200 Procedure 0-Project Initiation

PEP 200
Page 1 of 9
PROJECT INITIATION
Rev Date: 21 May 2009
TABLE OF CONTENTS
SECTION
PAGE NO.
1.0
PURPOSE AND SCOPE............................................................................................. 2
2.0
DEFINITIONS.............................................................................................................. 2
3.0
REFERENCES............................................................................................................ 3
4.0
PROCEDURE.............................................................................................................. 4
5.0
RECORDS................................................................................................................... 9
6.0
FORMS AND EXHIBITS.............................................................................................. 9
CONFIDENTIAL AND PROPRIETARY

Copyright 2008 Washington Group International, Inc. (Ohio) ALL RIGHTS RESERVED
PEP 200
Page 2 of 9
PROJECT INITIATION
1.0
PURPOSE AND SCOPE
The purpose of this procedure is to define the activities that generally need to be accomplished during
the project initiation phase of a project.
The fundamental objective of project initiation process is to:
Assemble a team of competent and skilled functional specialist's

Develop a project execution plan
Implement the policies, procedures, systems and applications that will be used to manage the
work. This includes:
Cost management and change control
Schedule development
Quantity tracking
Safety management
Quality management
Risk management
Communication management
Document control
Financial systems
Cornerstone Applications
Align the team with the mission, goals and objectives of the project; and the methods to
accomplish them
The scope of project initiation phase is defined as the phase of the project that begins with an
authorization to proceed with the work until such time that:
All key team members are in place

An initial project execution plan has been developed and approved by operations management
All systems and applications are running properly and data is being loaded
All initial team building and training activities have been completed for key team members
Initial project status report(s) have been developed
The actual time period will vary based on the size and complexity of the project, but will generally be 1 to
4 months.
2.0
DEFINITIONS
2.1
Authorization to Proceed/Notice to Proceed
Written authorization from the Client to the Company to proceed with the project.
2.2
Contract Data Sheet and Billing Instructions
Company form required to be completed in order to obtain a project job number. The form includes
critical Client and project commercial information required to set up and invoice under the contract.

PEP 200
Page 3 of 9
PROJECT INITIATION
2.3
Contract Briefing Document
A document prepared by the Project Management/Legal summarizing contractual information that is

essential to successful contract performance. Prepared for contracts with a value greater than
$1,000,000 or for projects with special contract considerations. The Project Manager may request an
abbreviated document for contracts with a value less than $1,000,000.
2.4
Project Manager Letter of Instructions
A document that may be prepared by Company Management to the Project Manager providing direction
on the issues important to the success of the project and outlines the expectations for the project team.
The Letter of Instructions provides the formal delegation of responsibility to the Project Manager for the
execution of the work and defines the Project Managers range of authority.
2.5
Kick-Off Meeting
A meeting conducted by the Project Manager communicating to the project team the scope of the work,
the execution plan, critical schedule milestones and key contract information.
2.6
Project Initiation Checklist
The checklist is a document that identifies all the activities and tasks that need to be accomplished
during the project initiation phase of the project.
2.7
Issue Authorization and Maintenance for Use
The Project Management Functional Leader is responsible for the maintenance of this procedure and will
review the procedure annually to determine any necessary updates. Should an individual employee
have a suggestion for improvement or modification to this procedure, he or she may mark-up a copy of
the PEP and send to the Project Management Functional Leader for review. The Project Management
Functional Leader will review the recommended changes and respond back to the employee on plans to
address the suggestions. Changes to the procedure will be distributed to other Corporate Department
Managers and Corporate Functional Leads for their concurrence. When the reviews are complete, the
Project Management Functional Leader will consolidate and recommend changes to this PEP to the
Senior Vice President, Project Operations who has the authority to issue revisions to this PEP.
3.0
REFERENCES
3.1
PEP 200A, Project Review Board - Project Initiation Support
3.2
PEP 201, Scope of Work Document
3.3
PEP 202, Project Execution Plan

PEP 200
Page 4 of 9
PROJECT INITIATION
4.0
PROCEDURE
4.1
Process Work Flow Chart

PEP 200
Page 5 of 9
PROJECT INITIATION
4.2
Process Work Flow

A. Authorization to Proceed/Notice to Proceed
Action By
Action
Group Business Development

Manager
1. Receives the customer's Authorization to Proceed or Notice to

Proceed.
Project Manager Nuclear

Quality Manager and
responsible Nuclear Operations
VP or Director
2. For contracts that impose the Nuclear Quality System Manual, a

review is performed to verify that the contract is consistent with
the proposal and that the scope of work is within company
capability. A Contract Order Entry Evaluation Form, 200-N-03 (M),
is executed to document this review.
Project Manager/Project
Controls Manager
3. Initiates and submits Contract Data Sheet and Billing Instructions

Form, 200-01 (M), to operations personnel authorized to assign
job numbers.
Project Manager in conjunction

with Company Legal
4. Verifies that
authorization.
the
Company
has
received
proper
contract
5. Distributes the approved Contract Data Sheet, Billing Instructions

and Contract Documents, as defined by specific Group guidelines.
Project Manager
6. Receipt of approved Contract Data Sheet with Job Number

assigned becomes the Project Manager Authorization to Proceed.
7. In cases where a formal contract has not been received, the
Company does not proceed past the limit to perform services
identified in the Authorization to Proceed/Notice to Proceed.
Construction
8. Does not start until the contract is signed unless approved in writing
by appropriate Company Management.
B. Final Proposal Document

Action By
Action
Project Manager
1. Obtains a copy of the final proposal document, including any

negotiated changes that form the basis of the contract, to use in
finalizing the scope of work, defining the division of
responsibilities, confirming budgets, and preparation of detailed
schedules.
2. Distributes a copy of the final proposal to appropriate project team
members.
Proposal Manager and Project

Manager
3. Jointly review the proposal to provide continuity if the Proposal

Manager is not assigned as the Project Manager.

PEP 200
Page 6 of 9
PROJECT INITIATION
C. Contract Briefing Document

Action By
Action
Project Manager/Legal
1. Prepared at the time of the Authorization to Proceed/Notice to

Proceed.
2. The Contract Briefing Document includes payment terms, change
clause, notice requirements, bonus/liquidated damage provisions,
force majeure, warranty, completion sequence, termination for
convenience, suspension, termination for default, insurance
requirements,
indemnification,
authorized
representative,
confidentiality, dispute procedures, governing law, limitation of
liability, consequential damages and other topics as appropriate.
3. Reviews the document with the project team during the Kick-Off
Meeting or other scheduled time.
Project Manager
4. Incorporates the Contract Briefing Document into the Project

Execution Plan.
D. Project Manager Letter of Instructions (if applicable)

Action By
Action
Group/ Company Management
1.
Prepares Letter of Instruction to Project Manager at the

Authorization to Proceed providing formal delegation of
responsibility and defining the Project Managers range of
authority.
Project Manager
2.
Initiates Contract Briefing Document, Project Execution Plan, Risk

Management Plan and schedules the Kick-Off Meeting.
E. Insurance Information
Action By
Action
1. Ensures that Corporate Insurance obtains a copy of the insurance

information used for the Project Estimate, and distributes the
insurance information to appropriate Project Team members.
2. Contacts Corporate Insurance to obtain location codes, auto
insurance packets, insurance certificates, surety bonds, and to
start builder's risk or other specific coverages, etc., as required by
the contract. Failure to do so could place the Company at risk.
3. Obtain from Risk Management Organization a Risk Management
Start-up Kit.

PEP 200
Page 7 of 9
PROJECT INITIATION
F. Tax Information
Action By
Action
1. Ensures that the Tax Department obtains a copy of the tax

information used for the project estimate, and distributes the tax
information to the appropriate Project Team members.
G. Confidentiality Agreement
Action By
Action
Project Manager
1. Ensures that the Legal Department obtains an explanation of and a

copy of any confidentiality agreement that is to be used on the
project.
Company Management,
Project Manager, and
Legal Department
2. Jointly review confidentiality agreement prior to signing. If the

client, a supplier, or any other party requests Company personnel to
sign a confidentiality agreement, company Legal shall be contacted
and the document reviewed and permission granted or denied.
H. Agreement with Affiliate Companies

Action By
Action
Project Manager
1. Coordinates with the Legal Department to obtain agreements for

services of affiliate companies, where applicable.
I.
Kick-Off Meeting
Action By
Action
Project Manager
1. Conducts the project kick-off meeting and presents the following

information as applicable to the project team:
a. Information known about the project.
b. Other participants (both the Company and customer) roles and
responsibilities.
c. Contract number for the project and key Terms and Conditions.
d. Advises to proceed with obtaining engineering licenses and
construction permits.
e. Advises engineering of the account number structure for the
project.
f. Discusses the significant schedule milestones.

PEP 200
Page 8 of 9
PROJECT INITIATION
Action By
Action
g. Advises appropriate management representatives of work force
requirements.
h. Assigns Project Execution Plan
responsible functional groups.
(PXP)
sections to
the
i. Advises personnel of forthcoming site visit, if applicable.

j. Requests lists of needed information.
k. Establishes the Computer Aided Engineering
requirements for the project, if applicable.
(CAE)
l. Advises Process/staff to proceed with equipment lists and other

engineering control documents.
m. Advises Engineering Departments to proceed.
n. Establishes Procurement and Materials Management planning
meeting to establish the Procurement Plan.
o. Ensures that Project Engineering Manager reviews the
subcontracting plan for requirements for special handling,
storage, and maintenance of materials and equipment.
p. Project Manager is highly encouraged to incorporate some or
all elements of Companys Project Team Training modules as
part of the project kickoff to ensure team (including client)
alignment. Specifically recommended modules are Pre-Project
Planning, Team Building, Project Controls and Change
Management, and Managing Project Risk.
q. Establishes timetable for project reviews and meetings (internal
and external)
r. Establishes Project Document
(including proposal files).
Control
Center
s. Risk Management Plan

t. Scope of Work
u. Design Basis
v. Confidentiality Agreements
(PDCC)
PEP 200
Page 9 of 9
PROJECT INITIATION
Action By
Action
2. Presents Contract Briefing information.
Project Manager
3. Presents Risk Management Plan information.
J.
Prepare Project Initiation Checklist and Implement
Action By
Action
Project Manager
1. Uses sample project initiation checklist 200-02 (S) to prepare a

project specific initiation checklist
2. Assigns specific tasks on the project initiation checklist to team
members.
Team Members
3. Review the project initiation checklist for completeness and

applicability to the project Discusses revisions with the PM and
establishes dates for completion.
4. Execute assigned tasks
Project Manager
5.0
5. Monitors progress and reports status of project initiation progress to

team, Group management, and Client.
RECORDS
The following records are maintained:

A copy of Project Contract Data Sheet, Final Proposal Document, copy of signed Contract, and the
Insurance Certificates are retained in the project files for the duration of the project. After project
completion they are processed in accordance with the procedure for Record Filing, Retention, Retrieval
and Destruction of Documents (See PEP 316).
6.0FORMS AND EXHIBITS
6.1
200-01 (M), Contract Data Sheet and Billing Instructions Form
6.2
200-02 (S), Project Initiation Checklist
6.3
200-03 (S), Project Manager Letter of Instruction
6.4
200-04 (S), Contract Briefing Document
6.5
200-N-03 (M), Contract Order Entry Evaluation Form


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PEP 200

Rev Date: 21 May 2009

PURPOSE AND SCOPE............................................................................................. 2

FORMS AND EXHIBITS.............................................................................................. 9

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

PURPOSE AND SCOPE

Assemble a team of competent and skilled functional specialist's

All key team members are in place

Authorization to Proceed/Notice to Proceed

Contract Data Sheet and Billing Instructions

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

Contract Briefing Document

A document prepared by the Project Management/Legal summarizing contractual information that is

Project Manager Letter of Instructions

Project Initiation Checklist

Issue Authorization and Maintenance for Use

PEP 200A, Project Review Board - Project Initiation Support

PEP 201, Scope of Work Document

PEP 202, Project Execution Plan

CONFIDENTIAL AND PROPRIETARY

Process Work Flow Chart

Rev Date: 21 May 2009

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

Process Work Flow

Group Business Development

1. Receives the customer's Authorization to Proceed or Notice to

Project Manager Nuclear

2. For contracts that impose the Nuclear Quality System Manual, a

3. Initiates and submits Contract Data Sheet and Billing Instructions

Project Manager in conjunction

5. Distributes the approved Contract Data Sheet, Billing Instructions

6. Receipt of approved Contract Data Sheet with Job Number

B. Final Proposal Document

1. Obtains a copy of the final proposal document, including any

Proposal Manager and Project

3. Jointly review the proposal to provide continuity if the Proposal

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

C. Contract Briefing Document

1. Prepared at the time of the Authorization to Proceed/Notice to

4. Incorporates the Contract Briefing Document into the Project

D. Project Manager Letter of Instructions (if applicable)

Group/ Company Management

Prepares Letter of Instruction to Project Manager at the

Initiates Contract Briefing Document, Project Execution Plan, Risk

1. Ensures that Corporate Insurance obtains a copy of the insurance

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

1. Ensures that the Tax Department obtains a copy of the tax

1. Ensures that the Legal Department obtains an explanation of and a

2. Jointly review confidentiality agreement prior to signing. If the

H. Agreement with Affiliate Companies

1. Coordinates with the Legal Department to obtain agreements for

1. Conducts the project kick-off meeting and presents the following

CONFIDENTIAL AND PROPRIETARY

Rev Date: 21 May 2009

i. Advises personnel of forthcoming site visit, if applicable.

l. Advises Process/staff to proceed with equipment lists and other

s. Risk Management Plan

2. Presents Contract Briefing information.

3. Presents Risk Management Plan information.