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CLAUSE NUMBER OF CONDITIONS OF CONTRACT

3.1 Obligations of the Contractor
3.2 Assignment and Subletting
3.3 Commencement and Completion
3.4 Defects Liability
3.5 Payment
3.6 Supervisor Instructions
3.7 Increase or Decrease in Cost
3.8 Quantities
3.9 Statuary Obligations, Notices, Fees and Charges
3.10

Contractor’s Superintendence

3.11

Insurance Against Injury to Persons and Property

3.12

Insurance of the Works

3.13

Determination by the Employer

3.14

Determination by the Contractor

3.15

Articles 1266 and 1267 of the Civil Code

3.16

Surety Bond

3.17

Arbitration

3.18

Bribery

3.19

Patent Rights

3.20

Law of the Contract

3.21

Construction Program

Appendix to the Conditions of Contract

PT. WIETASHA PUTRINDO WISATA

3.00 - 1

ALAM KULKUL RESORT PROJECT

1 The Contractor shall with due diligence and in a good and workmanlike manner carry out and complete the Works to the reasonable satisfaction of the Supervisor and The Employer. 3.1 OBLIGATIONS OF THE CONTRACTOR 3. assign this Contract.3 COMMENCEMENT AND COMPLETION 3.2. PT.3.2 If it becomes apparent that the Works will not be completed by the Date for Completion (or any extended date in accordance with the provisions of this sub-clause) for reasons which are under the control of the Employer then the Contractor shall so notify the Supervisor who shall extend the time for completion by a reasonable period.3.3.3 If the Works are not completed by the date for Completion or by any extended date fixed under sub-clause 3.2.3. WIETASHA PUTRINDO WISATA 3.2 The Quality and Quantity of the Work include in the Contract Sum shall be deemed to be that which is set out in the Specifications and Drawings.3.1 The works shall be commenced on the date for Possession stated in the appendix and the Contractor shall thereupon begin and regularly and diligently proceed with the works and shall complete the same on or before the Date for Completion stated in the Appendix subject to the provisions of sub-clause 3. 3.1.2 The Contract shall not sublet any part of the Works without the written consent of the Supervisor whose consent shall not unreasonably be withheld.00 .1.2 ALAM KULKUL RESORT PROJECT .3.4 When in the opinion of the Supervisor the Works have been practically completed.2 3.00 CONDITION OF CONTRACT 3.2 ASSIGNMENT AND SUBLETTING 3. 3.3. 3.1 The Contractor shall not without the written consent of the Employer. 3. 3.2 then the Contractor shall pay to the Employer liquidated and ascertained damages at the rate stated in the Appendix for every day or part of a day during which the Works remain uncompleted. he shall forthwith issue a certificate to that effect and Practical Completion of the Works shall be deemed to have taken place on the day named in such certificate.

3. PT.1 have been discharged. 3. The said bank and the terms of the said guarantee shall be to the approval of the Employer and the cost of obtaining and maintaining the guarantee shall be borne by the Contractor.4.5. the Supervisor will issue an interim payment recommendation within 5 (five) days of receipt of the Contractors claim. the amount certified being subject to 2 ½ % retention less only the amount of any interim payments made under subclause 3.5. issue a certificate to that effect.1 Any defects. 3. The Supervisor shall within 2 (two) days of receipt of the interim payment recommendation.3 ALAM KULKUL RESORT PROJECT .3 Provided the Contractor shall have supplied all documentation reasonably necessary for the computation of the amount to be certified the Supervisor shall within 3 days after the date certified under sub-clause 3. the amount being subject to 5% retention less only the amounts of previous interim payments and the repayment of the appropriate part of the advance payment (if any).5.5.5. 3.4 On execution of the Contract the percentage of the Contract Sum stated in the Appendix as advance payment (if any) shall be paid against the unconditional Letter of Guarantee of a bank licensed to undertake foreign exchange (Bank Devisa) to be jointly and severally bound with the Contractor to the Employer.2 issue a final certificate certifying the amount remaining due to the Contractor or due to the Employer as the case may be and such sum shall as from the expiry of the period stated in the Appendix from the date of the final certificate be a debt payable as the case may be the Employer to the Contractor or by the Contractor to the Employer.00 .3. when in his opinion the Contractor’s obligations under sub-clause 3.5 PAYMENT 3. certify interim payment to the Contractor in respect of work executed plus 75% of the value of any materials or goods on site for the purposes of the works.2 The Supervisor shall.3.2 Provided the Contractor shall have supplied all documentation reasonably necessary for the computation of the amount to be certified the Supervisor shall within 45 days after the date of Practical Completion certified under sub-clause 3.4. WIETASHA PUTRINDO WISATA 3.1 and the amount of the advance payment ( if any ) and the Employer shall pay to the Contractor the amount so certified within the period stated in the Appendix from the date of the certificate.1 Provided the Contractor shall have issued a claim for interim payment at intervals of one month complete with all supporting documentation and in the format required by the Supervisor. shrinkage or other faults which appear within the period stated in the Appendix from the date of Practical Completion and which are due to materials or workmanship not in accordance with the contract shall be made good by the Contractor at no cost to the Employer unless the Supervisor shall otherwise instruct.4 DEFECTS LIABILITY 3. and the Employer shall pay to the Contractor the amount so certified within the period stated in the appendix from the date of the certificate. 3.4.4 certify payment to the Contractor of the total amount to be paid to the Contractor under the Contract.4.

3. 3. import duties or taxes.2 A fair valuation where there is no work of a similar nature set out in the Contract. 3. If instructions are given orally the Supervisor shall forthwith confirm them in writing.3 the addition. or 3.8 QUANTITIES This is a Lump Sum Contract – the tendered must measure his own quantities and satisfy him that any descriptions provided accurately reflect the work shown on the Drawings and Specification. which the Contractor shall forthwith.1 The Supervisor may issue written instructions.6 SUPERVISOR’S INSTRUCTIONS 3. 3. water.4 ALAM KULKUL RESORT PROJECT .1 The alteration or modification of the design or quality or quantity of the Works or 3.6.6.3 The amount to be added to or deducted from the contract sum in respect of instructions may be agreed between the Employer and the Contractor complying with any such instruction but if not so agreed there shall be added to or deducted from the Contract Sum an amount determined in accordance with the following rules : 3. PT.6.2 The Supervisor may.6. omission or substitution of any work. 3.6.3.1 additions or omissions shall be valued in accordance with the relevant prices in the Bills of Quantities for work of a similar nature set out the Contract. order in writing.3.2.. wage rates or allowances in respect of labor. WIETASHA PUTRINDO WISATA 3.4 the expenditure of any provisional sums 3. freight or insurance rates.6. power.6.6.2.2.3. without invalidating the Contract. or for rises or falls in the exchange rates of currencies.6. 3. consumable stores. fuel. communications. carry out.2 the addition.7 INCREASE OR DECREASE IN COSTS There will be no variation in the Contract Sum as a result of any change in the cost of materials. alteration or mission of any obligations or restrictions imposed by the Employer.2.00 . etc.

1 The Contractor shall comply with.1 The Contractor shall give or provide all necessary superintendence during the execution of the works as long thereafter as the Supervisor may consider necessary for the fulfilling of the Contractor’s obligations under the Contract. WIETASHA PUTRINDO WISATA 3.11 INSURANCE AGAINST INJURY TO PERSONS AND PROPERTY 3.10. TPAK (Advisory Board on Architecture). 3.00 . and shall indemnify the Employer against.10.2 The Contractor shall be liable for. or any regulation or by law of any local or other duly constituted authority which has any jurisdiction with regard to the works. claim or proceedings in respect of any injury or damage whatsoever to any property real or personal in so far as such injury or damage arises out of or in the course of or by reason of the carrying out of the Works. and shall be constantly on the Works and shall give his whole time to the superintendence of the Works. decree or regulation in respect of personal injury to or the death or any person whosoever arising out of or in the course of or caused by the carrying out of the Works.11. 3. and shall indemnify the Employer against. 3. his servants or agents.9.11.3 The Contractor will pay all other fees and charges necessary for the completion and hand over of the works.2 The Contractor’s superintendent shall be approved by the Supervisor. liability. PT. any expense. NOTICES.9. and provided always that the same is due to any negligence omission or default of the Contractor. and give all notices required by and any Law or Decree of the Central Government. FEES AND CHARGES 3. loss. claim or proceedings whatsoever arising under any law. 3.2 The Employer will obtain the following permits SIPPT (Land Title).1 The Contractor shall be liable for. TPKB2 (Advisory Board on Building Installation). Block Plan. TPKB1 (Advisory Board on Building Structure – Foundations). 3.10 CONTRACTOR’S SUPERINTENDENCE 3.5 ALAM KULKUL RESORT PROJECT . any expense. which approval may at any time be withdrawn.9.9 STATUTORY OBLIGATIONS. 3.3. liability. IMB (Building Permit) and Occupation Permit. except to the extent due to any act or neglect of the Employer or of any person for whom the Employer is responsible. loss.

2 of these Conditions.4 The insurance in respect of claims for personal injury to.6 Should the Employer make default in insuring or in continuing to insure as required by subclause 3. WIETASHA PUTRINDO WISATA 3.12. or of any Nominated Sub-Contractor. flood. delivered to placed on or adjacent to the work and intended therefor (except temporary buildings. the Employer shall produce for inspection the policy for the insurance required by sub-clause 3. of any subcontractor. bursting or overflowing of water tanks. person’s employment. the Contractor’s obligation to insure as aforesaid shall be satisfied if the Nominated Sub-Contractor shall have insured in a like manner.11.3 of this Condition and the receipt for the premium paid 3. tools and equipment owned or hired by the Contractor or any sub-contractor or Nominated Sub-Contractor) shall be at the sole risk of the Employer as regards loss or damage by fire.11. lighting. the Employer shall maintain such insurance as are necessary to cover the liability of the Contractor or. as the case may be and arising out of and in the course of such. as the case may be. or the death of any person under a contract of service with the Contractor or any sub-contractor or any nominated SubContractor.1 All work executed and all unfixed materials and goods. aircraft and other aerial devices or articles dropped therefrom. in respect of any persons employed by any Nominated Sub-Contractor. explosion. his servants or agent. tempest. 3.3 Without prejudices to the liability of the Contractor to indemnify the Employer under clause 3. in respect of personal injury or death arising out of or in the course of or caused by the carrying out of the Works not due to any act or neglect of the Employer or of any person for whom the Employer is responsible and in respect of injury or damage to property real or personal arising out of or in the course of or by reason of the carrying out of the Works.5 As and when he reasonably required so to do by the Contractor. shall be placed with the Asuransi Tenaga Kerja (ASTEK).11.11.11. plant.11.1 and 3.3. riot and civil commotion.00 . Provided that. including works carried out by such subcontractor his servants or agents. 3.3 of this Condition the Contractor may himself insure against any risk with respect to which the default shall have occurred and the cost of the premium shall be added to the Contract Sum.11. PT. earthquake. storm. 3. or by such Nominated Sub-Contractor his servants or agents or such Nominated Sub-Contractor.6 ALAM KULKUL RESORT PROJECT . apparatus or pipes.12 INSURANCE OF THE WORKS 3.11.

If the Employer shall at any time fail upon request to produced any receipt showing such a policy as aforesaid to be effective then the Contractor may in the name and on behalf of the Employer insure all work executed and all unfixed materials and goods as aforesaid against loss or damage occasioned by the said contingencies and shall upon production of receipt for any premium paid by him be entitled to have its amount added to the Contract Sum.00 . or 3.12.3 if he fails to proceed regularly and diligently with the Works. replace or repair any unfixed materials or goods which have been destroyed or injured. If any loss or damage affecting the Works or any part thereof or any contingencies. or 3.13. The replacement and repair of unfixed materials and goods and the removal and disposal of debris shall be deemed to be a variation required by the Supervisor.2The Contractor with due diligence shall restore works damaged.3. or 3. 3.12.12. WIETASHA PUTRINDO WISATA 3. remove and dispose of any debris and proceed with the carrying out and completion of the Works.13. and such policy and the receipt for the premium paid shall upon request be produced for inspection by the Contractor.13. 3.13 DETERMINATION BY THE EMPLOYER 3.2 The Employer shall maintain in the joint names of the Employer and the Contractor a proper policy of insurance against that risk.1 Without prejudice to any other rights or remedies which the Employer may possess. 3.7 ALAM KULKUL RESORT PROJECT .2.2.13.2 if without reasonable cause he wholly suspends the carrying out of the Works before completion thereof.4 if he refused or persistently neglects to comply with a written notice from the Supervisor requiring him to remove defective work or improper materials or goods and by such refusal or neglect the Works are materially affected.5 If the Contractor becomes bankrupt or makes any composition or arrangement with his creditors or has a winding up order made or a resolution for voluntary winding up passed or a Receiver of Manager of his business is appointed or possession is taken by or on behalf of any creditor.13. nature and location thereof and 3. then upon discovering the said loss or damage the Contractor shall forthwith give notice in writing both to the Supervisor and the Employer of the extent. the Employer may but not unreasonably or vexatiously by notice by registered post or recorded delivery to the Contractor forthwith determine the employment of the Contractor under this Contract if the Contractor shall make default in any one or more of the following respects . PT.1The occurrence of such loss or damage shall be disregarded in computing any amounts payable to the Contractor under or by virtue of this Contract.

16.15 ARTICLES 1266 AND 1267 OF THE CIVIL CODE The Employer and the Contractor hereby irrevocably renounce all benefit of Articles 1266 and 1267 of the Civil Code to the end that the Employer or Contractor shall have the right to terminate the contract by written notice.17.8 ALAM KULKUL RESORT PROJECT .16 SURETY BOND 3. that when the Certificate of Practical Completion in accordance with subclause 3.14 DETERMINATION BY THE CONTRACTOR Without prejudice to any other rights or remedies which the Contractor may possess.2 Provided always. a person to be appointed on the request of either party by the Chairman of the Court of appeal in Denpasar. WIETASHA PUTRINDO WISATA 3.1 If any dispute or difference concerning this contract shall arise between the Employer or the Supervisor on his behalf and the Contractor such dispute or difference shall be and is hereby referred to the arbitration of a person to be agreed between the parties or.5 within 28 days of such payment being due.16. 3.14.17 ARBITRATION 3.00 .1 If the Employer fails to make any interim payment due under the provision of clause 3.3. the Contractor may but not unreasonably or vexatiously by notice by registered post or recorded delivery to the Employer forthwith determine the employment of the Contractor under this Contract if the Employer shall make default in any one or more of the following respect.1 The Contractor shall obtain the guarantee of a bank licensed to undertake foreign exchange (Bank Devisa) to be jointly and severally bound with the Contractor to the Employer in a sum as stated in the Appendix for the due performance of the Contract under the terms of a bond.3. The said bank and the terms of the said bond shall be to the approval of the Employer and the cost of obtaining the bond shall be borne by the Contractor. 3. 3.17. 3. 3. failing agreement within 14 days after either party has given to the other a written request to occur in the appointment of an arbitrator. PT.2 If the Employer becomes bankrupt or makes any composition or arrangement with his creditors or has a winding up order made or resolution for voluntary winding up passed or Receiver or Manager of his business is appointed or possession is taken by or on behalf of any creditor.4 shall have been issued. the said bank shall be released from the bond.14.2 The rules under which any arbitration proceedings are held shall be the rules of Badan Arbitrasi Nasional Indonesia (BANI ). or 3. 3.

21.3 The Employer and the Contractor hereby irrevocably waive their rights of appeal under Article 641 of the Code of Civil Procedure and agree that the award of the arbitrator shall be final and binding.3. 3. or if the like act shall have been done by any person employed by the Contractor or acting on his behalf ( whether with or without the knowledge of the Contractor ).1 The Contractor in coordination with Supervisor shall provide and keep on site a copy of the current master program.21.9 ALAM KULKUL RESORT PROJECT . critical dates and program float times. except where such infringement results from compliance with the design or specification provided by the Employer. trademark or name or other protected rights in respect of the Works.4 The arbitration proceedings shall be held in Denpasar.00 .2 The Contractor shall provide to the Supervisor all reasonable information required for the master program of the works to e regularly updated in respect to the progress of the works of this contract. 3.21. WIETASHA PUTRINDO WISATA 3. 3.21 CONSTRUCTION PROGRAMME 3. 3.18 BRIBERY The Employer shall be entitled to determine the employment of the Contractor under this or any other contract if the Contractor shall have offered or given or agreed to give to any person any gift or consideration of any kind as an inducement or reward for doing or forbearing to do or for having done or forborne to do any action in relation to the obtaining or execution of this or any other contract with the Employer or for showing or forbearing to show favor or disfavor to any person in relation to this or any other contract with the Employer. PT.19 PATENT RIGHTS The Contractor shall save harmless and indemnify the Employer from and against all claims and proceedings for or on account of infringement of any patent right.17. 3. 3. design.17.3 The Contractor shall within fourteen days of contract award submit to the Supervisor a comprehensive and competently prepared construction program showing dates for commencement and completion of each trade in each major section of the works and showing Practical Completion by the due date and including all critical activities.20 LAW OF THE CONTRACT The Law of the Contract shall be the law of the Republic of Indonesia. 3.

=============== PT. 3.3.4 The program shall be updated at not less than weekly intervals in the light of the progress of the works.00 . WIETASHA PUTRINDO WISATA 3.21.10 ALAM KULKUL RESORT PROJECT .21.5 Immediately delays or extensions of time are evident. the Contractor shall be required to reprogram the contract works forthwith to extend fully over new contract period.

5 .5 .00 . days Amount of Advance Payment 3. 3. .Appendix to the Conditions of Contract Clause Date for Possession 3. .% Amount of Insurance Cover Against injury to Person and Property 3. .12 By Contractor Amount of Surety Bond 3.16 5% PT. .1% of the Contract Sum per day or part day Defect Liability Period 3.4 Three calendar months Time between claim for interim Payment and issue of interim Payment recommendation and 3.11 By Contractor Insurance of the Work 3.3 to be advised Liquidated and Ascertained Damage 3. days Period for Honoring Certificates 3. . 0. .3 Rp. days Time between issue of interim Payment recommendation and Issue of payment certificate. .11 ALAM KULKUL RESORT PROJECT .3 to be advised Date for Completion 3. .5 . WIETASHA PUTRINDO WISATA 3.5 .