DOCUMENT NO. REV.

PT Caltex Pacific Indonesia PP-MN-GG-003 1

DATE : OCT 8, 2001 SHEET : 1 OF 11

PROCEDURE PREPARED BY Damian M DMo

CHECKED BY Damian M DMo
APPROVED BY Shawn SPD

PROJECT CONTROL PROCEDURE

PT. CALTEX PACIFIC INDONESIA

REV DATE PAGES DESCRIPTION PREP’D CHK’D APP’D

0 10/8/01 ALL ISSUED FOR IMPLEMENTATION DMo DMo SPD

1 11/7/02 ALL CPI SPEC REVIEW TEAM (JG-Bekasap, TOTO, KWK-Duri, TRB) Team Team Team
 TABLE OF CONTENT

1. GENERAL...........................................................................................................................2

1.1. Scope.........................................................................................................................2
1.2. Terminology...............................................................................................................2

2. PLANNING AND SCHEDULING.......................................................................................3

2.1. Planning Philosophy...................................................................................................3

2.2. Project Control Basis and Methods .............................................................................3
2.3. Planning Activities .....................................................................................................3
2.4. Proposed Work Breakdown Structure (WBS)................................................................4
2.5. Scheduling .................................................................................................................4
2.6. Proposed Progress Measurement................................................................................5

3. MONITORING AND CONTROL........................................................................................6

3.1. Project Control Tool...................................................................................................6

3.2. Man-hours Control.....................................................................................................7
3.3. Schedule Control........................................................................................................8
3.4. Cost Control..............................................................................................................9
3.5. Change Order Control................................................................................................9

4. REPORTING.....................................................................................................................10

4.1. General...................................................................................................................10
4.2. Weekly Cost Report ..................................................................................................11
4.3. Weekly Status Report................................................................................................11
4.4. Monthly Report ........................................................................................................11

OPTIONAL ATTACHEMENTS FOR THIS SPECIFICATION:

ADDENDUM 1: “Project Specific Clarifications & Requirements”
PT. CALTEX PACIFIC INDONESIA Project Control Procedure
PP-MN-GG-003 Rev. 0

1. GENERAL
This document is a guidance to prepare a project control and reporting system required by
COMPANY.

1.1. Scope
The Project Planning and Control process is a two step procedure:
?? Planning stage and;
?? Control and monitoring stage.
Resulting from the Planning stage, a Project Baseline shall be developed. This Baseline
shall be used as a benchmark to monitor and control Project’s updated progress schedule. If
required by COMPANY, such baseline shall be submitted to COMPANY for approval.

1.2. Terminology
In this specification, the following words and terms shall have the meanings hereby
assigned to them, unless noted otherwise.
1.2.1. COMPANY
Refers to PT. CALTEX PACIFIC INDONESIA, as the ultimate user and owner,
the authorized representative of COMPANY or COMPANY third party
inspection.
1.2.2. CONTRACTOR
Refers to company selected by COMPANY, which may be responsible for the
detailed engineering design, material and equipment procurement, and
construction as specified by Contract, Scope of Work, or Work order.
1.2.3. Vendor
Refers to the company selected by COMPANY or CONTRACTOR, which is
responsible for the purchase agreement or purchase order of the goods/services
specified in this specification
Note:
?? For EPC (Engineering, Procurement and Construction) project purposes:
The terminology shall have the meanings as above.
?? For “ Direct Procurement” by COMPANY purposes:
Vendor shall also be responsible as CONTRACTOR.

1.3. Conflicting Requirements

1.3.1. In case of conflict between this Specification and its associated Specifications
and the above Codes and Standards, the Vendor shall bring the matter to the
COMPANY’s attention for resolution and approval in writing. However, the
most stringent requirement shall apply.
1.3.2. Should conflicts exist between this specification and other documents, the
following order of precedence shall govern:

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?? Purchase Order or Scope of Work.

?? Data sheets.
?? This Specification
?? Other COMPANY Specifications
?? Other Referenced Publications
?? Vendor’s Code
?? Approved for Construction Drawings

2. PLANNING AND SCHEDULING

2.1. Planning Philosophy

Planning shall be done based on criteria stipulated in the Agreement. Such planning shall
be developed so Project can be efficiently executed to meet COMPANY’s requirements
and expectations.
During the planning stage, CONTRACTOR and COMPANY key personnel shall establish
a mutual understanding on project objectives, scope and design basis in order to establish
mutually agreed "Project Control Baseline" and corresponding tools to monitor the Project.

2.2. Project Control Basis and Methods

CONTRACTOR and COMPANY shall formulate and mutually agree on Project Control
Baseline, which Project performance shall be measured, and control tools, which shall be
used to control the performance of the project.
The Project Control Basis shall include but not be limited to the following :
?? Contract
?? Schedule
?? Budget
?? Man hours Estimate

2.3. Planning Activities

The planning phase starts at the kick-off meeting. Earlier start may be performed by and
between COMPANY’s management and CONTRACTOR management after
COMPANY’s notification of contract award. The early performance is required for the
formulation of the kick-off meeting agenda, clarification of contract and / or letter of intent.
During the planning stage, CONTRACTOR shall prepare and provide:
?? Contract Master Schedule.
?? Work Breakdown Structure (WBS) and Organization Breakdown Structure (OBS)
including Leveling.
?? Project Staffing.

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?? Manpower loading and estimated man-hours.

?? Obtain COMPANY's approval on project control basis, project control tools and
method of progress measurement.

2.4. Proposed Work Breakdown Structure (WBS)

CONTRACTOR is to prepare Work Breakdown Structure (WBS) as the Instrument to
manage and supervise project.
The WBS is unique numbering systems that consist of hierarchy of logical aggregates of its
lower level elements. Selection of the appropriate level of detail for the WBS depends upon
the following matters:
?? Reporting requirements assigned by COMPANY.
?? A level of detail that is practical for data collection.
?? Inter-linkages of various tasks/activities and correspond them to the milestones of work
progress as defined in the schedule.
During the planning stage, WBS may be modified to suit the COMPANY's requirements.
WBS for each work discipline can be further broken down to drawing and engineering
documents as necessary.
All project control elements such as schedules, man-hours, deliverables, reporting, will be
organized in accordance to the mutually agreed WBS.

2.5. Scheduling
2.5.1. Schedule Structure
Schedule shall be organized in accordance to the approved work breakdown
structure (WBS) and will consists of:
2.5.1.1 Project Schedule is Contract Master Schedule (CMS) Level I.
CONTRACTOR will prepare a Master Schedule within 1 month from
the Commencement Date as set forth in project schedule in a manner and
level of detail as approved in writing by COMPANY. Total number logic
relationships shall be limited to a manageable level of detail as agreed
with COMPANY. The Master Schedule will be based on the schedule
submitted with CONTRACTOR’s proposal. Critical and sub-critical
paths will be highlighted. Planned subcontract work will be identified
and included in the network CONTRACTOR shall submit this schedule
with the Monthly Status Report. CONTRACTOR shall use MS-Project
as the scheduling program.
Plan of Early Activities – Within 1 month from the Commencement
Date, CONTRACTOR will prepare the following early activity and
submit to COMPANY:
?? Front End Schedule – summarizing the first three months’ activities
in greater detail than the Contract Master Schedule. This schedule
shall be update with the Actual progress and issued ad required and
will be discontinued when Level II and detail engineering programs
are available.

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?? Early Purchasing Plan – A plan of early critical activities designed to

produce specifications, requisitions, drawings and other documents
required for timely placement of purchase orders. Projected site
delivery dates shall be included in this plan. Until these early
activities are completed, a weekly progress report shall be submitted
to COMPANY.
2.5.1.2 Overall EPC, or Project Schedule is Contract Master Schedule (CMS)
include. Discipline Major Activities - Level II – are required within three
(3) months after the Commencement Date. These schedule are manual,
time-scaled networks for areas or units covering engineering,
procurement and construction. The data contained in the Level II
schedules may be collected and displayed on a single sheet project
summary schedule.
2.5.1.3 Discipline Detailed Activities - Level III – for planning and analysis of
the engineering, procurement and construction activities shall be
prepared utilizing the detailed Critical Path Method (CPM).
CONTRACTOR must complete the networks and have the computer
system operational within four (4) months from contract award. Total
number of logic relationships shall be limited to a manageable level of
detail as agreed by COMPANY.
2.5.1.4 Construction short-range Schedules – CONTRACTOR shall make its
short-range schedule for direct fieldwork available to COMPANY as
they are issued.
2.5.1.5 CONTRACTOR shall notify COMPANY within one (1) day of any
occurrence, which will adversely affect the Completion Date of the
WORK. CONTRACTOR shall also notify COMPANY at least once
each week that status of critical items, which could affect the Completion
Date of the WORK.
In addition, CONTRACTOR shall include a statement of proposed action
for expediting these items.
2.5.1.6 Various Detail Schedules/Reports – shall be prepared by
CONTRACTOR to meet the project requirements are agreed with
COMPANY. Listed below are typical examples:
a. Material Status Report
b. Critical Vendor Drawing List
c. Piping Isometric/Spool Fabrication Report
d. Bulk Material Quantities List – MTO and/or Installed
e. Construction Bar Chart by Area/Unit
f. Weekly Work Schedule (Level IV)
2.5.1.7 CONTRACTOR shall provide a qualified Scheduling Engineer who shall
be available from start of WORK to Mechanical Acceptance.

2.6. Proposed Progress Measurement

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Actual physical progress measurement is based on the percent complete of each activity
and/or deliverable. Actual activity and deliverable measurement will be formulated and
mutually agreed during planning stage. The percentages complete for activities/deliverables
are translated into work package and overall project percentages complete by means of
weighting factors.
The weighting factors within each work package Engineering and Construction are
determined based on the amount of manhours estimated for each activity divided by the
total amount of manhours for that work package. Especially for Procurement, the weighting
factor are determined based on estimated value for each procurement item, which divided
by total value of procurement.
The weighting factors for each work package comprising overall project will be
predetermined by COMPANY in the contract and / or bid document.

3. MONITORING AND CONTROL

CONTRACTOR shall prepare and submit to COMPANY within two (2) months from
Commencement Date, for approval a written procedure identifying the specific methods, forms,
techniques he proposes to use in project control. This will include a narrative and flow chart of the
project control system, interface relationships with other departments EPC (Engineering,
Procurement and Construction, etc.), and a description of the computerization planned. In addition,
CONTRACTOR will prepare and submit for COMPANY’s approval a work Breakdown Structure
(WBS) and Project Code of Accounts (PCA) to be used for the WORK. This is required to assure
COMPANY that CONTRACTOR is instituting all controls necessary to successfully execute the
project.
The project monitoring and control will cover minimum as follow :
1. Project Weekly Reporting
2. Schedule Control
3. Cost Control
4. Work Change Control
5. Manhours Control
6. Manpower Control

3.1. Project Control Tool

3.1.1. General
To monitor and control the project, computer software is required as an aid for
planning and control. Some software that is available:
?? Project Management Software (Microsoft Project 2000)
?? Database (Microsoft Access 2000, etc)
?? Spreadsheet (Microsoft Excel 2000, etc)

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?? Presentation (Power Point 2000, etc)

Upon the use of the above computer software, CONTRACTOR shall propose
their selection and advise COMPANY.
3.1.2. Code of Accounts
The code of accounts is numbering system used to link and computerize the
control and monitoring functions as described previously.
CONTRACTOR is to develop their cost of account that suits the project
requirement. If COMPANY require to include their code into Project’s Code of
Account, CONTRACTOR shall accommodate COMPANY’s requirement.
3.1.3. Control Forms
Control Forms are tools to be used for the orderly execution of the project control
system, refer to COMPANY’s control forms. Such form is divided into:
Authorization / Requisition form, Planning Forms, Register form, etc.

3.2. Man-hours Control

3.2.1. Man-hours Control Procedure
The Man-hours Control will depend on weekly time sheets process, overtime
authorization, and man-hours forecasting and trending. The Man-hours Control
process is summarized as follows:
3.2.1.1 CONTRACTOR personnel will prepare their own weekly time sheet and
approved by their supervisor. The weekly time sheets and corresponding
overtime authorization, if any, will then be submitted to
CONTRACTOR’s Project Control Team for recording.
3.2.1.2 Based on the recorded time utilization by each CONTRACTOR
personnel (and subcontractor, if any), man-hours will be forecasted
weekly and trended. This shall be updated weekly. Such information
shall be used for man-hours cost forecast and trending and to detect
potential man-hours cost overrun ahead of time.
3.2.1.3 If potential over-run is detected, CONTRACTOR shall analyze it to
determine the cause of the over-run. Upon finding of such cause,
corrective measure will be formulated and performed, prior to include it
in the weekly report.
3.2.2. Man-hours Forecasting and Trending
CONTRACTOR shall prepare forecast of man-hours required based on the
project requirements. The forecast is determined by considering the remaining
work.
The man-hours required for the remaining work will be trended by the
CONTRACTOR’s Project Controller.
3.2.3. Man-hours and Completion S-Curves

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The Project Controllers prepares weekly the completion and man-hours

percentages S-Curves, showing plan/estimate vs. actual and forecast man-hours,
unless specified otherwise by COMPANY.
Since the original planned/estimated completion percentages are measured based
on the original estimated man-hours, the original planned completion percentage
S-Curve coincides with that of the original estimated man-hours percentages.
The original estimate/plan will not be changed unless mutually agreed by and
between COMPANY and CONTRACTOR.

3.3. Schedule Control

3.3.1. Philosophy
Potential de lays must be detected advance in time in order to have sufficient time
to formulate and perform corrective measures and thus ensuring major activities
completion in accordance to approved CMS.
This philosophy can be successfully implemented by the following procedures:
?? Weekly plan the activities and deliverables to be executed.
?? Control and Supervise the current project activities in accordance the
preceding week plan.
?? Identify the current plan changes/variance from the preceding week plan.

3.3.2. Schedule Control Procedure

The Schedule Control Procedures are as follows:
3.3.2.1 CONTRACTOR to prepare look-ahead-schedule, by weekly, that plan
activities and deliverables to be executed in the form of bar charts
depicting weekly percent completion and the man-hours required for
each activity.
The preceding week time schedule will be adhered to as closely as
possible, while the unavoidable changes time schedule will be
implemented and noted.
3.3.2.2 Based on such plan, CONTRACTOR will convert it to computerized
detailed activities schedule, the corresponding completion man-hours and
percent completion S-Curve.
3.3.2.3 If no potential delay is detected then the detailed activity schedule shall
be included in the weekly report and issued to COMPANY.
3.3.2.4 If potential delay is detected, CONTRACTOR shall analyze it to
determine the cause of the delay. Upon finding of such cause, corrective
measure will be formulated and performed, prior to include it in the
weekly report.
3.3.2.5 CONTRACTOR shall prepare Schedule Control as follow :
?? Engineering Schedule Control
?? Procurement Schedule Control incl. Purchasing, Expediting and

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Inspection, Transportation.
?? Construction and Commissioning Schedule Control

3.4. Cost Control

The project cost will be monitored and controlled with the objective to detect potential cost
overrun sufficiently ahead of time to formulate and implement corrective measures and
thus ensures the approved budget is not exceeded.
If potential over-run is detected, CONTRACTOR shall analyze it to determine the cause of
the over-run. Upon finding of such cause, corrective measure will be formulated and
performed, prior to include it in the weekly report.
The project cost is divided into direct and indirect cost. Direct cost are included manhours,
equipment, tools, consumables and material. Meanwhile indirect cost are included project
management team, computer utilization, reproduction cost, etc.
CONTRACTOR ‘s Cost Control is concerned with :
a. Influencing the factors which create changes to the cost baseline to ensure that the
changes are beneficial.
b. Determining that the cost baseline has changed.
c. Managing the actual changes when and as they occurs.
d. Preparing summary of payment by COMPANY to contract or as well as summary of
approved change of scope. This report shall be included in Weekly Status Report.
CONTRACTOR ‘s Cost Control includes :
a. Monitoring cost performance to detect variances from plan.
b. Ensuring that all appropriate changes are recorded accurately in the cost baseline.
c. Preventing incorrect, in appropriate and unauthorized changes from being included in
the cost baseline.
CONTRACTOR will control the following costs during execution of PROJECT :
a. Man-hour
b. Labor
c. Equipment Usage
d. Material
e. Subcontract
f. Engineered Equipment
g. Expenses
h. Etc.

3.5. Change Order Control

3.5.1. Philosophy

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The proposed work change control is within the framework of COMPANY

Request for Proposal Schedule, if any. Any work change will be assessed, but
only work changes defined in Criteria of Change are included the change control
procedure. (refer to PP-MN-GG-006 – Change Order Procedure)
3.5.2. Criteria of Change
A work change is interpreted by CONTRACTOR as any alternation to activities
which results in variation from any of the following documents :
?? Reference Documents Listed below :
a. Scope of Work
b. Design Basis
c. Contract Master Schedule
d. Contract Document
Engineering documents (such as drawings, specifications, etc.) that have been
approved by COMPANY's for construction, procurement or control. Engineering
changes will be either mandatory or non-mandatory.
Work change control will be enacted after the reference and engineering
documents have been approved by COMPANY.

4. REPORTING
CONTRACTOR will consult and coordinate with COMPANY’s / Project Task Force to meet the
requirements in setting up an efficient and effective Reporting. System frame work that will enable
COMPANY and CONTRACTOR to achieve the most effective communication both internally and
externally.

4.1. General
CONTRACTOR shall provide COMPANY with accurate and complete information with
respect to the WORK already performed, in progress and planned; and the events affecting
the performance of the WORK and shall make available to COMPANY all relevant
planning and reporting documents, including electronic access to project data.
CONTRACTOR may propose his standard forms for such reports, subject to approval by
COMPANY. Consolidation of several reports on a single form is permitted provided
identification is not affected.
It is preferred for speed and accuracy that reports be set up for computer printout.
CONTRACTOR, however, may use other methods subject to approval by COMPANY
provided reports are delivered to COMPANY in a legible and timely manner.
Project reports are vehicles for project monitoring and consist of among others the
following periodic:
?? Weekly Status Reports
?? Monthly Reports

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The type and frequency of project periodic report will be modified to suit particular need of
individual project.

4.2. Weekly Cost Report

This weekly cost report will be included in the weekly report and is issued to COMPANY.
The weekly cost report includes the following:
?? Man-hours cost expended, this period and to date
?? Man-hours cost forecast through out the remaining project duration
?? Cost S-Curves showing budget vs. actual and forecast

4.3. Weekly Status Report

CONTRACTOR will prepare weekly progress report to COMPANY once a week. Such
report will be submitted at the beginning of each week.

4.4. Monthly Report

Monthly Report will be prepared by CONTRACTOR and issued to COMPANY. The
issuance schedule will be determined at the planning stage to suit COMPANY’s
requirement. The Monthly report will contain information of all weekly status report, and
organized as per PP-MN-GG-007; Contractor Monthly Report Procedure.

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