Commercial Returnables

Number Description Attachment Name

1 CTR
2 Dayrates
3 Priced Commercial Departures/Exceptions
4 Commercial Bid Proposal
5 Payment Milestones
6 Incentives
7 Schedule of Prices
1. Contractor to submit CTRs for FEED SOW.
2. Contractor to submit CTRs for EPCm SOW Split List.
3. Contractor to utilize CTR template in similar format as below.

CTR Summary Tab (Contractor to provide as a minimum the CTRs below. Additional CTRs to be provided as required to co
CTR Description Total Man Hours
001 Project Kick Off
002 Facilities to be provided by Contractor
003 Design Basis and Concept Validation
004 Definition Engineering
004A Process Design
004B Mechanical engineering. Skid Modules; Piping and Layout design
004C Static and Rotating Equipment Design
004D Electrical Design
004E Control, Instrumentation & Telc. Design
004F Civil Design
004G Pipelines
005 Safety Studies
006 Cost Estimation
007 Project Plan
008 Project Management and Project services
009 SoW Document for EPCM Contract
010 Interface Management & Integration with Exterran (Technology Provider)
011 Procurement Packages (Prepare, Tender, Evaluate, Negotiate, Ready for Award)
011A GFTs
011B Civil Foundations for GFTs
011C LLI Packages by package (add additional below as required)
12 EPCM Services as per the Split of Work List

CTR Template Tab

COST TIME RESOURCE SHEET

Company: XXXXXXXXXX
Department:
Total Amount: € 0.00
CTR Nº : 001
Input Data:

Scope of Work:

Assumptions:

Deliverables:
 Resource (labour)
Name and Responsibility
Project Manager
Process Engineer
Mechanical Engineer
Rotating Engineer
I&C Engineer
Electrical Engineer
Civil Engineer
Cost Estimation Engineer
Lay out / CAD / Drawing

TOTAL
Additional Cost / Out Sourcing
Definition
3rd Party (if required)

TOTAL
Notes
s to be provided as required to cover the full scope of work.)
Total Cost (Euros)

RCE SHEET

Start:
End:
Activity:
ur)
Man - Hour Rate / hr Amount
0
0
0
0
0
0
0
0
0
0
0
0
0 €0
Sourcing
Qty or Contract Value Amount

€0
Bidder to populate the Schedule of Rates below if not listed in existing framework contracts.

Schedule of Rates
Dayrates
Description UOM
Indirect Labour
Contractor to nominate below as required Day

Direct Labour
Contractor to nominate below as required Day

Temporary Facilities (additional as required)

Contractor to nominate below as required Day

Plant & Equipment

IT Equipment - Hardware Day
Software Licences Day
Contractor to nominated below as required Day
3rd Party Services
Flights Markup %
Accomodation Markup %
Other Markup %
Labor not defined above (ie Labor for which there is no specMarkup %
Margin & Overhead
Margin & Overhead %

Note:
1.1.        Dayworks
1.1.1.   Labour Rate Inclusions
1.1.1.1.              Contractor’s personnel directly involved with performing the additional works o
1.1.1.2.              All payroll, employment, travel (rotational and business rotational travel shall b
1.1.1.3.              All required hand tools, consumables, ladders trestles and the like.
1.1.1.4.              All other payments and expenses which Contractor may make under national o
1.1.1.5.              Travel time and related travel costs for personnel to and from site and to and fr
1.1.1.6.              Non-productive time, including shift change-over time, meal breaks, scheduled
1.1.1.7.              All costs for all Subcontractor and Secondary Subcontractor management, site s
1.1.1.8.              Accommodation costs
1.1.2.   Labour Rate Exclusions
1.1.2.1.              Contractor’s margin and overheads
1.1.3.   Labour Rate Assumptions
1.1.3.1.              The Daywork rates provided for in the pricing schedule should be for daytime w
1.1.3.2.              This section applied equally to both direct and indirect labour.
1.1.3.3.              Dayworks apply equally to performing the works in large or small quantities, at
1.1.3.4.              Work performed on an hourly basis shall be determined to the nearest complet
1.1.3.5.              Work performed on a Daywork Rate basis shall be determined on a 10 hour per
1.1.3.6.              Rates shall apply to all hours / Days worked regardless of whether Work is perfo
1.1.3.7.              The Daywork rates shall apply regardless of whether the work is executed by th
1.1.3.8.              The Daywork rates and prices in the Pricing Schedule shall be fixed for the dura
1.1.4.   Payment of Dayworks
1.1.4.1.              Contractor shall submit timesheets for all personnel for which the Contractor re
1.1.5.   Materials Rate
1.1.5.1.              Materials for Dayworks shall be reimbursed at the cost plus agreed markup per
1.1.5.2.              The markup percentage shall account for Costs for the supply of all materials, c
1.1.5.3.              The costs shall include but are not necessarily limited to:
1.1.5.4.              All costs associated with the procurement and supply of all necessary materials
1.1.5.5.              All costs associated with delivering to site, taking delivery, handling, preservatio
1.1.5.6.              The supply of all Consumables and sundry items associated with the nature of t
1.1.5.7.              the supply of all temporary protective materials.
1.1.5.8.              The supply of fabrication aids, fabricating and erecting temporary supports and
1.1.5.9.              The supply of all tags and inspection consumables.
1.1.5.10.           Costs of services involved in the sourcing and supply of the material to site
1.1.5.11.           3rd party related costs associated with transportation to and from site, laydow
1.1.5.12.           Contractor shall ensure these costs are not duplicated with the Material Compo
1.1.5.13.           Costs for fabrication shall include all labour, materials, consumable items, prov
1.1.5.14.           The costs shall additionally include but are not necessarily limited to:Materials
1.1.5.15.           Risk associated with subcontractors and material suppliers pricing;
1.1.5.16.           Fabrications aids, fabrication drawings, fabricating and erecting temporary supp
1.1.5.17.           Temporary fittings, welding consumables, sealing tapes and compounds.
1.1.5.18.           Painting and coating.
1.1.5.19.           Traceability management.
1.1.5.20.           Testing (if required).
1.1.5.21.           Cleaning
1.1.5.22.           The Contractor shall submit receipts for any materials which the Contractor req
1.1.6.   Plant and Equipment Rate Inclusions
1.1.6.1.              Plant & equipment directly involved with performing the additional works only.
1.1.6.2.              The only items of Plant & Equipment that shall be compensated on a Dayworks
1.1.6.3.              Contractor may only claim payment of Plant & Equipment for the time it is actu
1.1.6.4.              Daywork Rates for Plant & Equipment include Consumables required for the us
1.1.6.5.              Daywork Rates for equipment shall exclude operators unless otherwise indicate
1.1.6.6.              standby rates for Equipment shall only be payable by Principal if such equipmen
1.1.6.7.              In the event that Equipment is required in addition to that listed in the Pricing S
1.1.6.8.              All costs of inspections, hiring, testing, tagging, and keeping compliant all plant,
1.1.6.9.              Use of any tools (including earth engaging tools), all necessary consumables inc
1.1.6.10.           All statutory requirements
1.1.6.11.           Storage and protection if required
1.1.6.12.           Rates for plant equipment and temp facilities should be inclusive of hire charge
1.1.7.   Plant and Equipment Rate Exclusions
1.1.7.1.              Plant & equipment operators.
1.1.7.2.              Contractors margin.
1.1.8.   Plant and Equipment Assumptions
1.1.8.1.              Dayworks apply equally to performing the works in large or small quantities, at
1.1.8.2.              Work performed on an hourly basis shall be determined to the nearest complet
1.1.8.3.              Work performed on a Daywork Rate basis shall be determined on a 10 hour per
1.1.8.4.              Plant and equipment used on nightshift shall be charged at the same rate as th
1.1.8.5.              where an item of plant or Equipment is reimbursed on the basis of daily rates t
1.1.8.6.              The daywork rates and prices in the Pricing Schedule shall be fixed for the dura
1.1.9.   Dayworks Procedure
1.1.9.1.              Contractor shall provide to Principal, priced timesheets for all personnel, Equip
 1.1.9.2.              As early as practically possible (and in any event not less than twenty-four (24)
1.1.9.3.              Throughout the duration of Work under the Contract being compensated on a
1.1.9.4.              reference number (where applicable);
1.1.9.5.              date when work was executed;
1.1.9.6.              names and occupations of personnel employed;
1.1.9.7.              signature of the employee and the appropriate supervisor;
1.1.9.8.              equipment by type and classification;
1.1.9.9.              materials supplied and used ;
1.1.9.10.           hours worked for personnel and Equipment; and
1.1.9.11.           sufficiently detailed description of the Work under the Contract;
1.1.9.12.           Contractor shall fully price each Daywork sheet by multiplying the hours worke
1.1.9.13.           Principal shall have the right to reject any Daywork sheets submitted by Contra
1.1.9.14.           do not comply with the requirements listed above; or
1.1.9.15.           are submitted to the Principal Representative after the time stipulated for subm
1.1.9.16.           Contractor shall be entitled to re submit corrected Daywork sheets on the next
1.1.9.17.           Throughout the duration of the Work under the Contract executed on a Daywo
1.1.10.    Margin
1.1.10.1.           The rates included in the day works section of the schedule of prices shall be ex
1.1.10.2.           Contractors margin shall include but not be limited to the following;
1.1.10.3.           All corporate support personnel shall be included within the Contractors margin
1.1.10.4.           Local, regional and national management teams including operating manager, g
1.1.10.5.           The costs of running Contractors corporate offices and facilities including but n
1.1.10.6.           All finance charges.
1.1.10.7.           Personnel recruitment costs including any relocation costs
1.1.10.8.           Mobile phones not dedicated to the works.
1.1.10.9.           Document storage and archiving fee’s.
1.1.10.10.       Legal fees, costs and expenses.
1.1.10.11.       Development of Contractor’s policies, systems, procedures and processes.
1.1.10.12.       Specialist software subscription costs not specific to the project.
1.1.10.13.       Fringe benefit taxes.
1.1.10.14.       Corporate memberships and sponsorships.
1.1.10.15.       Corporate travel and accommodation, including where corporate travel and acc
1.1.10.16.       Audit fees.
1.1.10.17.       Insurances.
1.1.10.18.       Contractor’s Profit.
1.1.10.19.       Contractor’s overhead including but not limited to all head office costs, payroll,
1.1.10.20.       Compliance with all Contractor obligations under the Contract.
1.1.10.21.       All costs of royalties, duties, license fees, know-how fees, usage of proprietary i
1.1.10.22.       Foreign currency exchange fluctuations if any;
1.1.10.23.       Forward escalation;
1.1.10.24.       Ground conditions;
1.1.10.25.       Loss and or damage to Company supplied material upon transfer of care custod
1.1.10.26.       Industrial and employment relations actions;
1.1.10.27.       All costs of compliance with the requirements of the Contract
1.1.10.28.       Contractor shall refer to the Risk Allocation table for additional detail on risks th
1.1.10.29.       Compensation to Contractor for Corporate Overhead costs associated with the
1.1.10.30.       items forming the Corporate Overheads include but are not limited to:
1.1.10.31.       Directors’ fees and salaries of partners or corporate officers,
1.1.10.32.       Head office costs including management and administration,
1.1.10.33.       Corporate and non-manual employee business travel, accommodation and mea
1.1.10.34.       Advertising and entertainment costs,
1.1.10.35.       Principal financing costs and interest charges,
1.1.10.36.       Costs for establishing and maintaining Bank Guarantees, Letters of Credit, etc,
1.1.10.37.       Costs for Insurance policies (except Project related insurances) including premiu
1.1.10.38.       Corporate and business taxes, fees, permits, licences or charges levied by any a
1.1.10.39.       Corporate functional charges including IT, HSE and Employee Relations/Industri
1.1.10.40.       Costs of any and all donations, gifts and contributions,
1.1.10.41.       Fines or penalties of any nature levied by governmental authority,
1.1.10.42.       Legal Services,
1.1.10.43.       Offsite administration costs including wages costs to attend pre-employment m
1.1.10.44.       Ownership and real estate costs,
1.1.10.45.       Salaries, wages and benefits for “off project” personnel,
1.1.10.46.       Off and On Project communications and mobile telephone charges,
1.1.10.47.       licence charges and fees for intellectual property and patents,
1.1.10.48.       Marketing, advertising and business promotion expenses,
1.1.10.49.       Financial audit and advisory fees,
1.1.10.50.       Corporate office running expenses including rents, bonds, rates, telephones, mo
1.1.10.51.       Stamp Duty
1.1.10.52.       Professional development courses
1.1.10.53.       Accounts payable and receivable
1.1.10.54.       Mainframe computer system, computers and software
1.1.10.55.       Staff time, travel and accommodation costs for events and functions,
1.1.10.56.       legal costs for any action or advice sought by the Tenderer under this Contract;
1.1.10.57.       All other costs and expenses, support services, taxes, risks, liabilities and contin
1.1.10.58.       Weather and the effects of weather outside the definition for a qualifying cause
1.1.10.59.       With the exception of Inclement Weather, the Contractor is deemed to have ta
1.1.10.60.       Inclement Weather means a localised weather event with a demonstrated dura
1.1.10.61.       Inclement Weather is a qualifying cause of delay for variation works only, subje
1.1.10.62.       Principal approved claims for Inclement Weather will be valued in accordance w
1.1.10.63.       The maximum claimable duration for labour, plant and equipment standby time
1.1.10.64.       Indirect Labor covered by PMT shall not be entitled to an inclement weather cla
ng framework contracts.

Dayrate

equired)

irectly involved with performing the additional works only.

travel (rotational and business rotational travel shall be limited to four hours each way at the beginning and end of rotation), subsisten
onsumables, ladders trestles and the like.
expenses which Contractor may make under national or local agreements, applicable industry labour agreements, all government cont
ravel costs for personnel to and from site and to and from camp shall not be additionally reimbursable at Dayworks Rates but instead
luding shift change-over time, meal breaks, scheduled and unscheduled equipment maintenance, safety toolbox talks, prestart, take fi
actor and Secondary Subcontractor management, site supervision, field support and service assistance / attendance necessary by durin

ded for in the pricing schedule should be for daytime working hours, a separate uplift % should be priced in the pricing schedule for nig
ally to both direct and indirect labour.
o performing the works in large or small quantities, at all elevations, in all positions, and of any complexity or difficulty irrespective of
ourly basis shall be determined to the nearest complete quarter hour.
ywork Rate basis shall be determined on a 10 hour per Day basis or pro rata for part thereof.
ours / Days worked regardless of whether Work is performed during normal working hours or at hours outside normal working. No pre
apply regardless of whether the work is executed by the Contractor’s own resources or the resources of a subcontractor or other third
rices in the Pricing Schedule shall be fixed for the duration of the Contract.
timesheets for all personnel for which the Contractor requires reimbursement at Daywork Rates. Such timesheets shall be submitted to

hall be reimbursed at the cost plus agreed markup percentage.

shall account for Costs for the supply of all materials, consumables and items (not identified in the Contract as being supplied by other
ut are not necessarily limited to:
the procurement and supply of all necessary materials of any type to complete the work.
delivering to site, taking delivery, handling, preservation and storage of all Company Supplied Materials
ables and sundry items associated with the nature of the Work to be performed including but not limited to welding rods, grinding dis
ry protective materials.
aids, fabricating and erecting temporary supports and effectively staying and supporting all items as necessary during fabrication and
d inspection consumables.
d in the sourcing and supply of the material to site
ssociated with transportation to and from site, laydown area, camp, and point of hire
hese costs are not duplicated with the Material Component Rate.
l include all labour, materials, consumable items, provision and operation of plant, tools and equipment (including testing) as required
lly include but are not necessarily limited to:Materials including but not limited to valves, in-line fittings, coating / isolation pads, conne
contractors and material suppliers pricing;
tion drawings, fabricating and erecting temporary supports and effectively securing the supporting all items as necessary during fabric
ng consumables, sealing tapes and compounds.

mit receipts for any materials which the Contractor requires reimbursement at Daywork rates. Such receipts shall be submitted to the

tly involved with performing the additional works only.

& Equipment that shall be compensated on a Dayworks basis are those listed in the Pricing Schedules headed Daywork rates.
m payment of Plant & Equipment for the time it is actually in use. No payment shall be made for periods of standdown, non-working ti
& Equipment include Consumables required for the use of equipment, its insurance, repairs, maintenance, depreciation, travelling, pro
ment shall exclude operators unless otherwise indicated.
ment shall only be payable by Principal if such equipment shall have been prevented from performing Construction Work by a breach o
ent is required in addition to that listed in the Pricing Schedules headed Daywork Rates which is required to be hired from a third part
iring, testing, tagging, and keeping compliant all plant, equipment, tools and specialist tools. -in connection with the supply of such Eq
ng earth engaging tools), all necessary consumables including oil, lubricants, fuel, maintenance and the like

nt and temp facilities should be inclusive of hire charges and delivered to site.

o performing the works in large or small quantities, at all elevations, in all positions, and of any complexity or difficulty irrespective of
ourly basis shall be determined to the nearest complete quarter hour.
ywork Rate basis shall be determined on a 10 hour per Day basis or pro rata for part thereof.
d on nightshift shall be charged at the same rate as the dayshift. Ie no nightshift uplift shall be applicable to equipment
r Equipment is reimbursed on the basis of daily rates the maximum amount payable in any one week shall not exceed the daily rate m
rices in the Pricing Schedule shall be fixed for the duration of the Contract.

to Principal, priced timesheets for all personnel, Equipment, and materials used by Contractor in the performance of Work Under the C
ssible (and in any event not less than twenty-four (24) hours) before commencement of any work being compensated on a Dayworks b
of Work under the Contract being compensated on a Daywork basis, Contractor shall provide each day to Principal Daywork sheets gi
e applicable);

of personnel employed;
e and the appropriate supervisor;
lassification;

nel and Equipment; and

ription of the Work under the Contract;
e each Daywork sheet by multiplying the hours worked by personnel and Equipment by the applicable Daywork Rates. Fully priced Da
ght to reject any Daywork sheets submitted by Contractor that:
equirements listed above; or
ncipal Representative after the time stipulated for submission of Daywork sheets.
ed to re submit corrected Daywork sheets on the next Payment Claim.
of the Work under the Contract executed on a Daywork basis, Contractor shall at all times exert all reasonable efforts to control and m

day works section of the schedule of prices shall be exclusive of margin, it is the Principal’s requirement that margin be identified clea
include but not be limited to the following;
rsonnel shall be included within the Contractors margin.
nal management teams including operating manager, general managers and all other functional managers.
tractors corporate offices and facilities including but not limited to rent and lease costs associated with buildings, utility costs, cleaning

osts including any relocation costs

ated to the works.
rchiving fee’s.

or’s policies, systems, procedures and processes.

ription costs not specific to the project.

and sponsorships.
ommodation, including where corporate travel and accommodation is in relation to site visits.

cluding but not limited to all head office costs, payroll, procurement, administration and communications etc. and labour costs for per
ractor obligations under the Contract.
es, license fees, know-how fees, usage of proprietary information, Contractor’s Background Intellectual Property, research and develo
ge fluctuations if any;

ompany supplied material upon transfer of care custody & control;

nt relations actions;
ith the requirements of the Contract
he Risk Allocation table for additional detail on risks that are outside this Margin component / rate.
ctor for Corporate Overhead costs associated with the provision of plant, equipment and facilities necessary to maintain general and o
ate Overheads include but are not limited to:
es of partners or corporate officers,
ng management and administration,
al employee business travel, accommodation and meals
 ment costs,
and interest charges,
d maintaining Bank Guarantees, Letters of Credit, etc,
es (except Project related insurances) including premiums, broker’s fees and deductibles.
axes, fees, permits, licences or charges levied by any authority against income, profits, inventories, net worth or the like,
rges including IT, HSE and Employee Relations/Industrial Relations
tions, gifts and contributions,
nature levied by governmental authority,

sts including wages costs to attend pre-employment medical,

fits for “off project” personnel,

unications and mobile telephone charges,
for intellectual property and patents,
nd business promotion expenses,

expenses including rents, bonds, rates, telephones, mobile phones and communication, electricity gas, water, cleaning, office repairs a

tem, computers and software

ommodation costs for events and functions,
or advice sought by the Tenderer under this Contract; and
ses, support services, taxes, risks, liabilities and contingencies incidental to supporting general business activities necessary for executi
of weather outside the definition for a qualifying cause of delay in the Contract.
lement Weather, the Contractor is deemed to have taken cognisance of all local environmental, climatic and weather conditions and t
ns a localised weather event with a demonstrated duration or impact on the WUC greater than 2 continuous hours.
ualifying cause of delay for variation works only, subject to Clauses 34 and 41 of the General Conditions of Contract unless otherwise a
s for Inclement Weather will be valued in accordance with the Daywork Labour Rates and Daywork Plant and Equipment stand-by rate
duration for labour, plant and equipment standby time due to a standby direction issued by the Principal is 8 hours per day.
y PMT shall not be entitled to an inclement weather claim as they are expected to continue works and costs are covered under the TCE
ning and end of rotation), subsistence, and like costs for Contractor’s and subcontractors’ personnel directly or indirectly engaged in th

r agreements, all government contributions and all compliance with government regulations and laws.
ble at Dayworks Rates but instead shall be included for in the provided Dayworks Rate.
afety toolbox talks, prestart, take five, preparation of permits and the associated documentation.
ce / attendance necessary by during performance of the Work.

riced in the pricing schedule for night works if applicable.

plexity or difficulty irrespective of the timing of the activity or its place in the construction sequence.

rs outside normal working. No premium shall be applied to the Rates for overtime, weekend or public holiday working.
s of a subcontractor or other third party;
ch timesheets shall be submitted to Principal for approval the following day after the Work was performed. Acceptance and payment s

ontract as being supplied by others) for incorporation into the temporary and permanent works.

mited to welding rods, grinding discs, blasting material and the like, electricity, air, water, gas, fuel, oil, and grease.

s necessary during fabrication and erection and subsequently dismantling and clearing away all necessary temporary works and tempo

ment (including testing) as required to perform the work.

ngs, coating / isolation pads, connections, couplings, bolts, nuts, etc

all items as necessary during fabrication and erection and subsequently dismantling and clearing away of all temporary works associate

receipts shall be submitted to the Principal for approval, acceptance and payment shall be in accordance with the provisions of the Co

s headed Daywork rates.

iods of standdown, non-working time due to breakdown or maintenance, weather or due to the absence of an operator
nance, depreciation, travelling, profit and all other costs associated with the use of equipment.

g Construction Work by a breach or act of prevention by Principal giving rise to an Extension of Time.
uired to be hired from a third party then, subject to obtaining the prior written agreement of Principal, Contractor shall procure such e
nection with the supply of such Equipment.

plexity or difficulty irrespective of the timing of the activity or its place in the construction sequence.

cable to equipment
k shall not exceed the daily rate multiplied by seven stated in the Pricing Schedules for such plant or Equipment.

e performance of Work Under the Contract being compensated on a Dayworks basis.

eing compensated on a Dayworks basis Contractor shall notify Principal, and provide facilities for Principal’s presence during the progre
day to Principal Daywork sheets giving full and detailed account of all of Contractor’s resources implemented in carrying out that Wor

ble Daywork Rates. Fully priced Daywork sheets shall be submitted to Principal for approval within 5 Working Days of the relevant Day

reasonable efforts to control and minimise the cost of such Work under the Contract.

ment that margin be identified clearly and applied to the net costs for labour, materials, plant & equipment on any day works claim.

with buildings, utility costs, cleaning, stationary, photocopiers, printers and fax machines, infrastructure support, repairs and maintenan

ations etc. and labour costs for personnel not permanently on site. Contractor’s general administration, overhead (e.g. head office cost

tual Property, research and development (including those related to the development of computer systems), corporate and administra

ecessary to maintain general and off site business activities shall be included in the Margin Rate and embedded within the lump sums w
net worth or the like,

as, water, cleaning, office repairs and maintenance,

ness activities necessary for execution of the Work and performance of obligations.

matic and weather conditions and the effect these may have on the construction process.
ntinuous hours.
ons of Contract unless otherwise agreed in the variation.
Plant and Equipment stand-by rates included in the Contract, unless otherwise agreed with the Principal. The maximum claimable dur
ncipal is 8 hours per day.
nd costs are covered under the TCE mechanism.
rectly or indirectly engaged in the performance of the works. This shall include, but not limited to salaries, wages, payroll burdens, bon

holiday working.
med. Acceptance and payment shall be in accordance with the provisions on the Contract and remeasured and claimed on a monthly b

and grease.

ary temporary works and temporary supports.

of all temporary works associated.

nce with the provisions of the Contract.

nce of an operator

, Contractor shall procure such equipment from the relevant third party and be reimbursed at net invoiced cost plus and agreed mark
ipal’s presence during the progress of such work.
mented in carrying out that Work Under the Contract including the following:

Working Days of the relevant Dayworks having been performed.

ment on any day works claim.

e support, repairs and maintenance of any of the Contractor’s off-site facilities and staff amenities.

, overhead (e.g. head office costs, payroll, procurement, administration and communications), labour costs for personnel not permane

tems), corporate and administrative services such as legal, advertising, recruiting, general procurement, corporate accounting, marketi

mbedded within the lump sums where applicable.

al. The maximum claimable duration for labour, plant and equipment standby time due to Inclement Weather per day is eight hours.
ries, wages, payroll burdens, bonus programs, international mobilisation, vacations, holidays, sick leave, overtime, employment premi
ured and claimed on a monthly basis.

oiced cost plus and agreed mark up. This percentage mark-up represents all of Contractor’s costs of operating and maintaining Equipm
costs for personnel not permanently on site.

nt, corporate accounting, marketing, industrial relations, sales and their related office costs.
Weather per day is eight hours.
e, overtime, employment premiums, redundancy provisions, leave allowances including long service leave, payroll taxes, all insurance,
erating and maintaining Equipment, including all mechanical downtime.
eave, payroll taxes, all insurance, superannuation, payments or benefits under national or local agreements, government taxes, visas an
ents, government taxes, visas and work permits, safety and welfare programs and protective clothing.
 Priced Commercial Departures

Number Reference Section or Optional Offer Departure/Exclusion/Assumption

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Note: Contractor to confirm above that framework agreement terms and conditions apply.
 Price and UOM Comment

tions apply.
Contractor shall submit its Commercial Bid Proposal as an attachment.
Furthermore, Contractor to propose Incentive scheme (Bonus/Malus System). Company suggestion is itemized Tab 6 Incen

Contractor to base its pricing on CTR model as more particularly described below.

1 CTR (Cost, Time, Resource) Catalogue / Not to exceed value

1.1 The total Estimated Cost of Work to be performed under this Call Off/Purchase Order is
as set out in the Cost / Time / Resource (CTR) catalogue included in Attachment 2-1. The
Call Off/Purchase Order Price is the total summary Estimated Cost of the CTRs as
follows: Currency Amount Inserted Here [Currency Amount in Words].
1.2 In the event Contractor expends man-hours/costs in excess of the Call Off/Purchase
Order Price CTR catalogue not to exceed value, in Attachment 2-1, no additional
reimbursement shall be made to Contractor unless Company and Contractor agree to a
variation, and execute an appropriate written amendment to this Call Off/Purchase
Order. At all times Contractor shall maintain the obligation to perform and complete the
FEED Works in accordance with the Call Off/Purchase Order.
1.3 Contractor shall expressly notify Company in writing when the total cost expended has
reached 80% (Eighty Percent) of the total summary Call Off/Purchase Order Price stated
above. This notification shall also include Contractor's cost forecast of the total value at
completion and Contractor’s forecast of the actual completion date.
1.4 All Contractor activities / deliverables required to perform and complete the FEED Works
are deemed included in the CTRs in the CTR Catalogue and no additional compensation
shall be available to Contractor where Contractor has failed to include a required activity
/ deliverable in the CTRs.
1.5 Where work performed by Contractor is not in accordance with the Call Off/Purchase
Order the defective work shall be rectified by Contractor to the satisfaction of Company.
All such rectification of defective work by Contractor shall be strictly to Contractor
account and no additional reimbursement shall be made to Contractor in this respect.

2 Rates, Prices and % (per cent) mark-ups from the existing Master Service Contract (MSC) for
Engineering Work (Exhibit D) are applicable for Works properly performed in accordance
with the Contract, FEED Addendum and this Call Off/Purchase Order. Additional
compensation terms applicable specifically for this Call Off/Purchase Order are as expressly
stated in this Attachment. The foregoing represents the sole compensation available to
Contractor for the proper performance of the FEED Works in accordance with this Call
Off/Purchase Order.
 TCE Calculation Example
Scenario 1 - In the money

Estimate of
Hours /
SOW Item SOW Description LEM LEM Description Dayrates Duration
2.3 Project Management Labor PM 1000 100
Labor PE 1000 150
Labor Supervisor 1000 100
Labor Storeman 700 200
Labor Peggy 700 100
Equipment Manitou 500 100
Equipment Light Vehicle 150 100
Material Gravel

Total

Scenario 2 - Out of the Money

Estimate of
Hours /
SOW Item SOW Description LEM LEM Description Dayrates Duration
2.3 Project Management Labor PM 1000 100
Labor PE 1000 150
Labor Supervisor 1000 100
Labor Storeman 700 200
Labor Peggy 700 100
 Estimate of
Hours /
SOW Item SOW Description LEM LEM Description Dayrates Duration
2.3 Project Management Labor PM 1000 100
Labor PE 1000 150
Labor Supervisor 1000 100
Labor Storeman 700 200
Labor Peggy 700 100
Equipment Manitou 500 100
Equipment Light Vehicle 150 100
Material Gravel

Total

Cost to
Company Margin as a %
(Final Cost + of Cost to
Contractors Margin Incentive) Company
TCE $ 63,500.00 $ 698,500.00 9.1%
Scenario 1 - In the Money $ 81,500.00 $ 676,500.00 12.0%
Scenario 2 - Out of the Money $ 23,000.00 $ 748,000.00 3.1%

Note
All figures and numbers are fictional and for illustration purposes only.
Breakeven for Contractor at 22.2% over its original estimate.
on is itemized Tab 6 Incentives.
 Total Cost Actual Cost
(Dayrates * (Dayrates *
Estimate of Estimate of Margin (10%) Actual Hours + Actual Mar
Hours / Hours + (Total Cost * TCE (Total Cost Contract Sum Actual Material (10%) (Actu
Dayrates Duration Materials (Cost) Materials Cost) 10%) + Margin) (TCE) Cost) Cost * 10%)
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 85,000.00 $ 8,500
1000 150 $ 150,000.00 $ 15,000.00 $ 165,000.00 $ 165,000.00 $ 135,000.00 $ 13,500
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 110,000.00 $ 11,000
700 200 $ 140,000.00 $ 14,000.00 $ 154,000.00 $ 154,000.00 $ 150,000.00 $ 15,000
700 100 $ 70,000.00 $ 7,000.00 $ 77,000.00 $ 77,000.00 $ 50,000.00 $ 5,000
500 100 $ 50,000.00 $ 5,000.00 $ 55,000.00 $ 55,000.00 $ 40,000.00 $ 4,000
150 100 $ 15,000.00 $ 1,500.00 $ 16,500.00 $ 16,500.00 $ 15,000.00 $ 1,500
10000 $ 10,000.00 $ 1,000.00 $ 11,000.00 $ 11,000.00 $ 10,000.00 $ 1,000

$ 635,000.00 $ 63,500.00 $ 698,500.00 $ 698,500.00 $ 595,000.00 $ 59,500

Total Cost Actual Cost

(Dayrates * (Dayrates *
Estimate of Estimate of Margin (10%) Actual Hours + Actual Mar
Hours / Hours + (Total Cost * TCE (Total Cost Contract Sum Actual Material (10%) (Actu
Dayrates Duration Materials (Cost) Materials Cost) 10%) + Margin) (TCE) Cost) Cost * 10%)
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 120,000.00 $ 12,000
1000 150 $ 150,000.00 $ 15,000.00 $ 165,000.00 $ 165,000.00 $ 170,000.00 $ 17,000
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 80,000.00 $ 8,000
700 200 $ 140,000.00 $ 14,000.00 $ 154,000.00 $ 154,000.00 $ 150,000.00 $ 15,000
700 100 $ 70,000.00 $ 7,000.00 $ 77,000.00 $ 77,000.00 $ 70,000.00 $ 7,000
 Total Cost Actual Cost
(Dayrates * (Dayrates *
Estimate of Estimate of Margin (10%) Actual Hours + Actual Mar
Hours / Hours + (Total Cost * TCE (Total Cost Contract Sum Actual Material (10%) (Actu
Dayrates Duration Materials (Cost) Materials Cost) 10%) + Margin) (TCE) Cost) Cost * 10%)
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 120,000.00 $ 12,000
1000 150 $ 150,000.00 $ 15,000.00 $ 165,000.00 $ 165,000.00 $ 170,000.00 $ 17,000
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 80,000.00 $ 8,000
700 200 $ 140,000.00 $ 14,000.00 $ 154,000.00 $ 154,000.00 $ 150,000.00 $ 15,000
700 100 $ 70,000.00 $ 7,000.00 $ 77,000.00 $ 77,000.00 $ 70,000.00 $ 7,000
500 100 $ 50,000.00 $ 5,000.00 $ 55,000.00 $ 55,000.00 $ 70,000.00 $ 7,000
150 100 $ 15,000.00 $ 1,500.00 $ 16,500.00 $ 16,500.00 $ 50,000.00 $ 5,000
10000 $ 10,000.00 $ 1,000.00 $ 11,000.00 $ 11,000.00 $ 15,000.00 $ 1,500

$ 635,000.00 $ 63,500.00 $ 698,500.00 $ 698,500.00 $ 725,000.00 $ 72,500

Cost to
Cost to Margin as a % of Contractor as %
Company Margin as a % Cost to Cost to to original
Final Cost + of Cost to Contractor Company as % estimate (Total
ncentive) Company (Actual Cost) to TCE Cost)
$ 698,500.00 9.1% 10.0% 100.0% 100.0%
$ 676,500.00 12.0% 13.7% 96.9% 93.7%
$ 748,000.00 3.1% 3.2% 107.1% 114.2%
 Cost to
Company =
Actual
ual Cost Amount
ayrates * Incentive Claimable
ual Hours + Actual Margin Final Cost Calculation (Final Cost +
ual Material (10%) (Actual (Actual Cost + ((TCE - Final Incentive
st) Cost * 10%) Actual Margin) Cost) / 2) Calculation)
85,000.00 $ 8,500.00 $ 93,500.00
135,000.00 $ 13,500.00 $ 148,500.00
110,000.00 $ 11,000.00 $ 121,000.00
150,000.00 $ 15,000.00 $ 165,000.00
50,000.00 $ 5,000.00 $ 55,000.00
40,000.00 $ 4,000.00 $ 44,000.00
15,000.00 $ 1,500.00 $ 16,500.00
10,000.00 $ 1,000.00 $ 11,000.00

595,000.00 $ 59,500.00 $ 654,500.00 $ 22,000.00 $ 676,500.00

Cost to
Company =
Actual
ual Cost Amount
ayrates * Incentive Claimable
ual Hours + Actual Margin Final Cost Calculation (Final Cost +
ual Material (10%) (Actual (Actual Cost + ((TCE - Final Incentive
st) Cost * 10%) Actual Margin) Cost) / 2) Calculation)
120,000.00 $ 12,000.00 $ 132,000.00
170,000.00 $ 17,000.00 $ 187,000.00
80,000.00 $ 8,000.00 $ 88,000.00
150,000.00 $ 15,000.00 $ 165,000.00
70,000.00 $ 7,000.00 $ 77,000.00
 ual Cost Amount
ayrates * Incentive Claimable
ual Hours + Actual Margin Final Cost Calculation (Final Cost +
ual Material (10%) (Actual (Actual Cost + ((TCE - Final Incentive
st) Cost * 10%) Actual Margin) Cost) / 2) Calculation)
120,000.00 $ 12,000.00 $ 132,000.00
170,000.00 $ 17,000.00 $ 187,000.00
80,000.00 $ 8,000.00 $ 88,000.00
150,000.00 $ 15,000.00 $ 165,000.00
70,000.00 $ 7,000.00 $ 77,000.00
70,000.00 $ 7,000.00 $ 77,000.00
50,000.00 $ 5,000.00 $ 55,000.00
15,000.00 $ 1,500.00 $ 16,500.00

725,000.00 $ 72,500.00 $ 797,500.00 -$ 49,500.00 $ 748,000.00

Company proposed payment milestones.

Monthly based on progress claims

Contractor to consider payment milestones or incentives based on the below Company suggestions.
Contract Award
Kickoff Meeting
HAZOP
30% Model Review
60% Model Review
Tanks GFT Tender Package ready for issue to market
Compressors LLI Tender Package ready for issue to market
Other LLI Tender Package ready for issue to market
Civil package Tender Package ready for issue to market
EPCM SoW Package Ready in alignment with COMPANY
Intergration of FEED with GFT/GLR technology provider Exterran
FEED Complete
Contractor to propose incentive plan/structure below. COMPANY reserves the right to wholly reject or negotiate an amendment

Contractor to propose Incentive scheme (Bonus/Malus System). Company suggestion is itemized below.

1.              Target Cost Estimate

1.1.        TCE Inclusions
1.1.1.  All direct and indirect labour and supervision level, materials, consumables, plant and equipmen
1.1.2.  The applicable definitions for Labour, Equipment/Plant, Material, and Margin shall apply
1.1.3.  The Dayworks Rates are multiplied by the estimate of hours for each labour and equipment desc
1.1.4.  The Material cost is estimated at cost to Contractor.
1.1.5.  The Total Cost is the sum of the material cost and the product of Dayworks Rates multiplied by t
1.1.6.  The Target Cost Estimate is the sum of the Total Cost and the Margin. This shall be the amount a
1.1.7.  The Actual Cost shall be the sum of Actual Material Cost (substantiated by supplier or third-party
1.1.8.  The Actual Margin shall be calculated as the product of the Actual Cost and the relevant mark-up
1.1.9.  The Final Cost is the sum of the Actual Cost and the Actual Margin. The Final Cost is compared to
1.1.10.    The Margin shall be calculated as the product of the Total Cost and the relevant mark-up/marg
1.1.11.    Provision of the Contractor completed estimating spreadsheet and basis of estimate for each r
1.1.12.    The contractor shall provide an estimating spreadsheet as per the example below (TCE Calcula
1.1.13.    The incentive calculation is added on top of the TCE amount but shall be applicable for all TCE
1.1.14.    The tracking and monthly reporting (as per Administration/Project Services Instructions in the
1.1.15.    The TCE amount can only be varied through the variation process defined in the Contract.
1.1.16.    Neutral change events such as Inclement Weather do not attract the Margin / Fee component
1.1.17.    All works on TCE basis shall be claimable monthly on Principal approved dayworks sheets / sign
1.1.18.    Substantiation must meet the minimum requirements as defined in the SOW and the Contract
1.1.19.    The Principal reserves the right to issue the Contractor with a Direction to Proceed with a Not-
1.1.20.    The Direction to Proceed must be followed up by a quantification of actuals following the varia
1.1.21.    Indirect Labor and equipment covered by PMT TCE shall not be entitled to an inclement weath
1.2.        Incentive Calculation
1.2.1.  The Incentive Calculation will consider only the variance between the TCE and the Final Cost. Th
1.2.2.  The Actual Amount Claimable is the sum of the Final Cost and the Incentive Calculation.
1.2.3.  The incentive calculation is applied individually to each TCE item.
1.2.4.  The incentive calculation claims for payment (whether positive or negative) is made upon Princip
1.2.5.  Should the Contractor owe an amount to the Principal due to the incentive calculation, the Princ
1.2.6.  Contractor shall refer to the Example as illustrated below with 2 scenarios of the Incentive Calcu
2.              Provisional Sums
2.1.        Provisional sums are pre-estimates of work that is insufficiently defined to enable a price to be exacted
2.2.        Provisional sums are either estimated and assigned by the Principal and included in the Contract Sum o
2.3.        Provisional sums are included by Principal for Work, materials or services which may require Contracto
2.4.        Upon receipt of sufficient definition to exact a price for a provisional sum item, the Principal may reque
2.5.        Should works commence on a Provisional sum item under the Dayworks compensation model, then th
2.6.        The Provisional Sums included in the contract sum shall be updated with more accurate pricing (based
3.        Dayworks
3.1.  Labour Rate Inclusions
3.1.1         Contractor’s personnel directly involved with performing the additional works only.
3.1.2             All payroll, employment, travel (rotational and business rotational travel shall be limited to fo
3.1.3         All required hand tools, consumables, ladders trestles and the like.
 3.1.4              All other payments and expenses which Contractor may make under national or local agreem
3.1.5.              Travel time and related travel costs for personnel to and from site and to and from camp sh
3.1.6.              Non-productive time, including shift change-over time, meal breaks, scheduled and unsched
3.1.7.              All costs for all Subcontractor and Secondary Subcontractor management, site supervision,
3.1.8.              Accommodation costs
3.2.  Labour Rate Exclusions
3.2.1.              Contractor’s margin and overheads
3.3.  Labour Rate Assumptions
3.3.1           The Daywork rates provided for in the pricing schedule should be for daytime working hours,
3.3.2.              This section applied equally to both direct and indirect labour.
3.3.3.              Dayworks apply equally to performing the works in large or small quantities, at all elevation
3.3.4.              Work performed on an hourly basis shall be determined to the nearest complete quarter ho
3.3.5.              Work performed on a Daywork Rate basis shall be determined on a 10 hour per Day basis o
3.3.6.              Rates shall apply to all hours / Days worked regardless of whether Work is performed durin
3.3.7.              The Daywork rates shall apply regardless of whether the work is executed by the Contracto
3.3.8.              The Daywork rates and prices in the Pricing Schedule shall be fixed for the duration of the C
3.4.  Payment of Dayworks
3.4.1.              Contractor shall submit timesheets for all personnel for which the Contractor requires reim
3.5.  Materials Rate
3.5.1.              Materials for Dayworks shall be reimbursed at the cost plus agreed markup percentage.
3.5.2.              The markup percentage shall account for Costs for the supply of all materials, consumables
3.5.3.              The costs shall include but are not necessarily limited to:
3.5.4.              All costs associated with the procurement and supply of all necessary materials of any type
3.5.5.              All costs associated with delivering to site, taking delivery, handling, preservation and stora
3.5.6.              The supply of all Consumables and sundry items associated with the nature of the Work to
3.5.7.              the supply of all temporary protective materials.
3.5.8.              The supply of fabrication aids, fabricating and erecting temporary supports and effectively s
3.5.9.              The supply of all tags and inspection consumables.
3.5.10.           Costs of services involved in the sourcing and supply of the material to site
3.5.11.           3rd party related costs associated with transportation to and from site, laydown area, camp
3.5.12.           Contractor shall ensure these costs are not duplicated with the Material Component Rate.
3.5.13.           Costs for fabrication shall include all labour, materials, consumable items, provision and ope
3.5.14.           The costs shall additionally include but are not necessarily limited to:Materials including bu
3.5.15.           Risk associated with subcontractors and material suppliers pricing;
3.5.16.           Fabrications aids, fabrication drawings, fabricating and erecting temporary supports and eff
3.5.17.           Temporary fittings, welding consumables, sealing tapes and compounds.
3.5.18.           Painting and coating.
3.5.19.           Traceability management.
3.5.20.           Testing (if required).
3.5.21.           Cleaning
3.5.22.           The Contractor shall submit receipts for any materials which the Contractor requires reimbu
3.6.  Plant and Equipment Rate Inclusions
3.6.1.              Plant & equipment directly involved with performing the additional works only.
3.6.2.              The only items of Plant & Equipment that shall be compensated on a Dayworks basis are th
3.6.3.              Contractor may only claim payment of Plant & Equipment for the time it is actually in use. N
3.6.4.              Daywork Rates for Plant & Equipment include Consumables required for the use of equipm
3.6.5.              Daywork Rates for equipment shall exclude operators unless otherwise indicated.
 3.6.6.              standby rates for Equipment shall only be payable by Principal if such equipment shall have
3.6.7.              In the event that Equipment is required in addition to that listed in the Pricing Schedules he
3.6.8.              All costs of inspections, hiring, testing, tagging, and keeping compliant all plant, equipment,
3.6.9.              Use of any tools (including earth engaging tools), all necessary consumables including oil, lu
3.6.10.           All statutory requirements
3.6.11.           Storage and protection if required
3.6.12.           Rates for plant equipment and temp facilities should be inclusive of hire charges and delive
3.7.  Plant and Equipment Rate Exclusions
3.7.1.              Plant & equipment operators.
3.7.2.              Contractors margin.
3.8.  Plant and Equipment Assumptions
3.8.1.              Dayworks apply equally to performing the works in large or small quantities, at all elevation
3.8.2.              Work performed on an hourly basis shall be determined to the nearest complete quarter ho
3.8.3.              Work performed on a Daywork Rate basis shall be determined on a 10 hour per Day basis o
3.8.4.              Plant and equipment used on nightshift shall be charged at the same rate as the dayshift. Ie
3.8.5.              where an item of plant or Equipment is reimbursed on the basis of daily rates the maximum
3.8.6.              The daywork rates and prices in the Pricing Schedule shall be fixed for the duration of the C
3.9.  Dayworks Procedure
3.9.1.              Contractor shall provide to Principal, priced timesheets for all personnel, Equipment, and m
3.9.2.              As early as practically possible (and in any event not less than twenty-four (24) hours) befor
3.9.3.              Throughout the duration of Work under the Contract being compensated on a Daywork bas
3.9.4.              reference number (where applicable);
3.9.5.              date when work was executed;
3.9.6.              names and occupations of personnel employed;
3.9.7.              signature of the employee and the appropriate supervisor;
3.9.8.              equipment by type and classification;
3.9.9.              materials supplied and used ;
3.9.10.           hours worked for personnel and Equipment; and
3.9.11.           sufficiently detailed description of the Work under the Contract;
3.9.12.           Contractor shall fully price each Daywork sheet by multiplying the hours worked by personn
3.9.13.           Principal shall have the right to reject any Daywork sheets submitted by Contractor that:
3.9.14.           do not comply with the requirements listed above; or
3.9.15.           are submitted to the Principal Representative after the time stipulated for submission of Da
3.9.16.           Contractor shall be entitled to re submit corrected Daywork sheets on the next Payment Cla
3.9.17.           Throughout the duration of the Work under the Contract executed on a Daywork basis, Con
3.10.    Margin
3.10.1.           The rates included in the day works section of the schedule of prices shall be exclusive of m
3.10.2.           Contractors margin shall include but not be limited to the following;
3.10.3.           All corporate support personnel shall be included within the Contractors margin.
3.10.4.           Local, regional and national management teams including operating manager, general man
3.10.5.           The costs of running Contractors corporate offices and facilities including but not limited to
3.10.6.           All finance charges.
3.10.7.           Personnel recruitment costs including any relocation costs
3.10.8.           Mobile phones not dedicated to the works.
3.10.9.           Document storage and archiving fee’s.
3.10.10.       Legal fees, costs and expenses.
3.10.11.       Development of Contractor’s policies, systems, procedures and processes.
3.10.12.       Specialist software subscription costs not specific to the project.
3.10.13.       Fringe benefit taxes.
3.10.14.       Corporate memberships and sponsorships.
3.10.15.       Corporate travel and accommodation, including where corporate travel and accommodatio
3.10.16.       Audit fees.
3.10.17.       Insurances.
3.10.18.       Contractor’s Profit.
3.10.19.       Contractor’s overhead including but not limited to all head office costs, payroll, procuremen
3.10.20.       Compliance with all Contractor obligations under the Contract.
3.10.21.       All costs of royalties, duties, license fees, know-how fees, usage of proprietary information,
3.10.22.       Foreign currency exchange fluctuations if any;
3.10.23.       Forward escalation;
3.10.24.       Ground conditions;
3.10.25.       Loss and or damage to Company supplied material upon transfer of care custody & control;
3.10.26.       Industrial and employment relations actions;
3.10.27.       All costs of compliance with the requirements of the Contract
3.10.28.       Contractor shall refer to the Risk Allocation table for additional detail on risks that are outsid
3.10.29.       Compensation to Contractor for Corporate Overhead costs associated with the provision of
3.10.30.       items forming the Corporate Overheads include but are not limited to:
3.10.31.       Directors’ fees and salaries of partners or corporate officers,
3.10.32.       Head office costs including management and administration,
3.10.33.       Corporate and non-manual employee business travel, accommodation and meals
3.10.34.       Advertising and entertainment costs,
3.10.35.       Principal financing costs and interest charges,
3.10.36.       Costs for establishing and maintaining Bank Guarantees, Letters of Credit, etc,
3.10.37.       Costs for Insurance policies (except Project related insurances) including premiums, broker’
3.10.38.       Corporate and business taxes, fees, permits, licences or charges levied by any authority aga
3.10.39.       Corporate functional charges including IT, HSE and Employee Relations/Industrial Relations
3.10.40.       Costs of any and all donations, gifts and contributions,
3.10.41.       Fines or penalties of any nature levied by governmental authority,
3.10.42.       Legal Services,
3.10.43.       Offsite administration costs including wages costs to attend pre-employment medical,
3.10.44.       Ownership and real estate costs,
3.10.45.       Salaries, wages and benefits for “off project” personnel,
3.10.46.       Off and On Project communications and mobile telephone charges,
3.10.47.       licence charges and fees for intellectual property and patents,
3.10.48.       Marketing, advertising and business promotion expenses,
3.10.49.       Financial audit and advisory fees,
3.10.50.       Corporate office running expenses including rents, bonds, rates, telephones, mobile phones
3.10.51.       Stamp Duty
3.10.52.       Professional development courses
3.10.53.       Accounts payable and receivable
3.10.54.       Mainframe computer system, computers and software
3.10.55.       Staff time, travel and accommodation costs for events and functions,
3.10.56.       legal costs for any action or advice sought by the Tenderer under this Contract; and
3.10.57.       All other costs and expenses, support services, taxes, risks, liabilities and contingencies incid
3.10.58.       Weather and the effects of weather outside the definition for a qualifying cause of delay in
 3.10.59.       With the exception of Inclement Weather, the Contractor is deemed to have taken cognisan
3.10.60.       Inclement Weather means a localised weather event with a demonstrated duration or impa
3.10.61.       Inclement Weather is a qualifying cause of delay for variation works only, subject to Clauses
3.10.62.       Principal approved claims for Inclement Weather will be valued in accordance with the Dayw
3.10.63.       The maximum claimable duration for labour, plant and equipment standby time due to a sta
3.10.64.       Indirect Labor covered by PMT shall not be entitled to an inclement weather claim as they a
TCE Calculation Example
Scenario 1 - In the money

Estimate of
Hours /
SOW Item SOW Description LEM LEM Description Dayrates Duration Materia
2.3 Project Management Labor PM 1000 100
Labor PE 1000 150
Labor Supervisor 1000 100
Labor Storeman 700 200
Labor Peggy 700 100
Equipment Manitou 500 100
Equipment Light Vehicle 150 100
Material Gravel

Total

Scenario 2 - Out of the Money

Estimate of
Hours /
SOW Item SOW Description LEM LEM Description Dayrates Duration Materia
2.3 Project Management Labor PM 1000 100
Labor PE 1000 150
Labor Supervisor 1000 100
Labor Storeman 700 200
Labor Peggy 700 100
Equipment Manitou 500 100
Equipment Light Vehicle 150 100
Material Gravel

Total

Cost to Margin
Company Margin as a % Cost to
(Final Cost + of Cost to Contrac
Contractors Margin Incentive) Company (Actual
TCE $ 63,500.00 $ 698,500.00 9.1%
Scenario 1 - In the Money $ 81,500.00 $ 676,500.00 12.0%
Scenario 2 - Out of the Money $ 23,000.00 $ 748,000.00 3.1%

Note
All figures and numbers are fictional and for illustration purposes only.
Breakeven for Contractor at 22.2% over its original estimate.
 Contractors Margin Incentive) Company (Actual
TCE $ 63,500.00 $ 698,500.00 9.1%
Scenario 1 - In the Money $ 81,500.00 $ 676,500.00 12.0%
Scenario 2 - Out of the Money $ 23,000.00 $ 748,000.00 3.1%

Note
All figures and numbers are fictional and for illustration purposes only.
Breakeven for Contractor at 22.2% over its original estimate.
 ct or negotiate an amendment of the incentive scheme proposal.

umables, plant and equipment required to complete the Scope of Works in accordance with the specifications and drawings.
and Margin shall apply
ch labour and equipment description/rate (LEM) for each item of scope/ SoW position.

ayworks Rates multiplied by the estimate of hours.

gin. This shall be the amount against which performance will be measured and against which the incentive calculation will apply.
ated by supplier or third-party invoice) and the product of the Actual Hours for each labour and equipment item multiplied by the applica
Cost and the relevant mark-up percentage/Margin (as applicable to Dayworks Rate).
The Final Cost is compared to the Target Cost Estimate.
nd the relevant mark-up/margin percentage (as applicable to Dayworks Rate).
nd basis of estimate for each rate item
e example below (TCE Calculation Example) for each item to be priced on a TCE basis showing the applicable Dayworks Rate for labour, eq
shall be applicable for all TCE items and is more particularly described below.
ct Services Instructions in the Scope of Work) of actual costs is presented in the same format and against each TCE item individually per th
s defined in the Contract.
t the Margin / Fee component and will be reimbursed at cost / stand-by Dayworks Rate only.
pproved dayworks sheets / signed daily records and substantiated 3rd party invoices.
d in the SOW and the Contract.
rection to Proceed with a Not-to-Exceed Value using the template forms in the Administration Instructions which can draw down on the C
n of actuals following the variation process outlined in the Administration Instructions.
entitled to an inclement weather claim as they are expected to continue works and costs are covered under the TCE mechanism.

the TCE and the Final Cost. The Target Cost Estimate is subtracted by the Final Cost to give the variance. The variance is divided by 2. This a
Incentive Calculation.

negative) is made upon Principal approved completion of each TCE item in the month within which it occurs as per the progress claim sche
ncentive calculation, the Principal may deduct from the monies certified and due the amount owed or draw on the security provided.
enarios of the Incentive Calculation.

o enable a price to be exacted.

ncluded in the Contract Sum or estimated by the Contractor upon Principal request and assigned by the Principal and included in the Con
s which may require Contractor to perform or provide in part or in full. Provisional sums included to cover specific elements of the Work, t
m item, the Principal may request the Contractor to price the work on the basis of another compensation model.
compensation model, then the Provisional Sum amount is the capped amount and shall not be exceeded by the Contractor.
more accurate pricing (based on one of the compensation basis above) as sufficient detail becomes available to enable such updated pric

ditional works only.

nal travel shall be limited to four hours each way at the beginning and end of rotation), subsistence, and like costs for Contractor’s and su
 under national or local agreements, applicable industry labour agreements, all government contributions and all compliance with governm
site and to and from camp shall not be additionally reimbursable at Dayworks Rates but instead shall be included for in the provided Day
breaks, scheduled and unscheduled equipment maintenance, safety toolbox talks, prestart, take five, preparation of permits and the assoc
management, site supervision, field support and service assistance / attendance necessary by during performance of the Work.

be for daytime working hours, a separate uplift % should be priced in the pricing schedule for night works if applicable.

mall quantities, at all elevations, in all positions, and of any complexity or difficulty irrespective of the timing of the activity or its place in th
e nearest complete quarter hour.
d on a 10 hour per Day basis or pro rata for part thereof.
ther Work is performed during normal working hours or at hours outside normal working. No premium shall be applied to the Rates for ov
k is executed by the Contractor’s own resources or the resources of a subcontractor or other third party;
fixed for the duration of the Contract.

h the Contractor requires reimbursement at Daywork Rates. Such timesheets shall be submitted to Principal for approval the following day

greed markup percentage.

of all materials, consumables and items (not identified in the Contract as being supplied by others) for incorporation into the temporary a

ecessary materials of any type to complete the work.

ndling, preservation and storage of all Company Supplied Materials
ith the nature of the Work to be performed including but not limited to welding rods, grinding discs, blasting material and the like, electric

rary supports and effectively staying and supporting all items as necessary during fabrication and erection and subsequently dismantling a

aterial to site
from site, laydown area, camp, and Vienna
e Material Component Rate.
mable items, provision and operation of plant, tools and equipment (including testing) as required to perform the work.
ited to:Materials including but not limited to valves, in-line fittings, coating / isolation pads, connections, couplings, bolts, nuts, etc

ng temporary supports and effectively securing the supporting all items as necessary during fabrication and erection and subsequently dism

he Contractor requires reimbursement at Daywork rates. Such receipts shall be submitted to the Principal for approval, acceptance and pa

tional works only.

ed on a Dayworks basis are those listed in the Pricing Schedules headed Daywork rates.
the time it is actually in use. No payment shall be made for periods of standdown, non-working time due to breakdown or maintenance, w
equired for the use of equipment, its insurance, repairs, maintenance, depreciation, travelling, profit and all other costs associated with th
otherwise indicated.
 l if such equipment shall have been prevented from performing Construction Work by a breach or act of prevention by Principal giving rise
ed in the Pricing Schedules headed Daywork Rates which is required to be hired from a third party then, subject to obtaining the prior wri
ompliant all plant, equipment, tools and specialist tools. -in connection with the supply of such Equipment.
y consumables including oil, lubricants, fuel, maintenance and the like

sive of hire charges and delivered to site.

mall quantities, at all elevations, in all positions, and of any complexity or difficulty irrespective of the timing of the activity or its place in th
e nearest complete quarter hour.
d on a 10 hour per Day basis or pro rata for part thereof.
e same rate as the dayshift. Ie no nightshift uplift shall be applicable to equipment
sis of daily rates the maximum amount payable in any one week shall not exceed the daily rate multiplied by seven stated in the Pricing Sc
fixed for the duration of the Contract.

personnel, Equipment, and materials used by Contractor in the performance of Work Under the Contract being compensated on a Daywo
twenty-four (24) hours) before commencement of any work being compensated on a Dayworks basis Contractor shall notify Principal, and
ompensated on a Daywork basis, Contractor shall provide each day to Principal Daywork sheets giving full and detailed account of all of Co

g the hours worked by personnel and Equipment by the applicable Daywork Rates. Fully priced Daywork sheets shall be submitted to Princ
bmitted by Contractor that:

tipulated for submission of Daywork sheets.

heets on the next Payment Claim.
cuted on a Daywork basis, Contractor shall at all times exert all reasonable efforts to control and minimise the cost of such Work under the

f prices shall be exclusive of margin, it is the Principal’s requirement that margin be identified clearly and applied to the net costs for labou

Contractors margin.
erating manager, general managers and all other functional managers.
es including but not limited to rent and lease costs associated with buildings, utility costs, cleaning, stationary, photocopiers, printers and f

d processes.
 ate travel and accommodation is in relation to site visits.

ffice costs, payroll, procurement, administration and communications etc. and labour costs for personnel not permanently on site. Contract

ge of proprietary information, Contractor’s Background Intellectual Property, research and development (including those related to the de

fer of care custody & control;

al detail on risks that are outside this Margin component / rate.

sociated with the provision of plant, equipment and facilities necessary to maintain general and off site business activities shall be included

modation and meals

rs of Credit, etc,
) including premiums, broker’s fees and deductibles.
es levied by any authority against income, profits, inventories, net worth or the like,
Relations/Industrial Relations

re-employment medical,

es, telephones, mobile phones and communication, electricity gas, water, cleaning, office repairs and maintenance,

der this Contract; and

bilities and contingencies incidental to supporting general business activities necessary for execution of the Work and performance of obli
a qualifying cause of delay in the Contract.
 eemed to have taken cognisance of all local environmental, climatic and weather conditions and the effect these may have on the constru
emonstrated duration or impact on the WUC greater than 2 continuous hours.
works only, subject to Clauses in Contract unless otherwise agreed in the variation.
d in accordance with the Daywork Labour Rates and Daywork Plant and Equipment stand-by rates included in the Contract, unless otherw
ment standby time due to a standby direction issued by the Principal is 8 hours per day.
ement weather claim as they are expected to continue works and costs are covered under the TCE mechanism.

Total Cost Actual Cost

(Dayrates * (Dayrates *
Estimate of Estimate of Margin (10%) Actual Hours + Actual Margin Final Co
Hours / Hours + (Total Cost * TCE (Total Cost Contract Sum Actual Material (10%) (Actual (Actual C
ates Duration Materials (Cost) Materials Cost) 10%) + Margin) (TCE) Cost) Cost * 10%) Actual M
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 85,000.00 $ 8,500.00 $ 93,
1000 150 $ 150,000.00 $ 15,000.00 $ 165,000.00 $ 165,000.00 $ 135,000.00 $ 13,500.00 $ 148,
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 110,000.00 $ 11,000.00 $ 121,
700 200 $ 140,000.00 $ 14,000.00 $ 154,000.00 $ 154,000.00 $ 150,000.00 $ 15,000.00 $ 165,
700 100 $ 70,000.00 $ 7,000.00 $ 77,000.00 $ 77,000.00 $ 50,000.00 $ 5,000.00 $ 55,
500 100 $ 50,000.00 $ 5,000.00 $ 55,000.00 $ 55,000.00 $ 40,000.00 $ 4,000.00 $ 44,
150 100 $ 15,000.00 $ 1,500.00 $ 16,500.00 $ 16,500.00 $ 15,000.00 $ 1,500.00 $ 16,
10000 $ 10,000.00 $ 1,000.00 $ 11,000.00 $ 11,000.00 $ 10,000.00 $ 1,000.00 $ 11,

$ 635,000.00 $ 63,500.00 $ 698,500.00 $ 698,500.00 $ 595,000.00 $ 59,500.00 $ 654,

Total Cost Actual Cost

(Dayrates * (Dayrates *
Estimate of Estimate of Margin (10%) Actual Hours + Actual Margin Final Co
Hours / Hours + (Total Cost * TCE (Total Cost Contract Sum Actual Material (10%) (Actual (Actual C
ates Duration Materials (Cost) Materials Cost) 10%) + Margin) (TCE) Cost) Cost * 10%) Actual M
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 120,000.00 $ 12,000.00 $ 132,
1000 150 $ 150,000.00 $ 15,000.00 $ 165,000.00 $ 165,000.00 $ 170,000.00 $ 17,000.00 $ 187,
1000 100 $ 100,000.00 $ 10,000.00 $ 110,000.00 $ 110,000.00 $ 80,000.00 $ 8,000.00 $ 88,
700 200 $ 140,000.00 $ 14,000.00 $ 154,000.00 $ 154,000.00 $ 150,000.00 $ 15,000.00 $ 165,
700 100 $ 70,000.00 $ 7,000.00 $ 77,000.00 $ 77,000.00 $ 70,000.00 $ 7,000.00 $ 77,
500 100 $ 50,000.00 $ 5,000.00 $ 55,000.00 $ 55,000.00 $ 70,000.00 $ 7,000.00 $ 77,
150 100 $ 15,000.00 $ 1,500.00 $ 16,500.00 $ 16,500.00 $ 50,000.00 $ 5,000.00 $ 55,
10000 $ 10,000.00 $ 1,000.00 $ 11,000.00 $ 11,000.00 $ 15,000.00 $ 1,500.00 $ 16,

$ 635,000.00 $ 63,500.00 $ 698,500.00 $ 698,500.00 $ 725,000.00 $ 72,500.00 $ 797,

Cost to
to Margin as a % of Contractor as %
pany Margin as a % Cost to Cost to to original
al Cost + of Cost to Contractor Company as % estimate (Total
ntive) Company (Actual Cost) to TCE Cost)
98,500.00 9.1% 10.0% 100.0% 100.0%
76,500.00 12.0% 13.7% 96.9% 93.7%
48,000.00 3.1% 3.2% 107.1% 114.2%
ntive) Company (Actual Cost) to TCE Cost)
98,500.00 9.1% 10.0% 100.0% 100.0%
76,500.00 12.0% 13.7% 96.9% 93.7%
48,000.00 3.1% 3.2% 107.1% 114.2%
 ns and drawings.

alculation will apply.

item multiplied by the applicable Dayworks Rate.

e Dayworks Rate for labour, equipment, material, the estimate of hours, the estimate of material cost at cost price, the total cost (sum of l

ch TCE item individually per the Pricing Schedule with the addition of an actual cost column, and actual margin/mark-up/fee column, a fin

which can draw down on the Contingency Sum.

the TCE mechanism.

variance is divided by 2. This amount will be the Incentive Calculation and can be either positive or negative. This effectively means that th

as per the progress claim schedule or alternatively upon Practical Completion.

on the security provided.

ncipal and included in the Contract Sum.

ecific elements of the Work, the extent of which has not been fully defined at the contract award. The inclusion of the Provisional sums im

the Contractor.
e to enable such updated pricing. Through this mechanism, the provisional sums may be adjusted up or down. The provisional sums listed

e costs for Contractor’s and subcontractors’ personnel directly or indirectly engaged in the performance of the works. This shall include, bu
nd all compliance with government regulations and laws.
luded for in the provided Dayworks Rate.
ation of permits and the associated documentation.
ance of the Work.

of the activity or its place in the construction sequence.

be applied to the Rates for overtime, weekend or public holiday working.

for approval the following day after the Work was performed. Acceptance and payment shall be in accordance with the provisions on the

poration into the temporary and permanent works.

g material and the like, electricity, air, water, gas, fuel, oil, and grease.

nd subsequently dismantling and clearing away all necessary temporary works and temporary supports.

m the work.
uplings, bolts, nuts, etc

erection and subsequently dismantling and clearing away of all temporary works associated.

or approval, acceptance and payment shall be in accordance with the provisions of the Contract.

breakdown or maintenance, weather or due to the absence of an operator

other costs associated with the use of equipment.
 vention by Principal giving rise to an Extension of Time.
ject to obtaining the prior written agreement of Principal, Contractor shall procure such equipment from the relevant third party and be r

of the activity or its place in the construction sequence.

y seven stated in the Pricing Schedules for such plant or Equipment.

eing compensated on a Dayworks basis.

actor shall notify Principal, and provide facilities for Principal’s presence during the progress of such work.
d detailed account of all of Contractor’s resources implemented in carrying out that Work Under the Contract including the following:

ets shall be submitted to Principal for approval within 5 Working Days of the relevant Dayworks having been performed.

he cost of such Work under the Contract.

plied to the net costs for labour, materials, plant & equipment on any day works claim.

y, photocopiers, printers and fax machines, infrastructure support, repairs and maintenance of any of the Contractor’s off-site facilities an
permanently on site. Contractor’s general administration, overhead (e.g. head office costs, payroll, procurement, administration and com

luding those related to the development of computer systems), corporate and administrative services such as legal, advertising, recruiting

ness activities shall be included in the Margin Rate and embedded within the lump sums where applicable.

Work and performance of obligations.

 hese may have on the construction process.

in the Contract, unless otherwise agreed with the Principal. The maximum claimable duration for labour, plant and equipment standby tim

Cost to
Company =
Actual
ost Amount
s* Incentive Claimable
ours + Actual Margin Final Cost Calculation (Final Cost +
Material (10%) (Actual (Actual Cost + ((TCE - Final Incentive
Cost * 10%) Actual Margin) Cost) / 2) Calculation)
000.00 $ 8,500.00 $ 93,500.00
000.00 $ 13,500.00 $ 148,500.00
000.00 $ 11,000.00 $ 121,000.00
000.00 $ 15,000.00 $ 165,000.00
000.00 $ 5,000.00 $ 55,000.00
000.00 $ 4,000.00 $ 44,000.00
000.00 $ 1,500.00 $ 16,500.00
000.00 $ 1,000.00 $ 11,000.00

000.00 $ 59,500.00 $ 654,500.00 $ 22,000.00 $ 676,500.00

Cost to
Company =
Actual
ost Amount
s* Incentive Claimable
ours + Actual Margin Final Cost Calculation (Final Cost +
Material (10%) (Actual (Actual Cost + ((TCE - Final Incentive
Cost * 10%) Actual Margin) Cost) / 2) Calculation)
000.00 $ 12,000.00 $ 132,000.00
000.00 $ 17,000.00 $ 187,000.00
000.00 $ 8,000.00 $ 88,000.00
000.00 $ 15,000.00 $ 165,000.00
000.00 $ 7,000.00 $ 77,000.00
000.00 $ 7,000.00 $ 77,000.00
000.00 $ 5,000.00 $ 55,000.00
000.00 $ 1,500.00 $ 16,500.00

000.00 $ 72,500.00 $ 797,500.00 -$ 49,500.00 $ 748,000.00

t price, the total cost (sum of labour, equipment, material costs), the margin/mark-up/fee applied, and the Target Cost Estimate price.

gin/mark-up/fee column, a final cost, the incentive calculation, and the actual amount claimable.

. This effectively means that the Principal and Contractor will share equally in the performance of the works in both instances of performa

sion of the Provisional sums implies no obligation on the Principal to expend all or part of such rates, sums or amounts, and any such provi

wn. The provisional sums listed in the contract sum shall therefore not automatically become due and payable to the contractor.

he works. This shall include, but not limited to salaries, wages, payroll burdens, bonus programs, international mobilisation, vacations, holi
ce with the provisions on the Contract and remeasured and claimed on a monthly basis.
e relevant third party and be reimbursed at net invoiced cost plus and agreed mark up. This percentage mark-up represents all of Contract

ct including the following:

performed.

ontractor’s off-site facilities and staff amenities.

ment, administration and communications), labour costs for personnel not permanently on site.

as legal, advertising, recruiting, general procurement, corporate accounting, marketing, industrial relations, sales and their related office co
ant and equipment standby time due to Inclement Weather per day is eight hours.
arget Cost Estimate price.

in both instances of performance under- and over-budget.

r amounts, and any such provisional sums may be deleted in their entirety at no cost to Principal.

e to the contractor.

al mobilisation, vacations, holidays, sick leave, overtime, employment premiums, redundancy provisions, leave allowances including long s
k-up represents all of Contractor’s costs of operating and maintaining Equipment, including all mechanical downtime.
ales and their related office costs.
ve allowances including long service leave, payroll taxes, all insurance, superannuation, payments or benefits under national or local agree
s under national or local agreements, government taxes, visas and work permits, safety and welfare programs and protective clothing.
ms and protective clothing.
Schedule of Prices

Contractor to populate this spreadsheet from the individual CTRs.

FEED Scope of Work

Item No. Description Manhours Cost
1 CTR 1 (Contractor to adjust/reword)
2 CTR 2 (Contractor to adjust/reword)
3 Contractor to add more CTRs as required
4 Contractor to add more CTRs as required
5 Incentives
6 Target Price (Total Awarded Contract Sum)

Bidders to provide an estimate for the EPCM Scope of Work list. This will be revalidated during FEED.

EPCM Scope of Work

Item No. Description Manhours Cost
1 CTR 1 (Contractor to adjust/reword)
2 CTR 2 (Contractor to adjust/reword)
3 Contractor to add more CTRs as required
4 Contractor to add more CTRs as required
5 Incentives
6 Target Price (Total Awarded Contract Sum)