QA/QC

PLAN

Submitted by:

TECHNICAL DEVELOPMENT COMPANY FOR CONTRACTING

4th Floor, Emirates NBD Building,

Prince Humud Ibn Abdulaziz Street,

King Fahad District, Riyadh,

Kingdom of Saudi Arabia

TABLE OF CONTENTS

I. QUALI TY MANAGEMENT SYSTEM

II. QUALI TY ASSURANCE PLAN

1. PLAN OBEJECTI VES

2. QUALI TY CONTROL PROGRAM

3. QUALI TY CONTROL PERSONNEL AUTHORI TY

4. RESPONSI BI LI TY OF THE QC PERSONNEL

5. QC MEETI NGS

6. I NTERFACI NG WI TH OTHER COMPANY DEPARTMENTS

7. M ATERI AS& SUB-CONTRACTOR APPROVAL

8. CONTROLLI NG OF SHOP DRAWI NG & M ATERI AL SUBMI TTALS 9. FI ELD & OFF SI TE QUALI TY CONTROL PROGRAM

10. OFF-SI TE QUALI TY CONTROL PLAN

11. QUALI TY CONTROL PLAN

III. ORGANI ZATI ONAL CHART

IV. NON - CONFORMANCE REPORT FORM

V. M ATERI AL SUBMI TTAL FORM

VI. REQUEST FOR MATERIAL I NSPECTI ON FORM

VII. REQUEST FOR INSTALLATION I NSPECTI ON FORM

VIII. QUALITY CONTROL INSPECTION REQUEST FORMS

IX. CHECK LIST

I.

QUALITY MANAGEMENT

SYSTEM (QMS)

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1. Purpose

The purpose of this procedure is to highlight the processes needed for the quality management system for continual improvement.

2. Scope

This International Standard specifies requirements for a quality management system where an organization

a) needs to demonstrate its ability to consistently provide product that meets customer and applicable statutory and regulatory requirements, and b) aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements. 3. References

U.B.C. & ASTM

4. Abbreviations & Definition of Terms

Top Management – Managing Director, Operation Director Product – The end item result of meeting all contract terms and conditions.

5. Responsibilities

Top management shall provide evidence of its commitment to the development and implementation of the quality management system and continually improving its effectiveness by

a) communicating to the organization the importance of meeting customer as well as statutory and regulatory requirements,

b) establishing the quality policy,

c) ensuring that quality objectives are established, d) conducting management reviews, and

e) ensuring the availability of resources.

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Management representative

Top management shall appoint a member of the organization's management who, irrespective of other responsibilities, shall have responsibility and authority that includes a) ensuring that processes needed for the quality management system are established, implemented and maintained,

b) reporting to top management on the performance of the quality management system and any need for improvement, and

c) ensuring the promotion of awareness of customer requirements throughout the organization.

6. Procedure

The benefits of a QMS

A fully documented QMS will ensure that two important requirements are met:

• The customers’ requirements – confidence in the ability of the organization to deliver the desired product and service consistently meeting their needs and expectations.

• The organization’s requirements – both internally and externally, and at an optimum cost with efficient use of the available resources – materials, human, technology and information. These requirements can only be truly met if objective evidence is provided, in the form of information and data, to support the system activities, from the ultimate supplier to the ultimate customer.

A QMS enables an organization to achieve the goals and objectives set out in its policy and strategy. It provides consistency and satisfaction in terms of methods, materials, equipment, etc, and interacts with all activities of the organization, beginning with the identification of customer requirements and ending with their satisfaction, at every transaction interface. Management systems are needed in all areas of activity, whether large or small businesses, manufacturing, service or public sector. A good QMS will:

• Set direction and meet UBC & ASTM

• Improve process control

• Reduce wastage

• Lower costs

• Increase market share

• Facilitate training

• Involve staff

• Raise morale

The major clauses and sub clause are:

• Scope

• Normative reference

• Terms and definitions

• Quality management system

General requirements

Documentation requirements

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Management responsibility

Management commitment

Customer focus

Quality policy

Planning

Responsibility, authority and communication

Management review

• Resource management

Provision of resources

Human resources

Infrastructure

Work environment

Product realization

Planning of product realization

Customer related processes

Design and/or development

Purchasing

Production and service operations

Control of measuring and monitoring devices

• Measurement, analysis and improvement

General

Planning

Monitoring and measurement

Control of non conforming product

Analysis of data

Improvement

Setting up a QMS

As illustrated in the Process section, for organizations to function effectively, they have to identify and manage numerous interlinked, cross functional processes; always ensuring customer satisfaction is the target that is achieved. The schematic illustrates this concept: The adoption of a QMS needs to be a strategic decision of an organization, and is influenced by varying needs, objectives, the products/services provided, the processes employed and the size and structure of the organization. A QMS must ensure that the products/services conform to customer needs and expectations, and the objectives of the organization. Issues to be considered when setting up a QMS includes its:

• Design

• Build

• Control

• Deployment

• Measurement

• Review

• Improvement

Taking each of these in turn:

Inhouse Design and build includes the structure of the quality management system, the process and its implementation. It’s design must be led by senior managers to suit the needs of Page 7 of 42

the organization, and this is ideally done using a framework to lead the thinking. Design of the QMS should come from determining the organization’s core processes and well defined goals and strategies, and be linked to the needs of one or more stakeholders. The process for designing and building the QMS must also be clear, with the quality function playing a key role, but involvement and buy in to the system must also come from all other functions.

Deployment and implementation is best achieved using process packages, where each core process is broken down into sub processes, and described by a combination of documentation, education, training, tools, systems and metrics. Electronic deployment via Intranets is increasingly being used.

Control of the QMS will depend on the size and complexity of the organization. ISO is a site based system, and local audits and reviews are essential even if these are supplemented by central reviews.

Local control, where possible, is effective, and good practice is found where key stakeholders are documented within the process and where the process owner is allowed to control all of the process.

Ideally, process owners/operators are involved in writing procedures. Measurement is carried out to determine the effectiveness and efficiency of each process towards attaining its objectives. It should include the contribution of the QMS to the organization’s goals; this could be achieved by measuring the following:

• Policy definition completeness

• Coverage of business

• Reflection of policies

• Deployment

• Usage

• Whether staff find the QMS helpful in their work

• Speed of change of the QMS

• Relevance of QMS architecture to the job in hand A form of scorecard deployed through the organization down to individual objective level can be employed, and the setting of targets at all levels is vital. Review of the effectiveness, efficiency and capability of a QMS is vital, and the outcome of these reviews should be communicated to all employees. Reviewing and monitoring should be conducted whether or not improvement activities have achieved their expected outcomes. Improvement should follow as a result of the review process, with the aim of seeking internal best practice. It is part of the overall improvement activities and an integral part of managing change within the organization.

• Customer focus

• Leadership

• Involving people

• Process approach

• Systems approach

• Continual improvement

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• Factual decision making

• Mutually beneficial supplier relationships

Taking each one in turn, they are explained more fully as: An effective QMS must ensure that the organization has a strong Customer Focus. Customer needs and expectations must be determined and converted into product requirements. Top management has to demonstrate Leadership. Providing unity of purpose through an appropriate quality policy, ensuring that measurable objectives are established, and demonstrating that they are fully committed to developing, sustaining and improving the QMS. Managers must ensure that there is Involvement of People at all levels in the organization. This includes ensuring that there is an awareness of the importance of meeting customer requirements and responsibilities in doing this, and people are competent, on the basis of appropriate training and experience.

An effective QMS must be a strategic tool designed to deliver business objectives, and must have, at its core, a Process Approach, with each process transforming one or more inputs to create an output of value to the customer. The key business processes may be supported by procedures and work instructions in those cases where it is judged necessary to rigidly define what rules are to be followed when undertaking a task. Most organizations will have core business processes that define those activities that directly add value to the product or service for the external customer, and supporting processes that are required to maintain the effectiveness of the core processes.

The understanding of the many interrelationships between these processes demands that a Systems Approach to management is adopted. The processes must be thoroughly understood and managed so that the most efficient use is made of available resources, to ensure that the needs of all the stakeholders –customers, employees, shareholders and the community are met.

Reviews and Assessments

A good QMS will not function or improve without adequate review and assessment. Review and Assessment are carried out to ensure that actual methods are adhering to the documented procedures, whilst system reviews should be carried out systematically, to ensure the system achieves the required effect.

There should be a schedule for carrying out reviews, with different activities possibly requiring different frequencies.

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7. Flow Chart

II.

QUALITY ASSURANCE /

QUALITY CONTROL

PLAN

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QUALITY ASSURANCE PLAN

1. Plan Objectives

This Quality Assurance Plan is applicable to all the works to be performed in the Project. The program involves the strict adherence and implementation in compliance with the specification for all construction activities, which comprises of the following but not limited to: 1. Field and off-site inspections (material & executed work); 2. Field and off-site testing (material & executed works); 3. Daily monitoring & inspection of field construction works; 4. Controlling of shop drawing and material submittal production; 5. Documentation and record quality control filling system; 6. Preparation of as-built drawing/O & M manuals by the end of the project;

7. Internal Quality audits.

8. Reporting to Client.

2. Quality Control Organization

2.1 The QC department will operate as a separate and independent section within the Project, report directly to the Project Manager its duty being to ensure conformance to applicable standards, specification and drawing with respect to materials, workmanship, construction, finish & functional performance, providing a state that assures the end product complies with specification. 2.2 TD may assign direct employees or sub-contractor employees for certain type of work but in all cases, all employees whether direct or sub-contractor will work under the control of the Q.C. organization. 3. Quality Control Personnel Authority

3.1 QC Personnel may at any time stop any work-in-progress not fully complying with the contract requirements. In stopping any sub- contract work, a notice stating the reasons for rejecting will be issued. Work will not proceed until these unsatisfactory conditions have been rectified / corrected.

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3.2 Full authority on behalf of TD to implement all aspect of the QC program including authority to reject non-complying work and order removal is vested to the Quality Control Personnel. 3.3 Any deficiency will be corrected and the QC Manager shall be notified accordingly, before concealment of such work. 3.4 QC Personnel is authorized within his assigned areas of responsibility to approve/accept work that complies with the specification in coordination with CLIENT Representative. 4. Responsibility of the QC Manager

4.1 QC Manager

a. Coordinate with Client regarding quality matters. b. Ensure all materials/equipment’s received on site is inspected for compliance in accordance with Material vendor Approval request (MVAR) approvals and are proper stored c. Ensure that all testing is performed as required under the technical provisions of the contract specifications. d. Maintain records of QC activities and make these records available at any time to Client’s authorized representatives. e. Enforce “Hold-Points”

f. Deal directly with field supervisors to correct identified deficiencies and notify the QC inspector prior to concealment of corrected work.

4.2 QC Inspector

a. To assist the QC Manager in all QC activities.

b. To maintain filing & records system of all QC activities. c. Conduct field and off-site inspection and testing as per specification and drawing.

d. Conduct hold point release inspections.

e. Ensure that all materials delivered on site are as per approved documents & standards.

f. Conduct testing and commissioning inspection.

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5. QC Meetings

Each day, every member of the QC team will meet with the QC Manager, topic is to discuss progress and/or information. At the end of each day’s work, each QC Inspector will submit a daily report. A bi-weekly QC meeting will be held which will enable the week’s progress/problems to be discusses and also formulate the Weekly QC Report to the Client.

6. Interfacing with other Company Departments

6.1 While the QC Section is a separate entity within TD it may, from time to time require the temporary assistance of specialists. The QC Manger is authorized to call upon anyone in TD

Construction Team, to assist in the review of technically complex problems or for the resolution of certain problem, which may occur during construction.

6.2 Daily contact with the Construction Manager and site supervisors will be maintained to encourage the reduction and eventual elimination of site problems while still ensuring contract schedules and programs are maintained.

7. Materials and Sub-Contractor Approvals

7.1 The QC section will be responsible for evaluating all materials and goods specifications and approval prior to ordering thus determining their compliance with the Contract Specification prior to delivery on site. With QC visits to manufacturing plants and ocular inspection of site deliveries, it is assured that a material being used complies with the specifications. A Specification Comparison sheet shall be submitted from Client for approval prior to initiating procurement activities.

7.2 Sub-Contractors will be evaluated by the QC Section to assure TD that they are capable of providing the required materials, workmanship installed in manner acceptable to the client and within the contract Specification requirements. Pre-qualification data of Sub-Contractors’ senior site personnel will be reviewed and get approval from Client.

8. Controlling of Shop Drawing & Material Submittals 8.1 The QC section will be aware of shop drawings and shall ensure that all component parts meet with Contract Specifications and Drawings, as received from the Client for construction. Page 14 of 42

8.2 QC material Engineer will be responsible for reviewing all material submittals in compliance with Contract Specifications and Drawings.

8.3 TD will be responsible for establishing and implementing a materials control program that describes control for procurement receipt and storage of materials, equipment, component parts, etc. 8.4 The Quality Control section will be responsible for reviewing all Purchase Orders, issued to the Project of permanent construction materials and verifying that all necessary quality-related requirements are incorporated on said requisitions will be verified as being placed with Client-approved vendors.

8.5 The Quality Control section shall implement an inspection program, visiting storage areas and warehouse on the construction site to ensure proper storage and protection of materials. 8.6 The Quality Control section shall implement a schedule of off-site inspections of approved manufacturers, to ensure products are made in accordance with required specifications and drawings. 9. Field and Off-site Inspection (material & executed work) 9.1 Inspectors shall inspect all materials received on site and satisfy themselves that these materials are acceptable as per Contract Specifications and are comparable to the Purchase Order placed, handled, stored and installed, in a manner not detrimental to the quality of the products. Receiving inspection result shall be recorded. Material Inspection Report to be filed up. 9.2 Inspectors shall be aware at all times of the progress of work on each individual plot, and shall carry out all necessary duties including “Hold-Point” imposition pending Client Inspection. 9.3 Inspectors shall prepare a request for inspection for the following day and submit a copy to Client 24 hours prior to inspection time. 9.4 The QC section will be constantly aware of the stages of construction on each plot and prior to the start of new phases, ensure that all materials and/or equipment have been submitted and approved.

9.5 The QC section will be responsible for surveying manufacturer’s facilities. And appropriate measures is to be applied and imposed throughout the manufacturer’s process of receiving raw materials, storing raw materials, producing the end product in a professional Page 15 of 42

and technical manner. Handling, storing and distributing these goods to ensure quality articles are received on site. The manufacturer will be expected to exhibit an internal QC system, which precludes rejected materials and products being dispatched.

9.6 Definitions

(I) “Witness Points”: Important steps in Manufacturing and/or testing whereby prior agreement, the supplier is obliged to advise Contractors inspection personnel a reasonable time in advance of the operations as that it may be witnessed by Client inspector. The supplier may proceed with the work past the witness point if the inspector is not available at the appointment. In the event the inspector cannot witness the first occurrence of a particular operation, a subsequent occurrence shall be witnessed at the opportunity.

(ii) “Hold Points”: Critical steps in manufacturing and/or testing hereby contract document requirements, the supplier is obliged to advised Contractor’s inspection personnel a reasonable time in advance of the operation so that it may be witnessed by the inspector. The supplier may not proceed the work beyond the hold point without witness by the Contractor’s Client inspector.

10.00 Off-Site Quality Control Plan

10.10 Intention of Plan

The above plan, included as part of the Quality Control Program, is aimed at ensuring that only high quality products are processed for incorporation within contract works. Working closely with the procurement and expediting manager. The Quality Control section will arrange any necessary correction to a non-conformance item and coordinate all matters related to Off-Site Quality Control. 10.11 Inspection and Testing of Procured Items

All procured items will be inspected and tested by QC section. If deemed necessary an independent testing laboratory approved by Client will be hired to do the testing. For the overseas inspection and testing of major materials and equipment manufactured or procured off-site, TD will arrange and request for assistance through the Client’s Representative. At all times access for Page 16 of 42

inspection by the Client will be provided by arrangement with the relevant Manufacturer/Supplier.

10.12 Quality Control Procurement Monitoring System Materials and equipment to be procured from Suppliers and/or Manufacturer’s both within and outside the Kingdom will be subject to an Off-Site Inspection and Testing Plan for quality control monitoring. The Suppliers and Manufacturer will be informed of the required procedures contained in the plan to ensure a smooth, orderly and high quality end result.

a) Award of Purchase Orders/Subcontracts

b) Supply and Procurement Documentation

c) Revisions/Changes and/or Substitute for Specified Items Procedure;

d) Provisions of Samples, Calculations and test Certificates by Supplier/Manufacturer;

e) Inspection and Testing Procedure for Major Items to be procured;

f) Delivery and Handling of Procured Items;

g) Inspection of procured Items upon Receipt at Site. 10.13 Awards of Purchase Orders/Subcontracts

A. Considering the selection and evaluation of Suppliers / Manufacturers, the following order of preference is to be observed:

(i) Client Authorized Support Industries:

(ii) Saudi Arabian Companies; and

B. Whenever possible three Suppliers/Manufacturers are to be invited submit quotations with selection based upon:

(i) Expertise;

(ii) Experience; and,

(iii) Manufacturing/Supplier capability.

C. Final selection of Supplier/Manufacturer is to be made after receipt and evaluation of their respective quotation, to be based upon:

(i) Conformity with the Specification

(ii) Price;

(iii) Availability;

(iv) Quality; and,

(v) Performance.

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10.14 Supply and Procurement Documentation.

A system of proper documentation for procurement of material and equipment is to be established to ensure adequate control of quality in order that Suppliers/Manufacturers are aware of the Quality Control testing and Inspection requirements of the client. Such are to contain sufficient information on this matters and will make reference to any of the following items:

a) Physical requirements: numbers, dimensions, tolerances, etc. b) Finish - color, painting, etc.

c) Specification as per approved Submittal/Contract Document, with Manufacturer/Supplier providing copy or copies of the appropriate Code(s)/Standard(s);

d) Construction/Fabrication processes;

e) Suppliers/Manufacturers quality control procedures: provision of material certificate, test results, etc. (

f) Manufacturer’s Drawings: (1) prints (1) reproducible to be submitted to the Client prior to manufacture or construction for review with final submissions of (2) prints and (1) reproducible. g) Operations and Maintenance Manuals: (60) days before Site is offered for acceptance, (1) hard copy is to be provided for review by client, with a further (2) hard copies after approval and at least (30) days in advance of initial start-up;

h) Samples to be submitted as required upon the request by the client.

i) Special Requirements: as listed in Contract Documents; j) Witness and Hold Points;

k) Inspection reports;

l) Contractor’s Inspector: name, address, telephone, and telex numbers of contractor or appointed overseas inspection agency, and/or in-Kingdom or overseas.

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m) Access for Inspection: provision of safe access at all reasonable times Manufacturers/Suppliers for inspection and testing to be carried out on their premises including right-to-access by client. n) Delivery date and Route: To be confirmed by an

acknowledgment;

o) Acknowledgment: by Manufacturer to Confirm receipt of Procurement Documents and that all requirements could be met.

Note that, two copies of the Purchase Order

10.15 Revisions/Changes, and/or Substitute for Specified Items Procedure.

a) Proposal by the Manufacturer/Supplier for revisions/changes and/or substitution to specified items must clearly indicate any delay in completion delivery or change in performance and shall only be incorporated after approval by the Contractor and Client. b) Proposals by the Contractor and/or the Client for revisions/changes are to be immediately acknowledge in writing by the Manufacturer/Supplier with clear indication of any increase or decrease in cost, delay in completion and delivery, and change in performance.

b) Proposals are to be in the form of a letter and/or drawings: (2) copies shall be sent to client with pricing and payment provisions deleted.

10.16 Provisions of Samples, Calculations and Test Certificates by Suppliers/Manufacturers

a) Samples, calculations, and/or certificates shall be provided by the Manufacturer/Supplier as requested for approval by the client.

b) Prior to approval by the client, materials represented by such samples, calculations or certificates may not be manufactured and/or delivered to the work site or incorporated into the works. c) Test Certificate from Manufacturer/Suppliers are to be kept as soon as available upon completion of tests, with copies forwarded to the client for approval and (1) copy retained at the site.

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d) Samples shall be forwarded to the client for approval with a covering letter and documentation shall be provided with identifying marks including Contract number, Specification details, Location, Duty and Supplier. Submission to be done with enough time long lead items to be submitted as early as possible to avoid delays in purchasing and incorporation in the project.

10.17 Inspection and Testing Procedures for Major items to be Procured

A. Inspection Reports

To cover in process and final assembly inspections of each major item, inspection reports shall be prepared providing information required thereon. These will also show date, inspector, type of observation results, acceptability and action taken to correct deficiencies and documentation.

B. Definitions

(I) “Witness Points”: Important steps in Manufacturing and/or testing whereby prior agreement, the supplier is obliged to advise Contractors inspection personnel a reasonable time in advance of the operations as that it may be witnessed by inspector. The supplier may proceed with the work past the witness point if the inspector is not available at the appointment. In the event the inspector cannot witness the first occurrence of a particular operation, a subsequent occurrence shall be witnessed at the opportunity.

(ii) “Hold Points”: Critical steps in manufacturing and/or testing hereby contract document requirements, the supplier is obliged to advised Contractor’s inspection personnel a reasonable time in advance of the operation so that it may be witnessed by the inspector. The supplier may not proceed the work beyond the hold point without witness by the Contractor’s inspector, for extreme conditions presented by written agreement from client. 10.18 Delivery, Handling & Storage of Procured Items. A. Items to be procured will be delivered with responsibility for items in transit shared between the Contractor and the Manufacturer in their insurers. Notwithstanding this, the Contractor will require all precautions to be taken to obviate delays, damage, deterioration and loss in transit between the manufacturer premises and the delivery point.

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B. Care will be taken to ensure effective crating, packaging and labeling with each crate, container or batch clearly marked with its contents, the Contractor’s logo, and the Contract Number, in addition to the usual matter covering embarkation and delivery data requirements.

C. Notice of damage and/or deterioration of items in transit or storage shall immediately served on the manufacturer and his insurer at the earliest possible time as long as they remain responsible for such items, with emphasis given to early replacement should the items prove to be unusable. D. In case items are to be procured inside the kingdom, similar precautions as prescribed above shall be taken.

E. Storage items will be carefully controlled as required per Contract Specification and as referred to in this On-site Plan of this Program.

10.19 Inspection of Procured Items upon Receipt at the Site A. Upon receipt of purchase items at the site, they shall immediately be checked for quantity and dimension and a visual inspection carried out for finish and in conformity with the specification. The delivered materials shall be checked against copies of the original procurement documents and any discrepancy, breakage, loss or damage shall immediately report to the Procurement and Expediting Manager.

B. Inspection shall be carried out by the responsible Store man with assistance in cases of technical complexity by Quality Control Technicians/Inspectors.

C. Access shall be provided to the client at all reasonable times to verify deliveries.

D. Copies of inspection reports on produced items received at the site are to be retained at the Contractor’s site office. E. In the event of Non-compliance with the specified requirements, a certificate of Non-compliance is to be issued to the Project Manager by the Quality Control Engineer with inclusion of suggested remedial action. Such Certificates will be incorporated within the Weekly report on Quality

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