SECTION 13.

4
GENERAL CONSTRUCTION CONCERNS
13.4.1 Mobilization and site establishment

Mobilization for Bidder personnel will commence 2 months after the notice to
proceed. The first mobilization will manage and coordinate the initial
construction works, such as accommodation preparation, temporary site
offices, and other temporary facilities to meet the project milestones.

Bidder will utilize its owned fabrication shop space available near the site
location. As this area is much more developed Bidder will use this as Bidder
accommodation. By doing so, Bidder will not spend too much time to do the
preparation works and can speed up the start of construction for the actual
project.

Apart from the tangible work described above, the non-tangible works are
equally important to make the project a success. In addition to the above
tasks, the first mobilization of personnel will be responsible for building up
local community relationship with local community leaders, and preparing
plan for hiring of workers from the surrounding areas. These non-tangible
activities are very important to ensure a smooth project, and are often
overlooked by even the most experienced contractor.
13.4.2 Health, Safety and Environment Protection plans
As Bidder standard practice, Bidder will issue a specific HSE Plan for this
project. HSE Plan will have the following table of content:

Once the HSE Plan is issued and approved, the HSE implementation shall be
observed to be in line with this plan.

13.4.3 Prefabrication locations

The following table summarizes the places of fabricated items:

13.4.4 Material Control and traceability, including handling.

Material for this project will be controlled based on Bidder current material
management system, utilizing excel spread sheets.

Upon materials being received at the job site, the quantity received will be
tracked as per the bill of material quantity. Any shortage or excess material
against bill of material and purchase order quantity will be constantly
monitored.

Material will be monitored and tracked from the point of take-off by

engineering through receiving stage and eventually to the point of
erection/fabrication/installation. Material Controller will continuously compare
material based on drawing requirements, requisitioned quantities, and
material availability.

Receipt, Inspection and Warehousing

Warehouse Supervisor will be responsible to supervise warehouse operation
during receipt, store, protect, handle, preserve and reload material under the
supervision of Site Material Controller. After receipt of material, warehouse
supervisor will conduct inspection with related disciplines to check any
discrepancy between material and packing list and damage.

Material Storage
All materials will be stored and protected in warehouse and storage yard.
Each material checklist will designate the storage class as stipulated in the
procedure that will be developed during execution stage.

Carbon Steel, Low Alloy and Alloy material will be stored at different place or
tray where they will be divided and set in warehouse in order to prevent
material contamination and easy identification of material issue for fabrication
and installation.

Material storage area will be divided based on type of material for pipe, valves
and fittings, other big material, etc and material classification.

Traceability

All materials in storage will be tagged or identified as per procedure to ensure

an audit is able to trace the relevant purchase order.

Equipment Preservation

Warehouse supervisor will be responsible to preserve all equipment and

materials as per advice from engineering disciplines and vendors. Warehouse
supervisor will maintain preservation logs.
13.4.5 Staff recruitment and training

Based on Bidders previous experiences during the construction of pipelines

in both onshore and swamp area, the sourcing of qualified manpower
including welders, fitters, lifting team is important In order to master the
equipment and welding skill, a special training for the welders and inspectors
will provide by bidder .

Bidder will perform training and qualification of welders prior to mobilization of

the pipeline team to the project site. Bidder will attempt to re-hire all the
welders which have been qualified previously in order to be more successful
in the training and re-qualification process. In addition to the welders training,
Bidder will also train the Training of Supervisors & QC Inspectors, and fitters
to adapt the site requirements.

13.4.6 Quality Plan and Quality Control

Bidder understands the importance of good Quality Plan to start with and
continuously monitoring of the implementation and compliance to the Quality
Plan and the Quality Procedures.

BIDDER quality objectives for this project are:

Do it right at the first time

Eliminate re-work

QA/QC manager will monitor all quality matters in this project from
preparation of project QC plan, QC procedures, ITP and application of
QC plan during engineering phase, fabrication, construction and
installation.

For equipment to be inspected at Vendors works, expeditor will

coordinate with QA/QC manager to assign inspectors for witnessing the
test in accordance with the established ITPs.

QA/QC Manager responsibilities include quality audits at vendors works

and at subcontractors facilities.

During fabrication and installation at site, BIDDER will engage

SUBCONTRACTOR for NDT activities.

13.4.7 Transport and logistics

Bidder will segregate the transport and logistics into two categories:
- Local Transport & logistics
- Overseas Transport & logistic

For the local transport and logistic, Bidder will use its own transportation
barges or regular group of freight forwarders which have been used in Bidder
previous projects. In particular, these barges will be ideal transport vehicles
during mobilization and demobilization. By having its own transportation
barges, Bidder will have the following advantages:
 - Project material will not be transported with other materials. This is
common practice for transporting using conventional shipment
- Bidder will have overall control on the schedule of shipment

For overseas transport and logistic, Bidder intends to use freight forwarder
agency which is based in Singapore. The chosen freight forwarder shall be
experienced in handling the formalities for importation into Indonesia using
the Master list facilities. This Singapore based forwarder will be required to be
in association with a local custom clearance agency in Jambi for ensuring
smooth custom clearance process. The local agency shall not only have good
relation with the government officials, but also it shall have its own
transportation vehicles (not hired/rented).

13.4.8 Construction equipment and plant lists

Bidder anticipates the following equipment will be required for the execution
of the work:

No Equipment Details Qty

1.
Crawler Crane -50T 1
2.
Mobile Crane 45 T 1
3.
Excavator Short Arm 4
4.
Excavator Long Arm 1
5. Trailer 1

6. Hiab Crane 1 1

7. Medium Truck 2

8. Light Vehicle 4

9. Generator set 4

10. Welding Equipments (All locations) As required

13.4.9 Warehouse facilities at each location

The satellite warehouse facility will maintain a minimum stock level of

consumables. The minimum stock level will be developed at later stage after
considering the lead time to procure and deliver the goods and the
consumption rate. When a stock level depletes to the minimum level of stock
from the each satellite warehouse, an order will be requested for top-up
quantity from the main warehouse facility near BGP. Similarly main
warehouse facility will have a minimum stock level. When the stock level
depletes and reach the minimum level, main warehouse facility will request to
Bidder head office for top-up.

13.4.10 Emergency response plan

As Bidder standard practice, Bidder will issue a specific Emergency
Response Plan for this project. Emergency Response Plan will have the
following table of content:
Emergency Response Plan will be continuously socialized to all
workers and staff, and Bidder will perform safety drills throughout the
execution of the Project so as to ensure every one is aware of what to
be done during emergency.