REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD

INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

Your Ref: email

Date: 13th June 2019

CAPE Ref: 19-06/ME/LP/ES13133R1

Date: 17th June 2019

To: M/s Environment Development Co. Ltd. (EDCO)

Jubail 31961,
Kingdom of Saudi Arabia

Attention: Eng. Nasser Khaled Al-Faleh

Supply Chain Manager.

CC:

Dear Sir,

Subject: Refractory Works for Burner Chamber in Shop

We thank you for your valued enquiry for the above refractory repair works. We have pleasure in
submitting our firm proposal to carry out the refractory works for the above reference and we attach
the following documents:

Attachment 1 - Work Scope, Inclusions and Exclusions

Attachment 2 - Work Schedule and Manpower
Attachment 3 - Technical Clarifications
Attachment 4 - Commercial Clarifications and Qualifications
Attachment 5 - Schedule of Prices

We understood that no contract shall arise from this firm proposal unless and until the order has been
accepted in writing on behalf of Cape RB Hilton SA Ltd.

We hope that our offer would be of your interest. Should you need any further information, please feel
free to contact us.

Enclosures – As stated above

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

ATTACHMENT 1

WORKSCOPE, INCLUSIONS AND EXCLUSIONS

WORKSCOPE, INCLUSIONS AND EXCLUSIONS

SCOPE OF WORK

We have considered our scope for refractory removal and installation works in one unit of Burner
chamber 2765mm Ø x 1600mm height, here in our Jubail workshop

Lining details for duct lining here in our shop:

1st layer 50mm thk light weight insulation castable Golite 1.0.6 mix C&G, 1000°C
2nd layer 96mm thk medium weight insulation castable Golite 155 C&G, 1550°C
3rd layer (hot face) 114 mm thk 94% alumina dense bricks AK 94M 1760°C
Anchorage SS 310 V&Y anchors,

Additional works at site 2765mm Ø x 300mm height Lining details:

1st layer 50mm thk light weight insulation castable Golite 1.0.6 mix C&G, 1000°C
2nd layer 80mm thk medium weight insulation castable Golite 155 C&G, 1550°C
3rd layer (hot face) 130 mm thk 94% alumina castable Curon 180 T Sp GM 1870°C
Anchorage SS 310 V&Y anchors,

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

1. INCLUSIONS WITHIN THE PRICE

The following is included within our price:

1) Supply of all refractory materials mentioned above and deliver in the job site.
2) Method of statement, ITP & QHSE documents if required.
3) Supply of qualified supervision and refractory technicians to complete the scope of work.
4) Supply of equipment tools, formwork and consumables to carry out the refractory lining
works if required.
5) Food accommodation and transportation of our workforce to and from the site up to duration
of refractory works.
6) Supply basic PPE’s
7) Dry out of newly line refractory here in our shop

EXCLUSION FROM THE PRICE

The following is excluded from our price:

1) Supply and welding of retaining plate hold the bricks

2) Welding of anchors
3) Deliver the burner chamber here in our Jubail shop and collect the same after refractory lining
& dry out
4) Compressor 800 CFM at site
5) Skips & ablution facilities of our refractory crews at site
6) Access of our refractory crews at site
7) AC units for temperature control during application if required
8) Dry out of newly line refractory at site

ATTACHMENT 2

WORK SCHEDULE & MANPOWER

Contract Schedule

We have based our pricing for an erection period of 3 days to complete the scope of works as per the
schedule provided to us and we reserve the rights to re-negotiate the unit prices if the project
schedule exceeds.

Mobilisation Period

Our mobilization period for the manpower and materials will be a minimum of 1-2 days, from the date
of receipt of your commercially and technically clear and acceptable order on RBHSA. However, we
are available to discuss / schedule as per the project requirement, this shall be mutually discussed
and agreed upon prior to award of contract.

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

ATTACHMENT 3

TECHNICAL CLARIFICATIONS

TECHNICAL CLARIFICATIONS

1) Material and crew qualifications should be mutually agreed.

2) All refractory design drawing will be prepared as per latest issue of mechanical drawing, (if
possible physically inspection of equipment to permitted).
3) All linings will be installed to dimensions as shown on approved construction drawings with the
allowable tolerance.
4) All mechanical works shall be completed release prior for the execution of refractory works.
5) Straightness of equipment casing should be in the tolerance level.
6) Material procurement shall be as per approved MAR.
7) Third party sample testing shall be mutually agreed prior start of refractory work.
8) All damage & missing anchor shall replace as per our inspection.
9) Newly lined refractory should be initial firing dry out within 6 months.

PROJECT DOCUMENTATION
As a certified Quality Contractor, we have included to provide the following documents.

1) Manufacturers Record Book that would incorporate all documentation related to the materials
used on the project.
2) Quality Plan to ensure that the provided materials are installed fully in accordance with the
specifications, customs and practice.
3) Project Method Statement including sketches and drawings were required.
4) Inspection certification confirming the correct application of the materials.

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

ATTACHMENT 4

COMMERCIAL CLARIFICATIONS
& QUALIFICATIONS

1. Contract Schedule, Mobilization, Working Week and Work Procedure

1.1 For the contract schedule please refer to Attachment 2, Work Schedule and Manpower.

1.2 The mobilization period for manpower will be a minimum of 1-2 days from Cape’s receipt and
acceptance of a valid offer from M/s EDCO (hereafter “the Client”)

1.3 This proposal is based on a working week of 60 hours (Saturday to Thursday), 10 hours per
day, or as required during shutdown period.

1.4 Cape’s price is on the basis that work fronts will be made available by the Client continuously
from initial mobilization to allow Cape’s operatives to work in an efficient and economic
manner. In the case of non-availability of work fronts for reasons which are beyond Cape’s
control, standby hours shall be applicable for the affected operatives and plant and equipment.
A minimum of 10 standby hours per day will be applicable, in the case of non-availability of
work fronts for a whole day. Payment shall be made to Cape by the Client for standby hours.
Should Cape’s manpower and/or plant and equipment have to be demobilized due to non-
availability of work fronts or for any other reason not attributable to Cape, subsequent
mobilization and demobilization costs shall be reimbursed to Cape by the Client.

1.5 The price is based upon the proposed contract period. In the case of the contract extending
beyond the proposed contract period, Cape shall be entitled to apply price escalation for direct
and indirect costs.

1.6 Should completion of the works be delayed for reasons outside of its control, Cape shall be
entitled to the grant of an extension of time by the Client and to reimbursement of the
associated delay costs.

2. Payment Terms

100% advance

3. Taxes and Customs

3.1 Cape’s price is based upon taxes, custom duties and the like as at the date of this budgetary
proposal. Any subsequent amendments or introduction of new taxes, custom duties and the
like which results in increased cost to Cape shall be reimbursed by the Client.

4. Health and Safety Regulations

4.1 This budgetary proposal is based on the health and safety legislation and regulations at the
date of this proposal. Any subsequent amendments or introduction of new health and safety
legislation or regulations which results in increased cost to Cape shall be reimbursed by the
Client.

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

5. Insurances

5.1 Cape have the following insurance cover in place:

(i) Workmen’s compensation insurance for Cape’s operatives.

(ii) Plant and equipment insurance for plant and equipment owned by Cape.
(iii) Motor vehicle insurance for vehicles owned by Cape.
(iv) General third-party liability insurance.

5.2 All other necessary insurance cover shall be provided by the Client.

6. Method of Measurement

6.1 Cape’s price has been derived using the bill of quantities contained in the enquiry documents.
In case of reduction in quantities by more than 5% Cape reserves the right to review the rates.

7. Liquidated Damages

7.1 Should the subcontract suffer a delay for reasons which are solely attributable to Cape, then
Cape shall be liable for liquidated damages (and not as a penalty) at the rate of 0.1% per day
of complete delay to a maximum of 5% of the final determined subcontract price.

8. Consequential Loss

8.1 Notwithstanding anything stated to the contrary in any document, agreement and their like,
neither party shall be liable to the other party for any special, indirect or consequential costs,
loss or damages, loss of use, loss of profit, loss or production or loss of sales contract and
their like which may be suffered by the other party arising for any matter whatsoever in respect
of any awarded or executed contract.

9. Maximum Subcontract Liability

9.1 Cape’s maximum liability in respect of any breach and/or for any other reason of the awarded
subcontract and/or at law shall be limited to the value of the executed works determined on the
basis of the schedule of rates and/or proportion to the lump sum price as the case maybe.

10. Force Majeure

10.1 If a party is or will be prevented from performing any of its obligations under the subcontract by
force majeure (including, but not limited to, war, hostilities, invasion, act of foreign enemies,
rebellion, terrorism, revolution, military or usurped power, civil war, riot, commotion, disorder,
strike or lockout, munitions of war, explosive materials, radiation, or natural disasters such as
earthquake, hurricane, typhoon or volcanic activity) then it shall give notice to the other party
of the event and circumstances constituting the force majeure and shall specify the
obligations, the performance of which is or will be prevented.
10.2 The party shall, having given notice, be excused from performance of such obligations for so
long as such force majeure prevents it from performing them.
10.3 Should the force majeure event continue for more than 90 days either party may opt to
terminate the subcontract?
10.4 Notwithstanding any other provision of this clause, force majeure shall not apply to obligations
of either party to make payments to the other party under this supply agreement.
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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

10.5 Should the force majeure event cause need for demobilization and remobilization, the costs for
this shall be borne by the Client.

11. Change of Legislation

11.1 Any change in the law or regulations or the like, or any new law or regulation or the like
introduced after the subcontract is awarded which has adverse financial implications on Cape,
shall entitled Cape to be financially compensated by the Client.

12. Severability

12.1 Should any provision in this budgetary proposal be found to be void or unenforceable then all
the other provisions shall remain in place and fully enforceable.

13. Governing Law

13.1 This agreement shall be governed by the laws of Saudi Arabia and shall be subject to the
exclusive jurisdiction by the courts of Saudi Arabia.

14. Other Commercial Issues

14.1 All other commercial issues to be discussed and agreed upon in the event of a subcontract
being awarded.

15. Validity

15.1 The prices quoted shall remain fixed for 60 days from the date of this quotation.

16. Acceptance

16.1 It is understood that no contract shall arise from this offer unless and until the Client’s order
has been officially accepted in writing by Cape.

END OF PROVISIONS

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REFRACTORY WORKS FOR BIDDER: CAPE RB HILTON SA LTD
INCINERATOR BURNER CAPE REF: 19-06/ME/LP/ES13133

ATTACHMENT 5
SCHEDULE OF PRICES

Price
Our proposed lumpsum price for refractory works is,

Description Price - SAR

Price for supply of refractory materials

1st layer 50mm thk light weight insulation Castable Golite 1.0.6 Mix C&G
124,220.00
2nd layer 96mm thk Medium Weight Insulation Castable Golite 155 C&G
3rd layer 114mm Hot face 94% Alumina Dense Brick AK 94M with mortar

Price for refractory installation here in our Jubail shop including dry out 68,847.00

Total Amount excluding VAT 193,067.00

Additional works at site at 300mm height all-around of 2765mm diameter

Description Price - SAR

Price for supply of refractory materials at 300mm height

1st layer 50mm thk light weight insulation Castable Golite 1.0.6 Mix C&G
2nd layer 80mm thk Medium Weight Insulation Castable Golite 155 C&G 25,800.00
3rd layer 130mm Hot face 94% Dense castable Curon 180 T Sp GM
SS 310 V & Y anchors, 6mmØ 7 8mmØ

Price for refractory installation here in our Jubail shop including dry out 29,600.00

Total Amount excluding VAT 55,400.00

SAR 248,467.00 total amount excluding VAT

SAR Two hundred forty-eight thousand four hundred sixty-seven only

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