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PLANNING AND CONTROL PROCEDURE


FOR MAIN CONSTRUCTION WORKS

APPROVAL OF THE COMPANY


STATUS *
NAME
TITLE
DATE
SIGNATURE
* Please circle the proper letter:
A : Approved

B : Approved as noted

Re-issued as a common document for ACG &


Shah Deniz Project

Issued for Approval

REV.

DESCRIPTION

C : Not approved, commented.

A.C.C.

I.M.G.

L.K.

08/10/2003

I.O.O

F.B.

T.B.

19/06/2002

PREPD

CHKD

APPR
D

DATE

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INDEX
SECTION TITLE

PAGE

1.

PURPOSE

2.

SCOPE

3.

REFERENCES

4.

DEFINITIONS AND ABBREVIATIONS

5.

METHOD

6.

PLANNING & SCHEDULING

7.

PROGRESS MONITORING

10

8.

REPORTING

12

9.

RESPONSIBILITIES

16

10.

REVIEW

16

11.

APPENDICES

16

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1. PURPOSE
The purpose of this procedure is to define and set the methods for project planning,
scheduling, progress monitoring and reporting activities as part of the total project control
system.
2. SCOPE
This procedure covers all planning, scheduling, progress monitoring and reporting
activities for engineering, procurement, construction and commissioning activities within
the scope of work defined by contract/agreement for ACG Full Field Development,
Phase1, Onshore Terminal, Main Construction Works.
3. REFERENCES
Tekfen Planning & Control Procedure P4.09.03
ACG, Full Field Development, Phase 1, ITT No. FFD-14/3
4. DEFINITIONS AND ABBREVIATIONS
CMS

Contract Master Schedule

PCS

Project Control System

WBS

Work Breakdown Structure

CBS

Cost Breakdown Structure

CPM

Critical Path Method

AFC

Approved for Construction

5. METHOD
The master plan of the project is developed at the very early stages in order to set how the
project will be executed. The scenario for executing the project starts from mobilization
and covers all activities including procurement, engineering, construction, fabrication,
testing, pre-commissioning and completes with demobilization. This scenario is then
reiterated by the project management to meet the latest revisions. This revised scenario
forms the basis of all project control system activities and the contract master schedule.
Finally, the scenario for execution of work is studied in more detail to develop the detailed
project plan and schedule. Together with an agreed schedule, it constitutes the target plan,

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which is the baseline for the running construction schedule. The schedule is updated
weekly as per realised progress values and planned & current status is compared. This
comparison is the basis of reporting & monitoring activities, which shows the planned,
actual and current forecast values in terms of time, quantities, percent completes, manhours, and productivity.
6. PLANNING & SCHEDULING
Work Breakdown Structure (WBS)
Project scope definition is one of the key elements for project planning and scheduling.
WBS of a project shows the scope definition and divides the work into logically
identifiable work packages with the levels required. The WBS for this project is
determined as shown in the following list.
Level 1,

Subproject

Level 2,

Discipline, Works Area, System

Level 3,

Work Items

Level 4,

Activities

The WBS is also used as the activity breakdown structure for the schedule.
The project is divided into subprojects based on activity scopes and for better monitoring
& follow up. The subprojects for the main construction works are defined as:

PM

Project Milestones

MO

Mobilization

EN

Engineering, Design & Deliverables

MT

Procurement, Materials & Equipment

TE

Construction of Camp, Offices & Temporary Facilities

CA

Construction Works-ACG Scope

CB

Construction Works-BTC Scope

CP

Construction Works-Onshore Pipelines

CM

Completion Activities

There are three sets of Level 2 items in the WBS of project, namely (1) work disciplines,
(2) work areas and (3) systems, which allow monitoring of project in different
views(?)layouts.

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The relevant discipline codes defined in WBS of this project are;

02

Steelwork

03

Pipework

04

Equipment

05

Electrical

06

Instrumentation

07

Telecommunication

08

Fire & Safety

10

Architectural

11

Insulation

12

PFP

13

Painting & Coating

14

Civil Works

15

Onshore Pipeline

20

Control Room

25

Local Equipment Room

30

Main Switchroom Building

31

Local Switchroom No. 1

32

Local Switchroom No. 2

33

Local Switchroom No. 3: BTC

55

Pump Control Room and Warehouse: BTC

57

Frequency Conversion Building: BTC

The relevant area codes defined in WBS of this project are;

Flare Area

Power Generation / Sulphur Recovery Area

Utilities Area

Process Area

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Off Spec Tank Area

Pig Receiver / Pipeline Corridor Area

Sulphur Handling / Steam Generators Area

EOP Area

Produced Water Storage Area

Phase 1 Crude Oil Storage Tank Area

MOL Pumps / Metering Area

The systems classification will be done as per the system numbers in drawing BRCDZZZZ-PR-PID-0001.03 (Piping & Instrumentation Diagram Legend Sheet 3
Numbering)
Level 3 work items identify each equipment, building, underground system, etc. in one
area. Level 4 activities are determined in detail such that they can be measured in
quantities.
Activity Codes
To identify and define the activities in accordance with the WBS, the following activity
codes are used.
SUBP

Subproject ID

RESP

Responsibility

DISC

Discipline

AREA

Area

PSYS

Primary System

SYST

System

ITEM

Item Code

LOCN

Location

MATL

Material

SCHD

Schedules

R6

R6 Code

R7

R7 Code

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Other codes may be added if additional definitions are required during the execution of
the project.
Planning & Schedule Preparation
The schedule preparation study includes the process of (1) activity definition, (2) activity
sequencing, (3) activity duration estimation and (4) schedule development.
Activity definition involves identifying the specific activities that must be performed in
order to perform the work identified in the WBS. Inputs to the activity definition are
WBS, scope definition, historical information on similar projects, constraints, and
assumptions. Outputs from activity definition are activity list and supporting detail.
Activity sequencing involves identifying the interactivity dependencies between activities.
Activities are sequenced accurately to support the development of a realistic schedule.
Precedence Diagramming Method (PDM) is used as technique for activity sequencing.
Inputs for activity sequencing are; activity list, physical dependencies that come by the
nature of work, flexible dependencies which are preferences for executing the work,
external dependencies, constraints, and assumptions. Output from activity sequencing is
project network diagram, which is a schematic display of the project activities and logical
relations between them.
Activity duration estimation involves assessing the period likely to be needed for the
completion of each activity. Activity durations are estimated based on total man-hours
required for a certain activity and planned workforce. Budgeted quantities are taken off
from the AFC drawings and the required man-hours are calculated from the budgeted
quantities multiplied by the unit man-hours for the activity. Inputs for activity duration
estimating are activity list, constraints, assumptions, resource requirements, resource
capabilities and historical information. Outputs are the schedule with durations and the
updates activity list.
The schedule development involves determination of start and finish dates for project
activities by Critical Path Method (CPM). The inputs for project development are project
network diagram, activity duration estimates, resource requirements, resource pool
description, calendars, constraints, assumptions and lags. Project schedule, which contains
project network diagrams, bar charts, milestone dates, time-scaled network diagrams, etc.
is presented in a graphical form together with supporting detail and resource requirements.
By means of CPM, the early and late start / finish dates are calculated for each activity
based on specified, sequential network logic and single duration estimate. The difference
between late and early dates are calculated as the total float for each activity and the
critical path is identified as the chain of activities in network logic with zero floats. The
critical activities drive the total duration of the project, i.e. theoretically any delay in the

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critical activity is reflected to the total completion time of the project. The activities with
considerably small floats are also considered as potential critical activities.
Duration compression is applied as part of the review cycle in schedule development.
Activities with considerably long durations on the critical path are revised considering the
resource requirements and capabilities to meet the target completion duration for the
project.
The schedule development and review cycle is shown in the below figure.
Activity
Definition

Activity
Sequencing

Activity
Duration
Estimating

Schedule
Development

Precedence
Diagramming
Method (PDM)

Total manhours / planned


workforce

Resource
Leveling

Primavera Project Planning software is used as a planning tool in all schedule


development activities.
Resources
For all activities in the schedule, manpower requirements are monitored in man-hour
units. The quantities for the major items, such as steel fabricated (tonnes), steel erected
(tonnes), pipe spools fabricated, pipe spools erected, cables pulled (linear metres), cables
terminated (no.), etc. shall also be followed up as resources in activities.
Resource Optimisation
Resource levelling is the technique applied to optimise the distribution of resource
requirements for the project duration. The maximum availability of a resource is taken as
input and the start and finish dates of activities with floats are re-calculated to achieve an
optimised distribution.
Project Baseline
Once the schedule is completed and agreed, it is taken as the baseline, i.e. the dates and
resource requirements are considered as the planned values, and the actual progress and
performance values are compared to the baseline.

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Schedule Revising
The planning philosophy shall be to review and revise the plans continuously on regular
basis as per actual performance and progress, the variations in scope of work and other
prevailing conditions to meet the final completion date targeted. A requirement to revise
the schedule will occur when there is such variation in the scope or there is a major
change in the philosophy of execution of the works. Such requirement will be reported to
Company and the schedule will only be revised upon approval of the Company. If
Company sees a requirement he may instruct Contractor to revise the schedule without
waiting Contractors request. When the schedule is revised it is fixed as the new baseline
and the working schedule is compared to it.
7. PROGRESS MONITORING
Project Control is the process to monitor and measure progress, in order to take necessary
corrective actions whenever necessary to ensure that all project objectives are met in a
timely manner. It also includes control of the work in terms of risks, changes and
interfaces.
Progress monitoring
Progress of project shall be determined on the basis of followings.

Amount of work done during the specified period in terms of quantities and/or manhours spent as appropriate

Actual versus planned progress

Measurement of the amount of work done shall be calculated on the basis of both (1) daily
/ weekly site reports indicating the quantity of work done, workforce and equipment used
from the site supervisors and supplemented with calculations and drawings in technical
office and (2) verified with physical measurements at site when required.
The daily / weekly site reports from the site supervisors will include level-5 breakdown of
the related departments scope issued by the planning department to each discipline
supervisor. The supervisor will mark up the level-5 progress report based on physical
progress achieved and will return to the planning department no later than Saturday
afternoon. The planning engineer then update the level-5 database with progress which
will be rolled up to level 4, 3, 2, and 1.

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After inputting the progress data into project planning tool, the completion percentages
with respect to baseline shall be reported together with progress S Curves for man-hours
and budget. Comparison of the progress for a specified duration and in overall with
respect to plan is the start of performance assessment and review. The deviations are then
evaluated for the reasons so that the project management may develop solutions for
eliminating reasons of delays and methods to recover these delays.
The main objective of progress monitoring is to forecast the project completion in terms
of schedule and budget. Since the delays in activities on critical path are directly affecting
project target dates, they should be analysed in detail. Delays in other activities may
become important, if the activity becomes critical as a result of delays.
Progress Measurement Method
Rate of budgeted man-hour to the total budgeted man-hours for the project multiplied by a
coefficient is the weighted percentage for the activity. In other words:
Weighted percentage of an activity is defined as:

Activity (%) K eq

AW B
TW B

Where;
AWB

Budgeted man-hours of this activity

TWB

Total budgeted man-hours

Keq

Equalised discipline coefficient

The coefficient is calculated for each discipline considering the following factors:

K eq

K1 K 2 K 3
3

Where;
K1

Man-hour rate coefficient for discipline

K2

Equipment rate coefficient for discipline

K3

Visual Completion / Milestone coefficient for discipline

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The average of three factors is taken as the coefficient and the calculated coefficient is
equalized to give the same total number of man-hours as original.
The calculations for the coefficients for disciplines are given in Appendix 1.
This method is applied for calculation of the percent complete of the project; the budgeted
and clocked man-hours are reported as original.
The percent completes for the activities are calculated as the ratio of actual quantity of
work performed to the budgeted quantity of work for a given activity. The total percent
complete for the project is the percent complete for activity multiplied by the weighted
percent of the activity.

%CompleteforActivity

ACWP
BQWP

Where;
ACWP

Actual quantity for work performed

BQWP

Budgeted quantity of work performed


n

%Completefor Pr oject (%CompleteforActivity Activity %)


1

Where;
n

number of activities in project

8. REPORTING
As part of the planning and control activities the following reports will be prepared and
submitted to Company.
Monthly Progress Reports
A comprehensive Monthly Progress Report relating to the work performed during the last
reporting period shall be prepared. The reporting period shall be up to and including
midnight on the last Saturday in each month (the cut-off date) and shall be submitted to
company in an electronic format, by not later than 14.00 hrs on the Friday following the
cut off.

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In addition, an extract from the report which will include the executive summary, areas of
concern, progress statistics and the cost report will be submitted to company by e-mail or
facsimile not later than 14.00 hrs on the Wednesday following the cut-off date.
The Monthly Progress Report will typically contain the following:
General Section

an executive narrative summary of significant accomplishments during the report


period.

details of progress on design and engineering, procurement, fabrication,


construction, installation, and testing/commissioning and an explanation of
deviations from any targets, their consequences and corrective actions taken.

areas of concern and details of the actions proposed to be taken to manage and
eliminate the concerns.

highlights of significant activities to be undertaken in the following month.

Planning Section

the CCMS (Level 1).

progress "S" curves (Planned vs. Actual).

resource histograms (Planned vs. Actual).

Level 2 detailed bar chart.

Level 2 time analysis report

Cost Section

cost and manhour performance reports for the month and cumulatively by work
package.

Contract Price summary activities broken down by month with estimated, actual
and forecast costs and cumulative expenditure.

updated expenditure profile indicating the actual estimated value of work executed
each month for the duration of the contract.

updated cash flow profile indicating the estimated invoice amounts to be submitted
on a monthly basis for the duration of the contract.

Variation Order Register indicating the total number and value of variation orders.

Variation Order Request Register indicating the total number and estimated value
of potential variation orders requested.

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Purchase Order Register indicating PO number, description, date purchased,


supplier, estimated value, actual cost, freight costs, WBS number, and delivery
time.

Subcontract/Vendor Register indicating subcontract number, description, award


and completion dates, subcontract/vendor, estimated value, actual cost, WBS
number, and method of reimbursement.

updated actual value of Withholding Tax deducted.

Other Reports

procurement status report.

weight summary document progress status report.

HSE and QA report (including status of key performance measures).

risk management report.

accident/incident report, including "near-misses" and "lost-working hours".

Registers

correspondence register(s).

drawings and documents register(s).

Weekly Progress Reports


Weekly Progress Reports will be prepared and submitted to Company by e-mail or
facsimile, not later than 14.00 hrs Monday. Cut-off will be midnight each Sunday.
The Weekly Progress Reports will contain the following:

Health, Safety & Environment


o statistics
o narrative

Project Status
o progress summary
o progress S-curves (overall and by discipline)
o histograms (overall and by disciplines)
o detailed progress data

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Summary of work accomplished during the report period


o design and engineering
o fabrication
o installation
o construction
o procurement

Summary of activities planned for the next reporting period


o design and engineering
o fabrication
o installation
o construction
o procurement

Interface queries

Manpower report foreman and below

Personnel movements and forecast movements for next reporting period

Critical path analysis and areas of concern

Daily Reports
Daily Reports will be prepared and submitted to Company by e-mail or facsimile, not later
than 09.00 hrs the following day. Cut-off will be midnight each day.
The Daily Progress Reports will contain the following:

Weather conditions.

Personnel by trade on site.

Plant and equipment on site.

Hours worked and times.

Cumulative manhours.

Site activities.

Progress achieved.

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Subcontractors/vendors on site.

Accidents or incidents reported (days without LTI, near misses,

first aid cases).

Problem areas.

Notes/general.

9. RESPONSIBILITIES
It is the responsibility of planning engineer to coordinate the project planning activities
under the leadership of technical office manager and in close coordination with
construction and other groups within the organization.
Construction group is responsible doing the take offs from the AFC drawings and
reporting the executed quantities of work done to the technical office.
Engineering group, Procurement group, Construction group and other departments in
project organization are responsible for supporting project planning and control group
both prior to start and during the execution of the works.
10. REVIEW
This procedure is reviewed prior to start of work and every six months, if not required
otherwise.
11. APPENDICES
Appendix 1:

Discipline Coefficients for Progress Measurement Method

Appendix 2:

Site Report Forms

Appendix 3:

Typical Reports for Weekly Progress Report

Typical level-4 bar chart

Typical manpower histogram

Typical S curve

Typical resource control report

Typical procurement schedule

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APPENDIX 1
DISCIPLINE COEFFICIENTS FOR PROGRESS MEASUREMENT
METHOD

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APPENDIX 2
SITE REPORT FORMS

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APPENDIX 3
TYPICAL REPORTS FOR WEEKLY PROGRESS REPORT