[Ocean Chemical EPC] Early planning research on EPC general contracting projects

2. Pre-project working relationship planning The main departments involved in the pre-project work are the business department, design management department, various design departments and the general contracting business department. The business department is the department responsible for the preliminary work and is fully responsible for the collection and tracking of project information, and is responsible for organizing the analysis and evaluation of the project. At the same time, as the leading department, it is directly responsible to the company leaders, and is responsible for coordinating the relationship between the general contracting business department, design management department and various production departments internally; externally, it is responsible for communicating with the owner (tendering unit) or intermediary, external cooperation unit, etc. during the negotiation and quotation period. * * Liaise and coordinate with superior leadership departments, and be responsible for various business activities before the establishment of the project. As the core technical departments, the design management department and each design department need to cooperate with the business department to propose reliable and reasonable technical solutions, and provide drawings, BOQ and other technical documents that can meet the bidding documents or owner's requirements, as the technical part of the bidding documents and the basis for the general contracting business department's quotation. As a key department in the preliminary work stage, the general contracting business department must fully cooperate with the operating business department in the project bidding and quotation work, and provide corresponding implementation documents and quotation documents according to the bidding documents or the owner's requirements to ensure the smooth implementation of the preliminary bidding work.

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3. On-site survey and fund collection planning During the on-site survey stage, collect project information, focusing on collecting the following (including but not limited to) information: 1. International projects The information that needs to be collected for international projects mainly includes:: Labor policy of the project location, location * * and the owner’s specific regulations and requirements on labor employment; the visa period and visa fees for Chinese project managers and project construction workers to work in the project location; the supply and price of base materials (steel bars, cement, sand, gravel, bricks) in the project location (listed by model and type); the working ability, quality and quality of the labor personnel in the project location * habits, approximate labor efficiency, salary (by general workers, technicians, managers); the security situation in the project area, the probability of rallies, parades, the possibility of terrorist incidents, the probability of drugs; the transportation capacity, mode and transportation price of the project area (preliminary site selection and potential addresses can be provided based on the design); the number and capacity of the port terminals closest to the project location, the number of deep-water berths, the tonnage of berthed ships, etc.; the price, supply capacity, and supply method of vegetables, meat, non-staple food, and drinking water in the project location ; The price and status of water for temporary construction; the status of the power supply system at the project site, including voltage level, frequency (cycle), capacity, and insulation protection level; the price and status of electricity for temporary construction; the network communication (wired, wireless) situation at the project location; the supply method and price of diesel and gasoline in the project area; the variety, specification, age, and rental price level of the construction machinery at the project location; the mechanical processing capacity (maximum size and weight of the workpiece), heat treatment capacity, and type near the project location; the project location * * (Regional) tax policies (business tax, personal income tax, etc.); the supply of turnover materials (scaffolding, formwork) and other common industrial materials (iron wire, insulation materials, paint, common tools and tools) near the project location; the supply of common diseases and drugs in the project location, and nearby medical and health conditions; the national culture and religious beliefs of the project location; the natural conditions of the project location (climate, wind direction, altitude, hurricane, earthquake intensity). 2. Domestic projects The information that needs to be collected for domestic projects mainly includes:: The project site topography, geology, hydrology, climate, work scope, content, materials, etc. Food and accommodation conditions that the contractor may need; on-site traffic and road transportation conditions, temporary water and electricity access points, communication facilities and other conditions. After collecting the above information, organize it as a reference and basis for project quotation, tender document preparation and project implementation planning.

4. Preparation and planning of bidding documents Generally, bidding documents are divided into technical parts and commercial parts. 1. Project execution summary of the technical part of the bid document; project management organization; service scope; construction equipment list; project management planning procedures; construction management planning procedures; quality assurance planning procedures; procurement and procedures; HSE plan; completion acceptance plan procedures; project progress plan; material procurement and delivery plan; construction labor and facilities plan; procurement equipment list, handover plan; spare parts list; preliminary commissioning plan (in collaboration with the design management department); performance assessment plan (in collaboration with the design management department). It should be noted that the technical part of the bid document can be increased or decreased according to the requirements of the owner's bidding documents. 2. The bidder’s performance in the commercial part of the bid document (cooperating with the business department); bidding deviation (cooperating with the business department); relevant qualification certificates (cooperating with the business department); the comprehensive unit price part of the quotation in the bill of quantities (the quantity part is the responsibility of the design department); the calculation of the general contracting management fee. 3. Competitive Negotiation Projects For projects undergoing competitive negotiation, relevant information will be provided as required by the owner.: Technical documents related to project construction; comprehensive unit price of bill of quantities ； Other relevant documents.

5. Project goal management planning Project goal management planning is divided into three parts, namely, project boundary and work scope, project technical goals (technical summary), and project management goals. 1. Project general contracting boundary area 1) General contracting boundary area. Determine based on the owner’s bidding documents and related design documents, such as: Determine the projects within the factory area based on preliminary design but do not include the following contents: The owner is responsible for the procurement of imported equipment and imported materials; the entire factory site leveling, retaining walls, and landslide control projects. 2) Scope of work. General contractor scope: Engineering survey; engineering design; procurement of equipment and materials; construction of building installation projects; early entry of production personnel and personnel training; single equipment test run and no-load linkage test run, as well as load linkage test run, material commissioning test run, and handover to the owner one year after the start of production. Owner's scope: Legality of project land use; project monitoring and project quality supervision; environmental protection, soil and water conservation, and safety evaluation; application for certificates for project start, invitation to bid, delivery, construction license, etc.; ensuring external coordination of normal project construction; special equipment and pressure vessel use licenses and fire protection and lightning protection certificates; conducting performance assessments and organizing completion acceptance. The above contents are determined and adjusted according to the owner's bidding documents or boundary table. 2. Project technical objectives (technical summary) Project technical objectives (technical summary) are provided by the design department based on feasibility study or preliminary design, and mainly include the following indicators: The designed project capacity, operation rate, dissolution temperature, recovery rate, consumption indicators (ore consumption, alkali consumption, electricity consumption, water consumption), etc. 3. Project management objectives: Based on the requirements of the owner's bidding documents and the company's own system documents, determine the project management progress objectives, quality objectives, HSE (or environment, health and occupational safety) objectives, customer satisfaction, etc.

6. Project management organization setup The planning organization setup should determine the management level, management span, and management departments according to the nature, scale, and characteristics of the project to improve management efficiency and reduce management costs. 1. Management level setting The management level of the project department is generally set at 2 to 4 levels. The 2 management levels are set up as follows: Project management (project manager, deputy manager) - project execution layer (management engineers, general management personnel). The 3 management levels are set up as follows:: Project high-level management (project manager, deputy manager) - project middle-level management (department manager, deputy manager) - project execution level (management engineers, general managers). The 4 management levels are set up as follows:: High-level project management (project manager, deputy manager) - project middle-level management (department manager, deputy manager) - project grassroots management (team leader) - project execution level (management engineers, general managers). Large and medium-sized industrial projects and large-scale civil construction projects are large in scale, have complex construction techniques, and have many management procedures, so they should be set up with 3 to 4 management levels during project implementation. However, small and medium-sized civil construction projects and small industrial projects are relatively small in scale, have simple construction techniques, and simple management processes, so it is appropriate to set up 2 to 3 management levels. 2. Management span Set the management span according to the project characteristics, project scale, and the ability of the project management personnel. In general, it is appropriate to design the management span according to 3 to 5. 3. Management department settings Under normal circumstances, project management department settings: Each project can be merged into departments based on factors such as the nature, scale, characteristics of the project, and the professional capabilities of the staff. For example, the design department and the comprehensive department can be merged into the design comprehensive department, and the construction, procurement, and HSE management departments can be merged into the large engineering department. 4. Allocation of main project management personnel The allocation of main management personnel (project department managers, heads of key departments) shall be carried out according to the nature, characteristics and scale of the project. When deploying, arrangements are made based on the personnel's resume, experience, expertise, work ability, work initiative and other characteristics, combined with the corresponding job requirements, and strive to achieve "professional counterparts, equal abilities and responsibilities".

7. Project management planning 1. Project progress management planning 1) Prepare the overall project progress plan (including design, procurement, construction, and commissioning) and submit it to the owner (supervision) for approval (results): Project level planning network diagram). 2) According to the requirements of the overall project schedule, prepare and design drawing plans for each major to meet on-site needs. 3) According to the requirements of the overall project schedule, prepare an equipment procurement plan and submit it to the owner for approval before implementation. The procurement plan meets the requirements for on-site equipment foundation construction and the progress requirements for equipment installation. 4) Review the construction network plan provided by the construction subcontractor, focusing on critical control points and milestones, and propose corresponding control measures for key control points and milestones. 5) In the later stage, the commissioning plan and delivery plan will be prepared according to the project progress. 2. Project quality management planning is based on the PDCA cycle and quality management is conducted according to pre-event control, in-event control and post-event control. 1) Prior control. Require subcontractors to establish an on-site quality management system and check its operation; check the qualifications of subcontractors' on-site managers and main operating personnel; organize and review the construction organization design and various special plans; implement a construction subcontractor start-up review system; purchase main materials for the project must be confirmed by the general contractor, supervisor, and owner before purchasing; verify the laboratory qualifications of materials and test blocks submitted for inspection; delineate unit projects, division projects, sub-projects, inspection batches, and determine quality control points. 2) Control everything. The quality acceptance system of subcontractor self-inspection, general contractor inspection, supervision re-inspection, and quality supervision station approval is implemented for inspection batches, sub-items, divisions, and unit projects. If the process is not qualified, it is not allowed to enter the next process; the raw materials, semi-finished products, and components entering the site are subject to a re-inspection and review system; the construction inspection equipment and construction auxiliary materials entering the site are inspected. Important equipment such as measurement, testing, and experiments for construction shall be inspected and corresponding records shall be kept; on-site disclosure and joint review of construction drawings shall be carried out; each construction process shall be inspected, focusing on hidden parts and quality control points; projects that fail the quality inspection shall not be measured, and shall not be approved during the monthly project volume review and approval, and the project funds shall not be paid. 3) Post-event control. Check the quality of finished products in a timely manner, and dispose of unqualified products in accordance with relevant regulations; urge subcontractors to protect finished products; hold weekly meetings to report the quality situation of the previous week, and make corresponding records; supervise subcontractors to collect, organize, and archive project data; do a good job in project acceptance, project data acceptance, and problem elimination; participate in project completion acceptance; keep quality system records and project quality process records, and all quality records are entered into the project management platform in a timely manner. During the specific implementation of the project, it is necessary to prepare quality plans and various on-site quality management regulations to ensure the further realization of quality management.

3. Project cost control 1) Strengthen the control of construction drawing budgets. Prepare construction drawing budgets for each specialty based on design drawings and confirm them with the owner as the basis for payment and settlement of project progress payments. 2) Strengthen the management of design changes, analyze the reasons for changes, review design change fees, basic processing fees, on-site visa fees, etc. in accordance with relevant regulations, and do a good job in claiming expenses. 3) In particular, we must do a good job in payment control and change control of the lump sum price part of the general contract and subcontracting contract. 4) According to the capital plan, strengthen the daily expenses of the project department and control each expenditure within the planned scope. 5) The cost-related data of this project should be entered into the management platform in a timely manner, and the management platform should be used to complete various cost control tasks. 4. Project HSE (or safety, occupational health and environment) management planning The project HSE management content must be prepared according to the requirements of the owner’s bidding documents and combined with the relevant content of the company’s integrated certification system. The content (including but not limited to) is as follows: 1) Establish environmental and occupational health and safety management processes at the construction site and clarify respective safety management responsibilities. 2) Prepare and issue various management regulations for on-site safety, occupational health and environmental management, and supervise and inspect subcontractors to comply with the regulations. 3) Supervise each subcontractor to prepare practical construction organization design and various special plans based on on-site conditions, and submit them to the general contractor and supervisor for approval before implementation. 4) Establish a regular safety meeting system. The regular safety meeting will be held once a week to check the safety production situation, understand the safety production trends, and study and solve problems related to safety production. 5) Establish a full-time safety officer to conduct daily inspections of the construction site, and conduct special inspections weekly and monthly. 6) Through contractual, economic and technical means, strictly supervise the operating behavior of each subcontractor at the construction site, establish an on-site reward and punishment system, and resolutely stop phenomena that threaten safety, quality, and the environment. 7) In accordance with the company's integrated management requirements, do a good job in daily management of the construction site and project department. The specific content of project site safety, occupational health and environmental management can be supplemented and improved through the safety plan prepared during the experimental stage and relevant regulations on site safety management. 5. Project commissioning management prepares commissioning management documents based on the owner’s bidding documents, general contracting area and work content: Preparation of single unit test run plan; implementation of full-scale vehicle; preparation of no-load linkage test run plan (if the general contracting area includes no-load linkage test run); implementation of no-load linkage test run (if the general contracting area includes no-load positive test run); cooperate with the owner to prepare the hot load test run plan; cooperate with the owner to conduct hot load test run; cooperate with the owner to conduct performance assessment. 6. Project acceptance and handover management: Prepare project acceptance and handover management documents based on the acceptance and handover requirements in the owner's bidding documents, the company's relevant documents and management systems for project acceptance and handover. The completion acceptance and handover management of overseas projects need to be designed in accordance with the relevant laws and regulations of the country where the project is located, the requirements of the owner's bidding documents (especially the requirements of the selected standards) and the characteristics of the project itself, and are ultimately written into the contract text as part of the special clauses.

8. Overseas Project Implementation Planning In addition to the above, overseas projects are also affected by the natural environment, host country's laws and regulations, logistics, infrastructure and other conditions, and there are large uncertainties. These uncertain factors have a direct impact on the project quotation and implementation. Therefore, during the project implementation planning stage, project implementation planning should be carried out according to the following content based on the information collected during the on-site survey: 1. Workforce planning 1) Source selection. The sources of labor required during the construction period of overseas projects are divided into three categories:: The first type comes from the country where the project is located; the second type comes from within China; and the third type comes from the country where the project is located and third parties outside China. The selection of labor sources is mainly restricted by the relevant laws and regulations, national conditions, and national quality of the country where the project is located.: (1) For situations where the local labor force is insufficient, foreign labor policies are relatively loose, and local labor costs are high * * (such as Russia), Chinese workers are preferred, and construction subcontractors will bring workers from home to the project location to work; during peak construction periods, workers can be brought from a nearby third party * * Bring in labor to supplement. (2) For those where the local labor force is abundant but of low quality, and the foreign labor policy is relatively strict * * (such as Indonesia and Guinea), local workers are preferred for general types of work. For types of work with special requirements (such as furnace builders), experienced workers are introduced from domestic construction units to work on site. (3) For those with multiple labor source options, labor force options need to be compared and selected, taking into account cost, operational quality, and management difficulty. Under normal circumstances, domestic workers will be given priority for civil engineering technical jobs (rebar workers, carpenters, furnace builders, plumbers, welders, etc.) and installation jobs. Other handymen will be recruited locally in the country where the project is located, and experienced Chinese leaders will be entrusted with management and training (if qualified). 2. The material source channels required during the construction period of material procurement planning are divided into three categories: The first type is purchased in the country where the project is located; the second type is purchased from within China and transported by sea + land to the construction site; the third type is purchased from the country where the project is located or a third country outside China and transported to the project site. The choice of material sources is mainly affected by the following factors: 1) Selection of design standards. For projects where the owner clearly uses non-Chinese standards in the bidding documents or other documents, if the country where the project is located has a relatively mature raw material market, try to consider purchasing the base materials (cement, sand and gravel, concrete, steel bars, etc.) locally to avoid the risk of the project being unable to be delivered due to material selection that does not meet the design standards (such as the Rusal Tashan project). 2) The degree of industrial and trade development of the country where the project is located. If the country where the project is located has developed industry and trade, and the degree of marketization of industrial products and raw materials is high, try to consider procuring the base materials locally; if the country where the project is located has a low level of basic industry, and the degree of marketization of industrial products and raw materials is low, you should consider purchasing from a third party, or directly purchasing from China and transporting it to the site. 3) Relevant laws, regulations and policies of the country where the project is located. There are two main types of laws and regulations related to material sources.: The first category includes import and tariff laws and regulations of the country where the project is located; the second category includes environmental protection and resource laws and regulations. During project planning, material supply plans need to be formulated in accordance with corresponding regulations, such as punitive tariffs on raw material imports. * * , local procurement should be considered as much as possible.