SCHEDULE Q JER IK LSTK (PACKAGE 6) REQUISITION NO.

3000235438
Q - 1
SCHEDULE Q
QUALITY REQUIREMENTS
TABLE OF CONTENTS
1. GENERAL 2
2. QUALITY MANAGEMENT SYSTEM REQUIREMENTS 3
3. DOCUMENTATION REQUIREMENTS 3
4. MANAGEMENT RESPONSIBILITY 4
5. RESOURCE MANAGEMENT 4
6. PROJECT REALISATION/EXECUTION 6
7. MEASUREMENT, ANALYSIS AND IMPROVEMENT 7
SCHEDULE Q JER IK LSTK (PACKAGE 6) REQUISITION NO. 3000235438
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1. GENERAL
1.1. This Schedule Q describes COMPANYs minimum requirements for
CONTRACTORs quality system (Quality System).
1.2. CONTRACTOR shall be totally responsible for the quality of WORK required
by this Contract. Except as provided in Paragraph 5.4 of this Schedule Q,
CONTRACTORs responsibilities as described herein may not be delegated
without the express written consent of the Company Representative.
1.3. CONTRACTOR shall inspect, test and accept all parts of the WORK as
defined in Schedule B, including its Subcontractors' work, in conformance
with all drawings, specifications and standards applicable to the WORK.
1.4. CONTRACTOR shall perform quality management functions for all parts of
the WORK, including its Subcontractors, Vendors, and manufacturers work
as specified in the CONTRACTOR's Quality Manual and approved Quality
Plan(s).
1.5. COMPANY shall be entitled to have the Company Representative or their
nominee present at all locations where CONTRACTOR or its Subcontractors
and Vendors are engaged in the performance of the WORK, at any and all
times, to review all aspects of CONTRACTOR's quality activities and to
witness whatever inspection and testing is required under this Contract.
COMPANY retains the right to conduct whatever additional tests or
inspections at CONTRACTOR'S cost it deems necessary to assure itself that
the materials meet the requirements of the Contract. Should such additional
tests confirm that there are any non-conformances or sub-standard WORK,
CONTRACTOR shall, at its sole expense and risk, rectify the WORK in order
to meet the requirements of this Contract. CONTRACTOR shall not refuse
access to technical or other data including software data which
CONTRACTOR considers proprietary or confidential, and which is
reasonably required to inspect CONTRACTOR's performance of the WORK,
except where the nominee of Company Representative is a competitor of
CONTRACTOR in the sale, engineering, or installation of systems similar to
the FACILITIES or is related to or affiliated with such a firm, in which event
the Company Representative may nominate an alternative nominee.
1.6. COMPANY will complete its review of CONTRACTORs quality documents
and personnel qualifications no more than ten (10) days after receipt of a
document or its subsequent modifications. Following its initial review,
COMPANY will approve or provisionally approve under conditions to be
approved by CONTRACTOR the submitted document or personnel
qualification, or it will reject the document with comments. Where there is no
response from COMPANY after ten (10) days, CONTRACTOR shall
proceed. Paragraph 31.11 of Schedule A shall apply to any review,
response, approval or provisional approval under this paragraph 1.6 or any
failure to review, respond, approve or provisionally approve.
1.7. For any inspection or any test required to be witnessed by COMPANY,
including any required by applicable laws, rules and regulations of Saudi
Arabia, CONTRACTOR shall provide notice of said inspection or test as
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specified in the approved Inspection and Test Plans (ITPs) to enable the
Company Representative to attend. If any part of the WORK or the
FACILITIES is closed or covered before the required inspection or
witnessing has been performed or without agreement by COMPANY, it must,
if required by COMPANY, be opened or uncovered for inspection or
witnessing and reclosed or recovered at CONTRACTOR's expense.
1.8. If any inspection or test directed or performed by COMPANY, or by another
party at the direction of COMPANY, reveals any defect in CONTRACTOR-
supplied materials, or if COMPANY deems CONTRACTOR-supplied
materials or any part of the WORK to be sub-standard, CONTRACTOR shall
bear the cost of such inspection and testing and shall promptly correct such
defect at CONTRACTOR's sole expense and risk.
1.9. If CONTRACTOR does not adhere to the quality requirements of this
schedule, COMPANY may, at its sole discretion, after ten (10) days
notification to CONTRACTOR, supply sufficient inspection and testing
services to assure that the WORK is being performed as required by this
Contract. CONTRACTOR shall bear the cost of such inspection and testing.
For the avoidance of doubt, CONTRACTOR shall ensure that, in this event,
the WORK Schedule is adhered to.
2. QUALITY MANAGEMENT SYSTEM REQUIREMENTS
CONTRACTOR shall implement for this Contract a Quality Management System
according to the latest version of ISO 9001 (Quality Management Systems
Requirements) or equivalent, which is incorporated herein by reference and this
Schedule Q. Definitions contained in ISO 9000, (Quality Management Systems
Fundamentals and Vocabulary) latest version shall apply. In case of conflict
between ISO 9001 and this Schedule Q, the requirements of this Schedule Q
shall take precedence.
3. DOCUMENTATION REQUIREMENTS
3.1 CONTRACTOR shall plan, organize, control and execute all WORK in strict
accordance with CONTRACTORs Quality Plans, ITPs and documented
procedures. The Quality Plans must ensure that quality personnel and
processes, including those of Subcontractors, are effective and that the
WORK is completed in strict compliance with all provisions of Schedule B
of this Contract.
3.2 CONTRACTOR shall prepare the Project-specific Quality Plan covering as
applicable, design, procurement, construction, pre-commissioning
commissioning and start up assistance and performance test assistance
activities as detailed in this Schedule Q and submit it to the Company
Representative for review and approval no later than sixty (60) days after the
date of this Contract.
3.3 CONTRACTOR shall not release requisitions for equipment quotations or
start any WORK prior to COMPANYs approval of the Quality Plan unless
specifically approved in writing by the Company Representative.
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3.4 CONTRACTOR shall submit Procurement Inspection and Test Plans in
accordance with Paragraph 3.2 of Attachment III to this Schedule Q.
CONTRACTOR shall not permit fabrication to begin on any item required to
have an ITP without issuing the ITP to COMPANY for approval. Where
there is no response from COMPANY after ten (10) days, CONTRACTOR
shall proceed.
3.5 CONTRACTOR shall prepare and submit Construction ITP(s) in accordance
with Paragraph 1 of Attachment IV to this Schedule Q. CONTRACTOR
shall not start specific construction or precommissioning, commissioning and
all other related activities prior to COMPANYs approval of the applicable
ITP.
3.6 CONTRACTOR shall modify its Quality Plans to reflect any significant
changes identified by CONTRACTOR or COMPANY. CONTRACTORs
revised Quality Plans shall then be resubmitted for COMPANYs approval.
3.7 The latest revision of CONTRACTORs Quality Manual and applicable
Quality Plans and all referenced documentation shall be available for
COMPANYs use at CONTRACTOR's design, procurement, fabrication,
installation and 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 WORK Site.
4. MANAGEMENT RESPONSIBILITY
4.1 In accordance with ISO 9001, CONTRACTOR's senior management shall
review the project-specific Quality System every six months to ensure that
the system is suitable, adequate and effective. Senior management reviews
shall be scheduled events included in the quality audit schedule approved by
the Company Representative as provided in Paragraph 7.2.2 of this
Schedule Q.
4.2 Within ten (10) days after the scheduled review date, CONTRACTOR shall
advise the Company Representative in writing of the results and
recommended actions of such reviews. Changes to the Quality System that
result from CONTRACTORs senior management reviews shall be
incorporated in the Project Quality Plans, with the prior approval of the
Company Representative.
5. RESOURCE MANAGEMENT
5.1 CONTRACTOR shall provide resources to implement the Quality System as
set forth in this Contract. CONTRACTOR shall supply Competency Profiles
for all Quality personnel involved in procurement, engineering, design,
construction, pre-commissioning, commissioning, startup assistance and
performance tests assistance activities for COMPANY approval. Quality
personnel identified pursuant to Attachments I and VI of this Schedule Q
shall be on-site prior to the start of the applicable WORK commensurate with
the magnitude of the imminent work.
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5.2 CONTRACTOR shall provide resumes of all key CONTRACTOR and
Subcontractor Quality personnel to COMPANY for review and approval prior
to the start of WORK by each individual. COMPANY shall have the right to
interview and/or test assigned inspectors. COMPANY has the right to reject
proposed candidates if they do not comply with the requirements in
Attachment I or if COMPANY has had prior poor experience with such
candidates.
5.3 CONTRACTOR shall designate the Quality Assurance Manager for this
Contract within seven (7) days of the date of this Contract. The Quality
Assurance Manager shall be assigned to the WORK through to Ready for
Initial Start-Up.
5.4 CONTRACTOR may subcontract inspection services, subject to
COMPANYs review and approval. However this does not relieve
CONTRACTOR of its contractual quality responsibilities.
5.5 CONTRACTORs, Subcontractors and third party agencys quality personnel
assigned to the WORK shall meet the minimum qualification requirements of
Attachment I of this Schedule Q, and must be technically competent to
perform and to successfully complete their duties. Records must be
maintained for COMPANYs review that document the qualifications of
CONTRACTORs Quality Personnel.
5.6 CONTRACTORs uality personnel shall be dedicated to the WORK
described in this Schedule Q and shall perform no other function on this
Contract. CONTRACTORs Quality personnel shall have sufficient and well-
defined responsibility, qualifications, authority, and organisational freedom to
identify quality problems and areas of non-conformance and to initiate,
recommend and substantiate corrective actions.
5.7 CONTRACTORs quality managers shall have organizational authority at
least equal to that of the line manager directly responsible for execution of
the WORK. During all phases of the WORK, CONTRACTORs Quality
Control (QC) supervisor(s) shall functionally report to the CONTRACTOR
quality assurance manager or Quality Control manager.
5.8 CONTRACTOR shall submit to the Company Representative within thirty
(30) days from the date of this Contract and update with changes shown as
part of the monthly quality management report, (See Para. 7.5.1), a listing,
sorted by discipline for each WORK phase, of:
1) approved personnel forecast to be mobilized in the next sixty (60)
days.
2) personnel forecast to be demobilized in the next sixty (60) days.
5.9 CONTRACTOR shall provide organization chart(s) clearly showing
assignments of personnel including:
5.9.1 all planned quality personnel for the Project in accordance with this
Schedule Q;
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5.9.2 reporting relationships from the inspector through to level above the
CONTRACTORs Project Manager for this Contract;
5.9.3 internal and external lines of communication;
5.9.4 interfaces between the CONTRACTOR and its Subcontractors and
Vendors and between CONTRACTOR and COMPANY; and
5.9.5 mobilization and de-mobilization dates for all planned quality
personnel.
5.10 Planned staffing levels shall comply with the COMPANY-approved Quality
Plans and Attachment VI of this Schedule Q; any reduction from the
required levels must be approved in advance in writing by the Company
Representative.
5.11 CONTRACTOR shall make quality personnel changes required due to long
term vacations, illness, temporary assignments, emergency leave,
resignations or other reasons as necessary to maintain required quality
coverage. CONTRACTOR shall advise the Company Representative of
such personnel and quality coverage at least thirty (30) days in advance of
scheduled absences or changes and as soon as possible for other changes.
5.12 CONTRACTOR shall implement an ongoing training program to introduce
and familiarise all CONTRACTOR and Subcontractor personnel with the
Project quality requirements for their area of responsibility.
6. PROJECT REALISATION/EXECUTION
6.1 Design Phase Quality Activities
6.1.1 CONTRACTOR shall comply with the design phase requirements of
CONTRACTORs approved Quality Plan and this Schedule Q.
6.1.2 CONTRACTOR shall perform design review at an appropriate stage
during the design phase. CONTRACTOR shall notify the Company
Representative ten (10) days prior to the start of any design review.
As a minimum, the review shall be completed prior to the COMPANY
scheduled design review stated in Schedule B. CONTRACTOR shall
maintain records of such CONTRACTOR design review in
accordance with the Quality Plan including solicitation, recording and
resolution of all comments.
6.1.3 CONTRACTOR shall define the design phase quality activities in its
Quality Plan to assure that qualified personnel properly monitor
design activities and ensure conformance to Contract requirements.
CONTRACTOR shall conform to the design Quality Control
requirements of ISO 9001:2000.
6.2 Procurement Phase Quality Control Activities
CONTRACTOR shall comply with the procurement quality requirements of
CONTRACTORs approved Quality Plan and Attachment III of this Schedule
Q.
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6.3 Construction Phase Quality Control Activities
CONTRACTOR shall comply with the construction quality requirements of
CONTRACTORs approved Quality Plan and Attachment IV of this Schedule
Q.
6.4 Precommissioning/Commissioning Phase Quality Control Activities
6.4.1 CONTRACTOR shall comply with the
precommissioning/commissioning quality requirements of
CONTRACTORs approved Quality Plan and Schedule B.
6.4.2 Prior to completion of the WORK, CONTRACTOR shall perform the
inspections required by Schedule B to complete pre-
commissioning/commissioning activities and document and correct
any non-conformances. A copy of the inspection results and status of
the correction of non-conformances shall be submitted to the
Company Representative each week until the acceptance of the
applicable system.
7. MEASUREMENT, ANALYSIS AND IMPROVEMENT
7.1 Inspection Schedules
CONTRACTOR shall submit each week a two-week look ahead schedule of
all planned CONTRACTORs Vendor inspections to the Company
Representative during the procurement, design and engineering work and
within 24 hours (48 hours for a weekend) for construction and
precommissioning WORK Phases as specified in Schedule A. The
schedule shall be sent electronically in a format acceptable to COMPANY.
7.2 Internal Audits
7.2.1 CONTRACTOR shall conduct internal audits covering WORK
activities with duration of six months or longer. This shall include
audits of the CONTRACTOR's quality function and obligations as
described in the COMPANY-approved quality plans, this Contract and
ISO 9001:2000. This program shall also include scheduled Quality
System audits for subcontracts with work scheduled to exceed six
months in duration.
7.2.2 CONTRACTOR shall submit a quality audit schedule to the Company
Representative for review and approval within sixty (60) days from the
date of this Contract. As a minimum, full quality system audits shall be
carried out before twenty-five percent (25%) and seventy-five percent
(75%) of completion stage for the design, procurement, and
construction WORK activities. CONTRACTORs audits may be
rescheduled only with the approval of the Company Representative.
7.2.3 All audits shall be executed by quality audit personnel (qualified in
accordance with Attachment I of this Schedule Q) not directly
responsible for the area being audited or by an approved third party
agency.
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7.2.4 CONTRACTOR shall investigate root causes and initiate corrective
actions for nonconformities identified in each audit. CONTRACTOR
shall verify implementation and closeout of corrective actions prior to
the next associated scheduled audit.
7.2.5 CONTRACTOR shall submit to the Company Representative a copy
of each audit report within ten (10) days of its completion.
7.2.6 The Company Representative or their nominee shall be invited to
participate in all audits. Audit notifications and agenda shall be
submitted to the Company Representative ten (10) days in advance.
7.3 Control of Non-Conformance
7.3.1 CONTRACTOR shall control CONTRACTOR and Subcontractor
supplied materials and fabricated assemblies that do not conform to
requirements as indicated in paragraphs 7.3.2, 7.3.5, and 7.3.6 below.
Controls to restrict further processing or installation of non-conforming
or defective items, pending decisions on disposition shall be
established and maintained.
7.3.2 CONTRACTOR shall issue Non-Conformance Reports (NCRs) for all
violations by CONTRACTOR, Subcontractors, manufacturers and
Vendors to Contract requirements and COMPANY approved
CONTRACTOR Quality Plan(s), ITPs and procedures.
CONTRACTOR shall submit a copy of each NCR to the Company
Representative within 48 hours of issue. CONTRACTOR shall
maintain a summary of the open NCRs, and submit it at the regular
project progress meetings. CONTRACTOR shall notify the Company
Representative prior to final closure of each NCR for
inspection/verification by COMPANY.
7.3.3 CONTRACTOR shall respond to all NCRs issued by COMPANY in
writing within 48 hours of receiving notification of non-conformance
including CONTRACTORs proposed corrective action.
7.3.4 CONTRACTOR shall fully investigate the root causes of non-
conforming items, and initiate corrective actions to prevent recurrence
of nonconformities, at CONTRACTORs sole expense.
7.3.5 CONTRACTOR shall rework or repair and re-inspect items in
accordance with COMPANY approved procedures. Those items
rejected will be managed as stated in paragraphs 7.3.6 and 7.3.7.
7.3.6 CONTRACTOR shall submit an application for a waiver to COMPANY
standards to the Company Representative for items that do not
comply with COMPANY standards but are still considered usable by
COMPANY. The item may be used in the WORK only if COMPANY
approves the waiver in writing. A separate waiver will be required for
each non conformity identified
7.3.7 CONTRACTOR shall segregate all other non-conforming materials
and assemblies to a clearly designated rejection site. CONTRACTOR
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shall track and control all non-conforming equipment or materials until
it is reused, exported, or otherwise disposed of. All imported rejected
materials shall be disposed of in accordance with paragraph 1.6 of
Schedule G. CONTRACTOR shall notify the Company
Representative of the disposal of all rejected materials on a monthly
basis as part of the Quality Management Report.
7.4 Waivers
7.4.1 CONTRACTOR shall not waive the requirements of any
CONTRACTOR Quality Plan or ITP previously accepted by the
Company Representative without the express written consent of the
Company Representative.
7.4.2 CONTRACTOR shall maintain a log detailing all waivers from
COMPANY or CONTRACTOR Quality and inspection requirements
obtained during all WORK activities. This log shall indicate the status
of the waiver, a brief description and details of the applicable
Purchase Order and equipment, engineering, design or construction
process.
7.4.3 CONTRACTOR shall also maintain a log detailing all waivers to
COMPANY standards obtained during all WORK activities, including
those initiated by COMPANY (during or prior to the start of WORK) or
CONTRACTOR. This log must indicate the status of the waiver, a
brief description and details of the applicable Purchase Order and
equipment or construction process.
7.5 Analysis of Data
CONTRACTOR shall prepare and submit a monthly quality management
report in a format acceptable to COMPANY to demonstrate effective
implementation of the CONTRACTOR's Quality System. The report shall
include the following items as a minimum:
7.5.1 General Items:
a) Listing of quality audits completed (internal, Vendor and
Subcontractor), in progress, and planned for the next month;
b) Status of open corrective actions for non-conformance reports,
audits and management reviews;
c) Quality Personnel Listing by discipline as specified in
Paragraph 5.8 and mobilization/demobilization plan for the next
month; and
Listing and status of engineering waivers requested.
7.5.2 p Procurement phase Items:
a) Listing of Vendor surveys performed with a summary of
findings, and planned surveys for the next month;
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b) Listing of pre-inspection meetings conducted and planned for
the next month;
c) Listing of Vendor inspections performed versus scheduled
inspections, and those planned for the next month; and
d) Non-conformance reports issued by COMPANY or
CONTRACTOR during design or procurement: number issued,
closed out, and pending for the month.
7.5.3 Construction phase Items:
a) Non-conformance reports issued by COMPANY or
CONTRACTOR during construction: number issued, closed
out, and pending for the month;
b) Listing and disposition of all defective or rejected material or
equipment received at the WORK Site by CONTRACTOR and
Subcontractor; and
c) Welding rejection rate reported on per joint and/or linear inch
basis for piping and alloy welds. A chart showing the historical
performance during the Project shall be included.
7.5.4 Narrative Section for Process Improvement Activities:
This section shall describe CONTRACTOR and Subcontractor
activities during the month to continually improve its processes,
correct and eliminate non-conformities, prevent potential problems,
improve schedules etc. This section shall include trend analysis for
weld reject rates, CONTRACTOR and COMPANY Non-Conformance
Reports, root cause analyses, and initiatives to improve the weakest
areas.
7.6 Improvement
7.6.1 CONTRACTORs procedure(s) for Continuous Improvement shall
ensure measurement, analysis and improvement throughout the
WORK.
7.6.2 CONTRACTORs procedure(s) for Preventive Actions shall describe
the requirements for evaluating the need for actions to prevent
occurrence of mistakes from previous Lessons Learned by
CONTRACTOR and COMPANY.
END OF SCHEDULE Q