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DELAY DAMAGES AND PERFORMANCE LIQUID DAMAGES EPC-WATER

ANNEX J PIPELINE
REV.0

A. DELAY DAMAGES

1. The Contractor acknowledges that scheduled completion is of the essence this


agreement and the completion of the work and that the Contractor will, at all times, as
reasonably required, provide sufficient qualified labor and timely provided materials to
complete the work in a timely fashion to achieve the Construction Schedule Milestone
dates as set forth in Annex G and H of the Contract.

2. The Contractor therefore guarantees the specific date(s) set forth in the Contract
Schedule that are necessary for the substantial completion of the Work by each assigned
Sites. It is hereby agreed that the actual damages and loss which the Employer would
incur as a result of Contractors failure to complete the work by such a date would be
impracticable and infeasible to determine. The parties agree that the amount set forth
below are a reasonable and fair estimate of the damages and loss which Employer
would suffer for each calendar day by which Contractor is late in completing such work.

3. It therefore agreed that, in the event of such failure by Contractor, Contractor shall pay
the Employer the appropriate daily amount(s) set forth below for each calendar day, or
fraction of by which the actual final date of completion of work is later than the firm date
set forth in the Construction Portion of the Contract Schedule, up to a maximum of such
calendar days or an agreed upon percentage of the Contract Price set forth in the
Contracts commercial terms.

4. The Liquidated Damages shall be zero point one five percent (0.15%) of the total
aggregate Contract Price for the Contract per Calendar Day, or part of day, and shall not
exceed a maximum total of ten percent (10%) of the aggregate Contract Price for the
Contract.

Specific Activity Number of Liquidated Maximum or Cap


Completion Date Calendar damages
days Assessed
(DELAY) Per Day SAR XXXXX 0.15% of Contract Price
DEFAULT Per Day SAR XXXXX 0.15% of Contract Price

B. PERFORMANCE GUARANTEES

If Performance Tests show that the performance of the Water Pipeline system does not meet
the requirements specified in the CONTRACT by [completion date] , Employer shall notify
Contractor thereof in writing and the Contractor shall be liable to damages for non-
performance by Employer enforcing payment through the Performance Bond lodged with
the Employer as follows: The parties agree that such payment, commonly referred to as
liquidated damages shall be to the exclusion of any other Contractor liabilities for delays.

SAUDI ARABIAN MINING COMPANY Page 1


TRANSPORATION OF TREATED WATER FROM TAIF TO MAADEN MINE SITE
CONTRACT NO. 10-1448-HQ-715
DELAY DAMAGES AND PERFORMANCE LIQUID DAMAGES EPC-WATER
ANNEX J PIPELINE
REV.0

1.1 Quantity

For each whole or part of one percent (1%) by which the throughput of the Water
Pipeline system during the PERFORMANCE TEST is less than the respective specified
amount stipulated in the CONTRACT, the Contractor shall pay two percent (2.00%) of
the aggregate of the Contract Price of the Contract.

Should however, the throughput be less than ninety five percent (95%) of the one
specified in the CONTRACT, over and above the payment specified in the preceding
paragraph, Contractor shall at Employers option without delay and without any cost to
COMPANY adjust, complete or replace equipment or parts thereof so that at least ninety
five percent (95%) of the capacity is reached.

SAUDI ARABIAN MINING COMPANY Page 2


TRANSPORATION OF TREATED WATER FROM TAIF TO MAADEN MINE SITE
CONTRACT NO. 10-1448-HQ-715