the impact assumed access will have on this element. If the conditions are
considered to be so variable along the route consider breaking the
analysis of this element up into regional effects and make appropriate
adjustments on a section-by-section basis.

Capture assumptions and analysis of operations impacts that are
envisioned and make appropriate adjustments on a section-by-section basis
if felt appropriate. Consider variability of regulatory constraint on a region by
region basis if appropriate in determining the rating for this element.

Equipment:

Considerations and analysis:
Consideration Rating
Fit for Purpose, use-ability
Condition
Maintenance & Repair
(suppliers and parts available)


Page 130 of 132

Document all considerations used in determining this element rating.

Weather:

The weather in the regions crossed by this project will vary greatly. This fact
will probably necessitate developing regional ratings for this element of the
analysis. Document all assumptions and basis that are used in setting the
rating for this element.

Summary of Six Element Analysis
Analysis Element Rating
__
General Economy

Production Supervision
Labor Relations
Job Conditions
Equipment
Weather
Total
Derived Average Percentage Labor Productivity Factor (LPF)

Total of Elements / 6 = P %; LPF = P/100

Calculation of Expected Lay Rate

The method for determining lay rate suggested by J. S. Page Cost Estimating
Manual for Pipelines & Marine Structures starts by using lay rates for various sizes
and wall thickness of pipe lay rate under optimum conditions across rock free level
terrain. Most likely the ratings included in such standard tables will not be
appropriate for this project. The contractor will need to develop and document the
method it uses to determine the lay rate.

For a given pipe size the Page method computes an "Actual Terrain Factor", "Rock
Adjustment Factor" and utilizes the over all Productivity Factor computed above
the estimate the schedule days for construction and illustrated below.


Lay Rate Adjustments for Actual Terrain Factor (ATF):

The Microsoft Excel Worksheet Object can be used to calculate an appropriate
terrain factor consistent with the Page Method by entering the section lengths in the
appropriate column below (i.e. replacing the "1 s shown in the "Section Length"
column):
Units of Use
Length Factor
Terrain Section Factored
Terrain Type Factor Length Section
Level 1 1 1.0
Slightly Rolling 0.95 1 1.0
Rolling 0.6 1 0.6
Rough 0.5 1 0.5
Very Rough 0.3 1 0.3
Total 5.0 3.4

ATF = Section Length I Factored Section = 0.6700

Page 131 of 132


Rock Factor Adjustment (RFA):

Rock Factor Adjustment factor consistent with the Page Method by entering the
section lengths in the appropriate column below (i.e. replacing the "1 s shown in
the "Section Length" column):
Units of
Length Use Factor
Section
Percent Rock Rock Factor Length
0 1 1 1.00
0 - 25 0.846 1 0.85
26 - 40 0.72 1 0.72
41 - 55 0.627 1 0.63
56 - 70 0.547 1 0.55
Total 5 3.74

RFA =Section Length / Factored Section = 0.748

Adjusted Average Lay Rate Calculation:
Section Unadjusted Linear Labor Actual Rock Adjusted Lay
Day Rate, Productivity Terrain Factor Rate
Optimum X Factor X Factor X Adjustme
9
(units of
Conditions and (ATF) nt length/ day)
Terrain RFA
Description Units Lengths/day LPF ATF RFA LR

Computed Scheduled Lay Days:

Section Length I Adjusted Lay Rate = Schedule Days

Page 132 of 132



Attachment 2: Pipeline Productivity Analysis Sample

Page 12 of 12


Page 128 of 132

Objective:

To correct for productivity, efficiency, terrain, soils conditions, and weather.
Production Element Analysis

General Economy:

The general economic conditions in Alaska and Canada will need to be
accesses. Due to the size of the project regional economic conditions may
need to be considered. Recent contracts / project completion costs
benchmarks should be collected and analyzed. The influx of project related
activities will likely cause economic conditions to change along some
sections of the routes. All these factors and any others considered significant
in evaluating the General Economic conditions should be considered in this
category. The route is so diverse and the economic conditions may be so
varied along the route that a single factor in this category may be insufficient
to capture all the impacts for this element. If this is the case then regional
factors should be considered and appropriate adjustments made to
productivity on a section by section basis.

Project Supervision:

Assumptions on local content and the availability experienced local/regional
supervisors may be considered in this element. Some resources will be
brought in and a proactive training program could be activated early to
enhance performance. Assumptions on how pay scales of workers may
impact Project Supervision should be captured in this element. Any
assumptions included in the basis for cost estimating and productivity
having to do with completion incentive bonus plans should be captured in
this element.

Labor Conditions:

The following analysis leads to a rating for this element:
Factor to Consider Rating
Are existing labor relations good
Are there skilled craftsmen locally
Available

Experience level of craftsmen in the
Region

Human resource pool size
Pay levels expected


Page 129 of 132

Analyze the employment situation in all regions crossed by this project. To
reach a rating for this element consider the diverse labor conditions along
the route. The labor conditions may be so varied that a single factor in this
category may be insufficient to capture all the impacts for this element. If
this is the case then regional factors should be considered and
appropriate adjustments made to productivity on a section by section
basis.

Job Conditions:

This project and cross-country pipeline associated with it will be one of
the largest variations in local conditions in recorded history.

Assume that the project schedule will be managed tightly and on a "Just in
Time" basis.

Working conditions will be remote. Document assumptions on camp
locations and local infrastructure that will be employed to mitigate time
loses traveling to and from the job site. Document assumptions on the
condition of roads and include a summary of any assumed upgrades
envisioned when setting the factor for this element.

Construction will be over varied terrain mostly parallel to existing linear
features such as existing pipelines and/or power line corridors. Document
the impact assumed access will have on this element. If the conditions are
considered to be so variable along the route consider breaking the
analysis of this element up into regional effects and make appropriate
adjustments on a section-by-section basis.

Capture assumptions and analysis of operations impacts that are
envisioned and make appropriate adjustments on a section-by-section basis
if felt appropriate. Consider variability of regulatory constraint on a region by
region basis if appropriate in determining the rating for this element.

Equipment:

Considerations and analysis:
Consideration Rating
Fit for Purpose, use-ability
Condition
Maintenance & Repair
(suppliers and parts available)


Page 130 of 132

Document all considerations used in determining this element rating.

Weather:

The weather in the regions crossed by this project will vary greatly. This fact
will probably necessitate developing regional ratings for this element of the
analysis. Document all assumptions and basis that are used in setting the
rating for this element.

Summary of Six Element Analysis
Analysis Element Rating
__
General Economy

Production Supervision
Labor Relations
Job Conditions
Equipment
Weather
Total
Derived Average Percentage Labor Productivity Factor (LPF)

Total of Elements / 6 = P %; LPF = P/100

Calculation of Expected Lay Rate

The method for determining lay rate suggested by J. S. Page Cost Estimating
Manual for Pipelines & Marine Structures starts by using lay rates for various sizes
and wall thickness of pipe lay rate under optimum conditions across rock free level
terrain. Most likely the ratings included in such standard tables will not be
appropriate for this project. The contractor will need to develop and document the
method it uses to determine the lay rate.

For a given pipe size the Page method computes an "Actual Terrain Factor", "Rock
Adjustment Factor" and utilizes the over all Productivity Factor computed above
the estimate the schedule days for construction and illustrated below.


Lay Rate Adjustments for Actual Terrain Factor (ATF):

terrain factor consistent with the Page Method by entering the section lengths in the
appropriate column below (i.e. replacing the "1 s shown in the "Section Length"
column):
Units of Use
Length Factor
Terrain Section Factored
Terrain Type Factor Length Section
Level 1 1 1.0
Slightly Rolling 0.95 1 1.0
Rolling 0.6 1 0.6
Rough 0.5 1 0.5
Very Rough 0.3 1 0.3
Total 5.0 3.4

ATF = Section Length I Factored Section = 0.6700

Page 131 of 132


Rock Factor Adjustment (RFA):

Rock Factor Adjustment factor consistent with the Page Method by entering the
section lengths in the appropriate column below (i.e. replacing the "1 s shown in
the "Section Length" column):
Units of
Length Use Factor
Section
Percent Rock Rock Factor Length
0 1 1 1.00
0 - 25 0.846 1 0.85
26 - 40 0.72 1 0.72
41 - 55 0.627 1 0.63
56 - 70 0.547 1 0.55
Total 5 3.74

RFA =Section Length / Factored Section = 0.748

Adjusted Average Lay Rate Calculation:
Section Unadjusted Linear Labor Actual Rock Adjusted Lay
Day Rate, Productivity Terrain Factor Rate
Optimum X Factor X Factor X Adjustme
9
(units of
Conditions and (ATF) nt length/ day)
Terrain RFA
Description Units Lengths/day LPF ATF RFA LR

Computed Scheduled Lay Days:

Section Length I Adjusted Lay Rate = Schedule Days

Page 132 of 132



Appendix 1: Examples of Appendices of Tables to be Included
Examples of appendices that could be included are:
Organization Charts (Field Management, Construction
Management, and how They are Tied to Project Management)
Level 3 Schedule
Pipeline Productivity Analysis (See Attachment 2 for a Sample)
MLV Location Table
Civil Construction Quantities, including Borrow Pit Locations
River Crossing Chart (Showing Major Rivers and Expected
Crossing Methods)
Road / Railroad Crossing Chart
Camp / Warehousing / Laydown Plan with Location Chart by
Spread
Temporary Electric Power Generation & Distribution Plan
Fuel Storage and Usage Plan
Material / Equipment Preservation Plan
Material Management Plan
Welding Procedures & Training Plan
Shift Schedule / Workweek / Site Holiday Plan
Surplus Material Disposal Plan
Field Procurement Plan
Hydrostatic Testing & Dewatering Plan
Communication Plan
Helicopter Management Plan
Logistics Plan, including access roads to be used (new, upgraded,
existing)
Drawings

Page 13 of 13

Typical ROW Cross Section


Typical Temporary Extra Work Space
Typical Camp Layout

Page 14 of 14



Page 15 of 15

Appendix 2: Examples of Procedures
Examples of procedures that could be included are:
Field Joint Coating and Repair
Field Coating Repair, including locations performed, i.e. upon
custody transfer, at laydown yard, prior to lowering-in, etc.
Welding Procedures, including production, tie-ins, repairs
Heat Treating
Chemical Cleaning & Flushing
Bolt Torquing & Tensioning
Nitrogen / Air Leak Testing
Dimensional & Survey Control
Radiography Inspection
Ultrasonic Inspection
Magnetic Particles & Dye Penetrant
Rock Blasting Procedure

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