Saep 14 PDF

Engineering Procedure
SAEP-14 31 May 2015

Project Proposal
Document Responsibility: Project Management Office Department
Note: This version of SAEP-14 is applicable only to projects using the new Capital
Management System (CMS). All other projects will use the previous version of the
procedure dated 13 February 2012.
Saudi Aramco DeskTop Standards

Table of Contents
1 Introduction……………………………….......... 2
2 Applicable Documents……...…...................… 4
3 Project Proposal Contents……....................... 6
4 Project Improvement Effort……………….…. 24
5 Reporting and Review Requirements…....... 25
6 Approvals and Waivers…………………....... 28
7 Contract Bid Package…………………….…. 31
8 Conflicts and Deviations............................... 32
9 Exhibits……………………………………....... 29
Exhibit I – Project Proposal Checklist…………... 35

Exhibit II – Front End Loading (FEL)
and Project Characterization.....….... 37
Exhibit III – FEL Deliverables (Recommended).. 38
Exhibit IV –Scope Change from Approved
DBSP Request (SCDR)…….……..... 43
Exhibit V – Project Proposal Approval Routing... 44
Exhibit VI – Contract Development Checklist..… 45
Exhibit VII – Bid Quantification Summary........... 47
Previous Issue: 13 February 2012 Next Planned Update: 31 May 2018
Primary contact: Doiron, Shannon Earl (doironse) on phone +966-13-8809161
Copyright©Saudi Aramco 2015. All rights reserved.

Document Responsibility: Project Management Office Department SAEP-14
Issue Date: 31 May 2015
Next Planned Update: 27 May 2018 Project Proposal
1 Introduction
This procedure outlines the requirements for preparing the Project Proposal. The procedure
is not intended to give instructions on the engineering effort, but to cover requirements that
are important during the FEL3 Project Proposal phase. In summary, it covers:
 Engineering, scope definition, specifications, standards and selected design
requirements
 Quality, cost reduction and schedule improvement techniques
 FEL3 Project Proposal phase deliverables required for Value Assurance per Exhibit III.
 Value Improving Practices per Exhibit III
 ER Estimate preparation requirements
 Project Proposal reporting, review, approval and waiver requirements
 Contract Bid Packages
 Project Proposal and Contract Development checklists
The intent of the checklist is to ensure compliance with key requirements. They are not
intended to cover all detailed requirements of this procedure.
1.1 Definition
The Project Proposal is a document which establishes the preliminary (front-end)

engineering, scope definition, cost estimate basis and schedule for a proposed
facility from the requirements included in the Design Basis Scoping Paper (DBSP)
package available at the approval of FEL Gate 2 (for FEL process details, refer to
the Exhibit II and Front End Loading Manual). The Project Proposal includes the
proposed facility design, general layout and the appropriate functional and
performance specifications including the recently published applicable standards
and codes. The Project Proposal shall be of sufficient detail to prepare a ±10%
accuracy ER estimate, provide sufficient technical information for Saudi Aramco
review and, where applicable, provide sufficient information to obtain detailed
engineering, procurement and construction contract bids in accordance with the
approved Contracting Plan. To complete the Project Proposal, Preliminary
Engineering Funds (PEFs) shall be arranged as per GI-0202.451.
1.2 Purpose
The Project Proposal documents the agreement on and commitment to the

project scope, the project cost and design basis by the IPT which includes the
Saudi Aramco Project Management Team (SAPMT), Facilities Planning
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Department (FPD), Project Management Office Department (PMOD),

Proponent and other technical support groups. This is accomplished through
careful evaluation of the project objectives during Project Proposal preparation
to ensure the optimum results. The Project Proposal establishes the basis for
Expenditure Request (ER) funding and is the baseline from which all
subsequently considered scope changes are measured.
1.3 Preparation Timing
Project Proposals must be completed and approved in time before the 56D
submission deadline in order to support the Expenditure Request Approval
(ERA).
A complete ER Estimate Package must be submitted to Project Management

Office Department/Estimating Services Division (PMOD/ESD) as per the
procedures and timing indicated in SAEP-25. An approved Project Proposal from
the Construction Agency Department Manager, Facilities Planning Department
and Proponent organization signatories is a mandatory requirement prior to
issuance of the ER Estimate (Saudi Aramco Form 56D) to Budget Director.
1.4 Application
With the exception of Master Appropriation projects, Saudi Aramco requires a

Project Proposal and ER Estimate for all Type A, B, C and C1 projects (for
project characterization, see Exhibit II). The project Proponent and SAPMT
shall agree and document the level of detail needed prior to start of the Project
Proposal. Projects that combine the preparation of DBSP and Project Proposal
into one effort shall ensure that the requirements identified in this document
which are relevant to the project are met.
1.5 Important Terms

1) Front End Loading (FEL) is a process that organizes the project life cycle
into phases (see Exhibit II), each with defined activities, deliverables and
specific objectives. FEL is applicable to all projects that follow the Capital
Management System Efficiency Enablers (CMSEE). For more details, refer
to the Front End Loading Manual.
2) Project Types- A, B, C & C1 are assigned by FPD based on size (CAPEX)
and complexity. For reference, see Exhibit II.
3) Construction Agency is the organization assigned to execute the project.
This could be the Saudi Aramco Project Management (PM) administrative
area that is the default Construction Agency for Type A, B and C projects
or the Proponent’s Capital Program Management (CPM) for C1 projects.
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4) Project Management is the Saudi Aramco Project Management

administrative area that is the default Construction Agency for Type A, B
and C projects.
5) Proponent is the Saudi Aramco organization that owns, operates, and
maintains the completed facility. The Proponent is responsible for signing
the Mechanical Completion Certificate as owner of the facility.
6) Saudi Aramco Project Management Team (SAPMT) is the Construction
Agency team assigned to the project during project planning and execution.
7) Integrated Project Team (IPT) is a team composed of appointed members
from different organizations who work in an integrated manner and have
clear roles and accountabilities toward project planning and execution.
8) Project Sponsor (PS) is an Executive or a member of Management,
appointed by the Proponent organization, who is accountable for meeting
project objectives and steering the IPT towards maximizing investment value.
For more details, refer to the PS Manual.
9) Project Leader is a representative from the Facilities Planning Department
who leads the IPT during FEL1 and FEL2 phases. This position transfers to
the Construction Agency representative (Project Manager) who leads the
IPT during FEL3 and the project’s execution phases.
10) Senior Operations Representative is the Proponent organization
representative involved in all phases of the project, to ensure the short- and
long-term objectives of the Proponent organization are incorporated during
the project development process.
11) Work Breakdown Structure (WBS) is defined by the Project Type &
Sub Type and estimates shall be prepared and organized in accordance with
the applicable Saudi Aramco WBS (for details see SAEP-25).
2 Applicable Documents
The latest edition of the applicable reference documents shall be applied:

 Design Basis Scoping Paper (DBSP) and applicable Study Documents
 Saudi Aramco Engineering Procedures
SAEP-12 Project Execution Plan
SAEP-13 Project Environmental Impact Assessments
SAEP-16 Execution Guide for Process Automation Systems
SAEP-25 Estimate Preparation Guidelines
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SAEP-26 Capital Project Benchmarking Guidelines

SAEP-31 Corporate Equipment and Spare Parts Data
Requirements
SAEP-40 Value Assurance Process
SAEP-99 Process Automation Networks and Systems Security
SAEP-121 Operating Instructions for New Facilities
SAEP-122 Project Records
SAEP-127 Security and Control of Saudi Aramco Eng. Data
SAEP-140 Project Training Impact Assessment
SAEP-250 Safety Integrity Level Assignment and Verification
SAEP-302 Instructions for Obtaining a Waiver of a Mandatory
Saudi Aramco Engineering Requirement
SAEP-303 Engineering Reviews of Project Proposal and Detail
Design Engineering Documentation
SAEP-329 Project Closeout Reports
SAEP-334 Retrieval, Certification and Submittal of Saudi
Aramco Engineering and Vendor Drawings
SAEP-367 Value Improving Practices Requirements
 Saudi Aramco Engineering Report
SAER-5437 Guidelines for Conducting HAZOP Studies
 Saudi Aramco General Instructions
GI-0002.716 Land Use Permits Procedures
GI-0020.520 Project Change Request
GI-0202.309 Allocation of Costs - New Facilities Start-up
GI-0202.451 Engineering Work Order Authorization for
Preliminary Engineering Preparation
GI-0400.001 Quality Management Roles & Responsibilities
 Saudi Aramco Engineering Standards (SAESs)
 Saudi Aramco Materials System Specifications (SAMSSs)
 Saudi Aramco Cost & Scheduling Manual
 Saudi Aramco Supply Chain Management Manual
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 Saudi Aramco Information Protection Standards and Guidelines (IPSAG)

 Saudi Aramco Capital Management System Efficiency Enablers (CMSEEs)
Documentation (for the latest version of the below Manuals, contact Capital
Program Efficiency Department)
Front End Loading (FEL) Manual
Integrated Project Team (IPT) Manual
Project Sponsor Manual
Target Setting (TS) Manual
 Saudi Aramco Safety Management System
 Construction Agency Safety Management System
 Saudi Aramco Construction Safety Manual
 Saudi Arabian Government Security Directives (SECs)
 Saudi Arabian Government Safety and Fire Protection Directives (SAFs)
3 Project Proposal Contents
Based on the Front End Loading Manual (Dated 21 June, 2014) for FEL3 Project
Proposal phase, recommended deliverables for Type A, B, C and C1 projects are
provided as:
 Exhibit III.a - for projects over $ 20MM
 Exhibit III.b - for projects less than or equal to $20MM
Nevertheless, based on the latest available Front End Loading Manual, for each
individual project, the Project Leader/Manager and the IPT will determine the specific
list of deliverables for their project and will process Deliverable Waiver Requests
(DWR), as appropriate.
The DWR is concluded at the completion of the FEL1 Business Case, FEL2 Study &
DBSP and FEL3 Finalize FEL phases. The DWR is required for all project types with
the exception of the Study Phase for Type C and C1 projects.
Note: The DWR is a list of deliverables proposed by the Integrated Project Team (IPT) in
order to waive those deliverables in the next FEL phase that they deem unnecessary
or inapplicable to the proposed project or if the information that is generally found in
these deliverables can be located/obtained from other sources without additional work.
It also, provides the rationale for each deliverable included in the deliverable waiver
request. For more details on the DWR process, refer to SAEP-40.
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The following sections outline the items normally included in Project Proposals.
3.1 Table of Contents
3.2 Technical Requirements
3.2.1 Project Summary
This section provides a history of the existing conditions, a brief

discussion of the proposed facilities and their justification, outlines the
project objectives/scope and schedule, and briefly describes how these
objectives will be achieved.
3.2.2 Project Description
This section provides scope and design information that establishes the
performance specifications for the facilities, process, waivers or
limitations. It shall address details concerning the design basis, proposed
facilities including equipment design, capacities, location/layouts and
other project related information. The list below provides common
elements found in a typical scope. This list may be optimized by the IPT
based on the Project Type & Sub Type:
1) Facility/plant layout and location
Note: The project scope boundaries and interfaces with other related
facilities must be clarified prior to developing the scope of the
project in the proposal phase.
2) Facility/process description, design basis and performance

specification
3) Equipment list with equipment capacity, size, datasheet, tag number,
etc.
4) Major mechanical, electrical, and utility requirements (type and
quantity)
5) Drawings (including):
a) Process Flow Diagrams (PFDs) including heat and material
balances
b) Electrical one-line diagrams, electrical area classification
drawings
c) Piping and Instrumentation Diagrams (P&IDs)
d) Plot plans
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6) Listing of Mandatory Saudi Aramco Engineering Requirements

(MSAERs) specific to the project and their issue dates
7) Temporary and permanent on-plot and off-plot facilities
8) Site survey, topography and soil data (Geotechnical Investigation)
9) Demolition and modifications to existing facilities/plants
10) Operating variables (as required by OSPAS)
11) Corrosion control
12) Impact on and interface with other related projects and/or existing
facilities
13) Compliance with Environmental Impact Assessment (see SAEP-13)
14) Facilities’ security, fire protection & safety provisions (if required,
Hazard Identification Plan of major hazards, fire hazardous zone
drawings, and fire system and fire/gas detection/alarm layout
drawings)
Notes: 1) Facilities Security Assessment (final) is completed during the
FEL2 DBSP phase.
2) Fire protection drawings are to be stamped by the

professional engineer in accordance with the requirements of
SAES-B-014 and SAES-B-017.
15) Communications, including government approvals, if required
16) Control systems (including SCADA) provided with Control System
Block Diagram or System Architecture, instrument index,
instrument cable routing and I/O count breakdown
17) Project Execution Plan (see SAEP-12) and Summary Schedule
18) Training requirements (see SAEP-140)
19) Any change to Land Use Permits (LUPs) issued for new facility
sites or addition of facilities within existing plants including
Proponent-approved permits for lay-down areas, staging areas and
office sites (see GI-0002.716)
Note: LUP approvals from Government and Saudi Aramco are obtained
during the FEL2 DBSP phase.
20) Strategy for the project’s compliance with Project Quality Plan
requirements
21) Process & utilities system definition and turnover sequence
22) Piping, electrical and control system tie-ins, hot tap/stopple
operations plan and shutdown needs
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23) Studies and Assessments (see Section 3.2.6)

24) Site Investigation Report
25) Pre-commissioning and Mechanical Completion Plan (updated)
26) Commissioning and Start-up Plan (updated)
Notes: The development of the Commissioning & Startup Plan (as an
integral part of the Operational Readiness Plan “ORP”) is the
responsibility of the Senior Operations Representative with input
from the Project Manager, Safety and Industrial Security (S&IS),
Inspection, etc. It also relies upon information from the
Pre-commissioning and Mechanical Completion plan.
The ORP is a document that defines how the project will transition
into an operating facility and will describe what “operational-type”
steps must be taken along the project planning and execution path
to have a flawless startup and initial operations. The ORP also
highlights and describes activities and resources aiming to ensure
the optimization of Operations and Maintenance activities over the
facility lifetime (starting after handover).
27) List of items exceeding (over-specification) Saudi Aramco
standards’ minimum requirements
28) Requesting/returning of drawings/tag numbers and using SmartPlant
templates and AutoSACS (see SAEP-334)
29) Identifying Operating Instructions for New Facilities and Project
Records requirements (see SAEP-121 and SAEP-122)
30) Compliance with security and control of Engineering Data
requirements (see SAEP-127)
31) Compliance with Value Assurance (VA) requirements (see SAEP-40)
32) Compliance with Value Improving Practices (VIPs) requirements
(see SAEP-367)
33) Compliance with Project Closeout Report requirements
(see SAEP-329)
3.2.3 Scope Change from DBSP
For all projects that follow the Capital Management System Efficiency
Enablers (CMSEE), the project scope shall be considered frozen on the
date of DBSP approval. Scope changes after DBSP approval shall be
avoided.
Note: The above shall be facilitated by ensuring the DBSP approval includes
all approvers’ commitment to eliminate scope changes after DBSP
approval.
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Should a scope change after DBSP approval be required, it shall be

documented by an approved Scope Change from Approved DBSP
Request (SCDR). For the SCDR form and process, see Exhibit IV.a and
Exhibit IV.b.
A) Definition of Scope Change
A scope change is defined as any deviation from the approved
DBSP. In addition to the DBSP deviations, any design that
exceeds the minimum requirements of MSAERs effective on the
DBSP approval date shall also be considered as a scope change.
Such changes shall be clearly identified in each of the interim and
final Project Proposal packages. The following are examples of
typical scope changes:
1. Design exceeding the minimum requirements of MSAERs
2. Changes in the project design basis such as equipment capacity
or system operating parameters
3. Addition or deletion of materials or equipment from the
original list provided to PMOD/Estimating Services Division
for preparation of the budget estimate
4. Plot plan changes as result of site investigation
5. Process control plan or system changes (change in I/O counts,
type of control system, etc.)
6. Other design changes as a result of the following:
 Changes in safety and security requirements
 Changes and/or updates in MSAERs
 Environmental Impact Assessment proposals
 Hazard and Operability (HAZOP) study
 Underground obstructions such as rock or utilities
interferences, etc.
 Building Risk Assessment or any other Loss Prevention
requirements
 Value Improving Practices proposals (see SAEP-367)
 Site investigations
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B) Initiation of Scope Change from Approved DBSP Request (SCDR)

As soon as a change is identified, the Construction Agency shall
initiate the SCDR form with a scope description, cost and schedule
impact. FPD shall determine if scope change is related to the
original project scope and intent, assess the impact of change, and
provide direction, i.e., should the scope change be processed.
For required approvals, see Exhibit IV.a.
C) Notification and Implementation of Scope Change
Upon approval of the SCDR form, FPD shall issue a DBSP
addendum or amendment to the Construction Agency within two (2)
weeks of the SCDR approval. FPD shall distribute a copy to
PMOD)/ESD and the Capital Program Efficiency Department
(CPED)/PVAD. The IPT shall incorporate the approved scope
change into the project scope. All other deliverables which are part
of the Value Assurance Review Plan shall be updated in accordance
with the DBSP amendment and shared with CPED/PVAD.
D) Recording of Scope Change
All approved SCDRs shall be included in the Project Proposal and
ER Estimate Packages. The required documentation shall include
the summary list included in Exhibit IV.c. and all supporting
documents required for SCDR approval. The complete summary
list shall be included in the Project Proposal approval package as
indicated in Section 6.1.1.
3.2.4 Communication Requirements
Saudi Aramco projects require both temporary (during construction) and

permanent communication systems. As procurement approval for radio
frequencies and materials involves long lead times, communication
systems require early identification and coordination between
Information Technology organization and SAPMT. To facilitate these
requirements, the Project Proposal shall contain the following:
a) Summary of temporary and permanent communication system
requirements.
b) Identification of additional communication facilities and/or
modification to existing facilities necessary to meet the project
requirements.
c) Identification of communication requirements to be handled by
Information Technology organization and those which shall be
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provided and funded by the project.

d) Schedule of communication material requirements with an estimated
site required delivery date.
e) Identification and implementation plans of all communication
disaster recovery and business continuity aspects of the projects.
3.2.5 Safety & Fire Protection (SAFs) and Security (SECs) Requirements
The SAFs and SECs requirements (reference SAES-B and SAES-O-

series) shall be adhered to by all projects, in accordance with the
directives given to Saudi Aramco by the Saudi Arab Government's High
Commission for Industrial Security (HCIS).
The SAPMT shall contact relevant Departments of the Safety and

Industrial Security (S&IS) organization, Dhahran for assistance and to
obtain current safety and security requirements before proceeding with
Project Proposal engineering. A separate section in the Project Proposal
shall be devoted strictly to safety and security requirements.
3.2.6 Studies and Assessments
Perform all required engineering studies, assessments and calculations,

(e.g., ETAP, HAZOP, RAM and Safety Integrity Level “SIL” studies,
Building Risk Assessment, Process Automation Systems analysis, etc.)
including those defined in the Capital Management System
documentation, must be carried out regardless of contracting strategy
adopted (e.g., LSTK, LSPB, etc.).
Note: Per the CMS, Preliminary Hazard Analysis is completed during the
FEL2 DBSP phase.
Recommendations and/or closure report(s) shall be produced and

included in the Project Proposal package. The recommendations to be
implemented or addressed during the detailed design and later stages
shall be clearly identified and included in these report(s). The Project-
Leader/Manager is to provide oversight to ensure that addressing
recommendations resulting from studies and assessments are planned
and tracked as an activity.
Any cost impact as a result of the studies must be identified and included
in the ER Estimate package.
3.2.6.1 Hazard and Operability (HAZOP) Study
The objective in performing a HAZOP study is to improve
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process safety and/or minimize operability problems.

The SAPMT in conjunction with the Loss Prevention
Department, Process & Controls System Department and
Environmental Protection Department shall decide which
projects and specific facilities require a complete HAZOP study.
Duplicate facilities shall not require a new HAZOP study.
Only new or upgraded facilities that use, produce, process,
transport, or store flammable, explosive, toxic (including sewer
gases, e.g., H2S), biological or reactive substances in large
quantities are candidates for the complete HAZOP study.
Recommendations from this HAZOP study shall be incorporated
into the Project Proposal design. Recommendations and/or
closure reports (including recommendations to be implemented
or addressed during the detailed design and later stages) shall be
produced and included in the Project Proposal package.
For further details and guidance, see SAEP-12 and SAER-5437.
3.2.6.2 Reliability, Availability and Maintainability (RAM) Study
The objective in performing the RAM study in capital projects is

to ensure that competing technologies, designs, licenses, and
sparing capacity including oversized design and capital spares
requirements, are evaluated and optimized in order to secure
Capital Operational Efficiency through the Net Present Value
(NPV) of the projects. The RAM study and its recommendations
shall be implemented in accordance with SAES-A-030.
Note: Initial RAM modeling/study is completed during the FEL2
DBSP phase. This study models, at high-level, the plants
and facilities overall production configuration and generates
results with regard to the set business targets of the
operating plants and facilities. Additionally, the RAM model
identifies the optimal availability figure(s) to be targeted by
design in order to deliver the plant’s business targets.
Using the information developed during the initial RAM study

in the FEL2 DBSP phase, the FEL3 Project Proposal phase
study shall cover all plants’ and facilities’ assets at the PFD
level.
3.2.6.3 Building Risk Assessment (BRA)
A Building Risk Assessment (BRA) shall be performed when

required by SAES-B-014. The BRA shall identify, evaluate and
recommend risk-reduction measures for buildings that are
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subject to unacceptable consequences from potential vapor cloud

explosion (VCE), fire, and flammable or toxic gas hazards.
This includes people or equipment critical to sustained
operations required to meet the target levels of operational
redundancy and reliability. The BRA shall be performed in the
early stages of the project where modifications can be made
without excessive cost and schedule impacts.
Note: Initial Building Risk Assessment (BRA) is completed during
the FEL2 DBSP phase. This BRA screens the building on
the basis of population and function to determine if a stage-
two building evaluation is warranted.
During the FEL3 Project Proposal phase, the stage-two BRA

evaluates hazards to the building from fires, explosions, and
toxic releases and identifies appropriate mitigation and risk-
reduction measures. For unusual cases where risk-reduction
measures are not clearly appropriate, a stage-three risk
management assessment will be made to evaluate the
acceptability of the risks associated with buildings of concern.
Input for the development of the final version of this

deliverable is provided by the Senior Project Engineer,
Inspection Coordinator, FPD and Senior Operations
representatives. Recommendations are made by the Safety
Specialist (SAPMT). These recommendations are agreed upon
by the Environment Protection and Loss Prevention
departments. Decisions are made by the Project Manager.
3.2.6.4 Process Automation System (PAS) Analysis and Safety

Integrity Levels (SIL) Assignment Study
Process Automation System (PAS) upgrades and/or expansion

projects shall require analysis of the installed PAS to ensure the
performance, availability, and compatibility of equipment that
will be utilized to control and monitor Saudi Aramco facilities.
For further details and guidance, see SAEP-16.
It is recommended that the SIL Assignment study be conducted

in parallel with the HAZOP study. SIL assignment and
verification, for emergency shutdown system (ESD) safety
instrumented functions (SIF) and the analysis of the spurious
trip rate (STR) that results by introducing an ESD safety
instrumented function into the process facility, shall be
accomplished in accordance with SAEP-250.
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3.2.7 Environmental Impact Assessment (EIA)
SAEP-13 establishes the approval process for and procedures necessary

to prepare the environmental impact assessment report. The approved
report shall include and clearly identify recommendations to be
implemented or addressed during the FEL3 Project Proposal phase and
later project stages.
The Project Leader/Manager is to ensure that recommendations resulting

from the EIA are planned and tracked as activities. Any cost impact
must be identified and included in the ER Estimate Package.
3.2.8 Mandatory Saudi Aramco Engineering Requirements (MSAERs) and

their Waiver
Projects shall meet the requirements of Mandatory Saudi Aramco

Engineering Requirements (MSAERs), which are in effect on the DBSP
approval date. Changes to MSAERs approved after this date shall be
mandatory only when:
 Changes affect safety, health, environment or security highlighted by
the concerned organization.
 Changes result in cost savings to the project.
The impact of changes on the project shall be reviewed by the IPT and
other stakeholders to determine applicability and extent of
implementation. Only changes approved by the Project Manager and
concurred by the Project Sponsor shall be implemented to the project.
In the Project Proposal package include a list of Mandatory Saudi Aramco

Engineering Requirements specific to the project and their issue dates.
Identify standards, procedures, equipment and materials that will require

a waiver prior to incorporation into the facilities.
3.2.8.1 Include waivers (reference SAEP-302) that shall reduce project

cost without impacting the design, safety or operational
integrity of the facility.
Describe the deviation(s) in sufficient detail to permit technical

evaluation by the appropriate reviewing agency. Include
copies of waiver applications and approvals. Any approved
waiver that has an impact on the Project must be identified in
the Project Proposal and ER Estimate package and be
considered during the Project Risk Management Study.
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3.2.8.2 Deviations from Safety & Fire Protection (SAFs) and Security
(SECs) requirements shall be submitted in a letter format as per
SAES-O and SAES-B series standards that describe the
deviation in sufficient detail to permit technical evaluation by
the appropriate reviewing agency. For further details, refer to
above Section 3.2.5 and SAEP-302.
3.2.9 Drawing Index and Drawings
This section provides a list and copies of the drawings that define the
scope of the project. It shall include key drawings such as PFDs, P&IDs,
plant and equipment layouts, electrical one-line diagrams, 3D CAD and
other necessary drawings that are required to establish the design basis
and assist in producing an ER quality estimate.
3.2.10 Project Quality Plan
The Inspection Coordinator shall prepare Project Quality Plan (PQP) in

accordance with GI-0400.001 (with input from the Senior Project
Engineer) and obtain Inspection Department’s concurrence before its
approval by the Project Manager. The Inspection Coordinator through
Project Manager shall also ensure that the specific requirements for
inspection are included in Schedule “Q” for all applicable contracts.
3.2.11 Information Protection and Security Requirements
All projects shall adhere to security measures and controls for all
systems and solutions, including process automation systems, to comply
with security requirements in line with IPSAG and SAEP-99.
Note: Facilities Security Assessment (final) for Information Technology (IT) is
completed during the FEL2 DBSP phase.
3.2.12 Project Closeout Report Requirements
At the end of the FEL3 Project Proposal phase and subsequent phases,
progressive Project Closeout Reports are to be submitted by the Project
Manager (see SAEP-329). Therefore, it is recommended that SAPMT
includes the requirements in the Project Proposal contract and in the
contract(s) for later phases of the project to ensure that the requisite
information is provided by the contractor(s).
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3.3 Materials Related Requirements
3.3.1 General
The Project Proposal provides a table of major materials and equipment

identified for the project. During preliminary engineering (per approved
Material Procurement Strategy, see SAEP-12), the Engineering
Contractor, with guidance from the SAPMT and Materials Procurement
Coordinator, shall review the Company DC (9COM) Surplus and Excess
(9CAT) materials using SAP MMBE transaction to identify all
acceptable or substitute materials which are available in Saudi Aramco
inventories for possible use on the project, with the objective of:
a) Incorporating materials, which require the least new cash outlay to
Saudi Aramco
b) Making maximum economic use of the materials available from
surplus and excess cataloged material inventories
c) Making maximum economic use of locally manufactured materials
d) Providing full justification for any proposed purchases of contingent
quantities or non-installed spares
During Project Proposal preparation, the SAPMT (through Materials

Procurement Coordinator) shall request formal review, and may request
assistance from the Materials Supply Organization (MSO) on all portions
of the plan that involve materials related aspects of the work. Regardless
of Procurement/Contracting- strategies, SAPMT and Materials &
Inspection Coordinators will continue to be responsible to ensure that the
purchase order is in acceptable technical compliance with relevant
MSAERs. Purchase Orders for inspect-able materials shall be reviewed
by Inspection Department (thru Inspection Coordinator) prior to
placement, to ensure compliance with the Regulated Vendor List, and the
Project’s Technical and Quality requirements.
If procurement of major equipment and materials is on the critical path

of the project schedule, SAPMT may elect to consider “novation” of
these items to reduce their impact on the project schedule. “Novation”
typically involves:
1. Placement of purchase order by the Project Management Contractor
or Project Proposal Contractor with commitment only for
engineering, and
2. After ERA, transfer the purchase order to the successful Contractor
on contract award (if LSTK contracting strategy).
Page 17 of 48
The purchase order transferred to the Contractor will cover the complete
scope involving engineering and manufacture. Use of novated purchase
orders should be approved as per of Supply Chain Manual (Volume I:
Saudi Aramco Procurement Manual, Section 1.7 Services Review
Committee “SRC”).
Prior to placement of novated purchase orders, SAPMT (through

Materials Procurement Coordinator) shall request a formal review from
Materials Supply and Engineering Services-appropriate departments to
ensure that Purchase Requisitions (Request for Quotation) for
inspectable materials indicate the correct 9COM and reference and
stipulate all relevant technical and inspection requirements (MSAERs).
SAPMT (through Materials Procurement Coordinator) shall address

novated purchase requisitions for inspectable materials only to Saudi
Aramco-approved manufacturers. The list of potential manufacturers to
supply an inspectable commodity shall be reviewed formally by
Materials Supply and Engineering Services-appropriate departments
(e.g., Inspection Department) to verify their current approval status.
Novated purchase orders for inspectable materials can only be placed

after receiving a formal no objection letter from involved Engineering
Services and Materials Supply departments.
Novated purchase order terms and conditions shall include all relevant
contract Schedule Q requirements related to material procurement and
manufacturing activities to ensure a smooth transition from the FEED
contractor to the project contractor.
3.3.2 Equipment and Materials Source List
The Project Proposal package shall include a list of equipment

and materials required for the project with their intended sources.
The materials source list identifies major equipment and materials items
(where possible, an estimated dollar value and quantity required shall be
indicated). It also indicates responsibility for inspection, expediting,
traffic and transportation. The Project Proposal effort shall develop
Quotation Requests (QRs) for major engineered equipment and critical
items, and issue these QRs to vendors on a “For Development Only” basis
to determine prices and delivery schedules. For purpose of preparing the
ER Estimate, the major equipment list shall include account number, the
item number, a brief description, the data sheet, a requisition number if
available, the estimated value and other pertinent information.
Page 18 of 48
The following areas shall be segregated:

a) Surplus Materials - 9COM Materials in Plant M011
b) Excess Cataloged Materials - Unrestricted use 9CAT Materials in
SAP transaction MMBE
c) Locally manufactured materials and vendor warehoused materials
(LDOR)
d) Cataloged Materials Reservation (9CAT)
e) Non-cataloged Materials (9COM)
f) Contractor procured Lump Sum Turnkey (LSTK) or Lump Sum
Procure/Build (LSPB)
g) Sole source materials and equipment
h) Materials procured under the Corporate Purchase Agreement(s)
3.3.3 Locally Manufactured Material
During Project Proposal development, the SAPMT (through Materials

Procurement Coordinator) shall obtain a current list of approved locally
manufactured materials and their sources from MSO. This list shall be
provided to LSTK & LSPB contractors to encourage use of locally
manufactured materials.
3.3.4 Critical Plant Equipment Unit Spares
A list of proposed installed spares for critical plant unit equipment and a
list of non-installed capital spares proposed for entry into Saudi Aramco
stores custody shall be provided along with the estimated cost for each
item and justification for purchase. Comparison shall be made between
spares specified in the Design Basis Scoping Paper and spares specified
in the Project Proposal.
3.3.5 Start-up Spare Parts
For LSPB contracts, the SAPMT shall specify start-up spare

responsibility including how they shall be provided, the financial impact
of purchase and final disposition of residual spares.
For LSTK contracts, Contractor is responsible for providing start-up

spares. Residual and/or unutilized start-up spares remain Contractor's
property; such spares may not be purchased from the Contractor by the
Construction Agency. Proponent at their discretion has the option to
purchase these residual spares against their Operating Budget for future
Page 19 of 48
use. Operations shall communicate with Materials Supply Organization

(MSO) to ensure the spares are reviewed against overall inventory needs,
and do not adversely affect existing supplies. Defined start-up spares
may be turned over to Saudi Aramco in accordance with the contract
requirements provided that the quantities and types are in accordance
with the Saudi Aramco stocking policy.
For LSTK and LSPB contracts, start-up spares responsibility for “free
issue” equipment provided by Saudi Aramco shall be stated clearly in the
contract.
3.3.6 Spare Parts Data Packages
SAPMT and the respective Contractors are responsible for the spare
parts information as outlined under SAEP-31. In all cases, the
SAPMT/Contractors shall provide complete and accurate spare parts data
packages necessary to support Saudi Aramco procurement of operating
spare parts.
3.4 Scheduling and Estimating Requirement
3.4.1 Scheduling Requirements
A Level III Project Summary Schedule shall be developed during the

Project Proposal phase. The schedule will be based on information from
the Project Milestone Schedule (Level II) developed during the FEL2-
DBSP phase, Work Element Release (WER) Schedules and any other
data as they become available during the FEL2 Design Basis Scoping
Paper (DBSP) and FEL3 Project Proposal phases. The schedule will be
fully resource loaded, including engineering and construction direct man
hours together with all major quantities of materials, at the task level and
will form the basis of the Revision 0 Project Completion Schedule (PCS)
when ER Funding is has been achieved. This schedule will also be the
key document when performing a technical analysis of any submitted
bids received from contractors to determine if the bidders fully
understand the scope and complexity of each BI and to determine if any
major discrepancies exist in the estimates of both direct man hours and
major quantities of materials.
Upon review and acceptance of the Level III schedule by the SAPMT’s
Senior Project Engineer, the schedule will then be submitted by the
SAPMT Business Admin. Group for the concurrence of the Scheduling
Unit of the Project Management Office Department before any decisions
are made by the Construction Agency’s Project Leader/Manager.
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Project Summary Schedule should be developed as soon as Preliminary

Engineering starts and will be used as a “working” tool in the absence of
a detailed schedule by Contractor. The Project Summary Schedule shall
be used as a guide for ER estimate preparation, early identification of
long lead material procurement items, contracting strategy (final) and
technical evaluation of Contractors and start-up planning. As-Built
schedules from similar projects can be made available from PMOD
Scheduling Group to be used as a guide for the initial preparation of the
Level III schedule.
Project Summary Schedule shall address all the project life cycle
activities in a summary format. It must be logic driven, and based on the
Critical Path Method (CPM). The Schedule should contain sufficient
detail to show potential material or equipment “novation”, long lead
items, contract procurement activities, detailed engineering by discipline
leading to major deliverables, mobilization, early works, shutdown, hot
taps/stopple operations, tie-ins, testing, loop checks, pre-commissioning,
start-up, interface with Proponent and other projects as well as drilling
milestones, as applicable.
Project Summary Schedule shall also include ER estimate preparation

and approval activities including Estimate Kick-off, milestone dates for
Scope Compliance and any ER Estimate reviews or any other design
reviews, MTOs for the relevant disciplines, equipment pricing,
NOVATION of equipment and/or Prior Approval Expenditure Request
(PAER), Technical Review Meetings, and the final approval of the
Project Proposal and 56D preparation and submittal to the Facility
Planning Department (FPD).
The Project Summary Schedule MUST be fully resource loaded (with

the latest man hour and major equipment estimates) and it shall form
the basis for the original (Rev.0) Project Completion Schedule (PCS).
The Project Summary Schedule should contain appropriate level of detail
while still supporting critical and key milestone dates defined and
prescribed in the contract (Schedule “B”). The Project Summary
Schedule is expanded to include critical milestone dates as well as any
other key milestones that are provided by the Contractors. If “novation”
materials and equipment are included in the execution plan, the purchase
order date and required delivery date should be incorporated in the
schedule. The schedule shall include review time requirements specified
in SAEP-303.
For reference, see Cost & Scheduling Manual available on the

PMOD/PEMD website. Contact Scheduling Unit in PMOD for more
Page 21 of 48
detailed information on Project Summary Schedule and assistance, if

required.
3.4.2 ER Estimate Requirements
Project Proposals must be completed and approved in time to support the

Expenditure Request Approval (ERA) date. The SAPMT shall comply
with the requirements of SAEP-25 for developing the ER Estimate Plan,
arranging the initial kick-off and subsequent ER Estimate Review
Meetings, preparing & submitting the ER Estimate package, pre-bidding
(to improve the estimate accuracy), assisting in Market Outlook Study
and Market Risk assessment, etc.
Note: The ER Estimate requirements specified in SAEP-25 supersede the
provisions listed herein.
SAPMT may contact PMOD/Estimating Services Division (ESD) for

assistance with this section, if required.
3.5 Appendix
The Appendix shall include letters, minutes, land use permits and other pertinent
documents written during Project Proposal development.
3.6 Numbering Project
All Project Proposals shall be numbered by the issuing office as follows:

Saudi Aramco APP Series (Numbers assigned by the Technical Information
Center, Dhahran)
ASC TPP Series (Numbers assigned by the Technical Services
Dept/Engineering Unit, Houston)
APP or TPP numbers shall be on the Project Proposal cover sheet.
3.7 Training Impact Assessment
SAEP-140 requires that a Training Impact Assessment (TIA) be prepared as part

of the Project Proposal for all projects for which training programs for
operations and/or maintenance personnel will be required. These training
programs will not be provided by the project and costs for training pre- and post-
commissioning are not be paid for by capital funds (also, refer to GI-0202.309).
As an integral part of the Operational Readiness Plan, the Proponent (Senior

Operations Representative) is responsible for identifying any training
requirements for a project and ensuring that these requirements are met during
Page 22 of 48
the Project planning and execution phases. To meet this objective, Senior
Operations Representative shall prepare a Training Requirement Statement
(TRS). SAPMT (Project Manager) will provide equipment identification and
any details that may assist Proponent in preparation of the TRS. The Proponent
will provide the completed TRS to the Training & Development’s Early BI
Training Planning Team (EBTP) to complete a Training Impact Assessment
(TIA). If training is to be required, EBTP shall submit TIA’s Knowledge &
Skills Matrix’ (KSM) data to SAPMT for inclusion in the Project Proposal, in
accordance with SAEP-140. SAPMT is responsible for incorporating the
findings of the Training Impact Assessment in the final Project Proposal.
SAPMT may also be required to implement the findings of the Training Impact
Assessment as included in the approved Project Proposal. These may include:
 Incorporating contract provisions that require the Contractor to develop
multiple quotations for specified equipment so that the cost of training can
be taken into consideration when selecting the life-time, low-cost supplier.
These provisions will allow Saudi Aramco to direct the Contractor to place
its order with one of the proposed technically acceptable suppliers and will
provide for additional payment to the Contractor if the selected supplier did
not offer the lowest base price to the Contractor.
 Incorporating requirements for the Contractor to include provision in its
purchase orders for specified equipment that establish fixed prices for
training services or material to be procured at a later date by Saudi Aramco.
This will reduce the possibility of a supplier overcharging Saudi Aramco
when training services or materials are procured on a single-source basis.
 Providing the vendor training plans and quotes for the equipment identified
for training to the EBTP team for analysis. After the initial analysis of the
vendor training plans and quotes, the EBTP team will provide training
recommendations to SAPMT for considerations during the vendor selection
process.
After vendors have been selected, SAPMT will provide the EBTP team a list of
the specific equipment required for training, general vendor data information,
training scope, cost and schedule required for training prior to commissioning.
4 Project Improvement Effort
This section consists of practices that when implemented would optimize project cost,
schedule & quality and enhance the efficiency of project planning and execution.
Budgeting for conducting value practices is included in the Preliminary Engineering
funds.
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4.1 Value Improving Practices
SAPMT shall implement applicable Value Improving Practices (VIPs) in

accordance with SAEP-367.
SAPMT may contact PMOD/Project Execution Optimization Division (PEOD)

for assistance with this section, if required.
4.2 Benchmarking
A project with a value of $500MM or greater is required to be benchmarked in

accordance with SAEP-26. PMOD/Project Execution Intelligence Division
(PEID) will coordinate with SAPMT and FPD for selected projects to be
benchmarked (internally and/or externally) during the FEL3 Project Proposal
phase.
4.3 Target Setting
Target Setting is one of the five efficiency enablers of the Capital Management
System (CMS). SAPMT, FPD and PMOD, as part of the Integrated Project
Team, are responsible for developing target setting for the projects. For further
details regarding roles and responsibilities, the target setting process and project
requirements, refer to the latest Target Setting Manual.
4.4 Market Outlook Study
According to the size, complexity, uniqueness and level of project importance,

a market outlook study shall be performed as agreed with PMOD/ESD.
As a minimum, it shall be required for mega-projects ($1 billion and above).
For details, see SAEP-25.
4.5 Energy Optimization Study
Per new Capital Management System (CMS), Energy Optimization study is

completed during the FEL2 DBSP phase.
4.6 Corrosion Management Program
Any new project or major upgrade of a process facility shall be required to

implement a Corrosion Management Program (CMP) as specified in Section 8 of
Saudi Aramco Engineering Standard SAES-L-133. The purpose of the program is
to reduce the total cost of ownership and to minimize the operational, safety, and
environmental impact of corrosion and material failure. The program will include
an integrated plan to address all corrosion and material degradation aspects,
material selection, corrosion protection, corrosion monitoring, chemical treatment
and corrosion risk assessment for all mechanical equipment, piping and fittings
Page 24 of 48
during the design, procurement, construction and commissioning of the facility.

The CMP shall be submitted for review and approval by the Coordinator, Asset
Reliability & Integrity Management Division of Consulting Services Department
(CSD).
5 Reporting and Review Requirements
5.1 Project Proposal Distribution for Review and Meetings
Draft Project Proposals shall be distributed for review to the appropriate

members of Saudi Aramco Management and attendees of the Technical Review
and Project Proposal Meetings. Distribution of the Project Proposal narrative
shall be in electronic format (in Microsoft Word).
Note: The e-Review system is the Company’s standard web-based system for the
review of Project Proposal packages, and engineering drawings/documents.
SAPMT shall submit review packages through this system unless there is a
compelling reason to do otherwise. For numbers, types of reviews, procedures
and guidelines, see SAEP-303.
The SAPMT and Proponent (Senior Operations Representative) are responsible

for determining the recipients. As a minimum, the following represents a list of
various organizations that shall be considered for receipt of the Project Proposal.
However, only those organizations with direct involvement shall receive the
Project Proposal.
Executive Management:
- Proponent Organizations, i.e.;
Refining & NGL Fractionation
Northern Area Oil Operations
Southern Area Oil Operations
Pipeline, Distribution & Terminals
Gas Operations
- Petroleum Engineering and Development (for production-related projects)
General Management:
- Industrial Security Operations
- Proponent organization
Page 25 of 48
Management:
- Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products movement and
handling)
- Communications Engineering & Technical Support Department
(for all projects involving communications)
- Projects & Strategic Purchasing Department
- Transportation & Equipment Services Department
- Power Operations Department (relevant)
(for all projects related to power facilities at 2.4 kV and above)
- Abqaiq, Dhahran or Ras Tanura Utilities Department
(for the area community projects only)
- Facilities Planning Department (mandatory)
- Consulting Services Department
- Inspection Department
- Environmental Protection Department
- Process & Control Systems Department
- Industrial Security Support Department
- Loss Prevention Department
- Fire Protection Department
- Project Management Office Department (for information only)
- Capital Program Efficiency Department (for Value Assurance Reviews)
5.2 Technical Review Meeting
The Technical Review Meeting shall be held no sooner than ten (10) working
days after distribution of the Project Proposal for review. Location, date, and
time of the meeting shall be announced in the cover letter distributed with the
Project Proposal. The Technical Review Meeting shall discuss all technical
aspects of the Project Proposal, resolve technical questions, address
environmental issues and review the Project Summary Schedule. Interim
technical review meetings shall be conducted as required by SAPMT depending
upon the type and complexity of the project. Items not resolved at the final
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technical review meeting shall be addressed in the Project Proposal Meeting.

Substantive changes resulting from the technical review meeting shall be
incorporated as appropriate into the Project Proposal documents.
SAPMT shall prepare minutes of the Technical Review Meetings and distribute
the minutes, electronically whenever possible, to all persons who either received
the Project Proposal or attended the Technical Review Meeting. The minutes
shall include the estimated cost and schedule effects of changes from the
DBSP/Project Proposal as originally prepared. Refer to Section 3.2.3 for
definition of scope change and its approval process.
The subject of critical plant equipment unit spares (capital spares) per Section 3.3.4
shall be addressed, and proposed purchases shall be reviewed.
5.3 Project Proposal Meeting
The purpose of the Project Proposal Meeting is to resolve any outstanding items
remaining after the Technical Review Meeting and to finalize the project scope.
The Project Proposal Meeting shall be scheduled no sooner than five (5)
working days after distribution of the minutes of the Technical Review Meeting.
The delegated representatives of the Project Proposal approval authorities

(Section 6.1.1) shall attend this meeting in order to make decisions on matters
not resolved in the Technical Review Meeting.
SAPMT shall be responsible for preparing and distributing the minutes of the
Project Proposal Meeting to those persons who either received a copy of the
Project Proposal or attended the Project Proposal Meetings.
For selected small projects, the Technical Review and Project Proposal
Meetings can be combined into one meeting, with the concurrence of the
Proponent and FPD. In this case, the reviewing organizations should send
personnel authorized to make decisions to attend the meeting.
5.4 Distribution and Storage of Approved Project Proposals
Following the approval of the Project Proposal, a final approved copy shall be
distributed as follows:
5.4.1 Aramco Services Company (ASC)
An electronic copy of every Project Proposal shall be sent to ASC,

Technical Services Dept/Engineering Unit, Houston.
Page 27 of 48
5.4.2 Saudi Aramco
SAPMT shall send electronic copies of the approved Project Proposal to:
- Facilities Planning Department (FPD) - one hard copy, to be used as a
“working” document for five years or for the duration of the project,
whichever is longer.
- Technical Information Center (TIC) - one electronic copy for archival
purpose.
- Project Management Office Department (PMOD) - one electronic
copy, for Estimating Services Division (ESD) use and record.
The electronics file submissions shall be on CD-ROM and contain an

index at the beginning of each file medium to facilitate retrieval of stored
data. The electronic text, spreadsheet, and graphical data shall be in
Microsoft format, and drawings shall be in accordance with Saudi
Aramco standards and formats. Scanned documents shall be in Acrobat
format in accordance with the corporate standard maintained by
EK&RD/Drawing Management Unit.
6 Approvals and Waivers
6.1 Approval Process
6.1.1 Approvals
SAPMT shall be responsible for obtaining approval for the Project

Proposal from the appropriate individuals listed below. SAPMT may
add individuals/departments to the list, when required. Executive
Management may delegate the approval authority to General
Management level.
- Manager, Construction Agency Department
- Manager, Facilities Planning Department
- Manager, Consulting Services Department
- Manager, Environmental Protection Department
- Manager, Process and Control Systems Department
- Manager, Proponent Department
- Manager, Loss Prevention Department
- Manager, Fire Protection Department
Page 28 of 48
- Manager, Power Operations Department (relevant)

(for all projects having power facilities of 2.4 kV and above)
- Manager, Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products
movement and handling)
- General Manager, Industrial Security
- General Manager, Proponent (if any)
- General Manager, Area Construction Agency (if any)
- Vice President, Petroleum Engineering and Development
(for production-related projects)
- Vice President, Engineering Services
- Vice President, Proponent Organization
- Vice President, Construction Agency
The required approvals shall be obtained through SAP using the Project
Proposal e-Approval (PPeA) System. Project Proposal approval package
shall comprise of maximum ten (10) documents and those include:
1) Project proposal checklist,
2) Project summary,
3) Minutes of all the technical review meetings,
4) Minutes of project proposal meeting,
5) Comments’ log,
6) List of scope changes from the approved DBSP (see Exhibit IV.c),
and
7) Other applicable documents (up to four numbers).
Note: Hardcopy approvals shall be allowed only if there are compelling
reasons and prior concurrence from the Manager, PMOD.
For Project Proposal Approval routing, see Exhibit V. Obtaining

approvals (signatures for hardcopies) constitutes full Project Proposal
approval.
6.1.2 Unresolved Items
If unresolved items exist that would preclude obtaining approvals as

described in Section 6.1.1, SAPMT shall refer any unresolved item(s)
through appropriate channels of authority until resolution is obtained.
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The Project Proposal minutes shall show the estimated cost and schedule
effects of any changes from the DBSP/Project Proposal as originally
prepared.
6.1.3 Changes to an Approved Project Proposal
For a project with an approved Project Proposal which has not yet
received Expenditure Request (ER) approval, scope changes shall be as
per Section 3.2.3.
The proposed change in the meeting minutes or an addendum shall

include justification and the cost/schedule/risk impact. The required
minimal approval authority for the proposed change is Construction
Agency Project Manager level.
SAPMT shall distribute the approved changes to PMOD and all

organizations that received the original approved Project Proposal.
Note: All scope changes after the Expenditure Request Approval (ERA) shall
be dealt in accordance with GI-0020.520 - Project Change Request.
6.2 Project Proposal Waiver
6.2.1 Request
For selected projects, Construction Agency Department may request to

waive the requirement for a Project Proposal/Front End Engineering
Design (FEED) and proceed directly with detailed design using
preliminary engineering funds. This request will permit SAPMT to
use Engineering Work Order (EWO) funds for preliminary engineering
(see GI-0202.451) to carry out detailed design, perform selected project
proposal requirements and to prepare an ER quality estimate for funding
approval. Project Proposal waiver does not exempt ER Estimate, Project
Execution Plan, Saudi Government’s safety and security directives and
Value Improving Practices requirements.
6.2.2 Approval
To obtain a waiver of Project Proposal and proceed with detailed design

the Construction Agency Department Manager shall prepare a formal
letter (concurred by the Project Sponsor) requesting approval to carry out
detailed design during Project Proposal. The letter shall be addressed to
Vice Presidents/Executive Heads of the Construction Agency, and
Proponent organization. The letter should state the present situation,
scope of work, justification for the waiver and identify what project
proposal requirements, if any that will be performed during detailed
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design. Approval is accomplished once request is accepted and signed

by the addressees.
Note: The Construction Agency shall communicate approved waivers to
CPED for all projects following the CMSEE (see SAEP-40).
7 Contract Bid Package
As applicable, the Contract Bid Package will be developed in close coordination with
the Contracting Department. Refer to Contract Development Checklist (Exhibit VI), for
key activities in developing Contract Bid Package.
A complete Contract Bid Package shall be prepared in accordance with Supply Chain
Manual and typically contain the following:
 Invitation for Bid documents
 Technical Proposal documents
 Commercial Proposal documents
 As part of Commercial Proposal requirements, Bidders shall be required to submit a
Bid Quantification Summary as shown on Exhibit VII for bid analysis purposes.
Note: Copies of the final Bid Quantification Summary from the successful bidder will be
provided to PMOD/ESD.
 Fully developed and approved Contract documents which include Schedules A

through F, H (as applicable), Q and S.
Issue for Bid package (normally prepared by Engineering Contractor) which includes,
but is not limited to, drawings, specifications, applicable reports, and other relevant
documents necessary to define the project requirements and clearly describes the
contract scope of work. SAPMT should take into consideration the current project
execution plan and responsibilities of all contractual parties when revising the Project
Proposal package to “Issue for Bid” Package.
The following sections in the Project Proposal package should be reviewed carefully to
determine if they are applicable for inclusion in the bid package. If they are to be
included, SAPMT shall modify as required to ensure that Contractor’s scope of work is
clearly defined in the “Issue for Bid” Package:
 Project Schedule
 Training requirements
 Land Permits
 Operating Variables (as required by OSPAS)
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 Strategy for projects compliance with quality requirements

 Project- Risk Management Plan, Risk Assessment Report and Risk Register
 Temporary construction and communications
8 Conflicts and Deviations
8.1 Any conflicts between this procedure and other applicable Saudi Aramco
Engineering Procedures (SAEPs), shall be resolved in writing by the General
Supervisor, Project Execution Optimization Division (PEOD), Project
Management Office Department (PMOD) of Saudi Aramco, Dhahran.
8.2 Direct all requests to deviate from this procedure following internal Company
procedure SAEP-302 and forward such requests for review to General Supervisor
PEOD and approval to the Manager, PMOD of Saudi Aramco, Dhahran.
9 Exhibits
The intent of the checklists is to facilitate the review and ensure all key requirements
are considered, but not to cover all detailed requirements as stated in this procedure.
I Project Proposal Checklist
II Front End Loading (FEL) and Project Characterization
III List of FEL Deliverables (Recommended)
IV Approval of Scope Changes from Approved DBSP- Request (SCDR)
V Project Proposal Approval Routing
VI Contract Development Checklist
VII Bid Quantification Summary
Revision Summary
31 May 2015 Major revision to address ATP-Capital Efficiency’s CMS requirements. Added missing
references, listing of MSAERs/Over-specs items/design, RAM study, and requirements for
assigning Tag numbers, returning unused Drawing numbers and using Drawings/Data files
formats and Security and Control of Engineering Data. Additionally, added Operating
Instructions, Projects Records, Project Closeout Reports and Project Proposal electronic
approval requirements. Deleted duplicate text and exhibits with other SAEPs.
Page 32 of 48
EXHIBITS
TABLE OF CONTENTS
EXHIBIT I PROJECT PROPOSAL CHECKLIST
EXHIBIT II FRONT END LOADING (FEL) and PROJECT CHARACTERIZATION
EXHIBIT III FEL DELIVERABLES (RECOMMENDED)
EXHIBIT IV SCOPE CHANGE FROM DBSP- REQUEST (SCDR)
EXHIBIT V PROJECT PROPOSAL APPROVAL ROUTING
EXHIBIT VI CONTRACT DEVELOPMENT CHECKLIST
EXHIBIT VII BID QUANTIFICATION SUMMARY SHEET
Page 33 of 48
EXHIBIT I – PROJECT PROPOSAL CHECKLIST
Item Ref. Section Description Complied

Complete all FEL3 Project Proposal deliverables required
a 3
for the Value Assurance (see SAEP-40)
Include Project Proposal related documents as described
1 3.2.2
in Section 3.2.2
2 3.2.3 Document approved Scope Changes from DBSP
Comply with Temporary and Permanent Project
3 3.2.4
Communication Requirements
Comply with Safety and Fire Protection (SAFs) and
4 3.2.5
Security (SECs) Directives
Perform required Studies and Assessments (e.g., ETAP,
5 3.2.6
HAZOP, SIL and RAM studies, BRA, etc.)
6 3.2.7 Perform Environmental Impact Assessment
Apply and obtain approval of Waivers from Mandatory
7 3.2.8
Saudi Aramco Engineering Requirements (MSAERs)
Include a list of drawings and drawings that define project
9 3.2.9
scope
Prepare Project Quality Plan as per GI-0400.001 including
10 3.2.10
Schedule “Q”
11 3.2.11 Fulfil Information Protection and Security Requirements
12 3.2.12 Fulfil Project Closeout Report requirements

Review Surplus and Excess Inventory and Long lead-
Time Equipment & Materials requirements. Also,
13 3.3.1
identify project’s major material and equipment to be
reviewed by Inspection Dept.
14 3.3.2 Develop major Materials and Equipment Source List
Obtain a list of approved Locally Manufactured products
15 3.3.3
and source
16 3.3.4 Develop a list of Critical Plant Equipment Unit Spares
Page 34 of 48
Item Ref. Section Description Complied

Identify required Start-up Spares with Proponent with
17 3.3.5
concurrence of MSO
18 3.3.6 Fulfill Spare Parts Data packages needs
19 3.4.1 Prepare Level III Project Summary Schedule
20 3.4.2 Prepare ER Estimate Package (per SAEP-25)

Review Project Training Impact Assessment
21 3.7
(see SAEP-140) and identify required implementation
Comply with Value Improving Practices (including Project
22 4.1
Risk Management) requirements (see SAEP-367)
23 4.2 Comply with Benchmarking requirements (see SAEP-26)
24 4.4 Comply with Corrosion Management Program
Page 35 of 48
EXHIBIT II – FRONT END LOADING (FEL) and PROJECT CHARACTERIZATION
Front End Loading (FEL) Phases
Project Characterization
Page 36 of 48
EXHIBIT III.a – FEL DELIVERABLES (Recommended for Projects above $20MM)
FEL 2 FEL 3
Project Finalize
Sr. # Deliverable list DBSP
Proposal FEL
1 Proposed Integrated Staffing Assignment A,B,C,C1 A,B,C,C1
2 VIP - Project Lessons Learned (LLI & LLC) A,B,C A,B,C
3 Deliverable Waiver Request A,B,C,C1 A,B,C,C1
4 Project Charter A,B,C A,B,C,C1
5 Basic Data Requirements A,B,C,C1
6 Target Setting A,B,C,C1 A,B,C,C1
7 Environmental Impact Assessment A,B,C,C1 A,B,C,C1
8 Business Case Assessment A,B,C,C1 A,B,C,C1
9 Contracting Strategy A,B,C,C1 A,B,C,C1
10 Project Execution Plan A,B,C A,B,C,C1
11 Operational Readiness Plan (ORP) A,B,C,C1 A,B,C,C1
12 VIP - Project Risk Management (PRM) A,B,C,C1 A,B,C,C1
13 Schedule A,B,C,C1 A,B,C,C1
14 Cost Estimate A,B,C,C1 A,B,C,C1
15 Brief and Presentation A,B,C,C1 A,B,C,C1
16 Project Assurance Reviews Plan A,B,C,C1 A,B,C
17 Assurance Review Report A,B,C,C1 A,B,C,C1
18 Gatekeeper Submittal A,B,C,C1 A,B,C,C1
19 Gate Outcome Report A,B,C,C1 A,B,C,C1
20 Facilities Security Assessment for IT A,B,C
21 Land Use Permit - Saudi Aramco and Government A,B,C
22 Design Basis Scoping Paper (DBSP) A,B,C,C1
23 Procurement strategy and material procurement plan A,B,C,C1 A,B,C,C1
24 Plot Plans A,B,C,C1 A,B,C,C1
25 Preliminary Funding Request A,B,C,C1 A,B,C
Page 37 of 48
FEL 2 FEL 3
Project Finalize
Sr. # Deliverable list DBSP
Proposal FEL
26 VIP - Constructability Review Report A,B,C A,B,C
27 Waste Minimization Report A,B,C
VIP - Process Simplification Report (covered in
28 A,B,C
Value Engineering)
29 Energy Optimization Report A,B,C
30 Customizing Standards and Specifications Report A,B,C
31 Reliability Simulation Modelling Report A,B,C
VIP - Design to Capacity Report (covered in Value
32 A,B,C A,B,C
Engineering)
33 VIP - Value Engineering (VE) Study A,B,C A,B,C
Design for Maintainability Report [by Corporate
34 Maintenance Services Division (CMSD) of A,B,C A,B,C,C1
Industrial Services (IS)]
35 VIP - Planning for Startup Report A,B,C A,B,C,C1
36 Preliminary Process Hazard Analysis A,B,C,C1
37 Building Risk Assessment A,B,C,C1 A,B,C
38 Facilities Security Assessment Report A,B,C,C1
39 VIP - Interface Mgmt / Project Interface Mgmt Plan A,B,C,C1 A,B,C
VIP - Project Planning & Team Alignment /
40 A,B,C,C1 A,B,C,C1
Stakeholder Management Plan
41 Pre-Commissioning & Mech. Completion Plan A,B,C,C1 A,B,C,C1
42 Predictive Maintenance Report (by CMSD of IS) A,B,C
43 VIP – Project Definition Rating Index (PDRI) A,B,C
44 VIP – Schedule Optimization (as needed basis) A,B,C,C1
45 Project Proposal Reviews (30-60-90%) A,B,C,C1
46 Project Proposal Package A,B,C,C1
47 Project Quality Plan A,B,C,C1
48 Project Records Book A,B,C,C1
49 Contracts Procurement & Bid Evaluation A,B,C,C1
50 Contractor Quality Prequalification A,B,C
Page 38 of 48
EXHIBIT III.b – FEL DELIVERABLES (for Projects up to $20MM)

(√ Symbol shows recommended deliverables)
FEL 2 FEL 3
Project Finalize
Sr. # Deliverable List DBSP
Proposal FEL
1 VIP - Project Lessons Learned (LLI & LLC) √
2 Project Charter √
3 Basic Data Requirements √
4 Environmental Impact Assessment √
5 Business Case Assessment √
6 Contracting Strategy √
7 Project Execution Plan √
Operational Readiness Plan (ORP) including
8 √
Pre-Commissioning & Mechanical Completion Plan
9 VIP - Project Risk Management (PRM) √
10 Schedule √ √
11 Cost Estimate √ √
12 Brief and Presentation √ √
13 Facilities Security Assessment for IT √
14 Land Use Permit - Saudi Aramco and Government √
15 Design Basis Scoping Paper (DBSP) √
16 Procurement strategy & material procurement plan √
17 Plot Plans √ √
18 Preliminary Funding Request √
19 Preliminary Process Hazard Analysis √
20 Building Risk Assessment √
21 Facilities Security Assessment Report √
22 Project Proposal Reviews (30-60-90%) √
23 Project Proposal Package √
24 Project Quality Plan √
25 Project Records Book √
26 Contracts Procurement & Bid Evaluation √
Page 39 of 48
EXHIBIT IV.a – SCDRs APPROVAL FORM (Format)

(Hold down Ctrl key and click => Exhibit IV.a for editable file)
Page 40 of 48
EXHIBIT IV.b – SCDR’s ROUTING
SAPMT initiates Scope Change from Approved DBSP – Request (SCDR)

(Defining change scope and indicating expected cost and schedule impact)
Construction Agency’s Project Manager concurs on SCDR
FPD evaluates SCDR’s Impact on the Project

`
Is change closely
related to original scope and
Project’s intent?
Yes/No
FPD provides directions on SCDR-Form
Should scope change

No
S
be processed? Return SCDR-
Form to Initiator
Yes
Construction Agency’s Department Manager concurs on SCDR
No
S
Project Sponsor approves SCDR Don’t process
scope change
Yes
FPD provides approved SCDR and DBSP addendum/amendment to SAPMT

(with copy to PMOD/ESD and CPED/PVAD and within 2-weeks of SCDR approval by the Project Sponsor)
SAPMT implements approved Scope Change into the Project’s scope, cost and schedule
SAPMT maintains all records and include approved SCDRs and their consolidated list in
Project Proposal package, Project Proposal Approval package and ER Estimate package.
Page 41 of 48
EXHIBIT IV.c – LIST OF APPROVED SCDRs
Title: Impact Date

SCDR
Brief Description: Cost Schedule
No. Initiated Approved
($MM) (Months)
Justification:
* Note: Enclose any supporting documents.
Page 42 of 48
EXHIBIT V – PROJECT PROPOSAL APPROVAL ROUTING
Project Proposal Approval Routing
After Completion of 90% FPD Manager

Review & Final Review
Meetings CSD Manager
VP Engineering
Services
EPD Manager
PMT Coordinator
(Select Depts., cords.,
P&CSD Manager
upload attachments &
Initiate workflow)
Proponent Dept. GM Prop. (if any) VP Proponent
Manager Organization
SPE or BA
(Insert Project Manager in LPD Manager
approval workflow and
approve)
FrPD Manager Manager
Construction
Ind Sec. Support Agency Dept.
Manager GM Ind. Security
Project Manager
ower p’n Dept GM Area
Manager Construction
Agency
Manager OSPAS Manager
Construction
Agency Dept. Manager VP Petroleum VP/ED
(as applicable) GM Pet. Eng. Eng.& Dev. Construction
Agency
VP X org.
Dept.Mgr.X (if req.) GM X (if req.)
(if req.)
Mandatory Approval Authority Approval Authority dependent on project type
Saudi Aramco: Company General Use
Page 43 of 48
EXHIBIT VI – CONTRACT DEVELOPMENT CHECKLIST

Following are the list of key activities for developing the contract package.
Item Description Included

Contracting Strategy
Develop/update and Approve Contracting Strategy – Required as
part of the Abbreviate PEP for all projects (SAEP-12). Strategy is
1
to be updated if there are changes during the progress of the
project.
Enter and maintain data on all contract action covered by the
2 Contracting Strategy in to the PMIS Contract Action Development
and Administration (CADA) module.
Pro Forma Contract and Specific Instructions to Bidders (SIB)
Complete preliminary Evaluation Plan so appropriate technical and
3
commercial questions are included in the SIB.
Secure approvals for all single source procurement as per Supply
4 Chain Manual (SCM) and include appropriate language in
Schedule “G.”
Complete Schedule “Q” language in accordance with approved
5 Quality Plan (GI-0400.001) and review proposed language with
Inspection as needed.
Include language relating to approved training requirements in the
6 form of a preliminary TIA consisting of the knowledge and skills
matrix and approved training requirements’ language (SAEP-140).
Review any language related to contractor-supplied LAN and PC
7
equipment with the appropriated IT office(s).
Include requirements for bidder price breakdowns as part of the
8 Commercial Proposals and quantity lists as part of the Technical
Proposals.
Hypothetical Quantities and Bid Conditioners
Prepare hypothetical quantities to be used to evaluate rates
9
proposed by the bidders (e.g., change order rates).
Prepare, in conjunction with other members of the Bid Review
10 Team, data to be used for allowed bid conditioner (e.g., different
SAPMT cost for various locations).
Page 44 of 48
Item Description Included

Bid Review
11 Prepare Bid Review Program
12 Prepare Technical Proposal Evaluation Criteria
Review of Contract and Contract Supplement as Part of the Bid
Review Team
Ensure that the Contract is structured correctly for SAP SRV
releases (for lump sum, three items – lump sum price, change
13
orders, and other expenditures; and use of “VAL” with the amount
in the “quantity” column).
Ensure that AEL includes reasonable amounts for all applicable

“Other Expenditures” (e.g., incidental services, Saudi manufacturer
14
equalization, stand-by time, reimbursable start-up and
commissioning assistance, variations from target quantities, etc.).
Ensure that the Contract Supplement includes an appropriate

15
Change Order limit (percent).
After award of the contract, provide copies of the bidders’ price

16
breakdowns and quantity lists to PMOD.
Note: For a project using an LSTK contracting strategy, these actions are required during or just after
the Project Proposal period. For other strategies (e.g., GES+ LSPB) some of the activities take
place at later stages of the project.
Page 45 of 48
EXHIBIT VII BID QUANTIFICATION SUMMARY SHEET
PROJECT TITLE : BI :
CONTRACT NUMBER : JO :
CONTRACT TYPE :
SUMMARY OF COST
BY WORK BREAKDOWN STRUCTURE (WBS)
BULK
AREA OF WORK ENGINEERING CONSTRUCTION TOTALS
MATERIALS
AREA OF WORK 1 $ $ $ $
TOTAL PROJECT COST $ $ $ $
SUMMARY OF QUANTITY AND COST

BY DISCIPLINE
DISCIPLINE DESCRIPTION UNIT QUANTITY COST UNIT COST
DEMOLITION
TOTAL DEMOLITION WORST L $ $
(SCA 007)
SITE PREPARATION /
DEVELOPMENT
(PLOT SIZE) SM $ $
TANK FARM DIKING CM $ $
CONCRETE CM $ $
CIVIL / STRUCTURE
(SCA 200 & 400) FENCE LM $ $
LANDSCAPING & IRRIGATION SM $ $
STRUCTURAL STEEL TONS $ $

BUILDINGS (TYPE OF BLDGS) SM $ $
TOTAL CIVIL/STRUCTURE
MANHOURS & COST MHRS $ $
STATIC EQUIPMENT EACH $ $

MECHANICAL/ HEAT EXCHANGERS EACH $ $
PROCESS
EQUIPMENT AIR COOLERS EACH $ $
(SCA 500)
PUMPS EACH $ $
COMPRESSORS EACH $ $
Page 46 of 48
OTHER PACKAGE EQUIPMENT EACH $ $

TOTAL MECHANICAL/PROCESS
EQUIPMENT MANHOURS & COST MHRS $ $
LENGTH OF PIPE RACK LM $ $

TONNAGE CARBON STEEL (PIPE
RACK) TONS $ $
UNDERGROUND CARBON STEEL
PIPING PIPING LM $ $
(SCA 600) ABOVEGROUND CARBON STEEL
PIPING LM $ $
TONNAGE CARBON STEEL PIPES TONS $ $
TOTAL PIPING MANHOURS &
COST MHRS $ $
TRANSMISSION LINE LENGTH KM $ $

MAIN SUBSTATION MW $ $
UNIT SUBSTATION MW $ $
ELECTRICAL ELECTRICAL CABLE TRAY LM $ $
(SCA 700) UNDERGROUND ELECTRICAL
CABLE LM $ $
ABOVEGROUND ELECTRICAL
CABLE LM $ $
TOTAL ELECTRICAL MANHOURS &
COST MHRS $ $
PROCESS CONTROL SYSTEM

(DCS/ESD/VMS) I/O $ $
CONTROL VALVE COUNT
(MOV/GOV/MANUAL) EACH $ $
FIELD INSTRUMENTS
(TRANSMITTERS/TGS) EACH $ $
INSTRUMENTATION FIRE & GAS DETECTION SYSTEM EACH $ $
(SCA 800)
INSTRUMENTATION CABLE TRAY LM $ $
UNDERGROUND
INSTRUMENTATION CABLE LM $ $
ABOVEGROUND
INSTRUMENTATION CABLE LM $ $
TOTAL INSTRUMENTATION
FIBER OPTIC CABLES LM $ $

COMMUNICATIONS
(SCA 780) COMMUNICATION EQUIPMENT EACH $ $
TOTAL COMMUNICATIONS
INSULATION AND FIREPROOFING

INSULATION & (EQUIPMENT, STRUCTURES,
COATINGS BUILDINGS, etc.) $ $
(SCA 900) TOTAL INSULATION & COATINGS
Page 47 of 48
TOTAL DIRECT CONST

TOTAL INDIRECT CONST
CONSTRUCTION
TOTAL CONSTRUCTION
TOTAL ENGINEERING MANHOURS

ENGINEERING
& COST MHRS $ $
TOTAL PROJECT COST DOLLARS $ $
ACTIVITY IN MONTH(S)
DETAIL DESIGN DURATION
SCHEDULING
CONSTRUCTION DURATION
EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME
DELIVERY
Page 48 of 48

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What is the purpose of the Project Proposal?

What is the purpose of the Project Proposal?

What are the main sections covered in the Project Proposal?

What are the main sections covered in the Project Proposal?

Engineering Procedure

SAEP-14 31 May 2015

Saudi Aramco DeskTop Standards

Exhibit I – Project Proposal Checklist…………... 35

Previous Issue: 13 February 2012 Next Planned Update: 31 May 2018

Primary contact: Doiron, Shannon Earl (doironse) on phone +966-13-8809161

Copyright©Saudi Aramco 2015. All rights reserved.

The Project Proposal is a document which establishes the preliminary (front-end)

The Project Proposal documents the agreement on and commitment to the

Department (FPD), Project Management Office Department (PMOD),

1.3 Preparation Timing

A complete ER Estimate Package must be submitted to Project Management

With the exception of Master Appropriation projects, Saudi Aramco requires a

1.5 Important Terms

4) Project Management is the Saudi Aramco Project Management

The latest edition of the applicable reference documents shall be applied:

SAEP-26 Capital Project Benchmarking Guidelines

 Saudi Aramco Information Protection Standards and Guidelines (IPSAG)

3 Project Proposal Contents

3.1 Table of Contents

3.2 Technical Requirements

3.2.1 Project Summary

This section provides a history of the existing conditions, a brief

3.2.2 Project Description

2) Facility/process description, design basis and performance

6) Listing of Mandatory Saudi Aramco Engineering Requirements

2) Fire protection drawings are to be stamped by the

23) Studies and Assessments (see Section 3.2.6)

3.2.3 Scope Change from DBSP

Should a scope change after DBSP approval be required, it shall be

B) Initiation of Scope Change from Approved DBSP Request (SCDR)

3.2.4 Communication Requirements

Saudi Aramco projects require both temporary (during construction) and

provided and funded by the project.

The SAFs and SECs requirements (reference SAES-B and SAES-O-

The SAPMT shall contact relevant Departments of the Safety and

3.2.6 Studies and Assessments

Perform all required engineering studies, assessments and calculations,

Recommendations and/or closure report(s) shall be produced and

3.2.6.1 Hazard and Operability (HAZOP) Study

The objective in performing a HAZOP study is to improve

process safety and/or minimize operability problems.

For further details and guidance, see SAEP-12 and SAER-5437.

3.2.6.2 Reliability, Availability and Maintainability (RAM) Study

The objective in performing the RAM study in capital projects is

Using the information developed during the initial RAM study

3.2.6.3 Building Risk Assessment (BRA)

A Building Risk Assessment (BRA) shall be performed when

subject to unacceptable consequences from potential vapor cloud

During the FEL3 Project Proposal phase, the stage-two BRA

Input for the development of the final version of this

3.2.6.4 Process Automation System (PAS) Analysis and Safety

Process Automation System (PAS) upgrades and/or expansion

It is recommended that the SIL Assignment study be conducted

3.2.7 Environmental Impact Assessment (EIA)