Engineering Procedure
SAEP-14
02 May 2019
Project Proposal
Document Responsibility: Project Management Office
Note: This version of SAEP-14 is applicable only to projects using the new Capital
Management System (CMS). All other projects will use the version of the procedure
dated 13 February 2012.
Contents
1
2
3
4
5
6
7
8
Introduction……………………………….......... 2
Applicable Documents……...…...................… 4
Project Proposal Contents……....................... 6
Project Improvement Requirements….
24
Reporting and Review Requirements…....... 25
Approvals and Waivers…………………....... 28
Contract Bid Package…………………….…. 30
Conflicts and Deviations............................... 31
Exhibit I – Project Proposal Checklist…………... 34
Exhibit II – Front End Loading (FEL)
and Project Characterization.....….... 35
Exhibit III –Scope Change from Approved
DBSP Request (SCDR)…….……..... 36
Exhibit IV – Project Proposal Approval
Routing...
39
Exhibit V – Contract Development Checklist..… 40
Exhibit VI – Bid Quantification Summary........... 42
Previous Revision: 02 May 2017
Next Planned Update: 30 April 2020
Primary contact: Doiron, Shannon Earl (doironse)
©Saudi Aramco 2019. All rights reserved.
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
1
SAEP-14
Project Proposal
Introduction
This procedure outlines the requirements for preparing the Project Proposal. The procedure
is not intended to give instructions on the engineering effort, but to cover requirements that
are important during the FEL3 Project Proposal phase. In summary, it covers:

Engineering, scope definition, specifications, standards and selected design
requirements

Quality, cost reduction and schedule improvement techniques

Project improvement requirements

Schedule and ER Estimate preparation requirements

Project Proposal reporting, review, approval and waiver requirements

Contract bid package key activities

Project Proposal and Contract Development checklists
The intent of the checklist is to ensure compliance with key requirements. They are not
intended to cover all detailed requirements of this procedure.
1.1
Definition
The Project Proposal is a document which establishes the preliminary (front-end)
engineering, scope definition, cost estimate basis and schedule for a proposed
facility from the requirements included in the Design Basis Scoping Paper (DBSP)
package available at the approval of FEL Gate 2 (for FEL process details, refer to
the Exhibit II and Front End Loading Manual). The Project Proposal includes the
proposed facility design, general layout and the appropriate functional and
performance specifications including the applicable standards and codes. The
Project Proposal shall be of sufficient detail to prepare a ±10% accuracy ER
estimate, provide sufficient technical information for Saudi Aramco review and,
where applicable, provide sufficient information to obtain detailed engineering,
procurement and construction contract bids in accordance with the approved
Contracting Plan. To complete the Project Proposal, Preliminary Engineering
Funds (PEFs) shall be arranged as per GI-0202.451.
1.2
Purpose
The Project Proposal documents the agreement on and commitment to the
project scope, the project cost and design basis by the IPT which includes the
Saudi Aramco Project Management Team (SAPMT), Facilities Planning
Department (FPD), Project Management Office Department (PMOD),
Proponent and other technical support groups. This is accomplished through
careful evaluation of the project objectives during Project Proposal preparation
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to ensure the optimum results. The Project Proposal establishes the basis for
Expenditure Request (ER) funding and is the baseline from which all
subsequently considered scope changes are measured per GI-0020.520.
1.3
Preparation Timing
Project Proposals must be completed and approved in time before the 56D
submission deadline in order to support the Expenditure Request Approval
(ERA).
A complete ER Estimate Package must be submitted to Project Management
Office Department/Estimating Services Division (PMOD/ESD) as per the
procedures and timing indicated in SAEP-25. An approved Project Proposal from
the Construction Agency Department Manager, Facilities Planning Department
and Proponent organization signatories is a mandatory requirement prior to
issuance of the ER Estimate (Saudi Aramco Form 56D) to Budget Director.
1.4
Application
With the exception of Master Appropriation projects, Saudi Aramco requires a
Project Proposal and ER Estimate for all Type A, B, C and C1 projects (for
project characterization, see Exhibit II).
1.5
Important Terms
1)
Front End Loading (FEL) is a process that organizes the project life cycle
into phases (see Exhibit II), each with defined activities, deliverables and
specific objectives. FEL is applicable to all projects that follow the Capital
Management System Efficiency Enablers (CMSEE). For more details, refer
to the Front End Loading Manual.
2)
Project Types- A, B, C & C1 are assigned by FPD based on size (CAPEX)
and complexity. For reference, see Exhibit II.
3)
Construction Agency is the organization assigned to execute the project.
This could be the Saudi Aramco Project Management (PM) administrative
area that is the default Construction Agency for Type A, B and C projects
or the Proponent’s Capital Program Management (CPM) for C1 projects.
4)
Project Management is the Saudi Aramco Project Management
administrative area that is the default Construction Agency for Type A, B
and C projects.
5)
Proponent is the Saudi Aramco organization that owns, operates, and
maintains the completed facility. The Proponent is responsible for signing
the Mechanical Completion Certificate as owner of the facility.
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6)
Saudi Aramco Project Management Team (SAPMT) is the Construction
Agency team assigned to the project during project planning and execution.
7)
Integrated Project Team (IPT) is a team composed of appointed members
from different organizations who work in an integrated manner under a
unified leadership (Project Leader/Manager), sharing the same objectives
and steered by the Project Sponsor and having clear roles and
accountabilities toward project planning and execution.
8)
Project Sponsor (PS) is an Executive or a member of Management,
appointed by the Proponent organization, who is accountable for meeting
project objectives and steering the IPT towards maximizing investment value.
For more details, refer to the PS Guide relevant to the project type.
9)
Project Leader is a representative from the Facilities Planning Department
who leads the IPT during FEL1 and FEL2 phases. This position transfers to
the Construction Agency representative (Project Manager) who leads the
IPT during FEL3 and the project’s execution phases.
10) Senior Operations Representative is the Proponent organization
representative involved in all phases of the project, to ensure the short- and
long-term objectives of the Proponent organization are incorporated during
the project development process.
11) Work Breakdown Structure (WBS) is defined by Project Type & Sub
Type and estimates shall be prepared and organized in accordance with the
applicable Saudi Aramco WBS (for details see SAEP-25).
2
Applicable Documents
The latest edition of the applicable reference documents shall be applied:
 Design Basis Scoping Paper (DBSP) and applicable Study Documents
 Saudi Aramco Engineering Procedures
SAEP-12
Project Execution Plan
SAEP-13
Project Environmental Impact Assessments
SAEP-16
Execution Guide for Process Automation Systems
SAEP-25
Estimate Preparation Guidelines
SAEP-26
Capital Project Benchmarking Guidelines
SAEP-31
Corporate Equipment and Spare Parts Data
Requirements
SAEP-40
Value Assurance Process
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SAEP-72
Plot Plan Development and Control for Onshore
Facilities
SAEP-99
Process Automation Networks and Systems Security
SAEP-121
Operating Instructions for New Facilities
SAEP-122
Project Records
SAEP-127
Security and Control of Saudi Aramco Eng. Data
SAEP-140
Project Training Impact Assessment
SAEP-148
Mandatory Engineering Standards and Codes for
Non-Industrial, Public and Government Facilities
SAEP-250
Safety Integrity Level Assignment and Verification
SAEP-302
Instructions for Obtaining a Waiver of a Mandatory
Saudi Aramco Engineering Requirement
SAEP-303
Engineering Reviews of Project Proposal and Detail
Design Engineering Documentation
SAEP-329
Project Closeout Reports
SAEP-334
Retrieval, Certification and Submittal of Saudi
Aramco Engineering and Vendor Drawings
SAEP-360
Project Planning Guidelines
SAEP-367
Value Improving Practices Requirements
SAEP-1350
Design Basis Scoping Paper (DBSP) Preparation
and Revision Procedure
 Saudi Aramco Engineering Report
SAER-5437
Guidelines for Conducting HAZOP Studies
 Saudi Aramco General Instructions
GI-0002.716
Land Use Permits Procedures
GI-0020.520
Project Change Request
GI-0202.309
Allocation of Costs - New Facilities Start-up
GI-0202.451
Engineering Work Order Authorization for
Preliminary Engineering Preparation
GI-0400.001
Quality Management Roles & Responsibilities
 Saudi Aramco Engineering Standards (SAESs)
 Saudi Aramco Materials System Specifications (SAMSSs)
 Saudi Aramco Cost & Scheduling Manual
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 Saudi Aramco Supply Chain Management Manual
 Saudi Aramco Information Protection Standards and Guidelines (IPSAG)
 Saudi Aramco Capital Management System Efficiency Enablers (CMSEEs)
Documentation (for the latest version of the below Manuals, contact Capital
Program Efficiency Department)
Front End Loading (FEL) Manual
Integrated Project Team (IPT) Manual
Project Sponsor Guide (For A & B or C & C1 Projects)
Target Setting (TS) Manual
 Saudi Aramco Safety Management System
 Construction Agency Safety Management System
 Saudi Aramco Construction Safety Manual
 Saudi Arabian Government Security Directives (SECs)
 Saudi Arabian Government Safety and Fire Protection Directives (SAFs)
3
Project Proposal Contents
The following sections outline the items normally included in Project Proposals.
3.1
Table of Contents
3.2
Technical Requirements
3.2.1
Project Summary
This section provides a history of the existing conditions, a brief
discussion of the proposed facilities and their justification, outlines the
project objectives/scope and schedule, and briefly describes how these
objectives will be achieved.
3.2.2
Project Description
This section provides scope and design information that establishes the
performance specifications for the facilities, process, waivers or
limitations. It shall address details concerning the design basis, proposed
facilities including equipment design, capacities, location/layouts and
other project related information. The list below provides common
elements found in a typical scope. This list may be optimized by the IPT
based on the Project Type & Sub Type:
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1)
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Project Proposal
Facility/plant layout and location
Note:
The project scope boundaries and interfaces with other related
facilities must be clarified prior to developing the scope of the
project in the proposal phase.
2)
Facility/process description, design basis and performance
specification
3)
Equipment list with equipment capacity, size, datasheet, tag number,
etc.
4)
Major mechanical, electrical, and utility requirements (type and
quantity)
5)
Drawings (including):
a)
Process Flow Diagrams (PFDs) including heat and material
balances
b)
Electrical one-line diagrams, electrical area classification
drawings
c)
Piping and Instrumentation Diagrams (P&IDs)
d)
Plot plans (see SAEP-72)
6)
Listing of Mandatory Saudi Aramco Engineering Requirements
(MSAERs) specific to the project and their issue dates
7)
Temporary and permanent on-plot and off-plot facilities
8)
Site survey, topography and soil data (Geotechnical Investigation)
9)
Demolition and modifications to existing facilities/plants
10) Operating variables (as required by OSPAS)
11) Corrosion control
12) Impact on and interface with other related projects and/or existing
facilities
13) Compliance with Environmental Impact Assessment (see SAEP-13)
14) Facilities’ security, fire protection & safety provisions (if required,
Hazard Identification Plan of major hazards, fire hazardous zone
drawings, and fire system and fire/gas detection/alarm layout
drawings)
Notes: 1) Facilities Security Assessment (final) is completed during the
FEL2 DBSP phase.
2) Fire protection drawings are to be stamped by the registered
professional engineer or chartered engineer in accordance
with the requirements of SAES-B-014 and SAES-B-017.
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15) Communications, including government approvals, if required
16) Control systems (including SCADA) provided with Control System
Block Diagram or System Architecture, instrument index,
instrument cable routing and I/O count breakdown
17) Project Execution Plan (see SAEP-12) and Summary Schedule
18) Training requirements (see SAEP-140)
19) Any change to Land Use Permits (LUPs) issued for new facility
sites or addition of facilities within existing plants including
Proponent-approved permits for lay-down areas, staging areas and
office sites (see GI-0002.716)
Note:
LUP approvals from Government and Saudi Aramco are obtained
during the FEL2 DBSP phase.
20) Strategy for the project’s compliance with Project Quality Plan
requirements
21) Process & utilities system definition and turnover sequence
22) Piping, electrical and control system tie-ins, hot tap/stopple
operations plan and shutdown needs
23) Studies and Assessments (see Section 3.2.6)
24) Site Investigation Report
25) Pre-commissioning and Mechanical Completion Plan (updated)
26) Commissioning and Start-up Plan (updated)
Notes: The development of the Commissioning & Startup Plan (as an
integral part of the Operational Readiness Plan “ORP”) is the
responsibility of the Senior Operations Representative with input
from the Project Manager, Safety and Industrial Security (S&IS),
Inspection, etc. It also relies upon information from the
Pre-commissioning and Mechanical Completion plan.
The ORP is a document that defines how the project will transition
into an operating facility and will describe what “operational-type”
steps must be taken along the project planning and execution path
to have a flawless startup and initial operations. The ORP also
highlights and describes activities and resources aiming to ensure
the optimization of Operations and Maintenance activities over the
facility lifetime (starting after handover).
27) List of items exceeding (over-specification) Saudi Aramco
standards’ minimum requirements
28) Requesting/returning of drawings/tag numbers and using SmartPlant
templates and AutoSACS (see SAEP-334)
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29) Identifying Operating Instructions for New Facilities and Project
Records requirements (see SAEP-121 and SAEP-122)
30) Compliance with security and control of Engineering Data
requirements (see SAEP-127)
31) Compliance with Value Assurance (VA) requirements (see SAEP-40)
32) Compliance with Value Improving Practices (VIPs) requirements
(see SAEP-367)
33) Compliance with Project Closeout Report requirements
(see SAEP-329)
34) Implementation of Modularization requirements per Modular
Design Assessment (MDA), as applicable
35) List of CMS deliverables in accordance with the Value Assurance
Plan (see SAEP-40).
3.2.3
Scope Change from DBSP
For all projects that follow the Capital Management System Efficiency
Enablers (CMSEE), the project scope shall be considered frozen on the
date of DBSP approval. Scope changes after DBSP approval shall be
avoided.
Note:
The above shall be facilitated by ensuring the DBSP approval includes
all approvers’ commitment to eliminate scope changes after DBSP
approval.
Should a scope change after DBSP approval be required, it shall be
documented by an approved Scope Change from Approved DBSP
Request (SCDR). For the SCDR form and process, see Exhibit III.a and
Exhibit III.b.
A)
Definition of Scope Change
A scope change is defined as any deviation from the approved
DBSP. In addition to the DBSP deviations, any design that
exceeds the minimum requirements of MSAERs effective on the
DBSP approval date shall also be considered as a scope change.
Such changes shall be clearly identified in each of the interim and
final Project Proposal packages. The following are examples of
typical scope changes:
1. Design exceeding the minimum requirements of MSAERs
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2. Addition or deletion of materials or equipment from the
original list provided to PMOD/Estimating Services Division
for preparation of the budget estimate
3. Plot plan changes as result of site investigation
4. Process control plan or system changes (change in I/O counts,
type of control system, etc.)
5. Other design changes as a result of the following:

Changes in safety and security requirements

Changes and/or updates in MSAERs

Environmental Impact Assessment proposals

Hazard and Operability (HAZOP) study

Underground obstructions such as rock or utilities
interferences, etc.

Building Risk Assessment or any other Loss Prevention
requirements

Value Improving Practices proposals (see SAEP-367)

Site investigations
Note:
B)
For changes in the project design basis such as equipment
capacity or system operating parameters, FPD shall issue a
DBSP addendum or amendment to the Construction Agency
and all other DBSP recipients.
Initiation of Scope Change from Approved DBSP Request (SCDR)
As soon as a change is identified, the SAPMT (Construction
Agency) shall initiate the SCDR form with a scope description,
cost and schedule impact. FPD shall determine if scope change is
related to the original project scope and intent, assess the impact of
change, and provide direction, i.e., should the scope change be
processed. For required approvals, see Exhibit III.a.
C)
Notification and Implementation of Scope Change
Upon approval of the SCDR form, the Project Manager shall
distribute a copy to the IPT, PMOD/ESD and the Capital Program
Efficiency Department (CPED)/PVAD. The IPT shall incorporate
the approved scope change into the project scope. All other
deliverables which are part of the Value Assurance Review Plan
shall be updated in accordance with the approved SCDR and shared
with CPED/PVAD.
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D)
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Project Proposal
Recording of Scope Change
All approved SCDRs shall be included in the Project Proposal and
ER Estimate Packages. The required documentation shall include
the summary list included in Exhibit III.c. and all supporting
documents required for SCDR approval. The complete summary
list shall be included in the Project Proposal approval package as
indicated in Section 6.1.1.
3.2.4
Communication Requirements
Saudi Aramco projects require both temporary (during construction) and
permanent communication systems. As procurement approval for radio
frequencies and materials involves long lead times, communication
systems require early identification and coordination between
Information Technology organization and SAPMT. To facilitate these
requirements, the Project Proposal shall contain the following:
3.2.5
a)
Summary of temporary and permanent communication system
requirements.
b)
Identification of additional communication facilities and/or
modification to existing facilities necessary to meet the project
requirements.
c)
Identification of communication requirements to be handled by
Information Technology organization and those which shall be
provided and funded by the project.
d)
Schedule of communication material requirements with an estimated
site required delivery date.
e)
Identification and implementation plans of all communication
disaster recovery and business continuity aspects of the projects.
Safety and Security Directives (SDDs) Requirements
The SSD requirements (reference SAES-O-series) shall be adhered to by
all projects, in accordance with the directives given to Saudi Aramco by
the Saudi Arab Government's High Commission for Industrial Security
(HCIS).
The SAPMT shall contact relevant Departments of the Safety and
Industrial Security (S&IS) organization, Dhahran for assistance and to
obtain current safety and security requirements before proceeding with
Project Proposal engineering. A separate section in the Project Proposal
shall be devoted strictly to safety and security requirements.
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Note:
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Project Proposal
SAES-O-series standards can be obtained through Engineering
Knowledge & Resources Division/ Standard Coordination Unit.
Deviations from SDDs shall be handled in accordance with SAES-O
series standards.
3.2.6
Studies and Assessments
Perform all required engineering studies, assessments and calculations,
(e.g., ETAP, HAZOP, RAM and Safety Integrity Level “SIL” studies,
Building Risk Assessment, Process Automation Systems analysis, etc.)
including those defined in the Capital Management System
documentation, must be carried out regardless of contracting strategy
adopted (e.g., LSTK, LSPB, etc.).
Note:
Per the CMS, Preliminary Hazard Analysis is completed during the
FEL2 DBSP phase.
Recommendations and/or closure report(s) shall be produced and
included in the Project Proposal package. The recommendations to be
implemented or addressed during the detailed design and later stages
shall be clearly identified and included in these report(s). The ProjectLeader/Manager is to provide oversight to ensure that addressing
recommendations resulting from studies and assessments are planned
and tracked as an activity.
Any cost impact as a result of the studies must be identified and included
in the ER Estimate package.
3.2.6.1
Hazard and Operability (HAZOP) Study
The objective in performing a HAZOP study is to improve
process safety and/or minimize operability problems.
The SAPMT in conjunction with the Loss Prevention
Department, and Process & Controls System Department shall
decide which projects and specific facilities require a HAZOP
study and how detailed it shall be. Facilities that use, produce,
process, transport, or store flammable (including combustible
liquids), explosive, toxic (including sewer gases, e.g., H2S),
biological or reactive substances are candidates for the HAZOP
study. However, new facilities that duplicate existing facilities
shall not require a new HAZOP study. Recommendations from
this HAZOP study shall be incorporated into the Project
Proposal design. Recommendations and/or closure reports
(including recommendations to be implemented or addressed
during the detailed design and later stages) shall be produced
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and included in the Project Proposal package.
For further details and guidance, see SAEP-12 and SAER-5437.
3.2.6.2
Reliability, Availability and Maintainability (RAM) Study
The objective in performing the RAM study in capital projects is
to ensure that competing technologies, designs, licenses, and
sparing capacity including oversized design and capital spares
requirements, are evaluated and optimized in order to secure
Capital Operational Efficiency through the Net Present Value
(NPV) of the projects. The RAM study and its recommendations
shall be implemented in accordance with SAES-A-030.
Note:
Initial RAM modeling/study is completed during the FEL2
DBSP phase. This study models, at high-level, the plants
and facilities overall production configuration and generates
results with regard to the set business targets of the
operating plants and facilities. Additionally, the RAM model
identifies the optimal availability figure(s) to be targeted by
design in order to deliver the plant’s business targets.
Using the information developed during the initial RAM study
in the FEL2 DBSP phase, the FEL3 Project Proposal phase
study shall cover all plants’ and facilities’ assets at the PFD
level.
3.2.6.3
Building Risk Assessment (BRA)
A Building Risk Assessment (BRA) shall be performed when
required by SAES-B-014. The BRA shall identify, evaluate and
recommend risk-reduction measures for buildings that are
subject to unacceptable consequences from potential vapor cloud
explosion (VCE), fire, and flammable or toxic gas hazards.
This includes people or equipment critical to sustained
operations required to meet the target levels of operational
redundancy and reliability. The BRA shall be performed in
close coordination with LPD in the early stages of the project
where modifications can be made without excessive cost and
schedule impacts.
Note:
Initial Building Risk Assessment (BRA) is completed during
the FEL2 DBSP phase. This BRA screens the building on
the basis of population and function to determine if a stagetwo building evaluation is warranted.
During the FEL3 Project Proposal phase, the stage-two BRA
evaluates hazards to the building from fires, explosions, and
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toxic releases and identifies appropriate mitigation and riskreduction measures. For unusual cases where risk-reduction
measures are not clearly appropriate, a stage-three risk
management assessment will be made to evaluate the
acceptability of the risks associated with buildings of concern.
Input for the development of the final version of the BRA
Report is provided by the Senior Project Engineer, Inspection
Coordinator, LPD, FPD and Senior Operations representatives.
Recommendations are made by the Safety Specialist (SAPMT).
These recommendations are agreed upon by the Loss
Prevention Department. Decisions are made by the Project
Manager.
3.2.6.4
Process Automation System (PAS) Analysis and Safety
Integrity Levels (SIL) Assignment Study
Process Automation System (PAS) upgrades and/or expansion
projects shall require analysis of the installed PAS to ensure the
performance, availability, and compatibility of equipment that
will be utilized to control and monitor Saudi Aramco facilities.
For further details and guidance, see SAEP-16.
It is recommended that the SIL Assignment study be conducted
in parallel with the HAZOP study. SIL assignment and
verification, for emergency shutdown system (ESD) safety
instrumented functions (SIF) and the analysis of the spurious
trip rate (STR) that results by introducing an ESD safety
instrumented function into the process facility, shall be
accomplished in accordance with SAEP-250.
3.2.7
Environmental Impact Assessment (EIA)
SAEP-13 establishes the approval process and procedures necessary to
prepare the environmental impact assessment report. The approved
report shall include and clearly identify recommendations to be
implemented or addressed during the FEL3 Project Proposal phase and
later project stages.
The Project Leader/Manager is to ensure that recommendations resulting
from the EIA are planned and tracked as activities. Any cost impact
must be identified and included in the ER Estimate Package.
3.2.8
Mandatory Saudi Aramco Engineering Requirements (MSAERs) and
their Waiver
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Projects shall meet the minimum requirements of Mandatory Saudi
Aramco Engineering Requirements (MSAERs), which are in effect on
the DBSP approval date. Changes to MSAERs approved after this date
shall be mandatory only when:

Changes affect safety, health, environment or security highlighted by
the concerned organization.

Changes result in cost savings to the project.
The impact of changes on the project shall be reviewed by the IPT and
other stakeholders to determine applicability and extent of
implementation. Only changes approved by the Project Manager and
concurred by the Project Sponsor shall be implemented to the project.
In the Project Proposal package include a list of Mandatory Saudi Aramco
Engineering Requirements specific to the project and their issue dates.
Identify standards, procedures, equipment and materials that will require
a waiver prior to incorporation into the facilities.
Include waivers (reference SAEP-302) that shall reduce project cost
without impacting the design, safety or operational integrity of the
facility.
Describe the deviation(s) in sufficient detail to permit technical
evaluation by the appropriate reviewing agency. Include copies of
waiver applications and approvals. Any approved waiver that has an
impact on the Project must be identified in the Project Proposal and ER
Estimate package and be considered during the Project Risk
Management Study.
3.2.9
Drawing Index and Drawings
This section provides a list and copies of the drawings that define the
scope of the project. It shall include key drawings such as PFDs, P&IDs,
plant and equipment layouts, electrical one-line diagrams, 3D CAD and
other necessary drawings that are required to establish the design basis
and assist in producing an ER quality estimate.
3.2.10 Project Quality Plan
The Inspection Coordinator shall prepare Project Quality Plan (PQP) in
accordance with GI-0400.001 (with input from the Senior Project
Engineer) and obtain Inspection Department’s concurrence before its
approval by the Project Manager. The Inspection Coordinator through
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Project Manager shall also ensure that the specific requirements for
inspection are included in Schedule “Q” for all applicable contracts.
3.2.11 Information Protection and Security Requirements
All projects shall adhere to security measures and controls for all
systems and solutions, including process automation systems, to comply
with security requirements in line with IPSAG and SAEP-99.
Note:
Facilities Security Assessment (final) for Information Technology (IT) is
completed during the FEL2 DBSP phase.
3.2.12 Project Closeout Report Requirements
At the end of the FEL3 Project Proposal phase and subsequent phases,
progressive Project Closeout Reports are to be submitted by the Project
Manager (see SAEP-329). Therefore, it is recommended that SAPMT
includes the requirements in the Project Proposal contract and in the
contract(s) for later phases of the project to ensure that the requisite
information is provided by the contractor(s).
3.2.13 Over-specification Report
FEED over-specification report shall be required after each Project
Proposal design review. This is intended to support the Company in
identifying unnecessary costs associated with specifications exceeding
functional requirements. The report shall:

Identify any over-specification item that exceed the minimum
requirements of applicable Mandatory Saudi Aramco Engineering
Requirements (MSAERs).

Recommend cost effective alternatives to project-specified items
proposed to follow industry standard requirement(s) in lieu of
MSAERs without impacting the safety, quality and operability of the
facility.
The report(s) shall be included in the Project Proposal package and shall
also be distributed to the Project Sponsor and Capital Program Efficiency
Department/PVAD.
3.3
Materials Related Requirements
3.3.1
General
The Project Proposal provides a table of major materials and equipment
identified for the project. During preliminary engineering (per approved
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Material Procurement Strategy, see SAEP-12), the Engineering
Contractor, with guidance from the SAPMT and Materials Procurement
Coordinator, shall review the Company DC (9COM) Surplus and Excess
(9CAT) materials using SAP MMBE transaction to identify all
acceptable or substitute materials which are available in Saudi Aramco
inventories for possible use on the project, with the objective of:
a)
Incorporating materials, which require the least new cash outlay to
Saudi Aramco
b)
Making maximum economic use of the materials available from
surplus and excess cataloged material inventories
c)
Making maximum economic use of locally manufactured materials
d)
Providing full justification for any proposed purchases of contingent
quantities or non-installed spares
During Project Proposal preparation, the SAPMT (through Materials
Procurement Coordinator) shall request formal review, and may request
assistance from the Materials Supply Organization (MSO) on all portions
of the plan that involve materials related aspects of the work. Regardless
of Procurement/Contracting- strategies, SAPMT and Materials &
Inspection Coordinators will continue to be responsible to ensure that the
purchase order is in acceptable technical compliance with relevant
MSAERs. Purchase Orders for inspect-able materials shall be reviewed
by Inspection Department (thru Inspection Coordinator) prior to
placement, to ensure compliance with the Regulated Vendor List, and the
Project’s Technical and Quality requirements.
If procurement of major equipment and materials is on the critical path
of the project schedule, SAPMT may elect to consider “novation” of
these items to reduce their impact on the project schedule. “Novation”
typically involves:
1.
Placement of purchase order by the Project Management Contractor
or Project Proposal Contractor with commitment only for
engineering, and
2.
After ERA, transfer the purchase order to the successful Contractor
on contract award (if LSTK contracting strategy).
The purchase order transferred to the Contractor will cover the complete
scope involving engineering and manufacture. Use of novated purchase
orders should be approved as per of Supply Chain Manual (Volume I:
Saudi Aramco Procurement Manual, Section 1.7 Services Review
Committee “SRC”).
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Prior to placement of novated purchase orders, SAPMT (through
Materials Procurement Coordinator) shall request a formal review from
Materials Supply and Engineering Services-appropriate departments to
ensure that Purchase Requisitions (Request for Quotation) for
inspectable materials indicate the correct 9COM and reference and
stipulate all relevant technical and inspection requirements (MSAERs).
SAPMT (through Materials Procurement Coordinator) shall address
novated purchase requisitions for inspectable materials only to Saudi
Aramco-approved manufacturers. The list of potential manufacturers to
supply an inspectable commodity shall be reviewed formally by
Materials Supply and Engineering Services-appropriate departments
(e.g., Inspection Department) to verify their current approval status.
Novated purchase orders for inspectable materials can only be placed
after receiving a formal no objection letter from involved Engineering
Services and Materials Supply departments.
Novated purchase order terms and conditions shall include all relevant
contract Schedule Q requirements related to material procurement and
manufacturing activities to ensure a smooth transition from the FEED
contractor to the project contractor.
3.3.2
Equipment and Materials Source List
The Project Proposal package shall include a list of equipment
and materials required for the project with their intended sources.
The materials source list identifies major equipment and materials items
(where possible, an estimated dollar value and quantity required shall be
indicated). It also indicates responsibility for inspection, expediting,
traffic and transportation. The Project Proposal effort shall develop
Quotation Requests (QRs) for major engineered equipment and critical
items, and issue these QRs to vendors on a “For Development Only” basis
to determine prices and delivery schedules. For purpose of preparing the
ER Estimate, the major equipment list shall include account number, the
item number, a brief description, the data sheet, a requisition number if
available, the estimated value and other pertinent information.
The following areas shall be segregated:
a)
Surplus Materials - 9COM Materials in Plant M011
b)
Excess Cataloged Materials - Unrestricted use 9CAT Materials in
SAP transaction MMBE
c)
Locally manufactured materials and vendor warehoused materials
(LDOR)
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d)
Cataloged Materials Reservation (9CAT)
e)
Non-cataloged Materials (9COM)
f)
Contractor procured Lump Sum Turnkey (LSTK) or Lump Sum
Procure/Build (LSPB)
g)
Sole source materials and equipment
h)
Materials procured under the Corporate Purchase Agreement(s)
Locally Manufactured Material
During Project Proposal development, the SAPMT (through Materials
Procurement Coordinator) shall obtain a current list of approved locally
manufactured materials and their sources from MSO. This list shall be
provided to LSTK & LSPB contractors to encourage use of locally
manufactured materials.
3.3.4
Critical Plant Equipment Unit Spares
A list of proposed installed spares for critical plant unit equipment and a
list of non-installed capital spares proposed for entry into Saudi Aramco
stores custody shall be provided along with the estimated cost for each
item and justification for purchase. Comparison shall be made between
spares specified in the Design Basis Scoping Paper and spares specified
in the Project Proposal.
3.3.5
Start-up Spare Parts
For LSPB contracts, the SAPMT shall specify start-up spare
responsibility including how they shall be provided, the financial impact
of purchase and final disposition of residual spares.
For LSTK contracts, Contractor is responsible for providing start-up
spares. Residual and/or unutilized start-up spares remain Contractor's
property; such spares may not be purchased from the Contractor by the
Construction Agency. Proponent at their discretion has the option to
purchase these residual spares against their Operating Budget for future
use. Operations shall communicate with Materials Supply Organization
(MSO) to ensure the spares are reviewed against overall inventory needs,
and do not adversely affect existing supplies. Defined start-up spares
may be turned over to Saudi Aramco in accordance with the contract
requirements provided that the quantities and types are in accordance
with the Saudi Aramco stocking policy.
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For LSTK and LSPB contracts, start-up spares responsibility for “free
issue” equipment provided by Saudi Aramco shall be stated clearly in the
contract.
3.3.6
Spare Parts Data Packages
SAPMT and the respective Contractors are responsible for the spare
parts information as outlined under SAEP-31. In all cases, the
SAPMT/Contractors shall provide complete and accurate spare parts data
packages necessary to support Saudi Aramco procurement of operating
spare parts.
3.4
Scheduling and Estimating Requirements
3.4.1
Scheduling Requirements
A Level III Project Summary Schedule shall be developed during the
Project Proposal phase. The schedule will be based on information from
the Project Milestone Schedule (Level II) developed during the FEL2DBSP phase, Work Element Release (WER) Schedules and any other
data as they become available during the FEL2 Design Basis Scoping
Paper (DBSP) and FEL3 Project Proposal phases. The schedule will be
fully resource loaded, including engineering and construction direct man
hours together with all major quantities of materials, at the task level and
will form the basis of the Revision 0 Project Completion Schedule (PCS)
when ER Funding is has been achieved. This schedule will also be the
key document when performing a technical analysis of any submitted
bids received from contractors to determine if the bidders fully
understand the scope and complexity of each BI and to determine if any
major discrepancies exist in the estimates of both direct man hours and
major quantities of materials.
Upon review and acceptance of the Level III schedule by the SAPMT’s
Senior Project Engineer, the schedule will then be submitted by the
SAPMT Business Admin. Group for the concurrence of the Scheduling
Unit of the Project Management Office Department before any decisions
are made by the Construction Agency’s Project Leader/Manager.
Project Summary Schedule should be developed as soon as Preliminary
Engineering starts and will be used as a “working” tool in the absence of
a detailed schedule by Contractor. The Project Summary Schedule shall
be used as a guide for ER estimate preparation, early identification of
long lead material procurement items, contracting strategy (final) and
technical evaluation of Contractors and start-up planning. As-Built
schedules from similar projects can be made available from PMOD
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Scheduling Group to be used as a guide for the initial preparation of the
Level III schedule.
Project Summary Schedule shall address all the project life cycle
activities in a summary format. It must be logic driven, and based on the
Critical Path Method (CPM). The Schedule should contain sufficient
detail to show potential material or equipment “novation”, long lead
items, contract procurement activities, detailed engineering by discipline
leading to major deliverables, mobilization, early works, shutdown, hot
taps/stopple operations, tie-ins, testing, loop checks, pre-commissioning,
start-up, interface with Proponent and other projects as well as drilling
milestones, as applicable.
Project Summary Schedule shall also include ER estimate preparation
and approval activities including Estimate Kick-off, milestone dates for
Scope Compliance and any ER Estimate reviews or any other design
reviews, MTOs for the relevant disciplines, equipment pricing,
NOVATION of equipment and/or Prior Approval Expenditure Request
(PAER), Technical Review Meetings, and the final approval of the
Project Proposal and 56D preparation and submittal to the Facility
Planning Department (FPD).
The Project Summary Schedule MUST be fully resource loaded (with
the latest man hour and major equipment estimates) and it shall form
the basis for the original (Rev.0) Project Completion Schedule (PCS).
The Project Summary Schedule should contain appropriate level of detail
while still supporting critical and key milestone dates defined and
prescribed in the contract (Schedule “B”). The Project Summary
Schedule is expanded to include critical milestone dates as well as any
other key milestones that are provided by the Contractors. If “novation”
materials and equipment are included in the execution plan, the purchase
order date and required delivery date should be incorporated in the
schedule. The schedule shall include review time requirements specified
in SAEP-303.
For reference, see Cost & Scheduling Manual available on the
PMOD/PEMD website. Contact Scheduling Unit in PMOD for more
detailed information on Project Summary Schedule and assistance, if
required.
3.4.2
ER Estimate Requirements
Project Proposals must be completed and approved in time to support the
Expenditure Request Approval (ERA) date. The SAPMT shall comply
with the requirements of SAEP-25 for developing the ER Estimate Plan,
arranging the initial kick-off and subsequent ER Estimate Review
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Meetings, preparing & submitting the ER Estimate package, pre-bidding
(to improve the estimate accuracy), assisting in Market Outlook Study
and Market Risk assessment, etc.
Note:
The ER Estimate requirements specified in SAEP-25 supersede the
provisions listed herein.
SAPMT may contact PMOD/Estimating Services Division (ESD) for
assistance with this section, if required.
3.5
Appendix
The Appendix shall include letters, minutes, land use permits and other pertinent
documents written during Project Proposal development.
3.6
Numbering Project
All Project Proposals shall be numbered by the issuing office as follows:
Saudi Aramco
APP Series (Numbers assigned by the Technical Information
Center, Dhahran)
ASC
TPP Series (Numbers assigned by the Technical Services
Dept/Engineering Unit, Houston)
APP or TPP numbers shall be on the Project Proposal cover sheet.
3.7
Training Impact Assessment
SAEP-140 requires that a Training Impact Assessment (TIA) be prepared as part
of the Project Proposal for all projects for which training programs for
operations and/or maintenance personnel will be required. These training
programs will not be provided by the project and costs for training pre- and postcommissioning are not be paid for by capital funds (also, refer to GI-0202.309).
As an integral part of the Operational Readiness Plan, the Proponent (Senior
Operations Representative) is responsible for identifying any training
requirements for a project and ensuring that these requirements are met during
the Project planning and execution phases. To meet this objective, Senior
Operations Representative shall prepare a Training Requirement Statement
(TRS). SAPMT (Project Manager) will provide equipment identification and
any details that may assist Proponent in preparation of the TRS. The Proponent
will provide the completed TRS to the Training & Development’s Early BI
Training Planning Team (EBTP) to complete a Training Impact Assessment
(TIA). If training is to be required, EBTP shall submit TIA’s Knowledge &
Skills Matrix’ (KSM) data to SAPMT for inclusion in the Project Proposal, in
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accordance with SAEP-140. SAPMT is responsible for incorporating the
findings of the Training Impact Assessment in the final Project Proposal.
SAPMT may also be required to implement the findings of the Training Impact
Assessment as included in the approved Project Proposal. These may include:

Incorporating contract provisions that require the Contractor to develop
multiple quotations for specified equipment so that the cost of training can
be taken into consideration when selecting the life-time, low-cost supplier.
These provisions will allow Saudi Aramco to direct the Contractor to place
its order with one of the proposed technically acceptable suppliers and will
provide for additional payment to the Contractor if the selected supplier did
not offer the lowest base price to the Contractor.

Incorporating requirements for the Contractor to include provision in its
purchase orders for specified equipment that establish fixed prices for
training services or material to be procured at a later date by Saudi Aramco.
This will reduce the possibility of a supplier overcharging Saudi Aramco
when training services or materials are procured on a single-source basis.

Providing the vendor training plans and quotes for the equipment identified
for training to the EBTP team for analysis. After the initial analysis of the
vendor training plans and quotes, the EBTP team will provide training
recommendations to SAPMT for considerations during the vendor selection
process.
After vendors have been selected, SAPMT will provide the EBTP team a list of
the specific equipment required for training, general vendor data information,
training scope, cost and schedule required for training prior to commissioning.
4
Project Improvement Requirements
This section consists of practices/studies that when implemented would optimize project
cost, schedule & quality and enhance the efficiency of project planning and execution.
Budgeting for conducting value practices is included in the Preliminary Engineering
funds.
4.1
Value Improving Practices
SAPMT shall implement applicable Value Improving Practices (VIPs) in
accordance with SAEP-367.
SAPMT may contact PMOD/Project Execution Optimization Division (PEOD)
for assistance with this section, if required.
4.2
Benchmarking
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Project shall be benchmarked in accordance with SAEP-26. PMOD/Project
Execution Intelligence Division (PEID) will coordinate with SAPMT and FPD
for selected projects to be benchmarked (internally and/or externally) during the
FEL3 Project Proposal phase.
4.3
Target Setting
Target Setting is one of the five efficiency enablers of the Capital Management
System (CMS). SAPMT, FPD and PMOD, as part of the Integrated Project
Team, are responsible for developing target setting for the projects. For further
details regarding roles and responsibilities, the target setting process and project
requirements, refer to the latest Target Setting Manual.
4.4
Market Outlook Study
According to the size, complexity, uniqueness and level of project importance,
a market outlook study shall be performed as agreed with PMOD/ESD.
As a minimum, it shall be required for mega-projects ($1 billion and above).
For details, see SAEP-25.
4.5
Energy Optimization Study
Per new Capital Management System (CMS), Energy Optimization study is
completed during the FEL2 DBSP phase.
4.6
Corrosion Management Program
Any new project or major upgrade of a process facility shall be required to
implement a Corrosion Management Program (CMP) as specified in Section 8 of
Saudi Aramco Engineering Standard SAES-L-133. The purpose of the program is
to reduce the total cost of ownership and to minimize the operational, safety, and
environmental impact of corrosion and material failure. The program will include
an integrated plan to address all corrosion and material degradation aspects,
material selection, corrosion protection, corrosion monitoring, chemical treatment
and corrosion risk assessment for all mechanical equipment, piping and fittings
during the design, procurement, construction and commissioning of the facility.
The CMP shall be submitted for review and approval by the Coordinator, Asset
Reliability & Integrity Management Division of Consulting Services Department
(CSD).
5
Reporting and Review Requirements
5.1
Project Proposal Distribution for Review and Meetings
Draft Project Proposals shall be distributed for review to the appropriate
members of Saudi Aramco Management and attendees of the Technical Review
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and Project Proposal Meetings. Distribution of the Project Proposal narrative
shall be in an approved editable electronic format.
Note:
The e-Review system is the Company’s standard web-based system for the
review of Project Proposal packages, and engineering drawings/documents.
SAPMT shall submit review packages through this system unless there is a
compelling reason to do otherwise. For numbers & types of reviews,
procedures and guidelines, see SAEP-303.
The IPT Leader (SAPMT’s Project Manager) and Proponent (Senior Operations
Representative) are responsible for determining the recipients. As a minimum,
the following represents a list of various organizations that shall be considered
for receipt of the Project Proposal. However, only those organizations with
direct involvement shall receive the Project Proposal.
Executive Management:
-
Proponent Organizations, i.e.;
Refining & NGL Fractionation
Northern Area Oil Operations
Southern Area Oil Operations
Pipeline, Distribution & Terminals
Gas Operations
-
Petroleum Engineering and Development (for production-related projects)
General Management:
-
Industrial Security Operations
-
Proponent organization
Management:
-
Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products movement and
handling)
-
Communications Engineering & Technical Support Department
(for all projects involving communications)
-
Projects & Strategic Purchasing Department
-
Transportation & Equipment Services Department
-
Power Operations Department (relevant)
(for all projects related to power facilities at 2.4 kV and above)
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-
Abqaiq, Dhahran or Ras Tanura Utilities Department
(for the area community projects only)
-
Facilities Planning Department (mandatory)
-
Consulting Services Department
-
Inspection Department
-
Environmental Protection Department
-
Process & Control Systems Department
-
Industrial Security Support Department
-
Loss Prevention Department
-
Fire Protection Department
-
Project Management Office Department (for information only)
-
Capital Program Efficiency Department (for Value Assurance Reviews)
Technical Review Meeting
The Technical Review Meeting shall be held no sooner than ten (10) working
days after distribution of the Project Proposal for review. Location, date, and
time of the meeting shall be announced in the cover letter distributed with the
Project Proposal. The Technical Review Meeting shall discuss all technical
aspects of the Project Proposal, resolve technical questions, address
environmental issues and review the Project Summary Schedule. Interim
technical review meetings shall be conducted as required by SAPMT depending
upon the type and complexity of the project. Items not resolved at the final
technical review meeting shall be addressed in the Project Proposal Meeting.
Substantive changes resulting from the technical review meeting shall be
incorporated as appropriate into the Project Proposal documents.
SAPMT shall prepare minutes of the Technical Review Meetings and distribute
the minutes, electronically whenever possible, to all persons who either received
the Project Proposal or attended the Technical Review Meeting. The minutes
shall include the estimated cost and schedule effects of changes from the
DBSP/Project Proposal as originally prepared. Refer to Section 3.2.3 for
definition of scope change and its approval process.
The subject of critical plant equipment unit spares (capital spares) per Section 3.3.4
shall be addressed, and proposed purchases shall be reviewed.
5.3
Project Proposal Meeting
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The purpose of the Project Proposal Meeting is to resolve any outstanding items
remaining after the Technical Review Meeting and to finalize the project scope.
The Project Proposal Meeting shall be scheduled no sooner than five (5)
working days after distribution of the minutes of the Technical Review Meeting.
The delegated representatives of the Project Proposal approval authorities
(Section 6.1.1) shall attend this meeting in order to make decisions on matters
not resolved in the Technical Review Meeting.
SAPMT shall be responsible for preparing and distributing the minutes of the
Project Proposal Meeting to those persons who either received a copy of the
Project Proposal or attended the Project Proposal Meetings.
For selected small projects, the Technical Review and Project Proposal
Meetings can be combined into one meeting, with the concurrence of the
Proponent and FPD. In this case, the reviewing organizations should send
personnel authorized to make decisions to attend the meeting.
5.4
Distribution and Storage of Approved Project Proposals
Following the approval of the Project Proposal, a final approved copy shall be
distributed as follows:
5.4.1
Aramco Services Company (ASC)
An electronic copy of every Project Proposal shall be sent to ASC,
Technical Services Dept/Engineering Unit, Houston, only if it is
completed in North America OR will be used to competitively bid or
sole source work in North America.
5.4.2
Saudi Aramco
SAPMT shall send electronic copies of the approved Project Proposal to:
- Facilities Planning Department (FPD) - one hard copy, to be used as a
“working” document for five years or for the duration of the project,
whichever is longer.
- Technical Information Center (TIC) - one electronic copy for archival
purpose.
- Project Management Office Department (PMOD) - one electronic
copy, for Estimating Services Division (ESD) use and record.
The electronics file submissions shall be on CD-ROM and contain an
index at the beginning of each file medium to facilitate retrieval of stored
data. The electronic text, spreadsheet, and graphical data shall be in
Microsoft format, and drawings shall be in accordance with Saudi
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Aramco standards and formats. Scanned documents shall be in Acrobat
format in accordance with the corporate standard maintained by
EK&RD/Drawing Management Unit.
6
Approvals and Waivers
6.1
Approval Process
6.1.1
Approvals
SAPMT shall be responsible for obtaining approval for the Project
Proposal from the appropriate individuals listed below. SAPMT may
add individuals/departments to the list, when required. Executive
Management may delegate the approval authority to General
Management level.
-
Manager, Construction Agency Department
-
Manager, Facilities Planning Department
-
Manager, Consulting Services Department
-
Manager, Environmental Protection Department
-
Manager, Process and Control Systems Department
-
Manager, Proponent Department
-
Manager, Loss Prevention Department
-
Manager, Fire Protection Department
-
Manager, Power Operations Department (relevant)
(for all projects having power facilities of 2.4 kV and above)
-
Manager, Oil Supply Planning and Scheduling Department
(for all proposals related in any way to hydrocarbon products
movement and handling)
-
General Manager, Industrial Security
-
General Manager, Proponent (if any)
-
General Manager, Area Construction Agency (if any)
-
Vice President, Petroleum Engineering and Development
(for production-related projects)
-
Vice President, Engineering Services
-
Vice President, Proponent Organization
- Project Sponsor (PS)
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SAEP-14
Project Proposal
Vice President, Construction Agency
The required approvals shall be obtained through SAP using the Project
Proposal e-Approval (PPeA) System. Project Proposal approval package
shall comprise of maximum ten (10) documents and those include:
1)
Project proposal checklist,
2)
Project summary,
3)
Minutes of all the technical review meetings,
4)
Minutes of project proposal meeting,
5)
Comments’ log,
6)
List of scope changes from the approved DBSP (see Exhibit III.c),
and
7)
Other applicable documents (up to four numbers).
Note:
Hardcopy approvals shall be allowed only if there are compelling
reasons and prior concurrence from the Manager, PMOD.
For Project Proposal Approval routing, see Exhibit IV (sample
workflow). Obtaining approvals (signatures for hardcopies) constitutes
full Project Proposal approval.
6.1.2
Unresolved Items
If unresolved items exist that would preclude obtaining approvals as
described in Section 6.1.1, SAPMT shall refer any unresolved item(s)
through appropriate channels of authority (including Project Sponsor)
until resolution is obtained.
6.1.3
Changes to an Approved Project Proposal
For a project with an approved Project Proposal which has not yet
received Expenditure Request (ER) approval, scope change(s) shall be as
per Section 3.2.3.
The proposed change in the meeting minutes or its addendum shall
include justification and the cost/schedule/risk impact. The required
minimal approval authority for the proposed change is Construction
Agency Project Manager level.
SAPMT shall distribute the approved changes to PMOD and all
organizations that received the original approved Project Proposal.
Note:
All scope changes after the Expenditure Request Approval (ERA) shall
be dealt in accordance with GI-0020.520 - Project Change Request.
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6.2
SAEP-14
Project Proposal
Project Proposal Waiver
6.2.1
Request
For selected projects, Construction Agency Department may request to
waive the requirement for a Project Proposal/Front End Engineering
Design (FEED) and proceed directly with detailed design using
preliminary engineering funds. This request will permit SAPMT to
use Engineering Work Order (EWO) funds for preliminary engineering
(see GI-0202.451) to carry out detailed design, perform selected project
proposal requirements and to prepare an ER quality estimate for funding
approval. Project Proposal waiver does not exempt ER Estimate, Project
Execution Plan, Saudi Government’s safety and security directives and
Value Improving Practices requirements.
6.2.2
Approval
To obtain a waiver of Project Proposal and proceed with detailed design
the Construction Agency Department Manager shall prepare a formal
letter (concurred by the Project Sponsor) requesting approval to carry out
detailed design during Project Proposal. The letter shall be addressed to
Vice Presidents/Executive Heads of the Construction Agency, and
Proponent organization. The letter should state the present situation,
scope of work, justification for the waiver and identify what project
proposal requirements, if any that will be performed during detailed
design. Approval is accomplished once request is accepted and signed
by the addressees.
Note:
7
The Construction Agency shall communicate approved waivers to
CPED for all projects following the CMSEE (see SAEP-40).
Contract Bid Package
As applicable, the Contract Bid Package will be developed in close coordination with
the Contracting Department. Refer to Contract Development Checklist (Exhibit V), for
key activities in developing Contract Bid Package.
A complete Contract Bid Package shall be prepared in accordance with Supply Chain
Manual and typically contain the following:

Invitation for Bid documents

Technical Proposal documents

Commercial Proposal documents
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
Project Proposal
As part of Commercial Proposal requirements, Bidders shall be required to submit a
Bid Quantification Summary as shown on Exhibit VI for bid analysis purposes.
Note:

SAEP-14
Copies of the final Bid Quantification Summary from the successful bidder will be
provided to PMOD/ESD.
Fully developed and approved Contract documents which include Schedules A
through F, H (as applicable), Q and S.
Issue for Bid package (normally prepared by Engineering Contractor) typically includes
drawings, specifications, applicable reports, and other relevant documents necessary to
define the project requirements and clearly describes the contract scope of work.
SAPMT should take into consideration the current project execution plan and
responsibilities of all contractual parties when revising the Project Proposal package to
“Issue for Bid” Package.
The following sections in the Project Proposal package should be reviewed carefully to
determine if they are applicable for inclusion in the bid package. If they are to be
included, SAPMT shall modify as required to ensure that Contractor’s scope of work is
clearly defined in the “Issue for Bid” Package:
8

Project Schedule

Training requirements

Land Permits

Operating Variables (as required by OSPAS)

Strategy for projects compliance with quality requirements

Project- Risk Management Plan, Risk Assessment Report and Risk Register

Temporary construction and communications
Conflicts and Deviations
8.1
Any conflicts between this procedure and other applicable Saudi Aramco
Engineering Procedures (SAEPs), shall be resolved in writing by the General
Supervisor, Project Execution Optimization Division (PEOD), Project
Management Office Department (PMOD) of Saudi Aramco, Dhahran.
8.2
Direct all requests to deviate from this procedure following internal Company
procedure SAEP-302 and forward such requests for review to General Supervisor
PEOD and approval to the Manager, PMOD of Saudi Aramco, Dhahran.
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Page 31 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
Revision Summary
31 May 2015
Major revision to address ATP-Capital Efficiency’s CMS requirements. Added missing
references, listing of MSAERs/Over-specs items/design, RAM study, and requirements for
assigning Tag numbers, returning unused Drawing numbers and using Drawings/Data files
formats and Security and Control of Engineering Data. Additionally, added Operating
Instructions, Projects Records, Project Closeout Reports and Project Proposal electronic
approval requirements. Deleted duplicate text and exhibits with other SAEPs.
30 April 2017
Minor revision to: 1) reference SAEP-360, -1350, -72 and -148, 2) align procedure with revised
CMS-FEL Manual and SAEP-1350 (for Modularization needs), 3) include Over-specification
report requirement, 4) modify SCDR implementation needs, and 5) incorporate editorial
changes.
02 May 2019
Editorial revision to comply with content confirmation requirements
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Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBITS
TABLE OF CONTENTS
EXHIBIT I
PROJECT PROPOSAL CHECKLIST
EXHIBIT II
FRONT END LOADING (FEL) and PROJECT CHARACTERIZATION
EXHIBIT III
SCOPE CHANGE FROM DBSP- REQUEST (SCDR)
EXHIBIT IV
PROJECT PROPOSAL APPROVAL ROUTING
EXHIBIT V
CONTRACT DEVELOPMENT CHECKLIST
EXHIBIT VI
BID QUANTIFICATION SUMMARY SHEET
Saudi Aramco: Company General Use
Page 33 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT I – PROJECT PROPOSAL CHECKLIST
Item
Ref. Section
Description
Complied
Remarks
(Yes/No)
(Justification of non-compliance)
Complete all required FEL3 Project
Proposal deliverables
a
3
1
3.2.2
Include Project Proposal related
documents as described in Section 3.2.2
2
3.2.3
Document approved Scope Changes from
DBSP
3
3.2.4
Comply with Temporary and Permanent
Project Communication Requirements
4
3.2.5
Comply with Safety and Security
Directives
5
3.2.6
Perform required Studies and
Assessments (e.g., ETAP, HAZOP, SIL
and RAM studies, BRA, etc.)
6
3.2.7
Perform Environmental Impact
Assessment
7
3.2.8
Apply and obtain approval of Waivers
from Mandatory Saudi Aramco
Engineering Requirements (MSAERs)
9
3.2.9
Include a list of drawings and drawings
that define project scope
10
3.2.10
Prepare Project Quality Plan as per GI0400.001 including Schedule “Q”
11
3.2.11
Fulfil Information Protection and
Security Requirements
12
3.2.12
Fulfil Project Closeout Report
requirements
13
3.2.13
Fulfil Over-specifications Report
requirements
14
3.3.1
Review Surplus and Excess Inventory
and Long lead- Time Equipment &
Materials requirements. Also, identify
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Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
Item
Ref. Section
Description
SAEP-14
Project Proposal
Complied
Remarks
(Yes/No)
(Justification of non-compliance)
project’s major material and equipment
to be reviewed by Inspection Dept.
15
3.3.2
Develop major Materials and Equipment
Source List
16
3.3.3
Obtain a list of approved Locally
Manufactured products and source
17
3.3.4
Develop a list of Critical Plant
Equipment Unit Spares
18
3.3.5
Identify required Start-up Spares with
Proponent with concurrence of MSO
19
3.3.6
Fulfill Spare Parts Data packages needs
20
3.4.1
Prepare Level III Project Summary
Schedule
21
3.4.2
Prepare ER Estimate Package (per
SAEP-25)
3.7
Review Project Training Impact
Assessment (see SAEP-140) and identify
required implementation
23
4.1
Comply with Value Improving Practices
(including Project Risk Management)
requirements (see SAEP-367)
24
4.2
Comply with Benchmarking requirements
(see SAEP-26)
25
4.4
Comply with Corrosion Management
Program
22
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Page 35 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT II – FRONT END LOADING (FEL) and PROJECT CHARACTERIZATION
Front End Loading (FEL) Phases
The number of Gates varies depending upon project Characterization, specifically:
 Type A and B projects typically have four Gates
 Type C and C1 projects typically have three Gates
Project Characterization
(M denotes $1,000,000)
Facilities Planning Department (FPD) leads the portfolio characterization of all projects in the
Saudi Aramco portfolio based on project size and complexity as shown in Figure below.
EXHIBIT III.a – SCDRs APPROVAL FORM (Format)
(Hold down Ctrl key and click => Exhibit III.a for editable file: SAEP-14E)
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Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
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Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT III.b – SCDR’s ROUTING
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Page 38 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT III.c – LIST OF APPROVED SCDRs
Impact
Title:
SCDR
No.
Brief Description:
Justification:
Cost
($MM)
Schedule
(Months)
Date
Initiated
Approved
* Note: Enclose supporting documents.
Saudi Aramco: Company General Use
Page 39 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT IV – PROJECT PROPOSAL APPROVAL ROUTING
Project Proposal Approval Routing
After Completion of 90%
Review & Final Review
Meetings
FPD Manager
CSD Manager
VP Engineering
Services
EPD Manager
PMT Coordinator
(Select Depts., cords.,
upload attachments &
Initiate workflow)
P&CSD Manager
Proponent Dept.
Manager
VP Proponent
Organization
GM Prop. (if any)
SPE or BA
(Insert Project Manager in
approval workflow and
approve)
LPD Manager
FrPD Manager
Ind Sec. Support
Manager
Manager
Construction
Agency Dept.
GM Ind. Security
Project Manager
Power Op’n Dept
Manager
Manager
Construction
Agency Dept.
GM Area
Construction
Agency
OSPAS Manager
Manager
(as applicable)
GM Pet. Eng.
VP Petroleum
Eng.& Dev.
Dept.Mgr.X (if req.)
GM X (if req.)
VP X org.
(if req.)
Mandatory Approval Authority
VP/ED
Construction
Agency
Approval Authority dependent on project type
Saudi Aramco: Company General Use
Note:
For CMS compliant projects, SAPMT shall add Project Sponsor (PS) as Project Proposal
approver before VP/ED of the Construction Agency.
Saudi Aramco: Company General Use
Page 40 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT V – CONTRACT DEVELOPMENT CHECKLIST
Following are the list of key activities for developing the contract package.
Item
Description
Complied
Contracting Strategy
1
Develop/update and Approve Contracting Strategy – Required as
part of the Abbreviate PEP for all projects (SAEP-12). Strategy is
to be updated if there are changes during the progress of the project.
2
Enter and maintain data on all contract action covered by the
Contracting Strategy in to the PMIS Contract Action Development
and Administration (CADA) module.
Pro Forma Contract and Specific Instructions to Bidders (SIB)
3
Complete preliminary Evaluation Plan so appropriate technical and
commercial questions are included in the SIB.
4
Secure approvals for all single source procurement as per Supply
Chain Manual (SCM) and include appropriate language in Schedule
“G.”
5
Complete Schedule “Q” language in accordance with approved
Quality Plan (GI-0400.001) and review proposed language with
Inspection as needed.
6
Include language relating to approved training requirements in the
form of a preliminary TIA consisting of the knowledge and skills
matrix and approved training requirements’ language (SAEP-140).
7
Review any language related to contractor-supplied LAN and PC
equipment with the appropriated IT office(s).
8
Include requirements for bidder price breakdowns as part of the
Commercial Proposals and quantity lists as part of the Technical
Proposals.
Hypothetical Quantities and Bid Conditioners
9
10
Prepare hypothetical quantities to be used to evaluate rates proposed
by the bidders (e.g., change order rates).
Prepare, in conjunction with other members of the Bid Review
Team, data to be used for allowed bid conditioner (e.g., different
SAPMT cost for various locations).
Bid Review
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Page 41 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
Item
Description
11
Prepare Bid Review Program
12
Prepare Technical Proposal Evaluation Criteria
SAEP-14
Project Proposal
Complied
Review of Contract and Contract Supplement as Part of the Bid
Review Team
13
Ensure that the Contract is structured correctly for SAP SRV
releases (for lump sum, three items – lump sum price, change orders,
and other expenditures; and use of “VAL” with the amount in the
“quantity” column).
14
Ensure that AEL includes reasonable amounts for all applicable
“Other Expenditures” (e.g., incidental services, Saudi manufacturer
equalization, stand-by time, reimbursable start-up and
commissioning assistance, variations from target quantities, etc.).
15
Ensure that the Contract Supplement includes an appropriate
Change Order limit (percent).
16
After award of the contract, provide copies of the bidders’ price
breakdowns and quantity lists to PMOD.
Note:
For a project using an LSTK contracting strategy, these actions are required during or just after
the Project Proposal period. For other strategies (e.g., GES+ LSPB) some of the activities take
place at later stages of the project.
Saudi Aramco: Company General Use
Page 42 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
SAEP-14
Project Proposal
EXHIBIT VI BID QUANTIFICATION SUMMARY SHEET
PROJECT TITLE
:
BI
:
CONTRACT NUMBER
:
JO
:
CONTRACT TYPE
:
SUMMARY OF COST
BY WORK BREAKDOWN STRUCTURE (WBS)
AREA OF WORK
BULK
MATERIALS
ENGINEERING
CONSTRUCTION
TOTALS
AREA OF WORK 1
$
$
$
$
AREA OF WORK 2
$
$
$
$
AREA OF WORK 3
$
$
$
$
AREA OF WORK 4
$
$
$
$
TOTAL PROJECT COST
$
$
$
$
SUMMARY OF QUANTITY AND COST
BY DISCIPLINE
DISCIPLINE
DESCRIPTION
UNIT
DEMOLITION
(SCA 007)
TOTAL DEMOLITION WORST
L
CIVIL / STRUCTURE
(SCA 200 & 400)
MECHANICAL/
PROCESS
EQUIPMENT
(SCA 500)
QUANTITY
COST
UNIT COST
$
$
SITE PREPARATION /
DEVELOPMENT
(PLOT SIZE)
SM
$
$
TANK FARM DIKING
CM
$
$
CONCRETE
CM
$
$
FENCE
LM
$
$
LANDSCAPING & IRRIGATION
SM
$
$
STRUCTURAL STEEL
TONS
$
$
BUILDINGS (TYPE OF BLDGS)
TOTAL CIVIL/STRUCTURE
MANHOURS & COST
SM
$
$
MHRS
$
$
STATIC EQUIPMENT
EACH
$
$
HEAT EXCHANGERS
EACH
$
$
AIR COOLERS
EACH
$
$
PUMPS
EACH
$
$
COMPRESSORS
EACH
$
$
OTHER PACKAGE EQUIPMENT
EACH
$
$
TOTAL MECHANICAL/PROCESS
EQUIPMENT MANHOURS & COST
MHRS
$
$
Saudi Aramco: Company General Use
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Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
PIPING
(SCA 600)
ELECTRICAL
(SCA 700)
COMMUNICATIONS
(SCA 780)
INSULATION &
COATINGS
(SCA 900)
CONSTRUCTION
Project Proposal
LENGTH OF PIPE RACK
TONNAGE CARBON STEEL (PIPE
RACK)
UNDERGROUND CARBON STEEL
PIPING
ABOVEGROUND CARBON STEEL
PIPING
LM
$
$
TONS
$
$
LM
$
$
LM
$
$
TONNAGE CARBON STEEL PIPES
TOTAL PIPING MANHOURS &
COST
TONS
$
$
MHRS
$
$
TRANSMISSION LINE LENGTH
KM
$
$
MAIN SUBSTATION
MW
$
$
UNIT SUBSTATION
MW
$
$
ELECTRICAL CABLE TRAY
UNDERGROUND ELECTRICAL
CABLE
ABOVEGROUND ELECTRICAL
CABLE
TOTAL ELECTRICAL MANHOURS &
COST
LM
$
$
LM
$
$
LM
$
$
MHRS
$
$
I/O
$
$
EACH
$
$
EACH
$
$
FIRE & GAS DETECTION SYSTEM
EACH
$
$
INSTRUMENTATION CABLE TRAY
UNDERGROUND
INSTRUMENTATION CABLE
ABOVEGROUND
INSTRUMENTATION CABLE
TOTAL INSTRUMENTATION
MANHOURS & COST
LM
$
$
LM
$
$
LM
$
$
MHRS
$
$
FIBER OPTIC CABLES
LM
$
$
COMMUNICATION EQUIPMENT
TOTAL COMMUNICATIONS
MANHOURS & COST
EACH
$
$
MHRS
$
$
$
$
PROCESS CONTROL SYSTEM
(DCS/ESD/VMS)
CONTROL VALVE COUNT
(MOV/GOV/MANUAL)
FIELD INSTRUMENTS
(TRANSMITTERS/TGS)
INSTRUMENTATION
(SCA 800)
SAEP-14
INSULATION AND FIREPROOFING
(EQUIPMENT, STRUCTURES,
BUILDINGS, etc.)
TOTAL INSULATION & COATINGS
MANHOURS & COST
MHRS
$
$
TOTAL DIRECT CONST
MANHOURS & COST
MHRS
$
$
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Page 44 of 45
Document Responsibility: Project Management Office
Issue Date: 02 May 2019
Next Planned Update: 30 April 2020
TOTAL INDIRECT CONST
MANHOURS & COST
TOTAL CONSTRUCTION
MANHOURS & COST
ENGINEERING
TOTAL ENGINEERING MANHOURS
& COST
TOTAL PROJECT COST
SAEP-14
Project Proposal
MHRS
$
$
MHRS
$
$
MHRS
$
$
DOLLARS
$
$
ACTIVITY
SCHEDULING
IN MONTH(S)
DETAIL DESIGN DURATION
CONSTRUCTION DURATION
EQUIPMENT WITH MORE THAN 6 MONTHS LEAD-TIME
DELIVERY
Saudi Aramco: Company General Use
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