1.

0 INTRODUCTION 5

1.1 Project Overview 5

1.2 Definition 7
1.3 Project Objectives 7
1.4 PCIHBV Responsibilities 10
2.0 WORK REQUIREMENTS 10

2.1 General Scope of Work 10

2.2 Design Parameter 13
2.3 Scope of Work Summary 13
2.4 CONTRACTOR General Responsibilities 15
3.0 PROJECT MANAGEMENT AND PROJECT CONTROL 17

3.1 Project Management 18

3.2 Project Control 20
4.0 SERVICES AND FACILITIES FOR PCIHBV PERSONNEL 20

4.1 Introduction 20
4.3 Services and Facilities at WORKSITE 21
4.4 Facilities During Warranty Period 22
5.0 DESIGN AND ENGINEERING 22

5.1 General 22
5.2 Design Basis Memorandum (DBM) 22
5.3 FEED Package Review 23
5.4 Detail Engineering and Engineering Deliverables 24
6.0 PROCUREMENT 39

6.1 General 39
6.2 VENDOR Requirements 41
6.3 SUBCONTRACTOR’s Requirements 42
6.4 Purchasing 43
6.5 Expediting 43
 6.6 Audit 44
6.7 Inspection and Testing 44
6.8 Transportation and Shipment 45
6.9 Logistic Plan 47
6.10 Packing and Marking 48
6.11 Tax Exemption for Local/Imported Material 51
6.12 Customs Clearance and Customs Duty 52
6.13 Storage 53
6.14 Reports 53
6.15 Material Control and Tracking System 54
6.16 Procurement Close-out Report 55
7.0 CONSTRUCTION 55

7.1 General 55
7.2 Construction Plan 58
7.3 Site Mobilization 59
7.4 Site Organization and Facilities 60
7.5 Site Survey and Access 62
7.6 Permit To Work (PTW) 62
7.7 Safety 63
7.8 CONTRACTOR’S Representative at WORKSITE 64
7.9 Scope of Construction Work 70
8.0 CONSTRUCTION COMPLETION 72

8.1 Construction Completion Certificate 72

8.2 Construction Completion Checklists 73
9.0 PROVISIONAL ACCEPTANCE 74

9.1 General 74
9.2 PROVISIONAL Acceptance Date 74
9.3 PROVISIONAL Acceptance Certificate 75
10.0 WARRANTY 75

11.0 FINAL ACCEPTANCE 75

12.0 PROJECT DOCUMENTATION 76

 12.1 Final Documentation 76
12.2 Project Close Out 78
13.0 DEMOBILISATION 79
 45°E 46°E 47°E 48°E

Dhafriyah
Kut
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BUZURGAN
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w
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32°N

32°N
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24"
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East Rafidian
Misan Huwaiza
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8" HALFAYA
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31°N
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42"
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24"

Muftiah
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KUWAIT BAHRAH
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KAAOT - Khor Al Amaya Oil Terminal

ABOT - Al Basra Oil Terminal
KUWAIT
km CITY
0 25 50 100

45°E 46°E 47°E 48°E

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The PROVISIONAL ACCEPTANCE shall occur by the end of the Commissioning and
Performance Test Stage on completion of scope of the CONTRACT i.e. completion of
perimeter lighting performance test.

The PROVISIONAL ACCEPTANCE Date is considered as the date of issuance of the

PROVISIONAL ACCEPTANCE Certificate by COMPANY
As soon as the CONTRACTOR has completed the Commissioning and Performance
Test requirements and is ready for use and put in service by COMPANY, the
CONTRACTOR shall issue written Handover Notice to COMPANY specifying the
Handover Date for the PROJECT. COMPANY shall promptly perform such inspection
and test of the WORK as it deems appropriate and, if agreed by COMPANY, within ten
(10) working days of receipt of CONTRACTOR’s written notice, COMPANY shall
counter sign the Handover Notice to confirm the Handover Date.
Upon approval of Handover Notice, COMPANY shall issue PROVISION
ACCEPTANCE Certificate which signifies COMPANY’s acceptance of the WORK with
exception to any deficiencies attached thereto which CONTRACTOR is still obliged to
remedy under the CONTRACT.
The PROVISIONAL ACCEPTANCE Certificate for the WORK shall not be issued until
the CONTRACTOR has been completed and meets and satisfies the following criteria:
a. It conforms to the CONTRACT requirements and all specifications and AFC
Drawings referred to in this CONTRACT or thereafter furnished and approved
by COMPANY in accordance with this CONTRACT;
b. It is free of any defect in fabrication, installation, construction on workmanship,
other than a minimum number of minor defects subject to prompt correction
and that said minor defects are fully described and attached to the said written
notice as a Punch List;
c. It is free of any defect, deficiency or omission in any design or engineering;
d. It meets all requirements of a certifying authority, if such a certifying authority
has been appointed by COMPANY;
e. Equipment, material and supplies furnished by CONTRACTOR for the WORK
are in accordance with the CONTRACT specifications, and are fit for the
intended purposes;
f. All systems and equipment are within their performance requirements both
individually and together as an operating system;
g. All requirements for mechanical completion have been met and the mechanical
completion certificate has been issued;
h. All Commissioning activities have been completed to the satisfaction of
COMPANY and that the system is fully ready for service.

CONTRACTOR shall, within thirty (30) calendar days from the date of provisional
acceptance certificate for the WORK, submit to COMPANY a Work Closure Certificate
and Project Final Account stating outstanding punchlist items and billings under the
CONTRACT for COMPANY’s approval. Such items may include outstanding billing or
payment of CONTRACT Price, Change Order, reimbursable and other charges.
COMPANY shall not entertain CONTRACTOR’s inclusion or amendment to the Work
Closure Certificate which may arise beyond the date as described in this ARTICLE.
CONTRACTOR shall expeditiously resolve whatever outstanding punchlist items,
billings and any other obligations under the CONTRACT.