(Tunesien) Production GmbH

AED PROJECT

Progress Measurement Procedure

(Work executed through EPC Contracts)

STOD-OTP-PMT-0808-PM-PRO-0001

Rev No Revision Originator Checked Approved

A01 Draft
Date Date Date
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CONTENTS

1 PURPOSE...................................................................................................... 4
2 RESPONSIBILITIES ...................................................................................... 4
3 PROGRESS PLANNING ............................................................................... 4
3.1 LEVEL 1 - PROGRESS CONTROL CURVES ...........................................................4
3.2 LEVEL 2 - PROGRESS CONTROL CURVES ...........................................................5
4 PROGRESS MEASUREMENT SYSTEM ...................................................... 6
4.1 LEVEL 1 HOME OFFICE SERVICES.....................................................................7
4.2 LEVEL 1 MANUFACTURING & DELIVERY .........................................................17
4.3 LEVEL 1 CONSTRUCTION & PRE COMMISSIONING........................................19
4.4 LEVEL 1 COMMISSIONING & START-UP (if part of the EPC contract) ...............21
5 ATTACHMENTS .......................................................................................... 21

2/21
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REVISION RECORD
Revision Amendment
A01 Draft

ABBREVIATIONS

PCM Project Controls Manager

WBS Work Breakdown Structure
STD Standard Man-hours
MR Material Requisition (for Purchase Order issue)
PO Purchase Order
WR Work Requisition (for Subcontract award)
COMPANY OMV
TBE Technical Bid Evaluation
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1 PURPOSE
The scope of this procedure is to establish guidelines and parameters for the
CONTRACTOR to develop a complete Progress Measurement System which will cover
every aspect of the scope of work assigned under EPC contracts for the Anaguid East
Development Project and which will grant to COMPANY full and easy access to
Progress data verification and assessment.

2 RESPONSIBILITIES
This procedure is issued and revised by the Project Services Team and approved by
the Project Manager.

3 PROGRESS PLANNING
After the development of the WBS and the Level 3 Project Schedule, CONTRACTOR
will establish the formats to monitor the progress via progress control curves and
equivalent manpower histograms. These documents are maintained on a monthly basis
using planned dates from the Level 3 Project Schedule. Actual weekly/monthly figures
will be compared with the planned ones.
The formats for the Progress Planning are developed in accordance with the below
sections of the progress measurement system (ref. Section 4) and in particular with the
relative weights, subject to COMPANY approval, that will not change without
COMPANY agreement.
CONTRACTOR will provide COMPANY unlimited access to CONTRACTORs progress
measurement data for the purpose of verification of progress through all phases of the
work.

3.1 LEVEL 1 - PROGRESS CONTROL CURVES

3.1.1 CONTRACT PROGRESS CURVES
Contract progress curves are developed in order to monitor the physical progress of the
works and are based on the approved Level 3 Project Schedule (Baseline) weighted in
accordance with the progress weighting shown in the progress measurement system
(refer Section 4). These progress figures, in graphic and tabular format, will compare
the actual and the planned physical progress.
Contract progress curves are the following:
Overall Progress for the Works
Overall Home Office Services Progress (Engineering/Procurement
Services/ Subcontract Services)
Overall Manufacturing and Delivery Progress
Overall Construction and Pre-Commissioning Progress
Overall Commissioning Progress (in case part of EPC contract)
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3.1.2 CONTRACT MANPOWER HISTOGRAMS

Contract Manpower Histograms are developed showing the planned figures during the
whole life of the project (Mobilization Plan). Actual mobilized manpower will be
indicated in these figures in order to compare the planned mobilization to the actual
one.
Contract manpower histograms are the following:
OVERALL
HOME OFFICE
FIELD Activities
In case of major rescheduling of the Works, the revised manpower loading will be re-
issued and will be based on any agreed changes of the Contract Master Schedule.

3.2 LEVEL 2 - PROGRESS CONTROL CURVES

3.2.1 PROGRESS CURVES
Progress curves are developed in order to monitor the progress of the works and are
based on the approved Level 3 Project Schedule (Baseline) weighted in accordance
with the progress weighting shown in the progress measurement system (refer to
Section 4). These progress curves show earliest plan, latest plan, actual and forecast
(when the actual progress is behind the planned progress forecast curves) figures.
Progress curves are the following:
HOME OFFICE Progress curves:
HO Engineering Design by Major Disciplines
Procurement Services
Subcontract Services
Manufacturing and Delivery Progress curves:
Itemized Equipment
Bulk Material
Construction Progress curves:
Construction Works by Discipline
Subcontract
Area / Unit
Precommissioning Activities
Commissioning Progress curve:
Commissioning

3.2.2 MANPOWER HISTOGRAMS

Manpower Histograms are developed showing planned figures. Engineering histograms
are prepared by discipline. Construction histograms are prepared per typology of
work/subcontractor.
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Actual mobilized manpower will be indicated in these figures in order to compare the
original mobilization plan and support any progress curves. Equivalent staffing is
calculated based on the working hours/week at work location.
The calculation of man/months for Engineering Histograms is based on 176 Man-hours
/ Month equal to 22 man-days/month and 8 hrs/day working.
The calculation of man/months for Construction Histograms based on 260 Man-hours /
Month equal to 26 man-days/month and 10 hrs/day working.

4 PROGRESS MEASUREMENT SYSTEM

The structure of the Progress Measurement System is depicted in the following figure:

PLANTS (AGP)

EPC CONTRACT - CUMULATIVE ACTUAL PROGRESS CALCULATION

Weighting 100.00%
Lev.0 TOTAL PROJECT
Actual 0%
Weighting 10.00% 50.00% 35.00% 5.00%
Manufacturing & Delivery Construction & Commiss. &
Lev.1 Home Office Services
LLIs, Itemized & Bulk Precommissioning Start-Up
Actual 0.00% 0.00% 0.00% 0.00%
Weighting 75.0% 20.0% 5.0% x% x% x% x% x% x% 100.00%
Temporary Works
Engineering Design

Commissioning &
Itemized Material

Precomissioning
Long Lead Items

Bulk Material
Procurement

Construction
Home Office

Subcontract

Start-Up
Services

Services

(LLIs)

Lev.2

Actual 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

PIPELINES/FLOWLINES

EPC CONTRACT - CUMULATIVE ACTUAL PROGRESS CALCULATION

Weighting 100.00%
Lev.0 TOTAL PROJECT
Actual 0%
Weighting 20.00% 25.00% 50.00% 5.00%
Manufacturing & Delivery Construction & Commiss. &
Lev.1 Home Office Services
LLIs, Itemized & Bulk Precommissioning Start-Up
Actual 0.00% 0.00% 0.00% 0.00%
Weighting 75.0% 20.0% 5.0% x% x% x% x% x% x% 100.00%
Temporary Works
Engineering Design

Commissioning &
Itemized Material

Precomissioning
Long Lead Items

Bulk Material
Procurement

Construction
Home Office

Subcontract

Start-Up
Services

Services

(LLIs)

Lev.2

Actual 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
 (Tunesien) Production GmbH

The weight of the various components at Level 1 is as follows:

PLANTS (AGP)

TOTAL PROJECT Weighting

Progress - Level 0

Home Office Services 10.0%

Manufacturing & Delivery (Equipment Materials & Bulks) 50.0%
Construction & Pre Commissioning 35.0%
Commissioning & Start-up 5.0%

Total 100.00%

PIPELINES/FLOWLINES

TOTAL PROJECT Weighting

Progress - Level 0

Home Office Services 20.0%

Manufacturing & Delivery (Equipment Materials & Bulks) 25.0%
Construction & Pre Commissioning 50.0%
Commissioning & Start-up 5.0%

Total 100.00%

The Level 1 and 2 Progress Control Curves identified in the sections above will be
updated with progress and issued within the Monthly Progress Report.

4.1 LEVEL 1 HOME OFFICE SERVICES

The Home Office Services include: Engineering, Procurement Services, and
Subcontracting Services. The weight assigned to each Activity is based on estimated
manhours. The weight will not change without COMPANY agreement.
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The following table shows relevant relative weights:

HOME OFFICE SERVICES

Weighting
Progress - Level 1

Home Office - Engineering / Design 75.00%

Procurement Services 20.00%

Sub-Contract Services 5.00%

TOTAL 100.0%

4.1.1 LEVEL 2 - ENGINEERING WEIGHTING AND PROGRESS MEASUREMENT

The Engineering will include the following disciplines with relative weights based on
estimated manhours:

HOME OFFICE SERVICES

Engineering & Design Progress - Level 2
Weighting

Process Design tbd %

HSE Design tbd %

Static Equipment Design tbd %

Rotating/Static Package Equipment, HVAC and Design tbd %

Auxiliary. Equipment Design tbd %

Layout & Piping Engineering tbd %

Civil, Structure and Building Engineering tbd %

Electrical Engineering tbd %

Instrumentation Engineering tbd %

Automation and Control Design tbd %

Total 100.00%
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The Level 4 Schedule for Engineering is the tool to plan, monitor and control the
engineering deliverables (including vendor documentation) on a day-to-day basis as
well as to assess the relevant progress achieved.
CONTRACTOR will propose an appropriate tool to handle Level 4 schedule.
The following is a proposed system which shall serve as guideline for the development
of an appropriate Progress Measurement System.
Definitions:
Planning Group = Family of homogeneous engineering documents (i.e.
isometrics)
Milestone Set = Set of Milestones defining Progress Status. For such milestones,
that are characteristic for each Planning Group, a pre-defined progress is
conventionally assigned and accounted when the milestone is achieved.
The standard Milestone Set includes (but is not limited to) the following sample
pre-defined progress percentages:
Start event = x%
Issue for Client Review (IFR) = x%
Issue for Approval (IFA) = x%
Issue for Construction (IFC) = x%
Planning Group Matrix = the combination of the Planning Group with the milestone
set for a discipline generates the Planning Group Matrix for the discipline. This
matrix shall be considered a reference standard to be tailored to the specific
project requirements.
At the Project start-up the list of planning groups is fed into the accepted Level 4
progress measuring tool.
The list is supplemented by the following information:
Planning group description,
Number of Documents expected
WBS code (to be matched with the Level 3 Schedule in Primavera)
Milestone set associated with the Planning Group
Summary table showing the Preliminary Breakdown of Engineering Relative Weights
based on progress calculation system is shown in Attachment X.

Link within the Level 4 Schedule for Engineering and the Level 3 Schedule
Once the proper Milestone Set is associated with Planning Group and WBS element,
the system shall generate the Level 3 Activity ID to the main step of each Deliverable
by merging of Planning Group and Milestone Set Label.
Relative Weight Assignment to Engineering Deliverables in Level 4 Schedule
The relative weight of each Planning Group is automatically assigned by the system
based on the man hours budget quantity allocated on the corresponding P6 activity.
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When the list of deliverables is fed into the system, the deliverable relative weight is
determined as: Budget man-hours (on P6 activity) / Total number of deliverables
expected for the same activity.
Planned dates for each Deliverable included in Level 4 Schedule.
The planned start and finish dates of each deliverable associated with a Planning
Group are derived from the dates established in the corresponding P6 activity.
Level 4 Schedule for Engineering Actual Start and Actual Finish dates
The information relevant to actual start and actual finish for the deliverables belonging
to a Milestone set of each planning groups is assessed at deliverable level.
The actual start date of each deliverable within the first milestone set of a planning
group has to be fed into the system by the responsible Engineer.
This action allows the system to determine the pre-defined progress percentage as
defined in the relevant Milestone set.
The actual finish is input by the responsible Engineer whenever a deliverable is officially
issued with a reason for issue corresponding to a pre-defined Milestone set label and
recorded for the accounting of progress.
Level 4 Schedule for Engineering Physical Progress Assessment
At the cut-off date, running the application in accordance with the pre-defined milestone
progress and weight automatically generates the assessment of the achieved physical
progress.
After final checking these reports, the progress figures, grouped by Planning Group, are
then transferred to Level 3 Project Schedule.
Physical Progress relevant to Piping Studies, P&IDs Mark-up, Isometric Drawings,
Nozzle Orientation Checking and Piping Stress Analysis is calculated through
dedicated electronic sheets (examples are available for reference in the attachment
section) and then transferred in Primavera. Relevant physical progress will be
calculated by each responsible Engineer assigned to the project who will be available
for any details request by COMPANYs counterparts.
For all above mentioned engineering activities a starting physical progress of x% (tbd)
is allowed after communication by Discipline Leaders.
Physical Progress for 3D Modelling is calculated based on concrete cubic meter and
steel structures modelled for each Civil Discipline; number of equipment, lines and
supports modelled for Piping Discipline; number of junction box, local panels, analyser
modelled for Instrument Discipline, meters of cable trays modelled for Electrical
Discipline and number of underground lines modelled for Underground Discipline
(examples are available in the attachment section).
 (Tunesien) Production GmbH

4.1.2 LEVEL 2 - PROCUREMENT SERVICES WEIGHTING AND PROGRESS

MEASUREMENT
The procurement services are split into the following disciplines with relative weights
based on man-hours:

HOME OFFICES SERVICES

Procurement Services - Level 2
Weighting

Steel Structure tbd%

Static tbd%

Rotating/Packages/HVAC tbd%

Instrumentation tbd%

Automation tbd%

Electrical tbd%

HSE tbd%

Piping tbd%

TOTAL 100.00%

The Level 4 Schedule for Procurement is the tool to plan, monitor and control the
procurement project deliverables on a day-to-day basis as well as to assess the
relevant progress achieved.
CONTRACTOR will propose an appropriate tool to monitor and record the Progress for
Procurement
The proposed tool shall be able to interface (manual or electronic) with Primavera and
shall be subject to COMPANYs review and approval.
The following is a proposed system which shall serve as guideline for the development
of an appropriate Progress Measurement System.
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Definitions:
Shopping List = the full list of material to be purchased for the Project. It is divided
in three large classes: The Long Lead Items (LLIs), the Items and the Bulk
Materials.

Long Lead Items = all the materials included in the Project Equipment List with a
lead time greater than 12 months
Items = all the materials included in the Project Equipment List.

Bulk Materials = The Bulk is the remaining portion of the plant, regardless it is
tagged or not. The Bulk is then divided in material identified though a tag item by
item named Itemized (or Tagged) Bulk and material not identified through tag
names, hence called Bulk.
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Planning Group = Family of homogeneous materials typology-wise. An example is

summarized in the following table:

Static Equipment

PLANNING GROUPS FOR PROCUREMENT

Code Value Description
C Static Equipment
CE Heat Exchangers
CEA Heat Exchangers
CEAA Shell and Tube Heat Exchangers
CEAA010 C.S. Shell and Tube Heat Exchangers Dia<1m
CEAA020 C.S. Shell and Tube Heat Exchangers Dia>1m
CEAA030 S.S. Shell and Tube Heat Exchangers Dia<1m
CEAA040 S.S. Shell and Tube Heat Exchangers Dia>1m
CEAA050 Cladded Shell and Tube Heat Exchangers Dia<1m
CEAA060 Cladded Shell and Tube Heat Exchangers Dia>1m
CEAA070 Low Alloy Steel Shell and Tube Heat Exchangers Dia<1m
CEAA080 Low Alloy Steel Shell and Tube Heat Exchangers Dia>1m
CEAA090 H.P. Shell and Tube Heat Exchangers
CEAA100 Alloy Steel NI & NI Alloy Shell and Tube Heat Exchangers
CEAA110 Bronze/Aluminium, Copper Shell and Tube Heat Exchangers
CEAA120 Titanium Shell and Tube Heat Exchangers
CEAA130 Tantalum, Zirconium Shell and Tube Heat Exchangers
CEAA140 Rod Baffie Heat Exchangers
CEAB Air Coolers
CEAB010 Air Coolers
CEAC Plate-Fin Heat Exchangers
CEAC010 Lamella Heat Exchangers
CEAC020 Plate-Fin Heat Exchangers
CEAD Plate Heat Exchangers
Static Equipment

CEAD010 Plate Heat Exchangers

CEAE Double Pipe Heat Exchangers
CEAE010 Jacketed Pipe Heat Exchangers
CEAE020 Double and Multiple Heat Exchangers
CEAE030 High and Ultrahigh Pr. Double Pipe Heat Exchangers
CEAF Finned Tube Heat Exchangers
CEAF010 Finned Tube Heat Exchangers
CEB Construction Type Heat Exchangers
CEBA010 Spiral Heat Exchangers
CEBA020 Film Heat Exchangers
CEBA030 Heating Plate Exchangers
CEBA040 Electrical Heat Exchangers
CEBA050 Graphite Heat Exchangers
CEBA060 Packinox Type Heat Exchangers
CEBA070 PTFE Heat Exchangers
CEC Functional Type Heat Exchangers
CECA010 Continuous Vacuum Pans
CECA020 Batch Vacuum Pans
CECA030 Steam Condensers and Desuperheaters
CECA040 Boiler Feed W aterpreheaters
CECA050 Rotary W ater Tube Bundlecoolers
CECA060 Gas/Gas Heat Regenerators
CECA070 Carbammate/Urea Stripping Condensers
CECA075 Pool Condenser, Pool Reactor for Urea Plant
CECA080 W aste Heat Boiler Units
CECA090 Cryogenic Fluid Vaporizers
CEZ Accessories for Exchangers
CEZA001 Spare Parts for Exchangers
CEZA020 High Flux Tubes for Heat Exchangers (UOP)

Milestone Set = Set of Milestone Label defining the Project way to buy a material; a
Standard Milestone Set is defined for each Planning Group but it should be
confirmed or modified project-wise.
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At the Project start-up the Material Requisitions Plan is set up into the system to cover
the Project Shopping List.
The list shall be supplemented by the following information:
Material Requisition Number
Material Requisition Description
Planning Group
Milestone Set
The link with Primavera Level 3 Schedule Activities is set up as per standard (Planning
Group + Milestone Set).
The weight of each planning group for LLIs, Itemized equipment and bulk materials is
established on contract value basis. The weight will not change without COMPANY
agreement.
The Milestone sets identified for LLIs, itemized equipment and bulk materials are
weighted based on estimated man-hours for the Procurement Services.
Examples of standard Milestone sets are available for the different typologies of
materials as follows:
Packages
Control Systems
Static and Rotating Equipment
Electrical and Instrumentation Items, Laboratory Equipment, Safety
Equipment, HVAC
Piping (piping and fittings)
Electrical LV Cables, Power Distribution System, Lighting System,
Earthlings & Lighting Systems
Instrumentation Bulk Materials and Cables
Steel Structures
Piping Special Items (Spring Supports, Expansion Joints, Filters & Light
Flow Glasses, etc.)

The Milestone Sets examples are the following:

ITEMIZED Itemized Equipment, Item-Bulk and Systems

Milestone
Description %
Label
220 Bids Receiving x%
250 Negotiation & Purchase Order Issue x%
280 Manufacturing and Delivery complete x%
290 Transportation at Site x%
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BULK Bulk Materials

Milestone
Description %
Label
st
320 1 MTO - Bids Receiving x%

st
351 1 MTO - Negotiation & Purchase Order Issue x%
st
381 1 MTO - Manufacturing and Delivery ex-Works x%
st
391 1 MTO - Transportation at Site x%

nd
352 2 MTO - Negotiation & Purchase Order Issue x%
nd
382 2 MTO - Manufacturing and Delivery ex-Works x%
nd
392 2 MTO - Transportation at Site x%

353 Continuous MTO - Negotiation & Purchase Order Issue x%

383 Continuous MTO - Manufacturing and Delivery ex-Works x%
393 Continuous MTO - Transportation at Site x%

Planned dates for each Deliverable included in Level 4 Schedule.

The planned start and finish dates of each deliverable associated with a Planning
Group are derived from the dates established in the corresponding P6 activity.
The transfer of Actual Dates is ensured thanks to the information transmitted by
Procurement Coordinator.
Concerning Manufacturing activities for Procurement Services, the progress calculation
update is based on Time Consuming.
Level 4 Schedules for Procurement Services Physical Progress Assessment
At the cut-off date, running the application in accordance with the pre-defined milestone
progress and weight automatically generates the assessment of the achieved physical
progress.
The progress figures, grouped by Planning Group are then transferred to Level 3
Project Schedule via manual/electronic interface.
Based on above intermediate physical progress is allowed inside each single Milestone
Set in particular for Bulk Material.
 (Tunesien) Production GmbH

4.1.3 LEVEL 2 - SUBCONTRACTING SERVICES WEIGHTING AND PROGRESS

MEASUREMENT
The subcontracting services are split into the following disciplines (where applicable)
with relative weights based on man-hours and complexity:

HOME OFFICES SERVICES

Subcontracting Services - Level 2
Weighting

Additional Soil Investigation x%

Building Works x%
Piling Works x%
Civil Works x%
Pre-Engineered Building x%
Mechanical Works and Painting x%
Electrical and Instrumentation x%
Insulation x%

TOTAL 100.00%
For the Subcontracting Services, the same approach described for the Procurement
Services is adopted.

A Standard Planning Group example is reported under for reference:

PLANNING GROUPS FOR PROCUREMENT

Code Value Description
R Subcontracting
RRRA010 Subcontracting for All Works
RRRA020 Subcontracting for Site Preparation
Subcontracting RRRA030 Subcontracting for Piling Works
RRRA040 Subcontracting for Civil Works
RRRA050 Subcontracting for HVAC Works
RRRA060 Subcontracting for Steel Structures Works
RRRA070 Subcontracting for Mechanical Works
RRRA080 Subcontracting for Tanks Works
RRRA090 Subcontracting for Electrical Works
RRRA100 Subcontracting for Instrumentation Works
RRRA110 Subcontracting for Painting Works
RRRA120 Subcontracting for Insulation Works

T.B.D.
The weight assigned to each Planning Group is based on budget cost and will not
change without COMPANY agreement.
 (Tunesien) Production GmbH

The Milestone Set example is the following:

Subcontract progress Evaluation

All Subcontracts

Milestone
Description %
Label

210 Prepare Inquiry and Issue WR Issue for Bid Inquiry x%

220 Bids Received
250 Negotiation and Award Subcontract x%

4.2 LEVEL 1 MANUFACTURING & DELIVERY

The weight assigned to each kind of Activity is established on cost basis and is subject
to COMPANY Approval. The weight will not change without COMPANY agreement.

4.2.1 LEVEL 2 - MANUFACTURING & DELIVERY SERVICES WEIGHTING AND

PROGRESS MEASUREMENT
The manufacturing & delivery is split into Itemized Equipment and Bulk Material and the
relative weights are based on cost of materials and issue of Vendor Engineering

Manufacturing & Delivery (LLIs, Eqpt. Material &

Bulks)
Progress - Level 1
Weighting

Manufacturing & Delivery Long Lead Items x%

Manufacturing & Delivery Itemized Equipment x%

Manufacturing & Delivery Bulk Material x%

Total 100.00%

Documentation:
An example of detailed Breakdown of Relative Weights for Itemized Equipment & Bulk
Material in accordance to the cost of material and the issue of Vendor Engineering
Documentation is exposed in the Attachment section.
The Milestone Sets examples are the following:
 (Tunesien) Production GmbH

ITEMIZED LLIs & Itemized Equipment

Milestone
Description %
Label
280 Manufacturing and Delivery ex-Works/FOB x%
290 Transportation at Site x%

BULK Bulk Materials

Milestone
Description %
Label
st
381 1 MTO - Manufacturing and Delivery ex-Works (60%) x%
st
391 1 MTO - Transportation to Site x%
382 2nd MTO - Manufacturing and Delivery ex-Works (90%) x%
nd
392 2 MTO - Transportation to Site x%
383 Continuous MTO - Manufacturing and Delivery ex-Works x%
(100%)
393 Continuous MTO - Transportation to Site x%

For the purpose of the progress assessment of manufacturing, an example of pre-

defined progress profile as well as the criteria to be applied is presented here below.
Concerning transportation activities, a starting physical progress of 10% is allowed, the
remaining single progress step of 90% is achieved when the material arrive at site.
The progress is assessed at P.O. level by the inspector at each expediting visit and
transmitted to the Project Team.

Level 4 Schedules for Manufacturing and Delivery Physical Progress

Assessment
At the cut-off date, running the application in accordance with the pre-defined milestone
progress and weight automatically generates the assessment of the achieved physical
progress; an example of detailed Level 4 tabular report is available in the Attachment
section.
The progress figures, grouped by Planning Group are then transferred to Level 3
Project Schedule via manual/electronic interface.
Based on above intermediate physical progress is allowed inside each single Milestone
Set.
Level 4 Schedules for Transportation at Site Physical Progress Assessment
At the cut-off date, running the application in accordance with the pre-defined milestone
progress and weight automatically generates the assessment of the achieved physical
progress.
Based on above intermediate physical progress is allowed inside each single Milestone
Set.
 (Tunesien) Production GmbH

4.3 LEVEL 1 CONSTRUCTION & PRE COMMISSIONING

The Construction & Pre commissioning activities includes: Temporary Facilities,
Construction and Pre Commissioning. The weight assigned to each kind of Activity is
based on estimated direct man-hours and is subject to Company Approval. The weight
will not change without COMPANY agreement.
The following table is indicative only and subject to be modified as per current figure:

CONSTRUCTION & RECOMMISSIONNING

Progress - Level 1

Weighting

Temporary Construction and Camp Facilities x%

Construction Works x%
Precommissioning activities x%

Total 100.00%

4.3.1 LEVEL 2 - TEMPORARY WORKS WEIGHTING AND PROGRESS MEASUREMENT

Temporary Works are split into the following main activities with relative weights based
on cost:

CONSTRUCTION AND PRECOMMISSIONING Weighting

Temporary Facilities - Level 2

Site temporary Facilities x%

Camp Facilities x%

Total 100.00%

The evaluation of the achieved progress is based on the achievement of each

milestone set relevant to the facilities to be installed (Attachment x).
 (Tunesien) Production GmbH

4.3.2 LEVEL 2 - PERMANENT CONSTRUCTION WORKS WEIGHTING AND PROGRESS

MEASUREMENT
Construction works are split into the following disciplines (where applicable) with
relative weights based on estimated direct man-hours:

CONSTRUCTION AND PRECOMMISSIONING

Permanent Construction Works - Level 2
Weighting

Piling Works x%
Civil Works x%
Steel Structures x%
Equipment & Lift x%
Piping x%
Instrumentation x%
Electrical x%
Insulation x%
Painting x%
HVAC x%
Pre-engineering Building x%

TOTAL 100.00%

Civil Subcontractor scope of work includes the supply of Material (steel bars,
formworks, anchor bolts etc.) and the erection of Building (concreting and steel
structures erection).
The detailed construction schedule is developed having as a reference the Level 3
schedule, construction phase.
Construction and erection activities are broken down by area, by discipline/sub-
contractors and individual activity in compliance with the established WBS.
Each activity is clearly identified with a defined scope of work, unequivocally
measurable.
Since the completion of most of the work pertaining to an activity is a continuous
process and not an on/off event, it is necessary a further breakdown of the identified
activities into tasks to be performed in order to achieve the completion of the
elementary scope of work. (E.g. to build a foundation it is necessary to erect
frameworks, install re-bars and anchor bolts and then pour the concrete and remove
the framework). Each task is weighted in STD-Man-hours which are obtained as the
ratio of the expected quantity over the yield, a Company norm based on an average
outputs to perform the unit quantity of the task with its own measurement unit (e.g. m3
per hour, tons per hour, lm per hour etc.).
The evaluation of the achieved progress is expressed in earned STD-Mhrs that is given
by the ratio of the quantity completed (or installed) multiplied by the yield over the total
expected STD-Mhrs of the activity.
 (Tunesien) Production GmbH

Through the weighting of the tasks and activities, the progress is rolled up and
transferred into Level 3 schedule for further actions at higher levels.

4.3.3 LEVEL 2 PRECOMMISSIONING WEIGHTING AND PROGRESS MEASUREMENT

The same principles described at Para 4.3.2 are applied to the Precommissioning
Progress approach.
Pre-commissioning Activities (leading to MECHANICAL COMPLETION) are identified
as follows:
Electrical substations power on
Piping flushing / blowing
Instrumentation functional loop test
Equipment's motor solo run
Rotating equipment/Packages mechanical preparation
Static equipment box up
System leak test

4.4 LEVEL 1 COMMISSIONING & START-UP (IF PART OF THE EPC CONTRACT)
The weight assigned to the Activity is established on cost basis and is subject to
Company Approval. The weight will not change without COMPANY agreement.

4.4.1 LEVEL 2 COMMISSIONING & START-UP WEIGHTING AND PROGRESS

MEASUREMENT
The same principles described at Para 4.3.2 are applied to the Commissioning
Progress approach.
Commissioning Activities (leading to READY FOR START UP) are identified as follows:
Rotating equipment/Packages run-in
Static equipment catalysts/chemicals loading
Interlocks check
System drying and inerting
Hydrocarbons introduction and circulation

5 ATTACHMENTS