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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

SAPMT IMPLEMENTATION GUIDE FOR A PROJECT-LEVEL CONSTRUCTABILITY PROGRAM

Document No. PS&CD 12345-001 Rev. A October 28, 2005

Document Control / Distribution Sheet Document No. PS&CD-12345-001 Rev. A Date 10/28/05

Rev. No. A

Affected Sections None

Remarks Amendments Initial Release

Reviewed By:

Issued To:

Action: For review & acceptance

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

TABLE OF CONTENTS Page 1. Introduction

3

2. Scope

4

3. Constructability Program Implementation Steps 3.1

Obtaining Constructability Capabilities

5

3.2

Planning Constructability Implementation

14

3.3

Program Implementation

24

4. Summary and Conclusions

28

5. Recommendations

29

6. Glossary of Constructability Terms

30

7. Appendices 7.1

Sample Constructability Suggestion Form

35

7.2

Sample Constructability Logbook Page

36

7.3

Sample Constructability Quarterly Report

37

7.4

Constructability Program Implementation Flowchart

38

8 Draft Constructability Plan Template

39

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

SECTION 1 INTRODUCTION By definition, Constructability is the optimum use of construction knowledge and experience in planning, design/engineering, procurement and field operations (construction) phases to achieve overall project objectives. A Constructability Program, on the other hand, is the application of a disciplined and systematic optimization of the construction-related aspects of a project during the planning, design/engineering, procurement, test and start-up phases by knowledgeable and experienced construction personnel who are part of the project team. The focus of a Constructability Program is to incorporate construction knowledge and experience, as early as possible, within the project life cycle and to capture that knowledge to pass on to future projects. A well prepared Constructability Program is multi-faceted, dynamic and aggressively designed to bridge the gaps that may exist between engineering, procurement and construction team members, and is an important element of the total quality process in project delivery. To realize its full potential, a Constructability Program must incorporate the following essential elements:   

Constructability is a program that requires proactive attention. Individuals with construction knowledge should jointly and actively participate with other project management and design personnel to brainstorm concepts and approaches. Constructability is a team effort. The interests of all parties should be jointly represented in all decisions. For Constructability efforts to be successful, Management support and commitment is critical.

Six Basic constructability concepts are generally applicable to the conceptual planning phase of any project:      

Constructability Programs are made an integral part of project execution plans. Project planning actively involves construction knowledge and experience. Early construction involvement is considered in development of contracting strategies. Overall project schedules are construction-driven. Basic design approaches consider major construction methods. Site layouts promote efficient construction as well as efficient operation and maintenance.

Similarly, seven basic concepts are generally applicable to the design and procurement phases of any project:    

  

Design and procurement schedules are construction-driven. Designs are configured to enable efficient construction. Design elements are standardized. Construction efficiency is considered in specification development. Module / preassembly designs are prepared to facilitate fabrication, transport and installation. Designs promote construction accessibility of personnel, material and equipment. Designs facilitate construction under adverse weather conditions.

This procedure outlines the phased implementation of a Constructability Program at the project level. Page 3 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

SECTION 2 SCOPE The implementation of a Constructability Program at the project level consists of three critical milestones:

1. Obtain constructability capabilities 2. Plan constructability implementation 3. Implement constructability These milestones, as well as steps describing each milestone, are presented in Figure 2-1 and are further described below.

Figure 2-1 Implementation Roadmap for a Project-Level Constructability Program The constructability process should begin shortly after the owner’s conception of the project (during DBSP) and continue through project planning, design, procurement, construction, and start-up. The earlier in the project these constructability efforts begin, the higher the potential savings. In addition, project constructability can play a significant role in securing contractors, vendors, and consultants. The following three sections describe each of the steps included in a project-level constructability program. Information is presented in a sequential format to provide project managers with a starting point in the implementation of a constructability program. Relevant portions of the program may be adopted into an organization’s constructability program.

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SECTION 3.1 Obtaining Constructability Capabilities To obtain constructability capabilities for the project, the owner should assess available in-house expertise and consider the procurement of external design and construction expertise. As shown in Figure 3-1, four general steps lead to obtaining constructability capabilities:    

Assemble key constructability team members Define constructability objectives and measures Select project contracting strategy Secure contractors, vendors, and consultants

Each of these steps is described below. Assemble Constructability Team Members

Define Constructability Objectives and Measures

Select Project Contracting Strategy

Secure Contractors, Vendors and Consultants

o o

Select project manager committed to constructability. Establish criteria for selection of constructability team members.

o o o o

Establish project objectives considering constructability. Establish constructability objectives. Identify appropriate metrics for objectives. Determine level of formality for constructability program.

o o

Identify available in-house constructability resources. Select contracting strategy which best matches your constructability objectives. Select organization responsible for constructability.

o

o o o

Require constructability program as part of contractor prequalification process. Use owner Request for Proposal (RFP) and/or project specifications to obtain constructability input. Consider use of incentive clauses related to constructability performance.

Figure 3-1 Steps to obtain Constructability Capabilities

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

Assemble Constructability Team Members The project manager and team members have a critical influence on the success of the project’s constructability. Only when the team is fully committed to planning for and implementing a constructability program will such a program be of maximum benefit. To enhance the constructability efforts, the owner should: 

Select a project manager who is committed to constructability



Establish criteria for selection of other constructability team members.

Considerations which must be addressed during these two activities are described below. Select project manager committed to constructability. The project manager (PM) from the owner’s organization plays a vital role in the decision to implement a project-level constructability program. In addition, the emphasis the PM places on the program impacts its effectiveness. Without his commitment, making constructability a positive influence will be extremely difficult. The project manager must be able to lead the team in the following areas: •

Establish a supportive project environment. The roles, responsibilities, actions, and lines of communication for the project’s team need to be well defined. Mechanisms should be put in place to provide for early and meaningful input of construction knowledge and experience.

•

Make a commitment to increased cost effectiveness. Constructability will be enhanced if the project manager emphasizes the influence that project decisions have on the project’s cost. The project manager can insist that construction input be provided for in the project’s major decisions.

•

Use constructability to meet other project objectives. Constructability should support the traditional project objectives of cost, schedule, quality, and safety. Constructability also can be used to assess trade-offs between conflicting objectives.

•

Acquire and involve experienced construction personnel. The project team should actively source experienced construction personnel to be involved in major management and technical decisions for the project. The project manager must be able to provide an objective balance between design and construction needs.

Establish criteria for selection of key owner team members. As with the project manager, constructability team members from the owner’s organization should be committed to constructability. If certain participants are unfamiliar with constructability concepts, they should be educated on the potential benefits. The success of the constructability program depends on active and informed participation of the team as a whole; therefore, a clear set of criteria should be developed for selection of constructability team members. Selection criteria should include the individual’s:      

Work experience Construction knowledge Communication skills Teamwork skills Skill to objectively evaluate design and construction trade-offs Receptiveness to new ideas Page 6 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

Define Constructability Objectives and Measures Once the constructability team members are selected, the team can then define its constructability objectives and measures. This step includes the following four activities: 1. Establish project objectives with respect to constructability. 2. Establish constructability objectives. 3. Identify appropriate target metrics for objectives. 4. Determine level of formality for constructability program. Establish project objectives considering constructability. Constructability plays an important role in achieving established project objectives. Developing a clear understanding of the project’s objectives and priorities is the first responsibility of the project team. Project objectives typically include cost, schedule, quality, and safety. Other objectives can include: aesthetics, reliability, operability, and maintainability. Constructability programs can reduce maintenance costs, increase operability and safety and enhance aesthetics.

Figure 3-2 Traditional Project Objectives Traditional project objectives are shown in Figure 3-2. Each participant should be aware of the overall project objectives and attempt to achieve them rather than focusing only on their individual sub-objectives. For example, a designer that attempts to minimize design effort only may actually cause an increase in construction effort, which in turn increases the project’s overall life-cycle cost. Page 7 of 53

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The project team should develop a detailed list of project objectives and prioritize each one. Assigning priorities based on qualitative (operability, maintainability etc.) criteria is as equally important as those based on cost and schedule. It is important to evaluate the design and construction implications when prioritizing the objectives. These objectives should be used later in the project to analyze trade-offs between alternatives influencing both design and construction. As the project matures through successive phases, these objectives should be reviewed and reevaluated with the input of current and newly- joined team members. Establish constructability objectives. Once the design and construction participants are involved, a specific set of constructability objectives can be developed. This set of objectives can be used to enable trade-off analysis between constructability and other project considerations. A list of constructability-specific objectives may include optimizing: • • • • • • • • • • • • • •

Use of standardized elements Use of modular construction or preassembly Use of lift equipment Material fabrication and laydown areas Ease of fabrication and erection Use of physical models or 3-dimensional CAD Number of field welds Jobsite accessibility Development of construction-friendly specifications Improving constructor/engineer communications Minimizing construction rework Minimizing design rework Minimizing jobsite congestion Integration of key procurement milestones with construction activities

Identify appropriate metrics for objectives. Developing appropriate performance measurements is often more difficult than establishing the objectives. Cost and schedule performance usually is the most easily measured, whereby estimates are commonly made for design alternatives and trade-off analysis. Safety can be measured by comparing lost-time accident rates to similar projects or national averages. Some sample performance indices for projects are: • • • • • • • • • •

Capital dollars Construction dollars Direct field labor hours Labor productivity (work-hours/unit) Number of items non-conforming with specifications (NCR’s) Design re-work work-hours Number and cost of Change Orders Lost-time incident rate Shut-down duration (hours) Personnel and material jobsite accessibility (lost time due to work permits, gate passes etc.)

Determine level of formality for the constructability program. Project size should not be the only consideration in determining the level of formality of the constructability program. Even if a project is relatively small for an owner, a formal program may still be feasible. Many constructability lessons learned on large and complex projects are equally applicable to smaller projects.

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Several considerations will affect this decision process, including: o o

Owner objectives, expertise, and resources Project characteristics such as construction type, contract type, project size, technical difficulty, site location, and peculiarities.

Several ways exist to formalize a constructability program. These methods may include: o o o o o o

Developing a budget. Providing a constructability manual. (See attached template) Preparation of formal implementation procedures for major constructability tasks. Establishing a regular Constructability Review schedule and procedure. Issuing regular progress and status reports. Establishing a Constructability Log for tracking constructability suggestions and results.

Constructability Budgeting Guidelines Benchmark measurements of Constructability efforts consistently reflect cost reductions of 3 to 5% of Total Installed Cost. On a capital project with a budget of $10MM, the projected savings target would be in the $300M to $500M range. A Constructability Program with a desired benefit/cost ratio of 10/1 and a targeted savings of $400M will allow an investment in constructability of about $40,000. These Constructability Program investment costs should include all the loaded work-hours involved in applying constructability concepts, as well as all other direct costs for travel, training, documentation, etc. associated with the Constructability Program. If $10,000 of the investment costs were budgeted for travel, training and materials associated with the Constructability Program, $30,000 would remain for work-hour efforts. If the loaded billing rate of the typical individual involved in the constructability program is $100 per work-hour, then 300 total work-hours would be the appropriate effort budget for the Constructability Program activity. Half this effort might be attributed to the project constructability coordinator with the balance being divided among technical discipline experts and specialists. Note that this is generally a conservative analysis since the benefits of any schedule reduction resulting from the Constructability Program have not been factored into the analysis.

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Select Project Contracting Strategy The selection of the contract strategy has a profound impact on the timing and application of constructability input. A contract strategy consists of two parts:  

Contract Arrangement selection Choosing the appropriate Contract type

Contract arrangements examples include traditional design-build and design-manage. These arrangements influence the parties involved and their relationships. Conversely, contract type dictates the commercial terms in which the parties are contractually bound and paid. Examples of contract type are fixed price or reimbursable. Contracting strategy also affects the level of formality of the constructability program. In selecting a strategy, an owner must:   

Assess the available in-house constructability resources. Recognize how the selection of a contracting strategy impacts project constructability. Select the contract organization best suited to be responsible for constructability during the initial stages of project definition.

Identify owner’s available in-house constructability resources. The project team should identify and assess existing in-house constructability resources. Performing a self-assessment can assist in determining the contract strategy and whether specific construction management services are required. If formalized constructability approaches have been previously taken, the project team should obtain first-hand knowledge of the success of the constructability program and lessons learned. Owners should seek out and use pre-existing, in-house constructability expertise to the fullest extent possible. Selection of contracting strategy impacts project constructability. The contractual relationship between the owner, the designer, and the contractor strongly influences the means and extent of early construction involvement. The project team will select a specific contracting strategy for each project based on those parameters that are perceived to best meet the project goals. This contracting strategy, consisting of a contractual approach used for selecting the engineering and construction contractor and the contract type used for each of these services, takes a variety of forms. In the Traditional Contracting arrangement, the owner first selects an engineering or architectural firm and then selects a single general contractor to be responsible for the construction. The general contractor can self-perform a portion of the construction and award multiple subcontracts to accomplish the balance of the work. Generally the contract type used for the selection of the engineering or architectural firm is of a professional fee type. The contract type with the general contractor is a fixed price. Under a fixed-price contract type, the constructor is unable to participate early in the planning and design phases. Hence, the owner must lead the constructability effort. A variation of this approach occurs when the general contractor is selected early in the project process to act as the owner’s construction manager (CM). For purposes of identification, this is referred to as the general contractor. The contract used varies from a reimbursable, professional fee for the CM services to a

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guaranteed maximum price for the cost of construction, which is established once the project scope is defined. In the Design-Build Contracting arrangement, the owner selects a single firm to be responsible for the engineering/design as well as the construction. A number of variations of the contract types are used in this approach. Many are fixed price based on an owner’s performance or turnkey specification. In this contract strategy, constructability is best implemented by the design-build contractor. The benefits of constructability accrue to the design-build contractor, possibly creating substantial cost savings. This encourages the design-build contractor to utilize constructability tools to the fullest extent possible. Some owners award a design-build contract with a guaranteed maximum price that is established after project scope has been determined. Design-construct, a form of the design-build approach, is usually performed on a cost reimbursable basis with performance-based incentives. In the Design-Manage Contract arrangement, the owner selects a single firm to be responsible for the engineering/design and the construction management of the project. The selected firm also is responsible for implementing constructability. Construction is performed through the utilization of multiple contract packages, which generally are competitively bid. The contract type may be fixed price for professional services, containing a ceiling with some type of fee structure, or cost reimbursable with an incentive program related to performance. A variation of this approach occurs when the owner awards a separate contract for construction management. This is referred to as the Construction Management Contract arrangement, and the CM is responsible for implementing constructability. The contract types under the CM approach are similar to that of the design-manage arrangement. Each of these contracting arrangements will have different results due to the timing of contractor construction expertise availability to the project. The traditional approach does not call for selecting a general contractor until the design package is complete, whereas the design-manage and designconstruct strategies can provide for early construction participation. The other strategies may allow for early construction participation, depending on how the owner establishes the strategy. Select organization responsible for constructability. Once a contracting strategy is selected, the owner should decide which organization (owner, constructor, or design/ construction manager) is responsible for implementing and monitoring the constructability program. Ownerimplemented programs usually maintain their own lessons-learned files that benefit constructability communication between projects. Such communication can be particularly useful if the owner frequently constructs similar facility types. Considerations to potential barriers created by assigning constructability responsibilities to a constructor may need to be addressed. This may occur when a design engineer is not familiar with participating as part of a team.

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Secure Contractors, Vendors, and Consultants Once the owner has selected the contacting strategy to be used on the project, the next step is to determine how to facilitate early implementation of the constructability process. When the construction contractor or construction manager has not been selected early enough to contribute to the high cost-impact decisions made during the conceptual planning phase of a project, a surrogate construction contractor or construction manager may be required to provide the necessary construction knowledge and experience input. The surrogate may come from the owner, the design organization, a constructor, a construction manager, or a consultant. Require a Constructability Program as part of contractor prequalification process. When the contract strategy involves early selection of the constructor or requires the utilization of other resources, the owner should include in their contractor prequalification process criteria that includes utilization and effectiveness of the contractor’s constructability program. Factors to consider are:    

Corporate-level program — Assessment of corporate philosophy and recognition of the Constructability Program. Program documentation — Evaluation of existing manuals, methods used to track progress, and incorporation of lessons learned. Breadth of experience implementing program — Assessment of previous application of their program and the personnel responsible for its implementation. Project-level program supports — Evaluation of tools to assist in implementing constructability including how they incorporate new technology.

Use request for proposal (RFP) and/or project specifications to obtain constructability input. When owners include constructability requirements in their bid documents, a wide variation in their level of detail can occur. The constructability requirements may appear in the owner’s “Standard Terms and Conditions” or “Specification within the Scope of Services” sections. Several excerpts of inquiry documents for engineering and construction services are provided below. 1. Engineering Inquiry Document for Engineering Services:

   

“Constructability - Advise how bidder would integrate constructability into the front end of the project and outline previous experience the bidder has with such integration.” “Prepare a construction plan for each of the work divisions. This plan will be developed by your construction management organization.” “Bidder shall provide constructability analysis.” “Eight general contractors will be invited to review the planning material during the course of project development. Contractors will be requested to evaluate information offered and respond with value engineering and constructability suggestions.”

2. Construction Inquiry Document for Construction Services: 

“Furnish experienced construction personnel in the engineering contractor’s home office to provide constructability and scheduling input.”

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

“Bidder is required to provide detailed information concerning the proposed methods and procedures to be implemented to ensure the constructability of the WORK. Bidder shall also demonstrate due concern for materials management and handling, worker motivation and productivity, and the use of innovative procedures.”

3. One owner included in the RFP a document that described the desired relationship between the owner and construction contractors. Included within this document is a paragraph that states: 

“We normally expect an earlier involvement of some of the contractor’s key personnel than is customary. For example, in advance of the general job mobilization certain personnel may be assigned for training on the specific methods to be employed, to prepare procedures manuals, participate in team development and early planning, and to provide effective input on constructability of specific details as the engineering design and schedule are developing.”

Additional reference information on Contracting Strategy development and Contract Language can be found under Tool No. 16 of the CII Constructability Implementation Guide 34-1, which is available online on the Best Practices website at: http://pscd.dha.aramco.com.sa/divisions/bpt/PM%20Best%20Practices/Constructability/CII34_1.PDF

Consider use of incentive clauses within the contract related to constructability performance. Well conceived incentive clauses can effectively enhance a project’s constructability. On a petrochemical facility expansion project, an owner effectively integrated incentive programs between the on-site designer and constructor (see Case Studies). The designer’s and constructor’s incentive programs both included incentives for milestones, quality, and final completion. The designer also had home office effort-hour incentives. The constructor had field productivity and safety incentives in addition to other incentives. To benefit from the incentives, the two organizations (designer and constructor) were dependent upon one another and had to work jointly to coordinate their efforts. On this project, common goals were established between the designer and the constructor. These goals encouraged the implementation of constructability as a means to ensure that common objectives were met. Creating the common goals also acted as one of the means to provide team building for the project.

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Section 3.2 Plan Constructability Implementation As shown in Figure 3-3, four steps lead to effectively planning for constructability implementation: 1. 2. 3. 4.

Develop constructability team. Identify and address project barriers. Consult applications matrix and lessons-learned file. Develop constructability procedures and integrate into project activities. o o o o

Assemble constructability team members. Organize constructability team. Develop and distribute a Constructability Plan Orient constructability team

o o

Identify barriers present within the team. Define barrier breaker strategies.

Constructability Information Input Sources

o o o o

Constructability Checklists The Lessons Learned Database Suggestion Form Programs Constructability Review Programs

Develop Constructability Procedures and integrate into Project Activities

o o o

Refine constructability roles and responsibilities. Define specific constructability procedures. Integrate constructability into project activities.

Develop Constructability Team

Identify and Address Project Barriers

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Figure 3-3 Steps to Plan Constructability Implementation Planning is an action critical to constructability implementation. It should begin as soon as possible and include the major project participants to the maximum extent possible. The Constructability Program should be integrated into the overall Project Execution Plan. A Project Execution Plan (PEP) should define the constructability objectives and explain in detail how the project team plans to function in order to accomplish traditional project objectives. The integration of constructability input into the PEP is highly dependent on the project type and contracting strategy. The project manager should be responsible for providing adequate construction involvement during development of the project plan. Inadequate project planning can lead to: o

Construction activities not sequenced in the proper order

o

Inefficient crew concentrations

o

Incomplete bid packages

o

Material shortages

o

Accelerated design leading to rework

This plan usually addresses the following elements: o

Project scope

o

Project organization

o

Operating procedures

o

Budget

o

Design plan

o

Project schedule

o

Contracting/subcontracting plan

o

Material management plan

o

Proposed construction plans and methods

o

Site plan

o

Commissioning plan

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Construction knowledge and experience needs to be involved in the development of these elements. The project manager is responsible for ensuring that a knowledgeable construction representative is involved.

Developing the Constructability Team The constructability team includes personnel from the owner, designer, and constructor organizations and the project team. Also included are representatives from subcontractors, vendors, and consultants as applicable. To ensure mutual interests and to minimize any adversarial relationships, the following five activities should be conducted independent of project size. Assemble constructability team members. It is essential that the individuals selected to participate on the constructability team have construction experience and strong interpersonal skills and be open-minded. In selecting key members of the constructability team, the project manager should consider the following principles. o

Plan early. Planning can assist in overcoming barriers such as justifying the expenditure to hire construction personnel earlier than traditional project management approaches or failing to have appropriate personnel available when needed.

o

Insist on experienced individuals. It is essential to have experienced contractor personnel participate in constructability. Selection criteria should be outlined in advance.

o

Select cooperative team players. The key team members must be able to openly discuss issues with other project participants. The individuals must be willing to accept other points of view from the project’s team members.

o

Minimize project team turn-over. The importance of continuity within the project team is essential to achieve success. Minimizing team turn-over increases the likelihood of constructability success.

These principles apply to selection of key constructability team members for the design, construction, and/or construction management organizations participating on the project. Organize constructability team. The organizational structure of the constructability team varies from project to project. An organizational chart must be drafted identifying the constructability team participants and delineating their roles. Figure 3-4 shows a sample organizational chart. With the exception of the Constructability Coordinator, project team members participate in the constructability program on a part-time basis. The involvement of the Constructability Coordinator is Page 16 of 53

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dependent upon the formality of the Constructability Program implemented. On large capital projects with a formal Constructability Program, the Constructability Coordinator may be a full-time position. The individual may reside in the design office, coordinate constructability activities, and act as a liaison to the corporate constructability manager. On smaller projects, the construction manager or other team member may serve as the Constructability Coordinator on a part-time basis. If the constructor for the project has not been selected prior to the start of design, appropriate construction expertise must be provided. The expertise may come from the owner, the design organization, a professional construction manager, or a consultant. Several problems may result from use of expertise rather than the actual constructor. Lack of continuity or an attempt to shift the construction approach of the project by the selected constructor may conflict with the previously obtained constructability input.

Figure 3-4 Sample Project Organization Structure

Develop and distribute a Constructability Plan. A Constructability Plan is the basic vehicle which outlines the process of constructability. This plan can be developed after the constructability team is formed. Basic elements of a Constructability Plan may include: o

Organization Chart of the Constructability Team.

o

Project Constructability Objectives and Procedures

o

Budgetary Guidelines

o

Documentation and Reporting Guidelines

o

Meeting Schedules

o

Constructability Review Intervals and Procedures

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o

Lessons Learned and Constructability Checklist Plan

o

Suggestion Form Implementation Plan

o

Constructability Training Plan

o

Constructability Program Turnover Guidelines

o

Incentive Program (if applicable)

The project’s Constructability Plan can be developed from an existing template or as part of a teambuilding activity. A sample Constructability Plan template can be found in Appendix 7.4 at the end of this document.

Orient constructability team. The members of the constructability team need to be informed of the project constructability philosophy. Informal orientation concerning constructability can include: o

Definition of constructability

o

Constructability policy for project

o

Importance of teamwork and communication

o

Discussion of project objectives

o

Discussion of project’s critical success factors

o

Roles and responsibilities of constructability team members

o

General constructability procedures for project

Refer to the previously developed constructability objectives and measures defined in Step 2 of Section 3.1. This may facilitate obtaining team commitment to the key program objectives.

Identify and Address Project Barriers Many organizations are reluctant to invest resources to increase early constructability input during conceptual planning. This aspect, along with a number of other factors, can impose significant barriers to the effective implementation of an effective Constructability Program. The constructability team must be able to identify existing barriers and develop means to overcome them. Identify barriers to Constructability Implementation. A wide variety of barriers makes implementation of constructability more difficult. Some barriers relate to obtaining the owner’s commitment to initiate the constructability process: lack of constructability awareness, reluctance to provide front-end funding, and the perception that constructability is already being done effectively. Other barriers, however, are related to the team members’ unfamiliarity to the constructability philosophy and how it works. Typical examples of barriers include:

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o o o o o o o

Complacency with status quo Reluctance to invest additional money and effort in early project stages Limitations of lump-sum competitive contracting Lack of access to construction experience in design organization Designer’s perception that “we do it” Lack of communications between design and constructors Construction input requested too late to be of value

As an activity, each member of the constructability team should identify the barriers that they anticipate for the project. By so doing, many of the member’s own internal barriers can be revealed. Define barrier breaker strategy. Members of the constructability team should also participate in developing mechanisms to break the barriers in order to effectively apply constructability to the project. This may be included as part of a team-building exercise. Examples of such mechanisms include: education, the sharing of constructability success stories among constructability team members, referencing publications, and the review of case studies.

Constructability Input Sources A constructability program acts as a vehicle to share construction knowledge and experience. In this section, four basic means are presented to assist constructability teams in drawing upon such knowledge and experience:  Constructability Checklists  The Lessons Learned Database  Suggestion Form Programs  Constructability Review Programs Use of Constructability Checklists. To assure the application of constructability concepts, the constructability team should develop formal and systematic means for incorporating them within the early phases of a project. Constructability Checklists are a tool that link constructability concepts to specific disciplines and activities within each phase of the facility delivery process. A link is defined when a given concept is applicable to an activity. Use of such checklists can provide a means to systematically incorporate the constructability concepts. A comprehensive draft checklist is available on the BPG website at the following link: http://pscd.dha.aramco.com.sa/divisions/bpt/PM%20Best%20Practices/Constructability/Checklist This checklist (or a suitable alternative) should be distributed to the appropriate discipline-leads of the constructability team when it is first formed. With a working familiarity of both constructability concepts and the project scope of work, a thorough review of the checklists should then be conducted. Elements from the checklist which are found inapplicable should be deleted and those which apply should be earmarked for further study. Additional elements are added based upon the specific requirements of the project’s scope, the experience and input from the team as well as input from vendors, contractors, proponents and the like. As the list is developed, it is important to assign action responsibility for each of the items. Attributes such as cost / schedule savings or quality or safety enhancements should be characterized in detail and due dates should be set for appropriate studies and further action. This checklist becomes an integral component of the Constructability Review Process, which is described later in subsequent sections of this document.

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Screen the Lessons Learned Database. Gaining knowledge from previous experiences is essential to any successful constructability program. The Lessons Learned Database that is maintained by the Best Practices Group is accessible online at: http://pscd.dha.aramco.com.sa/divisions/bpt/LLD/ It contains a knowledge-base of more than three hundred distinct lessons from previous and on-going Saudi Aramco projects, and is searchable by BI number, discipline, project type and phase, Best Practice type and Quality criteria. Although the Lessons Learned Implementation and Collection sessions are conducted as separate and distinct events, they should be viewed as an integral component of any Constructability Program. Conversely, a well thought-out Constructability Program will serve as a repository for archival data for not only Lessons Learned, but also Suggestion Form input, Change Order data as well as hand-over data between project phases and for Project Close-out Reports per SAEP-329. The responsibility for integrating input from the Constructability Checklists, Lessons Learned and the Suggestions Forms resides with the Constructability Coordinator who also assists with their distribution and with overall Constructability conceptual support. Suggestion Form Programs. In conjunction with the Constructability Checklists and Lessons Learned review process, the Constructability Suggestion Form is an open vehicle for collection of constructability input from the project team. Samples of Constructability Suggestion Forms and Constructability Logbook pages can be found in Appendix 7.1 – 7.2. The Constructability Coordinator is responsible for administering the C-Form process which includes providing training and awareness for team members, collection and logging of submitted suggestions, identifying and characterizing proposed benefits, and recording the status (adopted, rejected etc.) of each suggestion. Suggestions which are accepted for further study or action should be assigned to the appropriate team member and tracked for progress and results achieved. An optional Incentive Program could also be implemented as an enhancement to the Suggestion Form Program, whereby team members who submit suggestions which result in tangible benefits to the program or project could be rewarded for their ideas and input. Such incentive programs should be designed to increase awareness of the Constructability efforts and to further promote team participation. As part of a formal Constructability Program, the project team should monitor and evaluate the effectiveness of the program. Organizations can more easily justify Constructability Program expenditures on future projects when the benefits of successful programs on past projects are documented. Quantifying and tracking the benefits realized in terms of cost or schedule savings, quality or safety enhancements or re-work reduction is an essential component of any Constructability effort. Constructability Review Programs. Per Best Practices implementation procedures, Periodic Constructability Reviews are scheduled at 30% Project Proposal and 20% Detail Design milestone dates. These reviews should be conducted as critical milestone events within the context of the overall Constructability Program, and should address the following items at a minimum:    

A functional back-check or review of Constructability Program actions to date. Status of outstanding items on the Constructability Checklists & Suggestion Forms. Open discussion of issues and challenges facing the team and project efforts. Updating of entries to the Constructability log and assigning responsibility for action items.

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

A current assessment of the project design package in terms of bidability and buildability.

Required attendees should include PMT Representatives, Project Constructability Coordinator, Design Team Discipline Leads, Proponent Representatives, Construction Managers and Vendor Specialists as appropriate. Key deliverables from these reviews include: overall program status reports, action item updates with comments, drawing and specification mark-ups or updates and overall project recommendations. It should be noted however, that whereas Constructability Reviews should be included as part of the overall constructability efforts, they should not dominate the program. The reason for this lies within the nature of such reviews, which tend to take a reactive rather than a proactive approach. Constructability Reviews are useful in identifying omissions, ambiguities and inadequacies of the design and schedule packages. Conversely, an active Constructability Program encourages a continuous process of identifying and assessing opportunities to enhance the construction process and avoid inefficiencies in design and field operations.

Develop Constructability Procedures and Integrate into Project Activities Constructability activities need to be developed and planned for application during the conceptual planning, design, and construction phases of all projects. The constructability team needs to develop a concise set of constructability procedures and integrate constructability activities into the project schedule. The constructability coordinator can initiate this step and should ensure that it is completed. Each of the tasks under this step is described below. Refine constructability roles and responsibilities. The roles and responsibilities of each of the constructability team members should be clearly defined. The team member’s responsibilities are defined below. o

Project Manager - The project manager responsible for the constructability program should work with the project constructability coordinator on the program’s progress and effectiveness. The project manager is responsible for ensuring that qualified field personnel are made part of the constructability team. The project manager assists the constructability coordinator in identifying and securing various ad hoc constructability specialists as needed.

o

Project Constructability Coordinator - The constructability coordinator interfaces with the project team and is the focal point for overseeing and coordinating the project effort on a fulltime or part-time basis. The constructability coordinator should consider mobilizing to the project’s design office during most of conceptual planning and design phases. The constructability coordinator can initiate: 

Team building



Integration of constructability into the project execution plan



Review of constructability lessons-learned file



Planning and scheduling of constructability studies



Orientation of the entire project team to constructability program



Sourcing input from Constructability Specialists and Consultants



Assurance of adequate consideration of constructability concepts



Maintenance of a constructability suggestion log Page 21 of 53

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

Evaluating and reporting on constructability progress



Solicitation of appropriate feedback



Forwarding of new lessons learned to corporate file.



Development and review of project specifications



Manage temporary and special assignments as necessary.

o

Core Constructability Team - The core constructability team consists of the project’s construction manager (from constructor’s organization), owner’s facility manager, and project design engineer as a minimum. These members are assigned to the constructability team during conceptual planning and continue through start-up. The core constructability team provides constructability input on a continual basis as appropriate. The core constructability team should be responsible for approval of constructability suggestions. Through the constructability coordinator, the core constructability team arranges participation of other constructability team members during appropriate phases of the project.

o

Constructability Team - The remainder of the constructability team is mobilized as required to provide input into areas requiring specific construction expertise. The individuals on the constructability team must possess strong communication and teamwork skills in addition to their technical expertise.

o

Ad Hoc Specialists - Various specialists, as identified in Figure 3.4 (Project Organization Chart), participate in the constructability effort on an as-needed basis. These specialists may be assigned to the project or secured from other source as necessary. The constructability coordinator and core constructability team members can share in deciding whether particular specialists are needed at specific points in the facility delivery process.

Define specific constructability procedures. A concise, written set of constructability procedures is crucial to the success of the constructability team. Samples of procedural statements are provided below. o

The constructability program will be based on a forward-looking, integrated planning philosophy rather than a backward-looking “review” of completed design. This will minimize design rework and result in higher quality design.

o

The constructability effort will begin during the conceptual planning phase and continue through the design, procurement, construction, and start-up phases.

o

Orientation to constructability will be conducted internally within the project. An orientation session will be given to members of the constructability team. The project manager and constructability coordinator will discuss the application of constructability to the project, review the project constructability policy, define specific roles of each constructability team member, and review the constructability concepts for application on the project.

o

The constructability team will jointly develop a schedule showing the necessary timing for the various constructability studies and design inputs. The schedule must allow for adequate timing of constructability input so design rework is not necessary.

o

The constructability coordinator will interface with the project team and be the focal point for overseeing and coordinating the constructability effort.

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o

The constructability team will convene on a regular basis to discuss constructability concepts, share lessons learned from the database, and provide constructability input to designs.

o

Particular reliance will be placed on ad hoc project team members to provide constructability expertise when a specialty area is being considered. Procurement specialists will be included frequently since they have current specific knowledge of vendors.

o

As potential constructability items are identified for consideration, suggestion forms shall be received and logged in by the constructability coordinator who will coordinate technical, schedule, and cost evaluations.

o

Most trade-off analyses and comparisons will be based on the order-of magnitude cost and schedule knowledge of the participants involved. This saves time and accelerates decisions. Professional estimating and schedule support may, however, be necessary for complex analyses. When necessary, constructability benefit will be ascertained using cost-estimating and scheduling services provided by the manager of controls.

o

The constructability coordinator will monitor and periodically report on progress of the constructability program.

o

At the appropriate time prior to release of a design package, the constructability team may perform a final constructability review to check for completeness and accuracy of design details. This review is not intended as an opportunity to modify the design, rather it will be a final check that approved concepts have been incorporated. Therefore, this final check is not expected to result in major design rework or changes in scope.

o

During the construction phase, an active dialogue with the contractor(s) is maintained to evaluate the constructability items implemented and account for areas of possible improvement for future projects. These lessons learned will be incorporated into the constructability database. To ensure continual improvement, it is essential that opportunities missed be captured along with good ideas implemented.

o

At the conclusion of the project, the constructability team will jointly and objectively assess the constructability performance and focus on areas of improvement.

Integrate constructability into project activities. Project activities need to allow for integrating construction knowledge and experience throughout design, procurement, construction, and start-up phases. Constructability teams need to use a structured means to integrate constructability knowledge rather than rely on an ad hoc method. It is the responsibility of the Constructability Coordinator to assist in the integration of constructability concepts into the overall project flow, from design through procurement, construction and hand-over. The Constructability Plan, with its outlines and procedures, is the primary vehicle to guide this process. Another method includes using a flowchart to identify the constructability process as it relates to the constructability team. Such a flowchart should designate responsibility for specific constructability activities to specific constructability team members. The link between “what,” “when,” and “who” concerning constructability can be established by including the flowchart activities as part of the project schedule.

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Section 3.3 Implement Constructability With adequate constructability planning, the sharing of constructability ideas should be integral with the constructability team’s design, construction, and start-up responsibilities. The milestone that calls for implementing constructability is shown in Figure 3-4. This milestone consists of three steps: 

Apply constructability concepts and procedures.



Monitor and evaluate project program effectiveness.



Document lessons learned.

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Apply Constructability Concepts and Procedures

Monitor and Evaluate Project Program Effectiveness

Maintain Records through Project Closeout per SAEP-329

o o

Apply constructability concepts. Execute constructability program procedures.

o o o

Maintain records of constructability ideas. Evaluate and report on program’s progress. Take corrective actions as required.

o o o

Handover procedures Constructability Summary Reports Project Close-Out actions and responsibilities

Figure 3-4 Steps to Implement Constructability on Project

Apply Constructability Concepts and Procedures Apply Constructability Concepts. Constructability concepts are lessons learned from past projects that have widespread application and have therefore become formal within an organization. Organizations are encouraged to develop specific concepts based on their own lessons learned. One method to stimulate the application of the constructability concepts is to include them as part of the project’s constructability manual. Project-level constructability manuals typically contain checklists of constructability concepts arranged by planning activities or design disciplines. Checklists may be used as a stimulus for early discussion between construction and design personnel but should not serve as a surrogate for construction input during planning and design. Lessons learned can be used as a tool to stimulate discussions between discipline leads, the constructability coordinator, and construction superintendents prior to starting detailed design

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activities. This is a powerful means by which to facilitate communication between design and construction personnel. Execute Constructability Program Procedures. Constructability team members should be aware of their responsibilities for providing constructability input and following constructability procedures as soon as the team is assembled. The constructability procedures are a series of detailed actions that must be performed. These actions are specified through detailed design. Constructability feedback should continue until the project close-out meeting is conducted. The constructability coordinator should monitor the implementation of constructability procedures and take corrective action if necessary.

Monitor and Evaluate Project Program Effectiveness Maintain records of Constructability ideas. The constructability coordinator should maintain a Log recording pertinent information regarding constructability suggestions and studies. The format for the suggestion form may vary according to specific project requirements. The constructability coordinator should coordinate the necessary cost and schedule estimating for the constructability suggestions. The constructability coordinator can also act as the liaison to the corporate lessons learned database. Evaluate and report on program’s progress. Tangible benefits, be they financial, schedule, quality, safety, or operational, should be made available through quarterly reports outlining the progress of the constructability program and how it is impacting the project’s objectives. The quarterly reports should also include an evaluation on the progress of the program. Note also that these reports should not confine themselves solely to a narrow range of Constructability related activities, but should reflect a broader range of project elements impacted by the program overall. Examples could include evaluations of new technologies, recommendations for changes to existing standards, team performance metrics and a summary of overall program progress and performance. Take corrective action as required. Feedback on the constructability program needs to be received during construction and at the conclusion of the project. During construction, it is important to obtain an objective assessment of the design documents from contractors and subcontractors. Specific lessons learned should be documented during both design and construction rather than at the end of the project. Their assessment can be added to the lessons learned database for use on future projects.

Maintain Records through Project Close-Out In order to pass on the benefits realized through the application of a Constructability Program, three elements must be incorporated into the process:   

The Constructability Plan should be administered as a “living document” in the sense that it should remain operational throughout the project life-cycle to Project Close-Out. The Constructability Plan must include well defined procedures to ensure the hand over of program data and procedures as the project transitions to each subsequent phase. A well-designed Constructability Program should serve as both a vehicle and a data archive for critical information required for Project Close-Out reports.

It is also important to note that several of the procedures outlined for obtaining constructability input (Lessons Learned and Checklist Reviews) are repeated in subsequent project phases as the project Page 26 of 53

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and project team evolves. Maintaining records of these activities helps to ensure continuity and avoid unnecessary repetition of tasks. The Constructability Coordinator is responsible for ensuring an orderly handover of records and procedures, as well as for addressing the training and orientation needs of new team members as they are brought on board. He is also responsible for the preparation of detailed summary reports at the end of each project phase and upon completion of the project. Source data for the summary reports can be extracted from the Constructability Log, the Program Quarterly Reports, Change Order Logs and internal records. A recommended list of items for inclusion in the summary is as follows:

Constructability Program Summary 1. Lessons Learned Data 1.1. Lessons Reviewed and status of each 1.2. Lessons Implemented and documented results 1.3. Lessons developed and submitted for database with results 1.4. Results for accepted items should include cost/schedule benefit estimates etc. 2. Checklist Data 2.1. Summary of Checklist Review 2.2. Checklist items identified for further action and documented results 2.3. Additional checklist items submitted by team members with documented results 2.4. Results for accepted items should include cost/schedule benefit estimates etc. 3. Suggestion Form Program Data 3.1. Summary of Suggestion Form Program (No. of submissions. Accepted/Rejected) 3.2. Employee suggestions accepted for further action with documented results 3.3. Results for accepted items should include cost/schedule benefit estimates etc 4. Change Order Data 4.1. Detailed accounting of all change order activity with verbal summary and costing data. Including supporting calculations. 4.2. Individual Change Order entries should provide sufficient descriptive data to enable subsequent root-cause analysis and evaluations after the fact. 5. Budgetary Data 5.1. Costs to implement and maintain the Constructability Program 5.2. Detailed accounting of man-hours, training, and travel expenses, etcetera. 5.3. Summarize Benefits realized versus Program Cost data. The above data and records should be maintained in an electronic format that is readily accessible by common workstation applications such as MS Word, Access, and Excel etcetera. Such records should be updated and maintained at regular intervals as an integral part of the ongoing Constructability Program. These records are also to be utilized and handed over as part of the regular Project Close-Out Report per SAEP-329.

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Section 4 Summary and Conclusions This document presents a model implementation procedure for use in developing a formal projectlevel Constructability Program. The major critical milestones in the constructability process described include:   

Obtaining Constructability Capabilities Planning Constructability Implementation Implementing Constructability

Each of these critical milestones includes numerous sequential steps. Likewise, each step in the model includes numerous constructability activities. These procedures are intended primarily to

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assist Saudi Aramco Project Management personnel in the implementation of a Project-Level Constructability Program. Many of the procedures, however, are general enough for adoption by construction management firms, designers and contractors alike. Without formal constructability programs, project managers will usually have difficulty:   

Consistently applying constructability concepts on projects Estimating the cost effectiveness of early involvement of construction personnel Generating, storing, and efficiently retrieving constructability lessons learned from previous projects Creating a team environment between designers and contractors

Many project managers that do not apply formal constructability programs on projects are unaware of the potential savings that are being lost by unnecessary redesign, reduced quality, lower construction productivity, and increased schedule durations. A more formal project level constructability program can enhance a project’s constructability for several reasons. First, increased construction knowledge is available earlier in the project, when the ability to influence costs is higher. Second, enhanced teamwork and communication leads to more cost effective construction on projects. Third, more effective sharing of lessons learned occurs between projects. Fourth, contractors can use the constructability savings generated as a marketing tool to receive additional construction contracts from owners. Finally, formal constructability programs provide a means to monitor and evaluate the progress of the constructability improvements.

Section 5 RECOMMENDATIONS Organizations should first assess their current constructability approach to determine the best means for constructability improvement. Many organizations have the perception that they are already effectively incorporating construction knowledge and experience into planning and design. An organization's self-assessment can identify areas for improvement. Assessment should include evaluating:     

In-house constructability resources Sources of constructability input Percentage of constructability input Implications of contract strategies used Contractor feedback Page 29 of 53

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

Project performance (i.e., scope changes, design errors, field engineering, labor productivity, accident incident rate, among others)

As a result of self assessment, an organization should be able to identify areas of weakness in its current facility delivery process and opportunities for improvement through the implementation of a formal Constructability Program. Organizations should take a proactive approach to constructability on projects. The use of constructability reviews should only be a small part of a constructability program. When constructability reviews are used as the primary means to obtain constructability input, the following undesirable effects may result:  

Designers may become defensive Contractors may be reluctant to offer suggestions.

Proactive constructability programs are more likely to involve construction personnel when the ability to influence costs is greater (i.e., during conceptual planning). Organizations that have not implemented a formal constructability program, should consider using a project-level constructability program as a "pilot." The model implementation procedures provided in this document were developed for application on such a pilot project. Management personnel may doubt that the benefits of constructability will outweigh the constructability resources expended during planning and design. By testing the pilot project-level program, the organization can identify whether a corporate-level constructability program is feasible.

Glossary of Terms 3D CAD - Computer aided drafting system that provides three-dimensional views for checking physical interferences in addition to providing two- and three-dimensional drafting capabilities. Architect/Engineer (A/E) - The organization that generally has responsibility for a project’s detailed design/engineering. They may have additional responsibility including overall project cost, scheduling, procurement, and construction or construction management. Commissioning - The testing of a plant’s system with test medium in the lines. After commissioning the plant is ready for introduction of feed-stocks and other normal operating liquids and gasses in the lines. Conceptual Planning Phase - The stage of a project during which the scope and definition of the project are developed. In general, this phase includes site selection, facility layout, overall project

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planning schedule, cost feasibility, and a detailed definition of design and construction guidelines for the project. The phase completes with the commencement of detailed design. Conceptual Project Layout - Preliminary plans for location of both permanent and temporary facilities that should include consideration of site accessibility, lay down areas, and surface runoff/drainage plans as well as an economic evaluation of the facilities’ layout. Constructability - The optimum use of construction knowledge and experience in planning, design/engineering, procurement, and field operations to achieve overall project objectives. Constructability Consultant - A firm or individual, other than the architect/engineer or constructor, contracted by the owner to provide construction knowledge and experience during planning, design, and procurement activities. Constructability Coordinator - The individual designated to oversee and facilitate implementing the constructability program at the project level. Typical responsibilities include: arranging meetings, soliciting constructability comments from field personnel, maintaining a lessons learned file, and tracking the savings attributable to the constructability program if required. Constructability Review - An ongoing review process of design documents concurrent with design activities. This review process is different from post-facto design reviews. Construction Feedback - The process in which results of specific actions performed in the field are systematically reported to the owner and/or architect/engineer to improve the constructability of current or future projects. Construction Management Activities - Managerial responsibilities for successful project completion including cost and schedule estimation, contract administration, coordination and conflict resolution among project team, and construction monitoring and control. Constructability is often considered a subset of construction management activities. Construction Sensitive (backward-pass) Scheduling - A practice of scheduling that fixes an end date for construction and proceeds sequentially backward to determine the available duration of each activity prior to completion of construction. This procedure frequently allows the construction schedule to dictate the design and procurement schedules. Constructor or Contractor - The organization contractually responsible for construction of the facility. Contract Clause - Any method by which contracting parties obtain constructability expertise. Such methods include requests for proposals (RFP’s) and replies to RFP’s, as well as references made to constructability in the contract documents. Contractor Evaluation - The process of screening contractors by the project owner, according to a given set of criteria, in order to determine their competence to perform the work if awarded the contract. The organizations’ constructability programs or accomplishments may be a factor that is considered in this evaluation. Cost of Constructability Input - Cost of all activities related to constructability effort such as salaries of constructability personnel (e.g., constructability coordinator and other participants), out-of-town living expenses required for early involvement, and other costs required to support the constructability program.

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Crafts (Trades) - Construction workers segregated by vocational skills, i.e., pipe-fitter, steelworker, and others. Critical Path Method (CPM) - A planning and scheduling technique using construction activity durations and their precedent relationships to determine those activities affecting the total project duration. Detailed Design Phase - Actual design and development of construction plans and specifications. Disciplines - Design groups classified by type of work, i.e., civil, structural, mechanical, electrical, piping, and instrumentation. Documented Savings - Savings are estimated by comparing, in dollars, constructability ideas identified with traditional methods normally used. An order of magnitude estimate may be used to determine the amount of savings. Effort Expended on Constructability - Total number of hours expended on constructability effort. Based upon project participants’ estimates of time expended on activities related to constructability. These estimates can include a portion of time a participant expended on constructability in addition to other duties assigned (e.g., 500 hours @ 50% = 250 hours). Engineering - Procurement - Construction (EPC) - A contract arrangement where an owner hires an engineer/constructor firm to completely design and build a facility. Execution Phase - The stage of a project during which both design/engineering, procurement, and construction are accomplished. Executive Sponsor - An executive senior to construction and engineering managers who actively sponsors, promotes, and oversees constructability implementation. Fast Track - Project execution strategy whereby design and construction activities are performed concurrently. Formal Constructability Program - A constructability program for use during project planning, design, procurement and field activities that includes written guidelines, designated implementors, and feedback mechanisms to facilitate improvement of program. Lessons Learned Database - An organized collection of design and construction knowledge and experiences gained from past projects that is kept current and readily accessible for incorporation into the constructability program. Maintainability - The optimum use of facility maintenance knowledge and experience in the design/engineering of a facility that meets project objectives. Modularization - Partitioning of a facility into modules that are assembled at a remote location and transported to the site as a unit to be integrated into the final constructed facility. Operability - The optimum use of operating knowledge and experience in the design/ engineering of a facility that meets the project objectives. Operating Factor - The ease of operation of a facility in terms of efficiency measured as a percent of operating time. Such factors are generally stated as project objectives and are evaluated in terms of functional requirements of the facility.

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Optional Preassembly - Economic choice constructor makes to preassemble certain components originally designed for field assembly. Optional Prefabrication - Economic choice constructor makes to prefabricate certain components originally designed for field fabrication. Outage - Time or occurrence when a facility is not in service. Owner - The organization providing the project’s funding, need, and final approval and acceptance. Owner-Builder - A contract arrangement where the owner assumes the risk in constructing the facility. The owner usually has in-house construction personnel either perform or manage the construction of the new facility. Partnering Program - A program through which owners, design professionals, constructors, and suppliers focus on developing a contract administration relationship that creates a project team of “stakeholders” united by a common mission and objective. Thus, communication is enhanced and adversarial relationships eliminated. The relationship may be either on a long-term or project by project basis. Post Facto Design Review - A scheduled activity when construction personnel review and comment on completed or partially completed products from design. This type of post facto review includes checks for ambiguities, accessibility, standardization of components, and required methods of construction. Preassembly - A process by which various materials, prefabricated components, and/or equipment are joined together at a remote location for subsequent installation as a subunit to a facility. Pre-Detailed Design Phase - Activities performed prior to detailed design. Example activities include: (1) conceptual planning, (2) process design, (3) preliminary engineering, (4) conceptual design, (5) pre-schematic design, (6) schematic design, and (7) design development sub-phases. Prefabrication - A manufacturing process, generally taken place at a specialized shop where various materials are joined to form a component part of a final installation (e.g., pre-cast concrete, switch gears, manifold valves). Procurement - The process of bidding, evaluating, and purchasing the services, equipment, and material necessary to complete a project. Depending on the contract arrangement, the project’s owner, architect/engineer, or constructor may be responsible for procurement activities. Professional Construction Manager - An organization with construction knowledge that provides specific services to the owner. These services include raising constructability issues, assisting in contract document development, preparing schedules, acting as coordinating consultant to owner procurement activities, and managing construction contracts. Project Execution Plan - An integrated and coordinated program for completing all project activities and achieving all project objectives. In order to be effective, such a plan should be prepared by the owner or their representative during the conceptual planning phase of the project. Project Manager - The person from either the owner’s or the contractor’s organization having the authority and responsibility for overall project execution.

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Retrofit (Remodel) - A project that involves additions or modifications to existing facilities. Rework - Effort expended to redesign or reconstruct portions of project due to scope change, design error, and/or field error. Shutdown - A planned or accidental stoppage in operations of a facility. Start of Constructability Input - Consists of two parts: (1) the phase in which the constructability program began and (2) percent of phase complete at start of constructability input. Start-up - The initial addition of feedstock and operation of a complete stage of the plant. Standardization - The attempt to design elements of a facility in a consistent manner in such a way to promote repetition, increase productivity, and reduce field errors. Subcontractor - A specialized contractor that performs a well-defined task that is a portion of the prime contractor’s responsibilities as specified under contract with the prime contractor. Tolerance - The range of variation permitted in a specified dimension or location without impacting structural integrity, operating capability, or abutting components. Traditional Arrangement - A contractual arrangement where the owner has separate contracts with the design/engineering firms and the constructors. Generally, the construction work is competitively bid after the design documents clearly define the scope. Turnaround - Term used in the process and manufacturing industries for a planned shutdown of an existing facility to perform testing, repair, and/or replacement of facility components, or to add new components. Turnkey - A project arrangement where a single organization performs the engineering, procurement, and construction (EPC). Turnover - The point in time when the owner accepts care, custody and control of a system or combination of systems. Value Engineering - A branch of engineering whose objective is to effect economy in the cost of constructing a project. Evaluating any object’s function and bettering the object in terms of cost measured in dollars and fulfilling functional objectives. Vendor - An individual or organization that furnishes materials, supplies, and/or fabricated equipment. Vendors can both design and fabricate such items. Work Packaging - Logical, well-defined division of construction tasks based on construction specialty, location within the project site, ease of contract administration, and “bidability” of contracts.

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LA B O R A N D /O R E Q U IP M E N T

TO TAL M A T E R IA LS

RATE

AMO UNT

TO TAL LA B O R

A N T IC IP A T ED S A V IN G S

T O T A L M A T E R IA LS TO TA L LA B O R

(LE S S ) T O T A L E S T IM A T E D C O S T O F IM P LE M E N T A T IO N

IM P LE M E N T A IO N C O S T S

-(

)

N ET S A V IN G S IM P A C T T O :

%

E S TIM A TED V A LU E

STATUS

Y /N

S IG N A T U R E A N D /O R D A T E

C O ST

R E JE C T E D

S C H ED U LE

APPRO VED

Q U A LIT Y

EN T ER ED IN LO G ?

S A FETY

P R O C ED U R E R EQ U IR ED ?

PREPARED BY

D E S IG N /E N G IN E E R IN G

P R O C ED U R E P R EP AR ED ?

D ATE

R E W O R K R ED U C T IO N

IM P LE M EN T ED

D ATE

S T A N D A R D R E V IS IO N

C O M PLETED

D ATE

PRO C UREMENT

S U B M IT FO R LLC ?

D ATE

O THER

A C C EPTED FO R LLC ?

D ATE

P M S IG N A TU R E D ATE

B E L O W ~ B R IE F L Y S U M M A R IZ E A N D Q U A N T IF Y A N T IC IP A T E D B E N E F IT S O F P R O P O S E D IM P R O V E M E N T IF O T H E R T H A N C O S T - B A S E D

Page 36 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

Page 37 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

CONSTRUCTABILITY PROGRAM QUARTERLY REPORT PROJECT TITLE:_________________________ BI NUMBER:_________________________ DATE:_________________________ To:

Executive Sponsor for Constructability

(Project Manager)

From:

The (Project Title) Project identified and approved the following major constructability applications during the period (Date) to (Date). Description

Estimated Savings

Schedule Savings

$ (Total estimated savings for each application including impacts on Engineering, Procurement, etc.)

(Weeks)

Period Savings

$ (Period Total)

(Weeks)

Previous Total Savings

$ (Prior Total)

(Weeks)

Total Savings to Date

$ (Total to Date)

(Weeks)

1. 2. 3. 4. 5.

Estimated cost of the Constructability Team to date is $ (Cost). The Current Savings-to-Cost Ratio is (xx)/1.

(If desired, the Project Manager may add a paragraph to discuss constructability related matters.)

____________________________ (Project Manager) Project Distribution:

(Appropriate Distribution) Page 38 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM B e g in C o n s t r u c t a b ilit y P ro g ra m

U p d a te C o n s t r u c t a b i l it y Logbook

C C t o a s s is t P M w i t h C o n t ra c t i n g S t ra t e g y S e l e c t i o n P g 1 0 , 1 1

Pg 7,16

Pg 8

Pg 8

Pg 10

Pg 9

Pg 6,16

A s s ig n C o n s t ru c t a b i li t y C o o r d i n a t o r (C C )

D e f in e C o n s t r u c t a b il it y O b je c t i v e s a n d M e a s u re s

D e t e rm i n e L e v e l o f F o rm a l i t y o f P ro g ra m

I d e n t i f y In -H o u s e C o n s t ru c t a b i li t y R e s o u rc e s

C C & P M t o d e v e lo p C o n s t ru c t a b i li t y Budget

S e le c t T e a m M e m b e rs p e r E s t a b l is h e d C ri t e r i a

C C D e v e lo p s C o n s t r u c t a b i l it y P la n a n d d i s t ri b u t e s t o Team Pg 17

C C t o a s s is t P M in d e v e l o p i n g a p la n f o r s e l e c t i o n o f C o n t r a c t o rs , V e n d o rs , C o n s u l t a n t s

S o l ic i t In p u t f ro m S p e c i a li s t s o r C o n s u lt a n t s a s r e q u ir e d

E v a lu a t e a n d R e p o rt o n P r o g ra m Pg 25 P ro g r e s s

IM P L E M E N T C O N S T R U C T A B IL IT Y PLA N Pg 24

D i s t ri b u t io n o f C o n s t r u c t a b i l it y C h e c k l is t s

R e v ie w o f L e s s o n s Le a rn e d

Pg 19

Pg 19

Im p le m e n t S u g g e s t i o n F o rm Pg 20 P ro g r a m

A

B

C

P g 16 -1 8

G ro u p R e v i e w o f P ro je c t S c o p e & C o n s t ru c t a b il it y O b je c t i v e s In c l u d i n g : Pg 18

S i te V is i ts B a r r ie r A s s e s s m e n t

T e a m R e v i e w o f C o n s t ru c t a b i l i t y P l a n P l a n O b je c t i v e s T ra i n i n g P l a n C h e c k l i s t P r o c e d u re s L e s s o n s L e a rn e d P r o c e d u re s S u g g e s t i o n F o r m P r o c e d u re s C o n s t ru c t a b i li t y R e v i e w P r o c e d u re s P g 16 -1 8

H o ld W e e k ly C o n s t r u c t a b i l it y M e e t in g s

A s s ig n R e s p o n s ib i l it y a n d D u e D a te s fo r Id e n t i f i e d It e m s

D

T a k e C o rr e c t i v e A c t io n s a s R e q u ir e d

Pg 22

C o n s t r u c t a b ilit y C h e c k lis t P la n

Le sso ns Le a rne d Im p le m e n t a t io n

S u g g e s t io n F o r m P la n

C o n s t r u c t a b ilit y R e v ie w P r o c e s s

F a m i l i a ri z e T e a m w it h C h e c k l is t & P ro c e d u re s

E n s u re A c c e s s t o SA PM T LL D a ta b a s e

F a m il i a ri z e T e a m w it h S u g g e s t io n F o rm P ro c e d u r e s

F a m i l i a ri z e T e a m w it h C - R e v ie w P ro c e s s & S c h e d u l e

D i s t ri b u t io n o f C h e c k l is t t o D i s c i p l in e L e a d s

F a m i li a ri z e T e a m w it h L e s s o n s L e a rn e d P r o c e d u re

O ri g i n a t o r F i l s o u t S u g g e s t io n F o r m a n d s u b m it s t o C C

C C t o e s t a b lis h R e v ie w S c h e d u le a n d O b je c t i v e s

In d i v i d u a l R e v i e w o f C h e c k l i s t It e m s

In d i v i d u a l R e v i e w o f L e s s o n s L e a rn e d

C C A sse sse s f e a s i b il i t y a n d e n t e r s in t o L o g b o o k

C - R e v ie w , t h e f o llo w in g m ile s t o n e s m u s t b e m e t :

D e l e t io n o f i n a p p l i c a b l e It e m s

F o rm a l L e s s o n s L e a rn e d I m p l e m e n t a t io n w i t h B e s t P ra c t i c e s G r o u p

C C t o d i s t ri b u t e c o p ie s f o r i n f o r m a t io n o r a c t i o n a s r e q u ir e d

A s s i g n R e s p o n s i b il i t y f o r A c t i o n It e m s w i t h D u e D a te s

I t e m i s ro u t e d t o e s t i m a t o r id e n t if ie d b y P M f o r C o s t A n a ly s i s

A s s i s t in P r e p a r a t i o n o f P ro je c t C l o s e O u t D o c u m e n t a t io n P g 2 6

P re p a r a t i o n o f C o n s t r u c t a b i l it y P ro g r a m S u m m a r y R e p o rt s

P ri o r t o t h e f i r s t

C o n s t ru c t a b i l i t y T e a m A s s e m b le d

Pg 25

M a n a g e P r o g ra m T u rn o v e r t o S u c c e s s iv e P h a s e s P g 2 6

P r o je c t C o m p le t io n

S e t M e e t in g S c h e d u le & R e v ie w A s s ig n e d T a s k s

D

S o li c i t F e e d b a c k o n P ro g r a m e f f e c t iv e n e s s P g 2 3 , 2 5

T e a m O r ie n t a t io n a n d T ra i n i n g E s t a b l i s h S c h e d u le a n d A s s ig n T a s k s f o r C - R e v ie w s P g 2 0

C

Pg 22

A s s is t i n d e v e lo p m e n t o f s p e c if ic C o n s t ru c t a b i l i t y P ro c e d u r e s Pg 22

D e v e lo p T u r n o v e r P la n & P ro ce d u re s fo r P r o je c t P h a s e H a n d o v e rs Pg 26

B

Pg 25

Pg 12,13

P la n t o i n t e g r a t e o t h e r B e s t P r a c t ic e s Pg 22 a n d S c h e d u le

A

A d d it io n o f n e w o r p ro je c t s p e c i f i c it e m s

G r o u p R e v ie w o f C h e c k l i s t It e m s

A s s i g n R e s p o n s i b il i t y f o r It e m A c t i o n w i t h D u e D a te s

P e ri o d i c P ro g re s s R e v i e w a t W e e k ly M e e t in g s

D o c u m e n t A c t io n s in C o n s t r u c t a b ilit y Log boo k

Pg 26 h t t p :// p s c d . d h a . a r a m c o . c o m . s a /d i v is i o n s / b p t /L L D P e ri o d i c P ro g re s s R e v i e w a t W e e k ly M e e t in g s

D o c u m e n t A c t io n s in C o n s t r u c t a b ilit y Logbook

F ig u re 5 -1

A cce p te d fo r Im p l e m e n t a t i o n ?

YES A c t io n R e s p o n s i b il i t y A s s ig n e d

Im p l e m e n t a t i o n P ro c e d u r e D e v e lo p e d

C o n s t ru c t a b i l i t y P l a n O p e r a t io n a l

NO

C h e c k l is t P r o c e d u re O p e ra t i o n a l

Le s so n s Le a rn e d Im p l e m e n t a t i o n C o m p le t e d

S u g g e s t io n F o r m P l a n O p e r a t io n a l

K n o w l e d g e a b le C o n s t ru c t i o n P e rs o n n e l a v a i l a b l e t o p a rt i c i p a t e i n C o n s t ru c t a b i li t y R e v i e w

S u g g e s t io n Im p l e m e n t e d

D o c u m e n t A c t io n s in C o n s t r u c t a b ilit y Log boo k

C C t o fa c ilit a t e R e v ie w a n d D o c u m e n t R e s u lt s

C o n s t ru c ta b ilit y P r o g ra m I m p le m e n ta tio n F lo w c h a rt Page 39 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

SAPMT DRAFT CONSTRUCTABILITY PLAN

Rev.

Date

Description

Prepared Checked Approved

Page 40 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

INDEX Section Page

Title

1.

INTRODUCTION

41

2.

OBJECTIVES

3.

REFERENCES 41

4.

DEFINITIONS AND ABBREVIATIONS41

41

4.1. Definitions 4.2. Abbreviations

41 42

5.

RESPONSIBILITIES

42

6.

IMPLEMENTATION CONCEPTS

7.

CONSTRUCTABILITY TEAM 44

8.

ORGANIZATION OF CONSTRUCTABILITY TEAM

9.

CONSTRUCTABILITY MEETINGS

46

10.

IMPLEMENTATION SCHEDULE

47

11.

MAJOR CONSTRUCTABILITY ACTIVITIES 48

43 44

11.1. Design Checklists 11.2. Constructability Suggestion Process 11.3. Constructability Status Meetings 11.4. Constructability Updates 12.

ADDITIONAL CONSTRUCTABILITY ACTIVITIES

48 48 48 48 48

12.1. Constructability Newsletter 12.2. Management Policy Statement 12.3. Training 12.4. Vendor/Subcontractor Workshops 13.

CONSTRUCTABILITY SUGGESTION PROCESS

14.

PROGRESS REPORTING

15.

ATTACHMENTS

49 49 49 49 49

51

51

Page 41 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

1.

INTRODUCTION

This document prescribes a procedure for constructability workshop in Contractor’s home office for the The CII (Construction Industry Institute) defines constructability as the optimum use of construction knowledge and experience in planning, design, procurement and field operations to achieve overall project objectives. One of the strengths of the Contractor’s corporate culture is that staffs in the construction division and the discipline groups have construction knowledge and experience in their respective fields. Utilizing this strength, Constructability is implemented as a team effort with the active supports of COMPANY on the understanding of a win-win relationship among COMPANY, CONTRACTOR, vendors, and subcontractors involved.

2.

OBJECTIVES The constructability objectives are to ensure safety, to take an active part in environmental concerns, to enhance quality (reliability, operability and maintainability), and to optimize overall schedule and costs by utilizing construction knowledge and experience in planning, design, procurement, and field operations. This procedure applies to all personnel involved in the Project with the intent that all engineering, procurement, and construction activities and all disciplines responsible for executing these activities will incorporate constructability to achieve overall project objectives.

3.

4.

REFERENCES o

CII SD-5 “Constructability Improvement during Engineering and Construction”

o

CII SD-6

“Control and Construction Project Scope”

DEFINITIONS AND ABBREVIATIONS

4.1. Definitions Constructability: “Constructability is the optimum use of construction knowledge and experience in planning, design, procurement, and field operations to achieve overall project objectives”. Page 42 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

Project Constructability Program : Collective name given to planning, execution and documentation of the project constructability efforts. Level 0 Suggestions: on cost or schedule

No additional approval required - No significant impact

Level 1 Suggestions: Engineering Approval - Involves change to engineering specification or design basis Level 2 Suggestions: Project Approval - Involves increased cost, menhours or schedule to implement General Comment regarding Level 0, 1, or 2 Suggestions: No constructability suggestion should be implemented if it increases total project cost or extends the schedule. Suggestions should only be considered that result in lower overall cost or shortened schedule. A suggestion could result in an increase in engineering hours but yields construction savings that more than offset the increase in engineering.

4.2. Abbreviations COMPANY

Project Owner

CONTRACTOR (SP) Engineering and/or Construction Agency

5.

CII

Construction Industry Institute

EP

Engineering and Procurement

PM

Project Manager

TM

Technical Manager

CTF

Constructability Team facilitator

PSL

Project Specialist Leader

RESPONSIBILITIES o

The PM will have overall responsibility for establishing and managing the constructability program and will issue the Project’s quarterly and final Constructability Reports.

o

The CTF is responsible for establishing a Project Specific Constructability Program and for supporting the PM in its implementation. The CTF will also prepare a quarterly evaluation of the effectiveness of the constructability program and the Final Constructability Report.

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

6.

o

PSL’s assigned from each discipline design group, shall be responsible for initiating and coordinating constructability suggestions from within their own discipline group and for ensuring that approved suggestions are implemented.

o

An Estimator shall be designated to participate in the Constructability Program on an “as required” basis to provide the order of magnitude estimates when necessary to evaluate the Constructability suggestions.

IMPLEMENTATION CONCEPTS Constructability shall be implemented in the following manners: o

Constructability shall be implemented at an early stage of the project execution and explored in the areas of project-specific requirements and conditions. Exploration of constructability items shall be exercised by CONTRACTOR and supported by COMPANY constructability actions.

o

The Constructability Committee shall be organized at an early stage of the project and shall establish objectives of the constructability exercise together with strategies for accomplishing them to aid all the members of the Project Team to understand the general project management expectations.

o

In line with the objectives and strategies, all the members of the Project Team shall strive to contribute and apply innovative ideas and methods to develop constructability items under the leadership of experienced construction staffs. CTF shall then list these items in an Action Plan and monitor the progress of their implementation into the project execution.

o

During the project execution, if innovative constructability benefits are discovered or the expected benefits are found not worth incorporating in the project execution, they shall be added or deleted to/from the Action Plan.

o

The Constructability Committee conducts periodic review and approval for various key milestone activities, i.e. plot plan review, HAZOP review, exercise Options, Schedule review, etc.

o

It has been proven that implementation of constructability will produce significant economic returns exceeding the cost of administering the constructability program. Therefore, the Constructability Team shall be accountable for the success of the program and shall do everything necessary to ensure adequate resources are provided for the constructability program implementation.

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

o

At the end of the Project execution, Lessons Learned reports are generated and incorporated in succeeding projects.

o

The goal is to optimize benefits to the entire project, not to a specific group or company. Trade-off among disciplinary groups may be required to achieve this goal.

o The flow of constructability implementation is shown in Attachment 2 7.

CONSTRUCTABILITY TEAM The CTF will be assigned to the Project within fifteen days after the effective date of the Contract. The CTF will be the focal point for the Constructability Program, will schedule related activities and will assist the PM on constructability implementation. All Project personnel will have a contribution to make based on their knowledge and past experience. However, a Constructability Team of key personnel will be established. Certain of these key personnel have responsibilities as outlined in this Procedure while others will serve only in an “ad hoc” or “as called upon” basis. Membership may change, but initially will include: o

Company Representative

o

Project Manager

o

Constructability Team Facilitator

o

Site Manager/Construction Manager

o

Technical Manager

o

Project Specialist Leaders

o

Project Control Manager

o

HSE Manager

o

Project Quality Assurance Manager

o

Project Commissioning Manager

Note:

It is anticipated that most constructability activities will involve only small portions of the above group at any one time.

8. ORGANIZATION OF CONSTRUCTABILITY TEAM The team shall be structured as follows: (1)

Constructability Sponsors The Constructability Sponsors shall be selected from COMPANY and CONTRACTOR and lead the Home Office Constructability Committee (HC Committee) assuming the following responsibilities:

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

(2)

o

Accountable for the success of the Constructability implementation and ensure that adequate resources are provided and that any barriers encountered during the Program implementation are removed.

o

Organize the HC Committee and assign to it key staff such as Engineering Manager, Procurement Manager, Construction Planning Manager, Administration Manager, Quality Assurance Manager, Project Control Manager, etc.

o

Supports the Constructability Program Manager’ implementation.

o

Make final decisions on issues raised by the HC Committee.

Home Office Constructability Committee (HC Committee) The HC Committee members shall be selected from COMPANY and CONTRACTOR and assume the following responsibilities: o

Establish objectives and develop strategies.

o

Evaluate and select constructability items.

o

Review constructability implementation progress and removing barriers that arise during the implementation.

coordinate

(3) Constructability Team facilitator (CTF) The CTF shall be assigned from CONTRACTOR and shall assume the following responsibilities: o

Assist the HC Committee in constructability implementation.

o

Compile and update Constructability Action Plan.

o

Report implementation progress and feedback from the Team to HC Committee

o

Inform implementation status on a monthly basis and convey HC Committee’s instruction to the Team.

o

Call for and participates in Constructability Review Meetings.

(4) Project Specialist leader (PSL) A PSL shall be appointed in each discipline to advocate the implementation of constructability objectives pertaining to that discipline. His responsibilities are as follows: o

Share the objectives and strategies.

o

Explains the objectives to the Project team and discusses with them how to achieve the objectives.

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

o

Implements items in the Action Plan concerning design, procurement and construction

o

Reports progress of the implementation to the CTF every month or as required.

o

Consult the CTF for coordination on constructability issues.

(5) Constructability Supporters All the members of the Project team are Constructability Supporters. Their duties are as follows: o

Understand the Program and contribute to achieving the targets.

o

The organization chart is as shown in the here enclosed as attachment 3.

9. CONSTRUCTABILITY MEETINGS The following meetings shall be held as required. (1) Constructability Kick-off Meeting The Constructability Kick-off Meeting shall be held at an early stage of the Project Planning phase. The Kick-off Meeting shall be attended by the HC Committee Members. The CTF shall conduct the Meeting using the teambuilding approach and brain storming techniques to stimulate new ideas on constructability. Following is the agenda for the Meeting: o

Objectives

o

Organization and schedule

o

Methods of constructability execution and evaluation

o

Targets of Achievement and Constructability ideas solicitation

o

Constructability inputs to participants to stimulate constructability ideas

The CTF shall finalize the organization and execution schedule consulting with the Project Sponsors prior to the Kick-off Meeting. Objectives and strategies established by the HC Committee shall be explained to the participants. Constructability ideas to be included in the Action Plan shall be discussed by the participants and recorded. Then the HC Committee shall sort the contributed ideas and then the CTF shall summarize them in the Constructability Action Plan. Apart from the Kick-off meeting, Constructability ideas will be welcomed any time during the Project execution and included in the Action Plan as applicable by CTF.

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

(2) Constructability Committee Meeting The CTF shall call meetings of the HC Committee as required to discuss the here below agenda and shall incorporate the meeting outputs in the Action Plan as applicable. o

Review constructability implementation targets.

implementation

status

and

forecast

o

Findings on implementation barriers and coordination of their removal.

o

Trade-off for effective implementation.

o

Review and evaluate of new constructability items.

(3) Constructability Review Meeting Constructability Review Meeting shall be held jointly by COMPANY, and CONTRACTOR. Review meetings, which shall be called for as required by the CTF, are envisaged for the following items: o

Plot Plan Review to check construction accesses, major equipment locations for rigging position, and to identify any constraints such as rigging obstacles, etc.

o

Underground Composite Drawing Review to check work sequence, plant accesses, and to identify any constraints, etc.

o

P & ID Review to participate and contribute construction knowledge as applicable.

o

Level 2 Schedule Review to check conformance with the construction requisites.

o

COMPANY exercised additional options.

(3a) As for the on-going constructability review, Contractor’s TM shall review all preliminary drawings in the aspect of the following: o

Consistency and standardization of drawings to make the construction work effective.

o

Special Notes on drawings to ensure clarity, constructability, deviation from the specification, etc.

o

Review to ensure accomplished.

field-testing

and

inspection

can

be

readily

TM shall inform CTF the items to be included in the Action Plan as a result of the reviews described above. 10.

IMPLEMENTATION SCHEDULE Constructability shall be implemented according to the following schedule: Activity

Timing

Page 48 of 53

SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

Home Office Constructability Implementation Procedure (1st Issue) Establish Constructability Committee Finalize Targets of Achievement Constructability Kick-off Meeting Issue Constructability Action Plan Follow-up and reporting to the HC Committee Constructability Committee Meeting Constructability Review Meeting 11.

1st month 1st month 1st month 1st month 2 to 5 months 2 to 5 months 2 to 5 months 2 to 5 months

MAJOR CONSTRUCTABILITY ACTIVITIES The Project Specific Constructability Program includes the following activities which will form the core of the Constructability effort:

11.1.

Design Checklists Open constructability sessions will be held for each discipline or special subject matter to review past experiences and Lessons Learned. These sessions will be attended by the PSL and others as deemed appropriate by the PM and CTF. As a result of each session, a design guideline checklist will be generated and distributed which will list the agreed constructability objectives (action items and suggestions) for that particular discipline or subject matter. The checklists will use a standard format for presentation.

11.2.

Constructability Suggestion Process This process is the vehicle for the collection and evaluation of suggestions. Constructability Item suggested (Attachment 4) will be made available to document individual ideas from Project personnel. The CTF will maintain a log to summarize the status of all suggestions, including cost and schedule impacts and to record the adoption or rejection of the suggestion.

11.3.

Constructability Status Meetings A regular scheduled meeting will be held to encourage communication between the Project team members and to provide feedback regarding constructability suggestions and action items. Attendance will include key members of the constructability team. Minutes of the meeting will be issued to the Project team.

11.4.

Constructability Updates Regular updates on the constructability process shall be provided in regular staff and engineering meetings, through inclusion of constructability monthly and quarterly written evaluation of the program.

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

12.

ADDITIONAL CONSTRUCTABILITY ACTIVITIES The Project Specific Constructability Program will also include additional activities to be performed, as determined by the Project Manager, and may include the following components:

12.1.1.

Constructability Newsletter A monthly newsletter or brief shall be prepared by the CTF and issued by the Project Manager to all Project personnel to provide a status of the program and to assist in the sharing of information.

12.1.2.

Management Policy Statement In order to improve Project-wide understanding of the aims of the Constructability Program and to confirm participation by all parties, a Policy Statement shall be prepared and distributed by the PM (Attachment 1).

12.2.

Training This will include awareness training of the Project team by the CTF as part of the team building process.

12.3.

Vendor/Subcontractor Workshops As the Project progresses, and major equipment suppliers and construction subcontractors are selected, their representatives will be asked to join constructability workshops to facilitate full implementation of the program. For key suppliers and subcontractors, constructability will be addressed during pre-award negotiations.

13.

CONSTRUCTABILITY SUGGESTION PROCESS Although the initiation of constructability suggestions is the responsibility of everyone on the Project team, the CTF will lead the effort. Drawings, specifications, Vendor data, material requisitions and conference notes will be reviewed for possible constructability suggestions. Suggestions may be related to, but not limited to, the following subjects: o

Process

o

Material Specifications

o

Plant Layout

o

Format and content of engineering deliverables

o

Communications

o

Design Standards and Details

o

Methods of Construction

o

Construction Safety

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SAPMT IMPLEMENTATION GUIDE PROJECT LEVEL CONSTRUCTABILITY PROGRAM

o

Plant Maintenance

o

Plant Operation Safety

o

Fabrication, shipment, storage and distribution of equipment and materials

o

Schedule Improvement

o

Cost Reduction

All constructability suggestions will be subject to the following review and approval cycle: a)

The originator of the constructability suggestion shall complete the first part of the Constructability Item suggested (Attachment 4) and submit it to the CTF for initial review and agreement on items to be included in Action Plan.

b)

The CTF shall update the master Constructability Suggestions Log and distribute copies of the suggestion for information as required.

c)

For Level 1 or 2 type suggestions (see Attachment 4) , the originator shall collect any backup data which is required (e.g. order of magnitude cost estimate and schedule impact from the Project Controls Group, engineering specification waivers, etc.,) and attach this to the constructability suggestion. The specified approvals shall be obtained before the suggestion is implemented.

d)

Original Constructability Item suggested, complete with backup data and approvals, shall be returned to the CTF for distribution and record purposes.

e)

The status of all open constructability suggestions shall be reviewed and required actions agreed to at the regular Constructability Review Meetings.

Constructability suggestions shall be controlled by the CTF who shall maintain a log showing the current and final status of all suggestions submitted. The log will include columns to indicate order of magnitude cost and/or schedule impact for each constructability suggestion. Saving assessment shall be provided by an estimator nominated by the PM. The PSL shall be responsible for ensuring that approved suggestions are incorporated into design and for advising originators of what actions will be taken as a result of their suggestion, including the reasons for any rejected suggestions. The Constructability Engineers shall review the design to confirm inclusion of approved constructability suggestions. The PSL shall maintain a Constructability Suggestion File for the discipline. The file shall contain all approved, rejected or pending suggestions and any supporting documents. The file will be available to CTF on as required bases. At the close of the Project, each discipline file shall be turned over to the CTF Page 51 of 53

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for preparation of a summary of constructability activities and lessons learned.

14. PROGRESS REPORTING CTF will monitor the constructability items implementation status and issue to the Constructability Committee a progress report by updating the Action plan on a monthly basis. He will issue constructability review meeting memorandums and other reports as requested by the Constructability Committee.

15. ATTACHMENTS Attachment 1: Constructability Management Policy Attachment 2:

Flow of Constructability Implementation

Attachment 3:

Constructability Organization Chart

ATTACHMENT 1 CONSTRUCTABILITY MANAGEMENT POLICY Constructability is the optimum use of construction knowledge and experience in planning, design, procurement and field operations to achieve overall Project objectives. This process is an essential element in Project planning and a major contributor to cost effectiveness in the execution of the job. The free exchange of ideas and experiences between the Client, Engineering, Procurement and Construction should start in the conceptual stage of every Project. This Project shall adopt constructability as an essential discipline in the work process, integrating Engineering, Procurement and Construction into all phases of the Project. The successful accomplishment of the work will require contributions from all members of the Project team. The Project objectives for constructability include safety, quality, productivity, schedule, budget, start up, operation, and technology transfer. Your support in this effort is essential. Project Manager Contractor

Company Representative Company

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ATTACHMENT 2 FLOW OF CONSTRUCTABILITY IMPLEMENTATION

ESTABLISHMENT OF OBJECTIVES AND STRATEGIES BY CONSTRUCTABILITY COMMITTEE

SUGGESTION OF IDEAS BY PSL’s

SUGGESTION OF IDEAS BY PEM AND CONSTRUCTION EXPERIENCED STAFF

CONSTRUCTABILITY REVIEW MEETING: PLOT PLAN P&D HAZOP REVIEW SCHEDULE REVIEW OTHER

REVIEW AND GENERATE ACTION PLAN BY CONSTRUCTABILITY COMMITTEE AND CTF

INSERTION OF IDEAS IN ACTION PLAN BY CTF

IMPLEMENTATION OF CONSTRUCTABILITY ITEMS BY PSL

MONITORING BY UPDATING ACTION PLAN BY CTF

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ATTACHMENT 3 CONSTRUCTABILITY ORGANIZATION FOR HOME HOFFICE

CONSTRUCTABILITY COMMITTEE Company/SP/PMs & Staff

SP CONSTRUCTABILITY TEAM FACILITATOR (CTF)

PROJECT SPECIALIST LEADERS (PSL)

(DISCIPLINE IN CHARGE) CIVIL PLOT BUILDING/HVAC EQUIPMENT PIPING ELECTRICAL INSTRUMENTATION INSULATION PAINTING TANKAGE QA/QC SAFETY

MANAGEMENT LEADERS

PROCUREMENT LOGISTIC COST CONTROL SCHEDULE

CONSTRUCTION PLANNING DIVISION

SITE OFFICE CONSTRUCTABILITY COORDINATOR

CONSTRUCTION PLANNERS

(IN CHARGE) CM

VENDORS (As Required)

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