CHAPTER 5

PLAN OF OPERATION

5.1 Work Flow and Schedule

The Consultant will be acquainted with the physical conditions of the project area
in Cibitung, Bekasi industrial town, especially through engagement in several projects in
the area.

The services will be conducted in the following three (3) stages.

Stage I : Design Stage

Stage II : Procurement Stage

Stage III : Construction Stage

A work flow diagram is illustrated on Figure 3 and tentative work schedule is

shown on Figure 4.

During the period of the Services, the Consultant will prepare and submit to The
Client three (3) copies of Monthly Progress Report within 7 days after the end of each
monthly period covering the work achieved by the Consultant as follows:

(a) Works performed

(b) Problems encountered and proposed solution
(c) Report and documents prepared

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 (d) Schedule for next month
(e) List of correspondence
(f) Record of assignment
(g) Other technical matter

The other reports such as tender documents and technical reports will be
prepared when required.

5.2 Stage I : Design Stage

The total period to be consumed by the Consultant to proceed the design

preparation will be of 2 (two) months.

5.2.1 Work Flow Schedule

In this stage, the Consultant will carry out preliminary design which will take one
months. This preliminary design will be used for processing the Building Permit
Application. Prior to use this design preliminary the Consultant needs to discuss over the
design with the Client.

For second month, the Consultant will prepare detailed design including
preparation of the document tender, bill of quantity and cost estimation.

5.2.2 Detailed Design Report and Document

The Consultant will prepare and submit to the Client three (3) copies of the
Detailed Design Report within 7 days after completion of the detailed design..

The Design Report will consist of the following volumes:

Volume I : Main Report

Volume II : Design Drawings

The Main Report will contain summaries of design concepts, construction

schedule, engineer's construction cost estimate and so on.

(a) Tender Documents

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 The Consultant will prepare the tender documents for the following works.

1) Instruction to Tenderers
2) Conditions of Contract
3) General Specifications
4) Technical Specifications
5) Bill of Quantities
6) Drawings
7) Form of Agreement

It will be necessary to discuss with the Client the basic requirements of the
documents, in particular some specific items relevant to tender and contract procedures,
at the beginning of preparation of the documents.

5.3 Stage II : Procurement Stage

5.3.1 Work Flow Schedule

The Consultant will carry out prequalification to several contractors who

are eligible to construct the factory building. Based on this, the Consultant will carry out
tendering process by inviting the selected Contractors, which include: 1) tender
orientation, 2) tender evaluation and 3) negotiation, contracting and notice to proceed.
All these procedures will be conducted 30 days prior to the contract procurement awards
to the Contractor.

Procurement procedures are illustrated on Figure 2.

5.3.2 Tendering and Contracting

(a) Tender Orientation/Pre-bid Conference

One of the important points for successful tendering is to familiarize the tenderers
with the site conditions, and to get a clear understanding of the drawing, specifications,
etc. The Consultant will arrange a site visit and pre-bid conference to be attended by all
tenderers. The Consultant will prepare in answering inquiries raised by the tenderers
during or after their site visit, and also will prepare the addenda to tenderers as to
clarification on the tender documents.

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(b) Evaluation of Tendering

The Consultant will execute tendering evaluation. The evaluation of tendering

will be carried out by the following steps:

1) Step 1 : Record of tender opening

2) Step 2 : Initial comparison of tender prices
3) Step 3 : Arithmetical check of tenderers
4) Step 4 : Detailed evaluation of tenderers
5) Step 5 : Tender price comparison
6) Step 6 : Evaluation report and approval by the Client

The Consultant will prepare and submit to the Client three (3) copies of the
Evaluation Report within seven (7) days after tender closing date.

(c) Contracting

After tender evaluation and approval, the Consultant will assist the Client in
negotiating a Contract Agreement with successful tenderers and issuing the Letter of
Intent and the Commencement Order.

5.4 Stage III : Construction

5.4.1 Work Flow Schedule

The Consultant will execute the construction supervision during the

commencement order to successful tenderers.

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5.4.2 Construction Time Schedule

The construction time schedule is proposed in consideration of the structure and

facilities, specification, work quantity, work sequence and site condition including
meteorology.

1). Work Quantity

The work quantity of major work is calculated from the rough basic design and
summarized below:

No. Work Item Unit Quantity

1. Common Excavation m3 923

2. Backfilling m3 4,750

3. Concrete m3 1,370

4. Reinforcing bar ton 200

5. Steel Frame ton 296

6. Concrete Spun Pile m 1,400

The above earth volume conversion factors are applied 1.20 and 0.9 in loose and
bank measure.

2). Workable Day and Hour

Average workable day and hour are tentative estimated as below, taking into
account of national holidays.

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 Workable Day

Month Excavation Backfilling Concrete

January 15 11 21
February 17 14 21
March 15 11 21
April 18 11 20
May 20 16 24
June 21 19 25
July 24 22 26
August 23 21 26
September 22 20 25
October 18 15 23
November 13 9 20
December 13 11 21
Total 219 180 273
Average 18 15 23

Standard Working Hour

Work Work Shift Work Hour Net Work

(hr/day) (hr/day)
Excavation 1 8 7.5
Backfilling 1 8 7.5
Concrete 1 8 7.5
Pile 1 8 7.5

3). Construction Equipment

Due to uncomplicated construction work, no heavy equipment needed to be

used, except concrete mixers for concrete work and tamping rammer for compacting
backfill behind the retaining wall. The following table shows the estimated production
rate for the major work.

Work Item Unit Rate Equipment Production Requirement

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 Rate
Excavation m3/day Labor 38 4 groups of 6
Equipment persons
Embankment m3/day Labor 80 Compactor
/Backfilling Equipment
Concrete m3/hour Labor 6.0 Concrete
Equipment Ready Mix
Piling m./day Equipment 100 Driving Pile

4). Construction Period

Based on the above production rate, the tentative construction schedule is

prepared. The construction period of the project is tentative estimated to be 6 months
since issuance of notice to proceed by the Client.

Figure 4 shows the tentative construction schedule.

5.4.3 Point of Attention in the Services

The services should be effective and efficient in all ways to complete the project
works on time.

With due considerations of the knowledge and experience having been

accumulated through the engagement to the similar project in Indonesia, the Consultant
recognize that the attention should be paid for, among others in executing the Services,
on the following points:

(a) Project Management

The construction works of the project will be executed for the part or whole of
the works as the contracts require.

To maintain the progress of the works on schedule in a safe and economical way
and to adjust progress and schedule of each works concerned, well established project
management system must be selected with attention to construction programming,
progress monitoring, inter-contractor meeting, and solution of special technical problem.

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 To assure the project to be completed to quality, to time and to cost, it should be
indispensable to adopt well-prepared organization/communication in first place.

(b) Construction Supervision

By organization of supervisory team to be composed of experienced and qualified

engineers, the Consultant will control and supervise construction activities in terms of
progress, quality and safety of the works.

The Consultant will regularly review the work schedule and examine time to time
the progress of the works to ensure that the actual completion date of the Contract can
be reasonably expected to fall at or before the specified completion date.

The Consultant will also make the best effort to control quality of construction
works by enforcing the Contractor to comply with the specifications of the Contract. As
major activities of quality control, inspections, construction materials and equipment to
be used will be carried out regularly and/or without advance notice to the Contractor.

(c) Engineer Justification

The Consultant will follow Conditions of the Contract, FIDIC on supervision and
managing the Project.

Every Instruction by the Consultant will be supported by the Client Justification,

which will be prepared and submitted to the Client to back up for any decision made by
the Consultant, in order to smoothen the progress, trouble settlement later on.

5.4.4 Construction Supervision

(a) General

Taking the category and time sequences of the Construction Supervision into
consideration, the supervision will carry out the following activities.

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 1) Review and Approval of Contractor's Construction Program
2) Checking and Approval of Contractor's Mobilization and Setting-out
3) Control on Supervision of Progress, Quality and Safety
4) Issuance of Completion and Taking over Certificate
5) Checking and Approval of As-built Drawings
6) Monthly Progress Report and Project Completion Report
7) Assistance to the Client during Guarantee Period

(b) Review and Approval of Construction Program

In view of the nature and extent of the Project, it is vital that systematic schedule
monitoring measures be employed to permit the monitoring of inter-related progress of
various work activities and enable timely action to be taken as necessary to maintain
scheduled progress. For this purpose, the Critical Path Method Network (CPM
Network) scheduling system is the most appropriate method for the schedule of
construction.

Within seven (7) days from the Letter of Intent, the Contractor shall submit a
CPM Network with an overall construction program as a bar chart. The Consultant will
review and approve, as clearly as possible, the Contractor's detailed CPM Network for
the implementation of each major project components. This CPM Network should
clearly indicate the relationship between all the activities and the critical path to follow.

Further, the Consultant will monitor the progress of the works in relation to the
approved construction schedule and update the network diagram for each of the project
components as may from time to time be necessary as a result of progress or changed
circumstances.

In addition, the Contractor will submit the following documents within the
specified time for monitoring the progress of the works:

1) Detailed program in bar chart covering the activities for the first month,
2) Detailed statements of construction methodology,
3) List and operational flow charts of construction plan,
4) Mobilization schedule of construction equipment,
5) Monthly delivery schedule of construction materials,

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 6) Site management organization chart, and
7) Histogram of staff and labor force requirements.

The Consultant will review and approve the above proposed documents based on
the approved Part CPM Network.

(c) Checking and Approval of Contractor's Mobilization and Setting-out

(i) Contractor's Mobilization

The Consultant will issue the Notice to Proceed to the Contractor

indicating the date on which the site take-over will have been duly executed. The
time required for the Contractor to complete the mobilization of personnel and
equipment to the Project after receiving the Notice to Proceed will be seven (7)
days. Special emphasis will be placed on making effective, efficient and
economical use of this specified time period.

The Consultant will manage to keep the project execution on schedule at

the mobilization period of the construction.

The Consultant will arrange review meetings which will be held with the
Contractor shortly after the Award of the Contract. The purpose of these
meetings is to acquaint the Contractor with all project procedures, system of
communication and other matters that are essential for smooth execution of the
Project. During these meetings with the Contractor and all parties concerned
with the performance of the Project, emphasis will be placed on complete
understanding by the Contractor of the Conditions of Contract.

Special care will be given to ensure that necessary information and

instruction have been acknowledged and understood and that arrangements have
been made to meet the program obligations for the construction and all
installation schedules, for the purpose of which 'Correspondence Data Base' as
discussed in the foregoing paragraph will be useful to prepare a check list for
monitoring if reports and documents instructed in the contract documents are
submitted by the Contractor on time.

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 Such matters as billing procedures, security and safety precautions at the
site, procedures related to extra work, work on overtime and other work related
matters will be also discussed.

(ii) Contractor's Setting-out

After issuing the Notice to Proceed, the Contractor will start the works
within seven (7) days. Original points, lines, and levels of reference are given in
the contract documents, which will be confirmed by the Consultant before the
Contractor start with the setting works. The setting-out of the works should be
timely made by the Contractor so as to start the construction works on schedule.
The Consultant will check the setting-out executed by the Contractor, though the
responsibility of accuracy remains on the Contractor.

(d) Control and Supervision of Progress, Quality and Safety

(i) Progress Control

The Contractor's work program will be reviewed by the Consultant at the

initial stage of construction as discussed in the foregoing paragraph. The
program will be updated by the Contractor as directed by the Consultant in the
succeeding stage when the actual progress of the works does not conform to the
program.

The work program submitted by the Contractor will be thoroughly

examined by the consultant to judge whether the construction works are carried
out most effectively and expeditiously to ensure the completion of the project
within the specified contract period.

The Consultant will regularly review the work-schedule to ensure that the
actual completion date of the Contract can be reasonably expected to fall at or
before the specified completion date.

The progress of each of the project components will be indicated on bar

charts at the end of each month and comparison will be made of the anticipated
progress with that actually achieved. These comparisons will be submitted in the

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monthly progress reports to the Client together with the explanations of all
obstacles or delays in the implementation of the appropriate, possible measures to
recover any time lost in the implementation of the Project.

To facilitate the review of the respective work-time schedule of each

Contractor and the overall work-time schedule of the Contractors, coordination
meetings will be regularly held to maintain, expedite and/or adjust the progress,
as discussed in the foregoing paragraph.

The Consultant will also advise the Client about reasons for extension of
the construction time caused by absolutely unavoidable delays, if so requested by
the Contractor, and recommended to the Client for granting of such extension to
the Contractor.

(ii) Quality Control

The Contractor has full responsibility of the quality control for his works.
Routine tests for quality control of the construction therefore be carried out by
the Contractor.

The Consultant will carefully establish organization, procedures, method

and reporting system to be used by the Contractor for his quality control, so as to
ensure that every item of the work being performed by the Contractor will fully
comply with the specifications.

The Consultant will make the most effort on a daily basis to fairly enforce
the Contractor's compliance with the specifications, while at the same time
helping the Contractor in every possible way to accomplish this.

During the course of construction supervision, the Consultant will carry

out the inspection and testing of all materials, plant, and machinery for
incorporation in the Project to ensure their compliance with specifications and
accepted international standards and practice.

1) Test for materials and equipment

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 The test for materials and equipment to be performed by the
Contractors will be described in the technical specifications in the
contract documents. The Consultant will review tests described in the
specifications and tests procedure proposed by the contractors, and
recommended to modify/improve them if necessary. The tests necessary
for quality control of construction are listed below:

- Test of concrete material and compression test of poured

concrete
- Test of equipment and plant

The test will be executed in accordance with the authorized

standard such as ASTM, JIS, AISC and SNI.

2) Inspection Program

One of the Consultant's main responsibility will be the

establishment of a proper inspection and monitoring program. The
Consultant will implement this program to ensure that the Contractor's
operations are monitored and all of construction works are inspected by
qualified personnel who are supervised local professional engineers.

These inspections will be the basis to ensure that quality of works

is in compliance with the specifications and if any work does not comply
with the specifications, the Contractor will be officially informed in
writing to take the necessary correction or adjustment. In this regard, the
Consultant will make every effort to help the Contractor from making
mistake, thereby eliminating as much as possible the need for costly and
time consuming re-work.

The Consultant will also ensure that labor and good equipment are
used for the construction. The Consultant will regularly check the
Contractor's workmanship. Production rates will be checked against the
schedule submitted by the Contractor to conform whether suitable
progress is being made. All construction equipment, temporary works

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 and operations will be continuously reviewed to determine whether
quality, production and safety are adequately maintained.

The Consultant will summarize the results obtained by the

inspection program in the monthly report. If any special problems arise,
the Client will be timely informed by means correspondence, report or
meeting which will include all pertinent details and recommendations for
overcoming the problem.

3) Acceptance or rejection of the work

When any part of the work is completed, the Consultant will

expeditiously perform the required inspection for acceptance. If it is
found that the work has been satisfactorily completed in accordance with
the specifications and other applicable parts of the contract documents,
the Consultant will assist the Client to make a formal acceptance.

Unacceptable work which does not conform to the requirements

of the specifications, whether it is caused by the result of poor
workmanship, use of defective material, damaged by carelessness or any
other reasons, will be rejected with the Contractor being notified in
writing as to the reasons of rejection. However, prior to this, the Client
will be informed of the circumstance pertaining to any work that is to be
rejected.

(iii) Safety Control

Safety is considered to be a paramount important issue for any type of

construction work. The Consultant will require that the Contractor takes all
possible measures to prevent falling accident as well as harm to both villagers and
his own labor force.

The safety control to be taken during construction will consist of

establishment of safety control organization, and execution of safety meetings
and safety program.

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1) Safety control organization

The Consultant will manage a safety control organization which

will be composed of local security authorities. The Contractors will be
required to establish a safety committee among them and appoint each
one of their senior officials as the safety officer. He will be directly
responsible for setting up and implementing the safety committee and
program by the Contractor. The Contractor's safety committee will
submit his safety organization and detailed safety program and monthly
activities for safety control to the Consultant and the Client for review.

2) Safety meeting

Immediately after commencement of the mobilization by the

respective Contractor, the Consultant will hold a safety meeting attended
by the Client, a regional safety authorities, and the Contractor to receive
information about local safety and traffic regulations which will involve
the transportation of heavy equipment and daily life of the project
personnel outside the construction area. In this meeting, principal
subjects will be discussed for the organization of the Contractor's safety
committee and preparation of their program which will comply with
applicable Indonesian safety regulation.

3) Safety program

The safety program will be reviewed by the Consultant. The

safety program prepared by the Contractors before and after organization
of the safety committee shall cover the following major items:

- Transportation through public roads

- Traffic control in the Project area
- Stability of natural and excavated slopes
- Construction works at loading and unloading
- Construction works in water
- Welding works
- Lighting for night

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 Control to minimize environmental impact during the construction
works also one of the important issue. The Consultant will supervise the
construction works stressing on preventive measures on noise and
vibration caused by equipment and treatment of dirty wastewater.

(e) Recording of Construction Activities

The Consultant will record the construction activities which will be necessary to
prepare the completion report, including:

Monitoring;

- monitoring with analysis about 'Real Time Construction Control

- climate records including rainfalls, temperatures and winds, and
- photographs

Drawings;

- construction drawings, and

- as-built drawings

Consultant Activities;

- actual assignment of experts and supporting staff members,

- correspondences, and
- meeting minutes

Contractor's Activities;

- actual progress of works,

- resources mobilization, and
- construction methods as adopted

Quality Control;

- site inspection records

- site and laboratory test records

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 Safety Control;

- activity records for safety assurance, and

- accident records

Events;

- participate in meetings with leading institution,

- ceremonial events

(f) Assistance During Guarantee Period

During the Period of Guarantee, the Contractor will guarantee that the works
will be as specified and will be free from defects in his design, workmanship and
materials. If within the period, the works fail to meet the provisions of this guarantee,
the Contractor will be required to promptly correct any defects, repair or replace of all
defective parts or materials.

The Consultant will assist the Client during the whole period of guarantee to
inspect and recommend to the Client any repair work to be instructed to the Contractor
and supervise such execution.

When the Period of Guarantee after issuance of Taking-Over Certificate for the
works has expired and the Contractor has fulfilled all his obligation under the Contract
and the parties concerned have confirmed the fulfillment through joint inspection at site,
the Consultant, after approval by the Client, will issue Defect Liability Certificates.

(g) Reporting and Recording

(i) Monthly Progress Report

The Consultant will prepare and submit to the Client three (3) copies of
the monthly progress report covering the work achieved by the Contractor in the
previous month, significant problems encountered, deviation from the original
work schedule, if any, as well as the activities of the Consultant.

The report will be presented mostly in a computerized form to cover:

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- Actual construction progress made during the month,
- Review of construction progress such as factors affecting the
progress, measures or recommended-action to avoid future delays
and measures to recover any time lost,
- Contractor's equipment used during the month,
- Technical problems encountered during the month,
- Design review such as issuing construction drawings and major
design changes.

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(ii) Project Completion Report

The Consultant will prepare and submit to the Client three (3) copies of
the Project Completion Report within one (1) month after issuance of the
Completion Certificate for the Contractor.

The report summarizes all the activities of the Consultant during the
construction supervision.

The report will contain the following items:

- Summary of all completed works carried out under the Contract

- Summary of the progress of construction
- Summary of any finding and circumstances encountered during
the course of construction
- Summary of all tests in the site

(iii) As-built Drawings

The Consultant will check and submit to the Client all originals of the as-
built drawings, prepared by the Contractor within one (1) months of the issue of
the Taking-Over Certificate. Further, the Consultant will prepare the A3 size
drawings which will be selected among the as-built drawings as a part of
completion report.

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