QUALITY PLAN

MBandC2 Investment
MB&C INVESTNENT PORT HARCOURT
 TABLE OF CONTENT
Contents
INTRODUCTION......................................................................................................................... 5
PROJECT DESCRIPTION................................................................................................................ 5
PROJECT LOCATION.................................................................................................................... 6
PLAN INTENT............................................................................................................................ 7
ISO 9001 CERTIFICATION AND COMPLIANCE..................................................................................... 7
REVISION AND DISTRIBUTION STATUS............................................................................................. 8
ABBREVIATIONS AND REFERENCE DOCUMENTS................................................................................. 9
ABBREVIATIONS........................................................................................................................ 9
REFERENCE DOCUMENTS........................................................................................................... 10
QUALITY POLICY...................................................................................................................... 12
PROJECT QUALITY POLICY.......................................................................................................... 12
PROJECT QUALITY OBJECTIVES.................................................................................................... 12
PROJECT ORGANIZATION........................................................................................................... 13
PROJECT ORGANIZATION CHART.................................................................................................. 13
QA/QC ORGANIZATION CHART.................................................................................................... 14
GENERAL DUTIES OF THE QAQC TEAM........................................................................................... 15
Detailed duties and responsibilities for key positions on the project are described below:..........................15
PROJECT MANAGER............................................................................................................. 15
PROJECT MANAGER............................................................................................................. 16
QUALITY MANAGER............................................................................................................. 16
ENGINEERING MANAGER.................................................................................................... 16
INSPECTION ENGINEER....................................................................................................... 17
QA/QC ENGINEER................................................................................................................ 17
NDT/NDE INSPECTORS........................................................................................................ 18
DIMENSIONAL CONTROL COORDINATOR/LEAD...................................................................18
QUALITY SYSTEM AUDITORS............................................................................................... 19
CERTIFIED PROFESSIONAL INSPECTOR............................................................................... 19
PROJECT QUALITY MANAGEMENT SYSTEM..................................................................................... 19
QMS DOCUMENT HIERARCHY..................................................................................................... 19
QUALITY SYSTEM DESCRIPTION................................................................................................... 19
DOCUMENT AND RECORDS MANAGEMENT.................................................................................... 20
PREPARATION AND REVISION OF PROJECT QUALITY SYSTEM DOCUMENT...............................................20
AMENDMENT CLAUSE............................................................................................................... 21
CONTROL OF QUALITY SYSTEM DOCUMENTATION...........................................................................21
INDEXING OF PROJECT SYSTEM DOCUMENTATION............................................................................ 21
VERIFICATION RECORDS............................................................................................................ 22
MANAGEMENT RESPONSILITY...................................................................................................... 23
MANAGEMENT COMMITMENT.................................................................................................... 23
QUALITY POLICY...................................................................................................................... 23
PLANNING.............................................................................................................................. 23
QUALITY PLANNING................................................................................................................... 23
PROJECT PLANNING AND SCHEDULING........................................................................................... 24
PROJECT BRIEFING..................................................................................................................... 24
DETAIL WORK SCOPE.................................................................................................................. 24
AMENDMENT OR CHANGE IN WORK SCOPE..................................................................................... 25
TECHNICAL QUERY/ TECHNICAL DEVIATION..................................................................................... 25
PROCEDURE DEVELOPMENT........................................................................................................ 25
. PROJECT SPECIFIC PLAN AND PROCEDURES.................................................................................... 26
RESPONSIBILITY & AUTHORITY.................................................................................................... 26
COMMUNICATIONS AND COORDINATION...................................................................................... 27
INTERNAL COMMUNICATION....................................................................................................... 27
FORMAL COMMUNICATION......................................................................................................... 27
COMMUNICATION MEETINGS...................................................................................................... 27
MANAGEMENT REVIEW............................................................................................................. 28
RESOURCE MANAGEMENT.......................................................................................................... 29
HUMAN RESOURCES................................................................................................................. 29
COMPETENCE, AWARENESS AND TRAINING.................................................................................... 29
INFRASTRUCTURE.................................................................................................................... 29
WORK ENVIRONMENT............................................................................................................... 29
REGULATORY CERTIFICATION REQUIREMENT.................................................................................. 30
ENGINEERING AND DESIGN QUALITY ASSURANCE.............................................................................. 31
ENGINEERING CHECKING AND REVIEW.......................................................................................... 31
DISCIPLINE INTERNAL REVIEW..................................................................................................... 31
Inter-Discipline Checking............................................................................................................. 31
Design Assessment and Verification.............................................................................................. 32
PROCUREMENT QUALITY............................................................................................................. 33
PURCHASING PROCESS.............................................................................................................. 33
PROCUREMENT STATUS REPORT.................................................................................................. 34
SUPPLIER ASSESSMENT.............................................................................................................. 35
SUBCONTRACT MANAGEMENT.................................................................................................... 35
SUBCONTRACTOR MONITORING................................................................................................... 35
SUBCONTRACTOR PROJECT QUALITY PLANS.................................................................................... 36
SUBCONTRACTOR PROJECT CONTROL PROCEDURES.........................................................................36
SUBCONTRACTORS SUPPLIERS QUALITY PLANS AND CONTROL PROCEDURES..........................................37
INSPECTION AND TEST PLANS..................................................................................................... 37
MATERIAL MANAGEMENT.......................................................................................................... 38
HANDLING AND STORAGE OF MATERIALS...................................................................................... 38
CONTROL OF COMPANY SUPPLIED MATERIALS................................................................................ 38
PRESERVATION OF PRODUCT...................................................................................................... 38
INVENTORY MANAGEMENT........................................................................................................ 38
MATERIALS CRITICALITY ASSESSMENT........................................................................................... 39
WELDING, WELDING PROCEDURE AND WELDER QUALIFICATIONS........................................................40
WELDER ASSESSMENT/EVALUATION PROCEDURE............................................................................40
FLANGE MANAGEMENT PROCESS AND PROCEDURE.........................................................................41
FABRICATION, CONSTRUCTION AND INSTALLATION..........................................................................42
OFFSHORE INSTALLATION PLANNING............................................................................................ 42
IDENTIFICATION AND TRACEABILITY............................................................................................. 42
PROCESS CONTROL................................................................................................................... 42
CONTROL OF MONITORING AND MEASURING DEVICES......................................................................43
PROJECT QUALITY PERFORMANCE METRICS.................................................................................... 44
QUALITY PERFORMANCE METRICS............................................................................................... 44
MONITORING AND MEASUREMENT.............................................................................................. 44
Customer Satisfaction............................................................................................................... 44
Quality Audits......................................................................................................................... 44
Monitoring and Measurement of Processes.................................................................................... 45
Monitoring and Measurement of Product...................................................................................... 45
CONTROL OF NON-CONFORMING PRODUCT................................................................................... 45
ANALYSIS OF DATA................................................................................................................... 46
RISK MANAGEMENT OF REPEATED FAILURES AND KPI ANALYSIS..........................................................46
IMPROVEMENT....................................................................................................................... 46
CORRECTIVE ACTION................................................................................................................. 46
Preventive Action..................................................................................................................... 47
CLIENT ACCESS........................................................................................................................ 48
SYSTEMS COMPLETION AND TURNOVER QUALITY............................................................................ 49
 PURPOSE
ThEe purpose of this Project quality plan is to outline the processes, procedures, applicable
requirements for work scope for MB&C Investment ltd for the Bonga North EPCI Project. It aims
to provide basic methods, requirement for the smooth operations of the project

SCOPE
The work scope assigned to MB&C as per the consortium agreement and further
highlighted in the project job execution plan are listed as follows:
a. HVAC detail design, procurement of HVAC Equipment and HVAC commissioning
including vendor reps
b. Telecom detail design, procurement of Telecom Material and equipment,
Telecom Supervision, QC and Labor including and Telecom commissioning
including vendor reps.
c. Transport of Permanent Materials Exw to DDP Aveon yard excluding materials
procured by Aveon and/or procured DDP QPeria by Vendor
d. Personnel Transportation (to and from offshore); Helicopter/Crew Boat
e. Accommodation and work barge (460 Accommodation) with Marine crew, Safety
Crew and Catering
f. NDT Supervision, Labor and Equipment including dark room and isotopes
g. Marine Spread (Supply vessel, Security vessel) including fuel, lubes and green
light/port fee
h. Non-productive personnel

, and company recommendations.

CODES AND STANDARD

The company, MB&C INVESTMENT LTD is ISO 9001: 2015 certified. All the processes and
procedure developed for its scope of work on the EPC-1: Engineering, Procurement, and
 Construction on Bonga Main Topsides Modification for Bonga North Project will be tailored to
align with this .

DEFINITION AND ABBREVIATIONS

ABBREVIATIONS
BN Bonga North
CA Corrective Action
CFME Company Furnished Material and Equipment
COMPANY/CLIENT SNEPCO
Contractor MB&C INVESTMENT Ltd
DCC Document Control Coordinator
DLB Derrick Lay Barge
EPCI Engineering, Procurement, Construction and Installation
FEED Front End Engineering Design
FIAP Field Inspection Assignment Package
FPSO Floating Production Storage and Offloading
HAZOP Hazard and Operability
HVAC Heating, Ventilation & Air Conditioning
HR Human Resources
HSE Health, Safety and Environment
IDC Inter Discipline Check
ISO International Organization for Standardization

ITP Inspection and Test Plan

MDR Master Document Register
NCR Non-Conformance Report
NDE Non-Destructive Examination
PEP Project Execution Plan
PIM Pre-Inspection Meeti
PMP Project Management Process
PMT Project Management Team
PQM Project Quality Manager
PQMP Project Quality Management Plan
PQP Project Quality Plan
QA/QC Quality Assurance /Quality Control
QMP Quality Management Plan
QMS Quality Management System
 SNEPCO Shell QPeria Exploration and Production Company Limit
Subcontractor Vendors to whom the MB&C INVESTMENT LTD intends to
subcontract any part of the work
T&I Transport and Installation
TPI Third Party Inspection
VQC Vendor Quality Coordinator

REFERENCE DOCUMENTS
Document Title
Master Document Register Appendix E
Document and Drawing Numbering Procedure BNO-3-100-JA-7712-00001
Bonga North Contract Information Specification for EPC-1 BNO-3-100-JA-7880-00005
Bonga North Scope of Work for EPC-1 SECTION V
Quality management systems —Requirements ISO 9001: 2015 (E)
Project Execution Plan MB&C INVESTMENT LTD-PL-
PEP-001

MBCI-QM-4 : MBCI Quality Manual

MBCI-QP-83 Procedure for Design and Development
MBCI-QP-10 : Procedure for Control for Corrective and Preventive Action
MBCI-QP-87 : Procedure for Control of Non-Conforming Product
MBCI-QP-84 : Procedure for Purchasing and Receiving
MBCI-QP-92 : Procedure for Internal Audit
MBCI-QP-93 Procedure for Management Review
MBCI-QP-751 Procedure for Control of Documents
MBCI-QP-853 Procedure for Control of Third-Party Property
MBCI-QP-852 Procedure for Identification and Traceability
MBCI-QP-822 Procedures for Quotation and Orders
MBCI-QP-854 Procedures for Preservation
MBCI-QP-715 Procedures for Calibration
 QUALITY POLICY
MB&C Investment Ltd is committed to meeting the expectations of SNEPCO, her JV Partners,
and the statutory and regulatory requirements on the EPC-1: Engineering, Procurement, and
Construction on Bonga Main Topsides Modification for Bonga North Project.
Our commitment is based on our delivery of superior Quality Services which will be achieved
through:
 By meeting COMPANY requirement and our social, environmental, charitable, regulatory
and legislative responsibilities
 The continual review of our performance against project targets and the deployment of
resources which will assure the achievement of the project objectives
 Communication of shared values and understanding of project requirement by all
stakeholders with the goal of delivering as promised
 To provide product and services that meet and exceed COMPANY regulatory and
statutory requirements at optimal cost.

Signed

PROJECT MANAGER

PROJECT QUALITY OBJECTIVES

CONTRACTOR’s Top Management shall:
 Identify and employ resources required for the smooth execution of the project
 Ensure that procedures and work instructions are issued for the job
 Ensure that all applicable quality assurance, quality control, and inspection processes are
carried out during work execution and I line with the project and contract requirements
 Ensure that any non-conformance is resolved within the stipulated contractual time frame
 Project Team Organization Chart

MANAGEMENT RESPONSILITY

MANAGEMENT COMMITMENT

The Project Manager assumes executive responsibility for the execution of the contract and as such
shall ensure objectives are achieved through the development and implementation of strategies, plans
and management practices that are consistent with the relevant elements of policy.

Management reviews shall be undertaken in accordance with section 7.6 to ensure the continued
suitability and effectiveness of management systems and practices.

The Management responsibilities are defined in the Project Quality Plan and are detailed as part of their
Job Description.

All Job Descriptions are reviewed and approved by the Project Manager or his assignee

QUALITY PLANNING
Effective Planning of the QMS shall be carried out in order to execute the project scope in line with the agreed
schedule. Quality Plan shall be developed and implemented to ensure the conformance of all design, procurement
installation of HVAC and Telecom systems NDT works to meet the Bonga North-EPC-1(For TopSides Modification)
technical specifications.

MANAGEMENT REVIEW

The Project Manager will convene regular progress meetings to review the performance of the contract.

These Reviews will include consideration and proposals/actions to correct and improve the processes/system with
regards to:

• Quality Assurance and Quality Control

• Occupational Health and Safety
• Environmental Protection
• Progress
 • Non-compliance arising from audits.
• Subcontractor performance
• Status of improvement opportunities
• Customer satisfaction.

In addition, the Project Manager will compile monthly reports summarizing performance, review findings and
recommendations. Reports are to be generated as per agreed Company format and copied to the executive
management

Customer Satisfaction/Focus
MB&C shall adopt a customer first approach which shall ensure that customer needs and
expectation are determined converted into requirements and are met with the aim of
enhancing customer satisfaction, this shall be done y
a) Customer and applicable, statutory and regulatory requirements are determined,
understood and consistently met.
b) Risks and opportunities that affect conformity of products and services and ability to
enhance customer satisfaction shall be determined and addressed even as customer
satisfaction is focused
On.

Detailed duties and responsibilities for key positions on the project are described below:

PROJECT MANAGER
The Project Manager will ensure that the practices described in the Project Execution
Plan (PEP) provide basis for assuring that the work undertaken will be in accordance with the
contractual obligations as specified in the EPC-1: Engineering, Procurement and Construction
on Bonga Main Topsides Modification for Bonga North Projects contract,
and are implemented for the duration of the contract. Project Manager will:
 Be responsible for maintenance and control of PEP, Project Procedures and Plans.
 Assign experienced and qualified personnel to perform quality functions and activities
 Input quality progress data and metrics for the monthly report.

QUALITY MANAGER
The Quality Manager (QM) reports to the Project Manager and is responsible for the
following.
 Develop and maintain the Quality Plan.
 Ensure the implementation of the Quality Procedures and Plans.
 Review requisitions and associated documentation to identify project quality
requirements.
  Ensure that the Project Quality Management system meets the requirements of the
contract.
 Participate in technical bid reviews, and support Contracts and Procurements in the
selection of suppliers / Contractors.
 Perform assessments, document reviews, and implement corrective action tracking
programs throughout the duration of the project.
 As required, review and approve supplier and Subcontractor quality plans and
procedures.
 Provide status to the Project Manager on items requiring follow-up, including those
identified in Audits and Surveillance performed by CONTRACTOR and Subcontractors
quality function and inspectors. He also provides status reports for; Action Request (AR),
Non-conformance Reports (NCR’s), and Action Plans resulting from deviations to Quality
requirements.
 Advise the Project Manager on the effectiveness of the Project Quality Management
System.
 Liaise on regular basis with DCC to ensure control and archive requirements for the
quality records generated by project personnel, including records required for the
administration of the Quality Assurance Program are maintained.
 Develop schedule and monitor the execution of internal and Subcontractors audits.
 Coordinate weekly and monthly reporting of quality activities.
 Liaise with Company for assignment and approval of Third Party inspectors

QA/QC ENGINEER
The Site QA/QC Coordinator reports to the Project Quality Manager and is responsible for the following;
 Ensure Quality Assurance and Quality Control requirements are strictly adhered to at all sites.
 Review and comment on Subcontractor and supplier plans and procedures,
including ,audit schedules and plans, and Subcontractors deliverables.
 Provide oversight of Subcontractor’s office and field activities affecting quality.
 Ensure Monitoring of Contractor’s daily work including the verification of generated
documentation.
 Relate regularly with Company Quality Representative on site and Subcontractors on
construction issues.
 Ensure supervision and direction of Project Quality Inspector.
 Ensure regular quality inspections, assessments and audits in accordance with approved
schedule and contractual agreements.
 Ensure that controls are developed and implemented for generated site documents and
record
 Ensure compliance with quality requirements and immediately reporting defective work and
non-conformities to project management for follow-up with Subcontractors.
 Weekly submittal of site NCR/AR registers to Project Quality Manager and copying the Project
Manager.
 Weekly reporting of site quality activities to PQM.
 NDT/NDE INSPECTORS
The NDT/NDE Inspectors will:
 Issue daily inspection report with acceptance or re-work indexes as feedback to the
execution team as defined in the PEP
 Work with the approved NDT procedures to ensure that the conformance of project product
to project quality requirements
 Each individual NDE/NDT personnel must be qualified to the scope being implemented.
 Where applicable, NDE/NDT inspector shall allow the appointed Third-party inspector access
to all the inspection report for verification and sign

PROJECT QUALITY MANAGEMENT SYSTEM

QMS DOCUMENT HIERARCHY

The document hierarchy is indicated in the descending order:

Quality
Project

Quality
Manual

Project Quality Management Plan

Inspection and Test Plan (Covering scope of work) / Project

specific procedures (Cover other procedures highlighted by
contract requirements, Audits and Client recommendations)

Records Stating the results

Achieved

QUALITY SYSTEM DESCRIPTION

CONTRACTOR (MB&C INVESTMENT LTD) Quality Management System (QMS) provides the foundation for
the policies plans and process employed to manage the execution of the project. It complies with and is
independently certified to the requirements of ISO 9001:2015. It is aimed at consistently meeting
customer and applicable statutory and regulatory requirement.
The quality management processes, principles and practices are deployed via a comprehensive suite of
systems and associated procedures and instructions collectively known as Quality Management System
(QMS). This program has been developed on well-established and independently certified, Quality
Management System (QMS) and Project Management Process (PMP).
The scope of QMS documentation is developed to support the provision of project management,design
procurement, logistics, NDT services and other scope of work by Contractor.
The Project Quality Management System is defined by the following documents:
 Project Quality Management Plan
 Referenced Procedures and Plans
 Standard and Contract Specifications

DOCUMENT AND RECORDS MANAGEMENT

PREPARATION AND REVISION OF PROJECT QUALITY SYSTEM DOCUMENT

Documents and records control activities required to assure the coordination of project documentations
are managed in accordance with scope of work of CONTRACTOR for Bonga North Projects requirements
and QMS procedures as detailed in EPC-1: Engineering, Procurement and Construction on Bonga Main
Topsides Modification for Bonga North Project Information Management Plan. The Bonga North Project
Information Management Plan detailed requirements for document and drawing classification,
numbering, review and approval, revision, archiving and retention.
Individual Purchase Orders and Subcontracts shall address the requirements for supplier’s and
Subcontractor’s generated documents including requirement for identification, review, controls and
transmittal, appropriate protection, maintenance, turned over time, and archiving and retention.
All documentation related to the Quality Management System shall be controlled and issued in
accordance with this plan. This documentation may be periodically revised to suit ongoing project
requirement and where necessary specific requirements may be addressed.

AMENDMENT CLAUSE
Amendment to documents will not be permitted, where this is done a re-issue of said document
implies.

CONTROL OF QUALITY SYSTEM DOCUMENTATION

All project related documentation including that of company shall be controlled in accordance with
MBCI-QP-751 procedure for document control, a Master document Register(MDR) shall be developed
to monitor ,track, update information generated from project management, such MDR and its content
shall form final documentation for project.

INDEXING OF PROJECT SYSTEM DOCUMENTATION

The numbering nomenclature for the project: shall be as defined in the information management plan
and the client’s requirement.
 All quality-related documents received or generated by CONTRACTOR during the
execution of the contract shall be subject to controlled distribution.
 Distribution of documentation to the Company for review or approval shall be issued
under cover of a transmittal.
VERIFICATION RECORDS
“Material Test Certificates” from supplier shall be kept by Document control officer and with
assigned personnel. Signature verification also shall be in use,this is to ensure documents are
signed by authorize personnel.
 PLANNING
The Project Manager supported by the Quality Manager is responsible for the planning, development
and implementation of management systems to ensure compliance with quality objectives and contract
specified requirements. He shall be supported by the Project Management Team.

Within Project Management, the quality planning for project specific work involves at least the
following:

• Preparation of PQP, PEP, Procedures and Inspection and Test Plan

• Adequate control of engineering analysis and studies, procurement, transportation and welding
activities.
• Correct evaluation of potential vendors / subcontractors and the inclusion of quality requirements in
purchasing / subcontracting documents.
• Any special requirements contained within the contract or purchase documents shall be identified and
suitable measures taken to accommodate them. Such measures shall be integrated with and be
compatible with applicable project specifications, codes and standards.
• Identification of suitable verification and preparation of records at appropriate stages during project
execution phase.
• Project specific procedures and plan including PEP and PQP are developed, documented and adopted to
ensure compliance to specific contract requirement
• Project contract documents, construction drawing, and specification shall be used and referred to, in
the PQP and ITP.
• These procedures and plan are produced to ensure effective planning, operations and control of the
processes. Refer Master Document Register

PROJECT PLANNING AND SCHEDULING

The Specific Measurable Achievable Relevant and Timely (SMART) approach shall be used in execution
of plan

The integrated work activities of the project will be managed through the project plans, schedules,
procedures and budgets. A Work Breakdown Structure (WBS) will be developed to divide the project
into physical project elements and functions.

The Project Execution Plan PEP details all the activities for successful execution of the project and shall
include activities related to preparatory work prior to during and after project execution.
 PROJECT BRIEFING
A briefing of all PMT members shall be conducted to brief all member on matters concerning the
contract / project. The PMT members shall be briefed at least on the following:

 Contract / project description

 Roles and Responsibilities
 Project Execution Plan
 Project Quality Plan

Detail Work Scope

The work scope assigned to MB&C as per the consortium agreement and further highlighted
in the project job execution plan are listed as follows:
i. HVAC detail design, procurement of HVAC Equipment and HVAC commissioning
including vendor reps
j. Telecom detail design, procurement of Telecom Material and equipment, Telecom
Supervision, QC and Labor including and Telecom commissioning including vendor
reps.
k. Transport of Permanent Materials Exw to DDP Aveon yard excluding materials
procured by Aveon and/or procured DDP QPeria by Vendor
l. Personnel Transportation (to and from offshore); Helicopter/Crew Boat
m. Accommodation and work barge (460 Accommodation) with Marine crew, Safety
Crew and Catering
n. NDT Supervision, Labor and Equipment including dark room and isotopes
o. Marine Spread (Supply vessel, Security vessel) including fuel, lubes and green
light/port fee
p. Non-productive personnel

AMENDMENT OR CHANGE IN WORK SCOPE

During scope of work review, if there are changes in the scope of work or additional work scope to be carried
out, COMPANY shall promptly be notified about the changes via the project approved communication channel
after the Project Manager has evaluate these changes.

Whenever there are change orders, contract manager / project manager shall proceed with processing of the
change orders as described in the handling change order procedure and contract requirements.

I. of vessels, including pre-mobilization inspections and certifications from class,

regulatory agencies and finally with COMPANY. All pre-mobilization audits and
inspections shall be planned to align with project timelines. Ensure vessels are
equipped with necessary safety and communication equipment and meet the
COMPANY requirements stated appendix K of section V of the contract.
II. Obtain all necessary permits and approvals from relevant maritime and regulatory
authorities. Ensure compliance with international and local maritime regulations.
III. Plan for the transport of personnel to and from the offshore site. Make
arrangements for crew transfer vessels or helicopters as needed, ensuring
compliance with safety regulations.
 TECHNICAL QUERY/ TECHNICAL DEVIATION
All technical query or technical deviation shall be submitted through the technical query form after evaluation as
per Technical Query / Technical Deviation procedures contained in the QMS.

PROCEDURE DEVELOPMENT
MB&C INVESTMENT LTD procedures for project execution are contained in our QMS and the PMP; all project
personnel have direct access to PMP and QM, online, as stated in section 8. These online systems contain all the
policies, plans, manuals, procedures, forms, checklists, etc. required to execute projects in accordance with project
strategic objectives. .

PROJECT SPECIFIC PLAN AND PROCEDURES

Project specific plans and procedures applicable to MB&C work scope will be developed in addition to the existing
company procedures as required by the Company procedures and as provided in the Master Document Register and
MB&C INVESTMENT LTD QMS system procedures that will be used in execution of scope of work. This PEP and its
procedures are applicable for preparation / execution, in line with the project requirements as documented in the
Scope of work. The lists of Project specific plans that will be utilized to achieve the execution strategy for the EPC-1:
Engineering, Procurement and Construction on Bonga Main Topsides Modification for Bonga North Project will be
available in project folder and the latest MDR that is maintained by Document Control department.

RESPONSIBILITY & AUTHORITY

The Project Manager assumes executive responsibility for the execution of the Contract and as such shall ensure the
mobilization of sufficient competent personnel to efficiently manage and execute the work in accordance with the
contractual requirements.

The responsibilities and authorities of PMT personnel engaged in the execution of the Contract shall be defined
through the Project Execution Plan

COMMUNICATIONS AND COORDINATION

All correspondence shall be in English Language, preferably sent by letter or email. The details of approved
communication methods are set out in the Project Execution Plan between CONTRACTOR and COMPANY.

INTERNAL COMMUNICATION
The development of good interpersonal communication is paramount in maintaining a safe and harmonious work
environment. As such, formalized methods of communication shall be established and work group meetings and
promotional activities scheduled and conducted on a regular basis.
 FORMAL COMMUNICATION
The Project Manager shall establish formalized systems of identifying, documenting and communicating quality
requirements throughout the organization. These communications shall include as required:

• Procedures, work instructions and methodology statements.

• Area or task specific work packages.

COMMUNICATION MEETINGS
Communication meetings shall be held with project personnel on a regular basis to promote the requirements of the
contract and maintain effective communication between COMPANY and CONTRACTOR. These meetings shall include
but not limited to:

• Toolbox meetings
• Daily Operation Meeting will be held daily at site office.
• A scheduled weekly meeting will be held with COMPANY to discuss the progress of the
project

Contract quality-related topics will be included on the meeting agenda (along with other topics relating to HSE,
project schedule etc.) to:

• Communicate and promote the quality requirements of the contract

• Discuss and resolve quality-related issues as they occur.

This meeting will also be used as the forum for discussion on any other management matters that may arise.

RESOURCE MANAGEMENT

HUMAN RESOURCES

The Project Manager shall ensure that all personnel whose duties influence the safe execution of the work in
accordance with time, conformance or cost requirements are selected on the basis of pre-requisite qualifications
and competencies with due regard being given to:

• Skill levels and appropriate site experience.

• Attitude toward and awareness of Quality, Safety, Health and Environmental protection
requirements.
• Ability to follow procedures and instructions.
• Ability to work as a team member achieving common goals.

COMPETENCE, AWARENESS AND TRAINING

Training requirements are to be identified and implemented by the Contract / Project Manager, to ensure the
required levels of safety, quality and personnel expertise are developed and maintained.

Quality related training may be carried out in the following areas:

 • Site Induction Training
• Training to special or task specific skills.
• Quality System & Hierarchy

Mandatory training requirements shall be fulfilled as per contract requirements

INFRASTRUCTURE

The Project Manager or assignee shall ensure the availability of site facilities, plant, and related support services
required to meet the requirements of the contract.

All site facilities, plant and equipment shall be maintained in accordance with specified maintenance strategies and
manufacturers recommendations to maximize equipment operating performance, safety and serviceability.

WORK ENVIRONMENT

The Project Manager shall develop and implement strategies to enhance the working environment therefore
improving the motivation, job satisfaction and performance of site personnel. These strategies will include as
appropriate:

• Implementation of clear reporting lines.

• Identification and full utilization of personnel skills
• Implementation of clear guidelines and instructions relating to process, quality,
safety, health, and environment.
• Assessment of work environments and implementation of control measures to
address those factors impacting the safe and productive performance of personnel.

REGULATORY CERTIFICATION REQUIREMENT

CONTRACTOR will identify and secure, in a timely manner, all regulatory certifications necessary to meet the
CONTRACT requirement. CONTRACTOR will institute a process to monitor the currency of these certifications to
ensure that they are valid throughout the CONTRACT duration and when required, prompt revalidate those
certifications that are expired.

ENGINEERING AND DESIGN QUALITY ASSURANCE

Through verification, validation, documentation and risk management, The Engineering design quality assurance
compliance shall be ensured communicated

PROCUREMENT QUALITY

Contracts and procurement activities shall be executed in accordance with approved Project Specific Procurement,
Subcontracting and Materials Management Plans.
Project Procurement Quality Surveillance Plan shall be implemented on Vendors and Suppliers during procurement
stage to achieve the level of oversight recommended in EPC-1: Engineering, Procurement and Construction on Bonga
Main Topsides Modification for Bonga North Project System and Equipment Criticality Rating Reports

CONTRACTOR shall purchase project materials from the relevant supplier. (In accordance with COMPANY’s approved
vendors’ List)

PURCHASING PROCESS

Purchase requisitions shall be raised by the Requisition Manager and forwarded to the relevant department head
for processing. The Purchasing Officer shall verify that requisitions fully detail requirements including:

 Type, grade, or other precise description as applicable.

 Reference drawings, specifications, etc.,
 Quantity
 Delivery requirements

All inward goods are to be subjected to inspection for compliance to purchase order, specification and regulatory
requirements.

In addition, the following shall apply to all procurement activities:

 Procurement Inspection Coordinator, QA/QC Coordinator or designee shall be

responsible for the review of Suppliers ITP, Quality Plan and procedures in line with
Purchase Order requirements.
 All ITPs irrespective of criticality shall be approved by Company
 QA/QC Engineer/Inspector and/or Third Party Inspector will carry out
Assessments/Verifications during inspection visits as per approved ITP at vendor
facility.
 Prior notification will be provided by the vendor/supplier in line with Purchase
Order requirements and/or agreed in pre-inspection meeting (PIM) for any
inspection points (Witness/Hold/Monitor).
 Document (Criticality Assessment Report) containing list of Criticality rating I& II
items will be sent to the Client for review and approval before procurement.
 Upon completion of Inspection activity, a report will be generated for the visits
carried out at Vendor/Supplier Facility.
 Any deficiencies will be reported in accordance with Non-Conformance
Procedures and Corrective Action Procedure at the time they are discovered.
 CONTRACTOR Quality team shall ensure that the Vendor Organization develops
and maintains a procurement quality performance database derived from the
procurement Quality Surveillance plan which will serve as the platform for storage
and analysis of the vendor quality performance data.
  If Inspection Surveillance indicates any unacceptable trend, Inspection
frequency shall be increased by a percentage to be determined by the Project
Management Team.
 Surveillance will continue until manufacturing of PO items are completed and all
the P.O items shall meet project requirements. If required,
CONTRACTOR/COMPANY Quality/Project team will execute surveillance on
overseas inspection based on the criticality of the items.

Reference MBCI-QP-84 procedures for purchasing and receiving orders

PROCUREMENT STATUS REPORT

CONTRACTOR shall prepare and submit to Company on weekly basis a procurement status report covering all
materials and goods to be purchased.

The procurement status report shall include:

 Planned and actual dates for enquiry issue, receipt, technical evaluation and
award
 Original and latest delivery promise
 Actual delivery dates realized
 Name of selected vendor / supplier
 Summary of progress reported by vendor

SUPPLIER ASSESSMENT

The Project Manager shall ensure all suppliers are assessed for suitability consistent with the criticality and
complexity of the scope of supply, either by reference to COMPANY "Approved Suppliers List" or by formal
assessment of their technical and commercial competency.

Any such vendor assessment shall be carried out with the approval and participation of

Company.

Supplier assessment shall be in accordance with the Procurement Quality Surveillance

Plan
SUBCONTRACT MANAGEMENT

The Supplier for this Contract shall be required to enter into a subcontract agreement. The Project Manager and/or
the Contract / Project Manager shall define the contract/subcontract requirements and facilitate the subsequent
formulation, execution and administration of subcontract agreements.

All subcontracts shall be formulated to minimize risk and liabilities and are to conform to the requirements of the
Contract.

A list of subcontractors intended to be utilized shall be submitted to Company for approval.

Subcontract management shall be in accordance with the Sub-Contract Management Plan.

Company may choose to be part of subcontractor assessment process if required.

SUBCONTRACTOR MONITORING
Quality Manager shall ensure that the Subcontractor activities are monitored in compliance with the approved
Quality Plan / ITP and effective implementation of their procedures. Quality Manager shall ensure that:

 Approved Procedures, Plans and Work Instructions are produced and

implemented as required for the Project.
 Approved Procedures are followed for special processes such as NDT, Pressure
Testing, Tube, Heat Treatment
 Required quality supervision for Installation activities are established in
approved ITP Plan.
 All requirements established in ITP, installation procedures and plans are
implemented and reported.
 Approved process of Non-Conformity Identification, resolution and disposition is
followed to document noncompliance and avoid reoccurrence.
 Source Inspection activities under the control of Subcontractor would be
consistently monitored.
 Final Quality documentation is in accordance with Contract and Specification
requirements
 Verification on site on regular basis of work compliance to approved Plans and
 Procedures.
 Periodic assessments as per approved assessment plan and provide the results of
assessment verification for necessary action.
 Verification at work sites by surveillance checks on regular basis and provides the
reports for its compliance.
 Weekly progress meeting with Subcontractor to resolve project quality related
issues.
 Verify the Concession/Waivers or Deviations if any, are processed in line with
Project Requirements.
SUBCONTRACTOR PROJECT QUALITY PLANS
The Project Quality Manager shall review the Subcontractor’s project quality plan and shall obtain input from other
appropriate reviewers, including the Project Manager to ensure it satisfies the requirements of the contract. Upon
satisfactory review, and resolution of comments, the Project Quality Manager or his designate shall approve
Subcontractor’s Quality Plan and shall be routed to Company for review and final approval.

SUBCONTRACTOR PROJECT CONTROL PROCEDURES

The Project Manager shall ensure that competent Project Management personnel review the Subcontractor’s
control procedures necessary for the implementation of its Project Quality Plan.

MB&C INVESTMENT LTD assessors shall ensure that Subcontractor’s control procedures are consistent with
Subcontractor’s Quality Management System, industry standards, regulatory codes, client specifications and contract
requirements.

MB&C INVESTMENT LTD assessors shall ensure that the control procedures require Subcontractors to review
their supplier key control procedures to ensure consistency with suppliers QMS, industry standards, regulatory
codes, company specifications and practices, and contract requirements. If required, CONTRACTOR QA/QC team may
provide support to Subcontractor in preparing Plans and Procedures to ensure that the quality documents comply
with project specifications and requirements and also received on time.

The Project Management Team (PMT) which includes the Project Quality Manager shall ensure that Subcontractors
control procedures for controlling design changes and processing concession, waivers, or deviations from project
specifications include provision for Subcontractors PMT review and approval. Subcontractors PMT shall ensure that
such changes, concessions, waivers, and deviations are processed in accordance with control procedures approved
by CONTRACTOR /COMPANY PMT and are subject to control and audit.

The Project Quality Manager shall monitor the review process to ensure comments are resolved to COMPANY’s
satisfaction and that control procedures are ready for implementation prior to commencement of any associated
work activity.

SUBCONTRACTORS SUPPLIERS QUALITY PLANS AND CONTROL PROCEDURES

Subcontractor’s supplier responsible for Critical I and II elements of the work shall as a minimum prepare and
submit for approval a Quality Plan and / or Inspection and Test

Plan (ITP) specific to the scope of work. The Project Quality Manager shall ensure that all ITPs generated by the
Subcontractor’s suppliers are reviewed by the Subcontractor and CONTRACTOR including procedures for welding,
coating, and non-destructive examination, etc.

The Project Quality Manager or his designee shall review and comment on such plans, ITPs and controlling
procedures, after obtaining input from other competent reviewers such as the Project Manager and the Project
Engineer to ensure that they satisfy the requirements of the Contract.
The Project Quality Manager and Project Manager shall ensure that all Project Management Team (PMT) and
Subcontractors comments are resolved to PMT satisfaction prior to commencement of any associated work activity
and shall be submitted to Company for final review and approval.

INSPECTION AND TEST PLANS

The Project Quality Manager and/or Site Quality Manager shall review all construction, installation, and hook-up ITPs
generated by the Subcontractors for content and the appropriate selection of Subcontractor intervention points, and
shall ensure that PMT intervention points including Company intervention points are included and shall be submitted
to Company for final review and approval.
 MATERIAL MANAGEMENT

HANDLING AND STORAGE OF MATERIALS

Field Engineers shall make necessary arrangements for machinery and equipment to unload the consignment before
delivery of materials. Materials must be handled with proper care and protection with adequate storage conditions
per the manufacturer’s instruction or contract specification.

Materials stored shall be periodically checked to detect any deterioration. The warehouseman shall inform the
Offshore field engineer if any deterioration is found.

Item identification shall be maintained during all phases of receipt, storage, and dispatch. Identification of incoming
components will be confirmed against delivery dockets and heat numbers shall be checked against the material mill
test certificates.

CONTROL OF COMPANY SUPPLIED MATERIALS

Company supplied material/Equipment’s shall be identified, verified, protected, and
safeguarded. If any such property is lost, damaged or otherwise found to be unsuitable for
use, this is reported tp the Project Manager to the COMPANY. This is line with procedure for
Control of third party Property(MBCI-QP-853)

PRESERVATION OF PRODUCT

The Warehouseman and field engineer shall ensure that items received are inspected, identified, handled, packaged,
documented, stored, and released in a controlled manner to safeguard against loss, damage, or deterioration of those
items offshore/onshore.

The requirements for the preservation of materials and equipment during shipment, receipt, storage, construction,
installation, pre-commissioning, and commissioning through to start-up phases are described in the Contractor’s
Materials and Equipment Preservation Plan

I INVENTORY MANAGEMENT

CONTRACTOR will issue for COMPANY review and approval a procedure for inventory control and inventory record for
all project materials, including COMPANY-PROVIDED ITEMS, to guide ag ainst misuse and loss. The inventory
management procedure will capture logging, date issued, quantity used, quantity in stock, and description.

MATERIALS CRITICALITY ASSESSMENT

CONTRACTOR shall develop Material criticality procedure in line with Section IX – Quality Management that provides
quality intervention levels for the project. The procedure will outline the process to identify critical items, parts, or
systems for safety, and reliability and how they will be managed.
CONTRACTOR and COMPANY will review and agree on the adequacy of the classification of the critical items, the
proposed intervention levels, and the mitigation plan before the commencement of associated
OFFSHORE INSTALLATION PLANNING

Before the start of installation work adequate planning shall be made and this shall include:

 Barge organization and their responsibilities

 Mobilization plan
 Meth Manpower, equipment and material
 Establishment of temporary facilities and utilities
 Detail inspection and test

Prior to commencement of offshore installation activity, barge Superintendent and Field Engineer shall ensure all
approved Inspection and Test Arrangements are in place.

IDENTIFICATION AND TRACEABILITY

Item identification shall be maintained during all phases of Installation. Identification of all components shall be
recorded during installation and verified against the load out tally sheet or manifest.

PROCESS CONTROL

The process plan defines how project work is to be done and approved for the overall project. The process plan is
communicated to all key personnel, subcontractors and suppliers in a startup meeting. As the project proceeds, work
task plans provide additional details of how each individual work task is carried out. Work tasks planning meetings are
used to communicate expectations of the work task plan to key personnel responsible for carrying out the work task.

Reference to Procedures for Outsourced Processes MBCI-QP-84

CONTROL OF MONITORING AND MEASURING DEVICES

CONTRACTOR’s personnel shall maintain the measuring and test equipment and ensure

they are calibrated and certified prior to use.

All calibration shall be traceable a national / international standard and approved by

Company.

In case the measuring and testing equipment are supplied by subcontractors it is the responsibility of the
subcontractor to maintain this equipment

Reference MBCI-QP-715 Procedure for calibration

PROJECT QUALITY PERFORMANCE METRICS

QUALITY PERFORMANCE METRICS

The maximum re-submittal/rework rate for all reviewed Engineering Deliverables Performance is set at 10% to assess
the quality performance of the project. The Project Quality team shall continually measure and monitor this
performance to keep the percentage as low as practicable to achieve the Project Quality Objective.

Quality Performance Metrics shall be measured and reported weekly.

CONTRACTOR shall measure the performance on Quality by using the criteria below:

 Customer Satisfaction: Customer satisfaction shall be processed as per

CONTRACTOR’s procedure
 Project Audit Report
 Risk Mitigation Plan
 Project Performance Measurement Report
 Statistics of COMPANY Engineering Quality & Surveillance Code

MONITORING AND MEASUREMENT

Customer satisfaction shall be processed as per Customer Satisfaction Procedure. Refer to MBCI QMS section 9.1.2

Quality Audits
The Quality Manager or his nominee shall develop an audit plan for the Contract activities to determine whether the
systems and practices employed by contractor and any key suppliers:

 Conform to agreed / specified requirements.

 Are suitable and effective.

Actions arising from audits shall be addressed by the Project Quality Manager.
Company may choose to join the audit teams and be notified of the audit plans.

Refer to Audit Procedure.

Monitoring and Measurement of Processes

Management practices and associated systems shall be subjected to ongoing review to identify actual/potential
deviations from planned performance objectives and potential initiatives for process improvement.

The Project Manager shall establish Contract performance objectives with quantifiable performance measures and
targets for each of the objectives. Performance measurement and monitoring activities shall be applied to the
following Contract processes as appropriate:

 Health
 Environmental Protection
 Progress.
  Audit results.
 Customer satisfaction.
 Subcontractor performance.

Results of process monitoring and measurement shall be documented and included in Management Reviews.

Monitoring and Measurement of Product

Product characteristics shall be progressively monitored and measured to verify conformance to planned / specified
requirements.

CONTROL OF NON-CONFORMING PRODUCT

Non-conforming products identified during receipt and/or storage to be tagged with Hold stickers and/or by location
in designated quarantine areas as appropriate. Details of the non-conformance are to be recorded on a Non-
conformance Report.

NCR’s are to be reviewed by the Quality Manager / Coordinator or nominee who, after appropriate consultation with
the Project Manager shall define disposition and rectification actions.

Copies of all non-conformance reports and trend analysis shall be forwarded to Project Manager for review.

Reference MBCI-QP-87 Procedure for Non-Conformity

ANALYSIS OF DATA

The Project Manager shall analyze data collated during monitoring and measuring activities for inclusion and
consideration during management reviews. Any inappropriate trends identified during the Management Reviews shall
be investigated and opportunities for improvement implemented.

RISK MANAGEMENT OF REPEATED FAILURES AND KPI ANALYSIS

Where the lessons learned from situations in previous contracts or prevailing activities foresee an event that may
indicate deficiency or threat, including failures with a repeat threat is glimpsed, the Risk Analysis must be employed.

For each issue, the event or events that may result in or contribute negatively to the occurrence of the threat or failure
to meet the expectation should be described, included in the Risk Analysis worksheet, and evaluated regarding its
occurrence probability and damage caused. Reference MBCI-QP-62

CONTRACTOR will manage and track risk situations emanating from risk analysis via a suite of key performance
indicators (KPIs) as highlighted in Section IX Appendix A. Lead indicators (LIs) will be developed to give warning that KPI
values are on or off target and measures will be established to mitigate the impact.

The Management of Repeated Failures Plan shall contain further details

I IMPROVEMENT

CORRECTIVE ACTION
The corrective action process is directed at facilitating the identification, analysis and resolution of improvement
opportunities and the causes of actual deficiencies identified in the management processes employed by
CONTRACTOR
The Contract / Project Manager in consultation with the Quality Manager or nominee shall facilitate the identification,
investigation and implementation of such opportunities for improvement, which may include:

 Issues raised either in the normal course of business or during monitoring and
measuring activities.
 System Non-compliance identified through internal and/or external audits.
 Significant or reparative incidences of product non-conformance.
 Customer Complaints

Preventive Action
The preventive action process is directed at facilitating the identification, analysis and resolution of improvement
opportunities and the causes of potential deficiencies identified in the management and production processes
employed by CONTRACTOR.

The Contract / Project Manager in consultation with the Quality Manager or nominee shall facilitate the identification,
investigation and implementation of such opportunities for improvement, which may include:

• Improvement suggestions raised either in the normal course of business or during

monitoring and measuring activities.
• Improvement opportunities identified during management and/or contract reviews.
• Improvement opportunities identified through internal and/or external audits.
• Improvement opportunities identified during the review of customer perception
survey data

CLIENT ACCESS

Access shall be granted to the COMPANY to enter CONTRACTOR and Sub Contractors premises for Project Quality
Audits and Project Quality Surveillance
SYSTEMS COMPLETION AND TURNOVER QUALITY
The project QA/QC department and the Project Management Team are responsible for ensuring that systems
completion requirements are established in all phases of the project from procurement to commissioning and support
through start-up. Completions development and execution will be in compliance with QA/QC Process and subject to
internal and external audits throughout the life of the project in line with completion quality task sheet. Project
Quality team will work with the Project Management team to ensure all processes, checklists and test plans including
field performance tests for pre- commissioning, commissioning, start up and handover operations are documented.
Applicable documentation shall detail methods for monitoring, documenting and reporting systems completion and
transition progress. , built handover manuals will equally be developed,

 Load out of material at CONTRACTOR Facility

 Load out of material at Subcontractor Facility

The method and timing of the completion works as well as the methodology for systems transfer from procurement,
design, transportation, offshore installation and load out through commissioning to Company’s start-up and
operation team will be as described in Contractor’s Systems Completion Execution Plan.
The documents that will be produced in the process are:

 Inspection Release Notes

 Pre-Commissioning “B” Check Sheets
 Commissioning “C” Check Sheets
 Preservation “P” Check Sheet
 Ready for Commissioning Certificate (RFCC)
 Ready for Start-Up Certificate (RFSUC)
 Systems Acceptance Certificate (SAC)

At each handover point, a punch list shall be generated.

 ‘A’ punch list item – outstanding work that is completed before pre-commissioning
can start
 ‘B’ punch list item – outstanding work that is completed before commissioning can
start
 ‘C’ punch list item – outstanding work that is completed before final acceptance of
the facility.