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Note: This version of SAEP-14 is applicable only to projects using the new Capital
Management System (CMS). All other projects will use the version of the procedure
dated 13 February 2012.
Contents
1 Introduction……………………………….......... 2
2 Applicable Documents……...…...................… 4
3 Project Proposal Contents……....................... 6
4 Project Improvement Requirements…. 24
5 Reporting and Review Requirements…....... 25
6 Approvals and Waivers…………………....... 28
7 Contract Bid Package…………………….…. 30
8 Conflicts and Deviations............................... 31
1 Introduction
This procedure outlines the requirements for preparing the Project Proposal. The procedure
is not intended to give instructions on the engineering effort, but to cover requirements that
are important during the FEL3 Project Proposal phase. In summary, it covers:
Engineering, scope definition, specifications, standards and selected design
requirements
Quality, cost reduction and schedule improvement techniques
Project improvement requirements
Schedule and ER Estimate preparation requirements
Project Proposal reporting, review, approval and waiver requirements
Contract bid package key activities
Project Proposal and Contract Development checklists
The intent of the checklist is to ensure compliance with key requirements. They are not
intended to cover all detailed requirements of this procedure.
1.1 Definition
1.2 Purpose
Project Proposals must be completed and approved in time before the 56D
submission deadline in order to support the Expenditure Request Approval
(ERA).
1.4 Application
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
2 Applicable Documents
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
The following sections outline the items normally included in Project Proposals.
This section provides scope and design information that establishes the
performance specifications for the facilities, process, waivers or
limitations. It shall address details concerning the design basis, proposed
facilities including equipment design, capacities, location/layouts and
other project related information. The list below provides common
elements found in a typical scope. This list may be optimized by the IPT
based on the Project Type & Sub Type:
1) Facility/plant layout and location
Note: The project scope boundaries and interfaces with other related
facilities must be clarified prior to developing the scope of the
project in the proposal phase.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
14) Facilities’ security, fire protection & safety provisions (if required,
Hazard Identification Plan of major hazards, fire hazardous zone
drawings, and fire system and fire/gas detection/alarm layout
drawings)
Notes: 1) Facilities Security Assessment (final) is completed during the
FEL2 DBSP phase.
The ORP is a document that defines how the project will transition
into an operating facility and will describe what “operational-type”
Saudi Aramco: Company General Use
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
steps must be taken along the project planning and execution path
to have a flawless startup and initial operations. The ORP also
highlights and describes activities and resources aiming to ensure
the optimization of Operations and Maintenance activities over the
facility lifetime (starting after handover).
27) List of items exceeding (over-specification) Saudi Aramco
standards’ minimum requirements
28) Requesting/returning of drawings/tag numbers and using SmartPlant
templates and AutoSACS (see SAEP-334)
29) Identifying Operating Instructions for New Facilities and Project
Records requirements (see SAEP-121 and SAEP-122)
30) Compliance with security and control of Engineering Data
requirements (see SAEP-127)
31) Compliance with Value Assurance (VA) requirements (see SAEP-40)
32) Compliance with Value Improving Practices (VIPs) requirements
(see SAEP-367)
33) Compliance with Project Closeout Report requirements
(see SAEP-329)
For all projects that follow the Capital Management System Efficiency
Enablers (CMSEE), the project scope shall be considered frozen on the
date of DBSP approval. Scope changes after DBSP approval shall be
avoided.
Note: The above shall be facilitated by ensuring the DBSP approval includes
all approvers’ commitment to eliminate scope changes after DBSP
approval.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
Any cost impact as a result of the studies must be identified and included
in the ER Estimate package.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
The impact of changes on the project shall be reviewed by the IPT and
other stakeholders to determine applicability and extent of
implementation. Only changes approved by the Project Manager and
concurred by the Project Sponsor shall be implemented to the project.
This section provides a list and copies of the drawings that define the
scope of the project. It shall include key drawings such as PFDs, P&IDs,
plant and equipment layouts, electrical one-line diagrams, 3D CAD and
other necessary drawings that are required to establish the design basis
and assist in producing an ER quality estimate.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
All projects shall adhere to security measures and controls for all
systems and solutions, including process automation systems, to comply
with security requirements in line with IPSAG and SAEP-99.
Note: Facilities Security Assessment (final) for Information Technology (IT) is
completed during the FEL2 DBSP phase.
At the end of the FEL3 Project Proposal phase and subsequent phases,
progressive Project Closeout Reports are to be submitted by the Project
Manager (see SAEP-329). Therefore, it is recommended that SAPMT
includes the requirements in the Project Proposal contract and in the
contract(s) for later phases of the project to ensure that the requisite
information is provided by the contractor(s).
The report(s) shall be included in the Project Proposal package and shall
also be distributed to the Project Sponsor and Capital Program Efficiency
Department/PVAD.
3.3.1 General
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
The purchase order transferred to the Contractor will cover the complete
scope involving engineering and manufacture. Use of novated purchase
orders should be approved as per of Supply Chain Manual (Volume I:
Saudi Aramco Procurement Manual, Section 1.7 Services Review
Committee “SRC”).
Novated purchase order terms and conditions shall include all relevant
contract Schedule Q requirements related to material procurement and
manufacturing activities to ensure a smooth transition from the FEED
contractor to the project contractor.
A list of proposed installed spares for critical plant unit equipment and a
list of non-installed capital spares proposed for entry into Saudi Aramco
stores custody shall be provided along with the estimated cost for each
item and justification for purchase. Comparison shall be made between
spares specified in the Design Basis Scoping Paper and spares specified
in the Project Proposal.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
(MSO) to ensure the spares are reviewed against overall inventory needs,
and do not adversely affect existing supplies. Defined start-up spares
may be turned over to Saudi Aramco in accordance with the contract
requirements provided that the quantities and types are in accordance
with the Saudi Aramco stocking policy.
For LSTK and LSPB contracts, start-up spares responsibility for “free
issue” equipment provided by Saudi Aramco shall be stated clearly in the
contract.
SAPMT and the respective Contractors are responsible for the spare
parts information as outlined under SAEP-31. In all cases, the
SAPMT/Contractors shall provide complete and accurate spare parts data
packages necessary to support Saudi Aramco procurement of operating
spare parts.
Upon review and acceptance of the Level III schedule by the SAPMT’s
Senior Project Engineer, the schedule will then be submitted by the
SAPMT Business Admin. Group for the concurrence of the Scheduling
Unit of the Project Management Office Department before any decisions
are made by the Construction Agency’s Project Leader/Manager.
Project Summary Schedule shall address all the project life cycle
activities in a summary format. It must be logic driven, and based on the
Critical Path Method (CPM). The Schedule should contain sufficient
detail to show potential material or equipment “novation”, long lead
items, contract procurement activities, detailed engineering by discipline
leading to major deliverables, mobilization, early works, shutdown, hot
taps/stopple operations, tie-ins, testing, loop checks, pre-commissioning,
start-up, interface with Proponent and other projects as well as drilling
milestones, as applicable.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
3.5 Appendix
The Appendix shall include letters, minutes, land use permits and other pertinent
documents written during Project Proposal development.
requirements for a project and ensuring that these requirements are met during
the Project planning and execution phases. To meet this objective, Senior
Operations Representative shall prepare a Training Requirement Statement
(TRS). SAPMT (Project Manager) will provide equipment identification and
any details that may assist Proponent in preparation of the TRS. The Proponent
will provide the completed TRS to the Training & Development’s Early BI
Training Planning Team (EBTP) to complete a Training Impact Assessment
(TIA). If training is to be required, EBTP shall submit TIA’s Knowledge &
Skills Matrix’ (KSM) data to SAPMT for inclusion in the Project Proposal, in
accordance with SAEP-140. SAPMT is responsible for incorporating the
findings of the Training Impact Assessment in the final Project Proposal.
SAPMT may also be required to implement the findings of the Training Impact
Assessment as included in the approved Project Proposal. These may include:
Incorporating contract provisions that require the Contractor to develop
multiple quotations for specified equipment so that the cost of training can
be taken into consideration when selecting the life-time, low-cost supplier.
These provisions will allow Saudi Aramco to direct the Contractor to place
its order with one of the proposed technically acceptable suppliers and will
provide for additional payment to the Contractor if the selected supplier did
not offer the lowest base price to the Contractor.
Incorporating requirements for the Contractor to include provision in its
purchase orders for specified equipment that establish fixed prices for
training services or material to be procured at a later date by Saudi Aramco.
This will reduce the possibility of a supplier overcharging Saudi Aramco
when training services or materials are procured on a single-source basis.
Providing the vendor training plans and quotes for the equipment identified
for training to the EBTP team for analysis. After the initial analysis of the
vendor training plans and quotes, the EBTP team will provide training
recommendations to SAPMT for considerations during the vendor selection
process.
After vendors have been selected, SAPMT will provide the EBTP team a list of
the specific equipment required for training, general vendor data information,
training scope, cost and schedule required for training prior to commissioning.
This section consists of practices/studies that when implemented would optimize project
cost, schedule & quality and enhance the efficiency of project planning and execution.
Budgeting for conducting value practices is included in the Preliminary Engineering
funds.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
4.2 Benchmarking
Target Setting is one of the five efficiency enablers of the Capital Management
System (CMS). SAPMT, FPD and PMOD, as part of the Integrated Project
Team, are responsible for developing target setting for the projects. For further
details regarding roles and responsibilities, the target setting process and project
requirements, refer to the latest Target Setting Manual.
The CMP shall be submitted for review and approval by the Coordinator, Asset
Reliability & Integrity Management Division of Consulting Services Department
(CSD).
The IPT Leader (SAPMT’s Project Manager) and Proponent (Senior Operations
Representative) are responsible for determining the recipients. As a minimum,
the following represents a list of various organizations that shall be considered
for receipt of the Project Proposal. However, only those organizations with
direct involvement shall receive the Project Proposal.
Executive Management:
- Proponent Organizations, i.e.;
Refining & NGL Fractionation
Northern Area Oil Operations
Southern Area Oil Operations
Pipeline, Distribution & Terminals
Gas Operations
- Petroleum Engineering and Development (for production-related projects)
General Management:
- Industrial Security Operations
- Proponent organization
Management:
- Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products movement and
Saudi Aramco: Company General Use
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
handling)
- Communications Engineering & Technical Support Department
(for all projects involving communications)
- Projects & Strategic Purchasing Department
- Transportation & Equipment Services Department
- Power Operations Department (relevant)
(for all projects related to power facilities at 2.4 kV and above)
- Abqaiq, Dhahran or Ras Tanura Utilities Department
(for the area community projects only)
- Facilities Planning Department (mandatory)
- Consulting Services Department
- Inspection Department
- Environmental Protection Department
- Process & Control Systems Department
- Industrial Security Support Department
- Loss Prevention Department
- Fire Protection Department
- Project Management Office Department (for information only)
- Capital Program Efficiency Department (for Value Assurance Reviews)
The Technical Review Meeting shall be held no sooner than ten (10) working
days after distribution of the Project Proposal for review. Location, date, and
time of the meeting shall be announced in the cover letter distributed with the
Project Proposal. The Technical Review Meeting shall discuss all technical
aspects of the Project Proposal, resolve technical questions, address
environmental issues and review the Project Summary Schedule. Interim
technical review meetings shall be conducted as required by SAPMT depending
upon the type and complexity of the project. Items not resolved at the final
technical review meeting shall be addressed in the Project Proposal Meeting.
Substantive changes resulting from the technical review meeting shall be
incorporated as appropriate into the Project Proposal documents.
SAPMT shall prepare minutes of the Technical Review Meetings and distribute
the minutes, electronically whenever possible, to all persons who either received
the Project Proposal or attended the Technical Review Meeting. The minutes
shall include the estimated cost and schedule effects of changes from the
DBSP/Project Proposal as originally prepared. Refer to Section 3.2.3 for
definition of scope change and its approval process.
The subject of critical plant equipment unit spares (capital spares) per Section 3.3.4
shall be addressed, and proposed purchases shall be reviewed.
The purpose of the Project Proposal Meeting is to resolve any outstanding items
remaining after the Technical Review Meeting and to finalize the project scope.
The Project Proposal Meeting shall be scheduled no sooner than five (5)
working days after distribution of the minutes of the Technical Review Meeting.
SAPMT shall be responsible for preparing and distributing the minutes of the
Project Proposal Meeting to those persons who either received a copy of the
Project Proposal or attended the Project Proposal Meetings.
For selected small projects, the Technical Review and Project Proposal
Meetings can be combined into one meeting, with the concurrence of the
Proponent and FPD. In this case, the reviewing organizations should send
personnel authorized to make decisions to attend the meeting.
Following the approval of the Project Proposal, a final approved copy shall be
distributed as follows:
SAPMT shall send electronic copies of the approved Project Proposal to:
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
6.1.1 Approvals
The required approvals shall be obtained through SAP using the Project
Proposal e-Approval (PPeA) System. Project Proposal approval package
shall comprise of maximum ten (10) documents and those include:
1) Project proposal checklist,
2) Project summary,
3) Minutes of all the technical review meetings,
4) Minutes of project proposal meeting,
5) Comments’ log,
6) List of scope changes from the approved DBSP (see Exhibit III.c),
and
7) Other applicable documents (up to four numbers).
Note: Hardcopy approvals shall be allowed only if there are compelling
reasons and prior concurrence from the Manager, PMOD.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
For a project with an approved Project Proposal which has not yet
received Expenditure Request (ER) approval, scope change(s) shall be as
per Section 3.2.3.
6.2.1 Request
6.2.2 Approval
As applicable, the Contract Bid Package will be developed in close coordination with
the Contracting Department. Refer to Contract Development Checklist (Exhibit V), for
key activities in developing Contract Bid Package.
A complete Contract Bid Package shall be prepared in accordance with Supply Chain
Manual and typically contain the following:
Invitation for Bid documents
Technical Proposal documents
Commercial Proposal documents
As part of Commercial Proposal requirements, Bidders shall be required to submit a
Bid Quantification Summary as shown on Exhibit VI for bid analysis purposes.
Note: Copies of the final Bid Quantification Summary from the successful bidder will be
provided to PMOD/ESD.
Issue for Bid package (normally prepared by Engineering Contractor) typically includes
drawings, specifications, applicable reports, and other relevant documents necessary to
define the project requirements and clearly describes the contract scope of work.
SAPMT should take into consideration the current project execution plan and
responsibilities of all contractual parties when revising the Project Proposal package to
“Issue for Bid” Package.
The following sections in the Project Proposal package should be reviewed carefully to
determine if they are applicable for inclusion in the bid package. If they are to be
included, SAPMT shall modify as required to ensure that Contractor’s scope of work is
clearly defined in the “Issue for Bid” Package:
Project Schedule
Training requirements
Land Permits
Operating Variables (as required by OSPAS)
Strategy for projects compliance with quality requirements
Project- Risk Management Plan, Risk Assessment Report and Risk Register
Temporary construction and communications
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
8.1 Any conflicts between this procedure and other applicable Saudi Aramco
Engineering Procedures (SAEPs), shall be resolved in writing by the General
Supervisor, Project Execution Optimization Division (PEOD), Project
Management Office Department (PMOD) of Saudi Aramco, Dhahran.
8.2 Direct all requests to deviate from this procedure following internal Company
procedure SAEP-302 and forward such requests for review to General Supervisor
PEOD and approval to the Manager, PMOD of Saudi Aramco, Dhahran.
Revision Summary
31 May 2015 Major revision to address ATP-Capital Efficiency’s CMS requirements. Added missing
references, listing of MSAERs/Over-specs items/design, RAM study, and requirements for
assigning Tag numbers, returning unused Drawing numbers and using Drawings/Data files
formats and Security and Control of Engineering Data. Additionally, added Operating
Instructions, Projects Records, Project Closeout Reports and Project Proposal electronic
approval requirements. Deleted duplicate text and exhibits with other SAEPs.
02 May 2017 Minor revision to: 1) reference SAEP-360, -1350, -72 and -148, 2) align procedure with revised
CMS-FEL Manual and SAEP-1350 (for Modularization needs), 3) include Over-specification
report requirement, 4) modify SCDR implementation needs, and 5) incorporate editorial
changes.
EXHIBITS
TABLE OF CONTENTS
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
Complied Remarks
Item Ref. Section Description
(Yes/No) (Justification of non-compliance)
Complied Remarks
Item Ref. Section Description
(Yes/No) (Justification of non-compliance)
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
Project Characterization
(M denotes $1,000,000)
Facilities Planning Department (FPD) leads the portfolio characterization of all projects in the
Saudi Aramco portfolio based on project size and complexity as shown in Figure below.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
Note: For CMS compliant projects, SAPMT shall add Project Sponsor (PS) as Project Proposal
approver before VP/ED of the Construction Agency.
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
Note: For a project using an LSTK contracting strategy, these actions are required during or just after
the Project Proposal period. For other strategies (e.g., GES+ LSPB) some of the activities take
place at later stages of the project.
PROJECT TITLE : BI :
CONTRACT NUMBER : JO :
CONTRACT TYPE :
SUMMARY OF COST
BY WORK BREAKDOWN STRUCTURE (WBS)
BULK
AREA OF WORK ENGINEERING CONSTRUCTION TOTALS
MATERIALS
AREA OF WORK 1 $ $ $ $
AREA OF WORK 2 $ $ $ $
AREA OF WORK 3 $ $ $ $
AREA OF WORK 4 $ $ $ $
TOTAL PROJECT COST $ $ $ $
DEMOLITION
TOTAL DEMOLITION WORST L $ $
(SCA 007)
SITE PREPARATION /
DEVELOPMENT
(PLOT SIZE) SM $ $
CONCRETE CM $ $
CIVIL / STRUCTURE
(SCA 200 & 400) FENCE LM $ $
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Document Responsibility: Project Management Office SAEP-14
Issue Date: 02 May 2017
Next Planned Update: 30 April 2020 Project Proposal
TOTAL MECHANICAL/PROCESS
EQUIPMENT MANHOURS & COST MHRS $ $
ACTIVITY IN MONTH(S)
DETAIL DESIGN DURATION
SCHEDULING
CONSTRUCTION DURATION
EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME
DELIVERY
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