PMC SCOPE and RESOURCES

1 Proposal Qualifications and Options

The basis for this proposal are represented by:
- the general presentation of the Project BY THQ which is reported in Annex 1;
- the clarification on the PMC scope and role requested by the Client, as
discussed at the meeting in Hanoi o 25 February 2015;
- the understanding by the bidder that about 15 complete EPC packages,
including the M&E and the RTA-AP Technology Package and Assistance
constitute the entire scope of the Project and that all these Contracts are being
awarded within April 2015. It is understood that these EPC Package Contractors
and the Construction Sub-contractors shall provide the full range of Site
Management services which must be adequate to their specific scope of supply :
Site Management, Field Supervision, Planning & Reporting, Field Engineering
support, QA/QC, HSE, Quantity Surveyors, Material Management and
Warehousing, Procurement, Commissioning Engineers and Training specialists.
- the Client summary matrix of the Project scope of supply which is reported in
Annex 2;
Accordingly, the PMC’s scope of supply which is expected by the Client is being
interpreted by the bidder as follows:
a) Exclusions from the PMC Scope of Services
Procurement/Sub-contracting : Client scope
Engineering& Design: Client/AP/EPC /M&E scope
Freight Forwarding (shipment, customs): Client/EPC scope
Hot Commissioning/Start-up: Client/AP/EPC scope
Plant Automation: Client/EPC scope
Material handling and storage on site : EPC scope
Site construction facilities, site offices and canteen, PMC expats and
local staff apartments, workers camp, PMC personnel transportation
in Vietnam and on site: Client scope
Site Security : Client scope , through local Police
Construction and any other permits: Client scope
Project HSEQ Manual : Client scope
Bankable Feasibility Report : Client scope
b) Included in the PMC Scope of Services
M&E Engineering coordination/surveillance : assure proper interface
management with the various EPC packages, assure and control orderly
in-out flow of data and drawings, manage and solve possible conflicting
situation through dedicated Area Engineers.
Contract Management : manage all issues (claims, change orders,
battery limits, schedule, etc.) that can arise during the execution of the
fifteen EPC Package Contracts.
Project Control (Planning, Progress, Cost, Document Control,
Quantity Surveys) : the Cost Controller shall be directly reporting to the
THQ Project Manager.
Coordination/Supervision of Construction Permits applications by
Client : assure the timely release of construction permits according to site
priorities.
Interface Management: define/coordinate/resolve all interfaces issues
originated by both Engineering and Construction activities of the various
EPC packages.
Construction Supervision : supervise and control the EPC construction
works by mean of Construction Area Engineers; include also the
supervision/coordination of the CM Services outsourced by the Client.
POV/Cold Commissioning and O&M Training of Plant operation team:
by mean of Area Engineers, shall coordinate/supervise from a functional
systems’ point of view all these activities.
QA/QC Supervision : enforce the application of QC rules set forth in the
HSEQ Manual, the QC procedures, the Contracts awarded by the Client
and any other applicable project document; coordination/supervision of the
field inspectors provided by specialised outsourced companies (as for
instances SGS, Veritas).
HSE Supervision: Coordinate and Supervise the EPC contractors during
construction to assure the enforcement of the Safety rules set forth in the
HASEQ Manual issued by Client and in the applicable Procedure,
supported by a team of area safety inspectors outsourced from a
specialized firm.
Material Management on Site : overall coordination/supervision of the
EPC contractors on site to assure proper storage procedure are enforced,
including material traceability registers.
R5501_PMC_r01 PMC Services Page 7 of 30
Risk Management : identify and evaluate on a periodic basis (usually
monthly) the risks that may prevent the project from achieving its
objectives in terms of quality, safety, time of delivery and cost of the scope
of work, proposing the most effective solutions.
Project Management Plan and HSE Management plant : organizational
procedures which shall implement also the HSEQ Manual issued by the
Client, integrated by the Management, QC and HSE procedures necessary
for an adequate coordination and control of the Project.
c) Options discussed with the Client at the meeting in Hanoi on 25
February 2015 (not in PMC scope until a Client decision is made)
Expediting: the Client consider this a very critical activity for assuring the
Project schedule is achieved in time.
Validation of Project Costs and Schedule: assess the entirety of the
Project Matrix of scope of supply, the reliability of the final Project Costs
estimated and of the Project Completion Schedule. This option shall be
executed at the PMC headquarters in Europe and dealt with as a lumpsum
change order.
d) Options being proposed by the PMC
Engineering support : should the Client require a Design / Engineering
support in any discipline, both Basic and Detail level (Layout, Civil,
Structural, Electrical, Process, Piping, Mechanical, I&C, Automation) it
could be provided and executed at the PMC headquarters in Europe
availing the necessary support for information and documents from the
PMC team onsite.

2 PMC Scope of Work- overview.

The PMC Team shall be responsible for coordinating and supervising the Project
construction activities in the various areas as described in the previous
paragraph, assisting and advising the Client in order to achieve the project
completion within the schedule deadline and within the budget costs.
In details, the Fata Project Team duties shall be:
- assistance to Client on the Procurement Strategy and Work Packages
Breakdown, whenever necessary;
- develop the Project Control Programme, Risk Management and Site
Organisation Structure for managing the Works, optimizing Client and PMC
resources, integrating them in one lean and efficient team;
- coordinate and supervise the M&E Process/Detail Engineering to assure a
timely execution and the correct management of interfaces with the
Technology Provider RTA-AP and the EPC Package Contractors , resolving
potential interface issues. Dedicated Interface Managers shall be in charge
for coordinating the solution of issues originated by the Engineering,
Manufacturing and Construction activities of the EPC Contractors.
- provide professional advice to the Client and to the M&E Engineering
regarding the technical solutions to be adopted, particularly on their feasibility
and cost-effectiveness, constructability, operability, maintainability and safety;
- develop, update and maintain a proper Document Control programme;
- Coordinate and assist the Client’s team obtaining the necessary Construction
permits from the local Authorities, liaising with the M&E Engineering and the
EPC Contractors who are the responsible Parties for the detailed design,
construction and environmental Permits;
- assist Client in the Contract Administration, by monitoring Contractors’ and
Vendors’ works progress, payments, claims, change orders and battery limits
issues.
- Set-up a Project HSE System for Construction and Commissioning to grant a
safe work environment for all persons working on the site, in accordance with
the HSEQ Manual issued by the Client and the local Authorities regulations.
- Supervise and coordinate the EPC Contractors ’ activities during construction
and commissioning phases, granting that:
work at site is carried out safely and in compliance with local
environmental regulations
sound quality assurance and control practices are established
throughout the duration of site works
contractual requirements and schedule milestones are met in a timely
and cost effective manner
effective communication links and interfaces are functioning at all
times between Contractors, Equipment Package Vendors, FATA and
Client
assets are handed over to Client on the planned date and in a
condition that is fit for purpose and intended use
reports are regularly issued to the Client on the progress of works and
possible deviations, advising on the possible remedies and recovery
actions if necessary.
PMC will assemble a specialist team under the control of a qualified and
experienced Site Manager, providing single point responsibility for all
communication between the Client team, the RTA-AP team, the EPC Package
Contractors and the PMC.
The PMC duties will include:
- Prepare and maintain the Project Management Plan.
- Define and set-up the team staff, aimed at the most efficient one-team
integration with Client and RTA-AP
- Instruct, supervise and coordinate the Vietnamese Engineers and the
Outsourced specialized resources provided by the Client
- Held "Kick off" alignment meetings and regular daily/weekly progress review
and coordination meetings with EPC Contractors .
- Verify and control the scope of works versus the agreed short term
schedules.
- Arrange design reviews, Health Safety & Environmental (HSE) reviews and
similar meetings in accordance with the applicable procedures
- Ensure that the quality of deliverables is achieved to the required standards.
- Drive the Project such that all package delivery dates and milestones are
achieved in accordance with the program and Clients requirements.
- Instigate the risk management process to identify critical factors; introduce
control measures to minimize any risks that may threaten success; ensure
responsibilities for managing the risks are allocated to appropriate persons;
review the risk register on a regular basis.
- Provide early warning of any problem areas that may impact upon or
jeopardize satisfactory progress or successful completion .
- Provide regular , timely reports on works progress and expenditure.
- Keep Client timely informed of any necessary changes to the scope of work
and schedule.
- Maintain and present financial records and progress reports.
Lead Area Engineers will be appointed to coordinate/supervise the M&E
Engineering in each area, assuring the best integration with the RTA-AP
engineering and with the EPC Package engineering.
Area Construction Engineers will be appointed for each major plant Area to
coordinate and control the construction and works of the EPC Package
Contractors .
The Area Engineers and the Area Construction Engineers in cooperation with the
Quantity Surveyors, the Quality Control and the Project Control shall support the
PMC Site Manager preparing the costs and progress reports, the works
estimation at completion, the schedule deviation analysis and remedies, the
Risks management reports and the construction punch lists.
During the Engineering phase the PMC’s team will be available to provide advice
and guidance in constructability reviews to ensure the design can be translated
into safe, practical and economical construction and installation operations.
4.3 PMC Team organization
The following 6 major areas are identified in the Nak Dong Smelter Project :
1- HV SubStation , Rectifier Transformers & Power loop Substations
2- Potrooms & Pot Tending Machines
3- Gas Treatment Centers and Alumina feeding
4- Anode Rodding Shop
5- Casthouse
6- Ancillary facilities (Cathode sealing, Anode Assembly shop, Workshop,
Equip. maintenance, Warehouse, Utilities, Offices )
The Organisation chart in Annex 3 shows the proposed PMC Team structure
which is based on the Plant Areas identified here above. This chart shows
basically the information on the PMC team and shall be completed with the
details of the Client team and the RTA-AP team in order to develop a complete,
integrated PM team organization. The PMC team relationship and proposed lines
of communication with the Client PM, RTA-AP and the EPC Contractors will be
detailed into the Project Management Plan procedures.
The detail definition of the job description and responsibilities of each Engineer in
the team, as for instance the plant areas to be controlled, shall be finalized and
fine-tuned on site in cooperation with the Client when all the information on the
scope of work and on the EPC Packages will be available.
The Expatriate Engineers are identified with names and bold characters in the
chart, while the Vietnamese Engineers are identified with VN. All the expatriates
CVs are also reported in Annex 3.
These expatriates CVs must be considered indicative and preliminary, because
FATA EPC cannot assure that all of them will be still available on the date when
the Agreement comes into effect. FATA EPC reserve to propose alternative
Expatriate Engineers of equivalent experience and professional level whenever it
may be necessary.
It is proposed that the Vietnamese Engineers be hired directly by the Client with
the full assistance of the PMC team concerning the job descriptions, the
examination and approval of the candidates.
It is also proposed that the activities to be assigned to specialized third party
companies like the CM Inspectors, QC and HSE Field Inspectors be outsourced
directly by the Client with the same support from the PMC team as above. Once
assigned to the team, these resources will be fully managed, supervised and
coordinated by the PMC team.

In details, the PMC Team duties shall be:

 assistance to Client on the Procurement Strategy and Work Packages
Breakdown, whenever necessary;
 develop the Project Control Program, Risk Management and Site
Organization Structure for managing the Works, optimizing Client and PMC
 resources, integrating them in one lean and efficient team;
 coordinate and supervise the M&E Process/Detail Engineering to assure a
timely execution and the correct management of interfaces with the
Technology Provider RTA-AP and the EPC Package Contractors , resolving
potential interface issues. Dedicated Interface Managers shall be in charge
for coordinating the solution of issues originated by the Engineering,
Manufacturing and Construction activities of the EPC Contractors.
 provide professional advice to the Client and to the M&E Engineering
regarding the technical solutions to be adopted, particularly on their feasibility
and cost-effectiveness, constructability, operability, maintainability and safety;
 develop, update and maintain a proper Document Control programme;
 Coordinate and assist the Client’s team obtaining the necessary Construction
permits from the local Authorities, liaising with the M&E Engineering and the
EPC Contractors who are the responsible Parties for the detailed design,
construction and environmental Permits;
 assist Client in the Contract Administration, by monitoring Contractors’ and
Vendors’ works progress, payments, claims, change orders and battery limits
issues.
 Set-up a Project HSE System for Construction and Commissioning to grant a
safe work environment for all persons working on the site, in accordance with
the HSEQ Manual issued by the Client and the local Authorities regulations.
 Supervise and coordinate the EPC Contractors ’ activities during construction
and commissioning phases, granting that:
 work at site is carried out safely and in compliance with local
environmental regulations
 sound quality assurance and control practices are established
throughout the duration of site works
 contractual requirements and schedule milestones are met in a timely
and cost effective manner
 effective communication links and interfaces are functioning at all
times between Contractors, Equipment Package Vendors, FATA and
Client
 assets are handed over to Client on the planned date and in a
condition that is fit for purpose and intended use
 reports are regularly issued to the Client on the progress of works and
possible deviations, advising on the possible remedies and recovery
actions if necessary.

PMC will assemble a specialist team under the control of a qualified and
experienced Site Manager, providing single point responsibility for all
communications between the Client team, the RTA-AP team, the EPC Package
Contractors and the PMC.
The PMC duties will include:
 Prepare and maintain the Project Management Plan.
 Define and set-up the team staff, aimed at the most efficient one-team
integration with Client and RTA-AP
  Instruct, supervise and coordinate the Vietnamese Engineers and the
Outsourced specialized resources provided by the Client
 Held "Kick off" alignment meetings and regular daily/weekly progress review
and coordination meetings with EPC Contractors .
 Verify and control the scope of works versus the agreed short term
schedules.
 Arrange design reviews, Health Safety & Environmental (HSE) reviews and
similar meetings in accordance with the applicable procedures
 Ensure that the quality of deliverables is achieved to the required standards.
 Drive the Project such that all package delivery dates and milestones are
achieved in accordance with the program and Clients requirements.
 Instigate the risk management process to identify critical factors; introduce
control measures to minimize any risks that may threaten success; ensure
responsibilities for managing the risks are allocated to appropriate persons;
review the risk register on a regular basis.
 Provide early warning of any problem areas that may impact upon or
jeopardize satisfactory progress or successful completion , propose solution to
remedy or mitigate these problems.
 Provide regular, timely reports on works progress and expenditure.
 Keep Client timely officially informed of any necessary changes to the scope of
work and schedule but asap the news is none and checked.
 Maintain and present financial records and progress reports.

Lead Area Engineers will be appointed to coordinate/supervise the M&E

Engineering in each area, assuring the best integration with the RTA-AP
engineering and with the EPC Package engineering.

Area Construction Engineers will be appointed for each major plant Area to
coordinate and control the construction and works of the EPC Package
Contractor .

The Area Engineers and the Area Construction Engineers in cooperation with the
Quantity Surveyors, the Quality Control and the Project Control shall support the
PMC Site Manager preparing the costs and progress reports, the works
estimation at completion, the schedule deviation analysis and remedies, the
Risks management reports and the construction punch lists.
During the Engineering phase the PMC’s team will be available to provide advice
and guidance in constructability reviews to ensure the design can be translated
into safe, practical and economical construction and installation operations.

4.3 PMC Team organization

The following 6 major areas are identified in the Nak Dong Smelter Project :
1- HV SubStation , Rectifier Transformers & Power loop Substations
2- Potrooms & Pot Tending Machines
3- Gas Treatment Centers and Alumina feeding
4- Anode Rodding Shop
5- Casthouse
6- Ancillary facilities (Cathode sealing, Anode Assembly shop, Workshop,
Equip. maintenance, Warehouse, Utilities, Offices )
The Organisation chart in Annex 3 shows the proposed PMC Team structure
which is based on the Plant Areas identified here above. This chart shows
basically the information on the PMC team and shall be completed with the
details of the Client team and the RTA-AP team in order to develop a complete,
integrated PM team organization. The PMC team relationship and proposed lines
of communication with the Client PM, RTA-AP and the EPC Contractors will be
detailed into the Project Management Plan procedures.
The detail definition of the job description and responsibilities of each Engineer in
the team, as for instance the plant areas to be controlled, shall be finalized and
fine-tuned on site in cooperation with the Client when all the information on the
scope of work and on the EPC Packages will be available.
The Expatriate Engineers are identified with names and bold characters in the
chart, while the Vietnamese Engineers are identified with VN. All the expatriates
CVs are also reported in Annex 3.
These expatriates CVs must be considered indicative and preliminary, because
FATA EPC cannot assure that all of them will be still available on the date when
the Agreement comes into effect. FATA EPC reserve to propose alternative
Expatriate Engineers of equivalent experience and professional level whenever it
may be necessary.
It is proposed that the Vietnamese Engineers be hired directly by the Client with
the full assistance of the PMC team concerning the job descriptions, the
examination and approval of the candidates.
It is also proposed that the activities to be assigned to specialized third party
companies like the CM Inspectors, QC and HSE Field Inspectors be outsourced
directly by the Client with the same support from the PMC team as above. Once
assigned to the team, these resources will be fully managed, supervised and
coordinated by the PMC team.