SAEP-12 Project Execution Plan

Previous Issue: 31 August 2004 Next Planned Update: 19 June 2016

Revised paragraphs are indicated in the right margin

Page 1 of 28

Primary contact: Doiron Shannon Earl on 966-3-8735067

Engineering Procedure

SAEP-12

19 June 2011

Project Execution Plan

Document Responsibility: Project Management Office Department

Saudi Aramco DeskTop Standards

Table of Contents

1 Scope.............................................................

2 2 Applicable Documents.................................... 4

3 Instructions.....................................................

4 4

Responsibilities (17)

Exhibits............................................................... 19 Exhibit A - Table of Contents.............................. 19 Exhibit B - Approval Sheet.................................. 20 Exhibit C - Revision Control................................ 21 Exhibit D - Contracting Plan Matrix..................... 22 Exhibit E - Comparison of Various Contracting Alternatives............................... 23 Exhibit F - Project Milestone Schedule............... 24 Exhibit G.1 - SAPMT Organization (Typical Design Phase)................................ 25 Exhibit G.2 - SAPMT Organization (Typical Construction Phase)....................... 26 Exhibit H - Project Responsibility Matrix............. 27 Exhibit I - Value Practices

Optimum Implementation Timing (28)

Next Planned Update: 19 June 2016 Project Execution Plan

1 Scope

1.1 Definition

The Project Execution Plan (PEP) is a strategic planning document that defines

objectives, plans, requirements and related information necessary for optimum

project execution. It is a master reference guide that promotes common

understanding and alignment of all project participants. The PEP is prepared by

the Project Manager, with input from the Proponent and other Saudi Aramco

organizations that have key roles in a project's execution.

1.2 Purpose

The PEP serves as a communications and coordination tool that formally

establishes the Project Manager's front-end project planning, with emphasis on

identifying issues critical to project success and defining strategies to address

these issues. It is an agreement endorsed by the Saudi Aramco Project

Management Team (SAPMT), the Proponent, and Management defining the

execution of the project, including schedule, method(s) of executing the work

and the responsibilities of major participants. In one comprehensive document,

the PEP relates the approved project scope with contracting and material plans,

cost information, summary schedules, value practices implementation, risk

management, departmental responsibilities, and SAPMT staffing requirements.

The PEP is intended to provide strategic guidance to develop more detailed

tactical planning and execution tools as the project progresses.

1.3 Timing and Application

The PEP shall be issued in accordance with the timing outlined below, which is

designed to support the PEP's purpose of serving as a strategic planning tool:

?Abbreviated PEP is mandatory for all BI's

?Full PEP is mandatory for BI's

- over $50MM

- for ≤ $50MM, as recommended by the responsible Dep artment Manager ?PEPs are waived for Master Appropriation projects.

1.3.1 Abbreviated PEP

To be issued prior to release of Preliminary Engineering funds. When

requested, Project Management Office Department (PMOD)/ Project

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Execution Metrics Division (PEMD) shall participate and assist

SAPMT in the preparation of the PEP Level II Milestone Schedule.

The Abbreviated PEP is intended to provide a framework for

subsequent planning. It is not expected that every detail required by

SAEP-12 will be addressed at this time. As a minimum, the SAPMT

shall address the following items using the best information currently

available. It is understood that all sections are subject to further

development and change:

?Project Summary

?Contracting and Materials Procurement Strategy

?Organization Chart

?Milestone Schedule

?Value Improvement Practices

?Risk Management

?Contractor Saudization Plan

?Maximizing In-Kingdom Engineering, Procurement and

Construction Work

?Projects within Existing Facilities (Non-Grass Roots)

?Areas of Concern

The Abbreviated PEP will be the basis for development of the Full

PEP if one is to be prepared. The Abbreviated PEP shall be updated or

revised as required to reflect major changes in plans if a full PEP is not

required.

1.3.2 Full PEP

To be issued for approval by 30% preliminary engineering completion

or within 90 days of Project Proposal Start. SAPMT will report status

of PEP submittals in the PPU's comments section.

The PEP shall be updated as the need arises prior to implementing

major scope changes or significant changes in contracting plan, and at

other times deemed necessary by the PEP approval authority. SAPMT

may issue a completely revised document or an addendum covering the

changed section(s) only.

Next Planned Update: 19 June 2016 Project Execution Plan 2 Applicable Documents

The latest edition of the applicable reference documents shall be applied:

Saudi Aramco Engineering Procedures

SAEP-13Project Environmental Assessments

SAEP-14Project Proposal

SAEP-21Project Execution Requirements for Saudi Aramco

Royalty/Custody Metering Systems

SAEP-50Project Execution Requirements for Third Party

Royalty/Custody Metering Systems

SAEP-31Corporate Equipment and Spare Parts Data

Requirements

SAEP-125Preparation of Saudi Aramco Engineering Standards

SAEP-329Project Close-out Report

SAEP-367Value Improvement Practices Requirements

Saudi Aramco General Instructions

GI-0002.710Mechanical Completion and Performance Acceptance

of Facilities

GI-0400.001Quality Management Roles & Responsibilities

GI-0710.002Classification of Sensitive Documents

Saudi Aramco Cost and Scheduling Manual

Saudi Aramco Contracting Manual

Supply Chain Management Manual

Saudi Aramco Engineering Report

SAER-5437Guidelines for Conducting HAZOP Studies

3 Instructions

The PEP shall include the following sections:

3.1 Table of Contents, Approval Sheet and Revision Control

For format, see Exhibits A, B, and C.

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3.2 Project Summary

Provide a brief synopsis of the objectives, scope, and current progress status of

the Project. Incorporate into the Project Summary:

3.2.1 Project Purpose

Summarize the purpose of the project explaining why it is being done

(e.g., to increase production capacity of a plant by 100,000 barrels/day).

3.2.2 Design Basis

Provide a synopsis of how the project is to be accomplished (e.g., to

increase production by expanding existing facilities or by constructing

a new plant) by summarizing the project's basis of design as described

in the current scoping paper.

3.2.3 Project Scope

Briefly describe what is to be accomplished by the project, such as

project activities to be achieved, physical facilities to be built,

demolished, or revamped, etc. This information will be a summary of

the work described in the current Design Basis Scoping Paper and/or

Project Proposal scope of work.

3.2.4 Project Progress Status

Define where the project currently stands in the project life cycle, in

order to establish the information basis on which the PEP is being

prepared. Briefly identify the major ongoing activities and provide

current percent complete of project proposal, detailed engineering,

procurement, and construction, as applicable.

3.2.5 Project Location

PEP should state location of project and indicate whether offshore or

onshore.

3.2.6 Project Shutdown Requirements

PEP should identify shutdown requirements and if it is planned during

Plant T&I.

3.2.7 Related Projects

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3.3 Contracts

The contract development process is often intricate and interrelated and once

actions based on a particular strategy are initiated, it may not be practical or

all aspects of the work must be developed and presented by contract proponent

(SAPMT) to management at an early stage of every project.

3.3.1 Contracting Strategy

A Contracting Strategy document reflecting the SAPMT's initial view

any major changes (particularly related to OOK contracts, non-lump

Contracting Strategy is included for other organizations for

information purpose only. If a Full PEP is not prepared, the

Contracting Strategy (as applicable) shall be updated even if other

parts of the Abbreviated PEP are not.

The Contracting Strategy shall summarize the plans for developing and

procuring the necessary contracts for the project's major contracting

phases (i.e., Project Proposal, Detailed Design, Procurement and

Construction). Information shall be categorized by the major

contracting phases mentioned and include the following:

a) Type of Contract (Lump Sum Turnkey, Lump Sum, Lump Sum

Procure/Build, Reimbursable Cost, Unit Rate, etc.) and the

reasons for selection.

b) Procurement Method (Competitive Bid, Sole Source, etc.) and

reasons for selection and whether an existing General Bid Slate/

Screening List will be used.

c) Appropriate Project and Contracting Milestones, for example:

- Expenditure Request Approval (ERA)

- Prepare and Issue Bid Packages

- Contract Award

- Mechanical Completion

- On Stream

The Contacting Strategy shall include an exhibit illustrating the

contracting plan in matrix form (See Exhibit D).

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3.3.2 Contracting Plans

A Contracting Plan is required for each contract action (or related

contract actions) unless the requirement has been waived (in writing)

by the Contracting Representative. The Contracting Plan is the joint

responsibility of the Contracting Department and the contract

proponent (SAPMT). After approval by the Contract Signatory, the

For more detailed instructions, refer to the Saudi Aramco Contracting

Manual VII(1) - Contract Planning and VIII(24) - Contracting Plan

(Outline).

Prior to carrying out a detailed analysis as part of the Contract Plan,

potential contracting alternatives in the form of a summary level

schedule comparison shall be prepared (See Exhibit E).

For projects involving major LSTK contracts, the option of issuing the

bid package prior to ERA should be addressed. Analysis should

include estimated effects on schedule, cost, and other considerations

comparing the normal procedure of issuing bid package after ERA

with a proposed option of bidding prior to ERA. This analysis should

also include evaluation of the feasibility of using the LSTK bids in the

ER estimate.

3.4 Material Procurement Plan

The Material Procurement Plan addresses project material requirements, their

procurement and movement. It should define the proposed procurement and

traffic responsibilities of Saudi Aramco and the Contractor(s). SAPMT will

review proposed procurement actions with representatives of Material Supply.

This review shall involve, at a minimum, the project Liaison Coordinator of the

Projects Purchasing Division.

3.4.1 Critical and Long Lead-Time Material and Equipment

Prepare an itemized listing of material and equipment considered

critical and/or long lead items. Specific actions should be identified to

ensure that such items will arrive at the designated job site on or before

the required dates irrespective if handled by Saudi Aramco or by a

contractor. Examples of such actions include use of air freight,

dedicated trucks, premiums, penalty and incentives, identification,

prioritization, and close monitoring of critical material and its proper

ties to the construction schedule, SAPMT representative at vendor's

shop, expediting custom clearance, unloading and placing large

material on foundations rather than storing, etc.

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If procurement of major equipment and materials is on the critical path

of the project schedule, SAPMT shall consider various strategies to

reduce its impact to the project schedule. Such strategies may include

early Company procurement, early Company procurement and

assignment (“novation”), Company or Project Proposal Contractor

procurement of early vendor engineering (“beneficial engineering”),

and early engineering by vendors using time unit rates under the

Project Proposal Contractor's contract.

3.4.2 Other Material and Equipment

Designate responsibilities between Saudi Aramco and Contractors for

cost effective supply of materials and equipment to meet project

schedules.

The Material Procurement Plan requires addressing maximum cost-

effective usage of locally-manufactured materials, use of on-hand and

surplus material, material quantity concerns, standardization, and total

cost of ownership and takes into consideration the guidelines of

SAEP-125, Saudi Aramco Engineering Standards, and the Supply Chain

Management Manual. Furthermore, the plan should address the use of

existing corporate agreements; vendor selection criteria; material quality

concerns; documentation; expediting; inspection; packing and marking;

shipping, clearance and receiving; storing, issuing, staging, and the

return and disposal of excess project material and equipment.

3.4.3 Surplus 9COM Material and Equipment

Review Surplus 9COM (previously known as Direct Charge – DC)

material and equipment list that could be incorporated in the project's

design. Surplus 9COM material and equipment should be looked at in

the earliest stages of design so that it can be incorporated into the

design.

3.4.4 Excess 9CAT Materials

Review Excess 9CAT (previously known as Saudi Aramco Materials

System – SAMS) materials list of high-dollar-value items ($10,000 and

above) that could be incorporated in the project's design.

3.4.5 Heavy/Oversize Material or Equipment

Prepare a list of heavy/oversize material or equipment. Establish

responsibilities for heavy lift requirements. Heavy lift planning for

materials and equipment, and related requirements, will be coordinated

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with the Saudi Aramco Heavy Lift Group. Consult with the Materials

Traffic Department regarding proposed international shipping

arrangements and with the Transportation Department for in-Kingdom

movements of heavy/oversize material or equipment.

3.4.6 Start-up, Operating, and Capital Spares

Establish responsibilities and requirements for start-up, operating, and

capital spares procurement. Ensure compliance to requirements for

operating spare parts in accordance with SAEP-31, Corporate

Equipment and Spare Parts Data Requirements. Address the

disposition of contractor procured spares, if applicable.

3.4.7 Customs Duties

Address responsibility for payment of customs duties, based on the

most recent Government regulations including compliance with proper

customs exemption requirements if any.

3.4.8 Quality Assurance/Quality Control

Identify materials quality assurance and quality control planning

requirements. Address vendor inspection requirements and plans,

including identification of materials to be factory tested and

coordination with Saudi Aramco Vendor Inspection. For details, refer

to GI-0400.001Quality Management Roles & Responsibilities.

3.5 Pre-commissioning, Commissioning, and Startup Plan

Startup is defined as the transitional phase between facility construction

completion and on stream, including all activities that bridge these two phases

(i.e., pre-commissioning through performance acceptance). Overall project

success is strongly related to startup success, which depends heavily on the

degree and thoroughness of early startup planning. Saudi Aramco GI-0002.710,

Mechanical Completion and Performance Acceptance of Facilities, provide the

framework for startup planning. The Best Practices “Planning for Startup

Model” is a useful reference and provides tools designed to assist in developing

and implementing an early startup plan. In accordance with SAEP-367, Value

Improvement Practice Requirements procedure, 50% of the startup planning

effort should be completed by the end of Project Proposal phase. By the end of

detailed design the startup planning effort should be 80% complete.

The startup plan addresses the roles and responsibilities of key persons and

organizations, as well as the timing of startup planning and execution activities.

The startup plan shall address the following issues:

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3.5.1 Responsibilities and Timing

SAPMT in assistance with Proponent is responsible for developing

startup plans during design phases. SAPMT shall also ensure that

SAPMT and Proponent representative shall be assigned responsibility

for managing the planning of startup; specify when these assignments

will be made and what their startup planning responsibilities will

entail. Identify other key contributors to startup planning and

execution, including Inspection, Loss Prevention, contractors, vendors,

and others as required, and define their roles and responsibilities.

Provide estimated timing and duration of startup planning, pre-

commissioning, mechanical completion, and commissioning activities,

including operations and maintenance training required prior to startup.

3.5.2 Systems Turnover Sequence

Provide a conceptual plan of the breakdown of the facility into systems

and the sequence in which these systems will be checked out and

turned over to the Proponent. Address specific plans to implement

partial Mechanical Completions, if applicable.

3.5.3 Startup Execution Plan (SUEP) Preparation

The Startup Execution Plan (SUEP) is a planning document that

defines the objectives, plans, requirements, and related activities and

information necessary for a successful startup. It is a master reference

guide that promotes common understanding and alignment of all

project participants.

3.6 Project Cost

3.6.1 Project Funding

Describe Preliminary Engineering Funds requirements, Prior Approval

Expenditure Request (PAER) Funds requirements if applicable, and

plans for ER Estimate preparation. Also, describe the project budget

amount and provide a summary of its major elements of engineering,

material, and construction if available. Describe the basis of the

current estimate. Identify any critical cost items that will require

special attention to avoid cost overruns.

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3.6.2 Cost Control

Describe the strategies to be utilized to ensure effective cost control

and accurate cost reporting throughout the project life from

Preliminary Engineering Funds approval through project close-out.

Address the subjects of work breakdown structure, cost contingency

management, cost status reporting systems, and expenditure forecast

preparation. Identify any unique project characteristics that may

require deviations from standard Saudi Aramco cost control

procedures, and provide plans for handling such cases.

The project's work breakdown structure should be developed as a

unified system that supports integrated cost and schedule control.

3.7 Project Schedule

3.7.1 Project Plan

Describe the summary logic, interdependencies and contracting

strategy used to develop the Project Milestone Schedule. Identify

critical risk items, long lead equipment delivery durations and any

other factors that could result in potential schedule delays.

Provide Project Milestone Schedule (See Exhibit F) in bar chart format

summarizing major project activities, milestones, plant outages and

interfaces with other projects as applicable. The Project Milestone

Schedule shall include but not be limited to identify the following:

?Contract development and award milestone dates by packages.

?Value engineering studies dates

?Project proposal review and approval

?ER estimate preparation, review & approval dates

?Mobilization for engineering, procurement and construction dates

as applicable

?Detail engineering control points

?Long lead material procurement activities and durations including;

purchase requisitions, purchase orders, fabrication, ex-works and

site delivery dates.

?Interim construction milestones such as but not limited to;

discipline completion dates, building completion dates, shutdowns,

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pre-commissioning completions by area for Partial MCC’s,

pre-commissioning duration, commissioning and startup durations,

Beneficial On Stream (BOS) date where applicable, final

occupancy date.

The project summary schedule described in SAEP-14 shall also include

the requirements of tie-ins, hot tap/stopple operations durations and

dates as well as drilling milestones, as applicable.

3.7.2 Progress Measurement and Schedule Control

Describe the methodology to be utilized to ensure accurate progress

measurement and effective schedule control throughout the project life.

Address the subjects of work breakdown structure, progress reporting

systems, responsibilities of contractors with respect to progress

measurement and schedule control, and Critical Path Method (CPM)

scheduling software requirements. The Saudi Aramco Cost and

Scheduling Manual provides a definition of scheduling levels of detail

to be used on Saudi Aramco projects.

3.8 Project Organization and Interfaces

3.8.1 Establishing the SAPMT

Describe the process of establishing the SAPMT, including the following:

?Through review process that will be conducted to determine the

type of disciplines needed to be covered by the SAPMT.

?Objectives, and responsibilities (including correlation with work

breakdown structure) for the Project Manager, Senior Project

Engineers, and other SAPMT members as appropriate.

?Develop a project specific roles and responsibilities matrix that

includes all the SAPMT members.

Provide organization charts for each major phase of the project

(Exhibit G).

3.8.2 SAPMT Interfaces

Describe roles, responsibilities, and reporting relationships between the

SAPMT, Proponent, and other parties involved in the project,

including Saudi Aramco departments and contractors. Include a

typical project responsibility matrix (See Exhibit H).

Next Planned Update: 19 June 2016 Project Execution Plan

Roles and responsibilities of various organizations for execution of

projects related to Saudi Aramco and Third party Royalty/Custody

Metering Systems are specified in SAEP-21 and SAEP-50.

Describe how the SAPMT will provide effective and efficient

communications among the SAPMT, proponent, support groups, and

contractors during all phases of the project.

Describe how the SAPMT will provide close coordination and

effective interface with other BI SAPMTs or Proponents, whose work

will have direct impact on the Project's activities.

3.9 Value Improvement Practices

The oil and gas industry, as a whole, uses value practices that have been proven

through experience to assist projects in reaching goals of shorter schedules and

lower costs, as well as enhanced safety. The value practices outlined below are

applicable to Saudi Aramco projects and, when properly planned and

implemented, can help guide project teams to improved performance. If a

project team does not include the use of value practices as an activity in the

project plan, some value practices may be overlooked and potential benefits lost.

Value practices must be implemented early in the project cycle to be effective,

so the planning must reflect this approach.

Provide Value Practices Implementation Schedule (For optimum implementation

timing see Exhibit I)

SAPMT may contact PMOD/Project Execution Optimization Division (PEOD)

for assistance with this section, if required.

3.9.1 Value Engineering

Summarize SAPMT plan for implementing Value Engineering in

accordance with the requirements of SAEP-367, Value Improvement

Practice Requirements and SAEP-14, Project Proposal. Identify when

the VE study will be conducted and by whom.

3.9.2 Project Risk Management

Summarize SAPMT plan for implementing Project Risk Management

currently identified in accordance with the requirements of SAEP-367,

Value Improvement Practice Requirements.

3.9.3 Best Practices Implementation

Summarize SAPMT plan for implementing Project Management's

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currently-identified or other industry best practices in accordance with

the requirements of SAEP-367, Value Improvement Practice

Requirements and the requirements of SAEP-14, Project Proposal.

3.9.4 Benchmarking

Summarize SAPMT plans for initiating a formal benchmarking

analysis in accordance with SAEP-14, Project Proposal. Identify when

the benchmarking study will be conducted and by whom.

3.10 Project Safety and Environmental

3.10.1 Hazard and Operability (HAZOP) Studies

?Plans and Objectives

Summarize SAPMT plan for implementing HAZOP studies.

The objective in performing HAZOP studies is to identify any

problems. An additional goal is to provide further insight for risk

management decisions by assigning a qualitative risk factor to each

potential hazard or operability problem.

For reference, see SAER-5437 Guidelines for Conducting HAZOP

Studies

?Requirements and Timing

The SAPMT and Proponent, in conjunction with the Loss

Prevention Department (LPD), Environmental Protection

Department (EPD), and Process & Controls System Department

(P&CSD) shall decide which projects and specific facilities require

HAZOP studies, how many and how detailed each should be.

Duplicate facilities shall not require new HAZOP studies. Only

new or upgrade facilities that use, produce, process, transport, or

store flammable, explosive, toxic or reactive substances in large

quantities should have HAZOP studies.

The first of the HAZOP studies shall be conducted during the

project proposal stage and the report shall be incorporated into the

Project Proposal. The HAZOP studies, concentrating on

continuous mode of operation, shall be performed during the

changes are forecasted. HAZOP study recommendations shall be

incorporated into the final design of the facility.

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The final HAZOP study shall be performed as soon as the

operating procedures are developed in sufficient detail to allow

analysis of startup, shutdown, and emergency shutdown modes of

operation. HAZOP study recommendations shall be incorporated

before startup of the facility.

HAZOP Studies Execution

The HAZOP studies should be part of the project proposal and

detailed design contract, if Saudi Aramco decides the Contractor is

qualified to support conducting the studies. If the Contractor is not

qualified to support conducting the study, a subcontractor can be

used.

SAPMT shall notify LPD, EPD, P&CSD, and all other concerned

parties at least six weeks in advance of any PHA or HAZOP study

so that qualified personnel can be assigned and to participate and

also the supporting documentation can be prepared (PFDs, P&IDs,

operating procedures, etc.).

A copy of each report shall be provided to LPD for review prior to

release. SAPMT shall distribute copies of HAZOP study reports to

all participants within four weeks after the study.

3.10.2 Environmental Assessment

Describe the plan for preparing the Environmental Impact Assessment

as required by SAEP-13, Project Environmental Impact Assessment.

3.10.3 Project Safety Program

Describe the safety program for the project. The program should

describe the safety objectives for the project and how the program will

be managed to ensure these objectives are met. Address the issues of

safety.

3.11 Contractor Saudization Plan

Address what actions will be taken to promote and support the hiring and

training of Saudi Arab personnel by contractors working on the project.

3.12 Maximizing In-Kingdom Engineering, Procurement and Construction Work

Address what actions will be taken to promote maximizing the IK engineering,

procurement and construction work. Also, address the feasibility of performing

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portions of any planned LSTK OOK design work IK.

3.13 Projects within Existing Facilities (Non-Grass Roots)

Address what actions will be taken with regards to upgrade renovation or

addition to existing facilities in the following areas:

?Design and site investigation work required during the project proposal

development and detail design phases to determine as-built condition of

existing facilities.

?Risk assessment for items that may impact the project cost estimate.

3.14 Areas of Concern

Address project concerns where corresponding plans of action or solutions have

not been completely defined. Concerns for project delivery should be addressed

by Project Risk Management, including any unusual efforts or procedures

required for successful project completion. Areas of Concern relate to external

interfaces and engineering or operational issues that may affect the resulting

capability provided by the project should also be highlighted here.

3.1

4.1 Engineering Design

Highlight factors that may influence the project design (e.g., operations

manning philosophy, operating reliability, capital versus operating

costs, material sourcing premiums, labor premiums and location

constraints, etc.). Provide action plans to address any concerns.

3.1

4.2 Construction

Highlight factors that can influence the project construction (e.g., site

location, security, other projects, etc.). Provide action plans to address

any concerns.

3.1

4.3 Company Interface

Summarize other Saudi Aramco activities that will be affected by the

project (e.g., maintaining minimum production rates at existing

facilities).

3.1

4.4 Government Interface

Identify anticipated interfaces with Saudi Arabian Government

authorities including Land Permits and other required approvals.

Address the timing and duration of all such activities.

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3.1

4.5 Other Concerns

Identify other known factors that may impact efficient execution of the

project and provide plans that address the concerns (e.g., SAPMT

staffing restraints).

4 Responsibilities

4.1 Preparation

obtaining approval signatures are the responsibilities of the Project Manager.

Project Management Office Department (PMOD)/Project Execution

Optimization Division (PEOD) is available to explain this procedure.

4.2 Approvals

The Abbreviated PEP that is prepared prior to release of Preliminary

Management Department Manager. SAPMT shall submit a copy of the

Abbreviated PEP to Project Management Office Department (PMOD)/Project

Execution Metrics Division (PEMD) to verify the milestones. Copies of all

versions of the Abbreviated PEP shall also be included in the Preliminary

Project Close-out report (SAEP-329).

For projects with a value of $50MM or below and where the Department

Manager has elected to prepare a full PEP, the initial issues only require

approval by the Project Management Department Manager.

For projects with a value between $50MM and $100MM, the initial full PEP

requires approval by the Area General Manager after concurrence by the

Proponent Admin Area Head.

For projects with a value over $100MM the initial full PEP requires approval by

the Vice President of Project Management after concurrence by the Proponent

Admin Area Head (see approval sheet, Exhibit B).

A revised full PEP only requires approval by a Project Management Department

Manager after concurrence by the Proponent Department Manager. A copy of

the revised full PEP shall be forwarded to the signatory of the initial full PEP.

PMOD shall review PPU comments on the status of Full PEP submittals at 30%

preliminary engineering as an integral part of BISR reviews. Copies of all

versions of the Full PEP shall be included in the Preliminary Project Closeout

report (SAEP-329).

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4.3 Distribution

It is the Project Manager's responsibility to distribute the signed-off PEP

including initial and updated electronic or hard copies of both Abbreviated as

well as Full PEP. Distribution includes the Project Proponent, Project

Management Office Department (PMOD) and Materials Supply's Purchasing

Department. In addition, copies of revised PEPs shall be distributed to

signatories of Rev. 0 PEPs.

4.4 Confidentiality

In accordance with GI-0710.002, Classification of Sensitive Documents, PEPs

are to be classified by the SAPMT as either “Restricted” or “Confidential” (for

“major” expansions or developments) and marked and handled accordingly.

Revision Summary

19 June 2011 Revised the "Next Planned Update."

Scheduled update to incorporate improvements.

Next Planned Update: 19 June 2016 Project Execution Plan

Exhibits

Exhibit A – Table of Contents

SECTION TITLE

- APPROVAL SHEET

- REVISION CONTROL

1 PROJECT SUMMARY

2 CONTRACTING

3 MATERIAL PROCUREMENT PLAN

4 PRECOMMISSIONING, COMMISSIONING,

& STARTUP PLAN

5 PROJECT COST

6 PROJECT SCHEDULE

7 PROJECT ORGANIZATION AND INTERFACES

8 VALUE PRACTICES IMPLEMENTATION

9 PROJECT RISK MANAGEMENT

10 PROJECT SAFETY

11 AREAS OF CONCERN

12 EXHIBITS

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Exhibit B – Approval Sheet

(Refer to Section 4.2 for approval levels)

PROJECT EXECUTION PLAN

BUDGET ITEM NO.

PROJECT TITLE

_____________________________________ _____________

P ROJECT M ANAGER D ATE

P ROJECT M ANAGEMENT D EPARTMENT

_____________________________________ ______________

D EPARTMENT M ANAGER D ATE

P ROJECT M ANAGEMENT D EPARTMENT

_____________________________________ ______________

G ENERAL M ANAGER D ATE

A REA P ROJECT M ANAGEMENT

C ONCUR:

_____________________________________ ______________

D EPARTMENT M ANAGER D ATE

P ROPONENT O RGANIZATION

C ONCUR:

_____________________________________ ______________

V ICE P RESIDENT/E XECUTIVE D IRECTOR D ATE

P ROPONENT O RGANIZATION

A PPROVE:

____________________________________ ________________

V ICE P RESIDENT D ATE

P ROJECT M ANAGEMENT