Final Report MOU contract

AFCONS INFRASTRUCTURE LTD. CIVIL WORKS FOR TANK FARM AT JAMNAGAR RELIANCE INDUSTIRES LIMITED

PROJECT COMPLETION REPORT JOB NO 2244

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report

INDEX

Sr. No

Description

Page No

1

Introduction of Project

4-6

2

Contract Details

7-18

3

Administration of Contracts

19-33

4

Certificates Received from clients

5

Technical Details

34-41 42

5.1 Details of Work orders 5.2 Scope of Work 5.3 Details of Different Structures 5.4 Process of work executing. 5.5 Method of Construction. 5.6 Time Cycle of Major Activities. 5.7 Quality Control. 5.8 Concrete Mix Design 5.9 Handing Over to Clint 6

Final Reconciliation statement

7

Commercial Details 7.1 List of Major Subcontractors 7.2 Subcontractors Unite Rate

Page 2 of 50


Sr. No

Description

Page No

7.3 Hire charges of Equipment 7.4 Unite Rate of Major Construction Material(FIM and NON FIM) 7.5 Monthly Cost Statement 7.6 Accounts Major dispute 8

Other Data 8.1 List of Technical Key Person 8.2 List of Equipment 8.3 Manpower Deployment Schedule 8.4 Training Program for Different Levels

9

Safety Policy and Statistics

10

MERITS / DEMERITS of Cost Plus Work

11

Project Photographs

Page 3 of 50


Introduction of Project As ever every y body body kno know that that Reli Relian ance ce is An Indi India’ a’ss fast fastes estt gro growing wing comp compan any. y. The The Displacement of Reliance towards world’s largest refinery. Reliance is started by developing second second unite of refinery. This project project is the largest largest industrial industrial project implemented implemented by any Indian Indian Corporate. The capacity itself tell every thing i.e. 1.2 BBL/Day. The New refinery will process 24API crude and it will have nelson capacity of 900,000tones/Year. Around the clock 75000 work force, millions of engineer and thousands tones of material and numbers of heavy equipment is engaged for finding out desire dream of Shree Dhrubhai Ambani to make Reliance world’s largest refinery. This Project pulls out name of Surastrash on global Map. Sikka location is 26Km apart from from Jamnag Jamnagar ar city to Jamnag Jamnagar ar Dawrak Dawrakaa Highwa Highway. y. The buildi building ng of new refiner refinery y consis consists ts of installation of 1.5m cubic meter of concrete, 138000tonnes of structural steel and more than 4400 pieces of major equipment and 4 million m of piping work. The refinery and petrochemical comp complex lex comp compri rise sess crud crudee unit unit,, Dies Diesel el Hydr Hydrot otre reto tor, r, VGO VGO hydr hydrot otrea reato tor, r, sulf sulfur ur,, hydr hydrog ogen en,, polyp polyprop ropyle ylene ne unit, unit, naphth naphthaa hydro hydro treatin treating g unit, unit, desali desalinat nation ion unit, unit, captiv captivee power power plant, plant, and effluent treatment plant, paraxylene extraction trains The highlights are as below: •

Largest Grass root Refinery

•

World’s largest FCCU- 8.5 MMTPA

•

World’s largest polypropylene in one site- 750000 TPA

•

India’s largest sulfur extraction unit -1350TPD

•

Large size captive power plant plant 360 MW capacity

Page 4 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report India’s largest petroleum terminal, oil movement and storage area • The work area cover under MOU I contract is Marin Tank form brief details of work is as Civil

1.

All ty types of of Co Concreting wo work (Pre-c e-cast and and in-si -situ)

2.

All Types of Mari arine Works- Onshore and Off-s f-shore

3.

Tank Tank Pads Pads.. Pipe Pipe Rack Racks, s, Pipe Pipe way way Slee Sleepe per, r, Foun Founda dati tion ons, s, Dyke Dyke wall wall Etc. Etc.

4.

Building of All Types- Administration, Substation, Control, PIB, Work shop- Steel

and Concreting Etc. 5.

Culverts (Under Ground, pipe way Storm water, Electrical Ducts) and Drain.

6.

Boundary wall- RCC and Masonry Type.

7.

Fire Fire Wat Water er Res Reser erv voirs oirs,, Fil Filtr trat atio ions ns Pack Packag ages es,, Tre Treat atme men nt Plan Plants ts Etc. Etc.

Mechanical and Piping

1. Pipelines, Pipelines, Structur Structural al Fabrication Fabrication works works including including sand Blastin Blasting, g, Painting. Painting. 2. Unde Underr grou ground nd pip pipin ing g 3. Abov Abovee Grou Ground nd Pip Pipin ing g 4. Fabrica Fabricatio tion n and Erec Erectio tion n of Pipe Pipe Bridg Bridge. e. 5. Fabrica Fabricatio tion n and Erecti Erection on of pipe, pipe, CPS supp support ortss Electrical 6.

Cathodic Protection etc.

7. MTF area Constr Construct uction ion Powe Powerr Networ Network. k. These above activity spread over following area •

MTF area (Marine Tank Farm)

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report MTF to LFP area (Salt Gate) • •

•

MTF to RTF area (Haul Road) New Product Tank Area.

•

JERP.

•

RTF area ( Refinery Tank Farm)

•

Filtration and sea water reservoir

•

Pig launcher area

•

Cryogenic area

Details of Project 1.

Location:

REALINCE

Port

Te Terminal,

To Town:

Si Sikka,

Taluka: Lalpur, Dist: Jamnagar State: Gujarat 2.

Consultants:

Bechtel France S.A.S

3.

Project Management:

Reliance Infrastructure Limited

4.

Contractor:

M/S AFCONS INFRASTRUCTURE LTD

5.

Date of award:

20th Feb 2006

6.

Date of completion

7.

Value of work:

8.

Defect Liability Period:

9.

Number of Work order Executed:

18 month from the date of taking over

Page 6 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report 10. Date of Work Started: 11. Work Compaction Duration:

Month

12. Total Concrete Quantity Executed: 13. Total Structural Fabrication Done: 14. Total Piping Quantity Executed In IM:

I D:

141144

15. No. of Tank foundation completed : 16. Length of Dyke Wall Concerting Done: 17. No of Sub-station Building Completed:

Contract Details As above mention MOU contract is signed in between Reliance Infrastructure Limited and AFCONS 2006. This This contra contract ct is relate related d with with AFCONS Infrastr Infrastructu ucture re Ltd. on date of 20 th Feb 2006. execut executing ing of 2nd face Relian Reliance ce Jamnag Jamnagar ar Refine Refinery ry projec project. t. Comple Completio tion n of this this project project make make Jamnagar Refinery worlds largest refinery. Contract contains following guide lines.

developer. RIFL is in the processes of developing a Special Economic Zone (SEZ) as a developer. The responsibility responsibility also includes includes providing developing developing land, storm water drains, drains, roads, roads, water facility and other infrastructure. Reliance Industries Limited (RIL) proposed to be one of the codevelopers providing certain infrastructure facilities for SEZ. Reliance Petroleum Ltd. (RPL) proposes to set up a crude oil refinery and polypropylene as a unit in SEZ. RPL and RIL also requir required ed the servic services es of constr construct uction ion contra contracto ctors rs for settin setting g up the infras infrastru tructu cture re facility facility and construction of the unit respective. RIFL has agreed to enter into construction agreements on behalf of RIL and RPL and AFCONS Infrastr Infrastructu ucture re Limited Limited and Cost-P Cost-Plus lus Agreem Agreement ent have have been been signed signed in betwee between n AFCONS

Page 7 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Reliance Infrastructure Limited . Following are some are major points attended in contract for execution of Jamnagar Project. •

Work instruction, billing and Payment

•

Grant and tentative Valuation of Project

•

Obligation of Reliance

•

Obligation of AFCONS

•

MCS

•

Construction, Material and Staging material (If any)

•

Defect Liability

•

Wastage and losses

•

Compensation

 Work Instruction, Billing and payment:

RIFL can place work order to AFCONS for executing work same way RPL and RIL may place different work orders to AFCONS for different works respective reference to their work. Client Client billing billing has to be submit submit against every different work orders as issued by different different name of company for different works. Also it has been cleared that the payment obligation with respect to the bills rise on PIL and RPL shall not be part of RIFL and his rights in this request shall be only against RPL and PIL.  Grant and Tentative Valuation of Project:

Reliance and AFCONS Infrastructure Limited signed a “COST PLUS Basis” Contract on Memorandum of Understanding on dated 20 th February 2006. This Contract says AFCONS will get compensation amount on cost verified by Reliance. The terms for describing cost details are given as below.

Page 8 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report SR. Comp Compan any y Tent Tentat ativ ivee Valu Valuee of Final Value of Remark No.

Work at Starting of Job

1

RPL

20

2

RIFL

20

3

RIL

10

Work at End of Job

4 5 6

At starting of project Reliance has award tentative job of 50Cr. Total value of executed work is ………… Cr. As based on primary data, discussion and indicative drawing AFCONS will make method plane for executing of work, manpower, equipment, material subcontractor plan.  Obligation of Reliance:

AS mention in contract document Reliance will be responsible for following things during execution of project. •

Reliance will supply basic engineering drawing and technical specification required for the executing project. It is also cleared that initial basic engineering drawing and technical specificatio specification n may not be complete for the entire project and shall be revised in feature for execution of project.

•

Also given unhindered and unencumbered right of access to and possession of all parts of the site site under under Relian Reliance’ ce’ss contro control; l; subjec subjectt to the contra contracto ctorr Co-ope Co-operati rating ng with with other other contractors working in and around the site.

 Obligation of Reliance:

AFCONS AFCONS has to create create tempor temporary ary facilit facility y only only after after gettin getting g approv approval al from from Relian Reliance. ce. Reliance will pay for creating all temporary facilities and AFCOSN can use it with free of cost up to end of project. Carry out and complete the work in accordance with contract. AFCONS has to

Page 9 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report work according to all applicable laws including labour laws authorization and recognized good industry practice and applicable standards. Execution has to ensure the full efficient, economic and safety precaution. Also AFCONS has to submit monthly statement of the work executed/ progress report to reference to Reliance in mutually agreed format. Reliance will pay cost to AFCONS on depending and duel verified Monthl Monthly y Cost Cost Statem Statement ent.. AFCOSN AFCOSN has to assist assist the Relian Reliance ce to co-ord co-ordina inate te the design design and construction activities for the project as required. AFCONS has to submit submit monthl monthly y statem statement ent of the work work execut executed/ ed/pro progre gress ss report report for  AFCONS reference to Reliance in the mutually agreed format.  Reliance will verify the Monthly cost statement and Payment will be made on basics of

same.  RIL, RPL and RIFL will be issue work order to AFCOSN for specific work and they pay

cost against verify cost statement respectively.  Monthly Cost Statement:

As per contract document AFCONS has to submit monthly cost statement for every month in there there mutual mutually ly agreed agreed format format.. This This format format is based based on follow following ing main details details.. This This cost cost statement includes all cost of manpower, non FIM material, Subcontractor Cost, Running cost and Taxes. This cost statement has to submit starting of month by composing all data. The Reliance representative will check the statement and issue payment against it. A. Staf Stafff Salar Salarie iess B. Comm Common on Site Site Expe Expens nses es C. Plan Plantt and and Equi Equipm pmen entt D. Tools Tools and Tackles Tackles and Staging Staging material material if any. any. E. Dire Direct ct labo labour ur..

Page 10 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report F. Mate Materi rial al (NO (NON N FIM) FIM).. G. Mobilizatio Mobilization n and Demobilizati Demobilization on charges. charges. H. Supply Supply of Material and Sub-contract Sub-contractor or work to be carried out through specializ specialized ed agencies. agencies. I. Engi Engine neer erin ing g and and Des Desig ign n fee fees. s. Details of all points are given as flows.

A. A. Staf Stafff Salar Salarie iess AFCONS has to promptly deploy and increase experienced staff, also demobilization from site site with with discus discussio sion n and agreed agreed by Relian Reliance ce Constr Construct uction ion Manage Manager. r. AFCON AFCONS S has to certify certify monthl monthly y deploy deployed ed manpow manpower er on site site from from respec respectiv tivee Constr Construct uction ion Manage Managerr and Chief-o Chief-of f Construction. Depending on this statement billing process has to be carried out under this article. Reliance shall pay AFCONS all inclusive expenses towards staff member deployed at site on bases of actual payroll cost of the AFCONS as certified by the H R department of AFCONS. For auditing purpose AFCONS has to provide certified CTC statement of deployed person on site. This CTC statement shall be provided on a yearly basis comprising period from April to March. Payment for actual salary (net payable amount) on a monthly basis shall be made at site and differential amount (PF, Gratuity and other benefits) shall be paid to HO account on monthly basis. Factor shall include in Payroll cost as •

Salary and wages inclusive of perks/ facility as per company policy of contractor.

•

Dearness Allowance.

•

Contractor’ Contractor’ss contributi contribution on to PF, Gratuity, Gratuity, superannua superannuation tion including including all administrat administrative ive charges payable thereon.

•

All field and site Allowance

•

All Performance and Quality Incentives

Page 11 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Medical reimbursements. • •

Leave Travel allowance/ Leave encashment

•

Salary during leave period. All above said cost shall be paid as per company general policy of AFCONS. The cost

shall be reimbursing of period that person report to Jamnagar site and up to demobilization from Jamnagar site upon complication of his assignment. Including to above cost Reliance will also provide furnished accommodation at site and travel /transport expense for initial reporting at site as per company policy will be paid. Conveyance at site and overtime charges excluding management staff (C1 to C4, M1 to M4, ER1 to ER4, and E1 to E4) will be paid with reference to this article. It was agreed that charges for the visit of sponsor/ Management representative shall not be reim reimbu burs rsed ed by Reli Relian ance ce as cost cost excep exceptt in case case of Mr. Mr. M. Jayr Jayram am whos whosee charg charges es shal shalll be reimbursed for his deployment at site for initial site setup activities.

B. Common Site Expenses AFCONS has to submit monthly expense for common site operation in agreed Monthly Cost Statement format. This include cost of Electrical, water, Mess expense at site, printing and stationery, books and periodicals, Local conveyance, rate and taxes, car hire charges, Telephone, mobile phone charges, Travel expenses, courier expenses, codes and standards for engineering and constr construct uction ion,, rent rent includ including ing broker brokerage age charge charges, s, settin setting g up repairs repairs and mainte maintenan nance ce of office office equipment, setting up repairs and maintenance of temporary facilities and accommodation, Safety approved material, hotel and guest house expense, Statutory charges, Insurance charges, Furnished residential accommodation including water and electricity and staff welfare expenses. This cost has to reference of company police. With Monthly Cost Statement AFCONS has to submit 90days budget estimated. Reliance may arrange direct payment to third party as applicable in behave of AFCONS. The above cost will exclude security Deposit paid by the AFCONS in respect of service and facilities.

C. Plant Plant and Equip Equipme ment nt

Page 12 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Initial Initially ly AFCONS AFCONS has to mobili mobilize ze the minimu minimum m equipm equipment ent as per mutual mutual agreem agreement ent between AFCONS and Reliance. Plant and equipment mobilization on site should be in sound and Sr. No.

Equipment

R & M Ceiling Per Annum

1

Equipment other than heavy Marine equipments

5.25% Per Annum

2

Heavy Marine equipments as per mentioned in list

6% Per Annum

working conduction. AFCONS has to inform within 2days about mobilization of any plant or equipment. For De-mobilization of any equipment proper approval has to be taken form Reliance Cons Constr truc ucti tion on// Area Area Mana Manage ger. r. AFCO AFCONS NS has has to main maintai tain n reco record rdss of plan plantt and and equi equipm pmen entt deployment area wise and expenses on operation and maintains, also assembling period at time of mobilization and demobilization, break down period. For every month AFCONS has to certify the plant and equipment list from respective Construction/ Area Manager with the details of periods during which plant and equipment are not available for use. Standard assembling and disassembling period is mention as below other than time required for assembling and de-assembling will not consider for billing purpose. Every month AFCONS has to submit utilization report also for various equipment and area also. The operation and repairs/ Maintains cost of all contractors owned and Reliance owned plant and equipment will from part of AFCONS cost. Cost of repairs/Maintenance (excluding Petrol, diesel, lubricants) of plant and equipment shall be reimbursed at actual subject to a ceiling at the percentage rate of original purchase value in respect of equipments owned by the AFCONS on a global basis for all the equipments and not for each equipment separately.

Ceiling Percentage Rate: The cost of repair/ Maintenance of plant and equipment owned by Reliance shall be reimbursed at actual.

Page 13 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Reliance shall pay to contractor on monthly basis, the fixed charges at the rate 22% per annum prorate bases on original purchase value of plant and equipment owned by AFCONS other

than heavy marine equipment, Heavy marine equipment will charge 30% per annum on prorate basis on original purchase value. AFCONS can’t hire any P&M from without Reliance written permission.

D. Tools Tools and Tackles Tackles and Stagin Staging g Materials Materials Reliance shall procure and supply to AFCONS all necessary tools, tackles and staging material as free issue. AFCONS shall provide all necessary services related to determining the requirement, specification and timely procurement of same.

E. E. Dire Direct ct Lab Labou our r Actual cost of direct labour and sub-contract labour will be paid to contractor as per cost statem statement ent to be submit submitted ted by AFCONS AFCONS.. The contra contracto ctorr shall shall engage engage sub-c sub-cont ontract ract labour labour for spec specify ify job job only only on expl explici icitt auth author oriz izati ation onss by Reli Relian ance ce Cons Constr truc ucti tion on Manag Manager er(s (s)) and and not not otherwise. AFCONS AFCONS shall furnish furnish to Reliance Reliance Constructi Construction on Manager a monthly monthly statement of surplus surplus labo labour ur or shor shortf tfall all there thereof of unde underr diff differe erenc ncee categ categor orie iess and and prop propos osed ed plan plan for for addi additi tion onal al mobilization, demobilization and utilization as applicable.

F. Mate Materi rial alss Actual cost of materials and Consumables (other than those provided by Reliance) will be paid to Contractor as per Monthly Cost Statement to be submitted by Contractor. Reliance may, at its option, supply any materials and consumables required for the job as free issue. Reliance may procure any material from its designed suppliers for which cost of material will be paid from Reliance, but same cost can be add in for compensation as agreed. All material required for Jamnagar site will be procured and paid from Jamnagar only. A list of material specifically agreed as free issue issue material material is as attached. attached. (Items Consumed for temporary works except Labour camp shall be clime for compensation)

Page 14 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Sr. Material Sr. No Material No 1

Cement

17

Piping

2

Sand including crusher dust

18

Electrodes

3

Aggregate

19

Gases

4

RMC

20

Welding Cable

5

Steel all types

21

Foundation bolts and nuts

6

Admixture

22

Anchors fastners

7

Ply wood

23

Cables all type

8

Brick and Hollow block

24

Transformers

9

GI sheet/ All type roofing sheet

25

Switch Gears

10

Curing proofing

26

Distribution/ Junction Box

11

Bitumen

27

All Panels

12

Doors and windows

28

Cable tray

13

Office Equipment (Computer/ Printer/ Mobile phone)

29

Construction Water/ Construction Power

14

Chain puily blocks

30

Paints

15

Fire extinguishers

31

Lubrication

16

Water pumps/ Motors

32

Diesel

Compound,

Water

G. Mobilization Mobilization and Demobilization Demobilization charges The expenses for mobilization mobilization of contractor owned plant and equipment equipment to Jamnagar Jamnagar site from contractor’s yards and the demobilization of plant and equipment form Jamnagar site to Contractors yards up to Nagpur shall be reimbursed by Reliance to AFCONS. It is clarified that equipment is demobilization by AFCONS to their new working site, expenses for demobilization is not paid by Reliance.

Page 15 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Mobilization and Demobilization expense comprising of retrenchment benefits to labour, to and for travel expense of labour and a nd staff shall be paid to AFCONS at actual and same can claimed in head of “Common Site Expense”

H. Supply of Material Material and Sub-contractor Sub-contractor work to be carried out through through specialized specialized agencies. If required AFCONS will co-ordinate for arranging specialized sub-contractor agencies for supply supply of material/serv material/service. ice. This Sub-contractor Sub-contractor will be selected selected jointly jointly by Reliance Reliance Constructi Construction on Manager and AFCONS. AFCONS will co-ordinate with Reliance in following Matter: •

Identify form time to time materials/ service for which suppliers and subcontractors are required.

•

Finalize Vender(s)/ sub-contractor(s) list

•

Evolve procedure for selection of Vender/ Sub-contractors for each of the identified specification materials and service.

I. Construct Construction, ion, Materia Materiall and and Stagin Staging g mate material rial AFCONS has to deploy experienced personnel to the site in following categories. •

Cons Constr truc ucti tion on Manag Manager er for for each each unit unit// area area duly duly assi assist sted ed by qual qualifi ified ed// expe experie rienc nced ed construction and quality supervisors.

•

Construction planning engineer for each area/unit.

•

Material controllers for unit/ area duly assisted by qualified/ experienced store managers and store stores officers.

•

Safety Manager for each unit/area.

•

Any other person required for the work as per Reliance approval.

Page 16 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report If in the opinion of Reliance, any of the staff is found unsuitable for the assigned job, AFCONS has to take immediate action to demobilize or replace with alternate person. 

Defect Liability The Defect liability period shall apply individually to each scope of works covered by an

indivi individua duall work work order order and shall be 18 months months from from the date of Relian Reliance’ ce’ss taking taking over the respective executed scope of work or 12 month from the commissioning of plant whichever is earlier. In the event of any defective work, Reliance Construction Manager(s) shall advise the Contractor Contractor of the same. AFCONS AFCONS has to take necessary action for rectification of work. The cost of such rectification work will be recovered from AFCONS. However if rectification is necessary due to reasons not attributable to contractor the same will be recorded and certified by Reliance in each case and cost of such rectification shall be remembered by Reliance and the Contractor shall be entitled to compensation hereon in terms agreed. 

Wastage and losses: Wastage allowance and weighment/rolling tolerances shall be apply to Free Issue Material

(FIM) and selected contractor supplied material on following basis. If AFCONS consumed any below said material in excess than required for executing work then Reliance will recover from contractor the weighted average cost of such excess consumption plus 20% charges thereon other wise AFCONS may have option to replace the excess consumption (Material shall be same standard/ specification as Reliance Purchased) at their own cost. The admissible admissible recoveries recoveries shall be completed vis-à-vis vis-à-vis the reconciliation reconciliation statements to be submitted by the contractor once in a quarter as per agreed. The amount of such recovery shall be withheld from the payment due under article 9 which shall be reconciled every six months.

Cement Reinfo Reinforcem rcement ent Steel Steel

Non recoverable wastage allowance 2% For underground works like piling, consumption shall be on actual recorded consumption basis. Non recover recoverabl ablee wastag wastagee allowa allowance nce 0.5% 0.5% Account Accountabl ablee wastag wastagee allowance 2.5% for length less than 2mtrs.

Page 17 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report 1 The above excluding rolling margin. 2 Bar bending schedule be approved by Reliance. Cut length lengthss shall shall be segreg segregate ated d size size wise wise and length length-wis -wisee while while returned to Reliance store Rolling tolerance- To be determined periodically as per IS 1786. It should be decided jointly based on actual. Non-r Non-reco ecover verable able wastag wastagee allowa allowance nce 0.5% 0.5% Account Accountabl ablee wastag wastagee Structural steel

allowance 2.5% for length less than 2mtrs. Rolling tolerance- To be determined periodically as per IS 2062. Non-r Non-reco ecover verable able wastag wastagee allowa allowance nce 0.5% 0.5% Account Accountabl ablee wastag wastagee

Steel plates

allowan allowance… ce………. …….As As per approv approved ed cuttin cutting g diagra diagram m (Plates (Plates Pisces Pisces meas measur urin ing g 1sqm 1sqm in area area and and side side nit nit less less than than 200 200 mm will will be accepted as good and usable plates)

Electrical cable

Non-recove Non-recoverable rable wastage wastage allowance allowance 0.5% in peeled-off peeled-off condition condition (contractor to return all cut lengths to Reliance’s designed place)

Piping

Non recoverable wastage allowance will be decided mutually.

Sand

Non recoverable wastage allowance 5%

Aggregates

Non recoverable wastage allowance 4%

Electrodes

Non recoverable wastage allowance- will be decided Mutually

Gases

Non recoverable wastage allowance- will be decided Mutually

Diesel

To be decided mutually

 Compensation

Page 18 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report AFCONS will be paid in addition to cost as per items (a) to (i) of above said article Monthly Cost Statement. Compensation at the rate of 20% (Twenty Percent) Compensation shall be paid by Reliance to Contractor in the manner started as below  18% (Eighteen Percent) along with monthly cost statement within 30 days of submission of

cost statement and R.A. bill.  2% (Two Percent) retention money against submission of final Cost Statement within a

period of 30 days from the date of submission of final statement on submission of a Bank Guarantee of an equivalent amount valid for One Year. Alternative, if no Bank guaranty submit submitted ted by AFCONS AFCONS,, this this amount amount will will be release released d after after expire expire of Defect Defect Liabil Liability ity Period.  INCENTIVE

In addi additi tion on to abov above, e, AFCO AFCONS NS can can earn earned ed inse insens nsit itiv ivee up to 2% on the the cost cost reimbursed as per items (a) to (i) of article Monthly Cost Statement as above, subject to mobilization of resources as per agreed execution plan and completion of each awarded scope of work in time as per “S” curve and as per overall “S” curve and satisfactory performance of the contractor. Till the submission of R.A. bill and reconciliation of free issue material, any payment releas released ed on weekly weekly fund replen replenish ishmen mentt basis basis or otherw otherwise ise shall shall be treated treated as advanc advanced ed to AFCONS in Reliance’s books of accounts. The contractor will submit reconciliation of free issue material and consumables every quarter. If the Contractor fails to submit Reconciliation statement and R.A. Bills for two consecutive quarters, then compensation payable as above shall be withheld until such time aforesaid statement are submitted.

Page 19 of 50


Administration of Contracts This This Admini Administr stratio ation n of contra contracts cts specifi specifies es major major proces processs detail detailss as follow following ing list list in differe different nt department at time of executing work. o

o

o

Accounts 

90 days look ahead



Monthly Cost Statement



Fund Requirement (weekly)



SAP entry



Cost-verification



Terms of Payment



90 days look ahead

Stores



Procurement of Free Issue Materials



Procurement of Non Free Issue Materials

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Receiving of Material

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Material Consumption Records

Administration and H.R. 

Manpower resource development

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Accommodation

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Vehicles

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report  Labour Administration

Contract cell (Billing)

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Sub-contractor billing

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Sub-contractor/ Vender Deployment

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Approvals

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Joint Measurement Sheet

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Clint billing

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Reconciliation

Accounts As we are are oper operat ated ed MOU MOU cont contrac ractt Acco Accoun untt Depa Departm rtmen entt play play very very vita vitall role role in

executing this type of contract. Following are some important works has executed by Account department. As in Unit Rate project Clint billing Department will clime for money will billing quantity, same way in MOU contract Account Department has to submit cost statement for every month. 

90 days look ahead

It is noth nothin ing g but but budg budget eted ed proj project ectio ion n of fina financ ncia iall (Cas (Cash h Flow Flow)) subm submitt itted ed to Reliance. This is as per written in contract document under article of Monthly cost statement. Reliance will tally or refer this 90 days look ahead at time executing job. This 90day look ahead is totally depending on our work program for next three month and last month expenses happed in working site. For every month with cost statement this look ahead is submitted to Reliance. In 90days look ahead all cost projection are include as said above in Monthly Cost Statement.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report  Monthly Cost Statement In MOU projects projects Monthly Cost Statement is similar similar to Clint billing. billing. As discussed discussed above in article (a) to (i) AFCONS has to submit Monthly Cost Statement at every month to Reliance. After cost verification in cost statement, Reliance will reimburse cost to AFCONS. Before Cost verification amount paid for running site activity is treated by Reliance as advance payment to AFCONS. Cost statement is a combine statement of all site expanses as said. AS based on contract terms Cost Statement is prepared based on following head of cost. One Cost Statement sheet is attached for reference. 1. Mobil Mobiliza izatio tion n Charg Charges es on on Direc Direct: t:

As said said in contrac contractt sectio section n “G” of Monthl Monthly y Cost Cost Statem Statement ent Mobili Mobilizati zation on and Demobilization charges, traveling expenses is being paid under this head. Amount being spend by a staff or company employ for fist time reporting at Jamnagar site is covered under this heading. (This expenses done by staff is cross checked with actual tickets and company General Policy). 2. Mobil Mobiliza izatio tion n Charg Charges es on on Depar Depart: t:

As said in contract section “G” of “ Monthly Cost Statement” “Mobilization and Demobilization charges”, traveling expenses is being paid under this head. Amount being spend by a sub-contractor for mobilization worker for work at Jamnagar site from various part of India is covered under this heading. (This expense is being paid on actual expenses done by contractor with reference original railway ticket or bus ticket at starting). 900Rs is being paid per worker once in a six month with reference to Reliance SAP code No. 3114925 given to AFCONS in approval not No AFC/376 and AFC/146.

Worker strength is calculated on average number of

workers workers working for six month with particular particular contractor. Also worker strength is cross checked with Daily manpower report prepared by AFCONS Planning Department on daily Basis. 3. Comm Common on site site Expe Expens nses es::

All site site expens expenses es like like local local travel traveling ing,, pantry pantry bill, gust gust house house bills, bills, hotel hotel bills, bills, postage and printing, room rents, electrical bills for staff, telephone charges and also other miss

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report expenses actual occurred on site is covered under this heading for composing Monthly Cost Statem Statement. ent. As said said in contra contract ct and with with referen reference ce to our AFCONS AFCONS genera generall policy policy common common expenses expenses done at site is covered in this head. This is one of major head contributing contributing in total cost. All cost clamed in this head must be supported by company policy or approved by Reliance. As room rents provided to staff is must approved from Reliance representative with respect to staff appointed at Jamnagar site. Before taking accommodation for any staff 1 st proposal has to flowered to Reliance Commercial Department with brokerage charges, when Reliance will approve the proposal then only same accommodation can provide to staff otherwise any other accommodation has to arrange. All vehicles used locale for staff transporting must be approved for area manager and central commercial department of Reliance. All expenses done at Reliance site is checked with actual conduction, Contract conduction, Reliance Approval or Company Policy. 4. Depa Depart rtme ment ntal al Lab Labou our: r:

This heading covers salary of manpower engaged by AFCONS departmental on local daily or local monthly basis at Jamnagar Site. All category people appointed at Jamnagar site is counte counted d under under this this head. head. Catego Category ry may like like Helper Helpers, s, driver drivers, s, masons masons,, welder, welder, fitter fitter,, pump pump operat operator, or, DG operato operator, r, and mechan mechanics ics.. On requir requireme ement nt of Constr Construct uction ion Manage Managerr from from site site Admini Administr strati ation on Departm Department ent appoin appointt requir required ed categor category y people people.. This This person person will will work work under under differ different ent Constr Construct uction ion Manage Managers rs Area. Area. Constr Construct uction ion Manage Managerr has to certify certify the departm department ent manpower manpower working under his area/ control control from Reliance Constructi Construction on Manager/ Manager/ Area Manager. On basis of this certification and salary given by AFCONS personal department with reference to experience of person and company policy, Reliance commercial will reimbursement payment in cost statement under heading of Departmental Labour. 5. P & M Rep Repai airs rs and and Mai Maint ntai ains ns::

At Jamn Jamnag agar ar site site Plan Plants ts and and Equi Equipm pmen ents ts are are divi divide ded d in main main six six grou groups ps as AFCONS own, AFCONS hired, AFCONS Sub-contractor, Reliance Own equipment maintain by AFCONS, Reliance equipment maintain by Reliance, Reliance hired. In these six groups maintains of only AFCONS own and Reliance own handled by AFCONS equipment is responsibility of

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report AFCONS. The spear cost is required to maintain AFCONS own equipment is reimbursed under this heading. As per contract document given in article of Monthly Cost Statement in section “C” Plant Plant and Equip Equipmen mentt the operati operation on and repair repairs/ s/ Mainta Maintains ins cost cost of all contra contracto ctors rs owned owned and Reliance owned plant and equipment will from part of AFCONS cost. This cost reimbursed at actual subject to a ceiling at the percentage rate of original purchase value in respect of equipments owned by the AFCONS on a global basis for all the equipments as per given in contract 5.25% for equipment equipment other than heavy equipment and 6% for heavy marine equipment. equipment. Spear cost required for Reliance equipment handled by Reliance is directly reimbursed or provide required spear to AFCONS. AFCONS. Cost for same can’t clamed in Cost Statement Statement for Compensat Compensation. ion. As actual maintains maintains cost of Equipment at Jamnagar site is ……….% of AFCONS own equipment Purchase Value. 6. Amort Amortiza izatio tion n Expense Expensess on contr contract act::

Amortization is fix rate charges paid to AFCONS by Reliance for deployment of own equipment on Jamnagar site. As per contract document in article 9 Monthly Cost Statement section section “G” “Plant “Plant and Equipment” Equipment” it is given that Reliance Reliance pay to AFCONS on monthly monthly basis, the fixed charges at the rate 22% per annum prorate bases on original purchase value of plant and equipment owned by AFCONS other than heavy marine equipment, Heavy marine equipment will charge 30% per annum on prorate basis on original purchase value. (Note: As per Jamnagar site and above contract conduction it is observed that very old equipment which may purchase before 15 to 20 years having cost or value as per book of account is very less compare to today’s market. Deployment of such equipment will not give correct return amount to company with reference to today’s market.) 7. Staf taff Sal Sala ary:

As per Contrac Contractt docum document ent Relian Reliance ce will will be reimbur reimbursed sed total total salary salary of person person deployed deployed at Jamnagar Jamnagar site to AFCONS. All salary part of Management Management staff is clamed under this head. Person reporting Jamnagar has to complete his all admin process of gate pass preparation with with two two days days and and shou should ld be read ready y for for work work.. Also Also it is clea cleare red d that that mobi mobili liza zati tion on and and demobilization of manpower according to work scope has to be done with prior information of

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Reliance Reliance Constructio Construction n Manager. Manager. Every month month all department wise manpower has to certify from respective area manager and Construction Manager. Reliance paid AFCONS all inclusive expenses towards staff member deployed at site on bases of actual payroll cost of the AFCONS as certified by the H R department of AFCONS. For auditing purpose AFCONS provide certified CTC statement of deployed person on site. This CTC statement was provided on a yearly basis comprising period from April to March. 8. Mobil Mobiliza izatio tion n on Contract Contract (Equi (Equipme pment) nt)::

All amount or charges paid for mobilization of equipment at Jamnagar site is clamed under this head. Transport charges or other charges paid for mobilization of equipment is reimbursed by Reliance as actual as per contract. 9. Sub Sub-C -Cont ontrac ractor tor Expens Expenses: es:

Sub-contractor’s billing amount is reimbursed in this heading. Contract cell/ Billing department will prepare bills for sub-contractor’s work done at site. The item and rate approval is taken by AFCONS contract cell department form Reliance contract cell at per requirement of site. AFCONS Construction Manager is writing measurement book of subcontractor work done at site accord according ing drawin drawing g or Joint Joint Measure Measuremen mentt sheet sheet certify certify from from Relian Reliance ce Constr Construct uction ion Manage Manager. r. Billing period at Jamnagar site is 21 st to 20th of every month. Up to 25 th of every month all subcontractors measurement book is submitted to billing department. Billing Department prepare bill and submit to account department up to end of month. Total amount of subcontractor billing is clamed in Monthly Cost Statement as a sub-contractor Expenses. 10. P & M Hire Hire Charges: Charges:

In Contract Document is cleared except trailor, water tanker, air compressor, tractor with trolley, bus and summo only AFCONS can take on hire basis for execution of project. Charges paid for hire these equipment is clamed under this section. For hire such equipment following approval is required 1) Requirement of equipment for Area Manager/ Construction Manager and 2) Rate approval for equipment hire form Reliance commercial department.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report 11. Demobilization Charges direct staff staff The amount paid for demobilization of staff from Jamnagar site after completion of his task to other site or Head office. Before demobilization of person from Jamnagar site approve has to be taken from Reliance Construction Manager. 12. Monthly Monthly Compensatio Compensation n

18% compensation is clamed under this section for all above cost as per contract document.

13. Retent Retention ion::

As per contract it is given that 20% compensation will paid to AFCONS. 18% of the same will paid in above Monthly Compensation and 2% amount hold as Retention. 14. Compensation for Material Material Handling: Handling:

This amount shows the compensation amount paid for Handling of Non free issue material by AFCONS for executing of site work. Whatever material purchase by AFCONS as a non free issue material Reliance will reimburse actual amount and 20% amount of same cost is paid as compensation for material handling. For perching any NON FIM approval from Reliance is necessary. 

Fund Requirement (weekly):

Every Saturday AFCONS Account Department submits fund projection for next week. Amount of fund requirement is depending on back week expenses, other common expenses and miscel miscellane laneous ous expens expenses es (like (like electri electrical cal bill, bill, travel traveling ing expens expenses, es, and welfare welfare charge charge etc.) etc.) clamed by staff. At 2 nd week of every month Billing department prepare subcontractor payment requirement. This fund requirement is also forwarded by account department in 2 nd week for subcontractor payment. Fund requirement for staff Salary staff and department labour is forwarded is 1 st week of month. House Rent fund requirement is also forwarded in 1 st week. After submitting

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report fund requirement Reliance representative will check fund requirement with supporting document and relies fund within 4 days of submission fund requirement. 

SAP entry

The amount paid by Reliance on bases of fund requirement is treated as advance paid to AFCONS in book of account. After expenses maid or payment done these expenses has to certify from Reliance Auditor. Reliance Auditor will check each and every expenses paid by AFCONS department. They will certify the expenses. If any problem or uncertainty found in these expenses it will be hold and ask for further more clarification or supporting document. Certify amount entry has to be done in SAP system. After entry in SAP system only this amount paid as advance will consider as payment against cost statement.

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Cost-verification

As said above all process combine in cost statement. As expenses done in particular month is combined in a cost statement. This cost statement again checked by Reliance auditor. When these cost statements get cleared certify amount is applicable for paying compensation amount to AFCONS. Cost statement is being prepared in two types one is manually in “excel” and other other is in SAP system system.. After After certify certifying ing this this cost cost statem statement ent Relian Reliance ce will will pay compen compensat sation ion amount to Head Office of AFCONS. 

TERMS OF PAYMENT

Contrac Contractor tor to open open two bank bank accoun accounts ts in consul consultat tation ion with with relianc reliancee Site Site Bank Bank account and Head Office Bank Account. The payment due as per cost statement towards common site site expens expenses, es, direct direct labor, labor, contrac contractor tor’s ’s purch purchased ased materi materials als and consum consumabl ables, es, hired hired plant plant & equipment, equipment, mobilization mobilization & demobilizati demobilization on charges, charges, subcontract subcontractor or payment, payment, staff salaries is to be done through site Bank Account. The Reliance will replenish every week the site bank account based on the cash flow projections provided by the contractor.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report The Payment due as per cost statement towards part staff salaries, contractors own plant & equipment, tool & tackles arranged, compensation, engineering & Design fee is to be done through Head Office Bank Account.

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Stores As per tentative work scope at Jamnagar Project cost statement amount is 30% of

total job value and 70% cost is free issue material. This statement itself says importance of free issue material following are some process handled in store department for receiving and issuing free issue material. 

90 days look ahead

Every Every month month project projection ion of materia materiall requir required ed for next 90days 90days has to submit submit to Reliance. In this process planning and execution department is involved. Depending on scope available as per construction drawing and planned quantity for the next three month, quantity required for next three month is being calculated. This is projection quantity for next three months. Every area AFCONS Construction Manager will certify this quantity for respective Reliance Area Manager and submit to AFCONS store Manager. Store office combines this requirements area wise and also divided in following category. 1.

Class “C”

“C” “C” grou group p mate materi rial al is that that whic which h is havi having ng cost cost less less than than 10,0 10,000 00Rs Rs.. For For procu procurem rement ent of “C” group group three three quotat quotation ionss requir required ed from from three three suppli suppliers ers.. From From these these three three suppliers AFCONS EIC (Project Manager) will approve vender and rate for procurement. 2.

Class “B”

Materials belong to “B” group having cost more than 10,000Rs to 20,000Rs. For procurement of from “B” class three quotations has to collect from three venders. These three quotat quotation ionss with with approv approval al reques requestt have have to send send to Relian Reliance ce commer commercial cial departm department ent.. Relian Reliance ce commercial will give approval if found OK or they will do negotiate with party directly and give approval or other party’s name for procurement of material.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report 3. Class “A” The material cost more than 20,000Rs. And less than 1,00,000Rs is comes under Group “A”. Reliance had finalized venders for supplying “A” class materials. AFCONS store officer will put porches order for same vender on same rate. 4.

“Free Issue Material” (FIM)

Material belongs to FIM category having cost more than 1,00,000Rs. All process for procur procureme ement nt the materi material al is done done by Relian Reliance. ce. Only Only AFCONS AFCONS store office officerr will will receiv receivee material from Reliance store or directly from supplier. Purchase order for group A, B, C class material is placed by AFCONS Store officer on behave of Reliance. Before procurement store officer has to take quantity approval from central Reliance material coordinator. 

Procurement of Free Issue Materials

List of FIM material is given in contract document. For placing order of FIM following process is followed. 1.

As pe p er ex e xecution pl p lan an a nd ac a ccording to t o co c onstruction dr d rawing

requirement of material is forwarded to Reliance Area/Construction Manager. 2.

Reliance Co Construction Manager will put purchase re request (PR) in

SAP system. 3.

On ba base of of PR PR fr from co construction ma manager Re Reliance Co Commercial

Department will place purchase order to supplier. 4.

When purchase or order se sent to to supplier he he may deliver ma material at at

Reliance store or directly AFCONS store as per conduction in purchase order. 5.

When ma material wi w ill re r eceive at a t Re Reliance st s tore Re Reliance ma m aterial

coordinate will allocate materials for AFCONS. Same time he will issue Material Issue Note

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report (MIN) to AFCONS with gate pass for collect material. After lifting material stock will transfer to AFCONS account. If AFCONS store officer will not lift material in 15 days MIN will get lapsed. 6.

If material is directly received at AFCONS store we have to give

Good Receipt Note (GRN) to Reliance on basis of the GRN Reliance will make MIN and stock transfer to AFCONS account. 

Procurement of Non Free Issue Materials As per dissection dissection in 90days 90days look ahead after certifying certifying material quantity and class

from central material coordinator of Reliance, AFCONS is permitted to process for NON FIM. For procurement of material from B and C class purchase officer will collect three quotations from suppli supplier. er. He will will proces processs for requir required ed approv approval. al. After After gettin getting g proper proper approv approval al from from requir required ed authority, he will raise purchase order for supplier in behave of Reliance. This material is taken on 30 days credit limit except shuttering oil and binding wire. For shutting oil and binding wire credit limit is 7 days. After receiving material from supplier AFCONS will give GRN to Reliance for further process. AFCONS will applicable to receive 20% compensation amount on payment Paid for NON FIM suppli supplier. er. Only Only 20% compensa compensatio tion n amount amount is shown shown in cost cost statem statement ent format format.. Original amount of NON FIM is five times of same value.

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Receiving of Material

The material Receipt Report (MRR) is prepared at the security gate once the materia materiall is taken taken inside inside.. At this this time time Purcha Purchase se Order Order No, delivery delivery challa challan n no descri descripti ption on of material, quantity is recorded. The vehicle papers, license is kept with the the security. Inspection Inspection by contractor’s quality control department and quantity acknowledgement by the store representative to RIL provided. (Security to return back the Driving License and vehicle papers to the driver which was taken at the time of entry) If rejected for the reasons poor quality or any defect the same will be mentioned on the delivery challan challan and materials materials returned. If not rejected rejected at the time of delivery, delivery, the parties will be informed subsequently to take the materials back by preparing Non- Returnable Gate pass

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Inspection Report (IR) & Quality related module to be updated for processing of GRN. GRN will be prepared on completion of quality inspection with details of Purchase Order No., IR No., MRR No, and Vehicle No & Delivery Challan No. If quantity required is less than the Quantity ordered in PO then AFCONS to inform RIL to short-close the Purchase Orders. If the quantity as ordered is not delivered on or before the “date of delivery” as in the Purchase Order the Purchase Order gets closed automatically as per the system. 

Material Consumption Records

Material issue voucher (MIV) is to be prepared based on the actual consumption of the materials. The work based structures as identified by RIL must be indicated on MIV to have entry in the respective head, The MIV’s are to be signed by contractor’s authorized representative. The The reconci reconciliat liation ion statem statement ent of free issue issue materi materials als and contra contracto ctorr suppl supplied ied materials are to be submitted once in quarter showing Materials in stock Materials forming part of work Accounted/ Non accounted wastages

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Administration and H.R. Administration and H.R. department play very important role in cost plus job.

Administration department is involved in salary, House Rent and hire vehicles arrangement for local conveyance of staff/ workers, which is part of cost statement. All these three head contribute more amounts in cost statement. Also administration involved in various approvals from Reliance which is necessary for executing job. Following are some of important work has been executed by administration department. 

Manpower resource development/ Salary

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report This is important work handled by administration department. When any AFCONS Construction Manager required any type of manpower like Engineers, officers, unskilled, welder, fitter, fitter, meson meson etc. etc. they they will will give give requir requireme ement nt to admini administr strati ation on depart departmen ment. t. Admini Administr stratio ation n department will recruit required skill man at locally. At end of month administration department will prepare area wise manpower list. This list has to be certified by respective Reliance Construction/ area Manager. Depending on this list and daily attendance and overtime hour’s administration department will prepare salary for local staff. Total amount for local staff salary forwarded to account department for adding in cost statement and verification from Reliance auditor. Also other common expenses like traveling, electrical bills for staff and workers, staff welfare expenses is certified by administration department. 

Accommodation

This very critical responsibility has been handled by administration department. At Jamnagar site accommodation can classify in four types as follows. In MTF area AFCONS is biggest contractor Reliance is given Labour camp 4 for accommodation of subcontractor worker and AFCONS workers. All subcontractor workers are accommodating at LC4. At pick time more than 4500 worker are living at LC4 camp. Total accommodation management is handled by administration department. Reliance Reliance has also given local staff accommodatio accommodation n at staff colony. All superviso supervisor, r, technician (monthly basis) staff are accommodate in this colony. Both type of accommodation bachelor and family are available in this colony. Above tow accommodation are provided by Reliance without any cost. Some of company staff accommodations are arranged in Sikka village near to site location for store and administration officers. These houses are taken on rent by AFCONS with prior approval from Reliance.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report For Head office staff and officers accommodation is provided at Jamnagar city. As per given in contract document Reliance is paying house rent with brokerage charges. As per perso person n report report at Jamnag Jamnagar ar site site admini administr strati ation on departm department ent will will arrange arrange accomm accommoda odatio tion n as per requirement as bachelor or family. Administration department has to take approval from Reliance after reporting of person at Jamnagar. Normally approval is given for time period as person deputed at Jamnagar site only. 

Vehicles

All vehicles used for local staff convince is handled by administration department. Depending on number of staff and different location administration department will take approval for vehicle. As per site program Reliance Construction/ Area Manager will approval vehicle for period of months. After getting proper approval Administration Department will hire vehicle from local transporter as per approved rate by Reliance commercial Department. Reliance Commercial department has fixed different hire rate for different type of vehicle (like AC, non AC). At end of month transporter will submit bills to Administration Department and after certifying bills they will send this to account department. 

Labour Administration

As mention in contract document AFCONS has to maintain all labour-laws. All arrangement required for same is handled by Administration Department. All P. F. for workers is handled by admin. Other all medical treatment for staff and worker is handled by Admin. Depart. Travel Traveling ing of worke workers rs and deputa deputatio tion n on duty duty at differ different ent is also also handle handled d by Admini Administr stratio ation n Department.

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Contract cell (Billing) More than 50% of amount for cost statement is comes form this department. This

mean meanss 50% 50% of prof profit it amou amount nt cont contri ribu bute te by subc subcon ontr tract actor or bill billin ing. g. Also Also this this depa depart rtme ment nt is responsible for reconciliation of free issue material which is near about 70% cost of total project cost. All approval required for AFCONS is taken by this department. Following are some of important activity carried by this department.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report  Sub-contractor/ Sub-contractor/ Vender Deployment This is initial work of contract cell department. Before deployment of subcontractor on work he must have to register in SAP system. For vender register this subcontractor must have document like Pan Card, Bank account with one crossed blank check life, and his own letter pad. If subcontractor is working as a firm then proprietorship document is mandatory. After receive of this document document AFCONS AFCONS contract contract cell will forward forward request request in SAP system for approval. approval. Reliance commercial department will approve same after checking proper document. 

Approvals

All types of approvals from Reliance commercial department is responsibility of AFCONS contract cell. Following are some of important type of approvals is taken by AFCONS contract cell regular. •

Subcontractor Rate approval: As per cost plus job, work

items items execut executed ed at site site has to be certify certifying ing from from Relian Reliance ce Constr Construct uction ion// Area Manage Managers. rs. Requir Required ed subcon subcontra tracto ctorr rate rate for execut executing ing these these jobs jobs has to be approv approved ed from from Relian Reliance ce commercial department. AFCONS contract cell department will put approval request for item rate executed at site on basis of worker engaged at site or quotation submitted by contractor. By negotiating with Reliance commercial department rate has to approve. •

Manpower Approval: In some some case casess Reli Relian ance ce is payi paying ng

subcontractor on manpower basis with prior approval e.g. manpower required for material collecting from Reliance store and Housekeeping. This approval is taken by contract cell department. •

Special Approval: These approvals are required in special

conductions. At some area is very difficult to execute job with normal rates. In these cases special rate or lamp sum amount approval is taken from Reliance by this department. Also approval require for making pooja at site or arranging get together for staff is comes under this type.

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AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Some case case quan quanti tity ty appr approv oval al is Quantity Quantity Approval: Approval: Some • required for executing jobs like shifting of stone dust or aggregate is required etc. This quantity approval is also taken by contract cell department for Reliance Construction/ Area Manager. 

Sub-contractor Sub-contractor billing

All site construction managers are responsible to write subcontractors measurement books. 20th of every every month month they they will will submi submitt MB to billin billing g departm department ent.. After After checki checking ng this this measurement books with Construction Drawing and Approved JMR bills for subcontractor are prepared and given to Account Department. 

Joint Measurement Sheet

This is nothing but approval from Reliance Construction/ Area Manager of work done by any subcontractor which is devotion to construction drawing or supporting to drawing. This is one type of approval from Reliance in basis of quantity or manpower supply for executed work. This is required for subcontractor billing and also in client billing. Joint Measurement sheets is prepared and approval taken by Area Construction Manager of AFCONS. 

Clint billing

At Jamnagar project all client bills prepared quantity basis. As said above AFCONS billing is paid on basis of Monthly Cost Statement. Clint bills are used for tally with subcontractor paid quantity quantity and material material consumpti consumption. on. AFCONS has to submit submit separate separate client bill for different different work order issued by Reliance. 

Reconciliation

Reconciliation of material is done with respect to client bill and material received by by stor store. e. Tota Totall info inform rmat atio ion n is comb combin ined ed by cont contrac ractt depa depart rtme ment nt and and subm submit itss to Reli Relian ance ce commercial globally (not to indusial work order).

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Certificates Received from clients

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Technical Details  Details of Work orders:

As mention in contract document RIFL can place work order to AFCONS for executing work same way RPL and RIL may place different work orders to AFCONS for different works respective reference to their work. Following are various work order placed by different company for executing work order. Sr. No.

Work Order No

Name of work order

Issuing Authority

Description of Work order

1

3603726

Civil work for 92 D Crude Tank, Dyke Wall

RPTL RPTL

Cons Constru truct ctio ion n of of Onl Only y Tan Tank k fou found ndat atio ions ns of 92mtr 92mtrs. s. For For crude rude stora torage ge at MTF MTF are area and als also cons constr truc uctio tion n of 2 Port Portab able le wate waterr Tank Tank and and 2 WDO Tank.

2

3653083

Civil Work at Crude Tank area

RIL

Civil wor work rela relatted to 92 92mtrs trs. Cru Crude Tan Tank lik like Dyke Dyke wall, wall, Pipe Pipe sleepe sleeper, r, Culver Culvert, t, Wing Wing wall, wall, Retuni Retuning ng wall, wall, other other miss. miss. Civil Civil work work and all structural work at pipe support.

3

3619666

Civil work for pipe sleeper MTF to LFP

RIL RIL

All All Civi Civill and and Str Struc uctu tura rall wor work k at Area Area MTF MTF to LFP LFP and Pig Launching area.

4

3619680

Civil work for Substation and PIB

RIL

All Civ Civil and and str structural wor work at Old Old MT MTF are area. (i.e. Substation 50, 51, 52 and 40 and PIB 77)

5

361682

Civil work for MTF to RTF pipe Sleeper

RIL RIL

All All Civi Civill and and Stru Struct ctur uraal fabr fabric icaation tion wor work k at Hou Houll road road i.e. i.e. for MTF area area to RTF area. area. Includ Including ing Culverts No 1, 3, and 4.

6

3622128

Civil work for Product Tank, Dyke wall

RPTL RPTL

All All Civi Civill work work in in new new tank tank are areaa like like Prod Produc uctt Tank Tank Pads Pads (Except (Except Gasoli Gasoline) ne),, Dyke Dyke Wall, Wall, Culver Culverts, ts, Pipe Supports, PIB-76 and 78 and Substations 60, 61, 62. Locate Located d at new tank tank area. area. Other miss. Work.

7

3653081

Civil Work near Filtration Unit in MTF

RIL

All Civil work for Sea water Filtration and Filtered water resvoir.

8

63500203

Hypermarket

RRL

All foundation and Civil work at Reliance Hyper Mart Mart at Relia Relianc ncee Gree Greens ns.. Also Also Some Some 210M 210MT T structural Work.

9

53506569

Civil works for Crude 312Unit

RPL

Civil work at crude 312 unit JERP Area.

10

3622130

Civil works for Gasoline

RIL

Civil work for Tank pads of Gasoline Tank As

Page 46 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Tank Foundation

Tank no MT-MM813-39, 40, 41, 42 at New Tank Area.

11

3619683

Electrical and Civil Infra Work at MTF

RIL RIL

Elec Electr tric ical al and and Civi Civill infra infra work work at MTF MTF like like providing terfelt at MTF store Shed Fabrication and erection and fabrication of MTF main Gate, Boundary wall source pit, fixing and removal of boundary wall chain link fencing.

12

3619669

Infrastructure work at MTF

RIL

Civil work for Main office office building, building, Miss. Infra work pre-cast boundary wall near sea water intake preparing sand base for LFP to LOLO Jetty Chain link Fencing removing and fixing, Source Pit.

13

3640957

Anaerobic Digester at LC-4

RIL RIL

Cons Constr truc ucti tion on of Anae Anaero robi bicc dig diges este terr wor work k at at lab labou our r camp 4.

14

3609476

Piping and Structural work

RPTL PTL

All All Pip Pipin ing g wor work k at at MTF MTF to LFP area rea.

15

53502066

Installation of 54” seawater outfall, final painting-piping sea water outfall

RJFL JFL

Abov Abovee grou ground nd and and Und Undeer grou ground nd pip pipee line line wor work k at MTF to Zero point of 54”

16

53505577

Sea Water System piping in MTF

RJFL RJFL

Pipi Piping ng work work at seaw seawat ater er filt filtra rati tion on area area..

17

3623122

Piping Work at MTF

RPTL

Hydrant Monitor piping Modi-crude Tank, AG piping against crude corridor MTF Piping for 6 Nos Nos.. Gaso Gasoli line ne Tank Tank UG for for OWS/ OWS/CU CUS S for for Product Tank

18

3633066

Mechanical Work in MTF

RIL

Oily water and FWS of crude Tanks MTF, Tie-inJobs Jobs Crude Crude recirc recircula ulatio tion n and SPM3, SPM3, FAB and Erection of Cable tray supports for 811 A

19

3619670

Construction Power Net work-MTF Construction Power Maintenance

RIL RIL

All All ele elect ctri rica call wor work k at at MTF MTF area area for for Con Const stru ruct ctio ion n Power.

20

3609830

Construction Power Net work-MTF Construction Power for DTA

RIL

All electrical work at MTF area for Construction Power.

21

3654335

Civil work for extention of MTF Building Civil work for SPM Hose Store work

RIL

All Civil work for construction of SPM Hose building work and Miss. Infra work at MTF.

22

3653079

Infrastructure work at new Product Tank Area.

RPTL RPTL

Cons Constru truct ctio ion n of of Sto Store re,, Off Offic ice, e, Secu Securit rity y cab cabin inss and and Miss. Work.

23

3648389

Painting of Stools

RIL

Only painting work for stools received from

Page 47 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Reliance 24

3657993

Chilling Plant At MTF

RIL

Extension of cooling tower, Pipe Rack, and Structural work.

25

3668023

YPO

RIL

All Civil and Miss. Work for YPO visit

26

53511845

Structure work at JEPR

RPL

All structural erection work done at JERP area.

27

53512465

Piping at RTF

RPL

RTF piping work

28

3661103

Extension of MTF to RTF Civil

29

3660940

Mechanical Cryogenic

RPL

Piping work at cooling tower and cryogenic area.

30

53514606

Mechanical

RIL

Crude -312

31

3666310

Mechanical Piping and Fabrication In DTA area

RIL

32

3665201

Pipe straightening

MTF

33

3670009

Mechanical Piping marine work

RRTL

Completion of balance mechanical work in MOU II which is out of scope

34

3670899

Paving at Sulphur Yard

RIL

Paving work at sulphur stack yard near costume office.

35

3671301

Extension of MTF to RTF Mechanical

RIL RIL

All All stru strucctura turall fabr fabric icaation tion and and ere erect ctio ion n work work for for Extension at MTF to RTF corridor

All All Civi Civill work work for for Exten Extensi sion on at MTF MTF to RTF RTF corridor

As per above table Reliance has issued 35 work orders to AFCONS for different areas and different Works. AFCONS has to submit 35 nos. Clint bills for each work order different. All scope involved in each work order is described area wise as follows.  Scope of Work

At Jamnagar Export Refinery Project Total scope of work as per activity wise as follows 

Civil

Work

Concreting

2,60,000Cum 

Structural

Fabrication

8,500MT

Page 48 of 50

AFCONS INFRASTRUCTER LTD. Jamnagar Export Refinery Project (2244) _______________________ _________________________________ _______________________ _______________________ ___________________Project ________Project completion Report Structural Erection 9000MT  

Piping

IM

4,50,000 IM



Piping

ID

5,00,000 ID

 Details of Different Structures

 Process of work executing

 Method of Construction  Time Cycle of Major Activities  Quality Control  Concrete Mix Design  Handing Over to Clint

Page 49 of 50


Page 50 of 50

Final Report MOU contract

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