Azzawiya Oil Harbour Bid Documents

Volume II of III Exhibit E Contract Program and Execution

Plan

Azzawiya Oil Refining Company Inc

23 June 2009
Final Report
9R4944Q0

A COMPANY OF

HASKONING NEDERLAND B.V.

MARITIME

George Hintzenweg 85
Postbus 8520
Rotterdam 3009 AM
The Netherlands
+31 (0)10 443 36 66

Telephone

+31 (0) 10 4433 688

Fax

info@rotterdam.royalhaskoning.com
www.royalhaskoning.com
Arnhem 09122561

Document title

Document short title

Status
Date
Project name
Project number
Client
Reference RH
Reference ARC

Drafted by
Checked by
Date/initials check
Approved by
Date/initials approval

Azzawiya Oil Harbour Bid Documents

Volume II of III Exhibit E Contract
Program and Execution Plan
EPC BD Azzawiya Vol II Exhibit E
Final Report
23 June 2009
Azzawiya Oil Harbour Project
9R4944Q0
Azzawiya Oil Refining Company Inc
9R4944Q0/0426/902503/Rott/Rev0
1620-ZA-A4-007

G. Bosman
A. Woods
23/06/2009
H. Altink
24/06/2009

E-mail
Internet
CoC

CONTENTS
Page
1

INTRODUCTION

PROGRAMMES AND SCHEDULES

2.1
Engineering,
Procurement
and
Construction
Programme
2.2
Pre-commissioning, Commissioning, Start-up and Testrun Schedule

INSTRUCTIONS
3.1
Harbour construction stages
3.1.1
Harbour construction stages
3.2
Engineering instructions
3.2.1
Specific Instructions for Engineering of the Breakwater
3.2.2
Specific Instructions for Engineering of Berth 4
3.3
Procurement instructions
3.3.1
General
3.3.2
Expediting
3.3.3
Logistics
3.3.4
Spare parts
3.3.5
Surplus Equipment and Materials
3.3.6
Material Controls
3.4
Cost Control Instructions
3.5
Construction and Commissioning Instructions
3.5.1
Specific Instructions for the Construction of Berth 4
3.5.2
Specific Instructions for Dredging
3.6
Preliminary Program and Execution Plan
3.6.1
Completion of works

5
5
5
5
5
5
6
6
7
8
8
8
9
10
10
10
11
13
13

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INTRODUCTION
This document describes the Contract Program and Execution Plan for the
Works of the new Azzawiya Oil Harbour. This document is for information
only and supports the Volume I Invitation to Bidder.
The relation of this document to the complete set of Bid Documents is given
below:
BID DOCUMENTS AZZAWIYA OIL HARBOUR:
VOLUME I - INVITATION TO BIDDER
VOLUME II - OWNER'S REQUIREMENTS
Exhibit A Scope of Works
Exhibit B Compensation of Payment
Exhibit C1 Performance Specifications and Design Criteria
Exhibit C2 Technical Data and Specifications
Exhibit D Drawings
Exhibit E Contract Program and Execution Plan (this document)
Exhibit F Coordination Procedures
Exhibit G Guide to Safety Regulations in the ARC Refinery Facilities
VOLUME III - SITE INFORMATION

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PROGRAMMES AND SCHEDULES

2.1

Engineering, Procurement and Construction Programme

The Contractor shall produce a detailed programme of the works and submit
it for the Engineer's approval within 14 days from the Effective Date.
The Contractor shall immediately after the Effective Date or after the date of
acceptance of the Contractor's Bid, whichever shall be the earlier, submit to
the Engineer for approval a programme (hereinafter referred to as "the CPM
Programme") showing the order and method in which he proposes to carry
out the Works.
The CPM Programme shall be in the form of a Network Analysis System,
commonly referred to as "CPM" or "Critical Path Method"," designed to
indicate the rate of progress of the Works and the necessary dates of all
significant events, including interfaces with other contractors, to ensure
substantial completion of the Works within the time allowed and the interrelationship of the major elements of erection/construction, purchasing,
subcontracting and commissioning. Electronic data processing equipment
shall be used as required.
The network analysis shall be presented in a form prescribed in the following
paragraphs of this Clause and shall be subject to the approval of the
Engineer. All work in establishing and maintaining the CPM Programme shall
be paid for by the Contractor with a progress report advising the Engineer of
necessary actions for procurement of plant, labour and material.
Copies of the initial CPM Programme and of all subsequent updates,
changes, amendments and variations thereto shall be furnished by the
Contractor to both the Owner and the Engineer.
The Contractor shall be solely responsible for all scheduling to be done for
the Works and for meeting the completion requirements of the Contract.
The CPM Programme shall be prepared in network form to show the earliest
and latest start and finish times and the float associated with each activity.
The network analysis system shall consist of logic diagrams and supporting
computer analysis and schedules. The activities shall include all works to be
performed by the Contractor, all sub-contractors and the Employer and shall
have the following minimum data for each activity.
It shall also detail the production of information for review during the
Engineering. The information should be produced in a phased manner, and
the phasing is to be agreed with the Engineer

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The analysis shall also address the timing of handing over of working areas
from the Contractor.

Activity number
Description of work
Area of work to be performed
Duration (workdays)
Code number referring to applicable specification section
Early start date (calendar)
Late start date (calendar)
Early finish date (calendar)
Late finish date (calendar)
Total float (workdays)
Estimate crew and gang sizes size.

Logic diagrams shall be based on precedence of work item logic and shall
show activities and milestones. Each activity shall display the activity
number, description duration in work and total float. Blank spaces shall be
provided for recording of actual start and finish dates. The critical path shall
be clearly marked.
Material procurement items and sequences shall not be displayed on the
logic diagrams, but shall be handled as outlined below.
Once the initial CPM Programme has been approved, it shall not be
changed, amended or varied without the approval of the Engineer. The
Contractor shall record the actual starts and finishes and remaining durations
and, using this data, shall update the computer analysis.
The updated mathematical analysis shall be accompanied by a narrative
report and shall be used by the Engineer as a basis for evaluating any
request by the Contractor to change, amend or vary the CPM Programme.
Revisions to the schedule logic shall be provided by the Contractor on the
occurrence of any of the following events:
A change in work sequence instituted by the Contractor.
The initial CPM Programme has been delayed by more than thirty (30)
calendar days.
An instruction is given by the Engineer which will significantly affect the
progress of the Works.
As necessary in order to accommodate the Work carried out by other
contractors.

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The Contractor shall perform the Work in accordance with the approved
Programme. If any Work is found not to be on schedule during any regular
review of the Works the Contractor shall immediately advise the Engineer in
writing of action proposed to bring the Works up to schedule and shall submit
a revised Programme indicating such action, together with a typed list of such
revisions. Correction and updating of the Programme will be done as often as
necessary until the Works are on schedule.
Float shall be utilised so as to complete the Works on time. Any existing float
shall be used to the maximum extent possible to offset unexpected delays to
the Works.
In the event of the Contractor failing to submit a CPM Programme or
submitting a CPM Programme which is not in compliance with the
requirements of this Clause the Engineer shall be entitled to employ and pay
other persons to carry out the same. All expenses consequent thereon or
incidental thereto shall be recoverable from the Contractor by the Owner, or
may be deducted by the Owner from any monies due or which may become
due to the Contractor.

2.2

Pre-commissioning, Commissioning, Start-up and Test-run

Schedule
The contractor is to formulate a schedule for all testing and commissioning,
to be agreed with the Engineer, in accordance with the Owners
Requirements, that will be necessary to demonstrate that the project is
complete and that the Completion Certificate can be issued.

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INSTRUCTIONS

3.1

Harbour construction stages

3.1.1

Harbour construction stages

The harbour shall be delivered in two stages:
Construction stage 1:
The first part of the main breakwater protects berth 4 from the extreme waves
(from the northwest sector) and allows for the transfer of activities from
CBM2 to berth 4, before the second part of the main breakwater is built
during construction stage 2.
Construction stage 2:
This is the final envisaged harbour layout, as portrayed in the Final Harbour
Layout [refer to Exhibit D - Drawings]. The main and lee breakwaters protect
berth 4, berth 5, berth 6, the small craft harbour and the material offloading
facility.

3.2

Engineering instructions

3.2.1

Specific Instructions for Engineering of the Breakwater

The harbour will be delivered in two stages as described above During
construction stage 1, only the first part of the main breakwater will be built
(approximately 500m). This will allow for the transfer of all product handling
from CBM2 to berth 4 before the second part of the main breakwater is built.
During construction stage 2, the rest of the main breakwater and the lee
breakwater will be built. There will be a time period during which the rear side
of the first part of the main breakwater will be exposed to a more severe
wave climate than designed for. The possible damage during this time period
should be checked.
A return period of 10 years may be applied due to the temporary character of
the situation (approximately 2 years).

3.2.2

Specific Instructions for Engineering of Berth 4

The full breakwater shall be constructed in 2 stages. This is required because
of the existing CBM2 buoy, which is still in use during the construction of the
first part of the breakwater during stage 1. Only when Berth 4 is fully
operational, the further construction of the harbour can take place. For the
above mentioned reason Berth 4 shall be designed for the situation without
the protection of the full breakwater (refer to Exhibit D Drawings).

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3.3

Procurement instructions

3.3.1

General

3.3.1.1

The Contractor shall provide all personnel and be solely responsible for all
Procurement activities associated with delivery of the Work, ensuring that all
enquiry and purchase requisitions are processed correctly and on schedule.

3.3.1.2

The Contractors procurement of goods and services shall adhere to the

highest ethical standards. The Contractor shall develop and implement
procurement policies that:
o
o
o
o

Comply with the Contract technical requirements

Comply with Libyan procurement regulations
Deliver goods and services to satisfy project schedule requirements
Comply with the Owner requirement to maximise Libyan Content

3.3.1.3

The Contractor shall prepare procurement procedures for the execution of

the Work, including procedures for purchasing, inspection, progress
monitoring, material control, expediting, batch crating and packaging, transshipping, consolidating and transportation.

3.3.1.4

The Contractor shall be responsible for the procurement of all construction,

commissioning spare parts and special tools required for start up and test,
initial operation, up to Acceptance of each Stage of the Work.

3.3.1.5

The Contractor shall be responsible for the provision of all first fill material,
oils, chemicals, catalysts, refrigerants, etc, as required and agreed by the
Owner, and for their continued replenishment if necessary up to hand over of
the Work.

3.3.1.6

The Contractor shall be responsible for arranging the complete handling,

storage, protection of all Materials, all Construction Equipment, all temporary
facilities and all other materials and supplies, lubricants, chemicals,
construction consumables, utilities power, fuel used in the performance of the
Work, including the shipping, forwarding, transporting, storage in transit,
expediting, unloading receiving and storage on Site.

3.3.1.7

The Contractor shall be responsible for the provision of all equipment,

foodstuffs, drinking water, and supplies, domestic cleaning equipment,
necessary to effectively run and operate the Work Areas and the Contractors
accommodation, providing welfare provision to the Contractor personnel.
The Contractor shall also be responsible for the provision of all-necessary
medical supplies and specialist equipment as described in Exhibit G - Health
Control and Environmental Regulations.

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3.3.1.8

The Contractor shall plan all cargo loads to minimize risk of loss for any
single component of the Work.

3.3.1.9

Procurement procedures shall define activities for preparation, review,

approval and control of procurement documents. Procurement documents
shall clearly describe the product required, including the following essential
information:
o Description of the equipment or service being procured
o All applicable project procedures, standards and design specification
requirements
o Listing of Subcontractor documents to be prepared and submitted to
the Contractor for review and approval, and the format the data is to
be received.
o Identification of all required documentation; this information shall be
fully indexed.

3.3.1.10 The Owner reserves the right to periodically audit the Contractors
procurement process to ensure compliance with agreed procedures.
3.3.1.11 The Contractor shall maintain all records of all materials procured and all
tests carried out, for information and provide these to the Owner upon
request, and in the Handover dossier. Procured surplus materials shall be
removed by the Contractor at the finish of the works, unless the Owner
requests in writing to purchase these surplus materials.
3.3.1.12 The Contractor shall handle all procured materials with proper care, and
comply fully with the guidelines set by the manufacturer, with regards to
storing, stacking, lifting and preservation prior to use.

3.3.2

Expediting

3.3.2.1

The Contractor shall assign expediting personnel to the project to perform

proactive expediting, including identification and early resolution of potential
problem areas. Responsibilities shall include:
o Monitoring and expediting Subcontractors submittal of engineering
data.
o Monitoring and expediting Subcontractors, to ensure that materials
and components are available for timely completion.
o Monitoring the progress of Engineerings review of Subcontractor data
for timely completion and returning the documents to support
Subcontractor schedules.
o Reporting the manufacturing and delivery status of Materials on a
regular basis.
o Expediting Subcontractors to maintain delivery of Materials.

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3.3.3

Logistics

3.3.3.1

The Contractor shall be fully responsible for the transportation, including

importation and customs clearance. All procured items shall be governed by
the Contract with regard to taxation, customs fees, duties and associated
costs.

3.3.3.2

The Contractor shall provide all necessary documentation required for

obtaining import licenses for all shipments arriving in Libya in connection with
the Work.

3.3.3.3

The Contractor shall be responsible for obtaining all aspects of customs

clearance requirements for the Work.

3.3.3.4

The Contractor shall be responsible for inspecting all shipments at the time of
off loading, at Site or port of entry, giving adequate notification to the Owner
for participation in the inspection.

3.3.3.5

The Contractor shall develop a Logistics Management Plan, giving a

schedule of deliveries requiring customs documentation and release. This
plan will address the appropriate segregation and quarantine activities
necessary to comply with Customs regulations.

3.3.4

Spare parts

3.3.4.1

The Contractor shall be responsible for providing commissioning, Start-Up

spares, and one year operating spare parts for all mechanical and electrical
items provided including but not limited to HVAC, water treatment, sewage
treatment, fire water, power generation/distribution, etc.

3.3.5

Surplus Equipment and Materials

3.3.5.1

The Contractor shall be responsible for the disposal, including re-export, of

all Materials, where required, surplus or otherwise, purchased for but not
used in connection with the Work.

3.3.5.2

Remaining commissioning and start up spares shall be the property of The

Owner.

3.3.5.3

The Contractor shall be responsible for the re-export of Construction

Equipment on completion of the Work.

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3.3.6

Material Controls
General

3.3.6.1

The Contractor shall submit procedures within thirty (30) Days of the
Effective Date for material control, and implement them throughout all stages
of the Contract. The Contractor shall use computerized systems for material
receipt, issue allocation and stock control. The system shall have the ability
to trace an item from origin to issue.

3.3.6.2

The Contractor shall:

(a)

Import and receive all items delivered to the Site, unload, unpack,
inspect, store and protect same.

(b)

Ensure that all Materials are used correctly and no Materials are
substituted without prior Approval.

(c)

Be responsible for safekeeping, in accordance with the

Subcontractors guidelines/instructions for preservation of all
Materials on Site and to ensure that all Materials are marked as
being provided for the Work.

(d)

Be responsible for establishing an adequate security system to

control access to storage sites and prevent theft or otherwise loss.

(e)

Maintain records and account for all Materials delivered and

installed and for surplus and scrap for the same.

(f)

Maintain a Materials Delivery Report, which shall be regularly

updated.

(g)

Develop and implement a Care and Maintenance Plan for

Materials.

(h)

Implement a Surveillance
Subcontractors.

and

Inspection

System

for

Storage
3.3.6.3

The Contractor shall be responsible for storage, protection and maintenance

of all materials and equipment in accordance with Contract Specifications,
the Subcontractors preservation requirements, and Good Engineering and
Construction Practices. The Contractor shall also ensure that access to all
storage areas is possible only via official stores personnel during normal
working hours, and when unmanned all areas must be secure against
unofficial entry.

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Site Receipt of Materials

3.3.6.4

Materials arriving on Site shall be examined against Procurement documents

including shipping documents and/or delivery notes for quantity, description,
overages, shortages and damage or any other variation to the Subcontract.

3.3.6.5

Materials shall be delivered to Site with all relevant QA and

design/installation documentation. No Materials shall be installed without this
supporting documentation.

3.4

Cost Control Instructions

The contractor will be responsible for all cost issues on the project, including
the payment of all duties, fees, charges and taxes required to complete the
project.
Where, under Libyan tax laws, the Owner requires receipts or other
documents evidencing tax payments made, the contractor will provide.

3.5

Construction and Commissioning Instructions

3.5.1

Specific Instructions for the Construction of Berth 4

Due to the unprotected situation in Stage 1, Berth 4 will be subjected to
relative high waves. In order to prevent wave slamming against the civil
structure and installations, piping and other equipment, a higher elevation of
the jetty might be required. Therefore the following construction approach is
suggested:
o Stage 1:
- Construct the loading and turning platform of Berth 4 such that
these structures can resist the relative high wave conditions
during stage 1;
- Construct the dolphins of Berth 4, but without the electrical
equipment to prevent damage due to the expected amount of
overtopping and splashing (therefore it is recommended to
provide e.g. bollards in the first stage, which can be replaced by
quick release hooks in the second stage). It is also not
recommended to place the catwalks at this stage, as these will
then also be subject to wave slamming. Mooring lines shall be
brought to the dolphins by means of launches;
- Create a temporary pipe- and road bridge connecting the
turning platform (Berth 4) with the breakwater;
- Construct a temporary pipe rack on top of the breakwater next
to the inspection road at a safe level.

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Place the piles for the first part of the access trestle (no
superstructure yet) as a preparation for the second stage;

o Stage 2:
- Construct the access trestle to berths 5 and 6;
- Install the electrical equipment at the dolphins at jetty 4;
- Install the piping for Berth 4 on the access trestle and following
remove the piping on top of the breakwater;
- Remove the temporary road- and pipe bridge connecting the
turning platform with the breakwater;
3.5.2

Specific Instructions for Dredging

The design vessel during construction stage 1 is equal to the design vessel
of Berth 4 as this is the only berth active. Because this vessel has smaller
dimensions than the largest design vessel during construction stage 2, the
approach channel and turning basin (harbour area A and B) may be smaller.
These areas are determined analogously to those of construction stage 2.
Harbour area D is equal to that of construction stage 2.
An overview of the different harbour areas to be dredged can be found in
Figure 3-1, Figure 3-2 and Table 3-1.

Figure 3-1. Construction stage 1: Overview of harbour areas

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Figure 3-2. Construction stage 2: Overview of harbour areas

Table 3-1. Harbour areas to be dredged

Area

Construction stage 1

Construction stage 2

Outer approach channel

Outer approach channel *

Turning basin and

approach channel

NA

Berth 5

Berth 4

NA **

Tugboats manoeuvring area

Small craft harbour

NA

Material offloading facility

NA

Berth 6

inner Turning basin and

approach channel *

inner

Quay
NA
Full
walls
* These areas have been partly dredged during construction stage 1. As the
design vessel of construction stage 2 for these areas is more significant
than that of construction stage 1, these areas need to be expanded and
deepened.
** Harbour area D has already been fully dredged during construction stage
1.

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3.6

Preliminary Program and Execution Plan

3.6.1

Completion of works
The Works (construction stage 1 and 2) shall be completed within 36 months
after the Effective Date.
Construction stage 1 shall be completed within 20 months after the Effective
Date.
The programme and execution plan are to compiled and issued in
accordance with the Owners Requirements. (see Volume 1 Invitation to
Bidder)

=o=o=o=

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