CONTRACT NO.

6600044663

SCHEDULE Q

QUALITY REQUIREMENTS

TABLE OF CONTENTS

1. General

2. Quality Management System Requirements

3. Documentation Requirements

4. Management Responsibility

5. Resource Management

6. Project Realization / Execution

7. Measurement, Analysis, and Improvement

Attachment I CONTRACTOR Quality Personnel Qualification Requirements

Attachment II SAUDI ARAMCO Standards and Procedures Containing Quality

Requirements

Attachment III Quality Requirements for CONTRACTOR Supplied Materials

Attachment IV Quality Requirements for Construction Phase

Attachment V Summary of Quality System Deliverables

Attachment VI Project Specific Quality Requirements

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SCHEDULE Q

QUALITY REQUIREMENTS

1. GENERAL

1.1 Unless otherwise defined in this Contract or below, capitalized terms used in
this Schedule “Q” shall have the respective meaning specified in the 2015
version of ISO 9001 (Quality Management Systems – Requirements). In
addition, the following terms shall have the respective meanings ascribed
below, which, in this Contract, are in addition to and not in substitution of the
defined terms specified in Schedule “A”:

“Agreed Completion Date” or “ACD” means the date which the violation
notification will be closed upon completion of the required corrective and
preventive actions for the reported violation fully.

“CONTRACTOR Quality Personnel” means CONTRACTOR Personnel

engaged in or assigned to roles specified in this Schedule “Q”, specifically
including Third-Party and NDT Service Provider personnel.

“Corrective Action” means action to eliminate the cause of a nonconformity

and to prevent recurrence.

“Employer”, as used in Attachment I to this Schedule “Q”, means the Third-

Party employer of the relevant personnel.

“Engineering Change Notices” means design change authorization and

documentation with justification for changes made to previously authorized
design.

“Inspection Agency”, “NDT Service Provider”, “Testing Agencies”, “Testing

Laboratories”, and “Third-Party” means, individually or collectively, all testing
laboratories, testing agencies, inspection agencies and NDT Service
Providers engaged by CONTRACTOR or SAUDI ARAMCO to perform
independent testing and verification as required by this Contract. For the
purposes of Schedule “A”, each Third-Party shall be deemed to be a member
of CONTRACTOR Group unless engaged by or on behalf of SAUDI
ARAMCO for its own benefit.

“Inspection and Test Plan” or “ITP” means a document based on the detailed
manufacturing, fabrication and construction program which identifies each
process description, sets out the related sequence of activities to be inspected,
examined and tested and lists the relevant approved procedures for a particular
material, component, assembly, or, in some cases, type of work. It shall include
identification of requirements for documents, acceptance criteria to be used,
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who is responsible for what, the inspection surveillance to be performed and the
type and level of inspection including hold, witness and review points of
Contractor/Sub-contractor and Saudi Aramco. This ITP refers to the Inspection
& Test Plans (ITPs) generated by vendors as part of VID requirement.

“Non-Conformance Report” or “NCR” means Report on non-fulfilment of a

requirement issued by contractor or by Saudi Aramco through SAP QM.

“Pre-Inspection Meeting” or “PIM” means a kick-off meeting of inspection

activities at the vendor shop to address quality related requirements of the
purchase order as per SAEP-1150.

“Project Quality Plan” or “PQP” means document specifying procedures and

associated resources that shall be applied by whom and when to a specific
project, product, process or contract.

“Quality Management System” or “QMS” means an ISO 9001 compliant

quality management system.

1.2 This Schedule describes the minimum requirements for the CONTRACTOR
Quality Management System (QMS) to which CONTRACTOR must adhere
in the performance of the WORK.

1.3 CONTRACTOR shall manage, inspect, test and accept all parts of the
WORK, to ensure conformance with all standards, specifications and
drawings applicable to the WORK.

1.4 SAUDI ARAMCO shall be entitled to have the Company Representative or

his nominees present at all locations where the CONTRACTOR is engaged,
directly or indirectly, in the performance of the WORK, at any and all times,
to review and audit all aspects of CONTRACTOR quality activities and to
witness any and all inspection and testing which is required by this Contract.
SAUDI ARAMCO retains the right to conduct additional tests or inspections
it deems necessary to assure the Materials and personnel performing the
activities meet the requirements of this Contract. CONTRACTOR shall not
refuse SAUDI ARAMCO access to technical or other data which
CONTRACTOR considers proprietary or confidential, and which is
reasonably required to inspect CONTRACTOR’s performance of the WORK.
When the Company Representative’s nominee is a direct competitor of the
relevant CONTRACTOR, Subcontractor or Vendor in the sale, engineering,
or installation of systems similar to the FACILITIES, the Company
Representative may nominate an alternate.

1.5 SAUDI ARAMCO will complete the review of CONTRACTOR QMS

documents and personnel qualifications within thirty (30) calendar days of
receipt for each submittal. Where required by this Schedule Q, SAUDI
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ARAMCO will either approve, conditionally approve or reject

CONTRACTOR quality documents and personnel qualifications with
comments.

1.6 CONTRACTOR shall obtain SAUDI ARAMCO’s Approval of

CONTRACTOR's Project Quality Plan (PQP) before commencing
permanent WORK.

1.7 For any inspection or test required by SAUDI ARAMCO to be inspected or

witnessed by the Company Representative, including any quality activities
required by SAUDI ARAMCO standards, the applicable laws, rules or
regulations of Saudi Arabia, CONTRACTOR shall provide timely advance
notice to SAUDI ARAMCO of the said inspection or testing, hold or witness
points as specified in the approved PQP and Vendor Inspection and Test
Plans (ITP’s). Any part of the WORK or FACILITIES that is tested, closed
or covered without required SAUDI ARAMCO inspection or witnessing, and
without SAUDI ARAMCO’s written permission shall be opened or
uncovered for SAUDI ARAMCO’s inspection, witnessing of retesting, and
reclosed or recovered at CONTRACTOR's expense.

1.8 If any inspection or test performed at any time directly by SAUDI ARAMCO,
or by another party at the direction of SAUDI ARAMCO, reveals any Defect
in CONTRACTOR supplied Materials or other WORK, CONTRACTOR shall
promptly correct such Defects and bear the cost of replacement Materials,
rework, inspection and testing

1.9 Attachment V to this Schedule “Q” contains a summary of quality

deliverables that must be submitted by CONTRACTOR. CONTRACTOR
shall meet all requirements not included on the list, and must meet all listed
requirements not otherwise separately stipulated in this Contract.

1.10 In the event CONTRACTOR does not fulfil quality requirements of this
Contract, SAUDI ARAMCO may perform CONTRACTOR’s WORK in
accordance with Schedule “A”.

2. QUALITY MANAGEMENT SYSTEM REQUIREMENTS

CONTRACTOR shall, and shall ensure that all of its Subcontractors, including its
Vendors, plan and implement a Quality Management System (QMS) for this
Contract in accordance with:

(a) the 2015 version of ISO 9001 (Quality Management Systems - Requirements),
which is incorporated herein by reference; and

(b) this Schedule “Q”.

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Definitions contained in the 2015 version of ISO 9000, (Quality Management

Systems – Fundamentals and Vocabulary) shall apply. In case of any conflict
between ISO 9001 and this Schedule “Q”, the requirements of this Schedule “Q”
shall have precedence.

3. DOCUMENTATION REQUIREMENTS

3.1 CONTRACTOR shall plan, organize, control and execute all WORK in
accordance with the SAUDI ARAMCO approved CONTRACTOR Quality
Manual, PQP, ITP’s, work instructions and quality procedures.
CONTRACTOR’s PQP shall ensure that quality Personnel, resources
(facilities, Tools and Equipment), processes and activities, including those
of Subcontractors and Vendors are planned, coordinated, and effectively
completed in strict compliance with Contract requirements.

3.2 CONTRACTOR shall prepare and maintain a narrative, project specific

PQP including quality objectives, processes, resources, Inspection & Test
Plans (ITPs), work instructions and quality procedures covering, as
applicable, design, procurement, construction and Pre-Commissioning
quality activities and WORK in accordance with this Contract, SAEP-1154,
the 2018 version of ISO 10005 (Quality Management Systems - Guidelines
for Quality Plans) and the 2017 version of ISO 10006 (Quality Management
Systems - Guidelines for Quality Management in Projects).

CONTRACTOR shall submit the PQP to the Company Representative for

review and SAUDI ARAMCO Approval (a) within twenty-one (21) calendar
days of the Effective Date of this Contract and, subsequently, (b) within
seven (7) calendar days of each PQP proposed revision.

At minimum, CONTRACTOR’s PQP must meet the requirements listed

below:

3.2.1 CONTRACTOR PQP shall specify quality objectives, strategies,

processes and procedures for the preservation of WORK in
procurement, construction and Pre-Commissioning of the project, in
accordance with SAEP-385 and this Contract.

3.2.2 CONTRACTOR PQP, ITPs, quality procedures and work instructions,

shall specify quality resources and requirements for preservation of
project Materials through CONTRACTOR acceptance, packing,
shipping, receiving, storage, handling, fabrication, assembly,
installation and testing activities.

3.2.3 The CONTRACTOR PQP shall identify and adopt specific Vendor
material preservation quality procedures, work instructions and
recommendations as minimum quality requirements for each
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commodity, material type and equipment, to ensure Vendor

warranties are maintained and delivered to SAUDI ARAMCO. If
SAUDI ARAMCO preservation requirements exceed manufacturer
requirements, then SAUDI ARAMCO requirements shall also be
specified and adopted by CONTRACTOR, to the extent allowed
under Vendor warranties.

3.2.4 CONTRACTOR’s shall plan and specify Quality Management (QM)

and Quality Assurance (QA) of the Subcontractors and Vendors –
either by the integration and coverage of Subcontractor WORK
under CONTRACTOR’s QMS and Quality Manual, or by the adoption
of Subcontractor and Vendor ISO 9001 QMS’s and quality planning
through CONTRACTOR PQP references to Subcontractor -and
Vendor- issued Quality Manuals, PQPs, ITPs, instructions and
procedures. Subcontractor shall not commence any part of the
WORK until SAUDI ARAMCO has approved, and CONTRACTOR
has adopted, Subcontractor’s PQP.

3.2.5 CONTRACTOR’s PQP shall include engineering and design quality

procedures and work instructions for all engineering and design
WORK during all project phases.

3.2.6 CONTRACTOR shall submit Vendor ITPs to SAUDI ARAMCO for

review and Approval in accordance with Attachment III to this
Schedule “Q”, at least thirty (30) calendar days prior to the start of
WORK. CONTRACTOR shall not commence manufacturing and
fabrication of Materials prior to SAUDI ARAMCO Approval of the
applicable Vendor ITPs.

3.2.7 CONTRACTOR shall submit for SAUDI ARAMCO Approval, as part

of the PQP, construction and Pre-Commissioning ITPs, quality
procedures and work instructions for the WORK, in accordance with
Attachment IV to this Schedule “Q”. CONTRACTOR may adopt and
reference Saudi Aramco Typical Inspection and Test Plans (SATIP’s)
and associated Saudi Aramco Inspection Checklists (SAIC’s) and
Saudi Aramco Test Reports (SATR’s) forms in lieu of
CONTRACTOR developed ITPs and inspection procedures.
CONTRACTOR may customize SATIP’s, SAIC’s, SATR’s and Saudi
Aramco Pre-Commissioning forms (i.e., revised to suit the scope of
WORK) and submit as CONTRACTOR ITP’s and inspection
procedures, with Company Representative Approval.

3.2.8 CONTRACTOR’s PQP shall include a listing of all ITPs, SATIPs,

SAICs, SATRs, quality procedures and work instructions adopted for
execution of the WORK. When any part of the WORK is not
supported by SATIPs, SAICs or SATRs, CONTRACTOR shall
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prepare and submit, as part of PQP, ITPs and supporting quality

documents for SAUDI ARAMCO Approval at least thirty (30)
calendar days prior to commencement of related WORK activities.

3.3 CONTRACTOR shall timely revise the PQP and related quality documents
as needed to cover the Scope of Work and reflect any significant changes
identified by CONTRACTOR or SAUDI ARAMCO.

3.4 CONTRACTOR controlled current copies of the PQP, Quality Manuals,

related Quality Plans and all referenced documentation shall be available
for SAUDI ARAMCO use at all WORK Sites. QMS reference documents
include all those contained in Contract, quality manuals, plans, drawings,
specifications, instructions and procedures for the inspection and testing of
FACILITIES, systems and Materials to be fabricated or constructed at the
applicable WORK Site.

4. MANAGEMENT RESPONSIBILITY

4.1 CONTRACTOR Top Management shall demonstrate strong leadership and

commitment to high quality WORK at the project level by focusing on SAUDI
ARAMCO requirements and satisfaction in accordance with the 2015
version of ISO 9001 Leadership requirements and this Contract.

4.2 CONTRACTOR Top Management shall review the project specific QMS
every six (6) calendar months to ensure that the system is suitable,
adequate and effective. Top Management reviews shall address the items
listed in Paragraphs 7.1.1 and 7.4 of this Schedule “Q”. Top Management
reviews shall be scheduled events, included in the quality audit schedule
approved by the Company Representative, as provided in Paragraph 7.3.2
of this Schedule “Q”.

4.3 Within two (2) calendar weeks of the scheduled review date,
CONTRACTOR shall report in writing to the Company Representative on
results and recommended actions from Top Management Review.
Changes to the QMS that result from CONTRACTOR Top Management
reviews shall be incorporated in the PQP, with Approval of the Company
Representative.

5. RESOURCE MANAGEMENT

5.1 CONTRACTOR shall provide qualified resources to implement, maintain

and improve the QMS as set forth in this Contract and the approved PQP.
For all activities, CONTRACTOR shall deploy sufficient CONTRACTOR
Quality Personnel prior to the start of the applicable WORK. At minimum,
CONTRACTOR shall deploy the CONTRACTOR Quality Personnel
specified in Attachment VI of this Schedule “Q”. Selection of all
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CONTRACTOR Quality Personnel shall be subject to the Approval of the

Company Representative.

5.2 In addition to and not in substitution of the requirements of Schedules “A”

and “B” concerning Key Personnel:

5.2.1 When specified in Attachment VI of this Schedule “Q”,

CONTRACTOR shall deploy the SAUDI ARAMCO Approved QA
Manager within seven (7) calendar days of the Effective Date of this
Contract. The Approved QA Manager shall be assigned to the
WORK through Project Completion.

5.2.2 When specified in Attachment VI of this Schedule “Q”,

CONTRACTOR shall deploy the SAUDI ARAMCO Approved Quality
Control (QC) Manager at least thirty (30) calendar days prior to
CONTRACTOR’s request to SAUDI ARAMCO to issue the Notice to
Proceed or the start of fabrication (whichever date is earliest). The
Approved QC Manager shall be assigned to the WORK through
Project Completion.

5.2.3 When specified in Attachment VI of this Schedule “Q”,

CONTRACTOR shall deploy the SAUDI ARAMCO Approved
Procurement QC Supervisor for this Contract within thirty (30)
calendar days of the Effective Date. The Approved Procurement QC
Supervision shall be assigned to the WORK through Project
Completion.

5.3 All CONTRACTOR Quality Personnel assigned to the WORK, including,

without limitation, Third-Party agency and Non-Destructive Testing NDT
Service Provider personnel, shall meet the minimum qualification
requirements specified in Attachment I to this Schedule “Q” and shall be
fully competent to perform their duties.

5.4 CONTRACTOR shall review, verify and submit legible resumes, certificates
and credentials for all proposed CONTRACTOR Quality Personnel to
SAUDI ARAMCO, for review and Approval at least thirty (30) calendar days
prior to the start of WORK for each individual. SAUDI ARAMCO shall have
the right to interview and/or test all proposed personnel. Without limiting
the application of Paragraph 3.4 of Schedule “A”, SAUDI ARAMCO shall
have the right to reject CONTRACTOR quality Personnel that do not comply
with the requirements in Attachment I or have demonstrated poor work
performance to SAUDI ARAMCO.

5.5 If the WORK includes welding and Non-Destructive Testing (NDT) and
exceeds five hundred (500) groove -or butt- weld joints, CONTRACTOR
shall deploy a SAUDI ARAMCO Approved NDT Coordinator at least thirty
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(30) calendar days prior to the start of Work Site welding. The NDT
Coordinator’s principal duties and responsibilities shall be the
administration and coordination of Work Site NDT Service Providers and
activities. When planned and approved by SAUDI ARAMCO, this individual
may perform other quality functions on the project, provided those functions
do not interfere with the coordination of NDT activities.

5.6 CONTRACTOR may subcontract inspection and testing services, subject to

SAUDI ARAMCO review and written approval in accordance with Schedule
“A”, this Schedule “Q” and CONTRACTOR’s PQP.

5.7 Except as otherwise explicitly provided in this Schedule “Q”,

CONTRACTOR Quality Personnel, including Third-Party and NDT Service
Provider quality personnel, shall be dedicated to the quality functions and
activities described in this Schedule “Q” and shall perform no other WORK
or function.

5.8 CONTRACTOR Quality Personnel shall have well defined roles and
responsibilities, including sufficient authority and organizational freedom to
identify Nonconformities, Defects, and quality problems, report and escalate
nonconformities, and initiate corrective actions. During all phases of the
WORK, CONTRACTOR Quality Personnel shall functionally report to the
CONTRACTOR QA Manager or QC Manager.

5.9 Within thirty (30) calendar days of SAUDI ARAMCO’s issuance of the Notice
to Proceed, CONTRACTOR shall submit to the Company Representative a
roster of all CONTRACTOR Quality Personnel, sorted by discipline and
position, including personnel identified to be:

● Mobilized in the next sixty (60) calendar days

● Demobilized in the next sixty (60) calendar days

The roster shall be routinely updated and resubmitted as an attachment to

the monthly Quality Management Reports (QMR’s).

5.10 CONTRACTOR shall include and maintain in the PQP current organization
chart(s) clearly showing assignments of quality Personnel including:

5.12.1 All planned and actual CONTRACTOR Design Phase personnel in

accordance with this Contract.

5.12.2 All planned and actual CONTRACTOR, Third-Party and NDT

Service Provider quality personnel for Procurement and
Construction Phases of this project in accordance with Attachment
VI of this Schedule “Q”.

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5.12.3 Reporting relationships from each CONTRACTOR designer,

engineer, inspector and technician; through to the level above
CONTRACTOR Project Manager and QA Manager for this
Contract.

5.12.4 Internal and external lines of communication.

5.12.5 Interfaces between SAUDI ARAMCO, CONTRACTOR, Vendors,

and third-parties.

5.12.6 Mobilization and demobilization dates for all planned

CONTRACTOR quality personnel.

5.11 CONTRACTOR planned and actual staffing levels shall comply with this
Contract. Any proposed reduction from the required levels shall be
approved in advance, in writing by the Company Representative.

5.12 CONTRACTOR shall anticipate, plan and make all changes required due
to vacations, illness, temporary assignments, emergency leave,
resignations or other reasons as necessary to maintain required coverage
of CONTRACTOR Quality Personnel. CONTRACTOR shall notify the
Company Representative of all planned quality personnel changes at least
thirty (30) calendar days in advance. CONTRACTOR shall notify in writing
the Company Representative of unplanned personnel absences and
changes within twenty-four (24) hours. CONTRACTOR shall deploy SAUDI
ARAMCO Approved replacement quality Personnel within seven (7)
calendar days of each unplanned absence.

5.13 CONTRACTOR shall develop, implement and record results from a

quarterly training program in line with the ISO 9001 Competence
requirements, and addressing project quality requirements to
CONTRACTOR Personnel.

6. PROJECT REALIZATION / EXECUTION

6.1 Design Phase Quality Activities

6.1.1 CONTRACTOR shall comply with Design Phase requirements of

the Approved PQP and this Schedule “Q”.

6.1.2 CONTRACTOR engineering and design resources shall be

planned, scheduled and deployed in sufficient numbers to support
timely QA and QC of WORK activities such as QC discipline
checking, QC discipline engineer review, QC inter-discipline review,
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off-project engineering staff QA review, quality staff QA review,

SAUDI ARAMCO review, Job Site engineering support and change
management revisions to initial and final deliverables.
CONTRACTOR design phase manpower organization and
planning shall be submitted to SAUDI ARAMCO for review and
Approval as part of the PQP and QMR.

6.1.3 CONTRACTOR engineering and design for each single discipline

shall be initially drafted, QC checked and corrected for quality prior
to internal discipline engineer and interdiscipline team review.
Planning and evidence of single discipline QC activity shall be
maintained for auditing and SAUDI ARAMCO review.

6.1.4 CONTRACTOR engineering and design for each single discipline

shall be internally QC-reviewed and corrected for quality by a
qualified discipline engineer prior to internal interdiscipline team
review. Planning and evidence of discipline engineer QC activity
shall be maintained for auditing and SAUDI ARAMCO review.

6.1.5 CONTRACTOR engineering and design quality shall be controlled

through coordination with, and QC review by, Vendors and other
related design agencies on WORK interface point, prior to SAUDI
ARAMCO review. Planning and evidence of external review QC
activities shall be maintained for auditing and SAUDI ARAMCO
review.

6.1.6 CONTRACTOR engineering and design quality shall be assured

through internal, on-project interdiscipline team QC review, off-
project Engineering Staff QA review and quality staff QA review
and audits, prior to SAUDI ARAMCO review. Planning and
evidence of internal QA/QC review and assessment activities shall
be maintained for auditing and SAUDI ARAMCO review.

6.1.7 CONTRACTOR shall plan and perform internal QA reviews and

assessments at appropriate stages during the Design Phase.
CONTRACTOR shall notify the Company Representative two (2)
calendar weeks prior to the start of any internal reviews and
assessments listed in Paragraph 6.1.8. As a minimum, design
reviews and assessments shall be planned and completed prior to
SAUDI ARAMCO design reviews specified in this Contract.
CONTRACTOR shall maintain records of CONTRACTOR
engineering and design reviews and assessments in accordance
with the PQP; including solicitation, recording and resolution of all
identified comments and issues.

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6.1.8 CONTRACTOR shall plan and implement engineering and design

changes with quality, to ensure design output requirements have
fully satisfied design input requirements through the project
lifecycle. Proposed changes from any party shall be reviewed,
approved and certified by the designated Engineer of Record prior
to issue. CONTRACTOR shall maintain traceable records of all
engineering and design change requests, change notices, issued
revisions (e.g., issued as built) and related quality activities.

6.1.9 CONTRACTOR shall use Risk Based Inspection (RBI)

methodology to evaluate and assign an appropriate level of risk
(i.e., critical, high, moderate or low risk) to each asset, process
system and facility within scope of WORK. The risk level shall be
identified and assigned based on SAUDI ARAMCO mandatory
engineering requirements specified in SAEP-301, Contract
requirements, in-service operations and failure impact on facility
and process system safety, quality, cost and schedule.
CONTRACTOR shall submit a Risk Register with schedules and
lists of assets, systems and facilities with assigned risk levels for
SAUDI ARAMCO review and Approval as part of the PQP.
CONTRACTOR shall plan, closely monitor and control engineering
and design quality for critical and high risk scope of WORK, to
ensure FACILITY safety and reliability, and minimize rework.
Assigned risk levels shall be reviewed and revised on a six (6)
month schedule, based on changes in scope of WORK,
engineering standards, manufacturing materials and methods; and
issue of technical alerts and major lessons learned.

6.1.10 CONTRACTOR shall timely plan, conduct and resolve SAUDI

ARAMCO technical and quality review of CONTRACTOR
engineering and design deliverables and changes in accordance
with SAEP-303 and this Contract.

6.1.11 CONTRACTOR shall timely communicate and collaborate with

SAUDI ARAMCO on design phase technical issues and quality
issues using SAUDI ARAMCO information technology tools and
automation systems such as Enterprise Project Management
(EPM) and eReview, as specified under this Contract.

6.2 Procurement Phase Quality Activities

CONTRACTOR, specifically including all Subcontractors and Vendors,

shall comply with Procurement Phase requirements of the approved
CONTRACTOR PQP and Attachment III of this Schedule “Q”.

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6.3 Third-Party and NDT Inspection and Test Reports

6.3.1 In all phases of this Contract, Third-Party Testing Laboratories,

Testing Agencies, Inspection Agencies and all NDT Service
Providers shall be directed and required by the CONTRACTOR to
prepare and simultaneously submit identical, original reports of all
inspection and testing WORK to (a) the relevant SAUDI ARAMCO
Inspection Department Representative, (b) the CONTRACTOR QA
Manager and (c) the relevant In-Kingdom Affiliated Third-Party /
Agency / NDT office, QA Manager.

6.3.2 All Third-Party and NDT original reports shall include the printed
names, identification numbers, credential numbers, calendar
date(s) and handwritten, wet ink signatures for all Third-Party and
NDT personnel directly involved in the reported inspection, testing,
review and interpretation WORK.

6.3.3 All Third-Party and NDT original reports shall be legible, uniquely
identified, registered, controlled and traceable to the specific scope
of WORK inspected, tested and reported. All original reports shall
be cross-indexed and traceable to the CONTRACTOR, Third-Party
or NDT personnel involved in the reported activities.

6.3.4 CONTRACTOR witness, review, interpretation and approval of

Third-Party and NDT activities shall be indicated by legible printed
or stamped names, identification numbers, credential numbers,
calendar dates(s) with handwritten, wet ink signatures by
CONTRACTOR Personnel on the original Third-Party and NDT
reports.

6.3.5 Original reports held by CONTRACTOR Third-Parties, Agencies,

NDT Service Providers and SAUDI ARAMCO Inspection
Department Representatives shall be secured and retained
throughout the duration of the project, for SAUDI ARAMCO review,
audit or assessment as needed.

6.3.6 CONTRACTOR shall maintain records of all SAUDI ARAMCO

review, correspondence and quality records for Third-Party and
NDT reporting, as evidence of CONTRACTOR compliance with the
requirements of this Schedule “Q”.
6.3.7 Mechanical Completion of WORK shall not be considered achieved
by CONTRACTOR until all requirements of this Schedule “Q” have
been completed by CONTRACTOR, and accepted by SAUDI
ARAMCO in writing.

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6.3.8 Third-Party and NDT Service Provider reporting directly to SAUDI

ARAMCO shall not relieve CONTRACTOR from Schedule “B” and
Schedule “Q” requirements in this Contract.

6.4 Construction Phase Quality Activities

6.4.1 CONTRACTOR, specifically including all Subcontractors and

Vendors, shall comply with Construction and Pre-Commissioning
requirements of the Approved CONTRACTOR PQP and
Attachment IV to this Schedule “Q”.

6.4.2 Prior to completion of the WORK, CONTRACTOR shall plan,

perform and report all inspection and testing required by this
Contract, to ensure completion of all construction and Pre-
Commissioning WORK activities with quality; and to identify, report
and correct any nonconformities, defects, , and omissions . A copy
of results and status on WORK nonconformities, defects, and
omissions shall be submitted to the Company Representative each
week until SAUDI ARAMCO acceptance of the applicable WORK
scope.

6.4.3 CONTRACTOR shall timely communicate and collaborate with

SAUDI ARAMCO on construction and Pre-Commissioning quality;
planning and management, reporting, QA/QC activities, technical
issues and quality issues using SAUDI ARAMCO information
technology tools and automation systems such as Enterprise
Project Management (EPM), eReview and Quality Management
Information System (QMIS), as specified under this Contract.
Quality items include CONTRACTOR requests for SAUDI
ARAMCO review, inspection or testing (RFI), CONTRACTOR
resolution of review, inspection and testing failures (e.g., SAUDI
ARAMCO rejected RFI) and CONTRACTOR resolution of SAUDI
ARAMCO logbook entries (LBE).

6.4.4 CONTRACTOR shall continuously monitor SAUDI ARAMCO

communication tools and automation systems and respond to all
logbook entries within twenty-four (24) hours of the LBE date and
time. CONTRACTOR shall respond to rejected or returned RFIs
within fourty-eight (48) hours of the scheduled inspection date and
time.

7. MEASUREMENT, ANALYSIS AND IMPROVEMENT

7.1 General
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7.1.1 CONTRACTOR shall include in the PQP, as part of planning for

measuring, monitoring, analysis and improvement of
CONTRACTOR project execution processes, how the plan-do-
check-adjust (PDCA) cycle is driven without end on this project in
accordance with the 2015 version of ISO 9001 requirements for
Performance Evaluation. As a minimum, the plan shall address
interaction of the following:
▪ Customer satisfaction
▪ Quality policy and objectives
▪ Internal and external resources
▪ Quality Management (QM) processes & procedures
▪ Quality Assurance (QA) processes & procedures
▪ Quality Control (QC) processes & procedures
▪ Internal and external audits
▪ Internal and external reports of Defects & nonconformities
▪ Repeated Defects and violations
▪ Internal and external process performance measurements
▪ Data analysis
▪ Management reviews
▪ Corrective actions
▪ Risks to achieving quality
▪ Opportunities to improve quality
▪ other improvement activities (Attachment VI, Paragraph 3)

7.2 Customer Satisfaction

7.2.1 CONTRACTOR shall evaluate, analyze, report, monitor and

improve the degree of SAUDI ARAMCO’s satisfaction through
quarterly surveys, reporting, meetings and evaluation of
CONTRACTOR and SAUDI ARAMCO performance
measurements, quality audits, assessments, Nonconformance
Reports (NCR), Inspection Department logbook entries (LBE) and
rejected Requests For Inspection (RFI).

7.3 Internal Audits of Quality Management

7.3.1 CONTRACTOR shall plan and conduct Internal Audits in

accordance with ISO 19011 guidelines; covering all WORK Phases,
and Subcontracts for design, procurement or construction with a
duration of three (3) calendar months or longer. Internal Audits
shall fully address CONTRACTOR QMS; implementation,
maintenance and compliance with quality processes and

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requirements specified in the SAUDI ARAMCO approved

CONTRACTOR PQP, this Contract and the 2015 version of ISO
9001. Internal Audits shall be planned and conducted on each
Subcontractor or Vendor QMS and PQP that is adopted by
reference or attachment to the SAUDI ARAMCO approved
CONTRACTOR PQP.

7.3.2 CONTRACTOR shall submit an Internal Audit schedule to the

Company Representative for review and Approval within twenty-
one (21) calendar days from the Effective Date of this Contract.
Internal Audits shall be planned and carried out at fifteen percent
(15%) and sixty percent (60%) completion of WORK in any project
phase with a planned duration of six (6) to twelve (12) calendar
months. At a minimum, one Internal Audit shall be planned and
conducted at fifteen percent (15%) completion of WORK in any
project phase or contract with a planned duration of three (3) to six
(6) calendar months. For any project phase with a duration of
twelve (12) calendar months or longer, Internal Audits shall be
conducted at fifteen percent (15%) completion, sixty percent (60%)
completion and repeated on an annual basis until completed.
CONTRACTOR audits may be rescheduled only with concurrence
of the Company Representative.

7.3.3 All CONTRACTOR Internal Audits shall be executed by SAUDI

ARAMCO Approved quality system auditors which are qualified in
accordance with Attachment I of this Schedule “Q”. Auditors shall
be objective and impartial; and shall not be directly responsible for
the project WORK, QMS and PQP being audited. Auditors shall
not be employees of any Third-Party agency already affiliated with
the project WORK through CONTRACTOR or SAUDI ARAMCO.

7.3.4 CONTRACTOR shall investigate root causes and initiate corrective

actions for Defects and Nonconformities identified in each Internal
Audit. CONTRACTOR shall verify and report implementation and
closeout of corrective actions prior to the next scheduled Internal
Audit.

7.3.5 CONTRACTOR shall submit to the Company Representative a

copy of each Internal Audit report within twenty-one (21) calendar
days of the audit closing meeting date.

7.3.6 The Company Representative and predesignated nominees shall

be invited to participate in all CONTRACTOR Internal Audits.
CONTRACTOR audit notifications and agenda shall be submitted
to the Company Representative at least fourteen (14) calendar
days prior to each Internal Audit start date.
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7.3.7 SAUDI ARAMCO shall be entitled to schedule and conduct QMS

audits and assessments of CONTRACTOR quality functions and
obligations as outlined in this Schedule “Q”. SAUDI ARAMCO shall
provide notice in writing to CONTRACTOR at least twenty-eight (28)
calendar days prior to any planned audit or assessment.

7.4 Monitoring and Measuring of Quality Work Processes

7.4.1 CONTRACTOR shall continuously monitor and measure

CONTRACTOR WORK processes to ensure FACLITIES safety
and quality. The CONTRACTOR PQP shall include suitable
measurement methods and tools to analyze and evaluate process
performance against quality objectives and planned results. As a
minimum, CONTRACTOR shall evaluate and report the following
quality processes as applicable to the WORK:
 Engineering, Design and Procurement QA / QC
 Engineering and Design Changes – SAUDI ARAMCO
Notices / Requests
 Engineering and Design Changes – CONTRACTOR
 Internal Lessons Learned – Implementation / Collection
 External Lessons Learned – Implementation / Collection
 Design Office Notices / Field Requests
 Material Receiving
 Preservation of Materials
 Concrete Operations
 Equipment Installation
 Welding Operations
 Coating Operations
 Nondestructive Testing of Welding and Materials
 Hydrostatic and Pneumatic Pressure Testing
 Construction and Pre-Commissioning QA / QC
 Mechanical Completion and Safe Energization

7.5 Control of Nonconformance

7.5.1 CONTRACTOR PQP shall include quality processes and

procedures to prevent inadvertent use of design and procurement
documents, materials, parts, components, services or
workmanship not conforming to the requirements of this Contract.
CONTRACTOR PQP shall require CONTRACTOR identification,
review, report and documentation of all Defects, nonconformities
and corrective actions.

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7.5.2 CONTRACTOR shall identify, report and control all

CONTRACTOR supplied services, materials and equipment that
do not conform to Contract requirements as indicated in
Paragraphs 7.5.3 through 7.5.7 below. CONTRACTOR shall
establish and maintain PQP processes and procedures to
quarantine and restrict further processing or installation of
suspected Defects, pending review and decision on disposition.
CONTRACTOR shall label, segregate and relocate all suspect and
nonconforming Materials and equipment to a secured, clearly
designated quarantine site.

7.5.3 CONTRACTOR, specifically including Subcontractors, Vendors,

shall timely document and report all Defects and nonconformities
to Contract requirements, CONTRACTOR PQP, ITPs, and quality
processes and procedures. CONTRACTOR shall submit to SAUDI
ARAMCO reports of all recorded Nonconformities or defects within
forty-eight (48) hours of the issue date.

7.5.4 CONTRACTOR shall timely investigate Nonconformities or defects,

determine root causes, plan and report SAUDI ARAMCO agreed
corrective actions to prevent recurrence of Defects and
nonconformities within seven (7) calendar days of the issue date.
CONTRACTOR reported action planning shall include a SAUDI
ARAMCO Agreed Completion Date (ACD) for each action item.

7.5.5 CONTRACTOR shall maintain and timely submit to SAUDI

ARAMCO a detailed registry of all Defects and nonconformities (i.e.,
a summary of CONTRACTOR current activities and status on
CONTRACTOR issued Internal NCRs, Discrepancy Reports,
punchlist and Exception Items; as well as SAUDI ARAMCO issued
NCRs, logbook entries, Exception Items, etc.). CONTRACTOR
shall submit the registry to SAUDI ARAMCO on a weekly basis, for
discussion in regular project progress and quality meetings.

7.5.6 CONTRACTOR shall formally respond to all SAUDI ARAMCO

notifications of Defects and nonconformities with initial root causes,
proposed corrective actions and ACD’s within forty-eight (48) hours
of receipt date and time. SAUDI ARAMCO notifications of Defects
include, but are not limited to audit reports, assessment reports,
Corrective Action Requests (CAR), NCR’s, Inspection Department
logbook entries (LBE) and returned or rejected RFI’s.

7.5.7 CONTRACTOR shall rework, repair, re-inspect and retest all

Defects in accordance with Schedule “G” of this Contract and
SAUDI ARAMCO Approved CONTRACTOR quality and work
procedures for rework and repair of WORK. CONTRACTOR shall
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timely issue hold point RFI’s to Company Representative for

SAUDI ARAMCO review, inspection, witness of testing and
Approval of actions taken prior to final disposition and proposed
closure of any SAUDI ARAMCO or CONTRACTOR reported
Defect.

7.5.8 SAUDI ARAMCO escalation process for unresolved Contract

quality issues, including delinquent quality actions, reports and
notifications shall be in accordance with SAEP-381.

7.6 Waivers

7.6.1 CONTRACTOR, Vendors and manufacturers shall not eliminate or

waive the requirements of any CONTRACTOR PQP or ITP
previously Approved by the Company Representative without the
express written consent of the Company Representative.

7.6.2 CONTRACTOR shall maintain a detailed log of all SAUDI

ARAMCO approved SAEP-302 waivers of SAUDI ARAMCO
SAEP-301 mandatory engineering standards applicable to the
WORK, including waivers issued by SAUDI ARAMCO on, before
and after the Contract Effective Date. This log shall identify and
describe each applicable SAEP-302 waiver by identification
number, date of issue, review and Approval status, the standard
document and section reference number to be waived, and a brief
description of the applicable scope of WORK (e.g., facility, process
system, purchase order, equipment or construction process).

7.7 Analysis and Evaluation of Data – Quality Management Report (QMR)

CONTRACTOR shall prepare and submit a monthly QMR in a format

acceptable to SAUDI ARAMCO to demonstrate CONTRACTOR’s effective
implementation of the approved QMS and PQP(s). The report shall include
the following items as a minimum:

7.7.1 General Items:

a) Current month WORK status with planned and actual

percentages of completion for each WORK phase (design,
procurement, and construction) and the overall WORK
progress.

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b) Current schedule of CONTRACTOR Management Reviews

and Internal Audits with actual status; planned and completed
to date, in progress, and planned for the next month.

c) Current registry of pending, open action items from all

notifications and reports of Defects, nonconformities, audits
and Management Reviews.

d) Current roster of all CONTRACTOR Quality Personnel

positions, with names and identification numbers for: filled
planned positions (with actual dates of deployment), unfilled
planned positions (with estimated mobilization dates) and
unplanned positions (with actual dates of deployment); sorted
by company, discipline and position title.

e) Current log with status of SAUDI ARAMCO SAEP-302

waivers requested by CONTRACTOR.

7.7.2 Design Phase, objective data evaluation and analysis of

engineering and design quality for:

a) CONTRACTOR review of Preliminary Design, front-end

engineering (FEED) or detailed design as received from
SAUDI ARAMCO. Performance measurement using number
of actual documents received and reviewed; number of timely
reported and resolved design errors, standards violations,
design omissions, design optimizations / cost savings,
technical queries and lessons learned.

b) CONTRACTOR engineering and design deliverables, internal

planning and development. Performance measurements to
identify and prevent issue of Defects; design errors, standards
violations and design omissions. Measurements and trends
shall address plan and actual data for resources, number of
deliverables (workload) in drafting, checking, discipline review,
interdiscipline review, QA review and rework.

c) CONTRACTOR engineering and design deliverables as

issued and implemented. Performance measurement of
results from plan and actual data for Manufacturer/Third-Party
reviews, design interface point reviews, SAUDI ARAMCO
reviews; CONTRACTOR Engineering Change Notices, Field
Change Requests / Notices, design revision control and
design change management.

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d) Schedule of SAUDI ARAMCO design review packages with

results; planned and performed to date, in progress, and
planned for the next month.

e) Current roster of all CONTRACTOR engineering and design

personnel positions, with names and identification numbers
for: filled planned positions (with actual dates of deployment),
unfilled planned positions (with estimated mobilization dates)
and unplanned positions (with actual dates of deployment);
sorted by company, discipline and position title.

f) Current listing of critical risk and high risk WORK assets,

process systems and facilities.

7.7.3 Procurement Phase, objective evaluation and analysis of

procurement quality for:

a) CONTRACTOR review of novated purchase orders and

specifications for Materials, as received from SAUDI
ARAMCO. Performance measurement using number of
actual documents received and reviewed; number of timely
reported and resolved Nonconformities and defects, design
errors, standards violations, design omissions, design
optimizations / cost savings, technical queries and lessons
learned.

b) CONTRACTOR procurement deliverables, internal planning

and development. Performance measurement to prevent
issue of procurement Defects; errors, misclassification,
standards violations, procurement omissions and commercial
/ warranty issues. Measurement shall address plan and
actual data for Procurement Phase resources and number of
deliverables (workload) in drafting, QC checking, QC
interdiscipline review, QA review, and rework.

c) CONTRACTOR procurement deliverables, as issued or

purchased. Performance measurement of results from
Vendor, Third-Party reviews, SAUDI ARAMCO reviews,
CONTRACTOR revision control and change management.

d) Vendor surveys with results; planned and performed to date,

in progress, and planned for the next month.

e) Vendor Pre-Inspection Meetings with results; planned and

performed to date, in progress, and planned for the next
month.
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f) Vendor inspections with results; planned and performed to

date, in progress, and planned for the next month.

g) Current listing of Material Requisitions and Purchase Orders

with assigned risk levels.

h) Schedule of CONTRACTOR focused assessments of

Vendors; planned and performed to date, in progress, and
planned for the next month.

7.7.4 Construction Phase, objective evaluation and analysis of

construction quality for:

a) CONTRACTOR quality resources and deliverables, internal

planning and development. Schedule of planned and actual
CONTRACTOR Tools and Equipment, instructions and
quality procedures for each workfront and risk level; issued,
reviewed, approved, personnel trained and presented prior to
each workfront start date. Performance measurement to
prevent Defects and schedule delays; issue of errors, PQP
violations, standards violations and scope of WORK
omissions. Measurement shall address plan and actual data
for Construction Phase resources and number of deliverables
(workload) in drafting, QC checking, QC interdiscipline review,
QA review, and rework.

b) CONTRACTOR Tools and Equipment used or intended for

quality purposes, CONTRACTOR Quality Personnel and PQP
documentation, as issued and implemented for each
workfront. Performance measurement of results from
CONTRACTOR shipping, handling, lifting, storage,
preservation, fabrication, assembly, installation, inspection
and testing; SAUDI ARAMCO review, assessment,
surveillance, inspection, testing and acceptance;
CONTRACTOR revision control and change management.

c) CONTRACTOR listing and disposition of all suspect,

defective or rejected Material and equipment received at Job
Site.

d) Welding / NDT backlog and Rejection Rate as reported in

accordance with SAEP-1160. A chart showing the historical
performance during the WORK shall be included.

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e) Preservation backlog and Failure Rate as reported in

accordance with SAEP-385. A chart showing the historical
performance during the WORK shall be included.

f) Current listing of critical risk and high risk construction quality

activities.

g) Schedule of CONTRACTOR focused assessments on

CONTRACTOR quality activities; planned and performed to
date, in progress, and planned for the next month.

7.7.5 Quality Process Improvement Activities

The report shall describe CONTRACTOR activities during the

month to continually improve its quality processes and procedures,
correct and eliminate Defects and nonconformities, reduce risks,
prevent potential problems and identify opportunities to improve the
QMS and customer satisfaction. It shall include data trend analysis
for processes and measurements identified in Paragraphs 7.1.1
and 7.4 above.

7.7.6 Attachments

a) Updated CONTRACTOR Quality Personnel roster.

7.8 Continual Improvement

7.8.1 CONTRACTOR quality processes and procedures shall

proactively identify, evaluate, select, implement and report all
opportunities for improvement through leadership, risk based
thinking, management review, and corrective actions for
nonconformance, lessons learned, customer satisfaction, PDCA
continual improvement, breakthrough changes, innovation and
reorganization.

END OF SCHEDULE Q

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