Project Execution Plan 2045

Rev.0

KHARAFI NATIONAL - UAE

District Cooling for Rihan Heights

PROJECT NO. (2045)

PROJECT EXECUTION PLAN

PART B: COMMERCIAL SECTION

Date: 30 Oct 2010

AWI 202 Att. 2 Rev. 1 12 Sep. 2006

 Project Execution Plan 2045
Rev.0

1. TABLE OF CONTENTS

Part B: Commercial

1. Financial & Contractual.................................................................2

2. Bonds & Insurance.........................................................................3

3. Notifications – Time Requirements...............................................4

4. Key Concerns.................................................................................5

5. Subcontracts (Financial)................................................................6

Appendices
1. Overall Cost Summary Report

2. Schedule of Price

3. Cash Flow Chart

a. Cash In Data

b.Cash Out Data

c. Cash Flow

4. Signatures of Senior Project Staff

5. Record Log for Claim Incidents

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 1 of 6

 Project Execution Plan 2045
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1. Financial & Contractual

1.1 General

This project is a District Cooling Plant for Rihan Heights; it is a fast track
project to be Completed within 10 Months.
• Type of Contract Lump Sum Fixed Price
• Total Lump Sum Value AED 53,166,016.00
• Provisional Sum ( Temporary
Generator) AED 2,504,439.00

• Profit & Risk AED 2,658,300

• Contingency AED 469,798
• Advance Payment 10% of Accepted Contract Value
• Amount of performance Security 10% of Accepted Contract Value
• Delay Damages for the Works 100,000.00 AED per calendar day of
delay
• Maximum amount of delay damages Ten (10) % of the final Contract
Value
• Start repayment of advance payment 2nd Interim Payment Certificate
• Repayment amortization of advance 10.50% deductions from each
payment Payment Certificate
• Percentage of retention Ten (10) % of each monthly interim
payment
• Limit of Retention Money Five (5)% of Contract Value

1.2 Contract Price and payment

• Plant and Material are entitled to an 20% upon Placement of Order

interim payment at cost for: Chiller 40% When be ready for Shipment
Module, Cooling Tower, Electrical 40% When be brought to site
Modules and Heat exchanger
• Plant and Material are entitled to an 100% when be brought to site
interim payment at cost for: Pre
insulated
Pipes,Valves,Transformers, UPS,
Fire
Protection,Control&Automation
System

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 2 of6

 Project Execution Plan 2045
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2.0 Bonds &

Insurance

By Client
• Construction All Risk Insurance & Third Party Liabilities.

By Kharafi National
• Workmen’s Compensation Insurance, Third Party Liability, Employer’s Liability Insurance
USD 5 million, Motor Vehicles Insurance, Contractor’s Plant & Equipment Insurance.
• Marine Cargo Insurance.

• Professional Indemnity in an amount of AED 10 million from the commencement date until
the date which is twelve (12) years after the date of Taking Over Certificate.
• The Performance Security shall be for an amount equivalent to ten (10) percent.

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 3 of6

 Project Execution Plan 2045
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3.0 Notifications -Time Requirements

Time for Notice to commence
Time for submission of time
program
Periods of submission of insurance
(evidence of insurance).
Within 28 days of the date of letter of
Acceptance (the commencement date
is 18- July-2010
Within 28 days of the
Commencement Date
Within 28 days of the
Commencement Date

Relevant policies Within 28 days of the

Commencement Date
3.1
3.1 Claims (additional payment and time)
As per Sub-Clause 8.4 (c) of Contract Agreement

The Contractor shall be entitled subject to Sub-Clause 20.1 [Contractor’s

Claims] to an extension of the Time for Completion if and to the extent that
completion for the purposes of Sub-Clause 10.1 [Taking Over of the Works
and Sections] is or will be delayed by any of the following causes:

(a) a Variation (unless an adjustment to the Time for Completion

has been agreed under Sub-Clause 13.3 [Variation Procedure]),
(b) a cause of delay giving an entitlement to extension of time under
a Sub-Clause of these Conditions, or
(c) Any delay, impediment or prevention caused by or attributable to
the Employer, the Employer’s Personnel, or the Employer’s
other contractors on the Site.

If the Contractor considers himself to be entitled to an extension of the Time

for Completion, the Contractor shall give notice to the Employer in
accordance with Sub-Clause 20.1 [Contractor’s Claims]. When determining
each extension of time under Sub-Clause 20.1, the Employer shall review
previous determinations and may increase, but shall not decrease, the total
extension of time.

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 4 of6

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4.0 Key
4.1 Material and Equipment Delivery
• Material approvals and early procurement is critical to avoid further material
delays whereas such delays will clear the way to have a risk of liquidated
damages.
• Material Submittal & Procurement log to be monitored closely.

4.2 Work progress and control

• Closely monitoring the progress in order to meet the Contract Completion Date.
• Project Controls Procedure will be implemented.
• Strategy for controlling manual manpower productivity to avoid the overrunning
of man-hour budget.
• Data base for recording productivity will be implemented.

4.3 Overruns
• Overrun is expected in the subcontracts for Hydrostatic test- Flushing and
Chemical Cleaning as the estimated budget was found to be low.

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 5 of6

 Project Execution Plan 2045
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5.0 Subcontracts

The following Item will be assigned to subcontractors

Potential
Task No. Expenditure Type SUBCONTRACT Value (AED)
Subcontractors

Mechanical
4.15.07 Subcontracts Testing HVAC Initial Start-up Under process 115,017
4.15.07 Subcontracts Testing HVAC Testing, Balancing Under process 80,018
4.15.10 Subcontracts Special Systems Fire Fighting System Under process 122,425
4.15.11 Subcontracts Special Systems Fire Fighting System Under process 826,767
4.15.12 Subcontracts Construction Electric Chain Hoist Under process 40,843
4.15.07 Subcontracts Construction Flushing /Chemical Flushing Under process 35,000
4.15.07 Subcontracts Construction Testing & Commissioning Under process 25,000
Modular District Cooling Plant
4.15.13 Subcontracts Construction Stellar 21,253,000
(Stellar)
Electrical
4.15.08 Subcontracts Construction HV Cable Laying & Termination NCI 45,500
4.15.09 Subcontracts Special Systems Fire Alarm System Under process 19,941
4.15.09 Subcontracts Special Systems Telecommunication System Under process 2,000
4.15.08 Subcontracts Construction Cabling Under process 76,500
Special System - SCADA Control &
4.15.14 Subcontracts Special Systems Stellar 1,026,596
Automation (Stellar)
Civil Works
4.15.02 Subcontracts Construction Waterproofing Beam Engineering 132,831
4.15.04 Subcontracts Construction Steel Doors Under process 89,676
4.15.04 Subcontracts Construction Wooden Doors Under process 12,805
4.15.04 Subcontracts Construction Aluminum Windows, louver windows Under process 40,200
4.15.05 Subcontracts Construction Metal Works Under process 5,250
4.15.05 Subcontracts Construction Suspended Ceiling Under process 11,197
4.15.02 Subcontracts Construction Epoxy Floor Coating Under process 15,235
4.15.04 Subcontracts Construction Steel Gates Under process 38,750
4.15.02 Subcontracts Construction GRP Lining Under process 182,280
4.15.06 Subcontracts Construction Geotechnical Report Matrix Laboratory 13,529
4.15.07 Subcontracts Construction Material Testing Under process 31,000
4.15.05 Subcontracts Construction GRP Ladder Under process 10,712
4.15.05 Subcontracts Construction Kitchen Equipments Under process 15,804
Misc.
4.15.06 Subcontracts Engineering Environment Assessment Study Under process 30,000
Services during Defect Liability
4.15.15 Subcontracts Services Under process 210,675
Period
4.15.06 Subcontracts Engineering Design (Stamping Purpose Only) DC PRO 125,000
Operation & Maintenance for 12
4.15.15 Subcontracts Services Under process 1,396,524
Months

AWI 202 Att. 2 Rev. 1 12 Sep. 2006 Page 6 of6