Daikin Air Conditioning LLC

PO Box 125833, Dubai United Arab Emirates

Annual Maintenance Contract

Proposal for Chillers

Chiller Plant

Meydan Residences, Dubai

Future oriented technology to improve efficiency

and reliability of your chiller plant
Ref: SS-AE-18-RD-0198R1 Date: 21st, JUNE 2018
Meydan Group LLC
PO Box: 9305,
Dubai, UAE

Kind Attn.: Mr Anup Ramachandran, Manager- FM Engineering.

Subject : Customized AMC offer for Daikin Chillers

We thank you for your valuable enquiry and are pleased to submit our offer as per details provided in this
proposal.

DAIKIN as your partner

Daikin Industries is a global HVAC-R leader with more than 80,000 employees worldwide. Daikin is engaged in the
development, manufacture, sales, solutions and service of air conditioning, heating, ventilation, refrigeration
equipment, refrigerants, and other chemicals, as well as oil hydraulic products. Daikin Industries is headquartered
in Osaka, Japan, with over 100 global production basis & presence in 150 countries worldwide.

Daikin Middle East and Africa service affiliates works provides customize chiller maintenance packaged solutions
to asset owners and facility management teams across the region.

We tailor maintenance packages to suite your needs in line with best-in-class industry practices, backed by our
factory trained authorized team of technicians. Our chiller maintenance packages encompass chillers and its
ancillary system components such as airside units, pumps, cooling towers etc. Back by our solutions expertise, we
can optimize your system for high efficiency & reliability performance by way of field retrofits and system
enhancements.

Daikin offers you peace of mind…

✓ Improved efficiency & reduced energy costs
✓ Improved reliability & uptime
✓ Extended equipment life
✓ Controlled maintenance budgets with fewer
premature replacements & emergency calls
✓ Serving as your trusted advisor

Daikin can also offer an optional smart maintenance

program with our remote monitoring cloud platform
✓ 24/7 web access to “Daikin on site”
✓ Remote monitoring & support
✓ User friendly dashboards to view data trends
✓ Alarm notifications
✓ Health check reports
✓ Remote support
 “DAIKIN ON SITE” remote monitoring cloud platform (DoS) – Optional

What is DoS:
DOS is Cloud-based remote monitoring and analytics platform for chiller plants.
DOS provides 24/7 real-time data and support from Daikin experts for remote trouble shooting, reduce the risk
of unexpected issues, help identify cost-saving opportunities and take preventive actions to increase the
lifetime of the unit.

Scope of site work – Installation & Services

• Download software in the existing controller for DoS
• Commissioning support for DoS
• Setting up access to the alarm notification by Email
• Annual executive report generation on the health status of
chillers.
• Validity of the services shall be in line with AMC validity.

Pre-Installation requirements - Internet Connection:

Option-1: LAN Connection by customer
A dedicated internet connection is required for each chiller. Customer should provide LAN cable (RJ45/CAT6)
from the nearest HUB/Network Switch to individual chiller.
Option-2: 3G DATA Industrial Modem (Cost Price: $ 800.00) – DATA SIM min 2GB/month “by customer”
An average data consumption of 2GB/month is expected from each chiller for remote monitoring of the
parameters. (Preferred 3G modem model & make, if supplied by the customer-Model: Machine Link 3G /
Manufacturer: Vodafone)
Note: - The Installation & Commissioning charges of DoS will be advised as per site condition.
Scope of Work

DAIKIN scope of work shall cover preventative maintenance works of HVAC equipment listed in the equipment
schedule in this proposal. The preventative maintenance shall be as per DAIKIN maintenance task sheets and
checklists.

DAIKIN will carry out a detailed audit of the site and a condition report will be submitted within 30 days of
taking over of the plant. All corrective work required to bring the equipment back to good working order will be
identified in the report and if needed a separate quotation shall be furnished to execute the recommended
corrective work.

AMC Deliverables
Item Deliverable Offered
1 Labour based preventive maintenance contract for listed equipment consisting Yes
of # of Major and Minor services as listed. Maintenance shall be carried out as
per DAIKIN recommendations and checklist, in line with the industry standard.
2 Service reports to be provided after each service, detailing the service carried Yes
out.
3a Maintenance consumables considered during major service is paint for touch Yes
up, cotton cloth, grease and WD 40.
3b Spare Parts (excluded unless specifically mentioned) No
4 Emergency call out service includes emergency calls between inspections as Yes
required for the purpose of diagnosis of trouble, adjustment, minor repair, or
resetting of controls - based on response levels mentioned below.
5 Oil Analysis per circuit once a year with complete laboratory test reports that Yes
will include the below following:-
✓ Interpretations and recommendations based on sample from system.
✓ All wear metals, moisture and oil, and acid numbers are in satisfactory range
for the unit and the running time also reported

6 Refrigerant Analysis once a year (for purity) NA

7 Chilled Water Analysis once a year Yes

8 Condenser Water Analysis once a year (water cooled chillers only) NA

9 Descaling on condensers (water cooled chillers only) NA

10 Operator Training include with this proposal (yearly on site during 1st PPM) Yes

11 “Daikin on site” smart connected platform for remote monitoring & reporting No

12 Any other services - refer optional list / prices / specific inclusions No

 Equipment Considered

Equipment Model / Make Qty # Major # Minor

1 Centrifugal chillers Daikin 02 1 3
2 Cooling towers BAC 02 1 3
3 Condenser Pumps Armstrong 03 1 3
4 Primary pumps Armstrong 03 1 3
5 Secondary Pumps Armstrong 04 1 3

Any Special Services

Equipment Service Description Duration/Remarks

1 Chillers Oil replacement Once a per year based on analysis
2 Water treatment Condenser system Based on annual need
3 Chillers 3rd party vibration analysis 1 time during major service
4 Chillers MV starter maintenance 1 Major + 2 Minor + 2 Call outs

Emergency callout service

This contract covers 24hr Emergency Breakdown Call-Out Service at no extra charge defined by below response
levels.
Alarm Level Criteria examples Response
Level 1 Cooling system breakdown, building cooling affected etc. 4 Hours

Level 2 Running equipment trip, faults, non-critical system shutdown 6-8 Hours
etc.
Level 3 Faults not affecting normal operation of cooling system. Next planned PPM

Note: Except for emergency breakdowns (Level 1), all calls will be attended during normal working days/hours.
Breakdown attendance includes diagnosis of trouble, adjustment, minor repair or resetting of controls.

Exclusions to Contract
✓ Cost of any repairs, including compressor and heat exchangers is excluded, unless mentioned otherwise in
scope/optional price.
✓ Any complete replacement of compressors and heat exchangers (cooler, coils) are not covered within any
option.
✓ Safe access to all the units to be provided by the client such as monorail etc. to access the units to be serviced.
✓ Eddy Current test etc., unless mentioned otherwise in scope/optional price.
✓ All defects / work arising due to deficiency in the design and or in the quality of the installation.
✓ Medium and high voltage starters (3.3 KV,11 KV etc.) for centrifugal chillers, unless specifically mentioned.
✓ BMS, chiller plant manager associated with the plant, unless specifically mentioned.
✓ Failures resulting from corrosion and erosion as per Daikin Air Conditioning standard terms and conditions is
excluded.
✓ All coverage may be void if any modification or repair is done on the system without any specific approval from
Daikin Service.
✓ Any excessive call attendance on account of system shortcomings etc. shall be provided at extra cost.
✓ All pre-contractual work (all work identified in the initial condition report during take over)
✓ Any other work not specifically mentioned in our scope of work.

Commercial Terms

Contract Price
Total Price for above scope in AED
*Above price excludes VAT

Optional Prices

*Above price excludes VAT

Conditions of Sale
✓ This proposal is subject to Daikin Air Conditioning standard terms and conditions, which forms part of this
proposal.
✓ This proposal validity is 30 days from date of this quotation.
✓ A valid purchase order from an authorized person is required before start of any work.
✓ All amounts are in local currency unless specified otherwise.

Period of Contract
Duration of ONE year from date of valid purchase order / contract with commencement date indicated, unless
mentioned otherwise.

Payment Terms
Quarterly in advance
 We trust we have addressed your requirement and look forward to your further instructions. Please do not hesitate
to contact the undersigned for any clarifications.

Thanking you and best regards,

For Daikin Air Conditioning LLC

Roshan Dsouza
Service Sales Engineer - Dubai & N.E
Landline: 04-4199700
Direct: 04-4199737
Mobile: 056-9905237
Email: dsouza.r@daikinmea.com
 Terms & Conditions
Assured Maintenance Agreement
1. Object of the Agreement:
This Agreement, upon acceptance by Customer, is made solely on the terms and conditions hereof, notwithstanding any additional or
conflicting terms and conditions that may be contained in any purchase order or other form of Customer, all of which additional or
conflicting terms and conditions are hereby rejected by Daikin Air Conditioning LLC (hereinafter, “Daikin Air Conditioning”). Further,
you acknowledge, and agree that any purchase order issued by you in accordance with this agreement will only establish payment
authority for your internal accounting purposes. Any such purchase order will not be considered by us to be a counteroffer,
amendment, modification, or other revision to the terms of this agreement. No waiver, alteration or modification of the terms and
conditions herein shall be valid unless made in writing and signed by an authorized representative of Daikin Air Conditioning.
2. Payment:
a) Daikin Air Conditioning will provide the above-described services for that sum and in accordance with the payment terms herein. In
case of non-payment on the due date, we are entitled, by operation of law and without formal notice of default, to stop all work under
this Agreement and to apply payment of interests at the reference interest rate applied by the UAE Central Bank, increased by 7 per
cent and rounded up to the nearest half per cent. Customer agrees to pay all costs of collection incurred by Daikin Air Conditioning
including, but not limited to, collection agency fees, attorneys’ fees and court costs. Additional services may be performed upon
request at a price to be determined, subject to these Terms and Conditions.
b) Customer shall pay Daikin Air Conditioning, in addition to the contract price, the amount of all excise, sales, use, privilege, occupation
or other similar taxes imposed by the Government or any other Federal, State or Local Government, which Daikin Air Conditioning is
required to pay in connection with the services or materials furnished hereunder.
3. Contract Price:
a) The contract price stated herein is predicated on the fact that all work will be done during regular working hours of regular working
days unless otherwise specified. If for any reason Customer requests that work be performed other than during regular working hours
or outside the scope of services specified hereunder, Customer agrees to pay Daikin Air Conditioning any additional charges arising
from such additional services, including but not limited to premium pay, special freight or other fees or costs associated therewith.
b) Any and all costs, fees and expenses arising from or incurred in anticipation of any federal, state, local or administrative statute, law,
rule, regulation or ordinance (collectively “Governmental Regulations”) directly or indirectly requiring that refrigerant other than the type
of refrigerant currently being utilized in connection with the equipment subject to this Agreement be used, shall be borne solely by
Customer. In this regard, Daikin Air Conditioning shall not be required to bear any expense in connection with the modification,
removal, replacement or disposal of any refrigerant in response to any Governmental Regulation designed to reduce or eliminate the
alleged environmental hazards associated with the refrigerant.
c) The contract price is subject to adjustment once each calendar year, effective on the anniversary date, for changes in labor and
material costs. The customer shall receive 30 (Thirty) days prior written notice of such adjustment. The notice can be in the form of
proposal for renewal of AMC or a letter.
4. System Take Over:
In the event that Daikin Air Conditioning determines, during the first thirty (30) days of this Agreement or upon seasonal start-up that
any equipment covered under this Agreement is in need of repair and/or replacement, Daikin Air Conditioning shall inform Customer of
the equipment condition and remedy. Daikin Air Conditioning shall not be responsible for the present or future repair and/or
replacement or operability of any specific equipment; until such time as the equipment is brought up to an acceptable condition or the
Customer removes the unacceptable system(s), component(s), or part(s) from this contract.
5. System Operation:
a) This agreement does not include responsibility for design of the system, obsolescence, electrical power failures, low voltage, burned-
out main or branch fuses, low water pressure, vandalism, misuse or abuse of the system(s) by others (including the Customer),
negligence of the system by others (including the Customer), failure of the Customer to properly operate the system(s), or other
causes beyond the control of Daikin Air Conditioning.
b) In the event that Daikin Air Conditioning is required to make any repairs and/or replacements or emergency calls occasioned by the
improper operation of the equipment covered hereby, or any cause beyond Daikin Air Conditioning’s control, Customer shall pay
Daikin Air Conditioning for the charges incurred in making such repairs and/or replacements or emergency calls in accordance with the
current established Daikin Air Conditioning rates for performing such services.

6. Hazardous Materials:
Customer shall be responsible for all costs, expenses, damages, fines, penalties, claims and liabilities associated with or incurred in
connection with any hazardous materials or substances, including but not limited to asbestos, upon, beneath, about or inside
Customer’s equipment or property. Title to, ownership of, and legal responsibility and liability for any and all such hazardous materials
or substances, shall at all times remain with Customer. Customer shall be responsible for the removal, handling and disposal of all
hazardous materials and substances in accordance with all applicable Governmental Regulations. Customer shall defend, indemnify,
reimburse and hold harmless Daikin Air Conditioning and its officers, directors, agents, and employees from and against any and all
claims, damages, costs, expenses, liabilities, actions, suits, fines and penalties (including without limitation, attorneys’ fees and
expenses) suffered or incurred by any such indemnified parties, based upon, arising out of or in any way relating to exposure to,
handling of, or disposal of any hazardous materials or substances, including but not limited to asbestos, in connection with the services
performed hereunder. Daikin Air Conditioning shall have the right to suspend its work at no penalty to Daikin Air Conditioning until
such products or materials and the resultant hazards are removed. The time for completion of the work shall be extended to the extent
caused by the suspension and the contract price equitably adjusted.
7. Subcontractor:
Daikin Air Conditioning reserves the right to engage others in a subcontractor status to perform the work hereunder.
8. Site Utilities:
Customer agrees to provide Daikin Air Conditioning personnel with required utilities (water, electricity, compressed air, etc.) and
special tools and equipment normally used for such services unless restricted specifically in the quote. Customer agrees to ensure
that sufficient service access space is provided. Daikin Air Conditioning shall not be held liable for failure or damage to any equipment
caused by power interruptions, single phasing, phase reversal, low voltage, or other deficiencies beyond the control of Daikin Air
Conditioning.

9. Force Majeure:
Daikin Air Conditioning shall not in any event be liable for failure to perform or for delay in performance due to fire, flood, strike or other
labor difficulty, act of God, act of any Governmental Authority or of Customer, riot, war, embargo, fuel or energy shortage, wrecks or
delay in transportation, inability to obtain necessary labor, materials, or equipment from usual sources, or due to any cause beyond its
reasonable control. In the event of delay in performance due to any such cause, the date of delivery or time of completion will be
extended by a period of time reasonably necessary to overcome the effect of such delay. If the materials or equipment included in this
Agreement become temporarily or permanently unavailable for reasons beyond the control of Daikin Air Conditioning, Daikin Air
Conditioning shall be excused from furnishing said materials or equipment and be reimbursed for the difference between cost of
materials or equipment unavailable and the cost of an available reasonable substitute.

7. Warranty:
All parts and materials are guaranteed for a period set out in the specific conditions of the manufacturer’s warranties. Daikin Air
Conditioning warrants labor to meet industry standards for a period of thirty (30) days from the date performed. Daikin Air Conditioning
expressly limits its warranty on Customer’s Equipment to cover only that portion of Equipment which had specific service work done by
Daikin Air Conditioning. These warranties do not extend to any Equipment or service which has been repaired by others, abused,
altered, or misused, or which has not been properly maintained. THESE WARRANTIES ARE IN LIEU OF ALL OTHER
WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THOSE OF MERCHANTABILITY AND FITNESS
FOR SPECIFIC PURPOSE, WHICH ARE HEREBY SPECIFICALLY DISCLAIMED.
8. Termination:
This Agreement may be terminated: (i) by either party upon the anniversary date hereof, provided however, that written notice of such
termination must be received by the non-terminating party at least thirty (30) days prior to the anniversary date; (ii) by Daikin Air
Conditioning upon five (5) days prior written notice to Customer, in the event that any sums or monies due or payable pursuant to this
Agreement are not paid when due or in the event that additions, alterations, repairs or adjustments are made to the system or
equipment without Daikin Air Conditioning’s prior approval; (iii) by either party, in the event that the other party commits any other
material breach of this Agreement and such breach remains uncured for ten (10) business days, after written notice thereof. If this
Agreement is terminated for any reason, other than a breach by Daikin Air Conditioning, Customer shall pay, in addition to all sums
currently due and owing, the entire remaining balance due for the term of this Agreement, or an amount equal to time and materials
expended for the year, whichever is less.

9. Liability and Indemnity:

a) DAIKIN AIR CONDITIONING SHALL NOT IN ANY EVENT BY LIABLE TO THE CUSTOMER OR TO THIRD PARTIES FOR ANY
INCIDENTAL, CONSEQUENTIAL, INDIRECT OR SPECIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF
PRODUCTION, LOSS OF USE OR LOSS OF PROFITS OR REVENUE ARISING FROM ANY CAUSE WHATSOEVER INCLUDING,
BUT NOT LIMITED TO ANY DELAY, ACT, ERROR OR OMISSION OF DAIKIN AIR CONDITIONING. IN NO EVENT WILL DAIKIN
AIR CONDITIONING’S LIABILITY FOR DIRECT OR COMPENSATORY DAMAGES EXCEED THE PAYMENT RECEIVED BY
DAIKIN AIR CONDITIONING FROM CUSTOMER UNDER THE INSTANT AGREEMENT.
b) Each of us agrees that we are responsible for any injury, loss, or damage caused by any negligence or deliberate misconduct of our
employees or employees of our subcontractors. If any of our employees or those of our subcontractors, cause any injury, loss or
damage in connection with performing their duties under this agreement, the responsible party will pay for all costs, damages, and
expenses, which arise. Each of us agrees to defend and hold harmless the other party, its officers, directors and employees, from and
against all claims, damages, losses and expenses, including but not limited to attorney’s fees and court costs, arising out of or
resulting from the performance of work hereunder, to the extent that such claim, damage, loss, or expense is caused by an active or
passive act or omission of the indemnifying party or anyone directly or indirectly employed by that party, or anyone for whose acts that
party may be liable.
10. Governing Law and Jurisdiction:
This Agreement shall be binding upon and inure to the benefit of each party’s respective successors, assigns and affiliates. This
Agreement is governed by and construed in accordance with the laws of the UAE. The courts of Dubai shall have exclusive jurisdiction
to settle all disputes arising out of or in connection with the present terms and condition of sale.
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