Plant Client Contract Code Document ID Contract No.

1.0 MTPA ALUMINA

NALCO NAL 6695-CMG-G00-CA-0004 66-6695
REFINERY STREAM-5

Construction Management Requirements

Rev 01 Page 2 of 25

Table of Contents

1 Purpose .............................................................................................................................................. 3

2 Scope .................................................................................................................................................. 3

3 Reference Documents: ....................................................................................................................... 3

4 Abbreviations & Definitions:................................................................................................................ 3

5 Requirements: .................................................................................................................................... 4

5.1 General ............................................................................................................................................... 4

5.2 Sub-Contracting Plan ......................................................................................................................... 9

5.3 Construction Management Plan ....................................................................................................... 10

5.4 Construction Execution Plan ............................................................................................................ 10

5.5 Construction Planning, Scheduling, Monitoring & Reporting ........................................................... 12

5.6 Quality Assurance and Quality Control ............................................................................................ 13

5.7 Warehouse Management & Material Control ................................................................................... 15

5.8 Field Engineering .............................................................................................................................. 17

5.9 Field Tendering ................................................................................................................................. 17

5.10 Field Purchase .................................................................................................................................. 17

5.11 Health, Safety and Environment (HSE) Management ...................................................................... 17

5.12 Industrial Labour Relations ............................................................................................................... 18

5.13 Construction Equipment ................................................................................................................... 19

5.14 Construction Manpower .................................................................................................................... 21

5.15 Commissioning ................................................................................................................................. 22

5.16 Closing of Contract ........................................................................................................................... 23

Plant Client Contract Code Document ID Contract No.
1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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Construction Management Requirements

Rev 01 Page 3 of 25

1 Purpose

This document describes the requirements of Construction Management to be adopted at site by LSTK
contractors while executing construction activities, to achieve overall completion of the project as per
contractual schedule complying with construction quality and safety National Aluminium Company for
Alumina Refinery in Damanjodi, Odisha / Visakhapattanam Port.

These requirements shall also provide the basis for PMC/Owner to monitor LSTK contractors control on
construction management.

2 Scope

This document applies to construction work, pre commissioning and commissioning of the plant and
final handover to Owner at Alumina Refinery Project at Damanjodi Odisha / Visakhapatnam Port
undertaken by LSTK contractor.

It applies equally to permanent and temporary works, demolition and site clearance.

3 Reference Documents:

Contract documents, construction QA/QC requirements (6695-CMG-G00-CA-0005), construction HSE

requirements (6695-CMG-G00-CA--0003) and applicable statutory documents.

4 Abbreviations & Definitions:

PMC / EPCM Project management Consultant / Enginearring procurement

construction management (tkis India).
LSTK Lump Sum Turn Key.
Owner National Aluminium Company (NALCO).
LSTK Contractor LSTK Contractor engaged by NALCO for LSTK packages.
Sub- Contractor Contractor engaged by LSTK Contractor
QAP Quality Assurance Plan.
ITP Inspection and Test Plan.
TPI Third Party Inspector.
RFI Request for Inspection. 1
DCC Document Control Center.
RFSU Ready for Startup.
ODC Over Dimensioned Consignment
RCM Resident Construction Manager
ITB Invitation to Bid
Plant Client Contract Code Document ID Contract No.
1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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Construction Management Requirements

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MTO Material take off

5 Requirements:

5.1 General

5.1.1 LSTK Contractor shall construct the plant facilities in accordance with the requirements of the technical
standards, with proven/generally accepted practices and procedures. Such facilities shall be safe,
reliable and suitable for their intended purpose.

5.1.2 LSTK Contractor shall provide all supervision, labour, construction equipment, tools & tackles materials
and consumables, temporary facilities, construction utilities, etc. and render all support services
necessary for the construction, mechanical completion, precommissioning and commissioning activities.

5.1.3 LSTK Contractor shall plan, execute, manage and control all the construction and commissioning
activities for the facilities forming part of this contract. Frontline construction supervision also is to be
provided by LSTK Contractor.

5.1.4 LSTK Contractor to ensure mechanizing the construction activities to a great extent and working during
monsoon.

5.1.5 LSTK Contractor is deemed to be having full knowledge of the applicable laws and regulations,
conditions of labour, local conditions, site conditions, environmental aspects and shall comply with the
requirements there of.

5.1.6 LSTK Contractor's work during construction shall include but not be limited to the following:

i) Prepare and submit all the plans, procedures and documents to Owner/PMC as specified in the
contract.

ii) Establish requisite site organization staffed by competent and experienced specialists,
supervisors and inspectors.

iii) Update overall project schedule on monthly basis.

iv) Supervise co-ordinate and manage the activities performed at site by the LSTK contractor
himself and by his Sub-contractors for execution of work and render all technical/specialist
services.
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1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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v) Plan and schedule the construction work, monitor and take timely corrective action required to
adhere to approved execution schedule.

vi) Plan and allocate required resources, manpower, and construction equipment/materials,
commensurate with construction plan/schedule.

vii) Ensuring quality control and quality assurance as per approved QAP.

viii) Report beforehand and take approval from Owner/PMC regarding use of any equipment and/or
material not conforming to the contract, drawings and specifications.

ix) Execute and supervise all additional works and modification works as required or suggested by
Owner/PMC as a part of approved change orders.

x) Erect and install the equipment and materials according to the approved specifications and
procedures.

xi) Establish required field inspection and testing laboratories at site to carry out tests as specified
in the standards/specifications of the contract.

xii) Organize and obtain all applicable clearances/approvals from statutory bodies/authorities, as
required by the laws of land for the work executed by the LSTK Contractor at site under the
contract.

xiii) Carry out inspection, non-destructive tests and certify acceptability of all welds and materials in
accordance with specified technical standards/international standards. Carry out inspection and
testing of incoming materials as per agreed procedures.

xiv) Engage third party inspection to witness site inspection. Extent of inspection shall for minimum
30% of the work as applicable / as per contractual terms.

xv) Carry out material traceability during all the phases of pre-fabrication and installation as per the
procedure approved by Owner/PMC.

xvi) Organize and conduct positive material identification (PMI) of incoming materials and after
erection of facilities as per procedure approved by Owner/PMC.

xvii) LSTK contractor to provide facilities and cooperation for audits carried out by PMC/Owner.
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xviii) Prepare detailed schemes for ODC/Heavy/Critical Equipment movement/erection/ lifting/rigging

and submit the same for review/approval to Owner/PMC before undertaking such critical/heavy
lifts/movements/erection. Any modifications required including dismantling and re-erection of
structures/piping, etc. for the existing facilities for smooth flow of such heavy equipment shall be
carried out by the LSTK contractor at his own cost. However, prior approval for such
modifications shall be required from the Owner/PMC.

xix) Organize and conduct weekly project review meeting related to site construction activities.

xx) Provide detailed daily, weekly and monthly progress reports. The content of report shall be as
per requirement of Owner / PMC /EPCM.

xxi) Prepare and submit records of all site meetings and any other related documents to all parties
concerned within two (2) days of the meeting.

xxii) Prepare and submit safety and labour relation procedures in line with all applicable codes,
regulations and Owner’s requirements.

xxiii) Supervise and monitor all safety and labour relations functions as per agreed procedures and
applicable laws of the land and report to Owner/PMC immediately for any violations and injuries.

xxiv) Keep all the records generated during project execution up-to-date and in first rate condition to
be made available to Owner/PMC whenever requested. These records shall be handed over to
Owner/PMC on completion of the work.

xxv) Carry out warehouse management and material control in accordance with approved procedure.

xxvi) Ensure that incoming materials are offered to PMC / EPCM for inspection as per approved ITPs
and inspection records are maintained at site.

xxvii) Take all necessary precautions and required actions to protect construction work and materials
from damage by local weather conditions and ongoing construction activities in the vicinity, theft
and pilferage etc.

xxviii) Take insurance policies for materials in transit and storage-cum-erection risk and other
insurance covers required for men and materials at site.

xxix) Undertake housekeeping including sweeping, cleanup to maintain cleanliness, sanitation,

removing excess materials, temporary facilities, scaffolding, etc. on daily basis.
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1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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xxx) Ensure the control of all works with regard to its impact on the surrounding environment.

xxxi) Inspect & certify the short bolting prior to commissioning. Records of bolt tightening for high
pressure lines shall be maintained and obtain certification fron PMC / EPCM.

xxxii) Load data of spring supports shall be recorded and certification of the same will be obtained
from PMC / EPCM.

xxxiii) Ensure all hot works are performed outside hazardous areas and in compliance with Owner’s
safety permit system requirements wherever applicable.

xxxiv) Arrange and co-ordinate the visits of vendor(s) representative/specialists at site.

xxxv) All material handling equipment, tools, tackles, hoisting and lifting equipment/machineries
should be subjected to required load test initially and then periodically, to ensure safe/stable
operation. Competent TPI certification shall be ensured.

xxxvi) Execute all the tie-ins for the project as per the terms of contract and schedule fixed by
Owner/PMC.

xxxvii) Organize field engineering work, wherever required and provide assistance to Owner/PMC in
timely resolving interface problems/site constraints.

xxxviii) Prepare and certify material reconciliation statement on completion of work to enable Owner to
take over the balance store materials, if applicable as per the contract.

xxxix) Organize the handing over of balance surplus materials (as applicable) and spares/tools and
tackles to the Owner on completion of the work.

xl) Develop a phased mechanical completion program to facilitate sequential pre

commissioning/commissioning activities in a logical manner to meet the overall project
schedule.

xli) Remove/demolish all temporary structures/establishments/facilities created by the LSTK

Contractor/Sub- Contractors during the execution of the work and restore the site to its original
condition.
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1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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5.1.7 LSTK Contractor is required to organize and mobilize “construction management services” in a
systematic and sequential manner to ensure that the plant installation is carried out in accordance with
the approved engineering drawings, specifications, standards, QA/QC procedures etc. and its
mechanical completion is achieved within targeted time schedule. Construction management and
supervision is to be carried out by the LSTK contractor himself by deploying persons on his rolls.

A construction management team headed by a RCM shall be deployed at site by LSTK Contractor for
construction supervision and management of their contractual scope of work. CV of key personnel shall
be submitted to Owner/PMC/EPCM for approval before deploying at site. Key personnel may be
1
interviewed face to face or telephonic by NALCO / tkIS before approving the CV. The LSTK contractor
shall arrange such interviews at his own cost. Key personnel including RCM should have sufficient
experience to meet the requirement as stated in SCC and should not be changed during course of
execution without concurrence from Owner/PMC/EPCM.

5.1.8 The construction supervision, co-ordination and management activities shall be carried out by the LSTK
Contractor in accordance with the construction procedures developed and submitted by the LSTK
Contractor and approved by Owner/PMC.

5.1.9 LSTK Contractor shall extend all necessary assistance and provide all necessary data/documents as
required by Owner/PMC/EPCM for review and monitoring of the jobs performed by the LSTK Contractor

5.1.10 LSTK Contractor shall ensure delegation of adequate and sufficient powers (including financial) to his
RCM for effective and smooth functioning of the construction management. LSTK Contractor to inform
officially PMC/EPCM about authorising their RCM for all Techno commercial authorities related to the
project execution. HO support shall be provided to the RCM at site during construction on all matters of
project execution including the following:

• Field engineering.

• Vendor specialists required during construction.

• Rectification/replacement of defective supplies, if any, noticed during construction.

• Inspection/expediting of replacement orders/field purchase orders for items ordered

by site.

• Expediting replacement of imported items found short/damaged.

• Material receiving inspection at site and the required documentation

• Statutory requirements and the required documentation

5.1.11 LSTK Contractor shall depute a project team at site during construction phase under a project co-
coordinator for providing above-mentioned support to RCM.
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1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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5.1.12 LSTK Contractor shall establish and maintain a material testing laboratory for all disciplines for carrying
on field tests during execution of contracts at no extra cost to Owner All the test equipment deployed
shall have valid test/calibration certificates.

5.1.13 Construction supervision and management functions to be performed by the LSTK Contractor, shall
include the following as key functions for effective execution, monitoring and control:

• Planning, scheduling, monitoring & reporting.

• Construction supervision, discipline wise.

• Quality assurance and quality control, discipline wise.

• Shipping, custom clearances, inland transportation

• Warehouse management and material control.

• Field engineering & Site procurement.

• Health, safety and environment (HSE) management

• Statutory clearances and enforcement of statutory rules/regulations and Labour Laws

• Personnel/administration/industrial relations

• Billing and invoicing

• Finance and accounts

• Security

5.2 Sub-Contracting Plan

If LSTK Contractor proposes to engage sub-contractors for the execution of various activities at site, a
preliminary sub-contracting philosophy and plan along with the identified scope of work for each sub-
contract shall be furnished by LSTK Contractor at the time of bid submission. However, the credentials
of proposed sub-contractors shall be submitted by the LSTK Contractor on award of this work, which
shall be evaluated by Owner/PMC/EPCM for acceptance. Sub contractors can be engaged only after
receipt of approval from Owner/PMC/EPCM. LSTK Contractor shall not be permitted to change the sub-
contractors under any circumstances without prior approval of Owner/PMC/EPCM. Non-compliance of
the above shall be strictly dealt within relevant provision(s) of the contract.
Plant Client Contract Code Document ID Contract No.
1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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5.3 Construction Management Plan

LSTK Contractor shall submit Construction Management Plan to Owner/PMC/EPCM for approval
during kick-off meeting. The plan shall detail the management methodology to be applied during the
construction phase of the project, along with a list of procedures to be utilized in undertaking the work.

All reference procedures and detail work plans referred to in this document must be submitted for review
and approval by Owner/PMC/EPCM at least (4) four weeks in advance of actual commencement of the
activity concerned.

5.4 Construction Execution Plan

LSTK Contractor shall submit construction execution plan to Owner/PMC/EPCM for review/approval
during kick-off meeting. The plan shall detail the execution methodology of the LSTK Contractor during
construction phase of the project. LSTK Contractor construction execution plan shall include:

a. LSTK Contractor ‘s manpower and man-hour histogram by major section and discipline and his
manpower deployment schedule on monthly basis with distribution of foreign/indian/local
personnel.

b. Major equipment mobilization plan on monthly basis with short description. LSTK Contractor to
develop this plan with due consideration to maximize the mechanization of construction activities.

c. LSTK Contractor’s plan to construct proper approach roads, drains, underground systems, cable
trenches and complete major civil works well in advance before start of mechanical job.

d. Other plans of LSTK Contractor and procedures to be submitted at least four (4) weeks prior to
start of respective activity at site, with the following as a minimum:

• Temporary facilities, etc.

• Piling plan (if applicable)

• Scaffolding plan

• Working during monsoon and de watering.

• Working in shifts including holidays. Separate manpower shall be considered for each shift
of work.

• Excavation and underground work plan including

• Heavy transport and heavy lifting plan (Rigging Plan)

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1.0 MTPA ALUMINA
NALCO NAL 6695-CMG-G00-CA-0004 66-6695
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• Pre-fabrication plan

• Hydro-test plan

• Other activity plans e.g. piping, equipment and steel structure erection plan etc.

• Instrument loop check plan

• Monsoon counter measures and preparation

• Emergency evacuation procedure

• Storm water management plan

• Sub-Contracting Plan

e. Temporary Facilities

LSTK Contractor’s construction execution plan shall include:

• Exact location of temporary work area, access and general layout inside the area.

• Plan and description of the temporary facilities for LSTK Contractor / sub- contractor.

• Identification of borrow earth area (if required)/excess earth dumping yards.

• LSTK Contractor / sub- contractor site office and fabrication yards, open storage area and
warehouse.

• Miscellaneous workshops.

• Temporary roads including access road to plant, fencing and gates.

• Security, watch & ward, security gates, watch towers.

• Utility supply systems viz. construction power, construction water, drinking water etc.

• Area lighting.

• Firefighting equipment.

• Drainage and sanitation.

• Labour camp accommodation.

• Field testing laboratory.

• Communication facilities viz. telephone, fax, e-mail, etc.

• Canteen for staff and workers.

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• Vehicle parking area.

• First aid arrangement/medical and health care facilities.

LSTK Contractor shall develop the temporary facilities layout for approval of Owner/PMC.

f. Monthly Estimation of all utility consumption including drinking / construction water & power
(electricity)

5.5 Construction Planning, Scheduling, Monitoring & Reporting

LSTK Contractor shall be responsible for construction planning, scheduling, monitoring and reporting
activities at site in line with the overall master schedule and details stipulated elsewhere in this
document.

To ensure timely completion of the project, LSTK Contractor shall establish and maintain an effective
planning, scheduling, monitoring and control system, including mobilization of required number of
professionally qualified and experienced planning engineers for design office and construction site.
The system shall be capable of accurate and timely prediction of trend, evolution of adequate preventive
actions for likely slippages, and formulation of suitable catch-up schedule for delays, if any, that have
occurred.

Schedules, reports and documents to be prepared and submitted by the LSTK Contractor for
review of OWNER/PMC at various stages and details of meetings to be held are described here.

Following activities are also to be performed by the LSTK Contractor at site:

Construction Master Schedule

Construction master schedule shall be prepared and submitted by the LSTK Contractor for Owner/PMC
review/approval covering following aspects:

• Clearly identified activities in the master project schedule

• Major milestones

• Critical path and activity float time

• Activities conforming to the LSTK Contractor’s work breakdown structure

• Monsoon and holiday seasons into consideration

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• Detailed activity schedule (L3, L4)shall be required for each activity identified in Master Project
Schedule two months after award.

Schedule Control

LSTK Contractor shall prepare:

• Three months “Look Ahead”, monthly and weekly construction schedule

• Construction progress measurement method, which is to be based on physical progress

measurement at site as approved by Owner/PMC.

• Reference to schedule change procedures.

• Catch up plans

• Hold up reports in respect of drawings, materials and front, etc.

• Daily, weekly and monthly progress reporting format to Owner/PMC.

Detailed requirements for Construction Planning activities are given in Document No. 6695-PSC-G00-
BE-0005 attached with ITB.

5.6 Quality Assurance and Quality Control

LSTK Contractor shall submit “Site Quality Assurance Plan” to Owner/PMC for approval. LSTK
Contractor shall be responsible for ensuring quality of construction carried out by them/their approved
sub- contractors in accordance with the approved quality plan.

Detailed requirements for construction quality management / quality control are given in Document No.
6695-CMG-G00-CA-0005 attached with ITB.

The role of Owner/PMC is broadly envisaged as surveillance, auditing and participation in inspection of
critical activities as identified. LSTK Contractor shall develop a detailed procedure for field inspection
notice and obtain the approval of the same from Owner/PMC for implementation.

Methodology for Construction Quality

The management of construction quality control is divided into the following categories:-

(a) Procurement of materials required for the construction works.

(b) Execution of works
(c) Documentation
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(d) QA/QC Audits

a) Procurement of Materials Required for the Construction Works :

LSTK Contractor shall develop list defining the items to be procured by the LSTK Contractor along with
likely vendors for approval of Owner/PMC. The vendor list shall be from approved vendor list
attached with the contract document. In case, no vendor list exists in the contract for a particular item,
the LSTK Contractor will propose a list of vendors to Owner/PMC for approval. LSTK Contractor has to
satisfy himself with the capability of the vendor to deliver the product in time with quality before
proposing him as a prospective vendor. LSTK Contractor shall submit the QA/QC plans for all major
items and carry out their procurement in line with approved plans. The LSTK Contractor can either
provide his own adequate qualified staff for inspection or employ a separate third-party inspection
agency to carry out these functions. Involvement of Owner/PMC in the quality control plan, if required,
shall be defined during approval of the same.

b) Execution of works

The QA plans for execution shall be developed by the LSTK Contractor. Owner/PMC approval will be
taken well before start of the work for the same. The ITPS, shall be developed by LSTK Contractor as
per contract specifications for approval by Owner/PMC.

It is likely that the LSTK Contractor may engage sub- contractor s/vendors for performance of the
work. LSTK Contractor shall be responsible for ensuring the implementation of approved QA plan,
contract specifications and contract conditions through his sub- contractors to achieve the quality
during all stages of construction. It shall be the responsibility of the LSTK Contractor to ensure proper
co- ordination between his sub- contractors and other agencies working at site.

The sub- contractors/vendors selection shall be done after evaluation by the LSTK Contractor in line
with contract requirements and willl be approved by Owner/PMC before engaging them for the
works.

LSTK Contractor shall be responsible to arrange verification of products during in process and
final inspection. Relevant checks and tests shall be arranged for the works performed and records
maintained. Tolerances achieved with respect to contract specification and execution drawings for
various activities/processes shall be ascertained and submitted to Owner/PMC for approval. Efforts
shall be made to keep checks and controls in such a way that getting a non- conformed
product is avoided. However, if in an isolated case, the tolerances are variant beyond the
acceptable values given in the contract/execution drawings, non-conformance resolution/waiver
need to be raised by the LSTK Contractor and got approved/resolved from Owner/PMC. For
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alloy and special piping materials and welds, PMI shall be arranged by LSTK Contractor after
installation but before final acceptance.

c) Documentation

All the necessary documentation shall be maintained by LSTK Contractor till completion of project and
handed over to Owner/PMC in requisite copies as a part of completion documents.
d) QA/QC Audits

During the execution of the works, LSTK Contractor shall carry out periodical internal quality audits in all
areas of work. These audits shall be conducted by a team of specialists in respective areas.

A copy of the audit report containing the findings of the audit team shall be submitted to Owner/PMC
within 3 days of completion of an audit. LSTK Contractor to make action plan for compliance of the
audit findings and submit to Owner/PMC for concurrence before initiating compliance action on the
same. A compliance report must also be generated by the LSTK Contractor after completion of
rectification/modifications/corrective actions taken by the LSTK Contractor on issues indicated in the
audit report. A copy of this action plan and the compliance report shall be submitted to Owner/PMC for
review.

Over and above the LSTK Contractor’s internal QA/QC audits outlined above, Owner/PMC will also
conduct periodical QA/QC audits. The programme along with the scope of such audits, will be
informed to the LSTK Contractor well in advance. LSTK Contractor shall participate and provide full
support to the audit team and furnish all documents/reports/records as desired by the audit team. A
copy of such audit report will be furnished to the LSTK Contractor. The LSTK Contractor shall take all
actions required to comply with the findings of the audit report and issue regular compliance reports for
the same to Owner/PMC till all the findings of the audit report are fully complied.

Owner/PMC reserve the right to appoint an independent person/third party agency to conduct QA/QC
systems audit for full/part of the facilities being executed by the LSTK Contractor. This audit shall
be in addition to the audits described above and may be carried out intermittently/continuously for all or
part of the facilities being executed by the LSTK Contractor.

5.7 Warehouse Management & Material Control

LSTK Contractor shall be responsible for carrying out the warehouse management and material control
in accordance with the approved warehousing procedure and material control procedure, which is to be
submitted by the LSTK Contractor during kickoff meeting. The activities shall include but not limited to:
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• Transport liaison, both for imported materials as well as materials procured in India, from the time
of dispatch up to receipt at site.

• Transportation plan (i) from source to site (ii) site to erection location.

• Receipt, handling, identification, inspection (including confirmation by an alloy analyzer for alloy
steel, stainless steel and other exotic materials) and acceptance, storage and preservation of
materials, codification of all materials including free issue materials to be supplied by Owner.

• Filing of insurance claims and follows up.

• Documentation for control and accounting of materials.

• Generation and upkeep of traceability records for materials.

• Materials control & issue.

• Inventory checks.

• Field requisition and purchase.

• Spares & tools including handing over of mandatory spares/tools to the Owner as per the terms of
the contract.

• Material appropriation and handing over of all items to Owner as per the terms of contract.

• Security.

• Taking up with suppliers on short supplied items and placing replacement orders for
lost/damaged items.

• Intimating to their HO regarding short/lost/damaged items received at site and further

replacement action, as applicable.

LSTK Contractor shall generate and issue following reports:

• Vendor expediting report fortnightly

• Fortnightly statement of consignments in transit.

• Daily report of material received.

• Material receipt status and inventory status with respect.to material delivery schedule

• Material inspection report with respect to materials received at site

• Report on excess, short, damage & reject (ESDR ) against each consignment on receipt at
warehouse.

• Weekly status of consignments, material receipt report (MRRs)

• Monthly status of field purchase.

• Monthly statuses of excess, short , damage & reject(ESDR) settlement.

• Monthly status of piping material MTO v/s. actual receipt.

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• Log Register of rotating equipment’s maintenance

• Daily stock position of cement

• Any other report as desired by Owner/PMC.

5.8 Field Engineering

LSTK Contractor shall be responsible for controlling and issue of technical drawings and documents,
preparation of field sketches, field modifications, checking/preparation of as-built drawings, technical
assistance for field purchase & field tendering etc. Specialist engineers from HO shall be deployed at
site as per requirements. Site should have facilities to incorporate field changes, prepare as-built
drawings at site itself, WAN facility (preferably) with H.O., printing machines and drawing control
system.

5.9 Field Tendering

LSTK Contractor shall be responsible for carrying out field tendering activities, as required.

5.10 Field Purchase

LSTK Contractor shall be responsible for carrying out field purchase activities, as required.
The bulk of procurement action shall be done from LSTK Contractor 's HO. Field purchase items are
restricted to those required for running and maintenance of the field offices, items required to expedite
construction work and items found short, missing or damaged against the main order when received at
the site. Any material purchased from field for usage in the plant should have proper inspection
certificate and should be purchased from Owner/PMC approved vendors.

5.11 Health, Safety and Environment (HSE) Management

LSTK Contractor shall submit “Site Specific HSE Plan” prepared with reference to construction HSE
requirements 6695-CMG-G00-CA-0003 to Owner/PMC for their approval. LSTK Contractor shall be
responsible for health, safety and environment (HSE) Management at construction site for the
construction activities to be carried out by the LSTK Contractor /their approved sub contractor s in
accordance with the requirements given in approved HSE plan.

It is the responsibility of the LSTK Contractor to maintain general cleanliness and proper housekeeping
at work site. LSTK Contractor shall organize disposal of excavated earth/garbage/rubbish/scraps, etc.
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on day to day basis to identified disposal areas/safe areas and forward daily report for the same
indicating the details of men and machinery deployed for the purpose.

5.12 Industrial Labour Relations

LSTK Contractor shall be responsible for industrial relation functions and implementation of labour laws
at site. LSTK Contractor ‘s staff shall be suitably trained and experienced in labour relation functions so
as to ensure a good relationship with labour and to prevent the occurrence of industrial disputes
resulting in subsequent delays or work stoppages. In particular, LSTK Contractor shall maintain close
liaison with Owner/PMC and with official Union representatives (if any) of LSTK Contractor 's work force.

LSTK Contractor shall maintain proper liaison with statutory authorities and local bodies and shall be
responsible to implement and observe all statutory laws at site.

LSTK Contractor must have on his staff; a well experienced labour relation officer, preferably from local
area.

LSTK Contractor shall report immediately to Owner/PMC any problems including labour disputes, fight,
and work stoppages. A written report shall be submitted to Owner/PMC within 24 hours after the
incident.

LSTK Contractor must submit a “Labour Relations Plan” prior to the start of the work/within one month
of award of the contract, whichever is earlier.

LSTK Contractor 's plan shall include:

 A detailed estimate of the number of foreign labour/local labour/labour from other states of India,
both indirect and direct, sorted by craft. This estimate shall specifically include the months and
durations that potential foreign labour shall be required.

 Outline of training plan for local semi-skilled labour and respective crafts.

 Outline how the respective government agencies shall be educated on maximization of local
workers.

 Outline recruiting plans for all manpower requirements.

 Identify personnel involved with labour relations and outline procedures to mitigate disputes,
problems should they occur with the labour force.
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 Labour welfare plan

 LSTK Contractor shall hold labour relations meeting twice a month with their workforce as well as
a separate meeting with Owner.

5.13 Construction Equipment

LSTK Contractor is required to organize and mobilize the construction equipment and other
tools/tackles in a sequential manner to ensure that plant installation is carried out in a mechanized
manner and its mechanical completion is achieved within targeted time schedule.

LSTK Contractor shall, without prejudice to his responsibility to execute and complete the work strictly
as per the specifications and other laid down procedures, execute all the work by mechanizing the
construction activities to the maximum extent by deploying all necessary construction equipment /
machinery of adequate capacities and numbers.

LSTK Contractor shall ensure deployment of all the construction equipment as per the requirement to
the maximum extent but not limited to

• Batching plants

• Concrete pumps

• Transit mixers

• Automatic welding machines

• Cranes of different capacities

• X-ray and Radiography sources

• Stress relieving equipment’s with recording facility

• All weather fabrication sheds

• Blast cleaning and painting shop

LSTK Contractor shall deploy portable alloy analyzer with printout facility and carry out 'Positive Material
Identification (PMI)' of materials and welds after erection/installation but prior to hydro static testing. Any
non-conformance detected shall be removed and replaced prior to final hydro static testing.

LSTK Contractor shall be responsible for arranging all facilities for torque tightening/tensioning of
bolts/fasteners as specified LSTK Contractor shall ensure that stud bolts are ordered extra long by one
diameter to facilitate tensioning.
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In order to minimize fabrication at site, major fabricated equipment like reactors, columns/towers,
vessels shall be transported in single piece/minimum no. of pieces.

LSTK Contractor shall carry out the route survey for transportation of 'Over Dimensioned
Consignments'(ODC) including waterways from source of manufacture/supply to site well in advance of
placement of order to ensure unhindered transportation of the same to construction site. LSTK
Contractor shall arrange cranes of suitable capacities to match with the erection requirements and
inform the source and ownership of the same. LSTK Contractor shall ensure cranes are not more than
15 years old fitted with all the safety devices and in good working condition. Use of hydra crane is
prohibited at site. LSTK Contractor shall engage new generation pick and carry cranes for construction
material handling.

Crane movement roads are to be clearly identified and marked on the plot plan before planning of such
movement. Construction of hard stands for positioning of crane in the fabrication yard and at erection
site/locations including approach roads to the hard stands from the plant roads shall be LSTK
Contractor’s responsibility. The hard stands shall be suitable for the crane loads provided by the crane
manufacturer.

For the purpose of equipment erection, the LSTK Contractor shall deploy a rigging team headed by a
rigging foreman/engineer reporting to concerned area engineer. Area engineer should be well
conversant with various erection techniques and shall be responsible for preparing erection schemes in
accordance with the approved procedures and based on crane manuals and suiting to plant layout.
Area engineer shall have to foresee various other construction activities in the surrounding areas while
planning erection schemes including safety aspects of man and machinery also.

LSTK Contractor shall prepare erection schedule in line with the overall project schedule of the Plant in
phased manner with erection schemes of various equipment’s, vessels and submit to Owner/PMC for
approval. Monitoring and control of erection schedule and erection activities shall be carried out by the
LSTK Contractor as per the approved construction procedures.

For efficient working and maintenance of construction aids, LSTK Contractor shall establish and
maintain crane yard/workshop equipped with regular maintenance facilities for various construction aids
for carrying out routine field maintenance during performance of the contract. Temporary approach road
and hard stands, wherever required for the movement of the cranes and other vehicles for equipment
erection and transportation of material shall be properly planned and made by the LSTK Contractor
Weekly/fortnightly maintenance shall be planned in such a way that the same does not hamper the
erection schedule.
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LSTK Contractor shall ensure the timely augmentation of the men, equipment and machinery depending
upon the exigencies of the work to meet the overall project schedule and as per instructions of
Engineer-in-Charge.

During performances of the work, LSTK Contractor must ensure that structures, materials and
equipment are adequately braced with guys, struts or any other means as deemed fit & approved by
Engineer-in-Charge. Such means shall be supplied and installed by the LSTK Contractor s as required
till the erection works is satisfactorily completed. Such guys, shoring, bracing, strutting, planking
supports etc. shall not interfere with the work of other agencies and shall not damage or cause distortion
to works executed by other agencies. All lifting tools, tackles and cranes shall be tested periodically by
statutory/competent authorities for their load carrying capacity. Such relevant valid/test certificates shall
be submitted to Owner/PMC for review before actual use of the tools, tackles and cranes.

LSTK Contractor shall submit the construction equipment deployment schedule. Daily construction
equipment deployment report shall be part of “Daily Progress Report” and be submitted by the LSTK
Contractor to Owner/PMC.

5.14 Construction Manpower

LSTK Contractor is required to organize and mobilize construction staff/manpower in a sequential

manner to ensure that plant installation is carried out in accordance with the construction schedule
defined elsewhere in this bid package. Mobilization of construction staff should be such that the
progress achieved in phased manner should match with the overall project schedule.

For this purpose, the LSTK Contractor shall clearly indicate in his construction methodology whether
work shall be done departmentally or by engaging sub-contractor or the combination of both. LSTK
Contractor shall prepare detailed methodology for the work to be carried out departmentally as well as
through sub-contractors clearly, defining the scope and responsibility of LSTK Contractor and his sub-
contractor.

The works of all sub-contractors shall be managed by the construction staff of the main LSTK
Contractor who shall perform the duties of construction management and shall administer, co-ordinate,
and inspect the works of the sub-contractors and be responsible for the Quality and timely completion of
respective works. The LSTK Contractor shall establish the pre-requisites for successful completion of
sub-contractor s work.

However, by deploying the sub-contractors, as approved by Owner/PMC for any discipline, does not
absolve the LSTK Contractor for his total responsibility under the subject contract.
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The LSTK Contractor must note that in case of any sub-contractor’s failure to execute the works as per
standards/specifications/drawings and/or negligence & disobedience in carrying out any order or
instruction of Owner/PMC, the same will be viewed very seriously and any action as deemed fit in
accordance with provision(s) of the contract, will be taken by Owner/PMC.

LSTK Contractor must submit the construction manpower deployment schedule along with the bid.
Construction manpower deployment schedule shall clearly indicate deployment of national and
international (foreigner) manpower with specific man hours/man months in particular for foreign
nationals who shall be deployed at site along with details of their qualification/experience and
nationality. Daily construction manpower deployment report shall also be submitted by the LSTK
Contractor to Owner/PMC on approved format. Any additional manpower of any category required to be
deployed during the actual execution of the work to meet the Project time schedule and as instructed by
Owner/PMC, shall be mobilized by the LSTK Contractor within a reasonable time. Mobilization of such
additional manpower by the LSTK Contractor shall not entitle him for any additional compensation at all.

All construction supervision, coordination and management activities shall be carried out by the LSTK
Contractor in accordance with the construction procedures approved by Owner/PMC. LSTK Contractor
shall prepare construction schedules based on the overall project schedule of the plant and submit the
same to Owner/PMC for approval. Monitoring and control of the construction activities shall be carried
out as per the approved construction schedule & procedures.

During the execution of works at site, if the LSTK Contractor engages sub-contractor for execution of
works at site as per approval obtained from Owner/PMC in line with contract’s provision and in the event
sub-contractor complains in writing to the Ownerwith regard to the non-payment of their dues from the
LSTK Contractor for the works executed by them (excluding final payments and payments due after
termination of sub-contractor’s services by the main LSTK Contractor), Owner/PMC reserves the right to
make such payment to the sub-contractor s directly based on approved measurements with due notice
to the LSTK Contractor. Owner/PMC will release such payments to sub-contractor at the cost and risk of
the LSTK Contractor in order to ensure smooth execution of work at site. All such payments made by
Owner/PMC to the sub-contractor’s will be deducted from the running account bills or any other
payments due to the LSTK Contractor.

5.15 Commissioning

LSTK Contractor shall submit system/sub system wise dossiers containing all relevant
documents/records on completion of mechanical completion to Owner/PMC. LSTK Contractor shall
supply and fill all initial lubricants, chemicals, consumable, spares required for start-up. Pre-
commissioning and commissioning services are in the LSTK Contractor scope of work. The scope also
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includes providing technical experts/technician for critical equipment and equipment supplier’s
representatives for commissioning supervision.

5.16 Closing of Contract

LSTK Contractor on completion of the works in all respects as specified in the contract is required to
complete the following activities but not limited to the same for closing of the contract. Payment against
LSTK Contractor ‘s final bill shall be released upon the satisfactory completion of activities
pertaining to closing of the contract and submission of following documents:

• Certificate for Successful Completion of Commissioning and

Performance test as per S.C.C. (Special Conditions of Contract)
• Copy of Owner’s approval for final time extension.
• Completion certificate (overall).
• Submission of completion documents as per SCC.
• Reconciliation of Free Issue Material (if any) and surplus.
• Site clearance as per Contract.
• Supply of spares as per S.C.C. clause reconciliation & handing over
• Submission of operating manuals, if any.
• Submission of any balance documents to the Owner for claiming
CENVAT/MODVAT Benefits as applicable
• Submission of Guarantees as specified in SCC.
• Approval from Statutory Authorities and Government bodies.
• Approval from Owner/PMC for extra claims, if any.
• No claims certificate.
• No dues certificate.
• LSTK Contractor Demobilization check list.
• Completion of contract close out checklist.
• Detailed contract close out report.
• Any other documents to be submitted as specified elsewhere in the contract.
• No liability certificate: - Self-certification from the LSTK Contractor that no
payment is balance to their labourers sub-contractor s and vendors on account of service
rendered/materials supplied by them.
• Insurance Policies required as per GCC and SCC.
• Validity Extension of various Bank Guarantees required as per contract.
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The LSTK Contractor shall be required to submit the documents for those activities which are
completed before mechanical completion including Q.A. documents, statutory authorities approvals, as
built drawings etc. concurrent to mechanical completion.

Balance documents such as completion certificate for performance guarantee test, excluding final
completion certificate are to be submitted within seven working days of completion of P.G. Test.
The broad checklist is listed below. However, LSTK Contractor to prepare his own exhaustive check-list
including detailed procedure for contract close-out and get it reviewed by PMC/Owner before
implementation.

LSTK Contractor Demobilization Check-list

LSTK
Description of activity PMC Owner
Contracto
Material reconciliation
Return of surplus material

Removal of temporary facilities –

site office, temporary water/ power connection etc.

Clearance of site viz. debris

construction material, tool & tackles,
equipment etc.
Reconciliation of entry pass for
men/material.

Checklist for Contract Closing

Signature with
Item description LSTKd t
Contrac PMC Owner Remarks
tor
Handing over of all mandatory and commissioning
spares to Owner.
Handing over of all construction surplus materials to
Owner.
Reconciliation of gate pass (Labour) & clearance.

Reconciliation of gate pass (Materials) & clearance.

Certification of final construction measurement & Bill.

Final documentation handing over, including as-built

drawings /documents

Detailed close out report submission to PMC/Owner

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Ensure proper house keeping before handing over of

plant to Owner.
Labour statutory compliances
Submission of certificate from Govt. authority (Weigh
bridge & Lifts)

Final statement of recoveries on account of electricity

charges, penalties, etc.

No claim certificate by the LSTK Contractor & sub-

contractors.

No dues certificate by the LSTK Contractor.

Labour liability certificate - Self certification from LSTK

Contractor that no payment is balance to their labourer
sub- contractors and vendors on account service
rendered / materials supplied by them.

Site clearance certificate endorsed by PMC.

Indemnity certificate issued by LSTK Contractor

Completion certificate issued by PMC (date of time

extension should tally with date of completion certificate)

Copy of Owner's approval for final time extension

Certificate for successful completion of commissioning

and performance guarantee test run
Submission of Guarantees Certificate as specified in
contract
PF & ESI certification up to the date of completion of the
job.
Submission of any balance documents to the Owner for
claiming MODVAT / CENVAT benefit, as applicable.
Validity extension of various bank guarantees required as
per contract.
Settlement of all positive & negative change orders
Any other documents to be submitted as specified
elsewhere in the contract