PEC LTD.

21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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PROJECT EXECUTION PLAN

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PROJECT EXECUTION PLAN

0 Rev

12/01/11 Date

For Tender Description Prepared by: Checked by: Approved by:

CONTENTS

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
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1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Project Understanding Overview Of Execution Plan Project Organization Engineering Support Procurement Plan Subcontracting Strategy Construction Strategy Quality Assurance Project Control

10.0 Communications
11.0

Scope of Work Assumptions and Clarification

1.0 PROJECT UNDERSTANDING

Lanxess Butyl Pte Ltd is investing in a new large-scale butyl rubber plant to manufacture

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 synthetic Butyl Rubber at Jurong Island, Singapore.

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The new plant comprises of the infrastructure / facilities and production units as follows: Site I-Plant Finishing Butyl Halogenation Unit is not included in this Project Execution Plan. 1.1 SCOPE OF SERVICES PEC is tendering for the delivering of Mechanical Works Site, I-Plant & Finishing scope which consists of equipment installation, piping fabrication and installation including pipe supports, scaffolding, painting, insulation works up to Mechanical Completion & Handover. 1.2 CRITICAL ACTIVITIES We have identified the following three (3) most critical work packages during the execution phase as follows: a) Derrick Flare System b) Off Gas Treatment (OGT) & Boiler Package c) Packaging System (PU-707) Based on the preliminary information provided by the vendor, we have provided a brief narrative of our proposed execution approach for the Derrick Flare System. Refer to Appendix 1 Installation of Derrick Flare System & Associated Utility Piping. Detailed Method Statement (MS) and Job Safety Analysis (JSA) will be developed in close consultation with CONSTRUCTION MANAGER during the execution phase. PEC will carry out a through review and discussion with CONSTRUCTION MANAGER on the vendor supplied information in the development of MS and JSA. Constructability review will be carried out early to establish and ensure the best method is deployed, with minimum disruption to other on going activities and without compromising safety. The same will be developed for Off Gas Treatment (OGT) & Boiler Package and Packing System (PU-707) once vendor information is made available to PEC during the execution phase. 1.3 PROJECT OBJECTIVES Consistent with our corporate HSSE policy, PEC is committed to Safety to ensure Nobody Gets Hurt with a zero tolerance policy in five (5) main categories as follows:

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 Zero Lost Time Injury Zero Fire Occurrence Zero Property Damage Zero Environmental Violation Zero Occupational Health Disease

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PEC maintains an auditable Safety Management System and all data is captured and recorded in our Safety Management Information System (SMIS). HSSE action plan will be developed incorporating CONSTRUCTION MANAGER requirements, emphasizing all accident prevention, security measures, health risk, environmental protection and loss control throughout the entire construction period. All our personnel involved in the project will go through the necessary or mandatory training requirements depending on job requirements. A training matrix will be developed to capture and record the training needs. We are committed to ensure that all construction methodology applied along with the competent workforce in the works execution will meet your expectation and the project will be delivered on schedule and within budget. 1.4 PROJECT MILESTONES Our proposal is based on a total duration of seventeen (17) months taking into considerations of the following key milestones:

Contract Award March 2011 Project Kick Off Meeting March 2011 Site Setting-Up & Construction of Temporary Facilities March 2011 Free Issued Material Delivery 31 March 2011 Start Shop Prefabrication 15 April 2011 Site Mobilization March 2011 Start Construction 25 march 2011 Mechanical Completion & Handover 31 July 2012

We have developed a preliminary schedule based on the information and key dates of civil and structural works completion and tentative equipment delivery dates. This schedule will be enhanced once more precise and firm dates are made available after contract is awarded. Refer to Appendix 2 Preliminary Schedule The enhanced project schedule will be prepared based on latest information provided by CONSTRUCTION MANAGER and taking into considerations of required resources in terms of manpower, construction equipment and logistic support for the execution phase.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

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2.0 OVERVIEW OF EXECUTION PLAN

The proposed execution plan is focused on ensuring that our project construction works meets your requirement and your Singapore Butyl Rubber Plant is completed successfully. To do this, we have considered the following: Understanding of CONSTRUCTION MANAGER expectations and project execution strategy Deployment of right resources in the leadership role Good logistics plan in place PEC knowledge of executing similar or more complex project works Leveraging on past experiences and lessons learnt from previous projects.

PEC Work Processes and Project Procedures will be used and customized if necessary to suit the requirement of this project. Availability and ability to secure construction equipment for project executions can be daunting. In PEC, we own a large fleet of construction equipment including 200-ton crane. These equipment can be deployed to the site once the site mobilization plan is prepared after contract award. We realize that the success of this project also lies in the subcontracting strategy since this Mechanical Subcontract requisition also involves other 3rd-party services. Ability to secure the commitment of 3rd-party services for the works can be a challenge. For the subcontracting works, we will leverage on past experiences and lessons learnt from recent projects, our subsidiary companies and alliance partners. Past project execution subcontracting strategy adopts breaking down the mechanical and piping subcontracts to smaller packages which involve more coordinating efforts on the part of the CONSTRUCTION MANAGER. This approach also creates a domino effect if the party involved in the project execution fails to deliver under the contractual obligations. It is on this basis of having experienced similar issues over the years that PEC has formulated strategies to form or acquire companies and forge alliances with reputable partners to provide a one-stop service to all our clients in Singapore. We believe our proposed subcontracting strategy will bring value to the project in terms of commitment, reliability and delivery.

3.0 PROJECT ORGANIZATION

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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We are fully committed to the success of your Singapore Butyl Rubber Plant at Jurong Island, Singapore. We are dedicated to the successful project construction execution of this project with due consideration of the key project challenges and specific requirements. The Singapore Butyl Plant project requires a highly experienced project team with strong process plant background and local project execution experience. Therefore, we have carefully selected our team members based on the following criteria: Understanding of your objectives and key project requirements High safety awareness in all aspect of the work Experience in project construction for process plant Possession of good technical knowledge Familiar with local requirements in project execution and construction

3.1 MANAGEMENT COMMITMENT The success of any project depends upon the level of commitment and priority established within the corporate organization. To ensure senior management involvement, we designate Project Sponsors for each of our projects. The Project Sponsor is responsible for providing an environment whereby the requests and demands flowing from the Client and our Project team can be tackled effectively and efficiently. We do recognize the importance of this project and our relationship. To reinforce our commitment, we nominate Mr. Teo Choon Meng, Associate Director, Projects as Project Sponsor. He will be your bridge to our corporate management and has ultimate responsibility to ensure key resources are available, your requirements are met and corporate support is provided when necessary. All our nominated resources will be drawn from our current strength in Singapore. Our team is available for mobilization upon contract award. 3.2 CORE PROJECT TEAM Our team, its organization and management as proposed will meet your requirement and provide a safe and cost effective project delivery in accordance with your project schedule. PEC Core Project Team consists of Project Manager, Site Manager, Site Superintendent, HSSE Manager, QA / QC Manager, Planning Engineer. The Project Manager has the overall responsibility for the project. He will be supported by various functional discipline staff.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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The resumes of key personnel of the proposed Project Team are appended herewith. Refer to Technical proposal Section 2 - Resumes

4.0 ENGINEERING SUPPORT

PEC Project Construction is supported by our Home Office Engineering team. The design of Vent Gas Duct, Waste Chute including preparation of cutting plan and ducting fabrication drawings and other shop drawings will be carried out by our Home Office Engineering team at 21, Shipyard Road. We have a full-fledged Engineering Office comprising of Process, Mechanical (Rotating & Static), Tankage, Piping, Civil, Structural, Electrical & Instrumentation including Permitting. Our Home Engineering Office is well-equipped with various design and engineering software as follows: General Drafting AutoCAD (Autodesk, Inc., USA) AutoCAD 2002 LT / 2006 AutoCAD 2000/2008 Microstation (Bentley Inc. Microstation SE/ V8.0 I/RAS B (Conversion Software) 3D Plant Design PDMS Version 12 (3D Plant Design Management System Cad Center, UK) Smart Plant 3D 2009 (3D Plant Design System, Intergraph Inc, USA) Smart Plant P&ID Smart Plant Instrumentation Smart Plant Basic Integrator Piping Drafting & Analysis Spool Gen (Alias Limited, UK) Version 4.11.3 I-Sketch (Alias Limited, UK) Version 2.5 CAESAR II Version 5 Steel Structural Drafting & Analysis Xsteel Version 12 (3D Modeling of Steel Structure) STAAD Pro 2005 (Research Engineers Inc., USA) Equipment Design & Analysis PV Elite 2005 Pressure Vessel Design Tank Version 2.5 Tankage Design

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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Request for ad-hoc engineering support in field construction works involving design of temporary supports; prepare sketches, design calculations and support in field engineering changes and engineering of small bore (below 1) piping including pipe supports can be promptly attended. Site visits will be arranged as necessary. The Home Office Engineering teams also support by means of technical evaluation of PEC procured materials. The Home Office Engineering teams also support the conversion of IDF files from the CONSTRUCTION MANAGERs PDS design into spoolgen isometric drawings, interface with Isoman, perform material take off and field weld identification of pipe spool. Isoman Isoman is a PEC developed Isometric Management Information System with excellent features in tracking and capturing of piping work progress as follows: It tracks piping work progress by capturing information such as weld joint, spools, pipe-support, bolting and block set. Captures piping project requirements, providing easy information access, controlling material requirements, monitoring work progress. The ability to track welders performance is critical to ensure that stringent quality controls meet CONSTRUCTION MANAGER expectation.

5.0 PROCUREMENT PLAN

Procurement, material tracking and expediting activities for PEC supplied materials will be carried out from our Home Office at 21 Shipyard Road. A procurement plan outlining all the required procurement activities will be prepared. The procurement plan will contain at least the following information: Description of Material Material Requisition No Approved Vendor Enquiry & Receipt Date Commercial & Technical Evaluation PO Issuance Inspection Delivery

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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A dedicated Buyer and Expeditor will be nominated to coordinate with both the Shop and Field Material Controller. The expediting function will confirm and monitor vendor compliance with the terms and conditions of the Purchase Order. The expeditor will coordinate and assist in the activities required to ensure timely delivery and material correctness besides providing an accurate and reliable order status to the project team. Any request for additional permanent material under PEC supply originating from shop and field request will be directed to Home Office for actions. PEC material procurement is limited to the following besides the required construction equipment, tools and consumables as follows: a) b) c) d) e) Material for ductworks. Structural material for pipe supports. Pipes, fittings and flanges for small bore piping below 1 Structural steel plates for spades. Temporary gaskets

Item a, b and c will be procured from CONSTRUCTION MANAGER approved sources i.e. approved country of origin and with valid mill certificates.

6.0 SUBCONTRACTING STRATEGY

PEC adopts a single focal point of responsibility thus reducing CONSTRUCTION MANAGER coordination efforts although the Mechanical Works Site, I-Plant & Finishing scope of work comprises of other works requiring 3rd Party services. In general, only PEC subsidiary companies and alliance partners will be engaged to support the entire spectrum of this subcontract works. Proposed subcontracting for various works and services are as follows:

Piping & Non-Critical Equip. Works Equipment Installation Works Painting Works Galvanizing Scaffolding Works Insulation Works Misc. Civil & Grouting NDE / NDT / PMI Chemical Cleaning

PEC Nippon Express EBT (*), FRP Progress, Super Galvanising Multi-height Scaffolding, Cape Major Insulation & Links (*), Austin Jack Enterprise, Sing Tec ACE, Millennium Cuestar

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 Torquing / Bolt Tensioning Tet-Alliance, Hydratight

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(*) Denotes PEC subsidiary The selection and engagement of 3rd party services is based on their current workload, availability and proven track records besides commercials.

7.0 CONSTRUCTION STRATEGY

Good teamwork and effective communications among all parties involved in the project is essential and pivotal to ensure process success. Regular meetings and team building sessions will create good understanding, conducive workplace and working relationship. These sessions should be promoted during the project execution phase. Our construction strategy is focus on ensuring that we work towards a common goal of achieving project success. To achieve this objective we will work closely with CONSTRUCTION MANAGER to:

Ensure all required resources for the project are deployed All major critical activities are carried timely and in accordance with specifications, requirement and project schedule. Prioritize and sequencing of all works taking into consideration of required work interface with others. Address and response to CONSTRUCTION MANAGER request promptly. Timely preparation of all applicable procedures, work plans and method statement. Actively participate in Constructability Review and ensure best option is adopted. Close coordination and working cohesively with other parties engaged by CONSTRUCTION MANAGER.

The subsequent sections provide a brief narrative and outline of major activities which form the basis of our construction strategy. 7.1 MATERIAL ISSUANCE / RECEIPT AND CONTROL All permanent materials shall be free issued to PEC. Good material management and control is crucial to ensure no disruption to the shop prefabrication activities and subsequent filed installation activities. To this end, we will appoint a dedicated Shop Material Controller to manage the shop prefabrication activities and a dedicated Field Material Controller for the field installation activities. Our Material Controller will be supported by QC / Inspection personnel. Upon receipt of free issued material from CONSTRUCTION MANAGER, checks for damage, correctness,

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 quality and verifications against mill certificates will be carried out.

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Any irregularities or discrepancies in quantities, damaged and rejection due to nonconformance and quality issued will be reported to CONSTRUCTION MANAGER. Refer to Technical proposal Section 9 Piping Material Control Procedure. 7.1.1 Fabrication Material Only 100% fully match material as per approved for construction / IFC isometrics drawings shall be issued. PEC will not accept partial material issuance due to late delivery and non availability of material in CONSTRUCTION MANAGER warehouse. Such practice of accepting partial material receipt will results in disruption to prefabrication activities and unnecessary double handling of pipe spools. We request that additional new material shall be issued for any revision, changes and required modifications to the prefabricated spools once the revised drawings are issued. Any sections of the prefabricated spools to be salvaged for use shall be communicated and required material issued for modifications must be made available. We prefer that new materials be issued for any major revisions to prefabricated spools to avoid unnecessary cutting, beveling and handling unless required modifications involve exotic material which are not readily available. Small bore valves and other in line item (below 1) which is usually classified as field erection material shall be issued along with other shop fabrication material in line with our strategy to maximize shop fabrication activities. 7.1.2 Field Material All required free-issued field erection / installation material shall be made readily available to PEC in accordance with the sequence, programme of works and project schedule. CONSTRUCTION MANAGER shall notify PEC of any incomplete material especially in line item e.g. valves and any specialty item so that temporary spools can be prepared upfront to avoid delay in field installation progress. PEC is responsible for the supply of temporary materials to facilitate piping installation works and temporary gaskets for hydro-testing. However, CONSTRUCTION MANAGER shall make provision for additional permanent gaskets due to removal of any in-line item, valves, etc. during flushing, reinstatement and pre-commissioning activities. 7.2 FABRICATION STRATEGY

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 Piping Fabrication will be carried out in our workshop at 6 Tuas Circuit View.

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Fabrication activities will be segregated in accordance with your Infrastructure / Facilities and Production Units. In short the segregation will be in four (4) main areas as follow: Site I-Plant Finishing Piperack It will be further segregated into sub-area during the execution phase. This will ensure systematic flow of pipe fabrication activities and subsequent field erection activities. The material control, shop fabrication (piping and pipe supports) painting, logistics arrangement will be closely coordinated to avoid any disruptions to the production process, mixing up and misplacing materials and prefabricated spools. Refer to Appendix 3 Material Flowchart for Shop Fabrication which outlines the work flow from receipt of material to delivery of prefabricated spools to site laydown area. Upon receipt of materials, checks will be carried out for damage, correctness and quality. All materials will be segregated between carbon steel, stainless steel, galvanized, Hastelloy / Monel. Material for steam piping requiring appointed Ministry of Manpower (MOM) representative verifications will also be segregated from the rest of the material. Area for fabrication between carbon steel and stainless steel materials will also be segregated including tools and consumables. Precaution will be taken to ensure no direct contact of carbon steel materials with stainless steel materials. Arrangement will be made with MOM appointed representative to perform material verifications against mill certificates and conduct visual inspections on fit up prior to fabrication including selection of joints for X-rays. Shop fabrication activities will commence once required inspection and requirements specified in the ITP including Quality Procedures, WPS, PQR and WQT is approved by CONSTRUCTION MANAGER. Our fabrication strategy is focus on ensuring smooth execution of subsequent field erection activities. To achieve this objective, we will adopt the following approach as follows: Maximize shop fabrication of piping

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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Maximize shop fabrication of pipe supports Single random length (6m) supplied for pipe rack piping will be welded to double random length (12m) Welding outlets e.g. weldolets, stubs with / without reinforcing pads, sockolets and threadolets for branch connections take off, vents , drains and instruments connections shall be welded in the shop. Precise identifications of field welds taking into considerations of final field fit up, constraints during shop painting, transportation and handling during field installation. Fabrication activities will be carried out based on approved IFC drawings and 100% fully matched materials receipt. Sequence and prioritize fabrication activities taken into considerations of CONSTRUCTION MANAGER programme of work, handover / completion dates of pipe rack, equipment delivery / receive on site, equipment requiring predressing and equipment installation schedule. Ensure all shop NDE/NDT, PMI and other required inspections are completed, signed off and no carrying over of unnecessary shop activities to the field. CONSTRUCTION MANAGER to nominate and deploy a full time QC Representative / Inspector at PEC workshop. Prefabricated spools are legibly tagged, ends capped, welded joints taped and paint system indicated to facilitate painting works.

All prefabricated spools will be inspected by PEC QC personnel along with inspection records. CONSTRUCTION MANAGER nominated representative will be notified for final inspection and release note signing off before it is transported to the painting shop. 7.3 SHOP HYDROTESTING We do not envisage any shop hydro-testing for prefabricated spools (flanged spool). However, PEC will perform shop hydro-testing for critical pipe spools provided field hydrotesting will result in incomplete draining and drying of critical process piping system where presence of water is prohibited and meeting critical dew point requirements is mandatory. 7.4 PIPE SUPPORTS Fabrication of pipe support will be carried out at the same venue as piping fabrication. The same approach will be adopted in terms of segregation of these support based on four (4) major areas and subsequent sub-area segregation. Pipe support fabrication shall be in accordance with piping fabrication programme of work. This is to ensure that required pipe supports are available on site during the launching and installation of field piping thus minimizing unnecessary temporary supports.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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Material take off exercise will be carried to establish the required bill of quantities of pipe support based on approved isometrics drawings and standard or special pipe supports drawings. Required material will be consolidated and handed to Procurement for actions. Material procurement for pipe support shall be from approved source and country of origin. PEC will seek CONSTRUCTION MANAGER approval for material substitution or alternative material source of supply should the required material specified in the specifications is not readily available in the market. All prefabricated pipe supports will be inspected by PEC QC personnel along with inspection records. CONSTRUCTION MANAGER nominated representative will be notified for final inspection and release note signing off before it is transported to the galvanizing shop. 7.5 PAINTING WORKS Prefabricated pipe spools and pipe supports will be delivered to designated painting or galvanizing shop. Pipe spools and pipe supports will be sorted and delivered in batches for required painting works in accordance to main area, sub-area and programme of works as per project schedule. Pipe spools will be fully painted except at welded joints before transportation to site laydown for launching and installation. Pipe supports will be fully galvanized in the shop. Any holdup in release of painted spools and galvanized pipe supports from the shop to the site can stall, disrupt the shop painting and also affect the progress of the upstream prefabrication work. There is no provision from PEC to allocate temporary laydown for prefabricated spool before and after painting works. Such provision can result in unnecessary double handling cost on labor and construction equipment besides rental costs for temporary storage. As such, a fulltime QC representative / Inspector shall be deployed by CONSTRUCTION MANAGER to ensure speedy release of painted pipe spools at our designated painting shop to the site laydown area. Inspection of paint work will be carried in the shop with records documented and PEC QC shall sign off these records. CONSTRUCTION MANAGER nominated representative will be notified for final inspection and release note signing off before it is transported to the designated site laydown area.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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0 7.6 SITE LAYDOWN & TEMPORARY FACILITIES

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PEC has no provision for temporary laydown of prefabricated painted spools to eliminate high double handling cost and temporary storage charges. Besides allocating area for the Site Temporary Facilities, CONSTRUCTION MANAGER shall made available adequate laydown area as follows for: Prefabricated painted piping spools Prefabricated galvanized pipe supports Storage for field erection material Storage for equipment, tools and consumables Workshop for site fabrication / modifications The Site Temporary Facilities will comprise of: PEC Site Office PEC Subsidiaries & Alliance Partners Office Refer to Appendix 4 Work Site Facilities showing layout of Laydown area and Site Temporary Facilities. 7.7 SCAFFOLDING PLAN Our scaffolding plan is developed based on mechanical and piping installation works without provision for other services not in PEC scope of work. However these erected scaffolds can be utilized by others at no cost provided no modifications are required. PEC will manage and coordinate all required scaffolding erections and requirements in accordance with the programme of work without compromising on safety. All scaffolds will be erected in accordance with approved standard and in full compliance with MOM guidelines. PE certifications for non-standard and special scaffolding requirements are included. In short, our scaffolding plans and requirements cover the following: Pre-Dressed Equipment Equipment Installation Piping Works including field painting, insulations, testing and reinstatement activities Refer to Appendix 5 Scaffolding Plan for Overview of Scaffolding Plan. The priority and sequence of the scaffolding erection shall be in accordance with mechanical and piping works taking into considerations of the programme of works as per the project

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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schedule, actual condition of the site, progress and constraints posed by other ongoing activities, availability of installed equipment and completed piperack and structures and prefabricated pipe spools for launching and installation. There is no provision for early erection of scaffolding to facilitate other works not in PEC scope although PEC may need these scaffolding for mechanical and piping works at a later stage. In this instances, CONSTRUCTION MANAGER shall acknowledge these early request are subject to rental charges. There is also no provision to erect scaffolds to fit two (2) or more purpose or suitable for other trades. Request for scaffolds to suit other trades or activities of work constitute scaffold modifications. All erection and of new and modifications to existing and dismantling of scaffolding will be communicated to CONSTRUCTION MANAGER. However, PEC reserves the right to dismantle the scaffolding once all the mechanical and piping associated works are completed. Request to retain these scaffolds for other works or services including CONSTRUCTION MANAGER request for Commissioning & Start-Up incurs rental charges. An official request shall be submitted to PEC nominated Scaffold Coordinator. 7.8 PIPING ERECTION PLAN All field erection / installation / launching of prefabricated spools shall be in accordance with programme of work and approved Method Statement. Installation sequence shall be based on available work fronts taking into consideration of: Actual handover of structure and piperack Actual handover of equipment and other skid packages Actual handover of equipment for pre-dressing Double random length (12m) straight run prefabricated spools will be launched directly onto the piperack upon collection from the painting shop to avoid unnecessary double handling and reduce congestion at the site laydown area. Launch pad erected from scaffolds and rollers will be installed to facilitate the piperack piping launching / installation. The same approached will be adopted whenever feasible for installed equipment or predressed equipment. Late modifications due to design changes and rectifications of wrong fabrications if any will be carried out in site temporary workshop. Precautionary action shall be taken in handling fully painted prefabricated pipe spools during launching or erection to avoid unnecessary repair to the paint work after final installation.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
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Installation of pipe supports shall be in tandem with the prefabricated pipe spools. PEC QC will follow-up closely on the field installation progress and ensure all required NDE / NDT /PMI are carried out timely in accordance with project and specification requirements. Piping erection shall focus on line completion followed by area completion. The installation mode will shift to focus on Test Package completion once area completion of 60 % to 65% is achieved. This approach will ensure progressive completion of piping based on test pack and enable subsequent testing, draining drying and reinstatement activities progressively. Overloading of too many parallel activities during the final stage of the project completion involving Test Packages is inevitable. To mitigate this issue, PEC typically assigns a Test Pack SWAT Team to follow-up closely all punch list clearance, testing, draining and reinstatement activities to ensure final handover of Test packages and subsequent System Handover are not in jeopardy. 7.9 EQUIPMENT PRE-DRESSING PLAN Pre-dressing of equipment will be carried out in accordance with CONSTRUCTION MANAGER programme of work. Equipment requiring pre-dressing is identified in the Subcontract Requisition as follows: 21KA100 Water Wash Column 22KA100 CD Reaction Column 23KA100 MTBE Topping Column 24KA100 MTBE Tailing Column 26KA100 Crude Isobutylene Column 27KA100 Isobutylene Lights Column 29KA100 Methanol Recovery Column 23KA300 Methanol Extraction Column #1 26KA300 Methanol Extraction Column #2 PEC will perform a detailed assessment on the needs and benefits of pre-dressing of other equipment not listed in the Subcontract Requisition. The decision to adopt pre-dressing will takes into considerations of: CONSTRUCTION MANAGER acceptance Handover dates of foundations / support structures Benefits in terms of work progress

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

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18 of 24 Pre-dressed equipment will not posed constraints in terms of obstruction during lifting operations.

The pre-dressed approach shall ensure that no further scaffolding erection is required other than for localized insulation works or paint touch up at transportation saddles location and for continuation works after equipment installation. Adopting pre-dressing approach is an excellent strategy in construction execution. This approach brings value and benefits and is in line with PEC execution approach. The objective of pre-dressing will minimize working at height activities, scaffolding requirement and help to mitigate one of the most serious safety issue on falling from height. CONSTRUCTION MANAGER shall ensure suitable and adequate laydown areas are provided for pre-dressing activities. Heavy Lift Contractor shall provide necessary certified stools to elevate the equipment on the transportation saddles. Height of these stools shall take into considerations of the sizes of equipment platform and piping to be pre-dressed. The pre-dressing scope includes: Shipped loose platforms and ladders Equipment appurtenances Prefabricated piping and valves Prefabricated pipe supports Insulations (equipment and piping) Painting Electrical & Instrumentation (By Others) Care will be taken to ensure that these pre-dressed works will not pose constraints to the lifting operations. Hydro-testing, painting of weld joints and insulation works (if required) shall be completed and signed off once pre-dressing is completed. Any outstanding work to be carried out after equipment installation shall be limited to paint touch up and insulation works at the transportation saddles location. The pre-dressed approach shall ensure that no further scaffolding erection is required other than localize suspended scaffold after equipment installation. CONSTRUCTION MANAGER to ensure that all Electrical and Instrumentation predressed works comprising of cable trays supports, cables and properly laid and secured with any over length of cables required for terminations properly coiled up.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
Page No.

0 7.10 EQUIPMENT INSTALLATION WORKS

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PEC will work closely with CONSTRUCTION MANAGER appointed Heavy Lift Contractor and extend necessary support to ensure all required activities under PEC scope prior to and after heavy lift installation are carried out. Equipment Lifting & Transportation Plan, Method Statement and Job Safety Analysis will be prepared for all equipment installation works. Meetings, reviews and discussion will be held with CONSTRUCTION MANAGER and appointed Heavy Lift Contractor to ensure all lifting operations are carried out without any conflict and in accordance with the programme of works and approved methods, procedures and project schedule. Our equipment installation plan and sequencing takes into considerations of: Foundation handover dates Structural handover dates Equipment delivery (ROS) Ground condition Approved lifting plan showing transportation route to installation site, equipment position on transporter / trailer, lifting radius etc. Selection of crane (main & tailing crane) with the right capacity Strategic location of the crane for the lifting operations Installed equipment will not pose constraints to subsequent or remaining equipment installation Removing equipment components of package units, skids and other equipment if it posed obstructions to the lifting operation

Besides the above, we will also work closely with Heavy Lift Contractor to ensure that the lifting sling and shackle can be removed after installation of equipment. This can be achieved by deploying man basket or localized suspended scaffold which must be installed when equipment is in the pre-dressed position with access from nearest permanent platform. 7.11 FIELD PAINTING Our strategy of maximizing shop painting activities reduces significant field painting and scaffolding requirement on site. Field painting is limited to: Repairing of damaged prefabricated paint work on prefabricated spool after installation due to mishandling. Painting of field welds joints after hydro-testing. Painting of pipe supports welded to structural members Painting of field routed lines including pipe supports. Touching up the painting of valves and piping system after reinstatement.

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
Page No.

20 of 24 Touching up equipment paint work, shipped loose structure, platforms etc. including shipped loose spools for equipment packages.

All free issued equipments are assumed fully painted and there is no provision to paint these equipments. 7.12 INSULATION WORKS Upon contract award, attention will be focused on insulation materials take off for predressed equipment followed by insulation of field installed equipment and piping. Early procurement of insulation material and fabrication of cladding for equipment and piping will be carried for pre-dressed equipment. CONSTRUCTION MANAGER early finalization of insulation specifications and requirements is crucial to ensure timely order placement and delivery for these materials required for shop prefabrications and subsequent installation for pre-dressed equipment. Similar to piping prefabrication strategy, we will carry out all major prefabrication of insulation cladding for equipment and piping in the shop before it is brought to the site for field installation. The field insulation works will be carried out in accordance with CONSTRUCTION MANAGER programme of work as per project schedule and also based on available work fronts. We will also maximize the piping insulation works instead of delaying the entire insulation actives till piping hydro-testing is completed. Insulations on piping straight runs with weld joint exposed will be adopted. Extra care will be taken to ensure no egress of water. The decision to maximize insulation works will take into considerations of actual work volume for insulation, density of the on going other works and remaining activities to prevent damaged and avoid unnecessary repair to the insulations. 7.13 TEST PACKAGE Early preparation of test pack is crucial to facilitate and ease compilations of all documentations records required during handover. PEC will appoint a dedicated Test Pack Coordinator to work closely with CONSTRUCTION MANAGER Turnover Engineer on the following: Agreement of the Process & Utility test limits Alignment on the Table of Content Confirmation on testing medium and testing pressure

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
Page No.

0 Any other special requirements Agreement on Test Pack work flow

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Experience from most projects demonstrate that tracking, following up and closing out of all outstanding punch list posed the biggest challenges during the tail end of the project completion. Commitment and strict adherence to work flow from all parties is crucial to ensure timely handover of test packages and subsequent system handover. We seek CONSTRUCTION MANAGER to develop a handover plan and schedule the completion of system to allow the handover of the completed of the completed works in a systematic manner in accordance with the system breakdown. This will allow the commissioning team to take over systems early and in sequential manner. Refer to Appendix 6a Flow Chart for Test Package Preparation and Pre-test Procedure Appendix 6b Flow Chart for Pressure Test Procedure Appendix 6c Flow Chart for Pipeline Flushing Appendix 6d Flow Chart for Reinstatement, Painting and Insulation System turnover sequencing will be identified and managed by CONSTRUCTION MANAGER. PEC will assist with plant start-up requirement in performing precommissioning, commissioning and start-up activities.

8.0 QUALITY ASSURANCE

Our work will be performed as a minimum to the quality of standards as per PEC Quality Management System. A Project Quality Plan will be prepared and issued to CONSTRUCTION MANAGER. CONSTRUCTION MANAGER specific procedural requirements will be documented and reflected in the project specific procedures. PEC applicable quality procedures are appended in the Appendix 7 QA/QC Procedures.

9.0 PROJECT CONTROLS

Proprietary software and PEC developed software will be utilized in the projects. The following software is used in on-going project and will be extended to this project: Primavera P3 Planning / Scheduling MS Project Planning / Scheduling Isoman Piping & Welding Information System (refer to Appendix 8) MS Office General Office Document

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
Page No.

22 of 24 Application Time, Procurement & Equipment Management (refer to Appendix 9) Material control for procured material (refer to Appendix 10) Provides animated view for lifting works to check for clashes (refer to Appendix 11)

Executive Information System Material Control Module 3D Realise (Realtime Lifting and Simulation for Equipment

Operation Site Portal

Web based project Information Storage (refer to Appendix 12)

10.0 COMMUNICATIONS Communications between all parties is essential to the successful completion of the project. Our Project Manager is responsible for ensuring that information flows to the correct personnel in both CONSTRUCTION MANAGER and PEC organization. To this end, we have a system established in PEC that outlines the requirements for all correspondence and systems to support project execution such as: Project Execution Plan Project Quality Plan Project Procedures Project Memo / Notes Monthly Progress Report Letters Client Approvals Client Surveys Transmittals Project Close-out Report.

We have training programmes in place for our personnel to ensure the systems are implanted effectively. Weekly meeting and project progress meeting both internal and with CONSTRUCTION MANAGER requiring participation from various disciplines shall be determined after contract award. Project Procedures on communications outlining all correspondence and document flow requirements covering both internal and external parties, document and data management

PEC LTD.
21 Shipyard Road, Singapore 628144 TEL +65 6268 9788 FAX +65 6268 9488 www.peceng.com CO. REG. NO. 198200079M Title Doc. No.

Date :

12 Jan 2011
Rev. No.

PROJECT EXECUTION PLAN

BTR-MS-PEPXXXX
Page No.

0 will be issued after contract award.

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11.0 SCOPE OF WORK ASSUMPTIONS AND CLARIFICATIONS

The project execution plan is based on the following assumptions and clarifications as follows: Pipe support material welded to the parent pipe e.g. reinforcing pads and other welded attachments shall be supplied by CONSTRUCTION MANAGER. Spring supports is assumed come in complete assembly and there is no provision to design, procure and supply any attachments including eye-nuts, turn-buckle, threaded rods, pipe clamps and other welded attachments. All valves are supplied fully painted except for small bore (below 1) socket or screwed ends valves. No equipment related work or activities for Cooling Tower including Side Stream Filtration, Chemical Dosing and Weighbridge. No welding of vendor supplied ship loosed spools is envisaged for auxiliary piping of package units. CONSTRUCTION MANAGER to advise extent of welding works during execution phase. The following field activities shall be carried out on a material, labor and time basis: Washing and cleaning of equipment Supply, fabrication and extension of valve handles Field painting including touch painting of equipment Exclusions: Installation of equipment internals e.g. trays, packing rings, catalyst etc. o PE certification and load test of lifting frame / spreader bar supplied by CONSTRUCTION MANAGER equipment vendor

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