Project Name : Malaysia Sarawak Methanol Project

INSTRUCTION Job No. : SC-6332

TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

ATTACHMENT 8

Quality Control Requirement

 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

1. GENERAL

1-1. This Appendix 14 describes SECL’s minimum requirements for Subcontractor’s Quality
System.

1-2. Subcontractor shall prepare specific Quality Plan covering as applicable, quality objective & index,
organization chart with detail work description & communication scheme, construction and pre-
commissioning activities. These quality documents shall be submitted to SECL for review and
approval no later than thirty (30) calendar days after the effective date of this Contract.

1-3. Subcontractor shall plan, organize, control and execute all WORK in accordance with Approved
Quality Plans, Inspection and Test Plans (ITP) and documented procedures.

1-4. Subcontractor to submit the following quality document for approval prior to start the work / during
construction:

(1) Quality Organization including resumes with respective roles and responsibilities

(2) ITPs (Inspection and Test Plan) when any specific ITPs are required by
subcontractor. If SECL’s ITPs are used, subcontractor shall receive SECL’s ITPs
and provide written acknowledgement concerning work activities and inspection
levels identified.
(3) Three Months Quality Look ahead schedule (This shall be updated monthly and
submitted)
(4) Material Purchasing and Material Control Plan supplied by Subcontractor
(5) Respective applicable code and standards/ local regulation to be followed for
execution of the work.
(6) Third Party Inspection (TPI) Plan for Batch Plant, NDT, PWHT, PMI, Testing Lab,

Survey, etc. if any

(7) Inspection Items provided by subcontractor shall be categorized in the following
group
. Need stage wise inspection with hold points to be cleared by SECL and Third
 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

Party Inspection (TPI) Company.

. Materials need only inspection by Samsung and TPI
. Items only to be inspected by Subcontractor and review of document by Client
(8) Area of Quality Concern and corrective action

(9) Discipline Handover Plan and document handover plan

(10) Audit Plan and finding status
(10) Site Quality Meeting agenda

(11) Nonconformance and Preventive Action Request (PAR) status with resolutions plan
(12) WPS & PQR if needed
(13) Material Test Certificates and Invoice document
(14) Punch control Plan

(15) Summary sheets or records of “Inspections or Testing” performed during the

month or certain period of the time which are referencing the evidence report or

record identification endorsed by Subcontractor & SECL QC Personnel.

(Final verification and approval will be made by SECL competent personnel)

1-5. Approved Subcontractor's Quality Control Manager shall not demobilize from the
construction site without release confirmation from Samsung's Site Quality Control Manager.

2. QMS Requirements

Subcontractor shall implement for this Contract a Quality Management System in

accordance with the latest version of ISO 9001 (Quality Management Systems -
Requirements), which is incorporated herein by reference and this Appendix 14 of Quality
Requirements. Definitions contained in ISO 9000, (Quality Management Systems –
Fundamentals and Vocabulary) latest version shall apply. In case of conflict between ISO
9001 and this Quality Requirements, the requirements shall have precedence.
 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

3. Quality Document Requirements

3-1. Subcontractor shall plan, organize, control and execute all WORK in accordance with
SECL’s Quality Plan(s), Inspection and Test Plans (ITPs) and documented procedures.
The Quality Plan(s) shall ensure that quality personnel and processes and that the WORK is
completed in strict compliance with all provisions of this Contract.

3-2. Subcontractor shall prepare a narrative project specific Quality Plan including when
applicable, the Construction Inspection & Test Plans and procedures, covering as applicable,
design, procurement, construction and pre-commissioning activities in accordance with the
latest version of ISO 10005 (Quality Management Systems - Guidelines for Quality Plans)
and this requirements and submit it to the SECL Representative for review and approval no
later than thirty (30) calendar days after the effective date of this Contract. The minimum
requirements for the content of the Construction Inspection and Test Plans are specified in
this Quality Requirements. Subcontractor may adopt any pre-approved SECL Typical
Inspection and Test Plan (SITP) and associated SECL Inspection Checklists (SIC) in lieu of
its own Inspection and Test Plans and Procedures. Subcontractor may customize the SITP
and SIC to suit the scope of WORK, with the approval of SECL Representative.

3-3. Subcontractor shall submit its own ITPs using the provided “Project Standard Template” by
SECL. Pending SECL’s final approval of the Inspection and Test Plans, Subcontractor shall
not permit fabrication to begin on any item required to have ITP’s.

3-4. Subcontractor shall not commence WORK prior to SECL approval of the applicable ITP.

3-5. If Subcontractor adopts the SECL Typical Inspection Plans (SITP) and SECL Inspection
Checklists (SIC) in its Quality Plan, it shall include a list of applicable SITPs for execution of
the scope of the WORK in accordance with this Contract. When any part of the scope of
WORK is not supported by a SITP(s), Subcontractor shall prepare an Inspection and Test
Plan(s) and supporting checklists and submit to SECL for approval a minimum of 30 days
prior to the start the activity.

3-6. Subcontractor shall modify its Quality Plan(s) and SITPs, when applicable, to reflect any
significant changes identified by Subcontractor or SECL in return. Subcontractor’s revised
Quality Plan(s) or SITPs shall then be resubmitted for SECL’s approval within seven (7)
calendar days from date of return.
 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

3-7. The latest revision of Subcontractor’s Quality Manual and applicable Quality Plans and all
referenced documentation shall be available for SECL’s use at the Subcontractor's design,
procurement, fabrication and installation or construction locations. Reference documents
include all those contained in drawings, specifications and procedures for the inspection of
equipment and materials to be fabricated or constructed at the applicable site.

4. Internal Audit

4-1. Subcontractor shall conduct internal audits covering WORK Phases or Contracts with
duration of six months or longer. This shall include audits of the Subcontractor's quality
function and obligations as described in the SECL approved quality plans, this Contract, and
ISO 9001. This program shall also include scheduled Quality System audits for all
subcontractors with work scheduled to exceed six months in duration.

4-2. Subcontractor shall submit a quality audit schedule to the SECL Representative for review
and approval within thirty (30) calendar days from the effective date of this Contract. As a
minimum, full quality system audits shall be carried out at fifteen percent (15%) and sixty
percent (60%) of completion stage for the Design, Procurement, and Construction WORK
Phases.

4-3. All audits shall be executed by quality system auditors (qualified by SECL Quality Manager)
not directly responsible for the area being audited, or by an approved third party agency.

4-4. Subcontractor shall investigate root causes and initiate corrective actions for nonconformities
identified in each audit. Subcontractor shall verify implementation and close out of corrective
actions prior to the next scheduled audit.

4-5. Subcontractor shall submit to the SECL Representative a copy of each audit report within
two (2) weeks of its completion.

4-6. The SECL Representative or his nominee shall be invited to participate in all audits. Audit
notifications and agenda shall be submitted to the SECL Representative fourteen (14)
calendar days in advance.
 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

4-7. SECL shall be entitled to have the SECL Representative or his nominee(s) to schedule and
conduct quality assessment of the Subcontractor’s quality functions and obligations.

5. Quality Resource Management

5-1. As a minimum, Subcontractor shall assign SECL approved quality personnel to the WORK in
accordance with the following table V-1. With SECL approval, inspectors may be qualified to
inspect more than one discipline; in this case, however, he may not fulfill more than one full
time position at any time.

Table V-1 Construction Phase Quality Personnel Requirements

Position Primary Subcontractor

Quality Assurance Manager One (1), Full Time

Quality Control Manager One (1) site QC Manager, Full Time

Quality Control Supervisor One (1) per discipline, Full Time

Procurement Quality Control
One (1), Full Time
Supervisor

Construction Discipline Primary Inspectors ( Subcontractor)

Inspection Discipline: Civil / Structure

One (1) per 25 Carpenters and Ironworkers*,
Bridges/ Buildings
Full Time
One (1) per 15 earthwork machines or one Inspector
Earth Work / Paving
per 00 laborers*, Full Time
One (1) per 25 Carpenters and Ironworkers*,
Foundation / Concrete
Full Time
Steel Structure One (1) per 25 Installers*, Full Time
Batch Plant
One (1) per Batch plant, Full Time
(Concrete & Asphalt)
U/G Piping (RTR/PVC/CPVC) One (1) per 15 Installers*, Full Time

Plumping One (1) per 25 Installers/Craftsmen*, Full Time

 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

Construction Discipline Primary Inspectors ( Subcontractor)

HVAC One (1) per 15 Installers*, Full Time

Inspection Discipline: Mechanical/ Piping

Rotating Equipment/ Mechanical One (1) per 15 Workers*, Full Time

Static Equipment/ Mechanical One (1) per 20 Workers*, Full Time

Piping One (1) per 20 Workers*, Full Time

Valves Testing One (1) per Hydrostatic Testing Location, Full Time

Coating and Insulation
Lowering, Padding, Bedding and
Backfilling
Hydrostatic Testing Coordinator
One (1) per 3 Crews per Work Site*, Full Time
One (1) per Work Site*, Full Time
One (1) by Subcontractor, Full Time

Inspection Discipline: Welding

Shop Welding One (1) per 15 Welders*, Full Time

Field Welding One (1) per 10 Welders*, Full Time

PMI One (1) Technician per Analysis Unit, Full Time

One (1) per 10 Heat Treatment Technicians*,
Heat Treatment
Full Time
One (1) NDT Coordinator per Work Site and/or
NDT
Fabrication shop, Full Time
RTFI One (1), Full Time

Inspection Discipline: Electrical / Instrumentation / Communication

One (1) per Every 20 Labors/ Technicians per Work
Electrical
Site*, Full Time
One (1) per Every 25 Labors and/or 3 Crews*,
Instrumentation
Full Time
Safety Relief Valves One (1) per Crew, Full Time

Communication One (1) per Work Site, Full Time

*Notes to the above (Table V-2):

 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

1. If the ratio between workers/labors/welders/technicians etc. that are performing the activity and
QA/QC inspectors is not met or not specified, a minimum of one inspector shall be assigned by
SECL for each position above.

2. If the ratio is met, but the work is distributed in various sites which are far from each other, then
a mean of transportation shall be provided or one inspector per work location shall be assigned.

3. The same is applicable for the ratio of QA/QC inspectors and QA/QC supervisors if the ratio is
not met or the number is not specified. This note applies to Table V-1 above.

4. In order to avoid delays of construction schedule due to insufficient inspectors, Subcontractor

shall provide sufficient manpower, such as inspectors or others, even though the above
mentioned ratio is met.

6. Others

6-1 All of the measuring instruments, measurement standards shall apply to the control,
calibration, and maintenance of inspection, measuring, and test equipment used to
demonstrate or verify the conformance of products to specified in SECL Inspection,
Measuring and Test Equipment Control Procedure.

6-2 SECL’s Field Material Control System (FMCS) shall apply to the WORK and follow its Plan /
Actual data for measuring construction quantities under supervision by SECL representative.

6-3 Each Discipline Rejection rate for the WORK such as Plan vs Actual for Inspection & Test
and its Rework Cost shall be verified by SECL Representative on weekly basis and
Subcontractor shall comply with SECL instructions regard to reduction of discipline rejection
and Subcontractor shall submit the corrective actions to SECL for review and approval.

6-4 NDT subcontractor shall submit NDT reports including RT film directly to SECL QC within 24
hours after taken RT on the weld joints regardless of any type of subcontract agreement.
 Project Name : Malaysia Sarawak Methanol Project
INSTRUCTION Job No. : SC-6332
TO BIDDER ITB No. : SC6332-C-01
Rev No. : 0

6-5 Subcontractors shall acknowledge and keep the conditions of payment. For key construction
activities which are described in the ITPs as witness or hold with relevant records (Such as
NDE, PWHT, Pressure Test, Equipment Install etc…) , Subcontractor shall meet the final
conditions.

1) Physical work completion in accordance with DWG, Specification, Code and

Procedures.

2) All the inspection or Test Reports for Key Construction Activities shall be

endorsed by SECL Quality Representative for its acceptance.

3) When subcontractor submit the invoices or official request for progress payment

Works, all the documents mentioned in 2) above or summary sheet of

Inspection/Test report which were verified by Quality Representative shall be

submitted as well.

4) Any critical NCR or CAR which is deemed recognized affect to next steps of work
activity or final consequences of the work in negative way, this shall be cleared prior to
proceed any final or proceeding inspections. If Subcontractor fails to clear any NCR prior to
perform any final or proceeding inspections, the inspection can be rejected or not accepted
by SECL.