Projects Management Services

Approach and Methodology 

We will prepare a Project Management Plan consists of the Project Execution Plans for Project Organization, Engineering, Supply Chain Management, Construction, Commissioning, Health and safety and Project Services.

The Project management plan focuses on successfully achieving project objectives with respect to the following:

· Health and safety management

· Environmental stewardship

· Quality management

· CUSTOMER satisfaction

· Performance of contract and project execution

· Implementation of project management systems

· Project cost control

· schedule delivery

· Risk minimization

· Engineering

· Procurement, materials management, and contracting

· Construction management assistance

· Commissioning

· Information management

· Human resource management

· Project closeout

 At the start of the project, We will focus on leadership, giving attention to the following critical factors when planning, implementing, and executing the project:

· Ensure that the terms and conditions of the contract, Our’s scope of work, and the project‑specific delivery objectives are clearly defined before planning the project and implementing the Project Management Plan. 

· Implement this CUSTOMER projects Project management plan immediately after the project is initiated and ensure that there is a clear communication plan.  Ensure that unique project-specific requirements are identified and documented on each project-specific drive. 

· Ensure that the project‑specific organization chart and contact list – including the Project Sponsor – is prepared and communicated, and CUSTOMER project duties and     job descriptions (roles and responsibilities) are properly communicated.

· Ensure that all key project staff knows what they are responsible for and understand what is expected regarding coordination and interfaces across all project components.

· Ensure that limits of authority and approval of project manager and senior project staff are clearly defined for the project.

· Ensure that the standard project control systems are in place and implemented, and that the CUSTOMER project Work breakdown structure and other required coding structures are set up to control the work activities consistent with the execution strategies and progress measurement parameters for this project.

· Ensure that the construction and commissioning methodology and strategy are identified as the key drivers for establishing engineering and procurement work plans and  schedules. Identify the use of any internal Construction Services as early in the project as practical.  Identifying a suitable contractor through the public tender process will impact project timing.

· Ensure that the Health and safety Execution Plan incorporates design, procurement, construction, and commissioning actions and activities.

We will provide the required services to CUSTOMER to achieve project goals and providing for safe, secure and environmentally compliant engineering, procurement, construction and commissioning. Given that engineering budgets for CUSTOMER projects may be tight, work on engineering, procurement, and construction activities should not start until a project‑approved coordinated work plan and schedule are in place. Engineering must focus on timeliness in the delivery of engineering work packages, and Procurement must focus on the delivery of equipment and materials to the construction work site (i.e. the material on-site “need dates” are critical) to ensure construction progress is not impaired in any way.

As part of our project execution methodology, we may need to conduct organizational development and productivity enhancement sessions, at project kick-off and at key points during implementation, to promote and strengthen the culture of one project/one team mindset.  They also serve to address “boundary issues” among project stakeholders, lessons learned, and other project-specific topics that require coordinated planning, sharing of knowledge and best practices.

We will hold procurement planning sessions with CUSTOMER to establish procurement strategy and execution protocols and methods.  These sessions, in conjunction with the contracting strategy, will provide the foundation for the supply chain management for the projects.  The plan should address the following issues:

· Scope and project options clarification to establish and clarify details pertaining to commercial and procurement-related activities

· Confirmation of procurement packages, including definition of supply, design-supply and design-supply-erect packages

· Items to be procured by the project, versus those to be supplied by installation contractors

· Freight forwarding, marshalling and site warehousing plans

· Vendor QA/QC and shop inspection plans

· Procurement through public tendering, tendering to pre-selected qualified vendors, CUSTOMER’s framework agreement with vendors, or sole sourcing

· Strategy to maximize benefits to Indigenous businesses.

To help the project teams function in a harmonized and coordinated way, We will held team-building activities will be implemented through facilitated workshops scheduled at suitable times during the project.  Facilitated alignment and team-building workshops will be conducted to enhance project interpersonal relationships, to promote effective and efficient communications, and to streamline work processes.

The Health and safety Execution Plan describes the management system deployed on the project and how this project intend to manage their Health and safety risks.  At the onset of a project, training needs will be identified and necessary Health and safety training will be provided to relevant personnel.

We will establish Health and safety performance objectives that define the goals and improvement activities to achieve continuous improvement in Health and safety performance.  Health and safety objectives are set on an annual basis, and consist of lagging indicators such as incident frequency targets and leading indicators.  Leading indicators are a set of Health and safety initiatives designed to improve Health and safety performance in a proactive way.  Performance against Health and safety objectives is monitored monthly and reported to CUSTOMER and management on a monthly basis.

CUSTOMER should measure the performance of our’s overall contract obligations based on the following key performance indicators (KPIs):

· Contract performance

· Project performance

· Relationship.

· Schedule performance (SPI)

· Cost performance (CPI)

· Accident frequency

· Environmental incident frequency

· Progress reporting

· Procurement progress.

The following list identifies key milestones that should be considered and possibly incorporated into each Project Schedule, depending on scope of the project.

Key Milestones for Consideration

Project Management

· Final Project Plan approval

· Project award

· Project mobilization, finalize project contact list and project organization chart

· Project kick-off meeting and project documentation review

· Project risk assessment and mitigation plan

· Final scope of work and services approval and buy-in

· Finalize project work breakdown structure and coding

· Final procurement and contract plan strategy agreement (purchases, supply/erect contracts, construction contracts and work packages)

· Acquire all permits for the project

· Initial “Decisions/Needs List” issued to CUSTOMER

· Issue approved Level 3 EPC Baseline Schedule

· Display agreed upon planned outages and project In-Service Date (ISD)

· Finalize and implement Project Control Systems

· Complete project closeout

             Health and safety

· Confirmation of performance objectives for Health and safety

· Issue Health and safety Plan and Health and safety procedures

· Issues Environmental Management Plan

· Joint Health and safety Executive Management Committee – first meeting

· Joint Project Health and safety Committee – first meeting

· Finalize and issue emergency response plan

· Awareness and training session – first formal initiative

· High level major hazard and risk assessment

Engineering

· Start engineering

· Finalize and obtain approval for basis of design and design criteria

· Complete and sign-off studies

· Receive major vendors’ initial critical engineering documentation (project-specific layouts and loadings)

· Geotechnical services

· Finalize preliminary engineering scope

· Design reviews (including safety by design review)

· Complete detailed engineering scope

· Complete issue for construction engineering scope

· Complete as-built documentation

· Complete engineering closeout

Supply Chain Management

· Obtain approval for procurement and contracting strategies and basic timings

· Major long-lead equipment purchase commitments, critical engineering and on-site delivery dates (ROS)

· Major bulk materials purchases and on-site delivery dates (ROS)

· Major contracts tender and award date, and on-site start and finish dates

Public Consultation

· Communications Plan (government relations, media relations, public relations, advertising, newsletters)

· Mitigation plans

Indigenous Relations

· Initial engagement and consultation (field studies, list of issues)

· Mitigation plans (mitigation agreements, capacity funding, indigenous Benefits Agreement)

Properties

· Right of Way (ROW) acquisition

· Property acquisition

Construction

· Site possession and mobilization

· Completion of site establishment (construction camp, offices, batch plant, etc.)

· Establish all key engineering and procurement interfaces with construction

· Initial construction permits (site clearance, foundations, etc.)

· Geotechnical work

· Start field construction

· Civil and structural work

· Power distribution and electrical work

· HVAC and fire protection work

· Control and Telecom work

· Overall installation completion date

· Start-up and In-Service Date (ISD)

· Project closeout

Testing and Commissioning

· Commissioning mobilization

· Start commissioning

· Final commissioning – agreed area by area inspection and acceptance sequence

· Sign-off project completion certificates

· Handover to Operations

Project Close-out

      · Project verification and archiving

                        · Native file and document turnover

The approach to manage the Budget:

The major aspects of cost management will include:

· Establishing a control baseline (budget)

· Monitoring and tracking (committed, incurred)

· Analyzing and forecasting (trending, forecasting)

· Reporting

· Participating in the potential mitigation process

· Contingency controls.

We will ensure that the project cost control system maintains: Appropriate coding structures, detailed cost control and forecasting capability and project accounting methods for the following cost types:

1) Original Budget Cost - The original budget is prepared by re-casting the cost data from the approved estimate.  The cost elements are coded and grouped to reflect the project execution strategy and loaded into the CUSTOMER cost tool cost system as the original budget.

2) Commitment Cost - Commitments are the value of awarded contracts, purchase orders, service agreements, or any other agreement.  They represent what the CUSTOMER and contractor or vendor has agreed or committed to, in terms of the goods and services that are to be provided.

The dollar value of commitments made during the project is defined as follows:

· For lump sum items, the committed value is the face value of the contract, including approved change orders.

· For unit price items, the committed value is the incurred cost of the item based on units completed.

· For cost reimbursable items, the committed value is the incurred cost of the item.

3) Incurred Cost - Incurred costs are the contractual value of work completed at a specific time that can be invoiced.  There is no consideration for cancellation costs if the project were to be cancelled. Incurred costs are evaluated relative to a status or cut-off date, which is consistent with status dates set for progress measurement.  Therefore, and for reasons of timeliness, it will be necessary to estimate a portion of the total cost incurred to match CUSTOMER’s period cut-off.

Various methods of incurring will be used depending on the commercial nature of the item.  These are generally categorized below and addressed in more detail in the cost control PIFs.

· Reimbursable Engineering, Procurement, and Project Management

· Procured Items

· Reimbursable Direct and Indirect Labour Costs

· Lump Sum Contracts

      · Owner’s Costs.

4) Invoices and Payments - Invoices received from service providers, material suppliers, and subcontractors. The process of invoicing and payments is managed by the Project Accounting Group but is often an integrated effort with the Cost Control Group, who can assist with validation and alignment with incurred.

Cost Forecasting

Going forward during the life of the project, additional factors may come into play such that the Forecast Final Cost (sometimes referred to as the Forecast at Completion) may either increase or decrease.  This is a very critical sequence of work and is one of the main functions for cost analysts.  Every effort must be made to ensure that it is performed diligently, on time, and with proper supporting file notations.

Forecasting of the project cost will be the result of monitoring work performed against the original budget, analyzing changes from the control base, and predicting to-go performance.  The forecasting process will incorporate the change management and trending process as well as the independent application of analytical techniques and tools.  As changes are identified through the analytical forecasting process, they will be input into the change management and trending processes.

A number of methods are available for producing project Forecast Final Cost.  The main methods will be adopted by us are as follows:

· Forecast Final Cost as supported by Trends in CUSTOMER cost tool

· Forecast Final Cost as supported by Forecast From Commitment in CUSTOMER cost tool

· Forecast Final Cost as supported by statistical analyses based on performance factors

· Forecast Final Cost based on revised detailed estimate.

Cost & Cash Flow Plan

Based on control budget, cost forecast, and project schedule, a cost flow plan will be developed and maintained.  The cost flow plan will be compared with actual incurred costs over time. A cash flow plan will also be developed to manage cash requirements.

Cost Reporting

CUSTOMER cost tool will be used for reporting, consolidating, analyzing, and forecasting all controlled project costs for the project(s), and will include:

· Original budget

· Current budget, including Project change notices

· Final forecast

· Committed and incurred data accumulated through the reporting cut-off date.

Management of Allowances & Contingency

Overall responsibility for contingency control will be with CUSTOMER upper management. Contingency will be reviewed periodically by evaluating each component of the cost forecast. CUSTOMER Management team and we will participate in the analysis.  The evaluation will identify areas of potential cost risk and assess the dollar magnitude of each.  As risks are eliminated or impacts realized during the course of the project, the values will be trended into or out of the budget/forecast and the contingency revised accordingly.

The approach to manage the schedule:

The overall planning and scheduling process can be represented in two major stages:

1.  Project planning and schedule development, resulting in the formation of a baseline schedule.

2.  Schedule management, monitoring, analysis, reporting, and mitigation, resulting in regular periodic schedule updates.

The planning process will use a top-down approach for schedule development and a bottom-up approach for schedule management.  The three levels of schedule hierarchy are outlined below.

Level 1 -  Management Summary Schedule : The Level 1 schedule provides a high-level management summary of the project.  It will represent all phases, major areas, and key project milestones. It has to be in sufficient detail for use by the Customer in negotiations with external parties such as Independent Power Producers, Indigenous & Community Relations, Government Bodies, etc.

In the case of the smaller Projects, where the project’s Implementation Phase is relatively short, the level 1 schedule prepared in the Studies phase for the initial Project Plan & funding approval needs to contain precise timing information both for capital cost estimating purposes and also for the required prompt follow on into the early critical path procurement & engineering activities.

Some examples of this are:

· Up-front lead-in of the formal Project Approval, clearance & release of the Project’s planning scope.

· Up-front lead-in of any required Properties Acquisition, Archaeological (PFR) Field Reconnaissance, Indigenous Relations or other necessary items affecting the  start of Project Implementation.

· Deadlines for long-lead equipment purchases, vendors’ information critical to design development, and deliveries on site. Agreed construction contracting strategy.

· Detail design outline times for the engineering disciplines involved – set to meet the issue for tender (IFT) & issue for construction (IFC) dates required by the construction work packages and/or contracts.

· Construction outline activities in basic main work packages, scheduled as much as possible in summer months and geared to completion by the mandated In Service Date.

· Clearly identified major critical paths running from the up-front activities through all the above to the final commissioning and ISD. A project close-out period is also included.

Level 2 – Project Master Schedule : The Level 2 schedule will be used by the project leadership team as a strategic management schedule.  It will represent major project components and their inter-relationships.  It will represent key control milestones that must be controlled via the trending process. 

In the case of the smaller Projects the level 2 will be a more detailed project team consensus-agreed development within the already established level 1 outlines, addressing in particular the early long-lead purchasing and detailed engineering for the disciplines involved. Engineering work packages (EWP’s) related to the Construction work packages (CWP’s) will be fully developed, and the necessary overall resources requirements firmly established.

LEVEL 2/3 DETAILED SCHEDULES - MILESTONES & KEY ACTIVITIES

PROJECT MANAGEMENT DELIVERABLES

PROJECT PLAN

QUALITY

CONSTRUCTION OUTLINE

CONSTRUCTION DETAILED ACTIVITIES

SUPPLY CHAIN MANAGEMENT

LONG LEAD PURCHASES

GENERAL PURCHASES, MATERIAL TAKE-OFFS, ETC

CONSTRUCTION CONTRACTS & WORK PACKAGES

PERMITTING

HEALTH, SAFETY

GEOTECHNICAL SERVICES

REVIEW EXISTING SITE INFORMATION

GEOTECH SAMPLING, TEST PITS, SEISMIC, GROUND WATER

GEOTECH REPORT, ONGOING SITE SERVICES

DETAIL DESIGN ENGINEERING

MAJOR DELIVERABLES & ENGINEERING WORK PACKAGES CIVIL DESIGN

MAJOR DELIVERABLES & ENGINEERING WORK PACKAGES STRUCTURAL & ARCHITECTURAL ) DESIGN

MAJOR DELIVERABLES & ENGINEERING WORK PACKAGES HVAC  DESIGN

MAJOR DELIVERABLES & ENGINEERING WORK PACKAGES ELECTRICAL  DESIGN

MAJOR DELIVERABLES & ENGINEERING WORK PACKAGES 

MAJOR PROJECT SUPPORT SERVICES

REGULATORY

FEDERAL

MUNICIPAL

PUBLIC CONSULTATION

COMMUNICATIONS PLAN

INDIGENOUS RELATIONS

INTEGRATED LAND MANAGEMENT BUREAU (ILMB) APPLICATION PROCESS

PROPERTIES

PROPERTY ACQUISITION

RIGHT OF WAY ACQUISITION

PLANNING

ASSET STRATEGY PLANNING

Level 3 – EPC Control Schedule : The Level 3 schedule is the detailed control schedule containing full Construction plan logic and resource loading.  The following are some key features of the Level 3 schedule:

· Represents the scope and execution strategies for EWPs, procurement and contract packages, off-site fabrication packages (modules), CWPs, and pre-commissioning & commissioning system packages.

· Presents a clear understanding of the project scope of work in alignment with the project coding structure.

· Is pivotal to creating and validating all other project schedules, and rolls up into Level 2 and Level 1.

· Shows control dates and interface milestones for special consultants and major contractors to provide clear linkage to their schedules.

· Contains an adequate number of activities with realistic activity durations to clearly show the sequence and logic in performing the project in a systematic manner.

· Defines the project critical paths and activity free and total floats.

· Is fully resource-loaded to validate work force and peak requirements and address forecast requirements; this will realize optimum resource and funding utilization.

· Is used to coordinate and control all activities on the project, and to perform critical path analyses and “what-if” schedules.

After being captured as a baseline, the schedule will be regularly updated, at least monthly, providing the basis for status reporting, change forecasting, and controlling the project(s).

Organization charts, office staffing plans and histograms, and site work force histograms will be developed in alignment with the original approved baseline.  These will be maintained and updated with actual data and forecast to complete.  Office staffing and site work force counts will be converted to equivalent hours by discipline and compared to the forecast hours to complete from the progress and performance reporting.  If the variance becomes too great, then a recovery plan will be generated.

These resource plans will be managed in alignment with the project-approved hours as trended.

The approach to manage the Reporting:

The responsibility for project reporting resides with us. 

We with the help of Project Controls Group will prepare Key Performance Indicators (KPIs) that will be presented at a simplified management level as well as in more detailed reporting.  These will be presented on a monthly basis, in both graphic and tabular format, and will be at an appropriate level of detail to capture a summary of the key aspects (i.e., areas, phases, organizations) of the project without being overwhelming in detail.  These KPIs and reporting will include the following:

Schedule

Project Control Milestones

• Current Forecast vs. Current Approved vs. Last Month vs. Baseline

• Number of Control Milestones with Current Forecast later than Last Month

• Number of Control Milestones with Current Forecast earlier than Last Month

Progress (% complete)

• Baseline vs. Actual vs. Forecast to Complete Cost

• Baseline vs. Current Budget vs. Forecast Final

• Cost Flow of Original Baseline vs. Actual vs. Forecast to Complete

Change Control & Trending

Number of Trend Alerts & Trends Raised, Approved, Pending Client Approval, In Preparation, Rejected, Cancelled

• To date and current month

EPCM Staffing

Baseline vs. Actual (equivalent) vs. Forecast to Complete

• Headcount

Unfilled positions

EPCM Hours

• Baseline vs. Current Budget vs. Earned vs. Actual vs. Forecast Final

• Engineering Performance Factor (earned/actual hours) vs. target of 1.0

Site Work Force

• Baseline vs. Actual (equivalent) vs. Forecast to Complete

• Directs and Indirects

Site Direct Hours

• Baseline vs. Current Budget vs. Earned vs. Actual vs. Forecast Final

• Construction Performance Factor (earned/actual hours) vs. target of 1.0

Key Engineering Deliverable Counts

• Baseline vs. Actual vs. Forecast to Complete

Off-Site Modules Counts

• Total Baseline, Total Current Forecast, Started, Completed/Shipped, Installed/Set

Key Quantity Status

• IFC vs. Purchased vs. Delivered vs. Installed

• Piles (each), Concrete (m3), Steel (tn), Major Equip Tags (each), Piping (lm), Cable (lm), Loops (each), ect..

Health and Safety Status

• Baseline vs. Actual vs. Forecast to Complete