Document VMQm8OD8zwxk5nKOvDd62zkw
Brown edRootInc.
OFFICE MEMO
December 11, 1975
TO: FROM: SUBJ:
T. J. Feehan
R. M. Fitzgerald, Jr.
Supplement 1 to Contract No. RC-11L2 Exxon Chemical Company U.S.A.
Attached Is Bocon letter dated December L with a copy of Supplement 1 to the "umbrella" contract and Addendum No. 1 to the Job Specification for Line U Debottleneck Project.
RMF:dJv
cc w/att:
J. C. Norris/j. R. Ward J. C. Bums, Jr. C. A. Smith File
DISTRIBUTION:
General Accounting-Original Contract file Legal Dept. R. K. Wilson H. C. Ellis F. Siems Billing File--B4-1232
R. M. Fitzgerald, Jr. Project Engineering Manager
EXX 011486
EXXON CHEMICAL COMPANY USA.
P 0 9o* ^004. Baytown. Tens 77520
December A, 1975
E*ON CHEMICALS
BAYTOWN CHEMICAL PLANT
JMaJnaCgOerSTOLNiCK
Contract No. RC-IIA2 Supplement I
Line A Debottleneck Project
Mr. Ray M. Fitzgerald, Jr. Brown S Root, Inc. P. 0. Box 3 Houston, Texas 77001
Dear Mr. Fitzgerald:
Supplement I to Contract No. RC-11A2 authorizing the Second Assign ment under the terms of Contract No. RC-I1A2 has been executed by duly author ized representatives of Brown & Root, Inc. and Exxon Chemical Company U.S.A., and it is requested that Brown & Root proceed immediately with the work.
Since approved funds for the completion of Line A Debottleneck Project are unavailable at this time, Exxon Chemical Company U.S.A. agrees to pay Contractor for work performed under the terms of Supplement I to Contract No. RC-11A2 up to a maximum of $30,000 through December 31, 1975.
Attached are four copies of Addendum No. I to the Job Specification, Line A Debottleneck Project, which provides additional specific information pertinent to coordination procedures for the Second Assignment.
The terms and conditions of Contract RC-11A2 apply to all work to be performed under the initial assignment and the Second Assignment, it being understood that Exxon Chemical Company U.S.A. is not reserving engineering capacity nor committing any future work other than the two present assignments.
Let us know if there are any questions.
Very truly yours,
J. J. COSTOLNICK
EHB:fg Attachments (A)
cc: RP0 JMR FPJ GWW DBMcM ARA DDD NPQC/TEC
By: E. H. Busby
-------- KM--------BROWN A ROOT. INC.
DEC 0 5 1975
ENGINEERING DEPT.
An ooorstmg division of EXXON CHEMICAL COMPANY, a division of EXXON CORPORATION
EXX 011487
.
iurrtxntm \
^
CONTRACT NO. RC-1142
(r:
AUTHORIZATION OF SECOND ASSIGNMENT TO CONTRACT NO. RC-1142
This AGREEMENT is made as of the
____________ day of
^ 1975.
between Brown Root, Inc., having an office located at 4100 Clinton Drive,
Houston, Texas 77001, (herein called CONTRACTOR) and Exxon Chemical Company
U.S.A., an operating division of Exxon Chemical Company, a divjsion of Exxon
Corporation having an office located at 1333 West Loop.South, Houston, Texas
77027 (herein called OWNER).
WITNESSETH THAT: OWNER and CONTRACTOR have entered into Contract No. RC-1142 on May 7, 1975, and amended by Contract Change Order No. 1 dated September 26, 1975, (hereinafter called CONTRACT) underwhich CONTRACTOR will perform process plant engineering, procurement and construction ASSIGNMENTS (hereinafter called ASSIGNMENTS) for OWNER.
CONTRACT also provides that CONTRACTOR shall perform additional engineering and/or procurement and/or construction ASSIGNMENTS as may be requested by OWNER from time to time providing that CONTRACTOR has adequate manpower avail able to accomplish said ASSIGNMENTS.
In consideration of the covenants and agreements hereinafter set forth, the parties hereto hereby agree as follows:
A. CONTRACTOR shall undertake and perform the engineering, procurement and construction of the Baytown Line 4 Debottleneck Project on designated site on OWNER'S property at Baytown Chemical Plant, Baytown, Texas, as the SECOND ASSIGNMENT (hereinafter called SECOND ASSIGNMENT) In accordance with CONTRACT. CONTRACTOR represents that it has the capability including sufficient and competent supervisors and other personnel to efficiently and expeditiously accomplish SECOND ASSIGNMENT in a satisfactory manner.
B. SECOND ASSIGNMENT shall be governed by all provisions, including but not limited to ARTICLE 4 - COSTS and ARTICLE 5 - FEE, of CONTRACT applicable to said SECOND ASSIGNMENT and modifications to CONTRACT by attached addenda. Said addenda is limited to the following:
1. Addition of the following paragraphs to AGREEMENT RC-1142 to define the requirements for SEC0N0 ASSIGNMENT. Said paragraphs are attached hereto and made a part hereof.
a. Scope of Work - Second Assignment (Replaces Paragraph B of ARTICLE 1 - WORK).
b. Schedule Performance - Second Assignment (Replaces Paragraph C of ARTICLE 2 - COMPLETION DATE).
c. Cost Performance - Second Assignment (Replaces Paragraph C of ARTICLE 3 - CONTRACT PRICE).
d. Fee - Second Assignment (Replaces Paragraph B-l of ARTICLE 5 * FEE).
e. Contractor's Project Organization and Personnel - Second Assignment (Replaces Paragraph E of ARTICLE 7 - ENGINEERING - PROCUREMENT CONSTRUCTION).
RC-1142-2 November 21, 1975
e*X U 488
r
2. Addition of Job Specification entitled "Line A Debottleneck Project" with Table of Contents dated October 31. 1975.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in their respective corporate names by their respective officers, thereunto duly authorized as of the date and year first written above.
Brown 6 Root, Inc.
Attest___ 2 (Signature f Contractor's Officer)
J. C. Norris __________Vice President (Typed Name and Title)
s Officer)
T. J. Feehan Senior Group Vice President (Typed Name and Title)
Attest
-- ^-J<L
(Signature of OWNER'S Officer)
L. P. Olinde Assistant Secretary (Typed Name and Title)
Exxon Chemical Company U.S.A., an operating division of Exxon Chemical Company, a division of Exxon Corporation
M. E. Lillis Executive Vice President (Typed Name and Title)
RC-1142-2 November 21, 1975
469
AUTHORIZATION OF SECOND ASSIGNMENT TO CONTRACT NO. RC-1142
ADDENDA TO AGREEMENT NO. RC-1142
ARTICLE I - WORK
The following paragraph replaces Paragraph B entitled "Scope of Work - Initial Assignment":
B. Scope of Work - Second Assignment
1. For its SECOND ASSIGNMENT, CONTRACTOR shall engineer, procure and construct the Baytown Line k Debottleneck Project (herein referred to as PLANT) on designated site (herein referred to as WORK SITE) on OWNER'S property at Baytown Chemical Plant, Baytown Texas in accordance with CONTRACT. CONTRACTOR shall furnish all supervision, engineering and procurement services, consultations, construction services, other services required, equipment and materials, labor, construction tools and equipment, construction utilities and supplies, temporary structures and facilities, and transportation, including without limitation hauling, unloading and handling to, at and from WORK SITE, required for the proper engineering and procurement and the successful construction of PLANT, all of which together with the engineering procurement and construction shall be defined as WORK (herein referred to as WORK) for said SECOND ASSIGNMENT.
2. JOB SPECIFICATION, for the aforesaid SECOND ASSIGNMENT, is the bound collection of documents entitled "Line k Debottleneck Project." Said JOB SPECIFICATION at date of CONTRACT with Table of Contents dated October 31, 1975 is incomplete.
RC-1142-2 November 21, 1975
EXX 011490
(
ARTICLE 2 - COMPLETION DATE
The following paragraph replaces Paragraph C entitled "Schedule Performance - Initial Assignment":
C. Schedule Performance - Second Assignment
1. For the SECOND ASSIGNMENT, CONTRACTOR shall be responsible for scheduling, progress reporting, forecasting and controlling completion for the Baytown Line 4 Debottleneck Project. CONTRACTOR'S schedules, progress reports, schedule forecasts and schedule control activities shall be subject to agreement by OWNER. All CONTRACTOR'S calculations and documents supporting said schedules, reports and forecasts shall be available to OWNER on request.
2. For the aforesaid ASSIGNMENT, CONTRACTOR shall prepare a detailed work schedule as specified in Paragraph B-2 above.
3. CONTRACTOR shall use the aforesaid detailed work schedule as specified in Paragraph B*3 above.
RC-1142-2 November 21, 1975
EXX 011491
r.
ARTICLE 3 ~ CONTRACT PRICE
The following paragraph replaces Paragraph C entitled "Cost Performance - Initial Assignment":
C. Cost Performance - Second Assignment
.
1. For its SECOND ASSIGNMENT, CONTRACTOR shall be charged with the obligation for estimating, budgeting, reporting, forecasting and controlling of costs for the Baytown Line 4 Debottleneck Project. CONTRACTOR'S cost estimates, cost reports, cost forecasts and cost control activities shall be subject to agreement by OWNER. All CONTRACTOR'S calculations and documents supporting said estimates, reports and forecasts shall be available to OWNER on request.
2. CONTRACTOR shall use the detailed cost estimate and CONTRACT PRICE BUDGET for the aforesaid SECOND ASSIGNMENT in the manner specified in Paragraph B-3 above.
RC-1142-2 November 21, 1975
01I49g
ARTICLE 5 - FEE
o
The following paragraph replaces Paragraph B-l under Paragraph B en titled "Determination of Fee for Home and Branch Office Services":
B. Determination' of Fee for Home and Branch Office Services
l. CONTRACTOR'S fixed FEE at date of authorization of the Second ASSIGNMENT for furnishing home and branch office services for said Second ASSIGNMENT is One Hundred Seventy-Six Thousand Seven Hundred Eighty-One U.S. dollars (U.S. $176,731.00). Fixed FEE for the Second ASSIGNMENT is subject to adjustment pursuant to the provisions of Paragraph D below.
For each subsequent assignment, fixed fee'related to CONTRACTOR furnishing home and branch office services shall be established based on estimate agreed by OWNER and CONTRACTOR of CONTRACTOR'S net incremental reimbursable home and branch office manhours pursuant to Paragraph B-5-a of ARTICLE 4 -
'STS, required to accomplish WORK for said ASSIGNMENT multiplied by the applicable rate or rates specified below:
Cumulative Home and Branch Office Reimbursable Manhours________
US$/Reimbursable Manhour
0 to 100,000
Over 100,000 to 200,000
Over 200,000 to 500,000
Above
500,000
$4.20 $3.90 $3.51 $2.93
The cumulative home and branch office reimbursable manhours in the above schedule is the sum total of agreed estimates of CONTRACTOR'S home and branch office reimbursable manhours for the initial ASSIGN MENT and all subsequent ASSIGNMENTS including CHANGES.
A fixed FEE is not subject to renegotiation and is subject to adjust ment only for CHANGES pursuant to Paragraph D below. Rates specified above are not subject to renegotiation, escalation or adjustment for CHANGES or for any other reason; provided, however, that for any ASSIGN MENT authorized prior to October I, 1977 that exceeds 200,000 home office reimbursable manhours, the rates specified above may be equitably adjusted by mutual agreement for application to work performed on said ASSIGNMENT subsequent to October 1, 1977.
RC-1142-2 November 21, 1975
EXX 011493
ARTICLE 7 - ENGINEERING - PROCUREMENT - CONSTRUCTION
The following paragraph replaces Paragraph E entitled "Contractor's Project Organization and Personnel - Initial Assignment":
E. Contractor's Project Organization and Personnel - Second Assignment
1. For its SECOND ASSIGNMENT, CONTRACTOR'S home and branch office key personnel pursuant to Paragraph D-l above shall include:
Engineering Project Manager Project Engineer Cost/Schedule Coordinator Cost Engineer Project Scheduler
Project Procurement Manager
R. M. Fitzgerald, Jr, J. C. Burns, Jr. C. A. Smith C. A. Smith This service to be provided by the
Planning 5 Scheduling Group of Contractor's Petro Chem Group This service to be provided by Con tractor's Purchasing Department
2. For its SECOND ASSIGNMENT, CONTRACTOR'S construction key personnel pur suant to Paragraph 0-2 above shall be:
Construction Project Manager
H. C. Ellis
/
RC-1142-2 November 21, 1975
01I494
EXXON CHEMICAL COMPANY U.S.A.
ADDENDUM NO. 1 TO
JOB SPECIFICATION LINE 4 DEBOTTLENECK PROJECT
CAUTIONARY NOTICE This specific document contains technical information that is the property of Exxon Chemical Company U.S.A. It is furnished to the recipient strictly for use in connection with the unit concerned, is to be held proprietary and returned upon request
Appropriation 80053 December 3, 1975
EXX 011*95
C:
ADDENDUM NO. 1 TO
JOB SPECIFICATION LINE 4 DEBOTTLENECK PROJECT EXXON CHEMICAL COMPANY U.S.A.
The following revisions, additions, and deletions apply to the Job Specification for Line 4 Debottleneck with Table of Contents, Revision 0, dated October 31, 1975.
Introduction to Job Specif cation. Page 1, Par. Id and 2d
Change Baytown Engineering Standards to read Exxon Engineering Standards, Volume I and II.
Coordination Procedure, Page 1
Add to the first paragraph:
Section 50 of Exxon Engineering Standards entitled "Instructions to Contractors" contains specific requirements for job execution in addition to those found in the Coordination Procedure Supplements 1 through 22 inclusive. Where conflicting requirements occur within the two above mentioned documents, Contractor shall bring it to the attention of Owner and Owner shall provide Contractor with a decision as to which document takes precedence. Except for conflicts, both documents are to be followed.
Supplement 2, Procurement, Page 202
Add the following under Par. I, A Scope: Reference Documents BTES 50-3-4.1A, Inquiry Specifications - Instructions BTES 50-3-5.1A, Standard Clauses - Instructions
Supplement 7, Accounting and Invoicing, Page 701
Add the following under Par. I, A Scope: References BTES 50-6-6.ID
Supplement 10, Microfilming
Owner will provide microfilms. Contractor will provide Owner with origins:- tracings and/or alternative reproducibles for drawings prepared by Contractor and drawings required of Vendors in accordance with BTES 50-3-1.A including applicable Standard Print Clauses, reference BTES 50-3-4.1A. Ail drawings to be microf ...med must be legible and of good quality.
Supplement 11, Mechanical Catalog, Page 1101
Change I, Scope, Par. B to read as follows:
Contractor will update five (5) existing Mechanical Catalogs by inserting Line 4 Debottleneck Project data in appropriate sections. Con tractor will provide additional volumes as may be required to accommodate
EXX 011496
^'endum No. 1 Page 2
Che additional material and will reorganize existing mechanical catalog data and insert new data as appropriate to provide an Integrated mechanical catalog, including revisions to the Table of Contents. Supplement 20, Protection of Owner/ERE's Technology, Page 2001
Add the following to I Scope of Work: S. The capacity of the facilities as a whole is considered extra
sensitive information. I is appropriate to discuss capacities of individual segments within the facility. This is to define but not to limit the extent of extra sensitive information. GWWa:jsp 12/1/75
EXX 011497
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EXX 011*98
Exxon Chemical Company U.S.A. Job Specification Line 4 Debottleneck Project
r Addendum No. 1
Coordination Procedure Revision 0
October 31, 1975 Page 2
Project Organization
Mr. R. M. Fitzgerald, Jr. has been designated Contractor's Project Manager. He will supervise and coordinate all aspects of the Ccitractor's duties and responsibilities relating to the Work. All contacts ;ith the Contractor will be through its Project Manager.
Mr. has been appointed Owner's Project Executive and is the duly authorized representative of Owner.
Mr. F. P. Jones has been appointed Owner's Project Manager.
The Owner's Project Manager or his authorized representative(s) are the Contractor's only contacts with the Owner (except as specified in the Agreement).
The normal relationships between the various organizations con cerned with the project are indicated in chart form on Page 3.
EXX 011499
ADDRESSES
^-Addendum No. 1
Owner's Project Manager - F. P. Jones
Owner's Project Engineer - G. W. Wallis
Owner's Construction Supervisor - D. B. McMicken
Owner's Contracting Engineer - E. H. Busby
EE Inspection (Houston) - J. W. Coulter
Contractor's Project Manager - R. M. Fitzgerald, Jr.
GWWa:j sp 12/1775
Exxon Chemical Company U.S.A. P. 0. Box 4004 Baytown, Texas 77520 TWX 910-881-5522 Phone: 427-5711, Ext. 3863
Exxon Chemical Company U.S.A. c/o Brown & Root, Inc. 4100 Clinton Drive Houston, Texas Phone: 676-3561
Exxon Chemical Company U.S.A. P. 0. Box 4004 Baytown, Texas 77520 Phone: 427-5711, Ext. 3532
Exxon Company, U.S.A. P. 0. Box 4019 Baytown, Texas 77520 TWX 910-881-5522 Phone: 427-5711, Ext. 2189
Inspection Section Exxon Research & Engineering Co. P. 0. Box 1296 Exxon Chemical Building Suite 980 1333 West Loop South Houston, Texas 77001 Phone: 713-221-3228
Brown & Root, Inc. 4100 Clinton Drive Hous ton, Texas TELEX 713-762-943
EXX 0115
SCHEDULE B CORRESPONDENCE ORIGINATING WITH CONTRACTOR
Addendum No. 1
C onstruction S upervisor
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Correspondence
General Contractual Invoice for Payment Schedules Progress Reports Insurance Change Proposals (For Approval)
Procurement & Subcontracts: Expediting & Inspection
See distribution outlined in Schedule C
Specifications (Design & Purchase & Subcontracts
Index List For Review Final
Drawings
Schedule and Index For Review For Construction (Including Vendor's Drawings) Original Tracings (At Completion of Project)
Mechanical Catalog & Addendum
1 11 0+1 1 1 11 1
1 1
1
-2-1
"2
See Schedule D
-1
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EXX 01150!
Addendum No. 1 SCHEDULE C PROCUREMENT, INSPECTION. AND EXPEDITING CORRESPONDENCE DISTRIBUTION ORIGINATING THROUGH CONTRACTOR
S part P arts C oordinator
Procurement
Contractor's Vendors List
0+2
Release of Inquiry for Bids
2-
Bid Summary and Purchase
1
Recommendation
Purchase Orders with Attachments 2
Subcontracts
41
Record of Orders
11
Material Invoices, Packing Lists 2
and Bills of Lading
Forecasts of Commitments and
0
Expenditures
Follow-up Correspondence with
1
Vendors
Minutes of Meetings with Vendors 1 1
and Subcontractors
Spare Parts
Recommend Parts List Complete Parts List (Approved)
2 2
Inspection
Inspection Notices (By Vendors) Rejection Notices Release Notices Inspection Reports (Including
Mill Test Certificates) Waivers
1 1 -
1 1
A1 A-
A-
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A 13
A - -3
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A-3 -
A-3 -
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EXX 01152
Spare P arts C oordinator 0. Casey)
SCHEDULE C CONI'D
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PROCUREMENT, INSPECTION, AND EXPEDITING CORRESPONDENCE DISTRIBUTION
ORIGINATING THROUGH CONTRACTOR
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Material Status Report Expediting Reports
General Procurement, Expediting Inspection Correspondence___________
(As Applicable)
1 1
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Notes:
A - Originator 0 - Original or cover letter
X - Send copy only if affected.
GWWa:jsp 12/1/75
EXX 11303
c r Addendum No. 1
SCHEDULE "D"
CONSTRUCTION DRAWINGS DISTRIBUTION
(FOR EXXON ORGANIZATION)
1. All drawings shall be full size. 2. Copies of drawings shall be distributed to the following:
Name G. W. Wallis D. B. McMicken D. D. Dus ton J. N. Greer J. C. Brewer
Title Project Engineer ECMD Supervisor Operating Contact Inspector ECMD Electrical Specialist
Number of Copies One Two One One
Four, Partial Package ^
Package includes only the Electrical Drawings.
GWWa:jsp 12/1/75
EXX 011304
Tbonus TrcHan Senior Group Vice PrcMiJonl
(711)676-436
s-j
DAvict /O D
January 23, 1976
Mr. E. H. Busby Exxon Chemical Company, P. 0. Box 4004 Baytown, Texas 77520
U.S.A.
Dear Mr. Busby:
As requested in your January 22 letter, I am returning one (1) executed copy of Change Order 2 to Contract RC-1142.
I understand that Mr. Foley will obtain the certified insurance certificates directly from Highlands.
Yours very truly
TJF:sr
cc: J. T. Gossett J. C. Norris J. D. Ross R. K. Wilson
T. J. Feehan
DISTRIBUTION 1 !.rfi~l iiimr - ~ flrrrji nal Contract File Billing File -1232 0. K. Dodson M. Estes H. C. Ellis F. Sieiris
EXX 011482
42-7003 V.*
CONTRACT CHANCE ORDER
Cs
Chang* Order______ =------------
Oat*d
Hay 7, 1975
appropriation
WORK REQUEST
Various
, Issued January 20, 1976 to ContractRC-11 k2
between Exxon Chemical Companv U.S.A.,
an operating division of Exxon Chemical Companv. a division of Exxon Corporation and Brown S Root, Inc.__________________________________________________________ Contractor.
Unit, Equipment, or Facility Involved Compounding S Finishing Expansion, Phase I Line k Debottleneck. Project
Contractor is authorized and agrees to make the following additions to or deductions front the work provided under the above Contract, performance of and payment therefor, except as otherwise specified herein, to be subject to all terms and conditions of said Contract:
ARTICLE 20 - INSURANCE
This Change Order provides that workmen1s compensation insurance on Contractor's em ployees under Article 20-- B-1 of Contract RC-11h2 be provided in accordance with the plan outlined in a letter dated December 23, 1975 from Mr. Andrew F. Crist of Highlands Insur ance Company to Mr. G. L. Foley of Petroleum Casualty Company. A copy of this letter is attached hereto and made a part hereof. It is understood and agreed that this plan will
poly to the first two awards under Contract RC-1142; i.e., Compounding Finishing Phase . Project, and Line U - Debottleneck Project plus any future assignments under the Con tract. It is further agreed that the effective date of this plan is January 1, 1976.
ORIGINAL AMOUNT OF CONTRACT
AOOITION AMOUNT OF THIS BSOtt&XKKfc ......
Unit Price Unit Price
IN WITNESS WHEREOF the parties hereto have executed this Change Order the day and year first above written.
ACCEPTED; BROWN & ROOT. INC.
Or:
irwtin.
EHB: fg
(Title)
cc: F. P. Jones
Exxon Chemical Company. U.S.A., an operating division of Exxon Chemical Company, a division of Exxon Corporation
. / OOl Purchasing Head/^j
yt Baytown Refinery J
EXX 011483
600 JEFFERSON STREET. HOUSTON. TEXS 77002 CABLE: U S. RISK TELEX: 762314 PH. 2Z4-SS41
December 23, 1975
Mr. G. L. Foley Petroleum Casualty Company P. 0. Box 2180 Houston, Texas 77001
Re: Brovn & Root, Inc. - Exxon Chemical Project
Dear Tiny:
This letter will confirm the Highlands proposal to provide Workmen's Compen sation coverage for Brovn & Root on the umbrella contract vith Exxon Chemical Company U.S.A. for the first two assignments - the compounding and finishing expansion - Phase I project and the line four (U) de-bottlenecking, effective 1/1/76. The basic program will be as follows:
1. Coverages - Statutory Workmen's Compensation, including Employer's Liability as required under the terms of the contract.
2. Rating Program - Maximum - None Minimum - Basic x Tax Multiplier Basic .10 Loss Conversion factor 1.10 of incurred losses (attached is definition of incurred losses) Tax Multiplier 1.05
Example: Ultimate Premium = (Standard Premium x .10 + Loss x 1.10) 1.05
There vill be an endorsement stating that Exxon Chemical U.S.A. will be re sponsible for payment of premium and will be entitled to all refunds due, along vith an endorsement restricting coverage to the respective Jobs.
I trust you vill find the above in order, hovever, if you have any questions, please advise.
Sincerely,
AFC/rm Attach.
Andrev- T,' Crist Vice President
EXX 01148*
. DEFINITION OF INCURRED LOSSES
Incurred Losses" means the sura of:
1. 2. 3. 4. 5.
..
All loss actually paid by the Company, '
Reserves for unpaid losses, including losses incurred but not
reported, as estimated by the Company,
Interest accruing after entry of a judgment against the insured,
Expenses incurred in seeking recovery against a third party, and
Allocated loss adjustment expenses representing the following
expenses of the Company in connection with claim settlements,
which can be directly allocated to a particular claim:
a) Attorney's fees
b) Court and other specific iteras of expense such as:
1) Medical examination to determine the extent of Company's
Liability
2) Expert medical or other testimony
,,
i 3) Laboratory and X-Ray 4) Autopsy
v
'5) Stenographic
6) Witnesses and Summonses '
7) Copies of Documents '
c) The following shall not be included as allocated loss adjust
oent expenses:
1) Salaries and traveling expenses of Company employees
(other than amount allocated as attorney's fees)
2) . Overhead .3) Adjusters' fees (fees paid to independent adjusters, or
attorneys, for adjusting claims.)
EXX 011*65
ao.joac *.
CONTRACT CHANGE ORDER
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Chengs Order Doted ______
l 5/7/75
. , Issued
9/26/75to Contmrt
APPROPRIATION WORK REQUEST
RC-1142
between Exxon Chemical Company U.S.A.,
an operating division of Exxon Chemical Company, a division of Exxon Corporation BROWN ROOT, INC.
Unit, Equipment, or Facility Involved Compounding and Finishing Expansion. Phase I
Contractor.
Contractor is authorized and agrees to make the following additions to or deductions from the work provided under the above Contract, performance of and payment therefor, except as otherwise specified herein, to be subject to all terms and conditions of said Contract :
ARTICLE 5-FEE
The following paragraphs shall be substituted for paragraph B entitled "Determination of Fee for Home and Branch Office Services."
B. Fee - Initial Assignment
l. CONTRACTOR'S fixed FEE for the initial ASSIGNMENT for furnishing home and branch office, services for said initial ASSIGNMENT is Two Hundred Ninety-five Thousand, Six Hundred and Eight U.S. dollars (US $295,608). Fixed FEE for the initial ASSIGNMENT is subject to adjustment pursuant to the provisions of paragraph D below.
It is understood that the above fixed FEE is based upon CONTRACTOR'S "Summary of Estimated Home Office Reimbursable Manhours Required" dated September 4, 1975, and includes additions and deletions due to Project Variance Notices 1,3,4, 6, 7, 9, 10, and 13. It is agreed that said fixed FEE also includes all amounts invoiced as FEE for Home and Branch Office Service from date of Contract to date of this Change Order No. 1.
(Continued on Page 2)
original amount of contract
ADDITION AMOUNT OF THIS DEDUCTION .....
j Unit Price Changed Fee from Unit Price
g Basis to Fixed Fee___________
IN WITNESS WHEREOF the partiea hereto hove executed thie Change Oder the day and year first above written.
ACCEPTED:
Exxon Chemical Company, U.S.A., an operating division of Exxon Chemical Company,
EXX 011503
Contract RC-ll*t2 Change Order I 9/26/75
2- -
Bj. Determination of Fee for Home S Branch Office Services - Subsequent Assignments
1. For each subsequent ASSIGNMENT, fixed FEE related to CONTRACTOR furnishing home and branch office services shall be established based on estimate agreed to by OWNER and CONTRACTOR of CONTRACTOR'S net incremental reimbursable home and branch office manhours pursuant to paragraph B-5-a of ARTICLE 4 - COSTS, required to accomplish WORK for said subsequent ASSIGNMENT multiplied by the applicable rate or rates specified below:
Note: Balance of this paragraph same as balance of ARTICLE 5-B-l, Page 21, of original contract.
2. Same as ARTICLE 5-8-2 of original contract.
3. Same as ARTICLE 5-B-3 of original contract. *
k. Same as ARTICLE 5-B-4 of original contract.
exx 011506
~v
Brown er'Root.lnc.
tfm?*v
n x MAR 1? W* 'Sf-llZls
ost Office Box Three, Houston, Texas 77001
Waite* E. Hjn Vice President
(713) 676-4365
March 8, 1376
Exxon Cheatcal Coopany c/o Brown Root, Inc. (Engr. Weft - Room F-7) Pott Office Box 3 Houston, Texas 77001
Attention: Mr. Fred Phillips Project Manager
Gentlemen:
Based on the results of a recent survey, our Operating CoonIttee has authorized a general wage Increase, copies attached, for the Houston and adjacent area, effective April k, 1376.
The general wage Increase will be granted to those that have e single rate Indicated; those that have a range of rates Indicated will receive a oarIt Increase as deemed appropriate.
It Is requested that you acknowledge receipt hereof by signing In the space provided below and returning one copy of this letter to the attention of the undersigned at the address set out above.
Very truly yours,
BROWN t ROOT, INC.
WEH.'lks Attachment
ACKNOWgaajumt/)
TITLE: DATE:
------ -
W. E. Hesson
DISTRIBUTION: Orig. - J. P. Lamar Copy - Contract file - J. T. Gosseti Billing File 34-1232 Keith Dodson M. Estes L. A. Woolverton H. C. Ellis Fred Siems
(J
EXX 011481
(r
Brown GFRootlnc. Post Office Box Three, Houston, Texas 77001
jack T. Gossett Senior Vice President
(713) 676-4363
July 14, 1975
Exxon Chemical Company c/o Brown & Root, Inc. (Engr. West - Room F7) Post Office Box 3 Houston, Texas 77001
Attention: Mr. Fred Phillips Project Manager
Gen 11emen:
The enclosed wage rates have been approved by our management and will become effective on August 17. 1975.
This wage adjustment has been deemed necessary, by our Operating Committee, so that we may remain competitive with wages being paid by others in our area.
A blanket raise will be granted to those that have a single wage indicated, and those that have a range of pay indicated will receive a merit raise as deemed appropriate.
We will appreciate your returning the acknowledgement copy after you have reviewed the revised rates.
Very truly yours,
JTG:1ks
J. T. Gossett
7-29-75 DISTRIBUTION:
J. P. LAMAR - Original
Contract File
T. P. Allison, Jr.
Marvin Estes
R. K. Wilson
Harold Ellis
JUL 2 5 1975
EXX 011507
t1
)ATE: August 17, 1975
JOB NUMBER 34-1232 EXXON CHEMICAL COMPANY - U.S.A.
BAYTOWN. TEXAS
CLASSIFICATION
BOILERMAKER BRICKMASON CARPENTER CEMENT FINISHER ELECTRICIAN INSULATOR IRONWORKER - STRUCTURAL IRONWORKER - REINFORCING LABORER - COMMON LABORER - SEMI-SKILLED MECHANIC - HEAVY DUTY MILLWRIGHT OPERATOR - HEAVY OPERATOR - LIGHT OILER PAINTER - SPRAY PAINTER - BRUSH PIPEFITTER INSTRUMENT FITTER PLUMBER RIGGER TRUCK DRIVER - HEAVY TRUCK ORIVER - LIGHT WELOER - PIPE WELDER - STRUCTURAL HELPER - GRADE 1 HELPER - GRADE II HELPER - GRADE III PARTY CHIEF INSTRUMENT MAN RODMAN - CHA INMAN
LEADERMAN FOREMAN GENERAL FOREMAN
HOURLY RATE
7.65 7.85 7.55 7.55 7.65 7.65 7.65 7.55 3.50 - 5.05 A.25 - 5.30 7.40 7.65 7.65 6.90 3.75 - 6.45 7.1*0 7.20 7.65 7.65 7.65 7.55 6.25 5.55 7.65 7.55 5.30 - 6.1*5 A.65 - 5.80 3.55 - 5.15 5.35 - 3.00 4.50 - 7.40 3.90 - 6.60
$0.25 ABOVE JOURNEYMAN RATE $0.60 ABOVE JOURNEYMAN RATE $1.00 ABOVE JOURNEYMAN RATE
Rates subject to periodic review and adjustment.
EXX 011508
ACCOUNTING ROUTING
( ) For you to handle
( ) Investigate and report to me
t.
( ) For your information, please return
( ) -Head end file
( ) Make corrections
C ) Complete and review with
REMARKS:_ {aIujl
______
/yjnyjyU' XjtiflxXuX- V
/4k
fiTZ
EXX 011S0g
ROu/lNG SLIP
Date 3'~
. 19_
TO
Harry G. Austin Larry Bennett James K. Bishop E. H. Blaschke George R. Brown Wm. A. Brown B. W. Bryant Dave Cooney Dave Craig L. J. Derrick L. 8. Devenney G. A. Dobetman L. C. Estes Drew M. Farmer Darrell Farris T. J. Feehan M. M. Fitch B. L. Frennesson Herbert J. Frensley Walter Card Tony Gibson Lem Goodwin Hjsgh W. Gordon, Jr. /ack. Gossett 'Glffin Hamilton P'. H. Harbour
E. Heffler vV\v Vayne Hise
\\ W. L. Hokanson Harry Hutchens H. M. Jacobson
PIOM
ris
TO
Larry Kopecky J im Lamar R. I. Loban E. M. Marsclli C. T. Martin Albert Maverick David Miller George L. Morris J. G. Munisten Robert E. Nebel J. C. Norris Foster Parker Howard Payne W. B. Pieper R. E. Plack Ben H. Powell, Jr. George Rayburn, Jr. E. D. Redding W. M. Rice
Bob Robertson Wayne Rodgers W. R. Ryan E. L. Tallichet W. H. Tonking u ''Delbert R. Ward
D. E. Warfield
J. A. Winner Lee Yarbrough E. M. Zerr, Jr.
t WO0M
t t 4^
CD For you to handle
For your signature
CD Sent in errror CD Make corrections CD Investigate and report to me
CD For your approval CD Read and file CD Advise what to do
Q Confidential
CD Take up with
O Returned ar iquested
Fc. your comments
Bfor your information, please return
CD See me personallyv before replying
. ^.
Remarks
rOMM M-t} JM !/
EXX 01151
Brown C-'RootInc.
MARCH 27, 1975
w* * -
CONFERENCE NOTES
EXXON CHEMICAL COMPANY, U.S.A. BAYTOWN/HOUSTON CHEMICAL EXPANSION_______PAGE 1 OF 9
LOCATION
Texas (Brown & Root, Inc., Administration Bldg.)
DATE:
March.26 1975
SUBJECT:
REVIEW OF BROWN & ROOT'S PROPOSAL DATED MARCH
17, 1975, TO EXXON CHEMICAL COMPANY, U.S.A. FOR
WORK AT THE BAYTOWN CHEMICAL PLANT AND THE HOUSTON
CHEMICAL PLANT._____
__________________
____
SESSION NO. 1 - GENERAL MEETING
ATTENDEES:
EXXON CHEMICAL
M. W. (Bill) Emmons-Exxon Engineering, Contracts Engineering D. P. (Dan) Sarnowski-Exxon Engineering, Contracts Engineering E. H. (Bus) Busby-Exxon U.S.A., Baytown Purchasing M. (Mose) Davis-Exxon U.S.A., Baytown Audit F. T. (Fred) Philips-Exxon Chemical U.S.A., Baytown Engineering J. C. (Joe) Simon-Exxon Chemical U.S.A., Baytown Engineering
BROWN & ROOT, INC.
T. J. Feehan J. T. Gossett J. C. Norris J. G. Munisteri F. W. Bell D.3SH ?Harbourr J. R. Ward R. K. Wilson H. Ellis
A. Maverick D. M. Farmer R. M. Cornforth T. M. Turzak A. C. Ter Poorten R. A. Michalk J. D. Ross E. J. Macartney
1. Introductions were made by Jack Gossett and Bill Emmons.
2. The contract or contracts will be awarded and administered by the Baytown Chemical plant. It is not foreseen that Exxon R and E will participate beyond contract award except, possibly in a consultant role or for supplementary
assistance.
3. The technical manpower projection curves, which were included in the proposal were discussed. Jim Norris explained that the manpower requirements made allowances for all work that we know about. It includes work that is committed but not yet released. The projection is still valid. No new work has been awarded since the proposal
was submitted.
EXX 011511
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 2 OF 9
4. Exxon requested comment on Brown & Root's potential for lump sum bidding or a "not to exceed" or "guaranteed max" formula after engineering is complete. It was explained that the climate is not suitable for Brown & Root to entertain acceptance of lump sum contracts at the present time. Basic reasons are: escalation is unpredictable, vendor delivery schedules cannot be relied upon, and acquisition of timely and accurate vendor data is difficult. Brown & Root would also be disinclined to consider an arrangement wherein certain cost elements were fixed and escalation would be allowed or fixed by formula for other elements.
Jack Gossett stated that it is Brown & Root's opinion that the type of contract proposed by Exxon is going to produce the most economical job and with best security for time ly completion because Exxon would be involved at every step and participate in all major decisions. In a lump sum bidding contest, the contingency that Brown Root would have to allow would far exceed any financial dis advantage that Exxon might feel exists under a cost plus type contract. In the event, however, that Exxon wanted to enter into an incentive type agreement. Jack said that we would be willing to talk about it after the
scope was defined.
5. Bill Emmons stated that Exxon Chemical's investment plan for the Baytown/Houston Chemical expansion program is still intact although it can be anticipated that some slippages may occur. However, as in any discussions about the Exxon Chemical's investment plants. Bill said such discussions must be qualified. Exxon disclaims any binding commitment on the magnitude of the projects, the accuracy of engineering manpower estimates, or the scheduled release date of Design Specifications. The Design Specifications for the Baytown Compounding and Finishing project and the Houston Chemical No. 3 Esterification project are virtually complete, however, and will be released between April 15 and May 1.
6. Joe Munisteri offered clarification of the technical manpower projection curves (see item 3, above). The 700 people represented in these curves represent only Petroleum and Chemical Industries Engineering. Total technical staff in Brown Root Houston numbers about 3300. When evaluating Brown & Root, one must assess total capability. If the required specialties are not available in one department, they can generally be found and made available from elsewhere in the organization.
EXX 011518
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 3 OF 9
7. Julian Ward explained that while the manpower projections generally indicate capacity to accomodate the Exxon Chemical work we are suffering in two areas; namely., electrical designers and civil-structural specialists.
Depending upon the release date timing, it may not be possible to staff the projects with the best qualified personnel in these disciplines. Brown & Root is not alone in this situation; other Houston contractors seem to be experiencing the same dislocation. Fred Philips expressed concern because there will be a heavy require
ment for these disciplines in the Baytowr Finishing and
Compounding project.
Jim Norris explained that Brown & Root wished to be.complete ly candid about our capability and did not wish to mis represent the facts. If Brown & Root is selected as a contractor for these projects it will be the first engineering job that we have executed for Exxon Chemical and it is our desire that it should be a good one.
8. In response to Bob Cornforth's question about the split of work under one or more umbrella contracts, Bill Emmons stated that no decision has been reached as to the number of contracts to be let or the division of work if more than one contractor is involved. He indicated that if there is more than one umbrella contract awarded, a decision will be made at the time of release of each job specification and this will be determined by contractors' workload, qualifications, experience with the type of facility proposed and evaluation of contractors prior
performance.
9. Jack Gossett and Julian Ward responded to Bill Emmon's question about Brown & Root's experience with umbrella type contracts by citing a number of examples. The manner in which the current Union Carbide Seadrift project is staffed and is being executed was described in detail.
10. In response to the agenda item relating to the unique qualifications that Brown & Root might have to assure successful execution of this project, Joe Munisteri stated, in summary, that Brown & Root can bring to bear the largest pool of engineering talent and construction manpower in the Houston area, has a strong corporate desire to maintain a good relationship with the Exxon organization, and can furnish the necessary resources, manpower and otherwise, without endangering present commitments.
11. One of Exxon's concerns, according to Bill Emmons, was Brown 4 Root's ability to organize and cope with a small project. Jack Gossett said that we can submit many examples of Brown & Root's participation in small project work, not only in construction but also in engineering.
EXX 011513
EXXON-CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 4 OF 9
An engineering task force can be sized to meet the needs of -any project; from the smallest to the largest. Examples were cited for both ends of the scale.
12. Another of.Exxon's concerns was Brown & Root's proposal to integrate the construction effort for BTFE and the Exxon Chemical work. Exxon was fearful that this would tend to dilute our performance on either or both projects. Jack Gossett said that he was aware of Exxon's concern and assured the Exxon group that the Exxon Chemical wor':, if awarded to Brown & Root, would in no way detract from or diminish the emphasis that BTFE is now receiving. In recognition of Exxon's concern, Jack said that we are now prepared to offer a separate Project Construction Manager for the Exxon Chemical work. Harold Ellis, candidate for the position, was introduced by Jack and his background described.
It is Brown & Root's opinion, however that savings can be realized by Exxon if certain facilities and services for the two projects were shared. Jack handed Bill Emmons a list of those items and their potential realization. This list was given previously to Bill Craft.
ATTENDEES:
SESSION NO. 3
EXXON CHEMICAL
M. W. Emmons E. H. Busby F. T. Philips J. C. Simon
BROWN & ROOT, INC.
T. J. Feehan J. T. Gossett J. C. Norris (part time) F. W. Bell J. R. Ward H. Ellis
R. M. Cornforth T. M. Turzak A. C. Ter Poort J. D. Ross E. J. Macartney
Most of the discussion during the Project Execution Session dwelt upon Brown & Root's technical qualifications, manpower availability, engineering control procedures, project organization invoicing practices, and clarification of procurement pro cedures as stated in the proposal. The highlights of these
EXX 011514
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 5 OF 9
discussions will be described below. Exxon has been expoed to our scheduling and cost control techniques and systems, has confidence in them, and did not wish to cover these aspects of project execution at this time.
1. Bill Emmons gave the group a rundown on the planned release dates for the projects involved in the current investment program.
DATE
PROJECTS TO BE RELEASED
April, 1975
June July Oct. Nov. Dec. Jan. 1976 April July
2 (Finishing and Compound
ing, No. 3 Esterification) 1 2 1 2 1 2 1 1
The majority of the projects are less than $10MM total project value. One project tentatively to be released in 1975 may exceed $20MM. Most projects involve less than 75,000 engineering manhours and some as few as 20,000 manhours. Consolidated total project value will be some thing less than $150MM. Exxon estimates that construction on the first projects will begin in the 3rd or 4th quarter of this year. Construction on the last project will begin in late 1977 and complete in 1979.
The pattern of work described above is similar to a long term program Brown & Root once handled for Texas Eastman in Longview, Texas.
2. The Exxon Chemical expansion program described in the inquiry and in these discussions does not include the Baytown Olefins project. The subject expansion program bears little relationship to BTFE whereas the Baytown Olefins project is complementary to BTFE.
3. In response to Tom Feehan's query concerning the technical representation Exxon will commit to the project. Bill Emmons stated that it is their intention to assign a project manager, presently not selected, who will have overall responsibility. Each separate project will have Exxon project engineering representation. In some cases a project engineer might be assigned more than one project. It is anticipated that Exxon's project engineers will be in residency in Brown & Root's offices.
EXX 01ISIS
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 6 OF 9
4. Julian Ward gave an impressive description of how the mix of talent and experience in Petroleum and Chemical Industries engineering fit the requirements of Exxon's initial assign ment. Areas of strength which he emphasized were: extruder lines, pellet storage, fluffing techniques, pollution abatement, noise abatement, building layout and architectural design, materials handling, solids handling, automated controls, pneumatic conveying and plant revamp or modification projects.
5. Julian described a typical engineering task force organization and clarified that it would be Brown & Root's intention to "task force" the Exxon work. Among the points that Julian made were:
a. All disciplines except HVAC and plumbing would be represented in a typical task force for a
major project. b. The architects on Brown & Root's staff are
graduate architects and not made over civil or structural engineers. c. The trend toward electronic instrumentation and computer has tended to shift work load from the instrument design discipline to electrical design. This is one of the reasons for the critical shortage in the electrical design craft. d. Many of our process engineers understand the requirements of project engineering and are sensitive to project needs. Thus, on a field assignment, they can function effectively without
detailed direction. e. If a full time requirement for certain specialists does not
exist, these specialists can be moved in and out of the task force to perform specialized tasks and to upgrade the skills of less qualified engineers or designers assigned to the project. Time is charged to the project only as worked.
6. Julian clarified that in a task force configuration, the disciplines report to and are wholly responsible to the assigned project engineer for performance and productivity. A dotted line relationship exists, however, between each discipline and corresponding discipline heads. This link exists for purposes of salary administration, promotions, and guidance on the more complex technical problems..
7. Project engineering staff has been remarkably stable. Out of a total force of 44 project engineers. Brown fi Root
E*X 011516
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 7 OF 9
has lost only one to another firm within the last year or so.
8. Manhour control is achieved by tight coordination by the project engineer who oversees the operation to make sure that tasks are accomplished in the.right sequence.
9. With regard to building construction, Julian explained that this work is normally assigned to the Brown & Root's building construction group who are specialists in this field.
10. In response to Exxon's question concerning how we would staff up to handle work at more than one geographical site, Julian explained that this is no problem. It is an exact parallel to the way we generally organize a task force. A project is broken down into areas and each area is under the jurisdiction of a specific project engineer.
11. The deunaging, disrupting and costly effects of late design changes was discussed briefly. The manner in which changes are priced out was also touched upon. Exxon agreed that changes were undesirable but, notwithstanding, changes could be expected to occur on these projects.
12. It was clarified that the project organization charts contained in the proposal represented the ultimate organization, i.e., the one which would exist at the peak of project activity. The organization for the initial assign ment would be considerably leaner in supervision and staff support.
13. Jack Gossett explained that the chart depicting the construction organization would have to be greatly modified in view of the decision to assign a separate Project Construction Manager for the Exxon Chemical work. He clarified that Harold Ellis, the Project Construction Manager designee, would be responsible for work at both the Baytown and Houston Chemical sites. Bill Bell stressed
the desirability of bringing Harold into the project early for orientation.
14. Jack Gossett described the role of the Project General Manager. He explained that the Project General Manager is the entity that ties engineering and construction together. He is responsible for overall cost and schedule control and contractor performance. He is the major point of contact for the client Project Manager.
EXX 011517
C-.
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 8 OF 9
The Project General Manager and his staff will be housed in the same location as the engineering task force. J. D. Ross is Brown & Root's candidate for Project General Manager.
15. Cost reports and invoice practices were discussed brief ly. The following points were made:
a. Engineering cost reports are available 10-15 days after the month end closing.
b. Engineering manhour reports are published weekly, covering the activity of the preceding week.
c. Invoices for field labor and the supporting check register are billed on Wednesday of each week covering the payroll for the preceding week. Transfer of funds are required to be made by the following Friday.
d. A Cost Comparison and Projection Report is publish ed monthly. This report takes into account not only actual expenditures but also commitments.
16. Purchasing, expediting and inspection procedures and organization were discussed. Here are the significant points
- touched upon:
a. The role of the Procurement Coordinator was described by Bill Bell. It is Brown & Root's recommendation that this position be included in the Exxon Chemical project staff.
b. Brown & Root purchases on a single project basis, i.e., purchase orders do not combine the requirements for more than one project. Occasionally, however, commodity buyers may consolidate the requirements for more than one project for inquiry purposes.
c. It is desirable to have an approved vendors list in hand before the first inquiry is issued.
d. Domestically, Brown & Root uses only their own personnel for expediting and inspection. Source expediting is conducted by field expeditors but all expediting activities and reports are coordinated by a project expeditor assigned from the home office expediting staff.
e. Foreign expediting and inspection is normally performed by agency personnel under contract to Brown 6 Root, e.g., Lloyds. Occasionally, however. Brown & Root Quality Assurance inspectors
EXX 011518
r
EXXON CHEMICAL COMPANY, U.S.A. CONFERENCE NOTES MARCH 27, 1975
PAGE 9 OF 9
will make the final inspection even to the extent of seeing that the.shipment is properly loaded.. f. Brown & Root expedites subvendors as a normal practice. Routinely, we request buy-out lists from vendors as a part of the purchase order conditions. g. Expediting costs have escalated disproportion ately, primarily because of vendor schedule slippages that are being experienced across the board. Some of the devices we are employ ing to minimize slippages are to use project engineers as expeditors, and place engineers or designers in residence in vendors shops. h. Quality Assurance is a part of engineering. Inspectors and expeditors file cross-reports because significant expediting information is frequently derived from source inspections. Brown & Root has no objection to the utilization of Exxon inspectors as long as the division of responsibility is defined and understood.
17. It is planned to model the Finishing and Compounding pro ject, in fact, a planning model has already been built. No. 3 Esterification project does not lend itself to a model. Brown & Root has no preference as to model practices. One point in favor of models is that the design can be more rapidly visualized and assimilated by client project personnel than by reviewing orthographic drawings and layouts.
18. In response to Exxon's query on Brown & Root's capability to produce operating manuals, it was suggested by Julian Ward that our people are not oriented in this direction. We are quite capable of preparing process descriptions, start up, shutdown and emergency procedures but trans lating these data into instructions for operators can best be done by people who have an extensive operating background.
The meeting was adjourned to enable Exxon personnel to interview Brown & Root's proposed candidates for key project assignments.
EJM/maw
cc: Brown & Root Attendees M. Estes W. E. Hesson
EXX 011519
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EXX 011523
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XX 011524
p, c: OFFICE MEMO < BROWN & ROOT', INC.
TO: THOSE CONCERNED
FROM:
J. P. UMAR
SUBJECT: NEW JOB ASSIGNMENTS--PETROLEUM & CHEMICAL DEPARTMENT
JUNE 4, ,1975
THE FOLLOWING JOB NUMBERS HAVE BEEN ASSIGNED TO THE PETROLEUM & CHEMICAL DEPARTMENT T'-' COVER THE FOLLOWING NEW CONTRACTS:
JOB NO.
JOB DESCRIPTION
34-1229
SHELL DEVELOPMENT COMPANY - CONSTRUCTION OF THE PILOT PLANT AND LABORATORY BUILDING IN HOUSTON, TEXAS
"''34-1232 34-4057
EXXON CHEMICAL, U.S.A. - ENGINEERING, CONSTRUCTION, AND PROCURE MENT OF PHASE I OF COMPOUNDING AND FINISHING PLANT AT BAYTOWN, TEXAS
SHELL DEVELOPMENT COMPANY - RENTAL OF CONSTRUCTION & SMALL TOOLS, CONSTRUCTION AND WORKMEN'S SUPPLIES
34-4105
AMAX NICKEL REFINING COMPANY, INC. - CONTINUOUS MAINTENANCE AT BRAITHWAIIE, LOUISIANA
EXX 11525
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EXX 011526
t
REQUtJi'
FOR
ASSIGNMENT
OF
JOB
NUMBE1)C1
BROWN & ROOT, INC. ANO ASSOCIATED COMPANIES
T F,.,M: SUBJECT:
ACCOUNTING DEPARTMENT
- ^7eaJ/J
JOB NUMBER ASSIGNMENT
iCOMPAN Y )
SUB-DIVISION:
f
*1 / fir*
I OATH
6? &S^
lOEPARTMCNTI
PLEASE ASSIGN A JOB NUMBER TO BE USED FOR RECORDING OF INCOME AND COSTS RELATING TO THE CON TRACT DETAILED BELOW:
OWNER:
-kTitOrJ
j-____ {crtj
JSA
PRIME CONTRACTOR
CONTRACT DATE: _ F WORK:
DESCRIPTION OF
7, /f7f /A/peg/Vg ___/%e**/c/
- CtunaooArJiI/,
/2a/J__ S'trf/sAsAJa
- /^4/irr__ L___2^ yg7~ Me /by TcuttJ
(3Aernt //*/
___ /gtLdf. OPztJZ. dsS'tGjjjHetf/r
TYPE OF CONTRACT: UNIT PRICE (
OTHER (
),
), LUMP SUM (
), FORCE ACCOUNT (
), COST PLUS FEE (>< )
r MATFD f~nMPI FTIOM OATF-
A^O C>C*t4eC / /97 Q- AiSCM rnMTIMl Ifll 1^ (
).
CONTRACT AMOUNT: $
/O COO OP'D
ACTUAL (
), ESTIMATED ( X ).
TERMS OF PAYMENT: PROGRESS BILLINGS-MONTHLY ( X^A WEEKLY (
), BIWEEKLY ( _ ).
O) **
SEMIMONTHLY (
), REVOLVING FUND (
), OTHER I V /a)\ (*)/jJ-{kurns Akeo&/`
I EXPLAIN)
PERCENT RETAINED:
Zf'____ % OF _ -F~ee.
OTHER (
),: _______________________
TO BE COMPLETED ONLY FOR JOINT VENTURES: PARTNERS AND PARTICIPATION: SPONSOR:________ ;______________________________________________
(EXPLAIN!
QUADRUPLICATE - PURCHASING
ACCOUNTING
EXX 011527