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TANKAGE PACKAGE &

ASSOCIATED INTERCONNECTING
PIPING
RUWAIS REFINERY EXPANSION
PROJECT

Doc. No. :
5578-E4-PC-10500
Rev.
Page

:0
: 1 of 23

MATERIAL CONTROL PROCEDURE

PROJECT NO.

09-5578-E-4

PROJECT NAME

Ruwais Refinery Expansion Project


EPC-4: Tankage & Associated
Interconnecting Piping

COMPANY

Abu Dhabi Oil Refining Company (TAKREER)

CONTRACTOR

Daewoo E & C Co., Ltd.

Proprietary Information: This document contains proprietary information and may not be partly or wholly reproduced without prior
written permission from Daewoo Engineering & Construction Co., Ltd.

16 Sep 09

Draft

Project Name: EPC 4: Tankage


Project No.: 09-5578-E-4

REV.

DATE

Revision No.: 0

MATERIAL CONTROL PROCEDURE


Document No.: 5578-E4-PC-10500

DESCRIPTION

PREPD

CHKD

APPD

COMPANY

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TABLE OF CONTENTS
1.0

PURPOSE

2.0

SCOPE

3.0

DEFINITIONS AND ABBREVIATIONS

4.0

REFERENCES

5.0

RESPONSIBILITIES

6.0

PROCEDURE
6.1

GENERAL

6.2

FILE SETUP AND ADMINISTRATION

6.3

MATERIAL RECEIVING

6.4

CHECK AND INSPECTION

6.5

MATERIAL RECEIVING REPORT (MRR)

6.6

OVERAGES, SHORTAGES & DAMAGES (OS&D)

6.7

INSURANCE CLAIM

6.8

DEFICIENCIES / NON-CONFORMANCE

6.9

STORAGE OF MATERIAL AND EQUIPMENT

6.10 MATERIAL AND EQUIPMENT STORAGE REQUIREMENTS


6.11 PROTECTION AND PRESERVATION
6.12 QUALITY CONTROL DURING STORAGE
6.13 ISSUE OF MATERIALS AND EQUIPMENT
6.14 TRACEABILITY
6.15 SITE PROCUREMENT
6.16 DISPOSITION OF SURPLUS MATERIALS
6.17 DOCUMENT FORMS
7.0

ATTACHMENTS
ATTACHMENT 1 - MATERIAL RECEIVING REPORT (MRR)
ATTACHMENT 2 - OVERAGE, SHORTAGE AND DAMAGE (OS&D) REPORT
ATTACHMENT 3 - MATERIAL INVENTORY CHECK LIST
ATTACHMENT 4 - TEMPERATURE / HUMIDITY CHECK RECORD
ATTACHMENT 5 - STORAGE CONTROL INSPECTION REPORT
ATTACHMENT 6 - DAILY RECEIPT SUMMARY REPORT
ATTACHMENT 7 - MATERIAL ISSUE TICKET (MIT)

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ATTACHMENT 8 - MATERIAL RETURN TICKET (MRT)


ATTACHMENT 9 - MATERIAL TRACEABILITY RECORD

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1.0

MATERIAL CONTROL PROCEDURE


Document No.: 5578-E4-PC-10500

PURPOSE
The purpose of this Material Control Procedure or Site Material Control Procedure is to
define the criteria, documentation and reporting requirements for receipt, storage, withdrawal,
tracking and preservation of materials on Site and to provide all parties with an understanding
of their responsibilities and requirements to meet the overall material management goals of
the PROJECT.

2.0

SCOPE
This procedure applies to all the activities necessary to control the material and equipment at
Site, e.g. receiving, storage, handling, preservation, OSD handling, issue to construction and
disposal of surplus materials.

3.0

4.0

DEFINITIONS AND ABBREVIATIONS


COMPANY

- Abu Dhabi Oil Refining Company (TAKREER)

CONTRACTOR

- Daewoo Engineering & Construction Co., Ltd

PROJECT

- EPC 4: Tankage & Associated Interconnecting Piping for


Ruwais Refinery Expansion Project

VENDOR or
SUPPLIER or
SUBCONTRACTOR

- any person, firm, or company, employed by CONTRACTOR to


perform any work or duty on their behalf

U.A.E.

- United Arab Emirates

SITE

- Location of Project in Ruwais, Abu Dhabi, UAE

REFERENCES
EXHIBIT B.14 - PROCUREMENT SERVICES
EXHIBIT B.15 - PROCUREMENT REQUIREMENTS FOR EPC CONTRACTS

5.0

RESPONSIBILITIES
The Site Material Control Manager has the responsibility for ensuring the implementation
of Site Material Control Procedures and control of material registration/handling from
receiving to issue for fabrication/construction. He shall review and procure all local
procurement requisitions for materials at the Site. He shall liaise with
Fabrication/Construction Manager and Project Procurement Manager on materials delivery
schedule and advises of problem areas. He is responsible for implementing a computerized
total material registration/handling system containing all references to stored/catalogued
materials received for this project and ensure the correctness of all paperwork/docs/forms

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produced/checked by his materials control team, as well as for the coordination between his
team and discipline engineer, who is responsible for issuing the material issue ticket and
material return ticket.
The Site Material Control Engineer has a responsibility for the correctness of the material
database, the proper storage and handling of all received/issued materials, the correct filing of
all material related documents as well as informing the material control team in case of
anomalies, assist the QC Manager or his deputy with their material inspection activities and
file a copy of their inspection report, provide monthly inventory reports based on last status of
material data base to material manager.
The Construction Manager has a responsibility for ensuring that all the materials necessary
for construction of the works shall be planned, prepared and executed effectively not to affect
any other construction activity. He is also responsible to assist in the preparation of the
special handling, storage and preservation procedures for equipment and other specialties,
when required.
The QC Manager has a responsibility for the quality control activity of the site materials
received. During the receiving, storage, issue and return of material, the quality control
manager shall execute quality control activity resulting in separate reports for each
occurrence, work cooperatively with the material control activity executed by material control
team .
The Material Controllers and Storekeepers has a responsibility to assist Site Material
Control Manager and Site Material Control Engineer for receiving, storing, handling, issuing
of materials, filing of documents, reporting, inventories, and other related material control
activities.

6.0

PROCEDURE
6.1

GENERAL
6.1.1

The objective of Site Material Control Procedure is to continue the material


management effort initiated in the office with specific emphasis on supporting
the daily construction effort. The process of material management at the site
includes the following elements:
1) Receiving materials and inspecting for conformity to Purchase Order
requirements
2) Protecting and storing materials until issued for fabrication / erection
3) Issuing materials for fabrication / erection
4) Warehousing and physical inventories to assure that actual quantities on
hand match recorded quantities
5) Handling, control and administration of hazardous and toxic materials shall
be performed in accordance with Government Authority and COMPANY

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requirements. The concerned individuals shall be aware of the Material


Safety Data Sheet (MSDS) instructions for handling these types of
materials
6) Administrating returnable items such as shipping containers, cable reels,
drums, for timely return.
7) Monitoring of planned deliveries according to the project schedule
6.2

6.3

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FILE SETUP AND ADMINISTRATION


6.2.1

Site Material Management will organize the maintenance and administration of


files, documents and registers in accordance with the guidelines set down in the
Project Execution Plan. The material control system introduced shall be
electronic with certain manual backup documentation, electronic and manual or
purely manual.

6.2.2

Even though the purchase order document and details are contained in the
electronic material control system, a hard copy of each purchase order
document and related change order will be filed numerically in a separate
folder in the Site Material Management office. Associated documents such as
Material Receiving Report or MRR, packing lists, freight bills, E-mails, faxes,
etc., will be filed, segregated, in the same folder as the referenced purchase
order. File contents can be organized with purchase order/change orders on the
right-hand side and associated documentation on the left-hand side.

6.2.3

Should the Purchase orders not be contained in a register within the electronic
material control system, then each purchase order and change order received or
created by Site Material Management will be recorded on the Purchase Order
Register.

6.2.4

Certified Mill Test Reports (CMTRs) should be given a sequential number


upon receipt and the relevant information entered into MaterialManager or
other electronic tracking system which allows sorting on the main information
columns. CMTRs should be filed in numerical sequence.

MATERIAL RECEIVING
6.3.1

Site Material Control Manager (SMCM) will be responsible for the receiving
and unloading functions at the Project site. All incoming shipments will be
routed via Site Material Control Manager (SMCM) to pre-planned locations,
for receipt and unloading. Under no circumstances should material or
equipment be held for more than 24 hours without processing. The receiving
locations will be controlled areas to preclude any material being issued prior to
its being properly received, inspected, and documented.

6.3.2

On shipments where materials and equipment are delivered via shipping


container, a daily check will be performed on the activity of shipping
containers (placing, unloading or removing) to minimize or avoid any
demurrage charges against the shipment.

6.3.3

As soon as the materials arrive, the Site Material Control Engineer (SMCE)
shall make a first check to ensure if the package corresponds with the packing
list and whether the material (as far as can be inferred from their outward
appearance) are in good condition. Each consignment must be thoroughly

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checked for damage prior to unloading. When there is obvious damage,


photographs will be taken before unloading. Damage reporting will be
accomplished in accordance with job site procedures. The consignment will be
unloaded in the designated area. If damages are evident, further inspection will
be made and additional photographs will be taken if needed.
6.3.4

6.4

The consignment will be physically checked to ensure that receipts are in


accordance with the accompanying shipping documents, and that the correct
number of packages or items has been received and circled on the shipping
documents. Discrepancies or damages will be noted on the freight bill and
signed by the receiving individual and the carrier's representative.

CHECK AND INSPECTION


6.4.1

Material check and inspection shall be executed under management of the


Quality Control Manager (QCM). The SMCM shall provide the QCM with
applicable vendor documents, such as mill certificates, inspection / test reports,
Material Safety Data Sheets, and notify QCM that materials are ready for
inspection. Material checks should be handled as follows.
1) When factory sealed packages of materials have the quantity and
description clearly marked on the package, it is not necessary to make a
detailed piece count of each package. Random spot checks of individual
packages can be made.
2) When tally sheets are provided with mill shipments of pipe, it is not
necessary to check each length against the tally. Piece count and
approximate length match ups are sufficient
3) A piece-count and check of tag numbers is required for deliveries of all
loose items or packaged tagged items. All accessories, assemblies and spare
parts shipped with tagged items are to be received as sub-items and marked
with the tag number
4) A piece-count and check of mark numbers is required for deliveries of
fabricated pipe and structural steel.

6.5
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6.4.2

Receipt inspection shall be performed by the QC Engineer, who is assigned by


the QCM, in accordance with the Receipt Inspection Procedure. All items are
HOLD until QC inspection has been performed.

6.4.3

Site Material Control Manager will coordinate with Engineering and/or Site
Quality Control/Inspection and/or Construction Manager when special
technical inspection is required. Materials requiring Positive Material
Identification (PMI), as outlined in the Project specifications, shall be
coordinated, handled and recorded by Site Material Management. Upon
completion of receiving, checking, and inspection, all receiving documents will
be sent to the Site Material Management office for further processing.

MATERIAL RECEIVING REPORT (MRR)


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6.6

6.7

6.5.1

All receipts of material/equipment, rentals, and services acquired against


purchase orders must be recorded by preparation of Material Receiving Reports
(MRR) see Attachment 1. The Site Material Control Engineer (SMCE) will be
responsible for the preparation of MRR's in accordance with the purchase order
information. After completion of inspection, MRR shall be initiated by the QC
Engineer and approved by the Quality Control Manager (QCM). Distribution of
MRRs and supporting documents will be as per the Project requirements.

6.5.2

For manually generated MRRs, "Lot" shipments of fabricated pipe,


fabricated structural steel, grating, and other material which is identified by
mark piece number may be identified on the MRR with the following
statement:

6.5.3

"This MRR is issued to acknowledge receipt of material as per attached


packing list #_______ and consisting of the following mark pieces:" Packing
list copies must then be attached and distributed with the MRR.

6.5.4

The Site Material Control Manager or his delegate, prior to distribution, shall
approve manual and if required, hard copy computer generated MRRs. Daily
Receiving Summaries are prepared each working day or as per Project
requirements, to reflect all receipts of materials and equipment processed
during the previous 24 hours. The reports are distributed as required by
Construction team.

OVERAGES, SHORTAGES & DAMAGES (OS&D)


6.6.1

In the event any shipment is received with overages, shortages, damages, or


other deviations, the Site Material Control Engineer (SMCE) will initiate an
Overage, Shortage, and Damage or OS&D Report (see Attachment 2) and the
Site Material Control Manager shall approve the report

6.6.2

The Site Material Control Manager will take action to immediately notify
Logistics Manager or Project Procurement Manager of OS&D conditions.

6.6.3

Project Procurement Team will be the focal point for coordination of OS&D
resolutions. Copies of OS&D reports will be forwarded to Project Procurement
Team with results of Site decisions (e.g., to retain overages, return damaged
material, etc.). Project Procurement Team will coordinate return authorizations
with suppliers, and will be responsible for any other matters that affect the
terms and conditions of the purchase order.

6.6.4

All shipments involving OS&D reports (for other than over-shipments) will be
held intact in a designated hold area, pending written disposition and return of
the report to Site Material Control Manager by Project Procurement Team.

6.6.5

Following receipt of the disposition report, Site Material Control Manager will
implement the instructions and make distribution of the completed report in
accordance with established job site distribution requirements.

6.6.6

All outbound shipments for the return to suppliers of returnable items or OS&D
material will be documented by the completion of a Material Shipping Record
(MSR).

INSURANCE CLAIM
6.7.1

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Insurance Claims for Materials found damaged, stolen, missing, etc., shall be
processed by Project Office, with all assistance provided by the SMCM and
Storekeepers with respect to the collected reports, photographs, etc.
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6.8

6.9

MATERIAL CONTROL PROCEDURE


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DEFICIENCIES / NON-CONFORMANCE
6.8.1

When received material/equipment is determined to be deficient or nonconforming to specified requirements and the deficiency/non-conformance is
the Suppliers responsibility, a Material and Equipment Deficiency
Notification must be completed, distributed and registered. It is the
responsibility of the Quality Control Manager to administer and close out all
deficiency notices. Copies of deficiency notifications and all other backup
paperwork to support a claim are to be forwarded to the Project Procurement
Manager for action as outlined in the Project procedures.

6.8.2

Rectification of deficiencies is not to be performed prior to written approval


being received from the supplier unless job site requirements necessitate this. In
this case the Construction Manager (CM) or his designate must give written
approval. When this course of action is taken the Project Procurement Manager
and the supplier are to be advised immediately. Identification, segregation, and
disposition of deficient/non-conforming materials shall be strictly in
accordance with the procedure for the control of Non-conforming Item.

6.8.3

It is the responsibility of Project Procurement Team to negotiate and finalize


back charges against suppliers with respect to deficiencies, unless this authority
has been delegated to Site Material Management.

STORAGE OF MATERIAL AND EQUIPMENT


6.9.1

Master Storage Plan


1) A master storage plan should be developed prior to the arrival of materials
at the Project location. The following points should be taken into
consideration when developing the storage needs:
a) Material delivery schedules and Project philosophy regarding direct
delivery to erection locations and off site fabrication shops.
b) Existing available storage facilities such as buildings, tanks, slabs,
prepared areas, etc.
c) Completion schedules for substations, control rooms etc. in
accordance to the delivery schedules.
d) Weather protection, conformity with warranty requirements,
protective maintenance requirements for outside storage areas,
including proper drainage.
e) Special storage needed for hazardous
Authority/COMPANY requirements.

materials

as

per

f) Special storage requirements for Construction Equipment, Small


Tools and supplies as applicable.
g) Safety and security requirements.
2) Storage facilities shall be classified as warehouse building and open laydown area.
3) Warehouse building: A warehouse will be built in the PROJECT site. The
warehouse shall be secured against entry and weather and sub-divided

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internally in a manner suitable to the area, to enable the location of stored


items to be determined and recorded. A bay numbering, shelf and stack
numbering will be used. In addition the warehouse has one special room
which will be controlled by air conditioner for instrument and special parts.
The warehouse officer shall maintain the Temperature / Humidity Check
Record (Attachment 4) for the areas which require control of temperature /
humidity
4) Open lay-down area: For the storage of large bulk materials, such as large
bore valves, piping materials, pipe supports, a fenced storage yard will be
prepared with proper drainage. A limited number of access gates to the yard
for controlling the flow of materials in and out shall be prepared.
Cleanliness and good housekeeping practices shall be enforced at all times
in the storage area. The storage area shall be cleaned as required to avoid
the accumulation of trash, discarded packing materials, and other
detrimental soil.
5) Access to storage facilities shall be controlled and limited only to personnel
designated by the warehouse officer and all materials shall be in accordance
with the manufacturers instruction and preservation procedure
6.9.2

Inside Storage
1) Materials shall be segregated by material commodities.
2) Shelf storage within the different commodities where codes and sizes apply
shall be by type and ascending code sequence.
3) Tagged items shall be by type and ascending tag numbers.
4) Storage shelves shall be marked with a location system that facilitates the
material control system that has been implemented.
5) Bulk storage to be used where feasible.
6) Wherever possible materials, even though not designated for inside storage
and provided that space is available, should be stored inside to minimize
weather protection.

6.9.3

Outside Storage Areas


1) Storage areas shall be, where feasible, divided into bays.
2) Storage areas must be accessible for transport and construction equipment
with hard standing roads of sufficient width.
3) Materials and equipment stored outside shall be stored off the ground by the
use of sleepers, dunnage, pallets, concrete slabs etc.
4) Segregation shall be by material commodity.

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5) Storage within the different commodities where item codes and sizes apply
shall be by type, size and numerical item code sequence.
6) Storage areas shall be assigned locations that facilitate the material control
system that has been implemented.
7) Sensitive items stored outside shall be covered with tarpaulins, plastic, etc.
as appropriate.

6.10 MATERIAL AND EQUIPMENT STORAGE REQUIREMENTS


Storage of hazardous materials is to be as per the Material Safety Data Sheets (MSDS)
and in accordance with Authority and COMPANY requirements. The requirements for
storage are divided into four levels with respect to protective measures to prevent
damage, deterioration, or contamination of items and materials based upon important
physical characteristics - the ambient conditions during construction installation and
operation of the item or material.
6.10.1 LEVEL A - Items classified to Level A are exceptionally sensitive to
environmental conditions and require special measures for protection from one
or more of the following effects: temperatures outside required limits, sudden
temperature changes, humidity and vapors, gravitational (g) forces, physical
damage and airborne contamination (e.g., rain, snow, dust, salt spray, fumes).
The following shall be used as a guide for classifying and storing items
intended for Level A classification:
1) Special electronic equipment and instrumentation
2) Special materials, such as chemicals, that are sensitive to environment
3) Computers
Items will be stored within a fire-resistant, tear-resistant, weather tight, and
well-ventilated building or equivalent enclosure, with any additional
requirements detailed by the manufacturer and/or engineering representative.
6.10.2 LEVEL B - Items classified to Level B are sensitive to environmental
conditions and require measures for protection from the damaging effects of
one or more of the following: temperature extremes, humidity and vapors,
gravitational (g) forces, physical damage and airborne contamination. The
following shall be used as a guide for classifying items intended for Level B
classification:
1)
2)
3)
4)
5)
6)
7)

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Instrumentation
Electrical penetrations
Batteries
Welding electrode and wire
Motor control centers, switchgear, and control panels
Motors and generators
Precision-machined parts

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8) Erection spares, such as gaskets and O-rings


9) Air-handling filters
Items will be stored within a fire-resistant, tear-resistant, weather tight, and
well-ventilated building or equivalent enclosure.
6.10.3 LEVEL C - Items classified to Level C require protection from exposure to the
environment, airborne contaminants, gravitational (g) forces, and physical
damage. Protection from water vapor and condensation is not as important as
Level B. The following shall be used as a guide for classifying items intended
for Level C classification:
1)
2)
3)
4)
5)
6)
7)
8)

Pumps
Valves
Fluid filters
Compressors
Turbines
Instrument cable
Thermal insulation
Fans and blowers

Items will be stored indoors, or equivalent, heat and temperature controls are
not required.
6.10.4 LEVEL D - Items classified to Level D require protection against the elements,
airborne contamination, and physical damage. The following will be used as a
guide for classifying items intended for Level D classification:
1)
2)
3)
4)
5)
6)
7)
8)
9)

Tanks
Heat exchangers and parts
Accumulators
Demineralizers
Evaporators
Piping
Electrical cable
Structural items
Reinforcing steel

Items may be stored outdoors in well-drained areas.


6.11 PROTECTION AND PRESERVATION
Preservation and maintenance of equipment and materials while in storage and in-place
prior to initial operation will be administered by the Site Material Control Manager and
will be recorded on an Equipment and Materials Preservation Inspection Record. A
plan and register will be developed which specifies the particular requirements for each
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piece or category of equipment based on Engineering and manufacturer or suppliers


recommendations.
6.11.1 Measures to Protect and Preserve
1) The main operations involved in material handling for itemized equipment
and materials are to:
a) Check materials arrived against Purchase Order and packing list and
issue the material receiving report.
b) Perform required material inspection by the discipline inspector to
verify material integrity.
c) Check the integrity of the original packing protection: if needed
restore the required protection for field storage.
d) Define inspection / preservation program during storage / erection
e) Move the material / equipment to the proper storage area according to
the storage requirement for materials
f) Check periodically the material / equipment storage conditions
according to the inspection program: perform periodically the
scheduled preservation operations.
2) All equipment and materials will be handled, transported and stored in
accordance with CONTRACT requirements, Project specifications and
vendor recommendations. All stored materials and equipment will be
properly identified and marked, and their storage location will be recorded
at all times for easy traceability purposes when issued to production.
3) The following is the general procedure that is normally adopted for storage
and preservation of equipment and materials. Nevertheless specific
preservation procedures, in accordance with COMPANY / vendors
specification/requirements, will be followed for different type of project
material/ equipment/ machinery and different term (short or long) of
preservation, if it will be necessary.

6.11.2 Significant Considerations


1) Several natural situations that have to be considered, connected to the
preservation of the Project materials, such as:
a)

Moisture
The continuous and heavy moisture present in the Site must be
opposed with adequate protective coatings and/or housing and
coverings for those Project materials that can not be stored in an open
area without protection (i.e. electrical panel and small fittings)

b) Temperature

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Elevated temperature may damage some Project material (e.g.


material for painting). Housing with air-conditioning facilities will be
the adequate solution
c)

Water during the rainy season


During the rainy season, the protection treatment for the area reserved
to the materials and equipments must be taken such as drainage work
of adequate trenches in order to naturally drain the water and to keep
the area unchanged.

d) Cleaning of the storage area


One of the most important things for the preservation of the materials
and equipments is to keep the storage area cleaned. The high grass or
dirty area can be natural habitat of snakes, vermin or other animals
that could be dangerous to man. Then in the storage area mowing
grass and cleaning have to be done regularly.
2) The Site Material Management Group shall take into consideration of the
above factors which might be impacted against the preservation of materials
and equipments during the site preparation of the lay-down area which will
be flat graded with gravel on top.
3) Part of the area will be covered and sheltered warehouse equipped by
shelving.

6.11.3 Preservation
Depending on their nature, materials will be preserved as follows.
1) Piping fittings and valves: for all material shipping protection will be
maintained until prefabrication and/or installation
2) In addition, shipping crates will be maintained for the materials stored
outside. Crates will be protected from rain by tarpaulins, plastic film, and
zinc or other.
3) For mechanical equipment, shipping protection will be maintained until
installation, and the following issues will be controlled, at intervals, when
required:
a) Moisture content
b) Oil level
c) Shaft rotation
4) The above issues will be developed (treatment of NCRs, security, etc), as
part of the project documentation.
5) Protective housings and coverings will be applied to reduce deterioration
from the environment. These may be plywood boxing over rotating
equipment, tape coverings over exposed motor/pump shafts, or
polyethylene bags over instruments (inside only). If this type of protection
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is vapour tight, it keeps dust, sand, rain, dew and salts from exposed
surfaces. Coverings will also retard oxidation or drying out of greases or
oils applied to machined surfaces. Covering of motor, turbine and
compressor air inlets and taping over applied protective greases is
recommended.
6) If the equipment is designed for outside exposure, enclosing with box
and/or using plastic bags is generally not encouraged.

6.12 QUALITY CONTROL DURING STORAGE


6.12.1 The quality control activities during storage will be carried out according to
Quality Control Plan.
6.12.2 Detailed written instruction as referred to in the applicable Quality Control Plan
and related Check-list will be supplied to all inspection areas specifying the
procedures to be followed to ensure conformance of inspected items to the
applicable requirements
6.12.3 Procedures for identifying, marking and disposing of non-confirming items as
well as general workmanship and material handling procedures pertaining to
the construction and installation operations will be available in the respective
areas
6.12.4 The Quality Control activities will be performed by appropriately qualified
personnel. Written reports will be issued for each completed inspection
6.12.5 Inspection items will be marked accordingly in order to assure correct
identification of their inspection status, and relevant release reports issued
accordingly.
6.12.6 Non-confirming items will be processed as per the established procedure
6.12.7 Periodic and Cycle inventories are necessary to establish some means of
verifying physical count of materials and equipment to material control records.
Establish a schedule, in conjunction with the site Quality Control Team and in
accordance with the Construction Schedule, for inventorying selected
commodities.
6.13 ISSUE OF MATERIALS AND EQUIPMENT
6.13.1 Site Material Control Manager shall issue shortly materials and equipment to
the Construction Discipline Manager upon completion of receiving inspection
and receiving MRR from QA/QC Team. Material Issue Ticket form
(Attachment 7) shall be used for issuance of materials. Following issue of
material to Construction Team, the storage and inventory shall be controlled by
the Construction Discipline Team
6.13.2 All the issued materials shall be recorded in the electronic material control
system with Material Inventory Check List (Attachment 3) by the Site Material
Control Engineer and the warehouse officer.
6.13.3 The Site Material Team shall make a periodic inventory checking for stock
status and monitor the status of shortage / proper storage

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6.14 TRACEABILITY
6.14.1 General
1) Shop Traceability Control
Correct material identification throughout fabrication activities shall be
maintained and monitored by the CONTRACTOR and/or Vendor. At the
completion of an individual fabrication, the CONTRACTOR and/or Vendor
shall verify and document that correct material identification was made on
the drawings and that the physical material identification is legible. Any
discrepancies encountered shall be resolved through consultation with the
authoritative agent. Confirming documentation, as necessary, shall be
included in the Traceability Packet for the drawing involved.
2) Field Traceability Control
Correct material identification throughout field fabrication, assembly and
installation activities shall be maintained and monitored by the Vendor
conducting the work. At the completion of an individual field fabrication,
assembly or installation, the CONTRACTOR shall verify and document
that correct material identification has been made on the drawings and that
the physical material identification is legible. Any discrepancies
encountered shall be resolved through consultation with the authoritative
agent. Confirming documentation, as necessary, shall be included in the
Traceability Packet for the drawing involved.
CONTRACTOR shall maintain records of all certified drawing packets for
all completed field fabrication. Subsequent field assembly and installation
activities shall include the implementation of a procedure for recording and
maintaining documented traceable continuity through the completion of
final field installation.
3) Material Test Report (MTR)
The MTR document shall originate from the Manufacturer, and shall
identify the following:
a)
b)
c)
d)
e)

Purchase Order
MESC Code Number
Heat Number
Chemical analysis and mechanical properties of the material
(throughout manufacturing, construction and plant operation).
Any testing results specified by the purchase order, or in
individual Specifications.

4) Materials Requiring MTRs & Traceability

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Piping component`s (pipe, fittings, flanges, etc.) for the following shall
require Manufacturers Test:
a)
b)
c)
d)
e)

Reports (MTRs) and total Traceability:


Low-temperature Carbon Steel
Ferritic alloy ( 1 1/4 Chrome through 9 Chrome)
Austenitic alloy (300 series Stainless Steels)
High alloys (90-10 Cupronickel, Hastelloy, Inconel, Monel, 254
SMO, etc.

5) Materials Requiring MTRs only


Piping components (pipe, fittings, flanges, etc.) for the following shall
require Manufacturers Test Report only:
a)

Carbon Steel piping components (general, hydrogen and steam


services) All valves
b) Components of engineered items in all materials including, but
not limited to, blinds and expansion joints
c) All flange bolting materials
6.14.2 Traceability Requirements
In order to maintain traceable continuity of piping components, the following
are required upon receipt of materials and during fabrication:
1) Marking - General
Unique permanent marking of material for total traceability, such as an
identification or heat number that can be traced back to the Material Test
Report, material specification/designation, and wall thickness/schedule are
required. Marking shall be accomplished by the use of low stress steel die
stamps, producing a round bottom impression or by electro etching. Electro
etching may be either the stylus of chemical method (chemicals shall not
contain chlorides, sulfur or nitrogen compounds). Material with a nominal
wall thickness of 5.1 mm (0.200) or less shall be electroetch marked. The
depth of marks shall not infringe on minimum wall thicknesses determined
from the applicable material specifications and standards.
Marking shall be applied such that abrasions and oxidation encountered
during shipping, storing, handling, fabrication and installation will not
obliterate the identifying marks. Should fabrication of installation
operations (examples: welding, grinding and cutting) obliterate the heat
number, the part of piece shall be remarked accordingly.
2) Marking - Pipe
In order to maintain traceable continuity, each length of pipe is required to
be marked by low stress die stamping or electro etching approximately
300 mm from the end of the pipe by the Vendor, as required by the
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applicable specifications. Shop and field receiving shall verify that all pipes
are properly identified. Unidentified materials shall be considered as
scrap until such time that physical and chemical tests can affirm material
composition.
3) Marking - Pipe/Fittings which have been cut
Markings on material that is subsequently cut into smaller pieces
(examples: pipe and odd angle elbows) shall be transferred to each cut piece
immediately in order to maintain traceable continuity.
4) Drawing Requirements
Heat numbers including welders identification shall be transferred to:
a) Shop orthographic drawings after shop fabrication
b) Isometric drawings (or rack load drawings if there are no
isometric drawings) after field fabrication.
5) Traceability Record
A Traceability Record form (see Attachment # 6) shall be prepared by the
relevant Fabrication or Construction team and inspected by the QC Team.
6.14.3 Material Receipt
1) At the delivery location such as fabrication shops or Site material storage
areas, before any material requiring traceability (e.g. LTCS pipes) is
unloaded, Material Control team shall check the shipping documents and
way bills in relation to the Box number, Area Code, Purchase Order number
etc. After confirming the above details the material shall be offloaded from
the truck.
2) With the packing list at hand, Material Control team with COMPANY
representative hall inspect the material. During inspection, quantity and
Heat numbers of the materials shall be checked and recorded against the
packing list. Where the heat number is not clearly written, a non-zinc
marker shall be used to transfer a more visible heat number onto the
material.
6.14.4 Material Issue for Fabrication
1) Material Requisition shall be used to issue LTCS piping materials to the
Construction team for fabrication.
2) The Heat number and the ASTM number of the pipes, fitting and any other
issued piping materials shall be recorded on the Material Requisition form
to ensure that the correct materials are issued at any point in time.
6.14.5 Fabrication Shop Material Traceability

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1) During cutting and pre-fabrication of pipes, the transfer of heat number to


pipe off-cut is to be implemented with pipe maker by CONTRACTOR and
witnessed by the COMPANY Inspector, and recorded on a MTR form
(Manufacturers Test Report) for the materials requiring MTRs and
traceability e.g. LTCS pipe to ensure that its heat numbers are correctly
transferred.
2) QC Inspector shall mark up a copy of all Isometric drawing sheets using a
Mark Number to identify every discrete component of the piping
materials used in fabrication of spools, such as individual pipe pieces,
fittings, flanges, nipolets, etc (stud bolts, nuts, and gaskets are not included,
and not required to be traceable). The mark number shall be the letter M
followed by a sequential number; and all piping components on a single
isometric sheet shall be identified in a continuous series M1, M2, M3,
M4 etc.
3) Material Traceability Record sheets shall be used with every marked up
isometric, to list all the mark numbers that identify the components of that
isometric sheet.
4) The heat number of each component, as observed from its visible marking,
shall be noted on the MTR sheet against its corresponding mark number,
with a brief description of the component.
5) An MTR sheet can be used to record details of several spools of the same
isometric drawing, and shall be filled in progressively, as and when
fabrication of each spool is completed. The marked up isometric shall be
stapled to the relevant MTR sheets.
6) When fabrication work of all spools listed on a single MTR sheet has been
completed, CONTRACTOR and COMPANY Inspectors shall verify that
the information recorded on the MTR sheet and marked-up isometric is
accurate. The shop section of the MTR sheet shall then be signed-off as
satisfactory.
6.14.6 Field Material Traceability
1) CONTRACTOR QC Inspector shall ensure that prior to transport from the
material store to the erection site, all stainless field installation piping
components other than fabricated spools, have visible heat number
markings. These field items shall include valves, welded support
attachment, cleats etc.
2) The heat numbers of these field stainless steel items shall be recorded of the
same MTR sheet against their identification mark numbers, as shown on the
attached marked-up isometric drawing sheet.

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3) On completion of field erection work, the CONTRACTOR and


COMPANY Inspectors shall verify the accuracy of the information
pertaining to stainless steel field components and sign-off the MTR sheet.
This shall be done before pressure test and/or painting, whichever occurs
first.
4) Prior to pressure testing the piping system, CONTRACTOR shall confirm
that the MTR sheets of all isometrics are signed-off by the COMPANY
Inspector.
5) The MTR sheets and marked-up isometric drawings shall be handed over to
COMPANY as part of document handover.
6.15 SITE PROCUREMENT
6.15.1 Site procurement will be in line with the Local and Regional Resources
requirements. The Site Material Control Manager will conduct local
procurement for material, equipment and services, maximizing the use of local
sources to the extent they are available and technically acceptable, price
competitive and can be delivered in time to suit the Project schedule.
6.15.2 Upon issue of a Material Requisition from the site, Site Material Control
Manager will survey the local market versus external availability and cost to
obtain the necessary approval as per project requirements.
6.15.3 CONTRACTOR will purchase the local material items from the local supplier,
partly or wholly, depending on the availability and meeting specification.
6.15.4 Procurement will be normally via local purchase orders but cash purchases
subject to items to be procured and order value
6.15.5 All activities for the above site procurement shall be in accordance with the Site
Procurement Procedure.
6.16 DISPOSITION OF SURPLUS MATERIALS
6.16.1 In the event that materials at the site have been identified as surplus, the
disposal of that surplus material is the responsibility of the Material
Management group. Surplus material is most often the result of design changes,
errors in estimates and takeoff, and/or duplicate buying efforts.
6.16.2 Once surplus has been confirmed, the Site Material Control Manager shall
closely coordinate with the Project Procurement Manager and Construction
Manager and has the responsibility for leading the work process to disposition
the surplus material / equipment and working with Site Engineering to identify
possible alternative uses prior to disposition
6.17 DOCUMENT FORMS
6.17.1 The Forms mentioned provides a listing of the forms that will generally be used
while performing Site Material Management activities on the Project. They are
used in the execution of receiving, storage, handling, preservation and issue of
equipment and material for construction and return of the surplus items.

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1) Material Receiving Report: Used for material receiving/inspection by


SMCE and QC Engineer (see Attachment 1)
2) OS&D Report: Used for overages, shortages and damages report by
SMCE (see Attachment 2)
3) Material Inventory Check List: Used for material inventory by
warehouse officer (see Attachment 3)
4) Temperature/Humidity Check Record: Used for control of warehouse
temperature / humidity by the warehouse officer (see Attachment 4)
5) Storage Control Inspection Report: Used for checking periodically
material storage conditions by warehouse officer (see Attachment 5)
6) Daily Receipt Summary Report : Used for recording material received on
daily basis by warehouse officer (see Attachment 6)
7) Material Issue Ticket (MIT): Used for issuance of materials by SMCM
(see Attachment 7)
8) Material Return Ticket (MRT): Used for return of surplus materials by
CM (see Attachment 8)
9) Material Traceability Record: Used for Material Traceability and
Identification by Construction Team (see Attachment 9).
6.17.2 The information on site material management activities, such as receiving and
issue for construction, shall be updated on Procurement Control / Progress
Report, which is an integrated material tracking report from requisition to issue
for construction and issued to COMPANY on weekly basis, by the Site
Material Control Engineer (SMCE) in accordance with the Material Tracking
Procedure
6.17.3 If any forms have been modified due to COMPANY or Project requirements,
they are included as attachments in the following section.

7.0

ATTACHMENTS
Attachment 1 - Material Receiving Report (MRR)
Attachment 2 - Overage, Shortage, and Damage (OS&D) Report
Attachment 3 - Material Inventory Check List
Attachment 4 - Temperature / Humidity Check Record
Attachment 5 - Storage Control Inspection Report
Attachment 6 - Daily Receipt Summary Report
Attachment 7 - Material Issue Ticket (MIT)
Attachment 8 - Material Return Ticket (MRT)

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Attachment 9 - Material Traceability Record

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