Commissioning, Transforming Risks into Success Factors

Specialized Commissioning Contractor,

a Key Factor for Capital Project Success


Presented by: Riad Faour, Eng.
CEO Progesys International
TOPIC



Present some of the commissioning best practices and show how
hiring a Specialized Commissioning Contractor when capital
investment decision are made to build new processing capacity,
will result in reducing costs, enhancing overall quality of the
project and a better, faster, transition from construction to safe
and efficient operation



COMMISSIONING BRIEFLY



WHY COMMISSIONING?

Progesys made the choice more than 12 years ago to specialize
in Plant Commissioning

Why?
Noticed that its a major challenge for project owners
We perform in this intense environment
Implemented best practices and methodologies that work
Commissioning requires capacities in both technical and
management know-how
Commissioning managers must be leaders


WHY COMMISSIONING?
Commissioning is a crucial part of every Industrial Project
Any industry
Worldwide
WHY COMMISSIONING?
Requires specialized know-how
WHY COMMISSIONING?
Can be properly performed only by specialized resources fit for
the task
WHY COMMISSIONING?
Involves all stakeholders: Engineering, Procurement,
Contractors, Vendors, Project Owner team, and Operation team
Commissioning
Contractor
Project
Owner Team
Engineering
team
Procurement
Team
Construction
contractors
Vendors
Operation
Team
WHY COMMISSIONING?
Its intense, often caught between construction delays and start-
up milestones
COMMON CONTRACTUAL STRATEGY FOR COMMISSIONING
Often the EPC or EPCM consultant is hired for the commissioning phase
also
Commissioning is a small part of the awarded service contract
Its a later phase so its not the immediate focus of management
EPC contractors are often not specialized in commissioning and focus on
Engineering and Construction being the major parts of contract budgets
Assigned commissioning manager answers to the construction manager
Often assigned late and during the construction phase
Lack of know-how and best practices
Difficulty of EPC contractors to retain specialized commissioning
professionals



What happen when a Specialized Commissioning Contractor is
contracted for Commissioning

1- Focus is put on that critical phase from day one of hiring the specialized contractor since
he is dedicated to that task

2- Dedicated resources are specialized in commissioning and not there because of
availability only

3- Commissioning is the core of the service contract for the Commissioning Contractor and
his only measure of success

4- Commissioning Contractor answers to the Project Owner Team and not to the
Construction team

5- Applies commissioning know-how and best practices

6- Often positively received by all project stakeholders including EPC and construction
contractors






SPECIALIZED COMMISSIONING CONTRACTORS
Master:

Scope of work
A proven methodology
Defined deliverables
Coordination of stakeholders
Leadership from mechanical completion to ramp-up



SPECIALIZED COMMISSIONING CONTRACTORS
Master:

The application of a health and safety program that is adequate
for the sources of risks and energies present during
commissioning phase

The use of specialized electronic tools to manage the flow of
work from Mechanical completion to the ramp-up phase.
Progesys uses a proprietary software (CMS ) to manage
mechanical completion, pre-commissioning, commissioning,
start-up and ramp-up.
ECL / NALCO
Project : ARS1 and ARS2 of Angul Smelter
Angul, Orissa, India
Year of realization: 2010 2011
Project Value: USD 50M$

Services offered by Progesys:
Construction Management services for the plant ARS1 and ARS2
hiring local contractors and implementing best practices for
construction and HSE
Direct supervision of manpower and training of welders and
tradesmen
Installation and operation of Electrical substations for both plants
Heavy lifts for chimneys in difficult plant areas
Engineering during plant construction and engineering for heavy
lifts and final equipment installation
VALE MALAYSIA MINERALS
Project : Vale Malaysia Minreals Project
Lumut, Malaysia
Year of realization: 2012 ongoing
Project Value: USD 1.3 Billion

Services offered by Progesys:
As a commissioning contractor Progesys is responsible for all pre-
commissioning and commissioning activities
Scope all facilities by systems to enable smooth transfer from EPC
to Owner operation team
Definition and implementation of POVT roles and responsibilities
matrix
Overview of construction key milestones and planning of vendors
on- site for pre-commissioning activities
Preparation of an POVT execution Plan for owner team
Direction and Execution of all POVT and commissioning activities
Planning of Plant systems turn-over to owner
CANADIAN ROYALTIES
Project : Nunavik Nickel Mine
Nunavik region, Northern Quebec, Canada
Year of realization: 2012 ongoing
Project Value: USD 900 Million

Services offered by Progesys:
Detailed planning of pre-commissioning and commissioning
activities
Scope all facilities by systems to enable smooth transfer from EPC
to Owner operation team
Definition and implementation of POVT roles and responsibilities
matrix
Overview of construction key milestones and planning of vendors
on- site for pre-commissioning activities.
Preparation of an POVT execution Plan for owner team
Review and prepare all verification forms of Equipment and
Systems test details
Planning of Plant systems turn-over to owner
OSISKO MINING CORPORATION
Project: OSISKO MALARTIC GOLD MINE PROJECT
Malartic, Northern Quebec, Canada
Year of realization: 2011 2012
Project Value: USD 1 Billion

Services offered by Progesys:
Detailed planning of pre-commissioning and commissioning
activities
Scope all facilities by systems to enable transfer from EPC to
Owner operation team
Preparation and implementation of a pre-commissioning and
commissioning execution plan and Planning of Plant systems turn-
over to owner
Overview of construction key milestones and planning of vendors
on- site for pre-commissioning activities.
Perform pre-commissioning and commissioning activities
Handover of systems and equipment to operation team and
assistance during Ramp-up
CONSOLIDATED THOMPSON
Project : Bloom Lake Iron Ore Mine
Fermont, Cte-Nord Region (Quebec) Canada
Year of implementation: 2009 2010
Project value: USD 400 Million

Services offered:
Construction Management services for plant erection
including Construction Supervision, Contract
Administration, Deficiencies Management and reporting to
owner
Management of the pre-commissioning & commissioning
phases of project
Plan, manage & sign-off equipment commissioning by
selected vendors
Plant systems turn-over to client
QATALUM
Project : Qatalum Aluminum Smelter
Qatar
Year of implementation: 2008 2010
Project value: USD 5.6 Billion
(Contractor project value USD 1.5 Billion)

Services offered:
Planning of pre-commissioning services
Pre-commissioning management and execution
Mechanical completion for the overall potroom and
general services contract
Commissioning management
ECL ECL SERVICES FRANCE
Project : Emirates Aluminum Smelter - EMAL
Anode Roding & Hot Bath Treatment Plant
Taweelah, Abu-Dhabi, United Arab Emirates
Year of implementation: 2007 - 2010
Project value: USD 5.7 Billion
(Contractor project value USD 100 Million)

Services offered:
Pre-commissioning supervision and assistance
Auditing of existing pre-commissioning &
commissioning procedures
Technical assistance on site
Rio Tinto Alcan
Expansion of the Rio Tinto Alcan Alma
smelter Alma 2 project

Alma (Quebec), Canada

Year of implementation: 2008
Project value: 1B$

Services offered within owner project team:

Project management
Risk Management
Overall management of project controls
Estimate
Planning
Rio Tinto Alcan
Spent Pot Lining Treatment Pilot Plan

Year of implementation: 2006 2008
Project value: 210 M$

Services offered:

Management and execution of pre-
commissioning and commissioning work for the
plant
Planning and supervision of vendors work on
site
Site logistics and construction assistance
System turn-over to client and start-up
assistance
Management and implementation of all Health
and Safety procedures
Windalco (now Rusal)
Bauxite mine and Alumina refinery

Nain, Jamaica

Year of implementation: 2003-2004
Project value: 25M$

Services offered by Progesys as consultants through
EPCM team:

Engineering services to identify solutions and low-
cost alternatives
Project estimating
Construction Management and supervision of
contractors for construction and commissioning
execution
Technical assistance to client team
Training for maintenance and operation teams
Hydro Quebec
Rehabilitation of the Beauharnois
Hydroelectric Dam

Beauharnois (Quebec), Canada

Year of implementation: 2003
Project value: 20M$

Services offered by Progesys within general
contractor team:
Construction management
Planning and supervision of project progress
Technical assistance to site and coordination with
engineering and fabricators
Pre-commissioning management and supervision
Rio Tinto Alcan
Coke Sulfur Dioxide Treatment

Arvida (Quebec), Canada

Year of implementation: 2008
Project value: 30M$

Services offered by Progesys within general
contractor team:
Construction management
Planning and execution of precommissioning and
commissioning acitvities
Technical assistance to site and coordination with
engineering and vendors
Plant systems turn-over to client
VALERO ENERGY (Ultramar)
Project : Ultra-low sulphur diesel
St-Romuald refinery (Quebec) Canada
Year of implementation: 2004 - 2006
Project value: USD 400 Million

Services offered within owner team:
Technical management of engineering teams in Calgary and Quebec
City
Project controls management and supervision
Procurement management including contractual strategy definition
Purchasing, expediting, inspection planning and shop auditing
Overall plannng of project activities and implementation
Risk management identification, assessment and mitigation of
risks
Review and analysis of constructability study
Supervision and management of EPCM contractor work
Management and execution of pre-commissioning and
commissioning work
Site logistics and construction assistance
CONCLUSION

Specialized commissioning contractors like Progesys are
necessary for project success. They master a crucial phase of the
project cycle and dedicate for it specialized human and material
resources.

Owners pre-qualify and hire the best Engineering firms for EP
contracts, the best Construction Contractors for the Construction
phase and they benefit if they do the same when it comes to the
crucial commissioning phase.






THANK YOU