Sop Construction 68682a

STANDARD OPERATING PROCEDURE : CONSTRUCTION MANAGEMENT

GenericNo.

6 LARSEN & TOUBRO LIMITED______________ Standard Operating Procedure

CONSTRUCTION MANAGEMENT Procedure No. --------

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STANDARD OPERATING PROCEDURE : CONSTRUCTION MANAGEMENT

STANDARD OPERATING PROCEDURE

____________Construction Management ____________

Revision Status Revision No. 00

S No.

Date 20-1005

Descripti on Original

Author Asim Chaudhuri

Reviewed By xyz

Approve d By nnn

Reference

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STANDARD OPERATING PROCEDURE : CONSTRUCTION MANAGEMENT

 LARSEN & TOUBRO LIMITED L&T Energy Centre, Near Channi Jakatnaka Baroda - 390002

____________________________________

Forwarding Note and istration _______________________________________________________________________________________________________________________

This procedure is the property of E&C Division EPC POWER Execution Department of Larsen & Toubro Limited. This document is being issued for your reference while conducting any official transactions on behalf of E&C Division EPC POWER Execution. None of the procedure or information contained in this document shall be reproduced or divulged either in part or full without written permission of the H-EXEN. This document must be preserved carefully & produced / returned on demand by H-EXEN. H-EXEN/authorized person shall control the document & he/his authorized personnel shall be responsible for further revision of this document. Controlled copy of this procedure may be declared as uncontrolled when not being used on job. All chapters & their revision must be reviewed & approved by H-EXEN & accepted by MR.

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STANDARD OPERATING PROCEDURE : CONSTRUCTION MANAGEMENT

Contents _______________________________________________________________________________________________________________________

Sr. No. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Title Cover Page Revision Status Forwarding Note Contents Record of revision Abbreviations Chapter 1: Scope & Objective Chapter 2: Site Organisation Chapter 3: Project Contract Details Chapter 4: Site istration / Infrastructure Chapter 5: Construction Planning & Monitoring System Chapter 6: Documentation/Filing System Chapter 7: Interface With Other Discipline Chapter 8: Quality Control & Inspection Activities Chapter 9: Stores Management Chapter 10: Commercial Management At Site Chapter 11: Health, Safety & Environment Rules Chapter 12: Statutory Compliances Chapter 13: ISO Compliance Chapter 14: Check List For Site Closure

Page No. 01 02 03 04 05 06

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_______________________________________________________________________________________________________________________

Record of Revision _______________________________________________________________________________________________________________________

Chapter No.

Section No.

Remarks

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_______________________________________________________________________________________________________________________

Abbreviations _______________________________________________________________________________________________________________________

C&C Construction & Commissioning Department CC-1 Head – Construction & Commissioning CC-2 Resident Manager /Site-in-charge CC-3 Construction & Commissioning Co-ordinator CC-4 Construction & Commissioning Engineer - Site CC-5 Construction & Commissioning Engineer - Office CC-6 Construction & Commissioning Assistants CI Commissioning In-charge C Costing & Project Control Department Page 6 of 20

STANDARD OPERATING PROCEDURE : CONSTRUCTION MANAGEMENT

C-1 Head – Costing & Project Control C-2 Costing & Project Control Engineer DTN – Document Transmittal Note EH – Head – Execution ENGG – Engineering Department ENGM – Head – Engineering ER – Expense Report FIM – Free Issue Material FPO – Foreign Purchase Order FPR – foreign Purchase Request FQP – Field Quality Plan FH – Functional Head FTR Field Trouble Report GRN – Goods Receipt Note HQ – Head Quarter IR – Inspection Report L&T – Larsen & Toubro Limited Mech – Mechanical MIS – Management Information System MQP – Master Quality Plan Mom – Minutes of Meeting MR – Management Representative NCR – Non conformance Report PD – Project Director PE - Project engineer PM - Project Manager PMH – Head – Project Management Po – Purchase Order PR – Purchase Request PROC – Procurement Department PROC – 1 - Procurement Engineer PROC – 2 - Procurement Assistant QA&I - Quality Assurance & Inspection Department QA-1 - Head – Quality Assurance & Inspection QA-2 - Engineer - Quality Assurance & Inspection - HQ QA-3 – Engineer - Quality Assurance & Inspection – Site QAP – Quality Assurance Plan Rev. – Revision SCN - Stores Credit Note TC – Test Certificate VTER – Vendor Technical Evaluation Report Page 7 of 20

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WO - Works Order

6.1 Chapter

OBJECTIVE The CONSTRUCTION MANAGEMENT SYSTEM is compiled keeping EPC contracts in focus. The objective is to achieve highest customer satisfaction by efficient resource and cost management. Also to achieve timely completion of project with highest quality with the development of motivated teams. Project Construction team shall endeavor to execute the project to international standards towards achieving safe, reliable and environment friendly power generation at optimum cost and time and achieving total customer satisfaction. Page 8 of 20

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6.2 Chapter

As far as projects are concerned, site construction operation is one of the most important activities. The operating procedure is intended to bring uniformity in operation with some degree of standardization without adversely affecting COST, TIME and QUALITY. As the magnitude and complexities of the project increases standardization of operating procedures becomes necessary to complete the project with desired level of perfection. An attempt has been made in this volume to incorporate standardization of certain procedures to attend to important aspects of construction matters to be dealt at project site. This Procedure is intended to describe the activities / processes, which assure quality in all the work performed by Project Execution Department including its Contractors. For construction it is generally understood that our Construction Group ECC Division or any other competent agency would be employed to take care of : 1. Construiction Plant and Machinery 2. Labour alonwith field supervision 3. Construction materials/consumables like cement, aggregates, steel, gas, welding electrodes etc. 4. Installation material & any other temporary work required for construction/erection. The site engineers role would be generally restricted to Expediting and Co – Ordination, QA/QC matters, Progress / Planning and dealing with various contractual matters and certifying bills of agencies deployed to execute the job. Without Loosing the flexibility in site operations, it is intended to define a framework within which every site is expected to work. As a result of the focus on the effective management of entire projects, a number of novel organizational approaches and techniques become of interest. First and foremost is the incentive to replace confrontation and adversarial relationships with a spirit of t endeavor, partnership and accomplishment. For example, we discuss the appropriate means to evaluate risks and the appropriate participants to assume the unavoidable risks associated with constructed facilities. Scheduling, communication of data, and quality assurance have particular significance from the viewpoint of an owner, but not necessarily for individual participants. The use of computer-based technology and automation also provides opportunities for increased productivity in the process. Presenting such modern management options in a unified fashion is a major objective of this book.

SITE ORGANISATION STRUCTURE Page 9 of 20

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(SAMPLE)

P R O J E C T D IR E C T O R

P R O J E C T M A N A G E R - S IT E S T O R E S IN C H A R G E

C O N T R A C T M A N A G E M E N T E N G IN E E R

C O N S T R U C T IO N M A N G E R

C O N S T R U C T IO N P L A N N IN G E N G IN E E R

IN C H A R G E S IT E S A F E T Y

IN C H A R G E F Q A

C O N S T R U C T IO N S U P E R V IS O R

S U B C O N T R A C T O R

RESPONSIBILITY AND AUTHORITY PROJECT DIRECTOR (PD):  

Shall report to L&T Management. Shall have overall responsibility and authority for the project. His decision shall be final, in case of any disputes, which may arise during the contract execution. Page 10 of 20

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     

Shall prepare the project organisation chart as per project requirements and shall maintain it. Shall serve as a single point responsibility for Customer, Customer's Consultant and Engineering Contractor during project execution till completion of Contractual Commitments. Shall receive Customer complaints and shall be responsible for their review and resolution. Shall review the training needs of personnel and arrange for such training. Shall arrange orientation program for new entrants in the department. Shall also be responsible for the following: a) Engineering co-ordination and integration b) Cost Control c) Setting up of infrastructure at site d) Project Construction and commissioning e) Project Control f) Quality Control g) Handling amendments to Contract h) Handling of legal matters/litigation i) Analyzing and minimizing non-conformities and approval of non-conformities from customer j) Finance and s

PROJECT MANAGER – SITE (PM-ST):            

Shall report to the Project Director. Shall be responsible for the execution of the project at site. Shall interact regularly with the Customer at site and keep them informed regarding the progress. Shall identify need for technical amendments and report to PM-T. Shall identify the constraints/ discrepancies if any and report the same for resolution to the concerned. On identifying any need for amendment of the Contract by L&T or by customer, the same shall be communicated to Project Commercial Manager Stores and Material management. Shall co-ordinate with the Construction Manager for resolving any field engineering issues. Shall be responsible for overall planning and control of the project execution at site. Shall hand-over the project to the Customer after fulfilling necessary contractual obligations. Shall closely co-ordinate with the Start up and Commissioning Manger at site for smooth commissioning of the plant on time. Shall co-ordinate customer training at site

CONSTRUCTION MANAGER:   

Shall report to the Project Manager- Site Shall receive and maintain construction scope of the work, set of complete drawings, construction and commissioning manuals, test certificates (if applicable), and other applicable documents. Shall receive and maintain copies of orders on various Erection Contractors. Page 11 of 20

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        

6.3 Chapter

Shall set up site office and stores and organize necessary infrastructure. Shall provide the supervision of all the site activities carried out by the Erection Contractors. Shall prepare site progress report. Shall review and control site progress. Shall follow the field quality plans as detailed in quality procedures for site. Shall hold regular meetings with site Contractors for progress review and monitoring. Shall ensure safety at site. Shall ensure implementation of all statutory and environmental regulations. Shall be responsible for resolution of construction punch points.

PROJECT CONTRACT DETAILS

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6.4 Chapter

SITE ISTRATION / INFRASTUCTURE

SITE ISTRATION CHECK LIST                

Instruction Letter to Client Arrange for site offices/vehicles/houses Arrange for temporary site recruits e.g. Assistants for s, Stores/Office boys etc. Maintain vehicle log book, tabulate day wise details for monthly bill of hired vehicle Maintain records for capital and non capital items Open Bank in t names (Minimum two names) for operating site s Request for site funds through Head Construction – Format attached Maintain petty cash book updating daily the expenditures Prepare ER fortnightly and forward the same with Bank reconciliation statement to HQ before 5th and 20th each month (Sample formats attached) Maintain attendance at site office and send attendance report to HQ fortnightly Maintain discipline at site in of observing working hours/ lunch timing etc. Operate proper shift system round the clock, if needed Establish communication facilities like telephone/fax/e-mail etc. generally on hire basis Establish site facilities like AC, Refrigerators etc. for site/guest house generally on hire basis Establish other facilities like computers, Xerox facility etc. generally on hire basis Insurance for costly items which are on hire

INFRA STRUCTURE Based on the contractual and conditions site set up 1. Page 13 of 20

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6.5 Chapter

CONSTRUCTION PLANNING & MONITORING SYSTEM Construction planning is a fundamental and challenging activity in the management and execution of construction projects. It involves the choice of technology, the definition of work tasks, the estimation of the required resources and durations for individual tasks, and the identification of any interactions among the different work tasks. A good construction plan is the basis for developing the budget and the schedule for work. Developing the construction plan is a critical task in the management of construction, even if the plan is not written or otherwise formally recorded. In addition to these technical aspects of construction planning, it may also be necessary to make organizational decisions about the relationships between project participants and even which organizations to include in a project. For example, the extent to which subcontractors will be used on a project is often determined during construction planning. Forming a construction plan is a highly challenging task. As Sherlock Holmes noted: Most people, if you describe a train of events to them, will tell you what the result would be. They can put those events together in their minds, and argue from them that something will come to . There are few people, however, who, if you told them a result, would be able to evolve from their own inner consciousness what the steps were which led up to that result. This power is what I mean when I talk of reasoning backward. Like a detective, a planner begins with a result (i.e. a facility design) and must synthesize the steps required to yield this result. Essential aspects of construction planning include the generation of required activities, analysis of the implications of these activities, and choice among the various alternative means of performing activities. In contrast to a detective discovering a single train of events, however, construction planners also face the normative problem of choosing the best among numerous alternative plans. Moreover, a detective is faced with an observable result, whereas a planner must imagine the final facility as described in the plans and specifications.

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In developing a construction plan, it is common to adopt a primary emphasis on either cost control or on schedule control as illustrated in Fig. 9-1. Some projects are primarily divided into expense categories with associated costs. In these cases, construction planning is cost or expense oriented. Within the categories of expenditure, a distinction is made between costs incurred directly in the performance of an activity and indirectly for the accomplishment of the project. For example, borrowing expenses for project financing and overhead items are commonly treated as indirect costs. For other projects, scheduling of work activities over time is critical and is emphasized in the planning process. In this case, the planner ensures that the proper precedences among activities are maintained and that efficient scheduling of the available resources prevails. Traditional scheduling procedures emphasize the maintenance of task precedences (resulting in critical path scheduling procedures) or efficient use of resources over time (resulting in job shop scheduling procedures). Finally, most complex projects require consideration of both cost and scheduling over time, so that planning, monitoring and record keeping must consider both dimensions. In these cases, the integration of schedule and budget information is a major concern. Estimating Resource Requirements for Work Activities In addition to precedence relationships and time durations, resource requirements are usually estimated for each activity. Since the work activities defined for a project are comprehensive, the total resources required for the project are the sum of the resources required for the various activities. By making resource requirement estimates for each activity, the requirements for particular resources during the course of the project can be identified. Potential bottlenecks can thus be identified, and schedule, resource allocation or technology changes made to avoid problems. Many formal scheduling procedures can incorporate constraints imposed by the availability of particular resources. For example, the unavailability of a specific piece of equipment or crew may prohibit activities from being undertaken at a particular time. Another type of resource is space. A planner typically will schedule only one activity in the same location at the same time. While activities requiring the same space may have no necessary technical precedence, simultaneous work might not be possible. The initial problem in estimating resource requirements is to decide the extent and number of resources that might be defined. At a very aggregate level, resources categories might be limited to the amount of labor (measured in manhours or in dollars), the amount of materials required for an activity, and the total cost of the activity. At this aggregate level, the resource estimates may be useful for purposes of project monitoring and cash flow planning. For example, actual expenditures on an activity can be compared with the estimated required resources to reveal any problems that are being encountered during the course of a project. More detailed definitions of required resources would include the number and type of both workers and equipment required by an activity as well as the Page 15 of 20

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6.7 6.6 Chapter

amount and types of materials. Standard resource requirements for particular activities can be recorded and adjusted for the special conditions of particular projects. As a result, the resources types required for particular activities may already be defined. Reliance on historical or standard activity definitions of this type requires a standard coding system for activities. Annexures: Typical schedule for combined cycle power project

References 1. Baracco-Miller, E., "Planning for Construction," Unpublished MS Thesis, Dept. of Civil Engineering, Carnegie Mellon University, 1987. 2. Construction Specifications Institute, MASTERFORMAT - Master List of Section Titles and Numbers, Releasing Industry Group, Alexandria, VA, 1983. 3. Jackson, M.J. Computers in Construction Planning and Control, Allen & Unwin, London, 1986. 4. Sacerdoti, E.D. A Structure for Plans and Behavior, Elsevier North-Holland, New York, 1977. 5. Zozaya-Gorostiza, C., "An Expert System for Construction Project Planning," Unpublished PhD Dissertation, Dept. of Civil Engineering, Carnegie Mellon University, 1988.

DOCUMENTATION / FILING SYSTEM

INTERFACE WITH OTHER DECIPLINE

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6.8 6.9 Chapter

QUALITY CONTROL & INSPECTION ACTIVITIES

STORES MANAGEMENT

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6.10 6.13 6.11 6.12 6.14 Chapter Chapter Chapter Chapter

COMMERCIAL MANAGEMENT AT SITE

HEALTH, SAFETY & ENVIRONMENT RULES

STATUTORY COMPLIANCE

ISO COMPLIANCE

CHECK LIST FOR SITE CLOSURE

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15 Chapter

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