SUB-CONTRACT AGREEMENT

REF : S-664/CS/RAKCING/LBC/006/SUB-CONT/2020

CLIENT : M/S. Cordstrap (Middle East) Limited

PROJECT : Construction of Addition of Ground Factory & Store, Mezzanine

Office and Allied Services for M/S. Cordstrap (Middle East)
Limited, on Plot No. S10713 at JAFZA, South, Dubai – U.A.E.

SCOPE OF WORK : SUPPLY & INSTALLATION OF RACKING SYSTEM AS PER CLIENT’S

REQUIREMENT

BETWEEN:
A. M/S LOYAL BUILDING CONTRACTING LLC
Tel - +971 4 441 2398
P.O. BOX, 123935 DUBAI - UAE.
(Herein after called the MAIN CONTRACTOR) of the first party
Represented by MANAGING DIRECTOR -MR. INDERJIT SINGH

And

B. M/S SPAN TRADING LLC,

Tel - +971 4 289 5111
P.O. BOX 55397, DUBAI -UAE.
(Herein after called the SUBCONTRACTOR) of the second party
Represented by INSTALLATION MANAGER - MR. SREELAL SAHADEVAN
who is authorized to sign on behalf of the SUBCONTRACTOR
(Letter of Authorization is enclosed)

The MAIN CONTRACTOR desires to have executed the works of which particulars are set out in Part I of
the Appendix-A to this Agreement (herein after referred to as 'the SUBCONTRACT WORKS’) and which
forms part of the Works (hereinafter referred to as 'the MAIN CONTRACT Works’) comprised in and to
be executed in accordance with the MAIN CONTRACT (the Contract between the Client and the MAIN
CONTRACTOR).

The SUBCONTRACTOR have had the opportunity of inspecting the site, Contract Documents and
Drawings of the Main Contract or copies thereof accepted the detailed prices of the MAIN
CONTRACTOR included in Schedules and Bills of Quantities.
It is agreed as follows:-
 1. The SUBCONTRACTOR shall execute and complete the SUBCONTRACT WORKS subject to
and in all respects to the satisfaction of the MAIN CONTRACTOR and of the Consultant/Client
and in conformity with all the directions and requirements of the MAIN CONTRACTOR.

2. The SUBCONTRACTOR shall indemnify and save harmless the MAIN CONTRACTOR against
and from:-
a) Any breach, non-observance or non-performance by the SUBCONTRACTOR, his servants or
agents of the said provisions of the Main Contract or any of them.

b) Any claim, damage, loss or expense due to or resulting from any negligence or breach of duty on
the part of the SUBCONTRACTOR his servants or agents or other property belonging to or
provided by the MAIN CONTRACTOR.

c) Any loss or damage resulting from any claim under any statute in force for the time being by an
employee of the SUBCONTRACTOR in respect of the personal injury out of or in the course of
his employment.

3. The SUBCONTRACTOR shall be responsible for protecting their materials & equipment until
completion of the SUBCONTRACT Works. They shall also be responsible for any damage caused
due to their works to other trades of the Project and vice versa.
Main-contractor shall provide the properly secured storage facility.

4. Insurance:
a) The SUBCONTRACTOR shall before the commencement of the SUBCONTRACT WORKS ensure
that there is in force a valid insurance policy which provides the necessary coverage of and for
the sub-contract works.

b) In the event that there is no such insurance policy providing the necessary coverage of and for
the SUBCONTRACT WORKS, then it shall be the SUBCONTRACTOR’S responsibility to obtain
and /or take out any and all necessary insurance cover for the sub-contract works including but
not limited to that for the SUBCONTRACTOR’S materials, tools, plant, equipment, machinery
and/or all other items and/or articles necessary for the performance and/or execution of the
SUBCONTRACT WORKS such insurance to be obtained and/or taken out prior to the
commencement of the SUBCONTRACT WORKS.

c) Where it is the SUBCONTRACTOR who obtains and/or takes out the necessary insurance
coverage, the SUBCONTRACTOR shall upon the request by the MAIN CONTRACTOR produce for
the MAIN CONTRACTOR’s inspection within 3 days of the said request by the MAIN
CONTRACTOR the original receipts of the premiums paid in respect of such insurance.

d) The SUBCONTRACTOR will take a Workmen's Compensation Policy covering his employees
engaged in the SUBCONTRACT works. The MAIN CONTRACTOR will not be responsible for any
work related injuries for workers of the SUBCONTRACTOR. A valid workmen’s compensation
policy should be provided to the MAIN CONTRACTOR and should be valid all throughout project
period.

S-664/CS/RAKCING/LBC/006/SUB-CONT/2020Page 2 of 6
 e) The SUBCONTRACTOR shall provide documentary proof that all employees entering upon the
works at site are legally sponsored by the SUBCONTRACTOR in accordance with the current laws
of the Emirate of Dubai and the Laws of the UAE.

5. Programme of works
The SUBCONTRACTOR shall commence the SUBCONTRACT works as soon as practicable after the
receipt by him of an order in writing under this SUBCONTRACT from the MAIN CONTRACTOR to
that effect and shall proceed with the same with due expedition and without delay.

a) The SUBCONTRACTOR shall follow the MAIN CONTRACTOR's progress of works at the site and
such progress will be monitored in the weekly site meetings.
b) The SUBCONTRACTOR shall complete the SUBCONTRACT works and each section thereof
within the period specified in Part II of the Appendix-A to this Agreement.

6. SUBCONTRACT SUM

a) The price of the SUB-CONTRACT works (hereinafter referred to as 'the SUBCONTRACT

SUM') shall be the sum named in the issued LPO, a sum calculated in accordance with the
rates and prices specified in the SUBCONTRACT or any reference to the price as the case
may require but subject to a deduction of retention monies.

b) The prices in bills of quantities or other document forming part of the SUBCONTRACTOR's
tender shall determine the valuation of work of similar character executed under similar
conditions as work priced therein.

7. Payment
The term and payment condition will be applicable for the above project in line with the offer
between M/S SPAN TRADING LLC and M/S. LOYAL BUILDING CONTRCATING LLC. Payment will be
made as per the actual work progress at site for this specific project only by M/S. LOYAL
BUILDING CONTRACTING LLC to M/S SPAN TRADING LLC

8. Sub-Letting the SUBCONTRACT Works

The SUBCONTRACTOR shall not assign this SUB-CONTRACT nor sublet the SUB-CONTRACT works
or any portion of the same without the written consent of the MAIN CONTRACTOR.

9. Plant, Tools etc. of SUBCONTRACTOR

The plant, tools, equipment and other property belonging to or provided by the
SUBCONTRACTOR, his servants or agents other than materials and goods properly in the site for
use in the SUBCONTRACTOR, and any loss or damage to the same caused by the same shall be
sole liability of the SUBCONTRACTOR. Any insurance against any such loss respect or claim shall
be sole concern of the SUBCONTRACTOR.

10. The SUBCONTRACTOR shall provide the MAIN CONTRACTOR free access to their site stores

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 for inspection as and when required to ensure the adequacy of materials to the acceptable standards
of the industry.
11. Increase or decrease in cost:
No adjustments are to be made in respect of any rise or fall in the cost of labour and material or
any other cost affecting the cost of execution of the work unless such rise or fall is occasioned by
the operation of any law, statute etc. promulgated by the Government of the Territory after the
signing of the contract, to the approval of the Client and the Consultant.

12. Variations:
In the event of the MAIN CONTRACTOR issuing in writing to the SUBCONTRACTOR in regard to
variations, then the SUBCONTRACTOR shall comply with such order and proceed with the works.

Such variations may be any of the following:

a) Increase or decrease in the quantity or kind of work included in the contract.
b) Omission of any item of work.
c) Change of character or quality or kind of any such work.
d) Execute additional work of any kind necessary for the completion of the works.
e) Extension of time for completion, if required and if so granted by the consultant to the
MAIN CONTRACTOR.
Any such variation issued in writing shall not in any way vitiate or invalidate this Contract.

All extra or additional work done or work omitted shall be valued at the rates and prices set out in
B.O.Q. (BOQ rates to be submitted by the SUBCONTRACTOR) of this contract for actual quantity
at site. If the contract does not contain any rates or prices applicable to the extra or additional
work, then suitable rates or prices and completion time shall be agreed between the
SUBCONTRACTOR and MAIN CONTRACTOR accordance with the approval of such items by the
Consultant I Client on the basis of actual works/quantity at site.

13. Any dispute that arises between the MAIN CONTRACTOR and the SUBCONTRACTOR, (God
forbid) they will Endeavour to reach a satisfactory agreement. If necessary, the dispute will be put
to the decision of a mutually acceptable arbitrator. If it is finally not possible to reach an
agreement, the dispute will be submitted to the arbitrator of the DUBAI PRELIMINARY COURT.

14. MAIN CONTRACTOR is not responsible for any rise in the contract price due to the changes in
the custom duties or Government taxes etc. levied during the course of the contract unless such
variations due to the changes in the custom duties or Government taxes are compensated to the
MAIN CONTRACTOR by the employer.

15. The said conditions and appendices thereto of 03 pages shall be read and construed as forming
part of this agreement, and the parties shall respectively abide by submitting themselves to the
conditions and perform the agreements on their parts respectively in such conditions contained.

16. Any breach of above clauses by the SUBCONTRACTOR will render this contract null and void
and the SUBCONTRACTOR will bear all the consequences and liabilities.

S-664/CS/RAKCING/LBC/006/SUB-CONT/2020Page 4 of 6
 17. Two copies of this contract are to be signed by both the MAIN CONTRACTOR &
SUBCONTRACTOR.

For MAIN CONTRACTOR For SUBCONTRACTOR

M/S. LOYAL BUILDING CONTRACTING LLC M/S SPAN TRADING LLC

P.O. Box: 123935, Dubai. UAE P.O. Box: 55397, Dubai, UAE.
Referred as the Referred as the
“MAIN CONTRACTOR” “SUBCONTRACTOR”.
(With Name, Signature & Stamp) (With Name, Signature & Stamp)

S-664/CS/RAKCING/LBC/006/SUB-CONT/2020Page 5 of 6
PROJECT : Construction of Addition of Ground Factory & Store,
Mezzanine Office and Allied Services for M/S. Cordstrap
(Middle East) Limited, on Plot No. S10713 at JAFZA, South,
Dubai – U.A.E.

SUBCONTRACTOR’S SCOPE : SUPPLY & INSTALLATION OF RACKING SYSTEM AS PER CLIENT’S

REQUIREMENT

INDEMNITY – AGREEMENT

To the fullest extent permitted by law, M/S SPAN TRADING LLC will indemnify and hold harmless “M/s.
LOYAL Building Contracting LLC”. their directors, partners, representatives, and employees from and
against any and all claims, suits, liens, judgments, damages, losses and expenses, including legal fees and
all court costs and liability (including statutory liability) arising in whole or in part and in any manner
from injury and/or death of person or damage to or loss of any property resulting from the acts,
omissions, breach or default of M/S SPAN TRADING LLC, its directors, employees and subcontractors,
M/S SPAN TRADING LLC will defend and bear all costs of defending any actions or proceedings brought
against “M/s. LOYAL Building Contracting LLC”. and/or, their Company directors, and employees, arising
in whole or in part out of any such acts, omission, breach or default. The foregoing indemnity shall
include injury or death of any employee of the Contractor or Subcontractor and shall not be limited in
any way by an amount or type of damage, compensation, or benefits payable under any applicable
workers compensation, disability benefits or other similar employees benefit act.

M/S SPAN TRADING LLC hereby expressly permits “M/s. LOYAL Building Contracting LLC”, to pursue and
assert claims against the Subcontractor for indemnity, contribution and common law negligence arising
out of claims for damages for bodily injury, property damage, death and person injury.

_____________________________________
M/S. LOYAL BUILDING CONTRACTING LLC M/S SPAN TRADING LLC
(Main Contractor signature/stamp/date) (Subcontractor signature/stamp/date)

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