CS WUR CONTRACT HIGHLIGHTS

IMPROVEMENT FROM CS WUR LONG TERM CONTRACT

Contract Items Improvement from CS WUR LT Contract

Scope Of Work More detailed scope of work description on
every unit rate items, tabulated in Exhibit A1.
HES compliance Adopting the latest IBU HES standards &
procedure include: MSW, MVS, IIF, BBS, etc.
Engineering Standard Adopting Chevron Engineering Standard (CES)
in addition to CPI Standard
Project Control & Improvement on reporting, scheduling, and
Scheduling planning system, utilizing Primavera P6 ® as
Project Control software
Contractor Training Requirement of Contractor’s employee training
Program program (in-house or 3rd party)
Area of Operation Unit rate is available for non-remote & remote
area

© 2011 Chevron 8
 CS WUR CONTRACT HIGHLIGHTS
IMPROVEMENT FROM CS WUR LONG TERM CONTRACT

Contract Items Improvement from CS WUR LT Contract

Billing Process Monthly payment: 90% (physical completion) + 10 %
(mechanical acceptance completion);
No Retention required.
Construction Equipment >100t Crane, Rough Terrain Scissor Type Manlift
Rough Terrain Telescopic Boom Type Manlift,
HES requirement • Buddy System
• TMP (water filled interlocking Jersey type traffic
barricades and portable speed bumps)
• Portable Toilets
• Driver Coaching
• HES Pass port
Subcontractor / Supplement • Contractor shall be capable utilizing personnel
Provision directly hired by the Contractor except at times
when short term peak demands necessitates the
use of supplemental labor or Subcontractor.
• Requires Company approval for
Subcontractor/supplement

© 2011 Chevron 9
 CS WUR CONTRACT HIGHLIGHTS
Contract Administration Governance Model

CPI ECM
DELEGATION OF AUTHORITY:
• Program Management
• Work Authorization
• Contract Administration

LEGAL: OPERATIONS:
• Contract Ts&Cs • Engineering
• Management System • Project Management:
• Work Authorization •Project Controls
• Accrual & Billing: •Work Acceptance
•Work •Process Improvement
• Acceptance
•Invoicing & Payment • Construction Supervision:
CS WUR / •HES
RUR •QA/QC
•CEM
• Quality Acceptance
© 2011 Chevron 14
 CS WUR CONTRACT HIGHLIGHTS
Work Order Sequence

Work Allocation Plan

• Users provide work plan, 1 year look ahead
• The Plan will be the basis for allocating WAP to CS WUR

Work Assignment Proposal / WAP (formerly RWP)

• WAP will refer to work allocation plan, otherwise considered
as unplanned work

Service Request / SR (formerly WR)

• Approved WAP formalized to SR issuance to CS WUR

Work Execution
• Work Progress is recorded in CCMS, include RCO if required

Close Out
• Work Acceptance Certificate

© 2011 Chevron 15
 CS WUR CONTRACT HIGHLIGHTS
Work Assignment Proposal and Service Request Time Line

SR Start SR End
Date
Date

WAP Process Pre-Construction Construction Post-Construction

2 weeks SR Period 2 months

• SR Owner issue • Site Survey

WAP to CS • CEP Approval • Construction Activity • WAC Issuance
• CS to confirm • Pre KOM/KOM • MAC Issuance • Close Out process
within 3 days • Site KOM/MTO

SR start date can be at (shall be defined

during WAP process):
1. CEP approval
2. Pre KOM or KOM
3. Site KOM or MTO

© 2011 Chevron 16
 CS WUR CONTRACT HIGHLIGHTS
Penalty and Billing

Mechanical Completion
(Exh. A-18.1)

Late Start Penalty Complete

Late Close Out Penalty
Tagged
Tight
Adequately tested
Safe
Clean
Checked and in working order
Ready to be operated or used

Commencement SR Closure
Date of SR Certificate
Certificate of Certificate of Work
Physical
Completion Mechanical Acceptance
Signed by CPI Acceptance Released by CPI
Released by CPI

2 Months Mechanical Guarantee

Hand Over of Facility Custody
Execution (Performed all Work Activities) To Company
Close Out Process

SR Period

Billing 90% Billing 10%

© 2011
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Service Request (SR)

 Company will issue SR to Contractor covering all required matters for the
performance of each specific work or part of the work by Contractor including scope
of work, SR Start Date, SR End Date, applicable unit Rates and other required items.
 Contractor shall conduct survey and ensure the feasibility and operability
(constructability review) of Work requested by Company.
 Company’s and Contractor’s approvals to each SR are required before the work in
such SR can be performed by Contractor and before the authorization of payment
can be made at the completion of each scope of work.
 Contractor has no right to refuse to perform any SR as long as it is not against this
Contract and there is no pending agreement correlated to the compensation or other
important items correlated to the performance of such SR.
 At its own discretion, Company can determine that Contractor refusal to perform any
SR is Contractor’s failure to carry out its obligation.

© 2011 Chevron 21
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Work Assignment Proposal (WAP)

 Before releasing SR, Company will issue to Contractor a WAP to request Contractor
to review and confirm terms and conditions in the WAP.
 Contractor may propose changes to the terms and conditions of the WAP if consider
inaccurate or not doable such as unrealistic schedule or improper scope of work.
However Company has the sole right to decide the final term and conditions of the
WAP.
 Contractor shall give confirmation to the WAP within three (3) days. If after three (3)
days Contractor failed to give the confirmation, Company consider Contractor has
accepted the term and condition of the WAP.
 Company will provide two (2) weeks between WAP issuance date and SR Start Date,
unless Company Representative and Contractor agree to shorter and longer time.
 In emergency situation, Company may request Contractor to provide Services before
the SR is issued; Contractor shall execute such emergency Services. Company
shall, within two (2) days after the request for such execution of the Services, issue
written SR for such Service.
 Company has a full right to cancel the work Order. If cancelled, Company may only
© 2011 Chevron be liable for direct costs which may be due to Contractor up to the cancellation date. 22
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 SR Closure
 Within two (2) month as of issuance of Work Acceptance Certificate (WAC) by
Company, Company and Contractor shall close-out each SR.
 Unless specified differently by Company, at minimum or as applicable Contractor
shall submit the following documents for SR closure:
1. As-built drawing
2. Material usage report
3. Copy of invoice documents
 Contractor shall provide 1 copy of SR closure documents in CD Format and the
hardcopy original to Company.
 Report and Schedule & Cost Control
 Contractor shall furnish Company with weekly reports containing significant
information of work progress, resource loading, and material usage, which will allow
Company to appraise each and overall work status.
 Contractor shall provide the Monthly report by the tenth (10th) day of each month.
Contractor shall supply additional reports if required by Company. Company will
require a minimum of three (3) copies of all reports required.
© 2011 Chevron 23
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Report and Schedule & Cost Control

 The specific list of reports and their reporting frequency is to be discussed and
agreed with Company. It is not expected that each of the following be separate
reports, but can be combined into broader reports with this information included.
(A) Construction
o Construction Plan and Status
o Material Status and Report
o Over, Short and Damaged
o Subcontracts Tabulation
o Construction Photographs
o Work Force Status
o Weekly Construction Plan
o HES Tabulation
o Construction Man Hour
(B) Quality Program
o Government Regulation Status
o Audit Summary and Status
o Quality Problems and Action Taken
o Overview of Nonconformance Design Improvement
© 2011 Chevron 24
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Report and Schedule & Cost Control

 Contractor shall implement schedule and cost control during the performance of the
work. Schedule achievement and expenditure shall be routinely reported to
Company. Contractor shall obtain Company’s approval on scheduling and cost
control methods and their reporting.
 Construction manpower/manhour and construction equipment hours estimates shall
be prepared by Contractor in each proposal to the inquiry for proposed SR.
 Contractor shall submit graphs or tabulations projecting average monthly direct
labor manpower and equipment levels during construction.
 Contractor shall provide and submit to Company, Monthly Project Status Report by
the seventh (7th) day of each month, which is including:
1) Construction manpower and manhour curves showing plan and actuals.
2) Construction craft totals.
3) Total direct manpower; plan versus actual.
4) Indirect Contractor supervision staffing plans, supported with an organization
chart, listing positions and duration in the field.
5) Construction equipment usage curves showing plan and actuals.

© 2011 Chevron 25
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Report and Schedule & Cost Control

 Contractor shall prepare and submit to Company Project Cost Report by the
seventh (7th) day of each month. This report shall be consistent with the level of
detail specified in the Project Code of Accounts and contain the following elements:
1) Original SR Value
2) Approved Changes
3) This Month
4) Cumulative
5) Current SR Value
6) SR Payments to date
7) Pending Changes\
 Percentage Progress curves shall be produced and delivered by Contractor to
Company by the seventh (7th) day of each month comparing actual and projected to
planned budget of the work.
 Contractor shall provide earned payment schedule and anticipated progress
schedule by the seventh (7th) day of each month.

© 2011 Chevron 26
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Report and Schedule & Cost Control

 Contractor shall prepare and maintain a Work 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. 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. Various detail
schedules or reports shall also be prepared by Contractor to meet the project
requirements as agreed with Company.
 Standby Cost
 In the event the work being performed by Contractor has to be delayed or stopped
due to conditions under Company responsibility such as the unavailability of
materials, engineering drawings, land indemnification, or Changes in scope of work
and such delay has caused the Contractor’s crew and equipment cannot work and
have to standby at Job Site for more than six (6) hours per occurrence, Contractor
may propose reimbursement to Company for the cost incurred for the standby of
crews and equipment with the following conditions:

© 2011 Chevron 27
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – Scope of Work

 Standby Cost
 Contractor has notified in writing to Company since the beginning of the delay that
caused the crew and equipment cannot work and have to standby at Job Site.
 Contractor has made maximum effort to minimize the number of crew and
equipment standby at the Job Site by re-assigning them to other Job Site.
 Contractor has recorded and obtained Company’s Approval to the list of crew and
equipment that standby and standby hours at the Job Site for each day of
occurrence.
 Claims for reimbursement of standby cost has to be made by Contractor to
Company for the Direct Cost actually incurred to Contractor for keeping the crews
and equipment in standby during the hours of work delay.
 Company has the right to reject and Contractor no longer has the right to claim the
cost of crew and equipment standby in the event Contractor failed to provide the
above information or evidence of the Direct Cost incurred.

© 2011 Chevron 28
 CS WUR CONTRACT HIGHLIGHTS
EXHIBIT A – PENALTY

1. Replacement of PMT personnel without Company approval

 Rp. 100.000.000,-/person/occurrence
2. Penalty For Late Start (SR start date):
 0.1% of Total SR Value/day and max 30 days,
 At the 31st day if still fail, Company may terminate the SR without any
compensation whatsoever.

3. Penalty For Late Finish (SR end date):

 0.5% of Total SR Value/day and max 30 days,

© 2011 Chevron 29
PROJECT INFORMATION

PROJECT TITLE

CONSTRUCTION SERVICES - WORK UNIT RATE MULTIDISCIPLINE SMO AREA

Contract Number : C1668423

Type of Contract : Work Unit Rate (WUR)

Discipline Of Work : Multidiscipline (MD)

Project Area : North & South

PROJECT EARN VALUE MANAGEMENT

SCOPE OF WORK
PROJECT EARN VALUE MANAGEMENT

ANALISA EVM
 PROJECT EARN VALUE MANAGEMENT

Jika di Asumsikan ke Direct Cost OE

PROJECT EARN VALUE MANAGEMENT

Welding Simulasi
 PROJECT SUMMARY

HPS BID : Rp 585.025.645.980

HP BID : Rp 391.968.917.410 (67%<OE)
NILAI HEA : Rp 367.183.997.574
Evaluasi Method : Lowest HEA

Project Cost : Rp 352.772.025.669

Estimate Cost Completion : Rp 290.518.138.787

Age Project Completed : 20 Month

Rerata Progress Earn : Rp 19.598.445.870

KPI Welder/month : 18 Dia.inch/day

Max. Kebutuhan Welder : 54 Welder (66.897 Dia.inch)

SAMPLE SERVICE REQUEST
SAMPLE BOQ
SAMPLE WAP
 CS WUR CONTRACT HIGHLIGHTS
Closing

Thank you

© 2011 Chevron 81