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Attachment N

Construction Quality Assurance and Quality Control

Quality Plan:

All Contractors performing work on the Project shall implement a project specific Quality Program adequate for the Project’s quality management needs and requirements. This Quality Program shall generally conform with the requirements of ISO 9001-1994 Edition titled “Quality Systems – Model for Quality Assurance in Design Development, Production, Installation and Servicing” (Same as GOST ISO 9001) or project approved equivalent quality standard. This requires the Contractor, as a minimum, to submit a written Project Quality Plan covering the services provided by Contractor including the Quality Assurance and Quality Control measures that will be employed during the execution of the construction activities. Such written Quality Plan (including specific Inspection & Test Plans for the work activities) shall be submitted to the Company for review and approval within 30 days after Contract award, but in any case, prior to commencement of work. Contractor is required to provide a QA/QC organization chart defining each entity of the joint venture and describe how each department or discipline will document the construction and inspection activities for front end work as well as the remaining civil work including concrete placement and electrical / mechanical installation and construction. The titles of the personnel authorized to carry out these activities shall be defined, along with the requirements for these positions.

A qualified individual shall be assigned to function as Contractor’s Project Quality Manager subject to the approval of the Company. Acceptable Quality Plans will be the basis that the Company will use to monitor implementation of the Contractor’s Quality Programs. Monitoring by the Company will include activities such as reviewing documentation, observing the construction activities performed by the Contractor or his subcontractors, and performing formal audits to determine compliance with the approved Quality Plan. Copies of Audit Reports (including any findings) performed by the Contractor will be forwarded to the Company for review to determine if there are any significant conditions adverse to quality. The Contractor will assure that all necessary and pertinent quality requirements are passed on to their subcontractors and vendors.

Quality Objectives:

The main quality objectives for the Project are to ensure that the requirements that are contained in the specifications or imposed by the Design Institutes and the Company are performed by the Contractor. Procedures to verify and assure that these requirements are performed are the basis of the Contractor’s Quality Plan. These requirements are incorporated into the Contractor’s Quality Plans.

The Contractor shall ensure that:

  • All vendors, suppliers and subcontractors utilized by Contractor are qualified and employ quality assurance management systems. Vendors, supplies, and subcontractors shall be selected by the Contractor and submitted to the Company for approval.
  • All products and services, whether supplied by Contractor or their vendors, suppliers, and subcontractors conform to specifications, standards, and contractual regulatory requirements. The Construction Contractor will provide a procedure for controlling quality of the sub-tier suppliers/subcontractors and be responsible to ensure conformity to the approved Quality Plan as submitted by Contractor.

  • The facilities are constructed, installed and pre-commissioned in accordance with contract documents, including the construction documents, specifications, and standards.

The Company has the right to audit Contractor’s activities to verify compliance to their approved Quality Program.

Construction:

Contractor’s field Quality Control procedures (or Inspection and Test Plans) shall be approved and in place prior to the commencement of applicable field construction activities.

Contractor is responsible for the quality of his work and for implementing the measures necessary to achieve and document compliance with requirements which include, but are not limited to those listed below.

Company will monitor construction and Quality Control activities of Contractor. The Company will perform audits and surveillance of activities to include review of documentation to verify correctness of data, completeness of coverage, and retrievability.

The Contractor’s Quality Program shall address, as a minimum, the following elements:

Organization –

  1. A description of the proposed on-site organization (identifying the appropriate personnel of the joint venture), that will perform Quality Control (QC) activities along with resumes of key personnel. Contractor shall employ a full time qualified and experienced Quality Manager. The Company reserves the right of refusal of the proposed Quality Manager. The on-site and off-site (if any) reporting of the QC personnel shall be provided, including a narrative description of the roles and responsibilities of these personnel. A man-loaded schedule showing the numbers and duration all QC personnel shall also be provided. Clerical personnel sufficient to accomplish timely submittal of QC reports and other required documentation will be provided and shown on this schedule.
  1. A QC representative must be on-site during all working hours commencing with the lump sum portion of the contract and as a agreed to by Company for front-end construction.

Design Change Control –

Contractor shall provide procedures to control all changes or modifications to design documents and data.

Purchasing –

  1. Contractor shall provide procedures to control the purchasing activities.
  1. Contractor must obtain approval from Company for suppliers and subcontractors. This approval shall be obtained in writing prior to the start of activities.

Document Control –

  1. Contractor shall prepare procedures to control documents and data that relate to the execution of contracted work. Contractor is responsible for ensuring that documents provided for construction are maintained to the most up-to-date revisions. Contractor’s control procedure shall ensure that all necessary information is delivered to the proper locations and personnel responsible for the performance of the Work. The procedure will ensure that obsolete documents are promptly removed from all points of issue or use.
  1. Contractor shall provide free and unencumbered access to all data and documentation and shall provide copies of any required documentation to the Company as requested, at no additional cost to this Contract.

Identification and Traceability of Equipment and Material –

Contractor has responsibility for maintenance of material and equipment identification and traceability through all stages of construction. Procedures will describe the methods for maintaining traceability.

Inspection and Testing –

  1. Contractor shall provide sufficient procedures to adequately control the inspection and testing of all construction activities. These procedures shall address receiving inspection, in-process/final inspection and testing, and inspection and test records.
  1. Contractor shall maintain documentation (reports, log book, permits, as required by SNiP 3.01.01-85.
  1. Subcontractor will ensure that the Company is given sufficient time to witness tests and re-inspect work performed by the subcontractor at no additional cost. Company is not under any obligation to perform inspections of the activities. The following items are considered minimum notification:

Concrete placements24 hours

Holiday testing24 hours

Punching of lines prior to hydrotest72 hours

Pressure testing24 hours

In-process & acceptance inspection of buildings86 hours

Bolt tensioning & final steel inspection86 hours

Motor run-ins86 hours

Acceptance inspection of vessels & equipment24 hours

Post hydrotest system restoration inspection72 hours

Pre-asphalt inspection & final inspection24 hours

Cleaning/flushing inspection (piping & equipment)24 hours

Welding NDE testing (RT, UT, MT, PT, hardness,

ferrite, PMI)24 hours

Coatings, linings, insulation, cathodic

protection testing24 hours

Welder procedure testing & welder qualification24 hours

Other tests86 hours

  1. Hold points shall be established in coordination with the Company for certain construction inspection activities. These hold points are a project requirement and once established shall be adhered to.
  1. The Company will identify witness and hold points on Contractor’s Inspection & Test Plans’ documentation. The following inspections may be witnessed by the Company or third party inspection agency:

Piping and pressure tests, including sensitive leak tests.

Final column, vessel, tank and equipment inspections and closures.

Compressor and pump alignment.

Various calibrations.

Control systems loop check.

Piping cleaning, flushing and preservation activities.

Final buildings inspections.

Electrical testing.

Coatings, linings, insulation, cathodic protection and NDE testing.

Additional inspection activities may be witnessed on a random basis. Contractor should anticipate that there may be hold and witness points identified for each major element of construction.

Contractor shall obtain all local and governmental inspection documentation necessary for final approval.

Contractor’s inspection personnel shall be properly certified to perform the required inspections of the work.

NOTE: Contractors are expected to use their standard forms if these forms meet the required detail level. These forms will be included in the Contractor’s Quality Plan and/or Inspection and Test Plans.

Inspection, Measuring and Test Equipment:

The Contractor shall provide and maintain all inspection, measuring and test equipment used to verify compliance to the specifications. The Contractor shall provide a procedure for controlling use and calibration of this equipment. The procedure will:

  • identify all inspection, measuring and test equipment with a unique identification number
  • specify the intervals that the inspection, measuring and test equipment are calibrated
  • state the tolerances required
  • provide calibration traceable to national or international standards
  • maintain a record of the calibration
  • require “record of use” logs to be maintained.

Contractor’s measuring and test equipment will be made available to Company for their use and for verification of accuracy and condition. Company shall be free to verify the correctness of the calibration accuracy of the inspection, measuring and testing equipment through independent sources.

Process Control:

Contractor shall provide procedures to control critical work processes. These will, as a minimum, include the following:

  1. Civil testing (soil compaction, concrete, asphalt, paint).
  2. Welding Procedure Specifications, Procedure Qualification Records and Welder Qualification Records.
  3. Chemical cleaning, flushing and pressure testing (both hydrotesting and pneumatic) procedures.
  4. NDE (Nondestructive Examination) procedures.
  5. Welder production and weld mapping procedure.
  6. PWHT (Post Weld Heat Treatment) procedure.
  7. Loop checking procedure.

NOTE: Personnel certification shall be made available upon the request of Company.

Inspection and Test Status:

  1. Contractor shall provide procedures to identify the inspection and test status for construction activities.
  2. Contractor shall provide an updated testing/inspection schedule to Company on a daily basis or as required by the Company during front end Civil construction.

Control of Non-Conformance:

  1. Contractor is responsible for and shall develop procedures for control and disposition of nonconforming conditions. Measures will be taken to preclude work containing uncorrected deficiencies being built upon or concealed until satisfactorily dispositioned. Contractor shall prepare procedures for documenting and controlling nonconforming items or activities. If corrective action of Contractor does not result in full conformance with Contract requirements, the proposed final disposition will be submitted and approved by the Company.
  1. Company reserves the right to correct nonconformance items that are not in full compliance with the contract requirements and back charge Contractors for such corrections.
  1. Contractor will take measures to perform the following:
  1. provide holding areas or methods for segregating nonconforming items to prevent unauthorized use.
  2. Maintain records identifying nonconforming items, the nature of nonconformance, their dispositions, and evidence that the disposition has been satisfactorily completed.
  1. Company also may identify and report nonconformances. In these cases, the Company will deliver a nonconformance report to the Contractor who will provide for appropriate closure action.

All nonconformances must be closed prior to final payment.

Material and Equipment Receiving, Handling, Storage, and Maintenance:

  1. Contractor is responsible for the receipt and control of their purchased material and equipment, and the material and equipment furnished by the Company. Contractor shall prepare procedures for material and equipment receiving, handling, storage, and maintenance.
  1. Contractor shall conduct a program for preventive maintenance of equipment. The program shall be in accordance with the manufacturer’s recommendations and shall provide a sufficient level of maintenance acceptable for warranty purposes.
  1. Contractor shall keep records verifying the maintenance performed.

Quality Records:

Contractor shall prepare procedures to collect, index, file, store, maintain and turnover to Company, the quality records including but not necessarily limited to those listed below:

  1. All records required by specifications and Contractor’s Quality Plan
  2. Test and inspection reports/forms for documenting specific tests and inspections
  3. Radiographs
  4. Material and equipment certificates required by specification
  5. Equipment maintenance/preservation records
  6. Drawings, as-built drawings, and other design documents and data
  7. Vendor manuals and drawings, including all sub-tier vendors’ source inspection reports.

Contractor shall package and prepare all quality records for turnover. Packages are to be developed by system as determined by Company. Format of these packages will be developed in conjunction with Company. Each system file will contain field inspection and testing records for all components of the system. Unless otherwise specified, Contractor will submit the original and one clean, legible copy of all turnover packages to the Company at the completion of construction for each system.

Exception may be taken by Contractor to qualify requirements imposed herein by submitting a brief statement of justification for each requirement considered not applicable, Company has the sole right to accept or reject any exception requested by Contractor.

Acceptance of Contractor’s Quality Program does not relieve Contractor of the obligation to comply with requirements of the contract documents. If the Quality Program is subsequently found to be ineffective or inadequate in providing acceptable control, Company will require revisions to be made by Contractor.

Company reserves the right to inspect, monitor and review any and all activities throughout the conduct of the Work, which at its sole judgement, is deemed to be necessary.