Pre-Engineered Buildings

Standard Terms & Conditions of Sale

Standard Terms & Conditions of Sale Pre-Engineered Buildings
 Standard Terms & Conditions of Sale
Index

1. Placing Orders
2. Acceptance of Orders
3. Standard Payment Terms
4. Approval of Zamil Steel Drawings
5. Design Calculations (Optional)
6. Design Certificates
7. Change Orders
8. Jobs on Hold
9. Material Dispatch
10. Erection Drawings
11. Specification Changes & Material Substitution
12. Design and Supply Exclusions
13. Permits and Fees
14. Inspection of Fabricated Materials
15. Material Dispatch Advice
16. Partial Shipments
17. Customer Pick-Up Shipments

18. Unloading of Material at the Job Site for Overland

Shipments (Supply Only Contracts)
19. Erection of Buildings (Supply Only Contracts)
20. Erection by Zamil Steel
21. Shortage of Materials
22. Field Modifications
23. Combined Shipments
24. Storage
25. Warranty
26. Force Majeure
27. Cancellation of Orders
28. Governing Law & Dispute Resolution

Pre-Engineered Buildings Standard Terms & Conditions of Sale

The following Terms and Conditions of Sale
are established by Zamil Steel Pre-Engi-
neered Buildings Co. Ltd., Saudi Arabia,
hereinafter referred to in this document as
Zamil Steel, to govern the sale and ship-
ment of Pre-Engineered Buildings that are
designed, manufactured and processed by
Zamil Steel Pre-Engineered Buildings Co.
Ltd., Saudi Arabia.
1. Placing Orders
Orders are normally placed after Zamil
Steel submits a written proposal (also
known as quotation or offer) to its customers.
Quotations may be revised until all techni-
cal and commercial matters are agreed
upon by both the customer and Zamil Steel.
Once all matters are agreed upon and are
included in a final, revised Zamil Steel
proposal, both the customer’s authorized
representative and Zamil Steel’s authorized
representative must sign a standard
contract. This standard document is pro-
vided with and attached to all Zamil Steel
proposals.
2. Acceptance of Orders
Only orders accompanied by signed and
dated contracts are accepted by Zamil Steel.
Orders are reviewed and determined to be
complete with all required information. Ac-
cepted orders are entered in a sales register
maintained by the Order Management De-
partment while orders that are incomplete
are placed on hold until the appropriate
corrective action is taken. Customers are
informed of the “On Hold” status of their
orders by the responsible Zamil Steel Area
Office.
3. Standard Payment Terms
3.1 Letter of Credit
Payment of the full contract price will be
made by an irrevocable letter of credit
(L/C), confirmed by the negotiating bank
in Saudi Arabia. The period of validity
for the L/C is established at the time of
contract signing. The minimum period
of validity of the L/C is 90 days for
shipment and 111 days for negotiation.
1 Standard Terms & Conditions of Sale Pre-Engineered Buildings
For example, if the deadline for ship-
ment is the 1st of January then the L/C
will expire on the 22nd of January. (L/Cs
issued by Saudi & GCC Banks - confir-
mation not required.)
3.2 Correspondent Banks
Customers opening a letter of credit
may choose from the following Saudi
correspondent banks. Addresses and
Zamil Steel account numbers are also
provided for customer convenience.
SABB
P.O. Box 1618
Dammam 31411, Saudi Arabia
Phone (966 13) 833 1553,
Fax (966 13) 832 1916
Swift Code: SABBSARI
Account No. 042-884882-001
IBAN No. SA7045000000042884882001
Arab National Bank
P.O. Box 18
Dammam 31411, Saudi Arabia
Phone (966 13) 832 3440,
Fax (966 13) 834 7309
Swift Code: ARNBSARI
Account No. 0108095169880021
IBAN No. SA0230400108095169880021
Saudi Hollandi Bank
P.O. Box 70
Dammam 31411, Saudi Arabia
Phone (966 13) 894 8001,
Fax (966 13) 894 8001 x 190
Swift Code: AAALSARI
Account No. 0-10398472-00-8
IBAN No. SA9550000000010398472008
Al Rajhi Bank
Br. No. 139
P.O. Box 1362
Al-Khobar 31952, Saudi Arabia
Phone (966 13) 864 3525,
Fax (966 13) 864 3525 x 225
Swift Code: RJHISARI
Account No. 578608010025395
IBAN No. SA9680000578608010025395
Riyadh Bank
P.O Box 274
Dammam 31411, Saudi Arabia
Phone (966 13) 833 5733,
Fax (966 13) 832 1056
Swift Code: RIBLSARI
Account No. 3540349239940
IBAN No. SA0520000003540349239940
Nevertheless the following banks can
advise L/Cs issued in favor of Zamil Steel
Pre-Engineered Buildings Co. Ltd.
JPMorgan Chase Bank N. A.
Al Faisaliah Tower, Level 8, Area C
PO Box 51907, Floor 8
Riyadh, 11553, Saudi Arabia
Swift Code: CHASSARIXXX
Deutsche Bank AG
17th Floor, King Fahad Road
Aloaya District
P.O. Box 301806, Riyadh 11372, KSA
Swift Code: DEUTSARIXXX

National Commercial Bank

P.O. Box 5558
Dammam 31432, Saudi Arabia
Phone (966 13) 834 0088
Fax (966 13) 834 7251
Swift Code: NCBKSASARI

Banque Saudi Fransi

P.O. Box 2792
Dammam 31411, Saudi Arabia
Phone (966 13) 825 1588
Fax (966 13) 898 5508
Swift Code: BSFSARIxxx

SAMBA Financial Group

P.O. Box 842
Al-Khobar 31952, Saudi Arabia
Phone (966 13) 865 8271
Fax (966 13) 865 8277
Swift Code: SAMBSARI

National Bank of Pakistan

P.O. Box 63020,
Riyadh 11516, Saudi Arabia
Phone (96611) 217 2631
Fax (966 11) 217 8869

Al Inma Bank
P.O. Box 66674
Riyadh 11586, Saudi Arabia

All L/C’s opened by banks located outside

Saudi Arabia must be confirmed by a Saudi
bank.

Pre-Engineered Buildings Standard Terms & Conditions of Sale 2

3.3 LC Opening Procedure (Within Ksa)

Zamil Steel Pre-Engineered Buildings Co. Ltd.

P.O. Box 877, Dammam 31421, Saudi Arabia
Phone (966 13) 847 1840 Fax (966 13) 847 1291

For the sum of SAR. _______________ (Saudi Riyals ________________________ only) being
____________% of the value of Zamil Steel’s contract proposal no._______________, rev.
no._______________, dated ___________. and advise Zamil Steel Pre-Engineered Build-
ings Co. Ltd., Dammam, through any Saudi Bank.
L/C should be payable against presentation of the following documents

1. Sight Draft drawn on issuing bank.

2. Invoice in one original and two copies.
3 Packing List.
4 Truck Consignment Note issued by the trucking company (confirming receipt of
material for delivery to opener’s job site) marked freight pre-paid (if shipment is on
DAP/CPT/CIP basis) and made out to the order of the opening bank and notify
openers.
5. Land Insurance Certificate covering ;Land Transit All Risks clauses for 110% of
shipment value.
This is applicable for Contracts with CIP Terms.
6. If Commercial Invoice requires Applicant’s authorized representative signature,
the following clause is to be added: “If Applicant fails to return the counter
signed Commercial Invoice within 10 days from the date of shipment, beneficiary
is allowed to present the documents for claim without the countersignature of
Applicant’s authorized representative signature on such documents.

Other Terms:
a. WAR RISK is not covered under land insurance
b. Partial shipment is allowed.
c. L/C must be valid for shipment for ninety (90) days from opening date.
d. L/C expiry date shall be twenty one (21) days after L/C shipment date.
e. All L/C opening and amendment charges are for opener’s account.

Please arrange to transmit the full text of the L/C by SWIFT, being the operative instru-
ment, to enable the beneficiary to ship the material at an early date and advise the ben-
eficiary through telephone/fax to collect the L/C from the advising bank.

Notes:
1) for deferred payment, the rate of 0.3% per month to be added to the contract value.
2) In case of approval for issuance of advance / performance bond there is a cost
involved which amounts to 1% per annum.

3 Standard Terms & Conditions of Sale Pre-Engineered Buildings

3.4 LC Opening Procedure (Within GCC)

Zamil Steel Pre-Engineered Buildings Co. Ltd.

P.O. Box 877, Dammam 31421, Saudi Arabia
Phone (966 13) 847 1840 Fax (966 13) 847 1291

For the sum of SAR/USD/AED/QAR/BHD/KWD/OMR _______________)

________________________ only) being ____________% of the value of Zamil Steel’s con-
tract proposal no._______________, rev. no._______________, dated ___________. and ad-
vise Zamil Steel Pre-Engineered Buildings Co. Ltd. Dammam, through any prime Saudi
Bank with the clear instructions to add their confirmation to the said L/C.
L/C should be payable against presentation of the following documents

1 Sight Draft drawn on negotiating bank.

2. Invoice in one original and two copies.
3. Packing List.
4. Certificate of Origin in Arabic issued by the Saudi Arabian Ministry of Commerce
and Industry as per GCC format.
5. Truck Consignment Note issued by the trucking company confirming receipt of
material for delivery to opener’s job site marked freight pre-paid (if shipment is on
DAP/CPT/CIP basis) and made out to the order of the opening bank and notify
openers.
6. Land Insurance Certificate covering Land Transit All Risks clauses for 110% of
shipment value.
This is applicable for Contracts with CIP Terms.

Other Terms:
a. Partial shipment is allowed.
b. L/C must be valid for shipment for ninety (90) days from opening date.
c. L/C expiry date shall be twenty one (21) days after L/C shipment date.
d. All L/C opening and amendment charges are for opener’s account.

Please arrange to transmit the full text of the L/C by SWIFT, being the operative instru-
ment, to enable the beneficiary to ship the material at an early date and advise the ben-
eficiary through telephone/fax to collect the L/C from the advising bank.

Notes:
1) for deferred payment, the rate of 0.3% per month to be added to the contract value.
2) In case of approval for issuance of advance / performance bond there is a cost
involved which amounts to 1% per annum.

Pre-Engineered Buildings Standard Terms & Conditions of Sale 4

3.5 LC Opening Procedure (Arab Countries Other Than GCC) (Over Land)

Zamil Steel Pre-Engineered Buildings Co. Ltd.

P.O. Box 877, Dammam 31421, Saudi Arabia
Phone (966 13) 847 1840 Fax (966 13) 847 1291

For the sum of SAR/USD/Euro _______________ (Saudi Riyals/ US Dollars/ Euros

________________________ only) being ____________% of the value of Zamil Steel’s con-
tract proposal no._______________, rev. no._______________, dated ___________. and ad-
vise Zamil Steel Pre-Engineered Buildings Co. Ltd. Dammam, through any prime Saudi
Bank with the clear instructions to add their confirmation to the said L/C.
L/C should be payable against presentation of the following documents (Please check ap-
plicable boxes)

1. Sight Draft drawn on negotiating bank.

2. Invoice in one original and two copies.
3. Packing List.
4. Certificate of Origin in Arabic issued by the Saudi Arabian Ministry of Commerce
and Industry.
5. Truck Consignment Note issued by the trucking company confirming receipt of
material for delivery to opener’s job site marked freight pre-paid and made out to
the order of the opening bank and notify openers.

Other Terms:
a. Partial shipment is allowed.
b. L/C must be valid for shipment for ninety (90) days from opening date.
c. L/C expiry date shall be twenty one (21) days after L/C shipment date.
d. All L/C opening and amendment charges are for opener’s account.

Please arrange to transmit the full text of the L/C by SWIFT, being the operative instru-
ment, to enable the beneficiary to ship the material at an early date and advise the ben-
eficiary through telephone/fax to collect the L/C from the advising bank.

Notes:
1) for deferred payment, the rate of 0.3% per month to be added to the contract value.
2) In case of approval for issuance of advance / performance bond there is a cost
involved which amounts to 1% per annum.

5 Standard Terms & Conditions of Sale Pre-Engineered Buildings

3.6 LC Opening Procedure Sea Shipment (All Countries):

Zamil Steel Pre-Engineered Buildings Co. Ltd.

P.O. Box 877, Dammam 31421, Saudi Arabia
Phone (966 13) 847 1840 Fax (966 13) 847 1291

For the sum of SAR/USD/Euro _______________ (Saudi Riyals/ US Dollars/ Euros

________________________ only) being ____________% of the value of Zamil Steel’s con-
tract proposal no._______________, rev. no._______________, dated ___________. and ad-
vise Zamil Steel Pre-Engineered Buildings Co. Ltd. Dammam, through any prime Saudi
Bank with the clear instructions to add their confirmation to the said L/C.
L/C should be payable against presentation of the following documents (Please check ap-
plicable boxes)

1. Sight Draft drawn on negotiating bank.

2. Invoice in one original and two copies.
3. Packing List.
4. Certificate of Origin in English issued by the Saudi Arabian Ministry of
Commerce and Industry.
5. Full Set of Shipped On Board Bill of Lading issued by the Carrier or their
authorized Agents made out to the Order of Opening Bank marked freight
pre-paid and notify openers.

Other Terms:
a. Partial shipment is allowed.
b. L/C must be valid for shipment for ninety (90) days from opening date.
c. L/C expiry date shall be twenty one (21) days after L/C shipping date.
d. All L/C opening and amendment charges are for opener’s account.

Please arrange to transmit the full text of the L/C by SWIFT, being the operative instru-
ment, to enable the beneficiary to ship the material at an early date and advise the ben-
eficiary through telephone/fax to collect the L/C from the advising bank.

Notes:
1) for deferred payment, the rate of 0.3% per month to be added to the contract value.
2) In case of approval for issuance of advance / performance bond there is a cost
involved which amounts to 1% per annum.

Pre-Engineered Buildings Standard Terms & Conditions of Sale 6

3.7 Supply Ex-Works Factory in Dammam
The value of the L/C will be payable
according to the following terms: Down
payment of 10% of the value of the L/C
will be paid upon the receipt of the L/C
and against presentation of the ben-
eficiary’s (Zamil Steel Pre-Engineered
Buildings Co. Ltd.) sight draft & commer-
cial invoice to the negotiating bank. The
balance of the value of the L/C will be
paid against presentation of the:
• Sight draft drawn on the negotiating GCC & Arab countries.
bank.
3.8 Supply CFR Destination Port,
• Commercial invoice.
• Packing list.
• Delivery note issued by the
beneficiary and countersigned by the
truck driver confirming receipt of will be paid upon the receipt of the L/C
materials. OR,
Telex sent by beneficiary to openers of
the L/C through the negotiating bank,
7 to 10 days prior to the shipment date,
informing the bank that the material is
ready for shipment and requesting the
bank to make arrangements for cus-
tomer pickup.
In the event that trucks do not arrive on
the specified shipping date, the
beneficiary may submit copies of in-
voice, certificate of origin (if applicable),
and packing list to the negotiating bank
for processing, along with a letter stating
that:
“The L/C openers have not provided
trucks to collect the material. Material
will remain in the beneficiary’s custody
to be transfered to the L/C openers on
the future date”.
Additional Terms:
a) Partial shipment must be permitted.
b) The negotiating / advising bank’s
charges will be applied to the
beneficiary’s account, while the
opening / issuing bank’s charges
will be ap plied to the account of the opening / issuing bank’s charges
party opening the L/C
7 Standard Terms & Conditions of Sale Pre-Engineered Buildings
c) The negotiating bank must add its
confirmation on LCs coming out
side K.S.A.
d) Original documents (the most
common of which are the commer
cial invoice, packing list, and
material dispatch note) are to be
hand carried by the truck driver and
duplicate copies of the same shall
be acceptable for negotiation.
This is applicable for LCs within
Sea Shipment (All Destinations)
The full value of the L/C will be payable
according to the following terms:
Down payment of 10% of the L/C value
and against presentation of the ben-
eficiary’s (Zamil Steel Pre-Engineered
Buildings Co. Ltd.) sight draft & commer-
cial invoice to the negotiating bank.
The balance of the value of the L/C will
be paid against presentation of the:
• Sight draft drawn on negotiating
bank.
• Commercial invoice.
• Packing list.
• Bill of lading.
• Certificate of origin, in either English
and / or Arabic, issued by the Saudi
Arabian Ministry of Commerce and
Industry.
Additional Terms:
a) Partial shipments must be
permitted.
b) Trans shipment must be allowed.
c) The negotiating / advising bank’s
charges will be applied to the ben
eficiary’s account, while the
will be applied to the account of
the party opening the L/C.
 d) The negotiating bank must add its
confirmation.
3.9 Supply FOB Dammam Port, Sea prices.
Shipment (All Destinations)
The value of the L/C will be payable
according to the following terms:
Down payment of 10% of the L/C value
will be paid upon the receipt of the L/C
and against presentation of the ben-
eficiary’s (Zamil Steel Pre-Engineered
Buildings Co. Ltd.) sight draft & commer-
cial invoice to the negotiating bank.
The balance of the value of the L/C will
be paid against presentation of:
• Sight draft drawn on th negotiating
bank.
• Commercial invoice.
• Packing list.
• Bill of lading specifying “freight
collect”.
• Certificate of origin, in either English
or Arabic, issued by the Saudi Ara-
bian Ministry of Commerce.
• Trade terms must read as FOB to any
Saudi Port.
Additional Terms:
a) Partial shipments must be
a) Partial shipments must be
permitted.
b) The negotiating / advising bank’s
charges will be applied to the ben c) The negotiating / advising bank’s
eficiary’s account, while the opening /
issuing bank’s charges will be applied
to the account of the party opening the
L/C.
c) Negotiating bank must add its confirma-
tion.
d) Openers to arrange with the shipping
lines to issue bill of lading
showing “freight collect”.
3.10 Supply & Erection Contracts
(Saudi Arabian Contracts only)
4. Approval of Zamil Steel
The L/C will remain valid for a minimum
of 180 days.
Pre-Engineered Buildings Standard Terms & Conditions of Sale
The L/C value will cover the total
amount of the supply and erection
Payment for Supply:
The supply CPT job site amount is
payable as follows:
Down payment of 10% of the supply CPT
job site amount is to be paid upon the
receipt of the L/C and against presen-
tation of the beneficiary’s (Zamil Steel
Pre-Engineered Buildings Co. Ltd.) sight
draft & commercial invoice to the negoti-
ating bank.
The balance of the supply price CPT job
site will be paid upon presentation of
the following documents:
• Sight draft drawn on the negotiating
bank.
• Commercial invoice.
• Packing list.
• Truck consignment note issued by the
TRUCKING COMPANY confirming
receipt of material for fur ther delivery
to job site.
Additional Terms:
permitted.
b) Trans shipment must be allowed.
charges will be applied to the
beneficiary’s account, while the
opening / issuing bank’s charges
will be applied to the account of the
party opening the L/C.
Payment for Erection
The erection price will be paid against
time drafts (dates to be determined
according to the erection period) all of
which are calculated based upon the
shipment date.
Drawings
8

4.1 When requested by the customer or
considered necessary by Zamil Steel,
approval drawings will be prepared to
ensure that Zamil Steel accurately
interprets the requirements and
specifications of the customer.
4.2 If the building is attached to an existing
building, Zamil Steel will not issue
approval drawings until a report pre-
pared by a certified surveyor is sent
to the Zamil Steel Order Management
Department.
4.3 When approval is required, two (2) sets
of drawings are provided to the cus-
tomer, free of charge. One set must be
signed by the customer and returned
to the responsible Zamil Steel Area Of-
fice bearing the notation - “Approved
As Is” or “Approved As Noted”. The
second set may be retained by the cus-
tomer for future reference.Additional
sets are available for a fee of SR 300
(US$ 80) per set.
4.4 The information presented in the
approval drawings is preliminary in
nature and is not intended for uses
such as setting anchor bolts, designing
foundations and other construction
activities.
4.5 The approval of these drawings by
Zamil Steel will be accepted only in the
form of the customer’s (or his autho-
rized representative’s) signature,
appearing within the “Approval”
stamp placed by Zamil Steel on its
approval drawings. Approval by any
other means will not be accepted by
Zamil Steel.
4.6 Sets of drawings that are signed and
approved in the designated manner
will be considered final and binding.
4.7 Jobs that have been designated as
“Out For Approval” for a period of
more than 60 days will be subject to
the pricing schedule that is in effect at
the time the approval drawings are
returned to Zamil Steel Order Man-
agement Department. Zamil Steel
reserves the right to cancel orders that
have been designated as “Out For
Approval” for more than 90 days (The
9 Standard Terms & Conditions of Sale Pre-Engineered Buildings
customer will be responsible for
ordinary cancellation and engineering
costs) incurred up to that point in the
process.
4.8 Comments noted on returned approval
drawings, that change the previously
agreed upon scope of work, must
appear in RED INK and be accompa-
nied by a change order that is duly
signed and accepted by the customer.
4.9 Approval drawings for standard build-
ings are normally submitted within two
weeks of request. Approval drawings
for more complex buildings require a
longer period of preparation time.
4.10 Approval drawings should be returned
to Zamil Steel’s Area Office / Head
Office within two weeks of the
customer’s date of recipt. A delay in
the return of approval drawings may
affect the overall project cycle, includ-
ing delivery of the steel to the job site
(or port of entry).
5. Design Calculations
(Optional)
5.1 For projects that require approval, the
structural design calculations may be
included with the approval drawings,
if requested.
5.2 Two (2) sets of structural design calcula-
tions are provided to the customer, free
of charge. Additional sets are avail-
able for a fee of SR 150 (US$ 40) per set.
5.3 Standard structural design calculations
include:
a) Material specifications & design
assumptions.
b) Design of the primary & secondary
structural framing.
c) Wind bracing design.
d) Column reactions.
5.4 Additional engineering fees may be
levied for the preparation of design
calculations, they require a greater level
of analysis than the standard alcula-
tions.
6. Design Certificates
A certificate attesting to the structural
design integrity of a particular Zamil
Steel building, signed and stamped by
a registered professional engineer, is
available (at no extra cost) in lieu of the
design calculations.
7. Change Orders
7.1 Once a contract is signed and
accepted, any subsequent changes to
the order require a change order letter,
prepared by Zamil Steel and signed by
the customer. This letter will, describes
the specific change(s) and indicate the
impact these changes may have on
price and/or delivery of the project. No
further action will be taken by Zamil
Steel until the change order has been
signed as accepted by the customer.
7.2 The cost of any fabricated components
that are rendered useless by a change
order initiated after the start of fabrica-
tion, will be charged to the customer’s
account.
8. Jobs on Hold
8.1 All costs that are incurred by Zamil Steel
when a job is placed “On Hold” by the
customer, after the start of manufactur-
ing, will be charged to the customer’s
account.
8.2 A job that is not released for production
within 90 days from the date of its entry
in the sales register, for whatever reason
(including lack of technical clarification),
will be put “On Hold”. Zamil Steel
reserves the right to adjust the price of
such a job according to the price rates
that are valid at the time of release from
its “On Hold” status.
9. Material Dispatch
9.1 The material dispatch commitment
period is measured, in weeks, from the
latest date of receipt and acceptance by
Zamil Steel offices of all of the following
job related documents:
• Signed contract.
Pre-Engineered Buildings Standard Terms & Conditions of Sale
• Acceptable letter of credit / final
accepted amended L/C.
• Final change order including any
amendments to L/C price.
• Approval drawings, signed and
marked as “Approved As Is”or “Ap
proved As Noted”, where applicable.
9.2 Production and dispatch schedules shall
be determined when all of the following
are fulfilled:
• Receipt of the final “Approved As Is”
or “Approved As Noted” approval
drawings at Zamil Steel offices, where
applicable (see item 4).
• Receipt and acceptance of the final
change order, where applicable (see
item 7).
• Release to production by the Zamil
Steel Finance Department, i.e. fi-
nancial clearance. This will be done
when the customer fulfills all the
contract commercial terms.
9.3 The Zamil Steel Order Management
Department regularly notifies all Zamil
Steel Area Offices of production and
dispatch schedules for the jobs entered
by each individual office.
10. Erection Drawings
10.1 The standard erection drawings
package consists of one (1) set sent to
the customer, via the responsible Zamil
Steel Area Office, and one (1) set
dispatched with the materials.
10.2 When erection is completed by Zamil
Steel, the package will consist of one
(1) set of drawings sent to the customer,
via the responsible Zamil Steel Area
Office, and one (1) set provided to the
Zamil Steel erection team.
10.3 Additional sets of erection drawings
are available upon request for SR 300
(US$ 80) per set.
10.4 By specific request only, one set of “As
Built” drawings will be supplied to the
10
 customer (free of charge) after
erection is completed. “As Built” draw-
ings will incorporate changes made
during erection (if any), assuming that
those changes have been communi-
cated in writing to Zamil Steel after
completion of erection.
11. Specification Changes tion with the work provided for in the
& Material Substitution
11.1 Zamil Steel reserves the right to
substitute meterial equivalent to that
originally specified when a standard
inventory item is out of stock or when
product development improvements
make substitution necessary.
11.2 When special paint supplier is speci-
fied by the consultant / client, and paint
is found to have application problems
and (or) extended drying times, Zamil
Steel will recommend to substitute it
with an equivalent and suitable sup-
plier, subject to final approval by the
consultant / client. Otherwise, delivery
period shall be extended to accommo-
date for the additional required drying
time.
12. Design and Supply
Exclusions
12.1 Zamil Steel supplies only materials that
are clearly described in its proposal
under “Building Description” and
“Standard Supplied Items” or cov-
ered by written, accepted and signed
Change Orders.
12.2 Zamil Steel does not supply, nor does it
accept responsibility for the design or
construction of column footings, ground
slabs, tie beams, masonry walls and
other concrete works.
12.3 Zamil Steel does not supply, nor does it
accept responsibility for plumbing
services, electrical services, air
conditioning services, or any other
material or service not specified in the
final accepted proposal, contract or
Change Order.
11 Standard Terms & Conditions of Sale Pre-Engineered Buildings
13. Permits and Fees
13.1 It is the customer’s sole responsibility to
obtain and pay for all building permits,
licenses, public assessment, prorated
utilities, utility connections, occupancy
fees as well as any other fees required
by any government authority in connec-
contract.
13.2 The customer will provide, at his ex-
pense, all plans and specifications
required to obtain the building permit,
except those plans to be furnished by
Zamil Steel.
13.3 It is the customer’s responsibility to
ensure that all the plans and specifi-
cations, including those produced by
Zamil Steel, comply with the applicable
requirements of all the governing build-
ing authorities.
13.4 If erection is to be completed by the
Zamil Steel erection team, a copy of the
building permit must be provided to
Zamil Steel by the customer, prior to the
commencement of work. If erection work
must be deferred due to building permit
problems, the cost of such stoppages,
standing time or demobilization will be
charged to the customer’s account.
14. Inspection of Fabricated
Materials
14.1 Zamil Steel, an ISO 9001 certified
company, operates in accordance with
its standard Quality Plan, which specifi-
cally outlines the quality control proce-
dures that must be followed during the
production and shipment of its products.
This plan describes the sampling tech-
niques, types of tests conducted, control
procedures and reporting format used
in the production of all manufactured
components. The approved procedures
described in this Quality Plan are main-
tained within the Zamil Steel Quality
Control Department.
14.2 Inspection of Zamil Steel products at
the Zamil Steel plant by a customer,
or by his authorized representative, (if
required by a specific supply contract)
may be
 arranged. Such inspection will be
scheduled upon receipt of a written
request for such inspection by the
customer. Inspections will be arranged
in such a manner so as not to delay
production and/or shipment. In the
event that the customer or his repre-
sentative fails to conduct inspections as
scheduled, the applicable goods will
be considered “Accepted and Re-
leased By Concession”.
15. Material Dispatch Advice
15.1 Upon dispatch, Zamil Steel Shipping
Department will advise the responsible
Zamil Steel Area Office of the actual
dispatch date.
15.2 The customer will be notified of the
actual dispatch date by the responsible
Zamil Steel Area Office, immediately
upon the dispatch of material from
Zamil Steel factory.
16. Partial Shipments
16.1 On large jobs, it is the standard policy
of Zamil Steel standard practice to
make partial shipments.
16.2 When partial shipments are made,
Zamil Steel will endeavor to ship
erectable steel on a schedule that en-
ables the erection process to proceed
smoothly.
16.3 When partial shipments are requested
and accepted by Zamil Steel, each
shipment will be assigned a prorated
value of the dispatched materials
based upon the accepted terms of pay-
ment covering the total job value.
17. Customer Pick-Up Shipments
17.1 Zamil Steel does not permit customer
for overseas shipments.
17.2 Zamil Steel prefers to make all over-
land shipments by contract carrier;
however, the customer may pick-up the
materia provided that the procedures
noted in section 17.3 to 17.5 are ob-
served.
Pre-Engineered Buildings Standard Terms & Conditions of Sale
17.3 The customer must obtain an assigned
loading date and time from the Zamil
Steel Order Management Department.
17.4 The customer must provide suitable
trailers for loading by Zamil Steel.
Zamil Steel cannot load closed van
trailers and trailers with sidings.
17.5 The customer’s driver must check and
sign a receipt for the Zamil Steel
materials.
17.6 Customers who are not familiar with
Zamil Steel’s customer pick-up
procedures should request complete
information from the responsible Zamil
Steel Area Office.
18. Unloading of Material at
Job Site for Overland
Shipments (Supply Only
Contacts)
18.1 Unloading of trucks at the job site
is the sole responsibility of the
customer. The customer is expected
to provide suitable equipment for
unloading the material. If a site
is inaccessible or not ready to accept
the material, another site for unloading
must be provided by the customer.
18.2 The customer is solely responsible for
the condition of the job site in terms of
as the safety of the trucking company
driver and the Zamil Steel material.
18.3 The customer is responsible for
accurately checking the materials
upon arrival and unloading. Any
discrepancies must be indicated on the
material dispatch note.
18.4 A receiving representative of the
customer cannot refuse to accept an
entire shipment because some
portion of that shipment is damaged or
missing. Damaged materials must be
indicated on the material dispatch note
and reported to the responsible Zamil
Steel Area Office immediately.
19. Erection of Buildings
(Supply Only Contracts)
12
 19.1 The customer will be solely responsible
for the quality of a erection of Zamil
Steel building when the erection is not
carried out by the Zamil Steel erection
team. Zamil Steel assumes no liability
for, and the customer will hold Zamil
Steel harmless in connection with any
defects in the erection of buildings or
such defects as loose connections,
missing parts, roof leaks, damaged
sheets, omission of sealer, scratched
surfaces, poor alignment, or inad-
equate drainage that are the result of
the erection process.
19.2 The customer will permit Zamil Steel’s
personnel to inspect the erection work
at any time during the erection pro-
cess.
19.3 Although Zamil Steel appoints only
competent contractors as Certified
Builders, Zamil Steel is not responsible
for the quality of erection provided by
these builders. Zamil Steel Certified
Builders are independent contractors
who are certified by Zamil Steel on the
basis of knowledge and experience in
pre-engineered steel building erection
and contracting practices.
20. Erection by Zamil Steel
20.1 The Zamil Steel erection team will
undertake building erection only
on a clear, leveled, compacted and
unobstructed building foot print,
with suitable uninterrupted access
for unloading trucks and erection
equipment. A 10 meter wide access
must be provided around each
building for cladding & accessories
storage. The ground surface of all
working areas must be suitably
compacted to accommodate the use of
forklifts or cranes.
20.2 Prior to the arrival of the Zamil Steel
erection team on site, the anchor bolts
must be accurately set by other per-
sonnels. All anchor bolts set in place
must have the appropriate nuts and
washers installed on cleaned threads.
20.3 The Zamil Steel erection team may
check the position and level of the
anchor bolts prior to the pouring of the
concrete foundations. This does not
absolve the contractor from his
13 Standard Terms & Conditions of Sale Pre-Engineered Buildings
responsibility for accuracy. Any
addional work or rework required due
to misplacement of anchor bolts or
faulty concrete will be the responsibil-
ity of the customer.
20.4 If erection is delayed due to the
non-completion of civil works, or other
causes, Zamil Steel will not be respon-
sible for the deterioration of the primer
paint, or the cleaning of the manufac-
tured steel after delivery to site.
20.5 Zamil Steel will not be responsible for
any cleaning of the steel columns or
cladding after pouring of the concrete
slab.
20.6 Zamil Steel will not be responsible for
grouting under base plates after steel
erection and alignment. The customer
will be responsible for finalizing the
grouting prior to applying the design
loads including cladding.
20.7 Zamil Steel shall not be responsible for
the repair of any damage to building
components caused by others.
20.8 Any necessary repairs will be per-
formed only upon receipt by the Zamil
Stee erection team of written notifica-
tion of acceptance of the charges, by
the customer in the form of a Change
Order.
20.9 Any deviation from these standard
erection conditions will become sub-
ject to price review.
20.10 Zamil Steel reserves the right to
subcontract part or all of its erection
contract to qualified contractors who
will execute the job professionally and
in accordance with Zamil Steel’s strict
erection requirements.
21. Shortage of Materials
21.1 Whenever a material consignment is
received on site by anyone other than
the Zamil Steel erection team, the
dated signature of the customer or his
designated representative constitutes
a formal acknowledgment of the
correct receipt of the consignment as
related to both quality and quantity.
21.2 It is the sole responsibility of the
customer or his representative respon-
sibility to check the materials before
signing and dating Zamil Steel’s mate-
rial dispatch note to indicate accep-
tance.
21.3 Claims of shortages are only accepted
by Zamil Steel if received in writing
within seven (7) days of the date of the
acceptance signature.
21.4 If, after receipt of such claims, Zamil
Steel bills of materials and shipping
lists are found to be correct, replace-
ment material will be supplied only
upon receipt written acceptance of the
additional ex-works costs and delivery
costs from the customer or his
representative.
21.5 Zamil Steel is not responsible for any
consequential claims or liabilities al-
leged to arise from losses or shortages.
22. Field Modifications
22.1 Minor field modifications and adjust-
ments, in any pre-engineered build-
ing, are to be anticipated. Minor field
work does not constitute grounds for
chargebacks or refunds. This field
work should be provided for within the
contingency element of any construc-
tion estimate.
22.2 Only repairs due to major fabrication
errors may be cause for filing a claim.
Such repairs will only be undertaken
with the consultation and consent of
Zamil Steel.
23. Combined Shipments
Zamil Steel is occasionally obliged to
include a small quantity of material
(perhaps a back-order or urgent
material request) within a shipment
destined for another customer in the
same metropolitan area or territory.
All customers stand to benefit from this
mutual cooperation.
24. Storage
24.1 Zamil Steel shall store, free of charge
Pre-Engineered Buildings Standard Terms & Conditions of Sale
in their open yards, any or all the ma-
terials for a contract for a period not
exceeding 10 days from the scheduled
dispatch date.
24.2 Should a customer delay dispatch of
goods for a period exceeding 10 days
after the originally scheduled dispatch
date, STORAGE CHARGES will be
levied by Zamil Steel, at the rate of
0.1% of the ex-works selling price (of
the unshipped material) per day up to
a maximum of 5%.
24.3 Zamil Steel shall not be held
responsible for damage caused to the
exposed steel after it has been stored
longer than 10 days. Such damage
may include deterioration of the paint
coating.
25. Warranty
25.1 Zamil Steel warrants the materials it
manufactures for a period of one year
from the date of material dispatch.
This warranty extends only to failure
due to defective materials or work-
manship, and covers only products
that are utilized in the intended man-
ner.
25.2 Zamil Steel warrants that the structure
will support the loads described in
Zamil Steel’s drawings and contract
when properly erected, as part of a
complete structural system designed
by Zamil Steel and made up only of
parts made by Zamil Steel, provided
that the structure is used in the man-
ner and purpose for which it was
designed.
25.3 No warranties are expressed or im-
plied other than those described in
these Terms and Conditions of Sale.
25.4 In the event of breach of warranty, the
limit of any claim shall be the cor-
rection or replacement of defective
materials and correction of defective
workmanship.Under no circumstances
will Zamil Steel be responsible for con-
sequential damages that are alleged
to arise from any such claim of breach
of warranty.
25.5 In the event of erection by Zamil Steel,
14
 the building maintenance is warrant-
ed for 12 months from the date of pro-
visional acceptance by the customer.

26. Force Majeure

Zamil Steel shall not be held account-
able for delays in material dispatch or
delivery (after dispatch) resulting from
circumstancesoutside its control, such
as strikes, acts of war, revolution, riot
or civil disturbance, trade sanctions or
restrictions, occurrences of meteoro-
logical or geophysical nature, etc., to
the extent that these affect transport,
communications, manufacturing and/
or erection by Zamil Steel, its suppliers
and its subcontractors.

27. Cancellation of Orders

27.1 In the event that a signed contract is
cancelled by a customer, the greater of
the following cancellation charges will
apply:

• 10% of the total contract amount.

• All actual charges incurred by Zamil

Steel (and its sub contrac tors / sup-
pliers) up to the time of receipt of
the notice of cancellation.

27.2 Cancellation charges are due

immediately upon the receipt by
Zamil Steel of the customer’s notice of
cancellation.

28. Governing Law & Dispute

Resolution

28.1 This Agreement shall be governed by,

and construed in accordance with the
Laws of the Kingdom of Saudi Arabia.

28.2 Any dispute arising hereunder or from

or in connection herewith shall be
resolved amicably by discussion be-
tween the parties hereto, failing which
the parties shall submit the matter in
dispute to be finally settled pursuant to
the Saudi Arbitration Regulations. The No changes in these terms and conditions shall be
arbitration shall take place in Dam- allowed unless agreed to, in writing, by the General
mam, Saudi Arabia. Manager of the Pre-Engineered Buildings Division at
Zamil Steel Head Office in Dammam, Saudi Arabia.

15 Standard Terms & Conditions of Sale Pre-Engineered Buildings

Pre-Engineered Buildings Standard Terms & Conditions of Sale
Head Office: PO Box 877 Dammam 31421 Saudi Arabia Phone (966 13) 847 1840 Fax (966 13) 847 1291
Factories: Saudi Arabia, Ras Al Khaimah, Egypt, India, Vietnam

Standard Terms & Conditions of Sale Pre-Engineered Buildings 11

November 2015