ABSTRACT
Authorization by the customer or project owner means that the contractor has been given formal written instruction to proceed with the project on terms that have previously been negotiated and agreed. The first step towards project implementation in any well-run company is the issue of an authorization document. One necessary item on a project authorization is the signature of a member of the contractor's senior management. Once a new project has entered an organization, it has to be formally 'entered into the system' so that all the necessary accounting, planning, progressing and other administrative procedures can be put in place. Project authorizations are usually distributed to all company departments for general information, but the supporting technical and commercial documents are only handed over to the project manager. For some projects contractors compile a procedures manual. Physical preparations must be made for any project that requires accommodation, plant, equipment, services such as gas, electric power, compressed air, water and so on.
