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HomeMy WebLinkAboutTown Creek Hydro-Project specific quality plan submittal 7-20-2012Town Creek Hydroelectric Project Improvements and Repairs Project -Specific Quality Plan Submittal By McMillen, LLC Version Date: July 20,2012 Page 1 McMillen Town Creek Hydroelectric Project Improvements and Repairs version July 20, 2012 McMillen, LL C Quality Manual Version: July 20, 2012 Issue Date: July 20, 2012 Approved by: Uncontrolled Copy When Printed rage z McMillen Town Creek Hydroelectric Project Improvements and Repairs version Jury m, 2012 1. MCMILLEN QUALITY POLICY McMillen is committed to quality. Our objective is to safely deliver 100 percent complete construction projects that meet all contract and customer expectations the first time, every time. Our commitment to quality means: • Every McMillen employee is responsible for fully implementing and complying with all provisions of the McMillen Quality Manual. • Our quality standards meet or exceed all applicable regulations, codes, industry standards, and manufacturer specifications as well as with our customers' contract and individual requirements. • We stand behind our work. We inspect every phase of construction so that our projects are built right. Should problems be found, we correct them. • We are always improving. All employees receive regular training to make systematic improvements in quality performance. We conduct our work with dignity and respect for the customer, our subcontractor partners, and ourselves. Page 3 McMillen Town Creek Hydroelectric Project Improvements and Repairs version July 20, 2022 B Table of Contents 1. MCMILLEN QUALITY POLICY.........................................................................................................................3 2. MCMILLEN QUALITY SYSTEM OVERVIEW ......................................................................................................6 3. MCMILLEN QUALITY SYSTEM FRAMEWORK .................................................................................................7 4. QUALITY SYSTEM MANAGEMENT AND RESPONSIBILITIES .......................................................................... 10 4.1 OVERVIEW........................................................................................................................................................ 10 4.2 MCMILLEN QUALITY POLICY................................................................................................................................ 10 4.3 MCMILLEN QUALITY SYSTEM FRAMEWORK.............................................................................................................10 4.4 QUALITY RESPONSIBILITIES ................................................................................................................................... 11 4.5 EMPLOYEE QUALIFICATIONS................................................................................................................................. 14 4.6 QUALITY SYSTEM PERFORMANCE MEASURES ........................................................................................................... 15 4.7 EXCEPTIONS ...................................................................................................................................................... 15 S. PROJECT QUALITY PLAN..............................................................................................................................17 5.1 OVERVIEW ........................................................................................................................................................ 17 5.2 PROJECT MANAGER APPOINTMENTS...................................................................................................................... 17 5.3 PROJECT ORGANIZATION CHART........................................................................................................................... 18 5.4 PROJECT QUALITY TRAINING PLAN......................................................................................................................... 21 6. CONTRACT SPECIFICATIONS.........................................................................................................................24 6.1 OVERVIEW........................................................................................................................................................ 24 6.2 CONTRACT TECHNICAL SPECIFICATIONS.................................................................................................................. 24 6.3 CONTRACT DRAWINGS........................................................................................................................................ 24 6.4 CONTRACT WARRANTY ........................................................................................................................................ 25 6.5 CONTRACT REVIEW AND APPROVAL....................................................................................................................... 25 7. DESIGN CONTROL.......................................................................................................................................26 7.1 OVERVIEW........................................................................................................................................................ 26 7.2 DESIGN INPUT REQUIREMENTS REVIEW.................................................................................................................. 26 7.3 PROJECT DESIGN QUALITY PLAN........................................................................................................................... 27 7.4 DESIGN REVIEWS AND INPUT................................................................................................................................ 27 7.5 DESIGN OUTPUT VERIFICATION AND APPROVAL....................................................................................................... 28 8. PROJECT -SPECIFIC QUALITY STANDARDS....................................................................................................29 8.1 OVERVIEW........................................................................................................................................................ 29 8.2 REGULATORY CODES AND INDUSTRY STANDARDS.....................................................................................................29 8.3 MATERIAL AND EQUIPMENT SPECIFICATIONS...........................................................................................................30 8.4 MCMILLEN QUALITY STANDARDS...........................................................................................................................31 9. PROJECT PURCHASING................................................................................................................................33 Page 4 McMillen Town Creek Hydroelectric Project Improvements and Repairs Verslon IulY 20, 2012 9.1 OVERVIEW........................................................................................................................................................33 9.2 PURCHASE ORDER QUALITY SPECIFICATIONS............................................................................................................33 9.3 QUALIFICATION OF SUPPLIERS, SUBCONTRACTORS, AND DEPARTMENTS........................................................................34 9.4 PROJECT PURCHASE ORDER APPROVALS................................................................................................................. 34 10. CONSTRUCTION PROCESS CONTROLS.........................................................................................................35 . 10.1 OVERVIEW.................................................................................................................................................... 35 10.2 TASK PREPARATORY QUALITY PLANNING............................................................................................................ 35 10.3 WEEKLY PLANNING AND COORDINATION MEETING..............................................................................................36 10.4 PROCESS CONTROL STANDARDS.......................................................................................................................37 10.5 DAILY QUALITY CONTROL REPORT.................................................................................................................... 38 10.6 MONTHLY QUALITY CONTROL REPORT..............................................................................................................38 11. INSPECTIONS AND TESTS............................................................................................................................40 11.1 OVERVIEW....................................................................................................................................................40 11.2 INSPECTION AND TEST STATUS.........................................................................................................................40 11.3 REQUIRED QUALITY INSPECTIONS AND TESTS......................................................................................................40 12. NONCONFORMANCES AND CORRECTIVE ACTIONS.....................................................................................44 12.1 OVERVIEW...................................................................................................................................................44 12.2 NONCONFORMANCES.....................................................................................................................................44 12.3 CORRECTIVE ACTIONS.....................................................................................................................................45 13. PREVENTIVE ACTIONS................................................................................................................................. 46 13.1 OVERVIEW...................................................................................................................................................46 13.2 IDENTIFY PREVENTIVE ACTIONS FOR IMPROVEMENT.............................................................................................46 13.3 TRAIN PREVENTIVE ACTIONS FOR IMPROVEMENT.................................................................................................47 14. RECORD AND DOCUMENT CONTROLS .......................................... 48 14.1 OVERVIEW...................................................................................................................................................48 14.2 QUALITY MANUAL.........................................................................................................................................48 14.3 RECORDS CONTROL.........................................................................................................................................48 14.4 DOCUMENT CONTROL....................................................................................................................................49 EXHIBIT A Page 5 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 2. MCMILLEN QUALITY SYSTEM OVERVIEW McMillen documents its Quality System by four integrated and coordinated components. 1. The McMillen Quality Framework is a brief description of key functions of the McMillen Quality System. 2. The Quality Manual documents how McMillen institutes its construction quality management process as a company. 3. The Standard Operating Procedures document work steps and forms for recording operation of the Quality System. 4. The Site -Specific Project Quality Plan provides details of how McMillen will apply its Quality System to meet the unique requirements of each specific construction project. The Quality Manager approves all Quality System documents before they are released. McMillen bases its Quality System on ISO 9001:2008 international quality assurance standards. The system addresses each ISO 9001:2008 policy requirement. The McMillen Quality System conforms to The Federal Transit Administration Quality Assurance and Quality Control Guidelines (2002) which are based on ISO 9001. The McMillen Quality System conforms to USACE Quality Control Division 01- General Requirements (01/08). The McMillen meets the standard American Institute of Architects (AIA) MASTERSPEC Division I Section 01400 Quality Assurance and Quality Control requirements. The McMillen Quality Manual is copyright by Caldeira Quality, LLC and McMillen Page 6 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 3. MCMILLEN QUALITY SYSTEM FRAMEWORK McMillen has company -wide standards to which all quality -related activities must conform. This Quality Framework defines the standards for the key elements of the McMillen Quality System, which include the following: 1. Quality and safety management 2. Design controls 3. Standards and specifications 4. Employee qualifications 5. Subcontractor and supplies qualifications 6. Field Inspections 7. Control of nonconformances 8. Prevention of nonconformances The McMillen Quality System meets requirements of ISO 9000:2008, U.S. Transit Authority QA/QC guidelines, and USACE Quality Control Requirements (01/08). McMillen adheres to the following guidelines: 1. Quality management. McMillen fully integrates its quality management system into the organizational structure and performance management systems for each project. We: • Appoint a Quality Manager, Project Superintendent, and Project Manager to each project, each with well- defined quality responsibilities and the authority to carry them out. • Maintain a quality manual with policies and procedures that document how McMillen carries out each item of the Quality Framework. • Prepare a quality plan that specifies how McMillen applies its Quality System to each project and each phase of construction within the project. • Prepare a project communication plan of meetings and information that will be shared among project participants to facilitate project communication and coordination. • Ensure company -wide implementation of the McMillen Quality System. We assess conformance, address deficiencies, and a follow-up. • Maintain key quality records including McMillen quality standards, qualification of employees, qualification of subcontractors and suppliers, field inspections, training activities, policy decisions, improvement actions, and daily project activities. Page 7 McMillen Town Creek Hydroelectric Project Improvements and Repairs Wr.[.n Jul, 20, 2012 • Measure quality performance on every project, and use this information to improve the performance of departments, employees, subcontractors and suppliers. 2. Design Controls. McMillen ensures that the designs fulfill the intended goals of all stakeholders. We: • Ensure that designs have well defined expectations, are clearly understood, and the necessary details are provided • Involve stakeholders for input and feedback from stakeholders at planned milestones throughout the design process and systematically incorporate their input into the design process • Plan out each step in the design process and use it to control activities, persons responsible, and deliverables • Ensure that completed designs meet regulatory requirements and customer expectations 3. Standards and specifications. McMillen clearly defines standards and specifications that apply to each project. We: • Comply with all relevant codes and industry standards. • Integrate all customer contract requirements into the project quality plan including drawings, specifications, submittals, and addendums. • Extend the project quality plan to include current versions of all applicable standards and specifications including regulations, codes (including local amendments), industry standards, and product installation instructions. • Supplement the contract and published standards with McMillen quality standards as required to assure the highest quality results. Company standards that deviate from published standards are approved by the quality manager. • Specify quality and certification requirements for materials and equipment that affect quality. • Provide field personnel with jobsite access for all project -related quality standards and specifications. 4. Qualified employees. McMillen specifies employee qualification requirements and evaluates employee capabilities to ensure that only knowledgeable, capable employees carry out the planning, execution, and control of our projects. We: • Document employee qualification requirements including licensing requirements, training qualifications, responsibilities, and authority for each job position. • Train field employees on construction quality standards and procedures. • Validate employee capabilities before they are assigned to carry out qualityjob responsibilities. • Review ongoing employee qualifications and evaluate quality performance as part of the employee performance management process. S. Qualified subcontractors and suppliers. McMillen specifies quality requirements for subcontractors and suppliers and evaluates their capabilities to ensure that our subcontractors and suppliers consistently deliver McMillen standards for quality. We: • Specify materials that meet code requirements. Specify subcontractor and supplier qualification requirements including licensing requirements, compliance with specific quality standards, responsibilities, qualification of personnel and quality improvement processes. Page 8 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 • Validate subcontractors' and suppliers' capabilities to meet project requirements at planned production levels. • Maintain records showing validation of subcontractors' and suppliers' capabilities. • Verify ongoing subcontractors' and suppliers' qualifications. • Require consistent conformance to construction quality standards and procedures. 6. Inspections. McMillen inspection processes ensure that all construction activities comply with the documented standards and specifications. We: • Develop project inspection and test plans that identify required inspections and tests at key milestones during construction and closeout. • Identify required checkpoints for critical quality requirements for each inspection. • Conduct a series of inspections for each phase of construction; before work begins, at first article completion, while work is in process, and at completion. • Use third party inspectors to verify conformance to critical quality standards when a re -inspection cannot be repeated at job completion. The frequency of third party inspections is commensurate with the needs of the project. 7. Control of nonconformances. McMillen nonconformance control processes ensure that we prevent all nonconformances from cover-up, inadvertent use, and then correct them. We: • Mark the nonconformance item to clearly identify it for correction. • Document nonconformance items on an inspection record. • Correct nonconformances in a timely manner. • After correction: validate the correction, mark the inspection item as repaired, and document closure of the item on the inspection record. • Require customer and managerial approval process for accepting any nonconforming items. 7. Prevention of nonconformances. McMillen's processes for preventing recurring nonconformances ensure company -wide quality performance improvements. We: • Track nonconformance data found during inspections and warranty repairs. • Identify and prioritize nonconformance items for future prevention. • Address nonconformance causes systematically by updating standards and specifications; improving process and employee capabilities; setting new requirements for subcontractors and suppliers; and enhancing the effectiveness of field and third party inspections. • Train employees, subcontractors, and suppliers on methods and procedures that prevent nonconformances. • Validate actions taken to prevent nonconformances and their effectiveness. Page 9 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 4. QUALITY SYSTEM MANAGEMENT AND RESPONSIBILITIES SYSTEM OF PERSONAL QUALITYACCOUNTABILITY 4.1 OVERVIEW Responsibilities for quality are specified not only for compliance with policies and procedures but also so that decisions are based on principles that ensure quality. Documented responsibilities ensure that expected behaviors are communicated throughout the company rather than left to discretionary interpretation. 4.2 MCMILLEN QUALITY POLICY Quality is everyone's responsibility. The President holds everyone in the organization personally accountable for adhering to the McMillen Quality System policies and procedures. The McMillen Quality Policy describes the McMillen commitment to quality and reinforces compliance with the Quality System. The President communicates the Quality Statement message throughout the company so that all employees understand their respective quality responsibilities. The President reviews the McMillen Quality Statement with all employees at least annually. The Quality Manager distributes a copy of the McMillen Quality Statement to all employees and posts it in all offices. 4.3 MCMILLEN QUALITY SYSTEM FRAMEWORK This Quality Framework defines key elements of the McMillen Quality System to which all quality -related activities must conform. The Quality Manager communicates the Quality System Framework throughout the company so that all employees understand their respective quality responsibilities. The Quality Manager reviews the McMillen Quality System Framework with all employees at least annually. Page 10 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 The Quality Manager distributes a copy of the McMillen Quality System Framework to all employees and posts it in all offices. 4.4 QUALITY RESPONSIBILITIES The Quality Manager defines quality -related responsibilities for keyjob positions. The Quality Manager lists supplemental job positions on the Project Quality Plan when a project requires them, yet they are not specified in the contract technical specifications. 4.4.1 President Quality Resoonsibilities While everyone is responsible for quality, the President is the one person in the company ultimately responsible for quality. Regardless of other duties, quality responsibilities of the President include: • Ensuring that each employee understands his or her quality responsibilities as well as McMillen quality policies • Establishing company quality policies and objectives. • Conducting management reviews of the McMillen Quality System. • Ensuring the availability of necessary resources and information for effective operation of the Quality System • Demonstrating commitment to the McMillen Quality System and its integrity • Ensuring achievement of McMillen quality objectives • Continuously improving the Quality System 4.4.2 Quality Manager Responsibilities The Quality Manager is responsible for ensuring the overall effectiveness of the Quality System. Regardless of other duties, the Quality Manager is responsible for: • Fully implementing all provisions of the McMillen Quality System and related documents. • Ensuring company -wide effectiveness of the Quality System • Ensuring that the Quality System is established and implemented by persons doing work that impacts quality • Ensuring that the Quality System is maintained • Ensuring company -wide conformance to Quality System requirements • Acting as McMillen liaison with parties outside the company on matters relating to quality • Reporting to senior management on performance of the Quality System, including needed improvements • Review and approval of all Quality System documents • Review and approval of all Quality System records • Review and approval of quality -related contract submittals • Managing all project inspection and quality control activities Page 11 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 The Quality Manager has the authority to: • Stop work when continuing work may adversely affect quality or cover up a defect • Prevent the use of materials that may adversely affect quality or cover up a defect • To direct the removal and replacement of any non -conforming work or material by McMillen, any subcontractor, or any supplier. • Suspend work and/or supply of materials by any staff member, subcontractor personnel, or supplier as deemed necessary to assure quality results. 4.4.3 Project Manager Quality Responsibilities The Project Manager is the one person responsible for management of a specific project. Regardless of other duties, the Project Manager is responsible for: • Demonstrating commitment to the McMillen Quality System and its integrity • Ensuring achievement of project quality objectives • Providing adequate resources for effective operation of the Quality System on the project • Ensuring that each project employee understands his or her quality responsibilities as well as McMillen quality policies • Conducting management reviews of the McMillen Quality System. • Ensuring the availability of necessary resources and information for effective operation of the McMillen Quality System The Project Manager has authority to: • Stop work when continuing work adversely affects quality or cover up a defect • Prevent the use of materials that would adversely affect quality or cover up a defect • To direct the removal and replacement of any non -conforming work or material by McMillen, any subcontractor, or any supplier. • Suspend work and/or supply of materials by any staff member, subcontractor personnel, or supplier as deemed necessary to assure quality results. 4.4.4 Superintendent Quality Responsibilities A Superintendent verifies that work performed by subcontractors and McMillen work crews conforms to McMillen quality standards. The President appoints one or more Superintendents for each project. Work steps for maintaining records of the Superintendent appointments are specified in Standard Operating Procedure 5.2.1.4. A Superintendent has specific responsibilities for: • Ensuring that construction meets government regulatory and code requirements, customer requirements, contract requirements, contract technical specifications, contract drawings, approved contract submittals, and company quality standards and specifications • Ensuring that subcontractors begin work in accordance with McMillen start -work policies Ensuring that subcontractors receive a notice to work only when conditions will not adversely affect quality results Page 12 McMillen Town Creek Hydroelectric Project Improvements and Repairs Verslon July 20, 2011 • Conducting inspections, tests, and recording findings • Accurately assessing subcontractor quality and on -time performance • Ensuring that quality standards are achieved before approving subcontractor or work crew completion of work The Superintendent has the authority to: • Stop work when continuing work may adversely affect quality or cover up a defect • Prevent the use of materials that may adversely affect quality • Direct the removal or replacement of any non -conforming work or material • Suspend work and/or supply of materials as deemed necessary to assure quality results 4.4.5 Purchasing and Estimating Manager Quality Responsibilities The Purchasing and Estimating Manager ensures that designs conform to customer contract requirements and McMillen quality standards. A Purchasing and Estimating Manager has specific responsibilities for ensuring that shop drawings and product selections meet government regulatory and code requirements, customer requirements, contract requirements, contract technical specifications, contract drawings, approved contract submittals, and company quality standards and specifications. The Purchasing and Estimating Manager has authority to: • Stop work when continuing work may adversely affect quality or cover up a defect • Prevent the use of materials that may adversely affect quality • Direct the removal or replacement of any non -conforming work or material • Suspend work and/or supply of materials as deemed necessary to assure quality result 4.4.6 Design Manager Quality Responsibilities The Design Manager is the one person responsible for designing a specific project. Regardless of other duties, the Design Manager is responsible for: • Performing design work and/or overseeing the work of a design subcontractor. • Ensuring achievement of project design quality objectives Ensuring that each design employee understands his or her quality responsibilities as well as McMillen quality policies The Design Manager has authority to: • Stop work when continuing work adversely affects quality or cover up a design flaw • Prevent the use of designs that would adversely affect quality or cover up a defect Page 13 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 4.4.7 Quality Responsibilities of All Employees All employees have quality responsibilities that include: • Fully implementing and complying with all provisions of the McMillen Quality Manual. • Meeting or exceeding all applicable regulations, codes, industry standards, and manufacturer specifications as well as meeting or exceeding our customers' contract and individual requirements. All employees have the authority to: • Stop work when continuing work may adversely affect quality or cover up a defect • Prevent the use of materials that may adversely affect quality 4.5 EMPLOYEE QUALIFICATIONS 4.5.1 Employee Qualification Requirements The Quality Manager defines quality -related requirements for each job position that affects quality including: • Scope of work • Standards of performance • Required credentials • Required skills and abilities • Required knowledge • Training requirements • Quality responsibilities • Quality authority Work steps for defining employee qualification requirements are specified in Standard Operating Procedure. 4.5.2 Employee Qualification Assessments The Quality Manager qualifies employee capabilities to ensure that they are capable of completely carrying out their assigned quality responsibilities. The Quality Manager evaluates employee qualifications before assigning him or her quality -related job responsibilities. Employee qualifications are based on demonstrated capabilities and additional requirements for knowledge, skills, and credentials relevant to the job. The Quality Manager also evaluates independent contractor personnel on the same standards that apply to employees. Work steps for maintaining personnel qualification records are specified in Standard Operating Procedure 4.5 Employee Qualification. Page 14 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 4.6 QUALITY SYSTEM PERFORMANCE MEASURES Company -wide quality performance measures evaluate the effectiveness of the Quality System. The following indicators are the primary measures of quality performance: • Number of customer correction items at project closeout inspection • Customer satisfaction feedback At least annually, senior managers evaluate McMillen quality performance and set improvement goals. 4.6.1 Customer Satisfaction Performance Measures McMillen surveys all customers 45 to 60 days after project completion on whether customer quality expectations are being met, and to what extent. The Quality Manager analyzes customer satisfaction data to determine opportunities for improvement. Items of customer dissatisfaction are treated as non -conformances and addressed accordingly. 4.7 EXCEPTIONS Exceptions to the McMillen Quality System and customer contract requirements are tightly controlled: Exceptions to compliance to contract specifications are approved only by the customer and the Quality Manager. • Exceptions to the McMillen Quality System not specified by contract requirements are approved only by President or the Quality Manager. Exceptions are recorded in memoranda, change orders (Section 6.4.8 Change Order), or otherwise clearly documented. Page 15 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 McMillen Project Quality Plan Form Version July 20, 2012 Project ID Project Name Preparer Date 12-013 Town Creek Hydroelectric Project Improvements and Repairs Matt McDowell lI 7/20/12� ` I I y`s� Included documents and appointments: 1. McMillen Quality Manual version date: July 20, 2012 2. McMillen Ope rating Procedures Version date: July 20, 2012 3. Project organization chart form: Prepared date: 7/20/12 4. Quality Manager appointment. Name: Loren Jalbert 5. Project Manager appointment Name: Jason Starner 6. Superintendent(s)appointment Name: Loren Jalbert 7. Detail Leader appointment Name: Dean clerk R. Quality TrainingPlanform Prepared date:7120112 9. Project Regulatory codes and industrystandardsform Prepared date::?@0/12 10. Quality Controlled Construction Tasks Form Prepared date:: 7/20N2 11. Project Inspection and test plan Prepared date:: 7/20/12 Page 16 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 S. PROJECT QUALITY PLAN 5.1 OVERVIEW After McMillen is awarded a contract to carry out a construction project, the President forms a project team consisting of a Quality Manager, Project Manager, and Superintendent. First, the Quality Manager develops a set of project specifications that align project requirements with regulations, industry standards, product instructions, and McMillen quality standards. Then the Project Manager plans the construction process that the Quality Manager supplements with both a coordinated Project Quality Plan and an Inspection and Test Plan. The Quality Manager evaluates personnel, subcontractors, materials, and suppliers, and ensures that only those that are capable and qualified are included on the project. Training is provided to ensure that all personnel involved in the project understand their quality responsibilities and authorities. The Superintendent monitors execution of the construction process through a series of inspections before, during, and at the completion of each task. Functional tests are performed as required. Nonconformances are systematically controlled and corrected. Improvements are made to prevent other occurrences. 5.2 PROJECT MANAGER APPOINTMENTS The President appoints to each project: • A Quality Manager with the job responsibilities and authority described in section 4.4.2 Quality Manager Responsibilities. • A Project manager with the job responsibilities and authority described in section 4.4.3 Project Manager Quality Responsibilities. • Superintendent with the job responsibilities and authority described in section 4.4.4 Superintendent Quality Responsibilities • A Purchasing and Estimating Manager with the job responsibilities and authority described in section 4.4.5Purchasing and Estimating Manager Quality Responsibilities Prior to the appointment, the President verifies each person's capabilities as specified in Standard Operating Procedure 4.5 Employee Qualification. Work steps for maintaining the qualification and appointment of project managers are specified in Standard Operating Procedure 5.2 Project Manager Appointments. Page 17 McMillen Town Creek Hydroelectric Project Improvements and Repairs VuW.n,wy 20. 2012 5.3 PROJECT ORGANIZATION CHART The President defines the organization chart for a specific project. The organizational chart includes job titles, names of assigned personnel, and organizational and administrative interfaces with the customer. McMillen Project Organization Chart Form Version July 20, 2012 Project ID Project Name - Preparer Signature Date 12-013 Town Creek Hydroelectric Project Matt McDowell I 7/20/12 pairs Improvements and Re ° Indicates project qualification as required by Quality Manual Section 4.5 Employee Qualifications Page 18 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 5.4 PROJECT QUALITY TRAINING PLAN The Quality Manager ensures that all employees receive training relevant to their quality responsibilities. The Quality Manager ensures that all subcontractors receive training on relevant elements of the McMillen Quality System, Project Quality Plan, and quality standards. The Quality Manger identifies the training needs of all personnel performing activities that affect quality. Training topics may include: • The McMillen Quality System • The McMillen Quality Policy • Specific operating policies identified in the Quality Manual • Specific quality standards cited in the Quality Manual, or project documents, or records • Specific quality standard operating procedures • Customer operation and maintenance training The Quality Manager identifies the topic or subset of each topic. 5.4.1 Customer training on operation and maintenance During the project closeout phase, the Quality Manager trains customers on the operation and maintenance of the completed project, including: • A review of as -built drawings • Installed product identification and warranty requirements • A review of documentation regarding start-up, operation, and shutdown • Normal adjustments and maintenance requirements • Limitations on use 5.4.2 Proiect Training Records Upon completion of training, the Quality Manager maintains a record of the training including: • A description of the training • Training date, start and finish time • Names of personnel whose training effectiveness is validated Work steps for maintaining records of project quality training are specified in Standard Operating Procedure 5.8.2 Project Training Records. Page 21 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 x x x x 7UIW010-4 x x Ix x LL _ � �aBeuew R N BUIIBWIIs3 x d v o pue x x m Buiseyajnd N •� o #uaP x a. ualuuadng x x x `m o JaBeuew x MfOAd x x d t tf 4ua x x x E o @ Z d t p O p u N v � a" p _ = wi c c v o� 3 o v c d E a T c N O E d w oq d C O v a v vLu q ~ 3 c E 'i72 n. + U Cf � j 00 U in c I v z x x x x x x x x x x IX X X X X X X X x X X X X X X x x x x x x x x x x X X X X X X X X X x O u O O N @ C 0 y 76 u O m O 00 U N U y C U N LO U v n O Z O u a V N O O C O U N p GOO 'c F U 6. CONTRACT SPECIFICATIONS DEFINE CUSTOMER QUALITY EXPECTATIONS 6.1 OVERVIEW Fulfilling customer contract expectations is a primary objective of the McMillen Quality System. To ensure that customer expectations will be fulfilled, McMillen clearly defines the requirements for each contract before it is approved. The Project Manager ensures that the information in customer contracts clearly defines customer expectations and that the necessary details are provided to set requirements for construction. 6.2 CONTRACT TECHNICAL SPECIFICATIONS The Project Manager obtains contract technical specifications from the customer. For each specific contract, the Quality Manager lists supplemental technical specifications on the Contract Quality Plan when they are not otherwise specified by the contract or the approved drawings. Superintendents have jobsite access to contract technical specifications for the construction activities they supervise. All McMillen activities comply with the contract technical specifications. 6.3 CONTRACT DRAWINGS The Project Manager obtains customer supplied drawings that have been approved by local government regulators. Superintendents have jobsite access to approved architectural drawings for the construction they supervise. All McMillen activities comply with the drawing details and specifications cited in the drawings. 6.3.1.1 As-builtRed-lineDrawings As the project progresses, the Superintendent will mark the original design drawings to indicate as -built conditions including changes to specified materials, dimensions, locations, or other features. Page 24 McMillen Town Creek Hydroelectric Project Improvements and Repairs Verslon July 20, 2012 6.4 CONTRACT WARRANTY The Project manager ensures that customer contracts clearly specify warranty coverage including: • Scope • Starting date • Duration The Project Manager ensures that customer contracts also clearly specify owner responsibility for: • Restrictions of use • Maintenance requirements • Exclusions for customer supplied materials or equipment • Timely notification of problems 6.5 CONTRACT REVIEW AND APPROVAL The President conducts customer contract reviews to ensure that: • Customer requirements and specifications are complete • Customer requirements and specifications are compatible with the relevant regulations, McMillen quality standards, and Quality System requirements • McMillen has the capability to deliver the completed project in the time allotted Before construction begins, the President makes sure that all contract requirements are clearly understood, all discrepancies are resolved, and all requirements are agreed upon. Once these requirements are met, the President signs the contract. Page 25 McMillen Town Creek Hydroelectric Project Improvements and Repairs versian JWy 20, 2012 7. DESIGN CONTROL 7.1 OVERVIEW McMillen ensures that the designs have well defined specifications, stakeholders have input as the designs progress, qualified personnel carry out the design work, and final designs are verified to meet all contract and regulatory requirements. Design control applies to architectural and engineering design. Construction process controls apply to approved designs that have additional detail provided by shop drawings, product selections, or requests for information. 7.2 DESIGN INPUT REQUIREMENTS REVIEW The Design Manager ensures that the information in design inputs clearly defines customer expectations and that the necessary details are provided to set requirements for design. The Design Manager obtains design specifications from the customer and conducts a customer design input review to ensure that: • Customer design input requirements and specifications are complete • Design process review milestones are specified when necessary • Customer design output requirements and specifications are complete for review milestones as well as the completed design • Customer design requirements and specifications are compatible with the relevant regulations, McMillen quality standards, and Quality System requirements • McMillen has the capability to deliver the completed design in the time allotted The Design Manager lists supplemental design specifications that supplement customer specifications when they are needed to ensure a quality design. Before design work begins, the Design Manager makes sure that all design requirements are clearly understood, all discrepancies are resolved, and all requirements are agreed upon. Once these requirements are met, the Design Manager approves the design input. Work steps for recording Design Manager approvals are specified in Standard Operating Procedure 7.2 Design Input Requirements . Page 26 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 7.3 PROJECT DESIGN QUALITY PLAN Before design work begins, the Design Manager prepares a project -specific plan that includes: • A listing of key project personnel specific design responsibilities and authority (see Section 5.2 Project Manager Appointments) and the qualification of key design personnel to perform assigned design responsibilities (see Section 4.5 Employee Qualifications). • Who will verify and approve the design input specifications before design work begins (see Section 7.2 Design Input Requirements ). • A listing of company and customer stakeholders, reviews they will participate in, and how their input will be used to amended design requirements. The project organization chart Includes interfaces between various groups and personnel for producing and reviewing the design (see Section 5.3 Project Organization Chart) • Design output specifications, including required drawings, and engineering calculations (see Section 7.5 Design Output Verification and Approval) • A listing of who will perform design output verification activities and the criteria they will use. • The sequence of design work tasks and schedule The Design Manager reviews the design process project plan with the customer and other interested parties. The customer approves the plan after any discrepancies are resolved and the plan is agreed upon. Design work may begin only after the customer approves the plan. Work steps for preparing and approving a Design Process Quality Plan are specified in Standard Operating Procedure 7.2 Design Input Requirements . 7.4 DESIGN REVIEWS AND INPUT The Design Manager holds review meetings with interested parties at key design milestones. The Design Manager identifies the key design milestones, the design output required for the review, and a list of reviewers. Two design reviews are required: one is a pre -design review and the other is the final design review. The Design Manager identifies other design reviews necessary to ensure a quality result. Design reviews may be specified at the completion or design work tasks, site assessments, preliminary engineering, preliminary design, percentage completion stages, and on a calendar schedule. The Design Manager lists customer and company reviewers appropriate for each design milestone. Reviewers may include persons that have a stake in any of the following: quality, safety, constructability, scheduling, maintenance, purchasing, estimating, or cost control. Work steps for recording review participants are specified in standard operating procedure 7.4 Design Reviews and Input. At each review, the Design Manager records reviewer recommendations for amendments to the design specifications. The Design Manager submits selected design amendments for customer approval (see 6.4 Contract Submittals). Customer approved design amendments are design requirements. Page 27 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 Work steps for recording participant review recommendations are specified in standard operating procedure 7.4 Design Reviews and Input. 7.5 DESIGN OUTPUT VERIFICATION AND APPROVAL The Design Manager ensures that design output documents are verified by qualified personnel independent of the person performing the work. The person responsible must verify: • The completed design meets requirements specified by the design input • The completed design meets approved design amendments • Engineering calculations are correct • Completeness of records per the Design Quality Plan including inputs, reviews, communications, and verification activities. Work steps for recording verification and approval are specified in standard operating procedure 7.5 Design Output Verification and Approval. Page 28 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 8. PROJECT -SPECIFIC QUALITY STANDARDS APPLICABLE REGULATIONS, INDUSTRY, AND COMPANY STANDARDS 8.1 OVERVIEW McMillen personnel and subcontractors are accountable for compliance to standards -based written specifications. To achieve expectations reliably and consistently, specifications are clearly spelled out not only for results but also for processes. Specifications apply to materials, work steps, qualified personnel and subcontractors, safe work rules, and environmental work conditions. Standards ensure that materials, methods, and results are specified rather than left to discretionary practices. 8.2 REGULATORY CODES AND INDUSTRYSTANDARDS All McMillen construction activities comply with the relevant regulations. The Quality Manager identifies regulatory requirements applicable to the jurisdictions served, including: • Applicable Federal regulations • Applicable State regulations • Applicable building codes and local addenda to building codes • Applicable Fire Code • Applicable Fuel and Gas Code • Applicable Mechanical Code • Applicable Plumbing Code • Additional regulations specified by the customer contract The Quality Manager lists regulatory requirements that apply to a specific project on the Project Quality Plan. 8.2.1 Industry Quality Standards All McMillen construction activities comply with generally accepted good workmanship practices and industry standards. Page 29 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 21312 The Quality Manager lists supplemental requirements for industry standards that apply to a specific project on the Project Quality Plan when it is not otherwise specified by the contract, contract technical specifications, or approved drawings. 8.3 MATERIAL AND EQUIPMENT SPECIFICATIONS The Quality Manager identifies materials that affect quality and sets requirements for each type of material so that only quality materials are purchased and used on a project. 8.3.1 Controlled Tvoes of Materials and Equipment Specified The Quality Manager ensures that all types of materials and equipment that affect quality are identified The Quality Manager lists supplemental requirements that apply to a specific project. The Quality Manager identifies specification requirements for each controlled type of material or equipment identified in section 0. The Quality Manager ensures that specifications for material and equipment define requirements for their intended use including: • Compliance to contract requirements • Compliance to code and industry standards and listing requirements • Structural integrity • Performance • Durability • Appearance • Product identification for traceability Work steps for maintaining controlled material records are specified in Standard Operating Procedure 8.3 Material and Equipment Specifications. 8.3.2 Tools and Equipment Specification Requirements The Quality Manager evaluates and approves tools and equipment specifications for use on a project by evaluating their expected performance for their intended use. The Quality Manager lists supplemental material requirements that apply to a specific project on the Project Quality Plan when it is not otherwise specified by the contract, contract technical specifications, contract drawings, or approved submittals. Only approved materials are used in the construction process. Only approved materials are specified in purchase and/or subcontracts. Work steps for maintaining controlled material records are specified in Standard Operating Procedure 8.3 Material and Equipment Specifications. Page 30 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 8.4 MCMILLEN QUALITY STANDARDS McMillen quality standards supplement contract requirements when they are necessary to ensure quality. The Quality Manager lists supplemental requirements for McMillen Quality standards that apply to a specific project on the Project Quality Plan. When McMillen quality standards differ from industry standards or product manufacturer instructions, the Quality Manager justifies that the standard reliably achieves quality results and then documents the justification. All McMillen construction activities conform to the company quality standards. Page 31 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version Jury 20, 2012 McMillen Project Regulatory Codes and Industry Standards Form Version July 20, 2012 Project ID Project Name J _ Preparer Date 12-013 Town Creek Hydroelectric Matt McDowell I 7/20/2012 Project Improvements and j Repairs !I Reference Code or Version Date or Number Notes Regulation Regulation Applicable Federal EPA -Environmental regulations —) Protection Agency Applicable State AEA -Alaska Energy regulations Authority SHPO-State Historical Preservation Office Applicable building I Not Applicable codes J I Not Applicable Local addenda to building codes Not Applicable Applicable Fire Code Applicable Fuel and Gas Not Applicable Code Applicable Mechanical Not Applicable Code Applicable Plumbing Not Applicable Code Contract specified Not Applicable regulations Other applicable codes Not Applicable or regulations erslon Date or Numbe hoWlWiptie Page 32 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version MY 20, 2012 9. PROJECT PURCHASING SPECIFYAND VERIFYSUPPLIER AND SUBCONTRACTOR QUALITY CAPABILITIES 9.1 OVERVIEW McMillen verifies the qualifications of subcontractors and suppliers to ensure that they are capable of completely carrying out their assigned responsibilities. Quality requirements are defined, verified, and documented before they are approved for a project. 9.2 PURCHASE ORDER QUALITY SPECIFICATIONS The Project Manager holds subcontractors and suppliers to the same quality requirements that must be met by McMillen. The Project Manager ensures that subcontracts and purchase orders clearly specify quality requirement expectations including: • Conformance to the McMillen Quality System or the subcontractor's own quality program as long as it meets McMillen Quality System requirements. • Conformance to contract specifications (Section 6 Contract Specifications) • Conformance to project quality standards (Section 8 Project -Specific Quality Standards) • Quality Management practices including — Performance of self -inspections. — Control of quality non -conformances and responsive corrections — Prevention of non -conformances — Controls that ensure completion of post -construction service work — Participation in quality training • Preparation of submittals • Participation in project planning meetings • Participation in task planning meetings • Handling, storage, packaging, and delivery, as applicable • Product or material identification for traceability Page 33 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 9.3 QUALIFICATION OF SUPPLIERS, SUBCONTRACTORS, AND DEPARTMENTS The Project Manager assesses each subcontractor's and supplier's capabilities to fulfill each subcontract or purchase order specification before approving and signing the contract or purchase order. For critical components, the Quality Manager determines if a source inspection is necessary to validate supplier quality and delivery capabilities. Subcontractors and suppliers must meet all Quality System requirements by either 1) working under the McMillen Quality System or 2) operating their own quality program as long as it meets McMillen Quality System requirements. The Project Manager qualifies McMillen operating departments that carry out construction tasks or provide materials to the same qualification requirements, policies, and procedures as subcontractors and suppliers. Work steps for maintaining subcontractor and supplier qualification records are specified in Standard Operating Procedure 9.3 Qualification of Suppliers, Subcontractors, and Departments. When the subcontractor qualification assessment identifies minor nonconformances to the subcontract requirements, the Project Manager may approve a provisional subcontract. The provisional subcontract supplements the subcontract with requirements for actions that address correction of the nonconformances. All nonconformances must be corrected before work in the affected area begins. 9.4 PROJECT PURCHASE ORDER APPROVALS The Project Manager ensures that contracts and purchase orders are issued only to qualified subcontractors and suppliers. The Project Manager must review, approve, and sign each purchase order. The supplier or subcontractor must agree to the purchase order terms and specifications, and then sign the contract or purchase order. Page 34 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 10. CONSTRUCTION PROCESS CONTROLS How work is carried out 10.1 OVERVIEW A construction process plan defines how project work is to be done and approved for the overall project. The construction process plan is communicated to all key personnel, subcontractors and suppliers in a preconstruction meeting. As the project proceeds, task work plans provide additional details of how each individual task is carried out. Task planning meetings are used to communicate expectations of the task plan to key personnel responsible for carrying out the task. 10.2 TASK PREPARATORY QUALITY PLANNING 10.2.1 Task Preparatory Quality Plan Requirements In preparation for the start of an upcoming construction task, the Superintendent reviews an integrated and coordinated set of documents that collectively define quality requirements for the task including: • Objectives and acceptance criteria of the task • Quality standards that apply to the task • Work instructions, process steps, and product installation instructions that apply to the task • Tools and equipment necessary to perform the work • License, certification, or other qualification requirements of personnel assigned to work • Required inspections, process controls, and tests • Required records of the process and resulting product • The subcontractor contracted to perform the work, if applicable • Customer contract requirements (Section 6) • Required inspections and tests (Section 5.4) • Method for clearly marking nonconformances to prevent inadvertent use • Location of quality system records and documents • Verify field measurements • Completion of prior work Page 35 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 The Quality Manager evaluates the quality requirements of each task and determines if relevant task -specific documents consolidated into a task plan package is required to assure quality results. When required, The Superintendent documents the task quality plan. Work steps for the Quality Manager to record required task quality plans and preparation of the task quality plan are specified in Standard Operating Procedure 10.3.1 Task Preparatory Quality Plan Requirements. 10.2.2 Preparatory Task Plannin¢ Meetines Prior to the start of a construction task, the Superintendent conducts a meeting with key company and subcontractor personnel responsible for carrying out, supervising, or inspecting the work. During the meeting, the Superintendent communicates the task quality requirements and reinforces heightened awareness for critical requirements. Topics for a task quality plan meeting include: • Task quality requirements • Contract specifications • Contract drawings • Shop drawings • Work procedures and installation instructions • Inspection and test plan • Availability and receiving inspection status of required materials • Conflicts that need resolution • Required quality documents and a verification of availability to personnel carrying out, supervising, or inspecting the task • Record keeping requirements and the availability of necessary forms • Review methods and sequences of installation • Special details and conditions • Standards of workmanship • Heightened awareness of critical quality requirements • Quality risks • Testing and quality control requirements • Job organization • Task inspection form Work steps for the Superintendent to maintain task preparatory quality plan meeting records are specified in Standard Operating Procedure 10.3.3 Preparatory Task Planning Meeting. 10.3 WEEKLY PLANNING AND COORDINATION MEETING The Superintendent conducts a meeting with key company, supplier, and subcontractor personnel responsible for carrying out, supervising, or inspecting the work. The customer is invited to participate in the meeting. Page 36 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version Jury 20, 2012 The meeting is held on a nominal weekly schedule. During the meeting, the Superintendent facilitates coordination among the participants, communication among the participants, and reinforces heightened awareness for critical requirements. The Superintendent maintains a record of the meeting event on the Daily Quality Control Report (see section 10.6 Daily Quality Control Report ). 10.4 PROCESS CONTROL STANDARDS 10.4.1 Job -ready Start Work Control Standards Work at each phase of construction starts only when conditions do not adversely impact quality, comply with government regulations, contract technical specifications, industry standards, or product installation instructions. The Quality Manager lists supplemental start -work requirements that apply to a specific project on the Project Quality Plan when it is not otherwise specified by the contract, contract technical specifications, or approved drawings. 10.4.2 Work in Process Control Standards Work is conducted only when conditions do not adversely impact quality, comply with government regulations, contract technical specifications, industry standards, or product installation instructions. The Quality Manager lists supplemental work in process requirements that apply to a specific project on the Project Quality Plan when it is not otherwise specified by the contract, contract technical specifications, or approved drawings. 10.4.3 Protection of Completed Work Control Standards When necessary to maintain quality after work is complete, completed work is protected from damage. Requirements for preventing damage to completed work comply with government regulations, contract technical specifications, industry standards, or product installation instructions. The Quality Manager lists supplemental protection requirements that apply to a specific project on the Project Quality Plan when they are not otherwise specified by the contract, contract technical specifications, or approved drawings. 10.4.4 Controlled Use of Materials The Project Manager ensures that contracts and purchase orders are awarded only to subcontractors and suppliers qualified to perform the construction task and/or supply materials as required for the specific project. Only approved materials are used in the construction process. Only approved materials are specified in purchase and/or subcontracts. Page 37 McMillen Town Creek Hydroelectric Project Improvements and Repairs version July 20, 2012 Materials that are defective, deteriorated, damaged, or not approved are not used. The Superintendent clearly marks such materials for non-use or otherwise holds them aside. When customer -supplied materials are lost, damaged, or otherwise found unsuitable for use, the Superintendent reports such findings to the customer. When subcontractor —supplied materials are damaged or otherwise found unsuitable for use, the Superintendent reports such findings to the subcontractor. The Project Manager ensures that contracts and purchase orders are awarded only to subcontractors and suppliers qualified to perform the construction task and/or supply materials as required for the specific project. The Superintendent ensures that construction uses only materials specified in the contract technical specifications, contract drawings, and approved submittals. Substitutions are made only by agreement of the customer and documented by a change order (see section 2.1.3.6). 10.4.4.1 Controlled Product Use and Installation McMillen construction activities conform to manufacturers' product use and installation instructions that apply to the construction process. When installing a product, the Superintendent has access to all applicable product installation instructions. 10.5 DAILY QUALITY CONTROL REPORT The Superintendent records a summary of daily construction activities. The report will include: • Schedule Activities Completed • General description of construction activities in progress. • Problems encountered, actions taken, problems, and delays • Meetings held, participants, and decisions made • Subcontractor and Company Crews on site • Visitors and purpose • General Remarks • Improvement Ideas • Weather conditions Work steps for maintaining daily quality control report records are specified in Standard Operating Procedure 10.6 Daily Quality Control Report. 10.6 MONTHLY QUALITY CONTROL REPORT The Superintendent records a monthly status report. The report includes: • A summary of work completed and work in progress Page 38 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version Iuly 20, 2012 • Outstanding issues • Issues resolved during the reporting period • Outstanding potential change orders • Project status with current project costs and estimated completion date • A cost analysis summarizing actual costs to date and estimated future costs • Project pictures as appropriate Work steps for maintaining monthly quality control report records are specified in Standard Operating Procedure 10.7 Monthly Quality Control Report. Page 39 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 11. INSPECTIONS AND TESTS PROCESS CONTROLS ENSURE COMPLIANCE 11.1 OVERVIEW Inspections are necessary to verify that work processes and results conform to both contract requirements and McMillen quality standards (specified in Section 2, STANDARDS). Qualified personnel inspect every project throughout the construction process. Additional reviews validate the accuracy of the field inspections and ensure that the quality standards apply uniformly. An inspection and test plan defines the inspections and tests required for a specific project. Personnel may only inspect construction activities for which they are have been qualified by the Quality Manager. 11.2 INSPECTION AND TEST STATUS The status of each inspection or test is clearly marked by paint, tape, tag, or other easily observable signal to ensure that only material or work that has passed the required inspections and tests is accepted. 11.3 REQUIRED QUALITY INSPECTIONS AND TESTS A series of inspections are required for each construction task. Construction projects may be divided into several phases, in which case inspections are required for each phase and task. Each inspection is identified on the inspection and test plan referenced in section 5.4. The Quality Manager ensures that inspections and tests that apply to a specific project are clearly identified. Material Inspections and Tests Material inspections and tests ensure that purchased materials meet purchase contract quantity and quality requirements. The Superintendent inspects or ensures that a qualified inspector inspects materials prior to use for conformance to contract requirements, the requirements of McMillen quality standards, contract technical specifications, contract drawings, approved shop drawings, approved product submittals, approved allowances and unit prices, and product identification requirements. Page 40 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 The Superintendent ensures that construction activities that use the material proceed only when all McMillen quality standards are met. 11.3.1.1 Source Inspections Source inspections are required when quality characteristics cannot or will not be verified during subsequent processing. The Quality Manager determines if a source inspection is necessary to validate supplier quality before delivery to the project jobsite. 11.3.2 Initial Job -Ready Inspections A Superintendent or a qualified inspector performs job -ready inspections to ensure that construction activities begin only when they should begin. Job -ready inspections verify that conditions conform to contract requirements, the company's start -work policies, and the requirements of McMillen quality standards. 11.3.3 Follow-up Work in Process Inspections The Superintendent or a qualified inspector performs an initial work in process inspection when the first representative portion of a work activity is completed. The Superintendent or a qualified inspector performs ongoing work in process inspections to ensure that construction activities continue to conform to: • Contract requirements • Requirements of McMillen quality standards • Contract technical specifications • Contract drawings • Required inspection and tests • Approved submittals. 11.3.4 Task Completion Inspections The Quality Manager or a qualified inspector inspects the completion of each task to verify that work conforms to contract requirements, the requirements of McMillen quality standards, contract technical specifications, contract drawings, required inspection and tests, approved submittals, resolution of nonconformances. Completion inspections are performed for each construction task. Completion inspections are conducted before starting other construction activities that may interfere with an inspection. The inspector signs the inspection form indicating that the inspected work meets McMillen Quality System requirements. 11.3.5 Project Closeout Inspection After completion of the last task for a project, The Quality Manager performs a project closeout inspection to verify that the completed project conforms to contract requirements and McMillen quality standards. Page 41 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 Before delivery of the project phase to the customer and inspection is performed by, the Project Manager, another Superintendent, or other qualified personnel independent of production. Page 42 McMillen Town Creek Hydroelectric Project Improvements and Repairs Venion,wy 20, 2012 ®%r - \7 t a % � - %2® Qj ■ e � } � _ � \ ■ 6,.. ) § 4 ƒ \ \ / cr \ ) { )_t! - _ / `2 - - ƒ \/ 12. NONCONFORMANCES AN 12.1 OVERVIEW DRRECTIVE ACTIOI Should a nonconformance be found, there is a systematic method to control the item, correct it, and ensure that project quality is not adversely impacted by the event. A nonconformance is any item that does not meet the McMillen Quality System requirements. 12.2 NONCONFORMANCES 12.2.1 Marking of Nonconformances When the Quality Manager, Superintendent, inspector, or customer identifies a nonconformance, the nonconformance is quickly and clearly marked by paint, tape, tag, or other easily observable signal to prevent inadvertent cover-up. 12.2.2 Control the Continuation of Work After the nonconformance is marked, the Superintendent determines if work can continue in the affected area: • CONTINUE WORK: When continuing work does not adversely affect quality or hide the defect, work may continue in the affected area while the disposition of the nonconforming item is resolved. The Superintendent may place limitations on the continuation of work before a stop work order becomes effective. STOP WORK ORDER: When continuing work can adversely affect quality or hide the defect, work must stop in the affected area until the disposition of the nonconforming resolved. The Superintendent identifies the limits of the affected area. The Superintendent quickly and clearly marks the stop work area. 12.2.3 Correction of Nonconformances The Superintendent verifies that corrective actions eliminate the nonconformance to the requirements of the original specifications or as instructed by the disposition of the nonconformance report, and then removes, obliterates, or covers the nonconformance marker. Page 44 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 Furthermore, the Superintendent ensures that previously completed work is reinspected for similar nonconformances and corrective actions are taken to avert future occurrences (see section 12.3 Corrective Actions). 12.3 CORRECTIVE ACTIONS 12.3.1 Control of Corrective Actions When a nonconformance is found, the Superintendent ensures that: • Previously completed work is reinspected for similar nonconformances • Corrective actions are taken to avert future occurrences The Quality Manager identifies requirements for corrective actions with respect to frequency, severity, and detectability of quality nonconformances items found during and after completion of construction activities. When a solution requires changes to McMillen quality standards, the Quality Manager makes modifications as necessary by making changes to: • Material specifications • Personnel qualifications • Subcontractor qualifications • Company standards • Inspection processes 12.3.2 Corrective Action Training The Superintendent initiates corrective action training to address quality nonconformances. Personnel and subcontractors performing or inspecting work participate in the training. Heightened awareness during inspections verifies and documents compliance with the corrective action improve- ment items. A qualified Superintendent inspects corrective actions during regular inspections and records observations on the inspection form. The Superintendent notifies affected subcontractors of selected preventive action training requirements. The Superintendent evaluates the effectiveness of the improvements. The Quality Manager reviews improvement results recorded on inspection records and monthly field reviews. When the Quality Manager determines that the improvement actions are effective, the item is no longer treated as a preventive action. Page 45 McMillen Town Creek Hydroelectric Project Improvements and Repairs version July 20, 2012 13. PREVENTIVE ACTIONS PREVENT NONCONFORMANCES 13.1 OVERVIEW Fixing problems found during inspections is not sufficient. Systematic prevention of recurrences is essential for im- proving quality. McMillen makes changes to solve the problem. Solutions may involve a combination of enhanced process controls, training, upgrade personnel qualifications, improved processes, or use of higher -grade materials. Follow-up ensures that a problem is completely resolved. If problems remain, the process is repeated. 13.2 IDENTIFY PREVENTIVE ACTIONS FOR IMPROVEMENT The Quality Manager identifies preventive action improvement priorities with respect to frequency, severity, and detestability of quality correction items found during and after completion of construction activities. The Quality Manager also reviews company quality performance and customer feedback. More specifically, the Quality Manager assesses: • Customer corrective items • Superintendent inspection results • Code official inspection results • Post -construction service • Management field reviews • Annual system review • Customer satisfaction surveys The Quality Manager documents quality items requiring preventive action improvement. The Quality Manager leads the company in finding solutions to address the causes of problems. When a solution requires changes to McMillen quality standards, the Quality Manager makes modifications as necessary by making changes to: • Material specifications Page 46 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 • Personnel qualifications • Subcontractor qualifications • Company standards • Inspection processes 13.3 TRAIN PREVENTIVE ACTIONS FOR IMPROVEMENT The Quality Manager initiates preventive action training to address quality improvement items. Personnel and subcontractors performing or inspecting work participate in the training. Heightened awareness during inspections verifies and documents compliance with the preventive action improve- ment items. A qualified Superintendent inspects hotspots during regular inspections and records observations on the inspection form. The Quality Manager notifies affected subcontractors of selected preventive action training requirements. The Quality Manager evaluates the effectiveness of the improvements. The Quality Manager reviews improvement results recorded on inspection records and monthly field reviews. When the Quality Manager determines that the improvement actions are effective, the item is no longer treated as a preventive action. Page 47 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 14. RECORD AND DOCUMENT CONTROLS 14.1 OVERVIEW McMillen ensures that quality related documents and records are created, complete, and stored properly. 14.2 QUALITY MANUAL The Quality Manager maintains the McMillen Quality Manual describing major elements of the McMillen Quality System and lists the titles of personnel responsible for each related activity. The Quality Manager maintains, improves, and updates the manual as necessary. The Quality Manager ensures that the Quality Manual and documents related to a work task are accessible to personnel performing the work. Standards Update At least annually, the Quality Manager determines if updated versions of standards and product installation instructions are available. If so, the Quality Manager updates the Quality System documentation accordingly. 14.3 RECORDS CONTROL The Quality Manager verifies records for conformance to the Quality System Requirements and approves all Quality System records. Documentation demonstrating conformance with and operation of the Quality System is retained for at least five years. The Quality Manager verifies records for conformance to the Quality System Requirements and approves 14.3.1 Proiect Records Control The Quality Manager verifies the completeness, accuracy, and retention of project -specific Quality System records including: • Field reviews • Daily log reports • Incident reports • Redline drawings • Qualified personnel approvals • Qualified subcontractor approvals Page 48 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version Jury 20, 2012 • Lists of approved materials • Quality improvement records • Project Quality records specified by customer contract, or contract technical specifications The Quality Manager assigns record control responsibilities and document location that apply to a specific project.. 14.4 DOCUMENT CONTROL The Quality Manager ensures that records of the distribution of Quality System documents are kept. When new versions are distributed, obsolete versions are destroyed or controlled to prevent inadvertent use. The Quality Manager maintains a list of all project documents, each with a version identifier. 14.4.1 Document Control of System Documents The Quality Manager controls documents related to the McMillen Quality System including: • Quality System Manual • Quality System Procedures • Project Management Procedures (including interface and coordination with Customers and regulatory agencies with jurisdiction overjobsites) • Government regulations • Industry standards • Procurement specifications Page 49 McMillen Town Creek Hydroelectric Project Improvements and Repairs vemmn July zo, zmz Exhibit A Quality Controlled Construction Tasks Form & Project Contact List Page 50 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version Jury 20, 2012 _ McMillen Quality Controlled Construction Tasks Form Version July 20, 2012are Project ID Project Name Prepr Signature Date 12-013 _ �__1 Town Creek Hydroelectric Matt McDo_well__ 7/20/2012 Project Improvements and Repairs Project Task / Contract Section Description of Task Notes-----] 1 — — Diversion Dam -Demolition —� 2 East Diversion Dam -Construct new dam w/new 8" HDPE 3 Stabilize existing soil — Upstream of East Diversion Dam 4 Construct New Trail Switchback 5 Penstock Intake and Pipe Improvement 6 Modify Existing Spillway System to Install Piping &Pipe System 7 Remove Crest Cap & Install w/ New 8 Construct New Rock Spillway Outlet 9 Repair Existing Roadway 10 Construct New Emergency Spillway 11 Repair/Replace Sluice Box and Valves 12 Re -grade Existing Reservoir 13 —� Refurbish/Repair Valve 14 West Diversion Dam No.2—Demolition --� 15 Replace Existing 8" Knife Gate Valve with? 16 —�7 Install New 10" Knife Gate Valve Page 51 McMillen Town Creek Hydroelectric Project Improvements and Repairs Version July 20, 2012 r '. aci v aci � u - �n E d °; � O I RR11 � F a u u o o N o 0 o m m 0 o 0 z 7 V V Vv d' v V IU M O O O C` 'a 1 Y 0 > C ✓ T C v Fa . 3 C o O c o N a..- m C m fO c o c m m o 7n JU w J LL c o o a U u° � O L a Li E m v w w 'o ' C Z �OC= GU _ i O v N m O m N m W w m 0 9 J J J J J O d C? 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