To. : M/S.

GMCO
Attn. : Mr.Ala
Tel.
Proj. : B99-Pump Station- Riyadh
Date : 28/06/2021
Our Ref.
Yr. Ref.
Subject :Conditonal Order for The Installation and Testing of Carbon Steel pipes
Dear Sirs,
Reference to the said project and your quotation , we are pleased to send you order for the installation of carbon steel pipes ,fittings,
welding,Valves, Testing ,flusing, cholorination complete as per approved drawings ref # C-URA-99-154-001-03, M-D-PS-PL-001-01,
Sheet 1/3,2/3,3/3 and project specification at a total agreed amount of 850,000 Sar ( Eight hundred fifty Thousand Saudi Riyals)
including 15% VAT.

Our Order is based on the following Terms and Conditions:---

A- M/s GMCO scope of works:--
1- Pipe laying, welding, Fittings,valves instalaltion, pump connection, supports, welding procedure ( PQR) , NDT Testing ,
Hydro Pressure testing of pipes, pipe cleaning,Flusing, and Chlorination.
2- Installation of pipes, fittings,Valves and pump connection shall be as per approved drawings and project stds.
3- Supply of all necessary tools , welding machines,and consumables such as welding rods, cutting disc, Grinding disc,
lubricants,or any that is necessary to complete the work.
4- M/s GMCO to make sure that all legal and other formalities such as valid iqamas,health insurance is fully covered for their
site Team and staff deployed to work at site.
5- M/s GMCO is repsonbile for transporation, accomodaiton , food and any medical aid required due to unforseen situation at
site
6- M/s GMCO to follow all the project stds, approvals and shall furnish the job upto the satisfaction of client, any repitition of
work due to consultant remarks ( as per STDS & contractual drawings only) shall not be paid extra and M/s GMCO shall
finish with no extra time.
7-
M/s GMCO to make sure that pipe external/Internal protection is not damaged and welding joint shall be cleaned properly ,
tested , inspected ( NDT) and then shall apply exterior /intreior paint and protection as per manufacturer stds, project
approvals. Training shall be provided to M/s GMCO team.
8 Connection to the pump shall be made in such a manner that no pipe load sustains on the pump and pump shall run in free
condition without any external enforced stresses.
9- M/s GMCO must ensure that all piping provisions shall be made prior to pressure test the pipes such as vent, drain points,
pressure gauge and any other accessory required as per approved drawings
10- M/s GMCO to depute their team at site with in a week time after receiving piping material at site from the supplier, M/s SAG
shall notify M/s GMCO officially thru email about the availibiity of piping material at site.
11- M/s GMCO to follow all HSE stds at site and make sure that no any accident occur due to negiligence at work , also site
responsible must be fully aware of installation stds and must be present at site on full time basis. No direct contact either with
consultant or client representative is accepted without the presence of SAG representative.
12- M/s GMCO shall finish all the piping work with in project time frame , any delay shall be charged based on project delay
penalty clause.
13- In case of the M/s SAG default on payments of invoices or compensation. It will be granted 15-days without cessation
of work and whether delays persist will be continued, M/s GMCo is entitled cessation of work therefore, M/s SAG shall
be charged all the penalties (EOT & cost claim) of delayings.

B- SAG Scope :--

1- SAG shall provide crane for material handling ,scaffoldings and manlift for welding of pipes ,store for tools and workshop
area for fittup works, however work shop to be fabricated by M/s GMCO
2- SAG shall provide approved layouts for piping , and section details (isometric with welding map) prior to start the work
3- SAG shall provide excavation for piping works and shall backfill after the approval of pressure test and clearance by M/s
Consultant
563640167.xlsx 1 of 3
 4- Cathodic protection shall be provided by M/s SAG, however M/s GMCO to ensure that wire shall not be damaged and proper
care is taken during the work.
5- M/s SAG shall provide water for pressure testing and for flushing in coordiation with Main contractor.
6- M/s SAG secure full right to stop the work at any time if found workman ship not meeting project stds and shall give a period
of one week notice to upgrade prior to cancel the agreement.
7- Any losses incurr due to bad workmanship or due to any other mean shall hold M/s GMCO fully resposnbile and shall be
backcharged accordingly
8- M/s GMCO to provide prequlification approval to M/s SAG from NWC within a week time from the date of this work order.
9- We considered that the agreed amount is for complete piping work as per approved drawing and any work other than
approved drawings shall be informed to M/s GMCO accordingly, where as M/s GMCO shall finish all the works as per
approved drawings at agreed amount without any variation or extra claim.
10- M/s GMCO to provide work executation plan and man power list within 1 week from the date of work order inorder to submit
to the cleint , project time frame shall be provided by us.

11- M/s SAG has the right to increase or decrease the quantities of work by 10% at the same contracted prices throughout
the project executive period

C- Payment Terms:-- 100% L/C Payable as follows.

1-
20% Down Payment against bank guarantee for mobilization of team at site after the aprpoval of PQ by NWC/Consultant

75% Balance shall be paid on monthly progress invoice after 15 days from the approval of site Team and consultant as per
2-
payment schedule.
On beging a monthly progress invoice as follows:
2.1-
80% Welding - 5% Coating - 10% Hydrotest - 5%Flusing & Cholorination
3- 5% of total amount shall be hold as retention and shall be released after completion of fully operational system and acceptance
by M/s Cleint.
4- Percentage of advance payment shall be deducted from every progressive invoice as per payment stds.

Note:-- We hope the above is inline with your requirements and kindly provide us your acknowledgement inorder to prepare sub
contract agreement in detail.

This is a conditional order subject to the approval of Prequalification by M/s Cosnultant and Client NWC.
Approved Project compliance sheet , specification copies for welding, Hydrotesting & chlorination attached for your
reference.

Thanks and Regards,

Ahmed Zain

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